ANNUAL REPORT
FOR THE YEAR ENDED 30 JUNE 2020
TABLE OF CONTENTS
CHAIRMAN’S REVIEW ...................................................................................................................................... 1
CORPORATE DIRECTORY .............................................................................................................................. 2
REVIEW OF OPERATIONS ............................................................................................................................... 3
CORPORATE GOVERNANCE ........................................................................................................................ 20
DIRECTORS’ REPORT .................................................................................................................................... 21
AUDITOR’S INDEPENDENCE DECLARATION ............................................................................................. 32
INDEPENDENT AUDITOR’S REPORT ........................................................................................................... 33
DIRECTORS’ DECLARATION ........................................................................................................................ 37
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ......... 38
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ......................................................................... 39
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY .......................................................................... 40
CONSOLIDATED STATEMENT OF CASH FLOWS ...................................................................................... 41
NOTES TO THE FINANCIAL STATEMENTS ................................................................................................. 42
ADDITIONAL ASX INFORMATION ................................................................................................................. 72
CHAIRMAN’S REVIEW
Dear Shareholders,
I am pleased to present Helix’s 2020 Annual Report.
2019/20 financial year saw your Company experience ongoing exploration success at the Collerina Copper
and Cobar Gold Projects and raise sufficient funds to move aggressively on both projects, primarily on the
Cobar Gold Project. As the 2020/21 financial year starts, the Company is pursuing these exploration activities,
focussing on further resource definition of the Cobar region gold and copper projects.
The Company’s low cash position at the end of the current financial year was boosted subsequently in July
2020, with a placement and entitlement offer that raised approximately $1.85m (before costs). The raising saw
a number of new shareholders come on to the register with the Company being well funded to pursue the
planned drilling campaign at the Cobar Gold Project amid a strong gold price environment.
The Cobar Gold Project continues to demonstrate an exciting geological and structural framework indicative
of the large high-grade gold systems present in the region. Helix currently has exploration programs across
the Amity, Reward, Battery Tank, Lone Hand, Girl in Blue, Boundary, Link and Republic prospects, all of which
have exhibited strong encouragement from earlier drilling. The objective of the program now underway is to
determine scale and ultimately increase our gold JORC Resources, to allow decisions to be made on initial
mining studies.
Early 2020, the Company announced the identification of new copper zones at the Collerina Copper Project
which have the potential to further extend the current copper resource at the deposit. The interim Indicated
and Inferred resource estimate for the Collerina Deposit currently stands at 2.02 million tonnes grading 2.03%
Copper, 0.1g/t Au containing 40,400 tonnes of copper, 9,400 ounces of gold within an additional, larger
Exploration Target (see ASX announcement dated 11 June 2019). The new copper target zones confirm the Exploration
Target, bolstered by high-grade copper intercepts and presence of strong off-hole EM responses in the drilling
so far. Regionally, first pass auger sampling taken over 400x100m grids show a series of copper anomalies
warranting further exploration work. A conceptual open pit mining study commenced at the end of the 2019/20
financial year and has continued into the new year. The purpose of the study is to identify the likely boundaries
of a starter open pit and areas where additional drilling would be required to firm up shallow copper resources
and suitable pit designs.
Work continues at our other NSW prospects including regional targets such as Yathella on the Collerina
Copper Trend, Bijoux on the Rochford Copper trend, south of the Canbelego copper deposit and the emerging
VMS prospective Mundarlo Project near Gundagai.
Shareholders continue to retain exposure to our projects in Chile, including the ByN Copper and Gold deposit,
the Joshua Porphyry Copper Project and the Samuel Copper Project.
Finally, the year has also been a challenging one for many with the spread of COVID-19 across the World.
Your Company also felt the effects, with weaker equity markets in the last few months of the 2019/20 financial
year. Temporary salary reductions for staff and the waiving of all board fees by directors were put in place for
the 3 months April to June. I would like to thank my fellow Board members and our loyal staff for their support
in these measures.
Following the well supported capital raising, the year ahead looks to be one filled with some exciting news flow
with the Cobar Gold Project drilling well underway and Collerina Copper Project progressing, including through
initial studies. I would also like to acknowledge the patience and continued support of shareholders as Helix
continues to unlock value from its internally generated exploration asset portfolio.
Yours faithfully,
Peter Lester
Executive Chairman
CORPORATE DIRECTORY
Directors
Peter Lester
Jason Macdonald
Timothy Kennedy
Executive Chairman
Non-Executive Director
Non-Executive Director
Share Registry
Computershare Investor Services Pty Limited
Level 11, 172 St Georges Terrace
Perth, WA 6000
General Manager – Geology
Michael Wilson
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
Securities Exchange
The Company securities are quoted on the
Australian Securities Exchange Limited
ASX Code: HLX
GPO Box 2975
Melbourne, VIC 3001
Phone: 1300 850 505 (within Australia)
+61 3 9415 4000 (outside Australia)
Fax: +61 3 9473 2500
Email: www.investorcentre.com/contact
Web: www.computershare.com
Auditor
HLB Mann Judd
Level 4, 130 Stirling Street
Perth, WA 6000
PO Box 8124
Perth BC, WA 6849
T: +61 8 9227 7500
F: +61 8 9227 7533
W: www.hlb.com.au
E: mailbox@hlbwa.com.au
REVIEW OF OPERATIONS
The strategy of Helix Resources Limited (“Helix” or “the Company”) is to advance our internally generated
asset portfolio, with a primary focus on our strategic commodities, copper and gold. Utilising the Company’s
deep geological knowledge of its asset portfolio and corporate expertise, Helix creates and looks to extract
intrinsic value for the benefit of its shareholders.
During this financial year, Helix successfully identified new positions of copper mineralisation outside the
maiden resource at Collerina. These new zones, both in the hanging wall and footwall of the Central Zone
Resource envelope, illustrate the additional scale potential of this greenfield Helix discovery. A comprehensive
geological review of the Cobar Gold Project was also undertaken, and access to the northern portion of the
Battery Tank goldfield was negotiated for the first time this year. Whilst COVID-19 restrictions affected travel
and fieldwork in the final quarter of the financial year, Helix used this time to complete several desktop studies,
which will now focus our exploration strategy in Central NSW for the remainder of 2020 and onward into
development studies.
NSW COBAR REGION COPPER AND GOLD PROJECTS
Background
Helix holds a high-quality project portfolio in one of Australia’s best regions for recent mineral discoveries, the
Cobar mining district – NSW. This district hosts long-lived operating mines (150 years of mining operations)
and has excellent access to infrastructure. Helix is continuing to carry out targeted exploration programs to
define further precious and base metal mineralisation to add to its established copper and gold resources in
this highly prospective region.
Figure 1: Helix’s Central NSW Projects – strategic asset portfolio in a richly endowed mineral province
REVIEW OF OPERATIONS
Cobar Gold Project
The Cobar Gold Project is 30km east-southeast of Aurelia’s Peak Gold Operations and only 16km from the Mt
Boppy Gold Mine (historic production 417,000oz at 12.2g/t average grade).
The project shares similar geological and structural controls to the nearby Peak Trend deposits, being relatively
short strike sediment hosted and structure related gold deposits. The Cobar Gold project resource estimate
was defined below historic prospects (Sunrise, Good Friday and Battery Tank) and an internally generated
greenfield discovery (Boundary).
Whilst a high-level mining study assessment is yet to be conducted, the “from surface” nature of the gold
mineralisation suggests the deposits may be amenable to initial open cut mining methods. There remains
significant potential for locating additional gold mineralisation throughout the broader goldfield.
The deposits were mostly delineated by Helix with RC and diamond drilling completed in drilling campaigns
between 2011 and 2017.The Mineral Resource is defined by a total of 135 RC and diamond drill holes for
15,390m for a total discovery cost per ounce of approximately A$25 per ounce.
The Mineral Resources have been classified as Inferred Mineral Resources in accordance with the JORC
Code, 2012 Edition and are shown in Table A. This table represents the total resource from deposits and is
reported using a cut-off grade of 0.4 g/t Au and a higher cut-off grade of 1.2g/t Au.
Resource interpretations and wireframes were prepared using a nominal 0.3g/t Au cut-off grade. The
boundaries were generally modelled as sharp for this resource.
Table A: Cobar Gold Project 2019 Mineral Resource Estimate (0.4 g/t Au Cut-off) 1
Deposit
Sunrise
Good Friday
Boundary
Battery Tank
Total
Classification
Inferred
Inferred
Inferred
Inferred
Type
Oxide/Trans
Oxide/Trans
Oxide/Trans
Oxide/Trans
Million Tonnes
1.58
0.45
1.54
0.18
3.75
Au g/t
1.1
0.9
0.9
1.0
1.0
(Rounding discrepancies may occur in summary tables)
Au oz
56,400
13,700
42,800
5,900
118,800
Table B: Cobar Gold Project 2019 Mineral Resource Estimate (1.2g/t Au Cut-off) 1
Deposit
Sunrise
Good Friday
Boundary
Battery Tank
Total
Classification
Inferred
Inferred
Inferred
Inferred
Type
Oxide/Trans
Oxide/Trans
Oxide/Trans
Oxide/Trans
Million Tonnes
0.50
0.10
0.22
0.05
0.87
Au g/t
2.1
1.7
1.8
1.9
2.0
(Rounding discrepancies may occur in summary tables)
Au oz
33,100
5,300
12,900
3,000
54,300
1 Helix confirms that it is not aware of any new information or data that materially affects the Mineral Resource information included in
Helix ASX release dated 25 November 2010, 22 February 2011, 24 May 2011, 13 July 2011, 17 August 2011, 4 October 2012, 24 January
2017, 17 July 2017, 23 August 2017, 6 November 2019, 25 May 2020, 23 July 2020, 6 August 2020 and 27 August 2020. All material
assumptions and technical parameters underpinning the estimates in those releases continue to apply and have not materially changed.
REVIEW OF OPERATIONS
Key Features of Cobar Gold Project
▪ Potential for the delineation of substantial gold deposits as evidenced from previous drilling which
has returned intersections including –
o 20m @ 25.5g/t Au and 39m @ 2.4g/t Au1 – Good Friday,
o 45m @ 3.4g/t Au, and 70m @ 1.1g/t Au1 - Boundary Prospect,
o 28m @ 2.3 g/t Au1: Sunrise Prospect and
o 43m @ 2.3g/t Au1 at Battery Tank.
▪ An Inferred 118,000oz gold JORC2012 oxide gold resource (refer to tables A & B) – derived from these four
prospects, with opportunity to significantly expand with further drilling.
▪ Resource grade intersections from near surface in first-pass drilling, and high-grade rockchips at
new prospects requiring immediate follow-up drilling.
o 20m @ 1.1g/t Au1 at Reward Prospect,
o 17.7g/t Au1 rockchip from historically mined lode at Lone Hand Prospect and
o 2.2g/t Au1 from grab sample of spoil at the Girl in Blue Prospect.
▪ Several other historic prospects exist with shafts, pits and dry blowing activity evident, including
Homeward Bound and Republic Prospects.
Mapping along strike of the Reward Prospect has identified numerous zones of sub-cropping “chevron” folds,
an important structural pathfinder also seen nearby to high-grade mineralisation at the Mt Boppy gold deposit.
Figure 2: Left: Chevron folded sediments collected east of a series of substantial historic shafts at the Reward
Prospect during recent mapping. Right: Chevron folds in sediments from a cross-cut on No. 3 Level in the Mt
Boppy Mine (Source: NSW Mineral Resources Publication No.18 – 1913).
Geology Review
During the COVID19 lock-down, a comprehensive technical review was undertaken. Using high
resolution satellite data (photo imagery and spectral data), our structural interpretation, overlaid with both
Company and historic geology, geophysics and geochemical databases. A large gold system model was
developed and a series of specific target areas were identified and prioritised.
The exploration model shows common geological features to Aurelia’s nearby Peak Gold Trend (+4Moz
gold endowment). There, short strike, near vertical deposits of gold and base metal mineralisation to
depth over 1 kilometre, are also hosted in an anticline. The gold mines are typically located on or adjacent
to large regional structures (see Figure 3).
REVIEW OF OPERATIONS
Source: NewGold/Aurelia
Figure 3: Local Peak Trend geology and mines – Left, regional geophysics showing similarity in magnetic
responses of the two host anticlines Narri (Peak Trend: AMI) and Restdown (Cobar Gold Project: HLX)- Right
A recent positive development for Helix at the Cobar Gold Project has been gaining access to the northern
portion of the goldfield, which encompasses the fold closure of the Restdown Anticline (see Figure 3).
This part of the project had not been accessible since Helix’s involvement in the region.
It is believed that no company has had access to the area since at least the early 2000’s, with only minor
surface sampling evident from public domain data, mostly collected in the 1980’s. The limited and broad
spaced surface sampling indicates pathfinder minerals (arsenic and antimony) are both present and
elevated in the fold nose area. The fold nose target zone covers approximately 50km2.
With COVID19 travel restrictions easing, field activities re-commenced in late April 2020. Ongoing
mapping and sampling across the goldfield continued during the last quarter of the financial year,
identifying the important geological pathfinders in the field for targeting further gold mineralisation.
Mapping and collection of rock chip samples identified a strong N-S corridor of gold mineralisation linking
prospects to the south (Lone Hand and Girl in Blue) heading north through Reward, the Link and Republic,
to the emerging prospective areas in the north of the goldfield (see Figure 4).
New rockchip results from the eastern flank of the Reward area (incl. up to 4.13g/t Au, 2.16g/t Au and
2.08g/t Au1) are highly encouraging, and a priority for drill testing along this local trend (2H2020).
These rock chipped areas coincide with a cluster of strong surface gold results over a broader 1.3km
trend, continuing to the NW, where the Link Prospect has returned further significant surface gold rock
chip samples (incl. up to 2.49g/t Au, 2.13g/t Au and 1.14g/t Au1).
In previous broader regional surface sampling, gold results away from mineralised zones were typically
very low or absent. Therefore, any sample results returning over 20ppb Au, particularly when coincident
with pathfinder elements including arsenic, antimony, copper, lead and zinc, warrant follow-up.
Samples collected are currently in the laboratory being assayed for pathfinder elements. Preliminary
pXRF readings indicate pathfinder elements will be important in vectoring toward gold mineralisation,
both in regional sampling and the upcoming drilling.
REVIEW OF OPERATIONS
Figure 4: Broader goldfield image showing current rock chips (circles) previous rock chips (triangles), structural
framework (white lines), northern goldfield target areas (yellow ovals), presence of an increasingly important
NNW mineralising regional structure (yellow hashed line) and regional structural directions NNW, NW and NE
(red arrows).
Collerina Copper Project
Helix’s 100%-owned Collerina Copper Project is located in the highly prospective copper/gold mining and
exploration district known as the Central Lachlan Origin, within central NSW, Australia.
The Collerina Copper Project comprises a tenement package in excess of 1,500km2, including over 85km of
copper-prospective trend. It is surrounded by multiple operating base metal and gold mines within the broader
Cobar Basin (Tritton, Hera, Peak, CSA).
The Central Zone deposit is an internally generated, high-grade copper discovery within the Collerina Copper
Project. High-grade results from previous drilling of the Central Zone deposit include: 11m @ 6.6% Cu, 12m
@ 5.0% Cu, 14m @ 4.0% Cu and 10m @ 3.7% Cu2.
REVIEW OF OPERATIONS
In June 2019, Helix announced a maiden resource estimate for the Central Zone deposit of 2.02 Mt at 2.03%
Cu and 0.1g/t Au for 40kt copper and 9.4koz gold (Indicated and Inferred) (refer Table C). Almost 50% of that
resource tonnage sits in the Indicated categorisation, with the remainder classified as Inferred.
Table C: Central Zone Mineral Resource Estimate (June 2019) (0.5% Cu Cut-off)
Tonnes
Mt
Classification Type
Cu
%
Au
g/t
Cu
t
Indicated
Inferred
Total
Indicated
Inferred
Total
Indicated
Indicated
Inferred
Inferred
Total
Oxide / Transitional
Oxide / Transitional
Oxide /
Transitional
Fresh
Fresh
Fresh
Oxide / Transitional
Fresh
Oxide / Transitional
Fresh
Combined
0.17
0.46
0.63
0.83
0.57
1.40
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
2.0
0.0
0.0
0.0
0.2
0.1
0.2
0.0
0.2
0.0
0.1
0.1
1,900
2,700
4,600
21,800
14,100
35,900
1,900
21,800
2,700
14,100
40,500
Au
oz
200
100
300
6,600
2,500
9,100
200
6,600
100
2,500
9,400
Helix confirms that it is not aware of any new information or data that materially affects the Mineral Resource information included in Helix
ASX release dated 11 June 2019, Interim Maiden Resource at Collerina Copper Project. All material assumptions and technical
parameters underpinning the estimates in that release continue to apply and have not materially changed.
The Central Zone resource 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). The Exploration Target consists of an additional 2 – 5Mt at similar grades of
approximately 1.5 – 3.0% Cu (representing a potential additional 30 – 150kt contained copper)*.
*While the near-surface strike continuity of the Collerina mineralisation is now well understood, the potential
quantity and grade of the Exploration Target remains conceptual until drill tested. Geophysical and structural
evidence provides confidence in the geometry and dimensions, however there has been insufficient drilling
within these new plunge extensions to estimate Mineral Resources in the broader shape. It should be
considered uncertain as to whether further exploration drilling will result in the definition of additional Mineral
Resources within or beyond the Exploration Target envelope.
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 tend to have relatively limited strikes at surface (<300m)
and have significant plunge/dip extents. In the following years from discovery, the Company has carefully and
frugally explored the deposit, to develop a robust geological model, before committing funds to a full drill-out
and testing the depth extents. The Collerina deposit plunge has now been tested to a depth from surface of
approximately 420m (over 1km down plunge), beyond which the Collerina copper system remains open. The
identification of two new target zones outside the Central Zone Resource envelope, and their parallel plunge
extent potential, provides us with confidence that increases in resource inventory should now be expected with
additional drilling at Collerina
Recent Drilling and Geophysics
Downhole Electromagnetic (DHEM) analysis has proven to be a highly effective tool for targeting thicker, higher
grade copper sulphide mineralisation within the Central Zone Resource envelope at Collerina.
Following the 2019-20 drilling, DHEM surveys have continued to be undertaken in select holes. A number of
strong on-hole and off-hole responses have been identified and plates modelled in the new target zones. The
positions of the new plates are consistent with the geological interpretation and boost confidence in the plunge
targets on both the new Northern Target Zone and the new Southern Target Zone (refer Figure 5).
REVIEW OF OPERATIONS
Figure 5: Plan view of the Collerina Deposit, showing the current resource (Orange) within the sulphide ribbon
(Blue) geological interpretation. DHEM modelled plates (White shaded boxes) derived from EM surveys in
CORC111, 116, 117 and 121.
New Northern Target Zone
A strong off-hole conductor down-plunge and down-dip from the key intercept of 4m @ 3.18% Cu and 0.4g/t
Au from 218m, incl. 1m @ 6.44% Cu and 0.8g/t Au from 218m in CORC116, is very encouraging and a priority
target. Both on-hole and off-hole responses were detected in the survey of CORC116, with a localised 500-
600S plate modelled slightly lower and east of the copper mineralisation intersected.
This modelled plate approximates the interpreted position of structurally thickened copper-rich sulphide
mineralisation (refer Figure 6).
Further, a partially constrained broad off-hole conductor has been modelled below and extending northwest
from CORC117 and under CORC118. This is directly up plunge from the key of Intercept 4m @ 3.18% Cu,
0.4g/t Au from 218m in CORC116 (refer Figure 6 and 8). This is consistent with the presence of an interpreted
fold repeat of the copper bearing sulphide target.
The plate was modelled as a broad elongate shape striking toward the northwest, with a conductance of 100
Siemens. This is lower than the down plunge target from CORC116, however, is consistent with the
conductance in the broader Central Zone DHEM surveys (100-250S). This conductor was at the effective limit
of DHEM systems search radius.
REVIEW OF OPERATIONS
Figure 6: Cross section showing down dip Northern Target Zone located over 180m down dip from current
Central Zone Resource envelope
Importantly these conductors indicate that further drilling and diamond tail extensions to test these deeper
target positions, are required as a matter of priority. Similar to the nearby Central Zone, Helix expects to see
zones of copper-bearing sulphide thickening associated with cross-cutting kink bands along the entire plunge
of the Northern Target Zone (refer Figures 6 and 7).
Figure 7: Schematic long section of the Central Zone Resource envelope showing selected intercepts along the
plunge extent of the resource (refer Table C)
REVIEW OF OPERATIONS
Figure 8: Schematic long section of the Northern Target Zone showing selected intercepts and new EM
positions along the plunge extent of the zone down to the FLEM target at depth (Refer Table C)
When combined with the recent drill results, these modelled conductors add confidence to the potential of the
parallel Northern Target Zone target. This copper bearing target zone extends from surface to an untested
Fixed Loop EM (FLEM) target 1.5km down plunge (which is approximately 550m from surface).
New Southern Target Zone
Strong off-hole responses in CORC111 and CORC121 were modelled as converging plates with high
conductance, the off-hole plates from CORC111 have a high conductance of 600-800 Siemens and the plate
modelled from CORC121 had a conductance of 700-900 Siemens.
These plates model below and down plunge of the near-surface oxide/transition copper mineralisation recently
intersected in CORC111, 112 and 120, and based on our geological model, are likely to represent a localised
fold closure.
Importantly, these Southern Target Zone EM plates confirm a target corridor within the plunge extension of the
footwall copper mineralisation behind/below the Central Zone resource (refer Table C). This position has been
poorly drill tested to date.
This breakthrough in understanding may also help Helix vector toward the footwall EM response that was
identified early in the Collerina Deposit’s discovery, yet never satisfactorily tested with drilling.
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.
Helix has continued to work-up regional targets along the broader Collerina Copper Trend with over 1,000 first
pass auger soil samples collected using the Company’s Landcruiser mounted hydraulic auger rig. All samples
collected have been initially tested with a pXRF. Samples from anomalous areas are being sent to a certified
laboratory to assay for precious and base metals. This pXRF work is being utilised during the programs to
prioritise areas for infill, fast-tracking targeting for follow-up drilling.
REVIEW OF OPERATIONS
Collerina South Prospect
Auger sampling has covered the south east extension of the host rocks of the Collerina Deposit, by
approximately another 2km. Whilst sampling to date is on a 100m x 200m grid, and much broader than the
surface sampling over the Collerina Deposit, a pattern of complex folding (mimicking the complexity noted in
the magnetics) appears to be emerging in the copper-in-soil anomalism at this Prospect. This pattern is very
similar to the folding seen at the micro-scale in Collerina Deposit core (refer Figure 9). Thickening of sulphides
on fold noses will be the priority areas to follow-up and infill at the Collerina South Prospect.
Figure 9: Collerina South Prospect: initial copper-in-soils readings mimic the complex folding noted in the
magnetics. Inset: fractal representation showing intense folding of a chalcopyrite vein in drill core from the
Collerina Deposit.
Widgelands NE Prospect
First-pass auger sampling has been undertaken on a 400m x 100m grid over the northern end of the Collerina
Copper trend. Helix has previously reported surface rockchips returning up to 7.3% Cu and 0.5g/t Au from sub-
cropping ironstones in this area (refer ASX ann 13 Feb 2018).
The Collerina Copper Trend bifurcates here with two prospective trends present. These trends continue NNW
on Helix’s Quanda and Honeybugle tenements to become the Tritton Mine and Kurrajong Deposit trends in
Aeris’ Tritton-Girilambone mine camp.
Surface sampling across this target area identified a series of elongate copper-in-soil anomalies that coincide
with geological, magnetic and subtle airborne EM trends. Infill sampling to refine anomalies is planned.
REVIEW OF OPERATIONS
Figure 10: Soil Auger in Widgelands area: copper-in soil anomalism on 400m x 100m sampling is coincident
with the split of the Collerina trend into the regionally extensive Tritton and Kurrajong Trends
Tindalls Prospect
At the Tindalls Prospect area, two historic shafts (approximately 50m deep) are located on a favourable
geological and structural trend (refer Figure 11).
An Ironstone breccia similar to that seen at the Collerina Deposit has been mapped at surface along this trend.
Interpretation of the local Magnetics suggests evidence for multiple deformation events across this area, a key
component to developing structural thickening and copper enrichment at the Collerina Copper Deposit.
The recent auger sampling has confirmed a continuous trend of copper in soil anomalism between the Yathella
Prospect to the North and Max’s Folly to the south (refer Figure 12).
Figure 11: Tindall’s Prospect: Yellow arrows define positions in photos of the two +50m deep historic shafts
approximately 40m apart (E-W strike). Brecciated Ironstones sub-crops along this trend (similar to Collerina
Deposit) - foreground of third photo.
REVIEW OF OPERATIONS
Figure 12: Recent Soil Auger on Collerina Copper Trend with copper in soil anomalies emerging from ongoing
regional soil programs. New copper targets areas circled in yellow.
Further sampling is planned, testing areas including the Homeville Trend, a trend north of the Collerina
Deposit and infill target areas identified from the auger programs so far. This work continues to illustrate the
high value potential targets that are being generated from within Helix’s asset portfolio. The new prospect
areas being targeted have not been subject to modern exploration.
Regional Copper Projects – NSW
Scout mapping was undertaken within the 1.7km x 0.7km copper in soil anomaly called Rochford, 7.5km SE
of the Canbelego Deposit. The prospective zone was initially identified from a cluster of pXRF readings from
the Auger soils completed in 2019, with readings of up to 580ppm Cu. Importantly the copper anomaly is
coincident with the subtle ridgeline hosting a brecciated ironstone.
Initial pXRF readings taken from the sub-cropping brecciated ironstone returned Cu (up to 0.17%), Pb (up to
0.18%), Zn (up to 0.08%) and Bi (up to 0.12%).
Figure 13: photos of gossan from locations flanking a subtle ridge line running NW, within the Rochford copper
in soil anomaly.
REVIEW OF OPERATIONS
Scout mapping has identified several additional areas where ironstones sub-crop. Including an area with an
historic prospector pit, close to an anomalous copper-in-soil reading.
Further mapping was completed early 2020, with infill auger soils and surface geophysics also completed. A
work program for drilling at Rochford has been submitted to the mines department for approval.
The presence of the anomaly over the strike of the host ridgeline all the way to the south eastern boundary of
the tenement led to Helix applying and obtaining interest in a small tenement (EL 8948) directly east of EL8633.
The 12-unit application covers the extensions of this copper trend for approximately another 6km. The
tenement was granted in the first quarter of 2020.
Figure 14: New Copper Target(Rochford Prospect) – Sub-copping ironston, anomalous in Cu, Pb, Zn & Bi,
approximately 7.5km southeast of the Canbelego Copper Deposit (new auger soils – squares - pXRF, previous
soils – circles- Lab assays).
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.
REVIEW OF OPERATIONS
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 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.
Figure 15: Coincident copper-in-soil anomalism and modelled EM conductors in a favorable geological setting
for VMS style mineralisation at Mundarlo NSW.
The project has seen limited fieldwork during 2019-20 as the Company has focussed on the Cobar Region
projects. NSW Geological survey is reviewing drill core as part of a broader VMS study in NSW.
REVIEW OF OPERATIONS
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 16: Location of new gossan zone in a north-west copper bearing trend, approximately 7km along strike
from the Canbelego Copper Deposit.
Chile Projects
Helix maintains exposure to three copper exploration properties, close to infrastructure in Region IV Chile.
With the outbreak of COVID, field activities are currently not possible and the Chilean team has been reduced
and is working to a care and maintenance budget.
Samuel Project
Japanese Oil, Gas and Metals National Corporation (“JOGMEC”) funded and completed Stage 2 of the
exploration drilling phase of the Samuel Copper Project Joint Venture, and commenced Stage 3, funding a
further US$435,000 before COVID shut down exploration activities. Drilling to date at the Samuel project shows
the system to be both fertile and prospective for porphyry and manto style of copper mineralization over the
19km2 target area.
REVIEW OF OPERATIONS
Figure 17: Cutting-edge Drone-based aeromagnetic surveys undertaken on Joshua and Samuel Projects.
Joshua Project
Helix retains 100% ownership of the Joshua project. Work completed to date has identified a large copper
porphyry system, with several drill-ready targets present. Helix is seeking a strategic partner to advance this
copper asset.
ByN (Blanco Y Negro) Project
The ByN copper deposit is on a granted mining lease within trucking distance to several copper production
facilities. Helix is seeking a trade sale or partner to advance this copper asset.
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
moving
to 1%
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
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.
REVIEW OF OPERATIONS
Competent Persons Statement
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled
by Mr M Wilson, a Competent Person and a Member of The Australasian Institute of Mining and Metallurgy. Mr M Wilson is a General
Manager, shareholder and full-time employee of Helix Resources Limited. 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. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.
CORPORATE GOVERNANCE
Helix Resources Limited has made it a priority to adopt systems of control and accountability as the basis for
the administration of corporate governance. Commensurate with the spirit of the ASX Corporate Governance
Council's Corporate Governance Principles and Recommendations ("Principles & Recommendations")
fourth edition, the Company has followed each recommendation where the Board has considered the
recommendation to be an appropriate benchmark for its corporate governance practices.
Where the Company's corporate governance practices follow a recommendation, the Board has made
appropriate statements reporting on the adoption of the recommendation. Where, after due consideration, the
Company's corporate governance practices depart from a recommendation, the Board has offered full
disclosure and reason for the adoption of its own practice, in compliance with the "if not, why not" regime.
The Company’s Corporate Governance Statement for the year ended 30 June 2020 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.
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 2020.
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
Executive Chairman
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 financial services. Mr Lester has served on several ASX listed and
private mining boards and is currently a Non-Executive Director of Millennium Minerals Ltd and White Rock
Minerals Ltd.
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.
Timothy 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.
Michael Wilson B Ec, B Sc (Hons), MAusIMM
Managing Director – Resigned 12 March 2020 to assume the position of General Manager - Exploration
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.
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
Timothy Kennedy
Company
Current: White Rock Minerals Ltd, Kingrose Mining Limited
Previous: Millennium Minerals Limited (Until February 2020)
Current: Sipa Resources Limited
Previous: Millennium Minerals Limited (Until February 2020)
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
J Macdonald
T Kennedy
Number of Ordinary
Securities
Number of Options over
Ordinary Shares
1,105,342
15,635,514
450,000
3,000,000
3,000,000
3,000,000
COMPANY SECRETARY
Benjamin Donovan
Mr Donovan is an experienced Company Secretary, providing Helix with corporate advisory and consultancy
services. Mr Donovan is a member of the Governance Institute of Australia and provides corporate advisory,
IPO and consultancy services to a number of companies. Mr Donovan is currently a company secretary of
several ASX listed and public unlisted companies and has gained experience across resources, agritech,
biotech, media and technology industries. He has extensive experience in listing rules compliance and
corporate governance, having served as a Senior Adviser at the ASX in Perth for nearly 3 years, where he
managed the listing of nearly 100 companies on the ASX. In addition, Mr Donovan has experience in the
capital markets having raised capital and assisted numerous companies on achieving an initial listing on the
ASX, as well as for a period of time, as a private client adviser at a boutique stock broking group.
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 $480,596
(30 June 2019: $720,037) and reported net cash outflows from operating activities of $493,318 (30 June 2019:
$673,436). As at 30 June 2020, the Group had a net asset position of $9,904,434 (30 June 2019: $9,176,184).
Dividends
No dividend has been paid since the end of the previous financial year and no dividend is recommended for
the current period.
Review Of Operations
The Group’s activities are contained in releases to the ASX on a quarterly basis, discussed in a separate
section of this Annual Report as well as on our website at www.helix.net.au. The Company’s strategy continues
to focus on prospective gold and copper regions in Australia and Chile and utilising our corporate and
geological expertise to create and extract value for the benefit of our shareholders.
DIRECTORS’ REPORT
Review Of Operations (Continued)
Mineral Asset Project Highlights
Refer to the Review of Operations.
Corporate
Major corporate events include:
▪
▪ The Company completed a share placement to raise $1,000,000 on 28 November 2019. The
placement was undertaken at $0.016 per share. Morgans Corporate was the lead manager with the
funds raised from institutional, sophisticated and strategic investors. 62,500,000 ordinary shares were
issued using the Company’s 15% placement capacity under ASX Listing Rule 7.1.
In March 2020, Mr Wilson stepped down as Managing Director and appointed as General Manager of
Geology to focus on the rapidly advancing exploration of the Collerina Copper Project.
In May 2020, 2,000,000 Class C options expired unexercised.
In June 2020, a Placement Offer was completed, raising approximately $0.3 million (before costs)
through the issue of 42,446,669 ordinary shares at $0.007 per share.
In June 2020, a Non-Renounceable Entitlement issue of 1 share for every 2 shares held by eligible
shareholders was announced to raise an additional $1.85 million (before costs). This was completed
in July 2020 through the issuance of 264,706,567 ordinary shares at $0.007 per share.
▪
▪
▪
Significant Changes In State Of Affairs
In the opinion of the Directors, other than disclosed elsewhere in this Report, there were no significant changes
in the state of affairs of the Group that occurred during the period under review.
Subsequent Events
On 10 July 2020, the Company issued 264,706,567 ordinary shares at $0.007 per share, raising a total of
$1.85 million (before costs), completing the Non-Renounceable Entitlement issue of 1 share for every 2 shares
held by eligible shareholders as announced on 5 June 2020.
No other matter or circumstance has arisen since 30 June 2020 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 15,000,000 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.
DIRECTORS’ REPORT
REMUNERATION REPORT [AUDITED]
This remuneration report sets out the remuneration information for Directors and other Key Management
Personnel (‘KMP’) of the Company for the year ended 30 June 2020. 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.
All Directors and KMP held their positions for the entire financial year and up to the date of this report unless
otherwise stated.
The individuals included in this report are:
Executive Director
Mr P Lester
Mr M Wilson
Non-Executive Directors
Mr P Lester
Mr J Macdonald
Mr T Kennedy
Executive Chairman (Appointed 13 March 2020)
Managing Director (Resigned 12 March 2020)
Non-Executive Chairman (Resigned 13 March 2020)
Non-Executive Director
Non-Executive Director
Key Management Personnel
Mr M Wilson
General Manager – Geology (Appointed 12 March 2020)
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.
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.
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. No options were issued
as LTI’s to Directors during the year (2019: 9,000,000 options).
DIRECTORS’ REPORT
Long Term Incentives (Continued)
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
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
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
-
-
-
-
-
-
-
10,475
1,000,000 2,000,000
68,433
3,000,000
68,433
3,000,000
-
-
Grant of Long Term Incentives
The following options over ordinary shares were issued to KMP:
P Lester
J MacDonald
M Wilson
30 June 2020
30 June 2019
-
-
-
3,000,000
3,000,000
3,000,000
All options issued to Directors and KMP are issued for nil consideration. All options issued carry no dividend
or voting rights. When exercised, each option is converted into one ordinary share pari passu with existing
ordinary shares.
Non-Executive Remuneration
The policy of the Board is to remunerate Non-Executive Directors in the form of Directors’ fees at market rates
for comparable companies based on their time, commitment and responsibilities. Fees for Non-Executive
Directors are not linked to the performance of the Company to maintain independence and impartiality. In
determining competitive remuneration rates, the Board have historically reviewed local trends among
comparative companies and the industry generally.
Non-Executive Director fees are also determined within an aggregate fee pool which is subject to approval by
shareholders. The aggregate fee pool is currently set at $150,000 per annum which was last approved at the
Annual General Meeting in April 2006. As at the date of this report the level of total Non-Executive Director
remuneration actually paid remains below the maximum amount payable.
DIRECTORS’ REPORT
Details of Remuneration
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. Director’s
salaries were waived in full and management salaries were reduced by 20% for the three months April to June
as part of cost conservation during the COVID-19 crisis.
Short Term Employee Benefits
Post-
Employm
ent
Benefits
2020
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)
37,671
J Macdonald
28,919
T Kennedy
28,919
Executive Directors
M Wilson (2)
150,000
P Lester (1)
2,093
Key Management Personnel
M Wilson (2)
41,818
Total
289,420
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,579
2,747
2,747
-
-
-
14,250
10,385
199
-
3,973
(18,278)
27,495
(7,893)
-
-
-
-
-
-
-
7,477
10,556
7,496
15%
25%
19%
48,727
42,222
39,162
7,477
4%
182,112
3,079
57%
5,371
3,079
10%
30,592
39,164
348,186
-
-
-
-
-
-
(1) Mr Lester was appointed as Executive Chairman on 13 March 2020, having been Non-Executive Chairman up to that date, at no
additional salary to his non-executive fees.
(2) Mr Wilson resigned as Managing Director and was appointed as General Manager – Geology on 12 March 2020.
(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.
DIRECTORS’ REPORT
Details of Remuneration (Continued)
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.
No short-term cash bonuses were paid or accrued for during the year ended 30 June 2020 (2019: 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
2019
2020
Other income
Net (loss)
Share price
Loss per share
(cents)
Dividends
27,720
22,495
43,940
63,995
144,636
(1,502,964)
(6,312,894)
(348,200)
(720,037)
(480,596)
$0.07
(0.54)
$0.037
(1.94)
$0.037
(0.09)
$0.014
(0.17)
$0.014
(0.10)
Nil
Nil
Nil
Nil
Nil
DIRECTORS’ REPORT
Service Agreements
On appointment to the Board all Non-Executive Directors enter into a service agreement in the form of a letter
of appointment. The letter sets out the Company’s policies and terms including compensation relevant to the
Director.
Remuneration and other key terms of employment for the Managing Director and other executives are
formalised in executive service agreements. The agreements provide for payment of fixed remuneration,
performance related cash bonuses where applicable, other allowances and confirm eligibility to participle in
the Company’s STI and LTI plans. The major provisions of the agreements relating to remuneration are set
out below.
Name
Base Salary / Fee (1)
P Lester
M Wilson
J Macdonald
T Kennedy
55,000
219,000
40,000
40,000
Term of
Agreement
Notice Period by
Company
Notice Period
from Executive
Not specified
Not Specified
Not specified
Not specified
Not specified
Not specified
Not specified
Not specified
Not specified
Not specified
Not specified
Not specified
(1) Inclusive of 9.5% Superannuation guarantee contributions
Options held by Directors and Key Management Personnel
The number of options over ordinary shares in the Company held during the financial year by each Director of
Helix Resources Limited and other KMP of the Company, including their personally related parties, are set out
below.
Director/Key
Management
Personnel
Balance as at
1 July 2019
P Lester
M Wilson
3,000,000
3,000,000
J Macdonald
3,000,000
T Kennedy
3,000,000
Options
Granted during
year as
remuneration
Options
Exercised
during year
Other
changes
during year
Balance as
at 30 June
2020
Options
vested &
exercisable at
end of year
-
-
-
-
-
-
-
-
-
-
-
-
3,000,000
2,000,000
3,000,000
2,000,000
3,000,000
2,000,000
3,000,000
3,000,000
Shares Held by Directors and Key Management Personnel
The number of ordinary shares in the Company held during the financial year by each Director of Helix
Resources Limited and other KMP of the Company, including their personally related parties, are set out below.
No shares were issued as part of remuneration.
Director/Key
Management
Personnel
P Lester
M Wilson
J Macdonald
T Kennedy
Balance as at
1 July 2019
Purchased
Disposed
Other
Movements
Balance as at
30 June 2020
-
736,895
3,505,434
10,846,764
300,000
-
-
-
-
-
-
-
-
-
-
-
736,895
3,505,434
10,846,764
300,000
Subsequent to 30 June 2020, shares held by the Directors and Key Management Personnel increased in-line
with the Non-Renounceable Entitlement issue of 1 share for every 2 shares held on 10 July 2020.
DIRECTORS’ REPORT
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 2020, 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 69% of “yes” votes on its Remuneration Report for the financial year ended 30
June 2019 at its 2019 Annual General Meeting. This was decided by way of poll called by the Chairman of the
meeting, as even though the resolution was passed by a majority, a “First Strike” had resulted as more than
25% of the votes cast were against the adoption of the Remuneration Report. The Company received no
specific feedback on its Remuneration Report at the Annual General Meeting.
END OF AUDITED REMUNERATION REPORT
Officers’ Indemnity and Insurance
During the year the Company paid an insurance premium to insure the Directors and Officers of the Company
and related bodies corporate. The Officers of the Company covered by the insurance policy include the
Directors named in this report.
The Directors’ and Officers’ Liability insurance provides cover against all costs and expenses that may be
incurred in defending civil or criminal proceedings that fall within the scope of the indemnity and that may be
brought against the officers in their capacity as officers of the Company or a related body corporate. The
insurance policy does not contain details of the premium paid in respect of individual officers of the Company.
Disclosure of the nature of the liability cover and the amount of the premium is subject to a confidentiality
clause under the insurance policy.
The Company has entered into an agreement with the Directors and Officers to indemnify them against any
claim and related expenses, which arise as a result of work completed in their respective capacities. The
Company has not otherwise, during or since the financial year indemnified or agreed to indemnify an officer or
auditor of the Company or of any related body corporate against a liability incurred as such an officer or auditor.
Environmental Regulations
The Group is subject to environmental regulations under laws of the Commonwealth and State. The Group
has a policy of complying with its environmental performance obligations and at the date of this report, is not
aware of any breach of such regulations.
DIRECTORS’ REPORT
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
P Lester
J Macdonald
T Kennedy
M Wilson
11
11
11
8
11
11
11
11*
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
* Invited to attend as observer post resignation from Board
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 32 of the financial report.
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.
Peter Lester
Executive Chairman
24 September 2020
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the consolidated financial report of Helix Resources Limited for the
year ended 30 June 2020, I declare that to the best of my knowledge and belief, there have been
no contraventions of:
a)
the auditor independence requirements of the Corporations Act 2001 in relation to the
audit; and
b)
any applicable code of professional conduct in relation to the audit.
Perth, Western Australia
24 September 2020
N G Neill
Partner
INDEPENDENT AUDIT REPORT
To the members of Helix Resources Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Helix Resources Limited (“the Company”) and its controlled
entities (“the Group”), which comprises the consolidated statement of financial position as at 30
June 2020, the consolidated statement of profit or loss and other comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows for the
year then ended, and notes to the 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 2020 and of its
financial performance for the year then ended; 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 report, which indicates that a material uncertainty
exists that may cast significant doubt on the Group’s ability to continue as a going concern. Our
opinion is not modified in respect of this matter.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the financial report of the current period. These matters were addressed in the context
of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters. In addition to the matter described in the Material
Uncertainty Related to Going Concern section above, we have determined the matters described
below to be the key audit matters to be communicated in our report.
Key Audit Matter
How our audit addressed the key audit matter
Exploration and evaluation asset
Refer to Note 4
In accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources, the Group
capitalises all exploration and evaluation
including acquisition costs and
expenditure,
subsequently applies
the cost model after
recognition.
Our procedures included but were not limited to
the following:
• We obtained an understanding of the key
processes associated with management’s
review of the carrying values of each area of
interest;
Our audit focused on the Group’s assessment of
the carrying amount of the capitalised exploration
and evaluation asset, as this is one of the most
significant assets of the Group. We planned our
work to address the audit risk that the capitalised
expenditure may no longer meet the recognition
criteria of the standard. In addition, we considered
it necessary
facts and
circumstances existed to suggest that the carrying
amount of an exploration and evaluation asset
may exceed its recoverable amount.
to assess whether
• We considered the Directors’ assessment of
potential indicators of impairment;
• We obtained evidence that the Group has
current rights to tenure of its areas of
interest;
• We examined the exploration budget for the
year ending 30 June 2021 and discussed
with management the nature of planned
ongoing activities;
• We enquired with management, reviewed
ASX announcements and reviewed minutes
of Directors’ meetings to ensure that the
Group had not resolved to discontinue
exploration and evaluation at any of its areas
of interest; and
• We examined the disclosures made in the
financial report.
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 consolidated annual report for the year ended 30 June 2020,
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 accordingly we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives
a true and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001 and for such internal control as the directors determine is necessary to enable the preparation
of the financial report that gives a true and fair view and is free from material misstatement, whether
due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group
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 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.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
-
Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
-
-
- Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial report or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and
events in a manner that achieves fair presentation.
-
We communicate with the directors regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included within the directors’ report for the year ended
30 June 2020.
In our opinion, the Remuneration Report of Helix Resources Limited for the year ended 30 June
2020 complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted
in accordance with Australian Auditing Standards.
HLB Mann Judd
Chartered Accountants
Perth, Western Australia
24 September 2020
N G Neill
Partner
DIRECTORS’ DECLARATION
The Directors of the company declare that:
1.
The consolidated financial statements and notes, as set out on pages 38 to 71 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 2020 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
Peter Lester
Executive Chairman
Signed at Perth on 24 September 2020
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
Other income
Employment costs
Audit and accountancy
Corporate marketing
Directors’ fees
Depreciation expense
Exploration expenditure
Foreign exchange gain / (loss)
Information technology costs
Premises costs
Professional fees
Travel expenses
Share based payments
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
15
16
20
CONSOLIDATED
2020
$
144,636
(67,155)
2019
$
63,995
(35,595)
(76,434)
(102,686)
(13,085)
(25,140)
(129,695)
(239,388)
(58,486)
(38,193)
31,393
(4,010)
(20,068)
(54,581)
(3,280)
(13,469)
-
(6,345)
(5,984)
(36,593)
(49,761)
(2,956)
(49,719)
(124,932)
(18,212)
(23,862)
(123,707)
(117,321)
(480,596)
(720,037)
-
-
(480,596)
(720,037)
-
-
(480,596)
(720,037)
24
24
(0.10)
(0.10)
(0.17)
(0.17)
This statement should be read in conjunction with the Notes to the Financial Statements
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020
Current Assets
Cash and Cash Equivalents
Trade and Other Receivables
Other Assets
Total Current Assets
Non-Current Assets
Exploration and Evaluation Asset
Financial Assets
Plant and Equipment
Right-of-use Asset
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and Other Payables
Other Liabilities
Provisions
Lease Liabilities
Total Current Liabilities
Non-Current Liabilities
Lease Liabilities
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Share Capital
Reserves
Accumulated Losses
Total Equity
Note
CONSOLIDATED
2020
$
2019
$
2
3
9
4
5
6
7
8
9
10
11
11
12
13
14
155,356
113,101
237,565
506,022
366,391
80,823
-
447,214
10,059,074
9,272,553
244,902
233,436
33,114
65,598
43,275
-
10,402,688
9,549,264
10,908,710
9,996,478
830,642
-
106,493
46,624
348,836
337,632
133,826
-
983,759
820,294
20,517
20,517
-
-
1,004,276
820,294
9,904,434
9,176,184
67,676,147
66,517,020
186,595
190,979
(57,958,308)
(57,531,815)
9,904,434
9,176,184
This statement should be read in conjunction with the Notes to the Financial Statements
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
Note
Share
Capital
$
Reserves
Accumulated
Losses
$
$
Total
$
Balance at 1 July 2018
65,677,689
395,415
(57,141,815)
8,931,289
(720,037)
(720,037)
-
-
(720,037)
(720,037)
Loss for the year
Other comprehensive loss
Total comprehensive loss
Transactions with owners
Issue of shares
Share issue costs
Options vested
Options issued
Options expired
Options forfeited
-
-
-
12
12,13
900,000
(60,669)
13
13
13
13
-
-
-
-
-
-
-
-
669
39,058
85,874
-
-
-
-
900,000
(60,000)
39,058
85,874
-
-
(319,562)
319,562
(10,475)
10,475
Balance at 30 June 2019
66,517,020
190,979
(57,531,815)
9,176,184
Loss for the year
Other comprehensive
Total comprehensive loss
Transactions with owners
Issue of shares
Share issue costs
Options vested
Options expired
-
-
-
1,297,127
(138,000)
-
-
-
-
-
-
-
49,719
(54,103)
(480,596)
(480,596)
-
-
(480,596)
(480,596)
-
-
-
1,297,127
(138,000)
49,719
54,103
-
12
12
13
13
Balance at 30 June 2020
67,676,147
186,595
(57,958,308)
9,904,434
This statement should be read in conjunction with the Notes to the Financial Statements
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
Cash Flow From Operating Activities
Payments to suppliers and employees
Interest received
Interest paid on right-of-use asset
CONSOLIDATED
Note
2020
$
2019
$
(489,561)
(676,381)
2,268
(6,025)
2,945
-
Net cash (used in) operating activities
2(b)
(493,318)
(673,436)
Cash Flow From Investing Activities
Payments for capitalised exploration & evaluation expenditure
(701,918)
(1,128,387)
Proceeds from JV
9
1,231,113
2,240,121
Payments for JV explorations expenditure
Payments from purchase of plant & equipment
Payments for security deposits
Net cash (used in) investing activities
Cash Flow From Financing Activities
Proceeds from issue of shares
Share issue costs
Payment of lease principal
Net cash provided by financing activities
Net (decrease) in cash and cash equivalents held
Exchange differences on cash and cash equivalents
Cash and cash equivalents at beginning of financial year
Cash and cash equivalents at end of financial year
2(a)
(1,430,908)
(1,794,691)
-
(1,500)
(10,000)
(10,000)
(911,713)
(694,457)
1,306,927
900,000
(97,542)
(60,000)
(46,782)
-
1,162,603
840,000
(242,428)
(527,893)
31,393
366,391
155,356
(6,345)
900,629
366,391
This statement should be read in conjunction with the Notes to the Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
1)
Summary of Accounting Policies
Financial Reporting Framework
The financial report is a general-purpose financial report that has been prepared in accordance with the
Corporations Act 2001, Australian Accounting Standards and Australian Accounting Interpretations,
other authoritative pronouncements of the Australian Accounting Standards Board and complies with
other requirements of the law. The financial report includes financial statements for Helix Resources
Limited as the Consolidated Entity (“Group”) consisting of Helix Resources Limited (“Helix” or “the
Company”) 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.
Principles of Consolidation
a)
The Group financial statements consolidate those of the Company and all of its subsidiaries as of 30
June 2020. The Company 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.
Cash and Cash Equivalents
b)
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.
NOTES TO THE FINANCIAL STATEMENTS
1)
Summary of Accounting Policies (Continued)
Income Tax
c)
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 differences between the
carrying amount and tax bases of investments in subsidiaries where the parent entity is able to control
the timing of the reversal of the temporary differences and it is probable that the differences will not
reverse in the foreseeable future. Current and deferred tax balances attributable to amounts recognised
directly in equity are also recognised directly in equity.
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.
Plant and Equipment
d)
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.
NOTES TO THE FINANCIAL STATEMENTS
1)
Summary of Accounting Policies (Continued)
Exploration and Evaluation
e)
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.
Leases
f)
As described below, the Group has applied AASB 16 using the modified retrospective approach and
therefore comparative information has not been restated. This means comparative information is still
reported under AASB 117 and IFRIC 4.
Accounting policy applicable from 1 July 2019
The Group as a lessee
For any new contracts entered into on or after 1 July 2019, the Group considers whether a contract is,
or contains a lease. A lease is defined as ‘a contract, or part of a contract, that conveys the right to use
an asset (the underlying asset) for a period of time in exchange for consideration’. To apply this definition
the Group assesses whether the contract meets three key evaluations which are whether:
• The contract contains an identified asset, which is either explicitly identified in the contract or implicitly
specified by being identified at the time the asset is made available to the Group
• The Group has the right to obtain substantially all of the economic benefits from use of the identified
asset throughout the period of use, considering its rights within the defined scope of the contract
• The Group has the right to direct the use of the identified asset throughout the period of use. The
Group assess whether it has the right to direct ‘how and for what purpose’ the asset is used
throughout the period of use.
Measurement and recognition of leases as a lessee
At lease commencement date, the Group recognises a right-of-use asset and a lease liability on the
statement of financial position. The right-of-use asset is measured at cost, which is made up of the initial
measurement of the lease liability, any initial direct costs incurred by the Group, an estimate of any costs
to dismantle and remove the asset at the end of the lease, and any lease payments made in advance
of the lease commencement date (net of any incentives received).
The Group depreciates the right-of-use assets on a straight-line basis from the lease commencement
date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The
Group also assesses the right-of-use asset for impairment when such indicators exist. At the
commencement date, the Group measures the lease liability at the present value of the lease payments
unpaid at that date, discounted using the interest rate implicit in the lease if that rate is readily available
or the Group’s incremental borrowing rate.
Lease payments included in the measurement of the lease liability are made up of fixed payments
(including in substance fixed), variable payments based on an index or rate, amounts expected to be
payable under a residual value guarantee and payments arising from options reasonably certain to be
exercised.
NOTES TO THE FINANCIAL STATEMENTS
1)
Summary of Accounting Policies (Continued)
Leases (Continued)
f)
Subsequent to initial measurement, the liability will be reduced for payments made and increased for
interest. It is remeasured to reflect any reassessment or modification, or if there are changes in in-
substance fixed payments. When the lease liability is remeasured, the corresponding adjustment is
reflected in the right-of-use asset, or profit and loss if the right-of-use asset is already reduced to zero.
The Group has elected to account for short-term leases and leases of low-value assets using the
practical expedients. Instead of recognising a right-of-use asset and lease liability, the payments in
relation to these are recognised as an expense in profit or loss on a straight-line basis over the lease
term. On the statement of financial position, right-of-use assets have been included in property, plant
and equipment (except those meeting the definition of investment property) and lease liabilities have
been included in trade and other payables.
Accounting policy applicable before 1 July 2019
The Group as a lessee
Management applies judgment in considering the substance of a lease agreement and whether it
transfers substantially all the risks and rewards incidental to ownership of the leased asset. Key factors
considered include the length of the lease term in relation to the economic life of the asset, the present
value of the minimum lease payments in relation to the asset’s fair value, and whether the Group obtains
ownership of the asset at the end of the lease term.
Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the
asset, but not the legal ownership, is transferred to entities in the Group are classified as finance leases.
Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to
the fair value of the leased property or the present value of the minimum lease payments, including any
guaranteed residual values. Lease payments are allocated between the reduction of the lease liability
and the lease interest expense for the period.
Leased assets are depreciated over the shorter of their estimated useful lives or the lease term. 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. Lease incentives under operating leases
are recognised as a liability and amortised on a straight-line basis over the life of the lease term.
Financial Instruments
g)
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)
NOTES TO THE FINANCIAL STATEMENTS
1)
Summary of Accounting Policies (Continued)
Financial Instruments (Continued)
g)
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)
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 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.
NOTES TO THE FINANCIAL STATEMENTS
1)
Summary of Accounting Policies (Continued)
Financial Instruments (Continued)
g)
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
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.
Impairment of Non-Financial Assets
h)
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).
Employee Benefits
i)
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.
NOTES TO THE FINANCIAL STATEMENTS
1)
Summary of Accounting Policies (Continued)
Employee Benefits (Continued)
i)
The fair value at grant date is independently determined using a Black-Scholes option pricing model that
takes into account the exercise price, the term of the option, the vesting and performance criteria, the
impact of dilution, the non-tradable nature of the option, the share price at grant date and expected price
volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term
of the option.
The fair value of the options granted excludes the impact of any non-market vesting conditions (for
example, profitability and sales growth targets). Non-market vesting conditions are included in
assumptions about the number of options that are expected to become exercisable. At each reporting
date, the entity revises its estimate of the number of options that are expected to become exercisable.
The employee benefit expense recognised each period takes into account the most recent estimate.
Upon the exercise of options, the balance of the share-based payments reserve relating to those options
is transferred to share capital. The market value of shares issued to employees for no cash consideration
under the Share Plans is recognised as an employee benefits expense with a corresponding increase
in equity when the employees become entitled to the shares.
Interest in Joint Venture Operations
j)
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 25.
NOTES TO THE FINANCIAL STATEMENTS
1)
Summary of Accounting Policies (Continued)
Revenue
k)
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.
Other income is recognised when it is received or when the right to receive payment is established.
Goods and Services Tax
l)
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.
Fair Value Estimation
m)
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.
NOTES TO THE FINANCIAL STATEMENTS
1)
Summary of Accounting Policies (Continued)
Provisions
n)
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.
Foreign Currency Translation
o)
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
p)
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
q)
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
r)
The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by
the Australian Accounting Standards Board that are mandatory for the current reporting period.
Accounting Standards and Interpretations adopted by the Group that are mandatory for the current
reporting period:
NOTES TO THE FINANCIAL STATEMENTS
1)
Summary of Accounting Policies (Continued)
New and Amended Accounting Standards adopted by the Group (Continued)
r)
AASB 16 Leases
AASB 16 replaces AASB 117 Leases and introduces a single lessee accounting model that requires a
lessee to recognise right-of-use assets and lease liabilities for all leases with a term of more than 12
months, unless the underlying asset is of low value. Right-of-use assets are initially measured at cost
and lease liabilities are initially measured on a present value basis. Subsequent to initial recognition:
(a) Right-of-use assets are accounted for on a similar basis to non-financial assets, whereby the right-
of-use asset is accounted for on a cost basis unless the underlying asset is accounted for on a
revaluation basis, in which case if the underlying asset is:
i.
Investment property, the lessee applies the fair value model in AASB 140 Investment Property
to the right-of-use asset; or
ii. Property, plant or equipment, the lessee applies the revaluation model in AASB 116 Property,
Plant and Equipment to all of the right-of-use assets that relate to that class of property, plant
and equipment; and
(b) Lease liabilities are accounted for on a similar basis to other financial liabilities, whereby interest
expense is recognised in respect of the lease liability and the carrying amount of the lease liability
is reduced to reflect the principal portion of lease payments made.
The Group has applied AASB 16 from 1 July 2019 using the modified retrospective approach, with no
restatement of corporative information.
The Group applied the practical expedient for short-term leases exemptions to leases with lease terms
that end within 12 months of the date of initial application.
The Group recognises right-of-use assets totalling $123,621 (net of straight line lease liability upon
implementation) representing its right to use the underlying asset and lease liabilities representing its
obligations to make lease payments with exemptions for short-term leases and leases of low-value
items. The recognised right-of-use assets are depreciated on a straight-line basis over the shorter of its
estimated useful life and the lease term. Right-of-use assets are subject to impairment.
In calculating the present value of lease payments, the Group uses the incremental borrowing rate of
4.75%. After the commencement date, the amount of lease liabilities is increased to reflect the accretion
of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities
is remeasured if there is a modification, a change in lease term, a change in the in-substance fixed lease
payments or a change in the assessment to purchase the underlying asset.
The following is a reconciliation of total operating lease commitments at 30 June 2019 to the lease
liabilities recognised at 1 July 2019:
Total operating lease commitments disclosed at 30 June 2019
Recognition exemptions
Variable lease payments not recognised
Operating lease liabilities before discounting
Discounted using incremental borrowing rate
Operating lease liabilities
Reasonably certain extension options
Total lease liabilities recognised under AASB 16 at 1 July 2019
$
21,762
(2,608)
19,154
(1,843)
17,311
106,636
123,947
NOTES TO THE FINANCIAL STATEMENTS
1)
Summary of Accounting Policies (Continued)
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. The Group has not yet assessed the impact of these new or
amended Accounting Standards and Interpretations.
Critical Accounting Estimates and Other Accounting Judgements
t)
Estimates and judgements are continually evaluated and are based on historical experience and other
factors, including expectations of future events that are believed to be reasonable under the
circumstances.
In the application of the Australian Accounting Standards, management is required to make judgments,
estimates and assumptions about carrying values of assets and liabilities that are not readily apparent
from other sources. The estimates and associated assumptions are based on historical experience and
various other factors that are believed to be reasonable under the circumstances, the results of which
form the basis of making the judgments. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the year in which the estimate is revised if the revision affects only that year
or in the year of the revision and future years if the revision affects both current and future years.
The Group is of the view that there are no critical accounting estimates and judgements in this financial
report, other than accounting estimates and judgements in relation to the following:
Exploration and Evaluation Expenditure
The Group capitalises expenditure relating to exploration and evaluation where it is considered likely to
be recoverable or where the activities have not reached a stage which permits a reasonable assessment
of the existence of resources or reserves.
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.
Lease term
The lease term is a significant component in the measurement of both the right-of-use asset and lease
liability. Judgement is exercised in determining whether there is reasonable certainty that an option to
extend the lease or purchase the underlying asset will be exercised, or an option to terminate the lease
will not be exercised, when ascertaining the periods to be included in the lease term. In determining the
lease term, all facts and circumstances that create an economical incentive to exercise an extension
option, or not to exercise a termination option, are considered at the lease commencement date. Factors
considered may include the importance of the asset to the consolidated entity's operations; comparison
of terms and conditions to prevailing market rates; incurrence of significant penalties; existence of
significant leasehold improvements; and the costs and disruption to replace the asset. The consolidated
entity reassesses whether it is reasonably certain to exercise an extension option, or not exercise a
termination option, if there is a significant event or significant change in circumstances.
NOTES TO THE FINANCIAL STATEMENTS
1)
Summary of Accounting Policies (Continued)
Incremental borrowing rate
Where the interest rate implicit in a lease cannot be readily determined, an incremental borrowing rate
is estimated to discount future lease payments to measure the present value of the lease liability at the
lease commencement date. Such a rate is based on what the consolidated entity estimates it would
have to pay a third party to borrow the funds necessary to obtain an asset of a similar value to the right-
of-use asset, with similar terms, security and economic environment.
Going Concern
u)
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 2020 of $480,596
(2019: $720,037) and reported net cash outflows from operating and investing activities of $1,405,031
(2019: $1,367,893). As at 30 June 2020, the Group had available cash and cash equivalents of $155,356
(2019: $366,391).
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. As announced on 10 July 2020, the Company completed the Non-Renounceable Entitlement
issue of 1 share for every 2 shares held by eligible shareholders, raising a total of $1.85 million (before
costs). 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.
Should the Group be unable to obtain additional funding as described above, there is a material
uncertainty that may cast significant doubt on whether the Group will be able to continue as a going
concern, and therefore, whether it will be required to realise its assets and extinguish its liabilities other
than in the normal course of business and at amounts different from those stated in the financial report.
The financial report does not include any adjustments relating to the recoverability and classification of
recorded asset amounts or the amounts and classification of liabilities that may be necessary should
the Group be unable to continue as a going concern.
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 and Cash Equivalents
CONSOLIDATED
2020
$
80
155,276
155,356
2019
$
954
365,437
366,391
Cash on hand is non-interest bearing. Cash at bank bears floating interest rates between 0.00% and
0.25% (2019: 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
(Gain) / Loss on foreign exchange transactions
Share based payments
Revenue from JV
Changes in Net Assets and Liabilities
(Increase) in trade and other receivables
Increase / (decrease) in trade and other payables
(Decrease) / increase in provisions
Net cash (used in) operating activities
CONSOLIDATED
2020
$
2019
$
(480,596)
(720,037)
58,486
(31,393)
49,719
(117,321)
(33,744)
88,864
(27,333)
13,469
6,345
124,932
(57,273)
(20,029)
(50,631)
29,788
(493,318)
(673,436)
Non-Cash Financing Activities
c)
During the year ended 30 June 2020, $49,719 options vested (30 June 2019: $125,601). This balance
included $49,719 options that were issued in prior years (30 June 2019: $39,058).
Funding from Exploration Partners
d)
Included in the statement of cash flows is $1,231,113 (30 June 2019: $2,240,121) proceeds from
Chilean projects being farmed in, and resultant cash outflows of $1,430,908 (30 June 2019: $1,794,691).
Refer to Note 9.
NOTES TO THE FINANCIAL STATEMENTS
3)
Trade and Other Receivables
CURRENT RECEIVABLES
Prepayments
Other Receivables
CONSOLIDATED
2020
$
51,002
62,099
113,101
2019
$
2,965
77,858
80,823
No current or past due receivables were impaired at the end of the financial year.
4)
Exploration and Evaluation Asset
Balance at 1 July
Expenditure incurred during the year
Impairment losses
Balance at 30 June
CONSOLIDATED
2020
$
2019
$
9,272,553
7,954,697
786,521
1,317,856
-
-
10,059,074
9,272,553
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 (2019: $nil) against the
carrying value of its exploration and evaluation expenditure.
5)
Financial Assets
Security Deposits
CONSOLIDATED
2020
$
2019
$
244,902
233,436
Security deposits relates to deposits held to secure exploration tenement holdings.
NOTES TO THE FINANCIAL STATEMENTS
6)
Plant and Equipment
2020
Cost
Plant &
Equipment
$
Motor Vehicles
Total
$
$
Balance at 1 July 2019
125,627
161,054
286,681
Additions
Disposals
-
-
-
-
-
-
Balance at 30 June 2020
125,627
161,054
286,681
Accumulated Depreciation
Balance at 1 July 2019
Depreciation
Depreciation write off on disposal
Balance at 30 June 2020
Net Book Value
30 June 2020
2019
Cost
Balance at 1 July 2018
Additions
Disposals
120,084
1,671
-
123,322
8,490
-
243,406
10,161
-
121,755
131,812
253,567
3,872
29,242
33,114
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
117,570
2,514
-
112,367
10,955
-
229,937
13,469
-
Balance at 30 June 2019
120,084
123,322
243,406
Net Book Value
30 June 2019
5,543
37,732
43,275
NOTES TO THE FINANCIAL STATEMENTS
7)
Right-of-use Asset
Right-of-use asset
Movements in Right-Of-Use Asset
Cost
Balance at 1 July
Adjustment on transition to AASB 16
Revaluation 1
Additions
Balance at 30 June
Accumulated Depreciation
Balance at 1 July
Depreciation expense
Revaluation 1
Balance at 30 June
Net Book Value
30 June
CONSOLIDATED
2020
$
65,598
2019
$
-
123,621
(31,012)
-
92,609
-
48,325
(21,314)
27,011
65,598
-
-
-
-
-
-
-
-
-
-
1 On 1 December 2019, the Group exercised its option as lessee to extend the term of the leasing
agreement for the office premises in Subiaco, WA. At this time, the terms of the agreement were
renegotiated and differed from those at the date of initial application. The Group has determined this to
be a modification of the agreement under AASB 16 Leases and a reassessment of the resulting lease
liability and right-of-use asset was performed at that time. The revaluation was based on the present
value of lease payments, using an incremental borrowing rate of 6.11%.
8)
Trade and Other Payables
Trade Payables
Other Payables
CONSOLIDATED
2020
$
423,384
407,258
830,642
2019
$
236,976
111,860
348,836
All amounts are current and are expected to be settled within 12 months.
NOTES TO THE FINANCIAL STATEMENTS
9)
Other Assets / (Liabilities)
Other assets / (liabilities)
CONSOLIDATED
2020
$
2019
$
237,565
(337,632)
Other assets / (liabilities) represent advances to / (from) Manhattan and JOGMEC to fund Chilean
exploration expenditure on the Joshua and Samuel projects respectively.
Joshua Project
Manhattan Corporation Limited (ASX:MHC) was 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. The HOA provided 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 contributed a total
of $1,040,000 for Stage 1 of the earn-in, and elected not to proceed past that Stage in June 2019.
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 through 3 stages, enabling them to earn a 60%
interest in the Samuel Copper Project. 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.
• JOGMEC has funded and completed Stage 2 in September 2019 and has approved and commenced
Stage 3, funding a further US$435,000.
• Funds received during the year amounted to $1,231,113 (30 June 2019: $1,200,121).
10) Provisions
Annual Leave Provision
Long Service Leave Provision
CONSOLIDATED
2020
$
2019
$
66,593
39,900
67,850
65,976
106,493
133,826
NOTES TO THE FINANCIAL STATEMENTS
11) Lease Liabilities
Current
Non-current
Amounts recognised in the statement of profit or loss
Depreciation expense on right-of-use asset (Note 7)
Interest expense
Movements in Lease Liabilities
Balance at 1 July
Recognition on adoption of AASB 16
Lease modification
Lease repayments
Balance at 30 June
Future minimum lease payments at 30 June are as follows:
CONSOLIDATED
2020
$
2019
$
46,624
20,517
67,141
48,325
5,107
-
123,947
(10,024)
(46,782)
67,141
-
-
-
-
-
-
-
-
-
-
30 June 2020
Lease payments
Finance charges
12) Share Capital
Minimum Lease Payments
Within 1 Year
1-5 Years
After 5 Years
Total
$
49,369
(2,745)
46,624
$
$
20,823
(306)
20,517
$
70,192
(3,051)
67,141
-
-
-
Fully Paid Ordinary Shares
529,413,361
424,466,692
67,676,147
66,517,020
Jun 2020
Shares
Jun 2019
Shares
Jun 2020
$
Jun 2019
$
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.
NOTES TO THE FINANCIAL STATEMENTS
12) Share Capital (Continued)
2020
2019
No
$
No
$
Fully Paid Ordinary Shares
Balance at 1 July
424,466,692
66,517,020
394,466,692
65,677,689
Share Issue @ $0.03 (1)
-
-
30,000,000
900,000
Share Issue @ $0.016 (2)
62,500,000
1,000,000
Share Issue @ $0.007 (3)
42,446,669
297,127
Share Issue Costs
Balance at 30 June
-
(138,000)
529,413,361
67,676,147
424,466,692
66,517,020
-
-
-
-
-
(60,669)
(1) 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.
(2) On 28 November 2019, 62,500,000 fully paid ordinary shares were issued to institutional and
sophisticated investors at an issue price of $0.016 per share. The Placement was to raise funds for
exploration expenditure at the Collerina Copper Deposit and for working capital.
(3) On 5 June 2020, 42,446,669 fully paid ordinary shares were issued to institutional and sophisticated
investors at an issue price of $0.007 per share. The Placement was to raise funds for exploration
expenditure at the Collerina Copper Deposit 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.
NOTES TO THE FINANCIAL STATEMENTS
13) Reserves
Unlisted Options
Balance at 1 July
Options issued to consultants (1)
Options issued to directors and
employees (2)
Options issued in prior years
vesting
Options expired
Options forfeited
2020
2019
No.
$
No.
$
17,000,000
190,979
19,650,000
395,415
-
-
-
-
-
1,750,000
669
12,000,000
85,874
49,719
-
39,058
(2,000,000)
(54,103)
(15,400,000)
(319,562)
-
-
(1,000,000)
(10,475)
190,979
Balance at 30 June
15,000,000
186,595
17,000,000
(1) On 19 October 2018, 1,750,000 unlisted options were issued to the Lead Manager (Peloton Capital)
upon successful Placement. The options were exercisable at $0.08 each with an expiry date of 19 April
2019. Refer to Note 30 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 30 for
more details.
The following table illustrates the options on issue at the end of the financial year.
Grant Date
Expiry Date
Exercise Price
2020
2019
3 May 2017
3 May 2020
6 Apr 2018
6 Apr 2021
30 Nov 2018
30 Nov 2021
$0.0673
$0.0607
$0.065
-
3,000,000
2,000,000
3,000,000
12,000,000
12,000,000
15,000,000
17,000,000
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 if the options had vested. Otherwise, the value is reversed to profit or loss.
14) Accumulated Losses
Balance at 1 July
Net loss attributable to members of the parent entity
Unlisted options expired / forfeited
Balance at 30 June
CONSOLIDATED
2020
$
2019
$
(57,531,815)
(57,141,815)
(480,596)
(720,037)
54,103
330,037
(57,958,308)
(57,531,815)
NOTES TO THE FINANCIAL STATEMENTS
15) Other Income
Interest income
Rental income
Samuel project – management fee
16) Other Expenses
Bank Fees
Insurance
Listing costs
Office costs
Other
17) Commitments
CONSOLIDATED
2020
$
4,036
23,279
117,321
144,636
2019
$
6,722
-
57,273
63,995
CONSOLIDATED
2020
$
2019
$
16,227
43,185
39,087
13,195
12,013
8,358
33,854
49,913
17,835
7,361
123,707
117,321
Operating Lease Commitments
a)
At 30 June 2020, it is anticipated that operating lease commitments for the next twelve months will be
$3,536 for short-term leases. At 30 June 2019, the Group disclosed operating lease commitments of
$21,762. From the date of initial application of AASB 16 Leases, being 1 July 2019, all future amounts
payable under leasing contracts previously classified as operating leases have been accounted for
under the provisions of the new Leases standard. These amounts were reflected in the lease liability, of
which $123,947 was recognised on 1 July 2019 (Note 11).
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. Expenditure commitments are based on tenement rentals . No other minimum
work expenditure commitments exist over any of the Company’s tenements.
Less than 1 year
1 – 5 years
More than 5 years
CONSOLIDATED
2020
$
2019
$
21,599
21,331
-
13,735
9,435
-
42,930
23,170
NOTES TO THE FINANCIAL STATEMENTS
18) 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
2020
$
2019
$
289,420
326,238
(5,790)
(2,103)
27,495
19,602
5,933
11,461
30,991
48,385
39,164
92,126
-
-
39,164
92,126
348,186
466,749
As at 30 June 2020, there were $17,228 director fees accrued for and unpaid (2019: $6,667).
19) Related Party and Directors’ Disclosures
a)
Other Transactions with key management personnel
There were no items of expenses that resulted from transactions other than remuneration with
key management personnel or their personally-related entities as shown in the remuneration
report. Transactions between related parties are on normal commercial terms and conditions
unless otherwise stated.
b)
Parent entity
The ultimate parent entity in the Group is Helix Resources Limited.
NOTES TO THE FINANCIAL STATEMENTS
20)
Income Tax
CONSOLIDATED
2020
$
2019
$
Accounting (loss) before tax from continuing operations
(480,596)
(720,037)
Accounting (loss) before tax
(480,596)
(720,037)
Reconciliation of Income Tax (Benefit) to Accounting (Loss)
Prima facie tax (benefit) at Australian rate of 27.5% (2019: 27.5%)
(132,164)
(198,010)
Prima facie tax (benefit) at Chilean rate of 25% (2019: 25%)
-
-
Adjusted for tax effect of the following:
- taxable / non-deductible items
- non-taxable / deductible items
- adjustment for change of Chilean tax rate
- income tax benefit not brought to account
Income tax (benefit)
(1,252)
72,629
(251,797)
(381,948)
-
385,213
-
(62,453)
569,782
-
Statement of Profit or Loss and Other Comprehensive Income
Deferred income tax
Relating to origination and reversal of temporary differences
Australian temporary differences not brought to account
Income tax (benefit) reported in statement of profit or loss & other
comprehensive income
259,230
(259,230)
373,721
373,721
-
-
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:
Deferred tax liabilities in relation to exploration and evaluation
expenditure
Deferred tax liabilities
Net deferred tax
12,037,736
11,869,678
2,477,362
2,025,784
14,515,098
13,895,462
2,455,613
2,239,403
2,455,613
2,239,403
(2,455,613)
(2,239,403)
(2,455,613)
(2,239,403)
-
-
Helix Resources Limited currently satisfies the conditions to be a small business entity.
NOTES TO THE FINANCIAL STATEMENTS
21) 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
Exploration and
evaluation asset
Financial assets
Australia
Chile
Total
2020
2019
2020
2019
2020
2019
81,245
323,853
74,111
42,538
155,356
366,391
113,101
78,147
237,565
2,676
350,666
80,823
10,059,074
9,272,553
-
- 10,059,074
9,272,553
232,284
220,419
12,618
13,017
244,902
233,436
Plant and equipment
Right-of-use Asset
33,114
65,598
43,275
-
-
-
-
-
33,114
65,598
43,275
-
Total Assets
10,584,416
9,938,247
324,294
58,231 10,908,710
9,996,478
Current Liabilities
Trade and other
payables
Other liabilities
Provisions
106,493
133,826
Lease liabilities
46,624
Non-Current
Liabilities
Lease liabilities
20,517
-
-
522,036
298,311
308,606
50,525
830,642
348,836
-
-
337,632
-
337,632
-
-
-
-
106,493
133,826
-
-
46,624
-
20,517
-
-
Total Liabilities
695,670
432,137
308,606
388,157
1,004,276
820,294
Revenue
Depreciation
(Loss) / profit
before tax
143,921
63,781
(58,486)
(13,469)
715
-
214
144,636
63,995
-
(58,486)
(13,469)
(507,836)
(711,034)
27,240
(9,003)
(480,596)
(720,037)
22) Contingent Assets and Liabilities
There are no contingent assets or liabilities of the Group (2019: nil).
NOTES TO THE FINANCIAL STATEMENTS
23) Subsequent Events
On 10 July 2020, the Company issued 264,706,567 ordinary shares at $0.007 per share, raising a total
of $1.85 million (before costs), completing the Non-Renounceable Entitlement issue of 1 share for every
2 shares held by eligible shareholders as announced on 5 June 2020.
No matter or circumstance has arisen since 30 June 2020 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.
24) Loss Per Share
Basic loss per share
Diluted loss per share
COMPANY
2020
2019
Cents Per
share
Cents Per
share
(0.10)
(0.10)
(0.17)
(0.17)
Basic & Diluted Loss per Share
The earnings and weighted average number of ordinary shares used in the calculation of basic and
diluted loss per share are as follows:
Loss after tax
2020
$
2019
$
(480,596)
(720,037)
No.
No.
Weighted average number of ordinary shares
464,189,067
415,343,404
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
2020
No.
2019
No.
15,000,000
17,000,000
Since the Group made a loss during the year, the potential ordinary shares were not considered to be
dilutive.
NOTES TO THE FINANCIAL STATEMENTS
25)
Interest in Joint Operations
The parent entity has entered into the following unincorporated joint operations:
Joint Operations
Project
Cobar Gold Project
Percentage Interest
90% (Glencore moving to 1% NSR Royalty) (2019:
90%) (Glencore)
Principal
Exploration
Activities
Gold
Canbelego
70% (2019: 70%) (Aeris Resources)
Copper
The joint operations are not separate legal entities but are contractual arrangements between the
participants for sharing costs and output and do not in themselves generate revenue and profit.
Capitalised exploration expenditure is the only asset of the joint operations. The Group’s interest in
capitalised exploration expenditure in the above mentioned joint operations is as follows:
Non-Current Assets
Mineral Assets
Additions
Carrying Amount
26) Financial Instruments
Restdown Joint Operation
90%
Canbelego Joint Operation
70%
2,723,541
79,471
2,803,012
1,147,209
5,034
1,152,243
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 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 2020, 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 $2,018 (2019: $3,361) and an
increase in equity by $2,018 (2019: $3,361). 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 $2,018
(2019: $3,361) and a decrease in equity by $2,018 (2019: $3,361).
NOTES TO THE FINANCIAL STATEMENTS
26) 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
$
$
2020
Financial Assets
Cash and cash equivalents
0.40%
Trade and other receivables
Financial assets
1.25%
Financial Liabilities
Trade payables
Lease liabilities
6.11%
-
-
-
-
-
-
-
82,249
-
244,902
327,151
-
-
-
-
-
-
73,107
155,356
113,101
113,101
-
244,902
186,208
513,359
423,384
423,384
46,624
20,517
-
60,141
46,624
20,517
423,384
490,525
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
Cash and cash equivalents
0.45%
Trade and other receivables
Financial assets
1.71%
Financial Liabilities
Trade payables
Lease liabilities
.
-
-
-
-
-
-
-
337,449
-
-
-
-
28,942
366,391
80,823
80,823
233,436
-
233,436
337,449
233,436
109,765
680,650
-
-
-
-
-
-
236,976
236,976
-
-
236,976
236,976
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.
NOTES TO THE FINANCIAL STATEMENTS
26) 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
2020
CLP
73,027
(308,606)
(235,579)
2019
CLP
27,988
(50,525)
(22,537)
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.
27) Remuneration of Auditors
Auditing and reviewing the financial reports
2020
$
2019
$
26,865
29,586
The auditor of Helix Resources Limited for the 2020 financial year is HLB Mann Judd (2019: Grant
Thornton Audit Pty Ltd).
NOTES TO THE FINANCIAL STATEMENTS
28) Parent Company Information
Assets
Current assets
Non-current assets
Total Assets
Liabilities
Current liabilities
Non-current liabilities
Total Liabilities
Equity
Share capital
Reserves
Accumulated losses
Total Equity
Financial Performance
(Loss) for the year
29) Subsidiaries
2020
$
2019
$
192,986
400,640
10,407,118
9,207,681
10,600,104
9,608,321
675,153
432,137
20,517
-
695,670
432,137
67,676,147
66,517,020
186,595
190,979
(57,958,308)
(57,531,815)
9,904,434
9,176,184
(480,596)
(390,000)
Name
Country of
Incorporation
Principal
Activity
Percentage
Held
Percentage
Held
Oxley Exploration Pty Ltd
Australia
Leichhardt Resources (QLD)
Pty Ltd
Helix Resources (Overseas) Pty
Ltd
Australia
Australia
McClatchie Mining Pty Ltd 1
Australia
Helix Resources Chile Limitada
Chile
1 Company was established on 11 February 2019
Mineral
Exploration
Mineral
Exploration
Mineral
Exploration
Mineral
Exploration
Mineral
Exploration
2020
100%
2019
100%
100%
100%
100%
100%
100%
100%
100%
100%
NOTES TO THE FINANCIAL STATEMENTS
30) Share Based Payments
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
19 Oct 2018
Expiry Date
19 Apr 2019
Exercise Price Share Price
$0.08
$0.031
Volatility
75%
Risk Free Rate
1.49%
On 30 November 2018, 12,000,000 unlisted options were granted 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
30 Nov 2018
Expiry Date
30 Nov 2021
Exercise Price Share Price
$0.065
$0.031
Volatility
84%
Risk Free Rate
1.93%
The following table illustrates the options exercisable at the end of the financial year.
Grant Date
Expiry Date
Exercise Price
2020
2019
3 May 2017
3 May 2020
6 Apr 2018
6 Apr 2021
30 Nov 2018
30 Nov 2021
$0.0673
$0.0607
$0.065
-
3,000,000
8,000,000
11,000,000
2,000,000
2,000,000
4,000,000
8,000,000
At 30 June 2020, there were 4,000,000 options that has yet to fully vest, and thus not exercisable.
The weighted average remaining contractual life for the share-based payment options outstanding as
at 30 June 2020 was 1.29 years (2019: 2.12 years). The range of exercise prices for share-based
payment options outstanding as at the end of the year was $0.0607 to $0.065 (2019: $0.0607 to
$0.0673). Weighted average exercise price as at 30 June 2020 is 6.41 cents (2019: 6.45 cents).
ADDITIONAL ASX INFORMATION
AS AT 10 SEPTEMBER 2020
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
102
147
213
696
591
1,749
Units
29,177
440,034
1,839,859
28,864,546
762,946,312
794,119,928
% Units
0.00
0.06
0.23
3.63
96.07
100.00
Minimum $500.00 parcel at $0.017 per unit
29,412
763
7,792,857
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
PONDEROSA INVESTMENTS (WA) PTY LTD
GEE VEE PTY LTD
MR ROBERT PATRICK HEARNE
MR BULENT BESIM
GEMTAZ PTY LIMITED
GEE VEE PTY LTD
MS OLIVIA KIDON
MR CHRIS CARR + MRS BETSY CARR
GOTHA STREET CAPITAL PTY LTD
JETOSEA PTY LTD
CREEKWOOD NOMINEES PTY LTD
MR GEOFFREY JAMES HARRIS
SHUKHRA PTY LTD
MR GREGORY JOHN MUNYARD + MRS MARIA ANN
MUNYARD + MISS CARMEN HELENE MUNYARD
ROCK THE POLO PTY LTD
MR GREGORY JOHN MUNYARD
AQUILA RESOURCES LTD
MRS MELANIE JANE CHESSELL
MR STANLEY ALLAN MACDONALD
44,030,201
24,125,000
23,653,257
21,900,000
19,999,999
19,295,105
17,938,230
17,807,742
15,000,000
12,821,590
11,551,332
10,875,000
9,244,881
9,000,000
8,629,194
8,375,000
8,323,354
7,681,293
7,200,000
6,998,750
5.54
3.04
2.98
2.76
2.52
2.43
2.26
2.24
1.89
1.61
1.45
1.37
1.16
1.13
1.09
1.05
1.05
0.97
0.91
0.88
Totals: Top 20 holders of Ordinary Fully Paid Shares (TOTAL)
304,449,928
38.33
ADDITIONAL ASX INFORMATION
AS AT 10 SEPTEMBER 2020
Voting Rights
One vote for each ordinary share held in accordance with the Company's Constitution.
Substantial Shareholders
Shareholder
Yandal Investments Pty Ltd
Gee Vee Pty Ltd
Directors' Interest In Share Capital
Director
P Lester
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
Number of
Shares
44,030,201
41,591,487
% of Issued
Capital
5.54
5.24
Fully Paid Ordinary Shares
Unlisted Options
1,105,342
15,635,514
450,000
17,190,856
3,000,000
3,000,000
3,000,000
9,000,000
Total holders
Units
% Units
-
-
-
-
10
10
-
-
-
-
15,000,000
15,000,000
-
-
-
-
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 10 September 2020 as detailed below. Options
do not carry the rights to vote.
Class
Terms
No. of
Options
Class D Unlisted
Options
Class F Unlisted
Options
Exercisable at 6.07 cents, expiring on or before 6 April 2021
3,000,000
Exercisable at 6.5 cents, expiring on or before 30 November
2021
12,000,000
15,000,000
ADDITIONAL ASX INFORMATION
AS AT 10 SEPTEMBER 2020
Tenement Schedule
Tenement
Name
Mineral
Ownership
NSW COPPER & GOLD PROJECTS (INCL. JV's)
EL8768 (Formerly
EL6336)
Collerina
Copper/Gold
Helix 100% precious and base metals
EL6140
EL6501
EL6739
EL7438
EL7439
EL7482
EL8433
EL8633
EL8608
EL8845
EL8710
EL8096
EL6105
EL8948
Restdown
(Cobar Gold)
South Restdown
(Cobar Gold)
Muriel Tank
(Cobar Gold)
Gold
Gold
Gold
Quanda
Fiveways
Copper/Gold
Copper/Gold
Little Boppy
Copper/Gold
Boundary
Rochford
Copper/Gold
Copper/Gold
Yanda Creek
Copper/Gold
Darbalara
Copper/Gold
Honeybugle
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
Helix 100%
Helix 100%
Helix 100%
Helix 100%
Helix 100%
Helix 100%
Helix 100%
Helix 100%
Mundarlo
Copper/Basemetals
Helix 80%, Private Partner 20%
Canbelego
Copper/Gold
Helix 70%, Aeris Resources 30%
Bijoux
Copper/Gold
Helix 100%
CHILE PROJECTS
EXPLORATION CONCESSIONS
Joshua
(13 concessions)
Bogarin
(13 concessions)
Joshua
Copper/Gold
Samuel
Copper/Gold
EXPLOITATION CONCESSIONS
Blanco Y Negro
1/20
Joshua
(5 concessions)
Bogarin
(6 concessions)
Blanco Y Negro
Copper/Gold
Joshua
Copper/Gold
Samuel
Copper/Gold
Abbreviations and Definitions used in Schedule:
EL or E
Exploration License
Helix 100%
Helix 100%
Helix 100%
Helix 100%
Helix 100%