ABN 51 127 297 170
Metal Bank Limited
and its controlled entities
Annual Financial Report
For the year ended
30 June 2017
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
CONTENTS
Letter from the Chair
Review of Operations
Corporate Governance
Directors’ Report
Auditor’s Independence Declaration
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Audit Report to the Members of Metal Bank Limited
Additional Information for Listed Companies
Corporate Directory
1
2 – 11
12
13 – 19
20
21
22
23
24
25 – 49
50
51 – 53
54 – 56
57
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
LETTER FROM THE CHAIR
Dear Shareholder
On behalf of the Directors of Metal Bank Limited (Metal Bank, MBK or the Company), I am pleased to report
on the activities of the Company for the year ended 30 June 2017.
Our focus during the year has been the Triumph gold project with discoveries of high-grade gold
mineralisation at the New Constitution and Handbrake Hill prospects and further high-grade mineralisation
intersected at the Bald Hill prospect.
An induced polarisation (IP) survey completed during the year identified many new targets. This together
with the bulk tonnage style Gold-Copper-Molybdenum mineralisation intersected in drilling, has provided
additional confidence that the Triumph project potentially hosts a multi-million ounce gold deposit.
Our focus now is to define near surface high grade gold resources at the priority targets identified at Triumph
and complete a feasibility in respect of an initial open pit mining operation. In addition, we will continue to
target the bulk gold tonnage potential through various exploration initiatives, including further drilling on the
most promising targets within an extensive pipeline of additional untested targets.
While we undertook limited exploration at the Eidsvold project during the year, recent drill results have
certainly reaffirmed our confidence that the project holds enormous potential beneath the sediment cover,
along strike from an historical goldfield.
We look forward to substantial progress in the year ahead and we thank our shareholders for their ongoing
support.
Inés Scotland
Non-executive Chair
28 September 2017
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METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
REVIEW OF OPERATIONS
REVIEW OF OPERATIONS
Metal Bank’s exploration strategy is to use our core exploration competence to define gold resources
associated with overlooked and underexplored intrusion related gold systems of eastern Australia. This
strategy is de-risked further by focusing on brownfields exploration centred on historical goldfields.
Primary focus is the Triumph gold project where Metal Bank has achieved discovery success on
multiple prospects during the past 12 months and is now moving towards JORC resource status.
Secondary focus is the Eidsvold gold project where Metal Bank has commenced exploration under
sediment cover around an historical goldfield with 100,000oz of past production.
In parallel, Metal Bank continues to review advanced and near production resource opportunities
which have the potential to significantly enhance the current project portfolio and reduce the
timeline towards production.
Metal Bank has an experienced Board with a proven track record in the discovery of mineral resources and
company development through to production. The operations of the consolidated entity are as described
below:
Two Gold Projects - Eastern Australia
MBK holds two gold projects prospective for intrusion related gold mineralisation within the northern New
England Orogen of Eastern Australia. This region hosts several gold mines including the Cracow (3Moz Au),
and Mt Rawdon (2Moz Au) gold mines as well as the historical Mt Morgan deposit (8Moz Au) shown in
Figure 1. Figure 2 below shows the intrusion related gold model and MBK projects.
The Triumph project represents the highest priority for MBK. High grade gold mineralisation intersected in
drilling this year provides strong support for multi-million ounce gold potential within a large under-explored
gold system dominantly concealed by shallow cover.
The Eidsvold project is centred on a historical goldfield (100,000oz Au historical production) with minimal
previous exploration completed beneath the surrounding sedimentary cover in the district. Regional airborne
magnetics provides support for large untested targets beneath the cover, with initial drill testing having
commenced.
Results from a field programme completed at the Mt Mackenzie project in north Queensland did not warrant
further follow-up and the project was subsequently relinquished during the year.
Figure 1: Location of MBK gold projects in Eastern Australia
2
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
REVIEW OF OPERATIONS
.
Figure 2: Intrusion related gold model for the Triumph and Eidsvold projects in Eastern Australia
Triumph Project (100% MBK)
Discovery of high-grade Au-Ag mineralisation at New Constitution prospect
Discovery of high-grade Au-Ag mineralisation in drilling at Handbrake Hill prospect
Further high-grade Au-Ag mineralisation intersected at Bald Hill prospect
Widespread Au-Ag-Zn mineralisation intersected at New Constitution prospect consistent
with the ‘outer zone’ of a bulk tonnage gold deposit
Bulk tonnage style Au-Cu-Mo mineralisation intersected in drilling at Chief Adachi prospect
Compelling link between widespread high-grade Au and new Au-Cu-Mo bulk tonnage targets
The Triumph project (135km2) is located within the historical high-grade Norton goldfield, mined in the late
1800’s and again in the 1990’s, between the Mt Rawdon (2Moz Au) gold mine and the historical Mt Morgan
(8Moz Au and 0.4Mt Cu) mine in the Northern New England Orogen, south-east Queensland (Figure 1 above).
Exploration by MBK on the Triumph project has discovered a large underexplored gold system around an
historical goldfield. The 15km2 gold system is 95% concealed beneath shallow sediment cover and MBK has a
unique opportunity and ‘first mover’ advantage to generate and drill test tier one and two targets on this
previously unrecognised large gold system. Systematic exploration over the outcropping areas, which
constitute approximately 5% of the entire gold camp, has defined multiple high-grade gold targets.
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METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
REVIEW OF OPERATIONS
Priority Gold Targets
During the year, MBK’s principal focus was at Triumph where near surface, high-grade Au-Ag drill results were
returned across priority targets located over an extensive gold system predominantly concealed by shallow
cover. The results from the first three priority targets, New Constitution, Bald Hill and the Handbrake Hill
prospects support MBK’s view that this underexplored and overlooked gold system holds significant upside
to potentially host a multi-million ounce gold deposit and to define a maiden gold resource capable of
sustaining an initial open pit mining operation.
Reverse Circulation drilling (RC) and Diamond drilling (DD) programmes were completed at the New
Constitution and Bald Hill prospects to follow-up and investigate the geometry of near surface gold
mineralisation intersected in previous drilling.
The programme at the New Constitution prospect achieved a total of six DD holes for 874 metres of drilling
and thirty-three RC holes for 3,145 metres of drilling.
Significant results from the drill programmes at New Constitution include1:
10m @ 26.9g/t Au, 165g/t Ag and 6.0% Zn from 51m (open) including
o 7m @ 36.3g/t Au, 220g/t Ag and 7.9% Zn from 51m (open – note an historical stope void
was intersected from 41.5m to 51m)
3m @ 8.1 g/t Au, 79g/t Ag from 35m
2m @ 4.9g/t Au, 11g/t Ag from 18m
1m @ 20.4g/t Au, 12g/t Ag from 264m
2m @ 6.2g/t Au, 44g/t Ag from 298m
4m @ 4.1/t Au, 15g/t Ag and 0.1% Zn from 36m
3m @ 6.2g/t Au, 55g.t Ag, 0.1% Cu, 0.2% Pb, 0.7% Zn from 56m
Follow-up drilling at New Constitution has intersected a new high-grade Au-Ag vein system associated with
an induced polarisation (IP) geophysical anomaly, 200m below shallow historical underground workings and
parallel to the ‘discovery’ structure where previous high grade results were encountered. This new zone
extends over 200m of strike (open in all directions) indicating high grade potential in the order of >10 - 20g/t
Au and is parallel to the high grade ‘discovery’ structure at New Constitution (refer to Figure 3) where initial
drilling in Q3 2016 returned a high-grade drill intersection of 10m @ 26.9g/t Au, 165g/t Ag and 6.0% Zn from
51m.
Across the New Constitution prospect, multiple interpreted target zones have been identified which
collectively could indicate over 3km of strike potential, the majority of which is concealed by shallow cover
(<5m).
The widespread occurrences of Zn associated with near surface high-grade Au-Ag mineralisation at New
Constitution is typical of the ‘outer halo leakage’ of many large intrusion related gold deposits of eastern
Australia. Exploration to date has only investigated the peripheral or ‘outer zones’ of a potentially larger gold
system. Further drilling is planned at New Constitution to investigate IP geophysical targets interpreted as
high-grade gold mineralisation extensions.
1 MBK ASX Releases 05 Sept 2016, 28 Nov 2016, 24 Jan 2017, 01 Mar 2017
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METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
REVIEW OF OPERATIONS
Figure 3: Drill plan of New Constitution prospect high grade structures and new priority targets
The programme at the Bald Hill prospect achieved a total of seven DD holes for 946 metres of drilling and
nineteen RC holes for 1,540 metres of drilling.
Significant results from the drill programmes at Bald Hill include2
7m @ 4.9g/t Au, 27g/t Ag, 0.2% Cu from 11m
o
incl. 2m @ 12.7g/t Au, 74g/t Ag, 0.5% Cu from 11m
8m @ 2.0g/t Au, 23g/t Ag from 27m
14m @ 2.6/t Au, 34g/t Ag from 18m
o
Incl. 2m @ 10.6g/t Au, 152g/t Ag from 25m
10m @ 3.0g/t Au, 24g/t Ag, 0.2% Cu from 16m
6m @ 2.0g/t Au, 9g/t Ag, 0.1% Zn from 35m
14m @ 1.0g/t Au, 10g/t Ag, 0.1% Cu from 12m
3m @ 4.8g/t Au, 12g/t Ag from 18m
1m @ 6.5g/t Au, 15g/t Ag, 0.5% Zn from 23m
9m @ 2.4g/t Au, 32g/t Ag, 0.1% Cu from 27m
The drill results show the continuity of near surface ore grade gold mineralisation (<40m below surface)
extending over 200m of strike (Figure 4). This zone shows an excellent correlation with an IP geophysical
anomaly which extends to greater than 300m depth, (the limit of the survey /model).
Diamond drilling at Bald Hill prospect highlights that Au-Ag-Cu mineralisation is associated with cross-cutting
high-grade vein systems similar to the high-grade structures encountered elsewhere on the Triumph Project.
Gold mineralisation has also been observed along a general east west trend for over 2.4km. Detailed IP
geophysics has been completed over most of the 2.4km Bald Hill trend identifying new gold targets which
are coincident with historical high-grade gold rock chip samples (up to 180g/t Au). Surface geochemical
2 MBK ASX Releases 14 Sept 2016, 17 Jan 2017, 01 Mar 2017
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METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
REVIEW OF OPERATIONS
sampling (soil and rock chip) and drilling is planned at Bald Hill to test cross-cutting structures identified in
the IP geophysics survey.
Figure 4: Drill plan of Bald Hill prospect high grade structures and new priority targets
Recent changes to the environmental conditions associated with the Triumph project, removing the 300m
buffer zone, now allow exploration and drilling to be conducted up to the boundary of the National Park
situated in the south-east of the project. These changes open up additional priority targets on the project
including the extensions of the Bald Hill prospect mineralisation.
Regional Gold Targets
As part of regional exploration two shallow RC drill holes for 96 metres of drilling were completed on the
Harmony prospect3 as an initial investigation of a bedrock geochemical anomaly (Au-Ag-Bi-Cu-Mo). The drill
holes intersected anomalous pathfinder geochemistry and further follow-up is warranted on this broad target
concealed beneath shallow cover (<3m).
At Handbrake Hill prospect4, results from two shallow RC drill hole now highlight a new target associated
with a >800m long magnetic low almost entirely concealed beneath <3m of cover. Results from MBK drilling
returned 1m @ 6.1g/t Au, 14g/t Ag, 0.8% Zn from 39m within a broad mineralised envelope of
10m @ 1.2g/t Au, 8g/t Ag, 0.2% Zn from 32m associated with the magnetic low. An historical drill hole, 600m
to the south, intersected further high-grade mineralisation associated with the magnetic low with
3m @ 10.5g/t Au, 23g/t Ag, 0.6% Zn from 31m (2007).
A detailed gradient array IP geophysical survey was completed over the central portion of the Triumph project
highlighting many new targets with a similar geophysical response to known areas of mineralisation such as
Bald Hill and New Constitution. Eight diamond drill holes for 1,012m of drilling were completed on IP
geophysical targets concealed by shallow cover. The best drill results were returned from the Chief Adachi
3 MBK ASX Release 14 Sept 2016
4 MBK ASX Release 17 Jan 2017
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METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
REVIEW OF OPERATIONS
prospect where a 20m zone of intense feldspathic alteration containing abundant sulfide-filled vuggy cavities,
including molybdenum (Mo), chalcopyrite (Cu) and sphalerite (Zn), was intersected associated with a low
resistivity IP geophysical response. This style of mineralisation and alteration is typical of leakage above the
‘roof zone’ of a potentially much larger mineralised Au-Cu-Mo system concealed by shallow cover and the
exploration results provide a direct link between the widespread high-grade Au-Ag mineralisation and bulk
tonnage style mineralisation. Importantly for the Triumph project the geological indication of these results is
that the project can host large bulk tonnage systems similar to other multi-million ounce gold deposits of
Eastern Australia.
Following the discovery of the Chief Adachi mineralisation, a reinterpretation of the IP geophysics data
focussing on broad IP resistivity lows, has identified nine new Au-Cu-Mo bulk tonnage exploration targets
within a 4km x 2km corridor, including the Chief Adachi prospect. These targets incorporate the latest drilling
and IP geophysics and are further supported by existing geological, geochemical and airborne magnetic
geophysical evidence.
A conceptual exploration model of the Triumph intrusion-related mineralised system is shown in Figure 5.
This 4km long section extends across the project area from New Constitution in the southwest to the
Bonneville prospect in the northeast and highlights the link between the different styles of mineralised high-
grade and bulk tonnage intrusion-related exploration targets at the Triumph Project.
Figure 5: Schematic bulk tonnage targets model on Triumph project (section location shown in Figure 6).
Summary
While MBK’s immediate focus is to define near surface high-grade gold resources at its priority targets in
support of an initial open pit mining operation, there is an extensive pipeline of additional untested targets
also planned for initial drill testing over the next 12 months. In conjunction with this strategy, MBK plans to
target the bulk tonnage gold potential which is likely associated with the causative intrusives that are driving
the widespread high-grade mineralisation within the system.
The geological model for the Triumph gold camp now provides strong indication for a bulk tonnage gold
target. Large intrusion related gold systems in eastern Australia (and around the world) are commonly zoned
in both hydrothermal alteration and multi-element geochemistry patterns. Improved understanding of the
zoning patterns within the 15km2 Triumph gold camp has directly contributed to the recent near surface high-
grade gold drilling success at Bald Hill, New Constitution and Handbrake Hill prospects and underpins
confidence in the other high priority targets.
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METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
REVIEW OF OPERATIONS
Follow-up diamond drilling has commenced at Chief Adachi targeting the IP geophysics concealed by shallow
cover. Reverse circulation drilling is also underway to continue to evaluate the high-grade Au-Ag targets at
Bald Hill, Handbrake Hill, Big Hans and New Constitution prospects.
A pipeline of targets has been identified from the exploration completed to date and summarised in Table 1.
Location of the targets is shown in Figure 6.
Table 1: Triumph project pipeline of targets
Target
Attributes
Highlights
D
E
C
N
A
V
D
A
S
D
L
E
I
F
N
W
O
R
B
S
D
L
E
I
F
N
E
E
R
G
Bald Hill
Shallow high-grade Au-Ag - >400m strike
(open)
Up to 15m @ 10.3g/t Au, 76g/t Ag, 0.5% Cu from 9m in drilling
New Constitution
Shallow high-grade Au-Ag >400m strike
(open) – multiple parallel high grade
structures
Up to 10m @ 26.9g/t Au, 165g/t Ag and 6% Zn from 51m in
drilling
Advance
Historical gold mine (max. depth 100m),
no previous drilling
4500oz Au at 94g/t Au historical production. No previous
drilling
Big Hans – Super Hans
New corridor 1.5km x 400m
Up to 4m @ 3.67g/t Au from 22m and 20.1g/t Au in rock chips
Harmony
>1km strike potential bulk tonnage target
Up to 62.8g/t Au and 161g/t Ag in rock chip
Bonneville
>1km strike potential bulk tonnage target
Up to 255g/t Au in float rock chips with coincident IP anomaly.
No previous drilling
Bald Hill East
1.7km extension to Bald Hill
500m long >100ppb Au soil anomaly (open)
New Constitution
Bulk tonnage target associated with IP
resistivity low under cover
New Constitution drilling adjacent contains Au-Ag-Zn as halo to
bulk tonnage target. Rock chip up to 47g/t Au in rare basement
windows
Handbrake Hill
>1km strike potential
4m @ 10.55g/t Au from historical drilling
Chief Adachi
1km x 300m bulk tonnage target
Intense feldspathic alteration Mo-Zn-Cu filled vughs, outer
carapace alteration to a larger system
Doughnut
250m x 250m bulk tonnage target
Up to 13g/t Au in rock chip float
Old Welcome
>800m long shear zone
Up to 32.7g/t Au in rock chip
Cattle Creek
>1km long shear zone
Up to 53.5g/t Au in rock chip
SW Moly
500m x 500m bulk tonnage target
Strong Mo soil anomaly with rock chips to 14g/t Au
Rands
Roxy
Southern extension of Bald Hill
Up to 20.3g/t Au in historical stream sediment
Coincident IP resistivity low / Magnetic
Low undercover - bulk tonnage target
IP resistivity low 200m x 200m
Resolute Find
Coincident IP resistivity low / Magnetic
Low undercover - bulk tonnage target
IP resistivity low 100m x 100m with adjacent rock chips to
6g/t Au
Drone
NE Regional
Coincident IP resistivity low / Magnetic
Low undercover - bulk tonnage target
IP resistivity low 200m x 200m
5km² untested area entirely undercover
within prospective intrusive rocks
Untested area within fertile intrusive, masked by shallow
cover. Structures and alteration identified in detailed airborne
magnetics data
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METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
REVIEW OF OPERATIONS
B’
B
Figure 6: Triumph gold camp showing prospect locations, high-grade Au-Ag structures, and bulk tonnage
targets.
Eidsvold Project (100% MBK)
IP geophysics survey (pole-dipole) completed highlighting new targets adjacent to
gold zones intersected in historical drilling
Initial drilling to test new IP geophysical targets adjacent to the historical goldfield
(100,000oz Au production) is in progress
The Eidsvold project is centred on the historical Eidsvold goldfield (100,000oz Au mined in the early 1900’s)
within the Eidsvold intrusive complex, located between the Cracow (3Moz Au) and Mt Rawdon (2Moz Au)
gold mines in the Northern New England Orogen (refer Figure 1). The Eidsvold project represents an excellent
greenfields opportunity for MBK.
Exploration by MBK to date has focused on the outcropping areas of the intrusive complex leading to the
discovery of intrusion related high-grade Au mineralisation at Mt Brady (refer to Figure 7) including
1m @ 17.4g/t Au, 90g/t Ag and 2.5% Cu5.
5 MBK ASX Release 15 April 2017
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METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
REVIEW OF OPERATIONS
Figure 7: (left) Eidsvold project showing regional geology and (right) showing regional wide-space airborne
magnetics data (400m line spacing).
Three IP geophysical pole-dipole lines, for a total length of 3.7 line km, were completed over two priority
target areas where previous regional wide spaced drilling by Newcrest in 1998 intersected anomalous zones
of gold beneath sedimentary cover.
RC drilling is planned to investigate the resultant IP geophysical targets and airborne magnetic targets
concealed by cover sediments along strike of the historical goldfield and within close proximity to the
historical drilling by Newcrest. The best results from the historical reconnaissance drilling6 completed 2km
southeast of the Eidsvold goldfield include 8m @ 0.3g/t Au associated with a 55m interval of sericite-pyrite
(± quartz) alteration beneath sedimentary cover of approximately 30m in depth.
New Opportunities
The Company continues to review new project opportunities with a view to identifying projects that fit with
its growth strategy and have the ability to add shareholder value.
The Company may also consider alternative funding structures for developing its projects which reduce risk
and add shareholder value.
Tony Schreck
Managing Director
28 September 2017
6 Newcrest Annual Report Eidsvold Project, 1998 CR30438
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METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
REVIEW OF OPERATIONS
Schedule of Tenements
Mining Tenements
Location
Percentage Interest
Roar Resources Pty Ltd (Wholly Owned Subsidiary)
Triumph Project
EPM 18486
EPM 19343
Eidsvold Project
EPM 18431
EPM 18753
EPM – Exploration Permit
Queensland
Queensland
Queensland
Queensland
100%
100%
100%
100%
Competent Persons Statement
The information in this Report that relates to Exploration Results is based on information compiled or reviewed
by Mr Tony Schreck, who is a Member of The Australasian Institute of Geoscientists. Mr Schreck is an employee
of the Company. Mr Schreck 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 Schreck consents to the inclusion in the Report of the matters based on his
information in the form and context in which it applies.
The Exploration Targets described in this report are conceptual in nature and there is insufficient information
to establish whether further exploration will result in the determination of Mineral Resources. Any resources
referred to in this report are not based on estimations of Ore Reserves or Mineral Resources made in
accordance with the JORC Code and caution should be exercised
in any external technical or
economic evaluation.
11
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
CORPORATE GOVERNANCE
Metal Bank Limited (“Metal Bank”), through its board and executives, recognises the need to establish and
maintain corporate governance policies and practices that reflect the requirements of the market regulators
and participants, and the expectations of members and others who deal with Metal Bank. These policies and
practices remain under constant review as the corporate governance environment and good practices evolve.
ASX Corporate Governance Principles and Recommendations
The third edition of ASX Corporate Governance Council Principles and Recommendations (the “Principles”)
sets out recommended corporate governance practices for entities listed on the ASX.
The Company has issued a Corporate Governance Statement which discloses the Company’s corporate
governance practices and the extent to which the Company has followed the recommendations set out in the
Principles. The Corporate Governance Statement was approved by the Board on 26 September 2017 and is
available on the Company’s website: http://metalbank.com.au/corporate-governance
12
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
DIRECTORS REPORT
Your directors present their report on Metal Bank Limited and its subsidiaries (Consolidated Entity or the
Group) for the year ended 30 June 2017.
DIRECTORS
The names of directors in office at any time during or since the end of the year are:
Current Directors
INĖS SCOTLAND
NON-EXECUTIVE
CHAIR
B App Sc
Ms Scotland was most recently the Managing Director and CEO of Ivanhoe
Australia, an ASX listed entity with a market capitalisation of $500m.
Prior to this Ms Scotland was the Managing Director and CEO of Citadel
Resource Group Limited. Ms Scotland was a founding shareholder of Citadel
and was its managing director through its growth, until its acquisition by
Equinox Minerals in January 2011.
At the time of acquisition by Equinox, Citadel was developing the Jabal Sayid
Copper Project in Saudi Arabia, had a market capitalisation of $1.3B and had
raised more than $380m on the equity markets.
Ms Scotland has worked in the mining industry for over 20 years for large scale
gold and copper companies in Australia, Papua New Guinea, USA and the
Middle East. This has included working for Rio Tinto companies, Comalco, Lihir
and Kennecott Utah Copper.
Appointed 13 August 2013.
Other current public company directorships:
None
Former directorships in the last 3 years:
St Barbara Limited
Ivanhoe Australia Limited
Citadel Resource Group Limited
ANTHONY SCHRECK
EXECUTIVE DIRECTOR
B App Sc(Geol), GDipSc,
MAIG, GAICD
Mr Schreck has 25 years of mineral exploration experience in Australia and the
South West Pacific region (Solomon Islands). He has managed large exploration
projects in challenging terrains for major companies including North Flinders
Mines, Normandy, Newmont, Anglo Gold Ashanti and Xstrata.
Mr Schreck is credited with the grassroots discovery of the multi-million ounce
Twin Bonanza gold system (Buccaneer and Old Pirate gold deposits) in the
Northern Territory. He has been key in the successful startup and management
of a number of private resource companies.
Appointed 29 November 2013.
Mr Schreck has held no other current public company directorships or former
directorships in the last 3 years.
GUY ROBERTSON
EXECUTIVE DIRECTOR
B Com (Hons), CA.
Mr Robertson has more than 30 years’ experience as Chief Financial Officer,
Company Secretary and Director of both public and private companies in
Australia and Hong Kong.
Previous roles included Chief Financial Officer/GM Finance of Jardine Lloyd
Thompson, Colliers International Limited and Franklins Limited.
13
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
DIRECTORS REPORT
GUY ROBERTSON
(CONTINUED)
Mr Robertson has over 8 years’ experience in ASX listed mineral exploration
companies and is currently a Director of Draig Resources Limited and Hastings
Technology Metals Ltd.
Appointed 17 September 2012.
Former directorships in the last 3 years:
Artemis Resources Limited
Estrella Resources Limited
Secretary
SUE-ANN HIGGINS
(Company Secretary)
BA LLB Hons ACIS GAICD
Ms Higgins is an experienced company executive who has worked for over
25 years in the mining industry including in senior legal and commercial roles
with ARCO Coal Australia Inc, WMC Resources Ltd, Oxiana Limited and
Citadel Resource Group Limited. Ms Higgins has extensive experience in
governance and compliance, mergers and acquisitions, equity capital
markets and mineral exploration, development and operations.
Appointed 21 August 2013.
Interest in the shares and options of the Company
As at the date of this report, the interests of the directors in the shares and options of Metal Bank Limited
were:
Inés Scotland
Anthony Schreck
Guy Robertson
Ordinary
Shares
96,260,780
16,709,814
-
Options
-
9,000,000
-
Performance
Rights
-
-
-
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
Other than as outlined in the Chairman’s report, there were no significant changes in the state of affairs of
the Company during the year.
PRINCIPAL ACTIVITIES
The principal activity of the Company during the financial year was mineral exploration. There have been no
significant changes in the nature of the Company’s principal activities during the financial year.
SIGNIFICANT AFTER BALANCE SHEET DATE EVENTS
There are no matters or circumstances that have arisen since the end of the financial period that have
significantly affected or may significantly affect the operations of the consolidated entity, the results of those
operations, or the state of affairs of the consolidated entity in future financial years.
LIKELY FUTURE DEVELOPMENTS AND EXPECTED RESULTS
The primary objective of Metal Bank is to continue its exploration activities on its current Triumph and
Eidsvold Projects in Australia and to continue to pursue new project opportunities as they arise.
14
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
DIRECTORS REPORT
The material business risks faced by the Company that are likely to have an effect on the financial prospects
of the Company, and how the Company manages these risks, are:
Future Capital Needs – the Company does not currently generate cash from its operations. The Company
will require further funding in order to meet its corporate expenses, continue its exploration activities and
complete studies necessary to assess the economic viability of its projects. The Company’s financial
position is monitored on a regular basis and processes put into place to ensure that fund raising activities
will be conducted in a timely manner to ensure the Company has sufficient funds to conduct its activities.
Exploration and Developments Risks – the business of exploration for gold and other minerals and their
development involves a significant degree of risk, which even a combination of experience, knowledge
and careful evaluation may not be able to overcome. To prosper, the Company depends on factors that
include successful exploration and the establishment of resources and reserves within the meaning of the
2012 JORC Code. The Company may fail to discover mineral resources on its projects and once
determined, there is a risk that the Company’s mineral deposits may not be economically viable. The
Company employs geologists and other technical specialists, and engages external consultants where
appropriate to address this risk.
Commodity Price Risk – as a Company which is focused on the exploration of gold and base and precious
metals, it is exposed to movements in the price of these commodities. The Company monitors historical
and forecast price information from a range of sources in order to inform its planning and decision making.
Title and permit risks - each permit or licence under which exploration activities can be undertaken is
issued for a specific term and carries with it work commitments and reporting obligations, as well as other
conditions requiring compliance. Consequently, the Company could lose title to, or its interests in, one
or more of its tenements if conditions are not met or if sufficient funds are not available to meet work
commitments. Any failure to comply with the work commitments or other conditions on which a permit
or tenement is held exposes the permit or tenement to forfeiture or may result in it not being renewed
as and when renewal is sought. The Company monitors compliance with its commitments and reporting
obligations using internal and external resources to mitigate this risk.
PERFORMANCE IN RELATION TO ENVIRONMENTAL REGULATION
The consolidated entity will comply with its obligations in relation to environmental regulation on its
Queensland projects and when it undertakes exploration in the future. The Directors are not aware of any
breaches of any environmental regulations during the period covered by this report.
OPERATING RESULTS AND FINANCIAL REVIEW
The loss of the consolidated entity after providing for income tax amounted to $541,340 (2016: loss of
$1,980,229). The result for the prior year was impacted by a write off of $1,354,065 in exploration
expenditure.
The Group’s operating income increased to $55,943 (2016: $2,988) primarily the result of an increase in
interest income given increased funds on hand.
Expenses decreased to $597,283 (2016: $1,983,217). The expenses for the period included a write off of
exploration expenditure in the amount of $1,354,065 relating to the Mason Valley copper project.
Exploration costs increased to $5,578,343 (2016: $3,426,949) reflecting the exploration work during the work
on the Triumph project.
Net assets increased to $8,412,892 (2016: $3,013,882) reflecting a capital raise of approximately $5.4 million,
before costs, and the result for the year.
15
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
DIRECTORS REPORT
DIVIDENDS PAID OR RECOMMENDED
The directors do not recommend the payment of a dividend and no amount has been paid or declared by
way of a dividend to the date of this report.
REMUNERATION REPORT
Remuneration Policy
The Board determines, on a case by case basis, the terms and conditions of employment of company
executives and consultants, including remuneration.
The Board’s policy for determining the nature and amount of remuneration for Board members and
executives (Remuneration Policy) is as follows:
The terms and conditions for the executive directors and other senior staff members, are developed by
the Chair and Company Secretary and approved by the Board;
Remuneration for directors and senior executives is determined and reviewed by the Board by reference
to the Company’s performance, the individual’s performance, as well as comparable information from
listed companies in similar industries;
In determining competitive remuneration rates, the Board may seek independent advice on local and
international trends among comparative companies and industry generally. It examines terms and
conditions for employee incentive schemes, benefit plans and share plans. Independent advice may be
obtained to confirm that executive remuneration is in line with market practice and is reasonable in the
context of Australian executive reward practices;
The Company is a mineral exploration company and does not generate cash from its operations. In order
to preserve cash for exploration activities, the Board has determined, where possible, to pay a base
remuneration less than market rates to its executive directors, employees and individual contractors
with base remuneration to be supplemented by options and performance incentives to ensure
attraction, retention and ongoing incentives for its directors and executives. The Board determines
payments to the non-executive directors and reviews their remuneration annually, based on market
practice, duties and accountability;
All remuneration paid to directors is valued at the cost to the Company and expensed. Where
appropriate, shares given to directors and executives are valued as the difference between the market
price of those shares and the amount paid by the director or executive. Options are valued using the
Black-Scholes methodology;
Issue of performance rights are subject to the terms of Metal Bank Performance Rights Plan and their
vesting is subject to vesting conditions and performance hurdles relating to the performance of both the
Company and the individual as determined and assessed by the Board;
The Company has not tabled figures for earnings and shareholders’ funds for the last five years as, being an
exploration company, these historical figures have no relevance in determining remuneration structure.
16
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
DIRECTORS REPORT
DIRECTORS' AND EXECUTIVE OFFICERS’ EMOLUMENTS –
(a) Details of Directors and Key Management Personnel
(i)
(ii)
(iii)
Current Directors
Inés Scotland – Non-Executive Chair (appointed 13 August 2013)
Anthony Schreck – Executive Director (appointed 29 November 2013)
Guy Robertson – Executive Director (appointed 17 September 2012)
Company Secretary
Sue-Ann Higgins (appointed 21 August 2013)
Key Management Personnel
Trevor Wright - Exploration Manager (appointed 4 July 2016)
Other than the directors, the company secretary and the Exploration Manager, the Company had no Key
Management Personnel for the financial year ended 30 June 2017.
Directors’ remuneration and other terms of employment are reviewed annually by the Board having regard
to performance against goals set at the start of the year, relative comparative information and independent
expert advice, where appropriate.
Except as detailed in Notes (a) – (c) to the Remuneration Report, no director or officer has received or become
entitled to receive, during or since the financial year, a benefit because of a contract made by the Company
or a related body corporate with a director, a firm of which a director is a member or an entity in which a
director has a substantial financial interest. This statement excludes a benefit included in the aggregate
amount of emoluments received or due and receivable by directors and shown in Notes (a) – (c) to the
Remuneration Report, prepared in accordance with the Corporations Regulations, or the fixed salary of a full
time employee of the Company.
(b) Remuneration of Directors and Key Management Personnel
Remuneration Policy
The Company’s Remuneration Policy is outlined above. Remuneration of Directors of the Group and Key
Management Personnel is set out below.
Parent & Group Key Management Personnel –
2017
2016
Base
Salary
and Fees
Share
Based
Payments
Super-
annuation
Total
Base
Salary
and Fees
Share
Based
Payments
Super-
annuation
I. Scotland
A. Schreck
-
-
-
-
194,167
12,500
18,446
226,113
G. Robertson
50,000
-
168,000
10,752
91,850
9,856
504,017
33,108
18,446
-
-
-
50,000
178,752
101,706
555,571
T. Wright
S. Higgins
Totals
-
165,000
50,000
-
90,220
305,220
-
-
-
-
-
-
15,675
-
-
-
-
15,675
There are no other employment benefits, either short term, post-employment or long term, non-monetary
or otherwise other than those outlined above.
17
Total
-
180,675
50,000
-
90,220
320,895
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
DIRECTORS REPORT
(c) Employee Related Share-based compensation
Options
To ensure that the Company has appropriate mechanisms to continue to attract and retain the services of
directors and employees of a high calibre, the Company has a policy of issuing options that are exercisable in
the future at a certain fixed price.
No options were issued to employees or to directors or executives as part of their remuneration for the year
ended 30 June 2017.
Performance Rights
The Metal Bank Performance Rights Plan (the Rights Plan) and issue of securities under the Rights Plan was
first approved by shareholders at the Annual General Meeting of the Company held on 30 November 2012
and this approval was renewed by shareholders at the Annual General Meeting of the Company held on
12 November 2015.
To be eligible to participate in the Rights Plan, a person must be a full or part time employee, contractor or
consultant (approved by the Board) of the Company or any subsidiary of the Company or a director.
During the reporting the Company issued 3,402,667 performance rights to a director and employees of the
Company. An amount of $27,590 was expensed to profit and loss in respect of these performance rights
during the period.
The Performance Period for the 2017 Performance Rights ended on 31 August 2017. After assessing the
vesting conditions, the Board determined that 1,422,667 of the 2017 Performance Rights had vested with
1,422,667 shares being issued on 4 September 2017 and the balance of performance rights on issue lapsed
as at this date.
The Company is an exploration company and has no revenue from sales of product. Consequently,
earnings/loss and return to shareholders over the previous five years is not an appropriate benchmark for
the determination of executive remuneration, and has not been tabled.
MEETINGS OF DIRECTORS
The number of directors' meetings (including committees) held during the financial period, each director who
held office during the financial period and the number of meetings attended by each director are:
Director
I. Scotland
A. Schreck
G. Robertson
Directors Meetings
Meetings Attended
Number Eligible
to Attend
5
5
5
5
5
5
In addition to the board meetings there were four circular resolutions by the board during the financial
period.
INDEMNIFYING OFFICERS
In accordance with the constitution, except as may be prohibited by the Corporations Act 2001, every officer
or agent of the Company shall be indemnified out of the property of the Company against any liability incurred
by him or her in his or her capacity as officer or agent of the Company or any related corporation in respect
18
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
DIRECTORS REPORT
of any act or omission whatsoever and howsoever occurring or in defending any proceedings, whether civil
or criminal.
The Company paid insurance premiums of $10,171 in September 2017 in respect of directors’ and officers’
liability. The insurance premiums relate to:
costs and expenses incurred by the relevant officers in defending legal proceedings, whether civil or
criminal and whatever their outcome;
other liabilities that may arise from their position, with the exception of conduct involving wilful breach
of duty or improper use of information to gain a personal advantage.
INDEMNITY AND INSURANCE OF AUDITOR
The company has not, during or since the end of the financial year, indemnified or agreed to indemnify the
auditor of the company or any related entity against a liability incurred by the auditor.
During the financial year, the company has not paid a premium in respect of a contract to insure the auditor
of the company or any related entity.
PROCEEDINGS ON BEHALF OF COMPANY
No person has applied for leave of court to bring proceedings on behalf of the Company or intervene in any
proceeding 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. The Company was not a party to any such proceedings during the
year.
AUDITOR’S INDEPENDENCE DECLARATION
The lead auditor’s independence declaration under Section 307C in relation to auditor’s independence for
the year ended 30 June 2017 has been received and can be found on the following page.
NON-AUDIT SERVICES
The Board of Directors advises that no non-audit services were provided by the Company’s auditors during
the year.
This report is made in accordance with a resolution of the directors.
Guy Robertson
Director
Sydney, 28 September 2017
19
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Metal Bank Limited for the year ended 30 June 2017, I
declare that, to the best of my knowledge and belief, there have been no contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
RSM AUSTRALIA PARTNERS
C J HUME
Partner
Sydney NSW
Dated: 28 September 2017
20
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2017
Note
2
10
3
4
Revenue
Administration expenses
Personnel costs
Compliance and regulatory expenses
Legal fees
Occupancy costs
Marketing
Directors fees
Management and consulting fees
Travel expenses
Exploration expenditure written off
Depreciation
Finance costs
Unrealised foreign exchange loss
Share based payments
(LOSS) BEFORE INCOME TAX
Income tax expense
(LOSS) FOR THE YEAR
(LOSS) ATTRIBUTABLE TO MEMBERS OF
METAL BANK LIMITED
2017
$
55,943
(48,745)
(157,340)
(104,958)
(2,153)
(557)
(2,445)
(50,000)
(147,847)
(33,790)
(185)
(2,024)
(5,000)
(14,649)
(27,590)
2016
$
2,988
(53,302)
(187,363)
(80,239)
(13,299)
(26,185)
(1,920)
(50,000)
(143,149)
(11,927)
(1,354,065)
(762)
(28,000)
(33,006)
-
(541,340)
(1,980,229)
-
-
(541,340)
(1,980,229)
(541,340)
(1,980,229)
OTHER COMPREHENSIVE INCOME
-
-
TOTAL COMPREHENSIVE (LOSS)
(541,340)
(1,980,229)
Loss for the year is attributable to:
Owners of Metal Bank Limited
Total Comprehensive income for the year is
attributable to:
Owners of Metal Bank Limited
Earnings per share
Basic and diluted loss per share
(cents per share)
(541,340)
(1,980,229)
(541,340)
(1,980,229)
20
(0.08)
(0.52)
The Consolidated Statement of Profit or Loss and Other Comprehensive Income are to be read in conjunction
with the attached notes
21
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2017
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Financial assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Plant and equipment
Exploration and evaluation expenditure
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Borrowings
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Note
2017
$
2016
$
5
6
7
8
10
11
12
2,983,672
53,403
1,250
3,038,325
10,062
5,578,343
5,588,405
367,846
38,902
1,250
407,998
2,111
3,426,949
3,429,060
8,626,730
3,837,058
213,838
-
213,838
213,838
120,322
702,854
823,176
823,176
8,412,892
3,013,882
13
14
17,633,012
165,110
(9,385,230)
11,720,252
137,520
(8,843,890)
8,412,892
3,013,882
The Consolidated Statement of Financial Position are to be read in conjunction with the attached notes.
22
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2017
Balance as at 1 July 2016
Loss for the year
Other comprehensive
income for the year
Total comprehensive loss
for the year
Issue of capital
Share Based Payment
Cost of issue of capital
Balance as at 30 June
2017
Balance as at 1 July 2015
Loss for the year
Other comprehensive income
for the year
Total comprehensive loss for
the year
Issue of capital
Issue of capital on vesting
performance rights
Cost of issue of capital
Balance as at 30 June 2016
Note
Issued
Capital
$
Reserves
Accumulated
Losses
$
Total
$
11,720,252
-
137,520
-
(8,843,890)
(541,340)
3,013,882
(541,340)
-
-
-
-
-
-
(541,340)
(541,340)
13
14
15
6,086,465
(173,705)
-
27,590
-
-
-
-
6,086,465
27,590
(173,705)
17,633,012
165,110
(9,385,230)
8,412,892
10,577,912
-
175,020
-
(6,863,661)
(1,980,229)
3,889,271
(1,980,229)
-
-
1,107,665
-
-
-
37,500
(2,825)
(37,500)
-
-
-
(1,980,229)
(1,980,229)
-
-
-
1,107,665
-
(2,825)
11,720,252
137,520
(8,843,890)
3,013,882
The Consolidated Statement of Changes in Equity are to be read in conjunction with the attached notes.
23
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Interest received
NET CASH USED IN OPERATING ACTIVITIES
22
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for fixed assets
Payment for exploration and evaluation
NET CASH USED IN INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares and options
Cost of share issue
NET CASH PROVIDED BY FINANCING
ACTIVITIES
2017
$
2016
$
(531,854)
54,412
(477,442)
(9,975)
(2,101,662)
(2,111,637)
(532,956)
805
(532,151)
-
(706,123)
(706,123)
5,378,610
(173,705)
1,064,500
(2,825)
5,204,905
1,061,675
NET INCREASE/(DECREASE) IN CASH HELD
2,615,826
(176,599)
Cash at the beginning of the financial year
CASH AT THE END OF THE FINANCIAL YEAR
5
367,846
2,983,672
544,445
367,846
The Consolidated Statement of Cash Flows are to be read in conjunction with the attached notes.
24
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
This financial report includes the consolidated financial statements and notes of Metal Bank Limited and its
controlled entities (Consolidated Group or Group), and a separate note on the accounts of Metal Bank
Limited as the parent entity (Parent).
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PREPARATION
The financial report is a general purpose financial report that has been prepared in accordance with
Australian Accounting Standards, Australian Accounting
Interpretations, other authoritative
pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a
financial report containing relevant and reliable information about transactions, events and conditions.
Compliance with Australian Accounting Standards ensures that the financial statements and notes also
comply with International Financial Reporting Standards. Material accounting policies adopted in the
preparation of this financial report are presented below and have been consistently applied unless
otherwise stated.
This financial report is presented in Australian Dollars.
The financial report has been prepared on an accruals basis and is based on historical costs, modified, where
applicable, by the measurement at fair value of selected non-current assets, financial assets and financial
liabilities.
The financial report covers the Group of Metal Bank Limited and controlled entities. Metal Bank Limited is
a public listed company, incorporated and domiciled in Australia.
a.
Principles of Consolidation
The consolidated financial statements incorporate the assets, liabilities and results of entities
controlled by Metal Bank Limited at the end of the reporting period. A controlled entity is any entity
over which Metal Bank Limited has the ability and right to govern the financial and operating policies
so as to obtain benefits from the entity’s activities.
Where controlled entities have entered or left the Group during the year, the financial performance
of those entities is included only for the period of the year that they were controlled. A list of
controlled entities is contained in Note 9 to the financial statements.
In preparing the consolidated financial statements, all inter-group balances and transactions between
entities in the consolidated group have been eliminated in full on consolidation.
Non-controlling interests, being the equity in a subsidiary not attributable, directly or indirectly, to a
parent, are reported separately within the equity section of the consolidated statement of financial
position and statement of comprehensive income. The non-controlling interests in the net assets
comprise their interests at the date of the original business combination and their share of changes in
equity since that date.
b. Business Combinations
Business combinations occur where an acquirer obtains control over one or more businesses.
A business combination is accounted for by applying the acquisition method, unless it is a combination
involving entities or businesses under common control. The business combination will be accounted
for from the date that control is attained, whereby the fair value of the identifiable assets acquired
and liabilities (including contingent liabilities) assumed is recognised (subject to certain limited
exemptions).
When measuring the consideration transferred in the business combination, any asset or liability
resulting from a contingent consideration arrangement is also included. Subsequent to initial
recognition, contingent consideration classified as equity is not remeasured and its subsequent
settlement is accounted for within equity. Contingent consideration classified as an asset or liability is
remeasured each reporting period to fair value, recognising any change to fair value in profit or loss,
unless the change in value can be identified as existing at acquisition date.
25
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
All transaction costs incurred in relation to the business combination are expensed to the statement
of comprehensive income.
The acquisition of a business may result in the recognition of goodwill or a gain from a bargain
purchase.
c. Going Concern
The financial statements have been prepared on the going concern basis, which contemplates continuity
of normal business activities and the realisation of assets and discharge of liabilities in the normal course
of business.
As disclosed in the financial statements, the consolidated entity had incurred a loss of $541,340 and had
net cash outflows from operating and investing activities of $2,589,079 for the year ended 30 June 2017.
The Directors believe that it is reasonably foreseeable that the consolidated entity will continue as a
going concern and that it is appropriate to adopt the going concern basis in the preparation of the
financial report after consideration of the following factors:
The consolidated entity had cash at year-end of $2,983,672.
The consolidated entity had net assets of $8,412,892 as at 30 June 2017;
The ability of the Company to raise further capital to enable the consolidated entity to meet
scheduled exploration expenditure requirements, or to curtail exploration activity in order to
conserve cash if necessary.
The company has successfully raised capital of $6,086,464, before costs, during the year (per note
13); and
The directors have assessed and satisfied themselves that the company will have adequate funding
over the next 12 months to meet its obligations as and when these fall due.
d. Adoption of New and Revised Accounting Standards
Changes in accounting policies on initial application of Accounting Standards
In the year ended 30 June 2017, the Group has reviewed all of the new and revised Standards and
Interpretations issued by the AASB that are relevant to its operations and effective for the current
annual reporting period.
It has been determined by Directors of the Group that there is no impact, material or otherwise, of the
new and revised Standards and Interpretations on its business and, therefore, no change is necessary
to Group accounting policies.
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 2017. As a result of this review the Directors have
determined that there is no impact, material or otherwise, of the new and revised Standards and
Interpretations on its business and, therefore, no change necessary to Group accounting policies.
e.
Income Taxes
The income tax expense (revenue) for the year comprises current income tax expense (income) and
deferred tax expense (income). Current income tax expense charged to the profit or loss is the tax
payable on taxable income calculated using applicable income tax rates enacted, or substantially
enacted, as at reporting date. Current tax liabilities (assets) are therefore measured at the amounts
expected to be paid to (recovered from) the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability
balances during the year as well unused tax losses. Current and deferred income tax expense (income)
is charged or credited directly to equity instead of the profit or loss when the tax relates to items that
are credited or charged directly to equity. Deferred tax assets and liabilities are ascertained based on
temporary differences arising between the tax bases of assets and liabilities and their carrying amounts
26
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
in the financial statements. Deferred tax assets also result where amounts have been fully expensed but
future tax deductions are available. No deferred income tax will be recognised from the initial
recognition of an asset or liability, excluding a business combination, where there is no effect on
accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period
when the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted
at reporting date. Their measurement also reflects the manner in which management expects to
recover or settle the carrying amount of the related asset or liability. Deferred tax assets relating to
temporary differences and unused tax losses are recognised only to the extent that it is probable that
future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and
joint ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of
the temporary difference can be controlled and it is not probable that the reversal will occur in the
foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is
intended that net settlement or simultaneous realisation and settlement of the respective asset and
liability will occur. Deferred tax assets and liabilities are offset where a legally enforceable right of set-
off exists, the deferred tax assets and liabilities relate to income taxes levied by the same taxation
authority on either the same taxable entity or different taxable entities where it is intended that net
settlement or simultaneous realisation and settlement of the respective asset and liability will occur in
future periods in which significant amounts of deferred tax assets or liabilities are expected to be
recovered or settled.
f.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-
current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or
consumed in the consolidated entity's normal operating cycle; it is held primarily for the purpose of
trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or
cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months
after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's
normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12
months after the reporting period; or there is no unconditional right to defer the settlement of the
liability for at least 12 months after the reporting period. All other liabilities are classified as non-current.
g.
Property, plant and equipment
Plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment
losses.
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:
Plant and equipment – over 5 years
The assets’ residual values, useful lives and amortisation methods are reviewed, and adjusted if
appropriate, at each financial year end.
27
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(i) Impairment
The carrying values of 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 plant and equipment is the higher of fair value less costs to sell and value
in use.
An impairment exists when the carrying value of an asset exceeds its estimated recoverable amount.
The asset is then written down to its recoverable amount.
For plant and equipment, impairment losses are recognised in the statement of comprehensive
income.
An annual transfer from the asset revaluation reserve to retained earnings is made for the difference
between depreciation based on the re-valued carrying amounts of the assets and depreciation based
on the assets’ original costs. Additionally, any accumulated depreciation as at the revaluation date is
eliminated against the gross carrying amounts of the assets and the net amounts are restated to the
re-valued amounts of the assets.
Upon disposal, any revaluation reserve relating to the particular asset being sold is transferred to
retained earnings.
(ii) 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 the statement of comprehensive income in the year the asset is derecognised.
h.
Exploration and Evaluation Costs
Exploration, evaluation and development expenditure incurred is accumulated in respect of each
identifiable area of interest. These costs are only carried forward to the extent that they are expected
to be recouped through the successful development of the area or where activities in the area have not
yet reached a stage that permits reasonable assessment of the existence of economically recoverable
reserves. Accumulated costs in relation to an abandoned area are written off in full against profit in the
year in which the decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are amortised
over the life of the area according to the rate of depletion of the economically recoverable reserves. A
regular review is undertaken of each area of interest to determine the appropriateness of continuing to
carry forward costs in relation to that area of interest. Costs of site restoration are provided over the
life of the facility from when exploration commences and are included in the costs of that stage. Site
restoration costs include the dismantling and removal of mining plant, equipment and building
structures, waste removal, and rehabilitation of the site in accordance with clauses of the mining
permits. Such costs have been determined using estimates of future costs, current legal requirements
and technology on an undiscounted basis.
Any changes in the estimates for the costs are accounted on a prospective basis. In determining the
costs of site restoration, there is uncertainty regarding the nature and extent of the restoration due to
community expectations and future legislation. Accordingly the costs have been determined on the
basis that the restoration will be completed within one year of abandoning the site.
28
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
i.
Financial Instruments
Recognition and initial measurement
Financial assets and financial liabilities are recognised when the entity becomes a party to the
contractual provisions to the instrument. For financial assets, this is equivalent to the date that the
company commits itself to either the purchase or sale of the asset (i.e. trade date accounting is
adopted).
Financial instruments are initially measured at fair value plus transaction costs, except where the
instrument is classified “at fair value through profit or loss”, in which case transaction costs are expensed
to profit or loss immediately.
Classification and subsequent measurement
Financial instruments are subsequently measured at fair value, amortised cost using the effective interest
rate method, or cost.
Amortised cost is the amount at which the financial asset or financial liability is measured at initial
recognition less principal repayments and any reduction for impairment, and adjusted for any cumulative
recognised of the difference between that initial amount and the maturity amount calculated using the
effective interest method.
Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are
applied to determine the fair value for all unlisted securities, including recent arm’s length transactions,
reference to similar instruments and option pricing models.
The effective interest method is used to allocate interest income or interest expense over the relevant
period and is equivalent to the rate that discounts estimated future cash payments or receipts (including
fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot
be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the
financial asset or financial liability. Revisions to expected future net cash flows will necessitate an
adjustment to the carrying value with a consequential recognition of an income or expense item in profit
or loss.
The Group does not designate any interests in subsidiaries, associates or joint venture entities as being
subject to the requirements of Accounting Standards specifically applicable to financial instruments.
(i) Financial assets at fair value through profit or loss
Financial assets are classified at “fair value through profit or loss” when they are held for trading for the
purpose of short-term profit taking, derivatives not held for hedging purposes, or when they are designated
as such to avoid an accounting mismatch or to enable performance evaluation where a Group of financial
assets is managed by key management personnel on a fair value basis in accordance with a documented
risk management or investment strategy. Such assets are subsequently measured at fair value with changes
in carrying value being included in profit or loss.
(ii)
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are
not quoted in an active market and are subsequently measured at amortised cost.
Loans and receivables are included in current assets, where they are expected to mature within 12
months after the end of the reporting period.
(iii) Held-to-maturity investments
Held-to-maturity investments are included in non-current assets where they are expected to mature within
12 months after the end of the reporting period. All other investments are classified as current assets.
(iv) Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are either not suitable to be
classified into other categories of financial assets due to their nature, or they are designated as such by
management. They comprise investments in the equity of other entities where there is neither a fixed
maturity nor fixed or determinable payments.
29
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
They are subsequently measured at fair value with changes in such fair value (i.e. gains or losses) recognised
in other comprehensive income (except for impairment losses and foreign exchange gains and losses).
When the financial asset is recognised, the cumulative gain or loss pertaining to that asset previously
recognised in other comprehensive income is reclassified into profit or loss.
Available-for-sale financial assets are included in non-current assets where they are expected to be sold
within 12 months after the end of the reporting period. All other financial assets are classified as current
assets.
(v) Financial liabilities
Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at
amortised cost.
Derivative instruments
The Group designates certain derivatives as either:
i. hedges of the fair value of recognised assets or liabilities or a firm commitment (fair value hedge); or
ii. hedges of highly probable forecast transactions (cash flow hedges).
At the inception of the transaction the relationship between hedging instruments and hedged items, as
well as the Group’s risk management objective and strategy for undertaking various hedge transactions, is
documented.
Assessments, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in
hedging transactions have been and will continue to be highly effective in offsetting changes in fair values
or cash flows of hedged items, are also documented.
(i) Fair value hedge
Changes in the fair value of derivatives that are designated and qualified as fair value hedges are
recorded in the statement of comprehensive income, together with any changes in the fair value of
hedged assets or liabilities that are attributable to the hedged risk.
(ii) Cash flow hedge
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash
flow hedges is deferred to a hedge reserve in equity. The gain or loss relating to the ineffective portion
is recognised immediately in the statement of comprehensive income.
Amounts accumulated in the hedge reserve in equity are transferred to the statement of comprehensive
income in the periods when the hedged item will affect profit or loss.
Impairment
At the end of each reporting period, the Group assesses whether there is objective evidence that a financial
instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline
in the value of the instrument is considered to determine whether an impairment has arisen. Impairment
losses are recognised in profit or loss. Also, any cumulative decline in fair value previously recognized in
other comprehensive income is reclassified to profit or loss at this point
Financial guarantees
Where material, financial guarantees issued that require the issuer to make specified payments to
reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due are
recognized as a financial liability at fair value on initial recognition.
The guarantee is subsequently measured at the higher of the best estimate of the obligation and the
amount initially recognised less, when appropriate, cumulative amortisation in accordance with
AASB 118: Revenue. Where the entity gives guarantees in exchange for a fee, revenue is recognised
under AASB 118.
30
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
The fair value of financial guarantee contracts has been assessed using a probability-weighted
discounted cash flow approach. The probability has been based on:
the likelihood of the guaranteed party defaulting in a year period;
(i)
(ii) the proportion of the exposure that is not expected to be recovered due to the guaranteed
party defaulting; and
(iii) the maximum loss exposed if the guaranteed party were to default.
Derecognition
Financial assets are recognised where the contractual rights to receipt of cash flows expire or the asset
is transferred to another party whereby the entity no longer has any significant continuing involvement
in the risks and benefits associated with the asset. Financial liabilities are recognised where the related
obligations are discharged, cancelled or expired. The difference between the carrying value of the
financial liability extinguished or transferred to another party and the fair value of consideration paid,
including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.
j.
Impairment of Assets
At each reporting date, the Company reviews the carrying values of its tangible and intangible assets to
determine whether there is any indication that those assets have been impaired. If such an indication
exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell
and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over
its recoverable amount is expensed to the consolidated statement of comprehensive income.
Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.
Where it is not possible to estimate the recoverable amount of an individual asset, the Company
estimates the recoverable amount of the cash-generating unit to which the asset belongs. In the case
of available-for-sale financial instruments, a prolonged decline in the value of the instrument is
considered to determine whether impairment has arisen.
k.
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly
liquid investments with original maturities of 3 months or less, and bank overdrafts. Bank overdrafts are
shown within short-term borrowings in current liabilities on the statement of financial performance.
l.
Trade and other payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to
the end of the financial year and which are unpaid. Due to their short-term nature they are measured
at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30
days of recognition.
m. Revenue Recognition
Interest revenue is recognised using the effective interest method. It includes the amortisation of any
discount or premium.
n. Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of
GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is
recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables
and payables in the statement of financial position are shown inclusive of GST. Cash flows are presented
in the statement of cash flows on a gross basis, except for the GST component of investing and financing
activities, which are disclosed as operating cash flows.
31
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
o. Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to
changes in presentation for the current financial year.
p.
Significant judgements and key assumptions
The directors evaluate estimates and judgements incorporated into the financial report based on
historical knowledge and best available current information. Estimates assume a reasonable
expectation of future events and are based on current trends and economic data, obtained both
externally and within the Company.
q. Key judgements and estimates
Key Judgement Exploration Expenditure
The Company capitalises expenditure relating to exploration and evaluation where it is considered likely
to be recoverable or where the activities have not reached a stage which permits a reasonable
assessment of the existence of reserves. While there are certain areas of interest from which no
reserves have been extracted, the directors are of the continued belief that such expenditure should
not be written off since feasibility studies in such areas have not yet concluded. Such capitalised
expenditure is carried at reporting date at $5,578,343.
Key Judgement Environmental Issues
Balances disclosed in the financial statements and notes thereto are not adjusted for any pending or
enacted environmental legislation, and the directors understanding thereof. At the current stage of the
company’s development and its current environmental impact the directors believe such treatment is
reasonable and appropriate.
Key Estimate Taxation
Balances disclosed in the financial statements and the notes thereto, relating to taxation, are based on
the best estimates of directors. These estimates take into account both the financial performance and
position of the company as they pertain to current income taxation legislation, and the directors
understanding thereof. No adjustment has been made for pending or future taxation legislation. The
current income tax position represents that directors’ best estimate, pending an assessment by the
Australian Taxation Office.
Key Estimate Share based payment transactions
The Company measures the cost of equity-settled transactions by reference to the fair value of the
equity instruments at the date at which they are granted. The fair value is determined by reference to
the market price. Refer note 25.
Standards and Interpretations in issue not yet adopted
The Directors have reviewed all new Standards and Interpretations that have been issued but are not
yet effective for the year ended 30 June 2017. 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.
32
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
2. REVENUE AND OTHER INCOME
Interest received
Other income
3. LOSS FOR THE YEAR
Loss for the year is after charging:
Wages and salaries
Superannuation
Other employment related costs
Less capitalised exploration costs
Personnel costs
4. INCOME TAX EXPENSE
2017
$
55,943
-
55,943
2016
$
811
2,177
2,988
2017
$
217,672
20,624
11,835
250,131
(92,791)
157,340
2016
$
252,410
21,613
52
274,075
(86,712)
187,363
(a) No income tax is payable by the parent or consolidated entity as they recorded losses for income tax
purposes for the period.
(b) Reconciliation between income tax expense and prima facie tax on accounting profit (loss)
Accounting profit (loss)
Tax at 27.5% (2016:28.5%)
Tax effect of other (deductible)/non-deductible
items
Deferred tax asset not recognised
Income tax expense
(c) Deferred tax assets
Revenue tax losses
Deferred tax assets not recognised
Set off deferred tax liabilities
Income tax expense
(d) Deferred tax liabilities
Exploration expenditure
Set off deferred tax assets
(e) Tax losses
Unused tax losses for which no deferred tax
asset has been recognised
2017
$
(541,340)
(148,869)
-
2016
$
(1,980,229)
(594,069)
396,387
148,869
-
197,682
-
816,819
(148,869)
(667,950)
-
667,950
(667,950)
-
263,143
(197,682)
(65,461)
-
65,461
(65,461)
-
11,012,791
6,107,116
33
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Potential deferred tax assets attributable to tax losses and exploration expenditure carried forward have not
been brought to account at 30 June 2017 because the directors do not believe it is appropriate to regard
realisation of the deferred tax assets as probable at this point in time. These benefits will only be obtained if:
the Company derives future assessable income of a nature and of an amount sufficient to enable the
benefit from the deductions for the loss and exploration expenditure to be realised;
the Company continues to comply with conditions for deductibility imposed by law; and
no changes in tax legislation adversely affect the company in realising the benefit from the deductions
for the loss and exploration expenditure.
The applicable tax rate is the national tax rate in Australia for companies, which is 27.5% at the reporting date.
5. CASH AND CASH EQUIVALENTS
Cash and cash equivalents
2,983,672
367,846
2017
$
2016
$
6. TRADE AND OTHER RECEIVABLES
CURRENT
Other receivables
GST receivable
7. FINANCIAL ASSETS
CURRENT
ASX Listed Shares
Financial assets available for sale¹
¹ Shares in Locality Planning Energy Holdings Limited.
2017
$
20,024
33,379
53,403
2016
$
16,542
22,360
38,902
2017
$
2016
$
1,250
1,250
1,250
1,250
34
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
8. PLANT AND EQUIPMENT
Office equipment
At Cost
Accumulated depreciation
Office equipment
Opening balance
Purchases
Depreciation
Closing balance
9. CONTROLLED ENTITY
Parent Entity:
Metal Bank Limited
Subsidiary:
Roar Resources Pty Ltd
MBK Resources USA Inc.
2017
$
2016
$
13,610
(3,548)
10,062
2,111
9,975
(2,024)
10,062
3,635
(1,524)
2,111
2,873
-
(762)
2,111
Country of
Incorporation
Ownership %
2017
Ownership %
2016
Australia
Australia
United States of
America
-
100
100
-
100
100
10. EXPLORATION AND EVALUATION EXPENDITURE
2017
$
2016
$
Exploration and evaluation expenditure
5,578,343
3,426,949
Reconciliation of carrying amount
Balance at beginning of financial year
Expenditure in current year
Exploration expenditure written off
Balance at end of financial period
3,426,949
2,151,579
(185)
5,578,343
4,057,883
723,131
(1,354,065)
3,426,949
11. TRADE AND OTHER PAYABLES
CURRENT
Unsecured liabilities:
Trade payables
Sundry payables and accrued expenses
2017
$
2016
$
123,058
90,780
213,838
67,484
52,838
120,322
35
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
12. BORROWINGS
CURRENT
Borrowings
2017
$
2016
$
-
702,854
Borrowings denominated in US $500,000 (US $500,000) were converted to 23,595,133 shares issued on
25 November 2016.
13. SHARE CAPITAL
712,418,760 (2016 – 509,536,630)
fully paid ordinary shares
2017
2016
17,633,012
11,720,252
Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion
to the number of shares held. At shareholders’ meetings each ordinary share is entitled to one vote when a
poll is called, otherwise each shareholder has one vote on a show of hands.
Reconciliation of movements in share capital during the year:
2017
No. Shares
2016
No. Shares
2017
$
2016
$
Opening balance – start of
reporting period
Share Issue – 8 September 2015
Share Issue – 16 November 2015
Share Issue – 30 March 2016
Share Issue – 11 April 2016
Share issue – 11 May 2016
Share issue – 30 June 2016
Share Issue – 30 September 2016
Share Issue – 21 October 2016
Share issued on conversion of
loan 25 Nov 2016
Cost of raising capital
509,536,630
116,666,667
62,620,330
23,595,133
330,929,445
23,333,333
10,000,000
25,000,000
1,271,186
116,125,000
2,877,666
11,720,252
3,500,000
1,878,610
10,577,912
350,000
150,000
100,000
37,500
464,500
43,165
-
707,855
(173,705)
(2,825)
712,418,760
509,536,630
17,633,012
11,720,252
Capital Management
The Company’s objectives when managing capital are to safeguard its ability to continue as a going concern,
so that it may continue to provide returns for shareholders and benefits for other stakeholders.
The Company’s capital includes ordinary share capital and financial liabilities, supported by financial assets.
Due to the nature of the Company’s activities, being mineral exploration, it does not have ready access to
credit facilities, with the primary source of funding being equity raisings. Accordingly, the objective of the
Company’s capital risk management is to balance the current working capital position against the
requirements of the Company to meet exploration programmes and corporate overheads. This is achieved
36
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
by maintaining appropriate liquidity to meet anticipated operating requirements, with a view to initiating
appropriate capital raisings as required.
Cash and cash equivalents
Trade and other receivables
Financial assets
Trade and other payables
Working capital position
Share options
Movements in share options
At 1 July
At 30 June
Performance rights
Movements in performance rights
At 1 July
Performance rights issued during the year¹
Performance rights vested during the year
At 30 June
2017
2016
$
$
2,983,672
367,846
53,403
1,250
38,902
1,250
(213,838)
(823,176)
2,824,487
(415,178)
2017
No.
2016
No.
15,000,000
15,000,000
15,000,000
15,000,000
2017
No.
-
3,402,667
-
3,402,667
2016
No.
-
-
-
-
¹An amount of $27,590 was expensed during the year relating to these performance rights (see Note 14).
The Company has the following options outstanding as at 30 June 2017.
Grant/Issue Date
Expiry Date
Exercise Price
Number
Listed/Unlisted
2 December 2013
30 November 2018
3 cents
15,000,000
Unlisted
37
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
The following table illustrates the number (No.) and weighted average exercise prices of and movements in
share options issued during the year:
Weighted
average exercise
price
Weighted average
exercise price
Outstanding at the beginning of the
year
Granted during the year
Expired during the year
Exercised during the year
2017
No.
2017
$
2016
No.
15,000,000
$0.03
15,000,000
-
-
-
-
-
-
-
-
-
Outstanding at the end of the year
Exercisable at the end of the year
15,000,000
15,000,000
$0.03
$0.03
15,000,000
15,000,000
2016
$
$0.03
-
-
-
$0.03
$0.03
The share options outstanding at the end of the year had a weighted average exercise price of $0.03 (2016:
$0.03) and weighted average remaining contractual life of 0.42 years (2016: 1.42 years).
The following share-based payment arrangements are in place during the current and prior periods:
Series
Number
Grant/Issue
Date
Expiry date
Exercise
Price
Fair Value at Grant
Date
Series 1
15,000,000
2/12/13
30/11/18
3 cents
137,520
Listed/
Unlisted
Unlisted
Series 1
78%
3.31%
6.0
3 cents
1.7 cents
Expected volatility (%)
Risk-free interest free (%)
Expected life of option (years)
Exercise price ($)
Grant date share price
14. RESERVES
Option issue reserve
Movements in options issue reserve
Opening balance
Share Based Payment
Issue of shares on vesting of performance rights
Closing balance
38
2017
$
2016
$
165,110
137,520
137,520
27,590
-
165,110
175,020
-
(37,500)
137,520
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
15. FINANCIAL RISK MANAGEMENT
The group’s principal financial instruments comprise mainly of borrowings and deposits with banks and
shares in listed companies shown as financial assets at fair value through profit and loss. The main purpose
of the financial instruments is to achieve optimal funding for the group with limited risk and earn the
maximum amount of interest at a low risk to the group. The group also has other financial instruments such
as trade debtors and creditors which arise directly from its operations.
The consolidated entity holds the following financial instruments at the end of the reporting period:
Financial assets
Cash and cash equivalents
Trade and other receivables
Financial assets at fair value through profit
and loss
Financial liabilities
Trade and other payables
Borrowings
2017
$
2,983,672
53,403
1,250
2016
$
367,846
38,902
1,250
3,038,325
407,998
213,838
-
213,838
120,322
702,854
823,176
The main risks arising from the Company’s financial instruments are market risk, credit risk and liquidity risk.
The Board reviews and agrees policies for managing each of these risks and they are summarised below:
a. Market risk
Cash flow and fair value interest rate risk
The group’s main interest rate risk arises from borrowings and cash deposits to be applied to
exploration and development areas of interest. Borrowings are primarily to bridge the gap between
funding requirements and obtaining shareholder approval for equity issues. It is the group’s policy
to invest cash in short term deposits to minimise the group’s exposure to interest rate fluctuations.
The group’s deposits were denominated in Australian dollars throughout the year. The group did not
enter into any interest rate swap contracts.
b. Credit Risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in
financial loss to the group. The group has adopted the policy of only dealing with credit worthy
counterparties and obtaining sufficient collateral or other security where appropriate, as a means of
mitigating the risk of financial loss from defaults. The cash transactions of the group are limited to
high credit quality financial institutions.
The group does not have any significant credit risk exposure to any single counterparty or any group
of counterparties having similar characteristics. The carrying amount of financial assets recorded in
the financial statements, net of any provisions for losses, represents the group’s maximum exposure
to credit risk.
All cash holdings within the Group are currently held with AA rated financial institutions.
c. Liquidity Risk
The group manages liquidity risk by continuously monitoring forecast and actual cash flows and
matching the maturity profiles of financial assets and liabilities. Surplus funds when available are
generally only invested in high credit quality financial institutions in highly liquid markets.
39
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Financial Instrument composition and maturity analysis
The tables below reflect the undiscounted contractual settlement terms for financial instruments of a fixed
period of maturity, as well as management’s expectations of the settlement period for all other financial
instruments. As such, the amounts may not reconcile to the statement of financial position.
Consolidated
Group
Financial liabilities
- due for payment:
Trade and other
payables
Borrowings
Total contractual
outflows
Financial assets –
cash flows
realisable
Cash and cash
equivalents
Trade and other
receivables
Financial assets
Total anticipated
inflows
Net
inflow/(outflow)
on financial
instruments
Within 1 year
1 to 5 years
Over 5 years
Total
2017
$
2016
$
2017
$
2016
$
2017
$
2016
$
2017
$
2016
$
213,838
120,322
-
702,754
213,838
823,076
2,983,672
367,846
53,403
1,250
38,902
1,250
3,038,325
407,998
2,824,487
(415,078)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
213,838
120,322
-
702,754
213,838
823,076
2,983,672
367,846
53,403
1,250
38,902
1,250
3,038,325
407,998
-
2,824,487
(415,078)
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates at the reporting date would have increased/(decreased) equity
and profit or loss by the amounts shown below.
30 June 2017
Cash and cash equivalents
Borrowings
30 June 2016
Cash and cash equivalents
Borrowings
Change in profit
Change in equity
Carrying
Value
$
2,983,672
-
2,983,672
$
367,846
(702,854)
(335,008)
100bp
Increase
$
29,836
-
29,836
$
3,678
(7,028)
(3,350)
100bp
decrease
$
(29,836)
-
(29,836)
$
(3,678)
7,028
3,350
100bp
increase
$
29,836
-
29,836
$
3,678
(7,028)
(3,350)
100bp
decrease
$
(29,836)
-
(29,836)
$
(3,678)
7,028
3,350
40
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Maturity of financial assets and liabilities
The note below summarises the maturity of the group’s financial assets and liabilities as per the director’s
expectations. The amounts disclosed are the contractual undiscounted cash flows. There are no derivatives.
30 June 2017
Trade and other receivables
Trade and other payables
Borrowings
30 June 2016
Trade and other receivables
Trade and other payables
Borrowings
< 6 months
$
53,403
213,838
-
$
38,902
120,322
-
6 – 12
months
$
-
-
$
-
-
702,854
1- 5 years
>5 years
Total
$
$
-
-
-
$
-
-
-
$
53,403
213,838
-
$
38,902
120,322
702,854
-
-
-
$
-
-
-
Fair value of financial assets and financial liabilities
There is no difference between the fair values and the carrying amounts of the group’s financial instruments.
The Group has no unrecognised financial instruments at balance date.
Financial Instruments Measured at Fair Value
The financial instruments recognised at fair value in the statement of financial position have been analysed
and classified using a fair value hierarchy reflecting the significance of the inputs used in making the
measurements. The fair value hierarchy consists of the following levels:
quoted prices in active markets for identical assets or liabilities (Level 1);
inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (as prices) or indirectly (derived from prices) (Level 2); and
inputs for the asset or liability that are not based on observable market data (unobservable inputs)
(Level 3).
Sensitivity analysis on changes in market rates
A change of 20% in equity prices at the reporting date would increase/(decrease) equity and profit or loss as
shown below:
Carrying
Value
$
Change in profit
20%
increase
$
20%
decrease
$
Change in equity
20%
20%
decrease
increase
$
$
30 June 2017 & 30 June 2016
Financial assets available for sale
ASX listed investments
1,250
250
(250)
250
(250)
41
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
16. COMMITMENTS
The consolidated group currently has commitments for expenditure at 30 June 2017 on its
Australian exploration tenements, up to the date of expiry, as follows:
Not later than 12 months
Between 12 months and 5 years
Greater than 5 years
2017
$
160,000
490,000
-
650,000
2016
$
242,000
650,000
-
892,000
17. CONTINGENT LIABILITIES AND CONTINGENT ASSETS
There are no contingent liabilities or assets in existence at balance sheet date.
18. RELATED PARTY DISCLOSURES
Refer to the Remuneration Report contained in the Directors Report for details of the remuneration paid or
payable to each member of the Group’s key management personnel for the year ended 30 June 2017. Other
than the Directors and secretary, the Company had no key management personnel for the financial period
ended 30 June 2017.
The total remuneration paid to key management personnel of the company and the group during the year
are as follows:
Short term employee benefits
Superannuation
Share based payments
2017
$
286,017
18,446
27,590
332,053
2016
$
305,220
15,675
-
320,895
DIRECTORS' AND EXECUTIVE OFFICERS’ EMOLUMENTS
(a) Details of Directors and Key Management Personnel
(i) Directors
Inés Scotland (Non-Executive Chairman) (Appointed 13 August 2013)
Anthony Schreck (Executive Director) (Appointed 29 November 2013)
Guy Robertson (Executive Director) (Appointed 17 September 2012)
(ii) Company secretary
Sue-Ann Higgins (Company Secretary) (Appointed 21 August 2013)
(iii) Directors’ remuneration
Directors’ remuneration and other terms of employment are reviewed annually by the Board having regard
to performance against goals set at the start of the year, relative comparative information and, where
applicable, independent expert advice.
Except as detailed in Notes (a) – (c) to the Remuneration Report in the Director’s Report, no director has
received or become entitled to receive, during or since the financial period, a benefit because of a contract
made by the Company or a related body corporate with a director, a firm of which a director is a member or
42
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
an entity in which a director has a substantial financial interest. This statement excludes a benefit included
in the aggregate amount of emoluments received or due and receivable by directors and shown in Notes
(a) - (c) to the Remuneration Report, prepared in accordance with the Corporations regulations, or the fixed
salary of a full time employee of the Company.
(b) Key Management Personnel
Other than the Directors, Company Secretary and Exploration Manager, the Company had no key
management personnel for the financial period ended 30 June 2017.
(c) Remuneration Options: Granted and vested during the financial year ended 30 June 2017
There were no remuneration options granted during the financial year ended 30 June 2017.
(d) Share and Option holdings
All equity dealings with directors have been entered into with terms and conditions no more favourable than
those that the entity would have adopted if dealing at arm’s length.
Shares held by Directors and Officers
Period from 1 July 2016 to 30 June 2017
Balance at
beginning
of period
72,585,647
14,584,678
-
-
-
87,170,325
I. Scotland
A. Schreck
G. Robertson
T. Wright
S. Higgins
Received as
Remuneration
Purchased
Net Change
Other¹
Balance at
end of year
-
-
-
-
-
-
23,675,133
1,458,469
-
-
-
-
-
96,260,780
16,043,147
-
13,505,120
13,505,120
-
25,133,602
2,226,667
15,731,787
2,226,667
128,035,714
¹Executive added to key personnel disclosures
Period from 1 July 2015 to 30 June 2016
Balance at
beginning
of period
37,585,647
10,952,381
-
48,538,028
Received as
Remuneration
Purchased
Net Change
Other
Balance at
end of year
-
35,000,000
1,271,186
-
1,271,186
2,361,111
-
37,361,111
-
-
-
-
72,585,647
14,584,678
-
87,170,325
I. Scotland
A. Schreck
G. Robertson
43
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Options held by Officers and Directors
Period from 1 July 2016 to 30 June 2017
Balance at
beginning
of period
-
9,000,000
-
-
9,000,000
I. Scotland
A. Schreck
T. Wright
G. Robertson
Received as
Remuneration
Net Change
Other
Expired during
period
Balance at
end of year
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9,000,000
-
-
9,000,000
Period from 1 July 2015 to 30 June 2016
Balance at
beginning
of period
-
9,000,000
-
9,000,000
I. Scotland
A. Schreck
G. Robertson
Performance Rights
Received as
Remuneration
Net Change
Other
Expired during
period
Balance at
end of year
-
-
-
-
-
-
-
-
-
-
-
-
-
9,000,000
-
9,000,000
During the year 3,402,667 performance rights were issued. The rights had a performance period
which expires on 30 September 2017. An amount of $27,590 has been charged to profit and loss in
the year. The Performance Period for the 2017 Performance Rights ended on 31 August 2017. After
assessing the vesting conditions, the Board determined that 1,422,667 of the 2017 Performance Rights had
vested and the balance of performance rights on issue have lapsed.
19. SEGMENT INFORMATION
The group’s operations are in one business segment being the resources sector. The group operates in
Australia. All subsidiaries in the group operate within the same segment.
Basis of accounting for purposes of reporting by operating segments
Accounting policies adopted
Unless stated otherwise, all amounts reported to the Board of Directors as the chief decision maker with
respect to operating segments are determined in accordance with accounting policies that are consistent to
those adopted in the annual financial statements of the Company.
44
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Inter-segment transactions
Inter-segment loans payable and receivable are initially recognised at the consideration received net of
transaction costs. If inter-segment loans receivable and payable are not on commercial terms, these are not
adjusted to fair value based on market interest rates. This policy represents a departure from that applied to
the statutory financial statements
Segment assets
Where an asset is used across multiple segments, the asset is allocated to the segment that receives the
majority of economic value from the asset. In the majority of instances, segment assets are clearly identifiable
on the basis of their nature and physical location.
Unless indicated otherwise in the segment assets note, investments in financial assets, deferred tax assets
and intangible assets have not been allocated to operating segments.
Segment liabilities
Liabilities are allocated to segments where there is direct nexus between the incurrence of the liability and
the operations of the segment. Borrowings and tax liabilities are generally considered to relate to the
Company as a whole and are not allocated. Segment liabilities include trade and other payables and certain
direct borrowings.
Unallocated items
Administration and other operating expenses are not allocated to operating segments as they are not
considered part of the core operations of any segment.
45
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Project segments
30 June 2017
Revenue
Interest and other income¹
Total segment revenue
Expenses
Exploration expenditure
written off
Administration
Total segment expenses
Income tax benefit
Segment result
Exploration costs incurred for
the year
Segment assets
Segment liabilities
¹Interest is earned in Australia.
Project segments
30 June 2016
Revenue
Interest and other income¹
Total segment revenue
Expenses
Exploration expenditure
written off
Administration
Total segment expenses
Income tax benefit
Segment result
Exploration costs incurred for
the year
Segment assets
Segment liabilities
¹Interest is earned in Australia.
Australian
Projects
$
United States
of America
Project
$
Administration
Costs
$
Unallocated
$
Total
$
-
-
-
-
-
-
-
2,151,574
5,578,343
-
-
-
-
-
-
-
-
-
-
-
-
55,943
55,943
55,943
55,943
-
(597,283)
(597,283)
-
(597,283)
-
-
-
-
-
-
(597,283)
(597,283)
-
(597,283)
-
-
-
-
3,048,387
213,838
2,151,574
8,626,730
213,838
Australian
Projects
$
United States
of America
Project
$
Administration
Costs
$
Unallocated
$
Total
$
-
-
-
-
-
-
-
218,202
3,426,949
-
-
-
-
-
2,988
2,988
2,988
2,988
(1,354,065)
-
(1,354,065)
-
(1,354,065)
505,386
51,078
-
-
(629,152)
(629,152)
-
(629,152)
-
-
-
-
-
(1,354,065)
(629,152)
(1,983,217)
-
(1,983,217)
-
-
-
-
359,031
823,176
723,588
3,837,058
823,176
46
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
20. EARNINGS PER SHARE
Reconciliation of earnings per share
Basic and diluted earnings per share
2017
Cents
2016
Cents
(0.08)
(0.52)
Profit/(loss) used in the calculation of the basic
earnings per share
(541,340)
(1,980,229)
Weighted average number of ordinary shares:
Used in calculating basic earnings per ordinary
share
Dilutive potential ordinary shares
Used in calculating diluted earnings per share
21. AUDITORS REMUNERATION
Auditor of parent entity
Audit or review of financial reports
Non-audit services
654,187,284
376,640,710
-
654,187,284
-
376,640,710
2017
$
31,100
-
31,100
2016
$
27,100
-
27,100
22. CASH FLOW INFORMATION
Reconciliation of net cash used in operating activities with profit after income tax
2017
$
(541,340)
2016
$
(1,980,229)
27,590
-
2,024
16,984
43,165
1,354,065
762
61,006
(14,501)
31,801
(477,442)
(2,928)
(7,992)
(532,151)
Loss after income tax
Non-cash flows in loss:
Share based payments
Exploration written off
Depreciation
Other non-cash items
Changes in assets and liabilities:
Increase in trade and other receivables
Increase/(decrease) in trade and other payables
Net cash (outflow) from operating activities
Non-cash Financing and Investing Activities
There were no non cash financing and investing activities.
47
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
23. PARENT ENTITY DISCLOSURES
Financial Position
Current Assets
Cash and cash equivalents
Trade and other receivables
Financial assets
Total Current Assets
Non-current Assets
Office equipment
Financial assets
Evaluation and exploration expenditure
Total Non-current assets
Total Assets
Current Liabilities
Trade and other payables
Borrowings
Total Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
2017
$
2016
$
2,979,253
3,245,677
1,250
6,226,180
10,062
2,269,836
24,912
2,304,810
315,621
881,762
1,250
1,198,633
2,111
2,269,836
152,838
2,424,785
8,530,990
3,623,418
118,098
-
118,098
93,350
702,854
796,204
118,098
796,204
8,412,892
2,827,214
17,633,012
165,110
(9,385,230)
11,720,252
137,520
(9,030,558)
8,412,892
2,827,214
Total loss
(706,097)
(1,829,476)
Total comprehensive loss
(706,097)
(1,829,476)
i. Contingent liabilities and contingent assets
The parent entity is responsible for the contingent liabilities and contingent assets outlined in note 17.
ii. Commitments
The parent entity is responsible for the commitments outlined in note 16.
iii. Related parties
Interest in subsidiaries is set out in note 9.
Disclosures relating to key management personnel are set out in note 18.
48
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
24. SIGNIFICANT AFTER BALANCE DATE EVENTS
There are currently no matters or circumstances that have arisen since the end of the financial period that
have significantly affected or may significantly affect the operations of the consolidated entity, the results of
those operations, or the state of affairs of the consolidated entity in future financial years.
49
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
DIRECTORS DECLARATION
In accordance with a resolution of the directors of Metal Bank Limited, the directors of the company declare
that:
1.
the financial statements and notes, as set out on pages 21 to 49, are in accordance with the Corporations
Act 2001 and:
a. comply with Australian Accounting Standards, which, as stated in accounting policy Note 1 to the
financial statements, constitutes compliance with International Financial Reporting Standards (IFRS);
and
b. give a true and fair view of the financial position as at 30 June 2017 and of the performance for the
year ended on that date of the consolidated group;
2.
3.
in the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its
debts as and when they become due and payable; and
the directors have been given the declarations required by s295A of the Corporations Act 2001 from the
Chief Executive Officer and Chief Financial Officer.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the
Corporations Act 2001.
Guy Robertson
Director
Sydney, 28 September 2017
50
INDEPENDENT AUDITOR’S REPORT
To the Members of Metal Bank Limited
Opinion
We have audited the financial report of Metal Bank Limited (the Company) and its subsidiaries (the Group), which
comprises the consolidated statement of financial position as at 30 June 2017, the consolidated statement of
comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash
flows for the year then ended, and notes to the financial statements, including a summary of significant accounting
policies, and the directors' declaration.
In our opinion the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
(i) giving a true and fair view of the Group's financial position as at 30 June 2017 and of its financial
performance for the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
51
Key Audit Matter
How our audit addressed this matter
Carrying value of capitalised exploration and evaluation
Refer to Note 10 in the financial statements
As disclosed in note 10, the Group held capitalised
exploration
of
evaluation
$5,578,343 as at 30 June 2017 which represents a
significant asset of the Group.
expenditure
and
The carrying value of exploration and evaluation
assets is subjective based on Group’s ability, and
intention, to continue to explore the asset. The
carrying value may also be impacted if the mineral
reserves and resources are commercially viable for
extraction, or where the carrying value of the asset
is not likely to be recouped through sale or
successful development. This creates a risk that the
amounts stated in the financial statements may not
be recoverable.
Our audit procedures included the following:
Ensuring that the Group had the right to explore in
the relevant exploration area, which included
obtaining and assessing independent searches of
the company’s tenement holdings
assessing the Group’s intention to carry out
significant exploration and evaluation activity in the
relevant exploration area, which included an
assessment of the Group's future cash flow
forecasts, and enquiry of management and the
Board of Directors as to the intentions and strategy
of the Group
assessing the results of recent exploration activity
in the Group’s areas of interest, to determine if
there are any negative indicators that would
suggest a potential impairment of the capitalised
exploration and evaluation expenditure
assessing the ability to finance any planned future
exploration and evaluation activity.
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Group's annual report for the year ended 30 June 2017, but does not include the financial report and the
auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
52
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar2.pdf.
This description forms part of our auditor's report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 16 to 19 of the directors' report for the year ended
30 June 2017.
In our opinion, the Remuneration Report of Metal Bank Limited for the year ended 30 June 2017, complies with
section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
C J Hume
RSM Australia Partners
Sydney NSW
28 September 2017
53
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
ADDITIONAL INFORMATION FOR LISTED COMPANIES
AS AT 25 SEPTEMBER 2017
The following additional information is required by the Australian Securities Exchange pursuant to Listing Rule
4.10. The information provided is current as at 25 September 2017 unless otherwise stated.
a. Distribution of Shareholders
Number held
1 – 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001+
Total
Number of
share holders
Number of
shares
% of number of
shares
22
4
49
470
483
536
12,924
469,736
24,707,165
688,651,066
1,028
713,841,427
0.00%
0.00%
0.07%
3.46%
96.47%
100.00%
b. The number of shareholders who hold less than a marketable parcel is 122.
c. Substantial shareholders
The names of the substantial shareholders in the Company, the number of equity securities to which
each substantial shareholder and substantial holder’s associates have a relevant interest, as disclosed
in substantial holding notices given to the Company are:
Indigo Pearl Capital Ltd
Celtic Stars Capital Ltd
Aristo Jet Capital Ltd
Greenvale Asia Limited
No of shares
%
95,380,780
13.39%
43,702,314
48,072,545
6.12%
6.73%
81,596,712
11.85%
54
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
ADDITIONAL INFORMATION FOR LISTED COMPANIES
AS AT 25 SEPTEMBER 2017
d. Twenty largest holders of each class of quoted equity security
Company: METAL BANK LIMITED
ACN 127 297 170
Top Listing - Grouped
Rank Name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
BERNE NO 132 NOMINEES PTY LTD <600835 A/C>
PERSHING AUSTRALIA NOMINEES Pty Ltd
BERNE NO 132 NOMINEES PTY LTD <602987 A/C>
MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LTD
BERNE NO 132 NOMINEES PTY LTD <601299 A/C>
MR TREVOR DEAN WRIGHT + MRS JOHANNA HELEN WRIGHT
MR ANTHONY WILLIAM SCHRECK
PERSHING AUSTRALIA NOMINEES PTY LTD
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