CONSOLIDATED ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
TABLE OF CONTENTS
CHAIRMAN’S REVIEW ...................................................................................................................................... 1
CORPORATE DIRECTORY .............................................................................................................................. 2
REVIEW OF OPERATIONS ............................................................................................................................... 3
CORPORATE GOVERNANCE ........................................................................................................................ 13
DIRECTORS’ REPORT .................................................................................................................................... 14
AUDITOR’S INDEPENDENCE DECLARATION ............................................................................................. 25
INDEPENDENT AUDIT REPORT .................................................................................................................... 26
DIRECTORS’ DECLARATION ........................................................................................................................ 29
CONSOLIDATED STATEMENT OF PROFIT OR LOSS & OTHER COMPREHENSIVE INCOME ............... 30
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ......................................................................... 31
CONSOLIDATED STATEMENT OF CASH FLOWS ...................................................................................... 32
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY .......................................................................... 33
NOTES TO THE FINANCIAL STATEMENTS ................................................................................................. 34
ADDITIONAL ASX INFORMATION ................................................................................................................. 61
Dear Shareholder
CHAIRMAN’S REVIEW
I am pleased to present Helix’s 2019 Annual Report at the end of another exciting year for the Company.
Helix continues to progress several exciting advanced exploration projects across a number of commodities,
predominantly copper and gold. This work included both direct Resource definition work and continued
exploration activity from our three core assets being Collerina copper, Cobar gold and copper exploration in
Chile.
The past year has seen the Company deliver its maiden resource at the Collerina Copper Deposit in June,
with an interim Indicated and Inferred resource estimate for the Collerina Deposit of 2.02 million tonnes grading
2.03% Copper, 0.1g/t Au containing 40,400 tonnes of copper, 9,400 ounces of gold. (see details below in annual report
and ASX announcement dated 11 June 2019)
This is very much an initial Resource with a series of large exploration target zones identified immediately
surrounding the maiden resource during the modelling and estimation process. These combined with a review
of surface EM and recent DHEM surveys in the deep holes at Collerina provide immediate priority targets to
significantly add to the resource inventory during the next phase. It is the Company’s intention to commence
drilling shortly to add to these resources and to target initial mining studies for early 2020.
The Collerina Copper Deposit continues to be the most advanced project for the Company within the Cobar
region; however work continues at our other prospects including regional targets such as Yathella on the
Collerina Copper Trend and the emerging VMS prospective Mundarlo Project.
The Cobar Gold Project has seen a detailed review of the geology and structural framework of the gold systems
in the area. Helix controls the entire Battery Tank historic goldfield with at nine known historic workings. The
review will now allow for an update of the JORC Resource for the project including gold mineralisation at the
Boundary and Battery Tank prospects to be included with previous resources at Good Friday and the Sunrise
Prospect.
Shareholders continue to retain access to two very exciting projects in Chile with the Joshua Porphyry Copper
Project and the Samuel Copper Project both progressing well during the year.
At the Joshua project, JOGMEC completed their stage 1 investment under the Joint Venture agreement, with
their stage 2 investment progressing. Following completion of stage 2, JOGMEC will have invested US$1.2m
to the advancement of the project, which is shaping up to be an exciting project for shareholders. At the Samuel
copper project, Manhattan Corporation completed $1m of diamond drilling during the year.
Finally, the Board and 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.
The year ahead looks to be an exciting one for shareholders as we progress the Collerina Copper Deposit
towards initial studies. Against a background of a strong gold price, ongoing drilling at the Company’s Cobar
gold project should lead to the outline of a revised JORC resource.
I would also like to acknowledge the patience and continued support of shareholders as Helix continues to
unlock value from its exploration asset portfolio.
Yours faithfully,
Peter Lester
Chairman
Helix Resources Limited Consolidated Annual Report 2019
1
Directors
Peter Lester
Non-Executive Chairman
Michael Wilson
Managing Director
Jason Macdonald
Non-Executive Director
Timothy Kennedy
Non-Executive Director
Company Secretary
Benjamin Donovan
Australian Business Number
27 009 138 738
Head and Registered Office
78 Churchill Avenue
Subiaco, WA 6008
PO Box 825
West Perth, WA 6872
Telephone: +61 8 9321 2644
Facsimile: +61 8 9321 3909
Email: helix@helix.net.au
Website: www.helix.net.au
CORPORATE DIRECTORY
Share Registry
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Phone: 1300 850 505 (within Australia)
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Stock Exchange
The Company Securities are quoted on the
Australian Stock Exchange Limited
CODE: HLX
Helix Resources Limited Consolidated Annual Report 2019
2
REVIEW OF OPERATIONS
During the reporting period, the Company has continued to advance its primary copper assets, being the
flagship Collerina Project (comprising of the Collerina Copper Deposit, the Collerina Regional Prospects), while
undertaking geological reviews of the Cobar Gold Project and regional copper projects, and successfully
securing external funding options for the Chilean assets.
The Company’s core strategy is to advance its asset portfolio, utilising the Company’s geological and corporate
expertise to create value from these internally generated projects.
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 identify 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
Collerina Copper Deposit
In 2016 Helix was awarded the inaugural NSW Minerals Council Explorer of the Year award for the discovery
of the Collerina Deposit. Copper systems in this area have limited strike, but have significant plunge/dip
extents. Over the following field seasons the Company has carefully explored the deposit, to develop a robust
geological model before committing funds to the depth extents. The Collerina deposit has now been tested to
a depth from surface of approximately 420m (> 1km down plunge), beyond which the system remains open.
Helix Resources Limited Consolidated Annual Report 2019
3
REVIEW OF OPERATIONS
Collerina Copper Deposit (Continued)
Deep RC/DD holes were used as platforms for down-hole electromagnetic (DHEM) surveys which identified
new zones of EM conductivity below, along strike and down plunge of the drilling. DHEM is considered an
excellent tool for refining new prospective (copper bearing) EM conductive targets.
Follow-up DHEM surveys in 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 incorporated this information in the geological model used to establish an interim Maiden
Resource Estimate for the deposit. The geological model has been further refined during the resource
modelling process, with clear geological targets emerging outside the current drill pattern. These targets form
the broader exploration target discussed below.
Interim Maiden Resource
In June 2019 Helix reported an interim maiden Indicated and Inferred Mineral Resource estimate for the
Central Zone portion of the Collerina Copper Deposit. The key points from this undertaking included:
•
•
Interim Indicated and Inferred resource estimate for the Collerina Deposit of 2.02 million tonnes
grading 2.03% Copper, 0.1g/t Au containing 40,400 tonnes of copper, 9,400 ounces of gold.
Interim Maiden Resource includes an indicated and inferred massive sulphide component from
the Central Zone plunge of 1.4 million tonnes grading 2.6% Copper, 0.2g/t Au that remains open
in all directions.
• High confidence in geological model derived from the drilled portion of the Central Zone (50% in
Indicated category).
Figure 2: 3D Schematic of Collerina Maiden Resource outline on broader exploration target shape
Scalable Copper System
Near deposit exploration target emerging from resource modelling. Key points include:
• The Collerina Deposit Exploration Target potentially consisting of an additional 2-5Mt at similar grades
(1.5-3% Cu) * to a depth of 450m from surface.
• Exploration Target encapsulates shallow drilling, geological shape from mapping (above consistent
footwall marker), EM and structural studies.
• This initial Mineral Resource estimate provides a strong foundation for the deposit. It illustrates strike
continuity near-surface and high grade copper continuity in the plunge. The surrounding Exploration
Target illustrates the potential for the larger scale within the Collerina mineral system.
The exploration priority is to drill test the Exploration Target* to expand the interim resource inventory to better
reflect the known near surface strike and target thickening on plunge parallel structural repeats.
Helix Resources Limited Consolidated Annual Report 2019
4
REVIEW OF OPERATIONS
Collerina Copper Deposit (Continued)
The Collerina deposit remains open at depth and along strike, with potential repeats both in the footwall and
hanging wall. The modelling process and geological interpretation have identified priority targets in the
immediate vicinity of the deposit.
High grade copper from near surface at Collerina provides scope for potentially advantageous development
optionality and the Project is well located in a region with increasing development and exploration activity.
The interim Indicated and Inferred Mineral Resource estimate is 2.02 million tonnes grading 2.03% Copper,
0.1g/t Au and includes a high-grade massive sulphide component of 1.4 million tonnes grading 2.6% Copper,
0.2g/t Au (see table below).
This Resource estimate took longer than anticipated to complete due in part to the substantial re-interpretation
of the mineral systems localised geometry, particularly in the deeper parts of the system, and with several
delays in drilling. The new interpretation is a critical part in the planning for future drilling to expand on the
Resource estimate. The review has established a robust and refined interpretation of the broader Collerina
copper system. It provides clear vectors to expand the known copper mineralisation envelope, well beyond the
current drill pattern.
The resource modelling seen at Collerina is consistent with early interpretations of nearby deposits, such as
the Tritton Deposit owned by Aeris Resources (prior to the decision to mine). The Tritton Deposit, after 77,000m
of drilling, was interpreted to be a multiple lens deposit offset by faults and shears. This interpretation was later
revised to an intensely folded single sheet-like body as drill density increased and continuity was confirmed
(result of short-sharp 10-20m scale roll overs in cross-cutting structural zones) during mine development.
Exploration Target
Central Zone mineralisation lies within a larger Exploration Target envelope (which has been constrained
between interpreted cross-cutting faults, coincident with the strike of the surface geochemical footprint and
shallow copper oxide drilling) consisting of an additional 2-5 Mt, where similar grades of (1.5-3% Cu) may be
possible with additional drilling (additional 30,000-150,000t Cu)*.
The refined geological and structural interpretation is expected to enable more accurate targeting in both infill
and extensions of the mineralisation, particularly where copper appears to be present in the structural zones
(thickened), and where the sulphide system extends below known oxide copper intercepts.
The priority for future exploration is to complete sufficient drilling within the Exploration Target envelope with
the aim of defining additional zones of copper mineralisation to include within a deposit scale revised Resource
Estimate*.
*Cautionary Statement: Whilst the near-surface strike continuity of the Collerina mineralisation is well
understood, the potential quantity and grade of the Exploration Target remains conceptual until drill tested.
Geophysical and structural evidence is present to provide confidence in the geometry and dimensions,
however, there has been insufficient drilling within these plunge extensions to estimate Mineral Resources in
the broader shape to date. Therefore, it should be considered uncertain if further exploration drilling will result
in defining additional Mineral Resources within the broader Collerina Deposit extensions.
Helix Resources Limited Consolidated Annual Report 2019
5
Collerina Copper Deposit (Continued)
REVIEW OF OPERATIONS
Figure 3. A 3D Schematic representation of the broader Collerina mineralised envelope - illustrates how the
sheet-like mineralised sulphide body interacts with cross-cutting kink folds, and bedding parallel thrust folds.
This structural interpretation is consistent with the geology and mineralisation intercepts in the drilling so far,
modelling of EM conductivity (Surface and Downhole), and the broader geological/structural interpretation of
the Collerina Deposit and other deposits in the district.
Significance
The maiden Collerina Mineral Resource has been defined from an internally generated greenfield discovery.
The project is located in a highly fertile copper-rich trend, nearby to operating mines and infrastructure.
Whilst a high-level mining study assessment is yet to be conducted, the near surface nature of the
mineralisation suggests the deposit may be amenable to initial open cut mining methods. There remains
significant potential for locating additional copper mineralisation within the Exploration Target envelope
surrounding this maiden resource, as well as potential nearby repeats and associated with surface copper
mineralisation at numerous copper prospects along the regional trend. The prospective trend that hosts
Collerina, hosts numerous historic copper shafts and pits that are yet to be drill tested.
Helix has defined the maiden Collerina resource with capital efficiency at a discovery cost of US3c/lb of copper,
less than half the recent industry average of US7c/lb of copper in 2017-18 (ref: S&P global market intelligence).
The refined understanding of the geological and structural controls on copper distribution at Collerina emerging
from the resource modelling process should see similar efficiencies as more of the surrounding exploration
target is drill tested.
Helix Resources Limited Consolidated Annual Report 2019
6
Collerina Copper Deposit (Continued)
Table A: Collerina Deposit Interim 2019 Mineral Resource Estimate (0.5% Cu Cut-off)
REVIEW OF OPERATIONS
Classification Type
Tonnes Cu
Indicated
Inferred
Total
Indicated
Inferred
Total
Indicated
Inferred
Total
Ox/Tr
Ox/Tr
Ox/Tr
Fresh
Fresh
Fresh
Ox/Tr
Fresh
Ox/Tr
Fresh
Mt
0.17
0.46
0.63
0.83
0.57
1.4
0.17
0.83
0.46
0.57
2.02
%
1.1
0.6
0.7
2.6
2.5
2.6
1.1
2.6
0.6
2.5
2.03
Au
ppm
0.0
0.0
0.0
0.2
0.1
0.2
0.0
0.2
0.0
0.1
0.1
Cu
t
1,900
2,700
4,600
Au
Oz
200
100
300
21,800
6,600
14,100
2,500
35,800
9,100
1,900
200
21,800
6,600
2,700
100
14,100
2,500
40,400
9,400
(Rounding discrepancies may occur in summary tables)
Figure 4: 3D 0.3% Copper Envelope (looking S) Note variation in copper grades in the Central Zone plunge can
be directly correlated to drill density, with further upside expected in resource, as “gaps” in the drilling pattern
are filled.
Collerina Regional Copper Exploration
A mapping and surface sampling program assessing the potential for additional copper systems along the
Collerina Trend is ongoing on the Collerina regional trend. Assays returned from earlier broad geochemical
sampling shows the presence significant anomalous copper and gold results taken at the various prospects
that also display geological similarities to the Collerina Deposit. Priority areas at Widgelands, Collerina East,
Homeville, Tindalls and Yathella Prospects are being tested with approximately 1,500 auger soil samples
(including infill programs) in the second half of 2019.
Anomalies derived from these programs will be prioritised and considered for surface EM surveys and follow-
up drilling.
Helix Resources Limited Consolidated Annual Report 2019
7
Collerina Regional Copper Exploration (Continued)
REVIEW OF OPERATIONS
Figure 5: Surface copper geochemistry to date with regional auger soil programs (black dots).
Mundarlo Joint Venture
An initial Moving Loop Electro Magnetic (MLEM) survey was completed at Mundarlo identified a large but
discrete bedrock conductor in this favourable setting for precious and base metal systems. The conductor sat
below a zone of copper-in-soil anomalism hosted in a mixed sedimentary/volcanoclastic basin sequence.
During 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.
Helix followed up this initial work with a three-hole RC drill program (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 (GNSW) has confirmed the project to be of a similar age to the
VMS systems Helix is targeting at Collerina, and the geological setting is prospective for the style of VMS
target being pursued.
In September 2018 Helix drilled a deep diamond hole to provide an initial test of the 750m x 600m modelled
EM conductor plate. A DHEM survey was also undertaken in this hole. Massive iron sulphide (pyrrhotite) was
intersected at the target depth, and further off-hole and below hole targets were identified in the DHEM survey.
A geological review of the core by GNSW in the first half of 2019 has identified that the sequence drilled is
over-turned and is younging down hole. A revised geological model targeting the feeder structure and
potentially multiple sulphide lenses is now being considered.
Helix has satisfied the expenditure requirements securing 80% ownership of the Mundarlo project, with our JV
partner planning to contribute at 20% to future programs.
Helix Resources Limited Consolidated Annual Report 2019
8
Mundarlo Joint Venture (Continued)
REVIEW OF OPERATIONS
Figure 6: Coincident copper-in-soil anomalism and modelled EM conductors in a favorable geological setting for
VMS style mineralisation at Mundarlo NSW.
Cobar Gold Project
In the 2017-18 filed season 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 across the goldfield.
The Company also completed a rock chip and mapping program during reconnaissance at the yet to be drill
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.
Ongoing severe drought conditions affecting the area has also resulted in the surface exposure of a far greater
portion of the goldfield controlled by Helix. Structural and geological ground-truthing of several priority areas
has been possible in recent months, with further plans to map and sample target areas to prioritise for drill
testing.
Helix Resources Limited Consolidated Annual Report 2019
9
Cobar Gold Project (Continued)
An update of the Cobar Gold Resource Resource to JORC2012 compliance is expected to be completed in
2H19 as Helix has received unsolicited interest in the Cobar Gold Project from several industry participants
during the reporting period. Several companies are currently under CA to review technical data for the project.
REVIEW OF OPERATIONS
Figure 7: 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%) and Regional Copper Projects
(HLX 100%)
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 as part of Helix’s broader exploration
campaign. Recent work by Helix on 100% owned adjoining project (Rochford EL8633) identified an area of
sub-cropping gossan approximately 7km SE of the Canbelego Deposit. Auger soil sampling along the trend is
underway and will be assessed as part of the other regional copper targeting, including regional targets at the
Collerina Project.
Figure 8: Location of new gossan zone in a north-west copper bearing trend, approximately 7km along strike
from the Canbelego Copper Deposit.
Helix Resources Limited Consolidated Annual Report 2019
10
REVIEW OF OPERATIONS
Chile Projects
Helix announced a JV with Manhattan Corporation (MHC) covering the Joshua Porphyry Copper Project in
August 2018 and in September 2018 the Company announced a JV with the Japanese Government Agency
JOGMEC over the Samuel Copper Project.
These new Joint Ventures saw AUD$2m spent on the projects by the end of this reporting period with fieldwork
ongoing at the Samuel Project. MHC have subsequently withdrawn from the Joshua Project after not electing
to earn an interest, however, JOGMEC has fast tracked work at the Samuel Project by committing to Stage 2
over a shortened timeframe. Helix is managing the joint venture activities, receiving a management fee, and
utilising our experienced Chilean Team to oversee the field programs for the benefit of all participants.
Helix maintains exposure to this significant copper exploration at no cost to the Company, receives a
management fee that off-sets a significant portion of administration costs in Australia and importantly retains
appropriate equity positions in these copper projects as the assets are advanced and de-risked.
Figure 9: Cutting-edge Drone-based aeromagnetic surveys undertaken on Joshua and Samuel Projects.
Resources
Commodity Category
Copper
Indicated
and
Inferred
Project
Collerina
Interest
100% Helix
Copper
(+Gold)
Indicated
and
Inferred
Blanco Y
Negro, Chile
100% Helix
Copper
Inferred
Gold
Inferred
Canbelego
JV, NSW
Cobar Gold
(Aeris
70%
30%)
90% (Glencore
to 1%
moving
NSR)
Resource
Oxide: 0.63Mt @ 0.7% Cu, for 4,600t Cu
Fresh: 1.4Mt @ 2.6% Cu, 0.2g/t Au for
35,800t Cu and 9,100oz Au
Total Resource: 2.02Mt @ 2.03% Cu,
0.1g/t Au for 40,400t Cu & 9,400oz Au (at
0.5% Cut-off) – 2012 JORC7
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
1.5Mt @ 1.2% Cu for 18,000t Contained Cu
(at 0.3% Cu Cut-off) –JORC 20045
2.6Mt @ 1.2g/t Au for 100,000oz
(0.3 g/t Au cut off) JORC 20046
Helix Resources Limited Consolidated Annual Report 2019
11
REVIEW OF OPERATIONS
Review of Material Changes
There are no changes to the resource from the previous reporting statement for projects Blanco Y Negro,
Canbelego, Cobar Gold, and Collerina Copper.
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.
7.
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.
For more information on the Collerina resource estimate, refer to ASX announcement dated 11 June 2019. Helix is not aware of
any new information or data that materially effects the information included in the said announcement
Helix Resources Limited Consolidated Annual Report 2019
12
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 is aware of the 4th edition of the ASX principle and recommendations being released and has
decided to adopt those recommendations in the coming year.
The Company’s Corporate Governance Statement for the year ended 30 June 2019 was approved by the
Board on 30 September 2019 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 Consolidated Annual Report 2019
13
DIRECTORS’ REPORT
The Directors of Helix Resources Limited (“Helix” or “the Company”) present their Report together with the
financial statements of Helix Resources Limited and its controlled entities (“the Group”) for the year ended 30
June 2019.
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:
Peter Lester
Non-Executive Chairman – Appointed 25 October 2018
Mr Lester is a qualified Mining Engineer and has over 40 years of experience in the mining industry. Mr Lester
has held senior executive positions with North Ltd, Newcrest Mining Limited, Oxiana/Oz Minerals Limited and
Citadel Resource Group Limited. Mr Lester’s experience covers operations, project and business development
and general corporate activities including Mergers and Acquisitions and capital raising. Mr Lester has served
on several ASX listed and private mining boards and is currently a Non-Executive Director of Millennium
Minerals Ltd and Non-Executive Chairman of White Rock Minerals Ltd.
Gary Lethridge BCom, CA, FCIS, FGIA, MAICD
Non-Executive Chairman – Resigned 25 October 2018
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 BAppSc(Geol), GDip(Comp), MBA, MAIMM
Non-Executive Director
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.
Helix Resources Limited Consolidated Annual Report 2019
14
DIRECTORS’ REPORT
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
Peter Lester
Tim Kennedy
Company
Millennium Minerals Limited, White Rock Minerals Ltd, Kidman Resources
Ltd, Nord Gold SE (London)
Millennium Minerals Limited, Sipa Resources 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:
P Lester
M Wilson
J Macdonald
T Kennedy
Number of Ordinary
Securities
Number of Options over
Ordinary Shares
736,895
3,505,434
10,846,764
300,000
3,000,000
3,000,000
3,000,000
3,000,000
COMPANY SECRETARY
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.
CORPORATE
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 $720,037
(2018: $348,200).
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 Consolidated Annual Report 2019
15
DIRECTORS’ REPORT
Review Of Operations
The Group’s activities are contained in releases to the ASX on a quarterly basis, discussed in a separate
section of this Consolidated 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
Major corporate events include:
In October 2018, the Company completed a share placement raising $900,000 at $0.03 per share
before costs, and issued 1,750,000 options to advisors;
In October 2018, Mr Lethridge resigned from his position as Non-Executive Chairman and Mr Lester
was appointed as Non-Executive Chairman;
In November 2018, 13,150,000 Class A options expired unexercised, and the Company cancelled
1,000,000 Class C Employee options;
On 30 November 2018, the Company held an AGM with all resolutions passed;
In December 2018, 12,000,000 unlisted options were issued to director and employees, exercisable
at $0.065 each with an expiry date of 30 November 2021;
In April 2019, 1,750,000 Class E options expired unexercised;
In May 2019, 500,000 Class B options expired unexercised.
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 matter or circumstance has arisen since 30 June 2019 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
A discussion of likely developments in the Group’s operations in future financial years and the expected results
of those operations are set out in the Review of Operations above.
Share Options
As at the date of this report, there were 17,000,000 options on issue at various exercise prices and expiry
periods. Refer to the remuneration report for further details of the options held by 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 Consolidated Annual Report 2019
16
DIRECTORS’ REPORT
REMUNERATION REPORT [AUDITED]
This remuneration report sets out the remuneration information for Directors and Key Management Personnel
(‘KMP’) of the Company for the year ended 30 June 2019. KMP are defined as those persons having authority
and responsibility for planning, directing and controlling the major activities of the Group, directly or indirectly
including any Director (whether executive or otherwise) of the parent.
The information provided within this remuneration report has been audited as required by section 308(3C) of
the Corporations Act 2001.
To help preserve the company’s cash position, the Board spent considerable time focusing on its remuneration
framework and policy reflecting on past feedback from stakeholders and significant cost reduction measures.
The individuals included in this report are:
Non-Executive Directors
Mr P Lester
Mr G Lethridge
Mr J Macdonald
Mr T Kennedy
Non-Executive Chairman (Appointed 25 October 2018)
Non-Executive Chairman (Resigned 25 October 2018)
Non-Executive Director
Non-Executive Director
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 given the size of the Company, that the current Board members will 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 and that Mr Timothy Kennedy will chair such
discussions.
The Board (operating under the formal charter of the Nomination and Remuneration Committee) is responsible
for reviewing and recommending the remuneration arrangements for the Executive and Non-Executive
Directors and KMP each year in accordance with the Company’s remuneration policy approved by the Board.
This includes an annual remuneration review and performance appraisal for the Managing Director and other
executives, including their base salary, short and long-term incentives, bonuses, superannuation, termination
payments and service contracts.
Further information relating to the role of the Nomination & Remuneration Committee, which is assumed by
the Board, can be found within the Corporate Governance section of the Company’s website,
www.helix.net.au.
Overall Remuneration Framework
The Board recognises that the Company’s performance and ultimate success in project delivery depends very
much on its ability to attract and retain highly skilled, qualified and motivated people. At the same time,
remuneration practices must be transparent to shareholders and be fair and competitive taking into account
the nature, complexity and size of the organisation.
Helix Resources Limited Consolidated Annual Report 2019
17
DIRECTORS’ REPORT
Overall Remuneration Framework (Continued)
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.
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 Consolidated Annual Report 2019
18
DIRECTORS’ REPORT
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
9,000,000 options as LTI’s to directors during the year (2018: 3,000,000).
Value of Options Awarded, Exercised and Lapsed During the Year
2019
Value of
Options
Granted
During
the Year
$
Fair
Value
Per
Option
$
Grant
Date
Exercise
Price
$
Expiry
Date
Value of
Options
Exercised
during
the year
$
Value of
Options
Lapsed or
Forfeited
During the
Year
$
Number of
Options
Lapsed or
Forfeited
During the
Year
Number of
Options
Held at Date
of
Resignation
Mr P Lester
34,426 30 Nov 2018 0.0115
0.065
30 Nov 2021
Mr G Lethridge
-
-
-
-
-
Mr M Wilson
34,426 30 Nov 2018 0.0115
0.065
30 Nov 2021
Mr J Macdonald
34,426 30 Nov 2018 0.0115
0.065
30 Nov 2021
Mr D Hanna
-
-
-
-
-
-
-
-
-
-
-
-
-
10,475
1,000,000
2,000,000
68,433
3,000,000
68,433
3,000,000
-
-
-
-
-
2018
Value of
Options
Granted
During
the Year
$
Fair
Value
Per
Option
$
Grant
Date
Exercise
Price
$
Expiry
Date
Mr T Kennedy
58,498
6 Apr 2019 $0.0195
$0.0607
5 Apr 2021
Mr M Naylor
-
-
-
-
-
Value of
Options
Exercised
during
the year
$
Value of
Options
Lapsed or
Forfeited
During the
Year
$
Number of
Options
Lapsed or
Forfeited
During the
Year
-
-
-
-
-
-
Number of
Options
Held at Date
of
Resignation
-
3,000,000
Grant of Long Term Incentives
The following options over ordinary shares were issued to KMP during the year:
P Lester
G Lethridge
J MacDonald
M Wilson
D Hanna
30 June 2019
30 June 2018
3,000,000
-
3,000,000
3,000,000
-
-
3,000,000
-
-
-
All options issued to Directors and KMP are issued for nil consideration. All options issued carry no dividend
or voting rights. When exercised, each option is converted into one ordinary share pari passu with existing
ordinary shares.
Helix Resources Limited Consolidated Annual Report 2019
19
DIRECTORS’ REPORT
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.
Details of Remuneration
Short Term Employee Benefits
Post-
Employm
ent
Benefits
2019
Salary
& Fees
Bonus
Non-
Monetary
Superann
uation
Long-
Term
Benefits
Annual
& Long
Service
Leave
Share Based Payments
Shares Options (3)
% of
Remune
ration
Total
Performance
Related
$
$
$
$
$
$
$
$
$
Non – Executive Directors
P Lester (1)
32,858
G Lethridge (2)
20,320
J Macdonald
36,530
T Kennedy
36,530
Executive Directors
M Wilson
200,000
Key Management Personnel
D Hanna (4)
-
Total
326,238
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,121
1,930
3,470
3,470
-
-
-
-
19,000
17,394
-
-
30,991
17,394
-
-
-
-
-
-
-
21,469
37%
57,448
-
-
22,250
21,469
27,719
35%
41%
61,469
67,719
21,469
8%
257,863
-
-
-
92,126
466,749
-
-
-
-
-
-
-
(1) Mr Lester was appointed on the 25 October 2018.
(2) Mr Lethridge resigned on the 25 October 2018.
(3) 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.
(4) Mr Hanna resigned as Company Secretary on the 1 August 2018.
Helix Resources Limited Consolidated Annual Report 2019
20
DIRECTORS’ REPORT
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 (3)
% of
Remune
ration
Total
Performance
Related
$
$
$
$
$
$
$
$
$
Non – Executive Directors
G Lethridge
54,795
J Macdonald
36,530
T Kennedy (1)
13,590
M Naylor (2)
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 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.
(2) Mr Naylor resigned from the position of non-executive Director on 16 February 2018.
(3) 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.
No short-term cash bonuses included as paid or accrued for during the year ended 30 June 2019 (2018: nil).
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.
Additional Information
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
2015
2016
2017
2018
2019
Other income
72,161
27,720
22,495
43,940
63,995
Net Profit/(Loss)
(4,301,431)
(1,502,964)
(6,312,894)
(348,200)
(720,037)
Share Price
Loss per share (cents)
Dividends
$0.028
(1.64)
Nil
$0.07
(0.54)
Nil
$0.037
(1.94)
Nil
$0.037
(0.09)
Nil
$0.014
(0.17)
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.
Helix Resources Limited Consolidated Annual Report 2019
21
DIRECTORS’ REPORT
Service Agreements (Continued)
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
P Lester (2)
G Lethridge (3)
M Wilson
J Macdonald
T Kennedy
55,000
60,000
Not specified
Not Specified
Not specified
Not specified
Not Specified
Not specified
219,000
Not specified
Not specified
Not specified
40,000
40,000
Not specified
Not specified
Not specified
Not specified
Not specified
Not specified
(1) Inclusive of 9.5% Superannuation guarantee contributions
(2) Mr Lester was appointed on the 25 October 2018.
(3) Mr Lethridge resigned on the 25 October 2018.
Options held by Directors and Key Management Personnel
The number of options over ordinary shares in the Company held during the financial year by each Director of
Helix Resources Limited and other KMP of the Company, including their personally related parties, are set out
below.
Director/Key
Management
Personnel
Balance as at
1 July 2018
Options
Granted during
year as
remuneration
P Lester
- (2)
3,000,000 (4)
G Lethridge
3,000,000
-
M Wilson
3,000,000
3,000,000 (4)
J Macdonald
3,000,000
3,000,000 (4)
T Kennedy
3,000,000
-
Options
Exercised
during year
Other
changes
during year
Balance as
at 30 June
2019
Options
vested &
exercisable at
end of year
-
-
-
-
-
-
3,000,000
1,000,000
(1,000,000) (3)
2,000,000 (1)
2,000,000 (1)
(3,000,000) (5)
3,000,000
1,000,000
(3,000,000) (5)
3,000,000
1,000,000
-
3,000,000
2,000,000
(1) Balance as at the date of resignation.
(2) Balance as at date of commencement.
(3) Options not vested and forfeited at resignation.
(4) On 11 December 2018, unlisted options exercisable at $0.065 on or before 10 December 2021 were issued.
(5) Options expired on 15 November 2018.
Helix Resources Limited Consolidated Annual Report 2019
22
DIRECTORS’ REPORT
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.
No shares were issued as part of remuneration.
Director/Key
Management
Personnel
P Lester
G Lethridge
M Wilson
Balance as at
1 July 2018
- (2)
200,000
3,505,434
J Macdonald
10,077,500
T Kennedy
D Hanna
-
1,996,501
(1) Balance as at the date of resignation.
(2) Balance as at date of commencement.
Purchased
Disposed
Other
Movements
Balance as at
30 June 2019
-
-
-
769,264
300,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
200,000 (1)
3,505,434
10,846,764
300,000
1,996,501 (1)
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 2019, whilst the Board did not engage the formal services of external
remuneration consultants, it did hold informal discussions with such consultants. In addition, the Board utilised
publicly available remuneration benchmarking surveys prepared by an international recruitment agency.
Voting and comments made at the Company’s last Annual General Meeting
Helix received approximately 82% of “yes” votes on its Remuneration Report for the financial year ending 30
June 2018 at its 2018 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.
Helix Resources Limited Consolidated Annual Report 2019
23
DIRECTORS’ REPORT
The Company has entered into an agreement with the Directors and Officers to indemnify them against any
claim and related expenses, which arise as a result of work completed in their respective capacities.
The Company has not otherwise, during or since the financial year indemnified or agreed to indemnify an
officer or auditor of the Company or of any related body corporate against a liability incurred as such an officer
or auditor.
Environmental Regulations
The Group is subject to environmental regulations under laws of the Commonwealth and State. The Group
has a policy of complying with its environmental performance obligations and at the date of this report, is not
aware of any breach of such regulations.
Meetings of Directors
The number of meetings held during the year by Company Directors (including meetings of committees of
Directors) and the number of those meetings attended by each Director was:
Board of Directors’
Meetings
Remuneration Committee
Meetings
Audit Committee
Meetings
Entitled to
Attend
Attended
Entitled to
Attend
Attended
Entitled to
Attend
Attended
4
1
5
5
5
4
1
5
5
5
-
-
-
-
-
-
-
-
-
-
-
1
2
2
2
-
1
2
2
2
P Lester
G Lethridge
M Wilson
J Macdonald
T Kennedy
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 25 of the financial report.
Dated at Perth on the 30 September 2019.
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
Managing Director
30 September 2019
Helix Resources Limited Consolidated Annual Report 2019
24
Central Park, Level 43
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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 2019, 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, 30 September 2019
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
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Central Park, Level 43
152-158 St Georges Terrace
Perth WA 6000
Correspondence to:
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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 consolidated statement
of financial position as at 30 June 2019, the consolidated statement of profit or loss and other comprehensive income,
consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes
to the consolidated financial statements, including a summary of significant accounting policies, and the Directors’
declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:
a giving a true and fair view of the Group’s financial position as at 30 June 2019 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.
Material uncertainty related to going concern
We draw attention to Note 1(u) in the financial statements, which indicates that the Group incurred a net loss of $720,037
during the year ended 30 June 2019, and as of that date, the Group’s cash outflows from operating and investing activities
totalled $1,367,893. As stated in Note 1(u), these events or conditions, along with other matters as set forth in Note 1(u),
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.
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.
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
Exploration and evaluation assets – refer to Note 6
How our audit addressed the key audit matter
Our procedures included, amongst others:
At 30 June 2019, the carrying value of exploration and
evaluation assets was $9.273 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.
(cid:120) obtaining the management reconciliation of capitalised
exploration and evaluation expenditure and agreeing to the
general ledger;
(cid:120) reviewing management’s area of interest considerations
against AASB 6;
(cid:120) 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; and
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.
(cid:120) 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 2019, 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 17 to 23 of the Directors’ report for the year ended 30 June
2019.
In our opinion, the Remuneration Report of Helix Resources Limited, for the year ended 30 June 2019 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, 30 September 2019
The Directors of the company declare that:
DIRECTORS DECLARATION
1.
The consolidated financial statements and notes, as set out on pages 30 to 60 are in accordance with
the Corporations Act 2001 and:
a)
the Australian Accounting
Comply with Australian Accounting Standards
Interpretations) and the Corporations Regulations 2001 and other mandatory reporting
requirements; and
Give a true and fair view of the financial position as at 30 June 2019 and of the performance for
the year ended on that date of the group; and
Complies with International Financial Reporting Standards as disclosed in Note 1.
(including
b)
c)
2.
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
Managing Director
Signed at Perth on 30 September 2019
Helix Resources Limited Consolidated Annual Report 2019
29
CONSOLIDATED STATEMENT OF PROFIT OR LOSS & OTHER
COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2019
Other income
Employment Costs
Audit and Accountancy
Corporate Marketing
Directors’ Fees
Depreciation
Foreign Exchange Loss/(Gain)
Information Technology Costs
Premises Costs
Professional Services
Travel expenses
Share Based Payments
Gain on Sale of Mineral Interest
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)
Note
13
CONSOLIDATED
2019
$
2018
$
63,995
(35,595)
(84,686)
(25,140)
43,940
(61,188)
(39,951)
(11,842)
(239,388)
(379,553)
5
(13,469)
(45,020)
(6,345)
(5,984)
(36,593)
(67,761)
(2,956)
(124,932)
-
(23,862)
(426)
(14,228)
(58,787)
(25,797)
(11,473)
(55,678)
500,000
(27,223)
(117,321)
(160,974)
(720,037)
(348,200)
-
-
(720,037)
(348,200)
-
-
(720,037)
(348,200)
(0.17)
(0.17)
(0.09)
(0.09)
14
18
20
20
This statement should be read in conjunction with the Notes to the Financial Statements
Helix Resources Limited Consolidated Annual Report 2019
30
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2019
Current Assets
Cash and Cash Equivalents
Trade and Other Receivables
Total Current Assets
Non-Current Assets
Financial Assets
Plant and Equipment
Exploration and Evaluation Asset
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and Other Payables
Provisions
Other Liabilities
Total Current Liabilities
Total Liabilities
Net Assets
Equity
Share Capital
Reserves
Accumulated Losses
Total Equity
CONSOLIDATED
Note
2019
$
2018
$
2
3
4
5
6
7
8
9
366,391
80,823
447,214
900,629
64,442
965,071
233,436
219,788
43,275
55,380
9,272,553
7,954,697
9,549,264
8,229,865
9,996,478
9,194,936
348,836
133,826
337,632
820,294
820,294
159,609
104,038
-
263,647
263,647
9,176,184
8,931,289
10
11
12
66,517,020
65,677,689
190,979
395,415
(57,531,815)
(57,141,815)
9,176,184
8,931,289
This statement should be read in conjunction with the Notes to the Financial Statements
Helix Resources Limited Consolidated Annual Report 2019
31
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2019
Cash Flow From Operating Activities
Payments to suppliers and employees
Interest received
Other receipts
Net cash (used in) operating activities
Cash Flow From Investing Activities
CONSOLIDATED
Note
2019
$
2018
$
(676,381)
(1,306,388)
2,945
18,794
-
143,111
2(b)
(673,436)
(1,144,483)
Payments for capitalised exploration & evaluation expenditure
(1,128,387)
(1,497,060)
Proceeds from JV
Payments for JV explorations expenditure
Payments from purchase of plant & equipment
Proceeds from sale of plant & equipment
Payments for security deposits
Proceeds from security deposits
Proceeds from sale of mineral interest
Net cash (used in) investing activities
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
9
9
2,240,121
(1,794,691)
(1,500)
-
-
-
(3,500)
7,000
(10,000)
(69,521)
-
-
37,007
500,000
(694,457)
(1,027,074)
900,000
1,200,000
(60,000)
(94,015)
840,000
1,105,985
(527,893)
(1,064,572)
(6,345)
(426)
900,629
1,965,627
Cash and cash equivalents at End of Financial Year
2(a)
366,391
900,629
This statement should be read in conjunction with the Notes to the Financial Statements
Helix Resources Limited Consolidated Annual Report 2019
32
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2019
CONSOLIDATED
2019
Note
Share Capital
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
Options vested during financial year
Options issued during financial year
Options expired during financial
year
Options lapsed or forfeited during
financial year
Total transactions with owners
Loss for the year
Other comprehensive income for
the year
Total comprehensive income
Total equity at the end of the
financial year
CONSOLIDATED
65,677,689
395,415
(57,141,815)
8,931,289
10
900,000
10, 11
(60,669)
11
11
11
11
-
-
-
-
-
669
39,058
85,874
-
-
-
-
(319,562)
319,562
(10,475)
10,475
900,000
(60,000)
39,058
85,874
-
-
839,331
(204,436)
330,037
964,932
-
-
-
-
-
-
(720,037)
(720,037)
-
-
(720,037)
(720,037)
66,517,020
190,979
(57,531,815)
9,176,184
2018
Note
Share Capital
Reserves
Accumulated
Losses
Share Capital
Total equity at the beginning of the
financial year
Issue of shares during the financial
year
Share issue costs during the
financial year
Options vested during financial year
Options issued during financial year
10
10
11
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
This statement should be read in conjunction with the Notes to the Financial Statements
Helix Resources Limited Consolidated Annual Report 2019
33
1)
Summary of Accounting Policies
NOTES TO THE FINANCIAL STATEMENTS
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 plant and
equipment. 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 2019. 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 Consolidated Annual Report 2019
34
NOTES TO THE FINANCIAL STATEMENTS
1)
Summary of Accounting Policies (Continued)
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%
- Diminishing Value 22.5%
Motor Vehicles:
De-recognition and disposal
An item of 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.
Helix Resources Limited Consolidated Annual Report 2019
35
1)
Summary of Accounting Policies (Continued)
NOTES TO THE FINANCIAL STATEMENTS
e)
Exploration and Evaluation
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable
area of interest. These costs are only carried forward to the extent that they are expected to be
recouped through the successful development of the area or where activities in the area have not
yet reached a stage that permits reasonable assessment of the existence of economically
recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit in the year
in which the decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are
amortised over the life of the area according to the rate of depletion of the economically
recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of
continuing to carry forward costs in relation to that area of interest.
f)
g)
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.
Financial Instruments
Recognition, initial measurement and derecognition
Financial assets and financial liabilities are recognised when the Group becomes a party to the
contractual provisions of the financial instrument and are measured initially at fair value adjusted
by transactions costs, except for those carried at fair value through profit or loss, which are
measured initially at fair value. Subsequent measurement of financial assets and financial
liabilities are described below.
Financial assets are derecognised when the contractual rights to the cash flows from the financial
asset expire, or when the financial asset and all substantial risks and rewards are transferred. A
financial liability is derecognised when it is extinguished, discharged, cancelled or expires.
Classification and subsequent measurement of financial assets
Except for those trade receivables that do not contain a significant financing component and are
measured at the transaction price in accordance with AASB 15, all financial assets are initially
measured at fair value adjusted for transaction costs (where applicable)
For the purpose of subsequent measurement, financial assets other than those designated and
effective as hedging instruments are classified into the following categories upon initial
recognition:
• Amortised cost
• Fair value through profit or loss (FVPL)
• Equity instruments at fair value through other comprehensive income (FVOCI)
• Debt instruments at fair value through other comprehensive income (FVOCI)
Helix Resources Limited Consolidated Annual Report 2019
36
NOTES TO THE FINANCIAL STATEMENTS
1)
Summary of Accounting Policies (Continued)
g)
Financial Instruments (Continued)
All income and expenses relating to financial assets that are recognised in profit or loss are
presented within finance costs, finance income or other financial items, except for impairment of
trade receivables which is presented within other expenses. Classifications are determined by
both:
• The entities business model for managing the financial asset
• The contractual cash flow characteristics of the financial assets
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following conditions (and
are not designated as FVPL):
• They are held within a business model whose objective is to hold the financial assets and
collect its contractual cash flows
• The contractual terms of the financial assets give rise to cash flows that are solely payments
of principal and interest on the principal amount outstanding
After initial recognition, these are measured at amortised cost using the effective interest method.
Discounting is omitted where the effect of discounting is immaterial. The Group’s cash and cash
equivalents, trade and most other receivables fall into this category of financial instruments as
well as security deposits that were previously classified as held-to-maturity under AASB 139.
There are no FVPL and FVOCI instruments for the group.
Impairment of financial assets
AASB 9’s impairment requirements use more forward-looking information to recognize expected
credit losses – the ‘expected credit losses (ECL) model’. Instruments within the scope of the new
requirements included loans and other debt-type financial assets measured at amortised cost and
FVOCI, trade receivables, contract assets recognised and measured under AASB 15 and loan
commitments and some financial guarantee contracts (for the issuer) that are not measured at
fair value through profit or loss.
The Group considers a broader range of information when assessing credit risk and measuring
expected credit losses, including past events, current conditions, reasonable and supportable
forecasts that affect the expected collectability of the future cash flows of the instrument.
In applying this forward-looking approach, a distinction is made between:
• Financial instruments that have not deteriorated significantly in credit quality since initial
recognition or that have low credit risk (‘Stage 1’) and
• Financial instruments that have deteriorated significantly in credit quality since initial
recognition and whose credit risk is not low (‘Stage 2’).
‘Stage 3’ would cover financial assets that have objective evidence of impairment at the reporting
date. ‘12-month expected credit losses’ are recognised for the first category while ‘lifetime
expected credit losses’ are recognised for the second category. Measurement of the expected
credit losses is determined by a probability-weighted estimate of credit losses over the expected
life of the financial instrument.
Helix Resources Limited Consolidated Annual Report 2019
37
NOTES TO THE FINANCIAL STATEMENTS
1)
Summary of Accounting Policies (Continued)
g)
Financial Instruments (Continued)
Trade and other receivables
The Group makes use of a simplified approach in accounting for trade and other receivables and
records the loss allowance at the amount equal to the expected lifetime credit losses. In using
this practical expedient, the Group uses its historical experience, external indicators and forward-
looking information to calculate the expected credit losses using a provision matrix.
Classification and measurement of financial liabilities
As the accounting for financial liabilities remains largely unchanged from AASB 139, the Group’s
financial liabilities were not impacted by the adoption of AASB 9. However, for completeness, the
accounting policy is disclosed below.
The Group’s financial liabilities include trade and other payables.
Financial liabilities are initially measured at fair value, and, where applicable, adjusted for
transaction costs unless the Group designated a financial liability at fair value through profit or
loss. Subsequently, financial liabilities are measured at amortised cost using the effective interest
method except for derivatives and financial liabilities designated at FVPL, which are carried
subsequently at fair value with gains or losses recognised in profit or loss (other than derivative
financial instruments that are designated and effective as hedging instruments).
All interest-related charges and, if applicable, changes in an instrument’s fair value that are
reported in profit or loss are included within finance costs or finance income.
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.
Helix Resources Limited Consolidated Annual Report 2019
38
1)
Summary of Accounting Policies (Continued)
NOTES TO THE FINANCIAL STATEMENTS
h)
Employee Benefits (Continued)
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).
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
Income from the disposal of assets is recognised when the Group has passed control of the goods
or other assets to the buyer.
Interest on bank deposits is recognised as income as it accrues. Interest revenue is recognised
using the effective interest rate method, which, for floating rate financial assets, is the rate inherent
in the instrument and is net of GST.
Helix Resources Limited Consolidated Annual Report 2019
39
1)
Summary of Accounting Policies (Continued)
NOTES TO THE FINANCIAL STATEMENTS
j)
k)
l)
m)
Revenue (Continued)
Other income is recognised when it is received or when the right to receive payment is
established.
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.
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).
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.
Helix Resources Limited Consolidated Annual Report 2019
40
1)
Summary of Accounting Policies (Continued)
NOTES TO THE FINANCIAL STATEMENTS
n)
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.
o)
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.
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.
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.
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.
p)
q)
r)
Helix Resources Limited Consolidated Annual Report 2019
41
NOTES TO THE FINANCIAL STATEMENTS
1)
Summary of Accounting Policies (Continued)
r)
New and Amended Accounting Standards adopted by the Group (Continued)
AASB 15 Revenue from Contracts with Customers and AASB 9 Financial Instruments (2014)
became effective for periods beginning on or after 1 January 2018 and 1 July 2018 respectively.
Accordingly, the Group applied AASB 15 and AASB 9 for the first time to the interim period ended
31 December 2018. Any other new or amended Accounting Standards or Interpretations that are
not yet mandatory have not been early adopted. Changes to the Group’s accounting policies
arising from these standards are summarised below:
AASB 15 Revenue from Contracts with Customers
The Group has adopted AASB 15 from 1 July 2018. To determine whether to recognise revenue,
the standard follows a 5-step process:
Identifying the contract with a customer
Identifying the performance obligations
1.
2.
3. Determining the transaction price
4. Allocating the transaction price to the performance obligations
5. Recognising revenue when/as performance obligation(s) are satisfied.
The total transaction price for a contract is allocated amongst the various performance obligations
based on their relative stand-alone selling prices. The transaction price for a contract excludes
any amounts collected on behalf of third parties. Revenue is recognised either at a point in time
or over time, when (or as) the Group satisfies performance obligations by transferring the
promised goods or services to its customers.
Contract liabilities are recognised for consideration received in respect of unsatisfied performance
obligations and reports these amounts as other liabilities in the statement of financial position.
Similarly, if the Group satisfies a performance obligation before it receives the consideration, the
Group recognises either a contract asset or a receivable in its statement of financial position,
depending on whether something other than the passage of time is required before the
consideration is due.
Contracts with customers are presented in the consolidated statement of financial position as a
contract liability, contract asset, or receivable, depending on the relationship between the Group’s
performance and the customer's payment. Customer acquisition costs and costs to fulfil a contract
can, subject to certain criteria, be capitalised as an asset and amortised over the contract period.
Applying AASB 15 using the modified retrospectively approach has had no impact on timing of
revenue recognition or on the presentation of the statement of financial position.
AASB 9 Financial Instruments
The Group has adopted AASB 9 from 1 July 2018. The standard introduced new classification
and measurement models for financial assets. A financial asset shall be measured at amortised
cost if it is held within a business model whose objective is to hold assets in order to collect
contractual cash flows which arise on specified dates and that are solely principal and interest. A
debt investment shall be measured at fair value through other comprehensive income if it is held
within a business model whose objective is to both hold assets in order to collect contractual cash
flows which arise on specified dates that are solely principal and interest as well as selling the
asset on the basis of its fair value.
Helix Resources Limited Consolidated Annual Report 2019
42
1)
Summary of Accounting Policies (Continued)
NOTES TO THE FINANCIAL STATEMENTS
r)
New and Amended Accounting Standards adopted by the Group (Continued)
All other financial assets are classified and measured at fair value through profit or loss unless
the entity makes an irrevocable election on initial recognition to present gains and losses on equity
instruments (that are not held-for-trading or contingent consideration recognised in a business
combination) in other comprehensive income ('OCI'). Despite these requirements, a financial
asset may be irrevocably designated as measured at fair value through profit or loss to reduce
the effect of, or eliminate, an accounting mismatch. For financial liabilities designated at fair value
through profit or loss, the standard requires the portion of the change in fair value that relates to
the entity's own credit risk to be presented in OCI (unless it would create an accounting
mismatch). New simpler hedge accounting requirements are intended to more closely align the
accounting treatment with the risk management activities of the entity. New impairment
requirements use an 'expected credit loss' ('ECL') model to recognise an allowance. Impairment
is measured using a 12-month ECL method unless the credit risk on a financial instrument has
increased significantly since initial recognition in which case the lifetime ECL method is adopted.
For receivables, a simplified approach to measuring expected credit losses using a lifetime
expected loss allowance is available. Applying AASB 9 did not have any impact on the
classification or valuation of financial assets, impairment bookings on trade receivables and other
financial assets.
The Group has adopted the standard in this period but does not have any financial instruments
of which are impacted by the adoption. Thus, there has been no adjustment to opening retained
earnings as at 1 July 2018. Given that the Group does not have any material financial instruments
that are impacted by the adoption of the standard, the Group has not disclosed any accounting
policies with respect to the adoption.
s)
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 have not been early adopted. Those that are relevant to the Group include:
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. Based on the Company’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.
The preliminary assessment is indicative and has not taken fully into consideration the transitional
arrangement or practical expedients available under AASB 16. The assessment is also based
upon current information that may by its nature change between this reporting date and the
application date of AASB 16.
t)
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.
Helix Resources Limited Consolidated Annual Report 2019
43
NOTES TO THE FINANCIAL STATEMENTS
1)
Summary of Accounting Policies (Continued)
t)
Critical Accounting Estimates and Other Accounting Judgements (Continued)
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.
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.
u)
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 2019 of
$720,037 (2018: $348,200) and reported net cash outflows from operating and investing activities
of $1,367,893 (2018: $2,171,557). As at 30 June 2019, the Group had available cash and cash
equivalents of $366,391 (2018: $900,629).
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 Consolidated Annual Report 2019
44
NOTES TO THE FINANCIAL STATEMENTS
2)
Cash and Cash Equivalents
Reconciliation of Cash
a)
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
2019
$
954
365,437
366,391
2018
$
1,073
899,556
900,629
Cash on hand is non-interest bearing. Cash at bank bears floating interest rates between 0.00% and
0.50% (2018: between 0.00% and 0.50%).
b)
Reconciliation of Loss after Income Tax to Cash Flows Provided by Operating Activities
Loss after income tax
Non-cash flows in Loss
Depreciation
Loss on foreign exchange transactions
Share based payments
Revenue from JV
Changes in Net Assets and Liabilities
(Increase) in trade and other receivables
(Decrease) in trade and other payables
Increase in provisions
Net Cash provided by Operating Activities
CONSOLIDATED
2019
$
2018
$
(720,037)
(348,200)
13,469
6,345
124,932
(57,273)
45,020
426
55,678
-
(20,029)
(374,194)
(50,631)
(552,094)
29,788
28,881
(673,436)
(1,144,483)
Non-Cash Financing Activities
c)
During the year ended 30 June 2019, $125,601 options had vested (30 June 2018: $55,678). This
balance included $39,058 options that were issued in prior years (30 June 2018: $32,394).
Funding from Exploration Partners
d)
Included in the statement of cash flows is $2,240,121 proceeds from Chilean projects being farmed in,
and resultant cash outflows of $1,794,691. Refer to Note 9.
Helix Resources Limited Consolidated Annual Report 2019
45
NOTES TO THE FINANCIAL STATEMENTS
3)
Trade and Other Receivables
CURRENT RECEIVABLES
Prepayments
Other Receivables
Total Current Receivables
CONSOLIDATED
2019
$
2018
$
2,965
77,858
80,823
-
64,442
64,442
No current or past due receivables were impaired at the end of the financial year.
4)
Financial Assets
Non-Current
Security Deposits
5)
Plant and Equipment
CONSOLIDATED
2019
$
2018
$
233,436
219,788
2019
$
$
Plant & Equipment
Motor Vehicles
Total
$
Gross Carrying Amount
Balance at 1 July 2018
Additions
Disposals
124,263
1,364
-
161,054
-
-
285,317
1,364
-
Balance at 30 June 2019
125,627
161,054
286,681
Accumulated Depreciation
Balance at 1 July 2018
Depreciation
Depreciation write off on disposal
Balance at 30 June 2019
Net Book Value
30 June 2019
117,570
2,514
-
120,084
112,367
10,955
-
123,322
229,937
13,469
-
243,406
5,543
37,732
43,275
Helix Resources Limited Consolidated Annual Report 2019
46
5)
Plant and Equipment (Continued)
NOTES TO THE FINANCIAL STATEMENTS
2018
$
$
Plant & Equipment
Motor Vehicles
Total
$
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
6)
Exploration and Evaluation Asset
Balance at beginning of the financial year
Expenditure incurred during the year
Impairment losses
Balance at the end of the financial year
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
291,817
3,500
(10,000)
285,317
194,917
45,020
(10,000)
229,937
6,693
48,687
55,380
CONSOLIDATED
2019
$
2018
$
7,954,697
6,255,307
1,317,856
1,699,390
-
-
9,272,553
7,954,697
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 (2018: $nil) against the
carrying value of its exploration and evaluation expenditure.
It should be noted that the requirement for impairment arises from the accounting standards and not
from any geological, technical or prospectivity down-grades of these projects. Whilst there is no certainty
a transaction involving one or more of the projects will occur, the Company continues to receive interest
from third parties and hold these projects and related permits within its portfolio with a view to extracting
value for its shareholders in the near future.
Helix Resources Limited Consolidated Annual Report 2019
47
NOTES TO THE FINANCIAL STATEMENTS
7)
Trade and Other Payables
Trade Payables
Other Payables
Total Trade Payables
All amounts are current and are expected to be settled within 12 months.
8)
Provisions
Annual Leave Provision
Long Service Leave Provision
Total Provisions
9)
Other Liabilities
Other liabilities
CONSOLIDATED
2019
$
236,976
111,860
348,836
2018
$
93,955
65,654
159,609
CONSOLIDATED
2019
$
2018
$
67,850
65,976
56,179
47,859
133,826
104,038
CONSOLIDATED
2019
$
2018
$
337,632
-
Other liabilities represent advances from Manhattan and JOGMEC to fund Chilean exploration
expenditure on the Joshua and Samuel projects respectively.
Joshua Project
A 3,000m diamond drilling program is progressing well with core being cut, sampled and transported to
the lab in batches. Manhattan Corporation Limited (ASX:MHC) is funding this exploration program as
part of its Option commitment under a Heads of Agreement (“HOA”) with Helix’s Chilean technical team
managing the work, and receives a management fee (Note 13). The HOA provides an avenue for
Manhattan to earn up to an 80% interest in the Joshua project in exchange for Helix being free-carried
through to completion of a BFS. Manhattan has elected not to proceed past Stage 1 in June 2019. Key
terms of the HOA include:
• Stage 1: Helix has granted Manhattan an option whereby they can exercise that option by sole
funding of A$1.0 million on the Joshua project within 9 months of the Commencement Date, such
expenditure to be expended on the 3,000m diamond drilling (Option).
Helix Resources Limited Consolidated Annual Report 2019
48
9)
Other Liabilities (Continued)
NOTES TO THE FINANCIAL STATEMENTS
•
If Manhattan exercises the Option by funding the requisite expenditure, it shall have the right to earn
up to an 80% interest in the Joshua project on the following basis:
o Stage 2: Manhattan may earn a 51% Joint Venture interest in the Joshua project by sole
funding the expenditure necessary to complete a further 5,000m of drilling within 18 months
of the Commencement Date.
o Stage 3: If Stage 2 is completed, Manhattan may elect to earn a further 29% (giving it a total
80%) Joint Venture interest by sole funding expenditure up to the completion of a BFS in
respect of the Joshua project.
•
In the event that Helix chooses not to contribute to the Joint Venture after the completion of the BFS
(Stage 3), it will dilute its Joint Venture interest in exchange for an uncapped 1.0% Net Smelter
Return royalty over the Joshua project.
• Helix will be the Manager of the Joshua project during Stage 1, and Manhattan will be the Manager
for Stages 2 and 3, unless Helix and Manhattan mutually agree that Helix is to be retained as
Manager.
• Funds received during the period amounted to $1,040,000.
Samuel Project Joint Venture
A Joint Venture agreement was entered with Japanese Oil, Gas and Metals National Corporation
(“JOGMEC”) to fund exploration of up to US$2.4 million (A$3.4 million) through 3 stages, enabling them
to earn a 60% interest in the Samuel Copper Project. Field work commenced in November with an initial
drone magnetic survey completed in December. Detailed mapping, and an IP survey are expected to
be completed in the first phase. Helix is currently receiving a fee to manage the Joint Venture. The Joint
Venture terms are:
• Stage 1: Contribute US$0.4 million by 31 March 2019 primarily for the purpose of undertaking large-
scale geophysical surveys and mapping of the Samuel porphyry and manto-style copper systems.
• Stage 2: Contribute US$0.8 million by 31 March 2020 primarily for the purpose of undertaking initial
diamond drilling to drill test the identified mineralized systems.
• Stage 3: Contribute US$1.2 million by 31 March 2021 primarily for the purpose of undertaking a
second phase diamond drilling to establish scale and continuity of an identified mineralized system.
• At completion of Stage 3, JOGMEC will earn an option to acquire 60% equity in the project and have
the right to sell their Joint Venture interest by tender to a Japanese company.
• Helix’s Chilean team will manage the project until the completion of Stage 3 with Helix receiving a
management fee for those services.
• Funds received during the period amounted to $1,200,121.
10) Share Capital
CONSOLIDATED
2019
$
2018
$
424,466,692 Fully Paid Ordinary Shares (2018: 394,466,692)
66,517,020
65,677,689
Total Share Capital
66,517,020
65,677,689
Fully paid ordinary shares have no par value, carry one vote per share and carry the right to dividends.
Options carry no voting rights until converted to fully paid ordinary shares.
Helix Resources Limited Consolidated Annual Report 2019
49
10) Share Capital (Continued)
NOTES TO THE FINANCIAL STATEMENTS
2019
2018
No
$
No
$
Fully Paid Ordinary Shares
Balance at beginning of financial year
394,466,692
65,677,689
354,466,692
64,571,704
Share Issue: 30,000,000 Fully Paid
Shares @ $0.03
Share Issue: 40,000,000 Fully Paid
Shares @ $0.03
Share Issue Costs
30,000,000
900,000
-
-
-
-
-
40,000,000
1,200,000
(60,669)
-
(94,015)
Balance at end of financial year
424,466,692
66,517,020
394,466,692
65,677,689
On 19 October 2018, 30,000,000 fully paid ordinary shares were issued to institutional and sophisticated
investors at an issue price of $0.03 per share. The Placement was to raise funds for exploration
expenditure at the Collerina Projects and for working capital.
Capital Management
Management controls the capital of the group in order to maximise the return to shareholders and ensure
that the group can fund its operations and continue as a going concern.
Management effectively manages the group’s capital by assessing the group’s financial risks and
adjusting its capital structure in response to changes in these risks and in the market. These responses
include the management of expenditure and debt levels, distributions to shareholders and share and
option issues.
There have been no changes in the strategy adopted by management to control the capital of the group
since the prior year.
11) Reserves
Unlisted Options
2019
2018
No.
$
No.
$
Balance at beginning of financial year
19,650,000
395,415
16,650,000
339,737
Options issued to consultants (1)
1,750,000
669
-
-
12,000,000
85,874
3,000,000
23,284
Options issued to directors and
employees (2)
Options issued in prior years vesting
during the financial year
Options lapsed during the financial year
(15,400,000)
(319,562)
Options forfeited during the financial
year
(1,000,000)
(10,475)
-
39,058
-
-
-
32,394
-
-
Balance at end of financial year
17,000,000
190,979
19,650,000
395,415
(1) On 19 October 2018, 1,750,000 unlisted options were issued to the Lead Manager (Peloton Capital) upon
successful Placement. The options are exercisable at $0.08 each with an expiry date of 19 April 2019. Refer to
Note 27 for more details.
(2) On 10 December 2018, 12,000,000 unlisted options were issued to director and employees. The options are
exercisable at $0.065 each with an expiry date of 30 November 2021. Refer to Note 27 for more details.
There were no other options on issue as at 30 June 2019 (2018: Nil).
Helix Resources Limited Consolidated Annual Report 2019
50
NOTES TO THE FINANCIAL STATEMENTS
11) Reserves (Continued)
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
Balance at beginning of financial year
Net Loss attributable to members of the parent entity
Unlisted options expired during the financial year
Balance at end of financial year
13) Other Income
Interest income
Other
Total Other Income
14) Other Expenses
Bank Fees
Insurance
Listing costs
Office costs
Other
CONSOLIDATED
2019
$
2018
$
(57,141,815)
(56,793,615)
(720,037)
(348,200)
330,037
-
(57,531,815)
(57,141,815)
CONSOLIDATED
2019
$
2018
$
6,722
57,273
63,995
20,363
23,577
43,940
CONSOLIDATED
2019
$
2018
$
8,358
33,854
49,913
17,835
7,361
5,727
26,059
38,375
42,780
48,033
Total Other Expenses
117,321
160,974
15) Commitments
a)
Operating Lease Commitments
Not later than 1 year
Later than 1 year but not later than 5 years
CONSOLIDATED
2019
$
2018
$
21,762
-
21,762
53,088
22,392
75,480
Helix Resources Limited Consolidated Annual Report 2019
51
NOTES TO THE FINANCIAL STATEMENTS
15) Commitments (Continued)
The lease for the office is for a 2 years term. As at reporting date, there was a balance of 5 months
remaining on the office lease.
Exploration Expenditure Commitments
b)
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 $29,555 (2018: $29,445). No minimum work expenditure commitments exist
over any of the Company’s tenements (2018: $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
2019
$
2018
$
326,238
417,122
5,933
11,461
30,991
48,385
8,443
9,704
30,920
49,067
92,126
52,587
-
-
92,126
52,587
466,749
518,776
As at 30 June 2019, $6,667 of Mr Macdonald’s director fees (2018: $6,667) was accrued for and unpaid
(2018: $8,250 for Mr Hanna’s consultancy 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.
Helix Resources Limited Consolidated Annual Report 2019
52
NOTES TO THE FINANCIAL STATEMENTS
17) Related Party and Directors’ Disclosures (Continued)
b)
Parent entity
The ultimate parent entity of the Group is Helix Resources Limited.
18)
Income Tax
CONSOLIDATED
2019
$
2018
$
Accounting profit / (loss) before tax from continuing operations
(720,037)
(348,200)
Accounting profit / (loss) before tax
(720,037)
(348,200)
Reconciliation of Income Tax Expense / (Benefit) to Accounting Profit /
(Loss)
Prima facie tax payable / (benefit) at Australian rate of 27.5% (2018: 27.5%)
(198,010)
(95,755)
Prima facie tax payable / (benefit) at Chilean rate of 25% (2018: 24%)
-
-
Adjusted for tax effect of the following:
- taxable / non-deductible items
- non-taxable / deductible items
- adjustment for change of Australian tax rate
- adjustment for change of Chilean tax rate
- income tax benefit not brought to account
Income tax expense / (benefit)
72,629
15,311
(381,948)
-
-
463,408
(62,453)
-
569,782
(382,964)
-
-
Statement of Profit or Loss and Other Comprehensive Income
Deferred income tax
Relating to origination and reversal of temporary differences
373,721
480,493
Adjustment for change of Australian tax rate
-
-
Australian temporary differences not brought to account
373,721
(480,493)
Income tax expense / (benefit) reported in statement of profit or loss & other
comprehensive income
-
-
Unrecognised Deferred Tax Balances:
Australian deferred tax asset losses
Chilean deferred tax asset losses
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:
11,869,678
11,470,602
2,025,784
1,498,852
13,895,462
12,969,454
2,239,403
2,188,193
2,239,403
2,188,193
Deferred tax liabilities in relation to exploration and evaluation expenditure
(2,239,403)
(2,188,193)
Deferred tax liabilities
Net deferred tax
(2,239,403)
(2,188,193)
-
-
Helix Resources Limited currently satisfies the conditions to be a small business entity.
Helix Resources Limited Consolidated Annual Report 2019
53
NOTES TO THE FINANCIAL STATEMENTS
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.
Current Assets
Cash
Trade and Other
Receivables
Non-Current Assets
Australia
Chile
Total
2019
2018
2019
2018
2019
2018
323,853
899,015
42,538
1,614
366,391
900,629
78,147
64,442
2,676
-
-
80,823
64,442
43,275
55,380
Plant and Equipment
43,275
55,380
-
Mineral Assets
9,406,644
8,088,788
5,517,964
5,517,964
14,924,608
13,606,752
Impairment expense
(134,091)
(134,091)
(5,517,964)
(5,517,964)
(5,652,055)
(5,652,055)
Other Financial Assets
220,419
206,771
Total Assets
9,938,247
9,180,305
13,017
58,231
13,017
233,436
219,788
14,631
9,996,478
9,194,936
Current Liabilities
Trade payables
Other liabilities
Provisions
298,311
159,609
50,525
-
-
337,632
133,826
104,038
-
Total Liabilities
432,137
263,647
388,157
Revenue
Depreciation
63,781
43,940
(13,469)
(45,020)
214
-
Loss before tax
(711,034)
(348,200)
(9,003)
-
-
-
-
-
-
-
348,836
159,609
337,632
-
133,826
104,038
820,294
263,647
63,995
43,940
(13,469)
(45,020)
(720,037)
(348,200)
Helix Resources Limited Consolidated Annual Report 2019
54
20) Earnings Per Share
Basic loss per share
Diluted loss per share
NOTES TO THE FINANCIAL STATEMENTS
COMPANY
2019
2018
Cents Per
share
Cents Per
share
(0.17)
(0.17)
(0.09)
(0.09)
Basic& Diluted Loss per Share
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
2019
$
2018
$
(720,037)
(348,200)
No.
No.
Weighted average number of ordinary shares
415,343,404
377,809,158
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:
Unlisted Options
2019
No.
2018
No.
17,000,000
19,650,000
Since the Group made a loss 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
Cobar Gold Project
Canbelego
Percentage Interest
90% (Glencore moving to 1% NSR Royalty) (2018: 90%)
(Glencore)
70% (2018: 70%) (Aeris Resources)
Principal Exploration
Activities
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.
The Group’s interest in exploration expenditure in the above mentioned joint operations is as follows:
Canbelego Joint Operation
70%
Restdown Joint Operation
90%
Non-Current Assets
Mineral Assets
Additions
Impairment
Carrying Amount
2,655,868
67,673
-
2,723,541
1,121,147
26,062
-
1,147,209
Helix Resources Limited Consolidated Annual Report 2019
55
22) Financial Instruments
NOTES TO THE FINANCIAL STATEMENTS
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).
2018
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 2019, 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 $3,361 (2018: $10,182) and an
increase in equity by $3,361 (2018: $10,182). 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 $3,361
(2018: $10,182) and a decrease in equity by $3,361 (2018: $10,182).
Helix Resources Limited Consolidated Annual Report 2019
56
NOTES TO THE FINANCIAL STATEMENTS
22) Financial Instruments (Continued)
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
%
$
$
$
$
$
2019
Financial Assets
Current Receivables
Cash and cash equivalent assets
0.45%
Security deposits and deposits at
financial institutions
1.71%
Financial Liabilities
Trade Payables (all payable
within 30 days)
2018
Financial Assets
Current Receivables
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)
.
-
-
-
-
-
-
-
-
-
-
-
-
-
337,449
-
-
80,823
80,823
28,942
366,391
-
233,436
-
233,436
337,449
233,436
109,765
680,650
-
-
-
899,556
-
-
-
-
236,976
236,976
236,976
236,976
64,442
64,442
1,073
900,629
-
219,788
-
219,788
899,556
219,788
65,515
1,184,859
-
-
-
-
93,955
93,955
93,955
93,955
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.
Helix Resources Limited Consolidated Annual Report 2019
57
NOTES TO THE FINANCIAL STATEMENTS
22) Financial Instruments (Continued)
The Group’s exposures to foreign currency risk at the end of the reporting period, expressed in
Australian dollars, were as follows:
Cash and cash equivalents
Trade and other payables
2019
CLP
27,988
50,525
78,513
2018
CLP
1,614
-
1,614
Liquidity Risk
The Group manages liquidity risk by monitoring forecast cash flows and ensuring that sufficient cash
and financial assets are available to meet the current and future commitments of the Group. The Group’s
operations require it to raise capital on an on-going basis to fund its planned exploration program and
to commercialise its tenement assets. If the Group does not raise capital in the short term, it can continue
as a going concern by reducing planned but not committed exploration expenditure until funding is
available and/or entering into joint venture arrangements where exploration is funded by the joint venture
partner.
Credit Risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in
financial loss to the Group. The Group has adopted the policy of only dealing with credit worthy
counterparties and obtaining sufficient collateral or other security where appropriate, as a means of
mitigating the risk of financial loss from defaults. All cash and cash equivalents are held with financial
institutions with a credit rating of AA3 or above.
The Group measures risk on a fair value basis. The maximum credit risk on financial assets of the Group
which have been recognised on the statement of financial position, other than investments in shares, is
generally the carrying amount, net of any provisions for doubtful debts.
23) 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 $233,436 (2018: $219,788) for tenement holdings.
24) Remuneration of Auditors
Auditing the financial report
2019
$
2018
$
29,586
29,451
The auditor of Helix Resources Limited for the 2019 financial year is Grant Thornton Audit Pty Ltd.
Helix Resources Limited Consolidated Annual Report 2019
58
NOTES TO THE FINANCIAL STATEMENTS
25) 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
(Loss) for the year
Total Comprehensive (Loss)
26) Subsidiaries
Name
Country of
Incorporation
Principal Activity
Oxley Exploration Pty Ltd*
Leichhardt Resources (QLD) Pty
Ltd*
Helix Resources (Overseas) Pty
Ltd*
Australia
Australia
Australia
Helix Resources Chile Limitada*
Chile
* All Subsidiaries’ primary activities are mineral exploration.
Mineral
Exploration
Mineral
Exploration
Mineral
Exploration
Mineral
Exploration
27) Share Based Payments
2019
$
2018
$
400,640
1,170,227
9,207,681
7,960,041
9,608,321
9,130,268
432,137
198,979
-
-
432,137
198,979
66,517,020
65,677,689
190,979
395,415
(57,531,815)
(57,141,815)
9,176,184
8,931,289
(390,000)
(348,199)
(390,000)
(348,199)
Percentage
Held
2019
Percentage
Held
2018
100%
100%
100%
100%
100%
100%
100%
100%
Options
On 19 October 2018, 1,750,000 unlisted options were issued to the Lead Manager (Peloton Capital)
upon successful Placement. The options are exercisable at $0.08 each with an expiry date of 19 April
2019. All the options vested on grant date. The Black Scholes option pricing model was used to value
these options and inputs used are as stated in the table below. As options expired, balance was
transferred into accumulated losses.
Grant Date
Expiry Date
Exercise Price
Share Price
Volatility
Risk Free Rate
19 Oct 2018
19 Apr 2019
$0.08
$0.031
75%
1.49%
Helix Resources Limited Consolidated Annual Report 2019
59
27) Share Based Payments (Continued)
NOTES TO THE FINANCIAL STATEMENTS
On 10 December 2018, 12,000,000 unlisted options were issued to director and employees. The options
are exercisable at $0.065 each with an expiry date of 30 November 2021. Options vest 1/3 on grant
date, 1/3 on 30 November 2019, and 1/3 on 30 November 2020. The Black Scholes option pricing model
was used to value these options and inputs used are as stated in the table below.
Grant Date
Expiry Date
Exercise Price
Share Price
Volatility
Risk Free Rate
30 Nov 2018
30 Nov 2021
$0.065
$0.031
84%
1.93%
The following table illustrates the options exercisable at the end of the financial year.
Grant Date
Expiry Date
Exercise Price
2019
2018
16 Nov 2015
15 Nov 2018
12 May 2016
12 May 2019
3 May 2017
3 May 2020
6 Apr 2018
6 Apr 2021
30 Nov 2018
30 Nov 2021
$0.0675
$0.0675
$0.0673
$0.0607
$0.065
-
-
2,000,000
2,000,000
4,000,000
8,000,000
13,150,000
500,000
2,000,000
1,000,000
-
16,650,000
The weighted average remaining contractual life for the share-based payment options outstanding as
at 30 June 2019 was 2.12 years (2018: 0.98 years).
The range of exercise prices for share-based payment options outstanding as at the end of the year
was $0.0607 to $0.0673 (2018: $0.0607 to $0.0675). Weighted average exercise price as at 30 June
2019 is 6.45 cents (2018: 6.65 cents).
28) Subsequent Events
No matter or circumstance has arisen since 30 June 2019 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 Consolidated Annual Report 2019
60
ADDITIONAL ASX INFORMATION
AS AT 25 SEPTEMBER 2019
Number Of Shares Held
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Total
Total holders
104
149
235
719
423
1,630
Units
31,883
453,504
2,042,279
29,673,439
392,265,587
424,466,692
% Units
0.01
0.11
0.48
6.99
92.41
100.00
Minimum $500.00 parcel at $0.015 per unit
33,334
875
10,345,796
Minimum Parcel
Size
Holders
Units
Percentage Held By 20 Largest Shareholders
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
Mr Robert Patrick Hearne
Gee Vee Pty Ltd
Mr Chris Carr + Mrs Betsy Carr
First Growth Funds Limited
Gemtaz Pty Limited
Mr Bulent Besim
Aquila Resources Ltd
Creekwood Nominees Pty Ltd
Mr William Henry Hernstadt
Wythenshawe Pty Ltd
Rombola Family Pty Ltd
Gotha Street Capital Pty Ltd
Shipsters Investments Pty Ltd
Hsbc Custody Nominees (Australia) Limited
Mrs Liliana Teofilova
Mrs Melanie Jane Chessell
Technica Pty Ltd
Mr Gregory John Munyard + Mrs Maria Ann
Munyard + Miss Carmen Helene Munyard
27,000,000
13,117,759
12,649,252
11,000,000
10,000,000
9,933,334
9,550,000
9,250,000
7,681,293
7,250,000
5,900,000
5,600,000
5,400,000
4,521,924
4,486,849
4,181,900
3,731,493
3,700,000
3,513,332
3,512,825
6.36
3.09
2.98
2.59
2.36
2.34
2.25
2.18
1.81
1.71
1.39
1.32
1.27
1.07
1.06
0.99
0.88
0.87
0.83
0.83
Totals: Top 20 holders of Ordinary Fully Paid Shares (TOTAL)
161,979,961
38.16
Helix Resources Limited Consolidated Annual Report 2019
61
ADDITIONAL ASX INFORMATION
AS AT 25 SEPTEMBER 2019
Voting Rights
One vote for each ordinary share held in accordance with the Company's Constitution.
Substantial Shareholders
Shareholder
Yandal Investments Pty Ltd
Directors' Interest In Share Capital
Number of
Shares
27,000,000
% of Issued
Capital
6.36
Director
P Lester
M Wilson
J Macdonald
T. Kennedy
Total
Number Of Options Held
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Total
Fully Paid Ordinary Shares
Unlisted Options
736,895
3,505,434
10,846,764
300,000
15,389,093
3,000,000
3,000,000
3,000,000
3,000,000
12,000,000
Total holders
Units
% Units
-
-
-
-
11
11
-
-
-
-
17,000,000
17,000,000
-
-
-
-
100.00
100.00
No option holders hold more than 20% of a particular class of the Company’s unlisted options.
The Company has the following classes of options on issue at 25 September 2019 as detailed below. Options do not carry
the rights to vote.
Class
Terms
Class C Unlisted Options Exercisable at 6.73 cents, expiring on or before 3 May 2020
Class D Unlisted Options Exercisable at 6.07 cents, expiring on or before 6 April 2021
Class F Unlisted Options Exercisable at 6.5 cents, expiring on or before 30 November 2021
No. of
Options
2,000,000
3,000,000
12,000,000
17,000,000
Helix Resources Limited Consolidated Annual Report 2019
62
ADDITIONAL ASX INFORMATION
AS AT 25 SEPTEMBER 2019
Tenement Schedule
Tenement
Name
Mineral
Ownership
NSW COPPER & GOLD PROJECTS (INCL. JV's)
EL8768
(Formerly
EL6336)
EL6140
EL6501
EL6739
EL7438
EL7439
EL7482
EL8433
EL8633
EL8608
EL8845
EL8710
EL8096
EL6105
Collerina
Copper/Gold
HLX 100% precious and base metals
Restdown
South Restdown
Muriel Tank
Quanda
Fiveways
Little Boppy
Boundary
Rochford
Gold
Gold
Gold
Copper/Gold
Copper/Gold
Copper/Gold
Copper/Gold
Copper/Gold
Yanda Creek
Copper/Gold
Darbalara
Honeybugle
Copper/Gold
Copper/Gold
Helix 90%, Glencore moving to 1% NSR royalty
Helix 90%, Glencore moving to 1% NSR royalty
Helix 90%, Glencore moving to 1% NSR royalty
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
Mundarlo
Copper/Basemetals
HLX 80%, Private Partner 20%
Canbelego
Copper/Gold
Helix 70%, Aeris Resources 30%
CHILE PROJECTS
EXPLORATION CONCESSIONS
Joshua
(13 concessions)
Bogarin
(13 concessions)
Joshua
Samuel
Copper/Gold
Copper/Gold
EXPLOITATION CONCESSIONS
Blanco Y Negro
1/20
Joshua
(5 concessions)
Bogarin
(6 concessions)
Blanco Y Negro
Copper/Gold
Joshua
Samuel
Copper/Gold
Copper/Gold
Abbreviations and Definitions used in Schedule:
EL or E
Exploration License
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
Helix Resources Limited Consolidated Annual Report 2019
63