ANNUAL
REPORT
2014
CORPORATE DIRECTORY
Australian Business Number
Share Registry
Link Market Services
Level 2, 178 St Georges Terrace
Telephone: 1300 554 474
Facsimile:
Email:
Website: www.linkmarketservices.com.au
(02) 9287 0303
registrars@linkmarketservices.com.au
Auditors
Grant Thornton Audit Pty Ltd
Level 1, 10 Kings Park Road West Perth WA 6005
Telephone: (08) 9480 2000
Facsimile:
(08) 9322 7787
Email:
info.wa@au.gt.com
Website: www.grantthornton.com.au
51 105 991 740
Directors
Brian Gilbertson
(Non-executive Chairman)
Paul Murray
(Non-executive Director)
Priyank Thapliyal
(Executive Director)
Mr Soo-Cheol Shin
(Non-executive Director)
Andrew Bell
(Non-executive Director)
Executives
Priyank Thapliyal
Chief Executive Officer
Melissa North
Company Secretary and Chief Financial Officer
Principal Office
Level 42, 108 St Georges Terrace
Perth WA 6000
Telephone: (08) 9346 5500
Facsimile:
(08) 9481 5933
Email:
info@jupitermines.com
JUPITER MINES LIMITED ANNUAL REPORT 2014
CONTENTS
Chairman’s Letter
Review of Operations
Annual Financial Report
Directors’ Report
Auditor’s Independence Declaration
Statement of Profit or Loss and Other Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Audit Report
1
2
8
9
15
16
17
18
19
20
58
59
JUPITER MINES LIMITED ANNUAL REPORT 2014
CHAIRMAN’S LETTER
Dear Shareholders,
The financial period ending 28 February 2014 has seen significant progress on Jupiter’s key projects.
The Tshipi Borwa mine is well on its way to becoming one of the world’s important suppliers of manganese ore. One
million tonnes was produced and sold in its first full financial year, generating profits even at the depressed manganese
ore prices ruling. The production ramp up to 2.4 million tonnes per annum is set to continue in the current financial year,
in line with the anticipated increase in logistics capacity.
In the Central Yilgarn, work has continued to optimise the Mount Mason DSO Hematite Project. There has also been
important progress in the plans to expand the capacity of the port of Esperance, with the preferred proponent announced.
This increases the likelihood of Mount Mason being developed, and with it the potential to generate profits in the
foreseeable future.
The de-listing of Jupiter in January 2014 was completed smoothly and the majority of shareholders remain committed to
Jupiter and its Strategy. I hope to see these realise significant value in the future.
Yours Faithfully,
Jupiter Mines Limited
Brian Gilbertson
Chairman
1
JUPITER MINES LIMITED ANNUAL REPORT 2014
REVIEW OF OPERATIONS
Jupiter Mines Limited (“Jupiter” or the “Company”) continued to focus on the development of its iron ore and manganese
projects in pursuit of its long term Steel Feed Corporation (“SFC”) strategy.
Significant progress was achieved during the year at the Company’s major project in South Africa the Tshipi Kalahari
Manganese Project.
In Australia, at the Central Yilgarn Iron Project (“CYIP”), work continued on the optimisation of the Mount Mason Feasibility
Study and progression of the project approvals documentation. Work on the Mount Ida Feasibility Study remained on hold.
TSHIPI KALAHARI MANGANESE PROJECT
Jupiter has a 49.9% interest in Tshipi é Ntle Manganese Mining (Tshipi). Tshipi owns two manganese projects in the
Kalahari Manganese fields, namely Tshipi Borwa and Tshipi Bokone, adjacent to the operating Mamatwan and
Wessels mines respectively.
Tshipi’s flagship project, Tshipi Borwa, continued and fortified its production during the year. It is located in the Southern
portion of the Kalahari Manganese Field, the largest manganese bearing geological formation in the world.
Figure 1. Tshipi Kalahari Manganese Project Location Map
Tshipi Borwa is mining the ore body that is contiguous to, and a direct extension of, the Mamatwan ore body which has
been mined for over 46 years.
Tshipi Bokone is an exploration property located in the northern portion of the Kalahari Manganese Field.
TSHIPI BORWA
The ramp up at Tshipi Borwa saw production of over one million tonnes, of which 734,000 tonnes of lump and 202,000
of fines manganese were exported in its financial year to 28 February 2014. Tshipi has recorded a profit in the same
year, which is a significant achievement in its first full year of operations.
Transnet rail has committed to make available two trains per week while one additional train per week is at Transnet’s
discretion. Alternative road and rail solutions have been implemented to increase the logistics capacity available to Tshipi
including the use of sea containers and open topped containers (Skiptainers). These alternatives rely dominantly on rail
transportation, while road transportation alternatives are also being pursued and adopted.
JUPITER MINES LIMITED ANNUAL REPORT 2014
2
REVIEW OF OPERATIONS (continued)
Figure 2 and 3. Loading and railing of manganese ore at Tshipi Borwa
Completion of the construction of the mine and plant infrastructure, giving full operating performance, is expected during
the current financial year. Despite the challenges of building a new project, Tshipi is achieving mine production to satisfy
the Transnet rail and port allocation. During the coming financial year, Tshipi expects to produce and ship approximately
1.7 million tonnes.
In September 2013, Tshipi entered a Joint Venture Agreement (“JVA”) with a new entity, Singapore-based OM Tshipi (S) Pte
Ltd (“OMT”). The JVA provides for the marketing of the manganese ore produced by Tshipi, and is jointly owned by Jupiter
Kalahari (Mauritius) Ltd, Ntsimbintle Mining Pty Ltd and OM Materials Trades (S) Pte Ltd. In conjunction with the execution
of the JVA, Tshipi entered into a Take-or-Pay Offtake Contract with OMT for all of its available production for the next two
years, extendable at the option of the parties.
Figure 4 and 5. Production continues at Tshipi Borwa
In December 2013, the Company announced that a ZAR 400 million working capital facility had been secured to support
the production and sales targets set by management.
In February 2014, Brendan Robinson was appointed as CEO of Tshipi. Mr Robinson has been closely associated with
the project for many years and has acted as Tshipi’s CFO since November 2011.
TSHIPI BOKONE
Exploration activities at Tshipi Bokone have temporarily been put on hold as Tshipi management focus their attention at
bringing Tshipi Borwa to optimum production.
3
JUPITER MINES LIMITED ANNUAL REPORT 2014
REVIEW OF OPERATIONS (continued)
CENTRAL YILGARN IRON PROJECTS
The Central Yilgarn Iron Project (“CYIP”) area is located 130km by road northwest of the town of Menzies. The CYIP
consists of the smaller DSO project – (Mount Mason) and the flagship long-life magnetite Project – (Mount Ida).
Both projects are planned around existing infrastructure in the region, including the Leonora to Esperance railway line, and
the Port of Esperance.
Figure 6. CYIP Project Location Map
MOUNT IDA MAGNETITE PROJECT
The flagship Mount Ida Magnetite Project has the reserves to be a tier one long-life magnetite mine, further establishing
Jupiter’s presence in the Central Yilgarn region.
Jupiter decided to suspend the Feasibility Study in the last financial year, and the project remains on hold. No work has
been completed on this project in this financial period.
MOUNT MASON DSO HEMATITE PROJECT
The focus of the year has remained the optimisation of the Feasibility Study. Many opportunities exist to reduce capital
and operating costs, especially with regards to the construction of common infrastructure to be utilised by the various other
potential producers in the Yilgarn.
All baseline environmental surveys and studies have been completed and all the Project Approvals for Mount Mason and
the Yunndaga rail siding are expected by July 2014.
Indicative prices were received on ore haulage from the mine site to the Yunndaga rail siding near Menzies using different
truck configurations. Operating cost reductions can be achieved using bigger payload options. Preliminary discussions
with the Menzies Shire on upgrading the Menzies Sandstone road for the different transport options have commenced.
JUPITER MINES LIMITED ANNUAL REPORT 2014
4
REVIEW OF OPERATIONS (continued)
Figure 7. Mount Mason Infrastructure Layout
Following to the end of the financial period, the Esperance Ports Sea and Land (“EPSL”) announced that the group known
as the YES Consortium (“YES”, led by Asciano Limited) had been named as the preferred proponent to develop the Multi-
User Iron Ore Facility at Esperance Port. Yes and EPSL are currently finalising contractual terms, after which the Consortium
will be commencing discussions with potential users of the port. Jupiter intends to fully participate in such discussions.
Figure 8. Esperance Port
NON-CORE PROJECTS
Minimal activity was undertaken on the Company’s non-core assets during the period. The Oakover Manganese and
Klondyke Gold projects remain held for sale.
After financial and geological evaluation, it was decided that the Mount Alfred project tenements were no longer of value
to the Company and were relinquished shortly after the end of the financial period.
5
JUPITER MINES LIMITED ANNUAL REPORT 2014
REVIEW OF OPERATIONS (continued)
SCHEDULE OF MINERAL TENEMENTS
LEASE
NAME
STATUS
APPLIED
DATE
GRANT DATE
EXPIRY DATE
CURRENT
AREA
CURRENT
COMMITMENT
CURRENT
RENT
HOLDERS
G37/36
General
Purpose –
Graten Well
Granted
3/04/2009
17/01/2011
16/01/2032
358.62 Ha
G29/21
Mt Mason
Granted
22/05/2009
23/03/2010
22/03/2031
95.00 Ha
G29/23 Mt Mason
Granted
5/05/2012
7/02/2013
6/02/2034
1,256.73 Ha
L29/116
Mt Mason
Granted
7/06/2012
3/01/2013
2/01/2034
25.48 Ha
L29/117
Mt Mason
Granted
7/06/2012
7/12/2012
6/12/2033
90.14 Ha
L29/118
Mt Mason
Granted
7/06/2012
9/11/2012
8/11/2033
11.67 Ha
L29/119
Mt Mason
Granted
28/08/2012
30/07/2013
29/07/2034
52.76 Ha
L29/121
Mt Mason
Granted
30/09/2012
30/07/2013
29/07/2034
64.31 Ha
L29/123 Mt Mason
Granted
25/11/2012
26/03/2013
25/03/2034
23.13 Ha
L29/120
Mt Mason
Granted
30/09/2012
7/02/2013
6/02/2034
1,720.05 Ha
-
-
-
-
-
-
-
-
-
-
$4,990.10
Jupiter Mines Ltd (100%)
$1,320.50
Jupiter Mines Ltd (100%)
$17,458.40
Jupiter Mines Ltd (100%)
$361.40
Jupiter Mines Ltd (100%)
$1,264.90
Jupiter Mines Ltd (100%)
$166.80
Jupiter Mines Ltd (100%)
$736.70
Jupiter Mines Ltd (100%)
$903.50
Jupiter Mines Ltd (100%)
$333.60
Jupiter Mines Ltd (100%)
$10,860.50
Jupiter Mines Ltd (100%)
M29/408 Mt Mason
Granted
6/02/2006
28/11/2007
27/11/2028
300.00 Ha
$30,100.00
$4,725.70
Jupiter Mines Ltd (100%)
M45/552 Klondyke
Granted
13/10/1992
19/01/1993
18/01/2014
9.71 Ha
$10,000.00
$157.00
Jupiter Mines Ltd (75%)
M45/668 Klondyke
Granted
12/06/1995
29/12/1995
28/12/2016
240.00 Ha
$24,000.00
$3,768.00
Jupiter Mines Ltd (75%)
M45/669 Klondyke
Granted
12/06/1995
29/12/1995
28/12/2016
120.00 Ha
$12,000.00
$1,884.00
Jupiter Mines Ltd (75%)
M45/670 Klondyke
Granted
12/06/1995
29/12/1995
28/12/2016
120.00 Ha
$12,000.00
$1,884.00
Jupiter Mines Ltd (75%)
E45/2638 Oakover
Granted
21/04/2004
12/11/2008
11/11/2015
35 Blocks
$70,000.00
$8,788.50
Jupiter Mines Ltd (100%)
E45/2639 Oakover
Granted
21/04/2004
10/06/2009
9/06/2014
28 Blocks
$42,000.00
$7,030.80
Jupiter Mines Ltd (100%)
E45/2640 Oakover
Granted
21/04/2004
10/06/2009
9/06/2014
49 Blocks
$73,500.00
$12,303.90
Jupiter Mines Ltd (100%)
E45/2641 Oakover
Granted
21/04/2004
10/06/2009
9/06/2014
70 Blocks
$105,000.00
$17,577.00
Jupiter Mines Ltd (100%)
E45/3547 Oakover
Granted
28/10/2009
9/07/2010
8/07/2015
61 Blocks
$91,500.00
$11,291.10
Jupiter Mines Ltd (100%)
E29/560 Mt Ida
Granted
17/03/2004
8/09/2006
7/09/2014
35 Blocks
$105,000.00
$16,642.50
Jupiter Mines Ltd (100%)
E29/777 Mt Ida
Granted
4/06/2010
15/02/2011
14/02/2016
27 Blocks
$27,000.00
$4,997.70
Jupiter Mines Ltd (100%)
E29/801 Mt Ida
Granted
1/11/2010
18/08/2011
17/08/2016
2 Blocks
$15,000.00
$370.20
Jupiter Mines Ltd (100%)
G29/22 Mt Ida
Granted
11/01/2011
6/09/2012
5/09/2033
9,634.00 Ha
L29/100 Mt Ida
Granted
11/01/2011
11/11/2011
10/11/2032
775.00 Ha
L29/106 Mt Ida
Granted
18/03/2011
20/06/2012
19/06/2033
119.44 Ha
L29/78
Mt Ida
Granted
1/09/2009
24/06/2010
23/06/2031
6,341.00 Ha
L29/79
Mt Ida
Granted
12/01/2010
24/08/2010
23/08/2031
6,886.00 Ha
L29/81
Mt Ida
Granted
13/05/2010
12/09/2011
11/09/2032
26,020.34 Ha
L29/99
Mt Ida
Granted
12/11/2010
24/02/2012
23/02/2033 64,550.49 Ha
L36/214
Mt Ida
Granted
5/09/2012
17/06/2013
16/06/2034
19,703.86 Ha
L36/215
Mt Ida
Granted
20/10/2012
1/08/2013
31/07/2034
29,849.54 Ha
L36/216
Mt Ida
Granted
20/10/2012
1/08/2013
31/07/2034
17,632.43 Ha
L36/217
Mt Ida
Granted
20/10/2012
1/08/2013
31/07/2034
5,882.25 Ha
L37/203
Mt Ida
Granted
3/05/2010
27/06/2011
26/06/2032
68,952.89 Ha
L57/45
Mt Ida
Granted
5/09/2012
19/08/2013
18/08/2034
8,703.48 Ha
L29/122
Mt Ida
Granted
30/09/2012
03/04/2014
2/04/2035
6,590.72 Ha
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$133,870.90
Jupiter Mines Ltd (100%)
$10,772.50
Jupiter Mines Ltd (100%)
$1,668.00
Jupiter Mines Ltd (100%)
$3,170.50
Jupiter Mines Ltd (100%)
$3,443.00
Jupiter Mines Ltd (100%)
$13,010.50
Jupiter Mines Ltd (100%)
$32,275.50
Jupiter Mines Ltd (100%)
$9,852.00
Jupiter Mines Ltd (100%)
$14,925.00
Jupiter Mines Ltd (100%)
$8,816.50
Jupiter Mines Ltd (100%)
$2,941.50
Jupiter Mines Ltd (100%)
$34,476.50
Jupiter Mines Ltd (100%)
$4,352.00
Jupiter Mines Ltd (100%)
$3,295.50
Jupiter Mines Ltd (100%)
M29/414 Mt Ida
Granted
11/01/2011
25/11/2011
24/11/2032
6,461.00 Ha
$646,000.00
$101,422.00
Jupiter Mines Ltd (100%)
L57/46
Miscellaneous
Licence
Application 05/09/2012
-
-
31,741.86 Ha
-
-
Jupiter Mines Ltd (100%)
JUPITER MINES LIMITED ANNUAL REPORT 2014
6
7
JUPITER MINES LIMITED ANNUAL REPORT 2014
ANNUAL FINANCIAL REPORT
FOR THE 8 MONTH PERIOD ENDED 28 FEBRUARY 2014
ABN 51 105 991 740 CONSOLIDATED ENTITY
DIRECTORS’ REPORT
In accordance with a resolution of Directors, the Directors present their Report together with the Financial Report of Jupiter Mines
Limited (Jupiter) and its wholly owned subsidiaries (together referred to as the Consolidated Entity) for the financial period ended
28 February 2014 and the Independent Audit Report thereon.
Directors
The Directors of Jupiter at any time during or since the end of the financial period are as follows:
Non-Executive
− Brian Patrick Gilbertson
− Paul Raymond Murray
− Andrew Bell
− Soo-Cheol Shin
Executive
− Priyank Thapliyal
Additional information is provided below regarding the current Directors.
Brian Patrick Gilbertson BSc (Maths and Physics), BSc (Hons) (Physics), MSc (Physics), MBL, PMD45
(Chairman: Non-Executive Director)
Mr Gilbertson was appointed a Director on 22 June 2010.
Mr Gilbertson has extensive experience in the global natural resources industry. He was Managing Director of Rustenburg
Platinum Mines Limited in the 1980’s, a period during which the company gained recognition as the world’s foremost producer
of platinum. In the 1990’s, as Executive Chairman of Gencor Limited, he led the restructuring of the South African mining industry
into the post-Apartheid era, transforming Gencor into a focused mineral and mining group. During this period he held ultimate
responsibility for Impala Platinum Holdings, for Samancor Limited (the world’s largest producer of manganese and chrome ore
and alloys) and for Trans-Natal Coal Corporation (a major coal producer and exporter). Important new initiatives included the
Hillside and Mozal aluminium smelters, the Columbus stainless steel plant, and the purchase of the international mining assets
(Billiton plc) of the Royal Dutch Shell Group.
In 1997, Gencor restructured its non-precious metals interests as Billiton plc. With Mr Gilbertson as Executive Chairman,
Billiton plc raised US$1.5 billion in an initial public offering on the LSE, taking the company into the FTSE 100. Separately, Mr
Gilbertson worked to merge the gold operations of Gencor and Gold Fields of South Africa, creating Gold Fields Limited, a
leader in the world gold mining industry. He served as its first Chairman until October 1998. In 2001, Billiton plc merged with
BHP Limited to create what is widely regarded as the world’s premier resources company, BHP Billiton plc. Mr Gilbertson was
appointed its second Chief Executive on 1 July 2002.
In late 2003, Mr Gilbertson led mining group Vedanta Resources plc (Vedanta) to the first primary listing of an Indian company
on the London Stock Exchange in the second largest IPO of the year (US$876 million). He served as Chairman of Vedanta until
July 2004.
He was appointed President of Sibirsko-Uralskaya Aluminium Company (SUAL), the smaller aluminium producer in Russia and
led that company into the US$30 billion merger with RUSAL and the alumina assets of Glencore International A.G., creating the
largest aluminium company in the world.
Mr Gilbertson established Pallinghurst Advisors LLP and Pallinghurst (Cayman) GP L.P. during 2006 and 2007 respectively, to
develop opportunities on behalf of a group of natural resource investors, which currently own 86% of Jupiter.
Mr Gilbertson is a British and South African citizen. He has not been a Director of any other ASX listed company in the past
three years.
JUPITER MINES LIMITED ANNUAL REPORT 2014
9
DIRECTORS’ REPORT (continued)
Paul Raymond Murray FFin, CPA
(Independent Non-Executive Director, Remuneration Committee Chairman, Audit Committee Chairman)
Mr Murray was appointed as a Director on 20 August 2003.
Mr Murray has served on the Board and consulted to a number of ASX listed resource exploration companies.
With a business career spanning 50 years, he has also been responsible for the successful listing on the ASX of a number
of public companies.
Mr Murray has been a Director of Great Western Minerals Limited, Consolidated Western Areas Limited and Global Mineral
Resources Limited.
Andrew Bell B.A. (Hons), M.A., LLB (Hons), FGS
(Independent Non-Executive Director, Audit Committee Member, Remuneration Committee Member)
Mr Bell was appointed as a Director of Jupiter on 19 May 2008.
Mr Bell is Chairman of Red Rock Resources plc, a company listed on the AIM market of the London Stock Exchange Ltd. He was
a natural resources analyst in London in the 1970s, then specialised in investment and investment banking covering the Asian
region. He has been involved in the resource and mining sectors in Asia since the 1990s, and has served on the Boards of a
number of listed resource companies. He is a Fellow of the Geological Society.
Mr Bell is presently on the following Boards:
• Chairman and Non-Executive Director of Resource Star Limited (ASX: RSL) since 2007
• Red Rock Resources plc, (AIM: RRR) since 2005
• Chairman of Regency Mines plc (AIM: RGM) since 2004
• Greatland Gold plc (AIM: GGP) since 2005
Priyank Thapliyal Metallurgical Engineer, B Tech, M Eng, MBA (Western Ontario, Canada)
(Executive Director, Audit Committee Member, Remuneration Committee Member)
Mr Thapliyal was appointed as a Non-Executive Director of Jupiter on 4 June 2008.
Mr Thapliyal has been charged with implementing the Pallinghurst Resources Steel Making Materials strategy through Jupiter.
Mr Thapliyal a founding partner of Pallinghurst Advisors LLP, joined Sterlite Industries in 2000 as a US$100 million firm, serving
as deputy to the owner Mr. Anil Agarwal. He implemented the strategies that led to Sterlite becoming Vedanta Resources plc
(including its US$870 million London IPO), a FTSE 100 company which was valued at US$7.5 billion at the time of his departure
in October 2005.
Mr Thapliyal led Vedanta’s US$50 million investment in Konkola Copper Mines, Zambia, in 2004, a stake currently valued at
more than US$1 billion. Priyank was a former mining and metals investment banker with CIBCWM, Toronto Canada and is a
qualified Metallurgical Engineer, MBA (Western Ontario, Canada) and former Falconbridge employee.
Mr Thapliyal has not been a Director of any other ASX listed companies in the past three years.
Soo-Cheol Shin
(Non-Executive Director)
Mr Shin was appointed as a Director of Jupiter on 19 March 2012.
Mr Shin holds a Bachelor of Arts in Public Administration and joined POSCO in 1989.
Mr Shin has held a variety of positions throughout his career including Project Manager, POSCO Australia Pty Ltd; Team Leader,
Coal Procurement Group; Team Leader, Steel Making Raw Materials Procurement Group and Group Leader, Raw Materials
Transportation Group. He was appointed Managing Director of POSCO Australia in February 2012.
Mr Shin has extensive experience in the management of natural resource projects both international and within Australia.
Mr Shin has been a Non-Executive Director of Sandfire Resources NL (SFR) since 2012.
JUPITER MINES LIMITED ANNUAL REPORT 2014
10
DIRECTORS’ REPORT (continued)
Company Secretary
Ms Melissa North BCom, CA has been the Company Secretary since November 2012. Ms North is also the Chief Financial
Officer of Jupiter.
Ms North has an extensive background in finance management and business advisory with groups such as Grant Thornton
and Chime Communications (London).
Significant Changes in the State of Affairs
In October 2013, Jupiter Mines Limited applied to the Australian Securities Exchange (ASX) for the removal of the
Company from the official list. The Company was de-listed from the Australian Securities Exchange on 10 January 2014,
after approval was given by shareholders at the Company’s AGM in November 2013.
The Company also applied to the Australian Securities and Investments Commission (“ASIC”) to change its financial year
end from 30 June to 28 February. The change will allow the Company to align with the year end of the Tshipi Joint
Venture, Jupiter’s primary project. The Tshipi Joint Venture accounts for a significant portion of the Group’s financial results
and operations. The request for change of year end has been approved by ASIC subsequent to the year end.
Principal Activities
The principal activities of Jupiter during the period have been the development and operation of its Tshipi manganese mine, as
well as further optimisation work of its Mount Mason DSO hematite project.
Review of Results and Operations
The consolidated results of Jupiter for the 8 month period were a loss of $5,532,772 after nil income tax benefit (Year ended
30 June 2013: loss of $4,818,792 after an income tax benefit of $117,540). Further details of the results of the Consolidated
Entity are set out in the accompanying financial statements in this Annual Report.
A summary of announcements made by Jupiter during the period ended 28 February 2014 is set out below:
Date
Announcement and Activities
2 July 2013
Pallinghurst Consortium acquires further shares in Jupiter.
16 July 2013
Resignation of Greg Durack as CEO and appointment of Priyank Thapliyal as Acting CEO.
31 July 2013
The Company released the June 2013 Quarterly Activities Report and Cash flow Report
“Appendix 5B”.
5 September 2013
The Company announced the creation of OM Tshipi (S) Pte Ltd
6 September 2013
The Company announced “Tshipi Borwa Project Update”.
3 October 2013
The Company announced its “Application to De-List from ASX”.
16 October 2013
The Company announced that the “ASX approves Jupiter application to de-list”.
31 October 2013
The Company released the September 2013 Quarterly Activities Report and Cash flow Report
“Appendix 5B”.
28 November 2013 The Company announced “Results of 2013 Annual General Meeting.”
13 December 2013 The Company announced “Tshipi Borwa Project Update”.
8 January 2014
The Company announced “Removal of the Company from the ASX Official List”.
15 January 2014
The Company released “Shareholder Update re De-listing”.
17 February 2014
The Company released the “December 2013 Quarterly Report”.
JUPITER MINES LIMITED ANNUAL REPORT 2014
11
DIRECTORS’ REPORT (continued)
Dividends
No dividends were paid or declared during the period by Jupiter.
Financial Position
At 28 February 2014, Jupiter held $41,124,477 in cash and cash equivalents compared with $63,478,108 at 30 June
2013 (restated) and had carried forward exploration expenditure of $59,614,781 compared with $57,790,631 at 30
June 2013 (restated).
Significant Events After Reporting Date
These financial statements were authorised for issue on 30 May 2014 by Director Brian Gilbertson.
Likely Developments
The Directors still intend Jupiter to proceed with the development of Jupiter’s Mount Mason DSO Hematite project should
this be economically viable.
Further information about likely developments and expected results of operations in future financial years has been omitted
from this Report because disclosure would be likely to result in unreasonable prejudice to Jupiter.
Further information about Jupiter’s business strategies and its prospects for future financial years has been omitted from this
Report because disclosure of the information is likely to result in unreasonable prejudice to Jupiter.
Environmental Regulations and Performance
Jupiter’s operations are subject to general environmental regulation under the laws of the States and Territories of Australia
and South Africa. The various exploration interests held by Jupiter impose future environmental obligations for site
remediation following sampling and drilling programs.
The Board is aware of these requirements and management is charged with ensuring compliance. The Directors are not
aware of any breaches of these environmental regulations and licence obligations during the period.
Options and Rights
As at 28 February 2014, there were 1,200,000 (30 June 2013: 3,200,000) options over unissued shares in the
capital of Jupiter, details of which are set out in Note 22 of the attached Financial Statements. No options were
granted during the financial period.
No options were granted during the financial period. No options were exercised during the financial period.
Since 28 February 2014 to the date of this Annual Report, nil options have been exercised, no options have been
granted. 2,000,000 (30 June 2013: 3,500,000) options lapsed or were cancelled during the financial period.
Meetings – Attendance by Directors
Board Meetings
The number of Directors’ meetings and the number of meetings attended by each of the Directors of Jupiter during the
financial period under review are:
Director
Number of meetings held during tenure of the Director
Number of meetings attended
Brian Gilbertson
Paul Murray
Priyank Thapliyal
Andrew Bell
Soo-Cheol Shin
JUPITER MINES LIMITED ANNUAL REPORT 2014
3
3
3
3
3
3
3
3
3
3
12
DIRECTORS’ REPORT (continued)
Committee Meetings
The number of committee meetings and the number of meetings attended by each of the Directors of Jupiter during the
financial period under review are:
Audit Committee
meetings attended
Audit Committee
meetings held during
tenure
Remuneration
Committee meetings
attended
2
2
2
2
2
2
-
-
-
Remuneration
Committee
meetings held
during tenure
-
-
-
Director
Paul Murray
Priyank Thapliyal
Andrew Bell
Directors’ Interests
Particulars of Directors’ interests in securities as at the date of this report are as follows:
Director
Brian Gilbertson 1
Paul Murray
Priyank Thapliyal 2
Andrew Bell 3
Soo-Cheol Shin 4
Ordinary Shares
Options over Ordinary Shares
-
1,260,000
24,858,963
-
-
-
-
-
-
-
1 Brian Gilbertson as the Chairman of Pallinghurst Resources Limited (listed on the JSE and BSX) has a relevant interest in Pallinghurst Steel Feed Dutch (B.V.) (PSF). PSF is the registered
owner of 421,042,093 Ordinary Shares.
2 Priyank Thapliyal is a Director of PSF and therefore has a relevant interest in PSF. PSF is the registered owner of 421,042,093 Ordinary Shares.
3 Andrew Bell as the Chairman and Director of Red Rock Resources plc has a relevant interest in Red Rock Resources plc (RRR). RRR is the registered owner of 19,674,375 Ordinary
Shares.
4 Soo-Cheol Shin is the Managing Director of POSCO Australia Pty Ltd, has a relevant interest in POSCO Australia Pty Ltd (POSCO) and POSCO Australia GP PTY LTD (POSA GP).
POSCO is the registered owner of 66,249,191 Ordinary Shares; POSA GP is the registered owner of 323,461,584 shares.
Unissued shares under option
Up until the date of this report, there are no further unissued shares under option.
Shares issued during or since the end of the period as a result of exercise
During or since the end of the financial period, the Company did not issue any ordinary shares as a result of the
exercise of options.
Contracts with Directors
There are no agreements with any of the Directors.
Indemnification and Insurance of Officers and Auditors
Since the end of the previous financial year, Jupiter has paid premiums to insure the Directors and Officers of the
Consolidated Entity. Details of the nature of the liabilities covered and the amount of premium paid in respect of Directors’
and Officers’ insurance policies preclude disclosure to third parties.
Jupiter has not paid any premiums in respect of any contract insuring its auditor against a liability incurred in that role as
an auditor of Jupiter. In respect of non-audit services, Grant Thornton Audit Pty Ltd, Jupiter’s auditor has the benefit of an
indemnity to the extent Grant Thornton Audit Pty Ltd reasonably relies on information provided by Jupiter which is false,
misleading or incomplete. No amount has been paid under this indemnity during the financial period ending 28 February
2014 or to the date of this Report.
JUPITER MINES LIMITED ANNUAL REPORT 2014
13
DIRECTORS’ REPORT (continued)
Non-Audit Services
The Board of Directors is satisfied that the provision of non-audit services during the financial period is compatible with the
general standard of independence for auditors imposed by the Corporations Act 2001. The Directors are satisfied that the
services disclosed below did not compromise the external auditor’s independence for the following reasons:
• all non-audit services are reviewed and approved by the audit committee prior to commencement to ensure they do
not adversely affect the integrity and objectivity of the auditor; and
• the nature of the services provided does not compromise the general principles relating to auditor independence in
accordance with APES 110: Code of Ethics for Professional Accountants set by the Accounting Professional and Ethical
Standards Board.
The following fees were paid or payable to Grant Thornton Australia Limited for non-audit services provided during the
period ended 28 February 2014:
Taxation and other services
$17,095
Auditor’s Independence Declaration
The lead auditor’s independence declaration for the period ended 28 February 2014 has been received and can be
found on page 15 of the Annual Report.
Proceedings on behalf of Jupiter
No person has applied for leave of Court to bring proceedings on behalf of Jupiter or intervene in any proceedings to
which Jupiter is a party for the purpose of taking responsibility on behalf of Jupiter for all or any part of those proceedings.
Jupiter was not a party to any such proceedings during the period.
The Consolidated Entity was not a party to any such proceedings during the reporting period.
Brian Gilbertson
Perth
30 May 2014
JUPITER MINES LIMITED ANNUAL REPORT 2014
14
AUDITOR’S INDEPENDENCE DECLARATION
Level 1
10 Kings Park Road
West Perth WA 6005
Auditor’s Independence Declaration
To the Directors of Jupiter Mines Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead
auditor for the audit of Jupiter Mines Limited for the period ended 28 February 2014, I
Auditor’s Independence Declaration
declare that, to the best of my knowledge and belief, there have been:
To the Directors of Jupiter Mines Limited
T +61 8 9480 2000
F +61 8 9322 7787
E info.wa@au.gt.com
W www.grantthornton.com.au
Correspondence to:
PO Box 570
West Perth WA 6872
Level 1
10 Kings Park Road
West Perth WA 6005
T +61 8 9480 2000
F +61 8 9322 7787
E info.wa@au.gt.com
W www.grantthornton.com.au
Correspondence to:
PO Box 570
West Perth WA 6872
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead
a
auditor for the audit of Jupiter Mines Limited for the period ended 28 February 2014, I
declare that, to the best of my knowledge and belief, there have been:
no contraventions of the auditor independence requirements of the Corporations Act
2001 in relation to the audit; and
b
a
b
no contraventions of any applicable code of professional conduct in relation to the
no contraventions of the auditor independence requirements of the Corporations Act
audit.
2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the
audit.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
C A Becker
Partner - Audit & Assurance
Perth, 30 May 2014
C A Becker
Partner - Audit & Assurance
Perth, 30 May 2014
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the
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a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its
Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the
context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm
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are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its
Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current
scheme applies.
JUPITER MINES LIMITED ANNUAL REPORT 2014
15
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE 8 MONTH PERIOD ENDED 28 FEBRUARY 2014
Other Income
Depreciation and amortisation expense
Finance costs
Director and secretarial costs
Impairment of exploration expenses
Impairment of available-for-sale financial assets
Impairment of assets held for sale - mineral assets
Insurance costs
Legal and professional costs
Travel and entertaining costs
Occupancy costs
Consultancy fees
Administration expenses
Employee benefits expense
Directors’, employees & consultant option expenses
Foreign exchange gain/ (loss)
Other expenses
Share of profit from joint venture entities using the equity method
Loss before income tax
Income tax (expense)/benefit
Net loss attributable to members of parent entity
Other comprehensive income/(loss)
Net fair value gain/(loss) on revaluation of financial assets
Other comprehensive gain/(loss) for the period, net of tax
Total comprehensive gain/(loss) for the period
Overall Operations
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
Consolidated Group
Note
February 2014
$
June 2013
$ (Restated)
2
3
3
17
12
11
18
4
22
8
8
1,772,840
(115,514)
(14,738)
(206,005)
(24,571)
(264.272)
(5,344,879)
(70,980)
(327,518)
(33,073)
(681,809)
(302,965)
(65,708)
4,150,164
(244,839)
(32,923)
(326,578)
(1,557,233)
(882,901)
-
(119,880)
(271,124)
(127,223)
(890,828)
(47,842)
(328,050)
(660,796)
(1,462,261)
(26,338)
(189,344)
(7,883,791)
(4,422,686)
(93,596)
(102,876)
8,810,941
1,928,906
(5,532,772)
(4,936,332)
-
117,540
(5,532,772)
(4,818,792)
92,937
92,937
621,038
621,038
(5,439,835)
(4,197,754)
(0.0024)
(0.0024)
(0.0022)
(0.0022)
The Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying
notes.
JUPITER MINES LIMITED ANNUAL REPORT 2014
16
STATEMENT OF FINANCIAL POSITION
AS AT 28 FEBRUARY 2014
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Assets held for sale
Financial assets
Other current assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
Intangible assets
Investments using the equity method
Other non-current assets
Exploration and evaluation assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
Provisions
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Provisions
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Consolidated Group
Note
February 2014
$
June 2013
$ (Restated)
1 July 2012
$ (Restated)
9
10
11
12
16
14
15
18
16
17
41,124,477
55,762,763
49,442,468
207,789
587,083
2,018,385
1,363,961
396,185
5,830,826
2,189,721
1,458,542
983,774
-
2,451,585
1,417,131
45,301,695
65,638,036
54,294,958
2,561,953
2,916,653
3,422,245
80,752
104,283
165,057
321,183,933
311,792,280
283,137,650
51,545,089
48,131,647
49,452,545
59,614,781
57,790,631
24,968,495
434,986,508
420,735,494
361,145,992
480,288,203
486,373,531
415,440,950
19
20
255,875
35,647
291,522
824,179
139,172
963,351
1,618,115
93,967
1,712,082
-
-
-
-
157,000
157,000
291,522
963,351
1,869,082
479,996,681
485,410,180
413,571,868
21
22
526,639,293
526,639,293
450,792,571
979,639
1,031,345
680,516
(47,622,251)
(42,260,458)
(37,901,219)
479,996,681
485,410,180
413,571,868
The above Statement of Financial Position should be read in conjunction with the accompanying notes.
17
JUPITER MINES LIMITED ANNUAL REPORT 2014
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Ordinary
Issued Capital
$
Note
Options
Reserve
$
Financial
Assets
Reserve
$
Accumulated
Losses
$
Total
$
450,792,571
680,516
-
-
-
-
-
-
-
-
(37,901,219)
413,571,868
(4,818,792)
(4,818,792)
621,038
-
621,038
621,038
(4,818,792)
(4,197,754)
21(a)
75,846,722
189,344
22(a)
-
(459,553)
75,846,722 (270,909)
-
-
-
-
-
-
-
76,036,066
459,553
-
(4,359,239)
71,838,312
-
-
526,639,293
410,307
621,038
(42,260,458)
485,410,180
-
-
-
-
-
-
-
-
-
-
-
-
26,338
(170,979)
(144,641)
-
-
(5,532,772)
(5,532,772)
92,937
-
92,937
92,937
(5,532,772)
(5,439,835)
-
-
-
-
-
-
-
170,979
170,979
-
-
26,338
-
26,338
-
22(a)
Balance at 1 July 2012
(Restated)
Loss attributable to members
of parent entity
Total other comprehensive
profit/(loss) for the year
Total comprehensive loss
for the year
Shares issued during the year,
net of transaction costs
Lapse of options
Sub-total
Dividends paid or provided for
Balance as at 30 June 2013
(Restated)
Loss attributable to members of
parent entity
Total other comprehensive profit/
(loss) for the year
Total comprehensive loss
for the year
Shares issued during the year,
net of transaction costs
Options vested during the period
Lapse of options
Sub-total
Dividends paid or provided for
Balance as at 28 February 2014
526,639,293
265,666
713,975
(47,622,251)
479,996,683
The Statement of Changes in Equity should be read in conjunction with the accompanying notes.
JUPITER MINES LIMITED ANNUAL REPORT 2014
18
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Consolidated Group
Note
February 2014
$
June 2013
$ (Restated)
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Interest received
Other income
Net cash used in operating activities
26(a)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment
Payments for exploration and evaluation of mining reserves
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issue of shares, net of transaction costs and
conversion of options to shares
Proceeds from/(contribution to) borrowings
Net cash provided by/(used in) financing activities
Net increase/(decrease) in cash and cash equivalents held
Cash and cash equivalents at beginning of financial period
Effect of exchange rates on cash holdings in foreign currencies
Cash and cash equivalents at the end of the financial period
(3,223,598)
1,694,553
361,264
(1,167,781)
(3,631,980)
3,152,327
247,630
(232,023)
(22,673)
(1,569,885)
(1,592,558)
(109,200)
(15,607,532)
(15,716,732)
-
75,846,722
(11,912,147)
(11,912,147)
(14,672,486)
(51,876,977)
23,969,745
8,020,991
55,762,763
49,442,468
34,200
41,124,477
(1,700,696)
55,762,763
The Statement of Cash Flows should be read in conjunction with the accompanying notes.
19
JUPITER MINES LIMITED ANNUAL REPORT 2014
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 1: Summary of Significant Accounting Policies
These consolidated financial statements and notes represent those of Jupiter Mines Limited (“Jupiter”) and it’s Controlled Entities
(the “Consolidated Group” or “Group”).
The separate financial statements of the parent entity, Jupiter Mines Limited, have not been presented within this financial report
as permitted by the Corporations Act 2001.
The financial statements were authorised and issued by the board of directors on 30 May 2014.
Basis of Preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards, Australian
Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board (AASB) and the
Corporations Act 2001.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report
containing relevant and reliable information about transactions, events and conditions. Compliance with Australian Accounting
Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards. Material
accounting policies adopted in the preparation of this financial report are presented below and have been consistently applied
unless otherwise stated.
The financial report has been prepared on an accruals basis and is based on historical costs, modified, where applicable, by
the measurement at fair value of selected non-current assets, financial assets and financial liabilities.
Jupiter Mines Limited is a for-profit entity for the purpose of preparing the financial statements.
(a)
Principles of Consolidation
The consolidated financial statements incorporate the assets, liabilities and results of entities controlled by Jupiter
Mines Limited at the end of the reporting period. A controlled entity is any entity over which Jupiter Mines Limited
has the power to govern the financial and operating policies so as to obtain benefits from its activities. Control
will generally exist when the parent owns, directly or indirectly through subsidiaries, more than half of the voting
power of an entity. In assessing the power to govern, the existence and effect of holdings of actual and potential
voting rights are considered.
A list of controlled entities is contained in Note 13 to the financial statements.
In preparing the consolidated financial statements, all inter-Group balances and transactions between entities in
the Consolidated Group have been eliminated on consolidation. Accounting policies of subsidiaries have been
changed where necessary to ensure consistency with those adopted by the parent entity.
Business Combinations
Business combinations occur where an acquirer obtains control over one or more businesses.
A business combination is accounted for by applying the acquisition method, unless it is a combination involving
entities or businesses under common control. The business combination will be accounted for from the date that
control is attained, whereby the fair value of the identifiable assets acquired and liabilities (including contingent
liabilities) assumed is recognised (subject to certain limited exemptions).
When measuring the consideration transferred in the business combination, any asset or liability resulting from a
contingent consideration arrangement is also included. Subsequent to initial recognition, contingent consideration
classified as equity is not remeasured and its subsequent settlement is accounted for within equity. Contingent
consideration classified as an asset or liability is remeasured each reporting period to fair value, recognising any
change to fair value in profit or loss, unless the change in value can be identified as existing at acquisition date.
All transaction costs incurred in relation to the business combination are expensed to the statement of
comprehensive income.
The acquisition of a business may result in the recognition of goodwill or a gain from a bargain purchase.
JUPITER MINES LIMITED ANNUAL REPORT 2014
20
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 1: Summary of Significant Accounting Policies (continued)
(b)
Interests in Joint Ventures
The Group acquired an interest in Tshipi é Ntle Manganese Mining (Proprietary) Limited (“Tshipi”), a joint venture
entity, in October 2010. The Group’s accounting policy for joint ventures was considered by the Directors as part of
the deliberation on the Tshipi acquisition, and had not been formally considered or articulated previously.
The Group also under took an interest in OM Tshipi (S) Pte Ltd (“OMT”), a joint venture entity, in November 2013.
Associates are those entities over which the Group is able to exert significant influence but which are not subsidiaries.
A joint venture is an arrangement that the Group controls jointly with one or more other investors, and over which
the Group has rights to a share of the arrangement’s net assets rather than direct rights to underlying assets and
obligations for underlying liabilities.
Investments in associates and joint ventures are accounted for using the equity method.
Any goodwill or fair value adjustment attributable to the Group’s share in the associate or joint venture is not
recognised separately and is included in the amount recognised as investment.
The carrying amount of the investment in associates and joint ventures is increased or decreased to recognise the
Group’s share of the profit or loss and other comprehensive income of the associate and joint venture, adjusted where
necessary to ensure consistency with the accounting policies of the Group.
Unrealised gains and losses on transactions between the Group and its associates and joint ventures are eliminated
to the extent of the Group’s interest in those entities. Where unrealised losses are eliminated, the underlying asset is
also tested for impairment.
(c)
Income Tax
The income tax expense (revenue) for the period comprises current income tax expense (income) and deferred tax
expense (income).
Current income tax expense charged to profit or loss is the tax payable on taxable income. Current tax liabilities
(assets) are measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the
period as well unused tax losses.
Current and deferred income tax expense (income) is charged or credited outside profit or loss when the tax relates
to items that are recognised outside profit or loss.
Except for business combinations, no deferred income tax is recognised from the initial recognition of an asset or
liability, where there is no effect on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the
asset is realised or the liability is settled and their measurement also reflects the manner in which management expects
to recover or settle the carrying amount of the related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent
that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset
can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures,
deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can
be controlled and it is not probable that the reversal will occur in the foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that
net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax
assets and liabilities are offset where: (a) a legally enforceable right of set-off exists; and (b) the deferred tax assets
and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different
taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the respective
asset and liability will occur in future periods in which significant amounts of deferred tax assets or liabilities are
expected to be recovered or settled.
JUPITER MINES LIMITED ANNUAL REPORT 2014
21
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 1: Summary of Significant Accounting Policies (continued)
d)
Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable,
any accumulated depreciation and impairment losses.
Plant and equipment
Plant and equipment are measured on the cost basis.
The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of
the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected
net cash flows that will be received from the asset’s employment and subsequent disposal. The expected net
cash flows have been discounted to their present values in determining recoverable amounts.
The cost of fixed assets constructed within the Consolidated Group includes the cost of materials, direct labour,
borrowing costs and an appropriate proportion of fixed and variable overheads.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Group and the
cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of
comprehensive income during the financial period in which they are incurred.
Depreciation
The depreciable amount of all fixed assets is depreciated on a straight-line basis over their useful lives to the
Consolidated Group commencing from the time the asset is held ready for use.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Office equipment
Furniture & fittings
Motor vehicles
Leasehold improvements
Buildings
Depreciation Rate
33.33%
33.33%
12.50%
20.00%
10.00%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount
is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains
and losses are included in the statement of comprehensive income.
(e)
Exploration and Evaluation Expenditure
The application of the Group’s accounting policy for exploration and evaluation expenditure requires judgment
in determining whether it is likely that future economic benefits are likely either from future exploitation or sale or
where activities have not reached a stage which permits a reasonable assessment of the existence of reserves.
The determination of a Joint Ore Reserves Committee (JORC) resource is itself an estimation process that requires
varying degrees of uncertainty depending on sub-classification and these estimates directly impact the point of
deferral of exploration and evaluation expenditure. The deferral policy requires management to make certain
estimates and assumptions about future events or circumstances, in particular whether an economically viable
extraction operation can be established. Estimates and assumptions made may change if new information
becomes available. If, after expenditure is capitalised, information becomes available suggesting that the
recovery of expenditure is unlikely, the amount capitalised is written off in the Statement of Profit or Loss and
Other Comprehensive Income in the period when the new information becomes available.
JUPITER MINES LIMITED ANNUAL REPORT 2014
22
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 1: Summary of Significant Accounting Policies (continued)
(f)
Leases
Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not
the legal ownership that is transferred to entities in the Consolidated Group, are classified as finance leases.
Finance leases are capitalised by recognising an asset and a liability at the lower of the amounts equal to the
fair value of the leased property or the present value of the minimum lease payments, including any guaranteed
residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest
expense for the period.
Leased assets are depreciated on a straight-line basis over the shorter of their estimated useful lives or the lease
term.
Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are
recognised as expenses in the periods in which they are incurred.
Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over
the lease term.
(g)
Financial Assets
Recognition and initial measurement
Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual
provisions to the instrument. For financial assets, this is equivalent to the date that the company commits itself to
either the purchase or sale of the asset (i.e. trade date accounting is adopted).
Financial instruments are initially measured at fair value plus transaction costs, except where the instrument is
classified “at fair value through profit or loss”, in which case transaction costs are expensed to profit or loss
immediately.
Classification and subsequent measurement
Finance instruments are subsequently measured at fair value, amortised cost using the effective interest rate method,
or cost.
Amortised cost is the amount at which the financial asset or financial liability is measured at initial recognition
less principal repayments and any reduction for impairment, and adjusted for any cumulative amortisation of the
difference between that initial amount and the maturity amount calculated using the effective interest method.
Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied
to determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar
instruments and option pricing models.
The effective interest method is used to allocate interest income or interest expense over the relevant period and
is equivalent to the rate that discounts estimated future cash payments or receipts (including fees, transaction
costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted,
the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial
liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a
consequential recognition of an income or expense item in profit or loss.
The Group does not designate any interests in subsidiaries, associates or joint venture entities as being subject to
the requirements of Accounting Standards specifically applicable to financial instruments.
(i)
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market and are subsequently measured at amortised cost.
Loans and receivables are included in current assets, where they are expected to mature within 12 months
after the end of the reporting period.
JUPITER MINES LIMITED ANNUAL REPORT 2014
23
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 1: Summary of Significant Accounting Policies (continued)
Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or
determinable payments, and it is the Group’s intention to hold these investments to maturity. They are
subsequently measured at amortised cost.
Held-to-maturity investments are included in non-current assets where they are expected to mature within
12 months after the end of the reporting period. All other investments are classified as current assets.
(ii)
Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are either not suitable to be
classified into other categories of financial assets due to their nature, or they are designated as such
by management. They comprise investments in the equity of other entities where there is neither a fixed
maturity nor fixed or determinable payments.
They are subsequently measured at fair value with changes in such fair value (i.e. gains or losses)
recognised in other comprehensive income (except for impairment losses and foreign exchange gains
and losses). When the financial asset is derecognised, the cumulative gain or loss pertaining to that
asset previously recognised in other comprehensive income is reclassified into profit or loss.
Available-for-sale financial assets are included in current assets where they are expected to be sold
within 12 months after the end of the reporting period. All other financial assets are classified as non-
current assets.
(iii)
Financial liabilities
Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at
amortised cost.
Impairment of Financial Assets
At the end of each reporting period, the Group assess whether there is objective evidence that a financial
asset has been impaired. A financial asset or a group of financial assets is deemed to be impaired if, and only
if, there is objective evidence of impairment as a result of one or more events (a “loss event”) having occurred,
which has an impact on the estimated future cash flows of the financial asset(s).
In the case of available-for-sale financial assets, a significant or prolonged decline in the market value of the
instrument is considered to constitute a loss event. Impairment losses are recognised in profit or loss immediately.
Also, any cumulative decline in fair value previously recognised in other comprehensive income is reclassified
to profit or loss at this point.
In the case of financial assets carried at amortised cost, loss events may include: indications that the debtors or
a group of debtors are experiencing significant financial difficulty, default or delinquency in interest or principal
payments; indications that they will enter bankruptcy or other financial reorganisation; and changes in arrears
or economic conditions that correlate with defaults.
For financial assets carried at amortised cost (including loans and receivables), a separate allowance account
is used to reduce the carrying amount of financial assets impaired by credit losses. After having taken all
possible measures of recovery, if management establishes that the carrying amount cannot be recovered by
any means, at that point the written-off amounts are charged to the allowance account or the carrying amount
of impaired financial assets is reduced directly if no impairment amount was previously recognised in the
allowance account.
When the terms of the financial assets that would otherwise have been past due or impaired have been
renegotiated, the group recognises the impairment for such financial assets by taking into account the original
terms as if the terms have not been renegotiated so that the loss events have occurred are duly considered.
JUPITER MINES LIMITED ANNUAL REPORT 2014
24
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 1: Summary of Significant Accounting Policies (continued)
(h)
Impairment of Non-Financial Assets
At each reporting date, the Group reviews the carrying values of its tangible and intangible assets to determine
whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable
amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to
the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the
statement of comprehensive income.
Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the
recoverable amount of the cash-generating unit to which the asset belongs.
Impairment testing is performed annually for intangible assets with indefinite lives.
(i)
Employee Benefits
Provision is made for the Company’s liability for employee benefits arising from services rendered by employees
to reporting date. Employee benefits that are expected to be settled within one year have been measured at the
amounts expected to be paid when the liability is settled. Employee benefits payable later than one year have
been measured at the present value of the estimated future cash outflows to be made for those benefits. Those
cash flows are discounted using market yields on national government bonds with terms to maturity that match the
expected timing of cash flows.
(j)
Provisions
Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for
which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.
(k)
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid
investments with original maturities of three months or less, less credit card facilities used. Bank overdrafts are
shown as short-term borrowings in liabilities.
(l)
Trade and Other Receivables
Trade receivables, which generally have 30 day terms, are recognised initially at fair value and subsequently
measured at amortised cost using the effective interest method, less an allowance for impairment.
Collectability of trade receivables is reviewed on an ongoing basis at an operating unit level. Individual debts that
are known to be uncollectible are written off when identified. An impairment provision is recognised when there
is objective evidence that the Group will not be able to collect the receivable.
(m)
Revenue and Other Income
Revenue from the sale of goods is recognised when significant risks and rewards of the saleable product have
transferred to the customer. Risks and rewards are considered passed to the customer upon delivery to the
customer’s control. This generally occurs when the product is physically transferred onto a vessel.
Revenue from inventory sales is measured at fair value of consideration received/receivable. Revenue is stated
after deducting sales taxes, duties and levies.
The price is determined on a provisional bases at the date of sale (cost insurance and freight). Adjustments to the
sale price may occur based on variances in the metal or moisture content of the ore up to the date of final pricing.
The period between provisional invoicing and final pricing is typically between 2 and 3 months. Accordingly, the
fair value of the original revenue and associated receivable is adjusted each reporting period by reference to the
best estimate of the actual metal and moisture content. The changes in fair value are recorded as an adjustment
to revenue.
Interest revenue is recognised using the effective interest rate method, which, for floating rate financial assets, is
the rate inherent in the instrument.
All revenue is stated net of the amount of goods and services tax (GST).
JUPITER MINES LIMITED ANNUAL REPORT 2014
25
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 1: Summary of Significant Accounting Policies (continued)
(n)
Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take
a substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until
such time as the assets are substantially ready for their intended use or sale.
All other borrowing costs are recognised in the statement of profit or loss and comprehensive income in the
period in which they are incurred.
(o)
Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST
incurred is not recoverable from the Australian Taxation Office (ATO).
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of
GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement
of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or
financing activities which are recoverable from, or payable to, the ATO are presented as operating cash flows
included in receipts from customers or payments to suppliers.
(p)
Trade and Other Payables
Trade and other payables are carried at cost and due to their short time nature they are not discounted. They
represent liabilities for goods and services provided to the Group prior to the end of the financial period that
are unpaid and arise when Jupiter becomes obliged to make future payments in respect of the purchase of
these goods and services. The amounts are unsecured and are usually paid within 30 days of recognition.
(q)
Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current financial period.
(r)
Critical Accounting Estimates and Judgments
The Directors evaluate estimates and judgments incorporated into the financial report based on historical
knowledge and best available current information. Estimates assume a reasonable expectation of future events
and are based on current trends and economic data, obtained both externally and within the Group.
Key estimates – Impairment of non-financial assets
The Group assesses impairment at each reporting date by evaluating conditions specific to the Group that
may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is
determined.
Key estimates – Options
The fair value of services received in return for options granted are measured by reference to the fair value of
options granted. The estimate of the fair value of the services received is measured based on the Black Scholes
option-pricing model. The contractual life of the options is used as an input into the model. Expectations of early
exercise are incorporated into the model as well. Refer to Note 27 for more details.
The expected volatility is based on the historic volatility of peer Group entities (calculated on the weighted
average remaining life of the share options), adjusted for any expected changes to volatility due to publicly
available information. Further information regarding assumptions is included in Note 27.
JUPITER MINES LIMITED ANNUAL REPORT 2014
26
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 1: Summary of Significant Accounting Policies (continued)
Key judgements – Exploration and evaluation expenditure
The Group’s accounting policy for exploration and evaluation expenditure results in certain items of expenditure
being capitalised for an area of interest where it is considered likely to be recoverable by future exploitation or sale
or where the activities have not reached a stage which permits a reasonable assessment of the existence of reserves.
This policy requires management to make certain estimates and assumptions as to future events and circumstances,
in particular whether an economically viable extraction operation can be established. Any such estimates and
assumptions may change as new information becomes available. If, after having capitalised the expenditure under
the policy, a judgement is made that recovery of the expenditure is unlikely, the relevant capitalised amount will be
written off to the statement of comprehensive income. An impairment has been recognised in respect of exploration
expenditure at reporting date of $5,344,880. Refer to Note 11 for more details.
Mineral Reserves and Resource Estimates
Ore reserves are estimates of the amount of ore that can be economically and legally extracted from the
Group’s mining properties. The Group estimates its ore reserves and mineral resources based on information
compiled by appropriately qualified persons relating to the geological data on the size, depth and shape of
the ore body, and requires complex geological judgments to interpret the data. The estimation of recoverable
reserves is based upon factors such as estimates of foreign exchange rates, commodity prices, future capital
requirements, and production costs along with geological assumptions and judgments made in estimating the
size and grade of the ore body. Changes in the reserve or resource estimates may impact upon the carrying
value of exploration and evaluation assets, mine properties, property, plant and equipment, goodwill, provision
for rehabilitation, recognition of deferred tax assets, and depreciation and amortisation charges.
Assets Held for Sale
As disclosed in Note 11 to the financials, the Klondyke and Oakover areas of interest were re-classified to
“Assets Held for Sale” for the reporting period ended 30 June 2013. The Directors have assessed and then
impaired the value of these two areas of interest to their estimated fair value for the period ended 28 February
2014. It is expected that these assets will be sold in the next 12 months.
(s)
Share based payments
Under AASB 2 share based payments, the Company is required to determine the fair value of options issued
to employees as remuneration and recognise as an expense in the statement of comprehensive income.
This standard is not limited to options and also extends to other forms of equity-based remuneration.
(t)
Foreign Currency Translation
(i)
Functional and presentation currency
The functional and presentation currency of Jupiter and its subsidiaries is Australian dollars ($).
The presentation and functional currency for the interest in Tshipi is the South African Rand.
The results are translated into Australian dollars for disclosure in Jupiter’s consolidated accounts.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using
the exchange rate as at the initial transaction. Non-monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the date when the fair value was determined.
(ii)
Translation of interest in Joint Venture functional currency to presentation currency
The results of the South African Joint Venture interest are translated into Australian dollars using an average
rate over the period of the transactions. Assets and liabilities are translated at exchange rates prevailing
at reporting dates.
27
JUPITER MINES LIMITED ANNUAL REPORT 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 1: Summary of Significant Accounting Policies (continued)
(u)
Adoption of New and Revised accounting standards and interpretations
During the current period, Jupiter adopted all of the new and revised Australian Accounting Standards and
Interpretations applicable to its operations which became mandatory. The adoption of these standards has
impacted the recognition, measurement and disclosure of certain transactions. The adoption of these standards
was applied for the entire reporting period unless otherwise stated. These new pronouncements have had no
significant impact on the group for this reporting period.
Adoption of AASBs and improvements to AASBs 2011 – AASB 1054 and AASB 2011-1
The AASB has issued AASB 1054 Australian Additional Disclosures and 2011-1 Amendments to Australian
Accounting Standards arising from the Trans-Tasman Convergence Project, and made several minor amendments
to a number of AASBs. These standards eliminate a large portion of the differences between the Australian and
New Zealand accounting standards and IFRS and retain only additional disclosures considered necessary.
These changes also simplify some current disclosures for Australian entities and remove others.
AASB Interpretation 20 Stripping Costs in the Production Phase of Surface Mining (applicable for
annual reporting periods beginning on or after 1 January 2013).
This standard has been chosen for early adoption by the Group. The Group has recognised a deferred
stripping asset in accordance with the requirements of this Interpretation. The deferred stripping asset has
been capitalised as part of inventory, as a current asset. The Board believes that benefit will realised in the
next 12 months.
This interpretation clarifies that costs of removing mine waste materials (overburden) to gain access to mineral
ore deposits during the production stage of a mine must be capitalised as inventories under AASB 102:
Inventories if the benefits from stripping activity is realised in the form of inventory produced.
AASB 11 Joint Arrangements – effective for annual reporting period beginning on or after 1 January 2013
Nature of change:
AASB 11 replaces AASB 131 Interest in Joint Ventures and AASB Interpretation 113 Jointly-controlled entities-
Non-Monetary Contributions by Ventures. AASB 111 uses the principle of control in AASB 10 to define joint
control, and therefore the determination of whether control exists may change. In addition, AASB 11 removes
the option to account for jointly-controlled entities (JCEs) using proportionate consolidation, whereby the Group
combined its share of the JCEs individual income and expenses, assets and liabilities and cash flows on a
line-by-line basis with similar items in the Group’s financial statements.
The Group has now adopted AASB 11 Joint Arrangements in its 28 February 2014 annual financial report.
Under AASB 11, investments in joint arrangements are classified as either joint operations or joint ventures
depending on the contractual rights and obligations of each investor.
Tshipi é Ntle Manganese Mining (Proprietary) Limited was previously accounted for using proportionate
consolidation and has been assessed to meet the classification criteria of a joint venture under AASB 11. As a
result, it has been accounted for using the equity method.
As required under AASB 11, the change in accounting policy has been applied retrospectively and as a
consequence, adjustments were recognised in the statement of financial position as at 30 June 2012 and
30 June 2013 and in the income statement for the period ended 30 June 2013. The tables below show the
effect of the change in accounting policy on individual line items in each of the financial statements. Line items
not affected by the change have not been included. As a result, the sub-totals and totals disclosed cannot be
recalculated from the numbers provided.
The impact of this change in the entity’s accounting policy on individual line items in the financial statements
can be summarised on the following page:
JUPITER MINES LIMITED ANNUAL REPORT 2014
28
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 1: Summary of Significant Accounting Policies (continued)
Statement of Financial
Position
30-JUN-13
(previously
stated)
Increase/
(decrease)
30-JUN-13
(Restated)
30-JUN-12
(previously
stated)
Increase/
(decrease)
30-JUN-12
(Restated)
Current assets
Cash and cash equivalents
63,478,108
(7,715,345)
55,762,763
65,004,419
(15,561,951)
49,442,468
Trade and other receivables
8,160,186
(7,764,001)
396,185
2,354,420
(1,370,646)
983,774
Inventories
Assets held for sale
Financial assets
Other current assets
Non-current assets
Property, plant and
equipment
Intangible assets
Mining reserve
Investments using equity
method
Exploration and evaluation
assets
10,312,261
(10,312,261)
-
5,830,826
2,189,721
-
-
5,830,826
2,189,721
2,451,585
-
-
-
-
-
-
-
2,451,585
3,188,927
(1,730,385)
1,458,542
2,360,261
(943,130)
1,417,131
13,204,347
(10,287,694)
2,916,653
6,441,487
(3,019,242)
3,422,245
868,881
(764,598)
104,283
221,690
(56,633)
165,057
403,723,031
(403,723,031)
-
374,633,122
(374,633,122)
-
-
311,792,280
311,792,280
-
283,137,650
283,137,650
57,790,631
-
57,790,631
50,326,038
(873,493)
49,452,545
Other non-current assets
52,189,308
(4,057,661)
48,131,647
24,968,495
-
24,968,495
Total Assets
620,936,227
(134,562,696)
486,373,531
528,761,517
(113,320,567)
415,440,950
Current liabilities
Trade and other payables
7,443,479
(6,619,300)
Short-term provisions
Non-current liabilities
255,680
(116,508)
824,179
139,172
5,009,091
(3,390,976)
1,618,115
153,508
(59,541)
93,967
Provisions
1,259,261
(1,259,261)
Deferred tax liability
90,057,793
(90,057,793)
Long-term borrowings
42,508,141
(42,508,141)
-
-
-
4,244,290
(4,087,290)
157,000
90,092,871
(90,092,871)
19,259,312
(19,259,312)
-
-
Total Liabilities
NET ASSETS
Equity
Issued Capital
Reserves
141,524,354
(140,561,003)
963,351
118,759,072
(116,889,990)
1,869,082
479,411,873
5,998,307
485,410,180
410,002,445
3,569,423
413,571,868
526,639,293
-
526,639,293
450,792,571
-
450,792,571
(2,113,001)
3,144,347
1,031,346
(2,279,693)
2,960,209
680,516
Accumulated Losses
(45,114,419)
2,853,961
(42,260,458)
(38,510,433)
609,214
(37,901,219)
TOTAL EQUITY
479,411,873
5,998,307
485,410,180
410,002,445
3,569,423
413,571,868
29
JUPITER MINES LIMITED ANNUAL REPORT 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 1: Summary of Significant Accounting Policies (continued)
Statement of Profit or Loss and Other Comprehensive Income
(Restated)
Revenue
Other income
Depreciation and amortisation costs
Finance costs
Director and secretarial costs
Impairment of exploration interests
Impairment of property, plant and equipment
Impairment of available-for-sale financial assets
Insurance costs
Legal and professional costs
Travel and entertaining costs
Occupancy costs
Consultancy fees
Administration costs
Employee benefits expense
Directors’, employees & consultant option expenses
Realised foreign exchange gain / (loss)
Other expenses
30-JUN-13
(previously
stated)
$
Increase/
(decrease)
$
30-JUN-13
(Restated)
$
2,15t6,900
1,933,264
4,150,164
4,683,568
(4,683,568)
-
(244,839)
(303,702)
(326,578)
-
(244,839)
(270,779)
(32,923)
-
(326,578)
(1,573,618)
(16,385)
(1,557,233)
(8,814)
(882,901)
(119,880)
(674,867)
(218,331)
(890,828)
(47,842)
(328,050)
-
-
-
(403,743)
(91,108)
-
-
-
(8,814)
(882,901)
(119,880)
(271,124)
(127,223)
(890,828)
(47,842)
(328,050)
(1,557,547)
(95,586)
(1,462,261)
(189,344)
-
(189,344)
(6,551,529)
(2,128,842)
(4,422,686)
(102,876)
-
(102,876)
Share of profit from joint venture entities using the equity method
-
1,928,906
1,928,906
Profit / (Loss) before income tax
(7,181,078)
(2,244,746)
(4,936,332)
Statement of Cash Flows (Extract)
Cash Flows from Operating Activities
Payments to suppliers and employees
(4,842,261)
3,483,021
(1,359,240)
Net cash inflows/(outflows) from operating activities
(1,617,125)
3,139,239
1,522,114
Cash Flows from Investing Activities
Purchase of plant and equipment
Payments for exploration and evaluation
Net cash outflows from investing activities
(2,793,112)
2,750,659
(42,453)
(47,675,627)
34,505,333
(13,170,294)
(50,468,739)
37,255,992
(13,212,747)
Net cash inflows from financing activities
72,019,967
(35,411,070)
36,608,897
Net movements in cash flows
19,934,103
4,984,161
24,918,264
JUPITER MINES LIMITED ANNUAL REPORT 2014
30
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 1: Summary of Significant Accounting Policies (continued)
(v)
New accounting standards for Application in Future Periods
Certain new accounting standards and interpretations have been published that are not mandatory for 28
February 2014 reporting periods and have not yet been applied in the financial report. Jupiter’s assessment of
the impact of these new standards and interpretations is set out below.
AASB 9 Financial Instruments
AASB 9 introduces new requirements for the classification and measurement of financial assets and liabilities.
These requirements improve and simplify the approach for classification and measurement of financial assets
compared with the requirements of AASB 139. The main changes are:
(a) Financial assets that are debt instruments will be classified based on (1) the objective of the entity’s business
model for managing the financial assets; and (2) the characteristics of the contractual cash flows.
(b) Allows an irrevocable election on initial recognition to present gains and losses on investments in equity
instruments that are not held for trading in other comprehensive income (instead of in profit or loss). Dividends
in respect of these investments that are a return on investment can be recognised in profit or loss and there is
no impairment or recycling on disposal of the instrument.
(c) Financial assets can be designated and measured at fair value through profit or loss at initial recognition if
doing so eliminates or significantly reduces a measurement or recognition inconsistency that would arise from
measuring assets or liabilities, or recognising the gains and losses on them, on different bases.
(d) Where the fair value option is used for financial liabilities the change in fair value is to be accounted for
as follows:
• The change attributable to changes in credit risk are presented in other comprehensive income
(OCI); and
• The remaining change is presented in profit or loss.
If this approach creates or enlarges an accounting mismatch in the profit or loss, the effect of the changes in
credit risk are also presented in profit or loss.
Otherwise, the following requirements have generally been carried forward unchanged from AASB 139 into
AASB 9:
• Classification and measurement of financial liabilities; and
• Derecognition requirements for financial assets and liabilities.
Consequential amendments were also made to other standards as a result of AASB 9, introduced by AASB
2009-11 and superseded by AASB 2010-7 and AASB 2010-10.
AASB 10 Consolidated Financial Statements
AASB 10 establishes a revised control model that applies to all entities. It replaces the consolidation requirements
in AASB 127 Consolidated and Separate Financial Statements and AASB Interpretation 112 Consolidation –
Special Purpose Entities.
The revised control model broadens the situations when an entity is considered to be controlled by another
entity and includes additional guidance for applying the model to specific situations, including when acting as
an agent may give control, the impact of potential voting rights and when holding less than a majority voting
rights may give ‘de facto’ control. This will have an impact on Jupiter as a consolidated entity.
JUPITER MINES LIMITED ANNUAL REPORT 2014
31
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 1: Summary of Significant Accounting Policies (continued)
AASB 12 Disclosure of Interests in Other Entities
AASB 12 includes all disclosures relating to an entity’s interests in subsidiaries, joint arrangements, associates and
structures entities. New disclosures introduced by AASB 12 include disclosures about the judgements made by
management to determine whether control exists, and to require summarised information about joint arrangements,
associates and structured entities and subsidiaries with non-controlling interests. This will result in further disclosures
being made by the group.
AASB 13 Fair Value Measurement
AASB 13 establishes a single source of guidance for determining the fair value of assets and liabilities. AASB 13
does not change when an entity is required to use fair value, but rather, provides guidance on how to determine
fair value when fair value is required or permitted by other Standards. Application of this definition may result in
different fair values being determined for the relevant assets.
AASB 13 also expands the disclosure requirements for all assets or liabilities carried at fair value. This includes
information about the assumptions made and the qualitative impact of those assumptions on the fair value
determined.
AASB 127 Separate Financial Statements
As a result of the issuance of AASB 10, AASB 127 has been restructured and reissued to only deal with separate
financial statements. This may not have an impact on the group.
AASB 128 Investment in Associates and Joint Ventures
Once an entity (using AASB 11) has determined that it has an interest in a joint venture, it accounts for it using the
equity method in accordance with AASB 128 (Revised). The mechanics of equity accounting set out in the revised
version of AASB 128 remain the same as in the previous version.
AASB 2010-8 Amendments to Australian Accounting Standards –Deferred Tax: Recovery of Underlying Assets
These amendments address the determination of deferred tax on investment property measured at fair value
and introduce a rebuttable presumption that deferred tax on investment property measured at fair value should
be determined on the basis that the carrying amount will be recoverable through sale. The amendments also
incorporate AASB Interpretation 121 Income Taxes – Recovery of Revalued Non-Depreciable Assets into AASB
112. This may not have an impact on the group, dependent upon any possible property transactions undertaken.
AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint
Arrangements Standards
This Standard makes consequential amendments to various Australian Accounting Standards arising from the
issuance of AASB 10, AASB 11, AASB 12, AASB 127 (August 2011) and AASB 128 (August 2011).
AASB 2011-9 Amendments to Australian Accounting Standards – Presentation of Other Comprehensive Income
Amendments to group items presented in other comprehensive income on the basis of whether they are potentially
reclassifiable to profit or loss in subsequent periods (reclassification adjustments, e.g. foreign currency translation
reserves) and those that cannot subsequently be reclassified (e.g. fixed asset revaluation surpluses).
Name changes of statements in AASB 101 as follows:
• One statement of comprehensive income – to be referred to as ‘statement of profit or loss and other
comprehensive income’
• Two statements – to be referred to as ‘statement of profit or loss’ and ‘statement of comprehensive income’.
The group will rename the financial statements as required.
JUPITER MINES LIMITED ANNUAL REPORT 2014
32
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 1: Summary of Significant Accounting Policies (continued)
AASB 2012-2 Amendments to Australian Accounting Standards – Disclosures – Offsetting Financial
Assets and Financial Liabilities
This Standard amends the required disclosures in AASB 7 to include information that will enable users of an
entity’s financial statements to evaluate the effect or potential effect of netting arrangements, including rights of
set-off associated with the entity’s recognised financial assets and recognised financial liabilities, on the entity’s
financial position.
This Standard also amends AASB 132 to refer to the additional disclosures added to AASB 7 by this Standard.
The group will be able to adopt this amendment to offset their financial assets and liabilities.
AASB 2012-3 Amendments to Australian Accounting Standards – Offsetting Financial Assets and
Financial Liabilities
This Standard adds application guidance to AASB 132 to address inconsistencies identified in applying some
of the offsetting criteria of AASB 132, including clarifying the meaning of “currently has a legally enforceable
right of set-off” and that some gross settlement systems may be considered equivalent to net settlement.
AASB 2012-5 Amendments to Australian Accounting Standards arising from Annual Improvements
2009–2011 Cycle
These amendments are a consequence of the annual improvements process, which provides a vehicle for
making non-urgent but necessary amendments to Standards.
These amendments follow the issuance of Annual Improvements to IFRSs 2009–2011 Cycle issued by the
International Accounting Standards Board in May 2012.
Mandatory Effective Date of IFRS 9 and Transition Disclosures
This Standard amends IFRS 9 to require application for annual periods beginning on or after 1 January 2015,
rather than 1 January 2013. Early application of IFRS 9 is still permitted. IFRS 9 is also amended so that it
does not require the restatement of comparative-period financial statements for the initial application of the
classification and measurement requirements of IFRS 9, but instead requires modified disclosures on transition
to IFRS 9.
33
JUPITER MINES LIMITED ANNUAL REPORT 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 2: Revenue
Interest received
Other revenue
Note 3: Loss from Ordinary Activities
Expenses
Finance costs
Rental expense on operating leases
Operating lease rental
-
Depreciation of non-current assets:
-
-
-
Leasehold improvements
Plant and equipment
Furniture and fittings
Amortisation of non-current assets:
Intangibles
-
Total depreciation and amortisation expense
Superannuation expense
Impairment
Exploration interests
-
Property, plant and equipment
-
-
Financial assets
Total Impairment Expense
Note 4: Income Tax Expense
Consolidated Group
February 2014
$
1,412,434
360,406
1,772,840
14,738
681,809
(9,080)
33,203
43,572
47,819
115,514
45,516
24,571
-
5,609,151
5,633,722
June 2013
$ (Restated)
4,016,138
134,026
4,150,164
32,923
890,828
57,517
53,745
65,753
67,824
244,839
89,115
1,557,233
-
890,828
2,448,061
(a) The prima facie tax on loss from ordinary activities before income tax is reconciled to the income tax expense as follows:
Prima facie tax expense/(benefit) on ordinary activities before income tax at 30% (2013: 30%):
Consolidated entity
Add:
Tax effect of:
-
-
-
Tax rate differential
Share options expensed
Other non-deductible expenses
Less:
- Deferred Tax Not Recognised
- Recoupment of prior-year tax losses not previously
brought to account
- Research & Development offset
Income tax benefit
Income tax benefit not brought to account
Income tax benefit
(1,659,831)
(1,480,900)
(164,749)
7,901
2,230,689
414,012
1,029,907
(1,473,918)
-
-
-
-
(38,578)
56,803
3,817,199
2,354,524
(1,825,152)
(646,912)
(1,259,101)
(1,376,641)
(117,540)
(b) Deferred income tax benefit (net of deferred tax liability reduced
– Note C) in respect of tax losses not brought to account
Deferred income tax benefit attributable to timing differences not brought
to account included above
(c) Deferred income tax liability which has been reduced to nil by
the benefits attributable to tax losses not brought to account
2,631,843
3,023,595
87,010
183,574
18,741,540
19,883,055
JUPITER MINES LIMITED ANNUAL REPORT 2014
34
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 5: Interests of Key Management Personnel
Refer to the Remuneration Report contained in the Report of the Directors for details of the remuneration paid or payable
to each member of the Group’s key management personnel for the period ended 28 February 2014.
(a) Names and positions held of economic and parent entity key management personnel in office at any time during the
financial period are:
Key Management Personnel
Position
Mr B P Gilbertson
Chairman – non-executive
Mr A Bell
Director – non-executive
Mr P R Murray
Director – non-executive
Mr P Thapliyal
Director – executive
Mr S C Shin
Mr G Durack
Ms M North
Director – non-executive
CEO
Resigned 16 July 2013
CFO & Company Secretary
(b) The totals of remuneration paid to KMP of the Company and the Group during the period are as follows:
Short-term employee benefits
Post-employment benefits
Share-based payments
(c) Options and Rights Holdings
Number of Options Held By Key Management Personnel
Consolidated Group
February 2014
$
457,521
31,911
-
489,432
June 2013
$ (Restated)
713,876
56,130
-
770,006
Balance
1 July 2013
Granted as
Compensation
Exercised
Other
Changes*
Balance
28 February
2014
Vested Unvested
Not
Exercisable
Mr G Durack 1,500,000
-
-
(1,500,000)
-
-
-
-
*Other changes refer to options purchased, lapsed, cancelled or sold during the financial year.
Options provided as compensation:
Fair Value at
Grant Date $
Exercise Price
$
Amount Paid
$
Expiry Date
Exercise Date
Mr G Durack
Mr G Durack
Mr G Durack
0.162
0.156
0.152
0.70
0.80
0.90
-
-
-
11 Apr 2016
11 Apr 2013
11 Apr 2016
11 Apr 2014
11 Apr 2016
11 Apr 2015
The service conditions pertaining to these options involve the Key Management Personnel remaining employed by the Group.
JUPITER MINES LIMITED ANNUAL REPORT 2014
35
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 5: Interests of Key Management Personnel (continued)
(c) Options and Rights Holdings
Number of Options Held By Key Management Personnel
Balance 1
July 2012
Granted as
Compensation
Exercised
Other
Changes*
Balance 30
June 2013
Vested
Unvested
Not
Exercisable
Mr G Durack 1,500,000
Mr Finkelstein 1,000,000
Total
2,500,000
-
-
-
-
-
-
- 1,500,000
- 1,500,000 1,500,000
(1,000,000)
-
-
-
-
(1,000,000) 1,500,000
- 1,500,000 1,500,000
*Other changes refer to options purchased, lapsed, cancelled or sold during the financial year.
(d) Shareholdings
Number of Shares held by Key Management Personnel
Key Management
Personnel
Balance 1
July 2013
Received as
Remuneration
Options
Exercised
Net Change
Other 1
Balance 28
February 2014
Mr P R Murray
Mr P Thapliyal2
Total
1,260,000
14,813,155
16,073,155
-
-
-
-
-
-
-
10,045,808
10,045,808
1,260,000
24,858,963
26,118,963
1 Net change other refers to shares purchased or sold during the financial year.
2 Priyank Thapliyal is a Director of PSF and therefore has a relevant interest in PSF. PSF is the registered owner of 421,042,093 Ordinary Shares.
Number of Shares held by Key Management Personnel
Key Management
Personnel
Mr P R Murray
Mr P Thapliyal2
Total
Balance 1
July 2012
1,260,000
11,727,080
12,987,080
Received as
Remuneration
-
-
-
Options
Exercised
-
-
-
Net Change
Other 1
-
3,086,075
3,086,075
Balance 30 June
2013
1,260,000
14,813,155
16,073,155
1 Net change other refers to shares purchased or sold during the financial year. Amount paid per share $0.16.
2 Priyank Thapliyal is a Director of PSF and therefore has a relevant interest in PSF. PSF is the registered owner of 421,042,093 Ordinary Shares.
Note 6: Auditors’ Remuneration
Audit and review of the financial statements
-
-
Auditors of Jupiter Mines Limited
Auditors of subsidiary entities
Remuneration for audit and review of financial statements
Other Services
-
Taxation and other services
Total other service remuneration
Total Auditors’ Remuneration
JUPITER MINES LIMITED ANNUAL REPORT 2014
Consolidated Group
February 2014
$
June 2013
$ (Restated)
112,438
839
113,277
17,095
17,095
130,372
66,000
8,428
74,428
21,520
21,520
95,948
36
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 7: Dividends
No dividends were declared or paid in the period.
Note 8: Earnings per Share
(a) Reconciliation of earnings to net loss for the period
Net loss
Losses used to calculate basic EPC and dilutive EPS
Consolidated Group
February 2014
$
(5,532,772)
(5,532,772)
June 2013
$ (Restated)
(4,936,332)
(4,936,332)
(b) Weighted average number of ordinary shares outstanding during the
2,272,483,599
2,218,323,270
period used in calculating basic EPS and dilutive EPS
Options are not included in the calculation, and could potentially dilute basic earnings per share in the future should
they be exercised.
There is no dilutive potential for ordinary shares as the exercise of options to ordinary shares would have the effect of
decreasing the loss per ordinary share and would therefore be non-dilutive.
Note 9: Current Assets – Cash
Cash at band and in hand
Short-term bank deposits
The effective interest rate on short-term bank deposits was 3.65%; (2013:
5.38%) the term deposits range between 30 and 90 days.
Reconciliation to the statement of Cashflows
Cash at the end of the financial period as shown in the statement of
Cashflows is reconciled to items in the statement of financial position
as follows:
Cash and cash equivalents
Note 10: Current Assets – Trade and other receivables
CURRENT
GST Receivables
Trade Debtors
Sundry Debtors
228,886
40,895,591
41,124,477
2,397,311
53,365,452
55,762,763
41,124,477
55,762,763
33,405
77,132
97,252
207,789
174,105
5,270
216,810
396,185
- Allowance for impairment loss: The Group’s exposure to bad debts is not significant.
-
Fair value and credit risk: Due to the short term nature of these receivables, their carrying value is assumed to approximate
their fair value.
Foreign exchange risk: Details regarding the foreign exchange and interest rate risk exposure are disclosed in Note 30.
JUPITER MINES LIMITED ANNUAL REPORT 2014
-
37
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 11: Current Assets – Assets Held for Sale
Assets held for sale comprise:
Mineral interests, at fair value:
-
-
Klondyke
Oakover
Total Assets Held for Sale
Consolidated Group
February 2014
$
June 2013
$ (Restated)
393,952
193,131
587,083
651,025
5,179,801
5,830,826
The Board have treated the above areas of interest as held for sale. An impairment was recognised at period end of
which $5,344,880 was expensed.
Note 12: Current Assets – Financial Assets
Available for sale financial assets comprise :
Listed investments, at fair value
-
Shares and options in listed corporations
2,018,385
2,189,721
Available-for-sale financial assets consist of investments in ASX listed companies’ ordinary shares, and therefore have no
fixed maturity date or coupon rate. The fair value of listed available-for-sale investments has been determined directly by
reference to published price quotations in an active market. This resulted in a net loss on revaluation of $171,335 for the
2014 financial period. This loss is made up of $264,272 that has been expensed and a $92,937 gain that has been
taken to the Financial Assets Reserve. For the 2013 financial year there was a net loss of $261,863, being $882,901
that was expensed, and a $621,038 gain that was taken to the Financial Assets Reserve.
Note 13: Controlled Entities
Controlled entities consolidated
Parent Entity:
-
Jupiter Mines Limited
Subsidiaries of Jupiter Mines Limited:
-
-
-
-
Future Resources Australia Limited
Central Yilgarn Pty Limited
Broadgold Pty Limited
Jupiter Kalahari (Mauritius) Limited
Notes
Country of
Incorporation
Percentage Owned (%)*
2014
2013
Australia
Australia
Australia
Australia
Mauritius
(a)
100
100
100
100
100
100
100
100
*Percentage of voting power is in proportion to ownership
Principal Activities:
(a) During the period all Controlled Entities with the exception of Jupiter Kalahari (Mauritius) Limited were dormant.
JUPITER MINES LIMITED ANNUAL REPORT 2014
38
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 14: Non-Current Assets – Property, plant and equipment
PLANT AND EQUIPMENT
Leasehold Improvements
-
-
At cost
Accumulated depreciation
Plant and equipment
-
-
At cost
Accumulated depreciation
Furniture and fittings
At cost
Accumulated depreciation
-
-
-
Net carrying value
Movements in Carrying Amounts
Consolidated Group
February 2014
$
June 2013
$ (Restated)
110,923
(80,151)
30,772
3,941,388
(1,439,511)
2,501,877
195,740
(166,436)
29,304
2,561,953
110,923
(89,231)
21,695
3,941,386
(1,120,918)
2,820,468
198,455
(123,965)
74,490
2,916,653
Movement in the carrying amounts for each class of plant and equipment between the beginning and the end of the
current financial period:
Consolidated Group:
Leasehold
Improvements
$
Plant and
Equipment
$
Furniture and
Fittings
$
Balance at 1 July 2012 (Restated)
79,212
3,099,755
Additions
Disposals
Impairment
-
-
-
94,309
-
-
Depreciation expense
Balance at 30 June 2013 (Restated)
(57,517)
21,695
(426,000)
2,765,464
Additions
Disposals
Impairment
-
-
-
-
-
-
Depreciation expense
Balance at 28 February 2014
9,080
30,772
(285,390)
2,480,074
243,278
22,822
(14,986)
-
(121,622)
129,494
-
(1,614)
-
(76,775)
51,105
Total
$
3,422,245
117,131
(14,986)
-
(607,739)
2,916,653
-
(1,614)
-
(353,085)
2,561,953
39
JUPITER MINES LIMITED ANNUAL REPORT 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 15: Non-Current Assets – Intangible Assets
Computer Software
-
-
At cost
Accumulated amortisation
Net carrying value
Movements in carrying amounts
Balance at 1 July 2012 (Restated)
Additions
Amortisation expense
Balance at 30 June 2013 (Restated)
Additions
Amortisation expense
Balance at 28 February 2014
Consolidated Group
February 2014
$
June 2013
$ (Restated)
301,493
(220,741)
80,752
165,057
7,050
(67,824)
104,283
24,288
(47,819)
80,752
277,205
(172,922)
104,283
Total
$
165,057
7,050
(67,824)
104,283
24,288
(47,819)
80,752
Intangible assets have finite useful lives. The current amortisation charges for intangible assets are included under depreciation
and amortisation expense per the statement of profit or loss and other comprehensive income. All software is amortised over
3 years.
Note 16: Other Assets
CURRENT
Deposits
NON-CURRENT
Loans (a)
1,363,961
1,458,542
51,545,089
48,131,647
(a) These loans have no fixed repayment date. $47,009,821 of loans are interest free, the remaining loans accrue
interest at South African Prime rate.
− Related party receivables: For terms and conditions of related party receivables refer to Note 29.
− Fair value: Details’ regarding fair value is disclosed in Note 30.
− Foreign exchange and interest rate risk: Details’ regarding foreign exchange and interest rate risk exposure is
disclosed in Note 30.
− Credit risk: The maximum exposure to credit risk at the reporting date is the higher of the carrying value of each class
of receivable. No collateral is held as security.
JUPITER MINES LIMITED ANNUAL REPORT 2014
40
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 17: Non-current assets – Exploration and evaluation assets
Consolidated Group
Opening Balance
Provisions reversed
Additions
Impairment
Reclassification of assets held for sale (refer Note 11)
Closing Balance
Costs carried forward in respect of the following areas of interest:
-
-
-
Mount Mason
Mount Ida and Mount Hope
Yunndaga
February 2014
$
57,790,631
-
1,848,721
(24,571)
-
59,614,781
10,755,645
48,819,136
40,000
59,614,781
June 2013
$ (Restated)
50,326,038
(157,000)
15,009,652
(1,557,233)
(5,830,826)
57,790,631
9,749,280
48,001,351
40,000
57,790,631
Capitalised costs amounting to $1,848,721 (2013 Restated: $15,009,652) have been included in cash flows from
investing activities in the statement of cash flows. The Group has written-off exploration carrying costs of $24,571 as
impaired assets during the period ended 28 February 2014 (2013 Restated: $1,557,233) and is separately presented
in the Statement of Profit or Loss and Other Comprehensive Income as impairment of exploration interests.
Note 18: Investments Using the Equity Method
Set out below are the Joint Ventures of the Group as at 28 February 2014, in which in the opinion of the Directors,
are material to the Group. The entities listed below have share capital consisting solely of ordinary shares, which are
held directly by the Group. The country of incorporation or registration is also their principal place of business, and the
proportion of the Group’s ownership interest is the same as the proportion of voting rights held. These entities are held
through a fully controlled entity, Jupiter Kalahari (Mauritius) Limited.
Name of Entity
Tshipi é Ntle Manganese
Mining (Proprietary) Limited
OM Tshipi (S) Pte Ltd
Ownership interest held by the Group
Country of
Incorporation
South Africa
2014
49.9%
2013
49.9%
Nature of
Relationship
Joint Venture
Measurement
Method
Joint Venture
Singapore
33.3%
33.3%
Joint Venture
Joint Venture
Summarised Financial Information
Tshipi é Ntle Manganese Mining (Proprietary) Limited
Opening carrying value of joint venture
Increase of shareholder loan
Share of profit/(loss) using the equity method
OM Tshipi (S) Pte Ltd
Opening carrying value of joint venture
Initial acquisition
Share of profit/(loss) using the equity method
Total investments using the equity method
41
February 2014
$
June 2013
$ (Restated)
311,792,280
580,686
8,237,435
320,610,401
-
26
573,507
573,532
321,183,933
283,137,650
26,725,724
1,928,906
311,792,280
-
-
-
-
311,792,280
JUPITER MINES LIMITED ANNUAL REPORT 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 19: Current liabilities – Trade and other payables
CURRENT
Unsecured liabilities
Trade payables
Sundry payables and accrued expenses
Consolidated Group
February 2014
$
June 2013
$ (Restated)
56,018
199,857
255,875
376,143
448,036
824,179
Fair Value: Due to the short term nature of these payables, their carrying value is assumed to approximate to their fair value.
Note 20: Current and non-current provisions
SHORT-TERM PROVISIONS
Short-term employee entitlements
Note 21: Issued capital
35,647
139,172
Paid up capital:
2,281,835,383 (2013: 2,281,835,383) fully paid ordinary shares 21(a)
526,639, 293
526,639, 293
(a) Ordinary shares
At the beginning of the reporting period
Shares issued/bought back during previous period
At reporting date
526,639,293
-
526,639,293
450,792,571
75,846,722
526,639,293
Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to the
number of shares held.
At the shareholders meetings each ordinary share is entitled to one vote when a poll is called, otherwise each
shareholder has one vote on a show of hands.
The ordinary shares have no par value.
At the beginning of the reporting period
Shares issued/bought back during the previous period
At reporting date
Consolidated Group
February 2014
Number of Shares
2,281,835,383
-
2,281,835,383
June 2013
Number of Shares
1,806,834,044
475,001,339
2,281,835,383
b) Capital Management
Management controls the capital of the Group in order to maintain an appropriate debt to equity ratio, provide the shareholders
with adequate returns and ensure that the Group can fund its operations and continue as a going concern.
The Group’s debt and capital includes ordinary share capital and financial liabilities, supported by financial assets.
There are no externally imposed capital requirements.
Management effectively manages the Group’s capital by assessing the Group’s financial risks and adjusting its capital structure
in response to changes in these risks and in the market. These responses include the management of debt levels, distributions
to shareholders and share issues.
There have been no changes in the strategy adopted by management to control the capital of the Group since the prior year.
JUPITER MINES LIMITED ANNUAL REPORT 2014
42
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 22: Reserves
Options reserve
Financial assets reserve
Consolidated Group
Notes
(a)
(b)
February 2014
$
265,666
713,975
979,641
June 2013
$ (Restated)
410,307
621,038
1,031,345
The option reserve records items recognised as expenses on valuation of key management personnel share options.
(a) Options
At the beginning of the reporting period
Options issued vesting during the period
Options lapsed/cancelled during the period
At reporting date
At the beginning of the reporting period
Number of options converted to ordinary shares during the period
Number of options lapsed/cancelled during the period
At reporting date
410,307
26,338
(170,979)
265,666
2014
Number
3,200,000
-
(2,000,000)
1,200,000
680,516
189,344
(459,553)
410,307
2013
Number
6,700,000
-
(3,500,000)
3,200,000
Directors, employees and consultant share option scheme expenses of $26,338 (June 2013: $189,344) represents the
valuation of options granted. These were valued using the Black-Scholes pricing method. All option expense relates to
option issued in prior periods.
At 28 February 2014, there were 1,200,000 (June 2013: 3,200,000) unissued ordinary shares for which options were
outstanding. These options will expire between 11 April 2014 and 11 April 2016 at exercise prices ranging from $0.70
to $0.90 per option. Refer to Note 27.
(b) Financial Asset Reserve
The financial assets reserve records amounts relating to the revaluation of available for sale financial assets.
Note 23: Capital and Leasing Commitments
Operating Lease Commitments
Non-cancellable operating leases contracted for but not
capitalised in the financial statements
Payable – minimum lease payments
-
-
Not later than 12 months
Between 12 months and 5 years
Consolidated Group
February 2014
$
June 2013
$ (Restated)
847,399
1,142,831
1,990,230
825,435
1,713,900
2,539,335
JUPITER MINES LIMITED ANNUAL REPORT 2014
43
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 23: Capital and Leasing Commitments (continued)
NOTE:
(a) This is made of up two leases: non-cancellable lease of 5 years however it can be subleased (with prior consent
of Lessor). Amounts include rent, outgoings and parking with 4% annual rent review increase. It does not take into
account reduced guarantees or returned deposits or incentives. Figures based on 12 Months (1-Mar-14 to 28-Feb-15)
and between 12 months and 4 years (1-Mar-15 to 30-May-16 which is the end of the lease); non-cancellable lease
of 4 years & 4 months. Amounts include rent and outgoings with 4% annual rent review increase. It does not take
into account reduced guarantees or returned deposits or incentives. Figures based on 12 Months (1-Mar-13 to 28-
Feb-15) and between 12 months and 4 years (1-Mar-15 to 30-May-16 which is the end of the lease). The expense
recognised for the operating lease was $681,809 (June 2013: $865,721).
(b) The property lease is non-cancellable for five-year, with rent payable monthly in advance.
Exploration Expenditure Commitments
In order to maintain current rights of tenure to exploration tenements, the Company and Group are required to perform
minimum exploration work to meet the requirements specified by various State governments. These obligations can
be reduced by selective relinquishment of exploration tenure or application for expenditure exemptions. Due to
the nature of the Company and Group’s operations in exploring and evaluating areas of interest, it is very difficult
to forecast the nature and amount of future expenditure. It is anticipated that expenditure commitments for the
next twelve months will be tenement rentals of $508,109 (June 2013: $481,842) and exploration expenditure of
$1,263,100 (June 2013: $1,299,684).
Note 24: Contingent Liabilities
Contingent Liabilities
The parent entity has provided guarantees to third parties in relation to the performance and obligations of controlled
entities in respect of banking facilities. At reporting date, the value of these guarantees and facilities are $1,280,000
(June 2013: $1,280,000). Total utilised at reporting date was $1,152,337 (June 2013: $1,152,337).
Contingent Assets
No contingent assets exist as 28 February 2014 or 30 June 2013.
Note 25: Segment Reporting
The Group operates in the mining industry within Australia and South Africa.
The Group has identified its operating segments based on the internal reports that are reviewed and used by the chief
operating decision makers (the Board of Directors and key management) in assessing performance and determining the
allocation of resources.
The Group segments are structured primarily on the basis of mineral as Central Yilgarn Iron Project (Iron Ore) located
in Australia, Tshipi (Manganese) which is located in South Africa and Corporate/Unallocated. Expenses and assets
are allocated to segments based on the tenement to which they directly relate. Information is not readily available for
allocating the remaining items of revenue, expenses, assets and liabilities, or these items are not considered part of the
core operations of any segment. Any transactions between reportable segments have been offset for these purposes.
The newly formed joint venture OM Tshipi (S) Pte Ltd has been established to act as a marketing agent for the sale
of output of the Tshipi Manganese. Therefore its performance has been included within the Tshipi Manganese (South
Africa) segment.
JUPITER MINES LIMITED ANNUAL REPORT 2014
44
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 25: Segment Reporting (continued)
Segment Performance
28 February 2014
Revenue
Depreciation and amortisation expense
Finance costs
Director and secretarial costs
Impairment of exploration interests
Impairment of financial assets
Impairment of assets
Insurance costs
Legal and professional costs
Travel and entertaining costs
Occupancy costs
Consultancy fees
Administration expenses
Employee benefits expense
Foreign exchange loss
Share option expense
Other expenses
Share of profit from joint venture entities using the
equity method
CYIP – Iron Ore
(Australia)
$
Tshipi –
Manganese
(South Africa)
$
Corporate &
Unallocated
$
Total
$
-
-
-
-
(24,571)
-
(5,344,879)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,772,840
1,772,840
(115,514)
(115,514)
(14,738)
(14,738)
(206,005)
(206,005)
-
-
(24,571)
-
(264,272)
(5,609,151)
(70,980)
(70,980)
(327,518)
(327,518)
(33,073)
(33,073)
(681,809)
(681,809)
(302,965)
(302,965)
(65,708)
(65,708)
(660,796)
(660,796)
(7,883,791)
(7,883,791)
(26,338)
(93,596)
(26,338)
(93,596)
8,810,941
-
8,810,941
Net loss before tax from continuing operations
(5,369,450)
8,810,941
(8,974,263)
(5,532,772)
30 June 2013 (Restated)
Revenue
Depreciation and amortisation expense
Finance costs
Director and secretarial costs
Impairment of exploration interests
Impairment of financial assets
Impairment of assets
Insurance costs
Legal and professional costs
Travel and entertaining costs
45
CYIP – Iron Ore
(Australia)
$
Tshipi –
Manganese
(South Africa)
$
Corporate &
Unallocated
$
Total
$
-
-
-
-
(1,557,233)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,150,164
4,150,164
(244,839)
(244,839)
(32,923)
(32,923)
(326,578)
(326,578)
-
(1,557,233)
(891,715)
(891,715)
-
-
(119,880)
(119,880)
(271,124)
(271,124)
(127,223)
(127,223)
JUPITER MINES LIMITED ANNUAL REPORT 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 25: Segment Reporting (continued)
Occupancy costs
Consultancy fees
Administration expenses
Employee benefits expense
Foreign exchange loss
Share option expense
Other expenses
Share of profit from joint venture entities using the
equity method
Net loss before tax from continuing operations
(ii) Segment assets and liabilities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,928,906
(890,828)
(47,842)
(328,050)
(1,462,261)
(4,422,686)
(189,344)
(102,876)
-
(890,828)
(47,842)
(328,050)
(1,462,261)
(4,422,686)
(189,344)
(102,876)
1,928,906
(1,557,233)
1,928,906
(5,308,005)
(4,936,332)
CYIP – Iron Ore
(Australia)
$
-
-
-
-
2,300,798
-
-
-
59,614,781
62,502,662
-
-
-
Tshipi –
Manganese
(South Africa)
$
-
-
-
-
-
-
51,545,089
321,183,933
-
372,729,022
-
-
-
Corporate &
Unallocated
$
207,789
1,363,961
2,018,385
261,155
80,752
Total
$
41,124,477 41,124,477
207,789
1,363,961
2,018,385
2,561,953
80,752
51,545,089 51,545,089
- 321,183,933
- 59,614,781
45,056,519 480,288,203
255,875
35,647
291,522
255,875
35,647
291,522
-
-
-
-
2,518,876
-
-
-
57,790,631
66,140,333
-
-
-
-
-
-
-
-
55,762,763 55,762,763
396,185
1,458,542
2,189,721
2,916,653
396,185
1,458,542
2,189,721
397,777
-
48,131,647
311,792,280
-
359,923,927
-
-
-
104,283
104,283
48,131,647 48,131,647
- 311,792,280
- 57,790,631
60,309,271 486,373,531
824,179
139,172
963,351
824,179
139,172
963,351
28 February 2014
Cash and cash equivalents
Trade and other receivables
Other current assets
Financial assets
Property, plant and equipment
Intangible assets
Other non-current assets
Investments using the equity method
Exploration and evaluation assets
Total assets
Trade and other payables
Short term provisions
Total liabilities
30 June 2013 (Restated)
Cash and cash equivalents
Trade and other receivables
Other current assets
Financial assets
Property, plant and equipment
Intangible assets
Other non-current assets
Investments using the equity method
Exploration and evaluation assets
Total assets
Trade and other payables
Short term provisions
Total liabilities
JUPITER MINES LIMITED ANNUAL REPORT 2014
46
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 25: Segment Reporting (continued)
(iii) Segment Cashflows
28 February 2014
Net cash used in operating activities
Net cash used in investing activities
Net cash used in financing activities
CYIP – Iron Ore
(Australia)
$
-
(1,944,956)
Tshipi –
Manganese
(South Africa)
$
Corporate &
Unallocated
$
Total
$
-
-
(1,000,297)
(1,000,297)
-
-
(1,944,956)
(11,727,233)
-
(11,727,233)
Net increase/(decrease) in cash held
(1,944,956)
(11,727,233)
(1,000,297)
(14,672,486)
Cash and cash equivalents at beginning of
financial period
Effects of exchange rates on cash holdings in
foreign currencies
Cash and cash equivalents at end of financial
period
-
-
-
55,762,763 55,762,763
34,200
-
34,200
(1,944,956)
(11,693,033)
54,762,466
41,124,477
30 June 2013 (Restated)
Net cash used in operating activities
-
Net cash used in investing activities
(15,668,852)
-
-
797,349
797,349
-
(15,668,852)
Net cash provided by/(used in) financing activities
-
(52,954,228)
75,846,722 22,892,484
Net increase/(decrease) in cash held
(15,668,852)
(52,954,228)
76,644,071
8,020,991
Cash and cash equivalents at beginning of
financial period
Effects of exchange rates on cash holdings in
foreign currencies
Cash and cash equivalents at end of
financial period
(50,222,607)
-
99,665,075 49,442,468
-
(1,700,696)
-
(1,700,696)
(65,891,459)
(54,654,924)
176,309,146 55,762,763
47
JUPITER MINES LIMITED ANNUAL REPORT 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 26: Cash Flow Information
(a) Reconciliation of Cash Flow from Operations to Loss after
Income Tax
Loss after income tax
Non-cash flows included in loss after tax
Depreciation and amortisation
Share options recognised
Impairment of exploration interests
Impairment of available-for-sale financial assets
Unrealised foreign exchange loss
Share of profit from joint venture entities using equity method
Changes in assets and liabilities, net of the effects of purchase and
disposal of subsidiaries
(Increase)/decrease in other debtors
Increase/(decrease) in trade payables and other creditors
Increase/(decrease) in provisions
Cash outflows from operations
(b) Credit Standby Arrangements with Banks
Credit facility
Unused credit facility
The major facilities are summarised as follows:
Bank credit cards:
Bank credit cards are arranged with Commonwealth Bank
with the general terms and conditions being set and agreed
to annually.
Interest rates are variable and subject to adjustment.
Consolidated Group
February 2014
$
June 2013
$ (Restated)
(5,532,772)
(4,818,792)
115,514
26,338
24,571
5,609,151
7,883,791
(8,810,941)
188,396
(568,304)
(103,525)
(1,167,781)
244,839
189,344
1,557,233
891,715
4,422,686
(1,928,906)
41,411
(793,936)
45,205
(232,023)
-
-
-
-
JUPITER MINES LIMITED ANNUAL REPORT 2014
48
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 27: Share-Based Payments
Each option granted under the Jupiter Mines Limited Employee Option Plan entitles the employee to acquire one ordinary
share of Jupiter Mines Limited (JMS). There are no voting or dividend rights attaching to the options until they are exercised
by the employee, at which point ordinary shares which rank equally with all other JMS shares are issued. The options
cannot be transferred.
All options expire on the earlier of their expiry date or termination of the individual’s employment. Should the Vesting
Conditions (described below) not be met, options will lapse.
The terms and conditions of the grants on issue as at 28 February 2014 are as follows, whereby all options are settled
by physical delivery of shares:
Grant Date
No. of Options
Vesting Date
Vesting Conditions
Expiry Date
Exercise Price
14 March 2012
14 March 2012
14 March 2012
Total
400,000 11 April 2013 Continuation of Service
11 April 2016
400,000 11 April 2014 Continuation of Service
11 April 2016
400,000 11 April 2015 Continuation of Service
11 April 2016
$0.70
$0.80
$0.90
1,200,000
Consolidated Group
2014
2013
Number of
Options
Weighted
Average
Exercise Price
Number of
Options
Weighted
Average
Exercise Price
Outstanding at the beginning of the period
3,200,000
0.56
6,700,000
Granted
Forfeited
Cancelled
Exercised
Expired
Outstanding at the end of the period
Exercisable at the end of the period
-
-
-
-
-
-
(1,500,000)
0.71
(1,000,000)
-
(500,000)
1,200,000
1,200,000
-
0.71
0.71
0.71
-
(2,500,000)
3,200,000
3,200,000
0.56
-
0.25
-
0.25
0.56
0.56
The options outstanding at 28 February 2014 have an exercise price of $0.71 and a weighted average contractual life
of 2.55 years.
During the financial period, nil options were exercised (June 2013: 1,620,000).
The fair value of services received in return for options granted is measured by reference to the fair value of options granted.
The estimate of the fair value of the services received is measured based on the Black Scholes option-pricing model. The
contractual life of the options is used as an input into the model. Expectations of early exercise are incorporated into the
model as well.
49
JUPITER MINES LIMITED ANNUAL REPORT 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 27: Share-Based Payments (continued)
Tranche
Expiry
Date
1
2
3
11 April
2016
11 April
2016
11 April
2016
Fair
Value
per
Option
$
Exercise
Price
$
Price of
Shares
on Grant
$
Estimated
Volatility
Risk
Free
Interest
0.162
0.70
0.26
106.69
6.3%
0.156
0.80
0.26
106.69
6.3%
0.152
0.90
0.26
106.69
6.3%
Dividend
Yield
Grant
Date
Vesting
Period
-
-
-
21
December
2011
21
December
2011
21
December
2011
11 April
2013
11 April
2014
11 April
2015
In total, $26,338 (June 2013: $189,344) of employee remuneration expense (all of which related to equity-settled share-
based payment transactions) has been included in the profit and loss for 2014 and credited to share option reserve.
The expected volatility is based on the historic volatility of the Company (calculated on the weighted average remaining
life of the share options), adjusted for any expected changes to volatility due to publicly available information.
Risk-free interest rates are based on 5 year government bonds.
Options will only convert to ordinary shares upon the achievement of a service condition.
Note 28: Events After the Reporting Date
In October 2013, the Jupiter Mines Limited applied to the Australian Securities Exchange (ASX) for the removal of the
Company from the official list. The Company was de-listed from the Australian Securities Exchange on 10 January 2014,
after approval was given by shareholders at the Company’s AGM in November 2013.
The Company also applied to the Australian Securities and Investments Commission (“ASIC”) to change its financial
year end from 30 June to 28 February. The change will allow alignment for the Company to align with the year end of
the Tshipi Joint Venture, Jupiter’s primary project. The Tshipi Joint Venture accounts for a significant portion of the Group’s
financial results and operations. The request of change of year end has been approved by ASIC subsequent to the year
end. Accordingly, the first financial period is for the eight months to 28 February 2014, and subsequent period will end
on 28 February each year.
JUPITER MINES LIMITED ANNUAL REPORT 2014
50
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 29: Related Party Transactions
Transactions between related parties are on normal commercial terms and conditions no more favourable than those
available to other parties unless otherwise stated.
Transactions with related parties:
(a) Key Management Personnel
Consulting fees paid to Andrew Bell Consultants, a company in which
Mr A Bell has a beneficial interest.
Consulting fees paid to Mr P Murray
Expenses reimbursed to Pallinghurst Advisors LLP, a company in which
Mr B Gilbertson and Mr P Thapliyal have a beneficial interest.
Expenses reimbursed to Red Rock Resources Plc, a company in which
Mr A Bell has a beneficial interest.
Expenses reimbursed to Mr P Thapliyal.
Loan from Tshipi
Note 30: Financial Instruments
Consolidated Group
February 2014
$
June 2013
$ (Restated)
36,667
55,000
36,667
325,505
55,000
131,753
-
43,567
70,590
51,545,089
-
48,131,647
The Group’s financial instruments consist mainly of deposits with banks, short-term investments, accounts receivable
and payable.
The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting
policies to these financial statements, are as follows:
Financial Assets
Cash and cash equivalents
Trade and other receivables
Available-for-sale financial assets
Other non-current assets
Financial Liabilities
Trade and other payables
Financial Risk Management Policies
41,124,477
207,789
587,083
51,545,089
93,464,438
55,762,763
396,185
5,830,826
48,131,647
110,121,421
255,875
824,179
The Directors monitor the Group’s financial risk management policies and exposures and approves financial transactions.
The Directors’ overall risk management strategy seeks to assist the Group in meeting its financial targets, while minimising
potential adverse effects on financial performance. Its functions include the review of credit risk policies and future cash
flow requirements.
Specific Financial Risk Exposures and Management
The main risks the Group is exposed to through its financial instruments are credit risk, liquidity risk and market risk
consisting of interest rate risk, liquidity risk and equity price risk.
51
JUPITER MINES LIMITED ANNUAL REPORT 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 30: Financial Instruments (continued)
(a) Credit Risk
Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract
obligations that could lead to a financial loss to the Group.
Credit risk is managed through the maintenance of procedures (such procedures include the utilisation of systems for
the approval, granting and renewal of credit limits, regular monitoring of exposures against such limits and monitoring
of the financial stability of significant customers and counterparties), ensuring to the extent possible, that customers
and counterparties to transactions are of sound credit worthiness. Such monitoring is used in assessing receivables
for impairment.
Risk is also minimised through investing surplus funds in financial institutions that maintain a high credit rating, or in entities
that the Directors have otherwise cleared as being financially sound.
Credit Risk Exposures
The maximum exposure to credit risk by class of recognised financial assets at reporting date, excluding the value of any
collateral or other security held, is equivalent to the carrying value and classification of those financial assets (net of any
provisions) as presented in the statement of financial position. Credit risk also arises through the provision of financial guarantees,
as approved at Board level, given to parties securing the liabilities of certain subsidiaries (refer Note 24 for details).
Trade and other receivables that are neither past due or impaired are considered to be of high credit quality. Aggregates
of such amounts are as detailed in Note 10.
There are no amounts of collateral held as security in respect of trade and other receivables.
The Group does not have any material credit risk exposure to any single receivable or group of receivables under financial
instruments entered into by the Consolidated Group.
Credit risk related to balances with banks and other financial institutions is managed by investing cash with major financial
institutions in both cash on deposit and term deposit accounts. Interest rates on major deposits that are re-invested, are at
a fixed rate on a monthly basis.
(b) Liquidity risk
Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise meeting its
obligations related to financial liabilities. The Group manages this risk through the following mechanisms:
− preparing forward looking cash flow analysis in relation to its operational, investing and financing activities;
− monitoring undrawn credit facilities;
− obtaining funding from a variety of sources;
− maintaining a reputable credit profile;
− managing credit risk related to financial assets;
− only investing surplus cash with major financial institutions; and comparing the maturity profile of financial liabilities with
the realisation profile of financial assets.
The Group has no significant exposure to liquidity risk due to the level of cash and cash equivalents detailed at Note 9.
The Group manages liquidity risk by monitoring immediate and forecast cash requirements and ensuring adequate cash
reserves are maintained.
JUPITER MINES LIMITED ANNUAL REPORT 2014
52
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 30: Financial Instruments (continued)
The tables below reflect an undiscounted contractual maturity analysis for financial liabilities. Cash flows realised from financial
assets reflect management’s expectation as to the timing of realisation. Actual timing may therefore differ from that disclosed. The
timing of cash flows presented in the table to settle financial liabilities reflects the earliest contractual settlement dates.
Within 1 Year
1 to 5 Years
Over 5 Years
Total
2014
$
2013
$ (Restated)
2014
$
2013
$ (Restated)
2014
$
2013
$ (Restated)
2014
$
2013
$ (Restated)
Consolidated Group
Financial liabilities due
for payment
Trade and other
payables
255,875
824,179
Total expected outflows
255,875
824,179
Financial assets – cash
flows realisable
Cash and cash
equivalents
Trade and other
receivables
Assets held or available
for sale
Other non-current assets
Total anticipated inflows
Net (outflow)/
inflow on financial
instruments
c)
Market Risk
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
255,875
824,179
255,875
824,179
41,124,477
55,762,763
207,789
396,185
2,018,385
2,189,721
- 51,545,089
48,131,647
- 94,895,740 106,480,316
94,639,865 105,656,137
41,124,477 55,762,763
207,789
396,185
2,018,385
2,189,721
-
- 51,545,089 48,131,647
43,521,987 58,348,669 51,545,089 48,131,647
43,266,112 57,524,490 51,545,089 48,131,647
Market risk arises from the Groups use of interest bearing and foreign currency financial instruments. It is the risk that the fair
value of future cash flows of a of a financial instrument will fluctuate because of changes in interest rates (interest rate risk),
foreign exchange (currency risk) or other market factors (other price risk).
(i) Interest rate risk
Exposure to interest rate risk arises on financial assets and financial liabilities recognised at the end of the
reporting period whereby a future change in interest rates will affect future cash flows or the fair value
of fixed rate financial instruments. The financial assets and financial liabilities with exposure to interest
rate risk are detailed below:
Financial Assets
Cash and cash equivalents
Other Non-Current Assets
Financial Liabilities
Short Term Borrowings
Long Term Borrowings
The Group is also exposed to earnings volatility on floating rate instruments
Consolidated Group
February 2014
$
41,124,477
51,545,089
92,669,566
-
-
June 2013
$ (Restated)
55,762,763
48,131,647
103,894,410
-
-
JUPITER MINES LIMITED ANNUAL REPORT 2014
53
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 30: Financial Instruments (continued)
(ii) Foreign exchange risk
Jupiter operates internationally and is exposed to foreign exchange risk arising from various currency
exposures primarily with respect to the Australian Dollar and South African Rand. Jupiter’s exposure to
currency risk is on cash, trade receivables, and borrowings. Foreign currency risk is the risk of exposure to
transactions that are denominated in a currency other than the Australian dollar. The carrying amounts of
the Group’s financial assets and liabilities are denominated in two different currencies as set out below:
Financial Assets
(iii) Other Price Risk
28 February 2014
$
40,856,192
ZAR
268,285
Total $
41,124,477
Price risk relates to the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market prices largely due to demand and supply factors for commodities. As the
Group does not derive revenue from sale of products, the effect on profit and equity as a result of changes
in the price risk is not considered material. The fair value of the mining projects will be impacted by
commodity price changes (predominantly iron ore, nickel and uranium) and could impact future revenues
once operational. However, management monitors current and projected commodity prices.
(iv) Summarised sensitivity analysis
The following table summarises the sensitivity of the Jupiter Group’s financial assets and financial liabilities
to interest rate risk and foreign exchange risk.
Management have reviewed interest rate and foreign exchange risk and determined the rates applied to
be appropriate.
Interest Rate Risk
Foreign Exchange Risk
Carrying
Amount $
-50 bps
Profit $
+50 bps
Other
Equity $
Profit $
Other
Equity $
-10%
Profit $
+10%
Other
Equity $
Profit $
Other
Equity $
41,124,477
(20,562)
207,789
2,018,385
-
-
51,545,089
(26,156)
255,875
-
-
-
-
-
-
20,562
-
-
26,156
-
-
(46,718)
-
46,718
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
28 February
2014
Financial Assets
Cash and cash
equivalents
Receivables
Available-for-sale
financial assets
Other Non-
Current Assets
Financial
Liabilities
Trade and other
payables
Total
increase/
(decrease)
JUPITER MINES LIMITED ANNUAL REPORT 2014
54
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 30: Financial Instruments (continued)
(v) Fixed Interest Rate Maturing
WAEIR
Floating Interest
Rate
Within Year
1 to 5 Years
Over 5 Years
Non-Interest Bearing
Total
2014
%
2013
%
2014 $
2013 $
(Restated)
2014 $
2013 $
(Restated)
2014
$
2013 $
(Restated)
2014
$
2013 $
(Restated)
2014 $
2013 $
(Restated)
2014 $
Financial
Assets:
Cash and
deposits
Receivables
Other
Financial
Assets
3.65 3.98 497,501 4,154,839 40,626,976 51,607,924
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Other Non-
Current Assets
9.3
9.3
Total
Financial
Assets
Financial
Liabilities:
Trade and
sundry
payables
Total
Financial
Liabilities
-
- 497,501 4,154,839 40,626,976 51,607,924
16
16
-
-
-
-
-
-
-
-
-
-
WAEIR = Weighted Average Effective Interest Rate
(d) Net Fair Value
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 41,124,477
207,789
396,185
207,789
2,018,385
2,189,721
2,018,385
- 51,545,089 48,131,647 51,545,089
- 53,771,263 50,717,553 94,895,740
-
-
255,875
824,179
255,875
255,875
824,179
255,875
The net fair values of cash and cash equivalents and non-interest bearing monetary financial assets and liabilities
approximates their carrying value. The net fair value of financial assets and financial liabilities is based upon market
prices where a market exists or by discounting the expected future cash flows by the current interest rates for assets and
liabilities with similar risk profiles.
Listed equity investments have been valued by reference to market prices prevailing at reporting date.
Financial Assets
Cash at bank (i)
Trade and other receivables (i)
Assets available for sale (ii)
Other Non-Current Assets
Financial Liabilities
Trade and other payables (i)
February 2014
June 2013 (Restated)
Carrying Amount
$
Net Fair Value
$
Carrying Amount
$
Net Fair Value
$
41,124,477
207,789
2,018,385
51,545,089
94,895,740
41,124,477
207,789
2,018,385
51,545,089
94,895,740
55,762,763
396,185
2,189,721
48,131,647
106,480,316
55,762,763
396,185
2,189,721
48,131,647
106,480,316
255,875
255,875
824,179
824,179
55
JUPITER MINES LIMITED ANNUAL REPORT 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 30: Financial Instruments (continued)
The fair values in the above table have been determined based on the following methodology:
(i) Cash and cash equivalents, trade and other receivables and trade and other payables are short-term
investments in nature whose carrying value is equivalent to fair value. Trade and other payables exclude
amounts provided for annual leave which is not considered a financial instrument.
(ii) For listed available-for-sale financial assets, closing quoted bid prices at the end of the reporting period are
used. Unlisted available-for-sale financial assets are recorded at cost.
Financial Instruments Measured at Fair Value
The financial instruments recognised at fair value in the statement of financial position have been analysed and classified
using a fair value hierarchy reflecting the significance of the inputs used in making the measurements. The fair value
hierarchy consists of the following levels:
− quoted prices in active markets for identical assets or liabilities (Level 1);
− 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) (Level 2); and
− inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).
Group – as at 28 February 2014
Level 1 $
Level 2 $
Level 3 $
Total $
Financial Assets
Assets available for sale
2,018,385
-
-
2,018,385
Included in Level 1 of the hierarchy are listed investments. The fair values of these financial assets have been based on
the closing quoted bid prices at reporting date, excluding transaction costs.
JUPITER MINES LIMITED ANNUAL REPORT 2014
56
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 28 FEBRUARY 2014
Note 31: Parent Company Information
ASSETS
Current Assets
Non-Current Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed Equity
Option Premium Reserve
Financial Asset Reserve
Accumulated Losses
TOTAL EQUITY
FINANCIAL PERFORMANCE
Profit/(loss) for the period
Other comprehensive income
TOTAL COMPREHENSIVE PROFIT/LOSS
Contractual Commitments
Consolidated Group
February 2014
$
June 2013
$ (Restated)
42,257,184
466,994,168
509,251,352
55,908,474
452,573,258
508,481,732
315,719
-
315,719
508,936,633
627,728
-
627,728
507,854,004
526,639,293
526,639,293
265,666
713,973
(18,683,298)
508,935,633
962,355
92,937
1,055,303
410,307
621,038
(19,816,634)
507,854,004
(7,911,501)
621,038
(7,290,463)
As at 28 February 2014 the parent company had exploration contractual commitments of $1,263,100 refer to Note 23.
Contingent Liability
Refer to Note 24.
Note 32: Company Details
The registered office and principle place of business of Jupiter is:
Jupiter Mines Limited
Level 42
108 St Georges Terrace
Perth WA 6000
57
JUPITER MINES LIMITED ANNUAL REPORT 2014
DIRECTORS’ DECLARATION
The Directors of Jupiter Mines Limited declare that:
1.
the financial statements, notes and the additional disclosures included in the Directors Report designated as
audited, of the consolidated entity are in accordance with the Corporations Act 2001 including:
(a) complying with Accounting Standards (including the Australian Accounting Interpretations) and the Corporations
Regulations 2001; and
(b) give a true and fair view of the financial position as at 28 February 2014 and of the performance for the period
ended on that date of the company and consolidated entity;
The financial statements and notes also comply with International Financial Reporting Standards as disclosed in
Note 1.
There are reasonable grounds to believe that Jupiter Mines Limited will be able to pay its debts as and when they
become due and payable.
This declaration has been made after receiving the declarations required to be made to the Directors in accordance
with section 295A of the Corporations Act 2001 for the financial period ended 28 February 2014.
2.
3.
4.
Signed on behalf of the Board of Directors
Brian Gilbertson
Perth
30 May 2014
JUPITER MINES LIMITED ANNUAL REPORT 2014
58
INDEPENDENT AUDIT REPORT
59
JUPITER MINES LIMITED ANNUAL REPORT 2014
INDEPENDENT AUDIT REPORT (CONTINUED)
JUPITER MINES LIMITED ANNUAL REPORT 2014
60
61
JUPITER MINES LIMITED ANNUAL REPORT 2014