ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2018
Table of Contents
CHAIRMAN’S REVIEW ....................................................................................................... 2
REVIEW OF OPERATIONS .................................................................................................. 3
CORPORATE GOVERNANCE................................................................................................ 8
DIRECTORS’ REPORT ....................................................................................................... 9
AUDITOR’S INDEPENDENCE DECLARATION ........................................................................... 22
INDEPENDENT AUDIT REPORT .......................................................................................... 23
DIRECTORS’ DECLARATION ............................................................................................. 27
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ............................................................ 28
CONSOLIDATED STATEMENT OF PROFIT OR LOSS & OTHER COMPREHENSIVE INCOME ..................... 29
CONSOLIDATED STATEMENT OF CASH FLOWS ...................................................................... 30
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ............................................................. 31
NOTES TO THE FINANCIAL STATEMENTS ............................................................................. 32
ADDITIONAL ASX INFORMATION ....................................................................................... 61
CORPORATE DIRECTORY ................................................................................................ 65
CHAIRMAN’S REVIEW
Dear Shareholder
I am pleased to present Helix’s 2018 Annual Report.
The past year has been a busy time for your Company. Helix has continued to identify and advance the
exploration potential and opportunities presented by the Company’s diverse suite of exploration assets within
its limited means as a junior explorer. This work included both direct exploration activity and direct value
realisation from the rationalisation of three non-core assets.
Helix is fortunate to hold high quality exploration projects prospective for both copper and gold. The Australian
assets are spearheaded by the Company’s flagship Collerina Copper Project located in the Cobar Region of
central New South Wales. This is a region that is fast becoming one of Australia’s most exciting mining and
exploration districts, where new discoveries and active corporate interest continues to emerge.
Following initial exploration success at the Collerina Copper Deposit, the local geological complexity
associated with the deposit required the Company to re-assess its original geological interpretation and
exploration approach. With the development in 2017 of an improved understanding of the shape and geometry
of the Collerina massive copper sulphide unit, this year, Helix began testing this revised geological model with
a new exploration approach that has proven to be successful and has resulted in an exploration breakthrough
in the plunge plane of the central zone massive sulphide. This important work has provided a key to unlocking
the inherent exploration potential of the deposit.
Regionally, the Collerina Copper Project represents a significant exploration asset, with it constituting an 80
kilometre portion of an underexplored VMS belt. Whilst the Collerina Copper Deposit is the most advanced
prospect within the greater project, the Company is also endeavouring to generate new exploration prospects
within this belt. The most advanced of these new exploration prospects is Yathella, where an initial
reconnaissance drill program was recently undertaken.
Helix’s other key exploration projects, include the emerging Mundarlo Project, a joint venture near Gundagai
where strong evidence of another potential VMS system is emerging and the Cobar Gold Project.
Following discussions with a range of parties during the year, Helix has been successful in securing joint
venture partners for both of the Company’s large Chilean Projects; the Joshua Porphyry Copper Project and
the Samuel Copper Project. These initiatives provide Helix shareholders with retained exposure to a world-
class copper district, with no cost to Helix in the short term. A minimum of $1.5 million is contracted to be
expended on the projects by the farminees between now and March 2019. With exploration success and a
longer term commitment from our joint venture partners (Manhattan Corporation and JOGMEC), it is possible
that in excess of $6 million of exploration activity may take place on these Chilean projects over the next two
and a half years.
Additionally, during the year Helix rationalised its remaining interest in the Yalleen iron ore project, by agreeing
to transfer its residual joint venture interest to its joint venture partner (API) for a consideration of $0.5 million
and a 1% FOB royalty.
During the year Tim Kennedy, joined the Board as a Non-Executive Director. He is a geologist with a successful
30-year career in the mining industry, including extensive involvement in the exploration, feasibility and
development of precious metal, base metals and uranium projects throughout Australia. Tim’s appointment
coincided with the resignation of Mike Naylor, who stepped down as a Non-Executive Director, due to the
growing commitments of his corporate consultancy business. The Board would like to thank Mike for his
contribution to Helix.
Also, on behalf of the Board, I would like to thank the Company’s dedicated team of employees and
consultants, led by Mick Wilson, for their hard work and contribution during the year.
Finally, I would also like to acknowledge the patience and continued support of shareholders as Helix
endeavours to unlock value from its exploration asset portfolio.
Yours faithfully,
Gary Lethridge
Chairman
Helix Resources Limited Annual Report 2018
2
REVIEW OF OPERATIONS
The Company’s strategy is to advance its asset portfolio, with a focus on copper and gold, utilising the
Company’s geological and corporate expertise to create and extract value for the benefit of shareholders.
During the reporting period the Company has continued to advance its primary copper assets, being the
flagship Collerina Project (comprising the Collerina Copper Deposit, the Collerina Regional Prospects) and the
new Mundarlo Project, while undertaking reviews on the Cobar Gold Project and successfully pursuing funding
options for the Chilean assets.
AUSTRALIA - COPPER AND GOLD PROJECTS
Background
Helix holds a quality portfolio of projects in the Cobar mining district - NSW. The district hosts long-lived
operating mines and has excellent access to infrastructure. Helix is continuing to carry out targeted exploration
programs to isolate precious and base metal mineralisation in this prospective region. Helix’s work to date has
resulted in the discovery of its flagship Collerina Copper Deposit as well as advancing emerging copper and
gold prospects within the prospective trends held under Helix tenure.
Figure 1: Location of Helix’s Collerina Copper Project and Surrounding Projects in the Cobar District NSW
Helix Resources Limited Annual Report 2018
3
Collerina Copper Deposit
In 2017 a shallow RC drill program was undertaken to gain a better understanding of the distribution of near-
surface copper mineralisation at the Collerina Deposit. This work was considered critical to provide an
understanding of the geometry and likely geological vectors for targeting additional sulphide accumulation in
deeper drilling.
The follow-up deep exploration drill program was then completed in late 2017. The deep RC/DD holes were
each used as platforms for down-hole electromagnetic (DHEM) surveys and identified new zones of partially
defined EM conductivity below, between and down plunge of previous exploration drilling. Additional DHEM
surveys were subsequently completed in diamond tails on previously drilled RC holes in this dip/plunge zone
of the Collerina Deposit, assisting in refining a series of new prospective EM conductive targets.
Exploration drilling and immediate follow-up DHEM surveying has proven highly successful, improving the drill
“hit rate” as drilling gets deeper. Testing these new target zones in 1H18 resulted in an exploration
breakthrough with additional massive sulphide copper mineralisation intersected for the first time at depth.
New drilling in the plunge zone returned significant intercepts including 5m @ 4.3% Cu, 4m @ 3.4% Cu and
3.5m @ 4.7% Cu¹ in zones where the DHEM and Fixed Loop EM (FLEM) surveys had identified EM conductors
(refer Figure 2).
Figure 2: Schematic long section of the Collerina Deposit showing the position of the breakthrough intercepts in
the plunge of the Central massive sulphide unit.
Follow-up DHEM surveys in these deeper holes have identified nearby targets with strong EM conductance,
which are interpreted to relate to local thickening of the massive copper sulphide unit.
This exploration breakthrough, at depth in the plunge plane of the central massive sulphide zone, provides
evidence for both scale and continuity of the copper system at Collerina. The Company is planning to estimate
a maiden resource by late 2018 for the Collerina Deposit.
Collerina Regional Copper Exploration
A mapping and surface sampling program assessing the potential for additional copper systems along the
Collerina Trend was completed in late 2017. Assays returned significant anomalous copper and gold results
from samples taken at the various prospects and also displayed geological similarities to the Collerina Deposit.
Three priority areas were ear-marked for further exploration, being the Widgelands, Tindalls and Yathella
Prospects. Additional field mapping, geochemistry and EM surveys at Yathella confirmed the presence of a
coincident copper-in-soil anomaly over a FLEM and VTEM anomaly within a favourable geological setting.
Helix Resources Limited Annual Report 2018
4
An initial exploration drill program was undertaken in September 2018 at Yathella including DHEM surveys to
assist in vectoring toward areas of potential base metal accumulation. Results are awaited. The remaining
regional target areas are expected to be worked up to drilling status in future exploration campaigns.
Figure 3: Priority regional copper exploration target at Yathella - coincident copper-in-soil anomalism and EM
conductors are being tested with exploration drilling.
Mundarlo Joint Venture
An initial Moving Loop Electro Magnetic (MLEM) survey was completed at Mundarlo which identified a large
but discrete bedrock conductor in this favourable setting for precious and base metal systems. The conductor
sits below a zone of copper-in-soil anomalism hosted in a mixed sedimentary/volcanoclastic basin sequence.
During January 2018, the Company completed an infill auger soil sampling program over the MLEM target
area with assays confirming the presence of copper and associated zinc and gold anomalism in soils above
the MLEM conductor.
Figure 4: Coincident copper-in-soil anomalism and modelled EM conductors in a favorable geological setting for
VMS style mineralisation at Mundarlo NSW.
Helix Resources Limited Annual Report 2018
5
Helix followed up this initial work with a three hole RC drill program in February (two holes extended in May
2018) The initial drilling confirmed the EM conductor is sulphide related. Subsequent geological studies and
new information from the NSW Geological Survey has confirmed the project to be of a similar age to the VMS
systems Helix is targeting at Collerina, and the geological setting is suitable for the style of VMS target being
pursued².
In September 2018 Helix has drilled a deep hole to provide an initial test of the 750m x 600m modelled EM
conductor plate. A DHEM survey has also been undertaken. Results are awaited.
Helix has satisfied the first expenditure requirement securing 60% equity, and moving toward 80% ownership
of the Mundarlo project.
Cobar Gold Project
Helix completed an RC drill program which consisted of 30 holes for 3,600m across six prospects². New gold
intercepts identified during the drilling program expanded the known prospects both along strike and at depth.
The drilling also identified further gold bearing structures and highlighted the potential for additional gold
systems at the respective regional prospects.
The Company also completed a rock chip and mapping program collected during reconnaissance at the un-
tested Lone Hand and Girl in Blue workings with best gold assays returned being 17.7g/t Au from Lone Hand
and 2.17g/t Au from Girl in Blue.³
The project has seen limited fieldwork during 2018 as the Company has focussed on our flagship copper
assets.
Figure 5: Location of Cobar Gold Project 30km southwest of the 4M ounce Peak Gold Trend – recent gold
intercepts around the prospects drilled within the Battery Tank Goldfield.
Canbelego JV Copper Project (HLX 70% Manager: Aeris 30%)
The JV Participants are assessing the previous work at the Canbelego Project, with exploration programs and
budgets being considered to test additional copper targets on the property.
Chile Projects
The Company has received several un-solicited approaches from third parties regarding joint venture
opportunities on specific projects and/or potential sale of Helix’s Chilean assets. The Company progressed
talks with these parties and during August 2018 Helix announced a JV with Manhattan Corporation covering
the Joshua Porphyry Copper Project and in September 2018 the Company announced a JV with the Japanese
Government Agency JOGMEC over the Samuel Copper Project.
These new Joint Ventures will see a minimum of over AUD$1.5m spent on the projects by the end of the first
quarter of 2019 and if our new partners commit to the remaining stages of these Joint Ventures, a total of over
$6m in the next two and a half years. Helix is managing the joint ventures, utilising our experienced Chilean
Team to oversee the field programs for the benefit of all participants.
Helix Resources Limited Annual Report 2018
6
Helix maintains exposure to significant copper exploration news flow from these projects at no cost to the
Company, and importantly retains appropriate equity positions in these copper projects as the assets are
advanced and de-risked.
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 JORC4
Copper
Inferred
Canbelego
JV,NSW
70% (Aeris 30%)
1.5Mt @ 1.2% Cu for 18,000t Contained Cu (at
0.3% Cu Cut-off)5
Gold
Inferred
Cobar Gold
100% (Glencore
1% NSR)
2.6Mt @ 1.2g/t Au for 100,000oz
(0.3 g/t Au cut off)6
Review of material changes
Blanco Y Negro: There are no changes to the resource from the previous reporting statement.
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 Mineral 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 relates 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 and 2012 Editions
of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr M Wilson consents to the
inclusion in the report of the matters based on his information in the form and context in which it appears.
Notes
1.
2.
3.
4.
5.
6.
For full details of exploration results refer to ASX announcement dated 5 April 2018 and 13 June 2018. 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 on 29 March 2018 and 23 May 2018. 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 23 August 2017. Helix Resources is not aware of any new
information or data that materially effects the information in these announcements.
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.
For more information on the Canbelego JV resource estimate, refer to ASX announcement dated 7 October 2010. Helix is not
aware of any new information or data that materially effects the information included in the said announcement.
For more information on the Cobar Gold resource estimate, refer to ASX announcement dated 17 August 2011. Helix is not aware
of any new information or data that materially effects the information included in the said announcement
Helix Resources Limited Annual Report 2018
7
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 2018 was approved by the
Board on 28th September 2018 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 2018
8
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 2018.
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
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 March to September 2018, Mr Lethridge was the Finance Director of Echo Resources Limited. 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 established the Company’s current copper and gold asset portfolios in Australia and Chile, securing
tenement holdings and JV’s with incumbent mine operators in these strategically 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 has practiced law 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.
Tim Kennedy
Non-Executive Director – Appointed 16 February 2018
Mr Kennedy is a geologist with a successful 30-year career in the mining industry, including extensive
involvement in the exploration, feasibility and development of gold, nickel, platinum group elements, base
metals and uranium projects throughout Australia. His most recent role was as Exploration Manager with
Independence Group NL, which during his 11 years grew from a junior explorer to a multi-asset and multi-
commodity mining company. Prior to that, Mr Kennedy held several senior positions with global diversified
miner, Anglo American, including as Exploration Manager – Australia, Principal Geologist / Team Leader –
Australia and Principal Geologist. He also held a technical position with Resolute Limited, Hunter Resources
and PNC Exploration.
Michael Naylor BCom, CA, AGIA
Non-Executive Director – Resigned 16 February 2018
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.
Helix Resources Limited Annual Report 2018
9
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
Gary Lethridge
Echo Resources Limited, Reward Minerals Limited, Talisman Mining Limited
Tim Kennedy
Millennium Minerals Limited, Sipa Resources Limited
Michael Naylor
Tawana Resources NL, Cobalt One Limited
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
G Lethridge
M Wilson
J Macdonald
T Kennedy
COMPANY SECRETARY
200,000
3,504,434
10,077,500
300,000
3,000,000
3,000,000
3,000,000
3,000,000
Benjamin Donovan – Appointed 1 August 2018
Mr Donovan is an experienced Company Secretary, previously providing Helix with corporate advisory and
consultancy services. He is currently a company secretary for several listed and unlisted Australian Companies
and has previously served as a company director at a number of companies. Mr Donovan has extensive
experience in listing rules, compliance and corporate governance, having served as a Senior Advisor at the
Australian Securities Exchange (ASX) in Perth, as well as being a member of the ASX JORC Committee. In
addition, he has experience in the capital markets, having raised capital and assisted numerous companies
on achieving listing on ASX, as well as time as a private client advisor in a boutique stockbroking firm.
Dale Hanna BCom, CA – Resigned 1 August 2018
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
$348,200(2017: loss of $6,312,894).
DIVIDENDS
No dividend has been paid since the end of the previous financial year and no dividend is recommended for
the current period.
Helix Resources Limited Annual Report 2018
10
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 $348,200. In the current year there was no impairment expense (June 2017:
$6,312,894) of carried forward exploration costs.
Major corporate events include:
In November 2017, the Company completed a share placement raising $1.2 million at $0.03 per share
before costs.
In February 2018, the Company sold its interest in Yalleen Iron Ore Project for a total consideration
of:
$0.5 million cash payable upon sale completion;
Uncapped 1% free on board (FOB) royalty on any iron ore produced from the Yalleen Tenement
Area (E48/1169, E47/1170 & E47/1171); and
Uncapped 1% net smelter royalty (NSR) on certain future precious and base metal production
from the Tenement Area.
In February 2018, Mr Naylor resigned from his position as Non-Executive Director and Mr Kennedy
was appointed onto the Board.
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 2018 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 19,650,000 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.
Helix Resources Limited Annual Report 2018
11
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 2018. 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
Mr J Macdonald
Non-Executive Director
Mr T Kennedy
Non-Executive Director (Appointed 13 February 2018)
Mr M Naylor
Non-Executive Director (Resigned 13 February 2018)
Executive Director
Mr M Wilson
Managing Director
Key Management Personnel
Mr D Hanna
Chief Financial Officer and Company Secretary (Resigned 1 August 2018)
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.
Helix Resources Limited Annual Report 2018
12
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
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.
Helix Resources Limited Annual Report 2018
13
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 (2017: 3,000,000).
Value of Options Awarded, Exercised and Lapsed During the Year
30 June 2018
Value of
Options
Granted
During the
Year
Fair Value
Exercise
Value of
Options
Exercised
during
Grant
Per Option
Price
Expiry
the year
Value of
Options
Lapsed or
Cancelled
During the
Year
Date
$
$
Number of
Options
Lapsed or
Cancelled
During the
Year
Number of
Options
Held at
Date of
Resignatio
n
Name
$
Date
Non-Executive Directors
Mr G Lethridge
Mr J Macdonald
-
-
-
-
$
-
-
$
-
-
-
-
Mr T Kennedy
$58,498 6 Apr 2018 $0.0195
$0.0607 5 Apr 2021
Mr M Naylor
Executive Directors
Mr M Wilson
Executives
Mr D Hanna
-
-
-
30 June 2017
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,000,000
-
-
Value of
Options
Granted
During the
Year
Fair Value
Exercise
Value of
Options
Exercised
during
Grant
Per Option
Price
Expiry
the year
Name
$
Date
$
$
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
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Value of
Options
Lapsed or
Cancelled
During the
Year
$
-
$22,811
-
-
-
-
Number of
Options
Lapsed or
Cancelled
During the
Year
Number of
Options
Held at
Date of
Resignatio
n
-
-
-
-
-
-
-
2,000,000
-
-
-
-
Helix Resources Limited Annual Report 2018
14
Grant of Long Term Incentives
For the year ended 30 June 2018, the following options were issued to KMP:
Number of Options over
Ordinary Shares
T Kennedy
3,000,000
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
All options issued to Directors and KMP are issued for nil consideration.
All options issued carry no dividend or voting rights. When exercised, each option is converted into one
ordinary share pari passu with existing ordinary shares.
Non-Executive Remuneration
The policy of the Board is to remunerate Non-Executive Directors in the form of Directors’ fees at market rates
for comparable companies based on their time, commitment and responsibilities. Fees for Non-Executive
Directors are not linked to the performance of the Company to maintain independence and impartiality. In
determining competitive remuneration rates, the Board have historically reviewed local trends among
comparative companies and the industry generally.
Non-Executive Director fees are also determined within an aggregate fee pool which is subject to approval by
shareholders. The aggregate fee pool is currently set at $150,000 per annum which was last approved at the
Annual General Meeting in April 2006. As at the date of this report the level of total Non-Executive Director
remuneration actually paid remains below the maximum amount payable.
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.
Helix Resources Limited Annual Report 2018
15
Details of Remuneration
Short Term Employee Benefits
Post-
Employm
ent
Benefits
2018
Salary
& Fees
Bonus
Non-
Monetary
Superann
uation
Long-
Term
Benefits
Annual
& Long
Service
Leave
Share Based
Payments
Shares Options(2)
% of
Remune
ration
Total
Performance
Related
$
$
$
$
$
$
$
$
$
Non – Executive Directors
G Lethridge
54,795
J Macdonald
36,530
T Kennedy(3)
13,590
M Naylor(1)
25,571
Executive Directors
M Wilson
200,000
Key Management Personnel
D Hanna
86,636
Total
417,122
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,730
3,470
1,291
2,429
-
-
-
-
19,000
18,147
-
-
30,920
18,147
-
-
-
-
-
-
-
22,604
28%
82,129
2,233
5%
42,233
23,284
61%
38,165
2,233
7%
30,233
2,233
1%
239,380
-
-
86,636
52,587
518,776
-
-
-
-
-
-
-
(1)Mr Naylor resigned from the position of non-executive Director on 16 February 2018.
(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 Kennedy was appointed the position of non-executive Director on 16 February 2018. On 6 April 2018, Mr Kennedy was issued
3,000,000 non-transferrable unlisted options exercisable at $0.0607, on or before 5 April 2021.
No short-term cash bonuses included as paid or accrued for during the year ended 30 June 2018.
Helix Resources Limited Annual Report 2018
16
Short Term Employee Benefits
Post-
Employ
ment
Benefits
2017
Salary &
Fees
Bonus
Non-
Monetary
Superan
nuation
Long-
Term
Benefits
Annual &
Long
Service
Leave
Share Based
Payments
Shares
Options(2)
% of
Remune
ration
Total
Performance
Related
$
$
$
$
$
$
$
$
$
Non – Executive Directors
P Rombola
23,833
J Macdonald
40,000
G Lethridge
16,939
M Naylor(1)
24,500
Executive Directors
-
-
-
-
-
-
-
-
-
1,609
-
-
-
-
-
-
M Wilson
182,648
-
-
17,352
20,384
Key Management Personnel
M Naylor(1)
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
-
-
-
-
-
-
-
(1)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.
(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.
No short-term cash bonuses included as paid or accrued for during the year ended 30 June 2017.
Whilst the level of remuneration is not dependent on the satisfaction of any performance condition, the
performance of Executives is reviewed on an annual basis against a number of qualitative and quantitative
factors.
Helix Resources Limited Annual Report 2018
17
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
2014
2015
2016
2017
2018
Revenue
112,425
72,161
27,720
22,495
43,940
Net Profit/(Loss)
(1,971,585)
(4,301,431)
(1,502,964)
(6,312,894)
(348,200)
Share Price
Loss per share (cents)
Dividends
$0.026
(0.96)
Nil
$0.028
(1.64)
Nil
$0.07
(0.54)
Nil
$0.037
(1.94)
Nil
$0.037
(0.09)
Nil
Service Agreements
On appointment to the Board all Non-Executive Directors enter into a service agreement in the form of a letter
of appointment. The letter sets out the Company’s policies and terms including compensation relevant to the
Director.
Remuneration and other key terms of employment for the Managing Director and other executives are
formalised in executive service agreements. The agreements provide for payment of fixed remuneration,
performance related cash bonuses where applicable, other allowances and confirm eligibility to participle in
the Company’s STI and LTI plans.
The major provisions of the agreements relating to remuneration are set out below.
Name
Base Salary / Fee(1)
Term of Agreement
Notice Period by
Company
Notice Period from
Executive
G Lethridge
M Wilson
J Macdonald
T Kennedy
M Naylor
D Hanna
60,000
Not specified
Not Specified
Not specified
200,000
Not specified
Not specified
Not specified
40,000
40,000
42,000
90,000
Not specified
Not specified
Not specified
Not specified
Not specified
Not specified
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.
Helix Resources Limited Annual Report 2018
18
Director/Key
Management
Personnel
Balance as at
1 July 2017
Options
Granted during
year as
remuneration
Options
Exercised
during year
Options
disposed /
cancelled /
lapsed
during year
G Lethridge
3,000,000
M Wilson
3,000,000
J Macdonald
3,000,000
-
-
-
T Kennedy
-
3,000,000 (2)
M Naylor
D Hanna
3,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Balance as
at 30June
2018
Options
vested &
exercisable at
end of year
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000(1)
3,000,000(1)
-
-
(1) These balances are as at the date of Mr Naylor’s resignation being 16 February 2018.
(2) On 6 April 2018, Mr Kennedy was issued 3,000,000 non-transferrable unlisted options exercisable at $0.0607, on or before 5 April 2021.
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
M Wilson
Balance as at
1 July 2017
200,000
3,505,434
J Macdonald
10,077,500
T Kennedy
M Naylor
D Hanna
-
1,996,501
1,996,501
Purchased
Disposed
Other
Movements
Balance as at
30 June 2018
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
200,000
3,505,434
10,077,500
-
1,996,501 (1)
1,996,501
(1) These balances are as at the date of Mr Naylor’s resignation being 16 February 2018.
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 2018, 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.
Helix Resources Limited Annual Report 2018
19
Voting and comments made at the Company’s last Annual General Meeting
Helix received more than 76% of “yes” votes on its Remuneration Report for the financial year ending 30 June
2017 at its 2017 Annual General Meeting. The Company received no specific feedback on its Remuneration
Report at the Annual General Meeting.
END OF AUDITED REMUNERATION REPORT
Officers’ Indemnity and Insurance
During the year the Company paid an insurance premium to insure the Directors and Officers of the Company
and related bodies corporate. The Officers of the Company covered by the insurance policy include the
Directors named in this report.
The Directors’ and Officers’ Liability insurance provides cover against all costs and expenses that may be
incurred in defending civil or criminal proceedings that fall within the scope of the indemnity and that may be
brought against the officers in their capacity as officers of the Company or a related body corporate. The
insurance policy does not contain details of the premium paid in respect of individual officers of the Company.
Disclosure of the nature of the liability cover and the amount of the premium is subject to a confidentiality
clause under the insurance policy.
The Company has entered into an agreement with the Directors and Officers to indemnify them against any
claim and related expenses, which arise as a result of work completed in their respective capacities.
The Company has not otherwise, during or since the financial year indemnified or agreed to indemnify an
officer or auditor of the Company or of any related body corporate against a liability incurred as such an officer
or auditor.
Environmental Regulations
The Group is subject to environmental regulations under laws of the Commonwealth and State. The Group
has a policy of complying with its environmental performance obligations and at the date of this report, is not
aware of any breach of such regulations.
Meetings of Directors
The number of meetings held during the year by Company Directors (including meetings of committees of
Directors) and the number of those meetings attended by each Director was:
Board of Directors’ Meetings
Remuneration Committee
Audit Committee
Meetings
Meetings
Entitled to
Attend
Attended
Entitled to
Attend
Attended
Entitled to
Attend
Attended
G Lethridge
M Wilson
J Macdonald
T Kennedy
M Naylor
5
5
5
2
3
5
5
5
2
3
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Helix Resources Limited Annual Report 2018
20
Non-Audit Services
The auditors did not provide any non-audit services during the financial year.
Auditor’s Independence Declaration
The auditor’s independence declaration is included on page 31of the financial report.
Dated at Perth this 28thday of September2018.
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
28th September 2018
Helix Resources Limited Annual Report 2018
21
Central Park, Level 43
152-158 St Georges Terrace
Perth WA 6000
Correspondence to:
PO Box 7757
Cloisters Square
Perth WA 6850
T +61 8 9480 2000
F +61 8 9480 2050
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 2018, I declare that, to the best of my knowledge and belief, there have been:
a
b
no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the audit.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
P W Warr
Partner – Audit & Assurance
Perth, 28 September 2018
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
‘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.
Central Park, Level 43
152-158 St Georges Terrace
Perth WA 6000
Correspondence to:
PO Box 7757
Cloisters Square
Perth WA 6850
T +61 8 9480 2000
F +61 8 9480 2050
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 Group), which comprises the statement of financial
position as at 30 June 2018, the statement of profit or loss and other comprehensive income, statement of changes in
equity and 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 2018 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 auditor 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
www.grantthornton.com.au
‘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.
Material uncertainty related to going concern
We draw attention to Note 1(v) in the financial statements, which indicates that the Group incurred a net loss of $348,200
during the year ended 30 June 2018, and as of that date, the Group’s cash outflows from operating activities totalled
$1,144,483. As stated in Note 1(v), these events or conditions, along with other matters as set forth in Note 1(v), indicate that
a material uncertainty exists that may cast doubt on the Group’s ability to continue as a going concern. Our opinion is not
modified in respect of this matter.
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 – refer to Note 7
At 30 June 2018, the carrying value of exploration and
evaluation assets was $7.954 million.
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 undertaken by management to assess whether
there are any impairment triggers in each area of interest
involves an element of management judgement.
This area is a key audit matter due to the significant
judgement involved in determining the existence of
impairment triggers.
Our procedures included, amongst others:
obtaining the management 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;
o
tracing projects to statutory registers, exploration
licenses and third party confirmations to determine
whether a right of tenure existed;
o enquiry of management regarding their intentions to
carry out exploration and evaluation activity in the
relevant exploration area, including review of
management’s budgeted expenditure;
o 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; and
assessing the appropriateness of the related financial
statement disclosures.
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 2018, 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 Group 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/ar2.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 12 to 20 of the Directors’ report for the year ended 30 June
2018.
In our opinion, the Remuneration Report of Helix Resources Limited, for the year ended 30 June 2018 complies with
section 300A of the Corporations Act 2001.
Responsibilities
The Directors of the Group 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
P W Warr
Partner – Audit & Assurance
Perth, 28 September 2018
DIRECTORS’ DECLARATION
The Directors of the company declare that:
1.
The consolidated financial statements and notes, as set out on pages 37to 69are in accordance with
the Corporations Act 2001 and:-
a)
b)
comply with Australian Accounting Standards
Interpretations) and
requirements; and
the Australian Accounting
(including
the Corporations Regulations 2001and other mandatory reporting
give a true and fair view of the financial position as at 30 June 2018and of the performance for
the year ended on that date of the group; and
c)
complies with International Financial Reporting Standards as disclosed in Note 1.
2.
the Chief Finance Officer has declared that:
a)
b)
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
c)
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 as required by section 295A
of the Corporations Act 2001.
On behalf of the Directors
Michael Wilson
Director
Signed at Perth this 28th day of September 2018.
Helix Resources Limited Annual Report 2018
27
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
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
AS AT 30 JUNE 2018
CONSOLIDATED
2018
$
2017
$
900,629
1,965,627
64,442
198,671
219,788
-
1,184,859
2,164,298
55,380
96,900
7,954,697
6,255,307
-
185,851
8,010,077
6,538,058
9,194,936
8,702,356
159,609
509,373
104,038
71,306
263,647
580,679
-
-
3,851
3,851
263,647
584,530
8,931,289
8,117,826
65,677,689
64,571,704
395,415
339,737
(57,141,815)
(56,793,615)
8,931,289
8,117,826
This statement should be read in conjunction with the Notes to the Financial Statements
Helix Resources Limited Annual Report 2018
28
CONSOLIDATED STATEMENT OF PROFIT OR LOSS &OTHER
COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2018
Note
13
6
7
Revenue
Other Income
Employment Costs
Audit and Accountancy
Corporate Marketing
Directors’ Fees
Depreciation
Foreign Exchange Loss/(Gain)
Impairment of Exploration and
Evaluation Assets
Share Based Payments
Information Technology Costs
Premises Costs
Professional Services
Travel expenses
Gain on Sale of Mineral Interest
21
Share Registry and Listing Costs
Other Expenses
Loss before income tax
Income tax benefit
Loss for the year
Other Comprehensive Income
Other comprehensive income, after
tax
Total Comprehensive Loss
attributable to members of Helix
Resources Limited
Loss Per Share
Basic (cents per share)
Diluted (cents per share)
14
18
20
20
CONSOLIDATED
2018
$
43,940
2017
$
22,495
-
-
(61,188)
(144,394)
(39,951)
(45,990)
(11,842)
(43,176)
(379,553)
(106,882)
(45,020)
(14,389)
(426)
(3,167)
-
(5,652,055)
(55,678)
(103,818)
(14,228)
(14,899)
(58,787)
(73,998)
(25,797)
(2,480)
(11,473)
(24,853)
500,000
-
(27,223)
(58,239)
(160,974)
(47,049)
(348,200)
(6,312,894)
-
-
(348,200)
(6,312,894)
-
-
(348,200)
(6,312,894)
(0.09)
(0.09)
(1.94)
(1.94)
This statement should be read in conjunction with the Notes to the Financial Statements
Helix Resources Limited Annual Report 2018
29
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2018
Cash Flow From Operating Activities
Payments to suppliers and employees
Interest received
R&D tax rebate
Other receipts
Note
18
CONSOLIDATED
2018
$
2017
$
(1,306,388)
(507,071)
18,794
22,048
-
167,110
143,111
-
Net cash (used in) operating activities
2(b)
(1,144,483)
(317,913)
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
Payments for security deposits
Proceeds from security deposits
(1,497,060)
(1,721,439)
(3,500)
(71,828)
7,000
500
500,000
(69,521)
37,007
-
-
-
Net cash (used in) investing activities
(1,027,074)
(1,792,767)
Cash Flow From Financing Activities
Proceeds from issue of shares
Share issue costs
Net cash provided by financing activities
Net increase/(decrease) in cash and cash
equivalents held
Exchange rate adjustment
Cash and cash equivalents at beginning of
financial year
Cash and cash equivalents at End of
Financial Year
1,200,000
2,208,000
(94,015)
(132,341)
1,105,985
2,075,659
(1,064,572)
(35,021)
(426)
(3,167)
1,965,627
2,003,815
2(a)
900,629
1,965,627
This statement should be read in conjunction with the Notes to the Financial Statements
Helix Resources Limited Annual Report 2018
30
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2018
CONSOLIDATED
Share Capital
2018
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
Options issued during financial year
11
Loss for the year
Other comprehensive income for the
year
Total comprehensive income
Total equity at the end of the
financial year
64,571,704
339,737
(56,793,615)
8,117,826
1,200,000
(94,015)
-
-
-
-
-
-
-
32,394
23,284
55,678
-
-
-
-
-
-
-
-
1,200,000
(94,015)
32,394
23,284
1,161,663
(348,200)
(348,200)
-
-
(348,200)
(348,200)
65,677,689
395,415
(57,141,815)
8,931,289
Total transactions with owners
1,105,985
CONSOLIDATED
Share Capital
2017
Ordinary
Reserves
Accumulated
Losses
$
$
$
Total
$
Total equity at the beginning of the
financial year
62,496,044
235,918
(50,480,721)
12,251,241
Issue of shares during the financial year 10
2,208,000
Share issue costs during the financial
year
Options vested during financial year
10
11
(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
This statement should be read in conjunction with the Notes to the Financial Statements
Helix Resources Limited Annual Report 2018
31
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
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 2018. 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 2018
32
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 2018
33
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)
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.
(ii)
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
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.
Helix Resources Limited Annual Report 2018
34
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
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).
Helix Resources Limited Annual Report 2018
35
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.
Other revenue is recognised when it is received or when the right to receive payment is
established.
k)
Trade and Other Payables
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. Due to their short-term
nature they are measured at amortised cost and are not discounted. The amounts are unsecured
and are usually paid within 30 days or recognition.
l)
Trade and Other 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.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or
payable to, the tax authority.
Helix Resources Limited Annual Report 2018
36
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)
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.
q)
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 2018
37
r)
Operating Segment
Operating segments are presented using the ‘management approach’ where the information
presented is on the same basis as the internal reports provided to the Chief Operating Decision
Makers (‘CODM’) who are the Board of Directors. The CODM is responsible for the allocation of
resources to operating segments and assessing their performance.
s)
Current and Non-Current Classification
An asset is classified as current when it is either expected to be realised; it is expected to be
realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless
restricted from being exchanged or used to settle a liability for at least 12 months after the
reporting period. All other assets are classified as non-current.
A liability is classified as current when it is either expected to be settled in the Group’s normal
operating cycle; due to be settled within 12 months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at least 12 months after the reporting
period. All other liabilities are classified as non-current.
t)
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 2016-1 Amendments to Australian Accounting Standards – Recognition of Deferred Tax
Assets for Unrealised Losses amends AASB 112 Income Taxes to clarify how to account for
deferred tax assets related to debt instruments measured at fair value, particularly where changes
in the market interest rate decrease the fair value of a debt instrument below cost. When these
amendments are first adopted for the year ending 30 June 2018, there will be no material impact
on the financial statements.
AASB 2016-2 Amendments to Australian Accounting Standards – Disclosure Initiative:
Amendments to AASB 107 amends AASB 107 Statement of Cash Flows to require entities
preparing financial statements in accordance with Tier 1 reporting requirements to provide
disclosures that enable users of financial statements to evaluate changes in liabilities arising from
financing activities, including both changes arising from cash flows and non-cash changes. When
these amendments are first adopted for the year ending 30 June 2018, there will be no material
impact on the financial statements.
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.
AASB 2017-2 Amendments to Australian Accounting Standards - Further Annual Improvements
2014-2016 Cycle amends AASB 12 'Disclosure of Interests in Other Entities' clarify that the
disclosure requirements of AASB 12 (other than the requirements for summarised information for
subsidiaries, joint ventures and associates) apply to an entity's interests in other entities that are
classified as held for sale, held for distribution to owners in their capacity as owners, or
discontinued operations in accordance with AASB 5 'Non-current Assets Held for Sale and
Discontinued Operations'.
New Accounting Standards and Interpretations not yet Mandatory or Early Adopted
New and revised accounting standards and amendments that are currently issued for future
reporting periods that are relevant to the Group include:
Helix Resources Limited Annual Report 2018
38
AASB 9Financial 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.
u)
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.
Helix Resources Limited Annual Report 2018
39
Fair value of options issued
Management apply valuation techniques to determine the fair value of financial instruments where
active market quotes are not available. This requires management to develop estimates and
assumptions based on market inputs, using observable data that market participants would use
in pricing the instrument. Where such data is not observable, management uses its best estimate.
Estimated fair values of financial instruments may vary from the actual prices that would be
achieved in an arm’s length transaction at the reporting date.
v)
Going Concern
These financial statements have been prepared on the going concern basis, which contemplates
continuity of normal business activities and the realisation of assets and the settlement of liabilities
in the ordinary course of business.
The Company incurred an operating loss after income tax for the year ended 30 June 2018 of
$348,200 (2017: $6,312,894) and reported net cash outflows from operating and investing
activities of $2,171,557 (2017: $2,110,680). As at 30 June 2018 the Group had available cash
and cash equivalents of $900,629 (2017: $1,965,627).
The Company has the ability to defer or reduce its operating expenditure and commitments, or to
dispose of assets. However, based on its current projected work program it is anticipated that it
will be necessary for the Company to raise additional equity capital during the next twelve months.
The Directors are of the opinion that the Company’s projects are very prospective and that the
ongoing copper and gold potential of its projects will enable the Company to secure fresh capital
as and when required. The Directors have reviewed the Company’s financial position and are of
the opinion that the going concern basis of accounting is appropriate having regard to the matters
outlined above.
If the Company is unable to continue as a going concern, it may be required to realise its assets
and/or settle its liabilities other than in the ordinary course of business and at amounts different
from those stated in the financial statements.
Helix Resources Limited Annual Report 2018
40
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
2018
$
2017
$
1,073
13
899,556
1,965,614
900,629
1,965,627
Cash on hand is non-interest bearing. Cash at bank bears floating interest rates between 0.00% and
0.50% (2017: between 0.00% and 1.62%).
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 foreign exchange transactions
Share based payments
Changes in Net Assets and Liabilities
CONSOLIDATED
2018
$
2017
$
(348,200)
(6,312,894)
45,020
14,389
-
426
5,652,055
3,167
55,678
103,818
Decrease / (increase) in trade and other receivables
(374,194)
56,982
(Decrease) / increase in trade and other payables
(552,094)
156,692
Increase in provisions
Net Cash provided by Operating Activities
Non- cash financing activities
28,881
7,878
(1,144,483)
(317,913)
During the year, a total value of $55,678 options had vested. Part of this balance relates to 3,000,000
unlisted options exercisable at $0.0607 on or before 5 April 2021, that were issued to Mr Kennedy of
$23,284.
Helix Resources Limited Annual Report 2018
41
3)
Trade and Other Receivables
CURRENT RECEIVABLES
Prepayments
Other Receivables
Total Current Receivables
CONSOLIDATED
2018
$
2017
$
-
34,512
64,442
64,442
164,159
198,671
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
Security Deposits
Total Current Financial Assets
a)
Shares in subsidiaries
CONSOLIDATED
2018
$
219,788
219,788
2017
$
-
-
Name
Country of
Incorporation
Principal Activity Percentage Held
Percentage Held
Oxley Exploration Pty Ltd*
Australia
Leichhardt Resources (QLD)
Pty Ltd*
Helix Resources (Overseas)
Pty Ltd*
Helix Resources Chile
Limitada*
Australia
Australia
Chile
Mineral
Exploration
Mineral
Exploration
Mineral
Exploration
Mineral
Exploration
* All Subsidiaries’ primary activities are mineral exploration.
5)
Other Financial Assets – Non Current
Security Deposits
Shares in Listed Corporations – Available-for-sale
Total Other Assets – Non-Current
Helix Resources Limited Annual Report 2018
2018
100%
2017
100%
100%
100%
100%
100%
100%
100%
CONSOLIDATED
2018
$
2017
$
-
-
-
184,651
1,200
185,851
42
Changes in fair values of financial assets held for trading are recorded in the profit and loss.
Movement in shares in listed corporations – available for sale is as follows:
Opening balance
Revaluation on shares in listed corporations
Closing balance
CONSOLIDATED
2018
$
2017
$
1,200
(1,200)
1,200
-
-
1,200
6)
Property, Plant and Equipment
2018
Plant & Equipment
Motor Vehicles
CONSOLIDATED
$
$
Gross Carrying Amount
Balance at 1 July 2017
Additions
Disposals
Balance at 30 June 2018
Accumulated Depreciation
Balance at 1 July 2017
Depreciation
Depreciation write off on disposal
Balance at 30 June 2018
Net Book Value
30 June 2018
130,763
3,500
(10,000)
124,263
106,807
20,763
(10,000)
117,570
161,054
-
-
161,054
88,110
24,257
-
112,367
Total
$
291,817
3,500
(10,000)
285,317
194,917
45,020
(10,000)
229,937
6,693
48,687
55,380
Helix Resources Limited Annual Report 2018
43
CONSOLIDATED
2017
Plant & Equipment
Motor Vehicles
$
$
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
9,481
(909)
106,807
83,202
4,908
-
88,110
181,437
14,389
(909)
194,917
23,956
72,944
96,900
7)
Exploration and Evaluation Expenditure (Non-Current)
Balance at beginning of the financial
year
Expenditure incurred during the year
Impairment losses
Balance at the end of the financial
year
CONSOLIDATED
2018
$
2017
$
6,255,307
10,129,423
1,699,390
1,777,939
-
(5,652,055)
7,954,697
6,255,307
Helix Resources Limited Annual Report 2018
44
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. As a result of the assessment of the economic
recoverability of certain tenements, no provision for impairment was required (2017: $5,652,155) against
the carrying value of its exploration and evaluation expenditure.
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 prior year, the board reviewed the carrying value of the Chilean Assets, being the Joshua
Copper Project ($3,496,270) and the Huallillinga(Samuel) / 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 prior period of $5,517,964. Noting that no further amounts were capitalised for these projects in
the current year.
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. (Refer to Note 26:
Subsequent event)
OtherNSW
Prior year impairment losses related to EL 7438 (Quanda) – 40% of the tenement ground holding was
relinquished during the prior period, and as such $34,091 was expensed in the current year profit and
loss.
8)
Trade and Other Payables
Trade Payables
Other Payables
Total Trade Payables
CONSOLIDATED
2018
$
2017
$
93,955
65,654
382,376
126,997
159,609
509,373
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.
Helix Resources Limited Annual Report 2018
45
9)
Provisions
Current
Employee Benefits
Total Current Provisions
Non-Current
Employee Benefits
Total Non-Current Provisions
10) Share Capital
394,466,692 Fully Paid Ordinary Shares (2017:
354,466,692)
Total Share Capital
CONSOLIDATED
2018
$
2017
$
104,038
104,038
71,306
71,306
-
-
3,851
3,851
CONSOLIDATED
2018
$
2017
$
65,677,689
64,571,704
65,677,689
64,571,704
2018
2017
No
$
No
$
Fully Paid Ordinary Shares
Balance at beginning of financial year
354,466,692
64,571,704
308,466,692
62,496,044
Share Issue: 40,000,000 Fully Paid Shares
@ $0.03
Share Issue: 46,000,000 Fully Paid Shares
@ $0.048
Share Issue Costs
40,000,000
1,200,000
-
-
-
-
-
46,000,000
2,208,000
(94,015)
-
(132,340)
Balance at end of financial year
394,466,692
65,677,689
354,466,692
64,571,704
Fully paid ordinary shares have no par value, carry one vote per share and carry the right to dividends.
Options carry no voting rights until converted to fully paid ordinary shares.
Capital Management
Management controls the capital of the group in order to maximise the return to shareholders and ensure
that the group can fund its operations and continue as a going concern.
Helix Resources Limited Annual Report 2018
46
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
2018
2017
No.
$
No.
$
Balance at beginning of financial year
16,650,000
339,737
14,750,000
235,918
Options issued during the financial year
3,000,000
23,284
3,000,000
103,819
Options vesting during the financial year
Cancellation of Options
-
-
32,394
-
-
(1,100,000)
-
-
Balance at end of financial year
19,650,000
395,415
16,650,000
339,737
There were no other options on issue as at 30 June 2018 (2017: Nil).
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
2018
$
2017
$
Balance at beginning of financial year
(56,793,615)
(50,480,721)
Net Loss attributable to members of the parent entity
(348,200)
(6,312,894)
Balance at end of financial year
(57,141,815)
(56,793,615)
Helix Resources Limited Annual Report 2018
47
13) Revenue
Loss before Income Tax includes the following items of revenue and expense:
Interest Revenue
Other
Total Revenue
14) Other Expenses
Bank Fees
Insurance
Listing costs
Office costs
Other
Total Other Expenses
15) Commitments
a)
Operating Lease Commitments
Not later than 1 year
Later than 1 year but not later than 5 years
More than 5 years
CONSOLIDATED
2018
$
20,363
23,577
43,940
2017
$
22,048
447
22,495
CONSOLIDATED
2018
2017
$
$
5,727
2,582
26,059
23,639
38,375
153
42,780
15,554
48,033
5,121
160,974
47,049
CONSOLIDATED
2018
$
2017
$
53,088
39,305
22,392
-
-
-
75,480
39,305
The lease for the office is for a 2 year term. As at reporting date, there was a balance of 17 months
remaining on the office lease.
Helix Resources Limited Annual Report 2018
48
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 $29,445 (2017: $18,995). No minimum work expenditure commitments exist
over any of the Company’s tenements (2017: $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
2018
$
2017
$
417,122
332,920
8,443
9,704
30,920
49,067
4,999
15,385
18,961
39,345
52,587
-
91,852
45,000
52,587
136,852
518,776
509,117
Aa at 30 June 2018,$6,667 for Mr Macdonald’s director fees (2017: $20,000) and $8,250for Mr Hanna’s
consultancy fees (2017: Nil)was accrued for and unpaid (2017: $5,000 for Mr Lethridge’s director fees).
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.
Helix Resources Limited Annual Report 2018
49
18)
Income Tax
CONSOLIDATED
2018
$
2017
$
Accounting profit / (loss) before tax from continuing operations
(348,200)
(6,312,894)
Accounting profit / (loss) before tax
(348,200)
(6,312,894)
Reconciliation of Income Tax Expense / (Benefit) to Accounting Profit / (Loss)
Prima facie tax payable / (benefit) at Australian rate of 27.5% (2017 – 27.5%)
(95,755)
(1,736,046)
Prima facie tax payable / (benefit) at Chilean rate of 20% (2017 – 20%)
-
-
Adjusted for tax effect of the following:
- taxable / non-deductible items
- adjustment for change of Australian tax rate
15,311
29,670
463,408
394,645
- income tax benefit not brought to account
(382,964)
1,311,731
Income tax expense / (benefit)
-
-
CONSOLIDATED
2018
$
2017
$
Statement of Profit or Loss and Other Comprehensive Income
Deferred income tax
Relating to origination and reversal of temporary differences
480,493
1,116,959
Adjustment for change of Australian tax rate
-
47,110
Australian temporary differences not brought to account
(480,493)
(1,164,069)
Income tax expense/(benefit) reported in statement of profit or loss & other
comprehensive income
-
-
Helix Resources Limited Annual Report 2018
50
Unrecognised Deferred Tax Balances:
Australian deferred tax asset losses
Chilean deferred tax asset losses
Net Unrecognised deferred tax assets
Recognised Deferred Tax Balances:
Deferred tax assets:
Deferred tax assets in relation to tax losses
Deferred tax assets
Deferred tax liabilities:
CONSOLIDATED
2018
$
2017
$
11,470,602
12,865,016
1,498,852
211,803
12,969,454
13,076,819
2,188,193
1,484,568
2,188,193
1,484,568
Deferred tax liabilities in relation to exploration and evaluation expenditure
2,188,193
1,484,568
Deferred tax liabilities
Net deferred tax
2,188,193
1,484,568
-
-
Helix Resources Limited currently satisfies the conditions to be a small business entity.
Helix Resources Limited Annual Report 2018
51
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. Decisions are made on a
geographical basis.
Australia
Chile
Total
2018
2017
2018
2017
2018
2017
Current Assets
Cash
899,015
1,964,958
1,614
669
900,629
1,965,627
Trade and Other Receivables
64,442
198,671
-
Other Financial Assets
206,771
-
13,017
-
-
64,442
198,671
219,788
-
Non-Current Assets
Plant and Equipment
55,380
96,900
-
-
55,380
96,900
Mineral Assets
8,088,788
6,389,398
5,517,964
5,517,964
13,606,752
11,907,362
Impairment expense
(134,091)
(134,091)
(5,517,964)
(5,517,964)
(5,652,055)
(5,652,055)
Other Financial Assets
-
172,834
-
13,017
-
185,851
Total Assets
9,180,305
8,688,670
14,631
13,686
9,194,936
8,702,356
Current Liabilities
Trade payables
159,609
509,373
Provisions
104,038
71,306
Non-Current Liabilities
Provisions
-
3,851
Total Liabilities
263,647
584,530
Revenue
43,940
22,495
Depreciation
45,020
14,389
Loss before tax
(348,200)
(794,928)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
159,609
509,373
104,038
71,306
-
3,851
263,647
584,530
43,940
22,495
45,020
14,389
(348,200)
(794,928)
Helix Resources Limited Annual Report 2018
52
20) Earnings Per Share
Basic loss per share
Diluted loss per share
Basic& Diluted Loss per Share
COMPANY
2018
2017
Cents Per share
Cents Per share
(0.09)
(0.09)
(1.94)
(1.94)
The earnings and weighted average number of ordinary shares used in the calculation of basic and diluted earnings per
share are as follows:
Loss after tax
(348,200)
(6,312,894)
2018
$
2017
$
Weighted average number of ordinary shares
377,809,158
325,527,132
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:
No.
No.
2018
No.
2017
No.
Unlisted Options
19,650,000
16,650,000
Since the Group made a loss of $346,703 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 Operations
Project
Yalleen
Percentage Interest
Principal Exploration
Activities
0% (2017: 30%) (API Management Pty Ltd 70% Iron Ore
rights)
Cobar Gold Project
90% moving to 100%; (Glencore moving to 1% NSR
Royalty) (2017: 90%) (Glencore)
Canbelego
70% (2017: 70%) (Aeris Resources)
Iron Ore
Gold
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.
Helix Resources Limited Annual Report 2018
53
The Group’s interest in exploration expenditure in the above mentioned joint operations is as follows:
Restdown Joint Operation
Canbelego Joint Operation
90%
70%
Non-Current Assets
Mineral Assets
Additions
Impairment
Carrying Amount
2,389,097
266,771
-
2,655,868
1,114,150
6,997
-
1,121,147
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.
During the current financial year, the Company sold its interest in the Yalleen Iron Ore Project, that had
a carrying amount of $Nil for a total consideration of:
$500,000 cash payable upon sale completion;
Uncapped 1% free on board (FOB) royalty on any iron ore produced from the Yalleen Tenement
Area (E48/1169, E47/1170 & E47/1171); and
Uncapped 1% net smelter royalty (NSR) on certain future precious and base metal production
from the Tenement Area.
The Company has not recognized any amounts relating to royalty from API Management Pty Ltd (‘API’)
as it cannot be reliably measured. As the Company becomes more certain as to when API will be
achieving these milestones, the income relating to the royalties will be recognized.
Carrying amount of assets disposed
Total sale consideration
Gain on disposal
22) Financial Instruments
22 February 2018
$
-
500,000
500,000
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 2018
54
2017
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 Sensitivity Analysis
At 30 June 2018, 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 by $10,182 (2017: $10,121) and an
increase in equity by $10,182 (2017: $10,121). 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 by
$10,182 (2017: $10,121) and a decrease in equity by $10,182 (2017: $10,121).
The Group's exposure to interest rate risk and effective weighted average interest rate for classes of
financial assets is set out below:
Floating Interest Rate Maturity
Average
Interest
Rate
Fixed
Interest
Rate
Less than
1 year
More than
1 Year
Non
Interest
Bearing
Total
%
$
$
$
$
$
2018
Financial Assets
Current Receivables
Held for trading assets
Cash and cash equivalent assets
0.86%
Security deposits and deposits at
financial institutions
4.00%
Financial Liabilities
Trade Payables (all payable
within 30 days)
-
-
-
-
-
-
-
-
-
899,556
219,788
1,119,344
-
-
-
-
-
-
-
-
-
64,442
64,442
-
-
1,073
900,629
-
219,788
65,515
1,184,859
93,955
93,955
93,955
93,955
Helix Resources Limited Annual Report 2018
55
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
-
-
-
-
382,376
382,376
382,376
382,376
Other than those classes of assets and liabilities denoted as "listed" in Note 5, none of the classes of
financial assets and liabilities are readily traded on organised markets in standardised form.
Foreign Currency Risk
The Group is exposed to fluctuations in foreign currencies arising from expenditure in currencies other
than the Group’s measurement currency. The Group is exposed to currency exposures to the United
States Dollar and Chilean Pesos. The Group has not 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:
2018
Cash and cash equivalents
Trade and other payables
CLP
1,614
-
1,614
Helix Resources Limited Annual Report 2018
56
2017
USD
CLP
Cash and cash equivalents
Trade and other payables
Liquidity Risk
-
-
-
669
-
669
The Group manages liquidity risk by monitoring forecast cash flows and ensuring that sufficient cash
and financial assets are available to meet the current and future commitments of the Group. The Group’s
operations require it to raise capital on an on-going basis to fund its planned exploration program and
to commercialise its tenement assets. If the Group does not raise capital in the short term, it can continue
as a going concern by reducing planned but not committed exploration expenditure until funding is
available and/or entering into joint venture arrangements where exploration is funded by the joint venture
partner.
Credit Risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in
financial loss to the Group. The Group has adopted the policy of only dealing with credit worthy
counterparties and obtaining sufficient collateral or other security where appropriate, as a means of
mitigating the risk of financial loss from defaults. All cash and cash equivalents are held with financial
institutions with a credit rating of AA3 or above.
The Group measures risk on a fair value basis. The maximum credit risk on financial assets of the Group
which have been recognised on the statement of financial position, other than investments in shares, is
generally the carrying amount, net of any provisions for doubtful debts.
23) 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 $219,788 (2017: $184,651) for tenement holdings.
24) Remuneration of Auditors
a) Auditor of the Parent Entity
Auditing the financial report
2018
$
2017
$
29,451
29,451
26,512
26,512
The auditor of Helix Resources Limited for the 2018 financial year is Grant Thornton Audit Pty Ltd.
Helix Resources Limited Annual Report 2018
57
25) Helix Resources Limited Parent Company Information
Assets
Current Assets
Non-current Assets
Total Assets
Liabilities
Current Liabilities
Non-current Liabilities
Total Liabilities
Equity
Issued Capital
Options Reserve
Accumulated Losses
Total Equity
Financial Performance
Profit / (Loss) for the year
Total Comprehensive
Income
26) Subsequent Events
2018
$
2017
$
1,183,245
2,164,298
6,310,687
6,538,058
7,493,932
8,702,356
1,964,651
580,679
-
3,851
1,964,651
584,530
65,677,689
64,571,704
395,415
339,737
(60,543,823)
(56,793,615)
5,529,281
8,117,826
(3,750,208)
(6,312,894)
(3,750,208)
(6,312,894)
On 1 August 2018, the Company announced that the pre-conditions for Heads of Agreement (executed
on 8 June 2018) with Manhattan Corporation Limited (‘MHC’) in relation to the Joshua Copper Project
(‘Joshua Project’) in Chile has been satisfied, and MHC are committing to fund a $1 million exploration
program at the Joshua Project for 80% interest in the Joshua Project.
On 5 September 2018 the Company announced the signing of an Interim Joint Venture Agreement with
the Japanese Oil, Gas and Metals National Corporation (JOGMEC) in relation to the Samuel Copper
Project (‘Samuel Project’) in Chile, and JOGMEC are committing to fund a US$0.4 million exploration
program at the Samuel Project as the first stage of earning up to 60% interest in the Samuel Project.
No other matter or circumstance has arisen since 30 June 2018 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.
Helix Resources Limited Annual Report 2018
58
27) Share Based Payments
Options
During the year the following options were granted to the Non-Executive Director:
Number Issued
Grant Date
Expiry Date
Exercise Price
3,000,000
6 April 2018
5 April 2021
$0.0607
Fair Value at Grant
Date
$0.0195
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 $0.039 per share at the close of trade
on 6 April 2018, the closing price immediately prior to Valuation Date.
Expected future volatility: The share price volatility of the Company at 93.35% for the securities,
was calculated and based on assessing historical volatility over recent trading periods.
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 3-year bond
yielded 2.14% on 6 April 2018 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 6 April 2019, 1/3 on 6 April 2020
The fair value of these 3,000,000 options granted during the current year was $58,498. The accounting
expense recognised for the current year is$23,284 based on the number of options vested during the
current year. The accounting expense recognised for options granted in previous years $32,394 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/
Exercised/
Forfeited
Number
Date
Expiry Date
Exercise Price
(cents)
Grant
3,000,000
6 April 2018
5 April 2021
$0.0607
Fair Value at
Grant Date
(cents)
$0.0195
Helix Resources Limited Annual Report 2018
59
The following table illustrates the outstanding options granted, exercised and forfeited during the year.
2018
2017
No.
$
No.
$
Unlisted Options
Balance at beginning of financial year
16,650,000
339,737
14,750,000
235,918
Options issued during the financial year
3,000,000
23,284
3,000,000
103,819
Options vesting during the financial year
Cancellation of Options
-
-
32,394
-
-
(1,100,000)
-
-
Balance at end of financial year
19,650,000
395,415
16,650,000
339,737
Number
Weighted
average
exercise price
Number
Weighted
average
exercise
price
Outstanding at 1 July
16,750,000
6.75 cents
14,750,000
6.75 cents
Granted during the year
3,000,000
6.07 cents
3,000,000
6.73 cents
Cancelled during the year
-
-
(1,100,000)
6.75 cents
Outstanding as at 30 June
19,650,000
6.65 cents
16,650,000
6.75 cents
The weighted average remaining contractual life for the share-based payment options outstanding as
at 30 June 2018 was 0.98 years (2017: 1.66 years).
The range of exercise prices for share-based payment options outstanding as at the end of the year
was $0.0607to $0.0675(2017: $0.0673 to $0.0675).
Helix Resources Limited Annual Report 2018
60
AS AT 31st AUGUST 2018
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
104
150
244
790
450
Units
31,261
458,191
2,125,679
32,840,998
359,010,563
1,738
394,466,692
% Units
0.01
0.12
0.54
8.33
91.01
100.00
Minimum $ 500.00 parcel at $ 0.03 per unit
16,667
630
4,366,969
Minimum Parcel
Size
Holders
Units
Helix Resources Limited Annual Report 2018
61
PERCENTAGE HELD BY 20 LARGEST SHAREHOLDERS as at 24 SEPTEMBER 2018
Rank
Name
Units
% of Units
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
YANDAL INVESTMENTS PTY LTD
GEE VEE PTY LTD
GEE VEE PTY LTD
BLAMNCO TRADING PTY LTD
MR ROBERT PATRICK HEARNE
AQUILA RESOURCES LTD
CREEKWOOD NOMINEES PTY LTD
MR BULENT BESIM
WYTHENSHAWE PTY LTD
ROMBOLA FAMILY PTY LTD
MR GREGORY JOHN MUNYARD
SHIPSTERS INVESTMENTS PTY LTD
MR MARC ANTHONY SCHAFFERT
HSBC CUSTODY NOMINEES (AUSTRALIA)
LIMITED
GOTHA STREET CAPITAL PTY LTD
MRS MELANIE JANE CHESSELL
MR GREGORY JOHN MUNYARD + MRS
MARIA ANN MUNYARD + MISS CARMEN
HELENE MUNYARD
TECHNICA PTY LTD
WYTHENSHAWE PTY LTD
MR WILLIAM HENRY HERNSTADT
27,000,000
13,117,759
11,000,000
10,000,000
9,270,000
7,681,293
7,250,000
6,500,000
6,300,000
5,400,000
4,500,000
4,486,849
4,285,000
3,956,173
3,725,000
3,700,000
3,580,048
3,513,332
3,400,083
3,400,000
6.84
3.33
2.79
2.54
2.35
1.95
1.84
1.65
1.60
1.37
1.14
1.14
1.09
1.00
0.94
0.94
0.91
0.89
0.86
0.86
Totals: Top 20 holders of Ordinary Fully Paid Shares (TOTAL)
142,065,537
36.01
VOTING RIGHTS
One vote for each ordinary share held in accordance with the Company's Constitution.
Helix Resources Limited Annual Report 2018
62
SUBSTANTIAL SHAREHOLDERS
Shareholder
Gee Vee Pty Ltd
Yandal Investments Pty Ltd
Number of
Shares
24,117,759
27,000,000
% of Issued
Capital
6.12
6.84
DIRECTORS' INTEREST IN SHARE CAPITAL as at 25 September 2018
Director
G Lethridge
M H Wilson
J Macdonald
T. Kennedy
Total
Fully Paid Ordinary Shares
Unlisted Options
200,000
3,505,434
10,077,500
300,000
14,082,934
3,000,000
3,000,000
3,000,000
3,000,000
12,000,000
Helix Resources Limited Annual Report 2018
63
TENEMENT SCHEDULE
Tenement
Name
Mineral
Ownership
NSW COPPER & GOLD PROJECTS (INCL. 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
Gold
Helix 90%, Glencore moving to 1% NSR royalty
Collerina
Copper/Gold
HLX 100% precious and base metals
South Restdown
Muriel Tank
Gold
Gold
Helix 90%, Glencore moving to 1% NSR royalty
Helix 90%, Glencore moving to 1% NSR royalty
Quanda
Copper/Gold
Fiveways
Copper/Gold
Little Boppy
Copper/Gold
Boundary
Copper/Gold
Rochford
Copper/Gold
Yanda Creek
Copper/Gold
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
Mundarlo
Copper/Basemetals
HLX 60%, earning 80%
CHILE PROJECTS
EXPLORATION CONCESSIONS
Joshua (13
concessions)
Bogarin(13
concessions)
Joshua
Copper/Gold
HLX 100%*
Huallillinga
Copper/Gold
HLX 100%**
EXPLOITATION CONCESSIONS
Blanco Y Negro
1/20
Joshua (5
concessions)
Bogarin (6
concessions)
Blanco Y Negro
Copper/Gold
HLX 100%
Joshua
Copper/Gold
HLX 100%*
Huallillinga
Copper/Gold
HLX 100%**
Abbreviations and Definitions used in Schedule:
EL or E
Exploration License
*
Subject to MHC JV Refer Note
26 (Subsequent Events)
**
Subject to JOGMEC JV Refer
Note 26 (Subsequent Events)
Helix Resources Limited Annual Report 2018
64
CORPORATE DIRECTORY
Directors
Share Registry
Gary Lethridge
Non- Executive Chairman
Computershare Investor Services Pty Limited
Michael Wilson
Managing Director
Level 11, 172 St Georges Terrace
Jason Macdonald
Non-Executive Director
Perth WA 6000, Australia
Timothy Kennedy
Non-Executive Director
Postal Address: GPO Box 2975
Company Secretary
Benjamin Donovan
Melbourne VIC 3001, Australia
Phone: 1300 850 505 (within Australia)
+61 3 9415 4000 (outside Australia)
Fax: +61 3 9473 2500
Australian Business Number
Email: www.investorcentre.com/contact
27 009 138 738
Web: www.computershare.com
Head and Registered Office
Auditor
78 Churchill Avenue
Grant Thornton Audit Pty Ltd
Subiaco, Western Australia 6008
Central Park, Level 43
PO Box 825,West Perth, Western Australia 6872
152 – 158 St Georges Terrace
Telephone: +61 8 9321 2644
Perth Western Australia 6000
Facsimile: +61 8 9321 3909
Telephone: +61 8 9480 2000
Email: helix@helix.net.au
Website: www.helix.net.au
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 2018
65