ANNUAL REPORT 2022
ABN 27 009 138 738
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
CONTENTS
Company Directory
Chairman’s Letter
Review of Operations
Corporate Governance
Directors’ Report
Auditors Independence Declaration
Directors’ Declaration
Statement of Profit or Loss and 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
19
20
31
32
33
34
35
36
37
63
67
70
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
COMPANY DIRECTORY
Directors
Peter Lester - Non-Executive Chairman
Mike Rosenstreich - Managing Director
Kylie Prendergast - 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
BDO Audit (WA) Pty Ltd
Level 9, Mia Yellagonga Tower 2, 5 Spring St
Perth, WA 6000
T: +61 8 6382 4600
www.bdo.com.au
Stock exchange listing
Australian Securities Exchange (ASX code: HLX)
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Helix Resources Limited
Annual Report
For the year ended 30 June 2022
CHAIRMAN’S LETTER
Dear Shareholders,
Welcome to the 2022 Annual Report. It has been a year of great
significance for your company with a continuing series of
exciting discoveries at its highly prospective copper projects,
located in the Cobar region of NSW. We have also substantially
expanded our corporate activities to provide funding and
certainty to complete upcoming major drilling campaigns. These
are truly exciting developments with work on our Cobar
prospects now accelerating.
Strategy
The Company’s more than 2,000km2 of tenure covering the
Rochford and Collerina trends presents an exceptional
opportunity to make further discoveries and differentiates Helix
as a unique ASX-listed explorer which is “all in on copper in
Cobar”. The Company’s intent is to maximise shareholder value
through new copper discoveries on these assets.
At the Rochford trend, massive copper sulphides have already
been encountered at the Canbelego project, including a
spectacular result of 14m at 4.2% copper. Utilising our deep
geological experience, we are already starting to unlock new
prospects of ‘Cobar-style’ mineralisation. The prize is large, with
the nearby CSA mine having delivered roughly 55 years of high-
grade, large-scale ore production from these ‘Cobar-style’
lodes.
The Collerina Trend and emerging adjacent, Quanda Trend are
equally exciting, with the Company exploring along its 150km
strike extent which includes the CZ project. CZ already possesses
a 2 million tonne resource grading 2% copper and has continued
to yield further positive results. Here, Helix is hunting ‘Tritton-
style’ mineralisation which comprises
long, extensive
mineralised shoots which rarely reach surface. The Tritton
operations have a 30-year history of copper production and are
located north ‘along-trend’ from CZ and Helix’s many other
prospects.
To undertake this systematic exploration, Helix has been very
active on the corporate front. Most notably, the Company
received significant institutional support as part of a major ~$13
million equity raising. This financing is critical to the Company
executing its strategy, as it provides certainty of funding to
generate and also aggressively drill its copper targets. With this
capital now being deployed in a series of major exploration
campaigns, Helix enters the new financial year with serious
momentum.
Team
a Non-Executive Director in May 2022. Dr Prendergast has over
25 years’ experience within the resources sector as a highly
capable geologist and is a welcome addition to our team.
Closer to Cobar, Helix has continued to invest in its Orange-
based exploration headquarters. Exploration Manager, Mr
Gordon Barnes joined the Company in May 2021 and has
overseen tremendous technical advances while also leading a
growing team of geologists. The exploration team is located
near site, which was a strategic decision to avoid reliance on
FIFO workers (particularly during COVID lockdowns), and also
leverages local knowledge, skills and a commitment to make a
positive contribution to the community.
With funds being deployed in a series of major exploration
campaigns targeting copper mineralisation in a renowned
minerals district, there are plenty of reasons to keep Helix on
your radar in the new financial year.
Yours faithfully,
Finally, much of Helix’s strategy depends on the proficiency of
its team and here I can proudly say the Company has attracted
excellent personnel. At a Board level, the Company has
continued a rejuvenation of the team in-line with its copper
exploration strategy. Helix welcomed Dr. Kylie Prendergast as
Peter Lester
Chairman
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Helix Resources Limited
Annual Report
For the year ended 30 June 2022
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 exploring
to grow its current copper Mineral Resource inventory. In the same area it also holds several promising high-grade lateritic nickel-cobalt
prospects, including a Mineral Resource which it is seeking to develop further with independent funding, potentially a ‘spin-out’. Helix
also holds royalty interests over two advanced iron ore projects located in Australia and is seeking to divest its exploration projects in
Chile.
2. OVERVIEW
Helix is implementing an exploration strategy focused on the ‘Greater Cobar’ region. In May 2022, the Company completed a $12.5
million fundraising to undertake regional and advanced exploration, primarily for copper on its large, 2,159km2 land position. To support
its operational objectives to achieve further discoveries it has successfully recruited a fulltime exploration team of 6 Geologists and
senior Field Technicians based in NSW who are supported by long-term consultants to provide expertise in local geology, community
engagement and tenement management as well as contract field staff as required.
Helix holds a high-quality project portfolio in one of Australia’s premier copper terrains, the Cobar mining district in NSW. This district
hosts long-lived operating mines (150 years of mining operations) and has excellent access to infrastructure. The Company’s primary
assets consist of tenements covering what it terms the “Collerina, Rochford and Meryula” Copper Trends (see Figure 1 Helix Resources
Location Plan).
Figure 1: Helix Resources location plan covering the Collerina, Rochford and Meryula Copper Trends
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Helix Resources Limited
Annual Report
For the year ended 30 June 2022
REVIEW OF OPERATIONS
3. DISCOVERY – GREATER COBAR REGION
The Company’s objective, as depicted in Figure 2 – Helix Project Profile, is to discover additional copper deposits by building up its
portfolio of early-stage targets and prospects into projects with sufficient Mineral Resources to support Feasibility level studies.
The Company has delineated three main mineralised trends prospective for copper (refer Figure 1 Helix Resources Location Plan) which
host two advanced copper projects1; the CZ Copper Deposit on the Collerina Trend and the Canbelego Main Lode Deposit located along
the Rochford Trend. As well, each copper trend hosts numerous early-stage prospects and targets some of which occur around historical
mine workings and others generated entirely by Helix’s airborne VTEM survey flown in March 2021. Whilst the focus is primarily copper
discoveries, the tenements are prospective for other metals. This includes the Homeville lateritic nickel-cobalt deposit located 4km to
the north of the CZ Deposit and several advanced nickel-cobalt prospects in close proximity. As well, there are ‘stand-alone’ gold
prospects at the Muriel Tank and Restdown areas, the latter which includes a gold Mineral Resource1 located approximately 17km
southwest of the Canbelego Deposit, between the Meryula and Rochford Trends on the ‘emerging’ Restdown Trend.
The defined mineralised trends are considered important for regional scale control on copper mineralisation and Helix is developing
exploration models and strategies focused on new discoveries. Work during the year has progressed to better characterisation of the
Rochford and Collerina Trends which are considered prospective for “Cobar” and “Tritton” style deposits respectively – both regarded
as large-scale, high-grade copper discovery targets.
The following sections (3.1 Rochford Copper Trend and 3.2 Collerina Copper Trend) discuss exploration work undertaken on these two
trends in the past year. Overall, progress on the range of exploration activities has been hampered by external factors such as Covid-19
pandemic restrictions and exceptionally wet weather which impacts access to sodden ground. In the East, on the Collerina Trend, there
is also increased competition with cropping activity as landowners take the opportunity to plant second crops after years of drought.
However, internal, legacy issues have also impeded work such as environmental breaches over several years around 2018, over 60
unlogged, sometimes unsampled drill holes around CZ Deposit and serious in-arrears situations on rehabilitation work and
compensation payments for work between 2016-2020. Management considers that these issues have now been largely addressed and
is anticipating much greater progress on target generation and testing in the 2023 financial year.
Figure 2: Helix Project Profile: schematic profile of Helix’s portfolio of targets, prospects and projects
1 Refer Section 4 – Mineral Resources for details
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Helix Resources Limited
Annual Report
For the year ended 30 June 2022
REVIEW OF OPERATIONS
3.1 Rochford Copper Trend
The Rochford Copper Trend is a large-scale mineralised 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 Ltd JV with Helix being the JV manager. The Canbelego JV project has an Inferred Mineral Resource of 1.5Mt
at 1.2% copper2. Following regional assessment work, Helix considers that the Rochford Trend is prospective for ‘Cobar’ style copper
deposits. These are typically structurally controlled, have limited surface ‘footprints’ but can extend for +2,000 metres vertically
and often occur with repeat or parallel lodes – such as the large scale, high-grade, CSA Mine (owned by Glencore Limited) which
extends for nearly 2,000 metres underground and in its current operational term has been producing c. 50,000 tonnes of copper in
concentrates per year for the past 25 years.
Advanced Target Testing
The Canbelego JV continued drill testing the Canbelego Main Lode following on from five diamond drillholes (CANDD001 to
CANDD005) for nearly 2,000 metres completed last year – the first drilling at the project since 2013.
Canbelego has a strong resemblance to the copper mineralisation style in the Cobar Basin. East of the Rookery Fault, and in an area
broadly mapped as Ordovician age Girilambone Group, the Canbelego rocks are less deformed than typical Girilambone Group
rocks and are similar to the host rocks of key Cobar deposits such as the CSA Mine. The mineralisation at Canbelego appears zoned,
with anomalous zinc in particular picking the western edge of the Main Lode, similar to the Cobar deposits.
At Canbelego, the copper mineralisation is structurally controlled, which has been confirmed by detailed measurement of fault,
shear and mineralised vein geometry obtained from recently completed oriented diamond drill core. A southerly plunge for the
higher-grade vein-hosted copper shoot mineralisation has been interpreted in contrast to the previously interpreted northerly
plunge. However, the northerly plunge remains valid for some structures and veins and could represent the orientation of a general
“mineralisation envelope”.
The southerly plunge opens-up the depth potential of the Main Lode (refer Figure 3 – Schematic inclined long section of Canbelego
Copper deposit), and also the new parallel lodes identified earlier this year to the west of the Canbelego Main Lode, within the
area termed the ‘Greater Canbelego’ Project (refer Figure 4 – Greater Canbelego Project Area).
Drilling completed during the year on the Canbelego JV tenement comprises:
•
•
eight diamond core holes for a total of 2,392 metres; and
nine reverse circulation (RC) holes for 1,368 metres.
At Canbelego Main Lode, copper mineralisation consists of dissemination and veins of copper sulphide (chalcopyrite) with
occasional massive chalcopyrite zones. The highest tenor copper intercept in CANDD002 returned 14 metres at 4.2% copper and is
below the current Mineral Resource outline. Helix’s drilling confirms that the mineralised envelope continues for at least 150 metres
beneath the base of the Mineral Resource outline. Significant copper intercepts reported by the Company during the year and up
to end of August 2022 are summarised in Table 1 Summary Assay Results for CANDD006 to CANDD011.
2 refer Section 4 Mineral Resources for details
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Helix Resources Limited
Annual Report
For the year ended 30 June 2022
REVIEW OF OPERATIONS
Figure 3: Schematic inclined long section of Canbelego Copper deposit contoured on Cu% x Metres intersected
Figure 4: Greater Canbelego Project Area
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Helix Resources Limited
Annual Report
For the year ended 30 June 2022
REVIEW OF OPERATIONS
Table 1: Summary Assay Results for CANDD006 to CANDD011 at a range of copper cut-off grades
Hole ID
0.1% Cut-off
0.5% Cut-off
1% Cut-off
CANDD006
CANDD007
CANDD009
4m at 0.53% Cu from 69m
8m at 0.55% Cu from 102m
7m at 0.37% Cu from 136m
5m at 0.28% Cu from 204m
7m at 0.21% Cu from 365m
1m at 0.13% Cu from 373m
1m at 0.69% Cu from 385m
1m at 0.15% Cu from 403m
1m at 0.18% Cu from 433m
7.5m at 0.20% Cu from 20m
1m at 0.15% Cu from 41m
1m at 0.11% Cu from 177m
1m at 0.11% Cu from 89m
8m at 0.22% Cu from 95m
5m at 0.15% Cu from 106m
3m at 0.10% Cu from 137m
4m at 0.61% Cu from 213m
3m at 0.13% Cu from 226m
-
3m at 0.59% Cu from 70m
2m at 0.68% Cu from 89m
3m at 1.01% Cu from 106m
1m at 0.51% Cu from 115m
1m at 0.62% Cu from 125m
1m at 0.54% Cu from 150m
1m at 0.61% Cu from 206m
5.3m at 3.34% Cu from 421m
1m at 1.93% Cu from 106m
1m at 1.54% Cu from 138m
3.3m at 5.08% Cu from 423m
incl 1.1m at 10.75% Cu from
425.2m
1m at 4.32% Cu from 117m
1m at 0.51% Cu from 98m
2m at 0.93% Cu from 213m
-
-
-
0.7m at 2.16% Cu from 268.8m
11m at 0.51% Cu from 286m
3m at 1.31% Cu from 292m
2m at 1.47% Cu from 292m
CANDD010
2m at 0.26% Cu from 303m
4m at 1.11% Cu from 316m
5m at 0.12% Cu from 327m
3m at 0.18% Cu from 334m
2m at 2.44% Cu from 152m
-
-
-
-
-
-
1m at 3.85% Cu from 316m
-
-
1m at 4.55% Cu from 152m
CANDD011
CANDD012
CANDD013
10m at 0.82% Cu from 159m
7m at 0.99% Cu from 160m
4m at 1.19% Cu from 163m
Assays pending
Assays Pending
Early Stage Copper Targets & Target Generation
The drilling and detailed logging at the Canbelego Main Lode led to the recognition of potential parallel structures, to the west,
in close proximity analogous to the ‘Cobar-style’ of deposit such as exemplified by the various parallel lodes at the CSA Copper
Mine near Cobar.
In early 2022 the Company undertook a scout drilling program to test these intercepted lode positions. Nine RC holes were
completed (CBLRC022 to CBLRC030) for 1,368 metres. Hole depths ranged from 96 to 204 metres. The copper mineralisation
is hosted in a deformed sequence of sandstone, silt, black shale and schist and is often associated with quartz veins and/or
quartz breccia – similar to the Canbelego Main Lode mineralisation.
Two significant parallel zones of copper mineralisation, over 100 metres of strike length each have been defined to the west
and southwest of the Main Lode, remain open along strike to the north and south as illustrated in plan view (refer Figure 4 –
Greater Canbelego Project Area). As well as copper-sulphide (chalcopyrite), gossan textures and copper oxide (malachite)
were also intersected in several holes, suggesting potential for shallow ‘oxide-copper’ mineralisation.
These assay results are significant as they highlight potential new, copper lodes, as supported by the following significant
intercepts.
• CBW1 Lode:
o CBLRC023: 12m at 0.38% Cu from 94m, including 3m at 1.02% Cu from 97m.
• CBW2 Lode:
o CBLRC029: 13m at 0.67% Cu from 143m, including 1m at 3.18% Cu from 144m.
o CBLRC030: 22m at 0.38% Cu from 103m, including 1m at 1.40% Cu from 104m.
8 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
REVIEW OF OPERATIONS
A full list of intercepts is presented in Table 2 Summary of RC Drill Intercepts CBLRC022 to 030.
The intercept in CBLRC026 indicates the potential for a third lode, CBW3. The Main Lode intercepts confirm continuity of
copper grade in the southern portion of the Main Lode and indicate potential for shallow oxide resources.
Table 2: Summary of RC Drill Intercepts CBLRC022 to 030 at a range of cut-off grades3
Hole ID
0.1% Cut-off
0.5% Cut-off
1% Cut-off
CBLRC023
12m at 0.38% Cu from 94m
3m at 1.02% Cu from 97m
1m at 1.52% Cu from 99m
CBLRC024
5m at 0.23% Cu from 99m
1m at 0.5% Cu from 101m
-
CBLRC026
2m at 0.97% Cu from 118m
2m at 0.97% Cu from 118m
1m at 1.35% Cu from 119m
CBLRC027
8m at 0.9% Cu from 82m
3m at 2.24% Cu from 87m
2m at 2.98% Cu from 88m
CBLRC028
16m at 0.32% Cu from 15m
1m at 0.82% Cu from 25m
-
CBLRC029
13m at 0.67% Cu from 143m
4m at 1.25% Cu from 144m
1m at 3.18% Cu from 144m
CBLRC030
22m at 0.38% Cu from 103m
7m at 0.67% Cu from 103m
1m at 1.4% Cu from 104m
The Company has identified a range of targets along the Rochford Copper Trend which it is currently testing with scout-style RC
drilling which commenced in July 2022. The targets being tested include follow-up in the Greater Canbelego area, and the Shango
and Caballero prospects as shown in Figure 5 – Rochford Regional Location Plan.
Further geochemical and geophysical work is underway to advance other prospects along this trend such as Bijoux and Boppy
Broken Hill in readiness for drill testing.
Further drilling at the Greater Canbelego Project area will be based on updated geological modelling and integration of downhole
geophysics including data from the RC drilling which is ongoing at the time of this report. The objective is to test for the presence
of a major ‘Cobar’ style deposits and the Company is formulating its drill strategy for the follow-up round of drilling to effectively
test the potential depth extensions of this lode system.
3 Cut-off grade based on a maximum of 2m of internal dilution.
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Helix Resources Limited
Annual Report
For the year ended 30 June 2022
REVIEW OF OPERATIONS
Figure 5: Rochford Regional Location Plan
3.2 Collerina Copper Trend
The Collerina Copper Trend is a large-scale mineralised trend which is interpreted to extend south of Aeris Resources Ltd.’s Tritton
Copper Operations (TCO) for approximately 150 strike-km on Helix’s ‘Eastern Group’ tenements.
The trend hosts several historic copper deposits and occurrences and includes the CZ Copper Deposit4 as well as several early-stage
copper prospects. The CZ deposit has a largely Inferred Mineral Resource of 2.0Mt at 2.0% copper and 0.1 g/t gold. Following
regional assessment work, Helix considers that the Collerina Trend is prospective for ‘Tritton’ style copper deposits. These occur
within a favourable host stratigraphy with copper mineralisation considered to be formed within late-structurally controlled zones
which plunge moderately and can extend for >2,000 metres down plunge as demonstrated by the Tritton and Constellation deposits
to the north at the TCO. The TCO have been in operation for approximately 30 years producing 20,000 to 25,000 tonnes of contained
copper annually.
4 refer Section 4 Mineral Resources for details
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Helix Resources Limited
Annual Report
For the year ended 30 June 2022
REVIEW OF OPERATIONS
Advanced Target Testing
The Company undertook a drilling program at CZ Deposit comprising 20 holes for 4,191 metres designed to test for extensions and
recover metallurgical samples. Results were mixed with several new zones of shallow mineralisation identified but little
encouragement for deeper extensions based on the historic geological model. Subsequent to the commencement of the drilling in
August 2021 it became apparent that 61 drill holes at the CZ Deposit drilled prior to 2021, had not been geologically logged and
therefore were not ‘informing’ the previous geological interpretation. The Company elected to limit its initial drill program whilst
it caught up on the unlogged drill holes and reinterpreted the geology for the basis of further drilling.
This is a very prospective target, discovered by Helix in 2016 but it requires detailed geology combined with DHEM data modelling
to effectively interpret the geological model. A robust geological model provides the framework for the Mineral Resource estimate
and is a predictive tool to make further discoveries; this work was in progress at year-end.
The CZ Deposit has not had any metallurgical testwork and is under drilled with diamond core drilling. Helix used this opportunity
to diamond core for metallurgical samples and to also gain valuable geological and structural data from the large-diameter PQ
diamond drill core, which the historical RC drill holes in the area do not provide. The program consisted of a mixture of RC holes
and diamond tails as summarised below and presented in Figure 6 CZ Project Drill Hole Location Plan.
RC Drilling – comprised 1,402 metres and successfully identified new zones of shallow, high-grade, ‘oxide’ copper mineralisation to
the east and west of the CZ Deposit5. In the Eastern shallow Cu zone (refer ASX report 1 November 2021), a new, shallow, open-
ended, high-grade copper-oxide zone was identified, with intercepts such as:
•
•
•
•
•
7m at 2.64% Cu & 1.18 g/t gold (Au) within 25m at 0.94% Cu from 20m (CORC0141)
7m at 2.83% Cu within 30m at 0.86% Cu from 14m (CORC0140)
3m at 2.74% Cu within 8m at 1.17% Cu from 32m (CORC0139)
2m at 3.97% Cu within 27m at 0.68% Cu from 22m (CORC0150)
1m at 4.26% Cu within 5m at 1.15% Cu from 23m (CORC0151)
In the Western shallow Cu zone: (refer ASX report 2 December 2021) broad zones of shallow ‘oxide’ copper mineralisation were
also intersected:
•
•
6m at 0.23% Cu from 25m (CORC0143)
4m at 1.2% Cu from 40m, within 32m at 0.57% Cu from 31m (CORC0144)
These results have confirmed shallow ‘oxide’ copper mineralisation in several zones at CZ and indicate that the mineralisation
remains open to the southeast with further drill testing warranted.
Diamond core drilling – comprised 1,342.5m of diamond core tails to RC drill holes. The program was designed to test for extensions
of the interpreted shoots as shown in Figure 6 CZ Deposit Drill Hole Location Plan. A summary of significant assays is presented in
Table 3 Significant Copper Intercepts.
Metallurgical drilling – four PQ (85mm diameter) and HQ (64mm diameter) diamond core drill holes were completed for 663.3m
(CODD0132 to CODD0135). This core was cut and a total of 497 samples submitted to ALS Orange for assay (Refer Table 3 Significant
Copper Intercepts).
Each of the four holes intersected copper mineralisation, including several intervals of massive sulphide. The massive sulphide
intervals comprise massive stratiform fine-grained pyrite (FeS2) with up to 5% chalcopyrite (CuFeS2), hosted within laminated
chlorite schist. Many mineralised intervals have been negatively impacted by voids and backfill associated with historic workings,
particularly in the oxide zone (generally down to 60m down hole), and by core loss associated with broken and fractured ground at
depth – significantly reducing the amount of ‘oxide’ style mineralisation planned to be available for metallurgical testwork.
A ‘geo-metallurgical’ coding system has been developed to provide the mineralogical context for the test work. Submission of the
met-samples to IMO’s metallurgical laboratory in Perth has been delayed and the Company expects this work to commence before
the end of 2022.
5 refer Section 4 Mineral Resources for details
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Helix Resources Limited
Annual Report
For the year ended 30 June 2022
REVIEW OF OPERATIONS
Figure 6: CZ Project Drill Hole Location Plan
Table 3: Significant copper intercepts for diamond core, RC and metallurgical drill holes
at a range of copper cut-off grades
Hole ID
0.1% Cut-off
0.5% Cut-off
1% Cut-off
CORC0136
3.8m at 1.28% Cu from
148.2m
CORC0146
3m at 1.17% Cu from 191m
-
-
1.4m at 2.76% Cu from 148.2m
2m at 1.36% Cu from 191m
CORC0148
4.9m at 0.60% Cu from 147.1m
3.4m at 0.78% Cu from 147.1m
CORC0149
3m at 0.38% Cu from 268m
1m at 0.69% Cu from 269m
-
-
CORC0150
27m at 0.68% Cu from 22m
9m at 1.39% Cu from 28m
2m at 1.07% Cu from 39m
2m at 3.97% Cu from 35m
1m at 1.45% Cu from 40m
CORC0151
5m at 1.15% Cu from 23m
2m at 2.47% Cu from 24m
1m at 4.26% Cu from 25m
CODD0132
CODD0133
CODD0134
CODD0135
8m at 0.42% Cu from 3m
Void/backfill 11m – 27m
21m at 0.45% Cu from 27m
3m at 0.2% Cu from 51m
13m at 0.22% Cu from 30m
1m at 1.42g/t Au from 41m
1m at 0.34g/t Au from 42m
14m at 0.18% Cu from 52m
3m at 0.52g/t Au from 53m
2m at 0.55% Cu from 84m
4m at 2.61% Cu & 0.43g/t Au
from 102m
3.2m @ 3.07% Cu & 0.39g/t
Au from 156.8m
2m at 0.57% Cu from 6m
-
2m at 0.56% Cu from 33m
-
-
1m at 0.87% Cu & 0.3g/t Au from
85m
-
-
-
-
-
-
-
-
-
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Helix Resources Limited
Annual Report
For the year ended 30 June 2022
REVIEW OF OPERATIONS
Early Stage Copper Targets & Target Generation
The Collerina Copper Trend is considered by Helix to be significantly under explored and highly prospective. This was supported
with the first results from the regional airborne EM survey (VTEMTM) undertaken in early 2021 which generated numerous
conductive anomalies over both existing historical prospects and identified new targets. This led the Company to apply for an
additional 673km2 of Exploration Licences to the north and east of its original Collerina tenements which were granted for 6-
year terms in June 2022 (refer Figure 7 Collerina Trend Location Plan).
Regional target generation work has been impeded by the historical management issues referred to previously but also by land
access delays due to increased cropping cycles made possible by unusual “La Nina” wet weather. This has delayed
commencement of surface EM surveys to follow-up on the VTEM anomalies and regional scale auger geochemical sampling.
In preparation for gaining access to the ground during limited ‘windows’ the Company has undertaken a major regolith
mapping program using Sentinel Satellite data to optimise and focus coverage by the auger rig, and to enable programs to be
approved well ahead of the planned execution. As well, more work in the early part of FY-23 is being undertaken in the western
tenements where land use is predominantly open-range grazing and less affected by wet weather and cropping activity.
Figure 7: Collerina Trend Location Plan
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Helix Resources Limited
Annual Report
For the year ended 30 June 2022
REVIEW OF OPERATIONS
4. MINERAL RESOURCE ESTIMATES
4.1 Canbelego Mineral Resource
A mineral resource compliant with the 2004 JORC Code was reported 7 October 2010 as presented in Table 5. 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 5: Canbelego* (October 2010) (0.5% Cu cut-off)
Classification
Type
Inferred
Total
Oxide/Transition/Fr
esh
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 approximately 10,000t of hand-picked ore grading
5% copper when mining ceased at the water table at a depth of approximately 80 metres.
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 report dated 7 October 2010, Initial Copper Resources
for Canbelego and Exploration Update. All material assumptions and technical parameters underpinning the estimates in that
report continue to apply and have not materially changed.
4.2 CZ Mineral Resource
A mineral resource compliant with the 2012 JORC Code for the CZ deposit is summarised in Table 4 below. It is a copper-gold
discovery made by Helix in late 2016 along the Collerina Trend.
Table 4: 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 or 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 report dated 11 June 2019, Interim Maiden Resource at
Collerina Copper Project. All material assumptions and technical parameters underpinning the estimates in that report continue to
apply and have not materially changed. Helix is currently undertaking a re-interpretation of the CZ geology which will include the
latest logging, assay data and geophysical information.
14 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
REVIEW OF OPERATIONS
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 6 below.
Table 6: 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
Helix confirms that it is not aware of any new information or data that materially affects the Mineral Resource information included
in Helix ASX report dated 7 November 2019, Resource Upgrade to JORC2012 Cobar Gold Project – Cobar NSW. All material
assumptions and technical parameters underpinning the estimates in that report continue to apply and have not materially
changed.
5. BUSINESS DEVELOPMENT
5.1 Nyngan Nickel-Cobalt Project
Helix has accumulated a significant portfolio of nickel and cobalt exploration projects spearheaded by a transaction in late 2021 to
add prospective copper tenure and rationalise overlapping Joint venture and Royalty interests with Alpha HPA Ltd (ASX: A4N). As
a result Helix acquired the Homeville Nickel-Cobalt Deposit located north of its CZ Copper Project (refer Figure 8).
A follow-up review of historic drilling data which targeted lateritic nickel-cobalt mineralisation, highlighted shallow, high-grade
nickel-cobalt assays at the new Browder, Lewis and Sykes prospects – which complement existing prospects such as Yathella, Tindals
and Halstrom. All these prospects are located on existing Helix tenements in the central portion of the Collerina Trend and are
100% owned by Helix, subject to a 1.0% NSR Royalty payable to Alpha HPA Ltd. These nickel-cobalt prospects are collectively
referred to as the Nyngan Nickel-Cobalt Project (NNCP).
A mineral sharing agreement to split the nickel-cobalt mineral rights from all other metals (such as copper) is being drafted. To
support proposed external funding, a technical program and budget is being prepared with external consultants to plan exploration
and testwork programs which would grow and potentially create development opportunities of the NNCP. The Company has
received several expressions of interest in these assets and this planning and review process will drive the ‘realisation strategy’ to
unlock value for Helix shareholders.
15 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
REVIEW OF OPERATIONS
Figure 8: Nyngan Nickel-Cobalt Project Location Plan
5.2 Chile Projects
The Company has effectively relinquished its three early-stage copper (and gold) projects in Chile after an extensive process to
clean-up the Chile holding Company, Helix Chile Limitada and divest these projects. Helix retains the drill samples and technical
databases and is negotiating to swap those for a production Royalty linked to its original concessions.
5.3 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.
Further background
the Lodestone Mines Ltd website
https://www.lodestonemines.com/.
the Olary Flats project can be
found on
to
16 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
REVIEW OF OPERATIONS
6. 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.
7. CORPORATE
7.1 Board & Management
The Company has continued to add to its technical team to ensure that it has a stable, focused and expert exploration team able
to make new copper discoveries in the ‘Greater Cobar’ region. The Orange, NSW, based team now consists of an Exploration
Manager and three fulltime geologists supported by a Senior Field Manager, Field Assistant and various contract field technicians.
As well, the Company relies on regular, expert contributions from several NSW based technical consultants.
The Board has been rejuvenated in early 2022 with the resignations of Non-Executive Directors, Mr. Tim Kennedy (effective 18
March 2021) and Mr. Jason Macdonald (effective 12 May 2022) and the appointment of Dr Kylie Prendergast (effective 12 May
2022), a highly experienced exploration geologist.
7.2 Capital Management
The Company successfully raised A$12.5 million (before costs) in May 2022 to ensure that it was sufficiently funded to undertake
systematic exploration across all of its large strategic landholding.
On 16 March 2022, the Company announced a placement of 916,666,667 fully paid ordinary shares at $0.012 per share to raise
$11 million, with 319,619,810 shares (Tranche 1) issued on 24 March 2022 (raising $3.8 million before costs) and following Helix
shareholder approval on 19 May 2022, issued 597,046,857 shares (Tranche 2). In addition, the Company implemented a Share
Purchase Plan (SPP) which raised $1.5 million of a $2.0 million shareholder approved limit and on 13 May 2022 issued 127,999,926
fully paid ordinary shares to sophisticated and institutional investors at an issue price of $0.012 per share.
7.3 Other
Other major corporate events during the year included:
• On 28 July 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 3 August 2021, the Company had issued 6,000,000 performance rights to employees of the Company with an expiry
date of 3 August 2023.
• On 2 September 2021, the Company 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 extinguished all ‘deemed’ joint venture rights over tenement EL8768 as well as reduced the Helix royalty by 0.5%
NSR, whereby Alpha HPA retained a 1.0% Royalty on all metals from the former joint venture and newly acquired
tenements. As consideration, Helix issued 20,000,000 shares to Alpha HPA, with the shares subject to voluntary escrow of
between 9 to 18 months. Shareholder approval for the 20,000,000 shares was obtained at the Company’s AGM on 23
November 2021 and the shares were issued on 11 February 2022 at a deemed issue price of $0.017 per share, with
$340,000 recognised as the fair value for the acquisition of EL8768 and EL8703.
• On and from 6 September 2021 the Company became aware of a number of potential legacy non-compliances within its
operations under former management in relation to statutory approvals and rehabilitation work and in relation to
payment of Landholder compensation payments. Helix ‘self-reported’ the non-compliances to the NSW Resources
Regulator and a full investigation was conducted and as a result the Company and associates were found to have
contravened the requirement to seek Activity Approvals with respect to drilling (Jan 2018 – 31 Dec 2019 and Aug 2017 –
17 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
REVIEW OF OPERATIONS
Oct 2020) and to have made “false and misleading statements” in reporting exploration activities in December 2018. This
resulted in Penalty Notices and several fines which have been fully paid by the Company, that were not material in respect
of quantum likely due to leniency exercised in recognition of the self-reporting.
• On 2 November 2021, the Company issued a total of 17,700,000 performance rights to employees of the Company with
an expiry date of 2 November 2023 and issued a further 1,000,000 performance options to the Company’s Managing
Director which form part of the total package approved by shareholders in April 2021.
• On 6 December 2021, the Company issued a total of 7,200,000 unlisted options to Non-Executive Directors under the
Company’s Employee Incentive Scheme (issued in three tranches (1/3 at $0.036, 1/3 at $0.063 and 1/3 at $0.081) and with
an expiry date of 6 December 2024.
• On 19 May 2022, 15,000,000 unlisted options were issued to the Lead Manager (Ashanti Capital) upon shareholder
approval for Tranche 2 of the Placement in May 2022. The options are exercisable at $0.018 each and have an expiry date
of 19 May 2025.
8. SUSTAINABILITY
Following on from its 2021 adoption of its Sustainable Development and Environmental Policy to guide the Company’s activities and
ensure compliance with acceptable environmental, social and governance practices, the Board has incorporated key elements of
‘current’ Environment, Social & Governance (ESG) reporting into its own broader ‘Sustainability Platform’. These additions revolve
mainly around more explicit obligations in regard to social and community focused policies to create the broader Sustainability Platform
as presented in Figure 9 – Helix’s Sustainability Platform. Core components of the Company’s culture support the main policy pillars
for its Sustainability Platform which enables its Board-approved, Helix Purpose Statement (refer Box below) and is the base for how the
Company undertakes its corporate and exploration activities and with success, its mine development operations.
HELIX PURPOSE STATEMENT
Helix was established to discover and, if viable, develop mineral deposits to create wealth for its
shareholders in an efficient, ethical and sustainable manner, mindful and respectful of the needs of the
landholders and Traditional Owners of the land on which it operates.
Board Approved 18 July 2022
To support the Company and to ensure proper, accurate and verified reporting, Helix has engaged SocialSuite TM a well credentialled
and experienced consulting group advising many companies in the early-stage exploration phase such as Helix.
Current initiatives include:
• Undertaking the first baseline ‘ESG’ disclosure report which includes verification of 21 core metrics relating to; People, Planet,
Prosperity and Principles of Governance for 2022
Reconciliation of the Company’s policies with the core metrics particularly in areas such as environmental impact and people
issues such as diversity and inclusion;
Focus on local procurement and regionally based employees – benefit local community and reduce travel
•
• Utilise recycled and recyclable materials: e.g. core trays made of recycled ‘kerbside plastic’ has diverted 2,711kg of
plastic from landfill in the past 12 months (to Aug 2022)
Engage, reputable contractors with sound ‘sustainability’ practices e.g. drill contractors utilising mobile sumps
Flying carbon neutral with commercial airlines
Corporate Governance aspects are discussed more fully below.
•
•
•
•
18 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
REVIEW OF OPERATIONS
The Company is undertaking this process to ‘get-set’ for further growth to be able to attract new investment funds, attract talent and
be a sought-after partner for other opportunities and new ventures.
Figure 9: Schematic of Helix’s ‘Sustainability Platform’
9. CORPORATE GOVERNANCE
Helix has made it a priority to adopt systems of control and accountability as the basis for the administration of corporate governance
within its broader ‘Sustainability Platform’. 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 2022 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.
19 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
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 2022.
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 year unless otherwise stated:
Peter Lester (Non-Executive Chairman)
Mike Rosenstreich (Managing Director)
Kylie Prendergast (Non-Executive Director) - appointed effective 12 May 2022
Jason Macdonald (Former Non-Executive Director) - resigned effective 12 May 2022
Timothy Kennedy (Former Non-Executive Director) - resigned effective 18 March 2022
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.
Gateway Mining Ltd - appointed 18 July 2022
Kingrose Mining Limited (resigned 19 November 2020), White Rock Minerals Limited (resigned
13 June 2022) and Millenium Minerals Ltd (resigned 15 February 2020).
3,355,342
2,400,000
Michael 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) and Indiana Resources Limited (ASX: IDA)
(appointed 1 June 2022).
Hexagon Energy Materials Ltd (resigned December 2020).
4,958,333
6,541,667
20 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
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:
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
Kylie Prendergast
Non-Executive Director - appointed 12 May 2022
BSc Hon (Economic Geology), PhD (Geology), Grad Cert (Applied Finance)
Dr Kylie Prendergast is a geologist and technical leader with over 25 years of experience within
the international mining and resource sector. She has worked across a range of different
operating jurisdictions, including significant in-country assignments and expatriate roles, and
was involved in business development, project technical and economic evaluation, and
commercial management including direct interaction with a range of stakeholders in global
resource capital markets. Dr Prendergast is a partner at Petram Capital and has also held senior
leadership roles at Felix Gold, Mawarid Mining, Batu Mining, Gold Fields, and worked in
technical geology positions at BHP Billiton, Ivanhoe Mines and North Limited.
Terra Uranium Limited (ASX: T92) - appointed May 2022
Felix Gold Ltd (resigned Mar 2022)
Nil
Nil
is a qualified
legal practitioner, he has practiced
Jason Macdonald
Former Non-Executive Director - resigned on 12 May 2022
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
2,400,000
Timothy Kennedy
Former Non-Executive Director - resigned on 18 March 2022
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.
Yandal Resources Ltd (appointed April 2022)
Sipa Resources Limited (resigned February 2022) and Yandal Resources Limited (resigned
March 2022)
450,000
2,400,000
Mr Donovan is an experienced Company Secretary and a member of the Governance Institute of Australia, providing Helix with
corporate advisory and consultancy services. Mr Donovan is the principal of Argus Corporate Partners Pty Ltd 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.
21 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
DIRECTORS’ REPORT
Meetings of Directors
The number of meetings of the company's Board of Directors ('the Board') held during the year ended 30 June 2022, and the number
of meetings attended by each director were:
Full Board
Attended
Held
Nomination
and
Remuneration
Committee4
Attended
Nomination
and
Remuneration
Committee
Held
Audit and Risk Committee
Attended
Held
P Lester
M Rosenstreich
K Prendergast1
J Macdonald2
T Kennedy3
10
10
1
9
8
10
10
1
9
8
-
-
-
-
-
-
-
-
-
-
2
-
-
2
2
2
-
-
2
2
Held: represents the number of meetings held during the time the Director held office.
1 Dr K Prendergast was appointed on 12 May 2022.
2 Mr J Macdonald resigned effective 12 May 2022.
3 Mr T Kennedy resigned effective 18 March 2022.
4 The Nomination and Remuneration Committee was dissolved during the current year and all related matters subsequently handled
by the full Board.
Principal activities
The principal activity of the Group constituted by Helix Resources Limited and the entities it controlled during the year continued to
consist of copper, gold, and other base metal mineral exploration in Australia. In previous years, the Company has operated projects in
Chile, these projects were on care and maintenance during the current financial year and the Company has continued during the year
to try divest or farm out the projects. There has been no other significant change in the nature of the principal activities during the
year.
Financial Results
The net consolidated loss after income tax for the year ended 30 June 2022 was $2,155,999 (30 June 2021: $1,169,550) and reported
net cash outflows from operating activities of $1,482,060 (30 June 2021: $1,104,126). As at 30 June 2022, the Group had a net asset
position of $27,558,582 (30 June 2021: $17,303,165).
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 the website at www.helixresources.com.au. Refer to the Review of Operations on page 4 of this Annual Report.
The Company's strategy is to focus on making new copper discoveries on its tenements in the ‘Greater Cobar’ region of central NSW,
Australia. Utilising the Company’s deep geological experience and corporate expertise, Helix creates and looks to extract intrinsic value
for the benefit of its shareholders.
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 year.
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.
22 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
DIRECTORS’ REPORT
Subsequent Events
No matter or circumstance has arisen since 30 June 2022 that has significantly affected, or may significantly affect the consolidated
entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years.
Share Options
As at the date of this report, there were 70,441,667 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.
1,458,333 fully paid ordinary shares were issued as a result of the exercise of options for a fair value of $17,500.
Remuneration report (audited)
This remuneration report sets out the remuneration information for Directors and other KMP of the Company for the year ended 30
June 2022. 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
Non-Executive Directors
Mr P Lester - Non-Executive Chairman
Dr K Prendergast - Non-Executive Director (appointed effective 12 May 2022)
Mr J Macdonald - Non-Executive Director (resigned effective 12 May 2022)
Mr T Kennedy - Non-Executive Director (resigned effective 18 March 2022)
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 chaired such
discussions up until he resigned effective 18 March 2022. Subsequently, given the size and resignation of Mr Jason Macdonald effective
12 May 2022, the Board dissolved the remuneration committee and all remuneration decisions are made by the full Board.
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 and 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.
23 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
DIRECTORS’ REPORT
The approach to remuneration has been structured with the following objectives:
●
●
●
●
●
●
●
To attract and retain a highly skilled executive team whose members 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 and 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; and
To have flexibility in the mix of remuneration, including offering a balance of conservative long term incentive 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 the following components:
●
●
Fixed remuneration, inclusive of superannuation and allowances; and
Performance-linked compensation, including long term incentives through participation in the Company’s shareholder approved
equity incentive plan.
These components comprise each executive's total annual remuneration.
Executive Remuneration
All executives receive a fixed base cash salary and other associated benefits. All executives also receive a superannuation guarantee
contribution required by Australian legislation, which was 10% effective 1 July 2021. 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.
Performance-linked compensation
Performance-linked compensation can consist of both short-term and longer-term remuneration. Performance-linked remuneration is
not based on specific financial indicators such as earnings or dividends as the Group is at the exploration and development
stage. Vesting of long term incentives is based on the share price performance of the Group, which is considered an appropriate
measure of the outcome of overall performance. There is no separate profit-share plan.
Long Term Incentives
Long-term incentives (LTI) can comprise share options and/or performance rights, which are granted from time to time to encourage
sustained performance in the realisation of strategic outcomes and growth in shareholder value. Options and rights are granted for no
consideration and do not carry voting rights or dividend entitlements.
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. 1,000,000 performance rights were issued to the Managing Director during the year and 7,200,000
options were issued to Directors as set out below (2021: 7,000,000 performance rights issued to the Managing Director).
24 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
DIRECTORS’ REPORT
Vesting conditions of performance options under the Company's Employee Incentive Scheme:
●
●
●
●
A third vesting on the achievement of 20-day VWAP of $0.036;
A third vesting on the achievement of 20-day VWAP of $0.063;
A third vesting on the achievement of 20-day VWAP of $0.081; and
All performance rights and options vest immediately if either the Company's JORC 2012 Mineral Resource at any one project
exceeds 0.2 million tonnes of contained copper or copper metal equivalent for polymetallic projects from a Mineral Resource with
a minimum cut-off grade of no less than 0.3% Cu, or the Company's JORC 2012 Mineral Resource at any one project exceeds 1
million ounces of contained gold or gold metal equivalent for gold/silver projects from a Mineral Resource with a minimum cut-
off grade of no less than 0.3g/t Au.
2022
Mr M Rosenstreich
Mr M Rosenstreich
Mr M Rosenstreich
Mr P Lester
Mr P Lester
Mr P Lester
Mr J Macdonald
Mr J Macdonald
Mr J Macdonald
Mr T Kennedy
Mr T Kennedy
Mr T Kennedy
2021
Mr M Rosenstreich
Mr M Rosenstreich
Mr M Rosenstreich
Value of
Options/
Rights granted
during the year
$
Grant Date
Fair value
Exercise price
Expiry date
4,033
3,633
3,400
8,518
7,563
7,241
8,518
7,653
7,241
8,518
7,653
7,241
02/11/2021
02/11/2021
02/11/2021
23/11/2021
23/11/2021
23/11/2021
23/11/2021
23/11/2021
23/11/2021
23/11/2021
23/11/2021
23/11/2021
0.0121
0.0630
0.0810
0.0106
0.0096
0.0091
0.0106
0.0096
0.0091
0.0106
0.0096
0.0091
-
-
-
0.0360
0.0630
0.0810
0.0360
0.0630
0.0810
0.0360
0.0630
0.0810
02/11/2024
02/11/2024
02/11/2024
05/12/2024
05/12/2024
05/12/2024
05/12/2024
05/12/2024
05/12/2024
05/12/2024
05/12/2024
05/12/2024
Value of
Options/
Rights granted
during the year
$
17,500
28,613
29,750
Grant date
Fair value
Exercise price
Expiry date
07/04/2021
07/04/2021
07/04/2021
0.0120
0.0109
0.0102
-
-
-
07/04/2026
07/04/2026
07/04/2026
Number of
Options /
Rights held at
end of the year
333,333
333,333
333,334
800,000
800,000
800,000
800,000
800,000
800,000
800,000
800,000
800,000
Number of
Options/
Rights held at
end of the year
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 $500,000 per annum which was last approved at the Annual General Meeting in November 2020.
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.
25 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
DIRECTORS’ REPORT
Details of Remuneration
Salaries and fees paid do not include any superannuation payments. The Company does not pay retirement allowances to Non-
Executive Directors in line with ASX Corporate Governance Recommendations.
Primary benefits
Annual and
Long Service
Leave
Provision
$
Non-
Monetary
Benefits
$
Salary &
Fees
$
59,091
39,428
32,609
6,198
212,500
-
-
-
-
(5,243)
349,826
(5,243)
-
-
-
-
-
-
2022
P Lester
J Macdonald1
T Kennedy2
K Prendergast3
M Rosenstreich
Post
Employment
Equity
Super-
annuation
$
Options4
$
Performance
Rights5
$
Total
$
Performance
Related
%
5,909
3,943
3,261
620
21,250
23,412
23,412
23,412
-
-
-
-
-
-
31,616
88,412
66,783
59,282
6,818
260,123
-
-
-
-
12.50%
34,983
70,236
31,616
481,418
1Mr J Macdonald ceased to be a director 12 May 2022
2Mr T Kennedy ceased to be a director 18 March 2022
3Dr K Prendergast was appointed on 12 May 2022
4The fair value of options granted to Non-Executive Directors during the year is calculated at the date of grant using the Black Scholes
option pricing model.
5The 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
Superannuat
ion
$
Options
$
Performance
Rights4
$
Total
$
Performance
Related
%
50,228
82,292
36,530
36,530
193,636
-
12,608
-
-
(72,484)
399,216
(59,876)
-
-
-
-
-
-
4,772
7,818
3,470
3,470
18,395
37,925
-
-
-
-
-
-
-
22,937
-
-
-
55,000
125,655
40,000
40,000
139,547
22,937
400,202
-
18.25%
-
-
-
2021
P Lester1
M Rosenstreich2
J Macdonald
T Kennedy
M Wilson3
26 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
DIRECTORS’ REPORT
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.
4The 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.
No short-term cash bonuses were paid or accrued for during the year ended 30 June 2022 (30 June 2021: nil).
Whilst the level of remuneration is not dependent on the satisfaction of any performance condition, the performance of Executives is
reviewed on an annual basis against a number of qualitative and quantitative factors.
Additional Information
In considering the Group’s performance and benefits for shareholder wealth, the Board have regard to the following indices in respect
of the current financial year and the previous four financial years:
Item
Other income
Net (loss)
Share price at year end
Loss per share (cents)
Dividends
2018
2019
2020
2021
2022
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
70,766
(2,155,998)
$0.007
(0.15)
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
P Lester
M Rosenstreich
J Macdonald3
T Kennedy4
K Prendergast5
Base Salary / Fee (1) Term of Agreement
65,000
250,0002
50,000
50,000
50,000
Not specified
Not specified
Not specified
Not specified
Not specified
Notice Period by
Company
Not specified
3 months
Not specified
Not specified
Not specified
Notice Period from
Executive
Not specified
3 months
Not specified
Not specified
Not specified
(1) Inclusive of Superannuation guarantee contributions.
(2) $250,000 per annum full time - $200,000 on 80% part time basis.
(3)Mr J Macdonald resigned effective 12 May 2022
(4)Mr T Kennedy resigned effective 18 March 2022
(5)Dr K Prendergast was appointed effective 12 May 2022
27 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
DIRECTORS’ REPORT
Unlisted Incentive Securities held by Directors and Key Management Personnel
The number of securities 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.
Key Management Personnel
Balance as at
1 July 2021
Securities
Granted during
year as
remuneration
Securities
Exercised
during year
Securities
Expired
during year
Balance as
at 30 June
2022
Securities
vested &
exercisable at
end of year
P Lester
M Rosenstreich
K Prendergast
J Macdonald
T Kennedy
3,000,000
7,000,000
-
3,000,000
-
2,400,000
1,000,0000
-
2,400,000
2,400,000
-
(1,458,333)
-
-
-
(3,000,000)1
-
-
(3,000,000)1
(3,000,000)1
2,400,000
6,541,667
-
2,400,000
2,400,000
2,400,000
-
-
2,400,000
2,400,000
112,000,000 unlisted options (of which 9,000,000 options were held by KMP) with an exercise price of $0.065 expired on 10 December
2021.
Shares Held by Directors and Key Management Personnel
The number of ordinary shares in the Company held during the financial year by each Director of Helix Resources Limited and other
KMP of the Company, including their personally related parties, are set out below. No shares were issued as part of remuneration.
Key Management Personnel
Balance as at 1
July 2021
Purchased
Disposed
Other
Movements4
Balance as at
30 June 2022
P Lester
M Rosenstreich
K Prendergast1
J Macdonald2
T Kennedy3
2,105,342
1,000,000
-
15,635,514
450,000
1,250,000
2,500,000
-
-
-
-
-
-
-
-
-
1,458,333
-
(15,635,514)
(450,000)
3,355,342
4,958,333
-
-
-
1 Dr K Prendergast was appointed on 18 March 2022.
2 Mr J Macdonald resigned effective 12 May 2022.
3 Mr T Kennedy resigned effective 17 March 2022.
4 Other movements for Mr J Macdonald and Mr T Kennedy relates to the respective Director's resignation not the sale of shares during
the term. For Mr M Rosenstreich other movements relates to the exercise of performance rights during the year.
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 the Company 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.
Related Party Loans
There were no loans made to key management personnel during the year (2021: nil).
Use of Remuneration Consultants
During the year ended 30 June 2022, 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.
28 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
DIRECTORS’ REPORT
Voting and comments made at the Company’s last Annual General Meeting
A total of 94.28% of votes determined via a poll at the Company’s 2021 Annual General Meeting on the resolution dealing with the
Remuneration Report for the financial year ended 30 June 2021 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.
On and from 6 September 2021 the Company became aware of a number of potential non-compliances within its operations in relation
to statutory approvals and rehabilitation work and in relation to payment of Landholder compensation payments. Helix ‘self-reported’
the non-compliances to the NSW Resources Regulator and a full investigation was conducted and as a result the Company and
associates were found to have contravened the requirement to seek Activity Approvals with respect to drilling (Jan 2018 – 31 Dec 2019
and Aug 2017 – Oct 2020) and to have made “false and misleading statements” in reporting exploration activities in December 2018.
This resulted in Penalty Notices and several fines which have been paid by the Company, that are not material in respect of quantum
with this leniency likely recognition of the Company “self-reporting”.
These non-compliance events occurred prior to the appointment of the majority of the current Directors and prior to the new
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 Company engaged BDO Australia to prepare a valuation of options for the 30 June 2021 financial report prior to the appointment
of BDO as the Company’s Auditors for the year ended 30 June 2022. The auditors did not provide any other non-audit services during
the financial year.
Auditor's independence declaration
The auditor’s independence declaration is included on page 31 of the financial report.
29 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
DIRECTORS’ 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
___________________________
27 September 2022
30 | P a g e
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY DEAN JUST TO THE DIRECTORS OF HELIX RESOURCES LIMITED
As lead auditor of Helix Resources Limited for the year ended 30 June 2022, I declare that, to the best
of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Helix Resources Limited and the entities it controlled during the
period.
Dean Just
Director
BDO Audit (WA) Pty Ltd
Perth
27 September 2022
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia
Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO
International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability
limited by a scheme approved under Professional Standards Legislation
31 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
DIRECTOR’S DECLARATION
The consolidated financial statements and notes, as set out on pages 33 to 62 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 report as at 30 June 2022 and of the performance for the year ended on that date of the
Group; and
Complies with International Financial Reporting Standards as disclosed in Note 1.
●
●
In the Directors' opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors as required by section 295A of the Corporations Act
2001.
On behalf of the Directors
Michael Rosenstreich
Managing Director
Signed at Perth on 27 September 2022
32 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Revenue
Other income
Expenses
Employment costs
Directors fees
Share based payments
Depreciation and amortisation expense
Impairment of exploration and evaluation expenditure
Audit and accountancy
Professional fees
Information technology costs
Corporate marketing costs
Share registry fees
Premises costs
Other expenses
Travel expenses
Exploration expenditure
Foreign exchange (loss)/gain
Loss before income tax expense from continuing operations
Income tax expense
Loss after income tax expense from continuing operations
Loss after income tax expense from discontinued operations
Loss after income tax expense for the year
Other comprehensive loss for the year, net of tax
Total comprehensive loss for the year
Loss per share for loss from continuing operations
Basic loss per share
Diluted loss per share
Loss per share for loss from discontinued operations
Basic loss per share
Diluted loss per share
Loss per share for loss attributable to the owners of Helix Resources Limited
Basic loss per share
Diluted loss per share
Note
Consolidated
2022
$
2021
$
14
70,766
201,340
(101,367)
(340,905)
(334,870)
(117,283)
(406,275)
(59,134)
(190,588)
(9,381)
(163,467)
(19,820)
(23,042)
(275,804)
(7,913)
-
(496)
(99,414)
(196,921)
(32,544)
(54,257)
-
(42,507)
(110,280)
(15,585)
(119,762)
(34,422)
(45,898)
(161,460)
(14,803)
(108,360)
765
(1,979,579)
(834,108)
-
-
(1,979,579)
(834,108)
(176,420)
(335,442)
(2,155,999)
-
(1,169,550)
-
(2,155,999)
(1,169,550)
Cents
Cents
(0.14)
(0.14)
(0.01)
(0.01)
(0.15)
(0.15)
(0.09)
(0.09)
(0.04)
(0.04)
(0.13)
(0.13)
12
4
15
20
16
13
24
24
24
24
24
24
The above statement of profit or loss and other comprehensive income 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 2022
STATEMENT OF FINANCIAL POSITION
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
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
Security deposits
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
2022
$
2021
$
2
3
16
7
8
4
6
9
10
16
10
11,963,874
415,420
12,379,294
8,479
12,387,773
5,389,903
466,348
5,856,251
21,226
5,877,477
74,622
534,495
15,030,581
463,692
16,103,390
29,161
19,294
11,916,031
305,502
12,269,988
28,491,163
18,147,465
347,586
104,097
31,728
483,411
4,269
487,680
444,901
444,901
652,267
20,517
73,061
745,845
98,455
844,300
-
-
932,581
844,300
27,558,582
17,303,165
11
12
13
87,916,060
730,176
(61,087,654)
75,822,165
550,360
(59,069,360)
27,558,582
17,303,165
The above statement of financial position should be read in conjunction with the accompanying notes
34 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
STATEMENT OF CHANGES IN EQUITY
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 issued
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
Consolidated
Balance at 1 July 2021
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 issued
Transfer of options exercised
Options expired
Acquisition of EL8703 and EL8768 (note 5)
Issued
capital
$
Reserves
$
Accumulated
Losses
$
Total equity
$
75,822,165
550,360
(59,069,360)
17,303,165
-
-
-
-
-
-
(2,155,999)
-
(2,155,999)
-
(2,155,999)
(2,155,999)
12,536,000
(799,605)
-
17,500
-
340,000
-
-
335,021
(17,500)
(137,705)
-
-
-
-
-
137,705
-
12,536,000
(799,605)
335,021
-
-
340,000
Balance at 30 June 2022
87,916,060
730,176
(61,087,654)
27,558,582
The above statement of changes in equity should be read in conjunction with the accompanying notes
35 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
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 operating cash flows from discontinuing operations
Note
Consolidated
2022
$
2021
$
-
(1,210,164)
4,360
(18,563)
(257,858)
-
(786,974)
5,556
(6,547)
(316,161)
Net cash used in operating activities
2b
(1,482,225)
(1,104,126)
Cash flows from investing activities
Payments for property, plant and equipment
Payments for security deposits
Payments for capitalised exploration & evaluation expenditure
Advances for JV exploration expenditure
Proceeds from disposal of property, plant and equipment
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 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
7
11
(68,003)
(158,190)
(3,957,028)
589,325
5,738
(4,000)
(75,000)
(2,105,911)
50,000
-
(3,588,158)
(2,134,911)
12,536,000
150
(805,215)
(86,086)
8,886,773
225,000
(597,050)
(46,624)
11,644,849
8,468,099
6,574,466
5,389,903
(495)
5,229,062
155,356
5,485
Cash and cash equivalents at the end of the financial year
2
11,963,874
5,389,903
The above statement of cash flows should be read in conjunction with the accompanying notes
36 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
NOTES TO 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. A summary of the Group’s significant accounting policies is set out below.
Historical cost convention
The financial statements have been prepared on an accrual basis under the historical cost convention unless otherwise stated.
a) Principles of Consolidation
The Group financial statements consolidate those of the Company and all of its subsidiaries as of 30 June 2022. 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.
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.
37 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
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:
- 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.
Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision to abandon
the area is made. When production commences, the accumulated costs for the relevant area of interest are amortised over the life of
the area according to the rate of depletion of the economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation
to that area of interest.
f) Leases
For any new contracts entered into, the Group considers whether a contract is, or contains a lease. A lease is defined as ‘a contract, or
part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration’. To
apply this definition the Group assesses whether the contract meets three key evaluations which are whether:
●
●
●
The contract contains an identified asset, which is either explicitly identified in the contract or implicitly specified by being
identified at the time the asset is made available to the Group.
The Group has the right to obtain substantially all of the economic benefits from use of the identified asset throughout the period
of use, considering its rights within the defined scope of the contract.
The Group has the right to direct the use of the identified asset throughout the period of use. The Group assess whether it has
the right to direct ‘how and for what purpose’ the asset is used throughout the period of use.
Measurement and recognition of leases as a lessee
At lease commencement date, the Group recognises a right-of-use asset and a lease liability on the statement of financial position. The
right-of-use asset is measured at cost, which is made up of the initial measurement of the lease liability, any initial direct costs incurred
by the Group, an estimate of any costs to dismantle and remove the asset at the end of the lease, and any lease payments made in
advance of the lease commencement date (net of any incentives received).
38 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
Note 1. Summary of accounting policies (continued)
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).
The Group has no financial instruments classified as fair value through profit or loss (FVPL) or fair value through other comprehensive
income instruments. The Group's financial instruments all fall into the category of financial assets measured at amortised cost and are
accounted for as set out below.
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.
39 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
Note 1. Summary of accounting policies (continued)
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).
40 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
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 and Performance Rights.
The fair value of unlisted incentive securities granted is recognised as a share-based payment 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 securities.
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 securities,
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 securities. Performance rights 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 securities 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 securities 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 share-based payment expense recognised each period takes into account the most recent estimate.
Upon the exercise of the securities, the balance of the share-based payments reserve relating to those securities is transferred to share
capital. The market value of shares issued to employees for no cash consideration under the Share Plans is recognised as a share-based
payment 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).
41 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
Note 1. Summary of accounting policies (continued)
j) Interest in Joint Venture Operations (continued)
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.
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.
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.
42 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
Note 1. Summary of accounting policies (continued)
n) 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
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.
o) 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. Refer to note 21.
p) 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.
q) 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.
43 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
Note 1. Summary of accounting policies (continued)
r) 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 Unlisted Incentive Securities 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. The fair value of performance rights are determined based on Independent Expert Reports. Refer to note 12 for details
of options and rights on issue.
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.
s) 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 total comprehensive loss after income tax for the year ended 30 June 2022 of $2,155,999, it had
a net asset position of $27,558,582 and a cash balance of $11,963,874 as at 30 June 2022. 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.
44 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
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. Cash at the end of the financial year as shown in the statement of cash flows is reconciled to the related items in the
statement of financial position as follows:
Cash at bank
Cash at bank bears floating interest rates between 0.00% and 0.29% (2021: between 0.00% and 0.25%).
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 and amortisation expense
Foreign exchange loss/(gain)
Share based payments
Revenue from JV
Profit on sale of fixed assets
Employment costs capitalised
Loss on sale of fixed assets
Impairment expense
(Increase)/ decrease in trade and other payables
Increase/ (decrease) in provisions
Increase/ (decrease) in trade and other receivables
Consolidated
2022
$
2021
$
11,963,874
5,389,903
Consolidated
2022
$
2021
$
(2,155,999)
(1,169,550)
117,283
496
334,870
(1,939)
(10,409)
30,969
2,491
406,275
(220,704)
-
14,442
54,257
(765)
32,544
(69,922)
-
-
-
-
(106,998)
(33,432)
189,740
Net cash used in operating activities
(1,482,225)
(1,104,126)
c) Non-Cash Investing Activities
During the year, the Company issued 20,000,000 shares to Alpha HPA Ltd for a deemed fair value of $0.017 per share in exchange for
the acquisition of a new tenement (EL8703) and to remove exposure to Alpha HPA Ltd.’s deemed 49% JV interest for base metal in the
former joint venture tenements EL8768. Refer to note 5 for further details.
d) Funding from Exploration Partners
Included in the statement of cash flows is $589,325 (30 June 2021: $50,000), being proceeds from the Canbelego Joint Venture.
45 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
Note 3. Trade and other receivables
Trade debtors
Prepayments
Other receivables
Consolidated
2022
$
2021
$
222,057
74,319
119,044
270,726
69,397
126,225
415,420
466,348
No current or past due receivables were impaired at the end of the financial year.
Trade receivables includes $191K joint venture contributions and joint venture management fees receivable as at 30 June 2022 (2021:
$192K).
Note 4. Exploration and Evaluation Assets
Assets in the exploration and evaluation phase (at cost):
Balance at 1 July
Expenditure incurred during the year
JV Partner contributions
Impairment losses1
Additions through asset acquisitions2
Total
Consolidated
2022
$
2021
$
11,916,031
3,668,483
(487,658)
(406,275)
340,000
10,059,074
2,099,284
(242,327)
-
-
15,030,581
11,916,031
1Impairment loss has been recognised in relation to EL9026 - Mundarlo tenement (100% of carrying value) as a result of no significant
future exploration plans on the tenement. The Company is seeking joint venture partners to fund any ongoing future work.
2Refer to note 5 for details of exploration assets acquired during the year.
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, an impairment expense was recognised in the profit and loss of $406,275 (2021: $nil)
against the carrying value of its exploration and evaluation expenditure.
46 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
Note 5. Asset acquisition
On 2 September 2021, the Company announced that it has entered into a binding agreement with Alpha HPA Ltd ('Alpha HPA') to:
●
Acquire a new tenement (EL8703) prospective for copper/base metals (early-stage exploration) adjacent to its Collerina
tenements hosting the CZ Mineral Resource;
Reduce Helix’s royalty impost by 0.5% of NSR on its prospective and existing mineral resources from the former Alpha HPA joint
venture tenements;
Remove exposure to Alpha HPA’s deemed 49% JV interest for base metals in the former joint venture tenements (EL8768); and
Acquire a largely Inferred nickel-cobalt Mineral Resource (JORC 2012) on EL8768.
●
●
●
The purchase consideration comprised of:
●
●
Issue to Alpha HPA of 20,000,000 shares for deemed fair value of $0.017 per share; and
Alpha HPA retaining a 1.0% NSR Royalty on all metals from the former joint venture and newly acquired tenements.
Shareholder approval for the issue of 20,000,000 shares was obtained at the Company's annual general meeting on 23 November 2021
and the shares were issued on 11 February 2022.
The acquisition has been accounted for as an asset acquisition as it was not considered a business combination under AASB 3 Business
Combinations. The consideration has been accounted for as a share-based payment transaction using the principles of AASB 2 Share-
Based Payments.
As a result of the transaction with Alpha HPA, the Company issued 20,000,000 shares with a deemed fair value of $0.017 per share
(total of $340,000), which has been capitalised as exploration and evaluation assets. The value has been allocated as follows:
(1)
(2)
85% to EL8768 (value of $289,000) on the basis EL8768 hosts the Ni-Co Mineral Resource, it hosts an extensive copper Mineral
Resource - CZ, and several other prospects which would have been subject to the additional 0.5% NSR Royalty held by Alpha HPA.
15% to EL8703 (value of $51,000) on the basis it is an early stage exploration property.
Note 6. Security deposits
Security deposits
Security deposits relates to deposits held to secure exploration tenement holdings.
Note 7. Plant and equipment
Plant and equipment - at cost
Less: Accumulated depreciation
Motor vehicles - at cost
Less: Accumulated depreciation
Consolidated
2022
$
2021
$
463,692
305,502
Consolidated
2022
$
2021
$
111,783
(49,553)
62,230
100,232
(87,840)
12,392
129,626
(123,128)
6,498
161,054
(138,391)
22,663
74,622
29,161
47 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
Note 7. Plant and equipment (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 2020
Additions
Depreciation expense
Balance at 30 June 2021
Additions
Disposals
Depreciation write off on disposal
Depreciation expense
Balance at 30 June 2022
Note 8. Right-of-use assets
Right of use asset
Less: Accumulated depreciation
Plant &
Equipment
$
Motor Vehicles
$
Total
$
3,872
4,000
(1,374)
6,498
68,003
(85,846)
84,562
(10,987)
29,242
-
(6,579)
22,663
-
(60,822)
54,286
(3,735)
33,114
4,000
(7,953)
29,161
68,003
(146,668)
138,848
(14,722)
62,230
12,392
74,622
Consolidated
2022
$
2021
$
617,763
(83,268)
92,609
(73,315)
534,495
19,294
Reconciliation 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 2020
Depreciation expense
Balance at 30 June 2021
Balance at 1 July 2021
Additions1
Depreciation expense
Balance at 30 June 2022
$
65,598
(46,304)
19,294
19,294
617,762
(102,561)
534,495
1On 1 December 2021, the Group entered into a new sub-leasing agreement for the office premises in Subiaco, WA, whereby the
Company sub-leases office space from Carnaby Resources Limited. The terms of the agreement were renegotiated and differed from
those previously reported and accounted for. 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 3.79%. Additionally, on 1 September 2021, the
Company also entered into an office lease agreement for its NSW operations in Orange, NSW and an equipment lease in April 2022 (for
a 3-year term). The valuation for the exploration office and equipment lease is based on the present value of the lease payments, using
an incremental borrowing rate of 3.79% and 4.70% respectively. Lease extension options for both the Subiaco office lease and the NSW
Exploration office have been deemed by management to be reasonably certain to be exercised.
48 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
Note 9. Trade and other payables
Trade payables
Other payables
All amounts are current and are expected to be settled within 12 months.
Note 10. Lease liabilities
Future minimum lease payments as 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
Lease modification1
Lease repayment
Total
Consolidated
2022
$
2021
$
257,653
89,933
533,264
119,003
347,586
652,267
Consolidated
2022
$
2021
$
123,482
462,754
16,916
20,517
-
-
603,152
20,517
104,097
444,901
20,517
-
548,998
20,517
17,019
102,561
2,745
46,304
119,580
49,049
20,517
617,762
(89,281)
67,141
-
(46,624)
548,998
20,517
1 During the year the Company has entered into a new sub-leasing agreement for the office premises in Subiaco, WA, a new office lease
agreement for its NSW operations in Orange, NSW and an equipment lease. Refer to note 8 for further details.
49 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
Note 11. Share capital
Consolidated
2022
Shares
2021
Shares
2022
$
2021
$
Ordinary shares - fully paid
2,323,145,843 1,257,020,917
87,916,060
75,822,165
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 @ $0.007
Share Issue @ $0.01
Share Issue @ $0.01
Conversion of options
Share Issue @ $0.027
Conversion of options
Transfer exercise of options (Class H & G)
Exercise of performance options(1)
Issue of shares for Alpha HPA acquisition agreement(2)
Issue of Tranche 1 Placement Shares @ $0.012(3)
Share Purchase Plan @ $0.012(4)
Issue of Tranche 2 Placement shares @ $0.012(5)
Share Issue Costs
2022
No. Shares
2022
$
2021
No. Shares
2021
$
1,257,020,917
-
-
-
-
-
-
-
1,458,333
20,000,000
319,619,810
127,999,926
597,046,857
-
75,822,165
-
-
-
-
-
-
-
17,500
340,000
3,835,438
1,536,000
7,164,562
(799,605)
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)
Total
2,323,145,843
87,916,060 1,257,020,917
75,822,165
(1)
(2)
(3)
(4)
(5)
On 28 July 2021, 1,458,333 fully paid ordinary shares were issued on exercise of Tranche A of Managing Director performance
options
On 11 February 2022, 20,000,000 fully paid ordinary shares were issued to Alpha HPA Limited for a deemed fair value of $0.017,
in relation to the acquisition agreement announced on 2 September 2021 and approved by the Company's shareholders on 23
November 2021. See note 5 for further details.
On 24 March 2022, 319,619,810 fully paid ordinary shares were issued as Tranche 1 of the Placement to institutional and
sophisticated investors at an issue price of $0.012 per share.
On 13 May 2022, 127,999,926 fully paid ordinary shares were issued as a result of a Share Purchase Plan to shareholders at an
issue price of $0.012 per share.
On 19 May 2022, 597,046,857 fully paid ordinary shares were issued as Tranche 2 of the Placement to institutional and
sophisticated investors at an issue price of $0.012 per share.
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.
50 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
Note 12. Reserves
Unlisted Options
2022
No.
2022
$
2021
No.
2021
$
Balance at 1 July
Options issued to Lead Manager
Options issued to consultants
Options issued in prior period vesting during the current period
Options issued to Lead Manager
Expiry of options (1)
Performance rights issued to Managing Director
Performance rights issued to Managing Director(2)
Exercise of options
Options issued to Lead Manager
Exercise of options
Performance rights issued to employees(3)
Options issued to directors(4)
Exercise of performance options(5)
Options issued to Lead Manager(6)
37,000,000
-
-
-
-
(12,000,000)
-
1,000,000
-
-
-
23,700,000
7,200,000
(1,458,333)
15,000,000
550,360
-
-
-
-
(137,705)
30,328
2,436
-
-
-
123,729
70,236
(17,500)
108,292
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)
-
-
-
-
Balance at 30 June
70,441,667
730,176
37,000,000
550,360
(1)
(2)
(3)
(4)
(5)
(6)
On 10 December 2021, 12,000,000 unlisted options (Class F) expired.
On 2 November 2021 a further 1,000,000 performance rights were issued to the Managing Director.
A total of 23,700,000 performance rights were issued to employees of the Company under the Company's employee incentive
scheme with various performance milestones. This includes 6,000,000 unlisted performance rights issued on 3 August 2021 with
an expiry date of 3 August 2023 and a further 17,700,000 unlisted performance rights issued on 2 November 2021 with an expiry
of 2 November 2023.
On 6 December 2021, a total of 7,200,000 unlisted performance options were issued to Non-Executive Directors under the
Company's Employee Incentive Scheme (issued in three tranches (1/3 at $0.036, 1/3 at $0.065 and 1/3 at $0.081) and expiry of 6
December 2024.
On 10 June 2021 Tranche A of the Managing Director performance rights vested and were exercised on 28 July 2021, resulting in
the issue of 1,458,333 fully paid ordinary shares to the Company's Managing Director.
On 19 May 2022, 15,000,000 unlisted options were issued to the Lead Manager (Ashanti Capital) upon shareholder approval for
Tranche 2 of the Placement in May 2022. The options are exercisable at $0.018 each which an expiry date of 19 May 2025. 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.
The following table illustrates the options and rights on issue at the end of the financial year.
Option valuations
Number of
Options/
Rights
Grant Date
Expiry Date
Exercise
Price
Share
Price Volatility
Risk free
Rate
Options issued to Lead Manager
8,000,000 24/02/2021 23/02/2024
Performance rights issued to Managing Director(1) 6,541,667 07/04/2021 07/04/2026
10,000,000 26/05/2021 26/05/2024
Options issued to Lead Manager
Performance rights issued to employees(1)
6,000,000 03/08/2021 03/08/2026
Performance rights issued to employees(1)
17,700,000 02/11/2021 02/11/2023
2,400,000 23/11/2021 05/12/2024
Options issued to non-executive directors
2,400,000 23/11/2021 05/12/2024
Options issued to non-executive directors
2,400,000 23/11/2021 05/12/2024
Options issued to non-executive directors
15,000,000 19/05/2022 19/05/2025
Options issued to Lead Manager
$0.020
-
$0.054
-
-
$0.036
$0.063
$0.081
$0.018
$0.013 122.69%
$0.014 120.00%
$0.043 140.38%
$0.014 120.00%
$0.017 150.00%
$0.015 150.00%
$0.015 150.00%
$0.015 150.00%
$0.010 144.19%
0.13%
0.27%
0.10%
0.27%
0.62%
0.89%
0.89%
0.89%
2.86%
51 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
Note 12. Reserves (continued)
(1) Performance rights and options issued during the year were issued under the Company's Employee Incentive Scheme and are subject
to the satisfaction of vesting conditions as set out below. The performance incentives have both market and non-market based vesting
conditions as set out below. The valuation as at 30 June 2022 reflects the market based conditions as these have been considered, by
management, as more likely to be achieved than the non-market vesting conditions, however it is noted that a positive relationship
exists between the market vesting conditions and the non-market conditions, therefore this assessment was done purely to determine
the fair value of the incentives for the year ended 30 June 2022. The fair value of the performance incentives has been recognised over
the vesting period commencing from the grant date to the expiry date.
Vesting conditions of performance rights under the Company's Employee Incentive Scheme are as follows:
●
●
●
●
A third vesting on the achievement of 20-day VWAP of $0.036;
A third vesting on the achievement of 20-day VWAP of $0.063;
A third vesting on the achievement of 20-day VWAP of $0.081; and
All performance rights and options vest immediately if either the Company's JORC 2012 Mineral Resource at any one project
exceeds 0.2 million tonnes of contained copper or copper metal equivalent for polymetallic projects from a Mineral Resource with
a minimum cut-off grade of no less than 0.3% Cu, or the Company's JORC 2012 Mineral Resource at any one project exceeds 1
million ounces of contained gold or gold metal equivalent for gold/silver projects from a Mineral Resource with a minimum cut-
off grade of no less than 0.3g/t Au.
The weighted average remaining contractual life for the share-based payment options outstanding as at 30 June 2022 was 2.32 years
(2021: 2.40 years). The range of exercise prices for share-based payment options outstanding as at the end of the year was $0.02 to
$0.081 (2021: $0.02 to $0.065). Weighted average exercise price as at 30 June 2022 is 3.48 cents (2021: 4.00 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
Consolidated
2022
$
2021
$
(59,069,360)
(2,155,999)
137,705
(57,958,308)
(1,169,550)
58,498
(61,087,654)
(59,069,360)
52 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
Note 14. Other income
Net gain on disposal of property, plant and equipment
Government grants
Rental income
Interest income
Other income1
Other income
Consolidated
2022
$
2021
$
10,409
-
21,953
4,360
34,044
-
81,500
45,669
4,249
69,922
70,766
201,340
1 Other income includes Canbelego joint venture management fee income, insurance recovery income and reimbursement of legal fees
relating to the restructure of the Olary Royalty.
Note 15. Other expenses
Interest expense and bank fees
Interest costs - leases
Insurance
ASX and ASIC costs
Office costs
Other
Loss on asset disposal
Recruitment costs
Note 16. Discontinued operations
Consolidated
2022
$
2021
$
10,818
17,019
71,128
60,760
22,745
45,863
2,491
44,980
9,341
2,745
53,668
48,765
19,214
27,727
-
-
275,804
161,460
Divestment of Helix Chile Project
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. Prior year exploration expenses outlined below relate largely to money owed from the 2019
field activities which previous management was unaware of. FY22 exploration expenses relate to concession fees and care and
maintenance costs relating to tenements. Administration costs relate to in-country legal, accounting costs and divestment activities.
The operating results of the discontinued operation were as follows:
Financial performance information
Other income
Exploration expenditure
Corporate and administration expenses
Impairment expense 1
Net foreign exchange gain
Consolidated
2022
$
2021
$
-
(45,864)
(131,281)
-
725
48
(197,377)
(10,610)
(141,086)
13,583
(176,420)
(335,442)
53 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
Note 16. Discontinued operations (continued)
1 The impairment expense was disclosed in Company’s 30 June 2021 financial report and relates to the write-down of receivable
balances of the Helix Chile Project.
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 assets/(liabilities)
Consolidated
2022
$
2021
$
7,759
720
8,479
4,269
4,269
8,133
13,093
21,226
98,455
98,455
4,210
(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
Operating Lease Commitments
At 30 June 2022, it is anticipated that operating lease commitments for the next twelve months will be $123,482 (30 June 2021 $20,517)
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
2022
$
2021
$
1,377,917
1,982,083
-
29,045
61,400
-
3,360,000
90,445
54 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
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
2022
$
2021
$
349,826
399,216
(5,243)
34,983
29,740
(59,876)
37,925
(21,951)
101,852
22,937
101,852
22,937
481,418
400,202
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 2022 and 30 June 2021 are:
Income statement
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 income statement
Consolidated
2022
$
2021
$
(1,316,216)
1,316,216
(781,888)
781,888
(85,413)
85,413
3,061,414
(3,061,414)
-
-
55 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
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 2022 and 30 June 2021 is as follows:
Loss before income tax expense from continuing operations
Loss before income tax expense from discontinued operations
Tax at the statutory tax rate of 25% (2021: 26%)
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
Unrealised foreign exchange losses/(gains)
Right of use assets
Trade and other payables
Provisions
Business related costs - P&L
Revenue Losses
Capital Losses
Consolidated
2022
$
2021
$
(1,979,579)
(176,420)
(834,108)
(335,442)
(2,155,999)
(1,169,550)
(539,000)
(304,083)
128,270
-
410,730
105,803
(13,000)
211,280
-
-
Consolidated
2022
2021
(18,913)
(15,342)
(3,757,645)
-
3,626
7,250
7,932
334,761
14,950,488
2,482,553
13,994,710
(18,390)
(971)
(3,098,168)
(199)
318
8,060
18,988
248,236
14,169,568
2,581,854
13,909,296
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
2022
$
2021
$
59,801,952
54,498,337
56 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
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
Australia
Chile*
Total
2022
2021
2022
2021
2022
2021
11,963,874
415,420
5,389,903
466,348
-
-
-
-
11,963,874
415,420
5,389,903
466,348
-
-
8,479
21,226
8,479
21,226
15,030,581
463,692
74,622
534,495
28,482,684
11,916,031
305,502
29,161
19,294
18,126,239
347,586
31,728
104,097
652,267
73,061
20,517
-
-
-
-
8,479
-
-
-
-
-
-
-
21,226
15,030,581
463,692
74,622
534,495
28,491,163
11,916,031
305,502
29,161
19,294
18,147,465
-
-
-
347,586
31,728
104,097
652,267
73,061
20,517
-
-
4,269
98,455
4,269
98,455
444,901
928,312
-
745,845
-
4,269
-
98,455
444,901
932,581
-
844,300
Revenue
Depreciation and amortisation
Loss from continuing operations
Loss from discontinuing operations
70,766
(117,283)
(1,979,579)
-
201,340
(54,257)
(834,108)
-
-
-
-
(176,420)
-
-
-
(335,442)
70,766
(117,283)
(1,979,579)
176,420
201,340
(54,257)
(834,108)
(335,442)
* The Group's operations in Chile have been disclosed as discontinued operations. Refer to note 16.
Note 22. Contingent liabilities
There are no contingent liabilities as at 30 June 2022 (2021:nil)
Note 23. Events after the reporting period
No matter or circumstance has arisen since 30 June 2022 that has significantly affected, or may significantly affect the consolidated
entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years.
57 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
Note 24. Earnings per share
Loss per share for loss from continuing operations
Loss after income tax
Basic loss per share
Diluted loss per share
Loss per share for loss from discontinued operations
Loss after income tax
Basic loss per share
Diluted loss per share
Loss per share for loss attributable to the owners of Helix Resources Limited
Loss after income tax
Basic loss per share
Diluted loss per share
Consolidated
2022
$
2021
$
(1,979,579)
(834,108)
Cents
Cents
(0.14)
(0.14)
(0.09)
(0.09)
(176,420)
(335,442)
Cents
Cents
(0.01)
(0.01)
(0.04)
(0.04)
(2,155,999)
(1,169,550)
Cents
Cents
(0.15)
(0.15)
(0.13)
(0.13)
Number
Number
Weighted average number of ordinary shares
Weighted average number of ordinary shares used in calculating basic loss per share
1,452,315,172
900,938,328
Weighted average number of ordinary shares used in calculating diluted loss per share
1,452,315,172
900,938,328
At 30 June 2022, there were no listed options and 70,441,667 unlisted options on issue (30 June 2021: no listed options, 37,00,000
unlisted options) which represents 70,441,667 potential ordinary shares (30 June 2021: 37,000,000) 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
Restdown1
70% (2021: 70%)
100% (2021: 90%)
Copper
Gold
Aeris Resources
Glencore
58 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
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 the capitalised exploration expenditure of the joint operations is as follows:
Summarised statement of financial position
Exploration and evaluation assets
Additions
Total assets
Net assets
Restdown Joint Operation 1 Canbelego Joint Operation 70%
2022
$
2021
$
2022
$
2021
$
-
-
-
-
2,803,012
278,642
1,676,682
1,224,502
1,152,243
524,439
3,081,654
2,901,184
1,676,682
3,081,654
2,901,184
1,676,682
1 The Company’s interest in the Restdown project transitioned from 90% to 100% in FY21 and joint venture partner Isokind Pty Ltd
(100% subsidiary of Glencore) moved to 1% NSR royalty. The joint venture parties began the process of documenting the termination
of the joint venture agreement in the previous year (FY21) and completed the process in FY22.
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 2022, 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 $118,561 (2021: $52,942) and an increase (decrease) in
equity by $118,561 (2021: $52,942).
59 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
Note 26. Financial instruments (continued)
The Group's exposure to interest rate risk and effective weighted average interest rate for classes of financial assets is set out below:
2022
Financial Assets
Cash and cash equivalents
Trade and other receivables
Security deposits
Financial Liabilities
Trade payables
Lease liabilities
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
$
0.04%
-
0.25%
-
6.11%
-
-
-
-
11,856,055
-
463,692
12,319,747
-
548,998
548,998
-
-
-
-
-
-
-
-
-
-
107,819
415,420
-
523,239
11,963,874
415,420
463,692
12,842,986
347,586
-
347,586
347,586
548,998
896,584
Average
Interest Rate
Fixed Interest
Rate
More than 1
year
Non-Interest
Bearing
Floating
Interest Rate
Maturity
Floating
Interest Rate
Maturity
Less than 1
year
2021
Financial Assets
Cash and cash equivalents
Trade and other receivables
Security deposits
Financial liabilities
Trade payables
Lease liabilities
%
$
$
$
$
Total
$
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
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
2022
CLP
2021
CLP
4,314,363
(2,590,546)
1,723,817
3,887,275
(6,748,105)
(2,860,830)
60 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
Note 26. Financial instruments (continued)
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 is generally the carrying amount, net of any
provisions for doubtful debts.
Note 27. Remuneration of Auditors
Auditing and reviewing the financial reports
Non-audit advisory services
Total
Consolidated
2022
$
45,874
-
2021
$
28,919
4,000
45,874
32,919
The auditor of Helix Resources Limited for the year ended 30 June 2022 is BDO Australia (30 June 2021: HLB Mann Judd). The Company
engaged BDO Australia to prepare a valuation of options for the 30 June 2021 financial report (for total value of $4,000) prior to the
appointment of BDO as the Company’s Auditors for the year ended 30 June 2022. No other non-audit advisory services were provided
by the auditors in the current year.
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
2022
$
2021
$
12,091,101
16,777,664
5,592,642
12,919,901
28,868,765
18,512,543
202,163
41,597
745,845
-
243,760
745,845
87,576,060
730,176
(59,681,230)
75,822,165
550,360
(58,605,827)
28,625,006
17,766,698
(1,477,196)
(859,309)
61 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
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 2022.
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2022.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2022.
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
Percentage Held 2022 Percentage Held 2021
Oxley Exploration Pty Ltd
Leichhardt Resources (QLD) Pty Ltd
Helix Resources (Overseas) Pty Ltd
McClatchie Mining Pty Ltd
Ionick Metals Pty Ltd (previously
Helix Copper (NSW) Pty Ltd)
Helix Resources Chile Limitada
Australia
Australia
Australia
Australia
Australia
Mineral Exploration
Mineral Exploration
Mineral Exploration
Mineral Exploration
Mineral Exploration
Chile
Mineral Exploration
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
62 | P a g e
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
INDEPENDENT AUDITOR’S REPORT
To the members of Helix Resources Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Helix Resources Limited (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 30 June 2022, 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 report, 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:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its
financial performance for the year ended on that date; and
(ii)
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 Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (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 confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
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.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia
Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO
International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability
limited by a scheme approved under Professional Standards Legislation
63 | P a g e
Carrying Value of Exploration and Evaluation Assets
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 4, the carrying value of the
Our procedures included, but were not limited to:
exploration and evaluation asset represents a significant
asset of the Group.
(cid:127)
Obtaining a schedule of the areas of interest
held by the Group and assessing whether the
The Group’s accounting policies and significant
rights to tenure of those areas of interest
judgements applied to capitalised exploration and
remained current at balance date;
evaluation expenditure are detailed in Notes 1 and 4 of
the financial report.
(cid:127)
Verifying, on a sample basis, exploration and
evaluation expenditure capitalised during the
In accordance with AASB 6 Exploration for and
year for compliance with the recognition
Evaluation of Mineral Resources (‘AASB 6’), the
criteria of AASB 6;
recoverability of exploration and evaluation expenditure
requires significant judgement by management in
determining whether there are any facts and
circumstances that exist to suggest the carrying amount
of this asset may exceed its recoverable amount. As a
result, this is considered a key audit matter.
(cid:127)
Considering the status of the ongoing
exploration programmes in the respective
areas of interest by holding discussions with
management, and reviewing the Group’s
exploration budgets, ASX announcements and
director’s minutes;
(cid:127)
Considering whether any such areas of
interest had reached a stage where a
reasonable assessment of economically
recoverable reserves existed;
(cid:127)
(cid:127)
Considering whether any facts or
circumstances existed to suggest impairment
testing was required; and
Assessing the adequacy of the related
disclosures in Notes 1 and 4 to the financial
report.
64 | P a g e
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2022, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Other matter
The financial report of Helix Resources Limited, for the year ended 30 June 2021 was audited by
another auditor who expressed an unmodified opinion on that report on 30 September 2021.
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 has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
65 | P a g e
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 23 to 29 of the directors’ report for the
year ended 30 June 2022.
In our opinion, the Remuneration Report of Helix Resources Limited, for the year ended 30 June 2022,
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.
BDO Audit (WA) Pty Ltd
Dean Just
Director
Perth
27 September 2022
66 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
SHAREHOLDER INFORMATION
The shareholder information set out below was applicable as at 14 September 2022.
A. Distribution of Equity Securities
Analysis of number of equitable security holders by size of holding:
Holding
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - 250,000
250,001 and over
Total
Holding less than a
marketable parcel
Ordinary
shares
No. of
holders
Unlisted
Options
$0.018
Exp.
19.05.25
118
143
204
1,482
534
1,000
3,481
1,619
-
-
-
-
-
1
1
-
Minimum $500.00 parcel at $0.007 per unit
$0.054
Exp.
26.05.24
$0.02
Exp.
24.02.24
$0.063
Exp.
06.12.24
$0.036
Exp.
06.12.24
$0.081
Exp.
06.12.24
Unlisted
Performance
Options
-
-
-
2
-
7
9
-
-
-
-
-
8
2
10
-
-
-
-
-
-
3
3
-
-
-
-
-
-
3
3
-
-
-
-
-
-
3
3
-
-
-
-
-
-
9
9
-
Minimum
Parcel Size
Holders
Units
71,429
1,619
41,249,540
B. Percentage Held by 20 Largest Shareholders
The names of the twenty largest security holders of quoted equity securities are listed below:
BPM INVESTMENTS LIMITED
UBS NOMINEES PTY LTD
YANDAL INVESTMENTS PTY LTD
TREASURY SERVICES GROUP PTY LTD
PONDEROSA INVESTMENTS (WA) PTY LTD
ASHANTI INVESTMENT FUND PTY LTD
IRUKA PTY LTD
MR BULENT BESIM
CITICORP NOMINEES PTY LIMITED
BNP PARIBAS NOMS PTY LTD
JOMALCO PTY LTD
MR FARIS SALIM CASSIM
METAL TIGER PLC
PHEAKES PTY LTD
SILVER CROWN TECHNOLOGY LIMITED
ALPHA HPA LIMITED
MR ROBERT PATRICK HEARNE
TROCA ENTERPRISES PTY LTD
MS OLIVIA KIDON
BOTSIS HOLDINGS PTY LTD
HENCONNOR PTY LTD
Total: Top 20 holders of Ordinary Fully Paid Shares
Total issued capital
Ordinary shares
% of total
Number held
125,000,000
83,333,333
51,437,609
41,666,667
35,000,000
33,333,333
30,000,000
29,500,000
27,390,829
21,500,055
21,000,000
20,833,333
20,833,333
20,833,333
20,833,333
20,000,000
20,000,000
20,000,000
18,805,742
16,666,667
16,666,667
shares
issued
5.38
3.59
2.21
1.79
1.51
1.43
1.29
1.27
1.18
0.93
0.90
0.90
0.90
0.90
0.90
0.86
0.86
0.86
0.81
0.72
0.72
694,634,234
29.90
2,323,145,843
100.00
67 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
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
Class I Unlisted Options
Class J Unlisted Options
HLXAI Unlisted Performance Options
HLXAI Unlisted Performance Options
Unlisted Performance Options
Unlisted Options issued to Non-Executive Directors
Unlisted Options issued to Non-Executive Directors
Unlisted Options issued to Non-Executive Directors
Class K Unlisted Options
E. Substantial holders
Substantial holders in the Company are set out below:
Terms
Exercisable at 2.0 cents, expiring on or before 23/02/24
Exercisable at 5.4 cents, expiring on or before 26/05/24
Performance Options, various milestones, expiring on or
before 07/04/26
Performance Options, various milestones, expiring on or
before 03/08/26
Performance Options, various milestones, expiring on or
before 02/11/23
Exercisable at 0.36 cents, expiring on or before 06/12/24
Exercisable at 0.63 cents, expiring on or before 06/12/24
Exercisable at 0.81 cents, expiring on or before 06/12/24
Exercisable at 0.18 cents, expiring on or before 19/05/25
No. of Options
8,000,000
10,000,000
6,541,667
6,000,000
17,700,000
2,400,000
2,400,000
2,400,000
15,000,000
70,441,667
Name
Class
Number held
% held
BPM INVESTMENTS LIMITED
Fully paid ordinary shares
125,000,000
5.38%
Substantial holders in unquoted equity securities greater than 20% are as follows:
Name
Class
Number held
% held
ASHANTI CAPITAL PTY LTD
Class K unlisted options - $0.018 expiring 19/05/25
15,000,000
21.29%
F. Directors' Interest in Share Capital
Director
P Lester
M Rosenstreich
Fully Paid
Ordinary
Shares
Unlisted
Options
3,355,342
4,958,333
2,400,000
6,541,667
8,313,675
8,941,667
68 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
SHAREHOLDER INFORMATION
G. On-Market Share Buy-Back
The Company does not have a current on-market share buy-back.
H. Restricted securities
20,000,000 ordinary shares which were issued to Alpha HPA Limited, in relation to the acquisition agreement announced on 2 September
2021 and approved by the Company's shareholders on 23 November 2021. These securities are restricted from sale as detailed in the
table below.
Class
Ordinary fully paid
Ordinary fully paid
Ordinary fully paid
Ordinary fully paid
Expiry date
11 November 2022
11 February 2023
11 May 2023
11 August 2023
Number
of shares
5,000,000
5,000,000
5,000,000
5,000,000
20,000,000
69 | P a g e
Helix Resources Limited
Annual Report
For the year ended 30 June 2022
TENEMENT SCHEDULE
Helix has the following granted tenement interests in Australia.
Tenement
Name
Mineral
Ownership
EL6105
EL6140
EL6501
EL6739
EL7438
EL7439
EL7482
EL8433
EL8608
EL8633
EL8703
EL8710
EL8845
EL8948
EL8768
EL9026
EL9345
Canbelego
Restdown
South Restdown
Base metals/gold
Base metals/gold
Base metals/gold
Muriel Tank
Gold
Quanda
Fiveways
Little Boppy
Boundary
Yanda Creek
Rochford
Amaroo
Honey Bugle
Darbarlara
Bijoux
Collerina
Mundarlo
Warrah
Base metals/gold
Base metals/gold
Base metals/gold
Base metals/gold
Base metals/gold
Base metals/gold
Base metals/gold/nickel &
cobalt
Base metals/gold
Base metals/gold
Base metals/gold
Copper/gold/nickel & cobalt
Base metals
Base metals/gold
70% Helix, 30% Aeris
100% Helix*
100% Helix*
100% Helix*
100% Helix
100% Helix
100% Helix
100% Helix
100% Helix
100% Helix
100% Helix
100% Helix
100% Helix
100% Helix
100% Helix
80% Helix, 20% Private
Partner
100% Helix
* Under conversion from 90% Helix, 10% Isokind Pty Ltd (Glencore entity) to 100% Helix, 1% NSR Isokind
70 | P a g e
helix@helixresources.com.au
78 Churchill Avenue
SUBIACO WA 6008
helixresources.com.au
ASX:HLX