ANNUAL REPORT
2021
ABN 27 009 138 738
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
CONTENTS
Company Directory
Chairman’s Letter
Review of Operations
Corporate Governance
Directors’ Report
Auditors Independence Declaration
Directors’ Declaration
Statement of Profit or Loss & Other Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Independent Auditor’s Report
Shareholder Information
Tenement Schedule
2
3
4
16
17
27
28
29
31
32
33
34
60
64
66
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
COMPANY DIRECTORY
Directors
Peter Lester - Non-Executive Chairman
Mike Rosenstreich - Managing Director
Jason Macdonald - Non-Executive Director
Timothy Kennedy - Non-Executive Director
Company secretary
Benjamin Donovan
Australian Business Number
27 009 138 738
Registered office
Telephone
Email
Website
Share Registry
Auditor
78 Churchill Avenue Subiaco, WA 6008
+61 8 9321 2644
helix@helixresources.com.au
www.helixresources.com.au
Computershare Investor Services Pty Limited
Level 11, 172 St Georges Terrace
Perth, WA 6000
T: 1300 850 505 (within Australia)
www.computershare.com
HLB Mann Judd
Level 4, 130 Stirling Street
Perth, WA 6000
Stock exchange listing
Australian Securities Exchange (ASX code: HLX)
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Helix Resources Limited
Annual Report
For the year ended 30 June 2021
CHAIRMAN’S LETTER
Dear Shareholders,
It is my pleasure to present Helix Resources Limited’s Annual
Report for the financial year ending 30 June 2021, in which the
Company has accelerated its focus on its highly prospective
copper-gold projects, located in the Cobar region of central
NSW.
Strategy
The focus on copper-gold in the Cobar region with a balance
between regional, target-generation work and work to grow
existing resources represents a strategic shift from the
Company’s earlier greater emphasis on gold exploration. This
approach represents a more systematic, regional approach
which I am pleased to say is yielding fruitful results.
Helix has continued to prove up and develop a series of very
interesting targets from the aerial VTEM survey throughout all
of its tenements. Drilling at Canbelego demonstrated high-
grade copper mineralisation such as 14m at 4.2% copper and
potential for further extensions. Post year-end, the Company
has started drilling at the CZ Project area including metallurgical
sample holes and testing for extensions to the current CZ
Mineral Resources. The Company has also consolidated its
footprint around CZ, adding further highly prospective copper
tenure (with additional nickel-cobalt optionality).
We have established significant momentum and I am excited
heading into the new financial year with a strategy emphasising
‘the right metals in the right neighbourhood’.
Team
The Board was delighted to welcome Mike Rosenstreich on
board in early 2021 as Managing Director. He has wasted no
time to review the Company’s legacy activities and accelerate
current operations in the Cobar region. As part of our expanding
operations, Mike has overseen the revitalisation of our
exploration and discovery team, now based in Orange, NSW.
This includes new leadership for the discovery team in Mr
Gordon Barnes, who joined as Exploration Manager in May,
contributing extensive NSW geological and operating
experience.
Helix has a completely new team spanning technical and
financial management which has rejuvenated and energised the
Company. The team has made significant strides especially
when considering the challenges posed by lockdowns across
NSW as a result of COVID-19. I would like to take this
opportunity to express condolences on behalf of myself and the
Board of Helix to all our stakeholders that have been affected.
Regardless of these challenges, the Board and I look forward to
working with Mike and his team as Helix heads into the new
year at an exciting time. We hold two compelling opportunities
at CZ and Canbelego and possess the team, capital and
management experience to ensure we build the most value
possible for our shareholders.
I encourage everyone to watch Helix closely into the future as
we continue to execute our strategy.
Yours faithfully,
Peter Lester
Chairman
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Helix Resources Limited
Annual Report
For the year ended 30 June 2021
REVIEW OF OPERATIONS
1. OPERATIONS REPORT
Helix Resources Limited (“Helix” or “the Company”) has been active on its mineral exploration projects located in central NSW and Chile.
It also holds royalty interests over two advanced projects located in Australia.
2. OVERVIEW
Helix is implementing a revised strategy from previous years to advance our asset portfolio, with a primary focus on our strategic
commodities, copper, and gold. Through Pthe second half of the year with a new management team the Company is seeking to focus
solely on its Cobar regional projects where it considers it can extract intrinsic value for the benefit of its shareholders from high grade
copper and gold discoveries. In Chile, the Company is seeking to divest its early-stage copper projects. Similarly, the Company is seeking
to commercialise its iron-ore focussed mineral production royalties. Regrettably, in the second half, several legacy management issues
were uncovered which current management and Board are working to resolve.
Helix holds a high-quality project portfolio in one of Australia’s best regions for recent mineral discoveries, the Cobar mining district in
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. The Company’s primary assets consist of tenements covering what it terms
the “Collerina, Rochford and Meryula” trends (see Figure 1).
Figure 1: Helix Resources tenement map covering the Collerina, Rochford and Meryula trends
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Helix Resources Limited
Annual Report
For the year ended 30 June 2021
REVIEW OF OPERATIONS
3. ADVANCED EXPLORATION
3.1 Collerina Copper Trend
During the year, conceptual modelling was completed at the Central Zone (CZ) Deposit1 (formerly referred to as the Collerina copper
project2) which occurs along the regional scale Collerina trend. The modelling work was undertaken to provide a clearer
understanding of how a potential CZ pit design may be influenced and constrained by the current Mineral Resource model and
hence where additional drilling to extend mineralisation should be targeted (see Figure 2).
Figure 2: Schematic 3D Long-Section (looking south) with copper drill intercepts, Central Zone Resource Envelope (yellow),
Exploration Target Implicit Model (red-transparent), Conceptual Pit outline (blue-transparent).
The findings of the modelling informed a nine-hole reverse-circulation (RC) drilling campaign which commenced in November 20203.
Several drill hole locations were designed to test an additional 300 metres of strike of near-surface targets to a depth of 100 metres
located northwest of the modelled pit location. The remaining holes were designed to test downhole and fixed loop EM conductors
identified in the previous financial year. In many cases the drill holes failed to intersect the planned target zones and in retrospect
better supervision and a more accurate drilling method such as diamond core should have been utilised to avoid the significant drill
hole deviation that was encountered.
The Company’s drilling has been based on a geological model controlled by an east-west crosscutting kink band structure interpreted
to pass through this zone, which is being reviewed and updated. The thickened hinge zones of localised folds were considered to
control the formation of thick high-grade copper sulphide accumulations such as is interpreted at the Collerina, CZ Mineral
Resource1.
The drilling of the shallow northwest targets intersected broad (>20 metre wide) zones of anomalous copper in three of the four
holes4. Drill testing targeting the Northern Plunge Target Zone intersected copper sulphide mineralisation in all holes, unfortunately
due to persistent deviation of the RC drill paths the conceptual Fold Hinge target was not intersected, and the results appear to
indicate ‘near-misses’ on interpreted fold limb positions.
1 Refer Section 4 “Mineral Resource Estimates”
2 See ASX Announcement 28 September 2020
3 See ASX Announcement 25 November 2020
4 See ASX Announcement 15 February 2021
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Helix Resources Limited
Annual Report
For the year ended 30 June 2021
REVIEW OF OPERATIONS
All copper intercepts from this RC program surrounding the CZ Mineral Resource are presented in Table 1. These results, which overall
are disappointing, led to a renewed program of detailed data collection and rigorous geological interpretations by the newly
installed exploration team. This is an ongoing process, and the results will form the basis to plan the next phase of drilling in early
FY22 which will be less constrained by the pre-existing geological model.
Table 1: Copper intercepts from RC drilling program surrounding the CZ Mineral Resource
Hole_ID
CORC0122
CORC0123
CORC0124
CORC0125
CORC0126
CORC0127
CORC0128
CORC0129
CORC0130
From
233m
218m
192m
234m
N/A
16m
Drill Intercepts
2m at 0.6% Cu, 0.04 g/t Au, 1.0g/t Ag
2m at 0.4% Cu, 0.2 g/t Ag
Comment
Veinlet Chalcopyrite
Veinlet Chalcopyrite
1m at 1.0% Cu, 0.13 g/t Au, 0.8 g/t Ag, 0.1 % Zn Semi-massive chalcopyrite
1m at 1.0% Cu, 0.02 g/t Au, 0.27 g/t Ag
Semi-massive chalcopyrite
Target horizon below EOH
DDH Pre-collar
20m at 0.2%, 0.2 g/t Au, 0.3 g/t Ag
Wide intercept in Depletion zone
Surface
36m at 500ppm Cu
Wide intercept in Depletion zone
NSR
Intersected FW mafic before target depth
Surface
24m at 500ppm Cu
Wide intercept in Depletion zone
Oxide intercepts based on 500ppm, Cu cut-off, sulphide intercepts based on 0.3% Cu cut-off – NSR= No significant result, EOH = End of hole
3.2 Rochford Copper Trend
The Rochford copper trend is a large-scale copper trend located west of the nearby Collerina trend, with a strike length of
approximately 30km (refer Figure 1). The region contains several historic high-grade copper deposits and includes the Canbelego
Joint Venture (‘JV’) project – a 70% Helix Resources / 30% Aeris Resources JV with Helix being the manager. The Canbelego JV
project has an Inferred Mineral Resource of 1.5Mt at 1.2% copper (refer Section 4 for details).
Advanced Target Testing
The Canbelego Copper JV has drilled five diamond drillholes (CANDD001 to CANDD005) for nearly 2,000 metres, since restarting
exploration drilling around and beneath the Canbelego Mineral Resource in April 2021 after an 8-year exploration hiatus. This
outline includes results received up to mid-September 2021.
Copper mineralisation comprises disseminated and vein of copper sulphide (chalcopyrite) with occasional massive chalcopyrite
zones such as intersected in CANDD002 which returned 14 metres at 4.2% copper (Figure 4). The sulphide copper mineralisation is
typically associated with intensely folded and chlorite altered sediments. Oxide copper mineralisation, primarily malachite and
azurite, is also present near surface.
Table 2 presents a summary of the intersected copper grades5 at a range of cut-off grades and Figure 3 presents a long section of
the Canbelego copper deposit showing the recent copper intercepts.
In addition to drill results, the Company has undertaken downhole electromagnetic (DHEM) surveys in CANDD001, CANDD002
(Figure 5), CANDD003, and CANDD0056. All holes returned conductive anomalies, demonstrating the effectiveness of
‘electromagnetic’ surveys at the prospect scale to identify more massive high-grade copper shoots, such as in CANDD002 but also
regionally as indicated by the VTEM survey results (refer Section 5)
Work is ongoing to update the geological model based on the recent drill and geophysical data as well as review of the historical
data with the aim of better resolving the geological controls on the higher-grade copper zones. The JV plans to workshop these
updated concepts ahead of a further round of drilling.
5 See ASX Announcements: 15 April 2021, 3 May 2021, 12 May 2021, 31 May 2021, 23 June 2021, 21 July 2021 & 23 September 2021
6 See ASX Announcement: 3 June 2021
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Helix Resources Limited
Annual Report
For the year ended 30 June 2021
REVIEW OF OPERATIONS
Figure 3: Schematic long section of Canbelego Copper deposit showing recent assay results for CANDD001 to 5
Figure 4: Example of massive copper sulphide (chalcopyrite) in CANDD002 veins (118 metres)
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Helix Resources Limited
Annual Report
For the year ended 30 June 2021
REVIEW OF OPERATIONS
Table 2: Summary Assay Results for CANDD001 to CANDD005 at a range of copper cut-off grades
Hole ID
0.1% Cut-off
1% Cut-off
CANDD001
18m at 0.74% Cu from 263m
2m at 3.07% Cu from 277.8m
5m at 0.47% Cu from 110m
-
1m at 1.39% Cu from 110m
2m at 2.99% Cu from 118m
CANDD002
CANDD003
CANDD004
CANDD005
21m at 2.92% Cu from 345m
14m at 4.22% Cu from 352m
6m at 1.26% Cu from 286m
13m at 1.29% Cu from 295m
3.7m at 0.20% Cu from 255m
3m at 2.07% Cu from 288m
3m at 3.80% Cu from 303m
1m at 1.09% Cu from 307m
-
5m at 1.56% Cu from 272m
1m at 6.98% Cu from 272.6m
7.1m at 0.64% Cu from 65.9m
1m at 0.81% Cu from 103m
1m at 2.53% Cu from 65.9m
-
6m at 0.74% Cu from 108m
1m at 3.48% Cu from 108m
1m at 0.57% Cu from 384m
8m at 0.45% Cu from 429m
5m at 0.53% Cu from 442m
4m at 0.31% Cu from 454m
1m at 0.49% Cu from 469m
-
1m at 1.51% Cu from 429m
1m at 1.3% Cu from 442m
-
-
3% Cut-off
1m at 3.5% Cu from
277.8m
-
1m at 3.92m from 118m
3m at 7.01% Cu from
352m
4m at 5.94% Cu from
358m
-
2m at 4.71% Cu from
304m
-
1m at 6.98% Cu from
272.6m
-
-
1m at 3.48% Cu from
108m
-
-
-
-
-
Figure 5: DHEM modelled conductor plates from CANDD002
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Helix Resources Limited
Annual Report
For the year ended 30 June 2021
REVIEW OF OPERATIONS
Early Stage Targets
In late 2020 the Company completed its first RC drilling within the Rochford trend targeting the Bijoux prospect, located SSE
from the Canbelego JV area (refer Figure 1). Four scout RC holes were completed at Bijoux with the two southern holes returning
broad zones of copper in pXRF readings. In December 2020 initial 4 metre composite sample laboratory results returned7:
BJRC003 24 metres at 0.24% Cu from 10 metres following-up pXRF readings of 38 metres at 0.22% Cu from surface
(peak reading of 0.54% Cu)
BJRC004 12 metres at 0.18% Cu from 14 metres following-up pXRF readings of 33 metres at 0.13% Cu from 4 metres
(peak reading of 0.50% Cu)
Gold results from these holes were delayed by laboratory constraints and reported in February 20218. Zones of near-surface
gold anomalism were returned from the 4 metre composite samples in three of the four holes. These early-stage copper results
are highly encouraging and will be followed up in FY22. The best gold result was 4 metres at 0.2g/t Au from surface in BJRC004
in heavily weathered sediments.
A Moving Loop Electromagnetic (MLEM) Survey covering the southern half (600 metres of strike) of the Bijoux Prospect was
also conducted during the period. A partially defined NW trending EM response has been identified, which remains open to the
north. The MLEM survey will be extended to the north in FY22. This target position is coincident with historic, broad-spaced
copper in auger-soil anomalies, significant early-stage RC copper results and a northwest trending magnetic feature. This target
position is open to the northwest, southeast and represents a highly prospective copper target.
3.3 Restdown Gold Project
The Restdown Gold Project hosts regionally significant structures prospective for gold mineralisation, typified by the historic
Battery Tank gold field. The geological and structural setting is analogous to the nearby multiple-mine Peak Trend (over 4-
million-ounce gold endowment). In 2011, Helix delineated a small Inferred Mineral Resource of 3.8Mt at 1.0 g/t gold containing
118,000 ounce of gold (refer figure 6 and Section 4).
Figure 6: Regional setting of the Restdown Gold Project
7 See ASX Announcement 23 December 2020
8 See ASX Announcement 15 February 2021
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Helix Resources Limited
Annual Report
For the year ended 30 June 2021
REVIEW OF OPERATIONS
In October 2020, Helix received assays from 13 drill holes with significant intercepts including9:
Link Zone – 5 metres at 1.3 g/t Au (incl 1 metre at 2.4g/t Au) from 25 metres
Reward – 3 metres at 1.2 g/t Au (incl 1 metre at 3.2g/t Au) from 18 metres
Amity’s – 1 metre at 1.4g/t Au from 93 metres
Battery Tank North – 2 metres at 1.0 g/t Au from 15 metres
A follow-up drill campaign comprising 15 RC drillholes for 1,768 metres was conducted at seven new, nearby prospects. The objective
of the second phase of this program was to test for evidence of bedrock gold mineralisation beneath previously untested
geochemical and structural gold targets that included numerous old workings.
Gold assays for preliminary, 4 metre composite samples, were received and for several of the targets confirm the potential for gold
mineralised systems. Of the 15 holes drilled in phase 2 of the program, 10 returned anomalous gold of greater than 4 metres at
0.1g/t Au10.
The Company is undertaking a thorough review of all its historical data which is planned for completion late 2021. In the district,
these deposits are generally high-grade, with small ‘footprints’ but can persist to great depths (>2,000 metres vertically), so they are
very attractive targets albeit difficult to find without strong geological targeting vectors – which the Company will seek to identify
ahead of any further drilling.
4. MINERAL RESOURCE ESTIMATES
4.1 CZ Mineral Resource
A mineral resource compliant with the 2012 JORC Code for the CZ deposit is summarised in Table 3 below. It is a high-grade copper
discovery made by Helix in late 2016 along the Collerina Trend.
Table 3: Central Zone Mineral Resource Estimate (June 2019) (0.5% Cu Cut-off)
Classification
Type
Tonnes
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
Mt
0.17
0.46
0.63
0.83
0.57
1.40
0.17
0.83
0.46
0.57
2.03
Cu
%
1.1
0.6
0.7
2.6
2.5
2.6
1.1
2.6
0.6
2.5
2.0
Au
g/t
0.0
0.0
0.0
0.2
0.1
0.2
0.0
0.2
0.0
0.1
0.3
Cu
t
1,900
2,700
4,600
21,800
14,100
35,800
1,900
21,800
2,700
14,100
40,400
Au
oz
200
100
300
6,600
2,500
9,100
200
6,600
100
2,500
9,400
(Rounding errors may occur in summary tables)
Other than results contained in this report, 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.
9 See ASX Announcement 8 October 2020
10 See ASX Announcement 12 January 2021
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Helix Resources Limited
Annual Report
For the year ended 30 June 2021
REVIEW OF OPERATIONS
4.2 Canbelego Mineral Resource
A mineral resource compliant with the 2004 JORC Code was reported 7 October 2010 as presented in Table 4. This Mineral Resource
estimate is based on a total of 39 holes for 8,080 metres of RC and diamond drill core.
Since this estimate, the joint venture has undertaken additional exploration work including drilling and geophysics which is currently
being compiled and interpreted.
Table 4: Canbelego* (October 2010) (0.5% Cu cut-off)
Classification
Type
Inferred
Total
Oxide/Transition/Fre
sh
Combined
Tonnes
Mt
1.50
1.50
Cu
%
1.2
1.2
Au
g/t
N/A
N/A
Contained
Cu
t
18,000
18,000
Contained
Au
oz
N/A
N/A
(Rounding errors may occur in summary tables)
* Reported as 100% of deposit; Helix has 70% equitable interest through the Joint Venture
Historic production from the Canbelego Copper mine was reported (1920) to be approximately10,000t of hand-picked ore grading
5% copper when mining ceased at the water table at a depth of approximately80 metres.
Canbelego is located on EL6105 which is a joint venture with local copper producer Aeris Resources Limited (ASX: AIS). Helix holds
70% and is the Manager and AIS is a contributing 30% partner.
Other than results contained and referred to in this report, 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 7 October 2010 Initial Copper Resources for
Canbelego and Exploration Update. All material assumptions and technical parameters underpinning the estimates in that release
continue to apply and have not materially changed.
4.3 Restdown Gold Project Mineral Resources
Mineral resources compliant with the 2012 JORC Code for four discrete deposits at the Restdown Gold Project are summarised in
Table 5 below.
Table 5: Restdown Gold Project Mineral Resource (November 2019) at 0.4 g/t Au cut-off
Deposit
Classification
Classification
Tonnes
Sunrise
Good Friday
Boundary
Battery Tank
Total (0.3 g/t Au Cut)
Inferred
Inferred
Inferred
Inferred
Oxide/Trans
Oxide/Trans
Oxide/Trans
Oxide/Trans
Mt
1.58
0.45
1.54
0.18
3.75
(Rounding errors may occur in summary tables)
Au
g/t
1.1
0.9
0.9
1.0
1.0
Au
oz
56,400
13,700
42,800
5,900
118,800
Other than results contained in this report, 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 7 November 2019, Resource Upgrade to JORC2012 Cobar Gold
Project – Cobar NSW. All material assumptions and technical parameters underpinning the estimates in that release continue to
apply and have not materially changed.
4.4 Blanco y Negro Mineral Resource
A mineral resource compliant with the 2012 JORC Code for the Blanco Y Negro Mineral Resource, located in Chile, is summarised in
Table 6 below.
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Helix Resources Limited
Annual Report
For the year ended 30 June 2021
REVIEW OF OPERATIONS
Table 6: Blanco Y Negro Inferred Mineral Resource estimate (2013) at 0.4 and 0.8 % Cu cut-off grades
Cut-Off Grade Cu%
Tonnes
0.4
0.8
Mt
1,440,000
880,000
Cu
%
1.4
2.0
Au
g/t
0.5
0.7
Cu
t
20,000
17,500
Au
oz
23,000
21,000
(Rounding errors may occur in summary tables)
Other than results contained in this report, Helix confirms that it is not aware of any new information or data that materially affects
the Mineral Resource information included in Helix ASX releases dated 20 November 2013, Maiden Inferred Resource Blanco Y Negro
– Chile and 28 November 2013, Addendum to Blanco Y Negro Maiden Inferred Resource Announcement 20/11/2013. All material
assumptions and technical parameters underpinning the estimates in that release continue to apply and have not materially
changed.
5. REGIONAL SCALE EXPLORATION
The Company has approximately 1,300km2 of tenure in the Cobar region which covers an estimated 120km of prospective mineralised
trends. The 2021 exploration strategy aims to generate a ‘pipeline’ of new prospects to assess for advancing to resource delineation
work to add to the existing Mineral Resource inventory (Section 4).
The key targeting tools in the district comprise electromagnetic (EM) surveys and geochemistry underpinned by sound geological maps
and interpretations. Therefore, as part of the new exploration strategy, the Company’s immediate focus was to fly an aerial EM survey
over the remaining 80% of prospective trends with no EM coverage. In the following year this will be followed up with widespread multi-
element geochemical sampling with major portions of Helix’s tenure having had no effective (geophysical or geochemical) prior coverage.
In February 2021, the Company commenced a regional scale, detailed airborne electromagnetic survey across its Cobar region copper
projects. As shown in Figure 1, only approximately 20% of the prospective trends had regional scale EM coverage (denoted 2017 VTEM
survey). A total program of approximately 2,300 line-kilometres utilising the VTEM MAXTM system was completed (Figure 7). Regional
EM surveys have proven very successful in the Cobar region at identifying sulphide-mineral, copper deposits.
Figure 7: VTEM MAXTM system in flight (Photo – Geotech)
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Helix Resources Limited
Annual Report
For the year ended 30 June 2021
REVIEW OF OPERATIONS
Results of the airborne survey were reported in March 2021, with the Company identifying 24 high priority copper targets along the
combined 120km of prospective copper trends11.
Highlights for the three regional scale copper trends tested, include:
Collerina Trend – Eight high-priority targets identified. Extensions indicated to the immediate north and south of the CZ deposit,
as well as high confidence EM conductors to the north at Quanda which is in a similar trend as Aeris’ high-grade Kurrajong and
Constellation discoveries. Also, distinct subtle conductors at Fiveways are present south of CZ, which is on strike from the
Tottenham copper deposits and has no surface geochemical coverage.
Rochford Trend – Ten high-priority targets identified. Significant EM anomalies highlighting potential extensions of the
Canbelego deposit to the north, south and east, discrete high confidence EM anomalies in the north near the historical Boppy
Broken Hill copper workings – as well as reinforcing the potential of both the Cabellero and Bijoux prospects.
Meryula Trend – Six high priority targets identified. Strong, discrete EM anomalies highlighting prospective stratigraphy and
structural sites, supported by sparse geochemical data and historical copper (+ lead and zinc) workings.
6. CHILE PROJECTS
The Company owns 100% of 3 highly prospective early-stage copper (and gold) projects in an accessible, low-elevation area in Chile.
These comprise:
Blanco Y Negro: a historical mine with an Inferred Mineral Resource of 1.5 mt at 1.4% Cu and 0.5 g/t Au (refer Section 4.4);
Joshua Copper Porphyry: several large-scale copper targets defined by geophysics and drilling including 352 metres at 0.27%
Cu, 240 metres at 0.22% Cu and 400 metres at 0.25% Cu2; and
Samuel Project: large scale copper target defined by geophysics and early-stage drilling.
To maintain a focus on its Cobar region assets, Helix is exploring opportunities to attract outside, project level investment into this
highly endowed copper province. To facilitate this, the Company has recently addressed various legacy creditor and concession
matters which are now largely resolved.
7. COVID-19
The implications and risks to all Helix’s stakeholders from the Coronavirus has continued to dominate the way the Company has
operated through the current reporting period.
Helix has continued to adapt its activities and to monitor and mitigate the impacts of COVID-19 such as safety and health measures
in line with government guidelines. There remains significant uncertainty around the impact and duration of business disruptions in
Australia in general for the 2022 financial year which may or may not affect the Company’s exploration activities.
8. MINERAL ROYALTIES
Helix holds two iron ore focused mineral production royalties arising from historic joint venture and divestment transactions:
Yalleen Royalty: is a 1.0% FOB royalty on all iron ore production from the former Yalleen Iron Ore Project JV located in the west
Pilbara region of Western Australia (as well as a 1.0% NSR royalty on precious and base metals production). These royalty
interests arose following execution of a Sale Agreement with API Management Pty Ltd, Aquilla Steel Pty Ltd and AMC (IO) Pty
Ltd (the later two are owned by POSCO and Bao Steel respectively), announced in January 2018. Further background to its
Royalty interests is available in the ASX report “Helix Sells Yalleen Iron Ore Interests for Cash & Royalties” 15 January 2018 and
on the API Management website; https://www.apijv.com.au/.
Olary Royalty: is a 1% FOB royalty on all iron ore products produced and sold from EL6115 located in the Braemar Iron Province
of South Australia which hosts magnetite iron mineralisation. The EL is a core component of Lodestone Mines Limited’s Olary
Flats Project. Lodestone and Helix have recently refreshed the original Royalty Deed which was executed in January 2013.
Ltd website
Further background
https://www.lodestonemines.com/.
the Olary Flats project can be
Lodestone Mines
found on
the
to
11 See ASX Announcement 23 March 2021
13 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
REVIEW OF OPERATIONS
The Company is exploring commercialisation opportunities for these royalties.
9. COMPETENT PERSON STATEMENT
The information in this report that relates to exploration results and geological data for the Cobar region projects is based on
information compiled by Mr Gordon Barnes and Mr Mike Rosenstreich who are both employees and shareholders of the Company.
Mr Barnes is a Member of the Australian Institute of Geoscientists and Mr Rosenstreich is a Fellow of the Australasian Institute of
Mining and Metallurgy. They both have sufficient experience that is relevant to the styles of mineralisation and types of deposits
under consideration and to the activities being undertaken to each qualify as Competent Person(s) as defined in the 2012 Edition of
the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.
The information in the report which relates to Mineral Resource estimates has been reviewed by Mr Rosenstreich and Mr Barnes.
Original references to competent persons for the Mineral Resources have been provided elsewhere within this report. Mr Barnes
and Mr Rosenstreich have consented to the inclusion of this information in the form and context in which it appears in this report.
10. CORPORATE
10.1 Management
The Board has implemented significant management changes in the Company during the second half of the financial year to form a
new core executive leadership group comprising:
Mike Rosenstreich, Managing Director: commenced on 11 January 2021. He contributes a blend of technical and
commercial skills which are highly applicable to the Company as it continues to embark on its next phase of growth in the
Cobar basin12 (refer to the Directors Report – page 18 for further details of Mr. Rosenstreich’s qualifications, experience
and expertise). With the appointment of Mr Rosenstreich, Mr Peter Lester reverted to his previous role as Non-Executive
Chairman.
Gordon Barnes, Exploration Manager: commenced on 10 May 2021. Gordon has over 30 years of practical mineral
exploration experience, ranging from active field-based projects through to multi-commodity project generation initiatives
in Australia and overseas. He has extensive NSW copper and gold exploration experience, including Exploration Manager
roles with listed explorers Magmatic Resources Ltd and Clancy Exploration Ltd, and prior to that Geoinformatics Exploration
Pty Ltd. Since October 2018 he has been a Senior Consultant with R.W. Corkery & Co Pty Limited, a geological and
environmental consultancy specialising in NSW mining and development projects.
Meagan Hamblin, Chief Financial Officer: commenced in April 2021. Meagan is a Director of Meridian Corporate Consultants
with extensive experience in financial reporting, corporate accounting, advisory services, training, and workshop
facilitation. Prior to co-founding Meridian, Meagan worked in audit and advisory at Deloitte Perth and has more recently
worked as part of the statutory reporting team at Wesfarmers, which involved preparing the Annual Report, Board
reporting, providing technical accounting advice and facilitating accounting training.
10.2 Capital Management
During the financial year, the Company continued to prudently manage its capital with the aim of strategically supporting its
exploration activities. In February 2021 the Company successfully completed a placement to raise $3 million (before costs)13.
Due to strong demand, the placement was conducted via two-tranches to sophisticated investors comprising of:
Tranche 1 – An initial placement to raise $1,799,183 (Tranche 1) under the Company’s existing 15% (LR 7.1) and 10% (LR
7.1A) placement capacity; and
Tranche 2 – A capital raising of up to $1,200,817 (Tranche 2) which was undertaken following shareholder approval.
12 See ASX Announcement 14 December 2020
13 See ASX Announcement 18 February 2021
14 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
REVIEW OF OPERATIONS
Following the successful drilling results at the Canbelego JV, Helix sought to secure additional funding to maintain a long-term drilling
program. In May 2021, the Company raised $4 million (before costs) via a placement of approximately 149.4 million new shares at $0.027
per share under the Company’s existing 15% (LR 7.1) placement capacity14.
11. SUSTAINABILITY
In FY2021, the board of Helix Resources introduced a Sustainable Development and Environmental policy which will guide the Company’s
actions and ensure compliance with acceptable environmental, social and governance practices.
The development of the policy reflects the Company’s commitment to the community and to thinking sustainably as it explores for
copper, an essential component of electrification which is critical in a low-carbon economy.
To achieve these performance standards, Helix shall provide both adequate financial and human resources to ensure the Company:
Conducts operations, as a minimum, in compliance with all relevant environmental codes of practice, licences and legislation;
Identifies monitors and manages environmental risks arising from its operations;
Seeks continuous performance improvement in environmental management, production processes, waste management and
the use of resources;
Sets and periodically reviews objectives and targets which relate to environmental management;
Recognises and seeks to minimise its carbon footprint in all its operational activities;
Aims to recycle and reuse materials in its offices and exploration sites;
Provides appropriate training and awareness for all employees on environmental issues;
Communicates regularly with employees about its aims and about the responsibilities of individuals; and,
Communicates with shareholders and the community about its environmental performance and contributes to the
development of laws and regulations which may affect our business.
This is an essential update and ‘reset’ given legacy environmental and landholder issues from early 2018, to reaffirm for all stakeholders
the Company’s adherence to and ongoing development of an environmentally responsible culture to be promoted at all locations and
environmental awareness is to be included as a major component in the induction of personnel at all sites, including the corporate head
office.
14 See ASX Announcement 18 May 2021
15 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
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 2021 is available on the Company’s website at
www.helixresources.com.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.
16 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
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 2021.
Directors
The names of Directors who held office during or since the end of the year and until the date of this report are as follows. Directors
were in office for this entire period unless otherwise stated:
Peter Lester (Non-Executive Chairman)
Tim Kennedy (Non-Executive Director)
Jason Macdonald (Non-Executive Director)
Mike Rosenstreich (Managing Director)
Information on Directors
Name:
Title:
Qualifications:
Experience and expertise:
Other current directorships:
Former directorships (last 3 years):
Interests in shares:
Interests in options:
Name:
Title:
Qualifications:
Experience and expertise:
Other current directorships:
Former directorships (last 3 years):
Interests in shares:
Interests in options:
Peter Lester
Non-Executive Chairman (Executive Chairman for 1 July 2021 to 11 January 2021)
B.E (Mining), MAUSIMM, MAICD
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.
White Rock Minerals Limited (since April 2013).
Millennium Minerals Limited (from March 2017 to February 2020) and Kingrose Mining Limited
(from February 2020 to November 2020).
2,105,342
3,000,000
Timothy Kennedy
Non-Executive Director
BAppSc(Geol), GDOp(Comp), MBA, MAIMM
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 (ASX: IGO), which during his 11 years
tenure grew from being a junior explorer to a multi-asset and multi-commodity mining
company. In particular Mr Kennedy played a key role as part of the team that represented IGO
on the Exploration Steering Committee during the multi-million ounce Tropicana, Havana and
Boston Shaker discoveries; the discovery of the Rosie magmatic nickel sulphide deposit; the
discovery of the Bibra orogenic gold deposit; and the discovery of the Triumph VMS deposit.
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 technical positions with Resolute Limited,
Hunter Resources and PNC Exploration.
Sipa Resources Limited (since December 2016) and Yandal Resources Limited (since July 2021).
Millennium Minerals Limited (from May 2016 to February 2020).
450,000
nil
17 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
DIRECTORS’ REPORT
Name:
Title:
Qualifications:
Experience and expertise:
Other current directorships:
Former directorships (last 3 years):
Interests in shares:
Interests in options:
Name:
Title:
Qualifications:
Experience and expertise:
Other current directorships:
Former directorships (last 3 years):
Interests in shares:
Interests in options:
Company Secretary
Mr Benjamin Donovan
is a qualified
Jason Macdonald
Non-Executive Director
LLB, BCom
Mr Macdonald
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.
None
None
15,635,514
3,000,000
legal practitioner, he has practiced
Mike Rosenstreich
Managing Director
BSc(Hons), MEEC, FAusIMM, MAICD
Mr Rosenstreich contributes over 30 years technical, corporate and financial experience. He
has held senior geological roles covering exploration, development and production. He worked
in resource banking with NM Rothschild before becoming founding Managing Director of Bass
Metals, leading it from IPO, exploration success and over 5 years of base and precious metals
production. Since late 2013, he has held several executive roles with ASX listed companies
focused on ‘specialty materials’ such as tantalum, graphite and REE as well as gold and base
metals in Australia and off-shore.
Tantalum International Ltd (since May 2014).
Hexagon Energy Materials Ltd (from March 2017 to December 2020).
2,458,333
5,541,667
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.
Meetings of Directors
The number of meetings of the company's Board of Directors ('the Board') held during the year ended 30 June 2021, and the number
of meetings attended by each director were:
Full Board
Nomination and Remuneration
Committee
Audit and Risk Committee
Attended
Held
Attended
Held
Attended
Held
P Lester
T Kennedy
J Macdonald
M Rosenstreich
11
11
11
6
11
11
11
6
-
-
-
-
-
-
-
-
2
2
2
1
2
2
2
1
Held: represents the number of meetings held during the time the Director held office.
18 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
DIRECTORS’ REPORT
Principal activities
The principal activity of the Group consisted of copper, gold, 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 after income tax for the year ended 30 June 2021 was $1,169,550 (30 June 2020: $480,596) and net cash
outflows from operating activities of $1,104,126 (30 June 2020: $661,720). As at 30 June 2021, the Group had a net asset position of
$17,303,165 (30 June 2020: $9,904,434).
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.helixresources.com.au.
The Company's strategy 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.
Mineral Asset Project Highlights
Refer to the Review of Operations on page 4.
Corporate
Major corporate events during the year included:
●
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.
On 5 November 2020, 2,500,000 unlisted options were issued to the Lead Manager (Morgans Corporate) upon shareholder
approval for the successful Placement in November 2019. The options are exercisable at $0.024 each which an expiry date of 5
November 2022.
On 5 November 2020, 11,000,000 unlisted options were issued to the consultants for the successful Placement in July 2020. The
options are exercisable at $0.015 each which an expiry date of 31 December 2022.
On 11 January 2021, Mr Mike Rosenstreich was appointed as Managing Director. As such, Mr Peter Lester reverted to a non-
executive Chairman's role on the same date.
On 11 January 2021, the Company proposed the issue of 7,000,000 unlisted performance options to the Managing Director with
nil exercise price expiring on 11 January 2023. The performance options were issued in three tranches (21%, 37% and 42%) with
vesting dependent upon the satisfaction of specific performance hurdles. Shareholder approval was obtained for the options on
7 April 2021.
On 18 February 2021, the Company announced that it had received binding applications for $3 million (before costs) via a 2-
tranche placement of 300,000,000 fully paid ordinary shares at $0.01 per share, with 179,918,314 fully paid ordinary shares issued
in the first tranche under the Company's existing placement capacity and were issued on 24 February 2021, and the remaining
120,081,686 fully paid ordinary shares in the second tranche approved by shareholders at the general meeting on 7 April 2021
and issued on 13 April 2021. The Lead Manager was awarded 8,000,000 options exercisable at $0.02 expiring on 23 February
2024.
Unlisted options with an exercise price of $0.0607 (3,000,000 options) expired on 5 April 2021.
On 18 May 2021, 11,000,000 fully paid ordinary shares were issued on the exercise of unlisted options.
On 18 May 2021, the Company announced it had received binding applications for $4 million (before costs) via a placement of
149,400,989 million fully paid ordinary shares at $0.027 per share and the shares were issued on 26 May 2021. The Lead Manager
was awarded 10,000,000 options exercisable at $0.054 expiring on 26 May 2024.
On 29 June 2021, 2,500,000 fully paid ordinary shares were issued on the exercise of unlisted options.
●
●
●
●
●
●
●
●
●
Significant changes in the 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.
19 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
DIRECTORS’ REPORT
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.
Subsequent Events
●
●
●
On 2 August 2021, 1,458,333 fully paid ordinary shares were issued on exercise of Tranche A of the performance options issued
to the Company's Managing Director.
On 4 August 2021, the Company announced it had issued 6,000,000 performance options to employees of the Company.
On 2 September 20201, the Company announced it had entered into a binding offer letter with Alpha HPA Ltd (‘Alpha HPA’) to
acquire a new tenement (EL8703) prospective for copper/base metals adjacent to its Collerina tenements. As part of the
transaction, Helix will extinguish all ‘deemed’ joint venture rights over tenement EL8768 as well as reduce the Helix royalty by
0.5% NSR, whereby Alpha HPA will retain a 1.0% NSR Royalty on all metals from the former joint venture and newly acquired
tenements. The transaction will involve Helix issuing 20 million shares to Alpha HPA (subject to shareholder approval), with the
shares subject to voluntary escrow of between 9 to 18 months.
No matter or circumstance, other than those mentioned above, have arisen since 30 June 2021 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 financial years.
Share Options
As at the date of this report, there were 41,541,667 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.
13,500,000 fully paid ordinary shares were issued as a result of the exercise of options during the year raising $225,000.
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 2021. 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.
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:
Managing Director
Mr M Rosenstreich - Managing Director (appointed on 11 January 2021)
Non-Executive Directors
Mr P Lester - Non-Executive Chairman (previously Executive Chairman until 11 January 2021)
Mr T Kennedy - Non-Executive Director
Mr J Macdonald - Non-Executive Director
Key Management Personnel
Mr M Wilson - General Manager Geology (appointed 12 March 2020 and resigned on 22 June 2021)
20 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
DIRECTORS’ REPORT
Remuneration Governance
The Board appointed Mr Peter Lester, Mr Timothy Kennedy and Mr Jason Macdonald to the remuneration committee on 9 March 2021.
Each Director excludes themselves from matters in which they have a personal interest and Mr Timothy Kennedy chairs 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.helixresources.com.au.
Overall Remuneration Framework
The Board recognises that the Company’s performance and ultimate success in project delivery depends very much on its ability to
attract and retain highly skilled, qualified and motivated people. At the same time, remuneration practices must be transparent to
shareholders and be fair and competitive taking into account the nature, complexity and size of the organisation.
The approach to remuneration has been structured with the following objectives:
●
●
●
●
●
●
●
To attract and retain a highly skilled executive team who are motivated and rewarded for successfully delivering the short and
long-term objectives of the Company, including successful project delivery;
To link remuneration with performance, based on long-term objectives and shareholder return, as well as critical short-term
objectives which are aligned with the Company’s business strategy;
To set clear goals and reward performance for successful project development in a way which is sustainable, including in respect
of health & safety, environment, good corporate governance and community based objectives;
To be fair and competitive in 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 and
performance rights 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 and comprise each executive's total annual remuneration:
●
●
●
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.
21 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
DIRECTORS’ REPORT
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 is 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 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, and other key employees approved by the Board who influence or drive the
strategic direction of the Company. 7,000,000 performance options were issued to the Managing Director during the year as set out
below (2020: nil).
Value of
Performance
Options
granted during
the year
$
2021
Grant Date
Fair Value per
option
Exercise price
Expiry date
Number of
Performance
options held at
end of year
Mr M Rosenstreich
Mr M Rosenstreich
Mr M Rosenstreich
17,500
23,625
20,417
07/04/2021
07/04/2021
07/04/2021
0.0120
0.0090
0.0070
-
-
-
07/04/2026
07/04/2026
07/04/2026
1,458,333
2,625,000
2,916,667
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
approved to be paid.
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.
22 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
DIRECTORS’ REPORT
Primary benefits
Annual and
Long Service
Leave
Provision
$
Non-
Monetary
Benefits
$
Salary &
Fees
$
2021
Post
Employment
Equity
Superannuation
$
Options
$
Performance
Rights*
$
Total
$
P Lester1
J Macdonald
T Kennedy
M Rosenstreich2
M Wilson3
50,228
36,530
36,530
82,292
193,636
-
-
-
12,608
(72,484)
399,216
(59,876)
-
-
-
-
-
-
4,772
3,470
3,470
7,818
18,395
37,925
-
-
-
-
-
-
-
-
-
22,937
-
55,000
40,000
40,000
125,655
139,547
22,937
400,202
1Mr P Lester was appointed as Executive Chairman on 13 March 2020 and transitioned to Non-Executive Chairman on 11 January 2021.
2Mr M Rosenstreich was appointed on 11 January 2021.
3Mr M Wilson was appointed as General Manager - Geology on 12 March 2020 and resigned on 22 June 2021.
%
-
-
-
18.25%
-
*The performance rights include market based vesting conditions and therefore can only be exercised on the satisfaction of the vesting conditions.
The performance rights have been valued using a barrier up-and-in trinomial option pricing model with a Parisian barrier adjustment. The model takes
into consideration that the performance rights will vest at any time during the performance period, given that the relevant VWAP barriers are met.
The value disclosed in the above table is the portion of the fair value of the rights recognised in the reporting period.
Primary
benefits
Salary &
Fees
$
Annual and
Long Service
Leave
Provision
$
Non-
Monetary
Benefits
$
Post
Employment
Equity
Superannuation
$
Options (*)
$
Performance
Rights
$
Total
$
Performance
Related
%
39,764
28,919
28,919
191,818
-
-
-
(7,893)
289,420
(7,893)
-
-
-
-
-
3,778
2,747
2,747
18,223
10,556
10,556
7,496
10,556
27,495
39,164
-
-
-
-
-
54,098
42,222
39,162
212,704
348,186
-
-
-
-
2020
P Lester1
J Macdonald
T Kennedy
M Wilson2
1Mr 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.
2Mr Wilson resigned as Managing Director and was appointed as General Manager - Geology on 12 March 2020.
*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 the 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’ salaries were waived in full and management salaries were reduced by 20% for the three months April to June 2020 as part
of cost conservation during the early stages of the COVID-19 crisis.
No short-term cash bonuses were paid or accrued for during the year ended 30 June 2021 (30 June 2020: 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.
23 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
DIRECTORS’ REPORT
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
2017
2018
2019
2020
2021
Other income
Net (loss)
Share price
Loss per share (cents)
Dividends
22,495
(6,312,894)
$0.037
(1.94)
Nil
43,940
(348,200)
$0.037
(0.09)
Nil
63,995
(720,037)
$0.014
(0.17)
Nil
144,636
(480,596)
$0.014
(0.10)
Nil
201,339
(1,169,550)
$0.025
(0.13)
Nil
Service agreements
On appointment to the Board all Non-Executive Directors enter into a service agreement in the form of a letter of appointment. The
letter sets out the Company’s policies and terms including compensation relevant to the Director.
Remuneration and other key terms of employment for the Managing Director and other executives are formalised in executive service
agreements. The agreements provide for payment of fixed remuneration, performance related cash bonuses where applicable, other
allowances and confirm eligibility to participle in the Company’s STI and LTI plans. The major provisions of the agreements relating to
remuneration are set out below.
Name
Base Salary / Fee (1)
Term of Agreement
Notice Period by
P Lester
T Kennedy
J Macdonald
M Rosenstreich
(1) Inclusive of Superannuation guarantee contributions.
(2) $250,000 per annum full time - $175,000 on 70% part time basis.
55,000
40,000
40,000
250,0002
Not specified
Not specified
Not specified
Not specified
Company
Not Specified
Not specified
Not specified
3 months
Notice Period from
Executive
Not Specified
Not specified
Not specified
3 months
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
P Lester
T Kennedy
J Macdonald
M Rosenstreich
Balance as at
1 July 2020
3,000,000
3,000,000
3,000,000
-
Options
Granted during
year as
remuneration
-
-
-
7,000,000
Options
Exercised
during year
Options
Expired
during year
-
-
-
-
-
(3,000,000)
-
-
Balance as
at 30 June
2021
3,000,000
-
3,000,000
7,000,000
Options
vested &
exercisable at
end of year
3,000,000
-
3,000,000
1,458,333
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.
Directors/Key Management Personnel
Balance as at 1
July 2020
Purchased
Disposed
Other
Movements
Balance as at
30 June 2021
P Lester
T Kennedy
J Macdonald
M Rosenstreich1
1M Rosenstreich was appointed on 11 January 2021.
736,895
300,000
10,846,764
-
1,368,447
150,000
4,788,750
-
-
-
-
-
-
-
-
1,000,000
2,105,342
450,000
15,635,514
1,000,000
24 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
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:
Any proposed transaction is at arm’s length and on normal commercial terms; and
(a)
(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 2021, 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
A total of 82.75% of votes determined via a poll at the Company’s 2020 Annual General Meeting on the resolution dealing with the
Remuneration Report for the financial year ended 30 June 2020 were cast in favour of the resolution. The resolution was passed by the
required 75% majority. There was no specific feedback at the Annual General Meeting in relation to the Remuneration Report.
This concludes the remuneration report, which has been audited.
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.
a number of aircore drillholes may have been drilled in early 2018 without all requisite statutory approvals;
there were other potential non-compliances in relation to rehabilitation work required at a historical drill site; and
that Landholder compensation payments were in arrears.
On and from 6 September 2021 the Company became aware that:
●
●
●
Helix ‘self-reported’ the above suspected breaches to the NSW Resources Regulator. The Company is committed to co-operating fully
with the Regulator and any investigation deemed necessary by the Regulator. As at 30 June 2021, no provision has been recognised
and no contingent liability disclosed in relation to the suspected breaches as the matter is still under investigation with the NSW
Resources Regulator and the outcome as yet cannot reasonably be determined by management.
A preliminary risk assessment completed by the Company indicates there are no other regulatory breaches associated with its
operations.
Pending the outcome of any possible investigation by the Regulator, Helix has taken active steps to verify that rehabilitation was
completed for the unpermitted drillholes, recompense the Landholders in respect of outstanding amounts and has commenced
rehabilitation of the identified historical drill site.
These non-compliance event occurred prior to the appointment of the majority of the current Directors and prior to the new
25 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
DIRECTORS’ REPORT
management team that was appointed in 2021. The Board has now satisfied themselves that appropriate compliance measures and a
suitably experienced team are in place to ensure that these type of events cannot occur in the future.
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 29 of the annual report.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the directors
Mike Rosenstreich
Managing Director
Signed at Perth on 30 September 2021
26 | P a g e
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 2021, 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
30 September 2021
N G Neill
Partner
27 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
DIRECTORS’ DECLARATION
The Directors of the Company declare that:
The consolidated financial statements and notes, as set out on pages 31 to 61 are in accordance with the Corporations Act 2001 and:
Comply with Australian Accounting Standards (including the Australian Accounting Interpretations), the Corporations Regulations
●
2001 and other mandatory professional reporting requirements;
Give a true and fair view of the financial position of the Group as at 30 June 2021 and of its performance for the year ended on
that date; and
Complies with International Financial Reporting Standards as disclosed in Note 1.
●
●
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
Mike Rosenstreich
Managing Director
Signed at Perth on 30 September 2021
28 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Revenue
Other income
Expenses
Other expenses
Employment costs
Directors fees
Share based payments
Depreciation and amortisation expense
Audit and accountancy
Professional fees
Information technology costs
Corporate marketing costs
Share registry and listing fees
Premises costs
Travel expenses
Exploration expenditure
Foreign exchange gain/(loss)
Note
Consolidated
2021
$
2020*
$
14
15
201,340
143,921
(161,460)
(99,414)
(196,921)
(32,544)
(54,257)
(42,507)
(110,280)
(15,585)
(119,762)
(34,422)
(45,898)
(14,803)
(108,360)
765
(121,424)
(67,155)
(129,695)
(49,719)
(58,486)
(76,434)
(54,581)
(4,010)
(13,085)
(18,212)
(20,068)
(2,750)
(36,138)
-
Loss before income tax expense from continuing operations
(834,108)
(507,836)
Income tax expense
20
-
-
Loss after income tax expense from continuing operations
(834,108)
(507,836)
(Loss)/profit after income tax expense from discontinued operations
16
(335,442)
27,240
Loss after income tax expense for the year attributable to the owners of Helix Resources
Limited
13
(1,169,550)
(480,596)
Other comprehensive loss for the year, net of tax
-
-
Total comprehensive loss for the year attributable to the owners of Helix Resources
Limited
(1,169,550)
(480,596)
*In accordance with AASB 5 Non-Current Assets Held For Sale and Discontinued Operations, the comparatives have been restated for
discontinued operations that have arisen during the year. Refer to Note 16.
The above statement of cash flows should be read in conjunction with the accompanying notes
29 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Earnings per share for loss from continuing operations attributable to the owners of Helix
Resources Limited
Basic earnings per share
Diluted earnings per share
Earnings per share for profit/(loss) from discontinued operations attributable to the
owners of Helix Resources Limited
Basic earnings per share
Diluted earnings per share
Earnings per share for loss attributable to the owners of Helix Resources Limited
Basic earnings per share
Diluted earnings per share
Cents
Cents
24
24
24
24
24
24
(0.09)
(0.09)
(0.11)
(0.11)
(0.04)
(0.04)
(0.13)
(0.13)
0.01
0.01
(0.10)
(0.10)
The above statement of cash flows should be read in conjunction with the accompanying notes
30 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
STATEMENT OF FINANCIAL POSITION
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Other Assets
Assets of disposal groups classified as held for sale
Total current assets
Non-current assets
Plant and equipment
Right-of-use assets
Exploration and evaluation
Other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Lease liabilities
Provisions
Liabilities directly associated with assets classified as held for sale
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
2021
$
2020
$
2a
3
5
16
6
7
4
5
8
10
9
16
10
5,389,903
466,348
-
5,856,251
21,226
5,877,477
155,356
113,101
237,565
506,022
-
506,022
29,161
19,294
11,916,031
305,502
12,269,988
33,114
65,598
10,059,074
244,902
10,402,688
18,147,465
10,908,710
652,267
20,517
73,061
745,845
98,455
844,300
830,642
46,624
106,493
983,759
-
983,759
-
-
20,517
20,517
844,300
1,004,276
17,303,165
9,904,434
11
12
13
75,822,165
550,360
(59,069,360)
67,676,147
186,595
(57,958,308)
17,303,165
9,904,434
The above statement of cash flows should be read in conjunction with the accompanying notes
31 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
STATEMENT OF CHANGES IN EQUITY
Consolidated
Balance at 1 July 2019
Loss after income tax expense for the year
Other comprehensive loss for the year, net of tax
Total comprehensive loss for the year
Transactions with owners in their capacity as owners:
Issue of shares
Share issue costs
Options vested
Options expired
Issued
capital
$
Reserves
$
Accumulated
Losses
$
Total equity
$
66,517,020
190,979
(57,531,815)
9,176,184
-
-
-
-
-
-
(480,596)
-
(480,596)
-
(480,596)
(480,596)
1,297,127
(138,000)
-
-
-
-
49,719
(54,103)
-
-
-
54,103
1,297,127
(138,000)
49,719
-
Balance at 30 June 2020
67,676,147
186,595
(57,958,308)
9,904,434
Consolidated
Balance at 1 July 2020
Loss after income tax expense for the year
Other comprehensive loss for the year, net of tax
Total comprehensive loss for the year
Transactions with owners in their capacity as owners:
Issue of shares
Share issue costs
Options vested
Transfer of options exercised
Options expired
Issued
capital
$
Reserves
$
Accumulated
Losses
$
Total equity
$
67,676,147
186,595
(57,958,308)
9,904,434
-
-
-
-
-
-
(1,169,550)
-
(1,169,550)
-
(1,169,550)
(1,169,550)
9,111,773
(1,031,623)
-
65,868
-
-
-
488,131
(65,868)
(58,498)
-
-
-
-
58,498
9,111,773
(1,031,623)
488,131
-
-
Balance at 30 June 2021
75,822,165
550,360
(59,069,360)
17,303,165
The above statement of cash flows should be read in conjunction with the accompanying notes
32 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
STATEMENT OF CASH FLOWS
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Interest Received
Interest paid on right-of-use asset
Net cash from discontinuing operations
Net cash used in operating activities
Cash flows from investing activities
Payments for property, plant and equipment
Payments for capitalised exploration & evaluation expenditure
Payments for security deposits
Payments for JV capitalised exploration & evaluation expenditure
Advances for explorations expenditure
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Proceeds from exercise of options
Share issue costs
Payment of lease principal
Net cash from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
Note
Consolidated
2021
$
2020*
$
-
(786,974)
(786,974)
5,556
(6,547)
(316,161)
-
(109,291)
(109,291)
1,553
(6,025)
(547,957)
2b
(1,104,126)
(661,720)
6
4
11
(4,000)
-
(75,000)
(2,105,911)
50,000
-
(701,918)
(10,000)
-
-
(2,134,911)
(711,918)
8,886,773
225,000
(597,050)
(46,624)
1,306,927
-
(97,542)
(46,782)
8,468,099
1,162,603
5,229,062
155,356
5,485
(211,035)
366,391
-
Cash and cash equivalents at the end of the financial year
2
5,389,903
155,356
*In accordance with AASB 5 Non-Current Assets Held For Sale and Discontinued Operations, the comparatives have been restated for
discontinued operations that have arisen during the year. Refer to Note 16.
The above statement of cash flows should be read in conjunction with the accompanying notes
33 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
NOTES TO THE FINANCIAL STATEMENTS
Note 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.
a) Principles of Consolidation
The Group financial statements consolidate those of the Company and all of its subsidiaries as of 30 June 2021. 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. Balances 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.
b) Cash and Cash Equivalents
Cash on hand and in banks and short term deposits are stated at nominal value. For the purposes of the Statement of Cash Flows, cash
includes cash on hand and in banks, and money market investments readily convertible to cash within 90 days.
c) Income Tax
The income tax expense or revenue for the period is the tax payable on the current period's taxable income based on the national
income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences
between the tax bases of assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are
recovered or liabilities are settled, based on those tax rates which are enacted or substantively enacted for each jurisdiction. The
relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to measure the deferred tax
asset or liability. An exception is made for certain temporary differences arising from the initial recognition of an asset or a liability. No
deferred tax asset or liability is recognised in relation to these temporary differences if they arose in a transaction, other than a business
combination, that at the time of the transaction did not affect either accounting profit or taxable profit or loss.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable
amounts will be available to utilise those temporary differences and losses. Deferred tax liabilities and assets are not recognised for
temporary 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.
34 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
NOTES TO THE FINANCIAL STATEMENTS
Note 1. Summary of accounting policies (continued)
d) Plant and Equipment
Plant and equipment are measured on the cost basis.
The carrying amount of plant and equipment is reviewed annually by Directors to ensure it is not in excess of the recoverable amount
from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the asset’s
employment and subsequent disposal.
The depreciation rates used for each class of depreciable assets are:
Plant and equipment:
- Straight line 10% - 33%
- Diminishing Value 20% - 40%
Motor Vehicles:
- Diminishing Value 22.5%
De-recognition and disposal
An item of plant and equipment is derecognised on disposal or when no further future economic benefits are expected from its use or
disposal. Any gain or loss arising on the de-recognition of the asset (calculated as the difference between the net disposal proceeds and
the carrying amount of the asset) is included in profit or loss in the year the asset is derecognised.
e) Exploration and Evaluation
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are only
carried forward to the extent that they are expected to be recouped through the successful development of the area or where activities
in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves.
Ultimate recoupment of these costs is dependent on the successful development and commercial exploitation, or alternatively, sale,
of the respective areas of interest.
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.
Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore, studies, exploratory
drilling, trenching and sampling and associated activities. General and administrative costs are only included in the measurement of
exploration and evaluation costs where they are related directly to operational activities in a particular area of interest.
f) Leases
The Group adopted AASB 16 on 1 July 2019. 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.
35 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
NOTES TO THE FINANCIAL STATEMENTS
Note 1. Summary of accounting policies (continued)
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.
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.
g) Financial Instruments
Recognition, initial measurement and derecognition
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the financial
instrument and are measured initially at fair value adjusted by transactions costs, except for those carried at fair value through profit
or loss, which are measured initially at fair value. Subsequent measurement of financial assets and financial liabilities are described
below.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial
asset and all substantial risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged,
cancelled or expires.
Classification and subsequent measurement of financial assets
Except for those trade receivables that do not contain a significant financing component and are measured at the transaction price in
accordance with AASB 15, all financial assets are initially measured at fair value adjusted for transaction costs (where applicable).
For the purpose of subsequent measurement, financial assets other than those designated and effective as hedging instruments are
classified into the following categories upon initial recognition:
• Amortised cost
• Fair value through profit or loss (FVPL)
• Equity instruments at fair value through other comprehensive income (FVOCI)
• Debt instruments at fair value through other comprehensive income (FVOCI)
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
36 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
NOTES TO THE FINANCIAL STATEMENTS
Note 1. Summary of accounting policies (continued)
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.
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.
h) Impairment of Non-Financial Assets
Non-financial assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets
that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purposes
of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating
units).
37 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
NOTES TO THE FINANCIAL STATEMENTS
Note 1. Summary of accounting policies (continued)
i) Employee Benefits
Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave when it is
probable that settlement will be required and they are capable of being measured reliably. Provision is made in respect of wages and
salaries, annual leave and other employee benefits expected to be settled wholly within 12 months, are measured at their nominal
values using the remuneration rate expected to apply at the time of settlement. Provision made in respect of long service leave which
is not expected to be settled within 12 months is measured as the present value of the estimated future cash outflows to be made by
the Group in respect of services provided by the employees up to reporting date.
Share-based payments
Share-based compensation benefits are provided to employees via various Share Option Plans.
The fair value of options granted is recognised as an employee benefit expense with a corresponding increase in equity. The fair value
is measured at grant date and recognised over the period during which the employees become unconditionally entitled to the options.
The fair value at grant date is independently determined using a Black-Scholes option pricing model that takes into account the exercise
price, the term of the option, the vesting and performance criteria, the impact of dilution, the non-tradable nature of the option, the
share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk-free interest
rate for the term of the option. Performance options are valued by independent experts using a barrier up-and-in trinomial option
pricing model with a Parisian barrier adjustment.
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.
j) Interest in Joint Venture Operations
Associates are those entities over which the Group is able to exert significant influence but which are not subsidiaries.
A joint venture is an arrangement that the Group controls jointly with one or more other investors, and over which the Group has rights
to a share of the arrangement’s net assets rather than direct rights to underlying assets and obligations for underlying liabilities. A joint
arrangement in which the Group has direct rights to underlying assets and obligations for underlying liabilities is classified as a joint
operation.
Investments in associates and joint ventures are accounted for using the equity method. Interests in joint operations are accounted for
by recognising the Group’s assets (including its share of any assets held jointly), its liabilities (including its share of any liabilities incurred
jointly), its revenue from the sale of its share of the output arising from the joint operation, its share of the revenue from the sale of
the output by the joint operation and its expenses (including its share of any expenses incurred jointly).
Any goodwill or fair value adjustment attributable to the Group’s share in the associate or joint venture is not recognised separately
and is included in the amount recognised as investment.
The carrying amount of the investment in associates and joint ventures is increased or decreased to recognise the Group’s share of the
profit or loss and other comprehensive income of the associate and joint venture, adjusted where necessary to ensure consistency with
the accounting policies of the Group.
Unrealised gains and losses on transactions between the Group and its associates and joint ventures are eliminated to the extent of
the Group’s interest in those entities. Where unrealised losses are eliminated, the underlying asset is also tested for impairment.
Details of interests in joint ventures are shown at Note 25 .
38 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
NOTES TO THE FINANCIAL STATEMENTS
Note 1. Summary of accounting policies (continued)
k) Revenue
Income from the disposal of assets is recognised when the Group has passed control of the goods or other assets to the buyer. Interest
on bank deposits is recognised as income as it accrues.
Interest revenue is recognised using the effective interest rate method, which, for floating rate financial assets, is the rate inherent in
the instrument and is net of GST.
Other income is recognised when it is received or when the right to receive payment is established.
l) Goods and Services Tax
Revenues, expenses and assets are recognised net of the amount of goods and services tax GST), except:
• where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of
an asset or as part of an item of expense; or
• for receivables and payables which are recognised inclusive of GST.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables.
Cash flows are included in the statement of cash flows on a gross basis. The GST component of cash flows arising from investing and
financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
m) Fair Value Estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes.
The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and trading and available-for-sale
securities) is based on quoted market prices at the reporting date. The quoted market price used for financial assets held by the Group
is the current bid price; the appropriate quoted market price for financial liabilities is the current ask price.
The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined
using valuation techniques. The Group uses a variety of methods and makes assumptions that are based on market conditions existing
at each reporting date. Quoted market prices or dealer quotes for similar instruments are used for long-term debt instruments held.
Other techniques, such as estimated discounted cash flows, are used to determine fair value for the remaining financial instruments.
The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate their fair values.
The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current
market interest rate that is available to the Group for similar financial instruments.
n) Provisions
Mine restoration and rehabilitation costs are provided for at the present value of future expected expenditures required to settle the
Group’s obligations on commencement of commercial production, discounted using a rate specified to the liability. When this provision
is recognised a corresponding asset is also recognised as part of the development costs of the mine to the extent that it is considered
that the provision gives access to future economic benefits. On an ongoing basis, the rehabilitation liability is re-measured at each
reporting period in line with the changes in the time value of money (recognised as an expense in the statement of profit or loss and
other comprehensive income and an increase in the provision), and additional disturbances or changes in rehabilitation costs will be
recognised as additions or changes to the corresponding asset and rehabilitation liability.
o) Foreign Currency Translation
Functional and Presentation Currency
The consolidated financial statements are presented in Australian dollars (AUD), which is the Company’s functional and presentation
currency.
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
39 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
NOTES TO THE FINANCIAL STATEMENTS
Note 1. Summary of accounting policies (continued)
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.
p) Operating Segment
Operating segments are presented using the ‘management approach’ where the information presented is on the same basis as the
internal reports provided to the Chief Operating Decision Makers (‘CODM’) who are the Board of Directors. The CODM is responsible
for the allocation of resources to operating segments and assessing their performance.
q) Non-current assets or disposal groups classified as held for sale
Non-current assets and assets of disposal groups are classified as held for sale if their carrying amount will be recovered principally
through a sale transaction rather than through continued use. They are measured at the lower of their carrying amount and fair value
less costs of disposal. For non-current assets or assets of disposal groups to be classified as held for sale, they must be available for
immediate sale in their present condition and their sale must be highly probable.
An impairment loss is recognised for any initial or subsequent write down of the non-current assets and assets of disposal groups to
fair value less costs of disposal. A gain is recognised for any subsequent increases in fair value less costs of disposal of a non-current
assets and assets of disposal groups, but not in excess of any cumulative impairment loss previously recognised.
r) New or amended Accounting Standards adopted by the Group
The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting
Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
s) Critical Accounting Estimates and Other Accounting Judgements
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations
of future events that are believed to be reasonable under the circumstances.
In the application of the Australian Accounting Standards, management is required to make judgments, estimates and assumptions
about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated
assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances,
the results of which form the basis of making the judgments. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
year in which the estimate is revised if the revision affects only that year or in the year of the revision and future years if the revision
affects both current and future years.
The Group is of the view that there are no critical accounting estimates and judgements in this financial report, other than accounting
estimates and judgements in relation to the following:
Exploration and Evaluation Expenditure
The Group capitalises expenditure relating to exploration and evaluation where it is considered likely to be recoverable or where the
activities have not reached a stage which permits a reasonable assessment of the existence of resources or reserves. Refer to Note 4
for further details on exploration and evaluation expenditure.
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. Refer to Note 12 for details of options on issue.
40 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
NOTES TO THE FINANCIAL STATEMENTS
Note 1. Summary of accounting policies (continued)
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. Refer to Note 10 for details on lease liabilities.
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. Refer to Note 10 for details on interest on lease
liabilities.
t) Going concern
These financial statements have been prepared on the going concern basis, which contemplates continuity of normal business activities
and the realisation of assets and the settlement of liabilities in the ordinary course of business. The Directors are satisfied the Company
is a going concern, whilst it incurred a loss after income tax for the year ended 30 June 2021 of $1,169,550, it had a net asset position
of $17,303,165 and a cash balance of $5,389,903 as at 30 June 2021. The Company has the ability to reduce forecast expenditure if
required and it is anticipated that additional capital can be raised in the future if required.
Note 2. Cash and cash equivalents
a) Reconciliation of Cash
For the purposes of the statement of cash flows and statement of financial position, cash and cash equivalents include cash on hand
and in banks, and investments in money market instruments, net of outstanding bank overdrafts. Cash at the end of the financial year
as shown in the statement of cash flows is reconciled to the related items in the statement of financial position as follows:
Current assets
Cash at bank
Cash on hand
Consolidated
2021
$
2020
$
5,389,903
-
155,276
80
5,389,903
155,356
Cash on hand is non-interest bearing. Cash at bank bears floating interest rates between 0.00% and 0.25% (2020: between 0.00% and
0.25%).
41 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
NOTES TO THE FINANCIAL STATEMENTS
Note 2. Cash and cash equivalents (continued)
b) Reconciliation of Loss after Income Tax to Cash Flows Provided by Operating Activities
Loss after income tax expense for the year
Non-cash flows in loss
Depreciation
Gain on foreign exchange transactions
Share based payments
Revenue from JV
Changes in net assets and liabilities
(Increase)/ decrease in trade and other receivables
(Increase)/ decrease in trade and other payables
(Increase)/ decrease in provisions
Net cash used in operating activities
Consolidated
2021
$
2020
$
(1,169,550)
(480,596)
54,257
(765)
32,544
(69,922)
58,486
-
49,719
-
189,740
(106,998)
(33,432)
(271,309)
9,313
(27,333)
(1,104,126)
(661,720)
c) Non-Cash Financing Activities
During the year ended 30 June 2021, $9,607 options vested and $22,937 performance rights vested (30 June 2020: $49,719).
d) Funding from Exploration Partners
Included in the statement of cash flows is $50,000 (30 June 2020: $1,231,113) proceeds from joint venture partners. The current year's
contribution of $50,000 relates to the Canbelego Joint Venture (30 June 2020: relates to Chilean projects).
Note 3. Trade and other receivables
Current assets
Other receivables
Prepayments
No current or past due receivables were impaired at the end of the financial year.
Consolidated
2021
$
2020
$
396,951
69,397
62,099
51,002
466,348
113,101
42 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
NOTES TO THE FINANCIAL STATEMENTS
Note 4. Exploration and Evaluation
Assets in the exploration and evaluation phase (at cost):
Balance at 1 July
Expenditure incurred during the year
JV Partner contributions
Impairment losses
Total
Consolidated
$
$
10,059,074
2,099,284
(242,327)
-
9,272,553
786,521
-
-
11,916,031
10,059,074
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 (2020: $nil) against the carrying value of its
exploration and evaluation expenditure.
Note 5. Other Assets
Current assets
Other current assets
Non-current assets
Security Deposits
Consolidated
2021
$
2020
$
-
237,565
305,502
244,902
305,502
482,467
Other current assets in the prior year represents advances to JOGMEC to fund Chilean exploration expenditure on the Samuel Project.
No funds were transferred in the current period.
Security deposits relates to deposits held to secure exploration tenement holdings.
43 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
NOTES TO THE FINANCIAL STATEMENTS
Note 6. Plant and Equipment
Non-current assets
Plant and equipment - at cost
Less: Accumulated depreciation
Motor vehicles - at cost
Less: Accumulated depreciation
Consolidated
2021
$
2020
$
129,626
(123,128)
6,498
161,054
(138,391)
22,663
125,627
(121,755)
3,872
161,054
(131,812)
29,242
29,161
33,114
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below:
Consolidated
Balance at 1 July 2019
Depreciation expense
Balance at 30 June 2020
Additions
Depreciation expense
Balance at 30 June 2021
Note 7. Right-of-use assets
Non-current assets
Right of use asset
Less: Accumulated depreciation
Plant &
Equipment
$
Motor Vehicles
$
Total
$
5,543
(1,671)
3,872
4,000
(1,374)
37,732
(8,490)
29,242
-
(6,579)
43,275
(10,161)
33,114
4,000
(7,953)
6,498
22,663
29,161
Consolidated
2021
$
2020
$
92,609
(73,315)
92,609
(27,011)
19,294
65,598
44 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
NOTES TO THE FINANCIAL STATEMENTS
Note 7. Right-of-use assets (continued)
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below:
Consolidated
Balance at 1 July 2019
Additions
Revaluation1
Depreciation expense
Balance at 30 June 2020
Depreciation expense
Balance at 30 June 2021
Consolidated
Right-of-use
Asset
$
-
123,621
(9,698)
(48,325)
65,598
(46,304)
19,294
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 the lease payments, using
an incremental borrowing rate of 6.11%.
Note 8. Trade and other payables
Current liabilities
Trade payables
Other payables
All amounts are current and are expected to be settled within 12 months.
Note 9. Provisions
Current liabilities
Annual leave provision
Long service leave provision
Consolidated
2021
$
2020
$
533,264
119,003
423,384
407,258
652,267
830,642
Consolidated
2021
$
2020
$
42,046
31,015
66,593
39,900
73,061
106,493
45 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
NOTES TO THE FINANCIAL STATEMENTS
Note 10. Lease liabilities
Future minimum lease payments at 30 June are as follows:
Lease liabilities
Lease payments less than 1 year
Lease payments 2-5 years
Lease payments 5+ years
Total
Lease liability
Current
Non-current
Total
Amounts recognised in profit or loss
Interest on lease liabilities
Depreciation expense on right-of-use asset
Total
Movement in Lease Liabilities
Balance at 1 July
Recognition on adoption of AASB 16
Lease modification
Lease repayment
Total
Consolidated
2021
$
2020
$
20,517
-
-
46,624
20,517
-
20,517
67,141
Consolidated
2021
$
2020
$
20,517
-
46,624
20,517
20,517
67,141
Consolidated
2021
$
2020
$
2,745
46,304
5,107
48,325
49,049
53,432
Consolidated
2021
$
2020
$
67,141
-
-
(46,624)
-
123,947
(10,024)
(46,782)
20,517
67,141
46 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
NOTES TO THE FINANCIAL STATEMENTS
Note 11. Share Capital
Consolidated
2021
Shares
2020
Shares
2021
$
2020
$
Ordinary shares – fully paid
1,257,020,917
529,413,361
75,822,165
67,676,147
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.
Fully Paid Ordinary Shares
Balance at 1 July
Share Issue @ $0.16(i)
Share Issue @ $0.007(ii)
Share Issue @ $0.007(iii)
Share Issue @ $0.01(iv)
Share Issue @ $0.01(v)
Conversion of options(vi)
Share Issue @ $0.027(vii)
Conversion of options(viii)
Transfer exercise of options (Class H & G)
Share Issue Costs
2021
No. Shares
2021
$
2020
No. Shares
2020
$
529,413,361
-
-
264,706,567
179,918,314
120,081,686
11,000,000
149,400,989
2,500,000
-
-
67,676,147
-
-
1,852,946
1,799,183
1,200,817
165,000
4,033,827
60,000
65,868
(1,031,623)
424,466,692
62,500,000
42,446,669
-
-
-
-
-
-
-
-
66,517,020
1,000,000
297,127
-
-
-
-
-
-
-
(138,000)
Total
1,257,020,917
75,822,165
529,413,361
67,676,147
(i)
(ii)
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.
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.
(iii) On 10 July 2020, 264,706,567 fully paid ordinary shares were issued to institutional and sophisticated investors at an issue price
of $0.007 per share.
(iv) On 24 February 2021, 179,918,314 fully paid ordinary shares were issued to institutional and sophisticated investors at an issue
(v)
price of $0.01 per share.
On 13 April 2021, 120,081,686 fully paid ordinary shares were issued to institutional and sophisticated investors at an issue price
of $0.01 per share.
(vi) On 18 May 2021 11,000,000 options (Class H) converted to fully paid ordinary shares at an exercise price of $0.015
(vii) On 26 May 2021, 149,400,989 fully paid ordinary shares were issued to institutional and sophisticated investors at an issue price
of $0.027 per share.
(viii) On 29 June 2021, 2,500,000 options (Class G) converted to fully paid ordinary shares at an exercise price of $0.024.
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.
47 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
NOTES TO THE FINANCIAL STATEMENTS
Note 12. Reserves
Unlisted Options
Balance at 1 July
Options expired(i)
Options issued to Lead Manager(ii)
Options issued to consultants(iii)
Options issued in prior period vesting during the current period
Options issued to Lead Manager(iv)
Expiry of options(v)
Performance rights issued to Managing Director(vi)
Exercise of options(vii)
Options issued to Lead Manager(viii)
Exercise of options(ix)
2021
No.
2021
$
2020
No.
2020
$
15,000,000
-
2,500,000
11,000,000
-
8,000,000
(3,000,000)
7,000,000
(11,000,000)
10,000,000
(2,500,000)
186,595
-
10,433
55,435
9,607
67,271
(58,498)
22,937
(55,435)
322,448
(10,433)
17,000,000
(2,000,000)
-
-
-
-
-
-
-
-
-
190,979
(54,103)
-
-
49,719
-
-
-
-
-
-
Balance at 30 June
37,000,000
550,360
15,000,000
186,595
(i)
(ii)
On 2 May 2020, 2,000,000 unlisted options (Class C) expired
On 5 November 2020, 2,500,000 unlisted options were issued to the Lead Manager (Morgans Corporate) upon shareholder
approval for the successful Placement in November 2019. The options are exercisable at $0.024 each which an expiry date of 5
November 2022. All the options vested on the grant date. The Black Sholes option pricing model was used to value these options
and inputs used are as stated in the table below.
(iii) On 5 November 2020, 11,000,000 unlisted options were issued to the consultants for the successful Placement in July 2020. The
options are exercisable at $0.015 each which an expiry date of 31 December 2022. All the options vested on the grant date. The
Black Sholes option pricing model was used to value these options and inputs used are as stated in the table below.
(iv) On 24 February 2021, 8,000,000 unlisted options were issued to the Lead Manager (JP Equity) upon shareholder approval for the
successful Placement in February 2021. The options are exercisable at $0.02 each which an expiry date of 23 February 2024. All
the options vested on the grant date. The Black Sholes option pricing model was used to value these options and inputs used are
as stated in the table below.
On 6 April 2021, 3,000,000 unlisted options (Class D) expired.
(v)
(vi) On 14 April, 7,000,000 performance rights were issued to the Managing Director.
(vii) On 18 May 2021, 11,000,000 unlisted options issued to consultants were exercised and converted to fully paid ordinary share
capital.
(viii) On 26 May 2021, 10,000,000 unlisted options were issued to the Lead Manager (JP Equity) upon shareholder approval for the
successful Placement in May 2021. The options are exercisable at $0.054 each with an expiry date of 26 May 2024. All the options
vested on the grant date. The Black Sholes option pricing model was used to value these options and inputs used are as stated in
the table below.
(ix) On 29 June 2021, 2,500,000 unlisted options issued to the Lead Manager from the November 2019 Placement were exercised and
converted to fully paid ordinary share capital.
48 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
NOTES TO THE FINANCIAL STATEMENTS
Note 12. Reserves (continued)
The following table illustrates the options on issue at the end of the financial year.
Option valuations
Number of
Options
Grant Date
Expiry Date
Exercise
Price
Share Price
Volatility
Rate
Risk free
Options issued to
Directors and
employees
Options issued to
Lead Manager
Performance rights
issued to Managing
Director
Options issued to
Lead Manager
12,000,000
30/11/2018
30/11/2021
$0.065
$0.031
84.00%
1.93%
8,000,000
24/02/2021
23/02/2024
$0.020
$0.013
122.69%
0.13%
7,000,000
07/04/2021
07/04/2026
$0.000
$0.014
120.00%
0.08%
10,000,000
26/05/2020
26/05/2024
$0.054
$0.043
140.38%
0.10%
The weighted average remaining contractual life for the share-based payment options outstanding as at 30 June 2021 was 2.40 years
(2020: 1.29 years). The range of exercise prices for share-based payment options outstanding as at the end of the year was $0.02 to
$0.065 (2020: $0.0607 to $0.065). Weighted average exercise price as at 30 June 2021 is 4.00 cents (2020: 6.41 cents).
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.
Note 13. Accumulated losses
Accumulated losses at the beginning of the financial year
Loss after income tax expense for the year
Unlisted options expired
Accumulated losses at the end of the financial year
Note 14. Other income
Government grants
Joint venture management fee income
Interest income
Rental income
Other income
Consolidated
2021
$
2020
$
(57,958,308)
(1,169,550)
58,498
(57,531,815)
(480,596)
54,103
(59,069,360)
(57,958,308)
Consolidated
2021
$
2020
$
81,500
69,922
4,249
45,669
-
117,321
3,321
23,279
201,340
143,921
49 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
NOTES TO THE FINANCIAL STATEMENTS
Note 15. Other expenses
Interest expense and bank fees
Interest costs – leases
Insurance
Listing costs
Office costs
Other
Note 16. Discontinued operations
Description
Divestment of Helix Chile Project
Consolidated
2021
$
2020
$
9,341
2,745
53,668
48,765
19,214
27,727
9,100
5,107
43,185
38,824
13,195
12,013
161,460
121,424
In March 2021, management committed to a plan to divest its interest in the Chile copper projects. This decision was taken in line with
the Group’s strategy to focus on its core Australian projects in the Cobar region of NSW. Accordingly all assets and liabilities associated
with the projects in Chile are presented as a disposal group held for sale. Revenue and expenses relating to the divestment of the
interest in these projects have been reclassified from profit or loss from the Group’s continuing operations and are shown as a single
line item in the statement of profit or loss. 2021 exploration expenses outlined below relate largely to money owed from the 2019 field
activities which previous management was unaware of.
The operating results of the discontinued operation were as follows:
Financial performance information
Other income
Exploration expenditure 1
Corporate and administration expenses
Impairment expense 2
Net foreign exchange gain
Consolidated
2021
$
2020
$
48
(224,017)
(10,610)
(114,446)
13,583
715
(2,055)
(2,813)
-
31,393
(335,442)
27,240
1 Exploration expenditure has been expensed for the Chile copper projects in line with the Company’s accounting policy.
2 The impairment expense was disclosed in Company’s half-year 31 December 2021 financial report and relates to the write-down of
receivable balances of the Helix Chile Project.
50 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
NOTES TO THE FINANCIAL STATEMENTS
Note 16. Discontinued operations (continued)
Carrying amounts of assets and liabilities held for sale:
Cash and cash equivalents
Other current assets
Total assets
Trade and other payables
Total liabilities
Net liabilities
Consolidated
2021
$
2020
$
8,133
13,093
21,226
98,455
98,455
(77,229)
-
-
-
-
-
-
Accounting policy for discontinued operations
A discontinued operation is a component of the Group that has been disposed of or is classified as held for sale and that represents a
separate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose of such a line of
business or area of operations, or is an investment acquired exclusively with a view to resale. The results of discontinued operations
are presented separately on the face of the statement of profit or loss and other comprehensive income.
Note 17. Commitments
Lease Commitments
At 30 June 2021, it is anticipated that lease commitments for the next twelve months will be $20,517 (30 June 2020 $3,536) for short-
term leases.
Exploration Expenditure Commitments
In order to maintain current rights of tenure to exploration tenements, the Group is required to perform minimum exploration work to
meet the requirements specified by various State governments. These obligations can be reduced by selective relinquishment of
exploration tenure or application for expenditure exemptions. 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
2021
$
2020
$
29,045
61,400
-
21,599
21,331
-
90,445
42,930
51 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
NOTES TO THE FINANCIAL STATEMENTS
Note 18. Key Management Personnel Remuneration
Short term employee benefits
Salaries and fees
Long term employee benefits
Annual and long service leave entitlements
Superannuation
Total long term employee benefits
Equity
Options and performance rights
Shares
Total equity based remuneration
Total
Note 19. Related party and directors’ disclosures
Consolidated
2021
$
2020
$
399,216
-
(59,876)
37,925
(21,951)
-
22,937
-
22,937
400,202
289,420
-
(7,893)
27,495
19,602
-
39,164
-
39,164
348,186
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.
Note 20. Income tax
Major components of income tax expense for the years ended 30 June 2021 and 30 June 2020 are:
Statement of profit or loss
Current income
Current income tax expense (benefit)
Current income tax charge not recognised
Deferred income tax
Relating to origination and reversal of temporary differences
Deferred tax expense (benefit) not recognised
Income tax expense (benefit) reported in statement of profit or loss
Consolidated
2021
$
2020
$
-
-
(781,888)
781,888
-
3,061,414
(3,061,414)
-
-
-
-
-
(2,714,843)
2,714,843
-
-
52 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
NOTES TO THE FINANCIAL STATEMENTS
Note 20. Income tax (continued)
A reconciliation of income tax expense (benefit) applicable to accounting profit before income tax at the statutory income tax rate to
income tax expense at the Company’s effective income tax rate for the years ended 30 June 2021 and 30 June 2020 is as follows:
Loss before income tax expense from continuing operations
Profit/(loss) before income tax expense from discontinued operations
Tax at the statutory tax rate of 26% (2020: 27.5%)
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
- taxable / non-deductible items
- non-taxable / deductible items
- income tax benefit not brought to account
Income tax expense
Unrecognised deferred tax assets
Trade and other receivables
Plant and equipment
Exploration and evaluation assets
Un-realised foreign exchange losses (gains)
Right of Use Assets
Trade and other payables
Provisions
Business related costs – P&L
Revenue Losses
Capital Losses
Consolidated
2021
$
2020
$
(834,108)
(335,442)
(507,836)
27,240
(1,169,550)
(480,596)
(304,083)
(132,164)
105,803
(13,000)
211,280
(1,252)
(251,797)
385,213
-
-
Consolidated
2021
2020
-
(18,390)
(971)
(3,098,168)
(199)
318
8,060
18,988
248,236
14,169,568
2,581,854
13,909,296
-
-
-
(2,455,613)
-
-
-
-
-
16,948,962
2,477,362
16,970,711
The tax losses do not expire under current legislation. Deferred tax assets have not been recognised in respect of these items because
it is not probable that future taxable profit will be available against which the Company can utilise the benefits.
Total Loss Carried Forward
Consolidated
2021
$
2020
$
54,498,337
61,632,589
53 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
NOTES TO THE FINANCIAL STATEMENTS
Note 21. Operating segments
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
Assets included in disposal group
classified as held for sale
Non-Current Assets
Exploration and evaluation asset
Financial assets
Plant and equipment
Right-of-use Asset
Total Assets
Current Liabilities
Trade and other payables
Provisions
Lease liabilities
Liabilities included in disposal
group classified as held for sale
Non-Current Liabilities
Lease liabilities
Total Liabilities
Revenue
Depreciation
Loss from continuing operations
Loss from discontinuing operations
Australia
Chile*
Total
2021
2020
2021
2020
2021
2020
5,389,903
466,348
81,245
113,101
-
-
74,111
237,565
5,389,903
466,348
155,356
350,666
-
-
21,226
-
21,226
-
11,916,031
305,502
29,161
19,294
18,126,239
10,059,074
232,284
33,114
65,598
10,584,416
-
-
-
-
21,226
-
12,618
-
-
324,294
11,916,031
305,502
29,161
19,294
18,147,465
10,059,074
244,902
33,114
65,598
10,908,710
652,267
73,061
20,517
522,036
106,493
46,624
-
-
-
308,606
-
-
652,267
73,061
20,517
830,642
106,493
46,624
-
-
98,455
-
98,455
-
-
745,845
201,340
(54,257)
(834,108)
-
20,517
695,670
143,921
(58,486)
(507,836)
-
-
98,455
-
308,606
-
844,300
20,517
1,004,276
-
-
-
(335,442)
-
-
-
27,240
201,340
(54,257)
(834,108)
(335,442)
143,921
(58,486)
(507,836)
27,240
*The Group's operations in Chile have been disclosed as discontinued operations as at 30 June 2021. Refer to Note 16.
Note 22. Contingent liabilities
There are no contingent liabilities as at 30 June 2021 (2020:nil).
54 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
NOTES TO THE FINANCIAL STATEMENTS
Note 23. Events after the reporting period
●
●
●
On 2 August 2021, 1,458,333 fully paid ordinary shares were issued on exercise of Tranche A of the performance options issued
to the Company's Managing Director.
On 4 August 2021, the Company announced it had issued 6,000,000 performance options to employees of the Company.
On 2 September 20201, the Company announced it had entered into a binding offer letter with Alpha HPA Ltd (‘Alpha HPA’) to
acquire a new tenement (EL8703) prospective for copper/base metals adjacent to its Collerina tenements. As part of the
transaction, Helix will extinguish all ‘deemed’ joint venture rights over tenement EL8768 as well as reduce the Helix royalty by
0.5% NSR, whereby Alpha HPA will retain a 1.0% NSR Royalty on all metals from the former joint venture and newly acquired
tenements. The transaction will involve Helix issuing 20 million shares to Alpha HPA (subject to shareholder approval), with the
shares subject to voluntary escrow of between 9 to 18 months.
No matters or circumstances, other than those mentioned above, have arisen since 30 June 2021 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 the future financial years.
Note 24. Earnings per share
Earnings per share for loss
Loss after income tax attributable to the owners of Helix Resources Limited
Basic earnings per share
Diluted earnings per share
Consolidated
2021
$
2020
$
(1,169,550)
(480,596)
Cents
Cents
(0.13)
(0.13)
(0.10)
(0.10)
Number
Number
Weighted average number of ordinary shares
Weighted average number of ordinary shares used in calculating basic earnings per share
900,938,328
464,189,067
Weighted average number of ordinary shares used in calculating diluted earnings per share
900,938,328
464,189,067
At 30 June 2021, there were no listed options and 37,000,000 unlisted options on issue (30 June 2020: no listed options, 15,00,000
unlisted options) which represents 37,000,000 potential ordinary shares (30 June 2020: 15,000,000) which were considered non-
dilutive as they would decrease the loss per share.
Note 25. Interests in Joint Operations
The parent entity has an interest in the following unincorporated joint operations as of the end of the reporting period:
Joint Operations Project
Percentage Interest
Principal Exploration Activities JV Partner
Canbelego
Restdown
70% (2020: 70%)
90% (2020: 90%)* Gold
Copper
Aeris Resources
Glencore
*Helix’s equity in the Restdown project has exceeded 90% and the joint venture parties are in the process of documenting the
termination of the joint venture upon which the Company will move to 100% and Glencore (Isokind) will retain a 1% NSR.
55 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
NOTES TO THE FINANCIAL STATEMENTS
Note 25. Interests in Joint Operations (continued)
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 joint operations is as follows:
Summarised statement of financial position
Exploration and evaluation assets
Additions
Total assets
Net assets
Restdown Joint Operation
Canbelego Joint Operation 70%
2021*
$
2020*
$
2021
$
2020
$
2,803,012
278,642
2,723,541
79,471
1,152,243
524,439
1,147,209
5,034
3,081,654
2,803,012
1,676,682
1,152,243
3,081,654
2,803,012
1,676,682
1,152,243
*The Company’s interest in the Restdown project transitioned from 90% to 100% in FY21 and joint venture partner Glencore moved to
1% NSR royalty.
Note 26. Financial instruments
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and
the basis on which revenues and expenses are recognised, in respect of each class of financial asset, financial liability and equity
instrument are disclosed in Note 1 to the financial statements.
Financial 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 2021, the effect on loss and equity as a result of 100 basis points (decrease of 100 basis points) in the interest rate, with all
other variables remaining constant would be an increase (decrease) in loss by $52,942 (2020: $2,018) and an increase (decrease) in
equity by $52,942 (2020: $2,018).
The Group's exposure to interest rate risk and effective weighted average interest rate for classes of financial assets is set out below:
2021
Average
Interest Rate
%
Fixed Interest
Rate
$
Floating
Interest Rate
Maturity
Less than 1
year
$
Floating
Interest Rate
Maturity
More than 1
Year
$
Non-interest
Bearing
$
Total
$
Financial Assets
Cash and cash equivalents
Trade and other receivables
Financial assets
Financial Liabilities
Trade payables
Lease liabilities
0.09%
-
0.65%
-
6.11%
-
-
-
-
5,294,226
-
305,502
5,599,728
-
20,517
20,517
-
-
-
-
-
-
-
-
-
-
95,677
466,348
-
562,025
5,389,903
466,348
305,502
6,161,753
652,267
-
652,267
652,267
20,517
672,784
56 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
NOTES TO THE FINANCIAL STATEMENTS
Note 26. Financial instruments (continued)
2020
Financial Assets
Cash and cash equivalents
Trade and other receivables
Financial assets
Financial liabilities
Trade payables
Lease liabilities
0.40%
-
1.25%
-
6.11%
Floating Interest Rate
Maturity
Average
Interest Rate
Fixed Interest
Rate
Less than 1
year
%
$
$
More than 1
Year
$
Non-interest
Bearing
$
73,107
113,101
-
186,208
-
-
-
-
82,249
-
244,902
327,151
-
-
-
-
-
46,624
46,624
-
-
-
-
20,517
20,517
423,384
-
423,384
Total
$
155,356
113,101
244,902
513,359
423,384
67,141
490,525
Foreign Currency Risk
The Group is exposed to fluctuations in foreign currencies arising from expenditure in currencies other than the Group’s measurement
currency. The Group is exposed to currency exposures to the United States Dollar and Chilean Pesos. The Group has not formalised a
foreign currency risk management policy, however it monitors its foreign currency expenditure subject to exchange rate movements
and retains the right to withdraw from the foreign exploration commitments after minimum expenditure targets have been met.
The Group’s exposures to foreign currency risk at the end of the reporting period were as follows:
Cash and cash equivalents
Trade and other payables
2021
CLP
2020
CLP
3,887,275
(6,748,105)
(2,860,830)
73,027
(308,606)
(235,579)
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.
57 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
NOTES TO THE FINANCIAL STATEMENTS
Note 27. Remuneration of Auditors
Auditing and reviewing the financial reports
Non-audit advisory services
Total
Consolidated
2021
$
2020
$
28,919
-
26,865
-
28,919
26,865
The auditor of Helix Resources Limited for the year ended 30 June 2021 is HLB Mann Judd (30 June 2020: HLB Mann Judd).
Note 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
2021
$
2020
$
5,592,642
12,919,901
192,986
10,407,118
18,512,543
10,600,104
2021
$
2020
$
745,845
-
675,153
20,517
745,845
695,670
2021
$
2020
$
75,822,165
550,360
(58,605,827)
67,676,147
186,595
(57,958,308)
17,766,698
9,904,434
2021
$
2020
$
(859,309)
(480,596)
58 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
NOTES TO THE FINANCIAL STATEMENTS
Note 28. Parent Company Information (continued)
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2021.
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2021.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2021.
Accounting policy for parent entity
The accounting policies of the parent entity, which have been applied in determining the financial information show above, are the
same as those applied in the consolidated financial statements (see Note 1).
Note 29. Subsidiaries
Name
Country of Incorporation
Principal Activity
Oxley Exploration Pty Ltd
Leichhardt Resources (QLD) Pty
Ltd
Helix Resources (Overseas) Pty
Ltd
McClatchie Mining Pty Ltd
Helix Resources Chile Limitada
Australia
Australia
Australia
Australia
Chile
Mineral Exploration
Mineral Exploration
Mineral Exploration
Mineral Exploration
Mineral Exploration
Percentage
Held 2021
Percentage
Held 2020
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
59 | P a g e
INDEPENDENT AUDITOR’S REPORT
To the members of Helix Resources Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Helix Resources Limited (“the Company”) and its controlled
entities (“the Group”), which comprises the consolidated statement of financial position as at 30
June 2021, 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 2021 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.
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.
We have determined the matters described below to be the key audit matters to be communicated
in our report.
60 | P a g e
Key Audit Matter
How our audit addressed the key audit matter
Exploration and evaluation Refer to note 4
In accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources, the Group
capitalises all exploration and evaluation
expenditure, including acquisition costs and
subsequently applies the cost model after
recognition.
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 to assess whether facts
and circumstances existed which suggest that the
carrying amount of an exploration and evaluation
asset may exceed its recoverable amount.
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;
• We considered management’s 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 2022 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 financial report for the year ended 30 June 2021 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.
61 | P a g e
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.
62| P a g e
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 2021.
In our opinion, the Remuneration Report of Helix Resources Limited for the year ended 30 June
2021 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
30 September 2021
N G Neill
Partner
63| P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
SHAREHOLDER INFORMATION
The shareholder information set out below was applicable as at 30 September 2021.
A. Distribution of Equity Securities
Analysis of number of equitable security holders by size of holding:
Holding
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Total
Holding less than a marketable parcel
Ordinary
shares
No.
of holders
122
147
210
1,651
1,342
3,472
1,189
(5.4c)
Unlisted Options
(2c)
(6.5c)
Unlisted
Performance
Options
-
-
-
2.00
7.00
9.00
-
-
-
-
2.00
8.00
10.00
-
-
-
-
-
9
9
-
-
-
-
-
2.00
2.00
-
Minimum
Parcel Size
Holders
Units
Minimum $500.00 parcel at $0.016 per unit
31,250
1,189
16,492,565
B. Percentage Held by 20 Largest Shareholders
The names of the twenty largest security holders of quoted equity securities are listed below:
YANDAL INVESTMENTS PTY LTD
BNP PARIBAS NOMS PTY LTD
CITICORP NOMINEES PTY LIMITED
MR ROBERT PATRICK HEARNE
MR BULENT BESIM
MS OLIVIA KIDON
KEITH SIMPSON PTY LTD
GOTHA STREET CAPITAL PTY LTD
MR CHRIS CARR + MRS BETSY CARR
DARRELL JAMES HOLDINGS PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
MISS SONG GAO
CREEKWOOD NOMINEES PTY LTD
BRAZIL FARMING PTY LTD
GEE VEE PTY LTD
WYTHENSHAWE PTY LTD
MR STANLEY ALLAN MACDONALD
GEE VEE PTY LTD
MRS MELANIE JANE CHESSELL
AQUILA RESOURCES LTD
Total: Top 20 holders of Ordinary Fully Paid Shares
Total issued capital
Ordinary shares
% of total
Number held
shares
issued
51,437,609
33,580,701
31,926,901
24,837,379
22,499,999
18,805,742
16,889,937
15,061,505
15,000,000
15,000,000
11,729,081
11,000,000
10,875,000
10,000,000
9,530,041
8,000,000
7,998,750
7,938,230
7,755,556
7,681,293
4.09
2.67
2.54
1.97
1.79
1.49
1.34
1.20
1.19
1.19
0.93
0.87
0.86
0.79
0.76
0.64
0.64
0.63
0.62
0.61
337,547,724
1,258,479,250
26.82
100.00
64 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
SHAREHOLDER INFORMATION
C. Voting Rights
One vote for each ordinary share held in accordance with the Company’s Constitution.
D. Unquoted Equity Securities
The Company has the following classes of options on issue as of the date of this report, as detailed below. Options do not carry the
rights to vote.
Class
No. of Options
Terms
Class F Unlisted Options
Class I Unlisted Options
Class J Unlisted Options
HLXAI Performance Options Performance Options, various milestones, expiring on or before 07 April 2026
HLXAI Performance Options Performance Options, various milestones, expiring on or before 03 August 2026
Exercisable at 6.5 cents, expiring on or before 30 November 2021
Exercisable at 2.0 cents, expiring on or before 23 February 2024
Exercisable at 5.4 cents, expiring on or before 26 May 2024
12,000,000
8,000,000
10,000,000
5,541,667
6,000,000
41,541,667
E. Substantial holders
There are no substantial shareholders in the company.
Substantial holders in unquoted equity securities greater than 20% are as follows:
Name
Class
Number held
% held
MR JASON MACDONALD
MS KAREN LAMB
PNS (HOLDINGS) PTY LTD
JP EQUITY HOLDINGS PTY LTD
JP EQUITY HOLDINGS PTY LTD
MR JASON PAUL SKINNER
MR GORDON BARNES
MR MICHAEL BENJAMIN ROSENSTREICH & MRS
WENDY JANE ROSENSTREICH
Class D unlisted options - $0.065 expiring 30/11/21
Class D unlisted options - $0.065 expiring 30/11/21
Class D unlisted options - $0.065 expiring 30/11/21
Class I unlisted options - $0.020 expiring 23/02/24
Class J unlisted options - $0.054 expiring 26/05/24
Class J unlisted options - $0.054 expiring 26/05/24
HLXAI performance rights
HLXAI performance rights
F. Directors' Interest in Share Capital
Director
P Lester
J Macdonald
T Kennedy
M Rosenstreich
G. On-Market Share Buy-Back
The Company does not have a current on-market share buy-back.
3,000,000
3,000,000
3,000,000
2,400,000
3,000,000
2,200,000
6,000,000
25.00%
25.00%
25.00%
30.00%
30.00%
22.00%
52.00%
5,541,667
48.00%
Fully Paid
Ordinary
Shares
Unlisted
Options
2,105,342
15,635,514
450,000
2,458,333
3,000,000
3,000,000
-
5,541,667
20,649,189
11,541,667
65 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
TENEMENT SCHEDULE
Tenement
Name
Mineral
Ownership
EL6105
EL6140
EL6501
EL6739
EL7438
EL7439
EL7482
EL8433
EL8608
EL8633
EL8710
EL8845
EL8948
Canbelego
Restdown
South Restdown
Muriel Tank
Quanda
Fiveways
Little Boppy
Boundary
Yanda Creek
Rochford
Honey Bugle
Darbarlara
Bijoux
Base metals/gold
70% Helix, 30% Aeris
Gold
Gold
Gold
Base metals/gold
Base metals/gold
Base metals/gold
Base metals/gold
Base metals/gold
Base metals/gold
Base metals/gold
Base metals/gold
Base metals/gold
100% Helix*
100% Helix*
100% Helix*
100% Helix
100% Helix
100% Helix
100% Helix
100% Helix
100% Helix
100% Helix
100% Helix
100% Helix
EL6336/EL8768
Collerina
Copper/gold/nickel & cobalt
EL8096/EL9026 Mundarlo
Base metals
100% Helix
80% Helix, 20% Private
Partner
* Under conversion from 90% Helix, 10% Glencore entity to 100% Helix, 1% NSR Glencore entity
Helix owns the following licences in Chile, through its 100% owned overseas subsidiary Helix Resources Chile Limitada as set out below:
Type
Ownership Name
Project
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration-Application*
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Joshua 2-C
Joshua 4-C
Joshua 10-C
Joshua 16-C
Joshua 3-C
Joshua 5-C
Joshua 11-C
Joshua 17-C
Joshua 6-C
Joshua 13-C
Joshua 15-C
Joshua 12-C
Joshua 14-C
Joshua 1 al 150
Joshua 7 1 al 47
Joshua 1, 1 AL 60
Joshua 8, 1 AL 60
Joshua 9, 1 AL 54
Joshua 2
Joshua
Joshua
Joshua
Joshua
Joshua
Joshua
Joshua
Joshua
Joshua
Joshua
Joshua
Joshua
Joshua
Joshua
Joshua
Joshua
Joshua
Joshua
Joshua
Ha
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
National Number
042034127-k
042034105-9
042034113-K
042034115-6
042034150-4
042034151-2
042034153-9
042034154-7
042034152-0
042034233-0
042034235-7
042034231-4
042034234-9
042031160-5
042031271-7
042031282-2
042031272-5
042031273-3
042034454-6
66 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2021
TENEMENT SCHEDULE
Type
Ownership Name
Exploration-Application*
Exploration-Application*
Exploration-Application*
Exploration-Application*
Exploration-Application*
Exploration-Application*
Exploration-Application*
Exploration-Application*
100%
100%
100%
100%
100%
100%
100%
100%
Joshua 3
Joshua 4
Joshua 5
Joshua 6
Joshua 10
Joshua 11
Joshua 16
Joshua 17
Project
Joshua
Joshua
Joshua
Joshua
Joshua
Joshua
Joshua
Joshua
Ha
300
300
300
300
300
300
300
300
* Exploration Applications to cover existing, maturing Exploration Licence areas
Type
Ownership Name
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Bogarin 31-C
Bogarin 39-C
Bogarin 41-C
Bogarin 42-C
Bogarin 27-C
Bogarin 28-C
Bogarin 30-C
Bogarin 26-C
Bogarin 29-C
Bogarin 37-C
Bogarin 38-C
Bogarin 40-C
Bogarin 43-C
Bogarin 42, 1 al 150
Bogarin 41, 1 al 90
Bogarin 40, 1 al 12
Bogarin 49, 1 al 36
Bogarin 50, 1 al 184
Bogarin 51, 1 al 100
Project
Samuel
Samuel
Samuel
Samuel
Samuel
Samuel
Samuel
Samuel
Samuel
Samuel
Samuel
Samuel
Samuel
Samuel
Samuel
Samuel
Samuel
Samuel
Samuel
Type
Ownership Name
Project
Exploration Licence
Exploration Licence
100%
100%
Blanco y Negro 1 al 20
Blanco y Negro
La Caña 1 al 20 (11/20)
Blanco y Negro
Ha
300
200
200
200
300
300
300
300
300
300
200
200
300
150
90
12
36
184
100
Ha
100
70
National Number
042034421-K
042034427-9
042034455-4
042034426-0
042034422-8
042034456-2
042034428-7
042034457-0
National Number
042013101-1
042013104-6
042034236-5
042034237-3
042013096-1
042013099-6
042013097-K
042013098-8
042013100-3
042013102-K
042013103-8
042013105-4
042034232-2
042031310-1
042031309-8
042031308-K
042031312-8
042031313-6
042031314-4
National Number
042011444-3
042011526-1
67 | P a g e
helixresources.com.au