A B N 5 2 0 6 4 1 2 1 1 3 3
A N N U A L R E P O R T 2 0 1 7
CORPORATE DIRECTORY
Board and Management
Auditor
Justin Mannolini B.Com/LL (Hons), LLM (Law)
BDO Audit (WA) Pty Ltd
(Non-Executive Chairman)
Lindsay Dudfield BSc
(Managing Director)
Patricia Farr GradCertProfAcc,
GradDipACG, GAICD, AGIA/ACIS
(Executive Director/Company Secretary)
Greg Ledger B.Com CA
(Company Secretary)
Principal Registered Office
Level 2
9 Havelock Street
WEST PERTH WA 6005
Telephone:
61 8 9321 7550
Facsimile:
61 8 9321 7950
Email:
enquiry@jindalee.net
Web:
www.jindalee.net
38 Station Street
SUBIACO WA 6008
Solicitors
Kings Park Corporate Lawyers
Level 2, 45 Richardson Street
WEST PERTH WA 6005
Share Registry
Advanced Share Registry
110 Stirling Highway
NEDLANDS WA 6009
Telephone:
61 8 9389 8033
Facsimile:
61 8 9262 3723
Bankers
National Australia Bank Limited
100 St Georges Terrace
PERTH WA 6000
Stock Exchange Listing
The Company’s shares are listed by the Australian
Securities Exchange Limited (“ASX”) - Code JRL.
The home exchange is Perth.
Terry Peachey (Senior Consultant), Lindsay Dudfield, Trish Farr, Greg Ledger and Justin Mannolini.
Board and Managment (left to right)
i i
JINDALEE RESOURCES LIMITED
CONTENTS
Chairman’s Report
Review of Activities
Directors’ Report
Corporate Governance Statement
Financial Statements
Directors’ Declaration
Auditors’ Independence Declaration
Auditors’ Report
Additional Information
2
4
11
19
21
50
51
52
56
1
ANNUAL REPORT 2017 CHAIRMAN’S REPORT
Dear Fellow Shareholder
I am pleased to present the Chairman’s Report for Jindalee Resources Limited for 2017.
We may look back at the previous financial year as the low point for the junior listed resource sector. While capital market conditions
continue to be challenging, and investors still reluctant to fund greenfield exploration, many commodity prices have now begun to
stabilise and in some cases increase modestly. This reflects the “new normal” outlook for less aggressive, but more sustainable growth
in China. However, few are expecting a return to the boom conditions experienced in the last decade.
The so-called “Trump trade” in the early part of calendar 2017 saw a brief surge of investor interest in resources, as many bet that
President Trump would spend heavily in the area of infrastructure development. The nimble took advantage of this initial euphoria
to raise capital. However a much more measured view of the potential of the new US administration to spark growth in the world’s
largest economy has now taken hold, and commodity prices, and resources stocks, appear to be trading on something more closely
approximating a fundamental basis.
That being said, until central banks globally return monetary policy settings to a more neutral stance, we will all have to wait and
wonder whether we are truly beyond the GFC – or setting ourselves up for another one. While last year I wrote of a “race to the bottom”
in global interest rates (which has historically been constructive for commodity prices), this year the talk has been of increased rates.
The reality is that fiscal policy has been mainly about that – talk – and monetary policy everywhere is still very loose.
For a small company like Jindalee, finding value in this kind of market is extremely difficult. We have continued to review many projects
and proposals that while having superficial appeal, on closer examination either don’t stack up technically, or do not offer the kind of
return on investment that we seek on behalf of our shareholders. The better prospects tend to attract substantial competition, often
from buyers better resourced than Jindalee, and we prefer to avoid the risk of overpaying in those situations.
However I am pleased to report that through prudent management of our project interests, and by taking advantage of opportunities
to monetise those interests where appropriate, we have maintained a very low cash burn rate and retain a sizeable cash buffer at
year end. We have also acquired a greater understanding of the potential of the Prospect Ridge Magnesite project in North-western
Tasmania and hope to further develop that understanding in the current financial year. We will continue to opportunistically acquire
projects such as this which offer long term optionality for minimal outlay.
Once again I would like to thank key management team members Lindsay Dudfield and Trish Farr and consultant Terry Peachey
for their hard work and focus over the past year. While not always reflected in individually material transactions, there has been
considerable activity “behind the scenes” to leverage our landholdings in Australia and where possible to acquire low-cost but
strategic positions in interesting geological neighbourhoods. This tight financial discipline, coupled with an even tighter capital
structure, means that Jindalee shareholders continue to enjoy excellent leverage to any value-adding opportunities we secure.
On the subject of management, in September 2017, we were pleased to welcome Mr Pip Darvall as Jindalee’s new Chief Executive
Officer. Pip is a qualified geologist with extensive experience across a range of commodities and sectors, many with direct relevance
to Jindalee and its project portfolio. He will work alongside Lindsay Dudfield to enhance our project evaluation capacity.
In this kind of environment, one of the most valuable assets a company can possess is a loyal and patient shareholder base, which
Jindalee is privileged to enjoy. I thank all shareholders who continue to have faith in our ability to deliver a step change in the value
of the Company, which will continue to be the Board’s focus in the 2018 financial year.
Justin Mannolini
Non-Executive Chairman
2
JINDALEE RESOURCES LIMITED “creating wealth for shareholders”
HIGHLIGHTS
Multi-commodity exposure1
Well funded2
Tight capital structure3
Experienced motivated management4
Track record of wealth creation5
1
Jindalee offers shareholders exposure to gold, base
metals, magnesite, diamonds, iron ore and uranium
2
At 30 June 2017 Jindalee held cash & shares worth
$5.4M*
3
Jindalee has only 34.9M shares on issue, providing great
leverage for shareholders
4
Directors and management combine more than 60
years of technical and commercial experience, and are
significant shareholders in the Company
5
Jindalee shareholders have received priority entitlements
to several IPO’s (including Energy Metals, Anchor
Resources and Alchemy Resources) and were paid a 55c
special dividend in July 2010
* in summary, at 30 June 2017 Jindalee had no debt, had $3.4M in cash and
held shares in listed companies worth approximately $2.0M, equivalent to
$0.15 per share.
3
ANNUAL REPORT 2017
REVIEW OF ACTIVITIES
Since listing in July 2002 Jindalee’s primary objective has been,
and continues to be, to create wealth for our shareholders.
Our strategy to grow Jindalee and create wealth for our
shareholders is simple – we identify and acquire prospective
ground or advanced projects, add value through additional
exploration activity to bring the project to decision point and,
where appropriate, either:
(a)
continue exploration on a 100% basis,
(b)
introduce partners to fund the higher risk and/or expensive
stages of exploration, or
(c)
fund further exploration via a dedicated company in
which Jindalee retains a significant interest (and Jindalee
shareholders have the opportunity to invest directly)
Figure 1. Jindalee Lead Projects
To date this strategy has been very successful and Jindalee
shareholders have received priority entitlements to former
DIRECT INTERESTS
subsidiary Energy Metals when it was spun out in 2005, as well
as other IPO’s listing on Jindalee properties, including Anchor
MAGNESITE
Resources and Alchemy Resources. Jindalee has also returned
$19 million in cash to shareholders via a $0.55 fully franked special
Prospect Ridge (Jindalee 100%)
dividend paid in July 2010, following the sale of 70% of our stake
in Energy Metals to China Guangdong Nuclear Power Company.
The Prospect Ridge Project comprises a single granted
Exploration Licence (EL5/2016) located 55km southwest of Burnie
Jindalee’s counter-cyclic strategy seeks to take advantage
in NW Tasmania (Figure 2). Jindalee holds a 100% beneficial
of high quality opportunities that can be acquired for minimal
interest in the licence. The project covers the Arthur River and
cost at low points in the cycle. To that end the Company was
Lyons River magnesite deposits, noted by Geoscience Australia
very active during the period and lodged a number of strategic
as containing the third largest inventory of magnesite Economic
tenement applications over areas with good potential for a
Demonstrated Resources in Australia (refer www.ga.gov.au).
broad range of commodities including magnesite, diamonds,
gold, nickel and rare earths.
Magnesite is the primary source of magnesia, which is mainly
used in agriculture, mineral processing, paper manufacture
Jindalee also continues to provide shareholders with indirect
and refractory industries. Magnesia is also used to produce
exposure to a range of commodities through our investee
magnesium (Mg), a light metal widely used in the aerospace,
companies, including uranium (through Energy Metals) and gold
automotive and electronics industries. Both magnesite and
and copper (through Alchemy Resources). Further information
magnesium are on the EU’s list of 20 critical materials.
on some of our projects and investee companies follow in this
report.
The project has been explored for over 40 years by companies
including Mineral Holdings Australia, CRAE (now Rio Tinto),
Jindalee’s strong balance sheet (around $5.4 million in cash and
TasMag, Crest Magnesium and more recently by Beacon Hill
shares at 30 June 2017) places the Company in a strong position
Resources Plc. Beacon Hill undertook extensive pre-development
to add value to the projects already in our portfolio and to
activities at the Arthur River deposit, including drilling, resource
acquire further high quality opportunities over the coming period.
estimation, hydrological studies, environmental and Aboriginal
4
JINDALEE RESOURCES LIMITED
REVIEW OF ACTIVITIES
Heritage studies and metallurgical testwork. They also released
neutralisation and the production of feed stock, fertilizers,
the results from a preliminary scoping study1. This work has
and some cosmetics. The calcined magnesia product is also
provided an excellent foundation from which Jindalee can
an intermediate stage in the production of a range of other
further progress the project toward development.
magnesia products.
In addition to the calcination testwork, the metallurgical
program will also examine the further use of flotation, both prior
to the calcination stage and after calcination, as a method of
maximising the grade of the calcined magnesia product. Results
of the metallurgical program are expected later in the year.
Outside of the Arthur River deposit, the project also includes
a second significant magnesite occurrence at Lyons River,
where drilling by CRAE in the 1980’s returned wide, high-grade
intercepts including 200m @ 43.0% MgO from DDLR1, and 180m @
42.0% MgO from DDLR2, highlighting the scope to create a much
larger project than envisaged to date.
DIAMONDS
Aries (Jindalee 100%)
Jindalee’s Aries Project is an uncontested Exploration Licence
application (E80/5027) located in the central Kimberley region
of Western Australia, approximately 270km east of Derby and
230km west of Rio Tinto’s Argyle diamond mine.
Figure 2. Prospect Ridge Project. Location plan and simplified
The project covers the Aries kimberlite cluster, including the Aries,
geology.
Athena, Helena and Persephone diamondiferous kimberlite
pipes. Although significant exploration was undertaken in the
Since grant of the licence in November 2016, Jindalee has
period from 1986 to 2005, Jindalee believes that there is very
completed the compilation of the extensive historical database
good potential to find additional diamondiferous pipes and
for the project and commenced a program of metallurgical
alluvial diamond deposits in the area. Encouragingly, 95% of the
testwork, designed to optimise the processing route for the
diamonds recovered from the project have been gem quality.
production of commercial grade magnesia products for both
oxide and fresh magnesite ores. To this end, two bulk metallurgical
composite samples from the Arthur River deposit were collected,
comprising ~30kg of oxidised mineralisation and ~70kg of largely
fresh magnesite. The two samples (each averaging >40% MgO)
were collected from historic drill core and are considered to be
representative of typical oxide and fresh mineralisation within the
upper 70m of the deposit.
The samples will be calcined (heated to between 700°C
and
1000°C)
to produce caustic-calcined magnesia
(CCM). Applications for CCM include water treatment, acid
5
ANNUAL REPORT 2017 REVIEW OF ACTIVITIES
Figure 3. Aries Project. Location plan.
Australia. These new project have potential for the discovery of
not only gold, but possibly base metal and other speciality metal
deposits. A selection from these newly acquired project areas
with gold potential follows:
Yindi Project (Jindalee 100%)
The Yindi Project comprises an uncontested Exploration Licence
application (E28/2708) located 135km NE of Kalgoorlie and
applied for in August 2017. The Yindi Project covers the southern
end of the highly endowed Laverton Tectonic Zone and abuts
Apollo Consolidated’s (ASX: AOP) Rebecca Project where
Apollo has recently reported highly encouraging gold intercepts
from sulphidic felsic gneiss at the Lode 161 prospect², including
17.8m @ 15.95g/t Au from 142m and 17.8m @ 15.95g/t Au from
142m (both intercepts from diamond hole RHD-04) and 49m @
4.57g/t Au from 166m in RHD-05. These intercepts were downdip
of an earlier RC hole (RCLR-161) which recorded 42m @ 7.75g/t
Au from 61m.
Lode 161 is an emerging discovery under transported cover and
the mineralisation is not well understood; however given the
presence of abundant sulphides in a gneissic host it is likely that
shearing is an important control on mineralisation. Interpretation
of regional magnetic data shows magnetic units (dismembered
greenstones?) are present on E28/2708, suggesting mineralising
structures may trend into the tenement. There is no record that
these zones of interest have been drill tested.
Access negotiations with the Traditional Owners through the
Kimberley Land Council are continuing. The Company has
been actively compiling the historical data and looks forward to
commencing work as soon as E80/5027 is granted.
Jindalee looks forward
to commencing work
at Yindi as soon as
E28/2708 is granted.
GOLD
In June 2017 Kin Mining NL (ASX: KIN) announced that it had
acquired Jindalee’s 11% interest in the Cardinia JV, via the issue
of 1M KIN fully paid shares. Through our Kin Mining shareholding,
Jindalee will retain an indirect interest in the Cardinia ground, as
well as gaining exposure to the broader potential represented by
Kin Mining’s Leonora gold project (LPG).
Over the year, Jindalee has continued to successfully apply
one of our key value adding strategies through the selective
application for new tenements covering prospective ground
in the richly-mineralised Eastern Goldfields districts of Western
Figure 4. Yindi Project.
Location plan.
6
JINDALEE RESOURCES LIMITED
REVIEW OF ACTIVITIES
New Bore Project (Jindalee 100%)
Kenya Project (Jindalee 100%)
Jindalee’s New Bore Project is located 15km SW of Laverton in
Jindalee’s Kenya Project is located 170km northeast of Kalgoorlie
the Eastern Goldfields region of WA and comprises one wholly-
in the Eastern Goldfields region of WA and comprises two granted
owned Exploration Licence application (E38/3211) lodged late
and wholly-owned Exploration Licences (E’s 39/1998 & 39/2005).
December 2016. E38/3211 was subject to several competing
E39/1998 abuts the northern boundary of the mining lease
applications with Jindalee’s application winning priority following
containing Saracen Minerals’ 0.2Moz Safari Bore gold deposit,
a ballot conducted in March 2017.
situated 3km along-strike to the south, and is 5km northwest of
The New Bore project covers the nose of a folded sequence
located a further 2km north of E39/1998.
of mafics, ultramafics and BIF’s and includes the historic Rats
Find gold workings. The project is located 10km NE of Dacian
Available historical open file exploration information is being
Resources’ (ASX: DCN) proposed Mt Morgans 2.5Mtpa gold
compiled for this project ahead of the commencement of field
Saracen’s Deep South underground mine, whilst E39/2005 is
treatment plant and
is considered highly prospective for
programs.
gold mineralisation. Available historical open file exploration
information is being compiled for this project.
Salt Creek Project (Jindalee 100%)
Jindalee’s Salt Creek Project is located 65km southeast of
Kalgoorlie in the Eastern Goldfields region of WA and comprises
one wholly-owned Exploration Licence application (E25/562)
lodged in December 2016. This tenement abuts the eastern
boundary of the mining lease containing Silver Lakes’ 1.2Mtpa
Randall’s mill.
Salt Creek covers magnetic features which may be prospective
for gold mineralization. Available historical open file exploration
information is being compiled for this project.
Tokay Project (Jindalee 100%)
The Tokay Project is located 130km southeast of Meekatharra, WA
and comprises one wholly-owned Exploration Licence (E57/1061)
applied for in November 2016. The tenement abuts Horizon Gold’s
(ASX: HRN) Gum Creek project and is interpreted to cover the
Tokay and Wilson shear zones, which are associated with gold
mineralization to the north. The tenement is also prospective for
base metals.
E57/1061 is subject to competing applications with priority likely
to be determined by ballot.
7
ANNUAL REPORT 2017 REVIEW OF ACTIVITIES
IRON ORE
NICKEL
Western Creek (Jindalee 100%)
North Sinclair Project (Jindalee 100%)
The Western Creek project comprises a single Exploration
The North Sinclair Project comprises a wholly-owned Exploration
Licence (E52/3520) applied for in February 2017 and located
Licence (E36/895) applied for in October 2016 and located 35km
approximately 10km WSW of BHP’s Mt Whaleback operations in
southeast of Leinster in the Eastern Goldfields region of WA. The
the eastern Pilbara, and abutting BHP’s tenure. The tenement
Project is situated 15km north along-strike from Talisman Mining’s
covers ground previously held by Atlas Iron (ASX: AGO), and
Sinclair nickel mine and 10km southwest of Saracen Minerals’
includes the Western Creek CID (detrital channel iron) deposit
Waterloo nickel deposit, and includes the historic Sinclair North
where Atlas has reported an inferred resource of 79Mt @ 56% Fe
and Firefly nickel prospects. The project is also prospective for gold.
(50% Fe cut-off).³
Available historical open file exploration information is being
Jindalee’s application was subject to competing applications
compiled for this project.
from three other parties, including Rio Tinto. Ballots to determine
priority were held mid-July 2017 with E52/3250 gaining priority
over approximately 19km², including the Western Creek deposit.
RARE EARTHS
The Company will now look to expedite the grant of E52/3250 so
that field work can commence.
Cummins Range (Jindalee 100%)
Joyners (Jindalee 20% free carried)
The Cummins Range project comprises a single Exploration
Licence (E80/5091) applied for in May 2017 and located
The Joyners project is a joint venture with GWR Group Limited and
approximately 125km SW of Halls Creek in the southeastern
forms a part of GWR’s much larger Wiluna West project. GWR
Kimberley, WA. The tenement includes the Cummins Range rare
has earned an 80% interest in the joint venture Mining Lease with
earth oxide (REO) deposit, previously explored by Kimberley Rare
Jindalee maintaining a 20% equity position, free-carried through
Earths Limited (KRE). In February 2012 KRE estimated an inferred
to completion of a Bankable Feasibility Study. The joint venture
resource of 4.9Mt @ 1.74% TREO (total rare earth oxides) at a 1%
tenement contains previously published indicated and inferred
cut-off. 4⁴
iron oxide resources at Joyners North.
No work was reported on the project during the period.
three other parties with priority likely to be determined by ballot.
Jindalee’s application is subject to competing applications from
8
JINDALEE RESOURCES LIMITED REVIEW OF ACTIVITIES
INDIRECT INTERESTS
GOLD AND BASE METALS
Alchemy Resources (Jindalee 5.1% of issued capital)
Jindalee
is Alchemy Resources’ (ASX: ALY)
third
largest
shareholder, providing shareholders with exposure to Alchemy’s
high quality portfolio of projects, including Alchemy’s existing
Gascoyne region gold and copper-gold projects, the 100%
owned Karonie gold project in WA and a joint venture with Heron
Resources over gold and base metal prospective properties in
central NSW.
Alchemy’s Bryah Basin copper project is located to the west of
Sandfire Resources’ Doolgunna project and covers the extensions
of the Narracoota Volcanics, the unit which hosts Sandfire’s
high grade DeGrussa copper-gold mine. Independence Group
(ASX: IGO), a well-regarded and successful nickel, base metal
and gold producer and explorer is farming into Alchemy’s base
metal-prospective Bryah Basin tenements.
In June 2017 Alchemy announced that it had raised $1.67M
(before costs) via a share placement and subsequent rights issue.
The company is now sufficiently funded to accelerate exploration
at both the Karonie and Overflow projects. Further information
on Alchemy’s activities can be found in their announcements
and on their website, www.alchemyresources.com.au.
Alchemy also has a joint venture agreement in place with
URANIUM
Billabong Gold Pty Ltd, owner of the nearby Plutonic Gold Mine,
with Billabong responsible for the ongoing exploration of the
Gascoyne project tenements, not covered by the joint venture
with IGO. This joint venture includes a number of existing gold
prospects and occurrences, as well as other areas considered
prospective for the discovery of further gold deposits.
The Karonie project abuts Salt Lake Mining’s 0.5Moz Aldiss
project and features several prospects where previous drilling
has returned significant bedrock gold intersections, including 8m
@ 3.37g/t at Esplanade, 3m @ 14.57g/t at Batavia and 10m @
2.55g/t at Taupo. The Karonie project is also directly along strike
from Breaker Resources’ (ASX: BRB) Lake Roe project, including
the exciting Bombora discovery. Bombora is hosted by dolerites
adjacent to the Claypan Shear, with this structure extending SE
for a further 40km through Alchemy’s tenements.
The joint venture with Heron Resources includes six Exploration
Licences covering a combined 674km². The most advanced
project is the Overflow project in the Cobar district, where a
recent drilling by Alchemy returned encouraging gold-silver
Energy Metals (Jindalee 6.7% of issued capital)
Jindalee holds approximately 14 million Energy Metals shares,
giving shareholders continued exposure to the development of
the Bigrlyi uranium-vanadium deposit and the potential of Energy
Metals’ other uranium projects.
Energy Metals (ASX: EME) controls 8 projects (total area >4,000
km²) located in the Ngalia Basin in the Northern Territory (NT) and
in Western Australia (WA), with the majority of projects containing
uranium mineralization or defined resources. Exploration has
largely been concentrated on the main Bigrlyi Project in NT (53.3%
owned by Energy Metals), where significant uranium resources
have been defined and a prefeasibility study completed. More
recently, increasing attention has been turned to other wholly-
owned prospects in the region, where there is demonstrated
potential to define additional Bigrlyi-style resources.
Further information on Energy Metals’ activities can be found in
Energy Metals ASX announcement and on their website, www.
intercepts, including 18m @ 2.1g/t Au & 111g/t Ag from 245m and
energymetals.net
3m @ 7.3g/t Au & 43g/t Ag from 286m. Further drilling to test a
strong EM anomaly down plunge of these intercepts is planned.
9
ANNUAL REPORT 2017 REVIEW OF ACTIVITIES
OUTLOOK
At 30 June 2017, Jindalee held cash and marketable securities
worth approximately $5.4M. These assets, combined with our
tight capital structure (34.9M shares on issue), provide a strong
base for leverage into new opportunities as the resources cycle
turns.
Jindalee’s strategy is to identify and acquire projects with the
potential to transform the Company and this continues to be
our ongoing primary focus. The recent acquisition of the Yindi
and North Sinclair projects are examples of strategic projects
that Jindalee has been able to secure for minimal cost, and the
Company expects to identify further high quality opportunities in
the period ahead.
Notes:
Competent Person Statement: The information in this report that relates
to Exploration Results, Mineral Resources or Ore Reserves is based on
information compiled by Mr Terrence Peachey, who is a geological
consultant to the Company and is a member of the Australian Institute of
Geoscientists. Mr Peachey has sufficient experience, which is relevant to
the style of mineralisation and type of deposit under consideration and
to the activity, which he is undertaking, to qualify as a Competent Person
as defined in the 2012 Edition of the ‘Australasian Code for Reporting
of Exploration Results, Minerals Resources and Ore Reserves (The JORC
code).’ Mr Peachey consents to the inclusion in the report of the matters
based on his information in the form and context in which it appears.
Forward-Looking Statements: This document may include forward-
looking statements. Forward-looking statements include, but are not
limited to statements concerning Jindalee Resources Limited’s (Jindalee)
planned exploration program and other statements that are not historical
facts. When used in this document, the words such as “could”, “plan”,
“estimate”, “expect”, “intend”, “may”, “potential”, “should”, and similar
expressions are forward-looking statements. Although Jindalee believes
that its expectations reflected in these forward-looking statements are
reasonable, such statements involve risks and uncertainties and no
assurance can be given that actual results will be consistent with these
forward-looking statements.
1.
2.
3.
4.
Reference: ASX Announcement by Beacon Hill Resources dated
2nd May 2012 titled,” Positive Preliminary Scoping Study Results for
Arthur River Magnesite Project”.
Reference: Apollo Consolidated announcement to ASX dated 25
August 2017 and titled, “Apollo Hits 17.84m @ 15.95g/t Au & 49m
@ 4.57g/t Au at 161 Lode”
Reference: Atlas Iron Limited (ASX: AGO) 2016 Annual Report to
shareholders lodged with ASX on 20 October 2016
Reference: Kimberley Rare Earths announcement to ASX dated
13 February 2012 and titled, “Cummins Range update”
1 0
JINDALEE RESOURCES LIMITED DIRECTORS’ REPORT
The Directors present their report on the consolidated entity
In line with the Company’s business strategy, during the period
(referred to hereafter as the Group) consisting of Jindalee
management also evaluated numerous advanced projects
Resources Limited and the entities it controlled at the end of, or
in both Australia and overseas, with a view to securing an
during the year ended 30 June 2017.
opportunity capable of growing the Group and creating wealth
for Shareholders, and this continues to be the Company’s
Directors
primary focus.
The following persons were directors of Jindalee Resources
The net assets of the Group have fallen by $257,905 from $5,775,532
Limited during the whole of the financial year and up to the date
at 30 June 2016 to $5,517,627 at 30 June 2017 principally due to
of this report unless noted otherwise:
impairment of exploration assets and administration costs offset
Lindsay Dudfield
Justin Mannolini
Patricia Farr
Principal activities
by a gain from the sale of the Group’s interest in the Cardinia
joint venture.
The Directors believe the Group is in a strong financial position to
continue its exploration endeavours.
The principal activity during the year of Jindalee Resources
Limited was mineral exploration. During the year there was no
There has not arisen in the interval between the end of the
change in the nature of this activity.
financial year and the date of this report any item, transaction
Events since the end of the financial year
Financial results
or event of a material and unusual nature likely, in the opinion
of the Directors, to affect significantly the operations, the results
of those operations, or the state of affairs of the Group in future
The consolidated loss of the Group after providing for income
financial years.
tax for the year ended 30 June 2017 was $385,296 (2016: loss
$1,056,621).
Dividends
On 22 August 2017 pursuant to the Company’s Employee Share
Option Plan, 400,000 unlisted options exercisable at $0.40 and
expiring 30 June 2022 were issued to employees of the Company.
No dividends have been declared since the end of the previous
Likely developments and expected results of operations
financial year and no dividends have been recommended by
the Directors.
The Directors are not aware of any developments that might
have a significant effect on the operations of the Group in
Significant changes in the state of affairs
subsequent financial years not already disclosed in this report.
During the year there has been no significant change in the state
of affairs of the Group.
Operations and financial review
The principal activity of the Group is mineral exploration. The
Group holds interests in tenements in Tasmania and Western
Australia prospective for magnesite, gold, diamonds, nickel and
iron ore, with most of these tenements wholly owned. The Group
also has indirect interests in uranium, gold and base metals
through investee companies.
1 1
ANNUAL REPORT 2017 DIRECTORS’ REPORT
Environmental regulation
The Group is subject to significant environmental regulation in respect of its exploration activities. Tenements in Western Australia
are granted subject to adherence to environmental conditions with strict controls on clearing, including a prohibition on the use of
mechanised equipment or development without the approval of the relevant government agencies, and with rehabilitation required
on completion of exploration activities. These regulations are controlled by the Department of Mines, Industry Regulation and Safety.
Jindalee Resources Limited conducts its exploration activities in an environmentally sensitive manner and the Group is not aware of
any breach of statutory conditions or obligations.
Greenhouse gas and energy data reporting requirements
The Directors have considered compliance with both the Energy Efficiency Opportunity Act 2006 and the National Greenhouse and
Energy Reporting Act 2007 which requires entities to report annual greenhouse gas emissions and energy use. The Directors have
assessed that there are no current reporting requirements for the period ended 30 June 2017, however reporting requirements may
change in the future.
Information on Directors
J Mannolini B.Com/LL (Hons), LLM (Law), GAICD. Non-Executive Chairman
Mr Mannolini was appointed to the Jindalee Board as a Non-Executive Director in September
2013 and as Chairman in July 2016. Mr Mannolini is a partner in the Corporate Advisory Group
of Australian law firm Gilbert + Tobin. He was an Executive Director with Macquarie Capital,
the investment banking division of the Macquarie Group from March 2013 to May 2016 and
was responsible for cross-industry coverage of the Western Australian market. Prior to joining
Macquarie, Mr Mannolini was Managing Director and head of Gresham Advisory Partners’
Experience and expertise
Perth office, and before that, a partner in the mergers and acquisitions group of Australian law
firm Freehills. In May 2016 Mr Mannolini was appointed to the board of the Northern Australia
Infrastructure Facility, a $5B fund set up by the Australian Government to encourage population
growth and economic development in northern Australia. As a lawyer and investment banker, Mr
Mannolini has more than 20 years experience in corporate finance ranging across industry sectors
and product lines, including mergers and acquisitions transactions and general strategic advisory
mandates for companies in the resources sector
Other current directorships
None
Former directorships in last 3
years
None
Special responsibilities
Chairman
Interests in shares and options Ordinary Shares – Jindalee Resources Limited
250,000
1 2
JINDALEE RESOURCES LIMITED L Dudfield BSc. Managing Director (resigned as Executive Chairman effective 1 July 2016)
Mr Dudfield is a qualified geologist with over 37 years experience exploring for gold and base
Experience and expertise
metals in Australia and abroad, including close involvement with a number of greenfields
discoveries. Mr Dudfield is a member of the AusIMM, SEG, AIG and GSA. He is a founding director
Other current directorships
Former directorships in last 3
years
of Jindalee Resources and has been Managing Director for 15 years.
Energy Metals Limited - Non-Executive Director
Alchemy Resources Limited – Non-Executive Director
None
Special responsibilities
Managing Director
Interests in shares and options Ordinary Shares – Jindalee Resources Limited
11,980,844
P Farr GradCertProfAcc. GradDipACG. GAICD AGIA/ACIS Executive Director/Joint Company Secretary
Ms Farr is an experienced Chartered Secretary with over 19 years experience in the exploration
and mining industry in the areas of corporate governance, compliance and administration. Ms
Farr has provided Company secretarial services to several ASX listing companies including Energy
Experience and expertise
Metals Limited and Musgrave Minerals Limited. Mrs Farr is a graduate member of the Australia
Institute of Company Directors, Governance Institute of Australia (formerly Chartered Secretaries
Australia) and the Institute of Chartered Secretaries and Administrators. Mrs Farr was appointed
to the Jindalee Board in 2008.
Other current directorships
None
Former directorships in last 3
years
Special responsibilities
None
None
Interests in shares and options Ordinary Shares – Jindalee Resources Limited
406,533
Company Secretary Information
Mr Greg Ledger was appointed Company Secretary on 4 April 2002 and has held that position, as well as other accounting and
managerial roles since that date. Mr Ledger is a Chartered Accountant and holds a Bachelor of Commerce Degree from the
University of Western Australia.
Ms Farr was appointed joint Company Secretary on 1 July 2010. She is an experienced Chartered Secretary having provided
Company Secretarial services to several ASX listed companies and unlisted companies, the majority of which operate in the mineral
resources sector in Australia. Ms Farr is a graduate member of the Australian Institute of Company Directors and Governance Institute
of Australia (formerly Chartered Secretaries Australia).
1 3
ANNUAL REPORT 2017DIRECTORS’ REPORT Meetings of Directors
The following table sets out the number of meetings of the Company’s Directors held during the year ended 30 June 2017 the
numbers of meetings attended by each Director.
L Dudfield
J Mannolini
P Farr
Number Held Whilst in
Office
Number
Attended
5
5
5
5
5
5
As at the date of this report, the Group did not have an Audit Committee of the Board of Directors. The Board considers that due to
the Group’s size, an Audit Committee’s functions and responsibilities can be adequately and efficiently discharged by the Board as
a whole, operating in accordance with the Group’s mechanisms designed to ensure independent judgement in decision making.
Retirement, election and continuation in office of directors
Ms Patricia Farr is the director retiring by rotation who, being eligible, may offer herself for re-election at Annual General Meeting.
AUDITED REMUNERATION REPORT
The directors are pleased to present Jindalee Resources Limited 2017 remuneration report which sets out remuneration information for
the Company’s non-executive directors, executive directors and other key management personnel.
The report contains the following sections:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
Key management personnel disclosed in this report
Remuneration governance and the use of remuneration consultants
Executive remuneration policy and framework
Relationship between remuneration and the Group’s performance
Non-executive director remuneration policy
Voting and comments made at the Company’s 2016 Annual General Meeting
Details of remuneration
Service agreements
Details of share-based compensation and bonuses
Equity instruments held by key management personnel
Loans to key management personnel
Other transactions with key management personnel
(a)
Key management personnel disclosed in this report
J J Mannolini
Non-Executive Chairman (appointed Chairman effective 1 July 2016)
L G Dudfield
Managing Director (resigned as Executive Chairman effective 1 July 2016)
P A Farr
Executive Director/Company Secretary
For further details on each director see page 12-13.
1 4
JINDALEE RESOURCES LIMITEDDIRECTORS’ REPORT
(b)
Remuneration governance and use of remuneration
Board members are allocated superannuation guarantee
consultants
contributions as required by law, and do not receive any other
retirement benefits. From time to time, some individuals may
The Company does not have a formal remuneration policy and
choose to sacrifice their salary or consulting fees to increase
has not established a separate remuneration committee. Due to
payments towards superannuation.
the early stage of development and small size of the Company
a separate remuneration committee was not considered to
All remuneration paid to directors and specified executives is
add any efficiency to the process of determining the levels
valued at the cost to the Group and expensed. Options are
of remuneration for directors and key executives. The Board
valued using the Black-Scholes methodology.
considers that it is more appropriate to set aside time at a Board
meeting each year to specifically address matters that would
(d)
Relationship between remuneration and the Group’s
ordinarily fall to a remuneration committee such as reviewing
performance
remuneration, recruitment, retention and termination procedures
and evaluating senior executives remuneration packages and
The policy setting the terms and conditions for the executive
incentives.
directors, was developed and approved by the Board and is
considered appropriate for the current exploration phase of
In addition, all matters of remuneration will continue to be in
the Group’s development. Emoluments of Directors are set by
accordance with the Corporations Act requirement, especially
reference to payments made by other companies of similar size
with regard to related party transactions. That is, none of the
and industry, and by reference to the skills and experience of
directors participate in any deliberations regarding their own
directors. Fees paid to directors are not linked to the performance
remuneration or related issues.
of the Group. This policy may change once the exploration
phase is complete and the Company is generating revenue.
Independent external advice is sought from remuneration
At present the existing remuneration policy is not impacted by
consultants when required, however no advice has been sought
the Group’s performance including earnings and changes in
during the period ended 30 June 2017.
shareholder wealth (dividends, changes in share price or returns
of capital to shareholders). The Board has not set short term
The Corporate Governance Statement provides
further
performance indicators, such as movements in the Company’s
information on the Company’s remuneration governance.
share price, for the determination of director emoluments as the
Board believes this may encourage performance which is not
(c)
Executive remuneration policy and framework
in the long-term interests of the Company and its shareholders.
The Board has structured its remuneration arrangements in such
In determining executive remuneration, the Board aims to ensure
a way it believes is in the best interests of building shareholder
that remuneration practices are:
wealth in the longer term. The Board believes participation in
· Competitive and reasonable, enabling the Company
the Company’s Employee Share Option Plan motivates key
to attract and retain key talent
management and executives with the long-term interests of
·
·
·
Aligned to the Company’s strategic and business
shareholders.
objectives and the creation of shareholder value
Transparent and easily understood, and
Acceptable to shareholders.
All executives receive consulting fees or a salary, part of which
may be taken as superannuation, and from time to time,
options. Options issued to directors are subject to approval by
Shareholders. The Board reviews executive packages annually
by reference to the executive’s performance and comparable
information from industry sectors and other listed companies in
similar industries.
1 5
ANNUAL REPORT 2017DIRECTORS’ REPORT The following table shows the share price and the market capitalisation of the Group at the end of each of the last five financial years.
Share Price
Market Capitalisation
Dividends (cents per share)
2013
$0.18
$6.26M
-
2014
$0.165
$5.74M
-
2015
$0.17
$5.91M
-
2016
$0.23
$8.03M
-
2017
$0.21
$7.33M
-
(e)
Non-executive director remuneration policy
On appointment to the Board, all non-executive directors enter into a service agreement with the Company in the form of a letter of
appointment. The letter summarises the Board policies and terms including remuneration, relevant to the office of director.
The Board policy is to remunerate non-executive directors at commercial market rates for comparable companies for their time,
commitment and responsibilities.
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 and is currently set at $200,000 per annum.
Fees for non-executive directors are not linked to the performance of the Group. Non-executive directors’ remuneration may also
include an incentive portion consisting of options, subject to approval by Shareholders.
(f)
Voting and comments made at the Company’s 2016 Annual General Meeting
Jindalee received greater than 99% of “yes” votes on its remuneration report for the 2016 financial year. The Company did not
receive any specific feedback at the AGM or throughout the year on its remuneration practices.
(g)
Details of remuneration
The following table sets out details of the remuneration received by the Group’s key management personnel for the current and
previous financial year measured in accordance with the requirements of the accounting standards.
Short-term benefits
Post-
employment
benefits
Share-based payment
Remuneration
consisting of
options
Non-Executive
Fees
Consulting Fees
annuation
Options
Directors
Cash Salary,
Super-
Director/Chairman
J J Mannolini
2016
2017
Executive Directors
L G Dudfield
2016
P A Farr
2017
2016
2017
$
20,000
50,000
-
-
-
-
$
-
-
135,713
115,158
96,000
99,692
$
1,900
4,750
-
-
9,120
9,471
$
-
-
-
-
-
-
Shares
$
20,000
-
-
-
-
-
Total
$
41,900
54,750
135,713
115,158
105,120
109,163
%
-
-
-
-
-
-
1 6
JINDALEE RESOURCES LIMITEDDIRECTORS’ REPORT
(h)
Service Agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements. The service
agreements specify the components of remuneration, benefits and notice periods.
L G Dudfield
Mr Dudfield was appointed a director on 22 January 1996 and is Managing Director. Mr Dudfield is remunerated pursuant to the
terms and conditions of a consultancy agreement entered into with Mr Dudfield and Jopan Management Pty Ltd trading as Western
Geological Services. During the financial year ended 30 June 2017, Mr Dudfield was paid consulting fees of $115,158. Unless extended
for a further period, the current consultancy agreement will expire in June 2019. The agreement may be terminated by either party
on the giving on 90 days notice or earlier in the event of a default not remedied within 14 days. Mr Dudfield is not entitled to any
termination benefits.
J J Mannolini
Mr Mannolini was appointed a Non-Executive Director on 30 September 2013 and appointed Chairman on 1 July 2016.
Mr Mannolini’s directors’ fees have been set at $50,000 plus statutory superannuation of $4,750 per annum in accordance with
his letter of appointment. Mr Mannolini’s appointment is contingent upon satisfactory performance and successful re-election by
shareholders of the Company as and when required by the Constitution of the Company and the Corporations Act. Mr Mannolini is
not entitled to any termination benefits.
P A Farr
Ms Farr was appointed as a director on 29 August 2008. Ms Farr is paid a salary of $120,000 per annum plus statutory superannuation
pursuant to the terms and conditions of an ongoing employment contract. Due to reduced hours during the financial year Ms
Farr was paid a salary and superannuation of $109,163 for the year ended 30 June 2017. Ms Farr’s employment contract may be
terminated by either party on the giving of one month’s notice. Upon termination of the contract for any reason the Company will
pay leave entitlements due to Ms Farr.
(i)
Details of share-based compensation and bonuses
Options over shares in Jindalee Resources Limited are granted under the Employee Share Option Plan. Participation in the plan and
any vesting criteria, is at the Board’s discretion and no individual has a contractual right to participate in the plan or to receive any
guaranteed benefits. Any options issued to directors of the Company are subject to shareholder approval.
(i)
Details of share-based compensation and bonuses (continued)
Details of options over ordinary shares in the Company provided as remuneration to each director of the Company are set out below.
All options are fully vested on grant date.
Name
L G Dudfield
J J Mannolini
P A Farr
Grant Date
Vesting &
exercise date
Expiry date
Exercise
Price
Value per option
at Grant Date
% vested
26/11/2014
26/11/2014
30/06/2017
28/11/2013
28/11/2013
30/06/2017
26/11/2014
26/11/2014
30/06/2017
$0.50
$0.50
$0.50
$0.01644
$0.07
$0.01644
100%
100%
100%
1 7
ANNUAL REPORT 2017DIRECTORS’ REPORT
The fair value of services received in return for share options granted to employees is measured by reference to the fair value of
options granted. The estimate of the fair value of the services is measured based on Black-Scholes option valuation methodology.
The life of the options and early exercise option are built into the option model.
No bonuses were paid during the year and there is currently no bonus scheme in place.
All options on issue expired unexercised on 30 June 2017. Further information on the fair value of share options and assumptions is set
out in Note 18 to the financial statements.
(j)
Equity instruments held by key management personnel
The following tables detail the number of fully paid ordinary shares and options over ordinary shares in the Company that were held
during the financial year and the previous financial year by key management personnel and their associated related parties.
Balance at
the start of
the year
Options/
Shares
granted as
compensation
Received
during the
year on the
exercise of
options
Number
of options
vested
during
year
Number
of options
forfeited
during
the year
Other
changes
during
the year
Balance
at the end
of the year
Vested and
exercisable Unvested
2017
Name
L G Dudfield
Ordinary fully
paid shares
11,919,416
Unlisted Options
1,000,000
(ASX Code
JRLAK)
P A Farr
Ordinary fully
paid shares
Unlisted Options
(ASX Code
JRLAK)
J J Mannolini
Ordinary fully
paid shares
Unlisted Options
(ASX Code
JRLAK)
Securities Policy
306,533
500,000
100,000
500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
61,428
11,980,844
1,000,000
-
500,000
-
500,000
-
-
-
-
-
-
306,533
-
100,000
-
-
-
-
-
-
-
-
-
-
-
-
-
The Company has implemented a policy on trading in the Company’s securities designed to ensure that all directors, senior
management and employees of the Company act ethically and do not use confidential inside information for personal gain. The
policy states acceptable and unacceptable times for trading in Company securities and outlines the responsibility of directors, senior
management and employees to ensure that trading complies with the Corporations Act 2001, the Australian Securities Exchange
(ASX) Listing Rules and Company Policy. A copy of this policy was lodged with the ASX and is available on the Company’s website.
Any transaction conducted by Directors with regards to shares of the Company requires notification to the ASX. Each Director has
entered into an agreement to provide any such information with regards to Company dealings directly to the Company Secretary
promptly to allow the Company to notify the ASX within the required reporting timeframes.
1 8
JINDALEE RESOURCES LIMITEDDIRECTORS’ REPORT Shares provided on exercise of options
During the year, no ordinary shares in the Company were provided as a result of the exercise of remuneration options.
For details on the valuation of the options, including models and assumptions used, please refer to Note 18. There were no alterations
to the terms and conditions of options granted as remuneration since their grant date.
(k)
Loans to key management personnel
There were no loans to individuals or members of key management personal during the financial year or the previous financial year.
(l)
Other transactions with key management personnel
During the year the Group paid a total of $115,158 to Western Geological Services (a division of Jopan Management Pty Ltd), the fees
being for the provision of technical and management services provided to the Group by Mr Lindsay Dudfield. Mr Dudfield’s spouse is
the major shareholder of and the sole director and company secretary of Jopan Management Pty Ltd.
End of Audited Remuneration Report
Shares under option
Unissued ordinary shares of the Company under option at the date of this report are as follows:
Grant Date
22/08/2017
Number
400,000
Date vested & exercisable
Expiry Date
Exercise Price
22/08/2017
30/06/2022
$0.40
No option holder has any right under the options to participate in any other share issue of the Company or any other entity.
Shares Issued on Exercise of Options
There were no shares issued on exercise of options during the year and up to the date of this report.
Directors and Officers insurance
Jindalee Resources Limited paid a premium during the year in respect of directors’ and officers’ liability insurance policy, insuring the
directors and officers of the company against a liability incurred whilst acting in the capacity of a director, secretary or executive
officer to the extent permitted by the Corporations Act 2001. The Directors have not included details of the nature of the liabilities
covered or the amount of the premium paid in respect of the policy as such disclosure is prohibited under the terms of the contract
of insurance.
Corporate Governance Statement
The Company’s 2017 Corporate Governance Statement has been released as a separate document and is located on the
Company’s website at http://jindalee.net/corporate-governance/
1 9
ANNUAL REPORT 2017DIRECTORS’ REPORT Proceedings on behalf of the Company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the
Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility on behalf of
the Company for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section 237 of the
Corporations Act 2001.
Non-audit services
The Company from time to time may decide to employ the auditor on assignments additional to their statutory audit duties where the
auditor’s expertise and experience with the Company is important.
The Board of Directors has considered the position and is satisfied that the provision of the non-audit services is compatible with the
general standard of independence for auditors imposed by the Corporations Act 2001. The Directors are satisfied that the provision of
non-audit services by the auditor as set out below did not compromise the auditor independence requirements of the Corporations
Act 2001 for the following reasons:
·
·
the non-audit services have been reviewed by the Board to ensure they do no impact on the impartiality and objectivity of
the auditor; and
none the services undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics
for Professional Accountants.
During the year ended 30 June 2017 and in the previous financial year there were no fees paid or payable for non-audit services
provided by the auditor of Jindalee Resources Limited.
Auditor’s Independence Declaration
A copy of the auditor’s independence declaration as required by section 307C of the Corporations Act 2001 is included on page 51.
This report is signed in accordance with a resolution of the Directors.
L G DUDFIELD
Managing Director
Perth
7 September 2017
2 0
JINDALEE RESOURCES LIMITEDDIRECTORS’ REPORT CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2017
Revenue from continuing operations
Other income
Employee benefits expense
Share-based payments
Depreciation expense
Exploration expenditure
Impairment of exploration assets
Impairment of available for sale financial assets
Tenancy and operating expenses
Other administration expenses
Corporate and regulatory expenses
Loss before income tax
Income tax benefit
Loss after income tax
Note
2017
$
2016
$
4
4
18
12
13
11
98,480
130,009
368,886
(176,786)
-
(6,140)
(64,162)
(332,533)
-
(89,015)
(123,252)
(60,774)
-
(148,242)
(20,000)
(6,374)
(183,439)
(154,510)
(425,578)
(92,995)
(95,818)
(59,674)
(385,296)
(1,056,621)
5
-
-
(385,296)
(1,056,621)
Loss attributable to owners of Jindalee Resources Limited
(385,296)
(1,056,621)
Other comprehensive income/(loss)
Items that may be reclassified to profit or loss
Revaluation of investments taken to equity
Other comprehensive income/(loss) for the year
127,391
127,391
2,700
2,700
Total comprehensive loss for the year attributable to the ordinary equity
holders of the Company
(257,905)
(1,053,921)
Loss per share attributable to the ordinary equity holders of the Company
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
7
7
(1.01)
(1.01)
(3.03)
(3.03)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes.
2 1
ANNUAL REPORT 2017
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
AS AT 30 JUNE 2017
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Total Current Assets
NON-CURRENT ASSETS
Available for sale financial assets
Other receivables
Property, plant and equipment
Exploration and evaluation expenditure
Total Non-Current Assets
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Dividend payable
Provision for annual leave
Total Current Liabilities
NON-CURRENT LIABILITIES
Total Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Accumulated losses
Reserves
TOTAL EQUITY
Note
2017
$
2016
$
9
10
11
10
12
13
14
8
3,282,998
4,171,556
67,589
46,558
3,350,587
4,218,114
1,985,841
1,489,458
138,413
36,299
134,707
-
20,424
145,842
2,295,260
1,655,724
5,645,847
5,873,838
45,998
73,485
8,737
128,220
13,599
73,485
11,222
98,306
-
-
128,220
98,306
5,517,627
5,775,532
15
16
17
7,227,254
7,227,254
(3,809,492)
(3,424,196)
2,099,865
1,972,474
5,517,627
5,775,532
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
2 2
JINDALEE RESOURCES LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2017
Cash flows from operating activities
Payments in the course of operations
Interest received
Note
2017
$
2016
$
(507,010)
111,788
(599,439)
134,488
Net cash outflow from operating activities
6
(395,222)
(464,951)
Cash flows from investing activities
Payments for exploration and evaluation
Payments for property, plant and equipment
Payment of bonds
Payments for purchase of equity investments
(332,908)
(22,015)
(138,413)
-
(85,206)
(6,818)
-
(7,500)
Net cash outflow from investing activities
(493,336)
(99,524)
Cash flows from financing activities
Payment of dividend
Net cash outflow from financing activities
-
-
(2,593)
(2,593)
Net decrease in cash and cash equivalents
(888,558)
(567,068)
Cash and cash equivalents at the beginning of the financial year
4,171,556
4,738,624
Cash and cash equivalents at the end of the financial year
9
3,282,998
4,171,556
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
2 3
ANNUAL REPORT 2017 CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2017
Consolidated
Contributed
equity
Share-
based
payment
reserve
Available
for sale
investments
revaluation
reserve
Retained
earnings/
accumulated
losses
Total equity
$
$
$
$
$
Balance at 1 July 2015
7,207,254
1,969,774
Total comprehensive loss for the
year:
Loss for the year
Other comprehensive income
Revaluation of investments
Total comprehensive loss for the
year
Transactions with owners in their
capacity as owners
Share-based payments
-
-
-
20,000
-
-
-
-
-
-
(2,367,575)
6,809,453
(1,056,621)
(1,056,621)
2,700
-
2,700
2,700
(1,056,621)
(1,053,921)
-
-
20,000
Balance at 30 June 2016
7,227,254
1,969,774
2,700
(3,424,196)
5,775,532
Total comprehensive loss for the
year:
Loss for the year
Other comprehensive income
Revaluation of investments
Total comprehensive loss for the
year
Transactions with owners in their
capacity as owners
Share-based payments
-
-
-
-
-
-
-
-
-
(385,296)
(385,296)
127,391
-
127,391
127,391
(385,296)
(257,905)
-
-
-
Balance at 30 June 2017
7,227,254
1,969,774
130,091
(3,809,492)
5,517,627
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
2 4
JINDALEE RESOURCES LIMITED NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
1. CORPORATION INFORMATION
These financial statements of Jindalee Resources Limited for the year ended 30 June 2017 were authorised for issue in accordance
with a resolution of directors on 7 September 2017.
The financial statements cover the Group of Jindalee Resources Limited and it’s controlled entities. Jindalee Resources Limited is a
company limited by shares incorporated in Australia whose shares are publicly traded on the Australian Securities Exchange.
The nature of the operations and principal activities of the Group are described in Note 3.
Unless otherwise stated, policies adopted in the preparation of the financial statements are consistent with those of the previous year.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
In order to assist in the understanding of the accounts, the following summary explains the material accounting policies that have
been adopted in the preparation of the accounts.
(a)
Statement of Compliance
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards, other
authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations and the Corporations
Act 2001.
Compliance with IFRS
The consolidated financial statements of Jindalee Resources Limited also comply with International Financial Reporting Standards
(IFRS) as issued by the International Accounting Standards Board (IASB).
New and amended accounting standards and interpretations adopted by the company
The following standards and interpretations relevant to the operations of the Company and effective from 1 July 2016 have been
adopted. The adoption of these standards did not have any impact on the current period or any prior period and is not likely to affect
future periods.
· AASB 2014-9: Amendments to Australian Accounting Standards Amendments to – Equity Method in Separate Financial
Statements
· AASB 2015-1: Amendments to Australian Accounting Standards - Annual Improvements to Australian Accounting Standards
2012 – 2014
· AASB 2015-2: Amendments to Australian Accounting Standards - Disclosure Initiative: Amendments to AASB 101
New accounting standards and interpretations
The following new and amended accounting standards and interpretations relevant to the operations of the Company have been
published but are not mandatory for the current financial year. The Company has decided against early adoption of these standards,
and has not yet determined the potential impact on the financial statements from the adoption of these standards and interpretations.
2 5
ANNUAL REPORT 2017 NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
The key new standards and interpretations which may impact the Company in future years are detailed below:
AASB 9: Financial Instruments
New or revised requirement Application date of
standard
1 Jan 2018
Application date
for Company
1 Jul 2018
AASB 9 replaces AASB 139: Financial Instruments: Recognition and Measurement. The
objective of this Standard is to establish principles for the financial reporting of financial
assets and financial liabilities that will present relevant and useful information to users
of financial statements for their assessment of the amounts, timing and uncertainty of
an entity’s future cash flows.
AASB 15: Revenue from Contracts with Customers
1 Jan 2018
1 Jul 2018
The objective of this Standard is to establish the principles that an entity shall apply to
report useful information to users of financial statements about the nature, amount,
timing and uncertainty of revenue and cash flows arising from a contract with a
customer.
AASB 2016-5: Amendments to Australian Accounting Standards - Classification and
1 Jan 2018
1 Jul 2018
Measurement of Share-based Payment Transactions
This Standard amends AASB 2: Share-based Payment, clarifying how to account
for certain types of share-based payment transactions. The amendments provide
requirements on the accounting for:
· The effects of vesting and non-vesting conditions on the measurement of cash-
settled share-based payments
· Share-based payment transactions with a net settlement feature for withholding
tax obligations
· A modification to the terms and conditions of a share-based payment that
changes the classification of the transaction from cash-settled to equity-settled.
AASB 16: Leases
1 Jan 2019
1 Jul 2019
This Standard sets out the principles for the recognition, measurement, presentation and
disclosure of leases. The objective is to ensure that lessees and lessors provide relevant
information in a manner that faithfully represents those transactions. This information
gives a basis for users of financial statements to assess the effect that leases have on
the financial position, financial performance and cash flows of an entity.
(c)
Basis of Preparation/Accounting
The financial statements have been prepared on an accruals basis and is based on historical costs and does not take into account
changing money values or, except where stated, current valuations of non-current assets. Cost is based on the fair values of the
consideration given in exchange for assets.
In applying IFRS, management is required to make judgements, estimates and assumptions that affect the application of accounting
policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based
on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which
form the basis of making judgements about carrying values of assets and liabilities that are not readily available from other sources.
Actual results may differ from these estimates.
2 6
JINDALEE RESOURCES LIMITED NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if
the revision affects both current and future periods.
Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts
of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported. These
accounting policies have been consistently applied throughout the period.
The significant accounting policies set out below have been applied in the preparation and presentation of the financial statements
for the year ended 30 June 2017 and the comparative information.
(d)
Principles of Consolidation
The consolidated financial statements incorporate the assets and liabilities of the subsidiary of Jindalee Resources Limited (“Company”
or “Parent Entity”) as at 30 June 2017 and the results of all subsidiaries for the year then ended. Jindalee Resources Limited and its
subsidiary together are referred to in the financial statements as the Group or consolidated entity.
Subsidiaries are all entities (including special purpose entities) over which the Group has the power to govern the financial and
operating policies, generally accompanying a shareholding of more than one-half of the voting rights. The existence and effect
of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls
another entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date
that control ceases.
The acquisition method of accounting is used to account for business combinations by the Group.
Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised
losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of
subsidiaries are changed where necessary to ensure consistency with the policies adopted by the Group.
Investments in subsidiaries are accounted for at cost in the parent entity information disclosures of Jindalee Resources Limited.
Changes in ownership interests
The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners
of the Group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-
controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-
controlling interests and any consideration paid or received is recognised in a separate reserve within equity attributable to owners
of Jindalee Resources Limited.
When the Group ceases to have control, joint control or significant influence, any retained interest in the entity is remeasured to its
fair value with the change in carrying amount recognised in profit or loss. The fair value is the initial carrying amount for the purposes
of subsequently accounting for the retained interest as an associate, jointly controlled entity or financial asset. In addition, any
amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the Group had
directly disposed of the related assets or liabilities. This may mean that the amounts previously recognised in other comprehensive
income are reclassified to profit or loss.
2 7
ANNUAL REPORT 2017 NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
If the ownership interest in a jointly-controlled entity or an associate is reduced but joint control or significant influence is retained, only
a proportionate share of the amounts previously recognised in other comprehensive income are reclassified to profit or loss where
appropriate.
(e)
Cash and Cash Equivalents
For the purposes of the statement of cash flows, cash and cash equivalents includes cash on hand, and deposits repayable on
demand with a financial institution. The cash and cash equivalents balance primarily consists of funds on term deposit with original
maturity at time of purchase of three months or less that are readily convertible to known amounts of cash and which are subject to
minimal risk of changes in value.
(f)
Trade and Other Receivables
Receivables are initially recognised at fair value and subsequently measured at amortised cost, less provision for doubtful debts.
Current receivables for GST are due for settlement within 30 days and other current receivables within 12 months. Cash on deposit
in respect of environmental bonds is not due for settlement until rights of tenure are forfeited or performance obligations are met.
Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off by
reducing the carrying amount directly. An allowance account (provision for doubtful debts) is used when there is objective evidence
that the Group will not be able to collect all amounts due according to the original terms of the receivables. Significant financial
difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganization, and default or delinquency
in payments (more than 30 days overdue) are considered indicators that the trade receivable is impaired. The amount of the
impairment allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows,
discounted at the original effective interest rate. Cash flows relating to short-term receivables are not discounted if the effect of
discounting is immaterial.
The amount of the impairment loss is recognized in the statement of profit or loss and other comprehensive income within other
expenses. When a trade receivable for which an impairment allowance had been recognised becomes uncollectible in a subsequent
period, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against
other expenses in the statement of profit or loss and other comprehensive income.
(g)
Revenue Recognition
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.
All revenue is stated net of the amount of goods and services tax.
Revenue in relation to joint venture agreements is recognised over the period the services are rendered. Revenue from the sale of
investments is recorded when all risks and rewards relating to the assets are posted to the third party.
(h)
Property, Plant and Equipment
Plant and equipment is stated at cost less accumulated depreciation and any impairment in value.
Depreciation is calculated using the diminishing value and prime cost methods and is brought to account over the estimated
economic lives of all property, plant and equipment. The rates used are based on the useful life of the assets and range from 10%
to 40%.
2 8
JINDALEE RESOURCES LIMITED NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
An assets carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its
estimated recoverable amount.
Depreciation methods, useful lives and residual values are reassessed at each reporting date.
(i)
Impairment of Assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists,
or when annual impairment testing for an asset is required, the Group makes an estimate of the asset’s recoverable amount. An
asset’s recoverable amount is the higher of its fair value less costs to sell and its value in use and is determined for an individual asset,
unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets and the
asset’s values in use cannot be estimated to be close to its fair value. In such cases the asset is tested for impairment as part of the
cash generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit exceeds it’s recoverable
amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses relating to
continuing operations are recognised in those expense categories consistent with the function of the impaired asset unless the asset
is carried at revalued amount (in which case the impairment loss is treated as a revaluation decrease).
As assessment is also made at each reporting date as to whether there is any indication that previously recognised impairment losses
may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised
impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount
since the last impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its recoverable
amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had
the impairment loss been recognised for the asset in prior years. Such reversal is recognised in profit or loss unless the asset is carried
at the revalued amount, in which case the reversal is treated as a revaluation increase. After such a reversal the depreciation charge
is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its
remaining useful life.
(j)
Exploration and Evaluation Expenditure
The Groups policy with regards to exploration and evaluation expenditure, including the costs of acquiring licences and permits,
are capitalised as exploration and evaluation assets on an area of interest basis. Under this method exploration and evaluation
expenditure is carried forward on the following basis:
i) Each area of interest is considered separately when deciding whether, and to what extent, to carry forward or write off
exploration and evaluation costs.
ii) Exploration and evaluation expenditure related to an area of interest is carried forward provided that rights to tenure of
the area of interest are current and that one of the following conditions is met:
-
such evaluation costs are expected to be recouped through successful development and exploitation of the area
of interest or alternatively, by its sale; or
2 9
ANNUAL REPORT 2017
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
-
exploration and/or evaluation activities in the area of interest have not yet reached a stage which permits a
reasonable assessment of the existence or otherwise of economically recoverable reserves and active and
significant operations in relation to the area are continuing.
Exploration and evaluation costs accumulated in respect of each particular area of interest include only net direct expenditure.
(k)
Trade and Other Payables
Trade payables and other payables are carried at cost and represent liabilities for goods and services provided to the Group prior to
the end of the financial year that are unpaid and arise when the Group becomes obliged to make future payments in respect of the
purchase of these goods and services. The amounts are unsecured and usually paid within 30 days of recognition.
(l)
Employee Entitlements
The Group’s liability for employee entitlements arising from services rendered by employees to reporting date are recognised in other
payables. Employee entitlements expected to be settled within one year together with entitlements arising from wages and salaries,
and annual leave which will be settled within one year, have been measured at their nominal amount and include related on-costs.
The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected
future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit
method. Consideration is given to the expected future wage and salary levels, experience of employee departures and periods of
service. Expected future payments are discounted using market yields at the reporting date on national government bonds with
terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.
(m)
Share Based Payment Transactions
Share based payments
Under AASB 2 Share Based Payments, the Group must recognise the fair value of options granted to directors, employees and
consultants as remuneration as an expense on a pro-rata basis over the vesting period in the statement of profit or loss and other
comprehensive income with a corresponding adjustment to equity.
The Group provides benefits to employees (including directors) of the Group in the form of share based payment transactions,
whereby employees render services in exchange for shares or rights over shares (“equity-settled transactions”). The cost of these
equity-settled transactions with employees (including directors) is measured by reference to fair value at the date they are granted.
For Options the fair value is determined using a Black-Scholes model.
3 0
JINDALEE RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(n)
Earnings Per Share
(i)
Basic Earnings Per Share
Basic earnings per share is determined by dividing the operating loss attributable to the equity holder of the Group after
income tax by the weighted average number of ordinary shares outstanding during the financial period.
(ii) Diluted Earnings Per Share
Diluted earnings per share adjusts the figures used in determination of basic earnings per share by taking into account amounts
unpaid on ordinary shares and any reduction in earnings per share that will arise from the exercise of options outstanding
during the period.
(o)
Contributed Equity
Issued and paid up capital is recognised at the fair value of the consideration received by the Group. Any transaction costs arising
on the issue of ordinary shares are recognised directly in equity as a reduction of the share proceeds received.
(p)
Income Tax and Other Taxes
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or
paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively
enacted by the reporting date.
Deferred income tax is provided on all temporary differences at the statement of financial position date between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except:
·
·
When the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction
that is not a business combination and that, at the time of the transaction, affects neither the accounting profit nor taxable
profit or loss; or
When the taxable temporary difference is associated with investments in subsidiaries, associates or interests in joint ventures,
and the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference
will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused
tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences
and the carry-forward of unused tax credits and unused tax losses can be utilised, except:
·
When the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of
an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss; or
3 1
ANNUAL REPORT 2017
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
·
When the deductible temporary difference is associated with investments in subsidiaries, associates or interest in joint ventures,
in which case a deferred tax asset is only recognised to the extent that it is probable that the temporary difference will reverse
in the foreseeable future and taxable profit will be available against which the temporary difference can be utilised.
The carrying amount of deferred income tax assets is reviewed at each statement of financial position date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset
to be utilised.
Unrecognised deferred income tax assets are reassessed at each statement of financial position date and are recognised to the
extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Income taxes relating to items recognised directly in equity are recognised in equity and not in profit or loss.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets against
current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority.
Goods & Services Tax
Revenues, expenses and assets are recognised net of the amount of GST except:
· Where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case
the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and
·
Receivables and payables are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the
statement of financial position.
Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flow arising from investing and
financing activities, which is recoverable from, or payable to, the taxation authority are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.
(q)
Critical Accounting Estimates and Judgements
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations
of future events that may have a financial impact on the Group and that are believed to be reasonable under the circumstances.
Accounting for capitalised exploration and evaluation expenditure
The Group’s accounting policy is stated at Note 2(j). There is some subjectivity involved in the carrying forward as capitalised or
writing off to the statement of profit or loss and other comprehensive income exploration and evaluation expenditure, however
management give due consideration to areas of interest on a regular basis and are confident that decisions to either write off or carry
forward such expenditure fairly reflect the prevailing situation.
Share-based payments
The Group measures share-based payments at fair value at the grant date. The fair value is determined using a Black-Scholes model
or other valuation technique appropriate for the instrument being valued.
3 2
JINDALEE RESOURCES LIMITED NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Deferred tax balances
Deferred tax assets in respect of tax losses are not recognised in the financial statements as management considers that it is currently
not probable that future taxable profits will be available to utilise those tax losses. Management reviews on a regular basis the future
profitability of the group to consider if tax losses should be recognised and to ensure that any tax losses recognised will be utilised.
Impairment of available for sale financial assets
The Company determines an impairment loss on the available for sale investments held when there has been a significant or prolonged
decline in fair value below original cost. Management exercises judgement in determining what is ‘significant’ or ‘prolonged’ by
evaluating, among other factors, whether the decline is outside the normal range of volatility in the asset’s price, a deterioration in
the financial health of the company whose securities are held, or problems with the investee company’s operational or financing
cash flows.
(r)
Investment and other financial assets
Financial Instruments
The Group has exposure to interest rate risk which is the risk that the Group’s financial position will be adversely affected by movements
in interest rates. Interest rate risk on cash and short term deposits is not considered to be a material risk due to the short term nature
of these financial instruments.
The Group has no monetary foreign currency assets or liabilities.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active
market. They are included in current assets, except for those with maturities greater than 12 months after the reporting date which
are classified as non-current assets.
Available for sale financial assets
Available-for-sale financial assets, comprising principally marketable equity securities, are non-derivatives that are either designated
in this category or not classified in any of the other categories. They are included in non-current assets unless management intends
to dispose of the investment within 12 months of the reporting date. Investments are designated as available-for-sale if they do not
have fixed maturities and fixed or determinable payments and management intends to hold them for the medium to long term.
Recognition and derecognition
Regular purchases and sales of financial assets are recognised on trade-date – the date on which the Group commits to purchase
or sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not carried at fair
value through profit or loss. Financial assets carried at fair value through profit and/or loss are initially recognised at fair value and
transaction costs are expensed in the statement of profit or loss and other comprehensive income. Financial assets are derecognised
when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred
substantially all the risks and rewards of ownership.
When securities classified as available-for-sale are sold, the accumulated fair value adjustments recognised in equity are included in
the statement of profit or loss and other comprehensive income as gains and losses from investment securities
Subsequent measurement
Loans and receivables and held-to-maturity investments are carried at amortised cost using the effective interest method.
Available-for-sale financial assets are subsequently carried at fair value. Gains on available-for-sale financial assets are recognised
3 3
ANNUAL REPORT 2017 NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
in other comprehensive income.
Details on how the fair value of financial instruments is determined is disclosed in Notes 19 and 22.
Impairment
The Group assesses at each reporting date whether there is objective evidence that a financial asset or group of financial assets is
impaired. In the case of equity securities classified as available-for-sale, a significant or prolonged decline in the fair value of a security
below its cost is considered as an indicator that the securities are impaired. If any such evidence exists for available-for-sale financial
assets, the cumulative loss – measured as the difference between the acquisition cost and the current fair value, less any impairment
loss on that financial asset previously recognised in profit or loss – is removed from equity and recognised in the statement of profit
or loss and other comprehensive income. Impairment losses recognised in the statement of profit or loss and other comprehensive
income on equity instruments classified as available-for-sale are recognised in equity.
(s)
Provisions
Provisions are measured at the present value of managements best estimate of the expenditure required to settle the present
obligation at the reporting date. The discount rate used to determine the present value reflects current market assessments of the
time value of money and the risks specific to the liability.
(t)
Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the
entity, on or before the end of the reporting period but not distributed at the end of the reporting period.
(u)
Leases
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Group as lessee are classified as
operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss
on a straight-line basis over the period of the lease.
3 4
JINDALEE RESOURCES LIMITED NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
3.
SEGMENT INFORMATION
Management has determined that the Group has one reportable segment, being mineral exploration in Australia. As the Group is
focused on mineral exploration, the Board periodically monitors the Group based on actual versus budgeted exploration expenditure
incurred on the Group as a whole. This internal reporting framework is most relevant to assist the Board with making decisions regarding
the Group and its ongoing exploration programmes and activities, while also taking into consideration the results of exploration work
that has been performed to date.
Year ended 30 June 2017
Reconciliation of segment revenue to Group revenue
Revenue from external sources
Unallocated revenue
Total revenue
Reconciliation of segment result to Group loss
Segment result
Unallocated
Interest revenue
-
- Corporate expenses and other costs, net of other income
Loss before tax
As at 30 June 2017
Reconciliation of segment assets to Group assets
Segment assets
Intersegment eliminations
Total assets
Reconciliation of segment liabilities to Group liabilities
Segment liabilities
Intersegment eliminations
Total liabilities
Mineral exploration
$
-
Total
$
-
98,480
98,480
(204,594)
(204,594)
98,480
(279,182)
(385,296)
5,645,847
5,645,847
-
5,645,847
(128,220)
(128,220)
-
(128,220)
3 5
ANNUAL REPORT 2017 NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
3. SEGMENT INFORMATION (continued)
Year ended 30 June 2016
Reconciliation of segment revenue to Group revenue
Revenue from external sources
Unallocated revenue
Total revenue
Reconciliation of segment result to Group loss
Segment result
Unallocated
Interest revenue
-
- Corporate expenses and other costs
Loss before tax
As at 30 June 2016
Reconciliation of segment assets to Group assets
Segment assets
Intersegment eliminations
Total assets
Reconciliation of segment liabilities to Group liabilities
Segment liabilities
Intersegment eliminations
Total liabilities
4.
REVENUE AND INCOME
Revenue from continuing operations
Interest
Other income
Gain on disposal of interest in Cardinia JV
Other
3 6
Jindalee
$
-
Total
$
-
130,009
130,009
(911,768)
(911,768)
130,009
(274,863)
(1,056,622)
5,873,838
5,873,838
-
5,873,838
98,306
-
98,306
98,306
2017
$
2016
$
98,480
130,009
358,490
10,396
368,886
-
-
-
JINDALEE RESOURCES LIMITED NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
5.
TAXATION
(a) Income tax expense/(benefit)
Current tax
Deferred tax
Deferred income tax expense included in income tax expense/(benefit) comprises:
(Decrease)/increase in deferred tax liability
Opening balance - deferred tax (asset)/ liability
Movement for period
Closing Balance – deferred tax (asset)/ liability
(b) Numerical reconciliation of income tax expense to prima facie tax payable
Loss before income tax:
Tax at the Australian tax rate of 27.5% (2016: 28.5%)
Tax effect of amounts which are not deductible in calculating taxable income:
Non-deductible expenses
Tax losses not recognised
Share-based payments
Total income tax benefit
2017
$
2016
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(385,296)
(1,056,621)
(105,956)
(301,137)
737
105,219
-
-
-
295,437
5,700
-
The franking account balance at year end was $nil (2016: $nil).
Jindalee Resources Limited and its wholly owned subsidiary have not implemented the tax consolidation legislation.
Jindalee Resources Limited has unrecognised deferred tax assets at year-end of $895,082 (2016: $817,815) representing
unrecognised tax losses.
In 2017 the Australian Government enacted a change in the income tax rate for small business entities from 28.5% to 27.5%.
Jindalee satisfies the criteria to be a small business entity.
3 7
ANNUAL REPORT 2017
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
6.
RECONCILIATION OF LOSS AFTER INCOME TAX TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES
Loss after income tax
Exploration expenditure written off
Depreciation
Gain on sale of interest in Cardinia JV1
Impairment of available for sale financial assets net of tax
Share-based payments
Change in operating assets and liabilities during the financial year:
(Increase)/decrease in trade and other receivables
Increase/(decrease) in trade and other payables
Increase/(decrease) in provisions
Net cash outflow from operating activities
1
Proceeds of sale satisfied by receipt of shares in Kin Mining NL
7.
EARNINGS PER SHARE
Loss used in calculation of basic and diluted loss per share
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
2017
$
2016
$
(385,296)
(1,056,622)
332,533
6,140
(358,490)
-
-
154,509
6,374
-
425,578
20,000
13,308
(932)
(2,485)
4,479
(3,267)
(16,002)
(395,222)
(464,951)
2017
$
2016
$
(385,296)
(1,056,621)
(1.10)
(1.10)
(3.03)
(3.03)
Weighted average number of ordinary shares used as the denominator in calculating
basic loss per share.
34,894,775
34,854,501
Adjustments for calculation of diluted loss per share:
-
-
- Options
Weighted average number of ordinary shares and potential ordinary shares used as the
denominator in calculating diluted loss per share
34,894,775
34,854,501
Options on issue were not considered to be dilutive as their impact would have been to increase the loss per share.
8.
DIVIDENDS
As at 30 June 2017 the Company held $73,485 in unclaimed dividends (2016: $73,485).
No dividend has been declared for the year ended 30 June 2017 (2016: nil).
3 8
JINDALEE RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
9.
CASH AND CASH EQUIVALENTS
Term deposits
Cash at bank
2017
$
2016
$
3,113,431
3,593,696
169,567
577,860
3,282,998
4,171,556
Term deposits include $145,414 deposited as guarantees. The Group’s exposure to interest rate risk is disclosed in Note 19.
10.
TRADE AND OTHER RECEIVABLES
Current
Trade and other receivables
Non-current
Other receivables (deposits)
2017
$
2016
$
67,589
46,558
138,413
-
Trade and other receivables are denominated in Australian dollars are interest free with settlement terms of between 7 and 30 days.
No trade receivables were past due or impaired as at 30 June 2017 (2016: nil).
Due to the short-term nature of these receivables their carrying value is assumed to be their fair value. Please refer to Note 19 for
information on credit risk.
11.
NON-CURRENT - AVAILABLE-FOR-SALE FINANCIAL ASSETS
Shares in listed corporations
-
-
-
-
-
Opening balance
Additions1
Revaluation increase/ (decrease)
Impairment charge
Closing balance
2017
$
2016
$
1,489,458
1,904,836
370,000
126,383
7,500
2,700
-
(425,578)
1,985,841
1,489,458
The fair value of listed available-for-sale investments has been determined directly by reference to published price quotations in an
active market.
At 30 June 2017 the market value of the Group’s shareholding in Energy Metals was $1,263,446 (2016: $1,123,063) and Kin Mining NL
was $350,000 (2016: $nil).
Refer to Note 19 for information on Group’s exposure to price risk.
1On 26 May 2017 the Company executed an agreement with Kin Mining NL (“Kin”) for the sale of the Company’s 11% interest in the
Cardinia Project. Consideration for the sale was 1,000,000 ordinary shares in Kin. The sale transaction was subsequently completed
on 27 June 2017. On completion date, Kin’s ordinary shares had a fair value of $0.37 /share, being the published price quotation.
3 9
ANNUAL REPORT 2017
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
12.
NON-CURRENT ASSETS - PROPERTY, PLANT AND EQUIPMENT
Plant and equipment - at cost
Less: accumulated depreciation
Reconciliation of the carrying amount of property, plant and equipment:
Carrying amount
Additions and disposals (net)
Less: depreciation expense for year
Carrying amount
Total property, plant and equipment
13.
NON-CURRENT ASSETS – EXPLORATION AND EVALUATION EXPENDITURE
Balance at beginning of year
Exploration expenditure incurred
Disposal of interest in JV
Exploration expenditure written off
Balance at the end of the year
2017
$
2016
$
201,532
179,538
(165,233)
(159,114)
36,299
20,424
20,424
22,015
(6,140)
36,299
19,979
6,819
(6,374)
20,424
36,299
20,424
2017
$
145,842
332,908
(11,510)
(332,533)
134,707
2016
$
215,146
85,206
-
(154,510)
145,842
The balance carried forward represents projects in the exploration and evaluation phase.
Ultimate recoupment of exploration expenditure carried forward is dependent on successful development and commercial
exploitation, or alternatively, sale of respective areas.
The exploration expenditure written off during the year relates to exploration and evaluation expenditure on tenements surrendered,
or to which the Group does not currently have right to tenure.
14. CURRENT LIABILITIES – TRADE AND OTHER PAYABLES
Trade payables
2017
$
2016
$
45,998
13,599
Trade and other payables are non-interest bearing and are normally settled on 30 day terms.
The carrying value of trade and other payables are assumed to be the same as their fair values, due to their short term nature.
4 0
JINDALEE RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
15. CONTRIBUTED EQUITY
Share capital
2017
$
2016
$
34,894,775 ordinary fully paid shares (2016: 34,894,775)
7,227,254
7,227,254
There were no movements in the ordinary share capital of the Company in the reporting period.
Ordinary shares participate in dividends. On winding up of the Group any proceeds would be distributed to the number of shares
held.
At shareholder meetings on a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled
to one vote, and upon a poll each share is entitled to one vote.
16.
ACCUMULATED LOSS
Retained earnings at the beginning of the financial year
Loss attributable to members of the Group
Accumulated losses at the end of the financial year
17.
RESERVES
Share-based payment reserve
Balance at the beginning of the year
Share-based payments
Balance at the end of the year
Available for sale investments revaluations reserve
Balance at the beginning of year
Revaluation on available for sale investments
Balance at the end of the year
Total reserves
Nature and purpose of the reserves:
2017
$
2016
$
(3,424,196)
(2,367,575)
(385,296)
(1,056,621)
(3,809,492)
(3,424,196)
2017
$
2016
$
1,969,774
1,969,774
-
-
1,969,774
1,969,774
2,700
127,391
130,091
-
2,700
2,700
2,099,865
1,972,474
(i)
(ii)
The share-based payments reserve is used to recognise the fair value of options issued but not exercised.
The available for sale investment revaluation reserve is used to recognise the change in fair value.
4 1
ANNUAL REPORT 2017 NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
18.
SHARE BASED PAYMENT TRANSACTIONS
Share based payments transactions are recognised at fair value in accordance with AASB 2. The adoption of AASB 2 is equity-neutral
for equity-settled transactions. The expense in the year was $Nil (2016: $20,000).
Employee Share Option Plan
Jindalee Resources Limited Employee Share Option Plan (“ESOP”) was established to encourage all eligible directors, executive
officers and employees who have been continuously employed by the Group to have a greater involvement in the achievement of
the Group’s objectives and to provide an incentive to strive to that end by participating in the future growth and prosperity of the
Group through share ownership.
The ESOP allows the Group to issue free options to eligible persons. The options can be granted free of charge and are exercisable
at a fixed price in accordance with the rules of the ESOP. All options on issue are fully vested at grant date.
Set out below are summaries of options granted under the plan:
Grant Date
Expiry Date
2017
Exercise
Price
Balance
at the start
of the year
Number
Granted
during
the year
Number
Exercised
during the
year Number
Expired
during the
year Number
Balance
at end of
the year
Number
Vested and
exercisable
at end of the
year Number
26/11/2014
30/06/2017
$0.50
2,600,000
Weighted average exercise price
$0.50
-
-
-
-
(2,600,000)
-
-
-
-
-
The weighted average remaining contractual life of share options outstanding at the end of the period is Nil (2016: 1 year).
Fair Value of Share Options and Assumptions
The fair value of services received in return for share options granted to directors is measured by reference to the fair value of options
granted. The estimate of the fair value of the services is measured based on a Black-Scholes option valuation methodology. This life
of the options and early exercise option are built into the option model.
The assumptions used for the options valuation are as follows:
Grant Date
Exercise Price
Expected Life
Share Price at Time of Issue
Expected Volatility
Dividend Yield
Risk Free Interest Rate
26/11/2014
$0.50
2.6 years
$0.16
60%
0%
2.51%
Grant Date
Exercise Price
Expected Life
Share Price at Time of Issue
Expected Volatility
Dividend Yield
Risk Free Interest Rate
Option Value
$0.01644
Option Value
28/11/2013
$0.50
3 years
$0.20
60%
0%
3.31%
$0.07
4 2
JINDALEE RESOURCES LIMITED NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
19.
FINANCIAL AND CAPITAL RISK MANAGEMENT
(a) Capital Risk Management
The Group manages its capital to ensure that it will be able to continue as a going concern.
In managing its capital, the Group’s primary objective is to ensure its continued ability to provide a consistent return for its equity
shareholders. In order to achieve this object, the Group seeks to maintain a capital structure that balances risks and returns at
an acceptable level and also to maintain a sufficient funding base to enable the Group to meet its working capital and strategic
investment needs. In making decisions to adjust its capital structure to achieve these aims, either through new share issues, or
sourcing of debt, the Group considers not only its short-term position but also its long-term operational and strategic objectives.
There have been no significant changes to the Group’s capital management objectives, policies and processes in the year nor has
there been any change in what the Group considers to be its capital.
The capital structure of the Group consists of cash and cash equivalents (Note 9) and equity attributable to equity holders of the
Group, comprising issued capital, reserves and retained earnings (accumulated losses) as disclosed in Notes 15, 16 and 17 respectively.
(b)
Significant Accounting Policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement
and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity
instrument are disclosed in Note 2 of the financial statements.
(c) Categories of Financial Instruments
Financial Assets
Current
Cash and cash equivalents
Trade and other receivables
Total Current Financial Assets
Non-current
Available for sale financial assets1
Other receivables
Total Non-Current Financial Assets
Financial Liabilities
Current
2017
$
2016
$
3,282,998
4,171,556
67,589
46,558
3,350,587
4,218,114
1,985,841
138,413
2,124,254
1,489,458
-
1,489,458
Trade and other payables and provision for dividend
Total Current Financial Liabilities
119,483
119,483
87,084
87,084
1Refer to note 22 for details of fair value of available for sale financial assets
(d) Credit Risk Exposure
As at the reporting date, the Group has no significant concentrations of credit risk. The carrying amount reflected above represents
the Group’s maximum exposure to credit risk.
4 3
ANNUAL REPORT 2017 NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
19.
FINANCIAL AND CAPITAL RISK MANAGEMENT (continued)
(e)
Interest Rate Risk Exposure
The Group’s exposure to interest rate risk arises from assets bearing variable interest rates. The weighted average interest rate on cash
holdings was 2.43% at 30 June 2017 (2016: 3.00%). All other financial assets and liabilities are non-interest bearing. The net fair value
of the Group’s financial assets and liabilities approximates their carrying value.
The Group invests its surplus funds on deposit with Australian banking financial institutions, namely the National Australia Bank and ANZ
Bank. For banks and financial institutions, only independently rated parties with a minimum rating of AA- are accepted.
The table below summarises the impact of an increase/decrease in interest rates received on cash deposits held at year end on
the Group’s pre-tax profit for the year and on equity. The analysis is based on the assumption that rates increased/decreased
proportionally by 10% of the current weighted average interest rate with all other variables held constant.
Impact on profit and equity
Increase of 10%
Decrease of -10%
(f)
Price Risk
2017
$
9,848
(9,848)
2016
$
13,001
(13,001)
The Group is exposed to equity securities price risk. This arises from investments held by the Group and classified in the statement of
financial position as available for sale. The Group is not exposed to commodity price risk.
To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio.
The table below summarises the impact of an increase/decrease in prices of securities held at year end on the Group’s pre-tax profit
for the year and on equity. The analysis is based on the assumption that the prices of all securities increased/decreased by 10% with
all other variables held constant.
Impact on profit and equity
Increase of 10%
Decrease of -10%
(g)
Liquidity Risk
2017
$
2016
$
198,584
(198,584)
148,946
(148,946)
The liquidity position of the Group is managed to ensure sufficient liquid funds are available to meet our financial commitments in a
timely and cost-effective manner. The Board reviews the Group’s liquidity position on a regular basis including cash flow statements
to determine the forecast liquidity position and maintain appropriate liquidity levels. Note 14 details the Group’s current obligations.
There are no unused borrowing facilities from any financial institution.
4 4
JINDALEE RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
19.
FINANCIAL AND CAPITAL RISK MANAGEMENT (continued)
(h)
Fair Values
The carrying amounts and estimated fair values of financial assets and financial liabilities are as follows:
Consolidated
Financial Assets
Cash and cash equivalents
Trade and other receivables
Non-current deposits
Available for sale financial assets
Total Financial Assets
Financial Liabilities
Trade and other payables
Total Financial Liabilities
2017
$
2016
$
3,282,998
4,171,556
67,589
138,413
1,985,841
5,474,841
46,558
-
1,489,458
5,707,572
119,483
119,483
87,084
87,084
The methods and assumptions used to estimate the fair value of financial instruments are outlined below:
Cash
The carrying amount is fair value due to the liquid nature of these assets.
Receivables/payables
Due to the short-term nature of these financial rights and obligations, their carrying amounts are estimated to represent their fair
values.
Available for sale financial assets
The current bid price as at 30 June 2017 is used to determine the carrying value of the available for sale financial assets and any
movement is taken to the reserve. An impairment loss of available for sale financial assets is taken to the statement of profit or loss
and other comprehensive income.
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes.
Refer to Note 22 for further details.
4 5
ANNUAL REPORT 2017 NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
20. CONTINGENCIES
Contingent Liabilities
Claims of Native Title
To date the Group has been notified by the Native Title Tribunal of native title claims which cover some of the Group’s licence
holdings. Until further information arises in relation to the claims and its likelihood of success, the Group is unable to assess the likely
effect, if any, of the claims.
Performance Bonds and Security Documents
In support of titles granted to or operated by the Group, various securities are submitted to the Department of Mines & Petroleum.
These consist of unconditional performance bonds and securities or Form 32 security documents. The Company has no liability
outstanding.
There are no other contingencies of the Group at balance date.
21. COMMITMENTS
Capital Commitments
There are no capital expenditure commitments for the Group as at 30 June 2017.
Contractual Commitment
As at 30 June 2017 the Group has a contractual lease agreement for its registered offices which is due to expire on 15 June 2022.
The amount contracted on a per year basis but not included as a liability at 30 June 2017 was $541,437.
Commitments for minimum lease payments in relation to non-cancellable
operating leases are payable as follows:
< 1 year
1-5 years
2017
$
2016
$
98,010
443,427
541,437
87,875
-
87,875
22.
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS
The carrying values of financial assets and liabilities of the Group approximate their fair values. Fair values of financial assets and
liabilities have been determined for measurement and / or disclosure purposes.
Fair value hierarchy
The Group classifies assets and liabilities carried at fair value using a fair value hierarchy that reflects the significance of the inputs
used in determining that value. The table following analyses financial instruments carried at fair value by the valuation method. The
different levels in the hierarchy have been defined as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2:
inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as
prices) or indirectly (derived from prices); and
Level 3:
inputs for the asset or liability that are not based on observable market data (unobservable inputs).
4 6
JINDALEE RESOURCES LIMITED NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
22.
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS (continued)
Recurring fair value measurements
Level 1
Level 2
Level 3
$
$
$
Total
$
30 June 2017
Available-for-sale financial assets
1,985,841
Total as at 30 June 2017
1,985,841
30 June 2016
Available-for-sale financial assets
1,489,458
Total as at 30 June 2016
1,489,458
-
-
-
-
-
-
-
-
1,985,841
1,985,841
1,489,458
1,489,458
Due to their short-term nature, the carrying amount of the current receivables and current payables is assumed to approximate their
fair value.
23. CONTROLLED ENTITIES
% held
State of
Date of
2017
2016
Controlled Entity
Eastmin Pty Limited
HiTec Minerals Pty Ltd
2017
100%
100%
2016 Class
Incorporation
Incorporation
100% Ord
100% Ord
WA
WA
15/04/2005
13/04/2016
$
2
100
$
2
100
Investment at Cost
The date of acquisition of the controlled entities was on the date of incorporation.
On 8 June 2017, Awesomous Pty Ltd changed its name to HiTec Minerals Pty Ltd.
24.
RELATED PARTY TRANSACTIONS
(a)
Parent entity
The parent entity within the Group is Jindalee Resources Limited.
(b)
Subsidiaries
Interests in subsidiaries are set out in Note 23.
(c)
Key management personnel compensation
Short-term employee benefits
Post-employment benefits
Share-based payments
2017
$
264,850
14,221
-
279,071
2016
$
251,713
11,020
20,000
282,733
Refer to the remuneration report contained within the Directors’ Report and Note 18 for further details on compensation to key
management personnel.
4 7
ANNUAL REPORT 2017
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
25.
REMUNERATION OF AUDITORS
Amounts paid or payable at 30 June to the auditors for:
Audit and review of financial statements
Total remuneration for audit and other assurance services
26.
PARENT ENTITY FINANCIAL INFORMATION
2017
$
20,400
20,400
2016
$
20,724
20,724
The following details information related to the parent entity, Jindalee Resources Limited, at 30 June 2017 and 30 June 2016..
The information presented here has been prepared using consistent accounting policies as presented in Note 2.
Financial Position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Accumulated losses
Reserves
Total equity
Financial Performance
Loss for the year
Other comprehensive income
Total comprehensive loss
2017
$
2016
$
2,636,829
2,708,997
5,345,826
3,523,425
1,950,446
5,473,871
128,220
98,306
-
-
128,220
98,306
5,217,606
5,375,565
7,227,254
7,227,254
(4,408,488)
(4,123,136)
2,398,838
5,217,604
2,271,447
5,375,565
(285,352)
(1,050,953)
127,391
2,700
(157,961)
(1,048,253)
No guarantees have been entered into by Jindalee Resources Limited in relation to the debts of its subsidiary.
Jindalee Resources Limited had no commitments or contingent liabilities at year end other than those disclosed in Notes 20 and 21.
4 8
JINDALEE RESOURCES LIMITED NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
27. EVENTS OCCURING AFTER THE REPORTING PERIOD
There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a
material and unusual nature likely, in the opinion of the Directors, to affect significantly the operations, the results of those operations,
or the state of affairs of the Group in future financial years.
On 22 August 2017 pursuant to the Company’s Employee Share Option Plan, 400,000 unlisted options exercisable at $0.40 and expiring
30 June 2022 were issued to employees of the Company.
4 9
ANNUAL REPORT 2017
DIRECTORS’ DECLARATION
JINDALEE RESOURCES LIMITED AND ITS CONTROLLED ENTITIES
ACN 064 121 133
DECLARATION BY DIRECTORS
In the Directors’ opinion:
1.
The financial statements, comprising the consolidated statement of profit or loss and other comprehensive income, consolidated
statement of financial position, consolidated statement of cash flows, consolidated statement of changes in equity,
accompanying notes, are in accordance with the Corporations Act 2001, and:
(a)
complying with Accounting Standards and the Corporations Regulations 2001 and other mandatory professional
reporting requirements; and
(b)
giving a true and fair view of the consolidated entity’s financial position as at 30 June 2017 and of its performance
for the year ended on that date.
2.
In the directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable.
3.
The directors have been given the declarations as required by section 295A of the Corporations Act 2001.
4. Note 2(a) confirms that the financial statements also comply with International Reporting Standards as issued by the International
Accounting Standards Board.
This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the directors by:
L G DUDFIELD
Managing Director
7th day of September 2017 at Perth, Western Australia.
5 0
JINDALEE RESOURCES LIMITED
AUDITORS’ INDEPENDENCE DECLARATION
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY PHILLIP MURDOCH TO THE DIRECTORS OF JINDALEE
RESOURCES LIMITED
As lead auditor of Jindalee Resources Limited for the year ended 30 June 2017, I declare that, to the
best of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Jindalee Resources Limited and the entities it controlled during the
period.
Phillip Murdoch
Director
BDO Audit (WA) Pty Ltd
Perth, 7 September 2017
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation other than for
the acts or omissions of financial services licensees
40
5 1
ANNUAL REPORT 2017 AUDITORS’ REPORT
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of Jindalee Resources Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Jindalee Resources Limited (the Company) and its subsidiaries
(the Group), which comprises the consolidated statement of financial position as at 30 June 2017, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including a summary of significant accounting policies and the directors’
declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2017 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance
with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation other than for
the acts or omissions of financial services licensees
41
5 2
JINDALEE RESOURCES LIMITED AUDITORS’ REPORT
Recoverability of exploration and evaluation expenditure
Key audit matter
How the matter was addressed in our audit
At 30 June 2017, the carrying value of
capitalised exploration and evaluation
expenditure was $134,707 (30 June 2016:
$145,842), as disclosed in Note 2 and 13.
In accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources (AASB 6), the
recoverability of exploration and evaluation
expenditure requires significant judgment by
management in determining whether there
are any facts or circumstances that exist to
suggest that the carrying amount of this asset
may exceed its recoverable amount. As a
result, this is considered a key audit matter.
Our procedures included, but were not limited
to:
· Obtaining a schedule of the areas of interest
held by the Group and assessing whether the
rights to tenure of those areas of interest
remained current at balance date;
·
·
·
·
Considering the status of the ongoing
exploration programmes in the respective
areas of interest by holding discussions with
management, and reviewing the Group’s
exploration budgets, ASX announcements and
directors’ minutes;
Considering whether any such areas of
interest had reached a stage where a
reasonable assessment of economically
recoverable reserves existed;
Considering whether any facts or
circumstances existed to suggest impairment
testing was required; and
Assessing the adequacy of the related
disclosures in Note 2 and 13 to the Financial
Report.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2017, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard
42
5 3
ANNUAL REPORT 2017 AUDITORS’ REPORT
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 6 to 11 of the directors’ report for the
year ended 30 June 2017.
In our opinion, the Remuneration Report of Jindalee Resources Limited, for the year ended 30 June
2017, complies with section 300A of the Corporations Act 2001.
43
5 4
JINDALEE RESOURCES LIMITED AUDITORS’ REPORT
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit (WA) Pty Ltd
Phillip Murdoch
Director
Perth, 7 September 2017
44
5 5
ANNUAL REPORT 2017 ADDITIONAL INFORMATION
The following additional information not shown elsewhere in this report is required by the Australian Securities Exchange in respect of
listed public companies only. This information is current as at 18 September 2017.
Securities
Quotation has been granted for 34,894,775 ordinary shares of the Company on the Australian Stock Exchange.
Quoted Securities
ASX Code
JRL
Unquoted Securities
ASX Code
JRLAA
Voting Rights
Number of Holders
Security Description
854
Ordinary Fully Paid
Number of Holders
Security Description
2
Options expiring 30/06/22
Exercisable at $0.40
Total Securities
34,894,775
Total Securities
400,000
The voting rights attached to each class of security are as follows:
·
·
Ordinary Fully Paid shares – one vote per share held.
Options – no voting rights are attached to unexercised options.
Distribution Schedule
Spread of Holdings - Ordinary Shares (ASX Code: JRL)
1
1,001
5,001
10,001
100,001
TOTAL
-
-
-
-
-
1,000
5,000
10,000
100,000
99,999,999
Unmarketable Parcel
Holders
175
292
140
201
46
854
Units
85,941
868,039
1,112,905
6,320,833
26,507,057
34,894,775
Percentage
0.25%
2.49%
3.19%
18.11%
75.96%
100%
The number of shareholders holding less than a marketable parcel of fully paid ordinary shares is 244 based on closing price of
$0.265 per share.
Substantial Shareholding
The Company has received the following notices of substantial holding:
·
·
Kale Capital Corporation Limited in relation to 3,000,000 ordinary shares
Teck Australia Pty Ltd in relation to 2,050,000 ordinary shares
Register of Securities
The Register of securities is held at Advanced Share Registry Limited at unit 2, 150 Stirling Highway, Nedlands, Western Australia.
Telephone: 61 8 9389 8033.
5 6
JINDALEE RESOURCES LIMITED
ADDITIONAL INFORMATION
Buyback
No on-market share buy-back is current.
Top 20 Shareholders
The names of the twenty largest shareholders (ASX Code: JRL) are listed below:
Name
1. Mr LG Dudfield
2.
3.
4.
5.
6.
7.
8.
9.
Kale Capital Corporation Limited
Teck Australia Pty Ltd
Yandal Investments Pty Ltd
Ayres Rock Holdings Pty Ltd
Pillage Investments Pty Ltd
TBB NSW Pty Ltd
Farr Family SF Pty Ltd
DAT Investments Pty Ltd
10. Kevrex Pty Ltd
11. Eric’s Pty Ltd
12.
Liberator Holdings Pty Ltd
13. Mr A J Washington
14. Mr Stefan Martin Brun
15. Mr Justin Jerome Mannolini
16. Kagelu Holdings Pty Ltd
17. Mr Cameron Ross Doling Dudfield
18. Miss Lauren Ashleigh Doling Dudfield
19. Mr Fraser Lewis Doling Dudfield
20. Piat Corp Pty Ltd
% of Issued
Securities
34.33
8.59
5.87
3.30
2.21
1.98
1.63
1.16
1.15
1.15
1.08
1.00
0.87
0.72
0.72
0.63
0.60
0.60
0.60
0.60
Number of
Ordinary Shares
11,980,844
3,000,000
2,050,000
1,152,500
770,000
692,581
568,774
404,533
400,000
400,000
377,837
350,350
304,684
250,000
250,000
218,358
210,000
210,000
210,000
210,000
5 7
ANNUAL REPORT 2017
ADDITIONAL INFORMATION
Tenement Information
Project
Prospect Ridge**
Planets
Cowan Hill
Widgie
Higginsville
Highway
Railway
Highway
Highway
Highway
Wannaway
Widgie
Wannaway
Highway
Highway
Highway
Salt Creek
Yindi
Victoria*
North Sinclair
Camel Bore
New Bore
Bundie Bore
Prairie Downs
Western Creek
Fire Strike*
Millrose
Tokay
Windimurra
Taipan
Jeffrey’s Find
Killaloe
Killaloe
Chalice
Westonia
Aries
Cummins Range*
Kenya
Kenya
Mt Fisher
Joyners
Tenement Reference
Locality
Status
Area
(km2)
Interest
EL05/2016
ELA15/1548
ELA15/1549
ELA15/1552
ELA15/1560
ELA15/1563
ELA15/1564
ELA15/1577
ELA15/1578
ELA15/1580
ELA15/1598
ELA15/1602
ELA15/1614
ELA15/1617
ELA15/1618
ELA15/1619
ELA25/0562
ELA28/2708
ELA28/2711
ELA36/0895
ELA36/0910
ELA38/3211
ELA51/1840
ELA52/3445
ELA52/3520
ELA53/1911
ELA53/1962
ELA57/1061
ELA58/0513
ELA63/1823
ELA63/1832
ELA63/1835
ELA63/1836
ELA63/1839
ELA77/2444
ELA80/5027
ELA80/5091
ELA39/1998
ELA39/20058
ELA53/1898
M53/1078-I
TAS
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
Granted
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
51
27
6
30
78
75
3
6
3
36
51
57
15
18
3
3
24
54
69
60
63
9
66
93
72
24
102
66
9
3
18
6
42
42
Application
129
Application
Application
Granted
Granted
Granted
Granted
90
63
6
3
24
7
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
20%
*Tenement held or applied for through JRL’S wholly-owned subsidiary, Eastmin Pty Ltd
** Tenement held or applied for through JRL’s wholly-owned subsidiary, HiTec Minerals Pty Ltd
5 8
JINDALEE RESOURCES LIMITED Level 2
9 Havelock Street
WEST PERTH WA 6005
Telephone: 61 8 9321 7550
Facsimile: 61 8 9321 7950
Email: enquiry@jindalee.net
Web: www.jindalee.net