ANNUAL REPORT 2023
ABN 27 009 138 738
HELIX RESOURCES LIMITED
Contents
30 June 2023
Corporate directory
2
Chairman's Letter 3
Review of Operations 4
Directors' report
Auditor's 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 to the members of Helix Resources Limited
Shareholder information
18
29
30
31
32
33
34
35
61
65
Tenement Register 69
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HELIX RESOURCES LIMITED
Corporate directory
30 June 2023
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
Level 13, 191 St Georges Terrace, WA 6000
Telephone
+61 8 9321 2644
Email
Website
helix@helixresources.com.au
www.helixresources.com.au
Share Registry
Computershare Investor Services Pty Limited
Level 17, 221 St Georges Terrace
Perth, WA 6000
T: 1300 850 505
www.computershare.com
Auditor
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
Chairman’s Letter
30 June 2023
Dear Shareholders,
My letter to you presenting the latest Helix Resources annual
report for the 2023 financial year follows a year where your
Company has made considerable progress toward unlocking
more copper discoveries in the Cobar region of NSW. Equity
markets have been almost universally difficult for investors
and small explorers alike this year. However, your Company
retains a significant cash position and continues its copper
search with enthusiasm.
I am pleased to provide this report for a number of reasons.
Firstly, it outlines the extent of the exceptional geological work
which has been undertaken by the team.
Helix is “all in on copper exploration” and as part of this
strategy, the Company has considerably improved its
landholding to just shy of 3,000km2. With this large tenure
located within the exceptionally fertile Cobar region for copper
exploration, a variety of mapping, surveying and drilling
techniques have been used to define highly prospective early-
stage exploration targets. We are all watching closely as
drilling commences at the Black Range area and the recently
upgraded Bijoux prospect, both located along the Rochford
trend.
This greenfields exploration work has occurred in tandem with
the Company building copper tonnage at the Canbelego joint
venture (70%-Helix / 30% Aeris Resources). The project is
prospective for Cobar-style copper deposits, such as those
found at the nearby CSA copper mine. During FY23, the JV
delivered a JORC Resource upgrade which included a
considerable 77% increase in contained copper. Further
encouraging targets, particularly at the Western Lodes
positions, continue to add further potential to this emerging
deposit.
I mentioned earlier I was excited to deliver this report for a
number of reasons and another, perhaps more personal
reason, is that this will be my last annual report delivered on
behalf of the Company. I have spent roughly five years as
Chairman, including time as Executive Chair, and I can certainly
say I am so pleased to be departing Helix at a time when the
Company is building a position of significant prospect strength
and anticipation towards new copper discoveries.
Helix has a strong asset backing and these assets are being
developed by an equally strong team. At the Board-level I
would like to congratulate my fellow directors Mike
Rosenstreich and Dr Kylie Prendergast who will continue to
oversee the operations of the business. In particular, I would
like to wish Dr Prendergast all the very best throughout the
transition process into an Executive Director role and taking
responsibility for the management of the Company, leveraging
her deep exploration knowledge attained from more than 25
years’ experience in the international mining and resource
sector.
Pleasingly, we are making progress attracting talent to fill a
vacant non-executive director role with strong interest from a
number of candidates, all of whom possess considerable
financial and capital markets experience.
With all of these activities underway, most importantly drill
rigs turning, there is plenty of excitement about the future of
Helix. We have the right team, are in the right commodity, in
one of the most prospective regions in the country and with an
enviable ground position.
I will certainly be keeping a close eye on the Company’s
progress and I would encourage all holders and prospective
investors to follow suit.
Yours faithfully,
Peter Lester
Chairman
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HELIX RESOURCES LIMITED
Review of Operations
30 June 2023
1. OPERATIONS REPORT
During the 12-month period, Helix Resources Limited (“Helix” or “the Company”) continued to define further copper mineralisation
and develop exciting regional targets at its copper projects located along the Rochford and Collerina trends within the Cobar region of
NSW. In the same area, Helix also holds several promising high-grade lateritic nickel-cobalt (Ni-Co) prospects, through its wholly owned
subsidiary company Ionick Metals Ltd which was established during the period. Ionick is aiming to unlock hidden value for a suite of Ni-
Co-Platinum group metals (PGM) prospects centred around the Homeville Ni-Co Mineral Resource. Gold mineralisation has also been
discovered on the Helix tenements and these targets will be assessed in line with the regional copper focused activities. Helix also
holds royalty interests over two advanced iron ore projects located in Australia.
2. OVERVIEW
Helix is implementing an exploration strategy focused solely on the ‘Greater Cobar’ region with several advanced copper, gold, and
nickel-cobalt projects across its large ~2900km2 land position, located along regional-scale mineralised trends. The Cobar region is host
to significant metal endowment of approximately 4.3 million tonnes (Mt) copper, 5 million ounces (Moz) gold and 110 Moz of silver.
The ‘lead’ project for Helix is the Canbelego Main Lode Copper Deposit (refer Figure 1 – Location Plan).
Figure 1: Helix Resources location plan covering the Collerina, Rochford and Meryula Copper Trends
3. DISCOVERY – GREATER COBAR REGION
The Company’s objective, as depicted in Figure 2 – Helix Target Profile, is to discover significant copper deposits through improving
tonnage at its advanced projects and by building up its portfolio of early-stage targets and prospects towards Mineral Resources to
support mining studies.
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 Project and several advanced Ni-Co prospects in close-proximity.
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HELIX RESOURCES LIMITED
Review of Operations
30 June 2023
As well, there are ‘stand-alone’ gold prospects at Muriel Tank and the Restdown area between the Meryula and Rochford Trends.
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
trends in the past financial year.
Figure 2: Helix Target Profile
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 current Canbelego Main Lode Copper Deposit, part of the
Canbelego Joint Venture (JV) project – a 70% Helix Resources / 30% Aeris Resources Ltd (ASX: AIS) JV with Helix being the JV manager.
The Rochford Trend is considered prospective for high-grade ‘Cobar’ style copper deposits. These, typically have modest surface
‘footprints’ but extend vertically for 100’s to 1,000’s of metres often with parallel lode positions. At the Canbelego Main Lode, the
Company has now confirmed the vertical continuity of the mineralisation and identified several parallel lode positions – the Western
Lodes, with potential to be Main Lode ‘look-a-likes’.
Canbelego Main Lode – Expansive Diamond Drilling Campaign
Late last year, Helix completed a bold, expansive diamond drilling program via two diamond holes CANDD015 and CANDD016 which
tested the continuity of high-grade copper mineralisation 200 metres (m) down plunge from known drill intercepts, as well as
identified new downhole electromagnetic (DHEM) ‘conductive’ anomalies.1
CANDD015 intersected two mineralised shear zones interpreted to coincide with the Western Lode and Main lode positions2.
Additionally, a DHEM survey was completed on CANDD015 from 80m to 648m downhole identifying new, large-scale, conductive
targets in an area not previously intersected by any drilling within the interpreted host shears to the Canbelego copper mineralisation.
In December 20223, Helix announced the completion of hole CANDD016 which intersected two mineralised zones in addition to the
discovery of further large scale, conductive targets from DHEM surveying.
1 Refer to ASX announcements dated 30 November 2022, 13 and 19 December 2022
2 Refer to ASX announcement dated 30 November 2022
3 Refer to ASX announcement dated 8 December 2022
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HELIX RESOURCES LIMITED
Review of Operations
30 June 2023
The intersected shear zones are interpreted to coincide with the Western Lode and Main lode positions, consistent with the previously
reported observations from CANDD015.
In February 2023, the Company successfully intersected its most conductive DHEM anomaly through a wedged-off daughter hole
CANDD016C after several misses in the challenging ground conditions for directional drilling.
Assay results for CANDD016C were received which demonstrated the high-grade nature of the copper shoot4. Highlights included:
•
•
3.1m at 2.19% copper (Cu) (from 373m); and,
5m at 3.59% Cu (from 603m).
This was the deepest copper intercept to date at Canbelego and was 320m vertically below the base of the 2010 Inferred Mineral
Resource.
Figure 3: Semi massive chalcopyrite mineralisation in drill core from CANDD016C
The Company conducted follow-up drilling via hole CANDD019A, successfully intersecting copper sulphide mineralisation
approximately 150m ‘up-plunge’ from CANDD016C at the predicted position of the conductive targets.
In addition, CANDD020 tested the discrete high-grade copper shoot extension between the hole 19A and 16C intercepts5.
In summary, the Main Lode was intersected as predicted in both holes (refer Figure 4 – Schematic Long Section) with the following
results:
•
•
•
•
12m at 0.58% Cu from 493m, including 2m at 1.68% Cu from 497m (CANDD019A)
8m at 1.23% Cu from 508m, including 3m at 2.35% Cu from 509m (CANDD019A).
5m at 0.39% Cu from 579m, including 1m at 1.23% Cu from 581m (CANDD020).
6m at 1.86% Cu from 586m (CANDD020).
4 Refer to ASX announcement dated 28 March 2023
5 Refer to ASX announcement dated 5 June 2023
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HELIX RESOURCES LIMITED
Review of Operations
30 June 2023
Figure 4: Schematic Long Section Canbelego Main Lode
Canbelego Main Lode – Upper Zone
During the March 2023 quarter, Helix completed a series of reverse-circulation (RC) drill holes to test shallow high-grade copper
mineralisation with the potential to be included within the updated Mineral Resource Estimate.
The program consisted of 906m comprising seven drill holes and was focussed on infilling targets developed from results in late 2022,
such as hole CBLRC057 which intersected 16m at 3.21% Cu from 117m downhole (including 11m at 4.58% Cu).
In January 2023, the Company reported significant copper mineralisation was observed in five of the drill holes with visual logs
indicating weak, medium, and strong copper mineralisation extending 60m up dip from CBLRC057 over downhole widths of 12m to
51m6.
These visual results were confirmed by the receival of high-grade copper assays in March 20237. Results included:
•
•
•
5m at 5.35% Cu from 18m and 2m at 6.42% Cu from 31m within 25m at 1.87% Cu from 13m (CBLRC064)
6m at 4.72% Cu from 103m within 10m at 3.02% Cu from 100m (CBLRC062)
4m at 3.27% Cu from 70m within 10m at 1.58% Cu from 68m (CBLRC063)
6 Refer to ASX announcement dated 31 January 2023
7 Refer to ASX announcement dated 2 March 2023
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HELIX RESOURCES LIMITED
Review of Operations
30 June 2023
•
•
3m at 2.45% Cu from 78m within 23m at 0.75% Cu from 62m (CBLRC058)
9m at 1.3% Cu from 108m within 16m at 0.9% Cu from 108m (CBLRC059)
The assays demonstrate near-surface oxide and sulphide copper mineralisation within the Main Lode that extends south along strike
from the historic workings, with true widths ranging from 15m to 20m at a 0.1% Cu cut-off.
The Main Lode oxide copper mineralisation transitions to sulphide-copper mineralisation between 50m and 70m below surface, with
similar mineralised drill widths in both the oxide and sulphide zones.
The exciting RC results were further supported by the Company’s diamond drilling activity at CANDD017, which was designed to target
an area down-dip of hole CBLRC057 and further map out the high-grade copper zone identified by RC drilling.
The hole intersected a 21.7m zone of medium to strong intensity chalcopyrite (copper sulphide) mineralisation from 155.7m, including
1.3m of semi-massive chalcopyrite8. Assay results have confirmed these copper-mineral observations, with highlights including9:
-
-
11m at 0.66% Cu from 155m, including 4m at 1.44% Cu from 158m
8m at 2.83% Cu from 169m, including 5m at 4.23% Cu from 172m.
These new results have extended the shallow copper zone at least another 40m to over 150m vertical depth and remains open at
depth as well as to the north, toward the workings. (refer to Figure 5 – Canbelego Cross Section).
Figure 5: Canbelego Main Lode Cross Section 6,500,700mN
8 Refer to ASX announcement dated 2 March 2023
9 Refer to ASX announcement dated 28 March 2023
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HELIX RESOURCES LIMITED
Review of Operations
30 June 2023
The Western Lodes
The Western Lodes (refer Figure 6 – Canbelego Location Plan) are a series of parallel, mineralised lenses located ~300m west of the
Main Lode. They were identified in 2022 and were intersected regularly by exploratory RC holes and diamond holes testing depth
extensions of the Main Lode.
Figure 6: Canbelego Location Plan
Drill holes CANDD015, 015A, 016, 016A and 019A which targeted the Main Lode position were collared in the west, drilling to the east.
These holes intersected copper mineralisation at various Western Lode positions at down hole depths ranging from 300m to 400m.
For example, a highlight is hole CANDD016C encountered 8m at 1.25% Cu from 330m, including 4m at 1.83% Cu from 330m at the
West Lode position.
A systematic review of the Western Lode structures, for example as Main Lode ‘look-a-likes’ is being undertaken.
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HELIX RESOURCES LIMITED
Review of Operations
30 June 2023
Caballero
The Caballero prospect is located 2.5km south of the Greater Canbelego Area along the Rochford Trend and is also on the Canbelego JV
tenement. Helix resumed drilling here in July 2022 to follow-up on a significant copper-in-soil anomaly and highly anomalous intercepts
in two of four scout RC holes from 2013. This drill campaign was completed in mid-September as part of a larger drill program covering
the Greater Canbelego area and Caballero prospect with a total of 27 RC holes for 4,275 metres drilled.
Helix received assays for 15 holes in October10 with notable results including hole CBLRC040 which intersected multiple intervals of
copper mineralisation including an upper 10m (drilled width) oxide zone of copper carbonates (malachite and azurite) from 79m plus
three lower zones of sulphide mineralisation.
The sulphide intervals consist of 2% to 5% blebby and semi-massive chalcopyrite. The mineralised intervals in hole CBLRC040 returned
the following assays:
•
•
•
•
12m at 0.45% Cu from 78m, including 4m at 0.84% Cu from 80m
6m at 0.38% Cu from 114m, including 2m at 0.55% Cu from 114m
11m at 0.75% Cu from 141m, including 3m @ 1.83% Cu from 147m
8m at 0.31% Cu from 153m
There was poor sample recovery between 80m and 84m and it is likely that mineralised material has been lost from this interval, which
may impact the reported copper grade.
This hole was followed-up at depth with diamond hole CANDD014, which was drilled to 417.5m. CANDD014 intersected weak
chalcopyrite mineralisation (trace to 1%) in multiple zones below 240m downhole. This extensive zone of alteration and sulphide
mineralisation appears significantly faulted and is open along strike and at depth.
Further assays were received in November 202211, with RC holes CBLRC047 to CBLRC051 drilled at the northern end of the Caballero
prospect.
CBLRC050 intersected 4m at 0.52% Cu from 114m, including 1m at 1.15% Cu from 116m. This position is approximately 550m along
strike from the CBLRC040 intercept, referred to above. There is a ~600m interval between the anomalous intercepts in CBLRC040 and
CBLRC050 which remains open and has not been tested by any drilling. A geological review is in progress ahead of further drilling to
identify high-grade copper zones within an extensive, anomalous copper zone.
Early-Stage Copper Targets & Target Generation
Regional geochemical sampling recommenced in late 2022 along the Rochford Trend with a total 379 soil auger holes completed for
696m and 379 samples submitted for multi element geochemical analysis.
Earlier in May 2023, the Company announced a suite of additional highly encouraging copper and potential copper-gold targets
identified from the multi-element geochemical sampling and supported by geophysical and other data types. (Figure 7 – Rochford
Trend Copper geochemical anomalies).
10 Refer to ASX announcement dated 4 October 2022
11 Refer to ASX announcement dated 15 November 2022
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HELIX RESOURCES LIMITED
Review of Operations
30 June 2023
Figure 7: Rochford Trend Copper Geochemical anomalies
• Black Range Copper (-gold) Target (100% Helix)
Most notably, the Black Range prospect contains anomalous Cu-Bi-In-Sn-W in lag samples extending over an area of 6km by
1.7km, trending east-northeast. Historical underground copper/gold workings occur in this area which was highlighted by
nearby ‘conductive’ anomalies by the 2021 aerial electromagnetic surveys12. Recent geological mapping and rock chip
sampling also identified outcropping copper mineralisation with anomalous copper assays up to 2.6% Cu.
•
South Rochford Regional Copper Targets (100% Helix)
Emerging targets were delineated in the southern Rochford Trend, where new anomalies are being identified through the
largely transported cover sequence.
These include discrete Cu-Bi-Zn anomalies, such as in the Hermitage area within the broad, north-west trending litho-
structural belt associated with the Canbelego, Caballero, and Bijoux prospects.
These early-stage anomalies will be further refined with extensional and infill auger and lag sampling, which is currently in progress.
12 Refer to ASX announcement dated 23 March 2021
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HELIX RESOURCES LIMITED
Review of Operations
30 June 2023
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.
CZ Copper Project
The trend hosts several historic copper deposits and occurrences and includes the CZ Copper Project, discovered by Helix in late 2016,
as well as several early-stage copper prospects.
An updated geological interpretation and exploration model was completed during the period for the CZ Project. The updated
geological model underpins planning for further drilling to test for extensions and repetitions of the high-grade copper-sulphide shoots
which characterise the CZ mineralisation. Please refer to 4.3 CZ Mineral Resource for further information.
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 electromagnetic (EM) survey (VTEMTM) undertaken in early 2021 which generated
numerous conductive anomalies over both existing historical prospects and identified new targets.
Significant progress on new target generation is being achieved in the northern and southern sections of the Company’s Collerina
tenements.
The commencement of a geophysical surveying was announced during the June 2023 quarter.13 A ground-based ‘fixed-loop’ EM (FLEM)
geophysical survey was designed to follow-up the 2021 high priority VTEM targets.
EM surveys are a proven discovery tool in the Cobar area. Most recently, Aeris’ Constellation deposit was discovered by airborne EM. It
was followed up by ground geophysics and subsequently drilling to outline the current ‘open’ Mineral Resource estimate (MRE) of 6.7
million tonnes at 1.9% Cu and 0.6 g/t gold (Au)14. The Constellation deposit lies 60km to the north along interpreted extensions of the
Collerina Copper Trend from Helix’s tenements.
The immediate focus for the FLEM surveys has been the Quanda-Hermidale and Fiveways targets (Refer Figure 7).
Helix is awaiting the geophysical survey results and subject to positive outcomes, intends to undertake initial drill testing of these new
targets.
3.3 New Exploration Licence Application – Yangunyah
In May 2023, Helix reported it had applied for a new 585km2 Exploration Licence (EL), Yangunyah, prospective for copper discoveries
located north of the large-scale copper mines at Aeris Resources’ TCO (refer Figure 8 - Simplified Geological Location Plan).15
Helix has utilised reprocessed geophysical data and its own regional scale geological mapping to identify geological features related to
mineralisation. These are generally hard to discern because of the thick monotonous rock sequences with little ‘geophysical contrast’
and scarcity of outcrop to map structures or lithologies. Therefore, there has been little effective exploration in the past.
This new work has added vital insight to the interpretation of the regional geology, including an improved understanding of the
sequences and structures associated with mineralisation throughout the known copper bearing trend. The Company has identified
specific ‘signatures’ within the prospective host sequence to the copper deposits currently being mined at the TCO which are
considered to extend south to Helix’s Collerina project and north into the Yangunyah EL application.
13 Refer to ASX announcement dated 16 May 2023
14 Refer Aeris Resources ASX Report 18 April 2023
15 Refer to SX announcement dated 31 May 2023
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HELIX RESOURCES LIMITED
Review of Operations
30 June 2023
Figure 8: Simplified Geological Location Plan
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HELIX RESOURCES LIMITED
Review of Operations
30 June 2023
4. MINERAL RESOURCE ESTIMATES
4.1 Canbelego Main Lode - Mineral Resource Estimate (MRE) Upgrade
In June 2023, Helix announced a significant upgrade to the Canbelego Main Lode MRE, representing the first update of the Canbelego
resource since the 2010 estimate.16
The 2023 MRE has delivered a 77% increase in contained copper metal (+13.8kt) compared to the 2010 MRE, reflecting a 22% increase
in tonnage (+0.33Mt) and 45% increase in Cu grade (0.54% Cu).
An outline of the MRE is presented in Table 1 – 2023 Canbelego Main Lode MRE, below.
Helix restarted work at Canbelego in early 2021, the first exploration work undertaken at the project since 2013. The Company
completed 68 drill holes at the Main Lode and surrounding prospects for a total of 16,666m of drilling. The Main Lode drilling was
targeted to intersect depth extensions of the copper shoots and to better define copper grades and mineralised widths at shallow
levels broadly above the base of the 2010 MRE, as shown in Figure 2 – Schematic Long Section.
The 2023 MRE has been reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves 2012 (JORC Code). The 2010 MRE was reported in accordance with the JORC 2004 code.
Table 1: 2023 Canbelego Main Lode MRE
MRE Category
Tonnes
Grade (Cu%)
Cu-Metal (t)
Total opencut MRE, ≥240mRL; 0.3 Cu% cut-off grade & underground MRE, <240mRL; 0.8 Cu% cut-off grade
340,600
1,493,700
1,830,000
1.65
1.75
1.74
5,620
26,140
31,842
Potential opencut MRE, ≥240mRL; 0.3 Cu% cut-off grade
Tonnes
Grade (Cu%)
Cu-Metal (t)
Indicated
Inferred
Total: Opencut & Underground
Comprising:
MRE Category
Indicated
Inferred
Total: potential opencut MRE
99,700
282,300
377,000
1.28
1.21
1.23
1.81
1.88
1.87
1,276
3,416
4,637
4,360
22,774
27,171
Potential underground MRE, <240mRL; 0.8 Cu% cut-off grade
Indicated
Inferred
Total: potential underground MRE
240,900
1,211,400
1,453,000
* Numbers may not sum due to rounding
* Numbers are rounded to reflect that they are estimates
* A top-cut grade of Cu 12% was applied to the MRE
* Stated MRE complies with Reasonable prospects of eventual economic extraction
The Company is now reviewing the modelling work and assessing the growth potential of the MRE. A clear, proximal growth
opportunity is the Western Lodes which occur parallel to the Main Lode structure. High-grade, albeit generally narrow copper
intercepts have been recorded by drillholes passing through the Western Lodes aimed at deeper portions of the Main Lode. A
systematic review of the Western Lode structures, for example as Main-Lode ‘look-a-likes’ will be undertaken.
4.2 Homeville Nickel-Cobalt Mineral Resource
Helix acquired the Homeville deposit in late 2021 as part of a tenement acquisition and rationalisation of overlapping joint venture and
royalty rights from Alpha HPA Ltd17. Alpha HPA has pivoted its interest to production of high purity alumina from commercial
feedstocks rather than its own upstream ‘mined’ sources such as Homeville.
16 Refer to ASX announcement dated 14 June 2023
17 Refer ASX Report 1 September 2021 lodged by Helix Resources Ltd.
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HELIX RESOURCES LIMITED
Review of Operations
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A MRE was completed in 2018 by Optiro Pty Ltd at a 0.7% Ni cut-off and classified and reported in accordance with the guidelines of
the JORC Code (2012). The estimate was released in September 201818 and the summary information is presented in Table 2 –
Homeville Mineral Resource Estimate. This deposit is 100% owned by Ionick and is subject to a 1% NSR held by Alpha HPA.
The deposit represents an oxidised nickel laterite developed over an ultramafic serpentinite protolith. The rough dimensions are a
length of 2,000m, width of 300m and a depth varying from natural surface to 60m.
Metallurgical testwork undertaken in 2015 to 201719 examined atmospheric counter-current acid leaching, achieving >90% nickel and
cobalt recoveries to produce nickel cathode and a cobalt-carbonate.
Table 2: Homeville Nickel-Cobalt Mineral Resources
Category
Cut-off grade (Ni%)
Tonnes (Mt)
E
R
M
8
1
0
2
)
2
1
0
2
C
R
O
J
(
Indicated
Inferred
Total
0.7
0.7
2.2
15.7
17.9
Ni %
0.98
0.88
0.89
Co %
0.04
0.06
0.06
Fe %
Al %
19
23
22
2.8
3.7
3.6
4.3 CZ Mineral Resource
A geological review of the validity of the CZ geological model was undertaken in June 2023 which underpinned the 2019 MRE for the
CZ Copper Project.20 There were significant concerns with the model given that over 50% of the historical drill holes had not been
geologically logged. The ensuing interpretation and targeting work raised material uncertainty relating to the validity of the model and
various technical assumptions at the project. Based on these recently completed geological reviews, the Company has elected not to
quote a MRE for the CZ project pending further work.
4.4 Restdown Mineral Resource
In June 2023, Helix announced a review of the geological model underpinning the Restdown Gold MRE indicated material uncertainty
of various technical assumptions15. Based on this work the Company elected to cease quoting a MRE for the Restdown Gold Project
pending further work.
5. BUSINESS DEVELOPMENT
Helix is actively assessing and generating opportunities to support its copper business strategy to add to its copper inventory by
regional consolidation and acquisitions in addition to its planned growth through exploration success. It is seeking farm-in JV
opportunities as well as new JV partners for certain tenements.
5.1 Copper
The Company is always interested to assess opportunities to acquire or joint venture into copper projects within its ‘Greater-Cobar’
operating sphere. During the 30 June 2023 quarter several new projects were presented and are under review. No commercial terms
or arrangements have been agreed and there is no certainty that any of the opportunities will meet Helix’s criteria or that any
transactions will be completed.
5.2 Nickel-Cobalt Assets
Ionick Metals Ltd - a wholly owned subsidiary company, was established during the year.21 Ionick executed an Option Agreement with
Jodama Pty Ltd (Jodama) over three Exploration Licences prospective for laterite hosted nickel-cobalt-platinum group metals (PGM)
mineralisation located in the ‘Greater Cobar’ region of NSW.
The Option Agreement is the initial phase of a broader strategy of unlocking hidden value for a suite of nickel-cobalt-PGM prospects
centred around Ionick’s Homeville Nickel-Cobalt Deposit. The Homeville Deposit features a 18Mt at 0.9% Ni & 0.06% Co Mineral
Resource Estimate which is predominantly classified as Inferred.
18 Refer ASX Report 28 September 2018 lodged by Alpha HPA Ltd.
19 Refer ASX Report 5 October 2017 and 29 November 2017 from Alpha HPA, formerly Collerina Cobalt Ltd and report from 14 July 2015 from Alpha HPA (formerly Auger
Resources Ltd).
20 Refer to ASX announcement dated 14 June 2023
21 Refer to ASX announcement dated 28 February 2023
15
HELIX RESOURCES LIMITED
Review of Operations
30 June 2023
Homeville is one of the higher-grade laterite nickel-cobalt deposits in Australia on a nickel-equivalent basis as presented in Table 3.
Table 3: Comparison with Australian emerging Ni-Co projects (At Ni price of US$20k/t and Co price of US$39k/t with no metallurgical
recovery factors applied)
Adding potential ‘critical-mass’ to the Homeville Deposit, Helix possesses numerous advanced, and early-stage high-grade laterite Ni-
Co prospects located at close proximity to the Homeville deposit.
This includes the three Jodama tenements, which add the highly prospective ‘G-series’ magnetic targets at the Honeybugle intrusive
area and the Hillview project, with anomalous nickel, cobalt and PGM drill intercepts, to the south (refer to Figure 9 - Regional
Location Plan – Nickel-Cobalt Projects).
To maintain its focus predominantly on copper, Helix is compiling a business plan incorporating a development strategy for Ionick. It is
anticipated to utilise this plan to solicit independent funding for Ionick, with the intention to include an initial public offer (IPO) or a
strategic investor.
16
HELIX RESOURCES LIMITED
Review of Operations
30 June 2023
5.3 Chile Divestment
Figure 9: Regional Location Plan – Nickel-Cobalt Projects
During the year the projects in Chile were relinquished. The Company has retained a conditional 1% net smelter return (NSR) royalty
over the original project areas if they are acquired by specific parties previously associated with the Company’s operations in Chile.
5.4 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% Free-on-Board (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 latter 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 to the Olary Flats project can be found on the Lodestone Mines Ltd website
https://www.lodestonemines.com/.
17
HELIX RESOURCES LIMITED
Directors’ Report
30 June 2023
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 2023.
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)
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
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.
Aurora Energy Metals Ltd – appointed 14 Dec 2021 and Gateway Mining Ltd - appointed 18
July 2022
Kingrose Mining Limited (resigned 19 November 2020) and White Rock Minerals Limited
(resigned 13 June 2022)
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. Recently he led the successful settlement
of an international dispute resulting in a US$32 million settlement and a significant dividend
payout to Tantalum International shareholders.
Tantalum International Ltd (since May 2014)
Hexagon Energy Materials Ltd (resigned December 2020) and Indiana Resources Limited
(ASX: IDA) (resigned October 2022).
4,958,333
Nil
18
HELIX RESOURCES LIMITED
Directors' report
30 June 2023
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
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
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 and director of
several ASX listed and public unlisted companies and has gained experience across resources, agritech, biotech, media and
technology industries. He has extensive experience in listing rules compliance and corporate governance, having served as a Senior
Adviser at the ASX in Perth for nearly 3 years, where he managed the listing of nearly 100 companies on the ASX. In addition, Mr
Donovan has experience in the capital markets having raised capital and assisted numerous companies on achieving an initial listing
on the ASX, as well as for a period of time, as a private client adviser at a boutique stock broking group.
Meetings of Directors
The number of meetings of the company's Board of Directors ('the Board') held during the year ended 30 June 2023, and the number
of meetings attended by each director were:
P Lester
M Rosenstreich
K Prendergast
Full Board1
Attended
Held 2
9
9
9
9
9
9
1 The Nomination and Remuneration Committee and Audit and Risk Committee have been dissolved and all related matters
subsequently handled by the full Board.
2 Held represents the number of meetings held during the time the Director held office.
Principal activities
The principal activity of the Group constituted by Helix Resources Limited and the entities it controlled during the year consist of
exploration activities directed toward the discovery of copper, gold and nickel-cobalt deposits in the Cobar region of central
NSW. During the year, the Company divested its assets in Chile, enabling it to focus on its core business activities. 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 2023 was $7,912,172 (30 June 2022: $2,155,999) and reported
net cash outflows from operating activities of $1,072,276 (30 June 2022: $1,482,225). As at 30 June 2023, the Group had a net asset
position of $19,826,976 (30 June 2022: $27,558,582).
19
HELIX RESOURCES LIMITED
Directors' report
30 June 2023
Dividends
No dividend has been paid since the end of the previous financial year and no dividend is recommended for the current year.
Review of operations
The Group's activities are contained in regular releases to the ASX, summarised in a separate section of this Annual Report and available
on the Company’s website at www.helixresources.com.au.
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 expertise and corporate skills, Helix creates and looks to extract intrinsic value for
the benefit of its shareholders.
Mineral Asset Project Highlights
Refer to the Operations Report on page 4.
Corporate
Major corporate events during the year included:
●
●
●
●
●
●
On 31 October 2022, the Company sold it’s 100% subsidiary Helix Resources Chile Limitada in return for a conditional 1% Net
Smelter Return (NSR) royalty over the original project areas if they are acquired by specific parties previously associated with the
Company’s operations in Chile.
On 18 November 2022, the Company's 100% subsidiary Ionick Metals Pty Ltd was converted to a public company – Ionick Metals
Limited. Ionick is planned to be utilised as a holding company for the Company’s nickel-cobalt exploration assets.
On 19 December 2022, 13,200,000 Performance Rights were issued to employees of the Company under the Company’s Employee
Incentive Scheme with an expiry date of 19 December 2027.
On 24 November 2022, 2,400,000 unlisted options were issued to the Company’s Non-Executive Director under the Company’s
Employee Incentive Scheme. The options were issued in three tranches (1/3 at $0.036, 1/3 at $0.063 and 1/3 at $0.081) and expire
on 20 December 2025 as approved by shareholders on 24 November 2022. All the options vested on the grant date. The Black
Sholes option pricing model was used to value the options.
On 28 February 2023, the Company announced its 100% owned subsidiary Ionick Metals Ltd has executed an Option Agreement
with Jodama Pty Ltd to acquire three exploration licences in the 'Greater Cobar' region of NSW (EL8248, EL8747 and EL9435 -
together the 'Jodama tenements'). The Option Agreement forms part of the broader strategy of a proposed initial public offering
('IPO') of Ionick Metals shares on the ASX, subject to market conditions and regulatory approval.
On 9 April 2023, 6,541,667 Performance Rights issued to the Managing Director expired.
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.
Risk overview
The Group’s activities have inherent risk and the Board is unable to provide certainty of the expected results of these activities. The
material business risks that the Group faces that could influence the Group’s future prospects and how these are managed, are
outlined below.
Availability of technical skills and key service providers
Execution of the planned work program is dependent on the Group employing sufficient geologists and field technicians as well as
securing appropriate contractors to undertake drilling, geophysical surveys, assaying and other related support activities to enable
exploration activities to progress. In mid-2021 the Group established an exploration base in Orange, New South Wales and all of its
key exploration personal are based there and retained on a fulltime salary basis with appropriate equity incentives.
20
HELIX RESOURCES LIMITED
Directors' report
30 June 2023
Additional requirements for capital
The capital requirements of the Group depend on a number of factors. The capital requirements of the Group mainly include the
outflows for exploration activities and administrative overheads. As the Group is not currently generating any revenue from its
activities, it will require additional financing in the future. Any additional equity financing will dilute shareholdings, and debt
financing, if available, may involve restrictions on financing and operating activities. If the Group is unable to obtain additional
financing as needed, it may be required to reduce the scope of its operations.
Exploration and development success
The Group's tenements are at various stages of exploration and development, and potential investors should understand that mineral
exploration and development are high-risk undertakings. There can be no assurance that exploration and development of the
tenements, or any other licenses that may be acquired in the future, will result in the discovery of an economic ore deposit. Even if an
apparently viable deposit is identified, there is no guarantee that it can be economically exploited.
Environmental risk
The operations and proposed activities of the Group are subject to laws and regulations concerning the environment. As with most
exploration projects, the Group's activities may have an impact on the environment, particularly if advanced exploration proceeds. It
is the Group's intention to conduct its activities to the highest standard of environmental obligation, including compliance with all
environmental laws.
Native title and heritage matters
The Group's tenements may include areas over which legitimate common law native title or indigenous rights of persons in Australia
exist. If native title or indigenous rights do exist, the ability of the Group to gain access may be adversely affected. The Group will
closely monitor the potential effect of native title or indigenous claims involving its tenements.
Tenure and access
Mining and exploration tenements are subject to periodic renewal. There is no guarantee that current or future tenements or future
applications for production tenements will be approved.
The Group's tenements are subject to the applicable mining acts and regulations in Australia. The renewal of the term of a granted
tenement is also at the discretion of the relevant government authority.
Renewal conditions may include increased expenditure and work commitments or compulsory relinquishment of areas of the mineral
tenements and mining properties comprising the Group's projects. The imposition of new conditions or the inability to meet those
conditions may adversely affect the operations, financial position and/or performance of the Group.
A number of the mineral tenements and mining properties comprising the Group's projects overlap land which is owned by private
landowners. In order for the Group to access that land and undertake its proposed activities on that land, including any exploration
and/or development of a mine the Group will need to negotiate access and compensation arrangements with the underlying private
landholders.
Subsequent Events
●
On 13 September 2023, the Company announced a two-stage transition plan for board and management changes. The phased
transition will ensure strategic continuity focusing on the Company’s key stakeholder relationships, its regional and advanced
copper prospects, while also enhancing the early-stage exploration credentials of the Board.
Phase one of the plan will be effective from 1 November 2023 as follows:
• Mr Peter Lester (Non-Executive Chairman) will retire from the Board;
• Mr Mike Rosenstreich (Managing Director) will transition to Executive Chairman; and
• Ms Kylie Prendergast (Non-Executive Director) plans to transition to Executive Technical Director.
Phase two of the transition plan is expected to be effective from May 2024 as follows:
• Mr Mike Rosenstreich to transition from Executive Chairman to Non-Executive Chairman; and
• Ms Kylie Prendergast plans to transition from Executive Technical Director to Managing Director.
●
On 3 August 2023, 6,000,000 Performance Rights to employees expired due to the conditions not being, or became incapable of
being, satisfied.
No matter or circumstance, other than those mentioned above, have arisen since 30 June 2023 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.
21
HELIX RESOURCES LIMITED
Directors' report
30 June 2023
Corporate Governance
In recognising the need for high standards of corporate behaviour and accountability, the Directors of the Company support the ASX
Corporate Governance Council’s Corporate Governance Principles and Recommendations. The Company’s policies are consistent with
the ASX Principles, and comparable to ASX listed entities of similar size and nature. The Company’s detailed corporate governance
policy statement can be found on the Company's web site at www.helixresources.com.au.
Share Options
As at the date of this report, there were 73,500,000 options on issue at various exercise prices and expiry periods. Refer to the
remuneration report for further details of the options held by Key Management Personnel (KMP).
Option holders do not have any right, by virtue of the option, to participate in any share issue of the Company or any related body
corporate.
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 2023. 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
Non-Executive Directors
Mr P Lester
Dr K Prendergast
Remuneration Governance
On 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.
22
HELIX RESOURCES LIMITED
Directors' report
30 June 2023
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 10.5% effective 1 July 2022 for the financial year. 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. 13,200,000 Performance Rights were issued to employees during the year and 2,400,000 options
were issued to a Non-Executive Director as set out below (2022: 1,000,000 Performance Rights issued to the Managing Director and
7,200,000 options issued to Directors).
23
HELIX RESOURCES LIMITED
Directors' report
30 June 2023
Vesting conditions of performance options under the Company's Employee Incentive Scheme are set out below:
●
●
●
●
●
A third vesting on the achievement of 20-day volume weighted average price (VWAP) of $0.021;
A third vesting on the achievement of 20-day VWAP of $0.036;
A third vesting on the achievement of 20-day VWAP of $0.046;
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; and
Two-year expiry period.
Number of
Options/
Rights issued
during the year
Grant Date
Fair value
Exercise price
Expiry date
800,000 24/11/2022
800,000 24/11/2022
800,000 24/11/2022
0.00303
0.00324
0.00371
0.0810 20/12/2025
0.0630 20/12/2025
0.0360 20/12/2025
Number of
Options /
Rights held at
end of the year
800,000
800,000
800,000
2023
K Prendergast
K Prendergast
K Prendergast
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.
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
Salary &
Fees
$
Annual and
Long Service
Leave
Provision
$
2023
Post
Employment
Equity
Bonus
payable
$
Superannuat
ion
$
Options1
$
Performance
Rights2
$
Total
$
Performance
Related
%
P Lester
K Prendergast
M Rosenstreich3
58,824
45,249
237,739
-
-
6,109
-
-
17,500
6,176
4,751
24,698
-
7,980
-
-
-
(55,702)
65,000
57,980
230,344
-
-
-
341,812
6,109
17,500
35,625
7,980
(55,702)
353,324
1The 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.
2The value disclosed in the above table represents the Performance Rights which expired during the year due to the vesting conditions
24
HELIX RESOURCES LIMITED
Directors' report
30 June 2023
not being, or became incapable of being, satisfied. The value is an adjustment of the amounts previously reported in the financial
statements for the year ended 30 June 2022 and 30 June 2021 ($31,616 and $22,937 respectively).
3 As announced by the Company in June 2023, Mr Rosenstreich will receive a short-term cash bonus of $17,500 on 1 July 2023 relating
to services performed from January 2023 to 30 June 2023.
Primary
benefits
Salary &
Fees
$
Annual and
Long Service
Leave
Provision
$
Non-
Monetary
Benefits
$
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
Superannuat
ion
$
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.
No other short-term cash bonuses were paid or accrued for during the year ended 30 June 2023 (30 June 2022: 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
2019
2020
2021
2022
2023
70,766
331,450
201,339
(1,169,550) (2,155,999) (7,912,172)
$0.025
(0.13)
Nil
$0.005
(0.34)
Nil
$0.007
(0.15)
Nil
63,995
(720,037)
$0.014
(0.17)
Nil
144,636
(480,596)
$0.014
(0.10)
Nil
25
HELIX RESOURCES LIMITED
Directors' report
30 June 2023
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
K Prendergast
Base Salary
/ Fee (1)
Term of
Agreement
65,000
285,0002
50,000
Not
specified
Not
specified
Not
specified
Notice
Period by
Company
Not
specified
3 months
Notice
Period from
Executive
Not
specified
3 months
Not
specified
Not
specified
1Inclusive of Superannuation guarantee contributions.
2$250,000 per annum full time until 31 December 2022 ($200,000 on 80% part time basis), $285,000 per annum full time effective 1
January 2023.
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 2022
Securities
Granted during
year as
remuneration
Securities
Exercised
during year
Securities
Expired
during year
Balance as
at 30 June
2023
Securities
vested &
exercisable at
end of year
Options:
P Lester
K Prendergast
Performance Rights:
M Rosenstreich
2,400,000
-
-
2,400,000
6,541,667
-
-
-
-
-
-
2,400,000
2,400,000
2,400,000
2,400,000
(6,541,667)1
-
-
16,541,667 Performance Rights expired on 9 April 2023.
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
P Lester
M Rosenstreich
K Prendergast
Balance as at 1
July 2022
Purchased
Disposed
Other
Movements
Balance as at
30 June 2023
3,355,342
4,958,333
-
-
-
-
-
-
-
-
-
-
3,355,342
4,958,333
-
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:
26
HELIX RESOURCES LIMITED
Directors' report
30 June 2023
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 (2022: nil).
Use of Remuneration Consultants
During the year ended 30 June 2023, whilst the Board did not engage the formal services of external remuneration consultants, it did
hold informal discussions with such consultants. In addition, the Board utilised publicly available remuneration benchmarking surveys
prepared by an international recruitment agency.
Voting and comments made at the Company’s last Annual General Meeting
A total of 87.16% of votes determined via a poll at the Company’s 2022 Annual General Meeting on the resolution dealing with the
Remuneration Report for the financial year ended 30 June 2022 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. The Directors are not aware of any breaches during the period covered by this
report.
Non-audit services
The auditors did not provide any non-audit services during the financial year.
Auditor's independence declaration
The auditor’s independence declaration is included on page 29 of the financial report.
27
HELIX RESOURCES LIMITED
Directors' report
30 June 2023
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
___________________________
Michael Rosenstreich
22 September 2023
28
HELIX RESOURCES LIMITED
Auditor's independence declaration
29
HELIX RESOURCES LIMITED
Directors' declaration
30 June 2023
The consolidated financial statements and notes, as set out on pages 31 to 60 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 2023 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
22 September 2023
30
HELIX RESOURCES LIMITED
Statement of profit or loss and other comprehensive income
30 June 2023
Revenue
Other income
Expenses
Employment costs
Directors fees
Share based payments
Depreciation and amortisation expense
Impairment of exploration and evaluation expenditure
Audit fees
Compliance costs
Professional fees
Corporate marketing costs
Share registry fees
Office costs
Travel expenses
Insurance
Other expenses
Foreign exchange loss
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
Total comprehensive loss for the year is attributable to:
Continuing operations
Discontinued operations
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
Basic loss per share
Diluted loss per share
31
Note
Consolidated
2023
$
2022
$
2
331,450
70,766
15
10
3
4
(99,363)
(298,894)
(180,566)
(13,593)
(6,724,812)
(49,048)
(53,331)
(285,467)
(240,143)
(14,762)
(42,410)
(70,401)
(79,076)
(61,041)
(937)
(110,445)
(340,905)
(334,870)
(117,283)
(406,275)
(47,484)
(60,760)
(202,238)
(163,467)
(19,820)
(46,090)
(7,913)
(71,128)
(121,171)
(496)
(7,882,394)
(1,979,579)
-
-
(7,882,394)
(1,979,579)
(29,778)
(176,420)
(7,912,172)
(2,155,999)
-
-
(7,912,172)
(2,155,999)
(7,882,394)
(29,778)
(1,979,579)
(176,420)
(7,912,172)
(2,155,999)
Cents
Cents
5
5
5
5
5
5
(0.34)
(0.34)
-
-
(0.34)
(0.34)
(0.14)
(0.14)
(0.01)
(0.01)
(0.15)
(0.15)
HELIX RESOURCES LIMITED
Statement of financial position
As at 30 June 2023
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
2023
$
2022
$
6
7
8
9
10
11
12
13
13
5,872,543
467,748
6,340,291
-
6,340,291
11,963,874
415,420
12,379,294
8,479
12,387,773
66,003
431,829
13,483,585
439,875
14,421,292
74,622
534,495
15,030,581
463,692
16,103,390
20,761,583
28,491,163
416,028
121,294
60,347
597,669
-
597,669
347,586
104,097
31,728
483,411
4,269
487,680
336,938
336,938
444,901
444,901
934,607
932,581
19,826,976
27,558,582
14
15
16
87,916,060
855,040
(68,944,124)
87,916,060
730,176
(61,087,654)
19,826,976
27,558,582
The above statement of financial position should be read in conjunction with the accompanying notes
32
HELIX RESOURCES LIMITED
Statement of changes in equity
For the year ended 30 June 2023
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
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
Consolidated
Balance at 1 July 2022
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:
Options issued
Options expired
Issued
capital
$
Reserves
$
Accumulated
Losses
$
Total equity
$
87,916,060
730,176
(61,087,654)
27,558,582
-
-
-
-
-
-
-
-
(7,912,172)
-
(7,912,172)
-
(7,912,172)
(7,912,172)
180,566
(55,702)
-
55,702
180,566
-
Balance at 30 June 2023
87,916,060
855,040
(68,944,124)
19,826,976
The above statement of changes in equity should be read in conjunction with the accompanying notes
33
HELIX RESOURCES LIMITED
Statement of cash flows
For the year ended 30 June 2023
Cash flows from operating activities
Payments to suppliers and employees
Interest received
Interest paid on right-of-use asset
Other income (insurance recovery)
Net operating cash flows from discontinuing operations
Net cash used in operating activities
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
Proceeds from release of security deposits
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 (used in)/from financing activities
Net (decrease)/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
Note
Consolidated
2023
$
2022
$
6
8
14
(1,250,961)
167,085
(1,327)
38,495
(25,568)
(1,210,164)
4,360
(18,563)
-
(257,858)
(1,072,276)
(1,482,225)
(5,528)
(103,947)
(6,492,068)
1,465,719
-
127,764
(68,003)
(158,190)
(3,957,028)
589,325
5,738
-
(5,008,060)
(3,588,158)
-
-
-
(10,058)
12,536,000
150
(805,215)
(86,086)
(10,058)
11,644,849
(6,090,394)
11,963,874
(937)
6,574,466
5,389,903
(495)
Cash and cash equivalents at the end of the financial year
6
5,872,543
11,963,874
The above statement of cash flows should be read in conjunction with the accompanying notes
34
HELIX RESOURCES LIMITED
Notes to the financial statements
30 June 2023
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 2023. 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.
35
HELIX RESOURCES LIMITED
Notes to the financial statements
30 June 2023
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).
36
HELIX RESOURCES LIMITED
Notes to the financial statements
30 June 2023
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.
Impairment of financial assets
AASB 9’s impairment requirements use more forward-looking information to recognise 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.
37
HELIX RESOURCES LIMITED
Notes to the financial statements
30 June 2023
Note 1. Summary of accounting policies (continued)
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).
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.
38
HELIX RESOURCES LIMITED
Notes to the financial statements
30 June 2023
Note 1. Summary of accounting policies (continued)
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.
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market conditions are
considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are satisfied.
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).
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 23.
39
HELIX RESOURCES LIMITED
Notes to the financial statements
30 June 2023
Note 1. Summary of accounting policies (continued)
k) Revenue
Income from the disposal of assets is recognised when the Group has passed control of the goods or other assets to the buyer.
Interest on bank deposits is recognised as income as it accrues.
Interest revenue is recognised using the effective interest rate method, which, for floating rate financial assets, is the rate inherent in
the instrument.
Other income is recognised when it is received or when the right to receive payment is established.
l) Goods and Services Tax
Revenues, expenses and assets are recognised net of the amount of goods and services tax GST, except:
• where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition
of an asset or as part of an item of expense; or
• for receivables and payables which are recognised inclusive of GST.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables.
Cash flows are included in the statement of cash flows on a gross basis. The GST component of cash flows arising from investing and
financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
m) Fair Value Estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure
purposes. The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and trading and
available-for-sale securities) is based on quoted market prices at the reporting date. The quoted market price used for financial assets
held by the Group is the current bid price; the appropriate quoted market price for financial liabilities is the current ask price.
The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is
determined using valuation techniques. The Group uses a variety of methods and makes assumptions that are based on market
conditions existing at each reporting date. Quoted market prices or dealer quotes for similar instruments are used for long-term debt
instruments held. Other techniques, such as estimated discounted cash flows, are used to determine fair value for the remaining
financial instruments.
The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate their fair values.
The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the
current market interest rate that is available to the Group for similar financial instruments.
n) 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 20.
40
HELIX RESOURCES LIMITED
Notes to the financial statements
30 June 2023
Note 1. Summary of accounting policies (continued)
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.
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. Once
expenditure is capitalised, exploration and evaluation assets are tested for impairment on a bi-annual basis when facts and
circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. When
facts and circumstances suggest that the carrying amount exceeds the recoverable amount, an entity shall measure, present and
disclose any resulting impairment loss.
One or more of the following facts and circumstances indicate that an entity should test exploration and evaluation assets for
impairment (the list is not exhaustive):
•
•
•
•
the period for which the entity has the right to explore in the specific area has expired during the period or will expire in the
near future and is not expected to be renewed;
substantive expenditure on further exploration for and evaluation of mineral resources in the specific area is neither
budgeted nor planned;
exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially viable
quantities of mineral resources and the entity has decided to discontinue such activities in the specific area; and
sufficient data exist to indicate that, although a development in the specific area is likely to proceed, the carrying amount of
the exploration and evaluation asset is unlikely to be recovered in full, from successful development or by sale.
In any such case, or similar cases, the entity shall perform an impairment test in accordance with AASB 136. Any impairment loss is
recognised as an expense in accordance with AASB 136.
Refer to note 10 for further details on exploration and evaluation expenditure.
41
HELIX RESOURCES LIMITED
Notes to the financial statements
30 June 2023
Note 1. Summary of accounting policies (continued)
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 15
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 9 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 9 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 2023 of
$7,912,172, it had a net asset position of $19,826,976 and a cash balance of $5,872,543 as at 30 June 2023 . The Company has the
ability to reduce forecast expenditure if required and it is anticipated that additional capital can be raised in the future if required.
Note 2. Other income
Net gain on disposal of property, plant and equipment
Rental income
Interest income
Insurance recovery
Other income1
Other income
Consolidated
2023
$
2022
$
-
2,260
167,085
38,495
123,610
10,409
21,953
4,360
20,105
13,939
331,450
70,766
1 FY2023 income includes Canbelego joint venture management fee income. FY2022 income includes Canbelego joint venture
management fee income and reimbursement of legal fees relating to the restructure of the Olary Royalty.
42
HELIX RESOURCES LIMITED
Notes to the financial statements
30 June 2023
Note 3. Other expenses
Interest expense and bank fees
Interest costs - leases
Subscriptions and memberships
AGM costs
Other
Loss on asset disposal
Recruitment costs
Note 4. Income tax
The components of tax expense comprise:
Current income tax
Deferred tax
Consolidated
2023
$
2022
$
11,601
-
25,952
20,257
3,123
108
-
10,818
17,019
20,153
9,546
16,164
2,491
44,980
61,041
121,171
Consolidated
2023
$
(Note 2)
2022
$
-
-
-
-
-
-
43
HELIX RESOURCES LIMITED
Notes to the financial statements
30 June 2023
Note 4. 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 2023 and 30 June 2022 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%
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
- taxable / non-deductible items
- income tax benefit not brought to account
Income tax benefit
Recognised deferred tax at 25% (2022: 25%) (Note 1):
Deferred tax liabilities
Trade and other receivables
Plant and equipment
Exploration and evaluation assets
Right of use assets
Deferred tax assets
Carry forward revenue losses
Unrecognised deferred tax assets at 25% (2022:25%) (Note 1):
Carry forward revenue losses
Carry forward capital losses
Business related costs
Lease liabilities
Trade and other payables
Provisions
Other
Consolidated
2023
$
(Note 2)
2022
$
(7,882,394)
(29,778)
(1,979,579)
(176,420)
(7,912,172)
(2,155,999)
(1,978,043)
(539,000)
51,872
1,926,261
128,270
410,730
-
-
(32,993)
(14,015)
(2,729,882)
(107,957)
(18,913)
(15,342)
(3,757,645)
-
2,884,847
-
3,791,900
-
13,630,029
228,307
232,395
114,558
-
25,929
4,525
14,235,743
14,950,488
2,482,553
334,761
3,626
7,250
7,932
-
17,786,610
The tax benefits of the above Deferred Tax Assets will only be obtained if:
•
•
•
the company derives future assessable income of a nature and of an amount sufficient to enable the benefits to be utilised;
the company continues to comply with the conditions for deductibility imposed by law; and
no changes in income tax legislation adversely affect the company in utilising the benefits.
Note 1 - Deferred tax assets and liabilities are required to be measured at the corporate tax rate which is expected to apply in the
future income year when the asset is realised or the liability is settled. The Directors have determined that the deferred tax balances
be measured at the tax rates stated.
Note 2 – The 2022 comparatives have been restated to be consistent with the current year note format. The tax position has not
changed.
44
HELIX RESOURCES LIMITED
Notes to the financial statements
30 June 2023
Note 5. 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
Loss after income tax
Basic loss per share
Diluted loss per share
Consolidated
2023
$
2022
$
(7,882,394)
(1,979,579)
Cents
Cents
(0.34)
(0.34)
(0.14)
(0.14)
$
$
(29,778)
(176,420)
Cents
Cents
-
-
(0.01)
(0.01)
(7,912,172)
(2,155,999)
Cents
Cents
(0.34)
(0.34)
(0.15)
(0.15)
Number
Number
Weighted average number of ordinary shares
Weighted average number of ordinary shares used in calculating basic loss per share
2,323,145,843 1,452,315,172
Weighted average number of ordinary shares used in calculating diluted loss per share
2,323,145,843 1,452,315,172
At 30 June 2023, there were no listed options and 79,500,000 unlisted options on issue (30 June 2022: no listed options, 70,441,667
unlisted options) which represents 79,500,000 potential ordinary shares (30 June 2022: 70,441,667) which were considered non-
dilutive as they would decrease the loss per share.
45
HELIX RESOURCES LIMITED
Notes to the financial statements
30 June 2023
Note 6. 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 includes cash on hand,
deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or
less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. 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
Term deposit
Consolidated
2023
$
2022
$
1,872,543
4,000,000
11,963,874
-
5,872,543
11,963,874
Cash at bank and term deposit bears floating interest rates between 0.00% and 4.58% (2022: between 0.00% and 0.29%).
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
Tenement costs expensed
Decrease/(increase) in trade and other payables
Decrease/(increase) in provisions
Decrease/(increase) in trade and other receivables
Consolidated
2023
$
2022
$
(7,912,172)
(2,155,999)
11,710
937
180,566
(123,610)
-
-
108
6,724,811
937
3,561
28,619
12,257
117,283
496
334,870
(1,939)
(10,409)
30,969
2,491
406,275
-
(220,704)
-
14,442
Net cash used in operating activities
(1,072,276)
(1,482,225)
c) Funding from Exploration Partners
Included in the statement of cash flows is $1,465,719 (30 June 2022: $589,325), being proceeds from the Canbelego Joint Venture.
46
HELIX RESOURCES LIMITED
Notes to the financial statements
30 June 2023
Note 7. Trade and other receivables
Trade debtors
Prepayments
Other receivables
Consolidated
2023
$
2022
$
234,235
131,971
101,542
222,057
74,319
119,044
467,748
415,420
No current or past due receivables were impaired at the end of the financial year.
Trade debtors includes $213K joint venture contributions and a joint venture management fee receivable as at 30 June 2023 (2022:
$191K).
Note 8. Plant and equipment
Plant and equipment - at cost
Less: Accumulated depreciation
Motor vehicles - at cost
Less: Accumulated depreciation
Consolidated
2023
$
2022
$
110,580
(54,320)
56,260
13,532
(3,789)
9,743
111,783
(49,553)
62,230
100,232
(87,840)
12,392
66,003
74,622
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 2021
Additions
Disposals
Depreciation write off on disposal
Depreciation expense
Balance at 30 June 2022
Additions
Disposals
Depreciation write off on disposal
Depreciation expense
Balance at 30 June 2023
Plant &
Equipment
$
Motor Vehicles
$
Total
$
6,498
68,003
(85,846)
84,562
(10,987)
62,230
9,782
(10,986)
10,877
(15,644)
22,663
-
(60,822)
54,286
(3,735)
12,392
17,729
(104,429)
88,994
(4,942)
29,161
68,003
(146,668)
138,848
(14,722)
74,622
27,511
(115,415)
99,871
(20,586)
56,259
9,744
66,003
47
HELIX RESOURCES LIMITED
Notes to the financial statements
30 June 2023
Note 9. Right-of-use assets
Right of use asset
Less: Accumulated depreciation
Consolidated
2023
$
2022
$
619,465
(187,636)
617,763
(83,268)
431,829
534,495
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 2021
Additions
Depreciation expense
Balance at 30 June 2022
Additions1
Depreciation expense
Write off of assets2
Balance at 30 June 2023
$
19,294
617,762
(102,561)
534,495
67,075
(124,797)
(44,944)
431,829
1On 1 September 2022, the Company entered into a 2 year vehicle lease agreement in relation to its exploration operations in
Orange, NSW. The valuation of the vehicle lease is based on the present value of the lease payments, using an incremental borrowing
rate of 6.29%. Additionally, on 8 March 2023, the Company entered into a 3 year vehicle lease agreement for an additional vehicle to
support its exploration activities. The valuation of this vehicle lease is based on the present value of the lease payments, using an
incremental borrowing rate of 7.29%.
2On 1 March 2023, the Company terminated the sub-leasing agreement for the office premises in Subiaco, WA, whereby the
Company sub-leased office space from Carnaby Resources Limited. The termination agreement constituted a $5,000 payout figure
payable by the Company to terminate the lease. The carrying amount of the leased asset was $44,944 and has subsequently been
written off.
Note 10. 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 acquisitions
Additions through option agreement2
Total
48
Consolidated
2023
$
2022
$
15,030,581
6,511,287
(1,363,471)
(6,724,812)
-
30,000
11,916,031
3,668,483
(487,658)
(406,275)
340,000
-
13,483,585
15,030,581
HELIX RESOURCES LIMITED
Notes to the financial statements
30 June 2023
Note 10. Exploration and Evaluation Assets (continued)
1A total of $6.72M impairment loss has been recognised in the current year in relation to the CZ Copper and Restdown Project areas
of interest.
As per the announcement on 14 June 2023, the Company completed a major geological review of the CZ Copper Project during the
year and has elected to no longer quote the 2019 Mineral Resource Estimate (‘MRE’) for the CZ Project pending further technical
work. The review, based on a large amount of new geological data has led to a significantly revised geological model to that which
underpinned the MRE with a clear resultant major reduction in the volumes of mineralised material. The CZ Project is an advanced
copper project with significant high-grade copper intercepts both at depth and in newly delineated shallow oxide zones but the
updated geological model downgrades the 2019 MRE and limits potential in the near vicinity. However, the Company intends to
leverage from its improved understanding of the CZ geology to undertake further target generating and drill testing work in the
broader Exploration Licence which hosts the CZ project.
As a result of the geological review of the CZ Copper Projects performed during the year, management reviewed the exploration
expenditure capitalised on the Collerina area of interest and determined that exploration expenditure incurred related to the
delineation of the 2019 MRE and subsequent follow-up drilling should be impaired as the results of the review led to the conclusion it
was not deemed to have a future economic benefit. The remaining capitalised exploration expenditure for the Collerina area of
interest relates to more regional exploration work around the CZ Copper project and is deemed to have future economic benefit on
the basis the Company still intends to do further work to make additional discoveries on the Exploration Licences, around CZ.
As per the announcement on 14 June 2023, the Company reviewed the geological model underpinning the MRE for the Restdown
Gold Project during the year and has elected to no longer quote a MRE for the Restdown Gold Project. The review concluded that
there was insufficient confidence in the geological model underpinning the MRE. A major regional work program is being undertaken
in the broader Restdown area principally targeting copper mineralisation but also recognising opportunities for gold and other
mineral deposits. This work program includes regional scale multi-element geochemical auger sampling useful for detecting
anomalies prospective for copper, gold or other types of mineralisation. The Restdown Gold Project will be incorporated into this
work program.
As a result of the geological review of the Restdown Gold Project performed during the year, management reviewed the exploration
capitalised for the Restdown Gold area of interest and determined that exploration expenditure related predominantly to the MRE
should be impaired as the results of the review led to the conclusion it was not deemed to have a future economic benefit. The
remaining exploration expenditure relating to the Restdown Gold area of interest relates to the more recent regional work program
and is deemed to have future economic benefit on the basis the Company still intends to do further work on the Exploration Licence
to find new deposits and potentially on the Restdown gold mineralisation.
2On 28 February 2023 the Company announced its 100% owned subsidiary Ionick Metals Ltd ('Ionick') has executed an Option
Agreement with Jodama Pty Ltd ('Jodama') to acquire three exploration license's in the 'Greater Cobar' region of NSW (EL8248,
EL8747 and EL9435 - together the 'Jodama tenements'). The Option Agreement forms part of the broader strategy of a proposed
initial public offering ('IPO') of Ionick shares on the ASX in the second half of 2023, subject to market conditions and regulatory
approval.
The terms of the Option Agreement are predicated on an IPO funding solution for Ionick and include an initial Option Fee over a 12-
month period to February 2024, comprising of an upfront $30K cash payment and a further $60K of exploration expenditure on the
Jodama tenements. The Option Agreement also includes an Option Extension of a further 12 months to February 2025 comprising of
a $40K cash payment and further $120K of exploration expenditure on the Jodama tenements.
Should Ionick IPO on the ASX, then IPO Vendor Shares of $300K will be awarded to Jodama at $0.20 per share and 4.5 million
performance options issued with two tranche milestones. The first milestone being 1.5 million Ionick shares if a Mineral Resource
estimate of greater than 10Mt is defined and the second milestone being 3.0 million Ionick shares if a positive Financial Investment
Decision is achieved which includes resources from the Jodama tenements in the underlying feasibility study.
49
HELIX RESOURCES LIMITED
Notes to the financial statements
30 June 2023
Note 10. Exploration and Evaluation Assets (continued)
The Directors' assessment of carrying amount was after consideration of prevailing market conditions, previous expenditure and work
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
$6,724,812 (2022: $406,275) against the carrying value of its exploration and evaluation expenditure.
Note 11. Security deposits
Security deposits
Consolidated
2023
$
2022
$
439,875
463,692
Security deposits relates to deposits held to secure exploration tenement holdings, credit card facilities and NSW office lease.
Note 12. Trade and other payables
Trade payables
Other payables
All amounts are current and are expected to be settled within 12 months.
Note 13. 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
50
Consolidated
2023
$
2022
$
324,889
91,139
257,653
89,933
416,028
347,586
Consolidated
2023
$
2022
$
138,264
357,720
-
123,482
462,754
16,916
495,984
603,152
121,294
336,938
104,097
444,901
458,232
548,998
HELIX RESOURCES LIMITED
Notes to the financial statements
30 June 2023
Note 13. Lease liabilities (continued)
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
Write off
Lease additions1
Lease repayment
Total
-
10,896
17,019
102,561
10,896
119,580
548,998
(46,828)
67,075
(111,013)
20,517
-
617,762
(89,281)
458,232
548,998
1During the year the Company has entered into two new vehicle leases. Refer to note 9 for further details.
Note 14. Share capital
Consolidated
2023
Shares
2022
Shares
2023
$
2022
$
Ordinary shares - fully paid
2,323,145,843 2,323,145,843
87,916,060
87,916,060
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
Exercise of performance options
Issue of shares for Alpha HPA acquisition agreement
Issue of Tranche 1 Placement Shares @ $0.012
Share Purchase Plan @ $0.012
Issue of Tranche 2 Placement shares @ $0.012
Share Issue Costs
2023
No. Shares
2023
$
2022
No. Shares
2022
$
2,323,145,843
-
-
-
-
-
-
87,916,060 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)
Total
2,323,145,843
87,916,060 2,323,145,843
87,916,060
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.
51
HELIX RESOURCES LIMITED
Notes to the financial statements
30 June 2023
Note 15. Reserves
Unlisted Options
Balance at 1 July
Performance options issued to directors 1
Performance Rights issued to employees 2
Expiry of options3
Performance Rights issued to Managing Director
Performance Rights issued to Managing Director
Exercise of performance options
Options issued to Lead Manager
2023
No.
2023
$
2022
No.
2022
$
70,441,667
2,400,000
13,200,000
(6,541,667)
-
-
-
-
730,176
7,980
172,586
(55,702)
-
-
-
-
37,000,000
7,200,000
23,700,000
(12,000,000)
-
1,000,000
(1,458,333)
15,000,000
550,360
70,236
123,729
(137,705)
30,328
2,436
(17,500)
108,292
Balance at 30 June
79,500,000
855,040
70,441,667
730,176
1On 24 November 2022, 2,400,000 unlisted options were issued to the Company’s Non-Executive Director under the Company’s
Employee Incentive Scheme, issued in three tranches (1/3 exercisable at $0.036, 1/3 exercisable at $0.063 and 1/3 exercisable at
$0.081) and with an expiry of 20 December 2025. All the options vested on the grant date. The Black Scholes option pricing model
was used to value the options and inputs used are as stated in the table below. The Options were approved at the Company's AGM
on 24 November 2022.
2On 19 December 2022, 13,200,000 Performance Rights were issued to employees of the Company under the Company’s Employee
Incentive Scheme with milestones dependent upon Helix's 20-day VWAP per share.
3On 9 April 2023, 6,541,667 unlisted options to the Managing Director expired due to the conditions not being, or became incapable
of being, satisfied.
52
HELIX RESOURCES LIMITED
Notes to the financial statements
30 June 2023
Note 15. Reserves (continued)
The following table illustrates the options and rights on issue at the end of the financial year.
Option valuations
Number of
Options/Rig
hts
Grant Date
Expiry Date
Exercise
Price
Share Price
Volatility
Risk free
Rate
Options issued to
Lead Manager
Options issued to
Lead Manager
Performance Rights
issued to employees
Performance Rights
issued to employees
Options issued to
non-executive
directors
Options issued to
non-executive
directors
Options issued to
non-executive
directors
Options issued to
Lead Manager
Performance Rights
issued to
employees1
Performance Rights
issued to
employees1
Performance Rights
issued to
employees1
Options issued to
Non-Executive
Director2
Options issued to
Non-Executive
Director2
Options issued to
Non-Executive
Director2
8,000,000
24/02/2021
24/02/2024
$0.020
$0.013
122.69%
0.13%
10,000,000
26/05/2021
26/05/2024
$0.054
$0.043
140.38%
0.10%
6,000,000
03/08/2021
03/08/2026
$0.000
$0.014
120.00%
0.27%
17,700,000
02/11/2021
02/11/2023
$0.000
$0.017
150.00%
0.62%
2,400,000
23/11/2021
06/12/2024
$0.036
$0.015
150.00%
0.01%
2,400,000
23/11/2021
06/12/2024
$0.063
$0.015
150.00%
0.01%
2,400,000
23/11/2021
06/12/2024
$0.081
$0.015
150.00%
0.01%
15,000,000
19/05/2022
19/05/2025
$0.018
$0.010
144.19%
0.03%
4,400,000
19/12/2022
19/12/2027
$0.000
$0.021
182.00%
3.24%
4,400,000
19/12/2022
19/12/2027
$0.000
$0.036
182.00%
3.24%
4,400,000
19/12/2022
19/12/2027
$0.000
$0.046
182.00%
3.24%
800,000
24/11/2022
20/12/2025
$0.036
$0.007
151.00%
3.24%
800,000
24/11/2022
20/12/2025
$0.063
$0.007
151.00%
3.24%
800,000
24/11/2022
20/12/2025
$0.081
$0.007
151.00%
3.24%
1Performance Rights issued during the year and prior 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 2023 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 period ended 30 June 2023. The fair value of the performance
incentives has been recognised over the vesting period commencing from the grant date to the expiry date.
53
HELIX RESOURCES LIMITED
Notes to the financial statements
30 June 2023
Note 15. Reserves (continued)
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 per share;
A third vesting on the achievement of 20-day VWAP of $0.063 per share;
A third vesting on the achievement of 20-day VWAP of $0.081 per share;
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; and
Two-year expiry period.
●
2 Options issued to Non-Executive Directors during the period vested immediately.
The weighted average remaining contractual life for the incentive options outstanding as at 30 June 2023 was 1.79 years (2022: 2.32
years). The range of exercise prices for the incentive options outstanding as at the end of the year was $0.018 to $0.081 per option
(2022: $0.02 to $0.081). Weighted average exercise price as at 30 June 2023 is 3.63 cents per option (2022: 3.48 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 16. Accumulated losses
Accumulated losses at the beginning of the financial year
Loss after income tax expense for the year
Unlisted options expired (refer to note 15)
Accumulated losses at the end of the financial year
Note 17. Commitments
Consolidated
2023
$
2022
$
(61,087,654)
(7,912,172)
55,702
(59,069,360)
(2,155,999)
137,705
(68,944,124)
(61,087,654)
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
54
Consolidated
2023
$
2022
$
1,628,750
2,213,750
66,667
1,377,917
1,982,083
-
3,909,167
3,360,000
HELIX RESOURCES LIMITED
Notes to the financial statements
30 June 2023
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 issued
Options and Performance Rights expired
Total equity based remuneration
Total
Note 19. Related party and directors' disclosures
Consolidated
2023
$
2022
$
341,812
349,826
6,109
35,625
41,734
(5,243)
34,983
29,740
7,980
(55,702)
(47,721)
101,852
-
101,852
335,824
481,418
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. 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 formerly Chile. Decisions were formerly made mainly on geographical basis. However, with the disposal of the Company’s
assets in Chile, the Company’s focus going forward will be on the exploration of copper, nickel and cobalt commodities in Australia.
55
HELIX RESOURCES LIMITED
Notes to the financial statements
30 June 2023
Note 20. Operating segments (continued)
Australia
Chile*
Total
2023
2022
2023
2022
2023
2022
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
5,872,543
467,748
11,963,874
415,420
-
-
13,483,585
439,875
66,003
431,829
20,761,583
15,030,581
463,692
74,622
534,495
28,482,684
416,028
60,347
121,294
347,586
31,728
104,097
-
-
336,938
934,607
444,901
928,312
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,872,543
467,748
11,963,874
415,420
8,479
-
-
-
-
8,479
-
8,479
13,483,585
439,875
66,004
431,829
20,761,584
15,030,581
463,692
74,622
534,495
28,491,163
-
-
-
416,030
60,348
121,294
347,586
31,728
104,097
4,269
-
4,269
-
4,269
336,938
934,610
444,901
932,581
Revenue
Depreciation and amortisation
Loss from continuing operations
Loss from discontinuing operations
331,450
(13,593)
(7,882,394)
-
70,766
(117,283)
(1,979,579)
-
-
-
-
(29,778)
-
-
-
(176,420)
331,449
(13,593)
(7,882,397)
(297,789)
70,766
(117,283)
(1,979,579)
176,420
* The Group sold its interests in the Helix Chile Projects during the year.
Note 21. Contingent liabilities
There are no contingent liabilities as at 30 June 2023 (2022:nil).
Note 22. Events after the reporting period
●
On 13 September 2023, the Company announced a two-stage transition plan for board and management changes. The phased
transition will ensure strategic continuity focusing on the Company’s key stakeholder relationships, its regional and advanced
copper prospects, while also enhancing the early-stage exploration credentials of the Board.
Phase one of the plan will be effective from 1 November 2023 as follows:
• Mr Peter Lester (Non-Executive Chairman) will retire from the Board;
• Mr Mike Rosenstreich (Managing Director) will transition to Executive Chairman; and
• Ms Kylie Prendergast (Non-Executive Director) plans to transition to Executive Technical Director.
Phase two of the transition plan is expected to be effective from May 2024 as follows:
• Mr Mike Rosenstreich to transition from Executive Chairman to Non-Executive Chairman; and
• Ms Kylie Prendergast plans to transition from Executive Technical Director to Managing Director.
●
On 3 August 2023, 6,000,000 Performance Rights to employees expired due to the conditions not being, or became incapable of
being, satisfied.
No matter or circumstance, other than those mentioned above, have arisen since 30 June 2023 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.
56
HELIX RESOURCES LIMITED
Notes to the financial statements
30 June 2023
Note 23. 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
70% (2022: 70%)
Copper
Aeris Resources Limited
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
Note 24. Financial instruments
Canbelego Joint Operation 70%
2023
$
2022
$
2,901,184
3,293,777
1,676,682
1,224,502
6,194,961
2,901,184
6,194,961
2,901,184
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 2023, 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 $58,626 (2022: $118,561) and an increase (decrease) in
equity by $58,626 (2022: $118,561).
The Group's exposure to interest rate risk and effective weighted average interest rate for classes of financial assets is set out below:
57
HELIX RESOURCES LIMITED
Notes to the financial statements
30 June 2023
Note 24. Financial instruments (continued)
2023
Financial Assets
Cash and cash equivalents
Trade and other receivables
Security deposits
Financial liabilities
Trade payables
Lease liabilities
2022
Financial Assets
Cash and cash equivalents
Trade and other receivables
Security deposits
Financial Liabilities
Trade payables
Lease liabilities
Floating Interest Rate
Maturity
Average
Interest Rate
%
Fixed Interest
Rate
$
Less than 1
year
$
More than 1
year
$
Non-Interest
Bearing
$
Total
$
1.85%
-
0.76%
-
5.52%
-
-
-
-
5,862,622
-
439,875
6,302,497
-
458,232
458,232
-
-
-
-
-
-
-
-
-
-
9,920
467,748
-
477,668
5,872,542
467,748
439,875
6,780,165
416,030
-
416,030
416,030
458,232
874,262
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
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 mainly to currency fluctuation to the United States Dollar. Due to the very modest USD
expenditures the Group has not formalised a foreign currency risk management policy, however it monitors its foreign currency
expenditure subject to exchange rate movements.
The Group has no material exposure to foreign exchange risk.
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 a joint venture partner.
58
HELIX RESOURCES LIMITED
Notes to the financial statements
30 June 2023
Note 24. Financial instruments (continued)
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, short-dated
payment terms 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 25. Remuneration of Auditors
During the financial year the following fees were paid or payable for services provided by BDO
Audit (WA) Pty Ltd:
Auditing and reviewing the financial reports
Total
Consolidated
2023
$
2022
$
49,048
45,874
49,048
45,874
The auditor of Helix Resources Limited for the year ended 30 June 2023 is BDO Audit (WA) Pty Ltd (30 June 2022: BDO Audit (WA) Pty
Ltd). No non-audit advisory services were provided by the auditors in the current year.
Note 26. 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
2023
$
2022
$
5,966,414
22,119,941
12,091,101
16,777,664
28,086,355
28,868,765
218,608
-
202,163
41,597
218,608
243,760
87,916,060
855,040
(60,903,353)
87,576,060
730,176
(59,681,230)
27,867,747
28,625,006
(1,275,244)
(1,477,196)
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 2023 (30 June 2022: none).
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2023 (30 June 2022: none).
59
HELIX RESOURCES LIMITED
Notes to the financial statements
30 June 2023
Note 26. Parent Company Information (continued)
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2023.
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 27. Subsidiaries
Name
Country of Incorporation
Principal Activity
Percentage
Held 2023
Percentage
Held 2022
Oxley Exploration Pty Ltd
Leichhardt Resources (QLD) Pty
Ltd
Helix Resources (Overseas) Pty
Ltd
McClatchie Mining Pty Ltd
Ionick Metals Ltd (previously
Helix Copper (NSW) Pty Ltd)
Helix Resources Chile Limitadaⁱ
Australia
Australia
Australia
Australia
Australia
Chile
Mineral Exploration
Mineral Exploration
Mineral Exploration
Australia
Mineral Exploration
Mineral Exploration
100%
100%
100%
100%
100%
-
100%
100%
100%
100%
100%
100%
ⁱ On 31 October 2022, the Company sold it’s 100% subsidiary Helix Resources Chile Limitada in return for a conditional 1% Net Smelter Return (NSR)
royalty over the original project areas if they are acquired by specific parties previously associated with the Company’s operations in Chile.
60
HELIX RESOURCES LIMITED
Independent auditor's report to the members of Helix Resources Limited
61
HELIX RESOURCES LIMITED
Independent auditor's report to the members of Helix Resources Limited
62
HELIX RESOURCES LIMITED
Independent auditor's report to the members of Helix Resources Limited
63
HELIX RESOURCES LIMITED
Independent auditor's report to the members of Helix Resources Limited
64
HELIX RESOURCES LIMITED
Shareholder information
30 June 2023
The shareholder information set out below was applicable as at 8 September 2023.
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
Unlisted Options
No. of $0.018 $0.054 $0.02 $0.063 $0.036 $0.081 $0.036 $0.063 $0.081 Performance
holders Exp.
Options
Unlisted
Exp.
26.05.24
Exp.
24.02.24
Exp.
06.12.24
Exp.
06.12.24
Exp.
06.12.24
19.05.25
20.12.25
20.12.25
20.12.25
120
140
202
1,371
559
1,064
3,456
-
-
-
-
-
1
1
-
-
-
2
-
7
9
-
-
-
-
8
2
10
-
-
-
-
-
3
3
-
-
-
-
-
3
3
-
-
-
-
-
3
3
-
-
-
-
-
1
1
-
-
-
-
-
1
1
-
-
-
-
-
1
1
1,674
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
9
-
Minimum
Parcel Size
Holders
Units
Minimum $500.00 parcel at $0.005 per unit
100,000
1,674
51,648,769
65
HELIX RESOURCES LIMITED
Shareholder Information
30 June 2023
B. Percentage Held by 20 Largest Shareholders
The names of the twenty largest security holders of quoted equity securities are listed below:
TECHNICAL CERAMIC MARKETING SERVICES PTY LTD
YANDAL INVESTMENTS PTY LTD
MR BULENT BESIM
AG INVESTMENT SERVICES PTY LTD
ASHANTI INVESTMENT FUND PTY LTD (ASHANTI INVESTMENT FUND A/C)
MR COLIN OSWALD STUART MINGAY + MRS UNA ALICE MINGAY
CITICORP NOMINEES PTY LIMITED
BLAMNCO TRADING PTY LTD
BRAZIL FARMING PTY LTD
JOMALCO PTY LTD
SCINTILLA STRATEGIC INVESTMENTS LIMITED
IRUKA PTY LTD (BURTON FAM FOUNDATION A/C)
MR PETER FIDANTSIS + MRS POPI FIDANTSIS (FIDANTSIS SUPERANNUATION A/C)
JAINDI INVESTMENTS PTY LTD
SILVER CROWN TECHNOLOGY LIMITED
ALPHA HPA LIMITED
TROCA ENTERPRISES PTY LTD (COULSON SUPER A/C )
WYTHENSHAWE PTY LTD
MS OLIVIA KIDON
JETOSEA PTY LTD
Ordinary shares
% of total
Number held
shares
issued
52,000,000
51,437,609
44,000,000
40,000,000
33,333,333
32,500,000
30,747,791
30,000,000
30,000,000
25,000,000
25,000,000
21,678,781
21,661,741
20,833,333
20,833,333
20,000,000
20,000,000
20,000,000
18,014,250
17,457,305
2.24
2.21
1.89
1.72
1.43
1.40
1.32
1.29
1.29
1.08
1.08
0.93
0.93
0.90
0.90
0.86
0.86
0.86
0.78
0.75
Total: Top 20 holders of Ordinary Fully Paid Shares
Total issued capital
574,497,476
24.72
2,323,145,843
100.00%
C. Voting Rights
One vote for each ordinary share held in accordance with the Company's Constitution.
66
HELIX RESOURCES LIMITED
Shareholder Information
30 June 2023
D. Unquoted Equity Securities
The Company has the following classes of options on issue as of the date of this report, as detailed below. Options do not carry the
rights to vote.
Class
No. of Options
Terms
Class I Unlisted Options
Class J Unlisted 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
Unlisted Options issued to Non-Executive Directors
Unlisted Options issued to Non-Executive Directors
Unlisted Options issued to Non-Executive Directors
Unlisted Performance Options
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 02/11/23
Exercisable at 3.6 cents, expiring on or before 06/12/24
Exercisable at 6.3 cents, expiring on or before 06/12/24
Exercisable at 8.1 cents, expiring on or before 06/12/24
Exercisable at 1.8 cents, expiring on or before 19/05/25
Exercisable at 8.1 cents, expiring on or before 20/12/25
Exercisable at 6.3 cents, expiring on or before 20/12/25
Exercisable at 3.6 cents, expiring on or before 20/12/25
Performance Options, various milestones, expiring on or
before 19/12/27
8,000,000
10,000,000
17,700,000
2,400,000
2,400,000
2,400,000
15,000,000
800,000
800,000
800,000
13,200,000
73,500,000
E. Substantial holders
There are no substantial shareholders in the Company relating to fully paid ordinary shares.
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
K Prendergast
G. On-Market Share Buy-Back
The Company does not have a current on-market share buy-back.
Fully Paid
Ordinary
Shares
Unlisted
Options
3,355,342
4,958,333
-
2,400,000
-
2,400,000
8,313,675
4,800,000
67
HELIX RESOURCES LIMITED
Shareholder Information
30 June 2023
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
Escrow 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
68
HELIX RESOURCES LIMITED
Tenement Register
30 June 2023
Resource Statement
The Company’s current resources are contained in this report and the Company confirms that there is no new information or data that
materially affects the mineral resource estimate announced in September 2018 (Homeville) and in June 2023 (Canbelego), and that all
assumptions underpinning the estimate continue to apply and have not materially changed.
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
EL9385
EL9386
EL9387
EL9581
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
Whitbarrow
Oriel
Pangee
Yangunya
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
Base metals/gold
Base metals/gold
Base metals/gold
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
100% Helix
100% Helix
100% Helix
100% Helix*
* Granted on 14 July 2023
69
helix@helixresources.com.au
Level 13, 191 St Georges Terrace
PERTH WA 6000
helixresources.com.au
ASX:HLX