ANNUAL REPORT
30 JUNE 2014
ACN: 009 138 738
Table of Contents
Chairman’s Review ...................................................................... 2
Review Of Operations ................................................................... 3
Corporate Governance ................................................................. 14
Directors’ Report ....................................................................... 18
Auditor’s Independence Declaration ................................................ 26
Independent Auditor’s Report ........................................................ 27
Directors’ Declaration ................................................................. 30
Consolidated Statement Of Financial Position ..................................... 31
Consolidated Statement Of Profit Or Loss And Other Comprehensive Income 32
Consolidated Statement Of Cash Flows ............................................. 33
Consolidated Statement Of Changes In Equity ..................................... 34
Notes To The Financial Statements .................................................. 35
Number Of Shares Held ................................................................ 54
Number Of Options Held .............................................................. 56
Tenement Schedule .................................................................... 57
Corporate Directory .................................................................... 58
Helix Resources Limited Annual Report 2014
1
CHAIRMAN’S REVIEW
Dear Shareholder
I am pleased to present the 2014 Annual Report for the Company.
The past 12 months has continued to be a challenging period for exploration companies. However Helix continues to work hard to
advance a portfolio of quality exploration assets in Chile and Australia.
During the year the company has
-
-
-
-
Announced an initial resource for the 100% owned Blanco Y Negro Mining Concession which lies within our Huallillinga Project
in Region IV in Chile. The company has recently completed a follow-up drilling program to advance the project.
Continued discussions to seek a suitable partner and joint venture arrangement for the Joshua Porphyry Project which is also
located in Region IV in Chile. The project continues to attract significant technical interest from Chilean and International
copper producers.
Acquired a 100% interest in the Collerina Copper and Gold Prospect in New South Wales. Recent on ground assessment has
been highly encouraging and the company is planning an exploration program in September and October to further advance
the prospect.
Defined a large gold soil anomaly called the Browns Prospect on the company’s 70% owned and managed Muriel Tank project
in New South Wales. The company has recently completed an initial drilling program on the prospect, results pending.
Also in this period the company welcomed new joint venture partners on the Tunkillia Gold project in South Australia and the Yalleen
Iron Ore Joint Venture in Western Australia. WPG Resources acquired Mungana Goldmines Ltd interest in Tunkillia and Baosteel
acquired Aquila Resources and became the largest shareholder of API Management Pty Ltd. The company welcomes both partners
and looks forward to them advancing both projects.
The company has continued to focus on cost saving initiatives. The company also underwent further changes at the Board level during
the year.
Mr Gordon Dunbar retired as Chairman in March 2014 and was replaced by myself. Mr Jason MacDonald, who has significant
experience in resource law and private resource companies, joined the board as a Non-Executive Director in March 2014. I would like to
thank Mr Gordon Dunbar for his contribution as Chairman and also previously as a Non-Executive Director of the company.
I would like to thank the Board and Staff for their contributions during the past year and their ongoing commitment to the company under
challenging market conditions. The company looks forward to making further progress on its various strategies and initiatives in the year
ahead and shareholders will be kept advised of all developments.
The company has recently updated its website design at www.helix.net.au. I would encourage you to visit the website for the latest
information regarding our activities throughout the year.
Pasquale Rombola
Chairman
Helix Resources Limited Annual Report 2014
2
REVIEW OF OPERATIONS
CHILE - COPPER AND GOLD PROJECTS
Background
Chile hosts numerous world-class copper and gold mines. The mining sector is one of the major pillars of the Chilean economy, given that copper
exports account for approximately 30% of GDP. Chile is a politically stable democracy with strong financial institutions and sound economic policy
providing it the strongest sovereign debt rating in Latin America. Chile is supportive of foreign investment and Helix considers it an appropriate location
to have established an asset portfolio and to use the Companies exploration skills to build and extract value from this world-class jurisdiction.
Chile Strategy
Based on an in-house project generation model, Helix identified and concentrated its efforts on an area of interest with prospective geology, good
infrastructure and an opportunity to build on an emerging mining district in Region IV, Chile.
Joshua Copper Porphyry Project:- Attract a large JV partner to advance significant greenfields porphyry discovery
(cid:1)
(cid:1) Blanco Y Negro: Build on early drilling success in shear hosted high-grade copper/gold system
(cid:1) Huallillinga Project– Identify Structural and Porphyry style Cu/Au mineralisation; confirm prospectivity and drill test targets.
(cid:1) Regional Projects – Develop geological models around cost-effective exploration; use geochemistry and mapping to prioritise target areas.
Figure 1: Helix’s project locations – Region IV Chile
Helix Resources Limited Annual Report 2014
3
Joshua Copper Project [100%]
The Joshua Project is Helix’s most significant project in Chile. The area was chosen for its prospectivity, is at low altitude (less than 1700m), with
excellent nearby infrastructure. The Project is 40km SE of Teck’s Carmen de Andacollo porphyry deposit (400Mt @ 0.38% Cu Reserve) in Region IV
Chile and 40km East of the township of Ovalle [Population 100,000]. Work on the 100% owned project by Helix has identified potential for a large-scale,
copper-gold porphyry system.
The Joshua Project was a greenfields discovery by Helix, with four porphyry targets (Targets 1 to 4) identified to date in a regional NW structural
corridor that had never been drill tested prior to Helix’s involvement.
The best drilling result to date is 400m @ 0.3% Cu and 0.1 g/t Au* from surface to EOH in Target 1. All drilling has been into a portion of Target 1 and
all holes have intersected Cu-Au-Mo mineralisation over significant widths. Less than 10% of main porphyry system has been drill tested (8 holes -
2,000m to date).
Figure 2: Joshua Porphyry Project – Copper in soils draped on topography showing extent of main porphyry target
During the year Helix made the following advances on the Joshua Project.
-In late 2013 Helix entered a 4 year option agreement over the mining concession Carmelita El Espino 1/5. Helix can purchase the concession for a
total consideration of US$300,000. Helix has paid the vendor US$80,000 upon signing the option agreement and will pay US$20,000 on each
anniversary, with the remaining and final payment of US$160,000 due in November 2017. At Helix's election, the Company has the right to bring
forward the full ownership of the property by paying the vendor the outstanding amount at any time.
-Helix is also continuing to receive ongoing interest from numerous large national and international mining companies in the Joshua Project. In early
2014 Chile largest mining company CODELCO undertook a 6 week detailed review of the Joshua Project, confirming Helix’s porphyry target potential
and geological model, concluding the following;
- Presence of at least a 3km x 1km copper-in-soil anomaly coincident with porphyry-style alteration.
- Coincident IP anomaly to a depth exceeding 500m.
- Artisanal copper mine (Carmelita) present - produced +1% Cu oxide material from surface and shallow underground workings.
- Limited drilling hasn’t intersected potassic zone to date, so best parts of the system remain untested.
Helix continues to seek a Major Partner with development expertise for the project under a JV arrangement that advances the asset and recognises the
significance of this discovery. Helix is currently engaged with a number of parties under confidentiality agreements.
Helix Resources Limited Annual Report 2014
4
Blanco y Negro Copper/Gold Project
Blanco Y Negro is a 100% owned Mining lease 15km south-east of Ovalle in Region IV Chile. The project sits within a major regional
mineralised shear system (Los Mantos Fault) with multiple mineral occurrences evident throughout the surrounding district.
Helix has mapped the main NW trending mineralised shear over a strike of 1.3km (offset by cross cutting faults) within the mining lease.
The company has drilled 10 holes into the main shear position with the best result being 19.5m @ 2% Cu and 1.1 g/t Au from the central
240m of strike.
A drilling program of 8 holes for 686m has recently been completed (refer to ASX release 10 September 2014). Results from the drilling
continue to improve geological knowledge and has confirmed grade continuity closer to the surface.
Figure 3: Location of 2014 drill hole collars (Blue) draped on topography at the Blanco y Negro Project
Regional Copper/Gold Projects- Region IV Chile
Helix controls a further 300km² of exploration concessions surrounding our advancing Joshua and Blanco y negro Projects. These concessions,
including Huallillinga, Hado and Embrujado are highly prospective for a combination of high-grade structurally controlled copper/gold sytems and large
copper/gold porphyry systems.
Work during the year has been confined to small cost-effective mapping and reconnaisance activities due to a reduced staff level and exploration
budgets. However the limited work has been very successful in identifying several priority target areas. Helix will look to prioritise these areas for further
advancement and consolidate its tenement position in the district.
Helix Resources Limited Annual Report 2014
5
COPPER & GOLD PROJECTS – NSW
Background
Helix holds approximately 100km strike of prospective VMS Copper terrain and +50km strike of epithermal Gold terrain in the Cobar-Girilambone mining
district in NSW. Helix is carrying out targeted geochemistry and geophysics to isolate mineralisation in this highly prospective region, with operating
mines and good infrastructure. To date Helix has established a copper resource at Canbelego and a gold resource at the Sunrise & Good Friday
Prospects.
Figure 4: Location of Helix Projects and surrounding mines in Cobar-Nygan region NSW
RESTDOWN JV (INCLUDING MURIEL TANK PROJECT)
EL 6140, EL6501 & EL6739:- Helix Resources 70%; Glencore 30%
The Projects are located 40km to 70 km SE of Cobar in Central Western NSW with the tenement package covering an area of ~198km² (Restdown JV
Project 154km², Muriel Tank JV Project 44km²).
BROWNS GOLD PROSPECT (MURIEL TANK)
Activities on the JV this year has been concentrated on the Muriel Tank Project (EL6739). The project is located 20km east of the Canbelego township
on the Barrier Highway in NSW. Gold lode mineralisation was historically mined in the 1920-30’s from the goldfield, most commonly associated with
regional shear zones. Historic workings are associated with mixed sedimentary (turbidite) sequences, generally locatied in fold hinge zones and in
localised kink zones. Previous Helix rock chips have returned results of >30g/t Au from the goldfield (Figure 5).
Helix Resources Limited Annual Report 2014
6
Figure 5: Muriel Tank Project: known historic prospect locations and interpreted fold feature at Browns Prospect area on aeromagnetics.
A series of hydraulic auger soil sampling programs, using Helix’s Landcruiser mounted auger rig, over the past field season has identified and
confirmed a strong continuous zone of gold anomalism (up to 294ppb Au) over 1 km of strike at the Browns Prospect Three phases of auger soil
sampling has been undertaken with the anomaly now sampled to a density of 50m lines with 10m apart samples over the strike (Figure 5). Rock chip
sampling from sub-crop and some small historic shafts and pits, have returned up to 15.5g/t Au.
The target zone at Browns Prospect corresponds with a subtle magnetic high, with sub-crops comprising chlorite altered shale breccia with
quartz/carbonate/ex-sulphide matrix to the south end and strongly deformed chloritic shale with blue quartz veining to the north.
The company has recently completed a maiden RC drilling program and results are pending.
Photos: Examples of historic workings at Brown’s returning rockchips up to 15.5g/t gold - peak soils to date 294ppb Au
Helix Resources Limited Annual Report 2014
7
Brown’s Prospect soil sampling on detailed magnetics.
Helix Resources Limited Annual Report 2014
8
SUNRISE/GOOD FRIDAY (RESTDOWN REGIONAL)
The Sunrise/Good Friday Prospects lie within EL6140 covering the entire Battery Tank Goldfield, 25km SW of the historic Mt Boppy Gold Mine
(produced ~500,000 oz at +10g/t Au) and 35km N of Nymagee and Hera development projects. Helix has defined maiden resources at the Sunrise and
Good Friday prospects, where zones of gold mineralisation are associated with sandy sediments intersected by localized shears. An inferred resource
of 2.6Mt @ 1.2g/t Au for 100,000oz (refer resource table) was defined and remains open in all directions.
Regional geochemical sampling has continued in the goldfield with auger soil samples collected, confirming the continuance of the gold mineralised
corridor over the entire goldfield. The new zones identified provide encouragement that multiple repeats of Sunrise-style mineralisation are present in
the district, and should assist in the company’s strategy of proving up economic oxide resources from surface from this goldfield.
CANBELEGO PROJECT JV – NSW
EL 6105:- Helix Resources Ltd 70%, Straits Resources 30%
Project Summary
The Canbelego Project is located 45km SE of Cobar. Helix to date has defined an Initial inferred resource for the Canbelego Deposit at a 0.3% Cut off
grade of 1.5 million tonnes at 1.2% Cu for 18,000t Contained Copper (refer resource table).
The Canbelego Deposit is a Cobar-style deposit, which remains open along strike and down dip. Historic mining produced +5% copper ore from
workings off a 100m shaft at the prospect. There remain untested down-hole EM conductors below significant drill results including: CBLRC018: 2m @
6.8% Cu and CD2: 5m @2.4% Cu.
The Canbelego Project also has significant potential for oxide copper mineralisation from surface on three prospects (Canbelego-portion of the inferred
resource. Canbelego West – 1.2km by up to 400m wide 100ppm Cu soil anomaly and Caballero- 800m x 300m 100ppm Cu soil anomaly, limited drilling
including 60m@0.4% Cu from 24m, incl. 7m @ 1.3% Cu (refer Figure 6).
Figure 6: Canbelego soil sampling on detailed magnetics, location of the three advancing copper prospects.
Helix Resources Limited Annual Report 2014
9
COLLERINA PROJECT – [Helix 100% of precious and base metals discoveries]
Helix entered into an exploration and development agreement with Augur Resources Ltd (Augur), in late 2013 covering tenement EL6336
approximately 40km SW of Nyngan in Central NSW.
Under the terms of the agreement, Helix has paid Augur $20,000 to secure the sole right to explore the tenement for precious and base
metal mineralisation and will spend a minimum of $100,000 over 12 months on the tenement. The deal secures Helix 100% of the
precious and base metal rights (excluding Nickel Laterite mineralisation), with Augur retaining a 1.5% net smelter royalty over Helix’s
discoveries.
The initial target is the Collerina Copper Prospect. The Collerina Prospect is prospective for copper and gold mineralisation. It is located
on a 15km long corridor of prospective volcanic/sedimentary sequence within the tenement that abuts Helix’s Quanda and Five Ways
tenements (refer Figure X). The project is located within a +200km VMS belt and is close to infrastructure including the operating Tritton
Mine and associated deposits to the north, and the Tottenham Cu/Au deposits to the south.
Figure 7: Location of EL6336 on regional magnetics
The Collerina Prospect has an historic copper working (early 1900’s) and was subject to a broad-spaced 3 hole drilling program by CRA
in the 1980’s. Copper mineralisation was intersected in all three holes (4m @ 2.4% Cu from 54m, 48m @ 0.6% Cu from 30m and 4.6m @
1.1% Cu from 65m). There has been limited exploration activity on the Prospect since.
Work conducted has highlighted copper and gold mineralised sup-cropping gossanous material over a strike of at least 500m. Rockchips
with up to 3% Copper and 9.3g/t Gold were returned from sampling along the strike of the prospect area.
The high grades of gold (7 samples >1g/t Au and associated silver up to 13g/t Ag) and copper (3 samples > 1% Cu) may be associated
with separate mineralisation phases, which provides scope for multiple target styles within this prospective system (refer to Table 1 and
Figure 8 & 9).
Helix Resources Limited Annual Report 2014
10
Table 1: Significant copper and gold rockchips from the Collerina Prospect Area.
PROJECT
SITE_ID
EASTING
NORTHING
Au ppb
CU ppm
EL6336
EL6336
EL6336
266631
266632
266633
EL6336
COL001
EL6336
COL002
EL6336
COL003
EL6336
COL006
EL6336
COL009
EL6336
COL011
EL6336
Z76530
505074
505069
505065
505234
505234
505234
505220
505300
505320
505364
6455043
6455041
6455037
6454971
6454971
6454971
6454950
6454950
6454930
6454909
9320
109
2540
6
2370
47
1570
1270
1800
1840
1740
13300
650
13300
7340
30100
2650
2490
1600
438
Refer to ASX announcement on 11 June 2014 for full details
Figure 8: The Collerina Prospect: Copper rockchip result locations and historic drill collars draped on magnetics and air photo image.
Helix Resources Limited Annual Report 2014
11
Figure 9: The Collerina Prospect: Gold rockchip result locations draped on magnetics and air photo image.
NON MANAGED JOINT VENTURES
YALLEEN IRON ORE PROJECT – WA
Helix Resources Ltd 30% (Diluting) JV interest and tenement owner; API (AMCI/Boasteel) 70% iron ore rights E 47/1169-1171
Project Summary
•
•
•
•
JORC Resource based on drilling during 2007/8 currently stands at 84.3Mt @ 57.2% Fe Channel Iron.
Yalleen Project cover 575km² of tenements in the West Pilbara owned by Helix Resources – API JV: iron ore rights only
Helix is currently diluting to a Royalty.
Recent corporate activity resulting in Aquila Resources being acquired by Baosteel and Aurizon is being monitored.
TUNKILLIA GOLD PROJECT JV – SA
Helix Resources Ltd 30% JV interest and tenement owner; WPG Resources Ltd 70% JV interest and Operator.
Project Summary
Helix Resources has a 30% interest in the Tunkillia Gold Project in the Gawler Craton in South Australia. The project was discovered by Helix in the
1990’s and has a total resource of 878,000 ozs of gold and 2.5m ozs of silver (refer to appended resources table).
In May 2014, WPG Resources became a 70% holder and manager of the Tunkillia Project by purchasing Tunkillia Gold Pty Ltd and its share of the
project. Helix welcomes WPG as a well-funded partner with a proven track record to advance the asset to the benefit of the Joint Venture, particularly in
relation to the following points:
•
•
•
•
An exploration focus targeting new high-grade pods suitable for early development
Pursuing the grant of the Mining Lease covering the Tunkillia deposit
Review to optimise the Tunkillia Resource to focus on improving gold grades
Re-assessing treatment options to optimise economic returns from the asset
Helix looks forward to WPG executing its strategy at Tunkillia and welcomes the potential value this could add to the Project.
Helix Resources Limited Annual Report 2014
12
Resources
Commodity
Category
Iron Ore
Indicated
Inferred
Project
Yalleen JV,
WA
Interest
30%
(Diluting)
Resource
47.9Mt @ 57.3% Fe (Channel Iron)*
36.4Mt @ 57.1% Fe (Channel Iron)*
Joint ventured with API Management Pty Ltd (50% Boasteel, 50% AMCI) and forms part of their West Pilbara Iron Ore Project
[WPIOP] which comprises multiple JV’s.
Copper
(+Gold)
Blanco Y
Negro, Chile
100% Helix
Inferred
1.4Mt @ 1.4% Cu for 20,000t Contained Cu +
0.5g/t for 23,000oz Au (at 0.4% Cu Cut-off) – 2012
JORC**
1.5Mt @ 1.2% Cu for 18,000t* Contained Cu (at
0.3% Cu Cut-off)
Copper
Inferred
Canbelego
JV, NSW
70%(Straits 30%)
Gold
Inferred
Restdown JV
70%
Tunkillia JV,
SA
(Glencore 30%)
30%
(Diluting)
Gold
Measured
Indicated
Inferred
TOTAL*
Measured
Indicated
Inferred
TOTAL*
2.6Mt @ 1.2g/t Au for 100,000oz
(0.3 g/t Au cut off)
4.9Mt @ 1.32 g/t – 209,000 oz Au
16.5Mt @ 1 g/t – 512,000 oz Au
5.6Mt @ 1 g/t – 173,000 oz Au
27.0Mt @ 1 g/t – 894,000 oz Au
4.9Mt @ 3.7 g/t – 563,000 oz Ag
16.5Mt @ 2.7 g/t – 1,412,000 oz Ag
5.6Mt @ 3.0 g/t – 545,000 oz Ag
27.0Mt @ 2.9 g/t – 2,543,000 oz Ag
WPG Resources Ltd JV Manager and 70% JV participant. Mining Lease application currently in Mines Department approval
process. Helix has elected to dilute, with our equity position presently 30%.
*Details of the assumptions underlying the above estimations are contained in previous ASX releases or at www.helix.net.au
** Refer to ASX announcement 20 November 2013 for Table 1 details and CP Statements
Competent Persons Statement
The information in this announcement that relating to previous reported Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr
M Wilson who is a full time employee of Helix Resources Limited and 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.
Details of the assumptions underlying the above estimations are contained in previous ASX releases or at www.helix.net.au
Helix Resources Limited Annual Report 2014
13
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 annual 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
2.4
3.2
3.3
4.1
4.2
8.1
8.2
The board should establish a separate nomination committee
The diversity policy should include requirements for the board to establish measurable objectives
for achieving gender diversity
Companies should disclose in each annual report the measurable objectives for achieving gender
diversity set by the board in accordance with the diversity policy and progress towards achieving
them
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
The board should establish a separate remuneration committee
The remuneration committee should be structured so that it:
• consists of a majority of independent directors;
• is chaired by an independent chair; and
• has at least three members.
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.
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 Managing Director;
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 Managing Director 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 the Managing 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 2014
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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 Board is comprised of a majority of independent directors and has an independent Chairman. The independent directors comprise
Pasquale Rombola and Jason McDonald.
The Company considers an independent director to be a non-executive director who:
• is not a substantial shareholder of the Company (as defined in section 9 of the Corporations Act 2001 (Cth);
• within the last 3 years has not been employed in an executive capacity by the Company;
• within the last 3 years been a partner, director or senior employee of a provider of material professional services or material consultant to the
Company;
• is not a material supplier or customer of the Company;
• has no material contractual relationship with the Company other than as a director of the Company;
• has no close family ties with any person who falls within any of the categories above; and
• has not been a director of the Company for such a period that his or her independence may have been compromised.
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 direction 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.
The board charter is available from the company’s website.
A copy of the Director Nomination which outlines the Induction Process 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 size of the board 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 Managing 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 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 Company has a Code of Conduct. The Code of Conduct 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 made available to all employees of the company.
A copy of the Code of Conduct is available from the corporate governance section of the company’s website.
Securities Trading Policy
This policy prevents certain key executives (“Restricted Persons”) 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 2014
15
Diversity Policy
The Diversity Policy does not include measurable objectives as the Board believes that the Company will not be able to successfully meet
these given the current size of the Company.
Given the size of the Company the Directors do not consider it appropriate to set measurable objectives in relation to diversity. Notwithstanding
this the Company strives to provide the best possible opportunities for current and prospective employees of all backgrounds in such a manner
that best adds to overall shareholder value and which reflects the values, principles and spirit of the Company’s Diversity Policy.
For the 2014 financial year the Company had a total of 3 women employees out of a total of 7 employees, with no woman in senior
management positions and no women on the board.
A copy of the Diversity Policy is available in the Corporate Governance section of the Company’s website.
PRINCIPLE 4 – SAFEGUARD INTEGRITY IN FINANCIAL REPORTING
The Managing Director 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 size of the board 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 Audit Committee 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 Company has a Continuous Disclosure 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 in accordance with the Listing Rules;
• 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
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 aims to be 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 2014
16
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 recommendations 8.1 8.2 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.
Helix Resources Limited Annual Report 2014
17
DIRECTORS’ REPORT
The Directors of Helix Resources Limited (“Helix” or “the Company”) present their Report together with the financial statements of the consolidated
entity, being Helix Resources Limited and its controlled entities (“the Group”) for the year ended 30 June 2014.
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:
Pasquale Rombola B Ec (Appointed 1 July 2014)
Non-Executive Chairman – 10 March 2014 to present
Non-Executive Director – 1 July 2013 to 10 March 2014
Mr Rombola has extensive experience in the investment banking industry in Sydney, London, Hong Kong and Singapore specializing in Asian and
Australian equities and equities business management. He has worked for both Morgan Stanley and Deutsche Bank. He held a variety of roles with
Morgan Stanley, including Head of the ASEAN equity and Global Head of the Asia equity sales force. He was also responsible for the development of
the Morgan Stanley equity business in Indonesia.
Mr Rombola has extensive experience in dealings with institutional equity clients, executing capital raisings for public companies and also in equity
business management across product areas.
Michael Wilson B Ec; B Sc (Hons); MAusIMM
Managing Director – 20 June 2013 to present
Executive Technical Director - 1 June 2007 to 19 June 2013
Mr Wilson has been with the company since 1997 and has established the Company’s copper and gold asset portfolios in Australia and Chile, securing
tenement holdings and JV’s with incumbent mine operators in the selected infrastructure-rich regions. 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’s corporate skills include broker and stakeholder engagement, commercial negotiations,
acquisitions and divestitures.
Jason Macdonald LLB, Bcomm (Appointed 10 March 2014)
Non-Executive Director – 10 March 2014 to present
Mr Macdonald is a qualified legal practitioner, he has practiced in both mining corporate/commercial and commercial litigation. Mr Macdonald is also a
director of several private resource companies and has a diverse range of corporate, equity capital market and mining related experience.
Gordon Dunbar BSc (Hons), MSc, FAusIMM, FAIG (Resigned 30 April 2014)
Non-Executive Chairman 20 June 2013 to 30 April 2014
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.
Greg Wheeler BCom; FCA; SF Fin; GAICD (Resigned 30 September 2013)
Non-Executive Director – 25 October 2004 to 14 July 2006, 20 June 2013 to 30 September 2013
Executive Chairman; Managing Director and Chief Financial Officer – 14 July 2006 to 19 June 2013
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 30 years in Australia and overseas. Greg was a Partner at the Chartered Accounting practices of
Grant Thornton [1990 to 1999] and Deloitte [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.
John den Dryver BE (Mining) MSc FAusIMM (CP) (Resigned 30 September 2013)
Non-Executive Director – 25 October 2004 to 30 September 2013
Mr den Dryver is a mining engineer with 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.
Helix Resources Limited Annual Report 2014
18
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
Company
Period of directorship
Jason Macdonald
Triton Minerals Limited
28 January 2014 – 3 March 2014
John den Dryver
Gordon Dunbar
COMPANY SECRETARY
Adelaide Resources Limited
Gascoyne Resources Limited
Centrex Metals Limited
Gascoyne Resources Limited
Rubianna Resources Limited
Michael Dylan Naylor Bcom, CA, AGIA (appointed 22 May 2014)
18 April 2005 – current
5 October 2009 – current
1 March 2011 – current
5 October 2009 – current
13 September 2011 – 30 June 2013
Michael has 17 years’ experience in corporate advisory and public company management since commencing his career and qualifying as a chartered
accountant with Ernst & Young. Michael has been involved in the financial management of mineral and resource focused public companies serving on
the board and in the executive team focusing on advancing and developing mineral resource assets and business development. Michael is also a
member of the Governance Institute of Australia.
Joneen McNamara BBus, ACSA (resigned 22 May 2014)
Mrs McNamara is an Accountant and Chartered Secretary. She has a wide range of experience in the financial management and company secretarial
roles of a publicly listed entity.
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 in Australia and Chile. There has been no significant change in the nature of these activities during the year.
FINANCIAL RESULTS
The net consolidated loss of the Group for the financial period, after provision for income tax was $1,971,585 (2013: profit of $2,730,290).
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 in Australia and Chile and utilising our corporate and geological
expertise to create and extract value for the benefit of our shareholders.
Mineral Asset Project Highlights include:-
CHILE
Joshua Copper Project [100%]
Joshua is 100% owned and located in Region IV Chile. The Project is located 40km East of the township of Ovalle [Population 100,000], at low altitude
(less than 1700m), with excellent nearby infrastructure. Exploration first commenced mid-2011, with subsequent 200m spaced pole-dipole IP and
ground magnetics leading to a DD program, the best hole so far, DDH2 returned 400m @ 0.31% Cu and 0.1g/t Au from surface to end of hole in Target
1. The Company has outlined potential for a large scale, bulk tonnage copper (+gold) project likely to be amenable to open pit mining.
Helix is seeking a partner to assist in funding and advancing this significant project. The company continues to receive interest from Chilean and
International companies looking to secure large copper porphyry projects close to infrastructure.
Blanco y Negro Copper/Gold Project [100%]
The Blanco y Negro mining concession located within our Huallillinga Project secured for its potential to host economically exploitable Cu/Au resources.
The project sits within a major regional mineralised shear system (Los Mantos Fault) with multiple mineral occurrences evident throughout the
surrounding district.
Helix has mapped the main NW trending mineralised shear over a strike of 1.3km (offset by cross cutting faults) within the mining lease. The company
has drilled the shear position with the best result being 19.5m @ 2% Cu and 1.1 g/t Au from the central 240m of strike. Helix continues to test various
geological and geophysical targets along strike extensions of main shear zone to establish geological model to potentially expand resource inventory.
Helix Resources Limited Annual Report 2014
19
Huallillinga Copper/Gold Project [100%]
Huallillinga Project is a large 95km² area with significant potential for shear hosted copper and gold and porphyry systems. From the field activities
undertaken to date, Helix has recognised at least two mineralising events associated with large structures and a large alteration system that is being
assessed for its porphyry potential.
Embrujado Copper/Gold Project [100%]
The Embrujado Project is a series of exploration concessions totalling 100km² area east of the Huallillinga Project with additional potential for shear
hosted copper and gold associated with the Los Mantos shear zone.
Hado Gold/Copper Project [100%]
The Hado Project targets the same geological domain as the Joshua Area (Cretaceous volcanics intruded by Paleocene intrusives) and is situated
25km S of Joshua and 18km by road from the township of Monte Patria. Hydrothermal breccias, brecciated andesite, diorite porphyry and intrusive
granodiorite lithologies have been identified in first-pass geological mapping.
Exploration activities in Chile will continue 2H14 directed at specific geological, geophysical, structural and alteration targets to confirm and advance
overall prospectivity of our project portfolio in Region IV.
AUSTRALIA
Copper
Collerina Copper(+Gold) Project – NSW -[Helix 100% precious and base metals]
The Collerina Prospect has an historic copper working (early 1900’s) and was subject to a broad-spaced 3 hole drilling program by CRA in the 1980’s.
Copper mineralisation was intersected in all three holes (4m @ 2.4% Cu from 54m, 48m @ 0.6% Cu from 30m and 4.6m @ 1.1% Cu from 65m). There
has been limited exploration activity on the Prospect since.
Work conducted by Helix has highlighted copper and gold mineralised sup-cropping gossanous material over a strike of at least 500m. Rockchips with
up to 3% Copper and 9.3g/t Gold were returned from sampling along the strike of the prospect area. Helix plans to undertake soil auger sampling, an
EM survey and drill-test the target during 2H14.
Canbelego Copper Project- NSW - [Helix 70%; Straits Resources 30%]
The project, located 40km from Cobar, has a resource (1.5Mt @ 1.2% Cu for 18,000t Inferred) at the Canbelego Mine Prospect. Exploration has
highlighted several zones below and along strike of the drilling that indicate untested plunges may exist. DHEM surveys at Canbelego remain un-tested,
and regional targets including Caballero and Canbelego West show opportunities to expand both oxide and primary copper resources on the project.
Gold
Restdown JV - NSW - [Helix 70%; Glencore 30%]
Helix continues its strategy to grow the existing Inferred resource of 2.6Mt @ 1.2g/t Au for 100,000 oz in this mineral prospective and infrastructure rich
region. Detailed regional geochemical sampling continues to identify new zones and provide encouragement that multiple repeats of Mt Boppy-style
mineralisation are present in the district.
On the Muriel Tank tenement, a series of hydraulic auger soil sampling programs, using Helix’s Landcruiser mounted auger rig, were conducted over
the past field season. Work has identified and confirmed a strong continuous zone of gold anomalism (up to 294ppb Au) over 1 km of strike at the
Browns Prospect. Rock chip sampling from sub-crop and some small historic shafts and pits, have returned up to 15.5g/t Au.
The company has recently completed a maiden RC drilling program and results are pending.
NSW Cobar Regional [Helix 100%]
Helix considers the tenement holding in the region, dominated by VMS style copper and gold systems, has significant copper and gold exploration and
development potential. The company has isolated a series of key structural, geochemical and lithological controls that are being used to prioritise
targets within our tenement holding and with subsequent positive drill results, build on our resource base in the district.
Non-Managed JV - Tunkillia Gold Project - SA [Helix 30% & Tenement owner; WPG Resources 70% & Operator]
Helix strategy remains to dilute our interest under a favourable dilution formula, as WPG funds the project toward a Decision to Mine. HLX holds the
Tenements 100% and the JV agreement requires 100% participant approval to move to mine development.
Iron Ore
Non Managed JV - Yalleen Project - WA [API (AMCI/Boasteel) 70% iron ore rights / Helix 30% [diluting] & Tenement owner]
The current resource stands at 84.3Mt @ 57.2% Fe channel iron (refer to Resources table) in a 572 km² project area in the West Pilbara. Helix is
diluting to a royalty.
Recent corporate activity has seen previous API partner Aquila, taken over by Baosteel/Aurizon. Helix is monitoring these developments and its
implications for the Yalleen agreement and the Company’s interest in the Yalleen Project.
Helix Resources Limited Annual Report 2014
20
Corporate
The Group reported a loss of $1,971,585 during the year after impairment of $2,102,704 of carried forward exploration costs.
Major corporate events include:
•
•
•
The board was restructured on 20 June 2013, and was reduced to three directors on 30 September 2013
Staff were reduced and other cost savings initiatives were introduced to preserve cash
A partial payment of $175,000 was received from Lodestone Equities Ltd in exchange for the extension to the deferred payment of $1.75m due on
31 March 2014 for the sale of Olary Magnetite Pty Ltd
A placement of 30 million FPO shares at $0.025 was made to sophisticated investors to raise $0.75 million to advance Chile and Australian
exploration assets and for working capital
•
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
In the opinion of the Directors, other than disclosed elsewhere in this Report, there were no significant changes in the state of affairs of the Group that
occurred during the period under review.
SUBSEQUENT EVENTS
On 21 August 2014, the Group has entered into an underwriting agreement with sophisticated investors to underwrite the conversion of the first
20,000,000 listed options (HLXO) at $0.015, including those exercised since December 2012, ensuring the Company receives proceeds of at least
$300,000. The underwriters, which are not related parties of the Group, are to be paid an underwriting fee of 3% for a total consideration of $9,000.
The underwriting will ensure the Company has adequate cash available to fund its stated objectives of advancing Helix’s Chile and Australian
exploration assets and for working capital. Since year end, 1,291,477 options were converted to fully paid ordinary shares.
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 [AUDITED]
The Directors of Helix present the Remuneration Report for Non-Executive Directors, Executive Directors and other Key Management Personnel,
prepared in accordance with the Corporations Act 2001 and the Corporations Regulations 2001.
Remuneration Governance
The Board has decided there are no efficiencies to be gained from forming a separate remuneration committee and hence the current board members
carry out the roles that would otherwise be undertaken by a remuneration committee with each director excluding themselves from matters in which
they have a personal interest.
The Board considers and recommends:- compensation arrangements for the Managing Director and senior Executives; remuneration policies and
practices; retirement termination policies and practices; Company share schemes and other incentive schemes; Company superannuation
arrangements and remuneration arrangements for members of the Board.
Principles used to determine the nature and amount of remuneration
Remuneration paid by the Company should be reasonable and fair, taking into account the Company’s legal and industrial obligations, labour market
conditions and scale of business. Remuneration comprises a base salary, benefits and may include Long Term and Short Term incentives to provide
reward for materially improved Company performance.
The Managing Director and Senior Executive’s remuneration is reviewed on an annual basis by the members of the Board. From time to time, a review
of the total remuneration package by an independent consultant in this field may be undertaken to provide an independent reference point.
Any termination payments for the Executive Directors are agreed in advance. The Managing Director is not entitled to any additional termination
payments under their Service Agreements except for compensation for the employment period for the remainder of the term of their agreement.
Overall Remuneration Framework
The remuneration framework provides a mix of fixed and variable “at risk” remuneration and a blend of short and long-term incentives.
The remuneration for executives has three components:
(cid:2)
(cid:2)
(cid:2)
Fixed remuneration, inclusive of superannuation and allowances;
STIs under a performance based cash bonus incentive plan; and
LTIs through participation in the Company’s shareholder approved equity incentive plans.
These three components comprise each executive’s total annual remuneration.
Executive Remuneration
All executives receive a fixed base cash salary and other associated benefits. All executives also receive a superannuation guarantee contribution
required by Australian legislation which was 9.25%. No executives receive any retirement benefits.
Fixed remuneration of executives will be set by the Board each year and is based on market relativity and individual performance. In setting fixed
remuneration for executives, individual performance, skills, expertise and experience are also taken into account to determine where the executive’s
remuneration should sit within the market range. Where appropriate, external remuneration consultants will be engaged to assist the Board to ensure
that fixed remuneration is set to be consistent with market practices for similar roles.
Fixed remuneration for executives will be reviewed annually to ensure each executive’s remuneration remains fair and competitive. However, there is
no guarantee that fixed remuneration will be increased in any service contracts for executives.
Helix Resources Limited Annual Report 2014
21
Short Term Incentives
The Managing Director and other executives were eligible to earn short-term cash bonuses upon achievement of significant performance based
outcomes aligned with the Company’s strategic objectives at that time. These performance based outcomes are considered to be an appropriate link
between executive remuneration and the potential for creation of shareholder wealth. Given market conditions for exploration companies, no short term
incentives were paid during the year.
Long Term Incentives
LTI awards are generally limited to executives, senior in-country managers and other key employees approved by the Board who influence or drive the
strategic direction of the Company. The Company has not issued any LTI’s during the year.
Non-Executive Remuneration
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 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.
Details of Remuneration
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
$
%
$
$
2014
Non –
Executive
Directors
P Rombola
J Macdonald1
G Dunbar2
J den Dryver3
30,000
9,274
25,000
13,730
G Wheeler4
48,387*
Executive
Directors
M Wilson
Key
Management
Personnel
M Naylor5
J McNamara6
185,507
15,000
76,839
C Johnson7
120,057
Total
523,794
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,270
-
17,159
-
5,168
11,105
34,702
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30,000
9,274
25,000
15,000
48,387
202,666
15,000
82,007
131,162
558,496
1 Appointed as a Director on 10 March 2014.
2 Resigned as a Director on 30 April 2014.
3 Resigned as a Director on 30 September 2013.
4 Mr Wheeler resigned as an executive director on 19 June 2013 and became a Non-Executive Director on 20 June 2013. Resigned as a Director of 30 September 2013.
5 Appointed as CFO and Company Secretary on 22 May 2014.
6 Resigned as CFO and Company Secretary on 22 May 2014.
7 Made redundant as Exploration Manager on 26 May 2014.
* $8,465 relates to non-executive director fees. $5,000 relates to consulting fees.
Helix Resources Limited Annual Report 2014
22
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
$
%
$
$
2013
Non-
Executive
Directors
J den Dryver
27,523
30,000
G Dunbar
Executive
Directors
G Wheeler
302,247
M Wilson
228,990
Key
Management
Personnel
J McNamara
79,969
C Johnson
162,203
Total
830,932
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,477
-
27,203
20,610
7,197
14,598
72,085
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30,000
30,000
329,450
249,600
87,166
176,801
903,017
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 against a number of qualitative and quantitative factors.
Consequences of performance on shareholder wealth
In considering the Group’s performance and benefits for shareholder wealth, the Board have regard to the following indices in respect of the current
financial year and the previous four financial years:
Item
Revenue
Net profit/(loss)
Share Price
Dividends
2010
2011
2012
2013
2014
431,802
(6,885,378)
$0.061
Nil
353,478
(708,373)
$0.075
Nil
231,667
(441,374)
$0.036
Nil
5,721,673
2,730,290
$0.032
Nil
112,425
(1,971,585)
$0.026
Nil
Service Agreements
Remuneration and other terms of employment for the Executive Directors and other Key Management Personnel are formalized in a service agreement.
The major provisions of the agreements relating to remuneration are set out below.
Name
Base Salary / Fee
Term of Agreement
Notice Period by
Company
Notice Period from
Executive
M Wilson
M Naylor
200,000
90,000
12 months expiring 20 June 2015
Not specified
2 months
2 months
2 months
2 months
.
Share-based remuneration
There was no share based remuneration during the year.
Options held by Directors
As at 30 June 2014 the Company had issued no share options (30 June 2013: nil) in relation to the company’s share option plan. 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.
Helix Resources Limited Annual Report 2014
23
The number of options to acquire shares in the Company held during the 2014 reporting period by each Director and Key Management Personnel of the
Group, including their related parties are set out below. No options are held by Key management Personnel.
Director/Key
Management
Personnel
M Wilson
J Macdonald
G Dunbar
J den Dryver
G Wheeler
J McNamara
C Johnson
Balance as at 1
July 2013
Purchased
Exercised
Other
Movements
Balance as at 30 June 2014
783,234
-
350,000
200,000
4,744,500
42,417
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
415,0001
(350,000)2
(200,000)2
(4,744,500)2
(42,417)2
-
783,234
415,000
-
-
-
-
-
1 These options were owned at the date of appointment.
2 These options were held by at the date of resignation.
All options are exercisable, have no vesting conditions and were not granted as part of remuneration.
Shares held by Directors and Key Management Personnel
Director/Key
Management
Personnel
P Rombola
J Macdonald
M Wilson
G Dunbar
J den Dryver
G Wheeler
J McNamara
C Johnson
Balance as at 1
July 2013
Purchased
Disposed
Other
Movements
Balance as at 30 June 2014
or date of resignation
5,813,8291
-
2,349,700
1,050,000
600,000
16,873,259
142,256
-
1,619,256
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,087,5001
-
-
-
-
-
-
7,433,085
8,087,500
2,349,700
1,050,0002
600,0002
16,873,2592
142,2562
-
1 These shares were owned at the date the Director was appointed.
2 These options were held by at the date of resignation.
No shares were issued as part of remuneration.
Related Party Transactions
The Company has adopted a policy to contract the services of certain Director Related entities to retain access to relevant expertise. The policy
provides that Helix will only enter into a transaction with a Director Related entity in the following circumstances:-
a. Any proposed transaction is at arm’s length and on normal commercial terms; and
b. Where it is believed that the Director Related entity is the best equipped to undertake the work after taking into account: experience,
expertise, knowledge of the Group; and value for money.
Use of Remuneration Consultants
During the year ended 30 June 2014 the Board did not engage the services of remuneration consultants.
Voting and comments made at the Company’s last Annual General Meeting
Helix received more than 99% of “yes” votes on its Remuneration Report for the financial year ending 30 June 2013. The Company received no
specific feedback on its Remuneration Report at the Annual General Meeting.
END OF AUDITED REMUNERATION REPORT
OFFICERS’ INDEMNITY AND INSURANCE
During the year the Company paid an insurance premium to insure the Directors and Officers of the Company and related bodies corporate. The
Officers of the Company covered by the insurance policy include the Directors named in this report.
The Directors’ and Officers’ Liability insurance provides cover against all costs and expenses that may be incurred in defending civil or criminal
proceedings that fall within the scope of the indemnity and that may be brought against the officers in their capacity as officers of the Company or a
related body corporate. The insurance policy does not contain details of the premium paid in respect of individual officers of the Company. Disclosure of
the nature of the liability cover and the amount of the premium is subject to a confidentiality clause under the insurance policy.
Helix Resources Limited Annual Report 2014
24
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
Entitled to
Attend
Attended
Entitled to
Attend
Attended
Entitled to
Attend
Attended
5
5
2
1
1
3
5
5
2
1
1
3
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
P Rombola
M Wilson
J Macdonald1
G Wheeler2
J den Dryver2
G Dunbar3
1 Appointed Non-Executive Director on 10 March 2014
2 Resigned 30 September 2013
3 Resigned 30 April 2014
NON-AUDIT SERVICES
The auditors did not provide any non-audit services during the financial year.
AUDITOR’S INDEPENDENCE DECLARATION
The auditor’s independence declaration is included on page 26 of the financial report.
Dated at Perth this 26th day of September 2014.
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.
Pasquale Rombola
Non-Executive Chairman
Competent Persons Statement
The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr
M Wilson who is a full time employee of Helix Resources Limited and 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.
Details of the assumptions underlying any Resource estimations are contained in previous ASX releases or at www.helix.net.au
Helix Resources Limited Annual Report 2014
25
AUDITOR’S INDEPENDENCE DECLARATION
Auditor’s Independence Declaration
To the Directors of Helix Resources Limited
Level 1
10 Kings Park Road
West Perth WA 6005
Correspondence to:
PO Box 570
West Perth WA 6872
T +61 8 9480 2000
F +61 8 9322 7787
E info.wa@au.gt.com
W www.grantthornton.com.au
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead
auditor for the audit of Helix Resources Limited for the year ended 30 June 2014, I declare
that, to the best of my knowledge and belief, there have been:
a
b
no contraventions of the auditor independence requirements of the Corporations Act
2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the
audit.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
C A Becker
Partner - Audit & Assurance
Perth, 26 September 2014
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the
context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm
is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and
are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its
Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current
scheme applies.
Helix Resources Limited Annual Report 2014
26
INDEPENDENT AUDIT REPORT
Independent Auditor’s Report
To the Members of Helix Resources Limited
Level 1
10 Kings Park Road
West Perth WA 6005
Correspondence to:
PO Box 570
West Perth WA 6872
T +61 8 9480 2000
F +61 8 9322 7787
E info.wa@au.gt.com
W www.grantthornton.com.au
Report on the financial report
We have audited the accompanying financial report of Helix Resources Limited (the
“Company”), which comprises the consolidated statement of financial position as at 30 June
2014, the consolidated statement of profit or loss and other comprehensive income,
consolidated statement of changes in equity and consolidated statement of cash flows for
the year then ended, notes comprising a summary of significant accounting policies and
other explanatory information and the directors’ declaration of the consolidated entity
comprising the Company and the entities it controlled at the year’s end or from time to time
during the financial year.
Directors’ responsibility for the financial report
The Directors of the Company are responsible for the preparation of the financial report
that gives a true and fair view in accordance with Australian Accounting Standards and the
Corporations Act 2001. The Directors’ responsibility also includes such internal control as
the Directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or
error. The Directors also state, in the notes to the financial report, in accordance with
Accounting Standard AASB 101 Presentation of Financial Statements, the financial
statements comply with International Financial Reporting Standards.
Auditor’s responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We
conducted our audit in accordance with Australian Auditing Standards. Those standards
require us to comply with relevant ethical requirements relating to audit engagements and
plan and perform the audit to obtain reasonable assurance whether the financial report is
free from material misstatement.
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the
context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm
is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and
are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its
Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current
scheme applies.
Helix Resources Limited Annual Report 2014
27
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial report. The procedures selected depend on the auditor’s
judgement, including the assessment of the risks of material misstatement of the financial
report, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the
Company’s preparation of the financial report that gives a true and fair view in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the Company’s internal control. An audit
also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by the Directors, as well as evaluating the
overall presentation of the financial report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion.
Independence
In conducting our audit, we have complied with the independence requirements of the
Corporations Act 2001.
Auditor’s opinion
In our opinion:
a
b
the financial report of Helix Resources Limited is in accordance with the
Corporations Act 2001, including:
i
ii
giving a true and fair view of the consolidated entity’s financial position as at 30
June 2014 and of its performance for the year ended on that date; and
complying with Australian Accounting Standards and the Corporations
Regulations 2001; and
the financial report also complies with International Financial Reporting Standards as
disclosed in the notes to the financial statements.
Report on the remuneration report
We have audited the remuneration report included in pages 21 to 24 of the directors’ report
for the year ended 30 June 2014. The Directors of the Company are responsible for the
preparation and presentation of the remuneration report in accordance with section 300A of
the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration
report, based on our audit conducted in accordance with Australian Auditing Standards.
Helix Resources Limited Annual Report 2014
28
Auditor’s opinion on the remuneration report
In our opinion, the remuneration report of Helix Resources Limited for the year ended 30
June 2014, complies with section 300A of the Corporations Act 2001.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
C A Becker
Partner - Audit & Assurance
Perth, 26 September 2014
Helix Resources Limited Annual Report 2014
29
DIRECTORS’ DECLARATION
The Directors of the company declare that:
1.
The consolidated financial statements and notes, as set out on pages 31 to 53 are in accordance with the Corporations Act 2001 and:-
a.
b.
c.
comply with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations
2001; and
give a true and fair view of the financial position as at 30 June 2014 and of the performance for the year ended on that date of the
group; and
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
Pasquale Rombola
Chairman
Signed at Perth this 26th day of September 2014.
Helix Resources Limited Annual Report 2014
30
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2014
Note
2
3
4
6
7
3
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
Trade and Other Receivables
Other Financial Assets
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and Other Payables
Short Term Provisions
Total Current Liabilities
Non- Current Liabilities
Long Term Provisions
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Share Capital
Reserves
Accumulated Losses
Total Equity
CONSOLIDATED
2014
$
2013
$
1,711,410
2,840,252
79,235
60,624
1,825,754
240
1,851,269
4,666,246
52,859
94,962
11,892,694
12,038,911
2,500,243
123,585
14,569,381
16,420,650
242,370
44,981
287,351
467
467
1,000,000
200,000
13,333,873
18,000,119
478,381
186,735
665,116
5,602
5,602
287,818
670,718
16,132,832
17,329,401
60,009,350
59,192,640
873,247
914,941
(44,749,765)
16,132,832
(42,778,180)
17,329,401
This statement should be read in conjunction with the Notes to the Financial Statements
Helix Resources Limited Annual Report 2014
31
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014
Revenue
Employment Costs
Audit and Accountancy
Corporate Marketing
Directors’ Fees
Depreciation
Foreign Exchange Loss
Impairment of Exploration and Evaluation Assets
I T Costs
Premises Costs
Professional Services
Travel expenses
Revaluation of Shares in Listed Companies
Share of loss from equity accounted investment
Other expenses
Finance costs
Profit / (Loss) before income tax
Income tax benefit
Profit / (Loss) for the year
Other Comprehensive Income
Fair value movements on available for sale financial
assets
Income tax relating to other comprehensive income
Other comprehensive income, after tax
Total Comprehensive Profit / (Loss) attributable
to members of Helix Resources Limited
Earnings/(Loss) Per Share
Basic (cents per share)
Diluted (cents per share)
Note
13
14
7
18
20
20
CONSOLIDATED
2014
$
2013
$
112,425
5,721,673
(118,482)
(86,892)
(19,001)
(48,971)
(17,691)
(8,832)
(85,833)
(69,670)
(11,962)
(38,560)
(31,056)
-
(2,102,704)
(2,873,508)
(2,919)
(40,585)
(13,964)
(9,473)
384
-
(45,969)
(74,757)
(2,477,431)
505,846
,
(1,971,585)
-
-
-
(8,427)
(43,607)
(41,035)
(3,849)
(336)
(42,646)
(33,534)
0
2,437,649
292,641
2,730,290
-
-
-
(1,971,585)
2,730,290
(0.96)
(0.96)
1.33
1.33
This statement should be read in conjunction with the Notes to the Financial Statements
Helix Resources Limited Annual Report 2014
32
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014
Note
Cash Flow From Operating Activities
Payments to suppliers and employees
Interest received
Income tax benefit
Other receipts
Net cash provided by operating activities
2(b)
Cash Flow From Investing Activities
Payments for capitalised exploration & evaluation
expenditure
Payments for property, plant & equipment
Proceeds from sale of mineral interest
Proceeds from sale of available for sale financial assets
Proceeds from security deposits
Net cash provided by/used in investing activities
Cash Flow From Financing Activities
Proceeds from issue of shares
Proceeds from issue of options
Net cash provided by financing activities
Net increase / (decrease) in cash and cash equivalents held
Exchange rate adjustment
Cash and cash equivalents at beginning
of financial year
Cash and cash equivalents at End
of Financial Year
2(a)
CONSOLIDATED
2014
$
2013
$
(471,033)
(236,770)
45,288
505,846
53,921
134,022
73,072
292,641
139,488
268,431
(2,220,463)
(2,664,785)
-
(3,700)
175,000
2,500,000
-
16,415
(2,029,048)
750,000
25,016
775,016
740,474
2,712
574,701
918,879
2,362
921,241
(1,120,010)
1,764,373
(8,832)
-
2,840,252
1,075,879
1,711,410
2,840,252
This statement should be read in conjunction with the Notes to the Financial Statements
Helix Resources Limited Annual Report 2014
33
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014
CONSOLIDATED
2014
Total equity at the beginning of the financial
year
Shares issued during the financial year
Exercise of options during the financial year
Share Capital
Ordinary
Other Reserves
$
$
Accumulated
Losses
$
Total
$
59,192,640
914,941
(42,778,180)
17,329,401
750,000
66,710
-
(41,694)
-
-
750,000
25,016
Total transactions with owners
60,009,350
873,247
(42,778,180)
18,104,417
Loss for the year
Other comprehensive income for the year
Total comprehensive income
-
-
-
-
-
-
Total equity at the end of the financial year
60,009,350
873,247
(1,971,585)
(1,971,585)
-
-
(1,971,585)
(1,971,585)
44,749,765
16,132,832
CONSOLIDATED
2013
Total equity at the beginning of the financial
year
Shares sold during the financial year
Options issued during the financial year
Exercise of options during the financial year
Expiry of options during the financial year
Share Capital
Ordinary
Other Reserves
$
$
Accumulated
Losses
$
Total
$
59,186,339
665,000
(45,513,470)
14,337,869
-
-
6,301
-
(660,000)
918,879
(3,938)
(5,000)
-
-
-
5,000
(660,000)
918,879
2,363
-
Total transactions with owners
59,192,640
914,941
(45,508,470)
14,599,111
Profit for the year
Other comprehensive income for the year
Total comprehensive income
-
-
-
-
-
-
2,730,290
2,730,290
-
-
2,730,290
2,730,290
Total equity at the end of the financial year
59,192,640
914,941
(42,778,180)
17,329,401
This statement should be read in conjunction with the Notes to the Financial Statements
Helix Resources Limited Annual Report 2014
34
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014
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 controlled entities. The Group is a for-profit entity for financial
reporting purposes.
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 avail-
able-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 Group financial statements consolidate those of the Parent Company and all of its subsidiaries as of 30 June 2014. The Parent controls a
subsidiary if it is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns
through its power over the subsidiary. All subsidiaries have a reporting date of 30 June.
All transactions and balances between Group companies are eliminated on consolidation, including unrealised gains and losses on transactions
between Group companies. Where unrealised losses on intra-group asset sales are reversed on consolidation, the underlying asset is also
tested for impairment from a group perspective. Amounts reported in the financial statements of subsidiaries have been adjusted where
necessary to ensure consistency with the accounting policies adopted by the Group.
Profit or loss and other comprehensive income of subsidiaries acquired or disposed of during the year are recognised from the effective date of
acquisition, or up to the effective date of disposal, as applicable.
Non-controlling interests, presented as part of equity, represent the portion of a subsidiary’s profit or loss and net assets that is not held by the
Group. The Group attributes total comprehensive income or loss of subsidiaries between the owners of the parent and the non-controlling
interests based on their respective ownership interests.
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 ap-
plied 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.
Rebates received for research and development tax concessions are recognised in the profit or loss.
Helix Resources Limited Annual Report 2014
35
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 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%
De-recognition and disposal
An item of property, plant and equipment is derecognised on disposal or when no further future economic benefits are expected from its use or
disposal. Any gain or loss arising on the de-recognition of the asset (calculated as the difference between the net disposal proceeds and the
carrying amount of the asset) is included in profit and loss in the year the asset is derecognised.
e) Exploration and evaluation
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are only carried
forward to the extent that they are expected to be recouped through the successful development of the area or where activities in the area have
not yet reached a stage 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 peri-
ods 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 recogni-
tion. 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 man-
agement. 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 reporting
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 reporting 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 man-
agement 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 reporting date.
Purchases and sales of investments are recognised on trade-date - the date on which the Group commits to purchase or sell the asset. Invest-
ments 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 profit or loss and other 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 2014
36
When securities classified as available-for-sale are sold or impaired, the accumulated fair value adjustments are included in profit or loss 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 reporting 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 or loss - is removed from equity and recognised in profit or loss. Impairment losses recognised in the profit or loss on equity
instruments are not reversed through the profit or loss.
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 tar-
gets). Non-market vesting conditions are included in assumptions about the number of options that are expected to become exercisable. At each
reporting 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 Associates and Joint Ventures
i)
Associates are those entities over which the Group is able to exert significant influence but which are not subsidiaries.
A joint venture is an arrangement that the Group controls jointly with one or more other investors, and over which the Group has rights to a share
of the arrangement’s net assets rather than direct rights to underlying assets and obligations for underlying liabilities. A joint arrangement in
which the Group has direct rights to underlying assets and obligations for underlying liabilities is classified as a joint operation.
Investments in associates and joint ventures are accounted for using the equity method. Interests in joint operations are accounted for by
recognising the Group’s assets (including its share of any assets held jointly), its liabilities (including its share of any liabilities incurred jointly), its
revenue from the sale of its share of the output arising from the joint operation, its share of the revenue from the sale of the output by the joint
operation and its expenses (including its share of any expenses incurred jointly).
Any goodwill or fair value adjustment attributable to the Group’s share in the associate or joint venture is not recognised separately and is
included in the amount recognised as investment.
The carrying amount of the investment in associates and joint ventures is increased or decreased to recognise the Group’s share of the profit or
loss and other comprehensive income of the associate and joint venture, adjusted where necessary to ensure consistency with the accounting
policies of the Group.
Unrealised gains and losses on transactions between the Group and its associates and joint ventures are eliminated to the extent of the Group’s
interest in those entities. Where unrealised losses are eliminated, the underlying asset is also tested for impairment.
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.
Helix Resources Limited Annual Report 2014
37
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 allowance for impairment.
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 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.
Impairment of Non-financial Assets
n)
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
o)
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 reporting 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
reporting 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.
p) 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 following:
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
$11.89M.
Fair value of options issued
Management apply valuation techniques to determine the fair value of financial instruments where active market quotes are not available. This
requires management to develop estimates and assumptions based on market inputs, using observable data that market participants would
use in pricing the instrument. Where such data is not observable, management uses its best estimate. Estimated fair values of financial
instruments may vary from the actual prices that would be achieved in an arm’s length transaction at the reporting date.
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 profit or loss and other 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.
Helix Resources Limited Annual Report 2014
38
r) New Accounting Standards for Application in Future Periods
The AASB has issued a number of new and amended Accounting Standards and Interpretations that have mandatory application dates for
future reporting period, some of which are relevant to the Group. The Group has decided not to early adopt any of the new and amended
pronouncements. The Group’s assessment of the new and amended pronouncements that are relevant to the Group but applicable in future
reporting periods is set out below:
AASB 9 Financial Instruments (December 2010) introduces new requirements for the classification and measurement of financial
assets and liabilities. These requirements improve and simplify the approach of classification and measurement of financial assets
compared with the requirements of AASB 139. The Group has not yet assessed the full impact of AASB 9 as this standard does not
apply mandatorily before 1 January 2018.
AASB 10 Consolidated Financial Statements establishes a revised definition of “control” and additional application guidance so that a
single control model will apply to all investees. When adopted, this Standard is not expected to significantly impact the Group’s
financial statements.
AASB 11 Joint Arrangements requires joint arrangements to be classified as either “joint operations” (where the parties that have joint
control of the arrangement have rights to the assets and obligations for the liabilities) or “joint ventures” (where the parties that have
joint control of the arrangement have rights to the net assets of the arrangement). When adopted, this Standard is not expected to
significantly impact the Group’s financial statements.
AASB 12 Disclosure of Interests in Other Entities contains the disclosure requirements applicable to entities that hold an interest in a
subsidiary, joint venture, joint operation or associate. AASB 12 also introduces the concept of a “structured entity”, replacing the
“special purpose entity: concept currently used in Interpretation 112, and requires specific disclosures in respect of any investments in
unconsolidated structured entities. As this is a disclosure standard only, there will be no impact on amounts recognised in the Group’s
financial statements. However, additional disclosures will be required for interests in associates and joint arrangements.
AASB 119 Employee Benefits contains amendments in relation to the requirements for contributions from employees or third parties
that are linked to service. The amendments clarify that if the amount of the contributions is independent of the number of years of
service, an entity is permitted to recognise such contributions as a reduction in the service cost in the period in which the related
service is rendered, instead of attributing the contributions to the periods of service. In contrast, if the amount of the contributions is
dependent on the number of years of service, an entity is required to attribute those contributions to periods of service using the same
attribution method required by paragraph 70 of AASB 119 for the gross benefit. When these amendments are first adopted, there will
be no material impact on the entity.
AASB 2012-3 Amendments to Australian Accounting Standards – Offsetting financial assets and financial liabilities adds application
guidance to AASB 132 to address inconsistencies identified in applying some of the offsetting criteria of AASB 132. There will be no
impact on the Group as this standard merely clarifies existing requirements of AASB 132.
AASB 2013-3 Recoverable Amount Disclosures for Non-Financial Assets contains narrow-scope amendments that address disclosure
of information about the recoverable amount of impaired assets if that amount is based on fair value less costs of disposal. These
amendments are unlikely to have any significant impact on the Group given that they are largely of the nature of clarification of existing
requirements.
AASB 2014-1 Amendments to Australian Accounting Standards makes amendments to various Australian Accounting Standards, one
of them being AASB 13 Fair Value Measurement. AASB 2014-1 amends paragraph 52 of AASB 13. An entity shall apply that
amendment for annual reporting periods beginning on or after 1 July 2014. The Group has not yet assessed the full impact of these
amendments.
s) Going Concern
The Directors have prepared the financial statements on a going concern basis, which contemplates continuity of normal business activities and
the realisation of assets and extinguishment of liabilities in the ordinary course of business.
The Group’s operations require it to raise capital on an on-going basis to fund its planned exploration program and to monetise 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 arrangements where exploration is funded by a third party.
t)
Foreign Currency Translation
Functional and presentation currency
The consolidated financial statements are presented in Australian dollars (AUD), which is also the functional currency of all entities in the group.
Foreign currency transactions and balances
Foreign currency transactions are translated into the functional currency of the respective Group entity, using the exchange rates prevailing at
the dates of the transactions (spot exchange rate). Foreign exchange gains and losses resulting from the settlement of such transactions and
from the re-measurement of monetary items at year end exchange rates are recognised in profit or loss. Non-monetary items are not
retranslated at year-end and are measured at historical cost (translated using the exchange rates at the date of the transaction), except for non-
monetary items measured at fair value which are translated using the exchange rates at the date when fair value was determined.
Helix Resources Limited Annual Report 2014
39
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 at Bank – Chile
Cash at Bank – FX Account
Total Cash
b) Reconciliation of loss after income tax to cash flows provided by operating activities
Profit /(Loss) after income tax
Non-cash flows in Loss
Depreciation
Impairment of Exploration and evaluation
Profit on sale of fixed assets
Loss on revaluation of fair value through profit & loss
financial assets
Loss on foreign exchange transactions
Finance costs
Cash flows excluded from profit attributable to
operating activities
Option fee received on sale of mineral interest
Changes in Net Assets and Liabilities
(Increase)/Decrease in Assets
(Increase)/decrease in trade and other receivables
Increase/(Decrease) in Liabilities
Increase / (decrease) in trade and other payables
Increase / (decrease) in provisions
Net Cash provided by Operating Activities
CONSOLIDATED
2014
$
2013
$
1,482,547
2,618,994
10,330
218,533
43,021
178,237
1,711,410
2,840,252
CONSOLIDATED
2014
$
(1,971,585)
17,691
2,102,704
(13,058)
(384)
8,832
74,757
2013
$
2,730,290
31,056
2,873,508
(620,475)
336
(4,264,934)
-
(500,000)
43,846
(81,058)
18,108
(146,889)
134,022
104,939
(5,231)
268,431
Helix Resources Limited Annual Report 2014
40
3. TRADE AND OTHER RECEIVABLES
CURRENT RECEIVABLES
Prepayments
Deferred payment for sale of Olary Magnetite Pty Ltd
to Lodestone Equities Ltd
Other Receivables
Total Current Receivables
CONSOLIDATED
2014
$
2013
$
11,753
13,140
-
1,750,000
67,482
79,235
62,614
1,825,754
All amounts are short term. The net carrying value of trade receivables is considered a reasonable approximation of fair value.
NON-CURRENT RECEIVABLES
Deferred payment for sale of Olary Magnetite Pty Ltd
to Lodestone Equities
Total Non-Current Receivables
CONSOLIDATED
2014
$
2013
$
2,500,243
2,500,243
1,000,000
1,000,000
The amount receivable from Lodestone Equities Limited of $2,500,243 is considered to be recoverable either by completing the transaction on a revised
timeframe, entering a commercial arrangement with Lodestone or via the rights held by Helix Resources Limited under the Olary Magnetite Sale
Agreements. Under the Sale Agreement, Helix Resources Limited has the right to elect to reclaim the assets previously sold, and that there would be no
impairment required to be recognised.
4. OTHER FINANCIAL ASSETS
Current:
Security Deposits
Shares in listed corporations – at fair value
through profit or loss
Total Current Financial Assets
4(a) Shares in subsidiaries
Name
CONSOLIDATED
2014
$
2013
$
60,000
624
60,624
-
240
240
Country of Incorporation
Percentage Held
Percentage Held
Oxley Exploration Pty Ltd
Leichhardt Resources (QLD) Pty Ltd
Helix Resources (Overseas) Pty Ltd
Helix Resources Chile Limitada
Australia
Australia
Australia
Chile
2014
100%
100%
100%
100%
2013
100%
100%
100%
100%
Helix Resources Limited Annual Report 2014
41
5. OTHER FINANCIAL ASSETS
Non-Current
Security Deposits
Total Other Assets – Non-Current
6. PROPERTY, PLANT AND EQUIPMENT
2014
Gross Carrying Amount
Balance at 30 June 2013
Disposals
Balance at 30 June 2014
Accumulated Depreciation
Balance at 30 June 2013
Depreciation
Depreciation write off on disposal
Balance at 30 June 2014
Net Book Value
30 June 2013
30 June 2014
CONSOLIDATED
2014
$
2013
$
123,585
123,585
200,000
200,000
CONSOLIDATED
Plant & Equipment
$
Motor Vehicles
$
180,678
(61,145)
119,533
126,803
10,247
(50,971)
86,079
53,875
33,454
182,556
(87,700)
94,856
141,469
7,444
(73,462)
75,451
41,087
19,405
Total
$
363,234
(148,845)
214,389
268,272
17,691
(124,433)
161,530
94,962
52,859
Helix Resources Limited Annual Report 2014
42
2013
Gross Carrying Amount
Balance at 30 June 2012
Additions
Balance at 30 June 2013
Accumulated Depreciation
Balance at 30 June 2012
Depreciation
Balance at 30 June 2013
Net Book Value
30 June 2012
30 June 2013
CONSOLIDATED
Plant & Equipment
$
Motor Vehicles
$
176,978
3,700
180,678
146,014
19,211
126,803
69,386
53,875
182,556
-
182,556
153,314
11,845
141,469
52,932
41,087
Total
$
359,534
3,700
363,234
299,328
31,056
268,272
122,318
94,962
7. EXPLORATION AND EVALUATION EXPENDITURE (NON-CURRENT)
Balance at beginning of the financial year
Expenditure incurred during the year
Sale of Olary Magnetite area of interest
Impairment losses
Balance at the end of the financial year
CONSOLIDATED
2014
$
12,038,911
1,956,487
-
(2,102,704)
11,892,694
2013
$
12,558,617
3,058,659
(704,857)
(2,873,508)
12,038,911
The Directors' assessment of carrying amount was after consideration of prevailing market conditions; previous expenditure carried out on the tene-
ments; and the potential for mineralisation based on both the entity's and independent geological reports. The ultimate value of these assets is de-
pendent upon recoupment by commercial development or the sale of the whole, or part, of the Group's interests in those areas for an amount at least
equal to the carrying value. There may exist, on the Group’s exploration properties, areas subject to claim under native title or containing sacred sites or
sites of significance to Aboriginal people. As a result, exploration properties or areas within the tenements may be subject to exploration and mining
restrictions.
The impairment losses for the current financial year related to the following projects:
• Oxley Exploration Pty Ltd ($994,893) – tenements were relinquished.
•
•
Restdown JV project ($522,723) - Carrying value was adjusted to reflect reductions in tenure with remaining Expenditure carried forward.
Tunkillia JV project ($585,088) – Carrying value was adjusted to reflect current market value.
8. TRADE AND OTHER PAYABLES (CURRENT)
Trade payables
All amounts are short term. The carrying value of trade payables is considered to be a reasonable
approximation of fair value.
CONSOLIDATED
2014
$
2013
$
242,370
478,381
Helix Resources Limited Annual Report 2014
43
9. PROVISIONS
Current
Employee Benefits
Balance at end of financial year
Non -Current
Employee Benefits
Balance at end of financial year
10. SHARE CAPITAL
236,474,341 Fully Paid Ordinary Shares (2013:
204,806,589)
Balance at end of financial year
Fully Paid Ordinary Shares
Balance at beginning of financial year
Conversion HLXO Options @ $0.04
44,981
44,981
467
467
186,735
186,735
5,602
5,602
60,009,350
59,192,640
60,009,350
59,192,640
2014
2013
No
$
No
$
204,806,589
59,192,640
204,649,072
59,186,339
1,667,752
66,710
750,000
157,517
-
6,301
-
Share Issue: 30,000,000 Fully Paid Shares @ $0.025
30,000,000
Balance at end of financial year
236,474,341
60,009,350
204,806,589
59,192,640
Fully paid ordinary shares have no par value, carry one vote per share and carry the right to dividends. Options carry no voting rights until converted to
fully paid ordinary shares.
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.
11. OTHER RESERVES
2014
No.
$
Listed Options
Balance at beginning of financial year
36,597,605
914,941
Options issued during the financial year
Exercise of Options to Fully Paid Shares
Balance at end of financial year
-
(1,667,752)
34,929,853
-
(41,694)
873,247
2013
No.
-
36,755,122
(157,517)
36,597,605
$
-
918,879
(3,938)
914,941
Helix Resources Limited Annual Report 2014
44
2014
2013
No.
$
No.
$
Share Options
Balance at beginning of financial year
Expiry of Terminated Employee Incentive Options
Issue of Options to corporate consultant
Expiry of Options to corporate consultant
-
-
-
-
-
-
-
-
Balance at end of financial year
The Listed and Share Options Reserves records items recognised as expenses on valuation of options.
-
-
Financial Assets Reserve
Balance at beginning of financial year
Fair Value of Gascoyne Resources shares
Sale of Gascoyne Resources shares
Balance at end of financial year
The financial asset reserve records revaluation of available for sale financial assets.
12. ACCUMULATED LOSSES
Balance at beginning of financial year
Net Profit / (Loss) attributable to members of the parent
entity
Expiry of Options to corporate consultant
Balance at end of financial year
13. REVENUE
Loss before Income Tax includes the following items of revenue and expense:
Operating Activities
Interest Revenue
Joint Venture Management Fee
Other
Total Operating Revenue
Other Revenue
Lodestone Equities Ltd Option Fee – Olary Magnetite Pty Ltd
Profit on Sale of Mineral Interest – Olary Magnetite Pty Ltd
Profit on sale of available for sale financial assets
Profit on sale of fixed assets
Total Other Revenue
Total Revenues
7,500,000
5,000
-
-
-
-
(7,500,000)
(5,000)
-
-
CONSOLIDATED
2014
$
2013
$
-
-
-
-
660,000
-
(660,000)
-
(42,778,180)
(45,513,470)
(1,971,585)
2,730,290
-
5,000
(44,749,765)
(42,778,180)
CONSOLIDATED
2014
$
2013
$
45,446
-
53,921
99,367
-
-
-
13,058
13,058
112,425
74,473
164,893
54,252
293,618
500,000
4,307,580
620,475
-
5,428,055
5,721,673
Helix Resources Limited Annual Report 2014
45
14. LOSS FOR THE YEAR
Expenses
Depreciation of non-current assets: Property, plant and
equipment
Impairment of exploration and evaluation assets
Operating lease rental expenses: Minimum lease
payments
Defined contribution superannuation expense
Finance Costs
Profit / (Loss) for the year
15. COMMITMENTS
a)
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
2014
$
2013
$
17,691
31,056
2,102,704
2,873,508
151,896
53,090
74,757
(1,971,585)
137,385
90,868
-
2,730,290
17,710
114,419
-
-
-
-
17,710
114,419
The lease for the shed is for a 1 year term with no option to extend. As at reporting date, there was a balance of 9 months remaining on the lease.
Subsequent to 30 June 14, the company renewed its office lease from 1 July 2014 until 31 December 2014 at a cost of $40,650.
b) Exploration Expenditure Commitments
In order to maintain current rights of tenure to exploration tenements, the Group is 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 commitments beyond the next 12 months. It is anticipated that expenditure commitments for the
next twelve months will be tenement rentals of $191,755 (2013: $120,000) and, subject to cash reserves and economic conditions, exploration
expenditure of $1,031,473 including the above rentals (2013: $1,068,000). JV partners are expected to fund activities in accordance with our current
Joint Venture arrangements.
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
Total
17. RELATED PARTY AND DIRECTORS’ DISCLOSURES
a) Other Transactions with key management personnel
2014
$
523,794
34,702
558,496
2013
$
830,932
72,085
903,017
There were no items of expenses that resulted from transactions other than remuneration with key management personnel or their personally-related
entities as shown in the remuneration report. Transactions between related parties are on normal commercial terms and conditions unless otherwise
stated.
Helix Resources Limited Annual Report 2014
46
18. INCOME TAX
Accounting profit / (loss) before tax from continuing operations
Accounting profit / (loss) before tax
Reconciliation of Income Tax Expense / (Benefit) to Accounting Profit / (Loss)
Prima facie tax payable / (benefit) at Australian rate of 30% (2013 – 30%)
Prima facie tax payable / (benefit) at Chilean rate of 20% (2013 – 20%)
Adjusted for tax effect of the following:
- taxable / non-deductible items
- non-taxable / deductible items
-under / (over) provision in prior year
- benefit of previously unrecognised tax losses
- adjustment for change of Chilean tax rate
- income tax benefit not brought to account
Income tax expense / (benefit)
Statement of Profit or Loss and Other Comprehensive Income
Current income tax charge
R&D tax benefit
Deferred income tax
Relating to origination and reversal of temporary differences
Australian temporary differences not brought to account
Adjustment for change of Chilean tax rate
Chilean deferred tax liabilities offset by deferred tax asset losses
Income tax expense/(benefit) reported in statement of profit or loss & other comprehensive income
Unrecognised Deferred Tax Balances:
Australian deferred tax asset losses
Australian deferred tax asset losses lapsed
Chilean deferred tax asset losses
Australian deferred tax assets other
Net Unrecognised deferred tax assets
Recognised Deferred Tax Balances:
Deferred tax assets:
Australian deferred tax assets
Chilean deferred tax assets
Deferred tax assets
Deferred tax liabilities:
Australian deferred tax liabilities
Chilean deferred tax liabilities
Deferred tax liabilities
Net deferred tax
CONSOLIDATED
2014
$
(2,477,431)
(2,477,431)
2013
$
(2,437,649)
(2,437,649)
(743,229)
732,510
-
(810)
422
(8,327)
197,120
-
-
554,014
-
-
266
(15,993)
195,094
(911,878)
(3,122)
3,933
-
-
(505,846)
(292,641)
101,488
310,525
(302,152)
(627,047)
-
(38,800)
200,664
355,322
(505,846)
(292,641)
11,377,789
10,802,938
(564,629)
42,441
24,343
-
42,442
67,609
10,879,944
10,912,989
2,016,083
1,034,515
2,361,502
833,850
3,050,598
3,195,352
(2,016,083)
(2,361,502)
(1,034,515)
(833,850)
(3,050,598)
(3,195,352)
-
-
Helix Resources Limited Annual Report 2014
47
19. 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 predominately in the geographical region of Australia, mainly in
Western Australia, New South Wales and South Australia, with a developing operation in Chile which currently represents ±43% of mineral asset
expenditure. 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. Decisions are made on a prospectivity basis, not a geographical or commodity basis.
Australia
Chile
Total
2014
2013
2014
2013
2014
2013
1,701,080
2,797,231
10,330
43,021
1,711,410
2,840,252
Current Assets
Cash
Non-Current Assets
Mineral Assets
8,822,823
10,739,117
5,172,575
4,173,302
13,995,398
14,912,419
Impairment expense
(2,102,704)
(2,869,458)
-
(4,050)
(2,102,704)
(2,873,508)
Carrying Amount
6,720,119
7,869,659
5,172,575
4,169,252
11,892,694
12,038,911
Current Liabilities
Trade payables
150,135
342,381
92,235
136,000
242,370
478,381
Revenue
Depreciation
112,425
17,691
5,721,673
31,056
Profit /(Loss) before
tax
(2,477,431)
2,441,699
-
-
-
-
-
112,425
17,691
5,721,673
31,056
(4,050)
(2,477,431)
2,437,649
20. EARNINGS PER SHARE
Basic earning / (loss) per share
Diluted earning /(loss) per share
COMPANY
2014
Cents Per share
(0.96)
(0.96)
2013
Cents Per share
1.33
1.33
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)
2014
$
(1,971,585)
2014
No.
2013
$
2,730,290
2013
No.
Weighted average number of ordinary shares (b)
205,317,481
204,651,661
(a) Earnings used in the calculation of basic earnings per share is net profit (loss) after tax of ($1,971,585) (2013: $2,730,290).
(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).
Helix Resources Limited Annual Report 2014
48
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/(loss) (a)
(1,896,828) (1,971,585)
2014
$
2013
$
2,730,290
12 months to 30 June 2014
12 months to 30 June 2013
No.
No.
Weighted average number of ordinary shares and potential
ordinary shares (b)
(a) Earnings used in the calculation of diluted loss per share is net loss after tax of ($1,971,585) (2013: profit of $2,730,290).
(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:
204,651,661
205,317,481
Viaticus options
Listed options
2014
No.
-
2013
No.
-
34,929,853
36,597,605
INTEREST IN JOINT OPERATIONS
21.
The parent entity has entered into the following unincorporated joint operations:
Joint Operations Project
Tunkillia
Yalleen
Restdown JV
Percentage Interest
30% (2013: 30%) (WPG Resources Limited)
30% (2013: 30%) (API Management Pty Ltd 70% Iron Ore rights)
70% (2013: 70%) (Glencore)
Principal Exploration Activities
Gold
Iron Ore
Gold
Canbelego
70% (2013: 70%) (Straits Resources)
Copper
The joint operations 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 operations. The Group’s interest in exploration expendi-
ture in the above mentioned joint operations is as follows:
Non-Current Assets
Mineral Assets
Impairment
Carrying Amount
Yalleen Joint
Operation
30%
Tunkillia Joint
Operation
30%
Restdown Joint
Operation
70%
Canbelego Joint
Operation
70%
3,630
-
3,630
3,043,088
(585,088)
2,458,000
2,168,419
(522,723)
1,645,696
1,061,015
-
1,061,015
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.
Helix Resources Limited Annual Report 2014
49
22. FINANCIAL INSTRUMENTS
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on
which revenues and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in Note 1
to the financial statements.
The 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
$
2014
Financial Assets
Current Receivables
Non-current Receivables
Held for trading assets
Cash and cash equivalent assets
Security deposits and deposits at financial
institutions
Available for sale assets
2.40%
3.15%
Financial Liabilities
Trade Payables (all payable within 30
days)
-
-
-
-
-
-
-
-
-
-
-
-
1,711,410
2,500,243
-
-
60,000
123,585
-
-
-
79,235
79,235
,
2,500,243
624
1,711,410
183,585
-
-
624
-
-
-
1,771,410
2,623,828
79,859
4,475,097
-
-
-
-
242,370
242,370
242,370
242,370
Floating Interest Rate Maturity
Average
Interest
Rate
%
Fixed
Interest Rate
Less than 1
year
More than 1
Year
Non Interest
Bearing
$
$
$
$
Total
$
2013
Financial Assets
Other Receivables
Non-current Receivables
Held for trading assets
Cash and cash equivalent assets
Security deposits and deposits at financial
institutions
Available for sale assets
3.4%
4.3%
Financial Liabilities
Trade Payables (all payable within 30
days)
-
-
-
-
-
2,840,252
-
-
-
-
2,840,252
-
-
-
-
-
-
-
-
200,000
-
1,825,754
1,000,000
240
-
-
-
1,825,754
1,000,000
240
2,840,252
200,000
-
200,000
2,825,994
5,866,246
-
-
478,381
478,381
478,381
478,381
Other than those classes of assets and liabilities denoted as "listed" in note 4, none of the classes of financial assets and liabilities are readily traded on
organised markets in standardised form.
Helix Resources Limited Annual Report 2014
50
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).
2014
Financial Assets
Held for trading assets
Available for sale assets
2013
Financial Assets
Held for trading assets
Available for sale assets
Level 1
624
-
624
Level 1
240
-
240
Total
$
Total
$
624
-
624
240
-
240
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.
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 2014, the effect on loss and equity as a result of a 50% increase in the interest rate, with all other variables remaining constant would be an
decrease in loss (2013: increase in profit) by $22,723 (2013: $37,236) and an increase in equity by $22,723 (2013: $37,236). The effect on loss and
equity as a result of a 50% decrease in the interest rate, with all other variables remaining constant would be an increase in loss (2013: decrease in
profit) by $22,723 (2013: $37,236) and a decrease in equity by $22,723 (2013: $37,236).
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.
Helix Resources Limited Annual Report 2014
51
23. EMPLOYEE BENEFITS
The aggregate employee benefits liability recognised and included in the financial statements is as follows:
Provision for employee benefits:
Current (Note 9)
Non-Current (Note 9)
Number of employees at end of financial year
24. CONTINGENT LIABILITIES
CONSOLIDATED
2014
$
No
3
44,981
467
45,448
2013
$
186,735
5,602
192,337
No
7
Bank Guarantees
The Company may be required to issue bank guarantees to secure tenement holdings. The Company currently has bank guarantees to the value of
$133,500 (2013: $80,000) for tenement holdings and $27,085 (2013: $27,000) for office premises.
25. REMUNERATION OF AUDITORS
a) Auditor of the Parent Entity
Auditing the financial report
The auditor of Helix Resources Limited for the 2014 financial year is Grant Thornton Audit Pty Ltd.
2014
$
2013
$
28,315
28,315
24,270
24,270
Helix Resources Limited Annual Report 2014
52
26. 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
Options Reserve
Total Equity
Financial Performance
Profit / (Loss) for the year
14
Total Comprehensive Income
27. SUBSEQUENT EVENTS
2014
$
2013
$
4,454,039
,11,994,381
16,448,420
315,121
467
315,588
4,666,246
13,333,873
18,000,119
665,116
5,602
670,718
60,009,350
59,192,640
(44,749,765)
(42,778,179)
873,247
914,941
16,132,832
17,329,402
(1,971,585)
(1,971,585)
2,730,290
2,730,290
On 21 August 2014, the Group has entered into an underwriting agreement with sophisticated investors to underwrite the conversion of the first
20,000,000 listed options (HLXO) at $0.015, including those exercised since December 2012, ensuring the Company receives proceeds of at least
$300,000. The underwriters, which are not related parties of the Group, are to be paid an underwriting fee of 3% for a total consideration of $9,000.
The underwriting will ensure the Company has adequate cash available to fund its stated objectives of advancing Helix’s Chile and Australian
exploration assets and for working capital. Since year end, 1,291,477 options were converted to fully paid ordinary shares.
28. ADDITIONAL COMPANY INFORMATION
Helix Resources Limited is a listed public company, incorporated and operating in Australia.
Registered Office
Suite 7, 29 Ord Street
WEST PERTH WA 6005
Tel (08) 9321 2644
Principal Place of Business
Suite 7, 29 Ord Street
WEST PERTH WA 6005
Tel (08) 9321 2644
The financial report for Helix Resources Limited for the year ended 30 June 2014 was authorised for issue in accordance with a resolution of the
directors on the 26th September 2014.
Helix Resources Limited Annual Report 2014
53
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 Yandal Investments
2 Gee Vee Pty Ltd
3 Brisbane Investments I and II Ltd
4 HSBC Custody Nominees (Aust) Ltd
5 Rombola Family Pty Ltd
6 Creekwood Nominees Pty Ltd
7 Wythenshawe Pty Ltd
8 BTX Pty Ltd
9 Mr William Henry Hernstadt
10 Blamnco Trading Pty Ltd
11 Ocean View WA Pty Ltd
12 Ms Philippa Cummins
13 Niddrie Holdings Pty Ltd
14 Penoir Pty Ltd
15 Technica Pty Ltd
16 Mr Michael Hood Wilson
17 Funding Securities Pty Ltd
18 HJH Nominees Pty Ltd
19 Seefeld Investments Pty Ltd
20 Finook Pty Ltd
Top 20 Total
AS AT 29TH AUGUST 2014
NUMBER OF SHARES HELD
Number of Shareholders
Number of Shares
85
174
272
653
244
1,428
651
29,913
545,564
2,355,032
24,231,940
209,395,841
236,558,290
4,475,969
Number of Shares
% of Issued Capital
21,172,514
16,873,259
13,063,829
9,850,186
7,677,127
7,250,000
4,999,917
4,681,293
4,502,728
4,000,000
4,000,000
4,000,000
3,303,673
3,000,000
2,784,999
2,330,000
2,300,000
2,020,500
2,000,000
2,000,000
8.95
7.13
5.52
4.16
3.25
3.07
2.11
1.98
1.90
1.69
1.69
1.69
1.40
1.27
1.18
0.99
0.97
0.85
0.85
0.85
121,810,025
51.50
VOTING RIGHTS
One vote for each ordinary share held in accordance with the Company's Constitution.
Helix Resources Limited Annual Report 2014
54
SUBSTANTIAL SHAREHOLDERS
Shareholder
Yandal Investments
Gee Vee Pty Ltd
Brisbane Investments I and II Ltd
Number of Shares
% of Issued Capital
21,172,514
16,873,259
13,063,829
8.95
7.13
5.52
DIRECTORS' INTEREST IN SHARE CAPITAL
Director
M H Wilson
P R Rombola
J Macdonald
Total
Fully Paid Ordinary Shares
Listed Options
2,349,700
7,677,127
8,087,500
18,114,327
783,234
-
415,000
1,198,234
Helix Resources Limited Annual Report 2014
55
Spread of Holdings
1–1000
1,001–5,000
5,001–10,000
10,001–100,000
100,001 and over
Total
PERCENTAGE HELD BY 20 LARGEST OPTIONHOLDERS
Shareholder
1 Blamnco Trading Pty Ltd
2 Gee Vee Pty Ltd
3 Aotea Minerals Ltd
4 Niddrie Holdings Pty Ltd
5
6
Funding Securities Pty Ltd
Tattersfield Securities Ltd
7 Pershing Australia Nominees Pty Ltd
8 Creekwood Nominees Pty Ltd
9
Technica Pty Ltd
10 Mr Trevor Neil Hay
11 Mr Michael Hood Wilson
12 HJH Nominees Pty Ltd
13 Mr Bulent Besim
14 HSBC Custody Nominees
15 Tromso Pty Ltd
16 Zero Nominees Pty Ltd
17 Forsyth Barr Custodians Ltd
18 Comsec Nominees Pty Ltd
19 Mr Ian Trager
20 Mr Gordon John & Mrs Diana Lyle Dunbar
AS AT 29TH AUGUST 2014
NUMBER OF OPTIONS HELD
Number of Optionholders
Number of Options
21
49
32
100
51
253
8,855
150,326
245,928
3,820,879
30,619,916
34,845,904
Number of Options
% of Issued Capital
6,000,000
4,744,500
2,000,000
1,101,225
1,100,000
1,000,000
1,000,000
997,227
928,333
856,000
776,667
703,334
700,000
581,068
500,000
486,669
480,829
438,711
360,000
350,000
17.22
13.62
5.74
3.16
3..16
2.87
2.87
2.86
2.66
2.46
2.23
2.02
2.01
1.67
1.44
1.40
1.38
1.26
1.03
1.00
Top 20 Total
25,104,563
72.05
Helix Resources Limited Annual Report 2014
56
Tenement
Name
Mineral
Ownership
NSW COPPER & GOLD PROJECTS (INCL. CANBELEGO AND RESTDOWN JV's)
TENEMENT SCHEDULE
EL6105
EL6140
EL6336
EL6501
EL6739
EL7438
EL7439
EL7482
EL7567
EL7745
EL8183
Canbelego
Restdown
Collerina
South Restdown
Muriel Tank
Quanda
Fiveways
Little Boppy
Restdown
Koree
Thorndale
LAKE EVERARD (INCL. TUNKILLIA)
Copper/Gold
Gold/Copper
Copper/Gold
Copper/Gold
Gold/Copper
Copper/Gold
Copper/Gold
Copper/Gold
Copper/Gold
Copper/Gold
Copper/Gold
Helix 70%, Straits 30%
Helix 70%, Glencore 30%
HLX 100% precious and base metals
Helix 70%, Glencore 30%
Helix 70%, Glencore 30%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
EL4596
EL4812
EL4495
Yellabinna
Gold/Uranium/Base metals
HLX 100%, WPG 70% all minerals other than uranium
Lake Everard
Gold/Uranium/Base metals
HLX 100%, WPG 70% all minerals other than uranium
Lake Everard
West
Gold/Uranium/Base metals
HLX 100%, WPG 70% all minerals other than uranium
YALLEEN IRON ORE PROJECT
E47/1169-I
E47/1170-I
E47/1171-I
Yalleen
Yalleen
Yalleen
CHILE PROJECTS
EXPLORATION CONCESSIONS
Joshua 1-39
Joshua
Bogarin 1-51
Huallillinga
Hado 1-52
Hado
Embrujado 1-68
Embrujado
EXPLOITATION CONCESSIONS
Blanco Y Negro 1/20
Blanco Y Negro
La Cana 11/20
Blanco Y Negro
Joshua A1/150
Joshua
Abbreviations and Definitions used in Schedule:
EL or E
Exploration Licence
Iron ore/Base metals
HLX 100%, API Management Pty Ltd 70% iron ore rights
Iron ore/Base metals
HLX 100%, API Management Pty Ltd 70% iron ore rights
Iron ore/Base metals
HLX 100%, API Management Pty Ltd 70% iron ore rights
Copper/Gold
Copper/Gold
Copper/Gold
Copper/Gold
Copper/Gold
Copper/Gold
Copper/Gold
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
Helix Resources Limited Annual Report 2014
57
CORPORATE DIRECTORY
Non-executive Chairman
Managing Director
Non-executive Director
Directors
Pasquale Rombola
Michael Wilson
Jason Macdonald
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
110 Stirling Highway
Level 6, 225 Clarence Street
Nedlands Western Australia 6009
Sydney NSW 2000
PO Box 1156 Nedlands Western Australia 6909
PO Box Q1736 Queen Victoria Building NSW 1230
Telephone: +61 8 9389 8033
+61 2 8096 3502
Facsimile: +61 8 9262 3723
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 HLXO
Helix Resources Limited Annual Report 2014
58