Impact Minerals Limited
Annual Report 2015

Plain-text annual report

ANNUAL REPORT 2015 Signage Document.indd 3 1/09/14 5:01 PM Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMCONTENTS CORPORATE DIRECTORY CHAIRMANS LETTER REVIEW OF OPERATIONS SCHEDULE OF MINERAL TENEMENTS FINANCIAL REPORT DIRECTORS’ REPORT DIRECTOR’S DECLARATION INDEPENDENT AUDITOR’S REPORT ADDITIONAL INFORMATION 4 6 8 25 27 28 80 81 83 IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 3 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMCORPORATE DIRECTORY IMPACT MINERALS LIMITED ACN: 119 062 261 ABN: 52 119 062 261 DIRECTORS Mr Peter Unsworth – Chairman Dr Michael Jones – Managing Director Mr Paul Ingram – Non Executive Director Dr Markus Elsasser – Non Executive Director Mr Aaron Hood – Non Executive Director SHARE REGISTRY Computershare Investor Services Pty Limited GPO Box D182, PERTH, WA, 6840, Australia Telephone: +61 (8) 9323 2000 Facsimile: +61 (8) 9323 2033 Email address: perth.services@computershare.com.au AUDITORS Bentleys Audit and Corporate (WA) Pty Ltd COMPANY SECRETARY James Cooper-Jones SOLICITORS Jackson McDonald REGISTERED AND ADMINISTRATIVE OFFICE 26 Richardson Street West Perth, Western Australia, 6005 Telephone: +61 (8) 6454 6666 Facsimile: +61 (8) 6454 6667 Email address: info@impactminerals.com.au Website: www.impactminerals.com.au BANKERS Australia & New Zealand Banking Group STOCK EXCHANGE LISTINGS ASX Limited – IPT Page 4 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMIMPACT MINERALS LTD ANNUAL REPORT 2015 Page 5 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMCHAIRMANS LETTER Dear fellow shareholders, I am very pleased to report to you that despite the ongoing downturn in the mining sector and the very difficult circumstances for many junior exploration companies, after a very busy year with excellent results Impact is now entering the most exciting part of its history so far. Your Company has been able to secure the required financial commitments to enable us to continue to vigorously explore our exciting platinum, gold-silver and base metals projects near Broken Hill, Orange and Kalgoorlie. Central to this stability going into FY2016 has been Impact’s success in securing the backing of a major new cornerstone investor, Squadron Resources Pty Ltd, the private mining investment vehicle of the Minderoo Group which itself represents selected philanthropic and commercial interests of Andrew and Nicola Forrest. Squadron is investing an initial A$3 million into Impact with provision to increase this to $7.3 million. Tranche 1, an investment of $2 million, has already been received by Impact with Tranche 2, a proposed A$1 million placement to Squadron, to be put to shareholders for approval at the Annual General Meeting at the end of September. In the current challenging market, an investment commitment of this size by Squadron Resources, which also includes options for it to inject additional capital directly into the Broken Hill and Commonwealth Projects, highlights the potential and tenor of Impact’s assets in NSW and WA. Page 6 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMWith the new funding, Impact will be able to progress exploration on all three of its key Australian projects, being: • Broken Hill where Impact returned some of the highest platinum grades ever reported in Australia in its maiden drill programme; • Commonwealth Project at which a maiden resource was delineated this year; and • Mulga Tank where Impact has been awarded an almost unprecedented total of $275,000 as part of the WA Government’s Exploration Incentive Scheme for drilling. Drill programmes at all three projects will be completed this coming year and I look forward to sharing those results with you as we progress. We thank you for your continued support as shareholders. Mr Peter Unsworth Chairman IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 7 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PM   REvIEw Of OPERATIONS Exploration during the year was focussed on Impact’s three flagship Australian Projects 1. BROKEN HILL PGM-Ni-Cu JOINT VENTURE PROJECT, N.S.W. (Impact 87%) The Broken Hill Project is located 20 km south east of the World Class Broken Hill silver-lead-zinc mine in the richly mineralised Curnamona Province of New South Wales and consists of two exploration licences E7390 and E8234 covering 110 sq km (Figure 1). Exploration Licence E7390 is owned by Golden Cross Resources Limited (GCR) and is the subject of two joint ventures, one between GCR and Impact and one between GCR and Silver City Minerals Limited. Impact has earned 87% of the rights to nickel, platinum and any other metals, occurring in, emanating from, or which are otherwise associated with, mafic or ultramafic complexes. Should Golden Cross dilute to less than a 5% interest in these rights then it has to transfer its interest to Impact for $1 (one dollar). Silver City has the joint venture rights to base metal, silver and gold mineralisation associated with Broken Hill style mineralisation. 1.2 RED HILL PROSPECT During the year exploration was focussed at the Red Hill Prospect in the centre of the project area (Figures 1 and 2). Here, the host ultramafic intrusive unit outcrops over an area of about 500 sq metres and has a nickel-rich core and copper-precious metal rich margins as identified in soil and rock chip sampling and reported last year. This is a common feature in many major nickel-copper-precious metal sulphide deposits around the world. At the Red Hill Shaft, mined to a depth of about 40 m in the early 1900’s, grab samples from outcrops around the shaft returned up to 16 g/t platinum, 12.1 g/t palladium, 4.2% nickel, 7.7% copper, 1.3 g/t gold and 221 g/t silver. Rock chip samples from a surface excavation about 50 m long located 100 m to the south of the shaft returned up to 1 g/t platinum, 2.6 g/t palladium, 0.9% nickel, 0.8% copper, 1.8 g/t gold and 3.3 g/t silver. Impact completed 1,012 m of drilling in its maiden drill programme at Broken Hill in December 2014 and identified some of the highest platinum grades ever reported in Australia at depth below the Red Hill workings. A 25 to 30 metre thick near-surface layer of copper-nickel-PGM mineralisation was discovered that contains two zones of high-grade drill intercepts called the Upper and Lower Zones which returned (Figure 3): (Note 3PGM = Platinum-palladium-gold and 7PGM = 3PGM + osmium, iridium, rhodium, ruthenium where assayed). Upper Zone: Lower Zone: 9.5 m at 4.7 g/t 3PGM, 1.5% copper and 0.8% nickel including 5.1 m at 11 g/t 7PGM, 1.9% copper and 0.9% nickel (RHD001) and 5.2 m at 7.9 g/t 7PGM, 1.1% copper and 1.6% nickel (RHD006) 9.9 m at 6.7 g/t 3PGM, 1.4% copper and 0.3% nickel including 4.2 m at 11.8 g/t 7PGM, 2.6% copper and 0.5% nickel (RHD001) and 13.8 m at 6.6 g/t 7PGM, 1.1% copper and 0.3% nickel (RHD006). These assays also revealed the presence of several grams per tonne combined of the rare platinum group metals (PGMs) osmium, iridium, rhodium and ruthenium as well as the more common metals platinum and palladium. These rare metals are used in many specialist hard-wearing metal alloys, electronics and for catalytic converters. The mineralisation comprises zones of veins and breccias which contain a mixture of nickel and copper Page 8 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMFigure 1. Location of the Broken Hill Project showing the prospective ultramafic host rocks (in red) and priority prospects on an image of the magnetic intensity of the underlying rocks. IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 9 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMREvIEw Of OPERATIONS sulphide, oxide and carbonate minerals together with pyrite and pyrrhotite (Figure 4). In a few places the veins comprise massive sulphide up to 20 cm thick and these may have been remobilised from a larger body of massive sulphide at depth or along strike (Figure 4). The mineralised zones are interpreted to dip moderately to steeply south and therefore may be close to true width (Figure 3). However the host veins, breccias and massive sulphide show small scale complexities in dip and strike that are not yet resolved. The mineralisation is also open at depth, where it is in part coincident with an Induced Polarisation (IP) chargeability anomaly identified in a ground geophysical survey (Figures 2 and 3). IP chargeability anomalies may be associated with disseminated sulphides and magnetite. All of the mineralisation lies within metasedimentary rocks that lie beneath a small outlier of the Red Hill ultramafic intrusion (Figure 3). Accordingly there is significant potential for further similar mineralised zones beneath the main body of the intrusion as well. Of interest, CRA Exploration completed two diamond drill holes under the Red Hill workings in 1969 with no significant results (Figures 2 and 3). However these holes were drilled from north to south and detailed work by Impact has now demonstrated that these holes were drilled parallel to and below the mineralised zone (Figure 3). Figure 2. Red Hill Prospect: Geology, Key Exploration Results and Targets for Follow-up Drilling. Page 10 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PM(CONTINUED)Seven targets for follow up drilling have now been identified at Red Hill (Figure 2). Target T1 contains the newly discovered PGM-copper-nickel mineralisation and follow up drill holes are required at T1 to test the mineralisation along trend and at depth. The other six drill targets consist of a ground (T2) and down hole (T3) electromagnetic anomaly, a rock chip geochemical anomaly (T4), induced polarisation (IP) anomalies (T5 and T7) and an airborne magnetic anomaly (T6). The drilling at Red Hill was in part funded by an award of $125,000 that Impact received under the N.S.W. State Government’s Co-operative Drilling Funding Programme. The Co-funding initiative is awarded on a dollar-for-dollar basis for direct drilling costs. A total of $78,000 of this money still remains to be claimed and will be used to help fund the follow up drill programme. Statutory approvals for the programme have been received and it is due to start in early September. 1.2 REGIONAL TARGETS The drill intercepts at Red Hill are the first significant drill intercepts of nickel and copper within Impact’s project area away from the high grade drill intercept of 2 m at 6.1% nickel, 4.5% copper, 10.9 g/t platinum and 23.6 g/t palladium in fresh sulphide discovered some years ago by previous explorers at the Platinum Springs prospect some 15 km to the north east (Figures 1 and 5). There are many strike kilometres of the same ultramafic host rock that contain high grade nickel-copper- PGE rock chip assays similar to those at Platinum Springs and Red Hill that have never been drilled. Figure 3. Cross-section through the Red Hill Mine area showing the geology and assay results. IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 11 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMREvIEw Of OPERATIONS Also during the year new rock chip assay data and a review of previous results confirmed the presence of high grade and rare platinum group metals in a wide arc stretching from the northeast to the southeast of the Broken Hill township. Most of the rock chip samples, which have been variably assayed for the different PGMs, come from the Moorkai Intrusive Complex in the northern part of the project area where the host ultramafic unit can be traced for 9 kilometres along trend (Figures 1 and 5). At the Platinum Springs Prospect at the southern end of the Complex, a representative 120 kg sample of gossan returned: 19.6 g/t platinum, 50 g/t palladium, 3 g/t rhodium, 3 g/t osmium, 4.4 g/t iridium, 2 g/t ruthenium, 0.57 g/t gold, 0.34% nickel and 0.71% copper; A nearby drill hole completed by a previous explorer discovered a 2 metre thick zone of fresh massive sulphide from 45 m depth that returned: 2 m at 52 g/t platinum equivalent comprising 10.9 g/t platinum, 23.6 g/t palladium, 4.5% copper and 6.1% nickel. A one metre interval of this was sampled for the rare PGMS and returned: 1 m at 1 g/t rhodium, 1.3 g/t osmium and 1.2 g/t iridium. At two other undrilled prospects in the Moorkai Intrusive Complex, previous explorers identified rhodium in grab samples at Round Hill and Back Ridge including respectively (Figure 5): 5.6 g/t platinum, 8.8 g/t palladium, 0.8 g/t rhodium, 2.4% copper and 0.7% nickel; and 5.2 g/t platinum, 6.5 g/t palladium, 1.0 g/t rhodium, 0.6% copper and 0.1% nickel. OXIDE FRESH Figure 4. Nature of mineralization at Red Hill showing the variation from oxide material to fresh rock including massive pyrite. Page 12 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PM(CONTINUED) Figure 5. PGM-copper-nickel assays at the Moorkai Intrusive Complex IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 13 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMREvIEw Of OPERATIONS At the undrilled Moorkai Prospect very high grade assays of up to 27.8 g/t platinum, 27.9 g/t palladium, 14 g/t gold, 9 % copper and 1,8% nickel were returned from gossan samples near small workings. Although these samples were not been assayed for the rare PGMs, Impact considers it highly likely that they will contain appreciable amounts of those metals. At the Little Darling Prospect in the centre of the Broken Hill Project area, a rock chip sample of gossan returned (Figure 1): 34.8 g/t platinum, 76 g/t palladium, 3.2 g/t rhodium, 1.2 g/t gold, 1.9% copper and 1.9% nickel. These results all confirm Impact’s belief that there is potential for a significant discovery near Broken Hill. This belief has been strengthened by the support of the investment by Squadron Resources. 2. COMMONWEALTH GOLD-SILVER-BASE METAL PROJECT (IPT 100%) The Commonwealth Project comprises three exploration licences that cover about 315 sq km of the highly prospective Lachlan Fold Belt about 100 km north of Orange in NSW. The belt is host to many major gold-silver-copper mines including the Cadia-Ridgeway deposits that contain 25 million ounces of gold and 12 million tonnes of copper (Figure 6). The Commonwealth Mine, a high grade volcanogenic massive sulphide deposit (VMS), was discovered in 1900 and mined intermittently until the 1930’s. Early production amounted to 470 oz of gold from 480 tons of oxide ore. A blast furnace was installed in 1905 and 6,476 t was mined at a grade of 6 g/t gold, 150 g/t silver, 2% copper, 15% zinc and 7% lead. Operations were suspended in 1908 following flooding and there are no records of significant mining activity since. The project has received little exploration attention in the past 25 years. Previous drilling was focused on 300 m of strike between the Commonwealth Mine and the Commonwealth South Prospect and only 66 drill holes for 3,695 m at an average depth of only 56 metres were completed (Figure 2). Impact’s work has identified significant potential for both further high grade VMS deposits at depth and along strike from the Commonwealth Mine and importantly bulk tonnage lower grade disseminated gold and silver mineralisation that either was not recognised or was ignored by the early miners and previous explorers. During the year Impact completed its maiden drill programme at Commonwealth with significant and exciting results at the Main Shaft, Commonwealth South and Silica Hill Prospects. 2.1 MAIDEN RESOURCE AT MAIN SHAFT AND COMMONWEALTH SOUTH On 19 February 2015 Impact announced a maiden Inferred Mineral Resource prepared in accordance with the JORC 2012 Code by independent resource consultants Optiro at a 0.5 g/t gold cut off of: 720,000 tonnes at 4.7 g/t gold equivalent for a contained 110,000 gold equivalent ounces and comprising 2.8 g/t gold, 48 g/t silver, 1.5% zinc, 0.6% lead and 0.1% copper. The resource, which is open along trend and at depth, contains both massive sulphide mineralization at the Main Shaft prospect and disseminated, vein and lesser massive sulphide mineralization at the Commonwealth South prospect. It extends from surface to an average depth of 90 m, has a strike length of 400 m and is up to 25 m thick (Figure 8). A separate Inferred Mineral Resource (included within the overall resource) has also been calculated for the massive sulphide lens at Main Shaft to demonstrate the high grade nature of such deposits that are the principal target for Impact’s exploration programme. Page 14 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PM(CONTINUED) Figure 6. Location of the Commonwealth Project and location of Major Mines and Deposits in the Lachlan Fold Belt of New South Wales. The Main Shaft Inferred Resource is: 145,000 tonnes at 10 g/t gold equivalent for a contained 47,000 gold equivalent ounces and comprising 4.3 g/t gold, 142 g/t silver, 4.8% zinc, 1.7% lead and 0.2% copper. Gold Equivalent Calculation Gold equivalent calculation represents the total metal value for each metal, multiplied by the conversion factor, summed and expressed in equivalent gold percentage. These results are exploration results only and no allowance is made for recovery losses that may occur should mining eventually result. However it is the Company’s opinion that elements considered here have a reasonable potential to be recovered as evidenced in similar multi-commodity natured mines elsewhere in the world. Gold equivalent conversion factors and long-term price assumptions used are as follows: Gold $1581/ ounce, silver $22.21/ounce, copper $7,320/tonne, lead $2,345/tonne; zinc $2,74/ tonne. The resource is open along trend and at depth and extensive further resource definition drilling is required in particular at Main Shaft and Commonwealth South (Figure 8). At Main Shaft the massive sulphide lens is still open at depth and in particular to the south east along strike from drill hole CMIPT021 which returned a best intercept of: 8.1 m at 6 g/t gold, 193 g/t silver, 5.9% zinc, 2.3% lead and 0.16% copper from 71 m including 2.9 m at 9.3 g/t gold, 201 g/t silver, 11.6% zinc, 4.7% lead and 0.25% copper from 74.9 m down hole. IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 15 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PM REvIEw Of OPERATIONS Also, Impact identified for the first time at Main Shaft, a thick copper-dominant zone of disseminated sulphide mineralisation at depth coincident with an Induced Polarisation (IP) ground geophysical anomaly. Drill hole CMIPT06 returned: 31 m at 0.13% copper and 5 g/t silver from 209 m including: 1 m at 1% copper, and 14 g/t silver from 210 m; and 1 m at 0.7% copper, 1.1% zinc, 0.4% lead, 31 g/t silver and 0.4 g/t gold from 218 m. Figure 7. Commonwealth Project: Geology, Prospects and Significant Rock Chip Assays. Previous exploration focused solely on the 300 m of strike between the Commonwealth Mine (Main Shaft) and Commonwealth South Prospects. Page 16 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PM(CONTINUED) This copper zone, which also contains anomalous zinc and lead is increasing in thickness at depth and further drilling below is warranted. This may be part of a “feeder zone” to the gold-silver-zinc-lead- copper mineralisation at the upper contact. Such feeder zones are targets for massive copper sulphide mineralisation. At Commonwealth South, follow up drilling is required immediately along trend south of drill hole CMIPT017 which returned bonanza grades of gold: 7 m at 25.5 g/t gold, 62 g/t silver, 3.8% zinc, 1.6% lead and 0.1% copper from 88 m down hole (about 50 m below surface) including: 4 m at 41.8 g/t (1.3 ounces per tonne) gold, 93 g/t silver, 5.5% zinc, 2.3% lead from 90 m, and below drill hole CMIPT014 which returned: 21 m at 2.9 g/t gold, 21.6 g/t silver, 1.2% zinc and 0.6% lead from 53 metres (Figure 8). Importantly, these assays at Commonwealth South come from two separate semi-massive and massive sulphide layers, discovered by Impact for the first time at this prospect, where previously only disseminated and vein-hosted mineralisation was known. The zones are open at depth and along trend and it is possible that they are at the edge of much larger lenses of high-grade massive sulphide similar to that at the Main Shaft Prospect (Figure 8). New massive sulphide lens 7 m at 25 g/t gold Commonwealth South Main Shaft: Drill Targets New massive sulphide lens 2 m at 6.7 g/t gold, 61.6 g/t silver, 3.8% zinc Figure 8. Resource model for the Main Shaft-Commonwealth South Prospects showing the location of new massive sulphide lenses and follow up drill targets. IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 17 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PM REvIEw Of OPERATIONS 2.2 SILICA HILL At Silica Hill, two holes (CMIPT02 and CMIPT011) were drilled to test part of a strong IP anomaly modelled to extend to at least 150m below surface and forming part of a 300m long trend identified in the IP data called the Silica Hill Trend. This IP trend is open both to the north of the area drilled and to the south (Figure 9). Drill hole CMIPT02 returned a very thick interval of anomalous silver and gold of: 157 m at 4.5 g/t silver and 0.04 g/t gold from 68 m in a porphyry unit that contains numerous quartz-sulphide veins with extensive disseminated pyrite (5-20% total pyrite). At a depth of about 200 m down hole, several different types of porphyry are recognisable and these may represent different intrusive units. This zone contains more intense sulphide mineralisation, with numerous narrow veins of copper, zinc and lead sulphides, and returned: 23 m at 0.1% zinc, 0.1% lead and 0.05% copper from 202 m down hole. Individual one metre assays range up to 0.6% zinc, 0.8% lead and 0.3% copper. Drill hole CMIPT011 returned a thick interval of very anomalous silver and anomalous gold of: 21 m at 41 g/t silver and 55 ppb gold in intensely silica and pyrite altered volcanic rocks with numerous narrow veins of pyrite and arsenopyrite. The hole ended within this zone of mineralisation and is still open at depth. These drill results confirm the presence of extensive silica-pyrite alteration over many hundreds of square metres in both the porphyry unit and the surrounding volcanic rocks at Silica Hill and have identified for the first time, zones of higher grade base and precious metals close to the contact between the two rock types. These are very encouraging signs for the discovery of large and higher grade deposit within the prospect area. Figure 9. Silica Hill Prospect: Geology, soil geochemistry, Induced Polarisation and drill results. Page 18 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PM(CONTINUED) 2.3 THE DOUGHNUT A soil geochemistry survey completed by Impact in mid-2014 identified a large elliptical zinc-lead-copper- gold-silver soil anomaly that is 1.2 km by 750 m in dimension (Figure 10). Three features of note about this anomaly are: 1. There are low values of all metals in the centre of the anomaly producing a distinctive “doughnut shape”. 2. The centre of this doughnut contains elevated values of potassium in the soil geochemistry data. 3. The western edge of the doughnut anomaly contains strong gold, copper, bismuth and iron-in-soil results along the Coronation Trend (Figure 10). This metal association is characteristic of skarn deposits. Rock chip samples taken by Impact at old workings along the Trend returned up to 18.2% copper, 55 g/t silver and 0.3 g/ gold. These features are consistent with those associated with a number of porphyry copper deposits around the world and it is interpreted that a porphyry intrusion may underlie the centre of the doughnut with a “ring” of base metals around it and with skarn mineralisation that has preferentially developed along the western contact. This area has not been previously explored. Impact has recently received the results of a ground gravity survey and ground IP survey which is being interpreted. All of this data will be synthesised and used to define new targets for drilling as well as resource extension drilling at Main Shaft-Commonwealth South in 2016. A land access agreement is being negotiated with a new landholder at Commonwealth following the recent sale of the underlying property. 3. MULGA TANK NICKEL-COPPER-PGE PROJECT (IPT 100%) Impact owns 100% of 13 exploration licences that cover 425 sq km of the highly prospective Minigwal greenstone belt, 200 km east of Kalgoorlie in the emerging mineral province of the south east Yilgarn Block, Western Australia (Figure 11). In late 2013 in its maiden drill programme at the project, Impact discovered three styles of nickel sulphide mineralisation within the dunite and surrounding rocks: 1. High tenor veins at the base of the Mulga Tank Dunite with drill results of: 0.25 m at 3.8% nickel, 0.7% copper and 0.7 g/t PGE and 0.3 m at 0.7% nickel. 2. High tenor nickel sulphide in multiple komatiites in a flow channel with drill results of: 0.75 m at 0.85% nickel, 0.35% copper and 0.28 g/t PGE (Pt+Pd+Au); and 6.7 m at 0.5% nickel. 3. Extensive disseminated nickel in the Mulga Tank Dunite with drill results of: 2 m at 1.3% nickel including 1 m at 2% nickel and multiple zones of 0.5 m at 0.5% to 1.2% nickel within an intercept of 115 m at 0.3% nickel; other thick intercepts of 21 m at 0.4% nickel and 59 m at 0.3% nickel. The style of mineralisation and the nature of the ultramafic rocks are similar to those that host the significant nickel deposits found at the Perseverance (45 Mt at 2% nickel), Rocky’s Reward (9.6 Mt at 2.4% Ni) and Mt Keith >2 Mt of contained nickel) mines near Leinster in Western Australia (Figure 11). IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 19 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PM REvIEw Of OPERATIONS Figure 10. The Doughnut: Significant soil geochemical anomalies and the location of possible buried porphyry intrusions at depth. Page 20 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PM(CONTINUED)Impact’s results come from one 15 sq km area within a very large greenstone belt that extends for 20 km along strike and which has not been explored for nickel. The area is also highly prospective for gold deposits as evidenced by the recent Gruyere discovery (>5 million ounces of gold) 200 km to the north east in a similar under-explored area (Figure 11). Although there was no on-ground exploration during the year, Impact achieved a number of significant milestones with the project in 2015. First, on 6 February 2015 Impact announced that it had agreed to purchase the seven exploration licences in the Mulga Tank Project that were in joint venture with Golden Cross Resources Limited (ASX:GCR) for $275,000 in cash. Accordingly Impact has moved to 100% ownership of the project and in addition removed an onerous joint venture earn-in requirement that was inherited when the project was purchased in early 2013. Secondly, Impact won two grants as part of the Western Australian Government’s Exploration Incentive Scheme for drilling at the Mulga Tank Project. In December 2014 a grant of $125,000 was awarded to drill test the basal contact of the Mulga Tank Dunite for high grade nickel-copper-PGM deposits and in July 2015 a grant of $150,000 was awarded to test several targets along strike to the north west of the dunite in the Panhandle Prospect area. The EIS, a co-funding initiative for exploration in under explored areas and awarded on a dollar-for-dollar basis for direct drilling costs, has been designed to encourage innovative exploration and prioritised high quality, technically sound proposals that demonstrate new exploration concepts. Also during the year a detailed synthesis and review of all previous exploration data was completed. Following the recent funding of Impact, exploration has now recommenced at Mulga Tank. An airborne magnetic and radiometric survey has been recently completed and ground geophysical surveys will commence in October. This new data will be used together with the compilation of previous work to generate new drill targets with the aim of completing a major drill programme at the project before the end of 2015. 4. BOTSWANA URANIUM (IMPACT 100% AND XADE NICKEL (IMPACT 63%) PROJECTS Exploration in Botswana is still on hold pending a recovery in the uranium price and market sentiment. During the year the majority of Impact’s Prospecting Licences within the Botswana Uranium Project licences were not renewed. This followed ongoing delays and significant back logs within the Department of Mines in Botswana that have lasted nearly two years and were in part related to an attempt by the Department to resolve complex issues centred around overlapping mineral rights between Energy Licences and Radioactive Licences. The delays involved also resulted in the non-completion of the sale of four licences to Shumba Resources Limited. Impact has appealed for the re-instatement of two of its licences, Red Hills and Mogome, which were in good standing. A decision is awaited. At Xade a number of major companies have reviewed the exploration data with a view to a joint venture. Discussions continue with one party. IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 21 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMREvIEw Of OPERATIONS 5. CAPITAL RAISINGS As this annual report goes to press Impact is in the process of finalising a funding package of up to $7.3 million from Squadron Resources Pty Ltd, the private mining investment vehicle of the Minderoo Group, which itself represents the philanthropic and commercial interests of Andrew and Nicola Forrest. The key terms of the transaction comprise: • an initial $2 million investment (now complete) in exchange for: interest-free 3 year secured convertible notes, convertible only into ordinary shares at the lower of 2.1 cents per share or 80% of the 30 day VWAP); and 45 million attaching unlisted call options to acquire ordinary shares at 3.25 cents per share (a potential further investment of up to about $1.46 million); • • subject to shareholder approval, a $1 million placement of ordinary shares at 2.1 cents per share (a 15% discount to the 15 day VWAP) with 26,428,572 attaching 3 year unlisted call options to acquire ordinary shares at 3.25 cents per share (a potential further investment of up to about $0.86 million); the option for Squadron, at its sole discretion, to invest a further $1 million into either or both of the high grade Commonwealth gold-silver-zinc-lead and Broken Hill platinum projects in NSW, to earn a 19.9% interest after Impact has spent a combined total of $2.5 million on the two projects; the appointment of Squadron’s nominee, Mr Aaron Hood, to the Board of Impact as a non-executive director; and the engagement of Dr John Clout as a technical consultant to Impact. • • Securing Squadron as a new cornerstone investor is a milestone development for Impact and its shareholders. It will allow Impact to forge ahead with its exploration programmes into 2016 and build on the exciting results of the past 12 months. Page 22 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PM(CONTINUED) Figure 11. Location of the Mulga Tank Project and significant nickel and gold mines and prospects including new nickel-copper-PGE and gold discoveries in the emerging province to the east. IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 23 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMREvIEw Of OPERATIONS Page 24 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PM(CONTINUED)SCHEDULE Of MINERAL TENEMENTS fOR THE YEAR ENDED 30TH JUNE 2015 Tenement (Prospecting Licence) Number Location % Holding EL5874 EL8212 EL8234 EL8252 EPM14116 E39/988 E39/1072 E39/1439 E39/1440 E39/1441 E39/1442 E39/1513 E39/1632 E39/1633 E39/1761 E39/1766 E39/1767 E39/1768 123/2008 024/2011 016/2014 017/2014 412/2014 NSW NSW NSW NSW QLD WA WA WA WA WA WA WA WA WA WA WA WA WA Botswana Botswana Botswana Botswana Botswana 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Status Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Renewal rejected - appealed Renewal rejected - appealed Granted Surrendered with effect 31.8.15 Surrendered with effect 31.8.15 IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 25 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMSCHEDULE Of MINERAL TENEMENTS fOR THE YEAR ENDED 30TH JUNE 2015 (CONTINUED) JOINT VENTURE TENEMENTS Tenement (Prospecting Licence) Number 50/2006 51/2006 52/2006 57/2006 58/2006 59/2006 60/2006 64/2006 67/2006a 69/2006a EL 7390* Location Botswana Botswana Botswana Botswana Botswana Botswana Botswana Botswana Botswana Botswana NSW % Holding Status 62% 62% 62% 62% 62% 62% 62% 62% 62% 62% 87% Extension applied for Extension applied for Extension applied for Extension applied for Extension applied for Extension applied for Extension applied for Extension applied for Extension applied for Extension applied for Granted * EL 7390, a tenement within the Broken Hill Project, is owned by Golden Cross Resources Limited (GCR) and is the subject of two joint ventures, one between GCR and Impact and one between GCR and Silver City Minerals Limited (ASX:SCI). Silver City has the right to base metals, silver and gold mineralisation associated with Broken Hill style mineralisation. Impact has the rights to nickel, platinum and any other metals, occurring in, emanating from, or which are otherwise associated with, mafic and ultramafic complexes. On 27th March 2015 Impact announced that Golden Cross Resources Limited had recognised that Impact had earned an 87% interest in these metals rights. Page 26 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PM fINANCIAL REPORT fOR YEAR ENDED 30 JUNE 2015 CONTENTS DIRECTORS’ REPORT CONSOLIDATED STATEMENT OF PROFIT OR LOSS CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONSOLIDATED STATEMENT OF CHANGES IN EQUITY CONSOLIDATED STATEMENT OF CASH FLOWS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DIRECTOR’S DECLARATION INDEPENDENT AUDITOR’S REPORT ADDITIONAL INFORMATION 28 43 44 45 47 48 80 81 83 Signage Document.indd 3 1/09/14 5:01 PM Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMDIRECTORS’ REPORT Your directors present their report together with the financial statements of the company and the Consolidated Group (being Impact Minerals Limited and its subsidiary companies) for the financial year ended 30 June 2015. DIRECTORS The names of directors in office at any time during or since the end of the year are: Peter J Unsworth Michael G Jones Paul Ingram Markus Elsasser Aaron Hood (appointed 6 August 2015) Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. PRINCIPAL ACTIVITIES AND SIGNIFICANT CHANGES IN NATURE OF ACTIVITIES The principal activity of the Consolidated Group during the financial year was exploration for deposits of uranium, nickel, gold, copper and platinum group elements. Other than stated above, there were no significant changes in the nature of the Consolidated Group’s principal activities during the financial year. OPERATING RESULTS The consolidated loss of the Consolidated Group was $4,757,575 (2014: Loss of $7,974,183), after eliminating non-controlling equity interests. DIVIDENDS PAID OR RECOMMENDED There were no dividends recommended or paid during the year. REVIEW OF OPERATIONS The 2015 period has been another successful one for the Company and has added to the increasing perception in the market of Impact being an explorer of difference. The Company has continued to aggressively explore its three main projects, namely the Commonwealth (Au-Ag), the Broken Hill (Ni-Cu-PGE) and Mulga Tank (Ni-Cu-PGE), all acquired in mid-2013. This has included successfully drilling all three projects within an approximately 12 month calendar period. This is in a time when many in the industry are reluctant to commit capital to exploration. The results from these programmes have been impressive and include a maiden high grade resource at Commonwealth, some of the highest drill results for Platinum Group Metals at Broken Hill and some excellent nickel results suggesting potential for world class deposits at Mulga Tank. Impact has been successful in attracting government grants for the co-funding of its drill programmes at Broken Hill and also Mulga Tank where a second award within 12 months was recently received. This funding will go towards this year’s drill programme. During the year Impact also purchased 100% of the Mulga Tank project for $275,000. This was well below the required expenditure for Impact to earn 50% of the project under the conditions of a joint venture that was in place when Impact purchased the project. A number of cost cutting initiatives were implemented during the year including a relocation of the head office. Page 28 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMOn the 14th July 2014 the Company issued 78,423,516 Company shares at a price of 3.3 cents to raise $2,587,976. In addition on 17th July 2015 the Company announced a significant investment of up to $7.3 million from Squadron Resources Pty Ltd, part of the Minderoo Group. FINANCIAL POSITION The net assets of the Consolidated Group at 30 June 2015 are $6,932,818 (2014: $8,564,285) SIGNIFICANT CHANGES IN STATE OF AFFAIRS There have been no significant changes in the state of affairs of the Consolidated Group that occurred during the financial year. EVENTS AFTER THE REPORTING PERIOD On the 6th August 2015 the Company announced that it had executed a funding of up to $7.3 million from Squadron Resources Pty Ltd, part of the Minderoo Group. The key terms of the transaction comprise: • an initial $3 million investment comprising a $1 million placement of shares at 2.1 cents per share (a 15% discount to the 15 day VWAP) and an interest-free convertible note for $2 million dollars, convertible to shares at a price which is the lower of 2.1 cents or 80% of the 30 day Volume Weighted Average Price (VWAP); • 71,428,572 3 year call options exercisable at 3.25 cents a share to raise a possible $2.3 million on exercise; the option for Squadron to invest a further $1 million into either or both of the high grade Commonwealth gold-silver-zinc-lead and Broken Hill platinum projects in NSW to earn a 19.9% interest after Impact has spent a combined total of $2.5 million on the two projects; the appointment of Squadron’s nominee Mr Aaron Hood to the Board of Impact as a non-executive director; and the engagement of Dr John Clout as a technical consultant to the Company. • • • FUTURE DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGIES Other than matters mentioned in this report, disclosure of information regarding likely developments in the operations of the consolidated entity in future financial years and the expected results of those operations may result in unreasonable prejudice to the Consolidated Group. Therefore, this information has not been presented in this report. ENVIRONMENTAL ISSUES The Consolidated Group holds various exploration licences to conduct its exploration activities in Australia and Botswana. So far as the Directors are aware, all exploration activities have been undertaken in compliance with all relevant environmental regulations in all jurisdictions in which the group operates. NGER ACT The Directors have considered the National Greenhouse and Energy Reporting Act 2007 (the NGER Act) which introduces a single national reporting framework for the reporting and dissemination of information about the greenhouse gas emissions, greenhouse gas projects, and energy use and production of corporations. At the current stage of development, the directors have determined that the NGER Act will have no effect on the Consolidated Group for the current or subsequent financial year. The Directors will reassess this position as and when the need arises. IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 29 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMDIRECTORS’ REPORT (CONTINUED) INFORMATION ON DIRECTORS Mr Peter J Unsworth Non-Executive Chairman Qualifications Experience B Com. Mr Unsworth, formerly a chartered accountant, has more than 35 years experience in the corporate finance, investment, and securities industries and has a wealth of management experience with both public and private companies. A former Executive Director with a leading Western Australian stockbroking company, Mr Unsworth has been a director of a number of public exploration and mining companies. He was a Director and Chairman for 12 years of the Western Australian Government owned Gold Corporation (operator of The Perth Mint). Dr Michael G Jones Managing Director Qualifications Experience PhD, MAIG Dr Jones completed undergraduate and post-graduate studies in Mining and Exploration Geology at Imperial College, London. His Ph.D. work on gold mineralization saw him move to Western Australia in 1988 to work for Western Mining Corporation exploring for gold and nickel deposits in the Yilgarn. From 1994 he consulted to the exploration and mining industry specialising in the integration of geological field mapping and the interpretation of geochemical, geophysical and remotely sensed data for target generation. Dr Jones has worked on over 80 projects both in Greenfields and near mine exploration in a wide variety of mineralised terrains and was the founding director of Lithofire Consulting Geologists in Perth, Australia. He was also the team leader during the discovery of a significant gold deposit at the Higginsville Mining Centre, near Kalgoorlie and an iron ore deposit near Newman, both in Western Australia. Mr Paul Ingram Non-Executive Director Qualifications Experience B.AppSc, AIMM, MICA Mr Ingram is a geologist with extensive experience in managing major mineral exploration programmes for several publicly listed companies and has been involved in the mining sector for over thirty years. He has designed and implemented innovative techniques for exploration in remote areas, and has managed projects in countries throughout Australia and east Asia. Mr Ingram has been a director of the following listed companies in the past three years: A-Cap Resources Limited since June 2009; Consolidated Global Investments Limited since September 2006; and Australian Pacific Coal Limited since March 2011 Page 30 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMDr Markus Elsasser Non-Executive Director Qualifications Experience PhD, Dr Markus Elsasser is a German financier and investor in the mineral resources industry. He is Head of the Elsasser family office ‘M. Elsasser & Cie AG 1971’ in Dusseldorf, Germany. Dr. Elsasser has previously been Director of Finance at the Dow Chemical Company in Germany. He has extensive General Management experience with former appointments as Managing Director in Australia and Singapore in the chemical and food industries. Dr Elsasser is a Director of Stellar Diamonds Plc, London and Stellar Resources Limited a company listed on the Australia Securities Exchange. Mr Aaron Hood Non-Executive Director Qualifications Experience B.Eng / B.Comm, MBA Mr Hood is the Chief Investment Officer for the Minderoo Group and is responsible for managing Minderoo’s existing investment portfolio, comprising mining, property, agriculture and industrial assets, and also corporate development opportunities. Prior to joining Minderoo, Mr Hood spent ten years in Sydney and Perth as executive director of a private equity firm with investments in mining services, oil and gas, manufacturing and retail. He is currently a director of the Scotch College Foundation (WA) and UWA Business School Ambassadorial Council and Chairman of Harvey Beef. Mr Hood is a Director of Vimy Resources Limited a company listed on the Australia Securities Exchange. COMPANY SECRETARY Mr James Cooper-Jones Qualifications Experience B.A / B.Com, SA Fin, GAIcert Over his career Mr Cooper-Jones has held various senior accounting and secretarial roles primarily with listed resource companies and has been involved in the listing of several companies on the ASX. IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 31 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMDIRECTORS’ REPORT (CONTINUED) DIRECTORS INTERESTS At the date of this report the Directors interests in shares of the Company are as follows: IMPACT MINERALS LIMITED Peter Unsworth 12,771,875 ordinary shares 4,008,000 options to acquire ordinary shares Michael Jones 6,800,000 ordinary shares 10,008,000 options to acquire ordinary shares Paul Ingram 438,635 ordinary shares 2,004,000 options to acquire ordinary shares Markus Elsasser 22,543,357 ordinary shares 2,000,000 options to acquire ordinary shares Aaron Hood - ordinary shares - options to acquire ordinary shares MEETINGS OF DIRECTORS During the financial year, 3 meetings of directors were held. Attendances by each director during the year were as follows: Peter J Unsworth Michael G Jones Paul Ingram Markus Elsasser Aaron Hood (Apt. 6 August 2015) Directors’ Meetings Number eligible to attend Number attended 3 3 3 3 - 3 3 3 3 - In addition a number of informal meetings and conference calls were held as and when required. OPTIONS – IMPACT MINERALS LIMITED As at the date of this report 87,150,000 options to acquire ordinary shares remained on issue as follows: Grant Date 20 Dec 2012 16 Jan 2013 14 Nov 2013 20 Dec 2012 16 Jan 2013 14 Nov 2013 06 Jan 2014 07 Aug 2015 Date of Expiry Exercise Price Number of shares under Option 30 Nov 2015 30 Nov 2015 30 Nov 2015 30 Nov 2016 30 Nov 2016 30 Nov 2016 30 Nov 2015 07 Aug 2018 $0.06 $0.06 $0.06 $0.10 $0.10 $0.10 $0.20 $0.0325 13,000,000 2,900,000 2,800,000 9,000,000 2,900,000 3,550,000 8,000,000 45,000,000 87,150,000 No person entitled to exercise an option had or has any right by virtue of the option to participate in any share issue of any other body corporate. There have been no unissued shares or interests under option of any controlled entity within the Consolidated Group during or since the end of the reporting period. For details of options issued to directors and executives as remuneration, refer to the remuneration report. During the year ended 30 June 2015 and since year end no shares were issued on the exercise of options. Page 32 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMINDEMNIFYING OFFICERS OR AUDITOR During or since the end of the financial year the Consolidated Group paid an insurance premium of $6,602 (2014: $7,394), to insure certain officers of the Consolidated Group. The officers of the Consoli- dated Group 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 officers in their capacity as officers of the Consolidated Group. The insurance policy does not contain details of the premium paid in respect of individual officers of the Consolidated Group. 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 Consolidated Group has not, during or since the financial period, indemnified or agreed to indemnify the auditor of the Consolidated Group or of any related body corporate against a liability incurred as such an auditor. PROCEEDINGS ON BEHALF OF THE COMPANY No person has applied for leave of Court to bring proceedings on behalf of the Consolidated Group or to intervene in any proceedings to which the Consolidated Group is a party for the purpose of taking responsibility on behalf of the Consolidated Group for all or any part of those proceedings. The Consolidated Group was not a party to any such proceedings during the year. AUDITOR’S INDEPENDENCE DECLARATION The lead auditor’s independence declaration for the year ended 30 June 2015 has been received and can be found on page 42 of the Directors report. REMUNERATION REPORT (AUDITED) Remuneration policy The remuneration policy of Impact Minerals Limited has been designed to align director and executive objectives with shareholder and business objectives by providing a fixed remuneration component and where appropriate offering specific long-term incentives. The Board of Impact Minerals Limited believes that the remuneration policy is appropriate and effective in its ability to attract and retain the best executives and directors to run and manage the Consolidated Group, as well as create goal congruence between directors, executives and shareholders. The Board’s policy for determining the nature and amount of remuneration for Directors and senior executives of the Consolidated Group is as follows: • The remuneration terms and conditions for the executive directors and other senior executives are developed by the Board of Directors. • All executives receive a base level of remuneration either in the form of consulting fees or as a salary (which is based on factors such as length of service and experience), superannuation and fringe benefits. • The Board of Directors reviews executive packages annually by reference to the Consolidated Group’s performance, executive performance and comparable information from industry sectors. Directors and executives are also entitled to participate in employee share and option arrangements. The directors and executives receive a superannuation guarantee contribution required by the government, which during the year was 9.50%, and do not receive any other retirement benefits. IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 33 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMDIRECTORS’ REPORT (CONTINUED) REMUNERATION REPORT (CONTINUED) All remuneration paid to directors and executives is valued at cost to the Consolidated Group and expensed. Options, where issued, are valued using the Black-Scholes methodology. The Board policy is to remunerate non-executive directors at market rates for time, commitment and responsibilities. The Board determines payments to the non-executive directors and reviews their remuneration annually, based on market practice, duties and accountability. Independent external advice is sought when required. The maximum aggregate amount of fees that can be paid to non-executive directors is subject to approval by shareholders at the Annual General Meeting. Performance conditions linked to remuneration fees for non-executive directors are not linked to the performance of the consolidated group. However, to align directors’ interests with shareholder interests, the directors are encouraged to hold shares in the company and are able to participate in employee share and option arrangements. KEY MANAGEMENT PERSONNEL REMUNERATION Employment details of members of Key Management Personnel and Other Executives Position Held as at 30 June 2015 and any Change during the Year 2015 Contract Details (Duration and Termination) Proportions of Elements of Remuneration Related to Performance Proportions of Elements of Remuneration Not Related to Performance Non- Salary Cash- based Incentives Shares/ Units Options/ Rights Fixed Salary/ Fees/ Shares Total % % % % % Group Key Management Personnel Mr P Unsworth Non- Executive Chairman Refer Note A. Dr M Jones Managing director Mr P Ingram Dr M Elsasser Non-executive director Non-executive director No fixed term. 3 months’ notice required on termination. Refer Note A. Refer Note A. Mr A Hood Non-executive director (appt 6 Aug 2015) Refer Note A. Mr J Cooper- Jones Company Secretary No fixed term. 1 months’ notice required on termination. Page 34 IMPACT MINERALS LTD ANNUAL REPORT 2015 - - - - - - - - - - - - 8% 7% 92% 100% 93% 100% 11% 89% 100% 11% 89% 100% - - - 7% 93% 100% Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PM REMUNERATION REPORT (CONTINUED) KEY MANAGEMENT PERSONNEL REMUNERATION Employment details of members of Key Management Personnel and Other Executives Position Held as at 30 June 2014 and any Change during the Year Contract Details (Duration and Termination) Proportions of Elements of Remuneration Related to Performance Proportions of Elements of Remuneration Not Related to Performance 2014 Non- Salary Cash- based Incentives Shares/ Units Options/ Rights Fixed Salary/ Fees/ shares % % % % Total % Group Key Management Personnel Mr P Unsworth* Chairman Refer Note A. Dr M Jones* Managing director Mr P Ingram Dr M Elsasser Mr A Hood Non-executive director Non-executive director Non-executive director (appt 6 Aug 2015) Mr J Cooper- Jones* Company Secretary No fixed term. 3 months’ notice required on termination. Refer Note A. Refer Note A. Refer Note A. No fixed term. 1 months’ notice required on termination. - - - - - - - - - - - - 22% 31% 78% 69% 100% 100% 79% 21% 100% 29% 71% 100% - - - 11% 89% 100% *Includes remuneration expenses related to Invictus Gold Limited Note A. The employment terms and conditions of non-executive board members (including the non- executive Chairman) are governed by the Constitution of the company. The terms and conditions of executive board members and Consolidated Group executives are formalised in contracts of employment. Other than as set out above, terms of employment require that the relevant company provide an executive contracted person with a minimum of one months’ notice prior to termination of contract. A contracted person deemed employed on a permanent basis may terminate their employment by providing at least 1 months’ notice. Termination payments are not payable on resignation or under the circumstances of unsatisfactory performance. There have been no changes in directors and executives subsequent to year-end. IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 35 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PM DIRECTORS’ REPORT (CONTINUED) REMUNERATION REPORT (CONTINUED) KEY MANAGEMENT PERSONNEL REMUNERATION 2015 Short term employee benefits Post- employ ment benefits Cash salary and fees $ Cash bonus $ Non- monetary benefits Other $ $ Super- annuation $ Long- term benefits Long service leave $ Share- based payments Shares Options $ $ Total $ - - - - - - - - - - - - - - - - - - - - - - - - - - - 6,175 - 1,188 - - - - - - 6,467 77,642 16,167 239,717 - 12,500 3,233 29,421 - 12,500 3,233 28,233 - - - - 7,363 - 25,000 29,100 375,013 13,181 13,181 - - - - 11,054 162,985 11,054 162,985 20,544 - 25,000 40,154 537,998 2014 Short term employee benefits Cash salary and fees $ Cash bonus $ Non- monetary benefits $ Other $ Post- employ ment benefits Super- annuation Long- term benefits Share- based payments Long service leave $ Options $ Total $ Name Directors P Unsworth M Jones P Ingram M Elsasser 65,000 223,550 12,500 12,500 A Hood (appt 6 Aug 2015 - Total Directors 313,550 Executives J Cooper-Jones 138,750 Total Executives 138,750 Total Remuneration 452,300 Name Directors P Unsworth* M Jones* P Ingram M Elsasser A Hood (appt 6 Aug 2015) 67,917 226,837 2,500 25,247 - Total Directors 322,501 Executives J Cooper-Jones* 137,813 Total Executives 137,813 Total Remuneration 460,314 - - - - - - - - - - - - - - - - - - - - - - - - - - - 6,282 - 231 - - 6,513 12,748 12,748 19,261 - - - - - - - - - 21,093 95,292 104,073 330,910 10,547 13,278 10,547 35,794 - - 146,260 475,274 18,832 169,393 18,832 169,393 165,092 644,667 *Includes remuneration expenses related to Invictus Gold Limited for full year. Page 36 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMREMUNERATION REPORT (CONTINUED) SHARE BASED PAYMENT Options Options granted by Impact Minerals to Directors and senior executives of the Consolidated Group are issued for no consideration, carry no dividend or voting rights and have varied terms. The terms and conditions of each grant of options affecting remuneration in this or future reporting periods are as follows: Impact Minerals Group Key Management Personnel Remun- eration Type Grant Date Number Reason for Grant Grant Value $ Percent- age vested/ paid during the year % Percent- age forfeited during the year % Percent- age remaining as unvested % P Unsworth Options 29.11.2012 2,000,000 22,600 P Unsworth Options 29.11.2012 2,000,000 21,400 M Jones M Jones P Ingram P Ingram Options 29.11.2012 5,000,000 56,500 Options 29.11.2012 5,000,000 53,500 Options 29.11.2012 1,000,000 11,300 Options 29.11.2012 1,000,000 10,700 M Elsasser Options 29.11.2012 1,000,000 11,300 M Elsasser Options 29.11.2012 1,000,000 10,700 J Cooper-Jones Options 16.01.2013 500,000 5,650 J Cooper-Jones Options 16.01.2013 500,000 5,350 J Cooper-Jones Options 14.11.2013 500,000 39,756 (a) (a) (a) (a) (a) (a) (a) (a) (a) (a) (a) - 100 - 100 - 100 - 100 - 100 100 - - - - - - - - - - - - - - - - - - - - - - Vesting date 30.11.2013 30.11.2014 30.11.2013 30.11.2014 30.11.2013 30.11.2014 30.11.2013 30.11.2014 30.11.2013 30.11.2014 30.11.2014 (a) Options were awarded as part of the Group’s incentive scheme for the retention of key management personnel. When exercisable, each option is convertible into one ordinary share. All options expire on the earlier of their expiry date or termination of the employee’s employment if not already vested at the discretion of the Directors. IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 37 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMDIRECTORS’ REPORT (CONTINUED) REMUNERATION REPORT (CONTINUED) SHARE BASED PAYMENT (Continued) Options And Rights Granted The following table discloses the value of options granted and vested, exercised or lapsed during the year: Options granted Options exercised Value at grant date Value at exercise date Options lapsed Value at time of lapse Total value of options granted, exercised and lapsed Value of options included in remuneration for the year Remuneration consisting of options during the year $ - - - - - $ - - - - - $ - - - - - $ - - - - - $ 6,467 16,167 3,233 3,233 11,054 % 8% 7% 11% 11% 7% 2015 Directors P Unsworth M Jones P Ingram M Elsasser Executives J Cooper-Jones Nil shares in the Company have been issued as a result of the exercise of remuneration options by key management personnel. KMP Options and Rights holdings The number of options over ordinary shares in the Company held during the financial year by each director of Impact Minerals Limited and other key management personnel (KMP) of the Consolidated Group, including their personally related parties, are set out below. Granted as remun- eration during the year Balance at start of the year Exercised during the year Other changes during the year Balance at the end of the year Remun- eration options Vested and Exercisable at end of year Remun- eration options unvested at end of year Impact Minerals Limited - 30 June 2015 Directors P Unsworth 4,008,000 M Jones P Ingram M Elsasser A Hood (appt 6 Aug 2015) Executives 10,008,000 2,000,000 2,000,000 - J Cooper Jones 1,500,000 Total 19,516,000 - - - - - - - - - - - - - - - - - - - - - 4,008,000 4,008,000 10,008,000 10,008,000 2,000,000 2,000,000 2,000,000 2,000,000 - - 1,500,000 1,500,000 19,516,000 19,516,000 - - - - - - - Page 38 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMKMP Options and Rights holdings (continued) Granted as remun- eration during the year Balance at start of the year Exercised during the year Other changes during the year Balance at the end of the year Remun- eration options Vested and Exercisable at end of year Remun- eration options unvested at end of year Impact Minerals Limited - 30 June 2014 Directors P Unsworth 4,000,000 M Jones P Ingram M Elsasser A Hood (apt 6 Aug 2015) Executives 10,000,000 2,000,000 2,000,000 - - - - - - J Cooper-Jones 1,150,000 500,000 Total 19,150,000 500,000 - - - - - - - 2015 KMP Shareholdings Number of Shares held by Key Management Personnel 8,000 4,008,000 2,008,000 2,000,000 8,000 10,008,000 5,008,000 5,000,000 - - - 2,000,000 1,000,000 1,000,000 2,000,000 1,000,000 1,000,000 - - - (150,000) 1,500,000 500,000 1,000,000 (134,000) 19,516,000 9,516,000 10,000,000 Impact Minerals Limited Balance 1.7.2014 Received as Compensation Options Exercised Net Change Other Balance 30.6.2015 Directors P Unsworth M Jones P Ingram M Elsasser 12,771,875 6,800,000 - 22,117,222 A Hood (appt 6 August 2015) - - - 426,135 426,135 - Total Directors Executives J Cooper-Jones Total executives Total shares 41,689,097 852,270 - - - - 41,689,097 852,270 - - - - - - - - - - - 12,500 - - 12,771,875 6,800,000 438,635 22,543,357 - 12,500 42,553,867 - - - - 12,500 42,553,867 IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 39 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMDIRECTORS’ REPORT (CONTINUED) REMUNERATION REPORT (CONTINUED) SHARE BASED PAYMENT (Continued) 2014 KMP Shareholdings Number of Shares held by Key Management Personnel Impact Minerals Limited Balance 1.7.2013 Received as Compensation Options Exercised Net Change Other Balance 30.6.2014 Directors P Unsworth M Jones P Ingram M Elsasser 11,348,462 6,465,000 - 22,117,222 A Hood (appt 6 August 2015) - Total Directors Executives J Cooper-Jones Total executives Total shares 39,930,684 - - 39,930,684 - - - - - - - - - - - - - - - - - - 1,423,413 12,771,875 335,000 6,800,000 - - - - 22,117,222 - 1,758,413 41,689,097 - - - - 1,758,413 41,689,097 Shares were issued to directors in lieu of director fees during the year. The fair value of these shares issued was determined based on the remuneration for the directors as approved at the AGM held on 28.11.2014 and the weighted average fair value of those equity instruments, determined by reference to market price, was $0.022. The assessed fair value at grant date of options granted to individuals is allocated equally over the period from grant date to vesting date, (and the amount included in the remuneration tables above). Fair values at grant date are determined using a Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option. OTHER TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL OF THE GROUP There were no other transactions with KMP or their related parties other than those disclosed above relating to equity and compensation other than in accordance with normal employee, customer or supplier relationships on terms no more favourable than those reasonably expected under arm’s length dealings with unrelated persons. End of remuneration report. The Report of the Directors, incorporating the Remuneration Report is signed in accordance with a resolution of the Board of Directors. Dr Michael G Jones Managing Director Dated this 12 August 2015 Page 40 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PM   Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PM To The Board of Directors As lead audit director for the audit of the financial statements of Impact Minerals Limited for the financial year ended 30 June 2015, I declare that to the best of my knowledge and belief, there have been no contraventions of: the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and any applicable code of professional conduct in relation to the audit. Yours faithfully BENTLEYS MARK DELAURENTIS CA Chartered Accountants Director DATED at PERTH this 12th day of August 2015 CONSOLIDATED STATEMENT Of PROfIT OR LOSS AND OTHER COMPREHENSIvE INCOME fOR YEAR ENDED 30 JUNE 2015 Interest Income Gain on sale of financial asset Other Income Corporate and administration expenses Depreciation expenses Employee benefits expenses Impairment of exploration expenditure Occupancy expenses Loss on disposal of controlled entities Loss before income tax Income tax expense (Loss) for the year Note 2 2 3 3 11 3 25 4 3 2015 $ 14,967 - 2014 $ 33,748 - 1,188,833 723,975 (699,333) (1,223,579) (4,075) (532,786) (12,918) (823,188) (4,316,428) (6,576,618) (119,055) (289,698) (95,603) - (4,757,575) (7,974,183) - - (4,757,575) (7,974,183) Other comprehensive income: Items that might be reclassified to Profit or loss Exchange differences on translating foreign controlled entities Other comprehensive income for the year, net of tax 432,939 432,939 (500,620) (500,620) Total comprehensive income for the year (4,324,636) (8,474,803) Total (Loss) for the year attributable to: Members of the parent entity Non-controlling interest Total comprehensive income attributable to: Members of the parent entity Non-controlling interest (4,757,575) (7,085,289) - (888,894) (4,757,575) (7,974,183) (4,324,636) (7,584,147) - (890,656) (4,324,636) (8,474,803) Basic earnings per share (cents per share) 7 (0.85) (1.88) The accompanying notes form part of these financial statements. IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 43 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMCONSOLIDATED STATEMENT Of fINANCIAL POSITION AS AT 30 JUNE 2015 ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables TOTAL CURRENT ASSETS NON-CURRENT ASSETS Plant and equipment Exploration expenditure Other non-current assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Provisions TOTAL CURRENT LIABILITIES NET ASSETS EQUITY Issued capital Option reserve Foreign currency translation reserve Transactions with non-controlling interest Accumulated losses Parent interest Non-controlling interest TOTAL EQUITY The accompanying notes form part of these financial statements. Note 2015 $ 2014 $ 8 9 10 11 12 13 14 15 15 15 571,981 84,016 750,909 270,897 655,997 1,021,806 2,978 6,844 6,526,545 7,714,139 32,849 126,417 6,562,373 7,847,400 7,218,370 8,869,206 153,826 131,726 285,552 219,955 84,966 304,921 6,932,818 8,564,285 31,245,003 28,653,052 736,506 635,288 (520,836) (953,775) (1,161,069) (1,161,069) (23,366,786) (18,609,211) 6,932,818 8,564,285 - - 6,932,818 8,564,285 Page 44 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMCONSOLIDATED STATEMENT Of CHANGES IN EQUITY fOR YEAR ENDED 30 JUNE 2015 Foreign currency translation reserve $ Options reserve $ Issued Capital $ Transact- ions with Non- Controlling Interest $ Accu- mulated losses $ Non- Control- ling Interest $ Balance at 1 July 2014 28,653,052 (953,775) 635,288 (1,161,069) (18,609,211) Loss for the year Other Comprehensive Income Exchange differences on translation of foreign operations Total other comprehensive income for the year Transactions with owners in their capacity as owners Shares Issued Share issue costs Fair value of options issued Fair value of options expired Balance at 30 June 2015 - - - - 432,939 432,939 2,606,726 (14,775) - - - - - - - - - - - 101,218 - (4,757,575) - - - - - - - - - - - 31,245,003 (520,836) 736,506 (1,161,069) (23,366,786) - - - - - - - - Total Equity $ 8,564,285 (4,757,575) 432,939 432,939 2,606,726 (14,775) 101,218 - 6,932,818 IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 45 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMCONSOLIDATED STATEMENT Of CHANGES IN EQUITY fOR YEAR ENDED 30 JUNE 2015 (CONTINUED) Foreign currency translation reserve Options reserve Issued Capital Transact- ions with Non- Controlling Interest Accu- mulated losses Non- Control- ling Interest $ $ $ $ $ $ Total Equity $ Balance at 1 July 2013 24,366,377 (454,917) 353,638 Loss for the year - - Other Comprehensive Income Exchange differences on translation of foreign operations Total other comprehensive income for the year Transactions with owners in their capacity as owners Purchase of shares from Non-controlling interest Shares Issued Share issue costs Fair value of options issued Fair value of options expired Balance at 30 June 2014 - - - - (1,161,069) - - - (11,705,113) 1,087,255 13,647,240 (7,085,289) (888,894) (7,974,183) - - - - - - (1,762) (500,620) (1,762) (500,620) (204,415) (1,365,484) - 4,339,525 - (52,850) 7,816 470,657 - - - - - - 462,841 (181,191) - 181,191 - - - (498,858) - (498,858) - 4,339,525 (52,850) - - - - - - - 28,653,052 (953,775) 635,288 (1,161,069) (18,609,211) - 8,564,285 The accompanying notes form part of these financial statements. Page 46 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PM CONSOLIDATED STATEMENT Of CASH fLOwS fOR YEAR ENDED 30 JUNE 2015 CASH FLOWS FROM OPERATING ACTIVITIES Payments to suppliers and employees Payments for exploration Interest received R&D Tax Rebate Note 2015 $ 2014 $ (1,238,570) (2,796,090) (2,717,359) (2,672,530) 14,967 1,188,833 33,748 723,975 Net cash used in operating activities 18 (2,752,129) (4,710,897) CASH FLOWS FROM INVESTING ACTIVITIES Payments for property, plant and equipment Proceeds from the sale of financial assets Net cash outflow arising on acquisition Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares Share issue costs Net cash provided by financing activities Net increase / (decrease) in cash held Cash at beginning of financial year Cash at end of financial year The accompanying notes form part of these financial statements. - - - - - - - - 2,587,976 3,000,000 (14,775) (52,850) 2,573,201 2,947,150 8 8 (178,928) (1,763,747) 750,909 571,981 2,514,656 750,909 IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 47 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTES TO THE CONSOLIDATED fINANCIAL STATEMENTS fOR THE YEAR ENDED 30 JUNE 2015 These consolidated financial statements and notes represent those of Impact Minerals Limited and its controlled entities (Consolidated Group). The separate financial statements of the parent entity, Impact Minerals Limited, have not been presented within this financial report as permitted by the Corporations Act 2001. NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES Basis of Preparation The financial statements are a general purpose financial report that has been prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements 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. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless otherwise stated. The financial statements have been prepared on an accruals basis and are based on historical costs, modified where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. The accounting policies set out below have been consistently applied to all years presented. Going Concern The financial report has been prepared on the going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and the settlement of liabilities in the ordinary course of business. The Consolidated Group incurred a loss for the year of ($4,757,575) (2014: $7,974,183) and net cash outflows from operating activities of ($2,752,129) (2014: Cash outflows of $4,710,897). As at 30 June 2015, the Consolidated Group had a working capital surplus of $370,445 (2014: surplus of $716,885). The directors have prepared a cash flow forecast, which indicates that the Group will have sufficient cash flows to meet all commitments and working capital requirements for the 12 month period from the date of signing this financial report. Based on the cash flow forecasts and other factors referred to above, the directors are satisfied that the going concern basis of preparation is appropriate because: • The Directors have an appropriate plan to raise additional funds as and when it is required. In light of the Group’s current exploration projects, the Directors believe that the additional capital required can be raised in the market. • On 16 July 2015, the company signed a term sheet with Squadron Resources Pty Ltd which will provide funding of up to $7.5 million. The initial funding of $3 million comprises a $1 million placement of shares at 2.1 cents per share and $2 million interest free convertible note with a maturity period of 3 years. The finalisation of these transactions is subject to the legal, binding and formal documentation being signed and shareholder approval for the $1 million placement. Further details of this arrangement is set out in Note 26. Page 48 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) • The Directors have an appropriate plan to contain certain operating and exploration expenditure if appropriate funding is unavailable. Should the Group not achieve the matters set out above, there is material uncertainty whether the Group will continue as a going concern and therefore whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report. The financial report does not contain any adjustments relating to the recoverability and classification of recorded assets or to the amounts or classification of recorded assets or liabilities that might be necessary should the Group not be able to continue as a going concern. Principles of Consolidation The consolidated financial statements incorporate the assets, liabilities and results of entities controlled by Impact Minerals Limited at the end of the reporting period. A controlled entity is any entity over which Impact Minerals Limited has the ability and right to govern the financial and operating policies so as to obtain benefits from the entity’s activities. A list of controlled entities is contained in Note 23 to the financial statements. All controlled entities have a 30 June financial year-end. All inter-company balances and transactions between entities in the Consolidated Group, including any unrealised profits or losses, have been eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistencies with those policies applied by the parent entity. Where controlled entities have entered or left the Consolidated Group during the year, their operating results have been included/excluded from the date control was obtained or until the date control ceased. Non-controlling interests, being the equity in a subsidiary not attributable, directly or indirectly, to a parent, are reported separately within the equity section of the Consolidated Statement of Financial Position and Statement of Profit or Loss and other comprehensive income. The non-controlling interests in the net assets comprise their interests at the date of the original business combination and their share of changes in equity since that date. Business Combinations Business combinations occur where an acquirer obtains control over one or more businesses and results in the consolidation of its assets and liabilities. A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities or businesses under common control. The acquisition method requires that for each business combination, one of the combining entities must be identified as the acquirer (ie parent entity). The business combination will be accounted for as at the acquisition date, which is the date that control over the acquiree is obtained by the parent entity. At this date, the parent shall recognise, in the consolidated accounts, and subject to certain limited exceptions, the fair value of the identifiable assets acquired and liabilities assumed. In addition, contingent liabilities of the acquiree will be recognised where a present obligation has been incurred and their fair value can be reliably measured. All transaction costs incurred in relation to the business combination are expensed to the Statement of Profit or Loss and other comprehensive income. IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 49 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (a) Income Tax The income tax expense (revenue) for the year comprises current income tax expense (income) and deferred tax expense (income). Current income tax expense charged to profit or loss is the tax payable on taxable income. Current tax liabilities (assets) are measured at the amounts expected to be paid to (recovered from) the relevant taxation authority. Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well as unused tax losses. Current and deferred income tax expense (income) is charged or credited outside profit or loss when the tax relates to items that are recognised outside profit or loss. Except for business combinations, no deferred income tax is recognised from the initial recognition of an asset or liability where there is no effect on accounting or taxable profit or loss. Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled and their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability. Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised. Where temporary differences exist in relation to investments in subsidiaries, branches, associates and joint ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be controlled and it is not probable that the reversal will occur in the foreseeable future. Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are offset where: (a) a legally enforceable right of set-off exists; and (b) the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in which significant amounts of differed tax assets or liabilities are expected to be recovered or settled. (b) Plant and Equipment Each class of plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment losses. 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 expected net cash flows have been discounted to their present values in determining recoverable amounts. Page 50 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2015NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the Statement of Profit or Loss and other comprehensive income during the financial period in which they are incurred. Depreciation The depreciable amount of all fixed assets is depreciated on a straight-line basis over their useful lives to the Consolidated Group commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements. The depreciation rates used for each class of depreciable assets are: Class of Fixed Asset Depreciation Rate Motor vehicles Plant and equipment Leasehold improvements 22.5 % 37.5 % 10.0% The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the Statement of Profit or Loss and other comprehensive income. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings. (c) Exploration, Evaluation and Development Expenditure Exploration, evaluation and development 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 will be 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. Costs of site restoration are provided over the life of the project from when exploration commences and are included in the costs of that stage. Where relevant, site restoration costs include the dismantling and removal of mining plant, equipment and building structures, waste removal, and rehabilitation of the site in accordance with clauses of the mining permits. Such costs have been determined using estimates of future costs, current legal requirements and technology on an undiscounted basis. IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 51 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTES TO THE CONSOLIDATED fINANCIAL STATEMENTS fOR THE YEAR ENDED 30 JUNE 2015 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Any changes in the estimates for the costs are accounted for on a prospective basis. In determining the costs of site restoration, there is uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation. Accordingly the costs have been determined on the basis that the restoration will be completed within one year of abandoning the site. (d) Financial Instruments Initial Recognition and Measurement Financial instruments, including financial assets and financial liabilities, are recognised when the Consolidated Group becomes a party to the contractual provisions of the instrument. Trade date accounting is adopted for financial assets that are delivered within timeframes established by marketplace convention. Financial instruments are initially measured at fair value plus transaction costs where the instrument is not classified as at fair value through profit or loss. Transaction costs related to instruments classified as at fair value through profit or loss are expensed to profit or loss immediately. Financial instruments are classified and measured as set out below. Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar instruments and option pricing models. Classification and Subsequent Measurement Finance instruments are subsequently measured at either of fair value, amortised cost using the effective interest rate method, or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted. Amortised cost is the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any reduction for impairment, and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest method. Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar instruments and option pricing models. The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an income or expense in profit or loss. The Consolidated Group does not designate any interests in subsidiaries, associates or joint venture entities as being subject to the requirements of Accounting Standards specifically applicable to financial instruments. Page 52 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) i. Financial assets at fair value through profit or loss Financial assets are classified at “fair value through profit or loss” when they are held for trading for the purpose of short term profit taking, where they are derivatives not held for hedging purposes, or designated as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Realised and unrealised gains and losses arising from changes in fair value are included in profit or loss in the period in which they arise. ii. Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost using the effective interest rate method. Loans and receivables are included in current assets except those which are expected to mature within 12 months after the end of the reporting period. iii. Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the Consolidated Group‘s intention to hold these investments to maturity. They are subsequently measured at amortised cost using the effective interest rate method. Held to maturity investments are included in non-current assets where they are expected to mature within 12 months after the end of the reporting period. All other investments are classified as current assets. iv. Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are either designated as such or that are not classified in any of the other categories. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments. They are subsequently measured at fair value with changes in such fair value (i.e. gains or losses) recognised in other comprehensive income (except for impairment losses and foreign exchange gains and losses). When the financial asset is derecognised, the cumulative gain or loss pertaining to that asset previously recognised in other comprehensive income is reclassified into profit or loss. Available for sale financial assets are included in non-current assets except those which are expected to mature within 12 months after the end of the reporting period. All other financial assets are classified as current assets. v. Financial Liabilities Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost using the effective interest rate method. IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 53 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTES TO THE CONSOLIDATED fINANCIAL STATEMENTS fOR THE YEAR ENDED 30 JUNE 2015 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Impairment At the end of each reporting period, the Consolidated Group assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether impairment has arisen. Impairment losses are recognised in the profit or loss. Also, any cumulative decline in Fair Value previously recognised in other comprehensive income is reclassified to profit or loss at this point. Derecognition Financial assets are derecognised where the contractual rights to receipt of cash flows expire or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expire. The difference between the carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss. Financial Guarantees Where material, financial guarantees issued, which require the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due, are recognised as a financial liability at fair value on initial recognition. The guarantee is subsequently measured at the higher of the best estimate of the obligation and the amount initially recognised less, when appropriate, cumulative amortisation in accordance with AASB 118: Revenue. Where the entity gives guarantees in exchange for a fee, revenue is recognised under AASB 118. The fair value of financial guarantee contracts has been assessed using a probability weighted discounted cash flow approach. The probability has been based on: – the likelihood of the guaranteed party defaulting in a year period; – the proportion of the exposure that is not expected to be recovered due to the guaranteed party defaulting; and – the maximum loss exposed if the guaranteed party were to default. (e) Impairment of Assets At the end of each reporting period, the Consolidated Group reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the Statement of Profit or Loss and other comprehensive income. Impairment testing is performed annually for goodwill and intangible assets with indefinite lives. Where it is not possible to estimate the recoverable amount of an individual asset, the Consolidated Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Page 54 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (f) Interests in Joint Ventures The Consolidated Group’s share of the assets, liabilities, revenue and expenses of joint venture operations are included in the appropriate items of the consolidated financial statements. Details of the Consolidated Group’s interests are shown at Note 24. Where the Consolidated Group contributes assets to the joint venture or if the Consolidated Group purchases assets from the joint venture, only the portion of the gain or loss that is not attributable to the Consolidated Group‘s share of the joint venture shall be recognised. The Consolidated Group recognises the full amount of any loss when the contribution results in a reduction in the net realisable value of current assets or an impairment loss. (g) Foreign Currency Transactions and Balances Functional and presentation currency The functional currency of each of the group’s entities is measured using the currency of the primary economic environment in which that entity operates. The consolidated financial statements are presented in Australian dollars which is the parent entity’s functional and presentation currency. Transaction and balances Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items measured at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at fair value are reported at the exchange rate at the date when fair values were determined. Exchange differences arising on the translation of monetary items are recognised in profit or loss. Exchange differences arising on the translation of non-monetary items are recognised directly in other comprehensive income to the extent that the gain or loss is recognised in other comprehensive income, otherwise the exchange difference is recognised in the Profit or Loss. Group companies The financial results and position of foreign operations whose functional currency is different from the group’s presentation currency are translated as follows: – assets and liabilities are translated at year-end exchange rates prevailing at the end of the reporting period; – income and expenses are translated at average exchange rates for the period; and – accumulated losses are translated at the exchange rates prevailing at the date of the transaction. Exchange differences arising on translation of foreign operations with functional currencies other than Australian Dollars are recognised in other comprehensive income and included in the foreign currency translation reserve in the statement of financial position. These differences are recognised in profit or loss in the period in which the operation is disposed of. IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 55 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTES TO THE CONSOLIDATED fINANCIAL STATEMENTS fOR THE YEAR ENDED 30 JUNE 2015 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (h) Employee Benefits Provision is made for the Consolidated Group‘s liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may satisfy vesting requirements. Those cash flows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cash flows. Equity-settled Compensation The fair value of options granted by the Consolidated Group to employees is recognised as an employee benefit expense with a corresponding increase in equity. The fair value is measured at grant date and recognised over the period during which the employees become unconditionally entitled to the options. The fair value at grant date is determined using a Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date, the expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option. Upon the exercise of options, the balance of the option reserve relating to those options is transferred to share capital and the proceeds received, net of any directly attributable transaction costs, are credited to share capital. (i) Cash and Cash Equivalents Cash and cash equivalents include cash on hand, and deposits available on demand with banks. (j) Revenue and other income Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. (k) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST. Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. (l) Investments in Associates Associates are companies in which the Consolidated Group has significant influence through holding, directly or indirectly, 20% or more of the voting power of the Consolidated Group. Investments in associates are accounted for in the financial statements by applying the equity method of accounting, whereby the investment is initially recognised at cost and adjusted thereafter for the post-acquisition change in the Consolidated Group’s share of net assets of the associate company. In addition, the Consolidated Group’s share of the profit or loss of the associate company is included in the Consolidated Group’s profit or loss. Page 56 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The carrying amount of the investment includes goodwill relating to the associate. Any discount on acquisition whereby the Consolidated Group’s share of the net fair value of the associate exceeds the cost of investment is recognised in profit or loss in the period in which the investment is acquired. Profits and losses resulting from transactions between the Consolidated Group and the associate are eliminated to the extent of the Consolidated Group’s interest in the associate. When the Consolidated Group’s share of losses in an associate equals or exceeds its interest in the associate, the Consolidated Group discontinues recognising its share of further losses unless it has incurred legal or constructive obligations or made payments on behalf of the associate. When the associate subsequently makes profits, the Consolidated Group will resume recognising its share of those profits once its share of the profits equals the share of the losses not recognised. (m) Comparative Figures When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. (n) Critical Accounting Estimates and Judgements The directors evaluate estimates and judgements incorporated into the financial statements based on historical knowledge and the best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Consolidated Group. Key Estimates — Impairment The Consolidated Group assesses impairment at each reporting date by evaluating conditions specific to the Consolidated Group that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value-in-use calculations performed in assessing recoverable amounts incorporate a number of key estimates. Key Estimate – Taxation Balances disclosed in the financial statements and the notes thereto, related to taxation, are based on the best estimates of directors. These estimates take into account both the financial performance and position of the Consolidated Group as they pertain to current income taxation legislation, and the directors understanding thereof. No adjustment has been made for pending or future taxation legislation. The current income tax position represents the directors’ best estimate, pending an assessment by the Australian Taxation Office. Key Estimate - Shared-based payment transactions The Consolidated Group measures the cost of equity settled share based payments at fair value at the grant date using the Black-Scholes model taking into account the exercise price, the term of the option, the impact of dilution, the share price at grant date, the expected volatility of the underlying share, the expected dividend yield and risk free interest rate for the term of the option. The total expenses in share based transactions for the Consolidated Group for the year ended 30 June 2015 was $101,219 (2014: $462,841). IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 57 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTES TO THE CONSOLIDATED fINANCIAL STATEMENTS fOR THE YEAR ENDED 30 JUNE 2015 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Key Judgment (i) Environmental Issues Balances disclosed in the financial statements and notes thereto are not adjusted for any pending or enacted environmental legislation, and the directors understanding thereof. At the current stage of the Consolidated Group‘s development and its current environmental impact the directors believe that such treatment is reasonable and appropriate. (ii) Capitalized exploration and evaluation expenditure The Consolidated Group’s accounting policy is stated at 1(d). A regular review is undertaken of each area of interest to determine the reasonableness of the continuing carrying forward of costs in relation to that area of interest. Refer to Note 11. (o) Application of new and revised accounting standards New and revised AASB’s affecting amounts reported and/or disclosures in the financial statements In the current year, the Group has applied a number of amendments to AASB’s and a new interpretation issued by the Australian Accounting Standards Board (AASB) that is mandatorily effective from an accounting period on or after 1 July 2014. The application of these amendments and interpretation does not have any material impact on the group’s consolidated financial statements. Standards and Interpretations in issue not yet adopted At the date of authorisation of the financial statements, the Standards and Interpretations that were issued but not yet effective are listed below. Page 58 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Standard/Interpretation Effective for annual reporting periods beginning on or after Expected to be initially applied in the financial year ending AASB 9 ‘Financial Instruments’, and the relevant amending standards 1 January 2018 30 June 2019 AASB 15 ‘Revenue from Contracts with Customers’ and AASB 2014-5 ‘Amendments to Australian Accounting Standards arising from AASB 15’ 1 January 2017 30 June 2018 AASB 2014-3 ‘Amendments to Australian Accounting Standards – Accounting for Acquisitions of Interests in Joint Operations’ 1 January 2016 30 June 2017 AASB 2014-4 ‘Amendments to Australian Accounting Standards – Clarification of Acceptable Methods of Depreciation and Amortisation’ 1 January 2016 30 June 2017 AASB 2014-6 ‘Amendments to Australian Accounting Standards – Agriculture: Bearer Plants’ 1 January 2016 30 June 2017 AASB 2014-9 ‘Amendments to Australian Accounting Standards – Equity Method in Separate Financial Statements’ 1 January 2016 30 June 2017 AASB 2014-10 ‘Amendments to Australian Accounting Standards – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture’ AASB 2015-1 ‘Amendments to Australian Accounting Standards – Annual Improvements to Australian Accounting Standards 2012-2014 Cycle’ 1 January 2016 30 June 2017 1 January 2016 30 June 2017 AASB 2015-2 ‘Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101’ 1 January 2016 30 June 2017 AASB 2015-3 ‘Amendments to Australian Accounting Standards arising from the Withdrawal of AASB 1031 Materiality’ 1 July 2015 30 June 2016 AASB 2015-4 ‘Amendments to Australian Accounting Standards – Financial Reporting Requirements for Australian Groups with a Foreign Parent’ 1 July 2015 30 June 2016 AASB 2015-5 ‘Amendments to Australian Accounting Standards – Investment Entities: Applying the Consolidation Exception’ 1 January 2016 30 June 2017 Note that the following new Standards and Interpretations are not applicable for the Group but are relevant for the period: AASB 14 ‘Regulatory Deferral Accounts’ and AASB 2014-1 ‘Amendments to Australian Accounting Standards – Part D: ’Consequential Amendments arising from AASB 14’ is not applicable to the Group as the Group is not a first-time adopter of Australian Accounting Standards. AASB 1056 ‘Superannuation Entities’ is not applicable to the Group as the Group is not a superannuation entity. AASB 2015-6 ‘Amendments to Australian Accounting Standards – Extending Related Party Disclosures to Not-for-Profit Public Sector Entities’ is not applicable to the Group as the Group is a for-profit entity. IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 59 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (p) Fair Value of Assets and Liabilities The Group measures some of its assets and liabilities at fair value on either a recurring or non- recurring basis, depending on the requirements of the applicable Accounting Standard. Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability in an orderly (i.e. unforced) transaction between independent, knowledgeable and willing market participants at the measurement date. As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine fair value. Adjustments to market values may be made having regard to the characteristics of the specific asset or liability. The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data. To the extent possible, market information is extracted from either the principal market for the asset or liability (i.e. the market with the greatest volume and level of activity for the asset or liability) or, in the absence of such a market, the most advantageous market available to the entity at the end of the reporting period (i.e. the market that maximises the receipts from the sale of the asset or minimises the payments made to transfer the liability, after taking into account transaction costs and transport costs). For non-financial assets, the fair value measurement also takes into account a market participant’s ability to use the asset in its highest and best use or to sell it to another market participant that would use the asset in its highest and best use. The fair value of liabilities and the entity’s own equity instruments (excluding those related to share-based payment arrangements) may be valued, where there is no observable market price in relation to the transfer of such financial instruments, by reference to observable market information where such instruments are held as assets. Where this information is not available, other valuation techniques are adopted and, where significant, are detailed in the respective note to the financial statements. Valuation techniques In the absence of an active market for an identical asset or liability, the Group selects and uses one or more valuation techniques to measure the fair value of the asset or liability, The Group selects a valuation technique that is appropriate in the circumstances and for which sufficient data is available to measure fair value. The availability of sufficient and relevant data primarily depends on the specific characteristics of the asset or liability being measured. The valuation techniques selected by the Group are consistent with one or more of the following valuation approaches: Market approach: valuation techniques that use prices and other relevant information generated by market transactions for identical or similar assets or liabilities. Income approach: valuation techniques that convert estimated future cash flows or income and expenses into a single discounted present value. Cost approach: valuation techniques that reflect the current replacement cost of an asset at its current service capacity. Page 60 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2015NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use when pricing the asset or liability, including assumptions about risks. When selecting a valuation technique, the Group gives priority to those techniques that maximise the use of observable inputs and minimise the use of unobservable inputs. Inputs that are developed using market data (such as publicly available information on actual transactions) and reflect the assumptions that buyers and sellers would generally use when pricing the asset or liability are considered observable, whereas inputs for which market data is not available and therefore are developed using the best information available about such assumptions are considered unobservable. Fair value hierarchy AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which categorises fair value measurements into one of three possible levels based on the lowest level that an input that is significant to the measurement can be categorised into as follows: Level 1 Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly Level 3 Measurements based on unobservable inputs for the asset or liability. The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data. If all significant inputs required to measure fair value are observable, the asset or liability is included in Level 2. If one or more significant inputs are not based on observable market data, the asset or liability is included in Level 3. The Group would change the categorisation within the fair value hierarchy only in the following circumstances: (i) if a market that was previously considered active (Level 1) became inactive (Level 2 or Level 3) or vice versa; or (ii) if significant inputs that were previously unobservable (Level 3) became observable (Level 2) or vice versa. When a change in the categorisation occurs, the Group recognises transfers between levels of the fair value hierarchy (i.e. transfers into and out of each level of the fair value hierarchy) on the date the event or change in circumstances occurred. IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 61 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTE 2: REVENUE AND OTHER INCOME Interest revenue from financial institutions R&D Tax Rebate Total revenue NOTE 3: LOSS FOR THE YEAR Loss before income tax includes the following specific expenses: Employee benefits expense Salary and wages Superannuation Share based payments Directors Fees Rental expense on operating leases Rental expense Depreciation expenses Depreciation NOTE 4: INCOME TAX EXPENSE Note 2015 $ 14,967 1,188,833 1,203,800 2014 $ 33,748 723,975 757,723 2015 $ 2014 $ 279,221 37,346 101,219 115,000 532,786 232,854 26,252 470,657 93,425 823,188 119,055 95,603 4,075 4,075 12,918 12,918 2015 $ 2014 $ a. The components of tax expense comprise: Deferred income tax expense included in income tax expense comprises: Decrease (Increase) in deferred tax assets (Decrease) Increase in deferred tax liabilities Income tax expense reported in the Statement of Profit or Loss and other comprehensive income (768,722) 768,722 771,955 (771,955) - - Page 62 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2015NOTE 4: INCOME TAX EXPENSE (CONTINUED) b. The prima facie tax on loss from ordinary activities before income tax is reconciled to the income tax as follows: Profit from ordinary activities before income tax expense (4,757,575) (7,974,183) Prima facie tax benefit on profit from ordinary activities before income tax at 30% (2014: 30%) (1,427,273) (2,392,255) 2015 $ 2014 $ Tax effect of permanent differences: Share based payments Non-deductible expenses Gain on disposal of subsidiary Impact of subsidiary for the year Share of associates loss Option reserve adjustment Impairment of loans to subsidiary Overs and unders from prior years Unrecognised temporary differences: Unrecognised temporary differences in equity Expenditure subject to research & development offset Tax losses not recognised / (recognised) Capital losses not recognised / (recognised) Impairment of exploration expenditure Government grant received NCI adjustment Foreign exploration expenditure Income tax expense/(benefit) on pre-tax profit c. Deferred tax assets and (liabilities) are attributable to the following: Capital raising costs Creditors Exploration expenditure Plant and equipment Receivables Provisions 32,240 3,644 123,920 235 - - - - - - - - 12,989 - 84,469 303,245 - - 674,644 (384,916) 42,593 (265) - - 134,137 - 1,294,928 1,932,732 (355,505) (215,694) - - 35,176 100,956 - - 88,782 8,085 149,697 5,363 (1,957,964) (1,189,242) 9,388 - 27,833 11,633 - 18,196 Tax losses recognised to the extent of deferred tax liabilities 1,823,876 1,004,353 - - The balance of potential deferred tax assets attributable to tax losses carried forward of $4,079,479 (2014: $4,611,339) and other timing differences of $nil (2014: nil) in respect of the Consolidated Group have not been brought to account because the Directors do not believe it is appropriate to regard realisation of future tax benefit as probable. All unused tax losses were incurred by Australian entities. IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 63 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTE 5: INTERESTS OF KEY MANAGEMENT PERSONNEL (KMP) Refer to the Remuneration Report contained in the Directors’ Report for details of the remuneration paid or payable and options issued to each member of the Consolidated Group’s key management personnel for the year ended 30 June 2015. The totals of remuneration paid to KMP of the Company and the Consolidated Group during the year are as follows. Short-term employee benefits Post-employment benefits Share-based payments NOTE 6: AUDITORS’ REMUNERATION Remuneration of the auditor of the Consolidated Group for: – auditing or reviewing the financial report 2015 $ 452,300 20,544 65,154 537,998 2014 $ 460,314 19,261 165,092 644,667 29,000 29,000 32,000 32,000 NOTE 7: EARNINGS PER SHARE The calculation of basic earnings per share at 30 June 2015 was based on the loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding during the financial year, and was calculated as follows: a. Reconciliation of earnings to profit or loss Earnings used to calculate basic EPS (4,757,575) (7,974,183) No. No. b. Weighted average number of ordinary shares outstanding during the year used in calculating basic EPS 562,954,441 423,662,463 The diluted earnings per share have not been calculated as the company’s potential ordinary shares, being its options granted, are not considered dilutive as the conversion of these options will result in a decreased net loss per share. Page 64 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2015NOTE 8: CASH AND CASH EQUIVALENTS Cash at bank and in hand Cash at Bank – at call account 2015 $ 30,443 541,538 571,981 2014 $ 466,001 284,908 750,909 Cash at bank earns interest at floating rates based on daily bank deposit rates. Short term deposits are made for varying periods of between one day and three months, depending on the immediate cash flow requirements of the Consolidated Group, and earn interest at the respective short-term deposit rates. Reconciliation of cash Cash at the end of the financial year as shown in the cash flow statement is reconciled to items in the statement of financial position as follows: Cash and cash equivalents NOTE 9: TRADE AND OTHER RECEIVABLES CURRENT Trade debtors and other receivables * Employee advances Other * Amounts are not past due or impaired. NOTE 10: PROPERTY, PLANT AND EQUIPMENT PLANT AND EQUIPMENT Plant and equipment: At cost Accumulated depreciation a. Movements in Carrying Amounts Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year. PLANT AND EQUIPMENT Balance as at beginning of the year Additions Disposals Depreciation expense Balance at the end of the year 571,981 571,981 750,909 750,909 80,887 3,129 - 84,016 224,857 36,842 9,198 270,897 322,964 (319,986) 2,978 322,964 (316,120) 6,844 6,844 - - (3,866) 2,978 23,052 1,665 (4,955) (12,918) 6,844 IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 65 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTE 11: EXPLORATION EXPENDITURE Capitalised cost at the beginning of the period Impaired Exploration expenditure for the year Sale of tenements (Turkey) Cost carried forward 2015 $ 2014 $ 7,714,139 11,581,800 (4,316,428) (6,576,618) 3,228,834 2,708,957 (100,000) - 6,526,545 7,714,139 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. Impairment of exploration expenditure incurred during the period relates to tenements held within Botswana which were impaired based on issues and delays encountered in renewing the tenement licences. NOTE 12: TRADE AND OTHER PAYABLES CURRENT Unsecured liabilities: Trade payables Sundry payables and accrued expenses 115,069 38,757 153,826 209,752 10,203 219,955 Trade payables and accruals are non-interest bearing and normally settled on 30 day terms. Details of the Group’s exposure to interest rate risk and fair value in respect of its liabilities are set out in note 21. There are no secured liabilities as at 30 June 2015. NOTE 13: PROVISIONS CURRENT Employee benefits NOTE 14: ISSUED CAPITAL 131,727 84,966 566,339,070 fully paid ordinary shares with no par value (2014: 487,063,284) 32,128,320 29,531,508 Share issue costs (883,317) (878,456) 31,245,003 28,653,052 Page 66 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2015NOTE 14: ISSUED CAPITAL (CONTINUED) a. Ordinary shares At the beginning of reporting period 487,063,284 371,912,552 28,653,052 24,366,377 2015 No. 2014 No. 2015 $ 2014 $ Shares issued during the year – Placement Tranche 1 a – Placement Tranche 2 b – Invictus Merger – Placement c – Director Shares d – Transaction costs - - - 48,067,069 30,880,299 36,203,364 - - - 78,423,516 852,270 - - - - 2,587,976 18,750 (14,775) 1,857,624 1,142,377 1,339,524 - - (52,850) At the end of the reporting period 566,339,070 487,063,284 31,245,003 28,653,052 a. On 26 September 2013 the company issued 48,067,069 at a price of 3.8 cents to sophisticated and professional investors. b. On 14 November 2013 the company issued 30,880,299 at a price of 3.8 cents to sophisticated and professional investors. c. On 14 July 2014 the Company raised $2,587,976 through the issue of 78,423,516 new ordinary shares at 3.3 cents per share. d. Throughout the period the Company issued a total of 426,135 Company shares at 2.2 cents to each Dr Markus Elsasser and Mr Paul Ingram. These shares were issued in lieu of Director fees and were issued in accordance with resolutions passed at the Annual General Meeting held on 27th November 2014. Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to the number of shares held. At shareholders’ meetings each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder has one vote on a show of hands. Capital Management Management’s objectives when managing capital is to safeguard their ability to continue operating the Consolidated Group as a going concern, so that they may continue to provide returns for shareholders and benefits for other stakeholders. Due to the nature of the Consolidated Group’s activities, being mineral exploration, the Consolidated Group does not have ready access to credit facilities, with the primary source of funding being equity raisings. Therefore, the focus of the Consolidated Group’s capital risk management is the current working capital position against the requirements of the Consolidated Group to meet exploration programs and corporate overheads. The Consolidated Group’s strategy is to ensure appropriate liquidity is maintained to meet anticipated operating requirements, with a view to initiating appropriate capital raisings as required. The working capital position of the Consolidated Group at 30 June 2015 and 30 June 2014 was as follows: Cash and cash equivalents Trade and other receivables Trade and other payables Working capital position 2015 $ 571,981 84,016 2014 $ 750,909 270,897 (153,826) (219,955) 502,171 801,851 IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 67 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTE 15: RESERVES Transactions with non-controlling interest The transactions with non-controlling interest reserve records items related to the acquisition of shares in Invictus Gold Limited. Option Reserve The option reserve records items recognised as expenses on valuation of employee share options. Foreign Currency Translation Reserve The foreign currency translation reserve records exchange differences arising on translation of a foreign controlled subsidiary. NOTE 16: CAPITAL AND LEASING COMMITMENTS (a) Exploration The Consolidated Group has certain obligations to perform minimum exploration work on mineral leases held. These obligations may vary over time, depending on the Consolidated Group’s exploration program and priorities. As at balance date, total exploration expenditure commitments on granted tenements held by the Consolidated Group that have not been provided for in the financial statements and which cover the following twelve month period amount to $842,519 (2014:$1,184,960). For the period greater than twelve months to five years commitments amount to $2,115,153 (2014:$992,129). There are no commitments greater than five years. These obligations are also subject to variations by farm-out arrangements, or sale of the relevant tenements. (b) Operating lease commitments Commitments for minimum lease payments in relation to non-cancellable operating leases are as follows: Within one year Later than one year but not later than 5 years Later than 5 years NOTE 17: OPERATING SEGMENTS Segment Information Identification of reportable segments 2015 $ 64,256 - - 2014 $ 76,074 64,256 - 64,256 140,330 The Consolidated 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 Consolidated Group is managed primarily on the basis of exploration opportunities within Australia, Africa and Turkey. Operating segments are therefore determined on this basis. Reportable segments disclosed are based on aggregating operating segments where the segments are considered to have similar geographic characteristics. Page 68 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2015NOTE 17: OPERATING SEGMENTS (CONTINUED) Basis of accounting for purposes of reporting by operating segments (a) Accounting policies adopted Unless stated otherwise, all amounts reported to the Board of Directors, being the chief decision maker with respect to operating segments, are determined in accordance with accounting policies that are consistent to those adopted in the annual financial statements of the Consolidated Group. (b) Intersegment transactions Inter-segment loans payable and receivable are initially recognised at the consideration received/to be received net of transaction costs. (c) Segment assets Where an asset is used across multiple segments, the asset is allocated to that segment that receives majority economic value from that asset. In the majority of instances, segment assets are clearly identifiable on the basis of their nature and physical location. (d) Segment liabilities Liabilities are allocated to segments where there is a direct nexus between the incurrence of the liability and the operations of the segment. Borrowings and tax liabilities are generally considered to relate to the Group as a whole and are not allocated. Segment liabilities include trade and other payables and certain direct borrowings. (e) Unallocated items The following items of revenues, expenses, assets and liabilities are not allocated to operating segments as they are not considered part of the core operations of any segment; – Impairment of assets and other non-recurring items of revenue or expense – Income tax expense – Deferred tax assets and liabilities – Current tax liabilities Segment Performance 2015 Performance Total Segment revenue Total Segment expenses Segment net profit/ (loss) before tax Segment assets Segment Assets Total Segment Assets Segment asset increase for the period Included in segment assets are Australia Africa Turkey Corporate / Treasury Consoli- dated - 255 29 - 1,203,771 1,203,800 199,575 289,698 5,471,847 5,961,375 (255) (199,546) (289,698) (4,268,076) (4,757,575) 6,526,545 6,526,545 31,821 31,821 - - 660,004 660,004 7,218,370 7,218,370 6,526,445 (2,595,394) (98,632) (5,483,255) (1,650,836) Joint Ventures - - - - - Reconciliation of segment assets to group assets Total group assets 7,218,369 IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 69 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PM NOTE 17: OPERATING SEGMENTS (CONTINUED) Segment Performance (continued) 2015 Australia Africa Turkey Corporate / Treasury Consoli- dated - - 373 - - 285,179 285,552 Segment liabilities Segment liabilities Reconciliation of segment liabilities to Group liabilities Inter-segment eliminations Unallocated liabilities Total Group Liabilities 285,552 Corporate / Treasury Impact Group: Sub-total Invictus Group Consol- idated 2014 Australia Africa Turkey Performance Total Segment revenue Total Segment expenses Segment net profit/(loss) before tax Segment assets - 3,470 - 317,364 320,834 436,888 757,722 236 2,933,714 48,149 1,843,096 4,825,195 3,906,710 8,731,905 (236) (2,930,244) (48,149) (1,525,732) (4,504,361) (3,469,822) (7,974,183) Segment Assets 100 2,627,215 98,632 5,629,634 8,355,581 513,625 8,869,206 Total Segment Assets Segment asset increase for the period 100 2,627,215 98,632 5,629,634 8,355,581 513,625 8,869,206 100 (2,312,459) (55,542) (2,598,089) (4,965,990) (716,183) (5,682,173) Included in segment assets are Joint Ventures Reconciliation of segment assets to group assets Total group assets - - - - - - - 8,869,206 Page 70 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2015 NOTE 17: OPERATING SEGMENTS (CONTINUED) Segment Performance (continued) 2014 Australia Africa Turkey Corporate / Treasury Impact Group: Sub-total Invictus Group Consol- idated - - 18,814 18,814 - - 179,398 198,212 106,710 304,921 179,398 198,212 106,710 304,921 Segment liabilities Segment liabilities Reconciliation of segment liabilities to Group liabilities Inter-segment eliminations Unallocated liabilities Total Group Liabilities NOTE 18: CASH FLOW INFORMATION a. Reconciliation of Cash Flow from Operations with Profit after Income Tax Profit/(Loss) after income tax Non cash flow in profit Depreciation Share based expenses Impairment of exploration expenditure Gain on Deemed disposal of associate Changes in net assets and liabilities (Increase)/ decrease in assets: Trade and other debtors Other non-current assets Capitalised expenditure Increase / (decrease) in liabilities: Trade and other creditors Provisions Cash flow from operations 304,921 2015 $ 2014 $ (4,757,575) (7,974,183) 4,075 101,219 12,918 470,657 4,316,428 6,576,618 - - 186,881 93,567 (118,925) 123,483 (2,677,355) (3,232,247) (66,129) 46,760 (550,495) (18,723) (2,752,129) (4,710,897) IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 71 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTE 19: SHARE BASED PAYMENTS i. During the period no share options were granted to employees. ii. A summary of the movements of all company options issued is as follows: Impact Minerals Limited Number Weighted Average Exercise Price Options outstanding as at 30 June 2013 Granted Expired Forfeited Cancelled Options outstanding as at 30 June 2014 Granted Expired Forfeited Cancelled 28,250,000 14,350,000 (450,000) - - 42,150,000 - - - - Options outstanding as at 30 June 2015 Options vested and therefore exercisable as at 30 June 2015 42,150,000 42,150,000 8c 15c 22c - - 10c - - - - 10c 10c As at the date of exercise, the weighted average of share price of options exercised during the year was nil. The weighted average remaining contractual life of options outstanding at year end was 8 months. The weighted average exercise price of outstanding options at the end of the reporting period was 10 cents. The fair value of options granted to employees is deemed to represent the value of employee services received over the vesting period. The weighted average fair value of options granted in financial year 2015 was 15 cents. These values were calculated using the Black Scholes option pricing model applying the following inputs: Impact Minerals Limited Grant Date Vesting Date Expiry Date Exercise Price 14.11.2013 30.11.2013 30.11.2015 14.11.2013 30.11.2014 30.11.2016 06.01.2014 06.01.2014 30.11.2015 $0.06 $0.10 $0.20 Options 2,800,000 3,550,000 Share Price at Grant $0.08 $0.08 8,000,000 $0.037 Risk Rate 3.07% 3.07% 2.68% Consider- ation nil nil nil The level of volatility anticipated for the purposes of the model was 82.1% for all options, The expected price volatility is based on the historic volatility (based on the remaining life of the options), adjusted for any expected changes to future volatility due to publicly available information. Dividends were assumed to be NIL. The life of the options is based on the historical exercise patterns, which may not eventuate in the future. Page 72 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2015NOTE 19: SHARE BASED PAYMENTS (CONTINUED) iii. Shares granted to key management personnel as share-based payments are as follows: Grant Date 10.12.2014 16.01.2015 21.04.2015 Number 284,090 284,090 284,090 The fair value of the shares granted to KMP were determined based on the remuneration for the directors as approved in the AGM held on 28.11.2014 and the weighted average fair value of those equity instruments, determined by reference to market price, was $0.022. These shares were issued as compensation to key management personnel of the Group. Further details are provided in the Directors’ Report. Included under employee benefits expense in the Statement of Profit or Loss is $25,000 which relates to equity-settled share-based payment transactions (2014: $0) NOTE 20: FINANCIAL RISK MANAGEMENT The Consolidated Group’s principal financial instruments comprise cash and short-term deposits. The Consolidated Group has various other financial assets and liabilities such as other receivables and payables, which arise directly from its operations. The Consolidated Group’s activities expose it to a variety of financial risks, including, credit risk, liquidity risk and cash flow interest rate risk. The Consolidated Group is not materially exposed to foreign exchange or price risk. Risk management is carried out by the Board of Directors, who evaluate and agree upon risk management and objectives. (a) Market Risk (i) Foreign exchange risk Exposure to foreign exchange risk may result in the fair value or future cash flows of a financial instrument fluctuating due to movement in foreign exchange rates of currencies in which the Group holds financial instruments which are other than the AUD functional currency of the Consolidated Group. The Consolidated Group is exposed to fluctuations in foreign currencies arising from the purchase of goods and services (in $USD, Botswana Pula and Turkish Lira) currencies other than the company’s measurement currency. (ii) Price Risk Equity Securities Price Risk The Consolidated Group does not have any investments classified on the statement of financial position as either available for sale or at fair value through profit or loss and is therefore considered to have no exposure to equity securities price risk. (iii) Interest Rate Risk Interest rate risk refers to the risk that the value of a financial instrument or cashflows associated with the instruments will fluctuate due to changes in market interest rates. The Consolidated Group has adopted a simple interest rate management policy involving short-term deposits, with AA rated institutions, for varying periods, depending on the immediate cash requirements of the Consolidated Group. Interest is earned at the respective short-term deposit rates. At the date of this report, The Consolidated Group has not entered into any financing arrangements, and is therefore not exposed to any material interest rate risk on borrowings at this stage. IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 73 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PM NOTE 20: FINANCIAL RISK MANAGEMENT (CONTINUED) (b) Interest Rate Risk The Group holds the following financial instruments: Fixed interest rate Floating interest rate $ 1 year or less $ Over 1 to 5 years $ More than 5 years $ Non- interest bearing $ Notes Total $ Weighted average interest rate % 2015 Financial assets Cash Trade and other receivables Financial liabilities Trade creditors and accruals 2014 Financial assets Cash Trade and other receivables 8 9 12 8 9 Financial liabilities Trade creditors and accruals 12 571,981 - 571,981 - - 750,909 - 750,909 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 571,981 84,016 84,016 84,016 655,997 153,826 153,826 153,826 153,826 - 750,909 270,897 270,897 270,897 1,021,806 219,955 219,955 219,955 219,955 * - - - * - - - * Cash at bank earns interest at floating rates based on daily bank deposit rates. Short term deposits are made for varying periods of between one day and three months, depending on the immediate cash flow requirements of the Consolidated Group, and earn interest at the respective short-term deposit rates. Page 74 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2015 NOTE 20: FINANCIAL RISK MANAGEMENT (CONTINUED) (c) Credit Risk Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract obligations that could lead to a financial loss to the Group. The Consolidated Group does not have any material credit risk exposure to any single receivable or group of receivables under financial instruments entered into by the Consolidated Group. Credit risk exposures Credit risk related to balances with banks and other financial institutions is managed by the Consolidated Group in accordance with approved Board policy. Such policy requires that surplus funds are only invested with counterparties with a Standard and Poor’s rating of at least BB. The following table provides information regarding the credit risk relating to cash and money market securities based on Standard and Poor’s counterparty credit ratings. Note 2015 $ 2014 $ Cash and cash equivalents - AA Rating (being AUD banks) - BB - Other Total cash and cash equivalents 8 565,647 4,563 1,771 571,981 717,298 30,226 3,385 750,909 No material exposure is considered to exist by virtue of the possible non-performance of the counterparties to financial instruments and cash deposits. (d) Liquidity Risk The Consolidated Group’s exposure to liquidity risk is limited to cash, receivables and creditors and is set out in Notes 8, 9 and 12. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate credit facility. The Consolidated Group manages liquidity risk by continuously monitoring forecast and actual cash flows. Surplus funds are generally only invested in instruments that are tradeable in highly liquid markets. (e) Fair value estimation The net fair value of financial assets and liabilities of the Consolidated Group approximated their carrying amount. Listed investments have been valued at the quoted market bid price at balance date, adjusted for transaction costs expected to be incurred. The Consolidated Group has no financial assets and liabilities where the carrying amount exceeds the net fair value at balance date. The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in the statement of financial position and notes to the financial statements. The financial instruments recognised at fair value in the statement of financial position have been analysed and classified using a fair value hierarchy reflecting the significance of the inputs used in making the measurements. All financial instruments measured at fair value are level one, meaning fair value is determined from quoted prices in active markets for identical assets. (f) Sensitivity Analysis At 30 June 2015, if interest rates had changed by -/+ 100 basis points from the weighted average rate for the year with all other variables held constant, post-tax loss for the Consolidated Group would have been $5,724 lower/ higher (2014: $9,159 lower/higher) as a result of lower/higher interest income from cash and cash equivalents. IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 75 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTE 21: PARENT ENTITY DISCLOSURE The following information has been taken from the books and records of the parent company, Impact Minerals Limited, and has been prepared in accordance with Accounting standards. STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Profit/(Loss) for the period Other comprehensive income 2015 $ 2014 $ (7,374,487) (1,404,168) - Total comprehensive result for the period (7,374,487) (1,404,168) STATEMENT OF FINANCIAL POSITION Current assets Non current assets Total assets Current liabilities Total liabilities Net Assets Total equity of the parent entity comprising of : Share capital Option reserve Asset revaluation reserve Foreign currency translation reserve Transactions with non controlling interest Accumulated losses Total Equity 2,965,015 1,839,620 3,886,200 9,704,477 6,851,215 11,544,097 244,085 244,085 255,649 255,649 6,607,130 11,288,448 31,245,003 28,653,052 736,506 635,288 - - - - (1,161,069) (1,161,069) (24,213,310) (16,838,823) 6,607,130 11,288,448 Contractual commitments The parent entity does not have any commitments for the acquisition of property, plant and equipment. Contingent liabilities There are no material contingent liabilities of the parent entity for 30 June 2015. Page 76 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2015NOTE 22: CONTROLLED ENTITIES (a) Controlled Entities Consolidated - Direct Name Principal Activities Country of Incorporation Unlisted: Aurigen Pty Ltd Drummond East Pty Ltd Seam Holdings Ltd (i) Exploration Exploration Australia Australia Investment British Virgin Islands Icilion Investments (Proprietary) Ltd (ii) Exploration Botswana Siouville Pty Ltd Brentwood Investment Pty Ltd (iii) Exploration Exploration Impact Madencilik Sanayi Ve Ticaret A.S (iv) Exploration Australia Namibia Turkey Xade Minerals (Pty) Ltd Invictus Gold Limited (v) Exploration Botswana Exploration Australia Ownership Interest 2015 % 2014 % 100 100 100 100 100 100 0 100 100 100 100 100 100 100 100 100 100 100 (i) Seam Holdings Limited is a subsidiary of Drummond East Pty Ltd. (ii) Icilion Investments Pty Ltd is a wholly owned subsidiary of Seam Holdings Limited. (iii) Brentwood Investment Pty Ltd is a wholly owned subsidiary of Seam Holdings Limited. (iv) During the period the company sold Impact Madencilik Sanayi Ve Ticaret A.S (v) Invictus Gold Limited is an entity controlled by Impact Minerals. (vi) During the period the company deregistered dormant subsidiary companies Drummond Uranium Pty Ltd and Invictus (Turkey) Pty Ltd. Loans to and Investments In Controlled Entities Loans are provided by the Parent Entity to its controlled entities for their respective operating activities. Amounts receivable from controlled entities are non-interest bearing with no fixed term of repayment. The carrying value of investments in controlled entities are recognised as an asset in the Parent Entity. The future successful commercial application of these projects or the sale to third parties supports the recognition and recoverability of these assets held in the Parent Entity. Details of loans provided are listed below: Aurigen Pty Ltd Drummond East Pty Ltd Seam Holdings Ltd Icilion Investments (Proprietary) Ltd Drummond Uranium Pty Ltd Siouville Pty Ltd Brentwood Investment Pty Ltd Impact Madencilik Sanayi Ve Ticaret A.S Xade Minerals (Pty) Ltd Invictus Gold Limited 2015 $ 607,130 33,653 9,902 2014 $ 607,130 33,653 9,902 5,463,367 5,290,026 10,580 136,372 201 - - - 10,580 136,372 201 228,706 - - 6,261,200 6,316,570 IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 77 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTE 22: CONTROLLED ENTITIES (CONTINUED) (b) Controlled Entities Consolidated – Through Invictus Gold Limited Name Unlisted: Principal Activities Country of Incorporation Ownership Interest 2015 % 2014 % Drummond West Pty Ltd Endeavour Minerals Pty Ltd Invictus Madencilik Sanayi Ve Ticaret A.S (i) Exploration Exploration Australia Australia Exploration Turkey 100 100 0 100 100 100 i. During the period the company sold Invictus Madencilik Sanayi Ve Ticaret A.S Loans to and Investments In Controlled Entities Loans are provided by the Parent Entity to its controlled entities for their respective operating activities. Amounts receivable from controlled entities are non-interest bearing with no fixed term of repayment. The carrying value of investments in controlled entities are recognised as an asset in the Parent Entity. The future successful commercial application of these projects or the sale to third parties supports the recognition and recoverability of these assets held in the Parent Entity. Details of loans provided are listed below: 2015 $ 2014 $ 3,527,418 3,536,847 - - - - 3,527,418 3,536,847 2015 $ 2014 $ 4,006 4,006 96 - - 100 100 - - - 96 - - 100 100 - - - 4,302 4,302 Drummond West Pty Ltd Invictus (Turkey) Pty Ltd Endeavour Minerals Pty Ltd Details of investments are listed below: Aurigen Pty Ltd Drummond East Pty Ltd Seam Holdings Ltd Icilion Investments (Proprietary) Ltd Drummond Uranium Pty Ltd Siouville Pty Ltd Brentwood Investment Pty Ltd Impact Madencilik Sanayi Ve Ticaret A.S Xade Minerals (Pty) Ltd Page 78 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2015NOTE 23: JOINT VENTURE INTERESTS Xade Impact Minerals Limited has a 61.93% interest in the Xade Joint Venture whose principal activity is mineral exploration on the Xade project in Botswana. The tenements related to this joint venture are subject to renewal and therefore amounts associated with this joint venture have been impaired for this reporting period. However the Company retains an interest in the Joint Venture should these tenements be renewed in a future period. Broken Hill EL 7390, a tenement within the Broken Hill Project, is owned by Golden Cross Resources Limited (GCR) and is the subject of two joint ventures, one between GCR and Impact and one between GCR and Silver City Minerals Limited (ASX:SCI). Silver City has the right to base metals, silver and gold mineralisation associated with Broken Hill style mineralisation. Impact has the rights to nickel, platinum and any other metals, occurring in, emanating from, or which are otherwise associated with, mafic and ultramafic complexes. On 27th March 2015 Impact announced that Golden Cross Resources Limited had recognised that Impact had earned an 87% interest in these metals rights. NOTE 24: DISPOSAL OF INTEREST IN SUBSIDIARIES On 2 October 2014 the Impact Group sold all the shares in its subsidiary companies, Impact Madencilick Sanayi Ve Ticaret A.S. & Invictus Madencilik Sanayi Ve Tiracet A.S. for total consideration of 4 Turkish Lira. The net assets of these subsidiaries at the date of disposal are as follows: Impact Madencilik Sanayi Ve Ticaret A.S. Invictus Madencilick Sanayi Ve Ticaret A.S. Net assets disposed of Total consideration Loss on diposal of subisidiary 43,961 1 43,960 245,739 1 245,738 A loss of $289,698 was recognised on the diposal of Impact Madencilick Sanayi Ve Ticaret A.S.and Invictus Madencilik Sanayi Ve Tiracet A.S. No tax charge or credit arose on the transaction. NOTE 25: SUBSEQUENT EVENT NOTE On 6 August 2015 the Company announced that it had executed a funding of up to $7.3 million from Squadron Resources Pty Ltd, part of the Minderoo Group. The key terms of the transaction comprise: • an initial $3 million investment comprising a $1 million placement of shares at 2.1 cents per share (a 15% discount to the 15 day VWAP) and an interest-free convertible note for $2 million dollars, convertible to shares at a price which is the lower of 2.1 cents or 80% of the 30 day VWAP; • 71,428,572 3 year call options exercisable at 3.25 cents a share to raise a possible $2.3 million on exercise; • the option for Squadron to invest a further $1 million into either or both of the high grade Commonwealth gold-silver-zinc-lead and Broken Hill platinum projects in NSW to earn a 19.9% interest after Impact has spent a combined total of $2.5 million on the two projects; • the appointment of Squadron’s nominee Mr Aaron Hood to the Board of Impact as a non-executive director; and • the engagement of Dr John Clout as a technical consultant to the Company. NOTE 26: COMPANY DETAILS The principal and registered office of the company is: Impact Minerals Limited 26 Richardson Street WEST PERTH WA 6005 IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 79 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PM DIRECTOR’S DECLARATION IMPACT MINERALS LIMITED ABN 52 119 062 261 AND CONTROLLED ENTITIES The directors of the Company declare that: 1. The financial statements and notes, as set out on pages 43 to 79, are in accordance with the Corporations Act 2001 and: a) comply with Accounting Standards, which, as stated in accounting policy Note 1 to the financial statements, constitutes explicit and unreserved compliance with International Financial Reporting Standards (IFRS); and b) give a true and fair view of the financial position as at 30 June 2015 and of the performance for the year ended on that date of the company and Consolidated Group; 2. The Chief Executive Officer and Chief Finance Officer have each declared in accordance with S295A of the Corporations Act 2001, that: a) the financial records of the Consolidated Group for the financial year have been properly maintained in accordance with s286 of the Corporations Act 2001; b) the financial statements and notes for the financial year comply with the Accounting Standards; and the financial statements and notes for the financial year give a true and fair view. c) 3. In the directors’ opinion there are reasonable grounds to believe that the Consolidated Group will be able to pay its debts as and when they become due and payable. Signed at Perth this 12th day of August 2015. Dr Michael G Jones Managing Director Page 80 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PM   Independent Auditor's Report To the Members of Impact Minerals Limited We have audited the accompanying financial report of Impact Minerals Limited (“the Company”) and Controlled Entities (“the Consolidated Entity”), which comprises the statement of financial position as at 30 June 2015, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration of the Consolidated Entity, comprising the Company and the entities it controlled at the year’s end or from time to time during the financial year. Directors Responsibility for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In Note 1, the directors also state, in accordance with Accounting Standards AASB 101: Presentation of Financial Statements, that the financial statements comply with International Financial Reporting Standards. Auditor’s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 81 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PM Page 82 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMIndependent Auditor’s Report To the Members of Impact Minerals Limited (Continued) Independence In conducting our audit, we have complied with theindependence requirements the Corporations Act 2001.Opinion In our opinion:a.The financial report ofthe Consolidated Entityis in accordance with the Corporations Act 2001, including:i.giving a true and fair view of the Consolidated Entity’s financial position as at 30 June 2015and of itsperformance for the year ended on that date; andii.complying with Australian Accounting Standards and the Corporations Regulations 2001;b.The financial statements also complywith International Financial Reporting Standardsas disclosed in Note 1.Emphasis of Matter – Going Concern Withoutqualifying our opinion, we draw attention to Note 1 in the financial report which indicates that the Consolidated Entity incurred a loss of $4,757,575.This condition, along with other matters as set forth in Note 1, indicate the existence of a material uncertainty which may cast significant doubt about the ability of the Consolidated Entity to continue as a going concern and whether it will realise itsassets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report.Report on the Remuneration Report We have audited the Remuneration Report included inthe directors’report for the year ended 30 June 2015.The directors of the Companyare responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.Opinion In our opinion,the Remuneration Report of Impact MineralsLimitedfor the year ended30 June 2015, complies with section 300A of the Corporations Act 2001.BENTLEYSMARKDELAURENTISCAChartered AccountantsDirectorDated at Perth this 12thday of August 2015ADDITIONAL INfORMATION fOR LISTED PUBLIC COMPANIES The following additional information, applicable at 13 July 2015, is required by the Australian Securities Exchange Ltd in respect of listed public companies only. Shareholding a. Distribution of Shareholders Category (size of holding) 1 – 1,001 – 1,000 5,000 5,001 – 10,000 10,001 – 100,000 100,001 – and over Number of Holders Number of Shares 56 142 128 674 448 5,558 510,353 1,098,490 28,526,649 536,198,020 1,448 566,339,070 b. The number of shareholders holding less than a marketable parcel is 472. c. The names of the substantial shareholders listed in the holding company’s register as at 13 July 2015 are: Shareholder Susanne Bunnenberg Voting Rights Number % of issued capital 168,999,999 29.84 d. The voting rights attached to each class of equity security are as follows: Ordinary shares Each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a meeting or by proxy has one vote on a show of hands. IMPACT MINERALS LTD ANNUAL REPORT 2015 Page 83 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PM ADDITIONAL INfORMATION fOR LISTED PUBLIC COMPANIES e. 20 Largest Shareholders- Ordinary Shares Name Rank Name Address 1. J P MORGAN NOMINEES AUSTRALIA LIMITED LOCKED BAG 20049, MELBOURNE VIC,3001 2. AVIANA HOLDINGS PTY LTD SUITE 1, 567 HAY STREET, DAGLISH WA,6008 3. CHINA GROWTH MINERALS LIMITED UNIT1906 19TH FLOOR, CHINA INSURANCE GROUP BUILDING, 141 DES VOEUX ROAD CENTRAL, HONGKONG 4. P J ENTERPRISES PTY LIMITED 1 GRAINGER DRIVE, MOUNT CLAREMONT WA. 6010 5. MRS MELISSA LOUISE CADDICK W4, WATSONS BAY NSW, 2030 6. TECCA PTY LTD 110 BURKE DRIVE, ATTADALE WA, 6156 7. ABN AMRO CLEARING SYDNEY NOMINEES PTY LTD LEVEL 8, 50 BRIDGE STREET, SYDNEY NSW,2000 8. IMAGE INTERPRETATION TECHNOLOGIES PTY LTD 113 BRADFORD STREET, COOLBINIA WA, 6050 9. BALINTORE PTY LTD 10. NEFCO NOMINEES PTY LTD 63 TYRELL STREET, NEDLANDS WA, 6009 GPO BOX W2024, PERTH WA, 6846 11. BASALIS PTY LTD 32 TEMPLETONIA CRESCENT, CITY BEACH WA, 6015 12. SDG NOMINEES PTY LTD 8 REA STREET, SOUTH PERTH WA,6151 13. NETWEALTH INVESTMENTS LIMITED C/- CUSTODY DEPARTMENT, PO BOX 336, SOUTH MELBOURNE VIC, 3205 14. SUTTON NOMINEES PTY LTD 2146 PRETTY PINE ROAD, DENILIQUIN NSW,2710 15. LAVERDI NOMINEES PTY LTD SUITE1, 567 HAY STREET, DAGLISH WA, 6008 16. DR LEON EUGENE PRETORIUS PO BOX 1770, SUBIACO WA 6904 17. SCALISE HOLDINGS PTY LTD 18. MANOTEL PTY LTD 9 KAROONDA ROAD, BOORAGOON WA, 6154 1 GRAINGER DRIVE, MOUNT CLAREMONT WA, 6010 19. HENDERSON PETROLEUM PTY LTD PO BOX 2436, HIGH WYCOMBE WA, 6057 YANARA NOMINEES PTY LTD 20. GPO BOX 2592, PERTH WA, 6001 Totals: Top 20 holders of ORDINARY FULLY PAID SHARES (TOTAL) Total Remaining holders Balance Number of Ordinary Fully Paid Shares Held % Held of Issued Ordinary Capital Units % of Units 201,401,203 35.52 13,157,895 2.32 11,840,470 9,385,913 7,474,185 7,456,698 7,449,482 6,450,000 6,216,667 5,876,690 5,475,000 5,000,000 4,932,399 4,846,862 4,146,731 4,000,000 3,395,466 3,385,962 3,271,600 2.09 1.66 1.32 1.32 1.32 1.14 1.10 1.04 0.97 0.88 0.87 0.86 0.73 0.71 0.60 0.60 0.58 3,142,105 318,305,328 248,033,742 0.55 56.20 43.80 Stock Exchange Listing Quotation has been granted for all the ordinary shares of the company on all Member Exchanges of the Australian Securities Exchange Limited. The ASX code is IPT. Page 84 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTES Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMNOTES Page 86 IMPACT MINERALS LTD ANNUAL REPORT 2015 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMIMPACT MINERALS LTD ANNUAL REPORT 2015 Page 87 Signage Document.indd 31/09/14 5:01 PMSignage Document.indd 31/09/14 5:01 PMSignage Document.indd 3 1/09/14 5:01 PM 26 Richardson Street West Perth Western Australia 6005 Phone: (61 8) 6454 6666 Facsimile: (61 8) 6454 6667 Email: info@impactminerals.com.au Website: www.impactminerals.com.au 

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