ASX Code: KIN
Kin Mining NL
ABN 30 150 597 541
Annual Report
30 June 2015
CONTENTS
Corporate Information
Directors’ Report
Corporate Governance Statement
Auditor’s Independence Declaration
Statement of Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Additional Securities Exchange Information
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Kin Mining NL
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-3-
Kin Mining NL
CORPORATE INFORMATION
ABN 30 150 597 541
Directors
Terrence Ronald Grammer
Trevor John Dixon
Marvyn (Fritz) John Fitton
Giuseppe (Joe) Paolo Graziano
Company secretary
Giuseppe (Joe) Paolo Graziano
Registered office
First Floor
342 Scarborough Beach Road
OSBORNE PARK WA 6017
Principal place of business
First Floor
342 Scarborough Beach Road
OSBORNE PARK WA 6017
Tel: (08) 9242 2227
Share register
Advanced Share Registry Services
PO Box 1156
NEDLANDS WA 6909
Tel: (08) 9389 8033
Solicitors
Thompson Downey Cooper
Level 15/251 Adelaide Terrace
PERTH WA 6000
Auditors
HLB Mann Judd
Level 4, 130 Stirling Street
Perth WA 6000
Securities Exchange Listing
Kin Mining NL shares are listed on the Australian Securities
Exchange (ASX: KIN)
DIRECTORS’ REPORT
-4-
Kin Mining NL
The directors of Kin Mining NL (“Kin” or “the Company”) submit herewith the consolidated annual financial report consisting
of the company and its wholly owned subsidiary, namely Navigator Mining Pty Ltd, (together the “Group”) for the financial
year ended 30 June 2015. In order to comply with the provisions of the Corporations Act, the directors report as follows:
Directors
The names of the directors in office at any time during or since the end of the year are as follows. Directors were in office
for the entire period unless otherwise stated.
o Terrence Ronald Grammer
o Trevor John Dixon
o Marvyn (Fritz) John Fitton
o Giuseppe (Joe) Paolo Graziano
Terrence Ronald Grammer, Non-Executive Chairman
Mr Grammer is a geologist with over 35 years’ experience in mining and mineral exploration with extensive experience in
Australia, Africa, east Asia & New Zealand. He has been based in Western Australia since 1988 and has extensive
professional experience in the exploration of gold, base metals and some industrial minerals. He was a founder and promoter
of the successful nickel miner Western Areas NL in 1999, and was the exploration manager of the company from 2000 until
retiring in 2004.
Special Responsibilities:
- Nil
Directorships held in other Australian listed companies in the past 3 years:
- South Boulder Mines Ltd – Non-Executive Chairman until 15 July 2013
- Sirius Resources NL – Non-Executive Director since June 2010 until 21 September 2015
- Stratum Metals Ltd – Non-Executive Director until 4 February 2014
- Great Western Exploration Ltd – Non-Executive Director since July 2014
Mr Trevor John Dixon, Managing Director
Mr Dixon is a businessman with over 25 years’ experience within the mining and exploration industry as an earthmoving
contractor to the industry and as a private individual identifying prospective mineral areas and subsequently acquiring project
areas of interest. He has been a founding vendor to a number of companies including Xstrata Plc (formerly Jubilee Mines
NL), Terrain Minerals Ltd and Regal Resources Ltd.
Special Responsibilities:
- Nil
Directorships held in other Australian listed companies in the past 3 years:
- Nil
Marvyn (Fritz) John Fitton, Non-Executive Director
Between 1969 and 1987, Mr Fitton worked as senior geologist for several international mining corporations, and was involved
in several world class mineral discoveries. In 1987, Mr Fitton founded a Geological & Mining consulting firm Maprock Pty Ltd
based in Perth WA. Since its formation, Maprock has been responsible for the preparation of numerous independent
geological reports for inclusion in prospectuses for successful initial public offerings such as Xstrata Plc (formerly Jubilee
Mines NL), Berkeley Resources Ltd, Trafford Resources Ltd, Athena Resources Ltd and Scotgold Resources Ltd.
Special Responsibilities:
- Nil
Directorships held in other Australian listed companies in the past 3 years:
- Nil
Kin Mining NL
DIRECTORS’ REPORT (continued)
-5-
Giuseppe (Joe) Paolo Graziano, Non-Executive Director/Company Secretary
Mr Graziano is a Chartered Accountant with corporate and company secretarial experience. He has experience in capital
raisings, ASX compliance and regulatory requirements. Mr Graziano has had 24 years’ experience in business, financial and
taxation advice to listed and unlisted companies in many industries including mining, resources, banking and finance.
Special Responsibilities:
- Nil
Directorships held in other Australian listed companies in the past 3 years:
- Oz Brewing Ltd – Non-Executive Director since 15 April 2011
- Lithex Resources Ltd – Non-Executive Director since 5 December 2013
- Antares Mining Ltd – Non-Executive Director Appointed 12 August 2015 and ceased 10 September 2015
- Castillo Copper Ltd – Non-Executive Director Appointed 13 August 2015
Interests in the shares and options of the Company.
The following relevant interests in shares and options of the Company were held by the directors as at the date of this report:
Directors
T Grammer
T Dixon
M Fitton
G Graziano
Fully paid ordinary shares
Number
346,113
8,993,001
1,774,000
7,001,668
Share options
Number
100,000
550,000
325,000
500,000
Principal Activities
The principal activity of the Group during the year was gold and base metals exploration.
Review of operations
The Company progressed its exploration program in a difficult environment for explorers focusing on the Desdemona project
area. Furthermore, in early November 2014, the company completed the transaction to acquire the Leonora Gold Project
from the Deed Administrator of Navigator Resources Limited (subject to deed of company arrangement) (“Navigator”).
Leonora Gold Project
The project is strategically located in the north-east Goldfields, approximately 35km north-east of Leonora and 700km north-
east of Perth, and includes a number of historical gold mines in close proximity to Kin’s existing assets. Together these mines
boast total historical production of over 316,000oz at an exceptional head grade of 4.92g/t gold.
Navigator completed a pre-feasibility study for the Leonora Gold Project in 2009 based on 97% of the total mineral resource,
which demonstrated a robust project with considerable upside. In addition, Navigator also completed a successful trial mining
campaign at the Bruno and Mertondale 2 pits, which underpinned substantial planning and development work.
Pit optimisation studies have been completed for each of the key deposits, metallurgical test work has also been completed
with recoveries of +95%, and potential high grade starter pits were defined to help secure project finance and reduce the
capital payback period.
Based on the strength of the work already completed, Kin is targeting a near term production opportunity from the Lewis
prospect within the Cardinia project area.
The Company has undertaken its own preliminary independent Metallurgical testing on the Lewis Trial Pit to ensure the
recoveries were in accordance with previous testing completed. The results were on par or better than previous tests with
55.4% recoveries on the high grade composite and 78.1% recoveries from the low grade composite after a 48hr leach
recovery process.
Kin Mining NL
DIRECTORS’ REPORT (continued)
-6-
On 25 February 2015, the Company signed a binding term sheet with a sophisticated investor to provide $1,000,000 in funding
via equity and convertible note to assist with the early stage production at the Lewis prospect within the Cardinia Project Area.
Of this funding, at balance date $100,000 in equity had been received (833,333 ordinary shares issued).
Subsequent to the end of the financial year the Company received mining approval for the Lewis prospect from the
Department of Mines and Petroleum and signed a Memorandum of Understanding with Australian Mining & Civil Pty Ltd to
provide open cut mining and civil earthmoving activities at Lewis as well as inject up to $500,000 in equity in the Company to
secure the work as identified by the Company. Full details are contained in Note 24 to the financial report.
New geophysical anomalies were identified from the interpretation of IP surveys at Kurrajong and Perseverance within the
greater Mertondale project area. The Company has also identified an exploration target of 1 to 1.2m ounces at grades ranging
between 1.6 – 2.5 g/t Au within the Leonora Gold Project at Mertondale subsequent to year end. Nine highly ranked targets
have been identified and are undergoing prioritisation for further drilling. Furthermore, the Company had a positive outcome
from the resource audit at the Leonora Gold Project with a combined 2012 JORC compliant total resource of 11.825 Mt @
1.9 g/t Au for 722,300oz Au.
Regional Exploration Activity
Desdemona
24km exposure to the Gwalia Shear Zone which hosts 13Moz of gold along 35km of strike to north. Kin Mining has
acquired strategic tenements at Gwalia South;
The tenement boundary is only 2.5kms south along strike from the 7Moz Sons of Gwalia Mine;
Magmatic Nickel-Copper-PGE target identified at Kingfisher Prospect – Geophysical MLEM survey was conducted
to test for possible conductors beneath the known mineralisation. Historic drill intercepts include:
o
o
o
0.9m @ 2.0% Ni and 1.5% Cu from 101.2m in HWDD2;
1.8m @ 1.55g/t Pt and 6.51g/t Pd in HWDD2;
0.3m @ 1.33% Ni and 0.25% Cu from 111.9m in HWDD3;
Two Bedrock electromagnetic conductors (EM) were identified at Kingfisher; and
RC Drilling was undertaken at Kingfisher in October 2014 to test the conductors. The results of the drilling were
encouraging and management continues to assess the geological structures to further embark on a more focused
drilling campaign in the near future.
Murrin Murrin
Previous RC drilling by Kin at the Eastern Gabbro Prospect returned significant results during the drilling campaign
as follows:
o
31m @ 4.29g/t Au (64-95m) incl. 5m @ 17.20g/t Au (87-92m) incl. 2m @ 34.23g/t Au (+1oz Au) (87-89m)
in MM13RC013;
8m @ 3.52g/t Au from 28m (supergene zone) incl. 2m @ 12.94g/t Au from 29m in MM13RC17;
o
Historic drilling by Ashton Mining at the Eastern Gabbro Prospect in the early 1990’s returned best results of:
o
o
o
9m @ 3.95g/t Au from 25m;
10m @ 2.34g/t Au from 35m;
6m @ 3.42g/t Au from 34m;
Further exploration work to be performed in defining the geological structures of this prospect.
Iron King
Several high grade historic gold mines represent immediate walk up drill targets. Previous sampling of the Mullock
dumps at the Reeds United workings returned up to 25.73g/t Au;
Crystal Ridge Prospect presents a walk up drill target:
o Best Historic drill intercept of 46m @ 1.83g/t Au;
Twelve gold and base metals prospects delineated within the project area.
Kin Mining NL
DIRECTORS’ REPORT (continued)
Recastle
-7-
Eight groups of historic hard rock workings including Bellbird, which returned a recent rock chip sample of 5.29g/t
Au and 0.62% Cu;
Numerous metal detecting patched have produced some significant alluvial gold nuggets;
Best Historic drill intercept of 2m @ 15.3g/t Au from 20m.
Mt Flora and Randwick
Greenfields projects located close to Murrin Murrin with gold and base metal potential;
Recent rock chip sampling at Mt Flora returned up to 115.98g/t Au, 50g/t Ag and 0.68% Pb. Approval for
reconnaissance drilling has been received from the Department of Mines and Petroleum.
Operating results for the year
The net loss for the year after providing for income tax amounted to $1,148,561 (2014: $615,749).
Review of financial conditions
Risk management
The Directors identify and manage risk and consider the business of mineral exploration, by its nature, contains elements of
risk, with no guarantees of success.
The success of these activities is, amongst other things, dependent upon:
The discovery and/or acquisition of economically recoverable reserves;
Access to adequate capital;
Securing and maintaining title to interests;
Obtaining consents and approvals to undertake exploration and associated activities; and
Access to appropriately qualified and experienced operational management, contractors and other personnel.
Significant changes in the state of affairs
Significant changes in the state of affairs of the Group during the financial year were as follows:
The Company finalised the acquisition of the Leonora Gold Project from the Administrator of Navigator Resources Ltd (Subject
to Deed of Company Arrangement) on 3 November 2014. Furthermore, subsequent to the end of the financial year, the
Company received a positive outcome from the resource audit at the Leonora Gold Project with a combined 2012 JORC
compliant total resource of 11.825 Mt @ 1.9 g/t Au for 722,300oz Au.
Significant events after balance date
On 3 August 2015, the Company announced that it has received mining approval from the Department of Mines and Petroleum
(DMP) to carry out mining activities on Mining Leases M37/86, M37/227, M37/277, M37/300 and M37/428, which include a
mine closure plan at Lewis. The Mining Proposal has been assessed by the Departments of Water, Aboriginal Affairs,
Environmental Regulation and amendments to the schedule of conditions attached to the Mining Leases have been
established by the DMP.
The Company also announced on 3 August 2015 that Kin and Advanced Mining & Civil Pty Ltd (“AMC”) have entered into a
Memorandum of Understanding (“MOU”) to provide open cut mining and civil earthmoving activities at Lewis and the Leonora
Gold Project under certain Terms & Conditions, including:
That AMC commits to invest $500,000 in Kin Mining NL via a staged placement of shares;
Kin commits to provide AMC with up to $2 million of open cut mining and civil earthmoving activities in accordance
with AMC’s schedule of rates and Load and Haul tender provided to the company, subject to Kin receiving all
regulatory approvals and completing all resource modelling to its satisfaction;
Kin provides all fuel for the mining operation at Lewis; and
Kin provides a first right of refusal to AMC over any open cut mining and civil earthmoving activities at its Leonora
Gold Project during the next 24 months.
Kin Mining NL
DIRECTORS’ REPORT (continued)
-8-
Furthermore, the Company announced that the $1 million loan provided by Mr Fritz Fitton, the company’s Technical Director,
to assist with the acquisition of the Leonora Gold Project in October 2014 would be extended for a further 12 month term
commencing on 24 October 2015 on the same terms and interest rate as previously announced.
On 18 September 2015, the Company raised $189,000 under the Share Purchase Plan (“SPP”), which together with a
placement of $258,600 on 17 August 2015 and a placement prior to balance date of $396,609 brought the total funds raised
from the SPP and Placements to approximately $844,200 (before costs). The Placement and SPP were completed at $0.10
per share with a one for two attaching unlisted option exercisable at $0.20 expiring on 31 August 2017.
On 8 September 2015, 2,950,000 shares at $0.10c and 1,475,000 unlisted options expiring on 31 August 2017 (exercisable
at $0.20c) were issued to the Directors in lieu of outstanding loans and fees.
Likely developments and expected results
Disclosure of information regarding likely developments in the operations of the Group in future financial years and the
expected results of those operations is likely to result in unreasonable prejudice to the Group. Therefore, this information has
not been presented in this report.
Environmental legislation
The Group is not subject to any significant environmental legislation.
Dividends
No dividends have been paid or declared since the start of the financial year and the directors do not recommend the payment
of a dividend in respect of the financial year.
Indemnification and insurance of Directors and Officers
The Company has agreed to indemnify all the directors of the Company for any liabilities to another person (other than the
Company or related body corporate) that may arise from their position as directors of the Company and its controlled entities,
except where the liability arises out of conduct involving a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract insuring the directors and officers of the
Company and its controlled entities against any liability incurred in the course of their duties to the extent permitted by the
Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the
premium.
Remuneration report (audited)
This report, which forms part of the directors’ report, outlines the remuneration arrangements in place for the key management
personnel (“KMP”) of Kin Mining NL for the financial year ended 30 June 2015. The information provided in this remuneration
report has been audited as required by Section 308(3C) of the Corporations Act 2001.
The remuneration report details the remuneration arrangements for KMP who are defined as those persons having authority
and responsibility for planning, directing and controlling the major activities of the Company, directly or indirectly, including
any director (whether executive or otherwise) of the Company.
Key Management Personnel
The KMP of the Group during or since the end of the financial year were the directors of the Company as follows:
Directors:
T Grammer
T Dixon
M Fitton
G Graziano
Chairman (non-executive)
Managing Director
Non-executive Director
Non-executive Director/Company Secretary
Except as noted, the named persons held their current positions for the whole of the financial year.
Remuneration philosophy
The performance of the Group depends upon the quality of the directors and executives. The philosophy of the Group in
determining remuneration levels is to:
set competitive remuneration packages to attract and retain high calibre employees;
link executive rewards to shareholder value creation; and
establish appropriate, demanding performance hurdles for variable executive remuneration.
DIRECTORS’ REPORT (continued)
-9-
Kin Mining NL
Remuneration report (continued)
Remuneration governance
The Company has not formed a remuneration committee. The role of a remuneration committee is instead carried out by the
full Board in accordance with the Nomination and Remuneration Committee charter.
Non-executive director remuneration
The Board seeks to set aggregate remuneration at a level that provides the Company with the ability to attract and retain
directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders.
The amount of aggregate remuneration sought to be approved by shareholders and the manner in which it is apportioned
amongst directors is reviewed annually. The Board considers advice from external shareholders as well as the fees paid to
non-executive directors of comparable companies when undertaking the annual review process.
Each director receives a fee for being a director of the Company. An additional fee is also paid for each Board committee on
which a director sits. The payment of additional fees for serving on a committee recognises the additional time commitment
required by directors who serve on one or more sub committees.
Fixed Remuneration
Fixed remuneration is reviewed annually by the Remuneration Committee. The process consists of a review of relevant
comparative remuneration in the market and internally and, where appropriate, external advice on policies and practices. The
Committee has access to external, independent advice where necessary.
Employment Contracts
Details of employment contracts currently in place with respect to directors’ employment with the company are as follows:
Trevor Dixon, Managing Director
Term of employment agreement is unlimited from the date Kin Mining NL is listed on the official list of ASX Limited,
unless otherwise terminated in accordance with the agreement.
Annual salary of $120,000 plus statutory superannuation and director’s fees of $36,000 per annum.
The Company may terminate the agreement without cause by providing the Director with ninety days’ notice, while
the Director may terminate the agreement without cause by providing the Company with sixty days’ notice.
Marvyn (Fritz) Fitton, Non- Executive Director
Director’s fees of $36,000 per annum.
Term of consultancy agreement is unlimited from the date Kin Mining NL is listed on the official list of ASX Limited,
unless otherwise terminated in accordance with the agreement.
Daily rate of $750 excluding GST plus a reasonable vehicle allowance.
Either party may terminate the agreement without cause by providing the other party with one months’ notice in
writing. Upon termination of this agreement by either party, the Consultant is entitled to the service fees payable to
the Consultant for work in progress up to and including the date of termination.
The Consultant is not entitled to claim any compensation or damages from the Company in relation to that
termination.
Giuseppe (Joe) Paolo Graziano, Non- Executive Director/Company Secretary
Director’s fees of $36,000 per annum.
No formal consulting agreement in place; consulting fee of $7,000 per month for Company Secretarial and Financial
services is currently being paid.
Kin Mining NL
DIRECTORS’ REPORT (continued)
Remuneration report (continued)
Remuneration of Key Management Personnel
-10-
Short-term employee
benefits
30 June 2015
Directors
T Grammer
Salary & fees
$
Consulting
$
50,000
-
Non-monetary
benefits
$
-
T Dixon
M Fitton
G Graziano
156,000
36,000
-
23,100**
-
242,000
132,000***
155,100
-
-
-
-
Post-employment
benefits
Superannuation
$
4,750
14,820
3,420
-
22,990
Equity
Share
options
$
-
-
-
-
-
Other
$
-
66,332
*
-
-
66,332
Total
$
54,750
237,152
62,520
132,000
486,422
* Mr T Dixon received $66,332 for equipment hire (GST inclusive).
** Consulting fees paid to Mr M Fitton were paid to Maprock Pty Ltd for geological consulting services during the period. Mr
Fitton is the sole director and shareholder of Maprock Pty Ltd (GST inclusive).
*** Consulting services rendered by Mr Graziano were via Pathways Corporate Pty Ltd for Company Secretarial, and services
during the period (GST inclusive).
Short-term employee benefits
Salary &
fees
$
Consulting
$
Non-
monetary
benefits
$
Post-
employment
benefits
Other
$
Superannuation
$
Equity
Share
options
$
37,500
110,500
27,000
-
175,000
-
-
54,093**
99,550***
153,643
-
-
-
-
-
-
24,303*
-
-
24,303
3,468
10,221
2,497
-
16,186
Total
$
-
-
-
-
-
40,968
145,024
83,590
99,550
369,132
30 June 2014
Directors
T Grammer
T Dixon
M Fitton
G Graziano
* Mr T Dixon received $24,303 for equipment hire (GST inclusive).
** Consulting fees paid to Mr M Fitton were paid to Maprock Pty Ltd for geological consulting services during the period. Mr
Fitton is the sole director and shareholder of Maprock Pty Ltd (GST inclusive).
*** Consulting services rendered by Mr Graziano were via Crowe Horwath Perth and Pathways Corporate Pty Ltd for
Company Secretarial, Accounting and Taxation services during the period (GST inclusive).
Shareholdings of key management personnel
2015
Directors
T Grammer
T Dixon
M Fitton
G Graziano
Balance
01/07/14
at
Shares
Purchased
No.
No.
Shares
Issued
No.
Shares
Vendor
Acquisition
No.
Shares
Disposed
Balance
30/06/15
at
No.
No.
35,000
6,602,501
1,000,000
5,000,001
12,637,502
101,113
1,270,500
124,000
1,001,667
2,497,280
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
136,113
7,873,001
1,124,000
6,001,668
15,134,782
Kin Mining NL
DIRECTORS’ REPORT (continued)
Remuneration report (continued)
-11-
2014
Balance at
01/07/13
Shares
Purchased
Shares
Transferred In
No.
No.
No.
Shares
Vendor
Acquisition
No.
Shares
Disposed
Balance at
30/06/14
No.
No.
Directors
T Grammer
T Dixon
M Fitton
G Graziano
-
2,000,001
1,000,000
5,000,001
8,000,002
35,000
10,000
-
-
45,000
-
-
-
-
-
-
4,592,500
-
-
4,592,500
-
-
35,000
6,602,501
1,000,000
-
5,000,001
- 12,637,502
Option holdings of key management personnel
2015
Directors
T Grammer
T Dixon
M Fitton
G Graziano
2014
Directors
T Grammer
T Dixon
M Fitton
G Graziano
Balance
at 01/07/14
No.
Options
Purchased
No.
Options
Disposed
No.
Options
Issued
No.
Options
Expired
No.
Balance
at 30/06/15
No.
17,500
3,301,251
500,000
2,500,001
6,318,752
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
17,500
3,301,251
500,000
2,500,001
6,318,752
-
-
-
-
-
Balance
at 01/07/13
No.
Options
Purchased
No.
Options
Disposed
No.
Options
Issued
No.
Options
Expired
No.
Balance
at 30/06/14
No.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
17,500
3,301,251
500,000
2,500,001
6,318,752
-
-
-
-
-
17,500
3,301,251
500,000
2,500,001
6,318,752
No cash bonuses were granted during 2015 or 2014.
No share based payments were granted as compensation during the reporting period.
No amounts were unpaid on options exercised during the year.
Share options
No share options were granted to Directors as compensation or remuneration during the period.
Other transactions with Key Management Personnel
During the previous year, the Company acquired various interests in mining tenements from a director, Mr Trevor Dixon (or
his related entities). There were no such transactions in the current year.
Issue of vendor shares
-
- Cash
(i)
(i)
4,592,500 shares at the IPO issue price of 20c per share.
2015
$
-
-
-
2014
$
918,500
26,500
945,000
Kin Mining NL
DIRECTORS’ REPORT (continued)
-12-
Remuneration report (continued)
Loans from key management personnel
During the year:
The Company entered into a loan agreement with Mr Fitton to assist with the acquisition of the Leonora Gold Project
for an amount of $1,000,000. This loan is secured and earns interest at a rate of 15%p.a. Interest accrued at balance
date is $137,222. Part of the interest was converted to equity subsequent to year end as approved by shareholders
at a General Meeting held on 3 September 2015 and the term was extended from 24 October 2015 to 24 October
2016;
The Company entered into a loan agreement with Mr Graziano and a related entity to assist with working capital
funding for $52,000. This loan was converted to equity subsequent to year end as approved by shareholders at a
General Meeting held on 3 September 2015. No interest was payable or accrued;
The Company entered into a loan agreement with Mr Dixon to assist with working capital funding for $79,352. This
loan was converted to equity subsequent to year end as approved by shareholders at a General Meeting held on 3
September 2015. No interest was payable or accrued.
END OF REMUNERATION REPORT
Directors’ Meetings
The number of meetings of directors (including meetings of committees of directors) held during the year and the number of
meetings attended by each director were as follows:
Number of meetings held:
Number of meetings attended:
T Grammer
T Dixon
M Fitton
G Graziano
Directors’ meetings
6
6
6
6
6
Proceedings on behalf of the Company
No person has applied for leave of court to bring proceedings on behalf of the Company or intervene in any proceedings to
which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those
proceedings.
Non-Audit Services
Details of amounts paid or payable to the auditor for all services provided during the year by the auditor are outlined in Note
22 to the financial statements. No non-audits services were provided during the year ended 30 June 2015 (2014 $7,475). The
directors are satisfied that the provision of non-audit services is compatible with the general standard of independence for
auditors imposed by the Corporations Act 2001.
The directors are of the opinion that the services do not compromise the auditor’s independence as all non-audit services
have been reviewed to ensure that they do not impact the impartiality and objectivity of the auditor and none of the services
undermine the general principles relating to auditor independence as set out in Code of Conduct APES 110: Code of Ethics
for Professional Accountants issued by the Accounting Professional & Ethical Standards Board.
DIRECTORS’ REPORT (continued)
-13-
Auditor Independence and Non-Audit Services
Section 307C of the Corporations Act 2001 requires our auditors, HLB Mann Judd, to provide the directors of the Company
with an Independence Declaration in relation to the audit of the financial report. This Independence Declaration is set out on
page 17 and forms part of this directors’ report for the year ended 30 June 2015.
Kin Mining NL
Signed in accordance with a resolution of the directors.
Trevor John Dixon
Managing Director
Perth, Western Australia
29 September 2015
Competent Person’s Statement
The information in this report that relates to Mineral Resources and Exploration Results are based on information compiled by Mr Paul Maher
who is a Member of the Australian Institute of Geoscientists and the AusIMM. Mr Maher is an employee of Kin Mining NL. Mr Maher has
sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is
undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves’. Mr Maher consents to the inclusion in the report of the matters based on his information in the form
and context in which it appears.
Kin Mining NL
CORPORATE GOVERANCE STATEMENT
-14-
The Company has adopted comprehensive systems of control and accountability as the basis for the administration of
corporate governance. The Board is committed to administering the policies and procedures with openness and integrity,
pursuing the true spirit of corporate governance commensurate with the Company’s needs. To the extent they are applicable,
the Company has adopted the Eight Essential Corporate Governance Principles and Best Practice Recommendations
(“Recommendations”) as published by ASX Corporate Governance Council.
The Company’s Corporate Governance policies and its Securities Trading Policy are available on the Company’s website. As
the Company’s activities develop in size, nature and scope, the size of the Board and the implementation of additional
corporate governance structures will be given further consideration.
Principle 1 – Lay solid foundations for management and oversight
The Board and management have formalised their respective roles and responsibilities and the functions reserved to the
Board and management. The Board has established and adopted a Board Charter for this purpose.
The Board is responsible for oversight of the management and the overall corporate governance of the Company including
its strategic direction, establishing goals for management and monitoring the achievement of those goals with a view to
optimising company performance and the protection and enhancement of long-term shareholder value.
The Board has also established a Nomination and Remuneration Committee Charter which, amongst other functions, guides
the Board in its evaluation of the performance of senior executives and encourages an appropriate mix of skills, experience,
expertise and diversity on the Board.
The role of management is the efficient and effective operation of the activities of the Company in accordance with the
objectives, strategies and policies determined by the Board. The performance of senior management is reviewed annually in
a formal process with the executive’s performance assessed against the company and personal benchmarks. Benchmarks
are agreed with the executives and reviews are based upon the degree of achievement against those benchmarks.
Principle 2 – Structure the Board to add value
The Board has been formed such that it has effective composition, size and commitment to adequately discharge its
responsibilities and duties. Directors are appointed based on the specific skills required by the Company and on their
experience, decision-making and judgement skills.
The Company has adopted a Nomination and Remuneration Committee Charter which encourages a transparent Board
selection process in searching for and selecting new directors to the Board and having regard to any gaps in the skills and
experience of the directors of the Board and ensuring that a diverse range of candidates is considered. The Board composition
is reviewed on an ongoing basis with regard to the activities of the Company and the skills sets required to support those
activities.
A separate nomination committee has not been formed. The role of the nomination committee is carried out by the full Board
in accordance with the Nomination and Remuneration Committee Charter. The Board considers that at this stage, no
efficiencies or other benefits would be gained by establishing a separate committee.
The composition of the Board is determined using the following principles:
A minimum of three directors, with a broad range of expertise; and
Directors should bring characteristics which allow a mix of qualifications, skills, experience, expertise and diversity
to the Board.
The skills, experience, expertise and tenure of each director are disclosed in the Directors’ Report within this Annual Report.
In assessing the independence of directors, the Board follows the ASX guidelines and will consider whether the director:
Is a substantial shareholder of the Company or an officer of, or otherwise associated directly with, a substantial
shareholder of the Company;
Is employed, or has previously been employed in executive capacity by the Company or another group member,
and there has not been a period of at least three years between ceasing such employment and serving the on board;
Has within the last three years been a principal of a material professional advisor or a material consultant to the
Company or another group member, or an employee materially associated with the service provided;
Is a material supplier or customer of the Company or another group member, or an officer of or otherwise associated
directly or indirectly with a material supplier or customer; and
Has a material contractual relationship with the Company or another group member other than as director of the
Company.
Kin Mining NL
CORPORATE GOVERANCE STATEMENT (continued)
-15-
The Board does not have a majority of independent directors. It is comprised of three non-executive directors and the Board
is confident that each non-executive director brings independent judgement to the Board’s decisions. The Board considers
the existing structure and skill sets of the directors’ appropriate given the small scale of the Company’s enterprise and the
associated economic restrictions the scale of operations places on the Company. The existing structure is aimed at
maximising the financial position of the Company by keeping its operating costs to a minimum.
Where additional skills are considered necessary for specific purposes, access is made to independent professional advice
at the expense of the Company.
Principle 3 – Promote ethical and responsible decision making
All Directors, managers and employees are expected to act with the utmost integrity and objectivity, striving at all times to
enhance the reputation and performance of the Company. The Board has established a Code of Conduct to guide the
Directors, managers, employees and officers of the Company with respect to matters relevant to the Company’s legal and
ethical obligations and the expectations of stakeholders.
The Code of Conduct requires officers and employees to avoid or ensure proper management of conflicts of interest, to not
use confidential information for personal gain and to act in fair, honest and respectful manner. The Board has procedures in
place for reporting any matters that give rise to unethical practices or conflicts between the interests of a director or senior
executive and those of the Company.
Securities Trading Policy
The Board encourages directors and employees to hold shares in the Company to align their interest with the interests of all
Shareholders. The Company has adopted a Securities Trading Policy which guides directors, employees or contractors in
trading the Company’s securities in accordance with ASX Listing Rules. Trading the Company’s shares is prohibited under
certain circumstances and a director, employee or contractor must not deal in the Company’s securities at any time when he
or she is in possession of information which, if generally available, may affect the price of the Company’s shares.
The Policy sets out the following information:
(a) closed periods in which directors, employees and contractors of the Company must not deal in the Company’s
securities;
(b) trading in the Company’s securities which is not subject to the Company’s Trading Policy; and
(c)
the procedures for obtaining written clearance for trading in exceptional circumstances.
Principle 4 – Safeguard integrity in financial reporting
The Directors require the Managing Director and external company auditors to state in writing to the Board, that the
Company’s financial reports present a true and fair view, in all material respects, of the Company’s financial condition and
operational results and are in accordance with relevant accounting standards.
A separate audit committee has not been formed. However, the Company has adopted an Audit Committee Charter. The
role of the audit committee is carried out by the full Board in accordance with the Audit Committee Charter. The Board
considers that given its size, no efficiencies or other benefits would be gained by establishing a separate audit committee.
Principle 5 – Make timely and balanced disclosure
The Directors are committed to keeping the market fully informed of material developments to ensure compliance with the
ASX Listing Rules and the Corporations Act. The Directors have established a written policy and procedure to ensure
compliance with the disclosure requirements of the ASX Listing Rules. At each meeting of the directors, consideration is given
as to whether notice of material information concerning the Company, including its financial position, performance, ownership
and governance has been made to all investors.
Under the policy the Company’s employees and contractors must disclose any relevant information which comes to their
attention and is believed to potentially be material to the Company Secretary or Executive Director.
Principle 6 – Respect the rights of Shareholders
The Directors have established a communications strategy to promote effective communication with Shareholders and
encourage effective participation at general meetings. As well as ensuring timely and appropriate access to information for
all investors via announcements to the ASX, the Company will also ensure that all relevant documents are released on the
Company’s website.
Communication with Shareholders is achieved through the distribution of the following information:
The Annual Report is distributed to Shareholders;
The Half Yearly Report is available on the Company’s website;
Kin Mining NL
CORPORATE GOVERANCE STATEMENT (continued)
Regular reports and announcements are released through the ASX;
-16-
The Annual General Meeting and other meetings called by the Company to obtain Shareholder approval as
appropriate; and
Investor information released through the Company’s website.
Principle 7 – Recognise and manage risk
The Board is responsible for overseeing the risk management function and ensuring that risks and opportunities are identified
on a timely basis. The Directors have established a Risk Management Policy regarding the oversight and management of
material business risks.
Responsibility for the control and risk management is delegated to the appropriate level of management within the Company,
with the Executive Director having ultimate responsibility to the Board for monitoring the risk management and control
framework. Risk analysis and evaluation occurs on an ongoing basis in the course of the activities of the Company.
Management is responsible for the development of risk mitigation plans and the implementation of risk reduction strategies.
The Executive Director reports on a regular basis to the Board on the areas of their responsibility, including material business
risks and provides an annual written report to the Board summarising the effectiveness of the Company’s management of
material business risks.
Principle 8 – Remunerate fairly and responsibly
A separate remuneration committee has not been formed. However, the Company has adopted a Nomination and
Remuneration Committee Charter. The role of the remuneration committee is carried out by the full Board in accordance with
the Nomination and Remuneration Committee charter. The charter details how the Board fulfils its duties in regards to the
Company’s remuneration plans, policies and practices, including the compensation of non-executive directors, executive
directors and management. The Board considers that at this stage, no efficiencies or other benefits would be gained by
establishing a separate committee.
The Board has provided disclosure within this Annual Report in relation to Directors’ remuneration and remuneration policies
in accordance with the ASX Listing Rules and the Corporations Act. There are no retirement schemes or retirement benefits
other than statutory benefits for non-executive directors.
The Company has a policy to prohibit its directors and employees, who participate in an equity-based incentive plan of the
Company, from entering into transactions which would have the effect of hedging or otherwise transferring to any other person
the risk of any fluctuation in the value of any unvested entitlement in the Company’s securities. Directors and employees are
encouraged to take sufficient professional advice in relation to their individual financial position.
The payment of bonuses, options and other incentive payments are reviewed by the Board annually as part of the review of
executive remuneration. All bonuses, options and incentives must be linked to predetermined performance criteria. The Board
can exercise its discretion in relation to approving incentives, bonuses and options, given they are justified by reference to
measurable performance criteria.
The Company’s Share Trading Policy is available on its website.
-17-
Kin Mining NL
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the consolidated financial report of Kin Mining NL for the year ended
30 June 2015, I declare that to the best of my knowledge and belief, there have been no
contraventions of:
a)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit;
and
b)
any applicable code of professional conduct in relation to the audit.
Perth, Western Australia
29 September 2015
L Di Giallonardo
Partner
HLB Mann Judd (WA Partnership) ABN 22 193 232 714
Level 4, 130 Stirling Street Perth WA 6000. PO Box 8124 Perth BC 6849 Telephone +61 (08) 9227 7500. Fax +61 (08) 9227 7533.
Email: hlb@hlbwa.com.au. Website: http://www.hlb.com.au
Liability limited by a scheme approved under Professional Standards Legislation
HLB Mann Judd (WA Partnership) is a member of
International, a worldwide organisation of accounting firms and business advisers.
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2015
-18-
Continuing operations
Revenue:
Interest income
Other income
Depreciation and amortisation expense
Administration expenses
Consultant expenses
Employee expenses
Interest expense
Occupancy expenses
Travel expenses
Loss before income tax expense
Income tax expense
Net loss for the year
Other comprehensive income, net of income tax
Other comprehensive income for the year, net of tax
Kin Mining NL
Consolidated
2015
$
Parent
2014
$
Notes
2
3
-
510
694
(19,529)
(308,656)
(127,694)
(384,534)
(228,890)
(70,646)
(9,816)
(1,148,561)
-
(1,148,561)
-
-
-
38,984
34,974
(10,826)
(141,560)
(197,300)
(277,840)
-
(41,416)
(20,765)
(615,749)
-
(615,749)
-
-
Total comprehensive loss for the year
(1,148,561)
(615,749)
Basic earnings per share (cents per share)
7
(2.53)
(1.79)
The accompanying notes form part of these financial statements
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2015
-19-
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Other
Total current assets
Non-current assets
Property, plant and equipment
Capitalised exploration and evaluation expenditure
Other
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Borrowings
Total current liabilities
Non-current liabilities
Borrowings
Total Non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Accumulated losses
Total equity
The accompanying notes form part of these financial statements
Kin Mining NL
Consolidated
2015
$
Parent
2014
$
Notes
9
10
11
12
13
11
14
15
15
16
118,207
35,543
91,406
245,156
243,143
6,947,978
-
7,191,121
7,436,277
462,723
1,350,549
1,813,272
1,440,188
1,440,188
3,253,460
4,182,817
173,355
77,377
90,475
341,207
39,629
2,993,636
226,053
3,259,318
3,600,525
190,250
-
190,250
-
-
190,250
3,410,275
6,066,185
(1,883,368)
4,182,817
4,145,082
(734,807)
3,410,275
Kin Mining NL
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2015
-20-
Notes
Balance at 1 July 2013
Loss for the year
Total comprehensive loss for the year
Shares issued during the year
Share issue costs
Balance as at 30 June 2014
Loss for the year
Total comprehensive loss for the year
Shares issued during the year
Share issue costs
Balance as at 30 June 2015
Issued capital
$
778,115
-
-
3,940,600
(573,633)
4,145,082
Accumulate
d losses
$
(119,058)
(615,749)
(615,749)
-
-
(734,807)
4,145,082
-
-
1,941,453
(20,350)
6,066,185
(734,807)
(1,148,561)
(1,148,561)
-
-
(1,883,368)
Parent
Attributable
to owners of
the parent
$
-
-
-
-
-
-
-
-
-
-
-
-
Total equity
$
659,057
(615,749)
(615,749)
3,940,600
(573,633)
3,410,275
3,410,275
(1,148,561)
(1,148,561)
1,941,453
(20,350)
4,182,817
The accompanying notes form part of these financial statements
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2015
-21-
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Interest received
Finance costs
Net cash (outflow) from operating activities
Cash flows from investing activities
Payments for property, plant and equipment
Payments Exploration and evaluation expenditure
Payments for acquisition of investment and related costs
Payment for subsidiary, net of cash acquired
Net cash (outflow) from investing activities
Cash flows from financing activities
Proceeds from issue of shares
Payments for share issue costs
Proceeds from borrowings
Repayments of borrowings
Net cash inflow from financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The accompanying notes form part of these financial statements
Kin Mining NL
Consolidated
2015
$
Parent
2014
$
Notes
694
(590,306)
510
(228,890)
(817,992)
34,974
(493,905)
38,984
-
(419,947)
(223,043)
(1,195,569)
(2,532,720)
(42,374)
(1,184,576)
(542,848)
(3,951,332)
(1,769,798)
1,941,453
(20,350)
2,793,073
4,714,176
(55,148)
173,355
118,207
2,583,600
(375,806)
-
-
2,207,794
18,049
155,306
173,355
9
9
Kin Mining NL
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
-22-
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation
(a)
These financial statements are general purpose financial statements, which have been prepared in accordance with the
requirements of the Corporations Act 2001, Accounting Standards and Interpretations and comply with other requirements of
the law.
The financial statements comprise the consolidated financial statements for the Group. For the purposes of preparing the
consolidated financial statements, the Company is a for-profit entity.
The accounting policies detailed below have been consistently applied to all of the years presented unless otherwise stated.
The financial statements are for the Group consisting of Kin Mining NL and its subsidiary, namely Navigator Mining Pty Ltd.
As Navigator Mining Pty Ltd was acquired on 3 November 2014, the comparative balances are for Kin Mining NL as the parent
entity.
The financial statements have been prepared on a historical cost basis. Historical cost is based on the fair values of the
consideration given in exchange for goods and services.
The financial statements are presented in Australian dollars.
The Company is a listed public Company, incorporated in Australia and operating in Australia. The Group’s principal activities
are gold and base metals exploration.
(b)
Adoption of new and revised standards
Standards and Interpretations applicable to 30 June 2015
In the year ended 30 June 2015, the Directors have reviewed all of the new and revised Standards and Interpretations issued
by the AASB that are relevant to the Group and effective for the current annual reporting period.
As a result of this review, the Directors have determined that there is no material impact of the new and revised Standards
and Interpretations on the Group and, therefore, no material change is necessary to Group accounting policies.
Standards and Interpretations in issue not yet adopted
The Directors have also reviewed all new Standards and Interpretations that have been issued but are not yet effective for the
year ended 30 June 2015. As a result of this review, the Directors have determined that there is no material impact, of the new
and revised Standards and Interpretations on the Group and, therefore, no change is necessary to Group accounting policies.
Statement of compliance
(c)
The financial report was authorised for issue on 29 September 2015.
The financial report complies with Australian Accounting Standards, which include Australian equivalents to International
Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial report, comprising the financial
statements and notes thereto, complies with International Financial Reporting Standards (IFRS).
(d) Critical accounting estimates and judgements
The application of accounting policies requires the use of judgements, estimates and assumptions about carrying values of
assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based
on historical experience and other factors that are considered to be relevant.
Capitalised exploration and evaluation expenditure
The Group’s accounting policy is stated at 1(t). A regular review is undertaken of each area of interest to determine the
reasonableness of continuing to carry forward costs in relation to that area of interest.
Going concern
(e)
Notwithstanding the fact that the Group has a working capital deficiency of $1,568,116 at balance date, the directors are of
the opinion that the Group is a going concern for the following reasons:
Loans from related parties total $1,350,549 and form part of the working capital deficiency. Of this amount, unsecured loans
totalling $213,327 were converted to shares in accordance with the approval of shareholders at a General Meeting held on 3
September 2015, and the balance of $1,137,222 being a secured loan from Mr Fritz Fitton, the Company’s technical director,
has been extended for an additional 12 months commencing on 24 October 2015.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
-23-
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Kin Mining NL
(e)
Going concern (continued)
The loan from Waterton Global Value L.P which formed part of the vendor finance provided to the Company for the acquisition
of the Leonora Gold Project and secured against the shares in Navigator Mining Pty Ltd totals $1,440,188 (including accrued
interest) and is due for repayment on 3 November 2016.
Subsequent to year end the Group raised $447,600 of equity capital via a Share Purchase Plan and Placement to sophisticated
investors at $0.10 per share with a one for two attaching unlisted option exercisable @ $0.20 expiring on 31 August 2017. The
Company is seeking to place the remaining shortfall from the Share Purchase Plan totalling $1,811,010.
Furthermore, the Company has secured $1,000,000 in funding via equity and convertible note funding from a strategic investor
to assist the company in the early stage production opportunity at the Lewis prospect in the Cardinia project area. Of this
funding, an amount of $100,000 in equity had been received at balance date (833,333 ordinary shares issued).The Company
has also signed a Memorandum of Understanding (“MOU”) with Australian Mining & Civil Pty Ltd (“AMC”) to provide open cut
mining and civil earthmoving activities at the Lewis prospect. One of the conditions of the MOU is that AMC will commit to
invest $500,000 in the Company via a staged placement of shares. The first $150,000 was received by the Company as part
of the Placement referred to above.
The funds raised will be used to meet the ongoing working capital and expenditure commitments of the Group. The Directors
also anticipate that further equity raisings will be required and this will be assessed in the second half of 2015 and early 2016
in order to meet ongoing working capital and expenditure commitments. Should these equity raisings not be completed, there
is a material uncertainty that may cast significant doubt as to whether the Group will be able to continue as a going concern
and, therefore, whether it will be able to realise its assets and extinguish its liabilities in the normal course of business and at
the amount stated in the financial report.
Basis of consolidation
(f)
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the
Company and its subsidiaries. Control is achieved when the Company:
has power over the investee;
is exposed, or has rights, to variable returns from its involvement in with the investee; and
has the ability to its power to affect its returns.
The Company reassess whether or not it controls an investee if facts and circumstances indicate that there are changes to
one or more of the three elements listed above.
When the Company has less than a majority of the voting rights if an investee, it has the power over the investee when the
voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company
considers all relevant facts and circumstances in assessing whether or not the Company’s voting rights are sufficient to give
it power, including:
the size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the other vote
holders;
potential voting rights held by the Company, other vote holders or other parties; rights arising from other contractual
arrangements; and
any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct
the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholder
meetings.
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company
loses control of the subsidiary. Specifically income and expenses of a subsidiary acquired or disposed of during the year are
included in the consolidated statement of comprehensive income from the date the Company gains control until the date when
the Company ceases to control the subsidiary.
Kin Mining NL
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
-24-
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Basis of consolidation (continued)
(f)
Changes in the Group’s ownership interest in existing subsidiaries
Changes in the Group’s ownership interest in subsidiaries that do not result in the Group losing control over the subsidiaries
are accounted for as equity transactions. The carrying amounts of the Group’s interests and the non-controlling interests are
adjusted to reflect the changes in their relative interests in subsidiaries. Any difference between the amount paid by which the
non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity
and attributed to the owners of the Company.
When the Group loses control of a subsidiary, a gain or loss is recognised in profit or loss and is calculated as the difference
between:
The aggregate of the fair value of the consideration received and the fair value of any retained interest; and
The previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling
interests.
All amounts previously recognised in other comprehensive income in relation to that subsidiary are accounted for as if the
Group had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to profit and loss or transferred
to another category of equity as specified/permitted by the applicable AASBs). The fair value of any investment retained in the
former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting
under AASB 139, when applicable, the cost on initial recognition of an investment in an associate or a joint venture.
Revenue recognition
(g)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue is
capable of being reliably measured. The following specific recognition criteria must also be met before revenue is recognised:
Interest income
Revenue is recognised as the interest accrues (using the effective interest method, which is the rate that exactly discounts
estimated future cash receipts through the expected life of the financial instrument) to the net carrying amount of the financial
asset.
(h) Income tax
Deferred income tax is provided for on all temporary differences at balance date between the tax base of assets and liabilities
and their carrying amounts for financial reporting purposes.
No deferred income tax will be recognised from the initial recognition of goodwill or of an asset or liability, excluding a business
combination, where there is no effect on accounting or taxable profit or loss. No deferred income tax will be recognised in
respect of temporary differences associated with investments in subsidiaries if the timing of the reversal of the temporary
difference can be controlled and it is probable that the temporary differences will not reverse in the near future.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is
settled. Deferred tax is credited in the statement of comprehensive income except where it relates to items that may be
credited directly to equity, in which case the deferred tax is adjusted directly against equity.
Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused tax assets and
unused tax losses to the extent that it is probable that future tax profits will be available against which deductible temporary
differences can be utilised.
The amount of benefits brought to account or which may be realised in the future is based on tax rates (and tax laws) that
have been enacted or substantially enacted at the balance date and the anticipation that the Group will derive sufficient future
assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.
The carrying amount of deferred tax assets is reviewed at each balance date and only recognised to the extent that sufficient
future assessable income is expected to be obtained. Income taxes relating to items recognised directly in equity are
recognised in equity and not in the statement of comprehensive income.
Kin Mining NL
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
-25-
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Other taxes
(i)
Revenues, expenses and assets are recognised net of the amount of GST except:
when the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which
case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable;
and
receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables
in the statement of financial position.
Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flows arising from
investing and financing activities, which is recoverable from, or payable to, the taxation authority are classified as operating
cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation
authority.
(j) Impairment of non-financial assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication
exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset’s recoverable
amount. An asset’s recoverable amount is the higher of its fair value less costs to sell and its value in use and is determined
for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets
of the Group. In such cases the asset is tested for impairment as part of the cash generating unit to which it belongs. When
the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is
considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses
relating to continuing operations are recognised in those expense categories consistent with the function of the impaired asset
unless the asset is carried at revalued amount (in which case the impairment loss is treated as a revaluation decrease).
An assessment is also made at each reporting date as to whether there is any indication that previously recognised impairment
losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously
recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s
recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the asset is
increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been
determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is
recognised in profit or loss unless the asset is carried at revalued amount, in which case the reversal is treated as a revaluation
increase.
After such a reversal the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying amount, less
any residual value, on a systematic basis over its remaining useful life.
Cash and cash equivalents
(k)
Cash comprises cash at bank and in hand. Cash equivalents are short term, highly liquid investments that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Bank overdrafts are
shown within borrowings in current liabilities in the statement of financial position.
For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined
above, net of outstanding bank overdrafts.
Property, plant and equipment
(l)
Property, plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses. Such
cost includes the cost of replacing parts that are eligible for capitalisation when the cost of replacing the parts is incurred.
Similarly, when each major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment
as a replacement only if it is eligible for capitalisation.
Kin Mining NL
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
-26-
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Property, plant and equipment (continued)
(l)
Property, plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses. Such
cost includes the cost of replacing parts that are eligible for capitalisation when the cost of replacing the parts is incurred.
Similarly, when each major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment
as a replacement only if it is eligible for capitalisation.
Land and buildings are measured at cost less accumulated depreciation on buildings and less any impairment losses
recognised after the date of the revaluation.
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:
Freehold buildings
Plant and equipment
Motor Vehicles
25 years
10 years
5 years
The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at each financial
year end.
Impairment
The carrying values of property, plant and equipment are reviewed for impairment at each balance date, with recoverable
amount being estimated when events or changes in circumstances indicate that the carrying value may be impaired.
The recoverable amount of property, plant and equipment is the higher of fair value less costs to sell and value in use. In
assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not
generate largely independent cash inflows, recoverable amount is determined for the cash-generating unit to which the asset
belongs, unless the asset's value in use can be estimated to approximate fair value.
An impairment exists when the carrying value of an asset or cash-generating unit exceeds its estimated recoverable amount.
The asset or cash-generating unit is then written down to its recoverable amount.
Impairment losses are recognised in the statement of comprehensive income in the cost of sales line item.
Derecognition and disposal
An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are
expected from its use or disposal.
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the
carrying amount of the asset) is included in profit or loss in the year the asset is derecognised.
Trade and other receivables
(m)
Trade and other receivables are measured on initial recognition at fair value and are subsequently measured at amortised
cost using the effective interest rate method, less any allowance for impairment. Trade receivables are generally due for
settlement within periods ranging from 15 days to 30 days.
Impairment of trade receivables is continually reviewed and those that are considered to be uncollectible are written off by
reducing the carrying amount directly. An allowance account is used when there is objective evidence that the Group will not
be able to collect all amounts due according to the original contractual terms. Factors considered by the Group in making this
determination include known significant financial difficulties of the debtor, review of financial information and significant
delinquency in making contractual payments to the Group. The impairment allowance is set equal to the difference between
the carrying amount of the receivable and the present value of estimated future cash flows, discounted at the original effective
interest rate. Where receivables are short-term discounting is not applied in determining the allowance.
Kin Mining NL
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
-27-
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Trade and other receivables (continue)
(m)
The amount of the impairment loss is recognised in the statement of comprehensive income with other expenses when a trade
receivable for which an impairment allowance had been recognised becomes uncollectible in subsequent period, it is written
off against the allowance account. Subsequent recoveries of amounts previous written off are credited against other expenses
in the statement of comprehensive income.
Trade and other payables
(n)
Trade payables and other payables are carried at amortised cost and represent liabilities for goods and services provided to
the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make future
payments in respect of the purchase of these goods and services. Trade and other payables are presented as current liabilities
unless payment is not due within 12 months.
Borrowings
(o)
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at
amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in
profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan
facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be
drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable
that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised
over the period of the facility to which it relates.
The fair value of the liability portion of a convertible note is determined using a market interest rate for an equivalent non-
convertible note. This amount is recorded as a liability on an amortised cost basis until extinguished on conversion or maturity
of the note. The remainder of the proceeds is allocated to the conversion option. This is recognised and included in
shareholders’ equity, net of income tax effects.
Borrowings are removed from the statement of financial position when the obligation specified in the contract is discharged,
cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or
transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is
recognised in profit or loss as other income or finance costs.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for
at least 12 months after the reporting period.
Provisions
(p)
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. Provisions are not recognised for future operating losses.
When the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the
reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating
to any provision is presented in the statement of comprehensive income net of any reimbursement. Provisions are measured
at the present value or management’s best estimate of the expenditure required to settle the present obligation at the end of
the reporting period.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects the risks
specific to the liability.
When discounting is used, the increase in the provision due to the passage of time is recognised as an interest expense.
Employee leave benefits
(q)
Wages, salaries, annual leave and sick leave
Liabilities accruing to employees in respect of wages and salaries, annual leave, long service leave and sick leave expected
to be settled within 12 months of the balance date are recognised in other payables in respect of employees’ services up to
the balance date. They are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for non-
accumulating sick leave are recognised when the leave is taken and are measured at the rates paid or payable.
Kin Mining NL
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
-28-
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Employee leave benefits (continue)
(q)
Liabilities accruing to employees in respect of wages and salaries, annual leave, long service leave and sick leave not expected
to be settled within 12 months of the balance date are recognised in non-current other payables in respect of
employees’ services up to the balance date. They are measured as the present value of the estimated future outflows to be
made by the Group.
Long service leave
The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of
expected future payments to be made in respect of services provided by employees up to the balance date. Consideration is
given to expected future wage and salary levels, experience of employee departures, and period of service. Expected future
payments are discounted using market yields at the balance date on national government bonds with terms to maturity and
currencies that match, as closely as possible, the estimated future cash outflows.
Issued capital
(r)
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown
in equity as a deduction, net of tax, from the proceeds. Incremental costs directly attributable to the issue of new shares or
options for the acquisition of a new business are not included in the cost of acquisition as part of the purchase consideration.
Earnings/ loss per share
(s)
Basic earnings/loss per share is calculated as net profit/loss attributable to members of the parent, adjusted to exclude any
costs of servicing equity (other than dividends) and preference share dividends, divided by the weighted average number of
ordinary shares, adjusted for any bonus element.
Diluted earnings/loss per share is calculated as net profit/loss attributable to members of the parent, adjusted for:
costs of servicing equity (other than dividends) and preference share dividends;
the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised
as expenses; and
other non-discretionary changes in revenues or expenses during the period that would result from the dilution of
potential ordinary shares; divided by the weighted average number of ordinary shares and dilutive potential ordinary
shares, adjusted for any bonus element.
Exploration and evaluation
(t)
Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an exploration and
evaluation asset in the year in which they are incurred where the following conditions are satisfied:
the rights to tenure of the area of interest are current; and
at least one of the following conditions is also met:
-
the exploration and evaluation expenditures are expected to be recouped through successful development and
exploration of the area of interest, or alternatively, by its sale; or
exploration and evaluation activities in the area of interest have not at the balance date reached a stage which
permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and
active and significant operations in, or in relation to, the area of interest are continuing.
-
Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore, studies, exploratory
drilling, trenching and sampling and associated activities and an allocation of depreciation and amortised of assets used in
exploration and evaluation activities. General and administrative costs are only included in the measurement of exploration
and evaluation costs where they are related directly to operational activities in a particular area of interest.
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying
amount of an exploration and evaluation asset may exceed its recoverable amount. The recoverable amount of the exploration
and evaluation asset (for the cash generating unit(s) to which it has been allocated being no larger than the relevant area of
interest) is estimated to determine the extent of the impairment loss (if any). Where an impairment loss subsequently reverses,
the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the
increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss
been recognised for the asset in previous years.
Where a decision has been made to proceed with development in respect of a particular area of interest, the relevant
exploration and evaluation asset is tested for impairment and the balance is then reclassified to development.
Kin Mining NL
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
-29-
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Parent entity financial information
(u)
The financial information for the parent entity, Kin Mining NL, disclosed in Note 20 has been prepared on the same basis as
the consolidated financial statements, except as set out below.
Investments in subsidiaries, associates and joint venture entities
Investments in subsidiaries, associates and joint venture entities are accounted for at cost in the parent entity’s financial
statements.
Share-based payments
The grant by the Company of options over its equity instruments to the employees of subsidiary undertakings in the Group is
treated as a capital contribution to that subsidiary undertaking. The fair value of employee services received, measured by
reference to the grant date fair value, is recognised over the vesting period as an increase to investment in subsidiary
undertakings, with a corresponding credit to equity.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
-30-
NOTE 2: REVENUE AND EXPENSES
Included in the loss for the year are the following items of revenue and expenses:
Revenue
Other income:
Rental revenue
Secretarial
Other income
Expenses
Depreciation of plant and equipment
Depreciation of motor vehicles
Depreciation of land and buildings
Interest expense
NOTE 3: INCOME TAX
Kin Mining NL
Consolidated
2015
$
-
694
-
694
Consolidated
2015
$
8,852
8,985
1,692
228,890
248,419
Parent
2014
$
4,400
985
29,589
34,974
Parent
2014
$
7,360
3,466
-
-
10,826
The prima facie income tax expense on pre-tax accounting loss from operations reconciles to the income tax expense in the
financial statements as follows:
Loss from continuing operations
Income tax expense calculated at 30% (2014: 30%)
Tax effect of amounts which are not deductible/(taxable) in calculating
taxable income:
Effect of expenses that are not deductible in determining
taxable profit
Effect of unused tax losses and tax offsets not recognised as
deferred tax assets
Income tax expense reported in the consolidated statement of
comprehensive income
Consolidated
2015
$
(1,148,561)
Parent
2014
$
(615,749)
344,569
184,725
(22,074)
(37,944)
(322,495)
(146,781)
-
-
The tax rate used in the above reconciliation is the corporate tax rate of 30% payable by Australian corporate entities on
taxable profits under Australian tax law. There has been no change in this tax rate since the previous reporting period.
The Company’s tax benefit from losses arising in Australia is $597,571 (2014: $275,076). These tax losses are available
indefinitely for offset against future taxable profits.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
-31-
Kin Mining NL
NOTE 4: SEGMENT REPORTING
Operating segments are identified on the basis of internal reports about components of the Group that are reviewed by the
chief operating decision maker (deemed to be the Board of Directors) in order to allocate resources to the segment and
assess its performance. During the period, the Group operated predominantly in one business and geographical segment
being mineral exploration in Australia. Accordingly, under the “management approach” outlined, only one operating segment
has been identified and no further disclosure is required in the notes.
NOTE 5: BONUS OPTIONS (Unlisted)
Movements in options over ordinary shares on
issue
Balance at beginning of period
Movement
Balance at end of period
30 June 2015
No.
19,326,512
(19,326,512)
-
30 June 2014
No.
19,326,512
-
19,326,512
These Options exercisable at 30 cents prior to 31 January 2015 lapsed unexercised.
NOTE 6: ACQUISITION OF NAVIGATOR MINING PTY LTD
On 3 November 2014, Kin Mining NL acquired 100% of the voting shares of Navigator Mining Pty Ltd.
The total cost of the acquisition was $2,925,000 and comprised an issue of equity instruments and cash. The Company issued
2,500,000 ordinary shares with a fair value of $0.15c each, based on the quoted price of the shares Kin Mining NL at the date
of exchange. The acquisition has been treated as an asset acquisition rather than a business combination.
Consideration transferred
Acquisition date fair value of the consideration transferred:
Shares issued at fair value (Note 16)
Cash paid (including deposit paid in previous period)
Total consideration
Deferred exploration and evaluation expenditure (Note 13)
Motor vehicles (Note 12)
Land and Buildings (Note 12)
Total consideration
30 June 2015
$
375,000
2,550,000
2,925,000
Fair value at
acquisition date
$
2,753,957
47,470
123,573
2,925,000
-32-
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 7: LOSS PER SHARE
Kin Mining NL
Consolidated
2015
Cents per share
Parent
2014
Cents per
share
Basic/diluted loss per share
(2.53)
(1.79)
The loss and weighted average number of ordinary shares used in the calculation of basic/diluted loss per share is as follows:
Loss for the year
Weighted average number of ordinary shares for the purpose of basic
earnings per share
Consolidated
2015
$
Parent
2014
$
(1,148,561)
(615,749)
Consolidated
2015
No.
Parent
2014
No.
45,344,394
34,368,143
Diluted loss per share is equivalent to the basic loss per share as there are no options on issue which would result in being
dilutive in nature.
NOTE 8: DIVIDENDS
No dividends have been paid or declared since the start of the financial year and the directors do not recommend the payment
of a dividend in respect of the financial year.
NOTE 9: CASH AND CASH EQUIVALENTS
Reconciliation to the Statement of Cash Flows:
For the purposes of the statement of cash flows, cash and cash equivalents comprise cash on hand and at bank and
investments in money market instruments, net of outstanding bank overdrafts.
Cash and cash equivalents as shown in the statement of cash flows is reconciled to the related items in the statement of
financial position as follows:
Cash and cash equivalents
Cash at bank earns interest at floating rates based on daily bank deposit rates.
Consolidated
2015
$
118,207
118,207
Parent
2014
$
173,355
173,355
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
-33-
Reconciliation of net loss for the year to net cash flows from operating activities
Net loss for the year
Depreciation of non-current assets
(Increase)/decrease in assets:
Trade and other receivables
Increase/(decrease) in liabilities:
Trade and other payables
Provisions
Net cash from operating activities
Kin Mining NL
Consolidated
2015
$
(1,148,561)
19,529
Parent
2014
$
(615,749)
10,826
45,473
44,222
256,997
8,570
(817,992)
131,020
9,734
(419,947)
Non-cash financing and investing activities:
Acquisition of exploration assets via issue of vendor shares (parent
entity)
375,000
1,357,000
NOTE 10: TRADE AND OTHER RECEIVABLES
Trade receivables (i)
Other debtors (GST and fuel credits refundable)
Other debtors (ATO receivable)
(i)
the average credit period for rendering of services is 7 days.
Aging of past due but not impaired
There are no past due amounts at balance date.
NOTE 11: OTHER ASSETS
Current
Prepayment – drilling
Prepayment – insurance
Consolidated
2015
$
-
28,276
7,267
35,543
Consolidated
2015
$
87,379
4,027
91,406
Parent
2014
$
32,350
37,760
7,267
77,377
Parent
2014
$
87,379
3,096
90,475
Non-Current
Non-refundable deposit paid on acquisition of Navigator Mining Pty
Ltd (subject to deed of company arrangement)
Other expenses relating to the Leonora Gold Project
Total
-
-
-
200,000
26,053
226,053
-34-
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 12: PROPERTY, PLANT AND EQUIPMENT
Kin Mining NL
Opening net book value
Balance at 1 July 2013
Additions
Depreciation charge for the year
Balance at 30 June 2014
Opening net book value
Balance at 1 July 2014
Additions
Net book value recognised on acquisition of
Navigator Mining Pty Ltd (Note 6)
Depreciation charge for the year
Balance at 30 June 2015
Freehold land
and buildings
Office
equipment
Motor Vehicles
Total
$
-
-
-
-
123,573
(1,692)
121,881
$
$
$
8,081
20,012
(7,360)
20,733
20,733
4,000
-
(8,852)
15,881
-
22,362
(3,466)
18,896
18,896
48,000
47,470
(8,985)
105,381
8,081
42,374
(10,826)
39,629
39,629
52,000
171,043
(19,529)
243,143
The useful life of the assets was estimated as follows for both 2015 and 2014:
Buildings
Plant and equipment
Motor vehicles
25 years
10 years
5 years
NOTE 13: CAPITALISED EXPLORATION AND EVALUATION EXPENDITURE
Costs carried forward in respect of:
Exploration and evaluation phase – at cost
Balance at beginning of year
Expenditure incurred - cash
- issue of vendor shares
- fair value of exploration costs recognised on
acquisition of Navigator Mining Pty Ltd(Note 6)
Total exploration and evaluation expenditure
Consolidated
2015
$
Parent
2014
$
2,993,636
1,200,385
-
2,753,957
6,947,978
314,592
1,322,044
1,357,000
-
2,993,636
The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation phase is dependent
on the successful development and commercial exploitation or sale of the respective areas.
NOTE 14: TRADE AND OTHER PAYABLES (CURRENT)
Trade payables (i)
Other payables and accrued expenses
Annual leave
(i)
Trade payables are non-interest bearing and are normally settled on 30-day terms.
Consolidated
2015
$
309,790
123,553
29,380
462,723
Parent
2014
$
75,415
105,101
9,734
190,250
-35-
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 15: BORROWINGS
Current
Unsecured
Related party loans (iii)
Secured
Related party loans (ii)
Non-Current
Other loans (i)
Total borrowings
Kin Mining NL
Consolidated
2015
$
Parent
2014
$
213,327
1,137,222
1,350,549
1,440,188
2,790,737
-
-
-
-
-
Summary of borrowing arrangements
(i) Waterton Global Value L.P. provided $1,350,000 as a vendor loan to the Company for a term of 24 months at an interest
rate of 10% secured by a first ranking security over the assets of Navigator Mining Pty Ltd. The interest is capitalised and the
loan and interest will be payable at the end of the 24 month term being 3 November 2016 or earlier as agreed between the
parties. Included in the above balance is accrued interest at balance date of $90,188.
(ii) Mr Fritz Fitton, the technical director of the Company, provided a loan of $1,000,000 for a term of 12 months at an interest
rate of 15% secured by the Company’s assets, other than its shares in Navigator Mining Pty Ltd. The interest has been
capitalised ($137,222 at balance date) and partly converted to shares subsequent to balance date in accordance with an
approval by shareholders at a General Meeting held on 3 September 2015. Furthermore, the Company announced
subsequent to year that that an extension had been granted for repayment of the loan for a further 12 months commencing on
24 October 2015 on the same terms as advised above.
(iii) Directors and their associates have provided unsecured loans to the Company during the period totalling $213,327. The
loans have no fixed term or interest chargeable and have been converted to equity subsequent to balance date in accordance
with an approval by shareholders at a General Meeting held on 3 September 2015.
Defaults and breaches
There have been no defaults or breaches during the period.
Assets pledged as security
The carrying amounts of assets pledged as security for current and non-current interest bearing liabilities are:
Current
Floating charge
Cash and cash equivalents
Receivables
Prepayments
Total current assets pledged as security
Non-Current
Floating Charge
Property, Plant and equipment
Capitalised exploration and evaluation expenditure
Total non-current assets pledged as security
Total assets pledged as security
Consolidated Parent
2014
$
2015
$
118,207
35,543
91,406
245,156
243,143
6,947,978
7,191,121
7,436,277
-
-
-
-
-
-
-
-36-
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 16: ISSUED CAPITAL
Ordinary shares issued and fully paid
Kin Mining NL
Consolidated Parent
2014
$
4,145,082
2015
$
6,066,185
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to
the number of and amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and
upon a poll each share is entitled to one vote.
Ordinary shares have no par value and the Company does not have a limited amount of authorised capital.
Movement in ordinary shares on issue
Movements in ordinary shares
Balance at beginning of year
Issue of shares to Waterton Global Value L.P
for the acquisition of Navigator Mining Pty Ltd
(Note 6)
Rights issues
Issue of vendor shares
Consolidated
2015
Parent
2014
Issue
Price
No.
$
No.
$
38,653,003
4,145,082
18,950,003
778,115
$0.15
$0.12
$0.20
2,500,000
375,000
-
-
7,132,354
1,069,853
12,918,000
2,583,600
-
-
6,785,000
1,357,000
Issue of shares for ‘Lewis prospect’ funding
$0.12
833,333
$0.10
3,966,000
-
100,000
396,600
(20,350)
-
-
-
-
-
(573,633)
Placement of shares
Share issue costs
Balance at end of year
Movement in options on issue
Balance at the beginning of the year
Bonus options issued on 28/02/14
Bonus options expired 31 January 2015
Balance at the end of the year
53,084,690
6,066,185
38,653,003
4,145,082
Consolidated
2015
No.
19,326,512
-
(19,326,512)
Parent
2014
No.
-
19,326,512
-
-
19,326,512
The unlisted options were exercisable at $0.30 on or before 31 January 2015 and expired unexercised.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
-37-
Kin Mining NL
NOTE 17: FINANCIAL INSTRUMENTS
Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximising
the return to stakeholders through the optimisation of the debt and equity balance.
The Group’s overall strategy remains unchanged from 2014.
The capital structure of the Group consists of debt, cash and cash equivalents and equity attributable to equity holders of the
parent, comprising issued capital, reserves and retained earnings.
None of the Group’s entities are subject to externally imposed capital requirements.
Operating cash flows are used to maintain and expand operations, as well as to make routine expenditures such as tax,
dividends and general administrative outgoings.
Gearing levels are reviewed by the Board on a regular basis in line with its target gearing ratio, the cost of capital and the risks
associated with each class of capital.
Categories of financial instruments
Financial assets
Cash and cash equivalents
Other financial assets
Financial liabilities
Trade and other payables
Borrowings
Other financial liabilities
Consolidated Parent
2014
$
2015
$
118,207
126,949
245,156
405,378
2,790,737
57,345
3,253,460
173,355
167,852
341,207
190,250
-
-
190,250
The fair values of the Company’s financial assets and liabilities approximate their carrying values.
Financial risk management objectives
The Group is exposed to market risk (including currency risk, fair value interest rate risk and price risk), credit risk, liquidity risk
and cash flow interest rate risk.
The Group seeks to minimise the effect of these risks, by using derivative financial instruments to hedge these risk exposures.
The use of financial derivatives is governed by the Group’s policies approved by the board of directors, which provide written
principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial
instruments, and the investment of excess liquidity. Compliance with policies and exposure limits is reviewed by management
on a continuous basis. The Group does not enter into or trade financial instruments, including derivative financial instruments,
for speculative purposes.
Market risk
There has been no change to the Company’s exposure to market risks or the manner in which it manages and measures the
risk from the previous period.
Interest rate risk management
The Company’s exposures to interest rate on financial assets and financial liabilities are detailed in the liquidity risk
management section of this note.
Equity price risk
The Company is not exposed to any equity price risk as it has no investments in such assets.
Kin Mining NL
-38-
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 17: FINANCIAL INSTRUMENTS (CONT’D)
Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group.
The Group has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral where
appropriate, as a means of mitigating the risk of financial loss from defaults. The Group only transacts with entities that are
rated the equivalent of investment grade and above. This information is supplied by independent rating agencies where
available and, if not available, the Group uses publicly available financial information and its own trading record to rate its
major customers. The Group’s exposure and the credit ratings of its counterparties are continuously monitored and the
aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by
counterparty limits that are reviewed and approved by the risk management committee annually.
The Group does not have any significant credit risk exposure to any single counterparty or any Group of counterparties having
similar characteristics. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties
are banks with high credit ratings assigned by international credit rating agencies.
The carrying amount of financial assets recorded in the financial statements, net of any allowance for losses, represents the
Group’s maximum exposure to credit risk without taking account of the value of any collateral obtained.
Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the board of directors, who have built an appropriate liquidity
risk management framework for the management of the Group’s short, medium and long-term funding and liquidity
management requirements. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve
borrowing facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial
assets and liabilities.
The following table details the Company’s and the Group’s expected contractual maturity for its non-derivative financial
liabilities. These have been drawn up based on undiscounted contractual maturities of the financial liabilities based on the
earliest date the Group can be required to repay. The tables include both interest and principal cash flows.
Consolidated
Weighted
average
interest
rate
%
Less than
1 month
$
1 – 3
months
$
3 months –
1 year
$
1 – 5 years
$
5+ years
$
0.05
-
-
118,207
-
Parent
Weighted
average
interest
rate
%
Less than
1 month
$
1 – 3
months
$
3 months –
1 year
$
1 – 5 years
$
5+ years
$
2.0
-
-
173,355
-
-
30 June 2015
Variable interest rate instruments
30 June 2014
Variable interest rate instruments
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
-39-
Kin Mining NL
NOTE 18: COMMITMENTS AND CONTINGENCIES
Exploration expenditure commitments
The Group has certain commitments to meet minimum expenditure requirements on the mineral exploration assets it has an
interest in. Outstanding exploration commitments are as follows:
Within one year
After one year but not more than five years
More than five years
Consolidated
2015
$
2,690,821
-
-
2,690,821
Parent
2014
$
720,402
42,481
-
762,883
The Company has no contingent liabilities or assets for the years ended 30 June 2015 or 30 June 2014.
NOTE 19: RELATED PARTY DISCLOSURE
The consolidated financial statements include the financial statements of Kin Mining NL and the subsidiaries listed in the
following table.
Navigator Mining Pty Ltd
% Equity interest
Parent Investment
Country of
incorporation
Australia
2015
%
100
2014
%
-
2015
$
2,925,000
2014
$
-
Kin Mining NL is the ultimate Australian parent entity and ultimate parent of the Group.
Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been
eliminated on consolidation and not disclosed in this note. Details of transactions between the Group and other related
entities are disclosed below.
During the previous year, the Company acquired various interests in mining tenements from a director, Mr Trevor Dixon (or
his related entities). There were no such transactions in the current year.
Issue of vendor shares
-
- Cash
(i)
(i)
4,592,500 shares at the IPO issue price of 20c per share.
Loans from related parties
Loans from key management personnel (i)
Consolidated
2015
$
-
-
-
Parent
2014
$
918,500
26,500
945,000
Consolidated Parent
2014
$
-
2015
$
1,350,549
(i) Of these loans, an amount of $1,137,222 is secured against the assets of the Company, other than its shares in Navigator
Mining Pty Ltd. Further details of loans from key management personnel are disclosed in Note 15.
-40-
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 20: PARENT ENTITY DISCLOSURES
Financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Equity
Issued capital
Accumulated losses
Total equity
Financial performance
Loss for the year
Other comprehensive income
Total comprehensive loss
NOTE 22: AUDITOR’S REMUNERATION
The auditor of Kin Mining NL is HLB Mann Judd.
Auditor of the parent entity
Audit or review of the financial statements
Other services – preparation of investigating accountant’s report
Kin Mining NL
2015
$
2014
$
245,156
7,189,997
7,435,153
341,207
3,259,318
3,600,525
1,812,148
1,440,188
3,252,336
190,250
-
190,250
6,066,185
(1,883,368)
4,182,817
4,145,082
(734,807)
3,410,275
2015
$
(1,148,561)
-
(1,148,561)
2014
$
(615,749)
-
(615,749)
Consolidated
2015
$
23,000
-
23,000
Parent
2014
$
18,200
7,475
25,675
NOTE 23: KEY MANAGEMENT PERSONNEL
The aggregate compensation made key management personnel of the Group is set out below:
Short-term employee benefits
Post-employment benefits
Consolidated Parent
2014
$
352,946
16,186
2015
$
463,432
22,990
486,422
369,132
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
-41-
Kin Mining NL
NOTE 24: Subsequent events
On 3 August 2015, the Company announced that it has received mining approval from the Department of Mines and Petroleum
(DMP) to carry out mining activities on Mining Leases M37/86, M37/227, M37/277, M37/300 and M37/428, which include a
mine closure plan at Lewis. The Mining Proposal has been assessed by the Departments of Water, Aboriginal Affairs,
Environmental Regulation and amendments to the schedule of conditions attached to the Mining Leases have been
established by the DMP.
The Company also announced on 3 August 2015 that Kin and Advanced Mining & Civil Pty Ltd (“AMC”) have entered into a
Memorandum of Understanding (“MOU”) to provide open cut mining and civil earthmoving activities at Lewis and the Leonora
Gold Project under certain Terms & Conditions, including:
That AMC commits to invest $500,000 in Kin Mining NL via a staged placement of shares;
Kin commits to provide AMC with up to $2 million of open cut mining and civil earthmoving activities in accordance
with AMC’s schedule of rates and Load and Haul tender provided to the company, subject to Kin receiving all
regulatory approvals and completing all resource modelling to its satisfaction;
Kin provides all fuel for the mining operation at Lewis; and
Kin provides a first right of refusal to AMC over any open cut mining and civil earthmoving activities at its Leonora
Gold Project during the next 24 months.
Furthermore, the Company announced that the $1 million loan provided by Mr Fritz Fitton, the company’s Technical Director,
to assist with the acquisition of the Leonora Gold Project in October 2014 would be extended for a further 12 month term
commencing on 24 October 2015 on the same terms and interest rate as previously announced.
On 18 September 2015, the Company raised $189,000 under the Share Purchase Plan (“SPP”), which together with a
placement of $258,600 on 17 August 2015 and a placement prior to balance date of $396,609 brought the total funds raised
from the SPP and Placements to approximately $844,200 (before costs). The Placement and SPP were completed at $0.10
per share with a one for two attaching unlisted option exercisable at $0.20 expiring on 31 August 2017.
On 8 September 2015, 2,950,000 shares at $0.10c and 1,475,000 unlisted options expiring on 31 August 2017 (exercisable
at $0.20c) were issued to the Directors in lieu of outstanding loans and fees.
-42-
Kin Mining NL
DIRECTORS’ DECLARATION
1.
In the opinion of the directors of Kin Mining NL (the ‘Company’):
a.
the accompanying financial statements and notes are in accordance with the Corporations Act 2001 including:
i.
ii.
giving a true and fair view of the Group’s financial position as at 30 June 2015 and of its performance for
the year then ended; and
complying with Australian Accounting Standards, the Corporations Regulations 2001, professional
reporting requirements and other mandatory requirements.
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become
due and payable.
the financial statements and notes thereto are in accordance with International Financial Reporting Standards
issued by the International Accounting Standards Board.
b.
c.
2.
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 year ended 30 June 2015.
This declaration is signed in accordance with a resolution of the board of directors.
Trevor John Dixon
Managing Director
______________________________
Dated this 29th day of September 2015
-43-
Kin Mining NL
INDEPENDENT AUDITOR’S REPORT
To the members of Kin Mining NL
Report on the Financial Report
We have audited the accompanying financial report of Kin Mining NL (“the Company”), which comprises the
consolidated statement of financial position as at 30 June 2015, the consolidated statement of comprehensive
income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the
year then ended, notes comprising a summary of significant accounting policies and other explanatory
information, and the directors’ declaration for the Group. The Group comprises the company and the entity it
controlled at the year’s end or from time to time during the financial year.
Directors’ responsibility for the financial report
The directors of the company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that is free from
material misstatement, whether due to fraud or error.
In Note 1(c), the directors also state, in accordance with Accounting Standard AASB 101: Presentation of
Financial Statements, that the financial report complies with International Financial Reporting Standards.
Auditor’s responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in
accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical
requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance
whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the
risks of material misstatement of the financial report, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the Group’s preparation and fair presentation of
the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made by the
directors, as well as evaluating the overall presentation of the financial report.
Our audit did not involve an analysis of the prudence of business decisions made by directors or management.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Independence
In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.
HLB Mann Judd (WA Partnership) ABN 22 193 232 714
Level 4, 130 Stirling Street Perth WA 6000. PO Box 8124 Perth BC 6849 Telephone +61 (08) 9227 7500. Fax +61 (08) 9227 7533.
Email: hlb@hlbwa.com.au. Website: http://www.hlb.com.au
Liability limited by a scheme approved under Professional Standards Legislation
HLB Mann Judd (WA Partnership) is a member of
International, a worldwide organisation of accounting firms and business advisers.
-44-
Kin Mining NL
Auditor’s opinion
In our opinion:
(a)
the financial report of Kin Mining NL is in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2015 and of its
performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; and
(b)
the financial report also complies with International Financial Reporting Standards as disclosed in Note
1(c).
Emphasis of matter
Without qualifying our opinion, we draw attention to Note 1(e) to the financial report which states that the Group
is dependent on the completion of future capital raisings to raise the required funds to meet ongoing working
capital and expenditure commitments. Should these equity raisings not be completed, there is a material
uncertainty that may cast significant doubt as to whether the Group will continue as a going concern and,
therefore, whether it will realise its assets and extinguish its liabilities in the normal course of business and at
the amounts stated in the financial report.
Report on the Remuneration Report
We have audited the remuneration report included in the directors’ report for the year ended 30 June 2015.
The directors of the company are responsible for the preparation and presentation of the remuneration report in
accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
remuneration report, based on our audit conducted in accordance with Australian Auditing Standards.
Auditor’s opinion
In our opinion the remuneration report of Kin Mining NL for the year ended 30 June 2015 complies with section
300A of the Corporations Act 2001.
HLB Mann Judd
Chartered Accountants
Perth, Western Australia
29 September 2015
L Di Giallonardo
Partner
-45-
Kin Mining NL
ADDITIONAL SECURITIES EXCHANGE INFORMATION
(a) Distribution schedule and number of holders of equity securities at 21 September 2015
Fully Paid Ordinary Shares (KIN)
111
31
114
196
80
532
1 -1,000
1,001 -
5,000
5,001 –
10,000
10,001 –
100,000
100,001
and over
Total
The number of holders holding less than a marketable parcel of fully paid ordinary shares at 21 September 2015
is 128.
(b) 20 largest holders of quoted equity securities as at 21 September 2015
The names of the twenty largest holders of fully paid ordinary shares (ASX Code: KIN) as at 21 September
2015 are:
Rank Name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Trevor Dixon
Giuseppe Graziano
HSBC Custody Nominees (Australia) Limited
Rogue Investments Pty Ltd
Ernio Eolini
Marvyn John Fitton>
Advanced Mining & Civil Pty Ltd < AMC Unit A/C>
Dr Ingrid Van Bremen
Pathways Corporate Pty Ltd
Mr Christopher Robert Rogerson
V M Drilling PTY LTD >
Harmanis Holdings Pty Ltd < The Harman Family A/C>
Botsis Holdings Pty Ltd
Harmanis Holdings Pty Ltd
A.C.N 112 940 057 Pty Ltd
Mr Eric Russell Henderson
Orbit Drilling Pty Ltd
Mr Michael Kenneth Rogerson
Chin Nominees Pty Ltd < Chin Superfund A/C>
Rosart Investments Pty Ltd < Arthur Martin S/F A/C>
Total
Number
Percentage
8,947,001
14.786%
5,826,668
9.629%
2,500,000
4.132%
2,030,000
3.355%
2,000,000
3.305%
1,744,000
2.932%
1,500,000
2.479%
1,280,000
2.115%
1,175,000
1.942%
1,116,000
1.844%
1,060,687
1.753%
1,030,000
1.702%
1,000,000
1.653%
9700,000
1.603%
833,333
1.377%
796,964
1.317%
673,350
1.113%
600,000
0.992%
600,000
0.992%
580,000
0.959%
44,993,003
59.978%
-46-
Kin Mining NL
ADDITONAL SECURITIES EXCHANGE INFORMATION
(c) Substantial Shareholders
Holder
1 Trevor Dixon
2 Giuseppe Graziano
Shares
Percent
9,008,001
7,001,688
15.37%
11.94%
(d) Unquoted Securities
The number of unquoted securities on issue at 21 September 2015:
Unquoted Securities
Number on Issue
Exercise Price
Unquoted Options
5,696,000
20c
Expiry Date
31/07/2017
(e) Restricted Securities as at 21 September 2015
Holder
1 Trevor Dixon
Restriction
Period
Shares
Release
Date
24 Months
6,572,500 02/10/2015
2 Giuseppe Graziano
24 Months
4,850,000 02/10/2015
3 Maryvn Fitton
4 Saruman Holdings PTY LTD
5 A & A Cannavo Nominees PTY LTD
24 Months
24 Months
24 Months
Total
950,000 02/10/2015
475,000 02/10/2015
375,000 02/10/2015
13,222,500
(f) Tenement Schedule
Tenement information as required by listing rule 5.3.3
DESDEMONA - 20 kms South of Leonora Townsite
Tenement ID
E37/1152
Ownership
100%
E37/1156
E37/1201
E37/1203
P37/8500
P37/8504
E40/283
E40/285
E40/320
E40/323
100%
100%
100%
100%
100%
100%
100%
0%
100%
Status
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Forfeited 03/07/2015
Granted
-47-
DESDEMONA CONTINUED
Tenement ID
Ownership
M40/330
P37/8350
P37/8390
P40/1263
P40/1283
P40/1284
P40/1285
P40/1286
P40/1287
100%
100%
100%
100%
100%
100%
100%
100%
100%
Kin Mining NL
Status
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
IRON KING / VICTORY - 45 kms North North West of Leonora
Tenement ID
Ownership
P37/7175
P37/7176
P37/7177
P37/7194
P37/7195
P37/7196
P37/7197
P37/7198
P37/8455
P37/8458
P37/8459
P37/8460
P37/8461
Tenement ID
M39/279
P39/4913
P39/4914
P39/4915
P39/4916
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
MURRIN MURRIN - 50 kms East of Leonora
Ownership
66.66%
100%
100%
100%
100%
Status
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Status
Granted
Granted
Granted
Granted
Granted
Kin Mining NL
-48-
MURRIN MURRIN CONTINUED
Tenement ID
Ownership
P39/4980
P39/5112
P39/5113
P39/5164
P39/5165
P39/5176
P39/5177
P39/5178
P39/5179
P39/5180
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Tenement ID
Ownership
REDCASTLE - 65 kms South West of Laverton
P39/4528
P39/4550
P39/4593
P39/4834
P39/4839
P39/5097
P39/5098
P39/5099
P39/5100
P39/5101
P39/5102
P39/5103
P39/5105
P39/5267
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Tenement ID
Ownership
MT FLORA - 50 kms East North East of Leonora
P39/4617
P39/4618
100%
100%
Status
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Status
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Status
Granted
Granted
Kin Mining NL
-49-
MT FLORA CONTINUED
Tenement ID
Ownership
P39/4619
P39/4620
P39/4621
P39/4912
P39/4960
P39/4961
P39/5181
P39/5182
P39/5183
P39/5185
P39/5463
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Tenement ID
Ownership
RANDWICK - 45 kms North East of Leonora
P37/7283
P37/7284
P37/7806
P37/7995
P37/7996
P37/7997
P37/7998
P37/7999
P37/8000
P37/8001
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Tenement ID
Ownership
RAESIDE - 8 kms East of Leonora Townsite
E37/1103
E37/868
L37/125
L37/77
M37/1298
100%
100%
100%
100%
100%
Status
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Status
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Status
Granted
Granted
Granted
Granted
Granted
-50-
Kin Mining NL
CARDINIA / MERTONDALE - 35 kms East & North East of Leonora Townsite
Tenement ID
Ownership
L37/106
L37/127
L37/128
L37/195
L37/196
L37/65
M37/1284
M37/223
M37/227
M37/231
M37/232
M37/233
M37/277
M37/299
M37/300
M37/316
M37/317
M37/422
M37/428
M37/487
M37/594
M37/646
M37/720
M37/81
M37/82
M37/86
M37/88
P37/7241
P37/7242
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
80%
100%
100%
100%
100%
100%
100%
100%
Status
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
-51-
CARDINIA/MERTONDALE CONTINUED
Tenement ID
Ownership
P37/7243
P37/7244
P37/7245
P37/7246
P37/7247
P37/7248
P37/7249
P37/7250
P37/7251
P37/7252
P37/7253
P37/7254
P37/7255
P37/7256
P37/7257
P37/7258
P37/7259
P37/7260
P37/7261
P37/7262
P37/7263
P37/7264
P37/7265
P37/7266
P37/7267
P37/7268
P37/7269
P37/7270
P37/7271
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Kin Mining NL
Status
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
-52-
CARDINIA/MERTONDALE CONTINUED
Tenement ID
Ownership
P37/7272
P37/7273
P37/7274
P37/7275
P37/7276
P37/7277
P37/7655
P37/7656
P37/7657
P37/7658
P37/7659
P37/7660
P37/7661
P37/7662
P37/7663
P37/7664
P37/7665
P37/7666
P37/7667
P37/7668
P37/7669
P37/7670
P37/7671
P37/7672
P37/7673
P37/7674
P37/7675
P37/7697
P37/7698
100%
100%
80%
80%
80%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Kin Mining NL
Status
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
-53-
CARDINIA/MERTONDALE CONTINUED
Tenement ID
Ownership
P37/7699
P37/7700
P37/7701
P37/7702
P37/7703
P37/7704
P37/7705
P37/7706
P37/7707
P37/7708
P37/7711
P37/7712
P37/7713
P37/7714
P37/7715
P37/7716
P37/7736
P37/7737
P37/7738
P37/7756
P37/7757
P37/7758
P37/7759
P37/7760
P37/7761
P37/7805
P37/7891
P37/7892
P37/7893
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Kin Mining NL
Status
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
-54-
CARDINIA/MERTONDALE CONTINUED
Tenement ID
Ownership
P37/7953
P37/7954
P37/7969
P37/7970
P37/7971
P37/7972
P37/7973
P37/7974
P37/7975
P37/7976
P37/7977
P37/7978
P37/7979
P37/7980
P37/7981
P37/7982
P37/7983
P37/7984
P37/7985
P37/7986
P37/7987
P37/7988
P37/7990
P37/8007
P37/8043
P37/8044
P37/8045
P37/8057
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
0%
0%
0%
100%
Kin Mining NL
Status
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Expired 15/08/2015
Expired 15/08/2015
Expired 15/08/2015
Granted
-55-
CARDINIA/MERTONDALE CONTINUED
Tenement ID
Ownership
P37/8196
P37/8199
P37/8209
P37/8210
P39/5172
100%
100%
100%
100%
0%
Kin Mining NL
Status
Granted
Granted
Granted
Granted
Expired 15/08/2015