Annual Report
30 June 2017
ACN 009 138 738
Table of Contents
CHAIRMAN’S REVIEW ....................................................................................................... 2
REVIEW OF OPERATIONS .................................................................................................. 3
CORPORATE GOVERNANCE.............................................................................................. 16
DIRECTORS’ REPORT ..................................................................................................... 17
AUDITOR’S INDEPENDENCE DECLARATION ........................................................................... 29
INDEPENDENT AUDIT REPORT .......................................................................................... 30
DIRECTORS’ DECLARATION ............................................................................................. 34
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ............................................................ 35
CONSOLIDATED STATEMENT OF PROFIT OR LOSS .................................................................. 36
CONSOLIDATED STATEMENT OF CASH FLOWS ...................................................................... 37
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ............................................................. 38
NOTES TO THE FINANCIAL STATEMENTS ............................................................................. 39
ADDITIONAL ASX INFORMATION ....................................................................................... 71
CORPORATE DIRECTORY ................................................................................................ 75
CHAIRMAN’S REVIEW
Dear Shareholder
I am pleased to present Helix’s 2017 Annual Report to you.
Having only joined the Company in March this year, I feel encouraged by the exploration potential and opportunities
presented by Helix’s exploration assets. Helix is fortunate to hold two high quality Australian exploration projects, the
Collerina Copper Project and the Cobar Gold Project; both of which are located in central New South Wales.
The Collerina Copper Project lies within the central zone of a prospective volcanogenic massive sulphide (VMS) belt. The
Company holds approximately 80km of this prospective VMS belt and to date has only begun to scratch the surface with
regard to assessing and unlocking the holistic exploration potential of this large Project. VMS belts usually contain multiple
deposits and the mineralised endowment potential of Helix’s portion of this VMS belt remains generally untested by
exploration thereby providing Helix with a valuable and significant strategic exploration opportunity.
In an endeavour to generate investor interest and establish initial project value, Helix has focused its exploration efforts to
date upon the most advanced opportunity within the Project; the Collerina Copper Deposit.
You may recall that Helix discovered this copper deposit in 2015 and enjoyed exploration success through to mid-2016
until the local geological complexity associated with the deposit required the Company to re-consider its original geological
interpretation and exploration approach. Over the past six months, both desktop and in-ground exploration activities have
led to a geological re-interpretation of the immediate area incorporating the Collerina Copper Deposit. Excitingly, this new
geological interpretation is planned to receive an initial test by both drilling and electromagnetic surveys in the primary
sulphide zones before the end of this calendar year.
Helix’s other key exploration asset, the Cobar Gold Project, emerged as a potential quality gold exploration project following
a successful reconnaissance drilling campaign during the second half of calendar 2016.
In 2017, following an independent geological and structural review of both the Project area and the wider region, the Cobar
Gold Project has been interpreted to sit in a similar geological setting to the nearby 4 million ounce endowed Peak gold
trend. Independent acknowledgement of this exploration potential has presented Helix with a valuable and prospective
gold exploration opportunity that to date, due to limited financial means, has only been subject to preliminary
reconnaissance exploration assessment. Similar to the Collerina Copper Project, work remains to unlock its inherent
potential.
Being a junior explorer with limited means requires patience, along with fiscal and exploration discipline. During the
financial year, the Company completed an over-subscribed $2.2 million private share placement, which enabled the steady
advancement of the above mentioned Australian exploration assets. However, activities on Helix’s Chilean exploration
projects were deferred.
Along with myself joining the Helix board during the financial year, the Company has also seen a number of other board
and management changes. Paddy Rombola served the Company for over 3 years and retired as a director in November
last year. On behalf of the board and shareholders, I thank him sincerely for his contribution to Helix. Mike Naylor stepped
down from his management role as Company Secretary and CFO, due to other increasing executive commitments, and
agreed to join the board as a non-executive director.
On behalf of the board, I would like to thank the Company’s team of employees and consultants, led by Mick Wilson, for
their efforts and contributions during the year and we look forward to their continued hard work and enthusiasm throughout
this financial year.
Finally, I would also like to acknowledge the continued support of all our shareholders. Your Company looks forward to
making further progress towards generating value from our exploration asset base and successfully growing our business.
Yours faithfully
Gary Lethridge
Chairman
Helix Resources Limited Annual Report 2017
2
REVIEW OF OPERATIONS
AUSTRALIA - COPPER AND GOLD PROJECTS
Background
Helix holds a quality portfolio of copper and gold prospective tenements in the Cobar mining district in NSW.
The district host long-lived operating mines and excellent access to infrastructure. Helix is continuing to carry
out targeted geochemistry and geophysics to isolate precious and base metal mineralisation in this prospective
region. Helix’s work to date has resulted in the discovery of the exciting Collerina Copper Deposit as well as
advancing the emerging gold camp at its Cobar Gold Project.
Figure 1: Location of Helix’s Collerina Copper Project and Cobar Gold Project in the Cobar District NSW
Helix Resources Limited Annual Report 2017
3
COLLERINA PROJECT – (Helix 100% of precious and base metals discoveries)
The Collerina Copper Project lies within the central zone of a prospective 150km volcanogenic massive
sulphide (VMS) belt. The Company holds approximately 80km of this prospective VMS belt. VMS belts
typically contain multiple deposits and the mineralised endowment potential of Helix’s portion of this VMS belt
remains generally untested by exploration. The Collerina Copper Deposit is a significant green field discovery,
a copper system showing all the hallmarks of the style and size typically found in the region.
Collerina Copper Deposit
Drilling programs were undertaken throughout 2015 and 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 base metal trend. Broad-spaced drilling
completed so far has identified base metal mineralisation over an open-ended strike of 700m. The system
remains open along strike and down dip/plunge.
Drilling in late 2016 extended the known copper mineralisation down the plunge plane to approximately 350m
from surface, however the copper mineralisation style transitioned from massive sulphide type mineralisation
to stringer style mineralisation in the plunge plane. Before the Company committed to deeper drilling, it sought
advice from an independent consultant to review the geological and structural model, producing a revised
interpretation for the deposit area based on all the exploratory information gathered. The report highlighted
some important structural controls and possible geological complexity that was consistent with the drilling
intersections to date. Most importantly the review provided some vectors and opportunities to test with further
drilling to expand the size and scale of the overall system.
During the first half of 2017, Helix completed a slim-line RC program at shallow depths to assist in defining the
copper mineralisation continuity in the oxide portion of the system and gain a better understanding of the
geometry of the system by mapping out a footwall marker horizon along the strike of the Collerina Deposit
area. This drilling confirmed the geological model at shallow depths, allowing the Company to be more
confident when planning and targeting the system deeper into the zones where further massive sulphide style
mineralisation is expected to reside.
A deep RC/ diamond drilling program and additional DHEM surveys are planned for completion in the 2017
field season, targeting the dip extent of the main central mineralised zone up to a depth of 350m from surface.
Table 1: Significant results (>2% Cu) from drilling in the Central zone massive sulphides of the Collerina Copper
Deposit (shallowest to deepest).
Helix Resources Limited Annual Report 2017
4
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: Plan of drilling in central zone showing significant results and interpreted surface expression of the
footwall marker horizon.
Helix Resources Limited Annual Report 2017
5
Figure 4: Plan showing primary mineralisation target zones on late-time EM image. Orange zones: RC/DD drilling
planned for 2017 field season
Regional Prospectivity
Deposits in the district generally form in clusters and there is high potential for further discoveries along the
copper prospective trend beyond the Collerina Deposit, within the 80km of strike of Helix’s ground..
Regional exploration is ongoing (working around seasonal farming activities) with several copper prospects
identified for follow-up exploration. In this field season, drilling at the Max’s Folly Prospect was not fully
completed after the slim-line RC holes intersected historic workings and lost sample return. Plans to test
Tindall’s and Yathella copper prospects were delayed due to cropping.
Geophysical surveys completed in the 2017 financial year included a detailed airborne VTEM survey over the
entire copper trend within the Collerina tenement and additional moving loop EM surveys, which identifed
completely untested target zones south of the central Collerina copper zone at the Collerina Deposit.
History
The Collerina Deposit area hosts historic copper workings (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. There
had been limited exploration activity on the Prospect until Helix’s involvement in late 2014.
In May 2016, Helix Resources was awarded the inaugural NSW Mineral Council’s Explorer of the Year award
for the Collerina Copper Project discovery.
Helix Resources Limited Annual Report 2017
6
Figure 5: Regional targets on the Collerina Trend, historic copper workings and VTEM anomalies identified to
date.
COBAR GOLD PROJECT
EL 6140, EL6501 & EL6739 (Helix Resources 90%; Glencore 10% converting to a Royalty)
EL8433, EL8633 & EL8608 (Helix Resources 100%)
The Cobar Gold Project covers a contiguous tenement package area of ~500km² located 40km to 70 km east-
southeast of Cobar in central western NSW. The area was mined in the late 1800’s and early 1900’s prior to
being abandoned during the Centenary drought due to a lack of water to process the gold mineralisation at the
Battery Tank head stamp battery. Helix acquired the ground in its own right and, further tenure via an earn-in
joint venture with a subsidiary of nearby copper producer, Glencore. The known Prospects comprising Good
Friday and Sunrise were drilled, with the Boundary Prospect discovery being a greenfield find by Helix using
soil auger sampling.
During the year Helix undertook a small diamond drilling program at the Good Friday and Boundary Prospects
and reconnaissance aircore drilling in the Battery Tank area. Results were highly encouraging with a new gold
zone identified at Battery Tank (HRAC018 returning 43m @ 2.3g/t Au from surface to the end of hole6) and
fine visible gold able to be panned from the bottom of hole sample bags. The diamond drilling at Boundary and
Good Friday returned broad zones of gold mineralisation (45m @ 3.4g/t Au and 39m @ 2.4g/t Au
respectively6). An independent geological and structural review was subsequently undertaken to provide some
context to these encouraging results.
Regional and Prospect Scale Structural Review
Following the drilling programs completed in late 2016, Helix carried out a regional and prospect scale
structural review at the Cobar Gold Project with the assistance of an experienced geological and structural
consultant.
Preliminary findings from this work, combined with a review of the detailed geology and structural information
logged from the diamond programs, indicated the potential for a large gold system to be present at the Cobar
Gold Project.
Helix Resources Limited Annual Report 2017
7
The regional structural review illustrated similarities between the mineralising controls in the nearby Peak gold
trend, which hosts around 4Moz of gold over an 8 kilometre strike length and the gold mineralising structural
controls present within the Cobar Gold Project (refer Figure 6).
Figure 6: The Cobar Gold Project has a similar geological setting to the Peak Gold Trend, and is located within a
productive mining district with several nearby operations.
The Peak gold trend is located along the limb of the Narri Anticline, which hosts significant known gold deposits.
Prospects identified and drill tested within Helix’s Cobar Gold Project have a similar geological setting adjacent
to a similar anticlinorial feature (the Restdown Anticline).
This observation and geological interpretation, in association with existing gold mineralisation in similar
structural positions to gold deposits within the Peak gold trend, supports the view that the Company’s Cobar
Gold Project may be host to a large gold system.
A key finding from the structural review is the presence of a series of north-east trending quartz vein arrays
and breccia zones within the broad north-northwest prospects (Battery Tank, Good Friday, Sunrise and
Boundary).
These zones appear to control high-grade gold in broader north-west mineralised corridors throughout the
goldfield.
Helix Resources Limited Annual Report 2017
8
Figure 7: Location of known Prospects across the Cobar Gold Project.
Follow-up RC Drilling
A drilling program consisting of a total of 30 holes for 3,600m using two RC drill rigs across six prospects was
completed after the financial year, results of which were reported to the ASX on 23 August 2017.
New gold intercepts identified during this recent drilling have expanded the known prospects both along strike
and at depth. The drilling has also identified further gold structures and highlighted the potential for additional
gold systems at regional prospects.
Highlights from drilling at the prospects include:
Battery Tank Prospect: 23m @ 2.0g/t Au from 26m, incl. 5m @ 3.1g/t Au6 (continues to demonstrate
the broad gold-bearing systems at this emerging prospect).
Good Friday Prospect: 4m @ 5.0g/t Au within 38m @ 0.8g/t Au from surface & 15m @ 1.0g/t Au from
12m6. (confirms presence of northeast trending structures at Good Friday).
Sunrise Prospect: 2m @ 5.6g/t Au & 9m @ 1.9/t Au within 32m @ 1.0g/t Au from 8m; 7m @ 2.5g/t Au
from 95m6 (fresh). (confirmation of perpendicular structures and depth extensions into fresh rock).
Boundary Prospect: 5m @ 2.6g/t Au within 20m @ 0.9g/t Au from 7m; 11m @ 1.1g/t Au from 108m6
(mineralised to EOH).
Reward Prospect: 4m @ 2.5g/t Au within 20m @ 1.1g/t Au from 16m6 (a gold-bearing structure at a
new prospect).
Helix Resources Limited Annual Report 2017
9
MUNDARLO PROJECT JV – NSW
EL 8096 – (Helix Resources earning 60%)
Helix entered into a Joint Venture agreement to farm into the Mundarlo Copper Project, which is located 20km
south-west of Gundagai, NSW. Under the terms of the farm-in agreement Helix needs to pass a first
expenditure commitment of $100,000 including a minimum two hole drilling program to be completed by
February 2018 in order to earn 60% equity in the project. Helix will then have the sole right to earn 80% of the
Project by spending a further $150,000 on or before February 2019.
About the Mundarlo Project
The Mundarlo Project is located in a prospective mineral belt, bounding the Gilmore Structure, which hosts or
controls significant gold and copper deposits along its entire strike. The local geology is located in a sub-basin,
dominated by mixed volcanics, sediments and multiple localised cherty units.
The area was subject to soil sampling by previous explorers in the 1980’s. The surveys identifying a large
copper in soil anomaly are coincident with the trend of the cherty/gossanous horizons. Previous surface
geophysics by the vendors has confirmed an EM response associated with the copper-in-soil anomalism and
the cherty horizons. There has been no drilling to date.
Helix is targeting VMS style mineralisation and is executing a program to assess the project during the 2017
field season.
Figure 8: The Mundarlo Project located in a regional northwest trend adjacent to the Gilmore Fault Zone, NSW.
Helix commenced an auger soil geochemistry program and a Moving Loop EM survey in 2017. The programs
are ongoing and the information and results of this work are currently being assessed.
Helix Resources Limited Annual Report 2017
10
CANBELEGO PROJECT JV – NSW
EL 6105 – (Helix Resources 70%, Aeris Resources 30% Contributing)
The Canbelego Project is located 45km south east of Cobar. Helix has defined an Initial inferred resource
(JORC 2004) 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 believed to be a Cobar-style deposit, which remains open along strike and down
dip. Historic mining produced 5% copper ore from workings off a 100m shaft. There remains untested down-
hole EM conductors below significant drill results including: CBLRC018: 2m @ 6.8% Cu and CD2: 5m @ 2.4%
Cu1.
The Canbelego Project also has significant potential for additional copper mineralisation from surface. The
Canbelego Deposit remains open in several directions:
Canbelego West – a 900m by up to 350m wide 80ppm Cu soil anomaly with limited drilling,
Canbelego South – a 600m long copper in soil anomaly associated with historic pits and shafts, and
Caballero – 1,000m x 250m 80ppm Cu soil anomaly, limited drilling including 60m @ 0.4% Cu from
24m, incl. 7m @ 1.3% Cu1.
Figure 9: Canbelego soil sampling on detailed magnetics, location of the Canbelego deposit and the three regional
copper prospects.
The JV partners are currently assessing and discussing plans to advance the asset, with additional soil
geochemical surveys and drilling programs under consideration.
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.
Helix Resources Limited Annual Report 2017
11
Based on an in-house project generation model, Helix historically identified and concentrated its efforts on an
area of interest with prospective geology, good infrastructure in an emerging mining district of Region IV, Chile.
With the discovery of the Collerina copper deposit in Australia, the Chilean Assets were placed on a care and
maintenance budget in the 2015-16 financial year. With an improving copper market over 2016-17, the assets
continue to receive unsolicited interest from third parties and Helix remains open to securing third-party funding
to advance these assets.
Key Assets
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. A 1.5km x 3km
porphyry target, supported by geophysics and geochemistry with limited drilling completed to date.
Blanco Y Negro: High-grade copper/gold deposit with an updated indicated and inferred resource on a
granted mining lease, available for divestment.
Huallillinga Project: Second greenfield porphyry target identified, early studies confirm mineralisation
and alteration over the 19km² Samuel Prospect.
Figure 10: Helix’s project locations – Region IV, Chile
Joshua Copper-Gold Project [100%]
The Joshua Project area was chosen for its prospectivity, its low altitude (less than 1,700m) 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 made 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) in early 2016.
Helix Resources Limited Annual Report 2017
12
Blanco y Negro Copper/Gold Project [100%]
Blanco Y Negro (ByN) is a 100% owned mining lease located 15km south-east of Ovalle in Region IV, Chile.
The project sits within a major regional mineralised shear system (Los Mantos Fault) with multiple mineral
occurrences evident throughout the surrounding district. Helix has mapped the main north-west trending
mineralised shear zone over a strike of 1.3km (offset by cross cutting faults) within the mining lease.
In August 2015, Helix 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.
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 Au7. The deposit remains open in several directions.
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, Chile. 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.
YALLEEN IRON ORE PROJECT – WA
Helix Resources 30% (Diluting) JV interest and tenement owner, API (AMCI/ Boasteel) 70% iron ore
rights E 47/1169-1171
The Yalleen Project has a JORC 2004 compliant resource of 84Mt @ 57% Fe (refer to resources table) in Indicated
and Inferred status on 475km² of tenements in the West Pilbara. The tenements are owned by Helix Resources
and are subject to the terms API JV for 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 major Chinese steel company, BaoSteel.
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 shares in WPG upon the
commencement of mine construction; and
a 1% NSR royalty:
On 30% of attributable production from the existing resource; and
On 100% of production from any additional resources/reserves defined within the Tunkillia Project
area.
Helix retains certain rights to bring forward 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.
Helix Resources Limited Annual Report 2017
13
Resources
Commodity Category
Project
Interest
Resource
Copper
(+Gold)
Indicated
and
Inferred
Blanco Y
Negro, Chile
100% Helix
Indicated: 0.8Mt @ 1.5% Cu, 0.5 g/t Au for
12,000t Cu & 12,000oz Au
Inferred: 0.7Mt @ 1.3% Cu, 0.6g/t Au for 8,000t
Cu & 12,000oz Au
Total Resource: 1.5Mt @ 1.4% Cu, 0.5g/t Au for
20,000t Cu & 24,000oz Au (at 0.5% Cut-off) –
2012 JORC¹
Copper
Inferred
Canbelego
JV, NSW
70%(Aeris 30%)
1.5Mt @ 1.2% Cu for 18,000t Contained Cu (at
0.3% Cu Cut-off)³
Gold
Inferred
Cobar Gold
Iron Ore
Indicated
Inferred
Yalleen JV,
WA
90%
(Glencore 10%
Converting to
Royalty)
30%
(Diluting)
2.6Mt @ 1.2g/t Au for 100,000oz
(0.3 g/t Au cut off)³
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.
Helix Resources Limited Annual Report 2017
14
Notes
1.
2.
3.
4.
5.
6.
7.
8.
For full details of exploration results refer to ASX announcements dated. 26 September 2013, 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 dated 24 January 2017 & 23 August 2017. 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.
Helix Resources Limited Annual Report 2017
15
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 2017 was approved by the
Board on 29th September 2017 and is available on the Company’s website at www.helix.net.au.
The directors of Helix Resources Limited believe that effective corporate governance improves company
performance, enhances corporate social responsibility and benefits all stakeholders. Changes and
improvements are made in a substance over form manner, which appropriately reflect the changing
circumstances of the company as it grows and evolves. Accordingly, the Board has established a number of
practices and policies to ensure that these intentions are met and that all shareholders are fully informed about
the affairs of the Company.
The Company has a corporate governance section on the website at www.helix.net.au. The section includes
details on the company’s governance arrangements and copies of relevant policies and charters.
Helix Resources Limited Annual Report 2017
16
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 2017.
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:
Gary Lethridge BCom, CA, FCIS, FGIA, MAICD
Non-Executive Chairman – Appointed 9 March 2017
Mr Lethridge has more than 30 years of corporate expertise in resource and finance related roles. He is a
Chartered Accountant and Chartered Secretary with significant experience in corporate strategy, capital and
debt markets, transaction origination and execution, mining operations, project development and exploration.
From 2009 to 2016 he was Managing Director of Talisman Mining Limited and was previously Chief Financial
Officer (CFO) with Jubilee Mines NL, a very successful nickel miner acquired by Xstrata in 2007 for $3.1 billion.
Michael Wilson B Ec, B Sc (Hons), MAusIMM
Managing Director
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, BCom
Non-Executive Director
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.
Michael Naylor BCom, CA, AGIA
Non-Executive Director – Appointed 28 November 2016
Mr Naylor 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.
Pasquale Rombola B Ec
Non-Executive Chairman – to 17 July 2016
Executive Chairman – 18 July 2016 resigned 28 November 2016
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
Michael Naylor
Tawana Resources NL, Cobalt One Limited
Gary Lethridge
Reward Minerals Limited, Talisman Mining Limited
Helix Resources Limited Annual Report 2017
17
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
200,000
3,504,434
10,077,500
1,996,501
3,000,000
3,000,000
3,000,000
3,000,000
G Lethridge
M Wilson
J Macdonald
M Naylor
COMPANY SECRETARY
Dale Hanna BCom, CA
Mr Hanna is a Chartered Accountant with over 15 years in accounting finance and management roles. He
commenced his career with Ernst & Young, and has held senior positions with Dominion Mining Ltd and Lemur
Resources Ltd.
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 $6,312,894
(2016: loss of $1,502,964).
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 $6,312,894. In the current year there was an impairment of $5,652,055 (June
2016: $9,485) of carried forward exploration costs.
Helix Resources Limited Annual Report 2017
18
Major corporate events include:
In November 2016 Mr Pasquale Rombola resigned from his position as Executive Chairman and Mr
Michael Naylor was appointed the Board.
In February 2017, the Company completed a placement raising $2.21m at $0.048 per share before
costs. Funds are being used for exploration on the NSW projects and for working capital purposes.
In March 2017 Mr Gary Lethridge was appointed to the position of Non-Executive Chairman.
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
No other matter or circumstance has arisen since 30 June 2017 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 16,650,000 unissued ordinary shares under option. 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 2017. 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 G Lethridge
Non-Executive Chairman (appointed 9 March 2017)
Mr J Macdonald
Non-Executive Director
Mr M Naylor
Non-Executive Director (appointed 28 November 2016)
Helix Resources Limited Annual Report 2017
19
Executive Director
Mr M Wilson
Managing Director
Mr P Rombola
Executive Chairman (resigned 28 November 2016)
Key Management Personnel
Mr D Hanna
2016)
Mr M Naylor
Chief Financial Officer and Company Secretary (appointed 28 November
Chief Financial Officer and Company Secretary (resigned 28 November 2016)
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 determined that 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, complexity 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
Helix Resources Limited Annual Report 2017
20
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
3,000,000 options as LTI’s during the year (2016: 14,250,000).
Value of Options Awarded, Exercised and Lapsed During the Year
30 June 2017
Name
Value of
Options
Granted
During the
Year
$
Grant
Date
Fair Value
Exercise
Expiry
Per Option
Price
Date
Non-Executive Directors
Mr G Lethridge
$81,154 8 May 2017 $0.0271
$0.0673 2 May 2020
Mr P Rombola
Mr J Macdonald
Mr M Naylor
Executive Directors
Mr M Wilson
Executives
Mr D Hanna
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Helix Resources Limited Annual Report 2017
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
Number of
Options Held
at Date of
Resignation
-
$22,811
-
-
-
-
-
-
-
-
-
-
-
2,000,000
-
-
-
-
21
30 June 2016
Name
Value of
Options
Granted
During the
Year
$
Non-Executive Directors
Mr P Rombola
$68,400
Mr J Macdonald $68,400
Executive Directors
Mr M Wilson
$68,400
Executives
Mr M Naylor
$68,400
Grant
Date
Fair Value
Exercise
Expiry
Per Option
Price
Date
16 Nov
2015
16 Nov
2015
16 Nov
2015
16 Nov
2015
$0.023
$0.0675
$0.023
$0.0675
$0.023
$0.0675
$0.023
$0.0675
15 Nov
2018
15 Nov
2018
15 Nov
2018
15 Nov
2018
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
Number of
Options Held
at Date of
Resignation
-
-
-
-
-
-
-
-
-
-
-
-
Grant of Long Term Incentives
For the year ended 30 June 2017, the following options were issued to KMP:
Number of Options over
Ordinary Shares
G Lethridge
3,000,000
For the year ended 30 June 2016, the following options were issued to KMP:
Number of Options over
Ordinary Shares
3,000,000
3,000,000
3,000,000
3,000,000
P Rombola
M Wilson
J Macdonald
M Naylor
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.
Helix Resources Limited Annual Report 2017
22
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.
Other than for Mr Lethridge, salaries and fees paid do not include any superannuation payments. The
Company does not pay retirement allowances to Non-Executive Directors in line with ASX Corporate
Governance Recommendations.
Details of Remuneration
Short Term Employee
Benefits
Long Term Employee
Benefits
Share Based Payments
2017
Salary &
Fees
Bo
nus
No
n
Annual
Shares
Options(2)
% of
Remune
-
ration
Total
Perfor-
mance
Related
Super-
annuation
Mo
ne-
tar
y
$
$
$
$
Non – Executive Directors
P Rombola
23,833
-
-
J Macdonald
40,000
-
-
-
-
G Lethridge
16,939
-
-
1,609
M Naylor(4)
24,500
-
-
-
Executive Directors
& Long
Service
Leave
$
-
-
-
-
M Wilson(1)
182,648
-
-
17,352
20,384
Key Management Personnel
M Naylor(4)
37,500
D Hanna
7,500
Total
332,920
-
-
-
-
-
-
-
-
-
$
$
$
$
-
-
-
-
-
-
45,000(3)
11,131
32%
34,964
16,696
29%
56,696
30,633
62%
49,181
16,696
41%
41,196
-
-
-
-
16,696
7%
237,080
-
-
-
-
-
-
37,500
52,500
509,117
-
-
-
18,961
20,384
45,000
91,852
No short-term cash bonuses included as paid or accrued for during the year ended 30 June 2017.
(1) Includes annual leave and long service leave accrued.
(2) The fair value of options is calculated at the date of grant using the Black Scholes option pricing model and allocated to each reporting
period over the period from grant date to vesting date. The value disclosed in the above table is the portion of the fair value of the options
recognised in the reporting period.
(3) Mr Hanna participated in the share placement that occurred during the period and provided CFO and Company Secretarial services as
consideration.
(4) Mr Naylor resigned from the position of CFO and Company Secretary and was appointed to the Board as a non- executive Director on
28 November 2016.
Helix Resources Limited Annual Report 2017
23
Short Term Employee Benefits
Long Term
Employee Benefits
Share Based Payments
Annual
Options2
Shares
% of
Remun
e-
ration
Total
Perfor-
mance
Relate
d
2016
Salary &
Fees
Bonus
No
n
Mo
ne-
tar
y
Super-
annuatio
n
$
$
$
$
Non – Executive Directors
P Rombola
50,000
J Macdonald
40,000
Executive Directors
M Wilson(1)
182,648
Key Management Personnel
M Naylor
90,000
Total
362,648
-
-
-
-
-
-
-
-
-
-
& Long
Service
Leave
$
-
-
-
-
17,352
19,049
-
-
17,352
19,049
$
-
-
-
-
-
$
$
$
45,622
48%
95,622
45,622
53%
85,622
45,622
17%
264,671
45,622
34%
135,622
182,488
-
581,537
-
-
-
-
-
No short-term cash bonuses included as paid or accrued for during the year ended 30 June 2016.
(1) Includes annual leave and long service leave accrued.
(2) The fair value of options is calculated at the date of grant using the Black Scholes option pricing model and allocated to each reporting
period over the period from grant date to vesting date. The value disclosed in the above table is the portion of the fair value of the options
recognised in the reporting period.
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
2013
2014
2015
2016
2017
Revenue
5,721,673
112,425
72,161
27,720
22,495
Net Profit/(Loss)
(2,730,290)
(1,971,585)
(4,301,431)
(1,502,964)
(6,312,894)
Share Price
Dividends
$0.032
$0.026
$0.028
Nil
Nil
Nil
$0.07
Nil
$0.037
Nil
Helix Resources Limited Annual Report 2017
24
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
G Lethridge
P Rombola
60,000(1)
60,000
Not specified
Not Specified
Not specified
12 months, expiring
17 July 2017
2 months
2 months
J Macdonald
40,000
Not specified
Not specified
Not specified
M Wilson
M Naylor
D Hanna
200,000
Not specified
3 months
3 months
42,000
90,000
Not specified
Not specified
Not specified
Not specified
Not specified
Not specified
(1) Inclusive of 9.5% Superannuation guarantee contributions
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
July 2016
Granted during
year as
remuneration
Exercised
during year
Options
disposed /
cancelled /
lapsed
during year
Balance as
at 30June
2017
Number
Options
vested &
exercisable
at end of
year
Number
Number
Number
Number
G Lethridge
-
3,000,000
P Rombola
3,000,000
J Macdonald
3,000,000
M Wilson
3,000,000
M Naylor
D Hanna
3,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
3,000,000
1,000,000
(1,000,000)
2,000,000 (1)
2,000,000 (1)
-
-
-
-
3,000,000
2,000,000
3,000,000
2,000,000
3,000,000
2,000,000
-
-
(1) These balances are as at the date of Mr Rombola’s resignation being 28 November 2016.
Helix Resources Limited Annual Report 2017
25
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
G Lethridge
Balance as at
July 2016
-
P Rombola
11,194,627
J Macdonald
11,194,627 (3)
M Wilson
M Naylor
D Hanna
10,077,500
3,505,434
1,696,501
300,000
Purchased
Disposed
-
-
-
-
Other
Movements
Balance as at 30
June 2017
200,000 (1)
200,000
-
-
-
-
10,077,500
3,505,434
1,996,501
-
-
-
-
-
(1) Initial Directors interest – 9 March 2017
(2) Mr Hanna participated in the share placement that occurred during the period and provided CFO and Company Secretarial services as
consideration.
(3) This balance is as at the date of Mr Rombola’s resignation being 28 November 2016.
No shares were issued as part of remuneration.
Related Party Transactions
The Company has adopted a policy to contract the services of certain Director Related entities to retain access
to relevant expertise. The policy provides that Helix will only enter into a transaction with a Director Related
entity in the following circumstances:
a)
Any proposed transaction is at arm’s length and on normal commercial terms; and
b) Where it is believed that the Director Related entity is the best equipped to undertake the work after
taking into account: experience, expertise, knowledge of the Group; and value for money.
Use of Remuneration Consultants
During the year ended 30 June 2017, whilst the Board did not engage the formal services of external
remuneration consultants, it did hold informal discussions with such consultants. In addition, the Board utilised
publicly available remuneration benchmarking surveys prepared by an international recruitment agency.
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
2016 at its 2016 Annual General Meeting. The Company received no specific feedback on its Remuneration
Report at the Annual General Meeting.
END OF AUDITED REMUNERATION REPORT
Helix Resources Limited Annual Report 2017
26
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
Audit Committee
Meetings
Meetings
Entitled to
Attend
Attended
Entitled to
Attend
Attended
Entitled to
Attend
Attended
2
-
5
5
5
2
-
5
5
5
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
G Lethridge
P Rombola
M Wilson
J Macdonald
M Naylor
Non-Audit Services
The auditors did not provide any non-audit services during the financial year.
Helix Resources Limited Annual Report 2017
27
Auditor’s Independence Declaration
The auditor’s independence declaration is included on page 29 of the financial report.
Dated at Perth this 29th day of September 2017.
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.
Michael Wilson
Director
29th September 2017
Helix Resources Limited Annual Report 2017
28
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
Auditor’s Independence Declaration
to the Directors of Helix Resources Limited
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 2017, I declare that, to the best
of my knowledge and belief, there have been:
a
no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
b
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, 29 September 2017
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.
Page 29 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 audit of the financial report
Opinion
We have audited the financial report of Helix Resources Limited (the Company) and its
subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30
June 2017, 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, and notes to the consolidated financial statements, including a summary of significant
accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group, is in accordance with the
Corporations Act 2001, including:
a Giving a true and fair view of the Group’s financial position as at 30 June 2017 and of its
performance for the year ended on that date; and
b Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report. We are independent of the Group in accordance with the
independence requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have
also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
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.
Page 30 Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the financial report of the current period. These matters were addressed in the
context of our audit of the financial report as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters.
Key audit matter
How our audit addressed the key audit matter
Exploration and Evaluation Assets – Valuation
Net
Note 1(e), 1(p) and Note 7
At 30 June 2017 the carrying value of Exploration
and Evaluation Assets was $6.25m.
In accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources, the Group is
required to assess at each reporting date if there are
any triggers for impairment which may suggest the
carrying value is in excess of the recoverable value.
The process to assess whether there are any
impairment triggers in each are of interest involves an
element of management judgement.
This area is a key audit matter due to the degree of
judgement required in determining the existence of
impairment triggers and assessing the recoverable
value.
Assessment of Going Concern – Note 1(s)
The Group is at the early stage of exploration
activities on the areas of interest to which it has
tenure.
Under AASB 101: Presentation of Financial
Statements the directors of the Group are required to
assess the appropriateness of the preparation of the
financial report on a going concern basis.
The Group has prepared cash flow projections which
include a number of assumptions and judgements,
including estimates of project and administration
expenditure. These projections are used to support
the sufficiency of working capital.
This area is a key audit matter due to the nature of
the business. Should it be inappropriate for the
financial statements to be prepared on the going
concern basis the values of certain assets and
liabilities as set out in the financial statements might
be significantly different. As such, the use of the
going concern assumption requires proper and due
consideration.
Our procedures included, amongst others:
•
Obtaining the management prepared reconciliation of
capitalised exploration and evaluation expenditure and
agreeing to the general ledger;
Reviewing management’s area of interest considerations
against AASB 6;
Conducting a detailed review of management’s
assessment of trigger events prepared in accordance with
AASB 6 including;
•
•
•
Tracing projects to statutory registers, exploration
licenses and third party confirmations to determine
whether a right of tenure existed;
Enquiry of management regarding their intentions to
carry out exploration and evaluation activity in the
relevant exploration area, including review of
managements’ budgeted expenditure;
Understanding whether any data exists to suggest
that the carrying value of these exploration and
evaluation assets are unlikely to be recovered
through development or sale;
Assessing the accuracy of impairment recorded for the
year as it pertained to exploration interests;
Reviewing the appropriateness of the related disclosures
within the financial statements.
•
•
•
•
Our procedures included, amongst others:
•
•
•
•
•
Obtaining management's assessment of the going concern
basis of preparation by reviewing future plans and tested
cash flow projections prepared by the Group for
consistency with our understanding of planned activities;
Held discussions with management as to any future capital
raising initiates and tested the forecasted cash flows for
the twelve month period from the date of signing the
financial statements for mathematical accuracy;
Comparing forecast administrative expenditure with actual
levels of expenditure for the 2017 financial year and
obtaining explanations for any significant variances;
Obtained representations from management and the
directors as to the adequacy of cash resources; and
Assessed the adequacy and completeness of related
disclosures in the financial statements.
Page 31 Information Other than the Financial Report and Auditor’s Report Thereon
The Directors are responsible for the other information. The other information comprises the
information included in the Group’s annual report for the year ended 30 June 2017, but does not
include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors’ 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 and for 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.
In preparing the financial report, the Directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the Directors either intend to liquidate the Group or
to cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with the Australian Auditing Standards will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website at:
http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf. This description forms part of our
auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 18 to 23 of the directors’ report for
the year ended 30 June 2017.
In our opinion, the Remuneration Report of Helix Resources Limited, for the year ended 30 June
2017, complies with section 300A of the Corporations Act 2001.
Page 32 Responsibilities
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.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
M A Petricevic
Partner - Audit & Assurance
Perth, 29 September 2017
Page 33 DIRECTORS’ DECLARATION
The Directors of the company declare that:
1.
The consolidated financial statements and notes, as set out on pages 35 to 70 are in accordance with
the Corporations Act 2001 and:-
a)
b)
c)
comply with Australian Accounting Standards
Interpretations) and the Corporations Regulations 2001; and
(including
the Australian Accounting
give a true and fair view of the financial position as at 30 June 2017 and of the performance for
the year ended on that date of the group; and
complies with International Financial Reporting Standards as disclosed in Note 1.
2.
the Chief Executive Officer and Chief Finance Officer have each declared that:
a)
b)
c)
the financial records of the Company for the financial year have been properly maintained in
accordance with s 286 of the Corporations Act 2001;
the financial statements and notes for the financial year comply with the Accounting Standards;
and
the financial statements and notes for the financial year give a true and fair view;
3.
In the Directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay
its debts as and when they become due and payable;
This declaration is made in accordance with a resolution of the Board of Directors.
On behalf of the Directors
Michael Wilson
Director
Signed at Perth this 29th day of September 2017.
Helix Resources Limited Annual Report 2017
34
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2017
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
2017
$
2016
$
1,965,627
2,003,815
198,671
222,490
-
-
2,164,298
2,226,305
96,900
39,960
6,255,307
10,129,423
185,851
101,446
6,538,058
10,270,829
8,702,356
12,497,134
509,373
178,613
71,306
64,027
580,679
242,640
3,851
3,851
3,253
3,253
584,530
245,893
8,117,826
12,251,241
64,571,704
62,496,044
339,737
235,918
(56,793,615)
(50,480,721)
8,117,826
12,251,241
This statement should be read in conjunction with the Notes to the Financial Statements
Helix Resources Limited Annual Report 2017
35
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
& OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2017
Revenue
Other Income
Employment Costs
Audit and Accountancy
Corporate Marketing
Directors’ Fees
Depreciation
Note
13
14
Foreign Exchange Loss/(Gain)
Impairment
Evaluation Assets
of Exploration
and
7
Share Based Payments
Information Technology Costs
Premises Costs
Professional Services
Travel Expenses
Revaluation of Shares
Companies
in Listed
Loss on Sale of Investment
2(b)
Share Registry and Listing Costs
Other Expenses
Loss before income tax
Income tax benefit
18
Loss for the year
Other Comprehensive Income
Other comprehensive income, after tax
Total
Loss
Comprehensive
attributable to members of Helix
Resources Limited
Loss Per Share
Basic (cents per share)
Diluted (cents per share)
20
20
CONSOLIDATED
2017
$
2016
$
22,495
27,720
-
-
(144,394)
(154,289)
(45,990)
(43,176)
(106,882)
(14,389)
(3,167)
(60,820)
(20,458)
(90,000)
(8,769)
6,598
(5,652,055)
(9,485)
(103,818)
(235,918)
(14,899)
(73,998)
(2,480)
(14,769)
(61,942)
(1,087)
(24,853)
(14,217)
-
-
(58,239)
(47,049)
552
(932,183)
(61,006)
(40,001)
(6,312,894)
(1,670,074)
-
167,110
(6,312,894)
(1,502,964)
-
-
-
-
(6,312,894)
(1,502,964)
(1.94)
(1.94)
(0.54)
(0.54)
This statement should be read in conjunction with the Notes to the Financial Statements
Helix Resources Limited Annual Report 2017
36
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2017
Cash Flow From Operating Activities
Payments to suppliers and employees
Interest received
R&D tax rebate
Other receipts
Note
18
CONSOLIDATED
2017
$
2016
$
(507,071)
(524,771)
22,048
18,207
167,110
-
-
4,126
Net cash provided/(used in) by operating activities
2(b)
(317,913)
(502,438)
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
(1,721,439)
(1,035,085)
(71,828)
(7,008)
500
-
-
-
647,817
95,081
Net cash provided by/(used in) investing activities
(1,792,767)
(299,195)
Cash Flow From Financing Activities
Proceeds from issue of shares
Share issue costs
Net cash provided by financing activities
increase/(decrease)
Net
equivalents held
in cash and cash
Exchange rate adjustment
Cash and cash equivalents at beginning
of financial year
Cash and cash equivalents at End
of Financial Year
2,208,000
1,280,000
(132,341)
(64,000)
2,075,659
1,216,000
(35,021)
414,367
(3,167)
6,598
2,003,815
1,582,850
2(a)
1,965,627
2,003,815
This statement should be read in conjunction with the Notes to the Financial Statements
Helix Resources Limited Annual Report 2017
37
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2017
CONSOLIDATED
Share Capital
2017
Ordinary
Reserves
Accumulated
Losses
$
$
$
Total
$
Total equity at the beginning of the
financial year
Issue of shares during the financial
year
Share issue costs during the financial
year
10
10
Options vested during financial year
11
Expiry of options during the financial
year
62,496,044
235,918
(50,480,721)
12,251,241
2,208,000
(132,340)
-
-
-
-
103,819
-
-
-
-
-
2,208,000
(132,340)
103,819
-
Total transactions with owners
64,571,704
339,737
(50,480,721)
14,430,720
Loss for the year
Other comprehensive income for the
year
Total comprehensive income
Total equity at the end of the
financial year
-
-
-
-
-
-
(6,312,894)
(6,312,894)
-
-
(6,312,894)
(6,312,894)
64,571,704
339,737
(56,793,615)
8,117,826
CONSOLIDATED
Share Capital
2016
Ordinary
Reserves
Accumulated
Losses
$
$
$
Total
$
Total equity at the beginning of the
financial year
61,280,044
Issue of shares during the financial year
10
1,280,000
Share issue costs during the financial
year
10
(64,000)
-
-
-
Options vested during financial year
11
Expiry of options during the financial
year
-
-
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
Total equity at the end of the
financial year
-
-
-
-
-
-
(1,502,964)
(1,502,964)
-
-
(1,502,964)
(1,502,964)
62,496,044
235,918
(50,480,721)
12,251,241
This statement should be read in conjunction with the Notes to the Financial Statements
Helix Resources Limited Annual Report 2017
38
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
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 available-for-sale financial assets, financial assets and liabilities
(including derivative instruments) at fair value through profit or loss, certain classes of property, plant
and equipment and investment property. A summary of the Group’s significant accounting policies is set
out below.
a)
Principles of Consolidation
The Group financial statements consolidate those of the Parent Company and all of its
subsidiaries as of 30 June 2017. 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.
Helix Resources Limited Annual Report 2017
39
c)
Income Tax
The income tax expense or revenue for the period is the tax payable on the current period's
taxable income based on the national income tax rate for each jurisdiction adjusted by changes
in deferred tax assets and liabilities attributable to temporary differences between the tax bases
of assets and liabilities and their carrying amounts in the financial statements, and to unused tax
losses.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates
expected to apply when the assets are recovered or liabilities are settled, based on those tax
rates which are enacted or substantively enacted for each jurisdiction. The relevant tax rates are
applied to the cumulative amounts of deductible and taxable temporary differences to measure
the deferred tax asset or liability. An exception is made for certain temporary differences arising
from the initial recognition of an asset or a liability. No deferred tax asset or liability is recognised
in relation to these temporary differences if they arose in a transaction, other than a business
combination, that at the time of the transaction did not affect either accounting profit or taxable
profit or loss.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses
only if it is probable that future taxable amounts will be available to utilise those temporary
differences and losses. Deferred tax liabilities and assets are not recognised for temporary differ-
ences 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.
Amounts receivable from the Australian Tax Office in respect of research and development tax
concession claims are recognised when management have a reasonable basis to estimate the
claim proceeds.
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:
- Straight line 10% - 33%
- Diminishing Value 20% - 40%
Motor Vehicles:
- 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.
Helix Resources Limited Annual Report 2017
40
When production commences, the accumulated costs for the relevant area of interest are
amortised over the life of the area according to the rate of depletion of the economically
recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of
continuing to carry forward costs in relation to that area of interest.
f)
Leases
Lease payments for operating leases where substantially all the risks and benefits remain with
the lessor are charged as expenses in the periods in which they are incurred.
g)
Non-derivative financial instruments
Financial instruments are initially measured at cost on trade date, which includes transaction
costs. Subsequent to initial recognition, these instruments are measured as set out below.
(i)
Financial assets at fair value through profit or loss
This category has two sub-categories: financial assets held for trading, and those
designated at fair value through profit or loss on initial recognition. A financial asset is
classified in this category if acquired principally for the purpose of selling in the short term
or if so designated by management. The policy of management is to designate a financial
asset if there exists the possibility it will be sold in the short term and the asset is subject
to frequent changes in fair value. Derivatives are also categorised as held for trading unless
they are designated as hedges. Assets in this category are classified as current assets if
they are either held for trading or are expected to be realised within 12 months of the
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 management has the positive intention and
ability to hold to maturity.
(iv) Available-for-sale financial assets
Available-for-sale financial assets, comprising principally marketable equity securities, are
non-derivatives that are either designated in this category or not classified in any of the
other categories. They are included in non-current assets unless management intends to
dispose of the investment within 12 months of the 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. Investments are initially recognised at fair value plus
transaction costs for all financial assets not carried at fair value through profit or loss. Financial
assets are derecognised when the rights to receive cash flows from the financial assets have
expired or have been transferred and the Group has transferred substantially all the risks and
rewards of ownership.
Available-for-sale financial assets and financial assets at fair value through profit and loss are
subsequently carried at fair value. Loans and receivables and held-to-maturity investments are
carried at amortised cost using the effective interest method. Realised and unrealised gains and
losses arising from changes in the fair value of the 'financial assets at fair value through profit or
loss' category are included in the 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
Helix Resources Limited Annual Report 2017
41
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 wholly within 12 months, are measured
at their nominal values using the remuneration rate expected to apply at the time of settlement.
Provision made in respect of long service leave which is not expected to be settled within 12
months is measured as the present value of the estimated future cash outflows to be made by
the Group in respect of services provided by the employees up to reporting date.
Share-based payments
Share-based compensation benefits are provided to employees via various Share Option Plans.
The fair value of options granted is recognised as an employee benefit expense with a
corresponding increase in equity. The fair value is measured at grant date and recognised over
the period during which the employees become unconditionally entitled to the options.
The fair value at grant date is independently determined using a Black-Scholes option pricing
model that takes into account the exercise price, the term of the option, the vesting and
performance criteria, the impact of dilution, the non-tradable nature of the option, the share price
at grant date and expected price volatility of the underlying share, the expected dividend yield
and the risk-free interest rate for the term of the option.
The fair value of the options granted excludes the impact of any non-market vesting conditions
(for example, profitability and sales growth targets). Non-market vesting conditions are included
in assumptions about the number of options that are expected to become exercisable. At each
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.
i)
Interest in Joint Venture Operations
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
Helix Resources Limited Annual Report 2017
42
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.
j)
Revenue Recognition
Revenue from the disposal of assets is recognised when the Group has passed control of the
goods or other assets to the buyer. Interest on bank deposits is recognised as income as it
accrues.
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.
l)
Receivables
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.
Helix Resources Limited Annual Report 2017
43
n)
Impairment of Non-financial Assets
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).
o)
Fair Value Estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and
measurement or for disclosure purposes. The fair value of financial instruments traded in active
markets (such as publicly traded derivatives, and trading and available-for-sale securities) is
based on quoted market prices at the 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.
In the application of the Australian Accounting Standards, management is required to make
judgments, estimates and assumptions about carrying values of assets and liabilities that are not
readily apparent from other sources. The estimates and associated assumptions are based on
historical experience and various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making the judgments. Actual results may
differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the year in which the estimate is revised if the revision
affects only that year or in the year of the revision and future years if the revision affects both
current and future years.
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. Such capitalised expenditure
is carried at the end of the reporting period at $6.3M.
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
Helix Resources Limited Annual Report 2017
44
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 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 standard was first adopted during the current period and has not had a material
impact on 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 standard was first adopted during the current period and has not had
a material impact on 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. The standard was first adopted during the current period and has not
had a material impact on the financial statements.
AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets
between an Investor and its Associate or Joint Venture 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 standard was first adopted during
the current period and has not had a 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
Helix Resources Limited Annual Report 2017
45
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. The standard was first adopted during the current
period and has not had a 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. The standard was first
adopted during the current period and has not had a 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 2019, 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 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
Helix Resources Limited Annual Report 2017
46
these amendments are first adopted for the year ending 30 June 2018, there will be no material
impact on the financial statements.
AASB 2016-3 Clarifications to AASB 15 Revenue from Contracts with Customers clarify the
application of AASB 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.
At 30 June 2017 the Group had current assets in excess of current liabilities of $1,583,619 (2016:
$1,983,665). The funds are considered to be sufficient by the Directors to fund exploration
activities and meet all current minimum exploration expenditure commitments, settle liabilities as
they become due and payable and fund budgeted operating cash outflows of the Group.
Noting that the timing and amount of the exploration activities is discretionary and is able to be
varied or deferred as required.
The Group will continue to manage its funding and expenditure to ensure that it has sufficient
cash reserves for at least the next twelve months. Whilst there is no certainty of funds being
raised, should the Company require, the Board are confident of raising sufficient capital to fund
the working capital requirements of the Group.
t)
Foreign Currency Translation
Functional and presentation currency
The consolidated financial statements are presented in Australian dollars (AUD), which is also
the functional currency of all entities in the group.
Foreign currency transactions and balances
Foreign currency transactions are translated into the functional currency of the respective Group
entity, using the exchange rates prevailing at the dates of the transactions (spot exchange rate).
Foreign exchange gains and losses resulting from the settlement of such transactions and from
the re-measurement of monetary items at year end exchange rates are recognised in profit or
loss. Non-monetary items are not retranslated at year-end and are measured at historical cost
(translated using the exchange rates at the date of the transaction), except for non-monetary
items measured at fair value which are translated using the exchange rates at the date when fair
value was determined.
Helix Resources Limited Annual Report 2017
47
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
2017
$
2016
$
13
467
1,965,614
2,003,348
1,965,627
2,003,815
Cash on hand is non-interest bearing. Cash at bank bears floating interest rates between 0.00% and
1.62% (2016: between 0.00% and 2.90%).
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 othe
receivables
Increase/(Decrease) in Liabilities
Increase / (decrease) in trade and othe
payables
Increase / (decrease) in provisions
Net Cash provided by Operating
Activities
CONSOLIDATED
2017
$
2016
$
(6,312,894)
(1,502,964)
14,389
5,652,055
-
8,769
9,485
(552)
3,167
(6,598)
103,818
235,918
-
932,183
56,982
(162,302)
156,692
(18,608)
7,878
2,231
(317,913)
(502,438)
Helix Resources Limited Annual Report 2017
48
Non- cash financing activities
Mr Hanna participated in the share placement that occurred during the period and provided CFO and
Company Secretarial services as consideration. The value of the services provided for non- cash
amounted to $45,000 being 937,500 shares at $0.048 per share.
3) Trade and Other Receivables
CURRENT RECEIVABLES
Prepayments
R&D tax rebate*
Other Receivables
Total Current Receivables
CONSOLIDATED
2017
$
2016
$
34,512
1,350
-
167,110
164,159
54,030
198,671
222,490
*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. 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
CONSOLIDATED
2017
$
2016
$
-
-
-
-
-
-
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
Loss on sale of shares in listed corporations (1)
Cash Proceeds on sale of share in listed
corporations
Closing balance
CONSOLIDATED
2017
$
2016
$
-
-
-
-
-
1,580,000
-
(932,183)
(647,817)
-
(1) The WPG Resources and Tigers Realm shares were disposed during the 2016 year, resulting in a
loss of $932,183.
Helix Resources Limited Annual Report 2017
49
a)
Shares in subsidiaries
Name
Country of
Incorporation
Principal Activity Percentage Held
Percentage Held
Oxley Exploration Pty Ltd*
Australia
Mineral Exploration
2017
100%
Leichhardt Resources (QLD)
Pty Ltd*
Helix Resources (Overseas)
Pty Ltd*
Helix
Limitada*
Resources
Chile
Australia
Mineral Exploration
100%
Australia
Mineral Exploration
100%
Chile
Mineral Exploration
100%
100%
2016
100%
100%
100%
* All Subsidiaries’ primary activities are mineral exploration.
5) Other Financial Assets – Non Current
CONSOLIDATED
2017
$
2016
$
(a) Security Deposits
184,651
100,246
(b) Shares in listed corporations – held for trading
1,200
1,200
Total Other Assets – Non-Current
185,851
101,446
Changes in fair values of financial assets held for trading are recorded in the profit and loss.
Helix Resources Limited Annual Report 2017
50
6) Property, Plant and Equipment
2017
Plant & Equipment
Motor Vehicles
CONSOLIDATED
Gross Carrying Amount
Balance at 1 July 2016
Additions
Disposals
$
$
126,541
5,630
(1,408)
94,856
66,198
-
Total
$
221,397
71,828
(1,408)
Balance at 30 June 2017
130,763
161,054
291,817
Accumulated Depreciation
Balance at 1 July 2016
Depreciation
Depreciation write off on disposal
Balance at 30 June 2017
Net Book Value
30 June 2017
98,235
9,480
(908)
106,807
83,202
4,908
-
88,110
181,437
14,389
(908)
194,917
23,956
72,944
96,900
Helix Resources Limited Annual Report 2017
51
2016
Plant & Equipment
Motor Vehicles
CONSOLIDATED
$
$
Total
$
Gross Carrying Amount
Balance at 1 July 2015
119,533
94,856
214,389
Additions
Disposals
7,008
-
-
-
7,008
-
Balance at 30 June 2016
126,541
94,856
221,397
Accumulated Depreciation
Balance at 1 July 2015
Depreciation
Depreciation write off on disposal
Balance at 30 June 2016
Net Book Value
30 June 2016
92,850
5,385
-
98,235
79,818
3,384
-
83,202
172,668
8,769
-
181,437
28,306
11,654
39,960
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 losses (1)
Balance at the end of the financial
year
CONSOLIDATED
2017
$
2016
$
10,129,423
9,142,899
1,777,939
996,009
-
-
(5,652,055)
(9,485)
6,255,307
10,129,423
The Directors' assessment of carrying amount was after consideration of prevailing market conditions;
previous expenditure carried out on the tenements; and the potential for mineralisation based on both
the entity's and independent geological reports. The ultimate value of these assets is dependent upon
recoupment by commercial development or the sale of the whole, or part, of the Group's interests in
those areas for an amount at least equal to the carrying value. There may exist, on the Group’s
exploration properties, areas subject to claim under native title or containing sacred sites or sites of
significance to Aboriginal people. As a result, exploration properties or areas within the tenements may
be subject to exploration and mining restrictions.
Helix Resources Limited Annual Report 2017
52
The impairment losses relate to the following Areas of Interest:
Chile
$5,517,964
Other NSW
$34,091
$5,562,055
Chile
Exploration and evaluation expenditure incurred is capitalised 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.
During the current year, the board reviewed the carrying value of the Chilean Assets, being the Joshua
Copper Project ($3,496,270) and the Huallillinga/ Blanco Y Negro Copper/Gold Project ($2,021,694).
The board considered the impairment indicators contained within AASB 6. The board concluded that
given the assets are held in care & maintenance, that no exploration activity was undertaken during the
current period and that no exploration activity was budgeted over the forward 12 months, that it would
be prudent to impair 100% of the capitalised exploration costs relating to both projects. This resulted in
a non-cash impairment expense in the Statement of Financial Performance of in the current period of
$5,517,964 (June 2016: nil).
It should be noted that the requirement for impairment arises from the accounting standards and not
from any geological, technical or prospectivity down-grades of these projects. Whilst there is no
certainty a transaction involving one or more of the projects will occur, the Company continues to receive
interest from third parties and hold these projects and related permits within its portfolio with a view to
extracting value for its shareholders in the near future.
Other, NSW
EL 7438 (Quanda) – 40% of the tenement ground holding was relinquished during the period and as
such $134,091 was expensed in the current year profit and loss.
Prior Year
The impairment losses for the previous 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
2017
$
2016
$
509,373
178,613
509,373
178,613
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. $25,000 of the $509,373 in
payables at 30 June 2017 relates to payments due to key management personnel.
Helix Resources Limited Annual Report 2017
53
9) Provisions
Current
Employee Benefits
Total Current Provisions
Non-Current
Employee Benefits
Total Non-Current Provisions
10) Share Capital
354,466,692 Fully Paid Ordinary Shares (2016:
308,466,692)
Total Share Capital
CONSOLIDATED
2017
$
2016
$
71,306
71,306
64,027
64,027
3,851
3,851
3,253
3,253
CONSOLIDATED
2017
$
2016
$
64,571,704
62,496,044
64,571,704
62,496,044
2017
2016
No
$
No
$
Fully Paid Ordinary Shares
Balance at beginning of financial year
308,466,692
62,496,044
268,466,692
61,280,044
Share Issue: 46,000,000 Fully Paid Shares
@ $0.048
Share Issue: 37,360,000 Fully Paid Shares
@ $0.032
Share Issue: 2,640,000 Fully Paid Shares
@ $0.032
Share Issue Costs
46,000,000
2,208,000
-
-
-
-
-
-
-
37,360,000
1,195,520
2,640,000
84,480
(132,340)
-
(64,000)
Balance at end of financial year
354,466,692
64,571,704
308,466,692
62,496,044
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.
Helix Resources Limited Annual Report 2017
54
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
Unlisted Options
2017
2016
No.
$
No.
$
Balance at beginning of financial year
14,750,000
235,918
-
-
Options issued during the financial year
3,000,000
103,819
14,750,000
235,918
Exercise of Options to Fully Paid Shares
-
Cancellation of Options
(1,100,000)
Expiry of Options
-
-
-
-
-
-
-
-
-
-
Balance at end of financial year
16,650,000
339,737
14,750,000
235,918
There were no other options on issue in either 2017 or 2016.
Option Reserve
The option reserve recognises the fair value of options issued but not exercised. Upon the exercise, lapsing or
expiry of options, the balance of the option reserve relating to those options is transferred to accumulated losses.
12) Accumulated Losses
CONSOLIDATED
2017
$
2016
$
Balance at beginning of financial year
(50,480,721)
(48,977,757)
Net Loss attributable to members of the
parent entity
Expiry of Options
Balance at end of financial year
(6,312,894)
(1,502,964)
-
-
(56,793,615)
(50,480,721)
Helix Resources Limited Annual Report 2017
55
13) Revenue
Loss before Income Tax includes the following items of revenue and expense:
CONSOLIDATED
2017
$
2016
$
22,048
447
22,495
22,511
5,209
27,720
CONSOLIDATED
2017
$
2016
$
assets:
(14,389)
(8,769)
Operating Activities
Interest Revenue
Other
Total Revenue
14) Loss for the Year
Expenses
Depreciation
Property, plant and equipment
non-current
of
Impairment of exploration and evaluation
assets
Operating lease rental expenses: Minimum
lease payments
Defined
expense
contribution
superannuation
(5,652,055)
(9,485)
(59,359)
(48,369)
(25,252)
(28,635)
Loss for the year
(6,312,894)
(1,502,964)
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
2017
$
2016
$
39,305
30,402
-
-
-
-
39,305
30,402
Helix Resources Limited Annual Report 2017
56
The lease for the office and a storage 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 5 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 (2016: $18,995). No minimum work expenditure commitments exist
over any of the Company’s tenements (2016: $nil).
16) Key Management Personnel’s 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
Long term employee benefits
Long service leave entitlements
Annual leave entitlements
Superannuation
Total long term employee benefits
Share based payments
Options
Shares
Total
CONSOLIDATED
2017
$
2016
$
332,920
362,648
4,999
4,999
15,385
14,050
18,961
17,352
39,345
36,401
91,852
182,488
45,000
136,852
-
509,117
581,537
At 30 June 2017, $20,000 for Mr Jason Macdonald’s Director fees and $5,000 for Mr Gary Lethridge’s
Director fees was accrued and unpaid.
Helix Resources Limited Annual Report 2017
57
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.
c)
Options held by 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 2016
Number
Granted during
year as
remuneration
Number
Exercised
during year
Number
G Lethridge
-
3,000,000
P Rombola
3,000,000
J Macdonald
3,000,000
M Wilson
3,000,000
M Naylor
3,000,000
D Hanna
-
-
-
-
-
-
-
-
-
-
-
-
Options
exercised/
cancelled /lapsed
during year
Balance as at
30 June 2017
Options vested
and exercisable
at the end of
year
Number
Number
-
3,000,000
1,000,000
(1,000,000)
2,000,000 (1)
2,000,000 (1)
-
-
-
-
3,000,000
2,000,000
3,000,000
2,000,000
3,000,000
2,000,000
-
-
(1) These balances are as at the date of Mr Rombola’s resignation being 28 November 2016.
Helix Resources Limited Annual Report 2017
58
18) Income Tax
CONSOLIDATED
2017
$
2016
$
Accounting profit / (loss) before tax from continuing operations
(6,312,894)
(1,670,074)
Accounting profit / (loss) before tax
(6,312,894)
(1,670,074)
Reconciliation of Income Tax Expense / (Benefit) to Accounting Profit / (Loss)
Prima facie tax payable / (benefit) at Australian rate of 28% (2016 – 28%)
(1,736,046)
(475,971)
Prima facie tax payable / (benefit) at Chilean rate of 20% (2016 – 20%)
-
-
Adjusted for tax effect of the following:
- taxable / non-deductible items
- non-taxable / deductible items
-under / (over) provision in prior year
29,670
67,890
-
-
(4,161)
105,117
- adjustment for change of Australian tax rate
394,645
589,628
- adjustment for change of Chilean tax rate
-
(13,238)
- income tax benefit not brought to account
1,311,731
(269,265)
Research and development tax benefit
Income tax expense / (benefit)
-
-
(167,110)
(167,110)
Helix Resources Limited Annual Report 2017
59
Statement of Profit or Loss and Other Comprehensive Income
Current income tax charge
R&D tax benefit
Deferred income tax
CONSOLIDATED
2017
$
2016
$
-
-
-
(167,110)
Relating to origination and reversal of temporary differences
1,116,959
(267,641)
Adjustment for change of Australian tax rate
47,110
59,983
Australian temporary differences not brought to account
(1,164,069)
142,972
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:
-
-
-
(76,398)
141,084
(167,110)
Australian deferred tax asset losses
12,865,016
11,483,282
Chilean deferred tax asset losses
Australian deferred tax assets other
211,803
211,803
-
26,766
Net Unrecognised deferred tax assets
13,076,819
11,721,851
Recognised Deferred Tax Balances:
Deferred tax assets:
Deferred tax assets in relation to tax losses
Deferred tax assets
Deferred tax liabilities:
1,484,568
2,656,456
1,484,568
2,656,456
Deferred tax liabilities in relation to exploration and evaluation expenditure
1,484,568
(2,656,456)
Deferred tax liabilities
Net deferred tax
1,484,568
(2,656,456)
-
-
The income tax rate for small business entities was reduced from 28.5% to 27.5% effective from 1 July
2016. Helix Resources Limited currently satisfies the conditions to be a small business entity.
Helix Resources Limited Annual Report 2017
60
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 regions of Australia, mainly in New South Wales, and Chile. During the period all
capitalised exploration costs relating to the Chilean projects were impaired and a current non-cash
charge of $5,652,055 was recognised in the Statement of Financial Performance (refer to Note 7). The
mineral assets held via outright ownership or joint venture are considered one business segment and
the minerals currently being targeted include gold, copper, and other base metals. Decisions are made
on a geographical basis.
Australia
Chile
Total
2017
2016
2017
2016
2017
2016
Current Assets
Cash
1,964,958
1,989,576
669
14,239
1,965,627
2,003,815
Non-Current
Assets
Mineral Assets
6,389,398
4,788,771
5,517,964
5,350,137
11,907,362
10,138,908
(134,091)
(9,485)
(5,517,964)
-
(5,652,055)
(9,485)
Impairment
expense
Carrying
Amount
Current
Liabilities
6,255,307
4,779,286
Trade payables
509,373
169,648
Revenue
Depreciation
22,495
14,389
27,720
8,769
Loss before tax
(794,928)
(1,670,074)
-
-
-
-
-
5,350,137
6,255,307
10,129,423
8,965
509,373
178,613
-
-
-
22,495
14,389
27,720
8,769
(794,928)
(1,670,074)
Helix Resources Limited Annual Report 2017
61
20) Earnings Per Share
Basic loss per share
Diluted loss per share
Basic Loss per Share
COMPANY
2017
2016
Cents Per share
Cents Per share
(1.94)
(1.94)
(0.54)
(0.54)
The earnings and weighted average number of ordinary shares used in the calculation of basic earnings per share are as
follows:
Loss after tax (a)
(6,312,894)
(1,502,964)
2017
$
2016
$
Weighted average number of ordinary shares (b)
325,527,132
277,755,362
(a) Earnings used in the calculation of basic earnings per share is net loss after tax of $6,312,894 (2016: $1,502,964).
2017
No.
2016
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)
(6,312,894)
(1,502,964)
2017
$
2016
$
Weighted average number of ordinary shares and
potential
ordinary shares (b)
12 months to 30 June 2017
12 months to 30 June 2016
No.
No.
325,527,132
286,642,658
(a) Earnings used in the calculation of diluted loss per share is net loss after tax of $6,312,894 (2016: loss of $1,502,964).
(b) The following unlisted options are all out the money and are therefore not considered to be dilutive and have been
excluded from the weighted average number of ordinary shares and potential ordinary shares used in the calculation of
diluted earnings per share:
Listed Options
Unlisted Options
2017
No.
-
2016
No.
-
16,650,000
14,750,000
Helix Resources Limited Annual Report 2017
62
Since the Group made a loss of $6,312,894 during the year, the potential ordinary shares were not
considered to be dilutive.
21)
Interest in Joint Operations
The parent entity has entered into the following unincorporated joint operations:
Joint
Project
Yalleen
Operations
Percentage Interest
30% (2016: 30%) (API Management Pty Ltd 70% Iron Ore
rights)
Exploration
Principal
Activities
Iron Ore
Restdown JV
90%; Glencore 10% converting to a Royalty) (2016: 70%)
(Glencore)
Gold
Canbelego
70% (2016: 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
expenditure in the above mentioned joint operations is as follows:
Non-Current Assets
Mineral Assets
Additions
Impairment
Carrying Amount
Yalleen Joint
Operation
30%
Restdown Joint
Operation
90%
Canbelego Joint
Operation
70%
-
-
-
-
1,781,370
607,727
-
1,103,308
10,842
-
2,389,097
1,114,150
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).
Helix Resources Limited Annual Report 2017
63
2017
Level 1
Level 2
Level 3
Total
Financial Assets
Held for trading assets
$
1,200
1,200
-
-
-
-
1,200
1,200
2016
Level 1
Level 2
Level 3
Total
Financial Assets
Held for trading assets
$
1,200
1,200
-
-
-
-
1,200
1,200
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 $1,965,614 (2016: $2,103,348) on deposit in interest bearing accounts earning a
weighted average interest rate of 1.71% (2016: 4.12%).
Interest Rate Risk Sensitivity Analysis
At 30 June 2017, 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 (2016: decrease in loss) by $10,121
(2016: $6,894) and an increase in equity by $10,121 (2016: $6,894). 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 (2016: increase in loss) by $10,121 (2016: $6,894) and a decrease in equity by $10,121
(2016: $6,894).
The Group's exposure to interest rate risk and effective weighted average interest rate for classes of
financial assets is set out below:
Helix Resources Limited Annual Report 2017
64
Floating Interest Rate Maturity
Average
Interest
Rate
Fixed
Interest
Rate
Less than
1 year
More than
1 Year
Non
Interest
Bearing
Total
%
$
$
$
$
$
2017
Financial Assets
Current Receivables
Non-current Receivables
Held for trading assets
Cash and cash equivalent assets
0.32%
Security deposits and deposits at
financial institutions
1.71%
Financial Liabilities
Trade Payables
within 30 days)
(all payable
-
-
-
-
-
-
-
-
-
-
-
1,965,614
-
-
-
-
198,671
198,671
-
-
1,200
1,200
13
1,965,627
-
184,651
-
184,651
1,965,614
184,651
199,884
2,350,149
-
-
-
-
509,373
509,373
509,373
509,373
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
0.92%
Security deposits and deposits at
financial institutions
4.12%
Financial Liabilities
Trade Payables
within 30 days)
(all payable
-
-
-
-
-
-
-
-
-
-
-
1,879,098
-
-
-
-
222,490
222,490
-
-
1,200
1,200
124,717
2,003,815
-
87,229
13,017
100,246
1,879,098
87,229
361,424
2,327,751
-
-
-
-
178,612
178,612
178,612
178,612
Other than those classes of assets and liabilities denoted as "listed" in Note 4, none of the classes of
financial assets and liabilities are readily traded on organised markets in standardised form.
Helix Resources Limited Annual Report 2017
65
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 formalised 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:
2017
USD
CLP
Cash and cash equivalents
Trade and other payables
-
-
-
669
-
669
2016
USD
CLP
Cash and cash equivalents
Trade and other payables
Liquidity Risk
110,011
-
110,011
14,239
8,964
23,203
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.
Helix Resources Limited Annual Report 2017
66
23) Employee Benefits
The aggregate employee benefits liability recognised and included in the financial statements is as follows:
CONSOLIDATED
2017
$
2016
$
71,306
3,851
75,157
64,027
3,253
67,280
No
No
3
3
Provision for employee benefits:
Current (Note 9)
Non-Current (Note 9)
Number of employees at end of
financial year
24) Contingent Liabilities
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 $184,651 (2016: $64,229) for tenement holdings.
25) Remuneration of Auditors
a) Auditor of the Parent Entity
Auditing the financial report
2017
$
2016
$
26,512
26,512
26,512
26,512
The auditor of Helix Resources Limited for the 2017 financial year is Grant Thornton Audit Pty Ltd.
Helix Resources Limited Annual Report 2017
67
26) Helix Resources Limited Parent Company Information
Note
Assets
Current Assets
Non-current Assets
Total Assets
Liabilities
Current Liabilities
Non-current Liabilities
8, 9
9
Total Liabilities
Equity
Issued Capital
Accumulated Losses
Options Reserve
Total Equity
Financial Performance
2017
$
2016
$
2,164,298
2,233,043
6,538,058
10,283,868
8,702,356
12,516,911
580,679
262,417
3,851
3,253
584,530
265,670
64,571,704
62,496,044
(56,793,615)
(50,480,721)
339,737
235,918
8,117,826
12,251,241
Profit / (Loss) for the year
14
(6,312,894)
(1,502,964)
Total Comprehensive
Income
27) Subsequent Events
(6,312,894)
(1,502,964)
No matter or circumstance has arisen since 30 June 2017 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) Share Based Payments
Options
During the year the following options were granted to the Non- Executive Chairman:
Number
Issued
Grant Date
Expiry Date
Exercise Price
Fair Value at Grant
Date
$0.0271
3,000,000
3 May 2017
2 May 2020
$0.0673
The Black Scholes option pricing model was used to value these options. Inputs into the valuation model
were as stated in the table above, and as follows:
Spot price: The spot price of the Company’s shares was $0.048 per share at the close of trade
on 3 May 2017, the closing price immediately prior to Valuation Date.
Expected future volatility: The share price volatility of the Company at 101.19% for the securities,
was calculated and based on assessing historical volatility over recent trading periods.
Helix Resources Limited Annual Report 2017
68
Risk free rate: Determined based on volatility yields of Commonwealth bonds using a ten-year
bond, the period which most closely corresponds to the maximum life of the Options. The interest
rates were measured as the closing rate on the day prior to the Valuation Date. A ten-year bond
yielded 1.80% on 3 May 2017 as disclosed by the Reserve Bank of Australia.
Dividend yield: Assumed dividend yield of 0% as the Company does not have a history of paying
dividends and is not expected to declare or pay any dividends over the life of the Rights.
Vesting conditions: 1/3 on grant date, 1/3 on 3 May 18, 1/3 on 3 May 19
The fair value of these 3,000,000 options granted during the current year was $81,154. The accounting
expense recognised for the current year is $30,633 based on the number of options vested during the
current year. The accounting expense recognised for options granted in previous years $73,185 based
on the number of options vested during the current year.
The following table illustrates the outstanding options granted, exercised and forfeited during the year.
Granted/
Number
Date
Expiry Date
Exercise
Fair Value at Grant Date
Exercised/
Forfeited
Grant
3,000,000
3 May 2017
2 May 2020
Forfeited
(1,000,000)
28 Nov 2016
15 Nov 2018
Forfeited
(100,000)
28 Nov 2016
15 Nov 2018
Price
(cents)
$0.0673
$0.0675
$0.0675
(cents)
$0.0271
$0.0228
$0.0228
The following table illustrates the outstanding options granted, exercised and forfeited during the year.
2017
2016
No.
$
No.
$
Unlisted Options
Balance at beginning of financial year
14,750,000
235,918
-
873,247
Options issued during the financial year
3,000,000
103,819
14,750,000
-
Exercise of Options to Fully Paid Shares
-
Cancellation of Options
(1,100,000)
Expiry of Options
-
-
-
-
-
-
-
(799,808)
-
(73,439)
Balance at end of financial year
16,650,000
339,737
14,750,000
-
Number
Weighted
average
exercise price
Number
Weighted
average
exercise
price
Outstanding at 1 July
Granted during the year
Exercised during the year
Cancelled during the year
14,750,000
3,000,000
-
6.75 cents
6.73 cents
-
(1,100,000)
6.75 cents
14,750,000
6.75 cents
-
-
-
-
-
-
Outstanding as at 30 June
16,650,000
6.75 cents
14,750,000
6.75 cents
Helix Resources Limited Annual Report 2017
69
The weighted average remaining contractual life for the share-based payment options outstanding as
at 30 June 2017 was 1.66 years (2016: 1.45).
The range of exercise prices for share-based payment options outstanding as at the end of the year
was $0.0673 to $0.0675 (2016: $0.0675 to $0.0675).
29) Additional Company Information
Helix Resources Limited is a listed public company, incorporated and operating in Australia.
Registered Office
Principal Place of Business
78 Churchill Avenue
78 Churchill Avenue
SUBIACO WA 6008
SUBIACO WA 6008
Tel (08) 9321 2644
Tel (08) 9321 2644
The financial report for Helix Resources Limited for the year ended 30 June 2017 was authorised for issue in
accordance with a resolution of the Directors on the 29th September 2017.
Helix Resources Limited Annual Report 2017
70
AS AT 25th SEPTEMBER 2017
NUMBER OF SHARES HELD
ADDITIONAL ASX INFORMATION
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Total
Total holders
92
158
260
697
367
Units
31,293
495,475
2,253,833
27,998,757
323,687,334
1,574
354,466,692
% Units
0.01
0.14
0.64
7.90
91.32
100.00
Minimum $ 500.00 parcel at $ 0.0280 per unit
17,858
648
4,679,764
Minimum Parcel
Size
Holders
Units
Helix Resources Limited Annual Report 2017
71
PERCENTAGE HELD BY 20 LARGEST SHAREHOLDERS
Rank
Name
Units
% Units
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
18
20
YANDAL INVESTMENTS PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
30,000,000
17,320,279
GEE VEE PTY LTD
11,000,000
GEE VEE PTY LTD
BLAMNCO TRADING PTY LTD
ROMBOLA FAMILY PTY LTD
AQUILA RESOURCES LTD
SHIPSTERS INVESTMENTS PTY LTD
WYTHENSHAWE PTY LTD
CREEKWOOD NOMINEES PTY LTD
MR WILLIAM HENRY HERNSTADT
MRS MELANIE JANE CHESSELL
MR ANDREW MCKENZIE + MRS CATHERINE MCKENZIE
TECHNICA PTY LTD
WYTHENSHAWE PTY LTD
MR MICHAEL HOOD WILSON
MR ROBERT PATRICK HEARNE
ALEXANDER HOLDINGS (WA) PTY LTD
MR BULENT BESIM
10,617,759
10,000,000
8,809,470
7,681,293
7,465,000
7,400,000
7,250,000
6,600,000
3,700,000
3,631,250
3,513,332
3,400,083
3,106,667
3,096,016
3,000,000
3,000,000
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
2,950,000
8.46
4.89
3.10
3.00
2.82
2.49
2.17
2.11
2.09
2.05
1.86
1.04
1.02
0.99
0.96
0.88
0.87
0.85
0.85
0.83
Totals: Top 20 holders of Ordinary Fully Paid Shares (Total)
Total Remaining Holders Balance
153,541,149
200,925,543
43.32
56.68
VOTING RIGHTS
One vote for each ordinary share held in accordance with the Company's Constitution.
Helix Resources Limited Annual Report 2017
72
SUBSTANTIAL SHAREHOLDERS
Shareholder
Yandal Investments Pty Ltd
Gee Vee Pty Ltd
DIRECTORS' INTEREST IN SHARE CAPITAL
Number of
Shares
30,000,000
24,117,759
% of Issued
Capital
8.46
6.10
Director
G Lethridge
M H Wilson
J Macdonald
M Naylor
Total
Fully Paid Ordinary Shares
Unlisted Options
200,000
3,505,434
10,077,500
1,996,501
15,779,435
3,000,000
3,000,000
3,000,000
3,000,000
12,000,000
Helix Resources Limited Annual Report 2017
73
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
EL 8633
EL 8608
EL 8096
Canbelego
Copper/Gold
Helix 70%, Aeris Resources 30%
Restdown
Collerina
Gold/Copper
Copper/Gold
Helix 90%, Glencore 10% diluting to royalty
HLX 100% precious and base metals
South Restdown
Copper/Gold
Helix 90%, Glencore 10% diluting to royalty
Muriel Tank
Gold/Copper
Helix 90%, Glencore 10% diluting to royalty
Quanda
Fiveways
Copper/Gold
Copper/Gold
Little Boppy
Copper/Gold
Boundary
Rochford
Copper/Gold
Copper/Gold
Yanda Creek
Copper/Gold
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
Mundarlo
Copper/Gold
HLX earning 60%
YALLEEN IRON ORE PROJECT
E47/1169-I
Yalleen
Iron ore/Base metals
E47/1170-I
Yalleen
Iron ore/Base metals
E47/1171-I
Yalleen
Iron ore/Base metals
HLX 100%, API Management Pty Ltd 70% iron ore
rights
HLX 100%, API Management Pty Ltd 70% iron ore
rights
HLX 100%, API Management Pty Ltd 70% iron ore
rights
CHILE PROJECTS
EXPLORATION CONCESSIONS
Joshua (13
concessions)
Bogarin (13
concessions)
Joshua
Copper/Gold
Huallillinga
Copper/Gold
EXPLOITATION CONCESSIONS
Blanco Y Negro
1/20
Blanco Y Negro
Copper/Gold
La Cana 11/20
Blanco Y Negro
Copper/Gold
Joshua (5
concessions)
Bogarin (6
concessions)
Joshua
Copper/Gold
Huallillinga
Copper/Gold
Abbreviations and Definitions used in Schedule:
EL or E
Exploration License
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
Helix Resources Limited Annual Report 2017
74
CORPORATE DIRECTORY
Directors
Share Registry
Gary Lethridge
Non- Executive Chairman
Computershare Investor Services Pty Limited
Michael Wilson
Managing Director
Level 11, 172 St Georges Tce
Jason Macdonald Non-Executive Director
Perth WA 6000, Australia
Michael Naylor
Non-Executive Director
Postal Address: GPO Box 2975
Melbourne VIC 3001, Australia
Australian Business Number
Phone:
1300 850 505 (within Australia)
27 009 138 738
+61 3 9415 4000 (outside Australia)
Head and Registered Office
Email: www.investorcentre.com/contact
78 Churchill Avenue
Web: www.computershare.com
Fax:
+61 3 9473 2500
Subiaco, Western Australia 6008
PO Box 825, West Perth, Western Australia 6872
Auditor
Telephone: +61 8 9321 2644
Grant Thornton Audit Pty Ltd
Facsimile: +61 8 9321 3909
Level 1, 10 Kings Park Road
Email: helix@helix.net.au Website: www.helix.net.au
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
CODE: HLX
Helix Resources Limited Annual Report 2017
75