Helix Energy Solutions Group
Annual Report 2015

Plain-text annual report

ANNUAL REPORT 30 JUNE 2015 ACN: 009 138 738 Table of Contents Chairman’s Review ...................................................................... 2 Review Of Operations ................................................................... 3 Corporate Governance ................................................................. 15 Directors’ Report ....................................................................... 16 Auditor’s Independence Declaration ................................................ 23 Independent Auditor’s Report ........................................................ 24 Directors’ Declaration ................................................................. 27 Consolidated Statement Of Financial Position ..................................... 28 Consolidated Statement Of Profit Or Loss And Other Comprehensive Income 29 Consolidated Statement Of Cash Flows ............................................. 30 Consolidated Statement Of Changes In Equity ..................................... 31 Notes To The Financial Statements .................................................. 32 Number Of Shares Held ................................................................ 51 Tenement Schedule .................................................................... 53 Corporate Directory .................................................................... 54 Helix Resources Limited Annual Report 2015 1 CHAIRMAN’S REVIEW Dear Shareholder, I am pleased to present the 2015 Annual Report for the Company. The past 12 months has been the most challenging period for exploration companies in living memory. However your Board and management have continued to achieve significant milestones in its pursuit of advancing a portfolio of quality exploration assets in Chile and Australia. During the year the company has: - - - - - Entered into a landmark agreement with the EPG Exploration Fund to significantly advance the Joshua Copper-Gold Project in Chile. The 3,500m first stage diamond drilling program commenced at Joshua in early September. Announced the discovery of a VMS system at the Collerina Prospect in NSW with high grade copper and zinc intercepts close to surface. Follow up drilling is planned in the fourth quarter of 2015. Sold its interest in the Tunkillia Gold Project to WPG Resources. The transaction allows the development to proceed and provides Helix shareholders with further upside to the proposed development at Tarcoola-Tunkillia. Realised value from the resolution of the Olary Magnetite Sale Agreement by receiving cash and a parcel of Tigers Realm Coal shares. Conducted four drilling programs during the year in Chile and Australia for approximately 4,000m of RC drilling. During the year the company continued to change operating and exploration processes and significantly reduced expenditure year on year. I would like to thank the Board and Staff for their contributions during the past year. Under challenging market conditions all of our people have worked hard to advance the exploration assets of the company. I hope you join me in continuing to support our people. The company looks forward to making further progress on its various strategies and initiatives in the year ahead. Shareholders will be kept advised of all developments. Pasquale Rombola Chairman Helix Resources Limited Annual Report 2015 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:- Attracted a joint venture partner in 2015 to complete large drilling program over a short period to advance significant greenfields porphyry discovery  Blanco Y Negro: High-grade copper/gold deposit with updated indicated and inferred resource available for divestment  Huallillinga Project– Second greenfield porphyry target identified, early studies confirm mineralisation and alteration at 19km² Samuel Prospect. Figure 1: Helix’s project locations – Region IV Chile Helix Resources Limited Annual Report 2015 3 Joshua Copper-Gold Project [100%] EPG Partners earning up to 50.1% The Joshua Project is Helix’s most significant project in Chile. The area was chosen for its prospectivity, its low altitude (less than 1700m) and excellent nearby infrastructure. The Project is 40km South East of Teck’s Carmen de Andacollo porphyry deposit in Region IV Chile and 40km east of the township of Ovalle (Population 100,000 people). The Joshua Project was a greenfields discovery by Helix, with four porphyry targets (Targets 1 to 4) identified to date in a regional north west structural corridor that had never been drill tested prior to Helix’s involvement. Helix has identified the potential for a large-scale, copper-gold porphyry system which is now subject to a US$3.0m (A$4.3M) drilling program with EPG Partners (EPG) who can earn up to 50.1% pf the project by completing up to 10,000m of drilling. The drill program, being managed by EPG, will target the presently untested potassic portions of the system and zones where the potential exists for copper enrichment. The first two holes are planned to be drilled to a depth of 500m and are expected to pass into the potassic zone of the Joshua porphyry system. The potassic zone in porphyry systems are generally associated with higher grades and higher metal content. The subsequent holes will then expand out from the potassic core of the system to test strike, grade continuity and expand the potential volume of the mineralisation at Joshua. This drilling will test zones where petrological studies by Helix identified enrichment in the form of Chalcocite overprinting Chalcopyrite (refer to Figure 2a & 2b). This enrichment has the potential to provide a significant up-lift to the overall copper metal content and grade profile at Joshua. Figure 2a) Brecciated Dacitic Porphyry with disseminated chalcopyrite and chalcocite from the base of the Carmelita workings (~50m below surface) on the eastern edge of Target 1.Sample assayed 3.1% Cu, 0.1g/t Au, 11g/t Ag and 200ppm Mo¹. Figure 2b) Thin-section photomicrograph of copper sulphides from the adjacent rock sample. Note Chalcocite (Cs) rimming/replacing in-situ Chalcopyrite (Cp) grains. The initial drilling program that is being conducted by EPG will consist of up to 10 diamond holes for 4,000m with an average depth of 400m, including several deeper holes. The program will expand the known strike of the area drilled at Target 1 from approximately 400m to over 1 kilometre (Figure 3). Figure 3: Main porphyry target at Joshua – copper-in-soil draped on Google Earth™ topography Helix Resources Limited Annual Report 2015 4 About the Joshua Project Joint Venture An Earn-In Agreement over the Joshua Project was executed in June 2015 with Fondo De Inversion Privado EPG Exploracion Minera (EPG Mining Exploration Fund). The fund is managed by EPG Partners S.A, a Chilean based private equity and advisory company. The fund retains an experienced team and is uniquely suited to capturing exploration opportunities in Chile. Key terms of the Joshua Agreement are: • • • Stage 1: EPG has the option to earn a 33.4% interest in the Joshua Project by undertaking a minimum of 3,500m of diamond drilling within 1 year for a minimum commitment of US$1.2m (This drilling program has commenced). Stage 2: Upon completion of Stage 1, EPG can then elect to increase its interest to 50.1% in the Joshua Project by completing up to 6,500m of RC and diamond drilling within 1.5 years for a minimum commitment of US$1.8m. Following the completion of the two stage program, EPG will have a 50.1% interest in the project and Helix will retain a 49.9% interest in the project. A Joint Venture over the project will then form to progress the project. Blanco y Negro Copper/Gold Project [100%] Blanco Y Negro (ByN) 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 North West trending mineralised shear over a strike of 1.3km (offset by cross cutting faults) within the mining lease. In August 2015, Helix Resources completed a resource update on the ByN deposit in Region IV, Chile. The update was undertaken following the drilling program that was completed in 2014. The new resource estimation (refer to ASX announcement on 13 August 2015)1 has increased the tonnes by approximately 10% and upgraded the classification of the ByN deposit, with 60% of the resource moving into the Indicated JORC category. Infill Reverse Circulation (RC) drilling was undertaken as part of the RC program completed in late 2014. This additional drilling has improved the knowledge of metal distribution and confirmed geological continuity in the main zone. Drilling at ByN has intersected copper and gold mineralisation with results including 19.5m @ 2% Cu and 1.1 g/t Au and 30m @ 1.4% Cu and 0.3g/t Au (refer ASX announcement on 10 September 2014)2. The deposit remains open to the northwest along strike and down dip (Figure 4). Figure 4: Approximate position of B y N Deposit on local topography with significant results. Helix Resources Limited Annual Report 2015 5 Table 1 : ByN Deposit Material Type August 2015 Mineral Resource Estimation (0.5% Cu cut off)1 Oxide Transition Fresh Total Indicated Inferred Total Tonnes & Grade 360kt @ 1.0% Cu , 0.2 g/t Au 140kt @0.8% Cu, 0.6g/t Au 500kt @ 1.0% Cu, 0.3g/t Au Metal 4,000t Cu 2,500oz Au 1,000t Cu 3,000oz Au 5,000t Cu 5,000t Au Tonnes & Grade 280kt @ 1.8% Cu, 0.6g/t Au 30kt @ 0.7% Cu, 0.4g/t Au 310kt @ 1.6% Cu, 0.6g/t Au Metal 5,000t Cu 5,600oz Au 240t Cu 460oz Au 5,200t Cu 6,100oz Au Tonnes & Grade 140kt @ 2.2% Cu, 0.8g/t Au 480kt @ 1.4% Cu, 0.6g/t Au 620kt @ 1.6 % Cu, 0.6g/t Au Metal 3,000t Cu 3,500oz Au 7,000t Cu 9,000oz Au 10,000t Cu 12,500oz Au 0.8Mt @ 1.5% Cu, 0.5g/t Au for 12,000t Cu & 12,000oz Au 0.7Mt @ 1.3% Cu, 0.6g/t Au for 8,000t Cu & 12,000oz Au 1.5Mt @ 1.4% Cu, 0.5g/t Au for 20,000t Cu & 24,000oz Au Note: discrepancies in totals are due to rounding. Regional Copper/Gold Projects- Region IV Chile Helix controls 170km² of exploration concessions surrounding the 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. The Samuel Prospect Initial field exploration at the Samuel Prospect has confirmed the targets porphyry prospectivity. This is Helix’s second greenfield porphyry discovery in region IV. The Samuel Prospect was identified from mapping of extensive porphyry-style lithologies and alteration with surface sampling confirming associated copper mineralisation over a system exceeding 19km². During the year the Company mapped in detail the main target area. The target is defined by a 19km² zone of mixed intrusives, volcanics, stockworks and breccias with porphyry related alteration defining the extent of the system. In the same program the team collected surface rock chip samples from the various lithologies located at the target. The geochemistry returned peak results of 7.7% Cu, 0.8g/t Au and 176ppm Mo (Refer ASX announcement on 30 January 2015).2 A statistical review of the rockchip data shows mean values of copper from surface sampling as follows: intrusives; 158 ppm, andesites; 215 ppm, stockworks; 507 ppm and veins; 1.9% Cu (Refer ASX announcement on 30 January 2015)2, outlining potentially a second large greenfield porphyry discovery in Region IV. Figure 5 Samuel Prospect Geological Mapping and position of rockchip samples (Cu ppm) Helix Resources Limited Annual Report 2015 6 The exploration work at the Samuel Project also included collection of samples to undertake Microscopy studies to identify the copper minerals present. The limited work to date indicates the presence of Djurleite (“white chalcocite”) and Chalcopyrite in the limonite veinlets associated with the quartz-limonite stockwork present at the target. Figure 6: Extensive stockwork present at the Samuel Prospect containing limonite after sulphides. Rock sample 55795 returned 0.03 ppm Au, 4125 ppm Cu, 36 ppm Mo CPY Djurleite (CC) Figures 7 and 8: Photomicrograph images of thin-sections from the location shown on photo 7. Photo 8 shows fine grains (<1mm) of Chalcopyrite preserved in limonite veins. Helix Resources Limited Annual Report 2015 7 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 9: Location of Helix Projects and surrounding mines in Cobar-Nygan region NSW COLLERINA PROJECT – [Helix 100% of precious and base metals discoveries] The Collerina Project is located approximately 40km SW of Nyngan in Central NSW. Collerina is prospective for copper and gold mineralisation. It is located on a 20km long corridor of prospective volcanic/sedimentary sequence within the tenement that abuts Helix’s Quanda and Five Ways tenements. 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. Collerina Prospect In late 2014 Helix announced the discovery of a VMS system at the Collerina Prospect. Drilling programs were undertaken late in 2014 and early 2015 following positive results from a detailed auger soil sampling program which defined a copper/gold target over an open- ended strike of approximately 500m. The geochemical survey was followed-up with a 5 line-kilometre moving loop EM survey that highlighted the presence of a bed-rock conductor associated with the copper/gold trend. The broad-spaced drilling has so far identified base metal mineralisation over an open-ended strike of 350m. The system remains open along strike and down dip/plunge. Helix Resources Limited Annual Report 2015 8 Table 2: Significant results from intial program of 1,000m RC drilling at Collerina in late 2014 (Refer ASX Announcement on 15 December 2014)2. Depth Intercept Results Site_ID CORC001 CORC002 CORC003 CORC004 and CORC005 CORC006 CORC007 CORC008 CORC009 95m 80m 0m 22m 50m 18m 24m 112m 0m 3m 29m 54m 14m 5m 47m 6m 1m 53m 3m @ 1.4% Cu, 5g/t Ag, 0.5% Zn 29m @ 2.2% Cu, 9g/t Ag, 0.7% Zn incl. 14m @ 4.0% Cu, 17g/t Ag, 1.3% Zn from 80m 54m @ 0.4% Cu incl. 5m @1.1%Cu, 0.2% Zn from 3m 14m @ 0.2% Cu 5m @ 1.6% Cu incl. 2m @ 3.6% Cu, 14g/t Ag from 51m 47m @ 0.4% Cu, 4g/t Ag incl. 2m @ 2.9% Cu, 50g/t Ag from 52m and 1m @ 1.1% Cu from 61m 6m @ 0.2% Cu Not re-sampled 1m @ 0.5% Cu 53m @ 0.5% Cu incl. 5m @ 4.2% Cu + 5g/t Ag from 48m to EOH Note Intersections based on 1m sampling, assayed using mixed acid digest technique for base metals. Results are based on a 0.1% Cu cut-off grade and subject to rounding. Significant results are highlighted in bold. The second RC drilling campaign at the Collerina Prospect was conducted early in 2015 to follow-up the previous campaign and test for continuation of the system. These results from 7 holes for a total 1,073m confirmed the presence of additional VMS-style mineralisation. Figure 10: CORC011 – 10m @ 2.6% Cu from 84m incl. 7m @ 3.2% Cu, 1.7% Zn, 11g/t Ag from 86m (Refer ASX Announcement on 1 April 2015)2 The second phase of drilling was targeting strike extensions of mineralisation coincident with off-hole EM conductors. The drilling has so far identified base metal (+ gold) mineralisation over an open-ended strike of 350m (Refer Figure 11). The higher grade mineralisation appears to extend to the east with a zone of intercepts exceeding 3% copper returned over a strike of at least 200m, remaining open down dip. DHEM modelling from surveys taken in selected holes provides an orientation of the EM conductors plunging to the east at locally variable dips between 30 and 60 degrees, consistent with other deposits in the district. Helix Resources Limited Annual Report 2015 9 Table 3: Significant Collerina Prospect March Drilling Results- (Refer ASX Announcement on 1 April 2015)2 Site_ID CORC010 Incl. CORC011 Incl. CORC012 Incl. CORC013 CORC014 and CORC015 Incl. Depth from 78m 79m 84m 86m 97m 97m 127m 151m 154m 130m 131m Result 5m@ 0.5% Cu, 0.1g/t Au, 2g/t Ag 1m @ 1% Cu, 0.2g/t Au, 4g/t Ag 10m @ 2.6% Cu, 1.4% Zn, 0.5g/t Au, 9g/t Ag 7m @ 3.2% Cu, 1.7% Zn, 0.6g/t Au, 11g/t Ag 9m @ 1.9% Cu, 1.4% Zn, 0.4g/t Au, 7g/t Ag 5m @ 3.2% Cu, 2.4% Zn, 0.7g/t Au, 12g/t Ag 1m @ 0.2% Zn 1m @ 0.9% Cu, 2g/t Ag 3m @ 0.2% Zn 4m @ 1.6% Cu, 0.4% Zn, 0.3g/t Au, 5g/t Ag 2m @ 3% Cu, 0.8% Zn, 0.6g/t Au, 9g/t Ag CORC016 Intersections based on 1m sampling, assayed using mixed acid digest technique for base metals and fire assay method for gold. Results are based on a 0.1% Cu cut-off grade and subject to rounding. 2m @ 1% Cu, 0.8% Zn, 0.3 g/t Au, 1g/t Ag 93mm Figure 11: Significant drill intercepts at Collerina Prospect Helix Resources Limited Annual Report 2015 10 Figure 12: Location of EL6336 on regional magnetics The Collerina Prospect has a 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 until Helix’s involvement in 2014. CANBELEGO PROJECT JV – NSW EL 6105 - Helix Resources Ltd 70%, Straits Resources 30% Project Summary The Canbelego Project is located 45km south east of Cobar. Helix 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 (Refer ASX Announcement on 26 September 2013)2. 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 ASX Announcement on 15 October 2013) (refer Figure 13). Helix Resources Limited Annual Report 2015 11 Figure 13: Canbelego soil sampling on detailed magnetics, location of the three advancing copper prospects. RESTDOWN JV (INCLUDING MURIEL TANK PROJECT) EL 6140, EL6501 & EL6739-Helix Resources 70%; Glencore 30% The Restdown Projects are located 40km to 70 km South East of Cobar in Central Western NSW with the tenement package covering an area of ~198km² (Restdown JV Project 154km², Muriel Tank JV Project 44km²). Sunrise/Good Friday (Restdown) 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 north of the 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 confirmed the continuance of the gold mineralised corridor over the entire goldfield. The additional zones identified provide encouragement that multiple repeats of Sunrise-style mineralisation are present in the district. Browns Gold Prospect (Muriel Tank) 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 located in fold hinge zones and in localised kink zones. Previous Helix rock chips have returned results of >30g/t Au from the goldfield. A maiden RC program comprising 8 holes for a total of 700m has tested approximately 250m of strike within the open-ended 1km long gold in soil anomaly. All holes returned wide zones of anomalous gold (>0.1g/t Au) in 4m spear composite sampling. The holes generally intersected the target zone between 0m and 50m, with the southern-most drill hole returning the highest result in the 4m composite sampling (4m @ 2g/t Au in BPRC003 from 64m) (Refer ASX Announcement on 17 September 2014)2. An assessment of high-grade controls and follow-up drilling is being considered by the joint venture. Helix Resources Limited Annual Report 2015 12 NON CORE ASSETS 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 Yalleen Project has a resource 84Mt @ 57% Iron ore in Indicated and Inferred Resources (refer to resources table) on 575km² of tenements in the West Pilbara owned by Helix Resources – API JV: iron ore rights only Helix is diluting to a royalty over iron ore production from the tenements. 2014 corporate activity resulted in Aquila Resources being acquired by Baosteel and Aurizon. During the second half of 2014 Aurizon announced a market update and project timeline and development plans for the West Pilbara Iron Project (refer AZJ announcement 11 September 2014). . TUNKILLIA GOLD PROJECT SALE – SA In late 2014 Helix sold its 30% interest in the Tunkillia Gold Project to WPG Resources. The Transaction allows the development to proceed and provides Helix shareholders with further upside to the Tunkillia-Tarcoola Gold development. WPG is a company with a record of successful project development in South Australia. The sale terms are as follows: Stage1: WPG paid HLX $500,000 cash on completion; WPG issued HLX with 10 million ordinary fully paid ordinary WPG shares (these shares are subject to a voluntary escrow period of 6 months to September 2015); Stage 2*: WPG will pay HLX $500,000 in cash, and issue an additional 10 million ordinary fully paid ordinary WPG shares, upon the commencement of mine construction; WPG will pay HLX a 1% NSR royalty for: 30% of attributable production from the existing resource; and On 100% of production from any additional resources/reserves defined within the Tunkillia Project area. *Helix retains certain rights to bring forward the payment and share issue in Stage 2; if WPG introduces a majority equity partner, sells the asset or WPG is subject to a successful take-over bid prior to mine construction. Helix retains its exposure to the Tunkillia asset and Tarcoola asset via its shareholding in WPG and a royalty on production from Tunkillia. A Feasibility Study on Tarcoola is expected to be completed in fourth quarter of 2015. Helix Resources Limited Annual Report 2015 13 Resources Commodity Category Iron Ore Indicated Inferred Project Yalleen JV, WA Interest 30% (Diluting) Resource 47.9Mt @ 57.3% Fe (Channel Iron)³ 36.4Mt @ 57.1% Fe (Channel Iron)³ 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 Indicated and Inferred 100% Helix Indicated: 0.8Mt @ 1.5% Cu, 0.5 g/t Au for 12,000t Cu & 12,000oz Au Inferred: 0.7Mt @ 1.3% Cu, 0.6g/t Au for 8,000t Cu & 12,000oz Au Total Resource: 1.5Mt @ 1.4% Cu, 0.5g/t Au for 20,000tCu & 24,000oz Au (at 0.5% Cut-off) – 2012 JORC¹ 1.5Mt @ 1.2% Cu for 18,000t Contained Cu (at 0.3% Cu Cut-off)³ 2.6Mt @ 1.2g/t Au for 100,000oz (0.3 g/t Au cut off)³ Copper Inferred Canbelego JV, NSW 70%(Straits 30%) Gold Inferred Restdown JV 70% (Glencore 30%) Review of material changes Yalleen: There are no changes to the resource from the previous reporting statement. Blanco Y Negro: Refer to Note 1. Canbelego: There are no changes to the resource from the previous reporting statement. Restdown: There are no changes to the resource from the previous reporting statement. Governance controls All Minerals Resource Estimates are prepared by qualified professionals following JORC-compliant procedures that ensure representative and unbiased samples are obtained with appropriate QA/QC practices in place. 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. Notes 1 For more information on the Blanco y Negro Resource estimate, refer to ASX announcement dated 13 August 2015. Helix is not aware of any new information or data that materially effects the information included in the said announcement. The information in this report that relates to the Mineral Resource Estimation for Blanco y Negro is based on information compiled by Mr Byron Dumpleton a Consultant Resource Geologist from his company BKD Resources Pty Ltd. Mr Dumpleton is a member of the Australian Institute of Geoscientist. Mr Dumpleton has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Mineral Exploration Results, Mineral Resources and Ore Reserves” (JORC Code). Mr Dumpleton consents to the inclusion in this report of the matters based on their information in the form and context in which they appear. 2 Helix is not aware of any new information or data that materially affects the information included in the said announcement. 3 Helix is not aware of any new information or data that materially affects the information included in the table above. Details of the assumptions underlying the tagged estimations are contained in previous ASX releases or at www.helix.net.au Helix Resources Limited Annual Report 2015 14 CORPORATE GOVERNANCE Helix reviews all of its corporate governance practices and policies on an annual basis to ensure they are appropriate for the Company’s current stage of development. This year, the review was made against the new ASX Corporate Governance Council’s Principles and Recommendations (third edition) which became effective for financial years beginning on or after 1 July 2014. The Company’s Corporate Governance Statement for the year ended 30 June 2015 was approved by the Board on 22 September 2015 and is available on the Company’s website at www.helix.net.au The directors of Helix Resources Limited believe that effective corporate governance improves company performance, enhances corporate social responsibility and benefits all stakeholders. 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. Helix Resources Limited Annual Report 2015 15 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 2015. 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 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 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. 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 COMPANY SECRETARY Michael Dylan Naylor Bcom, CA, AGIA Michael has 19 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. 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 $4,301,431 (2014: loss of $1,971,585). 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. Helix Resources Limited Annual Report 2015 16 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. In June 2015, the company signed an Earn-In Agreement over the Joshua Project with Fondo De Inversion Privado EPG Exploracion Minera (EPG Mining Exploration Fund). The fund is managed by EPG Partners S.A, a Chilean based private equity and advisory company. The fund retains an experienced team and is uniquely suited to capturing exploration opportunities in Chile. The key terms of the Joshua Agreement are:  Stage 1: EPG has the option to earn a 33.4% interest in the Joshua Project by undertaking a minimum of 3,500m of diamond drilling within 1 year for a minimum commitment of US$1.2m. This drilling program commenced in late August.   Stage 2: Upon completion of Stage 1, EPG can then elect to increase its interest to 50.1% in the Joshua Project by completing up to 6,500m of RC and diamond drilling within 1.5 years for a minimum commitment of US$1.8m. Following the completion of the two stage program, EPG will have a 50.1% interest in the project and Helix will retain a 49.9% interest in the project. A Joint Venture over the project will then form to progress the project. Blanco y Negro Copper/Gold Project [100%] Blanco Y Negro (ByN) 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 North West trending mineralised shear over a strike of 1.3km (offset by cross cutting faults) within the mining lease. In August 2015, Helix Resources completed a resource update on the ByN deposit in Region IV, Chile. The update was undertaken following the drilling program that was completed in 2014. Refer to the Review of Operations for more detail. 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. Work during the year was confined to small cost-effective mapping and reconnaisance activities due to a reduced staff level and exploration budgets. 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. In late 2014 Helix announced the discovery of a VMS system at the Collerina Prospect. Drilling programs were undertaken late in 2014 and early 2015 following positive results from a detailed auger soil sampling program which defined a copper/gold target over an open-ended strike of approximately 500m. The geochemical survey was followed-up with a 5 line-kilometre moving loop EM survey that highlighted the presence of a bed-rock conductor associated with the copper/gold trend. The broad-spaced drilling has so far identified base metal mineralisation over an open-ended strike of 350m. The system remains open along strike and down dip/plunge. The second RC drilling campaign at the Collerina Prospect was conducted early in 2015 to follow-up the previous campaign and test for continuation of the system. These results from 7 holes for a total 1,073m confirmed the presence of additional VMS-style mineralisation. The second phase of drilling was targeting strike extensions of mineralisation coincident with off-hole EM conductors. The drilling has so far identified base metal (+ gold) mineralisation over an open-ended strike of 350m. The higher grade mineralisation appears to extend to the east with a zone of intercepts exceeding 3% copper returned over a strike of at least 200m, remaining open down dip. DHEM modelling from surveys taken in selected holes provides an orientation of the EM conductors plunging to the east at locally variable dips between 30 and 60 degrees. Refer to the Review of Operations for more detail. 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 (Refer review of operations)) 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. Helix Resources Limited Annual Report 2015 17 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 (Refer Review of Operations for more details) 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. 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. Iron Ore Non Managed JV - Yalleen Project - WA [API (AMCI/Boasteel) 70% iron ore rights / Helix 30% [diluting] & Tenement owner] Yalleen Project has a resource 84Mt @ 57% Iron ore in Indicated and Inferred Resources (refer to resources table below) on 575km² of tenements in the West Pilbara owned by Helix Resources – API JV: iron ore rights only Helix is diluting to a royalty over iron ore production from the tenements. 2014 corporate activity resulted in Aquila Resources being acquired by Baosteel and Aurizon. During the second half of 2014 Aurizon announced a market update and project timeline and development plans for the West Pilbara Iron Project (Refer AZJ announcement 11 Sept 2014). Corporate The Group reported a loss of $4,301,431 during the year after impairment of $1,383,568 of carried forward exploration costs. Major corporate events include:  Helix received $500,000 in cash and 10 million shares in WPG Resources Limited (WPG) as stage 1 for the sale of its remaining 30% Tunkillia project. The WPG shares are subject to a voluntary escrow period of 6 months. Helix received $25,000 in cash and 12.5 million Tiger Realm Coal Limited shares from Lodestone Equities Ltd to finalise the settlement regarding the sale of Olary Magnetite Pty Ltd. A R&D tax rebate of $467,258 was received as a result of Helix’s activities at its NSW copper and gold projects over the 2014 financial year.   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 16 September 2015, all the listed shares Helix holds in WPG Resources Ltd were released from voluntary escrow. The listed shares the Company holds in Tigers Realm Coal Limited have decreased in value from $0.10 per share as at 30 June 2015 to $0.06 per share as at 16 September 2015. No other matter or circumstance has arisen since 30 June 2015 that has significantly affected or may significantly affect the Group’s operations , the results of those operations or the Group’s state of affairs in future years. FUTURE DEVELOPMENTS Disclosure of information regarding likely developments in the operations of the Group in future financial years and the expected results of those operations is likely to result in unreasonable prejudice to the Group. Accordingly, this information has not been disclosed in this report. REMUNERATION REPORT [AUDITED] This remuneration report sets out the remuneration information for Directors and Key Management Personnel (‘KMP’) of the Company for the year ended 30 June 2015. KMP are defined as those persons having authority and responsibility for planning, directing and controlling the major activities of the Group, directly or indirectly including any director (whether executive or otherwise) of the parent. The information provided within this remuneration report has been audited as required by section 308(3C) of the Corporations Act 2001. To help preserve the company’s cash position, the Board spent considerable time focusing on its remuneration framework and policy reflecting on past feedback from stakeholders and significant cost reduction measures. The individuals included in this report are: Non-Executive Directors Mr P Rombola Mr J Macdonald Executive Director Mr M Wilson Non-Executive Chairman Non-Executive Director Managing Director Key Management Personnel Mr M Naylor Chief Financial Officer and Company Secretary Helix Resources Limited Annual Report 2015 18 All Directors and KMP held their positions for the entire financial year and up to the date of this report unless otherwise stated. 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 (operating under the formal charter of the Nomination and Remuneration Committee) is responsible for reviewing and recommending the remuneration arrangements for the Executive and Non-Executive Directors and KMP each year in accordance with the Company’s remuneration policy approved by the Board. This includes an annual remuneration review and performance appraisal for the Managing Director and other executives, including their base salary, short and long-term incentives, bonuses, superannuation, termination payments and service contracts. Further information relating to the role of the Nomination & Remuneration Committee, which has now been assumed by the Board, can be found within the Corporate Governance section of the Company’s website, www.helix.net.au. Overall Remuneration Framework The Board recognises that the Company’s performance and ultimate success in project delivery depends very much on its ability to attract and retain highly skilled, qualified and motivated people. At the same time, remuneration practices must be transparent to shareholders and be fair and competitive taking into account the nature and size of the organisation. The approach to remuneration has been structured with the following objectives:  to attract and retain a highly skilled executive team who are motivated and rewarded for successfully delivering the short and long-term objectives of the Company, including successful project delivery; to link remuneration with performance, based on long-term objectives and shareholder return, as well as critical short-term objectives which are aligned with the Company’s business strategy; to set clear goals and reward performance for successful project development in a way which is sustainable, including in respect of health & safety, environment and community based objectives; to be fair and competitive against the market; to preserve cash where necessary for exploration, by having the flexibility to attract, reward or remunerate executives with an appropriate mix of equity based incentives; to reward individual performance and group performance - thus promoting a balance of individual performance and teamwork across the executive management team and the organisation; to have flexibility in the mix of remuneration, including offering a balance of conservative LTI instruments such as options to ensure executives are rewarded for their efforts, but also share in the upside of the Company’s growth and are not adversely affected by tax consequences; and       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:    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 9.5%. No executives receive any retirement benefits. Fixed remuneration of executives are 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. 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 (2014: Nil). Non-Executive Remuneration The policy of the Board is to remunerate Non-Executive Directors in the form of directors’ fees at market rates for comparable companies based on their time, commitment and responsibilities. Fees for Non-Executive Directors are not linked to the performance of the Company to maintain independence and impartiality. In determining competitive remuneration rates, the Board have historically reviewed local trends among comparative companies and the industry generally. Helix Resources Limited Annual Report 2015 19 Non-Executive Director fees are also determined within an aggregate fee pool which is subject to approval by shareholders. The aggregate fee pool is currently set at $150,000 per annum which was last approved at the Annual General Meeting in April 2006. As at the date of this report the level of total Non-Executive Director remuneration actually paid remains below the maximum amount payable. Fees paid do not include any required statutory payments such as superannuation, GST, and payroll tax. The Company does not pay retirement allowances to Non-Executive Directors in line with ASX Corporate Governance Recommendations. Details of Remuneration Salary & Fees $ Primary Perfor- mance Based Payment $ 2015 Non – Executive Directors 50,000 P Rombola J Macdonald 40,000 Executive Directors M Wilson** 199,282 Key Management Personnel M Naylor 90,000 Total 379,282 - - - - - Post Employment Equity Non Monetary Super- annuation Pre- scribed Benefits $ - - - - - $ - - 17,391 - 17,391 $ - - - - - Other Retire- ment Benefits $ - - - - - Options $ - - - - - % of Remu- neration % - - - - - Other Benefits Total $ - - - - - $ 50,000 40,000 216,673 90,000 396,673 Salary & Fees $ Primary Perfor- mance Based Payment $ 2014 Post Employment Equity Non Monetary Super- annuation Pre- scribed Benefits $ $ $ Other Retire- ment Benefits $ Options % of Remu- neration Other Benefits Total $ % $ $ Non – Executive Directors 30,000 P Rombola J Macdonald1 G Dunbar2 J den Dryver3 9,274 25,000 13,730 G Wheeler4 48,387* Executive Directors M Wilson** 197,152 Key Management Personnel M Naylor5 J McNamara6 15,000 76,839 C Johnson7 120,057 Total 535,439 - - - - - - - - - - - - - - - - - - - - - - - 1,270 - 17,159 - 5,168 11,105 34,702 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 30,000 9,274 25,000 15,000 48,387 214,311 15,000 82,007 131,162 570,141 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. ** Includes movements in annual leave and long service leave. 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. Helix Resources Limited Annual Report 2015 20 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 2011 2012 2013 2014 2015 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 72,161 (4,301,431) $0.028 Nil Service Agreements On appointment to the Board all Non-Executive Directors enter into a service agreement in the form of a letter of appointment. The letter sets out the Company’s policies and terms including compensation relevant to the director. Remuneration and other key terms of employment for the Managing Director and other executives are formalised in executive service agreements. The agreements provide for payment of fixed remuneration, performance related cash bonuses where applicable, other allowances and confirm eligibility to participle in the Company’s STI and LTI plans. 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 182,648* 90,000 12 months expiring 20 June 2016 Not specified 2 months 2 months 2 months 2 months *Plus 9.5% compulsory statutory superannuation. Share-based remuneration There was no share based remuneration during the year. Options held by Directors As at 30 June 2015 the Company had issued no share options (30 June 2014: 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. The number of options to acquire shares in the Company held during the 2015 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 Balance as at 1 July 2014 783,234 415,000 Purchased Exercised Other Movements Balance as at 30 June 2015 - - (783,234) (415,000) 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 M Naylor Balance as at 1 July 2014 7,433,085 8,087,500 2,349,700 - No shares were issued as part of remuneration. Purchased Disposed Other Movements 1,469,042 415,000 783,234 680,334 - - - - - - - - - - - Balance as at 30 June 2015 8,902,127 8,502,500 3,132,934 680,334 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. Helix Resources Limited Annual Report 2015 21 Use of Remuneration Consultants During the year ended 30 June 2015 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 2014. 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. 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 4 4 4 4 4 4 - - - - - - - - - - - - P Rombola M Wilson J Macdonald 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 23 of the financial report. Dated at Perth this 22nd day of September 2015. 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 Helix Resources Limited Annual Report 2015 22 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 2015, 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 M A Petricevic Partner - Audit & Assurance Perth, 22 September 2015 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. 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 2015, 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. 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 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 2015 and of its performance for the year ended on that date; and complying with Australian Accounting Standards and the Corporations Regulations 2001; and b 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 18 to 22 of the directors’ report for the year ended 30 June 2015. 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. Auditor’s opinion on the remuneration report In our opinion, the remuneration report of Helix Resources Limited for the year ended 30 June 2015, complies with section 300A of the Corporations Act 2001. GRANT THORNTON AUDIT PTY LTD Chartered Accountants M A Petricevic Partner - Audit & Assurance Perth, 22 September 2015 DIRECTORS’ DECLARATION The Directors of the company declare that: 1. The consolidated financial statements and notes, as set out on pages 28 to 50 are in accordance with the Corporations Act 2001 and:- a. b. 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 2015 and of the performance for the year ended on that date of the group; and c. complies with International Financial Reporting Standards as disclosed in Note 1. 2. the Chief Executive Officer and Chief Finance Officer have each declared that:- a. b. c. the financial records of the Company for the financial year have been properly maintained in accordance with s 286 of the Corporations Act 2001; the financial statements and notes for the financial year comply with the Accounting Standards; and the financial statements and notes for the financial year give a true and fair view; 3. In the directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable; This declaration is made in accordance with a resolution of the Board of Directors. On behalf of the Directors Pasquale Rombola Chairman Signed at Perth this 22nd day of September 2015. Helix Resources Limited Annual Report 2015 27 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2015 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 2015 $ 2014 $ 1,582,850 1,711,410 49,939 1,660,000 79,235 60,624 3,292,789 1,851,269 41,721 52,859 9,142,899 11,892,694 - 2,500,243 87,148 123,585 9,271,768 14,569,381 12,564,557 16,420,650 197,221 242,370 62,396 44,981 259,617 287,351 2,653 2,653 467 467 262,270 287,818 12,302,287 16,132,832 61,280,044 60,009,350 - 873,247 (48,977,757) (44,749,765) 12,302,287 16,132,832 This statement should be read in conjunction with the Notes to the Financial Statements Helix Resources Limited Annual Report 2015 28 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2015 Revenue Other Income Employment Costs Audit and Accountancy Corporate Marketing Directors’ Fees Depreciation Foreign Exchange Loss/(Gain) Impairment of Exploration and Evaluation Assets Information Technology Costs Premises Costs Professional Services Travel expenses Revaluation of Shares in Listed Companies Loss on Settlement of Receivable Loss on Sale of Project Finance Costs Other Expenses Loss before income tax Income tax benefit 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 Loss attributable to members of Helix Resources Limited Loss Per Share Basic (cents per share) Diluted (cents per share) Note 13 14 7 3 7 18 20 20 CONSOLIDATED 2015 $ 2014 $ 72,161 - 99,367 13,058 (174,996) (118,482) (89,884) (5,641) (90,000) (11,138) 38,478 (86,892) (19,001) (48,971) (17,691) (8,832) (1,383,568) (2,102,704) (19,124) (104,689) (28,047) (17,608) 12,524 (1,287,743) (1,578,000) - (101,414) (2,919) (40,585) (13,964) (9,473) 384 - - (74,757) (45,969) (4,768,689) (2,477,431) 467,258 505,846 (4,301,431) (1,971,585) - - - - - - (4,301,431) (1,971,585) (1.64) (1.64) (0.96) (0.96) This statement should be read in conjunction with the Notes to the Financial Statements Helix Resources Limited Annual Report 2015 29 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2015 Cash Flow From Operating Activities Payments to suppliers and employees Interest received Income tax benefit Other receipts Net cash provided/(used in) by operating activities Cash Flow From Investing Activities Payments for capitalised exploration & evaluation expenditure Proceeds from sale of property, plant & equipment Proceeds from sale of mineral interest 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 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 Note 18 2(b) 2(a) CONSOLIDATED 2015 $ 2014 $ (645,495) (471,033) 29,836 467,257 40,468 (107,934) 45,288 505,846 53,921 134,022 (1,118,116) (2,220,463) 37,041 525,000 17,085 - 175,000 16,415 (538,990) (2,029,048) 479,886 - 479,886 750,000 25,016 775,016 (167,038) (1,120,010) 38,478 (8,832) 1,711,410 2,840,252 1,582,850 1,711,410 This statement should be read in conjunction with the Notes to the Financial Statements Helix Resources Limited Annual Report 2015 30 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2015 CONSOLIDATED 2015 Total equity at the beginning of the financial year Exercise of options during the financial year Share issue costs during the financial year Share Capital Ordinary Other Reserves $ $ Accumulated Losses $ Total $ 60,009,350 873,247 (44,749,765) 16,132,832 1,279,694 (799,808) (9,000) - - - 479,886 (9,000) - Expiry of options during the financial year - (73,439) 73,439 Total transactions with owners 61,280,044 Loss for the year Other comprehensive income for the year Total comprehensive income - - - Total equity at the end of the financial year 61,280,044 - - - - - (44,676,326) 16,603,718 (4,301,431) (4,301,431) - - (4,301,431) (4,301,431) (48,977,757) 12,302,287 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 - - - - - - (1,971,585) (1,971,585) - - (1,971,585) (1,971,585) Total equity at the end of the financial year 60,009,350 873,247 (44,749,765) 16,132,832 This statement should be read in conjunction with the Notes to the Financial Statements Helix Resources Limited Annual Report 2015 31 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 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 2015. 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 2015 32 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 or 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 profit or loss in the period in which they arise. Unrealised gains and losses arising from changes in the fair value of non-monetary securities classified as available-for-sale are recognised in equity in the available-for-sale investments revaluation reserve. When securities classified as available-for-sale are sold or impaired, the accumulated fair value adjustments are included in profit or loss as gains and losses from investment securities. Helix Resources Limited Annual Report 2015 33 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 the 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 Joint Venture Operations 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 21. Revenue Recognition j) Revenue from the disposal of assets is recognised when the Group has passed control of the goods or other assets to the buyer. Interest on bank deposits is recognised as income as it accrues. Interest revenue is recognised using the effective interest rate method, which, for floating rate financial assets, is the rate inherent in the instrument and is net of GST. Helix Resources Limited Annual Report 2015 34 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 $9.14M. 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 2015 35 r) New and amended Accounting Standards adopted by the Group A number of new or amended standards became applicable for the current reporting period, however, the Group did not have to change its accounting policies or make retrospective adjustments as a result of adopting these standards. Information on these new standards which are relevant to the Group is presented below. 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. AASB 2012-3 is applicable to annual reporting periods beginning on or after 1 January 2014 and has been adopted in this financial report. The adoption of these amendments has not had a material impact on the Group as the amendments merely clarify the existing requirements in 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. When developing IFRS 13 Fair Value Measurement, the IASB decided to amend IAS 36 Impairment of Assets to require disclosures about the recoverable amount of impaired assets. The IASB noticed however that some of the amendments made in introducing those requirements resulted in the requirement being more broadly applicable than the IASB had intended. These amendments to IAS 36 therefore clarify the IASB’s original intention that the scope of those disclosures is limited to the recoverable amount of impaired assets that is based on fair value less costs of disposal. AASB 2013-3 makes the equivalent amendments to AASB 136 Impairment of Assets and is applicable to annual reporting periods beginning on or after 1 January 2014. The adoption of these amendments in this financial report has not had a material impact on the Group as they are largely of the nature of clarification of existing requirements. AASB 2014-1 Amendments to Australian Accounting Standards (Part A: Annual Improvements 2010-2012 and 2011-2013 Cycles). Part A of AASB 2014-1 makes amendments to various Australian Accounting Standards arising from the issuance by the IASB of International Financial Reporting Standards Annual Improvements to IFRSs 2010-2012 Cycle and Annual Improvements to IFRSs 2011-2013 Cycle. Among other improvements, the amendments arising from Annual Improvements to IFRSs 2010-2012 Cycle:   clarify that the definition of a ‘related party’ includes a management entity that provides key management personnel services to the reporting entity (either directly or through a group entity) amend AASB 8 Operating Segments to explicitly require the disclosure of judgements made by management in applying the aggregation criteria Among other improvements, the amendments arising from Annual Improvements to IFRSs 2011-2013 Cycle clarify that an entity should assess whether an acquired property is an investment property under AASB 140 Investment Property and perform a separate assessment under AASB 3 Business Combinations to determine whether the acquisition of the investment property constitutes a business combination. Part A of AASB 2014-1 is applicable to annual reporting periods beginning on or after 1 July 2014. The adoption of these amendments has not had a material impact on the Group as they are largely of the nature of clarification of existing requirements. Impact of Standards issued but not yet applied by the Group New and revised accounting standards and amendments that are currently issued for future reporting periods that are relevant to the Group include: AASB 9 Financial Instruments 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 effective date is for annual reporting periods beginning on or after 1 January 2018. The Group is yet to undertake a detailed assessment of the impact of AASB 9. However, based on the entity’s preliminary assessment, the Standard is not expected to have a material impact on the transactions and balances recognised in the financial statements when it is first adopted for the year ending 30 June 2019. AASB 14 Regulatory Deferral Accounts permits first-time adopters of Australian Accounting Standards who conduct rate-regulated activities to continue to account for amounts related to rate regulation in accordance with their previous GAAP. Accordingly, an entity that applies AASB 14 may continue to apply its previous GAAP accounting policies for the recognition, measurement, impairment and derecognition of its regulatory deferral account balances. This exemption is not available to entities who already apply Australian Accounting Standards. The effective date is for annual reporting periods beginning on or after 1 January 2016. When AASB 14 becomes effective for the first time for the year ending 30 June 2017, it will not have any impact on the entity. AASB 15 Revenue from Contracts with Customers replaces AASB 118: Revenue, AASB 111 Construction Contracts and some revenue-related Interpretations. In summary, AASB 15:     establishes a new revenue recognition model; changes the basis for deciding whether revenue is to be recognised over time at a point in time; provides a new and more detailed guidance on specific topics (eg multiple element arrangements, variable pricing, rights of return and warranties); and expands and improves disclosures about revenue. When this Standard is first adopted for the year ending 30 June 2018, there will be no material impact on the transactions and balances recognised in the financial statements. AASB 2014-3 Amendments to Australian Accounting Standards – Accounting for Acquisitions of Interests in Joint Operations impacts on the use of AASB 11 when acquiring an interest in a joint operation. The effective date is for annual reporting periods beginning on or after 1 January 2016. When these amendments are first adopted for the year ending 30 June 2017, there will be no material impact on the transactions and balances recognised in the financial statements. Helix Resources Limited Annual Report 2015 36 AASB 2014-4 Amendments to Australian Accounting Standards – Clarification of Acceptable Methods of Depreciation and Amortisation. The amendments to AASB 116 prohibit the use of a revenue-based depreciation method for property, plant and equipment. Additionally, the amendments provide guidance in the application of the diminishing balance method for property, plant and equipment. The effective date is for annual reporting periods beginning on or after 1 January 2016. When these amendments are first adopted for the year ending 30 June 2017, there will be no material impact on the transactions and balances recognised in the financial statements. AASB 2014-9 Amendments to Australian Accounting Standards – Equity Method in Separate Financial Statements. The amendments introduce the equity method of accounting as one of the options to account for an entity’s investments in subsidiaries, joint ventures and associates in the entity’s separate financial statements. The effective date is for annual reporting periods beginning on or after 1 January 2016. When these amendments are first adopted for the year ending 30 June 2017, there will be no material impact on the financial statements. AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture. The amendments address a current inconsistency between AASB 10 Consolidated Financial Statements and AASB 128 Investments in Associates and Joint Ventures (2011). The amendments clarify that, on a sale or contribution of assets to a joint venture or associate or on a loss of control when joint control or significant influence is retained in a transaction involving an associate or a joint venture, any gain or loss recognised will depend on whether the assets or subsidiary constitute a business, as defined in AASB 3 Business Combinations. Full gain or loss is recognised when the assets or subsidiary constitute a business, whereas gain or loss attributable to other investors’ interests is recognised when the assets or subsidiary do not constitute a business. The effective date is for annual reporting periods beginning on or after 1 January 2016. When these amendments are first adopted for the year ending 30 June 2017, there will be no material impact on the financial statements. 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. However, if the Group does not raise capital in the short term, it can continue as a going concern by selling (or part thereof) its interest in its listed investments. 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 2015 37 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 on Hand Cash at Bank Total Cash CONSOLIDATED 2015 $ 2014 $ 196 300 1,582,654 1,711,110 1,582,850 1,711,410 Cash on hand is non-interest bearing. Cash at bank bears floating interest rates between 0.00% and 2.35% (2014: between 0.00% and 2.40%). b) Reconciliation of loss after income tax to cash flows provided by operating activities 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 Gain on foreign exchange transactions Finance costs Loss on sale of investment Changes in Net Assets and Liabilities (Increase)/Decrease in Assets 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 3. TRADE AND OTHER RECEIVABLES CURRENT RECEIVABLES Prepayments Other Receivables Total Current Receivables CONSOLIDATED 2015 $ (4,301,431) 2014 $ (1,971,585) 11,138 1,383,568 - (12,524) (38,478) - 2,865,743 17,691 2,102,704 (13,058) (384) 8,832 74,757 - 7,997 43,846 (43,548) 19,601 (107,934) 18,108 (146,889) 134,022 CONSOLIDATED 2015 $ 2014 $ 10,385 39,554 49,939 11,753 67,482 79,235 All amounts are short term. The net carrying value of trade receivables is considered a reasonable approximation of fair value. A total of nil (2014: nil) are past 30 days due. No current or past due receivables were impaired at the end of the financial year. Helix Resources Limited Annual Report 2015 38 NON-CURRENT RECEIVABLES Deferred payment for sale of Olary Magnetite Pty Ltd to Lodestone Equities Total Non-Current Receivables CONSOLIDATED 2015 $ - - 2014 $ 2,500,243 2,500,243 During the period, the Group received $25,000 in cash and 12,500,000 shares in ASX listed Tigers Realm Coal Limited to settle the Olary sale (refer note 4). A loss of $1,287,743 was recognised. 4. OTHER FINANCIAL ASSETS - CURRENT (a) Security Deposits (b) Shares in listed corporations – financial asset at fair value through profit or loss held for trading1 Total Current Financial Assets Changes in fair values of financial assets held for trading are recorded in the profit and loss. 1 Movement in shares in listed corporations – held for trading is as follows: Opening balance Acquisitions* Revaluation of shares in listed corporations Disposals/Transfer to Non-Current Closing balance CONSOLIDATED 2015 $ 2014 $ 80,000 1,580,000 1,660,000 60,000 624 60,624 CONSOLIDATED 2015 $ 2014 $ 624 1,567,500 12,500 (624) 1,580,000 240 - 384 - 624 *The acquisitions relate to the consideration received for the sale of Helix’s interest in Tunkillia to WPG Resources for 10 million shares in WPG Resources (escrowed for 6 months and released on 16 September 2015) and the settlement of the sale of Olary Magnetite Pty Ltd to Lodestone Equities for 12,500,000 share is ASX listed Company Tigers Realm. 4(a) Shares in subsidiaries Name Oxley Exploration Pty Ltd* Leichhardt Resources (QLD) Pty Ltd* Helix Resources (Overseas) Pty Ltd* Helix Resources Chile Limitada* Country of Incorporation Australia Australia Australia Chile Principal Activity Percentage Held Percentage Held Mineral Exploration Mineral Exploration Mineral Exploration Mineral Exploration 2015 100% 100% 100% 100% 2014 100% 100% 100% 100% * All Subsidiaries’s primary activities are mineral exploration. 5. OTHER FINANCIAL ASSETS – NON CURRENT (a) Security Deposits (b) Shares in listed corporations – held for trading Total Other Assets – Non-Current Changes in fair values of financial assets held for trading are recorded in the profit and loss. CONSOLIDATED 2015 $ 86,500 648 87,148 2014 $ 123,585 - 123,585 Helix Resources Limited Annual Report 2015 39 6. PROPERTY, PLANT AND EQUIPMENT 2015 Gross Carrying Amount Balance at 30 June 2014 Disposals Balance at 30 June 2015 Accumulated Depreciation Balance at 30 June 2014 Depreciation Depreciation write off on disposal Balance at 30 June 2015 Net Book Value 30 June 2015 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 2014 CONSOLIDATED Plant & Equipment $ Motor Vehicles $ 119,533 - 119,533 86,079 6,771 - 92,850 94,856 - 94,856 75,451 4,367 - 79,818 Total $ 214,389 - 214,389 161,530 11,138 - 172,668 26,683 15,038 41,721 CONSOLIDATED Plant & Equipment $ Motor Vehicles $ 180,678 (61,145) 119,533 126,803 10,247 (50,971) 86,079 182,556 (87,700) 94,856 141,469 7,444 (73,462) 75,451 Total $ 363,234 (148,845) 214,389 268,272 17,691 (124,433) 161,530 33,454 19,405 52,859 Helix Resources Limited Annual Report 2015 40 7. EXPLORATION AND EVALUATION EXPENDITURE (NON-CURRENT) Balance at beginning of the financial year Expenditure incurred during the year Sale of Tunkillia area of interest1 Impairment losses Balance at the end of the financial year CONSOLIDATED 2015 $ 11,892,694 1,091,773 (2,458,000) (1,383,568) 9,142,899 2014 $ 12,038,911 1,956,487 - (2,102,704) 11,892,694 1 The Group received $500,000 in cash and 10 million shares in ASX listed WPG Resources which resulted in the Company booking a loss of the sale of the Tunkilla tenements of $1,578,000. 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 ($713,260) – tenements were relinquished.   Hado project - Chile ($498,649) - Carrying value was adjusted to reflect current market value. Embrujado project - Chile ($171,659) – Carrying value was adjusted to reflect current market value. 8. TRADE AND OTHER PAYABLES Trade Payables Total Trade Payables CONSOLIDATED 2015 $ 2014 $ 197,221 197,221 242,370 242,370 All amounts are current and are expected to be settled within 12 months. The carrying value of trade payables is considered to be a reasonable approximation of fair value. 9. PROVISIONS Current Employee Benefits Total Current Provisions Non-Current Employee Benefits Total Non-Current Provisions 10. SHARE CAPITAL 268,466,692 Fully Paid Ordinary Shares (2014: 236,474,341) Total Share Capital CONSOLIDATED 2015 $ 2014 $ 62,396 62,396 2,653 2,653 44,981 44,981 467 467 CONSOLIDATED 2015 $ 2014 $ 61,280,044 61,280,044 60,009,350 60,009,350 Helix Resources Limited Annual Report 2015 41 2015 2014 No $ No $ Fully Paid Ordinary Shares Balance at beginning of financial year Conversion HLXO Options @ $0.04 Share Issue: 30,000,000 Fully Paid Shares @ $0.025 Share Issue Costs Balance at end of financial year 236,474,341 31,992,351 - - 60,009,350 204,806,589 59,192,640 1,279,694 - (9,000) 1,667,752 30,000,000 66,710 750,000 268,466,692 61,280,044 236,474,341 60,009,350 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 Listed Options 2015 2014 No. $ No. $ Balance at beginning of financial year 34,929,853 873,247 36,597,605 914,941 Options issued during the financial year Exercise of Options to Fully Paid Shares Expiry of Options Balance at end of financial year - (31,992,351) (2,937,502) - - (799,808) (73,439) - - (1,667,752) (41,694) - - - 34,929,853 873,247 There were no other options on issue in either 2014 or 2015. 12. ACCUMULATED LOSSES Balance at beginning of financial year Net Loss attributable to members of the parent entity Expiry of Options Balance at end of financial year 13. REVENUE Loss before Income Tax includes the following items of revenue and expense: Operating Activities Interest Revenue Other Total Revenue CONSOLIDATED 2015 $ 2014 $ (44,749,765) (42,778,180) (4,301,431) (1,971,585) 73,439 - (48,977,757) (44,749,765) CONSOLIDATED 2015 $ 2014 $ 30,641 41,520 72,161 45,446 53,921 99,367 Helix Resources Limited Annual Report 2015 42 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 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 2015 $ 2014 $ (11,138) (17,691) (1,383,568) (2,102,704) (72,735) (25,820) (151,896) (53,090) (4,301,431) (1,971,585) CONSOLIDATED 2015 $ 2014 $ 28,760 17,710 - - - - 28,760 17,710 The lease for the office and the shed are for a 1 year term with an option to extend for a further 2 years. As at reporting date, there was a balance of 6 months remaining on the office lease and a balance of 10 months remaining on the shed lease. 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 $31,414 (2014: $191,755) and, subject to cash reserves and economic conditions, exploration expenditure of $465,000 including the above rentals (2014: $1,031,473). 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 2015 $ 379,282 17,391 396,673 2014 $ 535,439 34,702 570,141 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. (b) Parent entity The ultimate parent entity of the Group is Helix Resources Limited. Helix Resources Limited Annual Report 2015 43 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% (2014 – 30%) Prima facie tax payable / (benefit) at Chilean rate of 20% (2014 – 20%) Adjusted for tax effect of the following: - taxable / non-deductible items - non-taxable / deductible items - research and development expenditure -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 Research and development tax benefit 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 2015 $ (4,768,688) 2014 $ (2,477,431) (4,768,688) (2,477,431) (1,229,514) (743,229) (150,819) - 1,075 (38,114) 311,505 311,505 - (5,306) 422 (8,327) 197,120 197,120 - - 1,111,173 554,014 (467,257) (505,846) (467,257) (505,846) - - (467,257) (505,846) 809,935 101,488 (792,072) (302,152) (129,314) - 111,451 200,664 (467,257) (505,846) 11,765,920 11,377,789 - (564,629) 198,565 26,630 42,441 24,343 11,991,115 10,879,944 1,226,299 1,145,966 2,016,083 1,034,515 2,372,265 3,050,598 (1,226,299) (1,145,966) (2,016,083) (1,034,515) (2,372,265) (3,050,598) - - Helix Resources Limited Annual Report 2015 44 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 2015 2014 2015 2014 2015 2014 1,578,678 1,701,080 4,172 10,330 1,582,850 1,711,410 4,762,978 (713,261) 4,049,717 8,822,823 (2,102,704) 6,720,119 5,763,489 (670,307) 5,093,182 5,172,575 10,526,467 13,995,398 - (1,383,568) (2,102,704) 5,172,575 9,142,899 11,892,694 Current Assets Cash Non-Current Assets Mineral Assets Impairment expense Carrying Amount Current Liabilities Trade payables 164,194 150,135 33,027 92,235 197,221 242,370 Revenue Depreciation 72,161 11,138 99,367 17,691 - - Loss before tax (4,098,382) (2,477,431) (670,307) - - - 72,161 11,138 99,367 17,691 (4,768,689) (2,477,431) 20. EARNINGS PER SHARE Basic earning / (loss) per share Diluted earning /(loss) per share COMPANY 2015 Cents Per share (1.64) (1.64) 2014 Cents Per share (0.96) (0.96) 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: 2015 $ 2014 $ Earnings / (loss) (a) (4,301,431) (1,971,585) Weighted average number of ordinary shares (b) 263,005,373 205,317,481 (a) Earnings used in the calculation of basic earnings per share is net loss after tax of $4,301,431 (2014: $1,971,585). 2015 No. 2014 No. Helix Resources Limited Annual Report 2015 45 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) 2015 $ (4,301,431) 2014 $ (1,971,585) 12 months to 30 June 2015 12 months to 30 June 2014 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 $4,301,431 (2014: loss of $1,971,585). (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: 205,317,481 263,005,373 Listed options INTEREST IN JOINT OPERATIONS 21. The parent entity has entered into the following unincorporated joint operations: 2015 No. - 2014 No. 34,929,853 Joint Operations Project Yalleen Restdown JV Percentage Interest 30% (2014: 30%) (API Management Pty Ltd 70% Iron Ore rights) 70% (2014: 70%) (Glencore) Principal Exploration Activities Iron Ore Gold Canbelego 70% (2014: 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% Restdown Joint Operation 70% Canbelego Joint Operation 70% 4,632 - 4,632 1,753,010 - 1,753,010 1,080,785 - 1,080,785 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 2015 46 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. 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). 2015 Level 1 Level 2 Level 3 Total Financial Assets Held for trading assets Available for sale assets 1,580,648 - 1,580,648 2014 Level 1 Level 2 Financial Assets Held for trading assets Available for sale assets 624 - 624 $ 1,580,648 - 1,580,648 Total $ 624 - 624 - - - - - - Level 3 - - - - - - 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. The Group has no other financial instruments for which fair value is derived without reference to unadjusted quoted prices in an active market for identified assets. Financial Risk Exposures and Management The main risks the group is exposed to through its financial instruments are interest rate risk, foreign currency 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. The Group’s main interest risk arises from cash held on deposit by an Australian financial institution as it is subject to prevailing interest rates. As at the end of the reporting period, the Group had $166,500 (2014: $183,585) on deposit in interest bearing accounts earning a weighted average interest rate of 2.64% (2014: 3.15%). Interest Rate Risk Sensitivity Analysis At 30 June 2015, 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 a decrease in loss (2014: decrease in loss) by $30,325 (2014: $22,723) and an increase in equity by $30,325 (2014: $22,723). 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 (2014: increase in profit) by $30,325 (2014: $22,723) and a decrease in equity by $30,325 (2014: $22,723). Helix Resources Limited Annual Report 2015 47 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 $ 2015 Financial Assets Current Receivables Non-current Receivables Held for trading assets Cash and cash equivalent assets Security deposits and deposits at financial institutions 1.41% 2.64% Financial Liabilities Trade Payables (all payable within 30 days) - - - - - - - - - - - 1,582,654 - - - - 80,000 86,500 49,939 - 1,580,648 196 - 49,939 - 1,580,648 1,582,850 166,500 1,662,654 86,500 1,630,783 3,379,937 - - - - 197,221 197,221 197,221 197,221 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 2.40% 3.15% Financial Liabilities Trade Payables (all payable within 30 days) - - - - - - - - - - - 1,711,110 2,500,243 - - 60,000 123,585 - 79,235 79,235 2,500,243 624 1,711,410 183,585 - 624 300 - 1,771,110 2,623,828 80,159 4,475,097 - - - - 242,370 242,370 242,370 242,370 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. Foreign Currency Risk The Group is exposed to fluctuations in foreign currencies arising from expenditure in currencies other than the Group’s measurement currency. The Group is exposed to currency exposures to the United States Dollar and Chilean Pesos. The Group has not formalized a foreign currency risk management policy, however it monitors its foreign currency expenditure subject to exchange rate movements and retains the right to withdraw from the foreign exploration commitments after minimum expenditure targets have been met. Helix Resources Limited Annual Report 2015 48 The Group’s exposures to foreign currency risk at the end of the reporting period, expressed in Australian dollars, were as follows: 2015 USD CLP Cash and cash equivalents Trade and other payables 144,818 - 144,818 4,172 33,027 37,199 2014 USD CLP Cash and cash equivalents Trade and other payables 218,533 - 10,331 92,235 218,533 102,566 Liquidity Risk The Group manages liquidity risk by monitoring forecast cash flows and ensuring that sufficient cash and financial assets are available to meet the current and future commitments of the Group. 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 a 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. All cash and cash equivalents are held with financial institutions with a credit rating of AA3 or above. 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. 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 2015 $ No 3 62,396 2,653 65,049 2014 $ 44,981 467 45,448 No 3 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 $143,500 (2014: $133,500) for tenement holdings. Helix Resources Limited Annual Report 2015 49 25. REMUNERATION OF AUDITORS a) Auditor of the Parent Entity Auditing the financial report The auditor of Helix Resources Limited for the 2015 financial year is Grant Thornton Audit Pty Ltd. 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 2015 $ 2014 $ 25,430 25,430 28,315 28,315 2015 $ 2014 $ 3,293,437 9,271,120 12,564,557 259,617 2,653 262,270 1,850,168 14,569,380 16,419,548 286,249 467 286,716 61,280,044 60,009,350 (48,977,757) (44,749,765) - 873,247 12,302,287 16,132,832 (4,301,431) (4,301,431) (1,971,585) (1,971,585) 27. SUBSEQUENT EVENTS On 16 September 2015, all the listed shares Helix holds in WPG Resources Ltd were released from voluntary escrow. The listed shares the Company holds in Tigers Realm Coal Limited have decreased in value from $0.10 per share as at 30 June 2015 to $0.06 per share as at 16 September 2015. No other matter or circumstance has arisen since 30 June 2015 that has significantly affected or may significantly affect the Group’s operations , the results of those operations or the Group’s state of affairs in future years. 28. ADDITIONAL COMPANY INFORMATION Helix Resources Limited is a listed public company, incorporated and operating in Australia. Registered Office 78 Churchill Avenue SUBIACO WA 6008 Tel (08) 9321 2644 Principal Place of Business 78 Churchill Avenue SUBIACO WA 6008 Tel (08) 9321 2644 The financial report for Helix Resources Limited for the year ended 30 June 2015 was authorised for issue in accordance with a resolution of the directors on the 22nd September 2015. Helix Resources Limited Annual Report 2015 50 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 Gee Vee Pty Ltd 2 Yandal Investments Pty Ltd 3 Brisbane Investments I and II Ltd 4 HSBC Custody Nominees (Aust) Ltd 5 Rombola Family Pty Ltd 6 Blamnco Trading Pty Ltd 7 Creekwood Nominees Pty Ltd 8 Wythenshawe Pty Ltd 9 Seefeld Investments Pty Ltd 10 BTX Pty Ltd 11 Mr William Henry Hernstadt 12 Ocean View WA Pty Ltd 13 Ms Philippa Cummins 14 Primdonn Nominees Pty Ltd 15 Aotea Minerals Ltd 16 Technica Pty Ltd 17 Mr Michael Hood Wilson 18 Penoir Pty Ltd 19 HJH Nominees Pty Ltd 20 Flue Holdings Pty Ltd Top 20 Total AS AT 14th SEPTEMBER 2015 NUMBER OF SHARES HELD Number of Shareholders Number of Shares 82 166 251 619 252 1,370 577 28,929 522,328 2,169,154 23,522,453 242,223,828 268,466,692 3,661,637 Number of Shares % of Issued Capital 21,617,759 21,172,514 13,063,829 10,887,583 10,002,127 10,000,000 8,247,227 6,999,917 6,350,000 4,681,293 4,502,728 4,000,000 4,000,000 4,000,000 3,630,000 3,513,332 3,106,667 3,000,000 2,020,500 2,000,000 8.05 7.89 4.87 4.06 3.73 3.73 3.07 2.61 2.37 1.74 1.68 1.49 1.49 1.49 1.35 1.31 1.16 1.12 0.75 0.75 146,795,476 54.71 VOTING RIGHTS One vote for each ordinary share held in accordance with the Company's Constitution. Helix Resources Limited Annual Report 2015 51 SUBSTANTIAL SHAREHOLDERS Shareholder Gee Vee Pty Ltd Yandal Investments Pty Ltd DIRECTORS' INTEREST IN SHARE CAPITAL Number of Shares % of Issued Capital 21,617,759 21,172,514 8.05 7.89 Director M H Wilson P R Rombola J Macdonald Total Fully Paid Ordinary Shares Listed Options 3,132,934 10,002,127 9,002,500 20,537,561 - - - - Helix Resources Limited Annual Report 2015 52 TENEMENT SCHEDULE Tenement Name Mineral Ownership NSW COPPER & GOLD PROJECTS (INCL. CANBELEGO AND RESTDOWN JV's) EL6105 EL6140 EL6336 EL6501 EL6739 EL7438 EL7439 EL7482 Canbelego Restdown Collerina South Restdown Muriel Tank Quanda Fiveways Little Boppy Copper/Gold Gold/Copper Copper/Gold Copper/Gold Gold/Copper 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% 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 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 HLX 100% HLX 100% HLX 100% HLX 100% HLX 100% Helix Resources Limited Annual Report 2015 53 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 78 Churchill Avenue Subiaco, Western Australia 6008 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 2015 54 

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