Annual Report
30 June 2016
ACN 009 138 738
Table of Contents
Chairman’s Review ...................................................................... 3
Review Of Operations ................................................................... 4
Corporate Governance ................................................................. 18
Directors’ Report ....................................................................... 19
Auditor’s Independence Declaration ................................................ 26
Independent Auditor’s Report ........................................................ 27
Directors’ Declaration ................................................................. 30
Consolidated Statement Of Financial Position ..................................... 31
Consolidated Statement Of Profit Or Loss And Other Comprehensive Income 32
Consolidated Statement Of Cash Flows ............................................. 33
Consolidated Statement Of Changes In Equity ..................................... 34
Notes To The Financial Statements .................................................. 35
Number Of Shares Held ................................................................ 55
Tenement Schedule .................................................................... 57
Corporate Directory .................................................................... 58
CHAIRMAN’S REVIEW
I am pleased to present the 2016 Annual Report for the company.
The past 12 months has been an exciting time for your company. Firstly, whilst the majority of the financial year was a very difficult
period for exploration companies, the sector has seen improved sentiment since March 2016 and investors have returned after a long
period away.
Throughout this period your board and management continued to work hard and achieve significant milestones in its pursuit of
advancing a portfolio of quality exploration assets in Australia and Chile.
During the year the company has achieved the following:
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-
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Three drilling programs at the Collerina Copper-Zinc Project in NSW. These programs have now extended the strike length of
mineralization at the Collerina Prospect to over 700m and the depth to 226m.
Several new drill targets and anomalies at the Collerina Copper-Zinc Project in NSW were confirmed and advanced through
the continued use of (EM) geophysical surveys and geo-chemical soil sampling.
A 3,500m drilling program was completed at the Joshua Project in Chile by our JV partner EPG Exploration Fund. Large
widths of low grade copper mineralization were recorded by the program.
An over-subscribed placement was completed with Euroz Securities which enabled the company to successfully increase
exploration activities at the Collerina Copper-Zinc and Cobar Gold Projects in NSW.
The company successfully liquidated it’s holding’s in Tiger Realm Coal and WPG Resources shares which enabled Helix to
maintain ongoing operations with the proceeds and limit share dilution.
In the current 2017 financial year, Helix plans to continue actively exploring and advancing it’s two key projects in NSW.
I would like to thank the Board and Staff for their contributions during the past year. Our people continue to work hard to advance the
exploration assets of the company and I hope you join me in continuing to support them.
The company looks forward to making further progress in the year ahead. Shareholders will be kept informed of all developments. I
encourage shareholders to look at the Helix website at www.helix.net.au
Pasquale Rombola
Chairman
REVIEW OF OPERATIONS
AUSTRALIA - COPPER AND GOLD PROJECTS
Background
Helix retains approximately 100km strike of prospective VMS Copper terrain and a 50km strike of epithermal Gold terrain in the Cobar
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. Helix’s work in the region has culminated in the discovery of the exciting Collerina
Copper-Zinc Prospect as well as advancing other projects including the Cobar Gold Project. Helix has defined a gold resource at the
Sunrise & Good Friday Prospects as well as an oxide copper resource at the Canbelego Copper Project. The Collerina Copper-Zinc
Prospect and surrounding prospective copper trend has the potential for multiple discoveries and is the main focus of Helix’s exploration
efforts.
Figure 1: Location of Helix Projects and surrounding mines in Cobar region NSW
COLLERINA PROJECT – (Helix 100% of precious and base metals discoveries)
The Collerina Project is located approximately 40km sothwest of Nyngan in Central NSW. Collerina is prospective for gold and base
metal mineralisation. It is located on a 25km 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 long VMS belt and is close to infrastructure including
the operating Tritton Mine and associated deposits to the north, and the Tottenham copper/gold deposits to the south.
Collerina Prospect
In late 2014 Helix announced the discovery of Copper-Zinc mineralistion at the Collerina Prospect. Drilling programs were undertaken
late in 2014, 2015 and early 2016 following positive results from a detailed soil sampling program which defined a copper/gold target
over an open-ended strike of approximately 700m. The geochemical survey was followed-up with surface and down-hole EM surveys
that have highlighted the presence of bed-rock conductors associated with the gold and basemetal trend. The broad-spaced drilling
completed so far identified base metal mineralisation over an open-ended strike of 700m. The system remains open along strike and
down dip/plunge.
Table 1: Significant results (>2% Cu) from drilling at Collerina Copper-Zinc Prospect from shallowest to deepest.
The drilling to date has intersected better that 1% copper results in 25 of the 38 holes drilled at the Collerina Prospect.
Figure 2: Photo of core from the mineralised zone in CODD001. The surrounding 1.3m interval returned 12.3% Cu, 2.5% Zn, 1.5g/t Au &
45g/t Ag⁴
Figure 3: Drill hole locations on an EM image. Black traces 2014-15 drilling, Red traces May 2016 drilling. The Collerina Prospect has
been tested over strike of 700m so far and remains open in all directions.
Geophysical surveys completed in the 2016 financial year included a detailed aeromagnetic survey over the entire Collerina copper
trend, additional high powered moving loop EM surveys, which identifed a completely untested new target zone 1km north of the main
Collerina Prospect. Fixed loop and down hole EM surveys covering the eastern extension of the main Collerina Prospect have also been
completed identifying extensions and a new strong off-hole conductor below the current drilling. All three EM targets will be tested by
drilling in the next RC and DDH drilling campaign.
Figure 4:Mid-time highpower EM image showing the new zone to the north and EM anomalism associated with the main mineralisation
zone
Figure 5: Two drilling targets to be tested in the next drill program, the Main Mineralisation Zone Extension and a new Strong Off-hole
Conductor below drilling to date.
Regional exploration is continuing with several copper prospects identified for follow-up exploration. Deposits in the district generally
form in clusters and there is high potential for further discoveries on the copper trend beyond the Collerina Prospect. Soil sampling is
ongoing with other airborne geophysical systems being considered to target additional sulphide mineralisation for drill testing.
Figure 6: Regional copper workings and pospects on the Collerina copper trend.
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.
In May 2016, Helix Resources was awarded the inaugural NSW Mineral Council’s Explorer of the Year award for the Collerina Copper-
Zinc Project discovery. The award illustrates the significance of the Collerina discovery and confirms the Company’s exploration strategy
in this prospective region.
COBAR GOLD PROJECT
EL 6140, EL6501 & EL6739-Helix Resources (70%; Glencore 30% diluting, EL8433 – Helix Resources 100%)
The Cobar Gold Projects are located 40km to 70 km southeast of Cobar in central western NSW with the tenement package covering an
area of ~201km² (Restdown JV Project 154km², Muriel Tank JV Project 44km², Boundary ~3km²).
Battery Tank Goldfield Prospects
The Sunrise, Good Friday, Battery Tank and Boundary Prospects lie within EL6140 and EL8433 covering the entire Battery Tank
Goldfield, 20km southwest 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 resources at the Sunrise and Good Friday prospects (refer to resources table), where
zones of gold mineralisation are associated with sandy sediments intersected by localised shears.
Figure 7: Sections from Good Friday, Sunrise and the Boundary Prospects showing significant intersections of gold in previous drilling.
Regional geochemical sampling has confirmed the continuance of the gold mineralised corridor over the entire Battery Tank Goldfield.
The additional zones identified from Helix’s ongoing soil provided encouragement that multiple repeats of epithermal-style mineralisation
are present in the district.
Drilling is underway to target the structural controls of high-grade gold mineralisation at the Good Friday and Boundary Prospects as well
as a 1,000m aircore drilling program to test a strong gold in soil anomaly at Battery Tank.
Figure 8: Battery Tank Goldfield soil anomalism showing prospects identified to date. Drilling is underway testing high-grade structures
at the Boundary and Good Friday Prospects with first-pass aircore drilling at the Battery Tank Prospect.
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 in 2014 comprising 8 holes for a total of 700m 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)6. An assessment of high-grade controls and follow-up
drilling is being considered.
CANBELEGO PROJECT JV – NSW
EL 6105 – (Helix Resources Ltd 70%, Straits Resources 30%)
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)6.
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)6.
Figure 9: Canbelego soil sampling on detailed magnetics, location of the three advancing copper prospects.
The JV partners have agreed to advance the project this year by using soil geochemistry to better define oxide targets at the Caballero
and West Canbelego Prospects, as well as re-sample the main Canbelego trend using the Companies auger rig. Results from this work
will determine areas for future drill programs.
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. 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.
Joshua Copper-Gold Project [100%] EPG Partners earning up to 50.1%
Figure 10: Helix’s project locations – Region IV Chile
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 was subject to a 3,000m drilling program by EPG
Partners (EPG).
Figure 11a) 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 11b) Thin-section photomicrograph of copper
sulphides from the adjacent rock sample. Note Chalcocite
(Cs) rimming/replacing in-situ Chalcopyrite (Cp) grains.
Figure 12: Main porphyry target at Joshua – copper-in-soil draped on Google Earth™ topography
Helix was advised by the JV Manager EPG, that the Investment Fund managing and funding the exploration program at Joshua will be
closed down.
The Fund has agreed to relinquish all its rights to equity in Joshua that it had secured by funding the USD$1.4M Stage 1 earn-in of the
JV agreement. Helix will retain 100% ownership of the Joshua Project.
Helix is in receipt of all technical data and diamond core from EPG’s 3,500m drill program conducted in late 2015.
The Stage 1 diamond drilling program consisted of 6 holes drilled into the stockwork at Target 1. All holes intersected porphyry-style
mineralisation and the program has extended the known strike of the system to at least 800m.
The drilling to date has identified the presence of at least three porphyry events including: Andesitic, Dacitic and Dioritic porphyry events,
associated with the copper mineralisation at the Joshua Project.
The main Joshua porphyry target is at least 3 kilometres by 1 kilometre comprising a large copper in soil anomaly coincident with a large
IP anomaly, continuing to a depth in excess of 500m from surface. The main Joshua porphyry target comprises Target 1, the Carmelita
Mine zone and Target 4.
Figure 13: The 2015 Drill hole traces on Joshua Target 1 plan map
Blanco y Negro Copper/Gold Project [100%]
Blanco Y Negro (ByN) is a 100% owned Mining lease 15km southeast 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 nortwest 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)7 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)6. The deposit remains open to the northwest along strike and down
dip (Figure 14).
Figure 14: Approximate position of B y N Deposit on local topography with significant results.
Table 2 : ByN Deposit Material Type
August 2015 Mineral Resource Estimation (0.5% Cu cut off)7
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 exploration concessions surrounding the Joshua and Blanco y negro Projects. These concessions, including Huallillinga
are highly prospective for a combination of high-grade structurally controlled copper/gold sytems and large copper/gold porphyry
systems.
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).6 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)6, outlining potentially a second large greenfield porphyry discovery in Region IV.
Figure 15: Samuel Prospect Geological Mapping and position of rockchip samples (Cu ppm)
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 16: 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
grains
Djurleite (CC)
Vein
Figures 17 and 18: Photomicrograph images of thin-sections from the location shown on photo 7. Photo 8 shows fine grains (<1mm) of
Chalcopyrite preserved in limonite veins.
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
The 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.
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. Helix has received $500,000 in cash and a further 10,000,000 WPG shares
(which were sold in the 2016 financial year for $0.3m). Helix is still entitled to the following from WPG:
$500,000 in cash, and an additional 10 million ordinary fully paid ordinary WPG shares, upon the commencement of
mine construction; and
a 1% NSR royalty for:
o
30% of attributable production from the existing resource; and
o On 100% of production from any additional resources/reserves defined within the Tunkillia Project area.
Helix retains certain rights to bring forward this payment and share issue if WPG introduces a majority equity partner, sells the asset or
WPG is subject to a successful take-over bid prior to mine construction.
Resources
Commodity
Category
Copper
(+Gold)
Indicated
and Inferred
Project
Blanco Y
Negro, Chile
Interest
100% Helix
Copper
Inferred
Canbelego
JV, NSW
70%(Aeris 30%)
Gold
Inferred
Cobar Gold
70%
(Glencore 30% Diluting)
Resource
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
20,000t Cu & 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
Iron Ore
Indicated
Inferred
Yalleen JV,
WA
30%
(Diluting)
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.
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.
Cobar Gold: 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.
2.
3.
4.
5.
6.
7.
For full details of exploration results refer to ASX announcements dated. 15 December 2014, 1 February 2015 Helix Resources is not aware
of any new information or data that materially effects the information in these announcements.
For full details of exploration results refer to ASX announcement dated 1 April 2015. Helix Resources is not aware of any new information or
data that materially effects the information in these announcements.
For full details of exploration results refer to ASX announcement dated 10 November 2015. Helix Resources is not aware of any new
information or data that materially effects the information in these announcements.
For full details of exploration results refer to ASX announcement dated 18 February 2016 Helix Resources is not aware of any new
information or data that materially effects the information in these announcements.
For full details of exploration results refer to ASX announcement dated 29 June 2016. Helix Resources is not aware of any new information
or data that materially effects the information in these announcements.
For full details of exploration results refer to ASX announcement. Helix Resources is not aware of any new information or data that materially
effects the information in these announcements.
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.
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 2016 was approved by the Board on 22 September 2016 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.
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 2016.
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
Executive Chairman – 18 July 2016 to present
Non-Executive Chairman – 10 March 2014 to 17 July 2016
Non-Executive Director – 1 July 2013 to 9 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
INTERESTS IN THE SHARES AND OPTIONS OF THE COMPANY AND RELATED BODIES CORPORATE
As at the date of this report, the interests of the directors in the shares and options of Helix Resources Limited were:
Number of ordinary
securities
Number of options over
ordinary shares
P Rombola
M Wilson
J Macdonald
11,194,627
3,505,434
10,077,500
3,000,000
3,000,000
3,000,000
COMPANY SECRETARY
Michael Dylan Naylor Bcom, CA, AGIA
Michael has 20 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 copper, gold, iron ore
and other base metal mineral exploration in Australia and Chile. There has been no significant change in the nature of these activities during the year.
FINANCIAL RESULTS
The net consolidated loss of the Group for the financial period, after provision for income tax was $1,502,964 (2015: loss of $4,301,431).
DIVIDENDS
No dividend has been paid since the end of the previous financial year and no dividend is recommended for the current period.
REVIEW OF OPERATIONS
The Consolidated entity’s activities are contained in releases to the ASX on a quarterly basis, discussed in a separate section of this Annual Report as
well as on our website at www.helix.net.au.
The Company’s strategy continues to focus on prospective gold and copper regions in Australia and Chile and utilising our corporate and geological
expertise to create and extract value for the benefit of our shareholders.
Mineral Asset Project Highlights
Refer to the Review of Operations.
Corporate
The Group reported a loss of $1,502,964 during the year after impairment of $9,485 of carried forward exploration costs.
Major corporate events include:
In October 2015, the Company disposed of its shareholding in WPG Resources Limited for total proceeds of $0.3m.
In November and December 2015, the Company disposed of its shareholding in Tigers Realm Coal Limited for total proceeds of $0.34m.
In April 2016, the Company completed an oversubscribed placement raising $1.28m at $0.032 per share before costs. Funds are being used to
accelerate exploration on the NSW projects and for working capital purposes. Euroz Securities Limited acted as sole lead manager.
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
Subsequent to 30 June 2016, the Company received $167,110 from its 2015 R&D claim.
No other matter or circumstance has arisen since 30 June 2016 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.
SHARE OPTIONS
Unissued Shares
As at the date of this report, there were 14,750,000 unissued ordinary shares under options. Refer to the remuneration report for further details of the
options outstanding for Key Management Personnel (KMP).
Option holders do not have any right, by virtue of the option, to participate in any share issue of the Company or any related body corporate.
No shares were issued as a result of the exercise of options during the year or until the date of 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 2016. 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
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 is 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 plan.
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 are 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 directors, 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 issued 14,250,000 options as LTI’s during the year (2015: Nil).
Value of Options Awarded, Exercised and Lapsed During the Year
30 June 2016
Name
Financial
Year
Value of
Options
Granted
During the
Year
$
Grant
Date
Fair Value
Exercise
Expiry
Per Option
Price
Date
Value of
Options
Exercised
during
the year
$*
Value of
Options
Lapsed or
Cancelled
During the
Year*
Number of
Options Lapsed
or Cancelled
During the Year*
Non-Executive
Directors
Mr P Rombola
Mr J Macdonald
Executive Directors
Mr M Wilson
Executives
Mr M Naylor
2016
2016
68,400
16 Nov 2015
$0.023
$0.0675
15 Nov 2018
68,400
16 Nov 2015
$0.023
$0.0675
15 Nov 2018
2016
68,400
16 Nov 2015
$0.023
$0.0675
15 Nov 2018
2016
68,400
16 Nov 2015
$0.023
$0.0675
15 Nov 2018
-
-
-
-
-
-
-
-
-
-
-
-
* Value at grant date
Grant of Long Term Incentives
For the year ended 30 June 2016, the following options were issued to KMP:
Mr P Rombola
Mr M Wilson
Mr J Macdonald
Mr M Naylor
Number of options over
ordinary shares
3,000,000
3,000,000
3,000,000
3,000,000
All options issued to directors and KMP are issued for nil consideration.
All options issued carry no dividend or voting rights. When exercised, each option is converted into one ordinary share pari passu with existing ordinary
shares.
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.
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
Primary
Post Employment
Equity
2016
Salary &
Fees
$
Annual
& Long
Service
Leave
$
Perfor-
mance
Based
Payment
$
Non – Executive Directors
50,000
P Rombola
J Macdonald
40,000
Executive Directors
-
-
M Wilson*
182,648
19,049
Key Management Personnel
M Naylor
90,000
-
Total
362,648
19,049
-
-
-
-
-
Non
Mone-
tary
Super-
annuation
Pres-
cribed
Benefits
$
$
-
-
-
-
-
-
-
17,352
-
17,352
$
-
-
-
-
-
Other
Retire-
ment
Benefits
$
Options
Total
% of
Remune-
ration
Perfor-
mance
Related
$
%
$
$
-
-
-
-
-
45,622
45,622
48%
53%
95,622
85,622
45,622
17%
264,671
45,622
34%
135,622
182,488
-
581,537
-
-
-
-
-
Primary
Post Employment
Equity
2015
Salary &
Fees
$
Annual
& Long
Service
Leave
$
Perfor-
mance
Based
Payment
$
Non – Executive Directors
50,000
P Rombola
J Macdonald
40,000
Executive Directors
-
-
M Wilson*
183,066
16,216
Key Management Personnel
M Naylor
90,000
-
Total
363,066
16,216
-
-
-
-
-
* Includes annual leave and long service leave accrued.
Non
Mone-
tary
Super-
annuation
Pres-
cribed
Benefits
$
$
-
-
-
-
-
-
-
17,391
-
17,391
$
-
-
-
-
-
Other
Retire-
ment
Benefits
$
-
-
-
-
-
Options
Total
% of
Remune-
ration
Perfor-
mance
Related
$
-
-
-
-
-
%
$
$
-
-
-
-
-
50,000
40,000
216,673
90,000
396,673
-
-
-
-
-
Whilst the level of remuneration is not dependent on the satisfaction of any performance condition, the performance of Executives is reviewed on an
annual basis against a number of qualitative and quantitative factors.
Consequences of performance on shareholder wealth
In considering the Group’s performance and benefits for shareholder wealth, the Board have regard to the following indices in respect of the current
financial year and the previous four financial years:
Item
Revenue
Net profit/(loss)
Share Price
Dividends
2012
2013
2014
2015
2016
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
27,720
(1,502,964)
$0.07
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
P Rombola
M Wilson
M Naylor
60,000
182,648*
90,000
12 months expiring 17 July 2017
12 months expiring 20 June 2017
Not specified
2 months
2 months
2 months
2 months
2 months
2 months
*Plus 9.5% compulsory statutory superannuation.
Options held by Directors and Key Management Personnel
The number of options over ordinary shares in the Company held during the financial year by each director of Helix Resources Limited and other KMP
of the Company, including their personally related parties, are set out below.
Director/Key
Management
Personnel
Balance as at
1 July 2015
Number
Granted during
year as
remuneration
Number
Exercised
during year
Number
Options disposed /
cancelled /lapsed
during year
Number
P Rombola
J Macdonald
M Wilson
M Naylor
-
-
-
-
3,000,000
3,000,000
3,000,000
3,000,000
-
-
-
-
-
-
-
-
Balance as at
30 June 2016
Options vested
and exercisable
at the end of
year
Number
3,000,000
3,000,000
3,000,000
3,000,000
1,000,000
1,000,000
1,000,000
1,000,000
Shares held by Directors and Key Management Personnel
The number of ordinary shares in the Company held during the financial year by each director of Helix Resources Limited and other KMP of the
Company, including their personally related parties, are set out below.
Director/Key
Management
Personnel
P Rombola
J Macdonald
M Wilson
M Naylor
Balance as at
1 July 2015
8,902,127
8,502,500
3,132,934
680,334
No shares were issued as part of remuneration.
Purchased
Disposed
Other
Movements
Balance as at
30 June 2016
2,292,500
1,575,000
372,500
1,016,167
-
-
-
-
-
-
-
11,194,627
10,077,500
3,505,434
1,696,501
Related Party Transactions
The Company has adopted a policy to contract the services of certain Director Related entities to retain access to relevant expertise. The policy
provides that Helix will only enter into a transaction with a Director Related entity in the following circumstances:-
a. Any proposed transaction is at arm’s length and on normal commercial terms; and
b. Where it is believed that the Director Related entity is the best equipped to undertake the work after taking into account: experience,
expertise, knowledge of the Group; and value for money.
Use of Remuneration Consultants
During the year ended 30 June 2016 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 2015 at its 2015 Annual General
Meeting. 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
3
3
3
3
3
3
-
-
-
-
-
-
-
-
-
-
-
-
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 2016.
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
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 2016, 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 2016
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.
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
Independent Auditor’s Report
To the Members of Helix Resources Limited
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
2016, 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.
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
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.
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 2016 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 20 to 25 of the directors’
report for the year ended 30 June 2016. 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 2016, 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 2016
DIRECTORS’ DECLARATION
The Directors of the company declare that:
1.
The consolidated financial statements and notes, as set out on pages 31 to 54 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 2016 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 2016.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2016
Note
2
3
4
6
7
5
8
9
9
10
11
12
Current Assets
Cash and Cash Equivalents
Trade and Other Receivables
Other Financial Assets
Total Current Assets
Non-Current Assets
Property, Plant & Equipment
Exploration and Evaluation
Other Financial Assets
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and Other Payables
Provisions
Total Current Liabilities
Non- Current Liabilities
Provisions
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Share Capital
Reserves
Accumulated Losses
Total Equity
CONSOLIDATED
2016
$
2015
$
2,003,815
1,582,850
222,490
49,939
-
1,660,000
2,226,305
3,292,789
39,960
41,721
10,129,423
9,142,899
101,446
87,148
10,270,829
9,271,768
12,497,134
12,564,557
178,613
197,221
64,027
62,396
242,640
259,617
3,253
3,253
2,653
2,653
245,893
262,270
12,251,241
12,302,287
62,496,044
61,280,044
235,918
-
(50,480,721)
(48,977,757)
12,251,241
12,302,287
This statement should be read in conjunction with the Notes to the Financial Statements
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2016
Revenue
Other Income
Employment Costs
Audit and Accountancy
Corporate Marketing
Directors’ Fees
Depreciation
Foreign Exchange Loss/(Gain)
Impairment of Exploration and Evaluation Assets
Share Based Payments
Information Technology Costs
Premises Costs
Professional Services
Travel expenses
Revaluation of Shares in Listed Companies
Loss on Sale of Investment
Loss on Sale of Project
Finance Costs
Other Expenses
Loss before income tax
Income tax benefit
Loss for the year
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
2(b)
7
18
20
20
CONSOLIDATED
2016
$
2015
$
27,720
-
72,161
-
(154,289)
(174,996)
(60,820)
(20,458)
(90,000)
(8,769)
6,598
(89,884)
(5,641)
(90,000)
(11,138)
38,478
(9,485)
(1,383,568)
(235,918)
(14,769)
(61,942)
(1,087)
(14,217)
552
-
(19,124)
(104,689)
(28,047)
(17,608)
12,524
(932,183)
(1,287,743)
-
-
(1,578,000)
-
(101,007)
(101,414)
(1,670,074)
(4,768,689)
167,110
467,258
(1,502,964)
(4,301,431)
-
-
-
-
(1,502,964)
(4,301,431)
(0.54)
(0.54)
(1.64)
(1.64)
This statement should be read in conjunction with the Notes to the Financial Statements
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2016
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
Payments from purchase of property, plant & equipment
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, net of costs
Share issue costs
Net cash provided by financing activities
Net increase/(decrease) in cash and cash equivalents held
Exchange rate adjustment
Cash and cash equivalents at beginning
of financial year
Cash and cash equivalents at End
of Financial Year
Note
18
2(b)
2(a)
CONSOLIDATED
2016
$
2015
$
(524,771)
(645,495)
18,207
-
4,126
29,836
467,257
40,468
(502,438)
(107,934)
(1,035,085)
(1,118,116)
(7,008)
-
647,817
95,081
-
37,041
525,000
17,085
(299,195)
(538,990)
1,280,000
(64,000)
1,216,000
488,886
(9,000)
479,886
414,367
(167,038)
6,598
38,478
1,582,850
1,711,410
2,003,815
1,582,850
This statement should be read in conjunction with the Notes to the Financial Statements
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2016
CONSOLIDATED
2016
Total equity at the beginning of the financial
year
Issue of shares during the financial year
Share issue costs during the financial year
Options issue during financial year
Expiry of options during the financial year
Share Capital
Ordinary
Other Reserves
$
$
Accumulated
Losses
$
Total
$
61,280,044
1,280,000
(64,000)
-
-
-
-
-
235,918
-
(48,977,757)
12,302,287
-
-
-
-
1,280,000
(64,000)
235,918
-
Total transactions with owners
62,496,044
235,918
(48,977,757)
13,754,205
Loss for the year
Other comprehensive income for the year
Total comprehensive income
-
-
-
-
-
-
(1,502,964)
(1,502,964)
-
-
(1,502,964)
(1,502,964)
Total equity at the end of the financial year
62,496,044
235,918
(50,480,721)
12,251,241
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
This statement should be read in conjunction with the Notes to the Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
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 2016. 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.
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.
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.
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
$10.13M.
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.
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 1057 Application of Australian Accounting Standards – in May 2015, the AASB decided to revise Australian Accounting
Standards that incorporate IFRSs to minimise Australian-specific wording even further. The AASB noted that IFRSs do not contain
application paragraphs that identify the entities and financial reports to which the Standards (and Interpretations) apply. As a result,
the AASB decided to move the application paragraphs previously contained in each Australian Accounting Standard (or Interpretation),
unchanged, into a new Standard AASB 1057 Application of Australian Accounting Standards. The effective date is for annual reporting
periods beginning on or after 1 January 2016. When this Standard is first adopted for the year ending 30 June 2017, there will be no
impact on the financial statements.
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 2014-1 Amendments to Australian Accounting Standards (Part D: Consequential Amendments arising from AASB 14) makes
consequential amendments arising from the issuance of AASB 14. When these amendments become effective for the first time for the
year ending 30 June 2017, they will not have any impact on the entity.
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.
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 2015-1 Amendments to Australian Accounting Standards – Annual Improvements to Australian Accounting Standards 2012-
2014 Cycle - these amendments arise from the issuance of Annual Improvements to IFRSs 2012-2014 Cycle in September 2014 by
the IASB. Among other improvements, the amendments clarify that when an entity reclassifies an asset (or disposal group) directly
from being held for sale to being held for distribution (or vice-versa), the accounting guidance in paragraphs 27-29 of AASB 5 Non-
current Assets Held for Sale and Discontinued Operations does not apply. The amendments also state that when an entity determines
that the asset (or disposal group) is no longer available for immediate distribution or that the distribution is no longer highly probable, it
should cease held-for-distribution accounting and apply the guidance in paragraphs 27-29 of AASB 5. When these amendments are
first adopted for the year ending 30 June 2017, there will be no material impact on the financial statements.
AASB 2015-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101 - the Standard
makes amendments to AASB 101 Presentation of Financial Statements arising from the IASB’s Disclosure Initiative project. When
these amendments are first adopted for the year ending 30 June 2017, there will be no material impact on the financial statements.
AASB 2015-5 Amendments to Australian Accounting Standards – Investment Entities: Applying the Consolidation Exception - the
narrow-scope amendments to AASB 10 Consolidated Financial Statements, AASB 12 Disclosure of Interests in Other Entities and
AASB 128 Investments in Associates and Joint Ventures introduce clarifications to the requirements when accounting for investment
entities. The amendments also provide relief in particular circumstances, which will reduce the costs of applying the Standards. When
these amendments are first adopted for the year ending 30 June 2017, there will be no material impact on the financial statements.
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 and AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 (December
2014) introduce new requirements for the classification and measurement of financial assets and liabilities and includes a forward-
looking ‘’expected loss’’ impairment model and a substantially-changed approach to hedge accounting. 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 15 Revenue from Contracts with Customers, AASB 2014-5 and AASB 2015-8 Amendments to Australian Accounting Standards
replace 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 16 Leases replaces AASB 117 Leases and some lease-related Interpretations. It largely retains the existing lessor accounting
requirements in AASB 117. It provides new guidance on the application of the definition of lease and on sale and lease back
accounting and requires new and different disclosures about leases. It requires all leases to be accounted for ‘on-balance sheet’ by
lessees, other than short-term and low value asset leases. The entity is yet to undertake a detailed assessment of the impact of AASB
16. 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 2020.
AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture and AASB 2015-10 Amendments to Australian Accounting Standards – Effective Date of 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 2018. When these amendments are first adopted for the year ending 30 June 2017, there will be no
material impact on the financial statements.
AASB 2016-1 Amendments to Australian Accounting Standards – Recognition of Deferred Tax Assets for Unrealised Losses amends
AASB 112 Income Taxes to clarify how to account for deferred tax assets related to debt instruments measured at fair value,
particularly where changes in the market interest rate decrease the fair value of a debt instrument below cost. When these
amendments are first adopted for the year ending 30 June 2018, there will be no material impact on the financial statements.
AASB 2016-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 107 amends AASB 107
Statement of Cash Flows to require entities preparing financial statements in accordance with Tier 1 reporting requirements to provide
disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both
changes arising from cash flows and non-cash changes. When these amendments are first adopted for the year ending 30 June 2018,
there will be no material impact on the financial statements.
Clarifications to IFRS 15 Revenue from Contracts with Customers clarify the application of IFRS 15 in three (3) specific areas to
reduce the extent of diversity in practice that might otherwise result from differing views on how to implement the requirements of the
new standard. When these amendments are first adopted for the year ending 30 June 2019, 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.
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.
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
2016
$
2015
$
467
196
2,003,348
1,582,654
2,003,815
1,582,850
Cash on hand is non-interest bearing. Cash at bank bears floating interest rates between 0.00% and 2.90% (2015: between 0.00% and 2.35%).
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
Gain on revaluation of fair value through profit & loss
financial assets
Gain on foreign exchange transactions
Share based payments
Loss on sale of investment
Changes in Net Assets and Liabilities
(Increase)/Decrease in Assets
(Increase) / decrease in trade and other receivables
Increase/(Decrease) in Liabilities
Increase / (decrease) in trade and other payables
Increase / (decrease) in provisions
Net Cash provided by Operating Activities
3. TRADE AND OTHER RECEIVABLES
CURRENT RECEIVABLES
Prepayments
R&D tax rebate*
Other Receivables
Total Current Receivables
CONSOLIDATED
2016
$
(1,502,964)
2015
$
(4,301,431)
8,769
9,485
(552)
(6,598)
235,918
932,183
11,138
1,383,568
(12,524)
(38,478)
-
2,865,743
(162,302)
7,997
(18,608)
2,231
(43,548)
19,601
(502,438)
(107,934)
CONSOLIDATED
2016
$
2015
$
1,350
167,110
54,030
222,490
10,385
-
39,554
49,939
*The R&D tax rebate of $167,110 was received on 15 July 2016.
All amounts are short term. The net carrying value of trade receivables is considered a reasonable approximation of fair value. A total of $203 (2015:
nil) are past 30 days due. No current or past due receivables were impaired at the end of the financial year.
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/Loss on shares in listed corporations**
Disposals/Transfer to Non-Current**
Closing balance
CONSOLIDATED
2016
$
-
-
-
2015
$
80,000
1,580,000
1,660,000
CONSOLIDATED
2016
$
2015
$
1,580,000
624
-
1,567,500
(932,183)
(647,817)
12,500
(624)
-
1,580,000
*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.
** The WPG Resources and Tigers Realm shares were disposed during the year, resulting in a loss of $932,183.
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
2016
100%
100%
100%
100%
2015
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
2016
$
2015
$
100,246
1,200
101,446
86,500
648
87,148
6. PROPERTY, PLANT AND EQUIPMENT
2016
Gross Carrying Amount
Balance at 30 June 2015
Additions
Disposals
Balance at 30 June 2016
Accumulated Depreciation
Balance at 30 June 2015
Depreciation
Depreciation write off on disposal
Balance at 30 June 2016
Net Book Value
30 June 2016
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
CONSOLIDATED
Plant & Equipment
$
Motor Vehicles
$
119,533
7,008
-
126,541
92,850
5,385
-
98,235
94,856
-
-
94,856
79,818
3,384
-
83,202
Total
$
214,389
7,008
-
221,397
172,668
8,769
-
181,437
28,306
11,654
39,960
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
7. EXPLORATION AND EVALUATION EXPENDITURE (NON-CURRENT)
Balance at beginning of the financial year
Expenditure incurred during the year
Sale of Tunkillia area of interest
Impairment losses1
Balance at the end of the financial year
CONSOLIDATED
2016
$
9,142,899
996,009
-
(9,485)
10,129,423
2015
$
11,892,694
1,091,773
(2,458,000)
(1,383,568)
9,142,899
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.
1The impairment losses for the current financial year related to the following projects:
Yalleen ($4,632).
Oxley Exploration Pty Ltd ($4,853) – tenements were relinquished.
8. TRADE AND OTHER PAYABLES
Trade Payables
Total Trade Payables
CONSOLIDATED
2016
$
2015
$
178,613
178,613
197,221
197,221
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. $30,826 of the $178,613 in payables at 30 June 2016 relates to payments due to key management personnel.
9. PROVISIONS
Current
Employee Benefits
Total Current Provisions
Non-Current
Employee Benefits
Total Non-Current Provisions
CONSOLIDATED
2016
$
2015
$
64,027
64,027
3,253
3,253
62,396
62,396
2,653
2,653
10. SHARE CAPITAL
308,466,692 Fully Paid Ordinary Shares (2015: 268,466,692)
Total Share Capital
CONSOLIDATED
2016
$
2015
$
62,496,044
62,496,044
61,280,044
61,280,044
Fully Paid Ordinary Shares
Balance at beginning of financial year
Conversion HLXO Options @ $0.04
2016
2015
No
$
No
$
268,466,692
61,280,044
236,474,341
60,009,350
-
-
31,992,351
1,279,694
Share Issue: 37,360,000 Fully Paid Shares @ $0.032
37,360,000
Share Issue: 2,640,000 Fully Paid Shares @ $0.032
2,640,000
Share Issue Costs
-
1,195,520
84,480
(64,000)
-
-
-
(9,000)
Balance at end of financial year
Fully paid ordinary shares have no par value, carry one vote per share and carry the right to dividends. Options carry no voting rights until converted to
fully paid ordinary shares.
268,466,692
308,466,692
61,280,044
62,496,044
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. RESERVES
Listed Options
Balance at beginning of financial year
Options issued during the financial year
Exercise of Options to Fully Paid Shares
Expiry of Options
Balance at end of financial year
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
2016
2015
No.
$
No.
$
-
-
34,929,853
873,247
14,750,000
235,918
-
-
-
-
-
(31,992,351)
(2,937,502)
14,750,000
235,918
-
-
(799,808)
(73,439)
-
CONSOLIDATED
2016
$
2015
$
(48,977,757)
(44,749,765)
(1,502,964)
(4,301,431)
-
73,439
(50,480,721)
(48,977,757)
13. REVENUE
Loss before Income Tax includes the following items of revenue and expense:
Operating Activities
Interest Revenue
Other
Total Revenue
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
2016
$
2015
$
22,511
5,209
27,720
30,641
41,520
72,161
CONSOLIDATED
2016
$
2015
$
(8,769)
(9,485)
(48,369)
(28,635)
(11,138)
(1,383,568)
(72,735)
(25,820)
(1,502,964)
(4,301,431)
CONSOLIDATED
2016
$
2015
$
30,402
28,760
-
-
-
-
30,402
28,760
The lease for the office and the shed are for a 1 year term with an option to extend for a further 1 year. 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 $18,995 (2015: $31,414) and, subject to cash reserves and economic conditions, exploration
expenditure of $515,000 including the above rentals (2015: $465,000).
16. KEY MANAGEMENT PERSONNELS’ REMUNERATION
The totals of remuneration paid to key management personnel of the Group during the year are as follows:
Short term employee benefits
Salaries and fees
Annual leave entitlements
Total short term employee benefits
Long term employee benefits
Long service leave entitlements
Total long term employee benefits
Post-employment benefits
Superannuation
Total post-employment benefits
Share based payments
Options
Total share based payments
Total
CONSOLIDATED
2016
$
2015
$
362,648
14,050
376,698
4,999
4,999
17,352
17,352
182,488
182,488
363,066
14,082
377,148
2,134
2,134
17,391
17,391
-
-
581,537
396,673
17. RELATED PARTY AND DIRECTORS’ DISCLOSURES
(a) Other Transactions with key management personnel
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.
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 28% (2015 – 30%)
Prima facie tax payable / (benefit) at Chilean rate of 20% (2015 – 20%)
Adjusted for tax effect of the following:
- taxable / non-deductible items
- non-taxable / deductible items
-under / (over) provision in prior year
- adjustment for change of Australian tax rate
- 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
Adjustment for change of Australian tax rate
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
Chilean deferred tax asset losses
Australian deferred tax assets other
Net Unrecognised deferred tax assets
Recognised Deferred Tax Balances:
Deferred tax assets:
Deferred tax assets in relation to tax losses
Deferred tax assets
Deferred tax liabilities:
Deferred tax liabilities in relation to exploration and evaluation expenditure
Deferred tax liabilities
Net deferred tax
CONSOLIDATED
2016
$
2015
$
(1,670,074)
(4,768,688)
(1,670,074)
(4,768,688)
(475,971)
(1,229,514)
-
(150,819)
67,890
(4,161)
105,117
589,628
(13,238)
1,075
(38,114)
311,505
-
(5,306)
(269,265)
1,111,173
(167,110)
(467,257)
(167,110)
(467,257)
-
-
(167,110)
(467,257)
(267,641)
809,935
59,983
-
142,972
(792,072)
(76,398)
(129,314)
141,084
111,451
(167,110)
(467,257)
11,483,282
11,765,920
211,803
26,766
198,565
26,630
11,721,851
11,991,115
2,656,456
2,372,265
2,656,456
2,372,265
(2,656,456)
(2,372,265)
(2,656,456)
(2,372,265)
-
-
The income tax rate for small business entities was reduced from 30% to 28.5% effective from 1 July 2015. Helix Resources Limited currently satisfies
the conditions to be a small business entity.
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 New
South Wales, 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
2016
2015
2016
2015
2016
2015
Current Assets
Cash
Non-Current Assets
1,989,576
1,578,678
14,239
4,172
2,003,815
1,582,850
Mineral Assets
4,788,771
Impairment expense
(9,485)
Carrying Amount
4,779,286
4,762,978
(713,261)
4,049,717
5,350,137
-
5,350,137
5,763,489
(670,307)
5,093,182
10,138,908
10,526,467
(9,485)
(1,383,568)
10,129,423
9,142,899
Current Liabilities
Trade payables
169,648
164,194
8,965
33,027
178,613
197,221
Revenue
Depreciation
27,720
8,769
72,161
11,138
Loss before tax
(1,670,074)
(4,098,382)
-
-
-
-
-
27,720
8,769
72,161
11,138
(670,307)
(1,670,074)
(4,768,689)
20. EARNINGS PER SHARE
Basic loss per share
Diluted loss per share
COMPANY
2016
Cents Per share
(0.54)
(0.54)
2015
Cents Per share
(1.64)
(1.64)
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
$
2016
$
Loss after tax (a)
(1,502,964)
(4,301,431)
Weighted average number of ordinary shares (b)
277,755,362
263,005,373
(a) Earnings used in the calculation of basic earnings per share is net loss after tax of $1,502,964 (2015: $4,301,431).
2016
No.
2015
No.
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)
2016
$
(1,502,964)
2015
$
(4,301,431)
12 months to 30 June 2016
12 months to 30 June 2015
No.
No.
Weighted average number of ordinary shares and potential
ordinary shares (b)
(a) Earnings used in the calculation of diluted loss per share is net loss after tax of $1,502,964 (2015: loss of $4,301,431).
(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:
263,005,373
286,642,658
2016
No.
2015
No.
Listed Options
Since the Group made a loss of $1,502,964 during the year, the potential ordinary shares were not considered to be dilutive.
-
-
INTEREST IN JOINT OPERATIONS
21.
The parent entity has entered into the following unincorporated joint operations:
Joint Operations Project
Yalleen
Restdown JV
Percentage Interest
30% (2015: 30%) (API Management Pty Ltd 70% Iron Ore rights)
70% (2015: 70%) (Glencore)
Principal Exploration Activities
Iron Ore
Gold
Canbelego
70% (2015: 70%) (Aeris 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)
-
1,781,370
-
1,781,370
1,103,308
-
1,103,308
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.
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).
2016
Level 1
Level 2
Level 3
Total
Financial Assets
Held for trading assets
1,200
1,200
2015
Level 1
Level 2
Financial Assets
Held for trading assets
1,580,648
1,580,648
$
1,200
1,200
Total
$
1,580,648
1,580,648
-
-
-
-
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 $1,100,246 (2015: $166,500) on deposit in interest bearing accounts earning a weighted average interest rate of 4.12%
(2015: 2.64%).
Interest Rate Risk Sensitivity Analysis
At 30 June 2016, 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 (2015: decrease in loss) by $6,894 (2015: $30,325) and an increase in equity by $6,894 (2015: $30,325). 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 (2015: increase in
profit) by $6,894 (2015: $30,325) and a decrease in equity by $6,894 (2015: $30,325).
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
$
2016
Financial Assets
Current Receivables
Non-current Receivables
Held for trading assets
Cash and cash equivalent assets
Security deposits and deposits at financial
institutions
0.92%
4.12%
Financial Liabilities
Trade Payables (all payable within 30
days)
-
-
-
-
-
-
-
-
-
-
-
1,879,098
-
1,879,098
-
-
-
-
87,229
87,229
222,490
222,490
-
1,200
124,717
13,017
-
1,200
2,003,815
100,246
361,424
2,327,751
-
-
-
-
178,612
178,612
178,612
178,612
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
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.
The Group’s exposures to foreign currency risk at the end of the reporting period, expressed in Australian dollars, were as follows:
2016
USD
CLP
Cash and cash equivalents
Trade and other payables
110,011
-
110,011
14,239
8,964
23,203
2015
USD
CLP
Cash and cash equivalents
Trade and other payables
144,818
-
144,818
4,172
33,027
37,199
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
2016
$
No
3
64,027
3,253
67,280
2015
$
62,396
2,653
65,049
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
$64,229 (2015: $143,500) for tenement holdings.
25. REMUNERATION OF AUDITORS
a) Auditor of the Parent Entity
Auditing the financial report
The auditor of Helix Resources Limited for the 2016 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
2016
$
2015
$
26,512
26,512
25,430
25,430
2016
$
2015
$
2,233,043
10,283,868
12,516,911
262,417
3,253
265,670
3,293,437
9,271,120
12,564,557
259,617
2,653
262,270
62,496,044
61,280,044
(50,480,721)
(48,977,757)
235,918
-
12,251,241
12,302,287
(1,502,964)
(1,502,964)
(4,301,431)
(4,301,431)
27. SUBSEQUENT EVENTS
Subsequent to 30 June 2016, the Company received $167,110 from its 2015 R&D claim.
Pasquale Rombola was appointed Executive Chairman on 18 July 2016.
No other matter or circumstance has arisen since 30 June 2016 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 2016 was authorised for issue in accordance with a resolution of the
directors on the 22nd September 2016.
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 Rombola Family Pty Ltd
5 Blamnco Trading Pty Ltd
6 Shipsters Investments Pty Ltd
7 Wythenshawe Pty Ltd
8 Creekwood Nominees Pty Ltd
9 HSBC Custody Nominees (Aust) Ltd
10 Dog Meat Pty Ltd
11 BTX Pty Ltd
12 Zero Nominees Pty Ltd
14 Mr William Henry Hernstadt
13
Mr Andrew McKenzie and Mrs
Catherine McKenzie
15 Aotea Minerals Ltd
16 Worldpower Pty Ltd
17 Technica Pty Ltd
18 Mr Michael Hood Wilson
19 BNP Paribas Noms Pty Ltd
20 Penoir Pty Ltd
Top 20 Total
AS AT 21st SEPTEMBER 2016
NUMBER OF SHARES HELD
Number of Shareholders
Number of Shares
92
162
269
721
319
1,563
270
31,726
507,959
2,341,818
27,925,592
277,659,597
308,466,692
631,169
Number of Shares
% of Issued Capital
24,117,759
21,172,514
13,063,829
11,194,627
10,000,000
8,550,000
7,499,917
7,250,000
6,006,450
6,000,000
4,681,293
3,980,010
3,900,000
3,781,250
3,630,000
3,627,042
3,513,332
3,106,667
3,000,000
3,000,000
7.82
6.86
4.24
3.63
3.24
2.77
2.43
2.35
1.95
1.95
1.52
1.29
1.26
1.23
1.18
1.18
1.14
1.01
0.97
0.97
151,074,690
48.99
VOTING RIGHTS
One vote for each ordinary share held in accordance with the Company's Constitution.
SUBSTANTIAL SHAREHOLDERS
Shareholder
Gee Vee Pty Ltd
Yandal Investments Pty Ltd
DIRECTORS' INTEREST IN SHARE CAPITAL
Number of Shares
% of Issued Capital
24,117,759
21,172,514
7.82
6.86
Director
M H Wilson
P R Rombola
J Macdonald
Total
Fully Paid Ordinary Shares
Listed Options
3,505,434
11,194,627
10,077,500
24,777,561
-
-
-
-
TENEMENT SCHEDULE
Tenement
Name
Mineral
Ownership
NSW COPPER & GOLD PROJECTS (INCL. CANBELEGO AND RESTDOWN JV's)
EL6105
EL6140
EL6336
EL6501
EL6739
EL7438
EL7439
EL7482
EL8433
Canbelego
Restdown
Collerina
South Restdown
Muriel Tank
Quanda
Fiveways
Little Boppy
Boundary
Copper/Gold
Gold/Copper
Copper/Gold
Copper/Gold
Gold/Copper
Copper/Gold
Copper/Gold
Copper/Gold
Copper/Gold
Helix 70%, Aeris Resources 30%
Helix 70%, Glencore 30%
HLX 100% precious and base metals
Helix 70%, Glencore 30%
Helix 70%, Glencore 30%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
YALLEEN IRON ORE PROJECT
E47/1169-I
E47/1170-I
E47/1171-I
Yalleen
Yalleen
Yalleen
CHILE PROJECTS
EXPLORATION CONCESSIONS
Joshua 1-39
Joshua
Bogarin 1-51
Huallillinga
Hado 1-52
Hado
Embrujado 1-68
Embrujado
EXPLOITATION CONCESSIONS
Blanco Y Negro 1/20
Blanco Y Negro
La Cana 11/20
Blanco Y Negro
Joshua A1/150
Joshua
Abbreviations and Definitions used in Schedule:
EL or E
Exploration Licence
Iron ore/Base metals
HLX 100%, API Management Pty Ltd 70% iron ore rights
Iron ore/Base metals
HLX 100%, API Management Pty Ltd 70% iron ore rights
Iron ore/Base metals
HLX 100%, API Management Pty Ltd 70% iron ore rights
Copper/Gold
Copper/Gold
Copper/Gold
Copper/Gold
Copper/Gold
Copper/Gold
Copper/Gold
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
CORPORATE DIRECTORY
Directors
Pasquale Rombola
Michael Wilson
Jason Macdonald
Executive Chairman
Managing Director
Non-executive Director
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