Mithril Resources Ltd
ABN 30 099 883 922
Annual Report
For the Year Ended 30 June 2017
Mithril Resources Ltd
ABN 30 099 883 922
Contents
For the Year Ended 30 June 2017
Consolidated Financial Statements
Corporate Information
Chairman's Letter
Directors' Report
Auditor's Independence Declaration under Section 307C of the Corporations Act 2001
Consolidated Statement of Profit or Loss and Other 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
ASX Additional Information
Page
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57
Mithril Resources Ltd
ABN 30 099 883 922
Corporate Information
30 June 2017
Directors
Mr Graham Ascough (Chairman, Non-Executive Director)
Mr David Hutton (Managing Director)
Mr Donald Stephens (Non-Executive Director)
Company Secretary
Mr Donald Stephens
Registered Office
C/- HLB Mann Judd (SA) Pty Ltd
169 Fullarton Road
DULWICH SA 5065
Principal Place of Business
22B Beulah Road
NORWOOD SA 5067
Share Registry
Computershare Investor Services Pty Ltd
Level 5, 115 Grenfell Street
ADELAIDE SA 5000
Legal Advisors
O'Loughlins Lawyers
Level 2, 99 Frome Street
ADELAIDE SA 5000
Bankers
Bank of South Australia
97 King William Street
ADELAIDE SA 5000
Auditors
Grant Thornton Audit Pty Ltd
Level 3, 170 Frome Street
ADELAIDE SA 5000
1
Mithril Resources Ltd
Chairman's Report
30 June 2017
Dear Fellow Shareholders,
On behalf of the Board of Directors, it is my pleasure to present the 2017 Financial Report for Mithril Resources Limited
(‘Mithril’ or ‘Company’).
During the year under review the company continued its focus on the Murchison Project where drilling was undertaken at the
Nanadie Well Copper Deposit and the adjacent Stark Copper Prospect. Significant copper mineralisation was intersected at
both prospects providing further confirmation that the area is host to two large copper mineralised systems less that 1km
apart that remain open at depth and along strike. Prospecting and sampling on the Murchison Project also identified two new
gold prospects, Fenceline and Kombi which are a priority for follow up and will be the focus for future exploration in the area.
In addition to our efforts at Murchison, Mithril’s exploration partners carried out aircore drilling for gold at Duffy Well,
estimated a new JORC Mineral Resource at Spargos Reward and identified a new gold target at Kurnalpi.
Also, a scientific drilling program was under taken at Coompana by the Geological Survey of South Australia together with
Geoscience Australia. Coompana is an underexplored region in the far southwest corner of South Australia, and Mithril has
an agreement with OZ Minerals Limited to assess this area for magmatic nickel – copper deposits.
To support our exploration activities, the Company raised $0.54M via a Share Purchase Plan and an additional $0.80M
through a Share Placement pursuant to Section 708 of Corporations Act during the year. New shares were issued at a price
of $0.005 (0.5 cents) for both the SPP and Placement. It was very pleasing to see that the Capital Raisings were well
supported by a number of existing shareholders as well as new investors.
Unfortunately, our share price has not reflected the hard work, success and dedication of our exploration team and I believe
that this largely due to the prevailing negative market conditions towards junior explorers. I assure you we are working as
hard as possible to provide value to our shareholders, and to ensure we maximise in-ground expenditure we have
maintained low overheads and adopted a number of measures to reduce running costs and increase efficiency.
I would like to take this opportunity to express my thanks to my fellow directors, management and staff for their dedication
and work during the past 12 months. We are committed to progressing the Company and advancing our projects towards
discovery for the benefit of all shareholders.
I also take this opportunity to thank all shareholders for your continued support of Mithril.
Graham Ascough
Chairman
2
Mithril Resources Ltd
ABN 30 099 883 922
Directors' Report
30 June 2017
Your directors submit their report for the year ended 30 June 2017.
DIRECTORS
The names and details of the Company’s directors in office during the financial year and until the date of this report are as
follows. Directors were in office for this entire year unless otherwise stated.
Mr Graham Ascough
Mr David Hutton
Mr Donald Stephens
Non-Executive Chairman
Managing Director
Non-Executive Director
Names, qualifications, experience and special responsibilities
Graham Ascough, BSc, PGeo (Non-Executive Chairman)
Graham Ascough is a senior resources executive with more than 25 years of industry experience evaluating mineral projects
and resources in Australia and overseas. He has had broad industry involvement ranging from playing a leading role in
setting the strategic direction for significant country-wide exploration programmes to working directly with mining and
exploration companies.
Mr Ascough is a geophysicist by training and was the Managing Director of Mithril Resources Ltd from October 2006 until
June 2012. Prior to joining Mithril in 2006, Mr Ascough was the Australian Manager of Nickel and PGM Exploration at the
major Canadian resources house, Falconbridge Ltd (acquired by Xstrata Plc in 2006).
Mr Ascough is also Chairman of ASX listed Musgrave Minerals Ltd, PNX Metals Ltd and Sunstone Metals Ltd (formerly
Avalon Minerals Ltd). He is a member of the Australian Institute of Mining and Metallurgy and is a Professional Geoscientist
of Ontario, Canada.
David Hutton, BSc, (Managing Director)
David Hutton is a geologist who has spent the last 24 years working in both exploration and mining throughout Australia and
overseas. After graduation, he spent 7 years with the MIM Group before joining Forrestania Gold NL / LionOre Australia,
where he was involved in gold exploration throughout the WA Goldfields. He worked at Western Metals as Chief Geologist of
the Lennard Shelf Operations prior to rejoining LionOre Australia where he was responsible for management of the East
Kimberley Nickel Joint Venture. Prior to commencing with Mithril Resources Ltd in June 2012, David worked at Breakaway
Resources where he was most recently Managing Director from May 2010 to June 2012.
David is a Fellow of the AusIMM and a Member of the AIG.
Donald Stephens, BA(Acc), FCA (Non-Executive Director)
Donald Stephens is a Chartered Accountant and corporate adviser with over 30 years of experience in the accounting
industry, including 14 years as a partner of HLB Mann Judd (SA), a firm of Chartered Accountants. He is a director of
Petratherm Ltd, Gooroo Ventures Ltd, Lawson Gold Ltd and is company secretary to Highfield Resources Ltd, Duxton Water
Ltd and Petratherm Ltd. In the last 3 years he has been a Director of Papyrus Australia Limited and RHS Ltd (formerly
Reproductive Health Science Ltd).
He holds other public company secretarial positions and directorships with private companies and provides corporate
advisory services to a wide range of organisations. He is also the company secretary and is a member of the Company’s
audit committee.
3
Mithril Resources Ltd
ABN 30 099 883 922
Directors' Report
30 June 2017
INTERESTS IN THE SHARES AND OPTIONS OF THE COMPANY AND RELATED BODIES
CORPORATE
As at the date of this report, the interests of the directors in the shares and options of Mithril Resources Ltd were:
David Hutton
Graham Ascough
Donald Stephens
DIVIDENDS
Number of Ordinary
Shares
Number of Options over
Ordinary Shares
8,962,272
17,823,905
11,416,762
6,000,000
-
-
No dividends were paid or declared since the start of the financial year. No recommendation for payment of dividends has
been made.
PRINCIPAL ACTIVITIES
The principal activities of the Company and consolidated entities (‘the Group’) during the financial year were:
·
·
·
to carry out exploration of mineral tenements, both on a joint venture basis and by the Group in its own right;
to continue to seek extensions of areas held and to seek out new areas with mineral potential; and
to evaluate results achieved through surface sampling, drilling and geophysical surveys carried out during the year.
There have been no significant changes in the nature of those activities during the year.
OPERATING RESULTS
The consolidated loss of the Group for the financial year after providing for income tax amounted to $787,602 [2016: Loss
$2,780,897].
REVIEW OF OPERATIONS
Mithril’s activities for the Financial Year ending 30 June 2017 (the “year”) comprised diamond drilling of copper
mineralisation and the identification of two new gold prospects at the Murchison Project as well as aircore and RC drilling f or
gold and nickel mineralisation at Lignum Dam.
Mithril’s exploration partners carried out aircore drilling for gold at Duffy Well, estimated a new JORC Mineral Resource at
Spargos Reward and identified a new gold target at Kurnalpi. The Geological Survey of South Australia (GSSA) together
with Geoscience Australia (GA) commenced a scientific drilling program at Coompana where Mithril and Oz Minerals are
assessing the nickel and copper potential of the region.
Corporate
During the Year, the Company spent $0.64M on its exploration activities and at 30 June 2017 the Company had cash
reserves of $0.82M.
The Company raised $0.54M via a Share Purchase Plan and an additional $0.80M through a Share Placement pursuant to
Section 708 of Corporations Act (Cth). New shares were issued at a price of $0.005 (0.5 cents) for both the SPP and
Placement. 10M unlisted Broker Options exercisable at $0.01 (1 cent) and expiring on 31 December 2020 were also issued
as part of the Placement.
Following the Capital Raisings, Mithril had 848,103,831 fully paid ordinary shares on issue.
Murchsion Project (Copper / Gold)
(Mithril 100% on 2 tenements and earning up to 75% on 3 others)
Diamond drilling undertaken at the Nanadie Well Copper Deposit and the adjacent Stark Copper Prospect (located 80
kilometres south east of Meekatharra, WA) returned the following results:
4
Mithril Resources Ltd
ABN 30 099 883 922
Directors' Report
30 June 2017
·
·
4.90m @ 1.80% copper, 0.25g/t gold from 88.40 metres, within a broader intercept of 127.75m @ 0.40% copper, 0.11g/t
gold from 42.80 metres (Nanadie Well), and
5.40m @ 1.25% copper, 0.26% nickel, 1.21g/t (gold + platinum + palladium “3PGE’s”) from 257.70 metres within a
broader intercept of 30.40m @ 0.52% copper, 0.13% nickel, 0.36g/t 3PGE’s from 248.50 metres (Stark).
The results reinforce their status as two large copper mineralised systems less that 1km apart that remain open in all
directions particularly to the south where a 13 kilometre target zone of untested magnetic anomalies exist.
Two new gold prospects were also identified during the Year, Fenceline and Kombi.
At the Fenceline Prospect, a zone of sub-cropping ferruginous and brecciated quartz veining has been mapped and sampled
over approximately 120 metres strike length with rock chip results ranging from 0.43 g/t gold to 8.22g/t gold. The zone, which
has never been drilled, remains open along strike to the south east.
At the Kombi Prospect historic underground workings (rock chip sampling results ranging from 0.27 g/t gold to 271 g/t gold)
and an adjacent soil anomaly have not been effectively drill tested with only wide spaced shallow RC drilling (less than 25
metres vertical depth) previously undertaken.
Fenceline, Kombi and the southern magnetic anomalies are a priority for follow up and will be the focus for future exploration
in this project area.
A 2004 JORC Code Compliant Inferred Resource of 36.07Mt @ 0.42% copper, 0.064 g/t gold - 151,506 tonnes copper and
74,233 ounces gold was estimated by Intermin Resources Limited (ASX: IRC) in 2013 for the Nanadie Well Copper Deposit
(see Intermin’s ASX Announcement “Initial Resource Estimate for the Nanadie Well Cu-Au Project” dated 19 September
2013).
The Nanadie Well Deposit, Stark Copper Prospect and Kombi Gold Prospect lie on tenements subject to a Farmin and Joint
Venture Agreement (Nanadie Well Joint Venture) with Intermin. Under the terms of the joint venture, Mithril can earn a 60%
interest in the tenements by completing expenditure of $2M by 14 April 2019, and an additional 15% by completing further
expenditure of $2M over a further 2 years. Fenceline and the southern magnetic targets lie on tenements 100% owned by
Mithril Resources.
Lignum Dam Project (Gold/Nickel)
(Mithril 100%)
Aircore and RC drilling at the Mexi Nickel Prospect (located 50 kilometres north-northeast of Kalgoorlie, WA) intersected a
broad zone of strongly weathered ultramafic - sampling of which returned up to 40m @ 0.46% nickel, 305ppm copper,
354ppm cobalt and 66ppb PGE’s from surface.
With an area of approximately 260km², Lignum Dam covers a package of gold and nickel prospective Archaean mafic,
ultramafic, and felsic rocktypes directly along strike from the Lindsay’s Gold Mining Centre and the high grade Silver Swan
nickel deposit.
Duffy Well Project (Gold)
(Mithril 100%, Doray Minerals earning up to 85% and operating)
Doray Minerals Limited (ASX: DRM) is earning up to an 85% interest in the project (located 30 kilometres east of
Meekatharra, WA) by completing exploration expenditure of $500,000 over 3 years.
Aircore drilling undertaken during the year to test multiple gold targets returned minor gold anomalism (maximum 0.06ppm
gold).
Spargos Reward Project (Gold / Lithium)
(Mithril 35%, Corona Minerals 65%)
During the year, a 2012 JORC Code Compliant Indicated and Inferred Mineral Resource of 1.01Mt @ 3.9g/t gold was
estimated for the Spargos Reward Gold Deposit (located 55km south of Kalgoorlie, WA) by independent mining consultants
Al Maynard and Associates Pty Ltd (AM&A) on behalf of Corona Minerals.
At Spargos Reward, Corona has earnt a 65% interest in the Project and elected to earn a further 20% equity (for a total of
85%) by sole funding expenditure through to the completion of a Positive Scoping Study on a 2012
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Mithril Resources Ltd
ABN 30 099 883 922
Directors' Report
30 June 2017
JORC Code Compliant Mineral Resource.
Kurnalpi Project (Gold / Nickel)
(Mithril 100%, Chesser Resources earning up to 80% and operating)
Chesser Resources Limited (ASX: CHZ) is earning an up to an 80% interest in the project (located 60 kilometres north east
of Kalgoorlie, WA) by completing expenditure of $250,000 over 4 years.
Auger geochemical sampling undertaken during the Year identified a number of new surface gold anomalies that will be the
focus of Chesser’s ongoing exploration.
Coompana Project (Nickel-Copper-PGE’s)
(OZ Minerals / Mithril)
Mithril and OZ Minerals Limited (ASX: OZL) are assessing Coompana for magmatic nickel – copper deposits, with OZ
Minerals having over 6,000km² of granted tenements in the area and in which, Mithril has a right to earn a 20% interest.
The Geological Survey of South Australia (GSSA) and Geoscience Australia (GA) scientific drilling program announced post
the end of the Quarter will provide valuable information about the geology and prospectivity of the Coompana region and will
assist in our desktop assessments.
OTHER PROJECTS
No field work was undertaken on the Leaky Bore Project or Grey Dam South Project (both Mithril – 100%).
COMPETENT PERSONS STATEMENT
The information in this report that relates to Exploration Targets and Exploration Results is based on information compiled by
Mr David Hutton, who is a Competent Person, and a Fellow of The Australasian Institute of Mining and Metallurgy. Mr Hutton
is Managing Director and a full-time employee of Mithril Resources Ltd. Mr Hutton has sufficient experience that is relevant
to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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 Hutton consents to the inclusion in the report of the matters based on his information in the form and context in which it
appears.
The information in this report that relates to the Spargos Reward Mineral Resource is based on information compiled by
Phillip Jones and Allen Maynard, both Competent Persons who are Members or Fellows of The Australasian Institute of
Geology. Mr Jones and Maynard have sufficient experience that is relevant to the style of mineralisation and type of deposit
under consideration and to the activity being undertaken 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 Jones and Maynard consent to the inclusion in the report of the matters based on his information in the form and context
in which it appears.
6
Mithril Resources Ltd
ABN 30 099 883 922
Directors' Report
30 June 2017
RISK MANAGEMENT
The Group takes a proactive approach to risk management. The board is responsible for ensuring that risks, and also
opportunities, are identified on a timely basis and that the Group's objectives and activities are aligned with the risks and
opportunities identified by the board.
The Group believes that it is crucial for all board members to be a part of this process, and as such the board has not
established a separate risk management committee.
The board has a number of mechanisms in place to ensure that management's objectives and activities are aligned with the
risks identified by the board. These include the following:
· Board approval of a strategic plan, which encompasses the Group's vision, mission and strategy statements,
designed to meet stakeholder’s needs and manage business risk.
·
Implementation of board approved operating plans and budgets and board monitoring of progress against these
budgets, including the establishment and monitoring of performance indicators of both a financial and non financial
nature.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There have been no significant changes in the state of affairs during the period.
EVENTS ARISING SINCE THE END OF THE REPORTING DATE
On 28 August 2017, the Company announced it had received firm commitments to raise $254,431 (before costs) through a
share placement. The proceeds of the share placement will be used to expedite drill testing of the Kombi Gold Prospect and
Fenceline Gold Prospect and provide for working capital. The placement would comprise 127,215,574 fully paid ordinary
shares at issue price of $0.002 (0.2 cents) per share. 10 million Broker Options exercisable at $0.01 (1 cent) expiring on 31
December 2020 were also to be issued subjected to Shareholder approval.
No other matters or circumstances have arisen since the end of the financial year which significantly affected or may
significantly affect the operations of the Group, the results of those operations or the state of affairs of the Group in future
financial years.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
The Group expects to maintain the present status and level of operations and therefore there are no likely developments in
the Group’s operations.
ENVIRONMENTAL REGULATION AND PERFORMANCE
The Group is aware of its responsibility to impact as little as possible on the environment, and where there is any
disturbance, to rehabilitate sites. During the year under review the majority of work carried out was in the Northern Territory
and Western Australia and the Group followed procedures and pursued objectives in line with guidelines published by the
Northern Territory/Western Australian Governments. These guidelines are quite detailed and encompass the impact on
owners and land users, heritage, health and safety and proper restoration practices. The Group supports this approach and
is confident that it properly monitors and adheres to these objectives, and any local conditions applicable wherever it
explores.
The Group is committed to minimising environmental impacts during all phases of exploration, development and production
through a best practice environmental approach. The Group shares responsibility for protecting the environment for the
present and the future. It believes that carefully managed exploration programs should have little or no long-lasting impact
on the environment and the company has formed a best practice policy for the management of its exploration programs. The
Group properly monitors and adheres to this approach and there were no environmental incidents to report for the year
under review. Furthermore, the Group is in compliance with the state and/or commonwealth environmental laws for the
jurisdictions in which it operates.
7
Mithril Resources Ltd
ABN 30 099 883 922
Directors' Report
30 June 2017
OCCUPATIONAL HEALTH, SAFETY AND WELFARE
In running its business, Mithril aims to protect the health, safety and welfare of employees, contractors and guests. In the
reporting period the Group experienced no medical aid incidents. The Group reviews its OHS&W policy at regular intervals
to ensure a high standard of OHS&W, and to reflect best practice in injury and accident prevention.
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
To the extent permitted by law, the Group has indemnified (fully insured) each director and the secretary of the Group for a
premium of $9,907. The liabilities insured include costs and expenses that may be incurred in defending civil or criminal
proceedings (that may be brought) against the officers in their capacity as officers of the Group or a related body, and any
other payments arising from liabilities incurred by the officers in connection with such proceedings, other than where such
liabilities arise out of conduct involving a willful breach of duty by the officers or the improper use by the officers of their
position or of information to gain advantage for themselves or someone else or to cause detriment to the Group.
CORPORATE GOVERNANCE
In recognising the need for the highest standards of corporate behavior and accountability, the Directors of Mithril Resources
Limited support and have adhered to the principles of sound corporate governance. The Board recognises the
recommendations of the Australian Securities Exchange Corporate Governance Council, and considers that Mithril
Resources is in compliance to the extent possible with those guidelines, which are of importance to the commercial
operation of a junior listed resources company. During the financial year, shareholders continued to receive the benefit of an
efficient and cost-effective corporate governance policy for the Company.
The Company has established a set of corporate governance policies and procedures and these can be found within the
Company’s
website:
www.mithrilresources.com.au/corporategovernance
Governance
Company’s
Statement
Corporate
located
the
on
SHARE OPTIONS
Unissued Shares
At the date of this report, the following options to acquire ordinary shares in the Company were on issue:
Issue Date Expiry
Date
Exercise Price Balance at 1 July
2016
Issued during the
year
Balance at
30 June
2017
31/07/2012 30/07/2017
29/11/2012 28/11/2017
29/11/2012 28/11/2017
22/07/2013 21/07/2018
20/06/2014 19/06/2019
21/04/2017 21/04/2019
22/06/2017 31/12/2020
22/06/2017 22/06/2022
$0.10
$0.10
$0.15
$0.05
$0.015
$0.005
$0.01
$0.01
700,000
1,000,000
1,000,000
1,050,000
1,400,000
6,500,000
-
-
11,650,000
-
-
-
-
-
-
700,000
1,000,000
1,000,000
1,050,000
1,400,000
6,500,000
13,000,000 13,000,000
3,000,000
16,000,000 27,650,000
3,000,000
Cancellation of Options
During the financial year no options were cancelled and/or lapsed due to not being exercised within the given exercise
period.
8
Mithril Resources Ltd
ABN 30 099 883 922
Directors' Report
30 June 2017
Remuneration Report (audited)
This Remuneration Report for the year ended 30 June 2017 outlines the remuneration arrangements of the Company and
the Group in accordance with the requirements of the Corporations Act 2001 (the Act) and its regulations. This information
has been audited as required by section 308(3C) of the Act.
Introduction
The remuneration report details the remuneration arrangements for key management personnel (KMP) who are defined as
those persons having authority and responsibility for planning, directing and controlling the major activities of the Company
and the Group, directly or indirectly, including any director (whether executive or otherwise) of the Parent. These are as
follows:
Mr Graham Ascough
Mr David Hutton
Mr Donald Stephens
Mr Jim McKinnon-Matthews
Chairman
Managing Director
Non-Executive Director
General Manager - Geology
Remuneration philosophy
The board is responsible for determining remuneration policies applicable to directors and senior executives of the Group.
The broad policy is to ensure that remuneration properly reflects the individuals' duties and responsibilities and that
remuneration is competitive in attracting, retaining and motivating people with appropriate skills and experience. At the time
of determining remuneration consideration is given by the board to the Group's financial performance.
Employment contracts
The employment conditions of the Managing Director, Mr David Hutton, are formalised in a contract of employment. Mr
Hutton commenced employment on 18th June 2012 and his current gross salary, inclusive of 9.5% superannuation
guarantee, is $274,620. The Company or the employee may terminate the employment contract without cause by providing
6 months written notice or making payment in lieu of notice, based on the annual salary component. Termination payments
are generally not payable on resignation or dismissal for serious misconduct. In the instance of serious misconduct the
Company can terminate employment at any time.
The employment conditions of the General Manager-Geology, Mr Jim McKinnon-Matthews, are formalised in a contract of
employment. Mr McKinnon-Matthews commenced employment on 13 January 2003 and his current gross salary, inclusive of
superannuation guarantee, is $129,441. The Company or the employee may terminate the employment contract without
cause by providing three (3) months written notice or making payment in lieu of notice, based on the annual salary
component. Termination payments are generally not payable on resignation or dismissal for serious misconduct. In the
instance of serious misconduct the Company can terminate employment at any time.
Key management personnel remuneration and equity holdings
The board currently determines the nature and amount of remuneration for board members and senior executives of the
Group. The policy is to align Director and executive objectives with shareholder and business objectives by providing a fixed
remuneration component and offering specific long-term incentives.
The non-executive Directors and other executives receive a superannuation guarantee contribution required by the
government, which is currently 9.5%, and do not receive any other retirement benefits. Some individuals, however, may
choose to sacrifice part of their salary to increase payments towards superannuation. All remuneration paid to directors and
executives is expensed as incurred. Executives are also entitled to participate in the Company share option scheme. Options
are valued using the Black-Scholes methodology.
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Mithril Resources Ltd
ABN 30 099 883 922
Directors' Report
30 June 2017
The board policy is to remunerate non-executive Directors at market rates based on comparable companies for time,
commitment and responsibilities. The board determines payments to non-executive Directors and reviews their remuneration
annually, based on market practice, duties and accountability. Independent external advice is sought when required.
There is no direct relationship between the remuneration policy and the entities performance.
Voting and comments made at the company’s 2016 Annual General Meeting
Mithril Resources Ltd received more than 97.22% of ‘yes’ votes on its remuneration report for the 2016 financial year. The
company did not receive any specific feedback at the AGM or throughout the year on its remuneration practices.
Consequences of performance on shareholder wealth
In considering the Group’s performance and benefits for shareholder wealth, the Board have regard to the following indices
in respect of the current financial and the previous financial years:
Item
Loss per share (cents)
Share price – at 30 June
Share price – High for the year ended 30 June
Share price – low for the year ended 30 June
2017
(0.11)
$0.003
$0.009
$0.003
2016
(0.62)
$0.006
$0.018
$0.003
Remuneration details for the year ended 30 June 2017
Details of the nature and amount of each element of the remuneration of each Director and KMP of the Group are as follows:
Employees
Executive Directors
David Hutton
Non-Executive
Directors
Graham Ascough2
Donald Stephens2
Other KMP
Jim McKinnon-Matthews
Total
Short-term
benefits
Post-
employment
Share-based
payments
Year Salary & Fees Superannuation Options1
Shares3
Performance
related (%)
Total
2017
2016
2017
2016
2017
2016
2017
2016
2017
2016
243,854
183,825
29,565
39,420
18,900
25,200
114,741
111,335
407,060
359,780
23,166
17,463
7,600
-
-
-
274,620
201,288
-
-
1,766
2,394
10,900
10,577
35,832
30,434
-
-
-
-
3,800
-
11,400
-
43,334
-
30,334
-
-
-
73,668
-
72,899
39,420
51,000
27,594
129,441
121,912
572,960
390,214
0%
0%
0%
0%
0%
0%
0%
0%
1. Share-based payments remuneration relates to amortisation of the fair value of options granted. This aspect of
remuneration is a non-cash benefit.
2. Salaries and fees paid to Messrs. Ascough and Stephens were reduced and deferred during the financial year ended 30
June 2017, therefore the aforementioned directors received no directors’ fees during the year.
3. Shares issued to Messrs. Ascough and Stephens were in lieu of unpaid directors fees from prior periods.
10
Mithril Resources Ltd
ABN 30 099 883 922
Directors' Report
30 June 2017
Shareholdings of Directors and Key Management Personnel
The number of ordinary shares in the Company held during the financial year by Directors and KMP of the Group, including
their personally related parties, is set out below.
2017
Directors
David Hutton
Graham Ascough
Donald Stephens
Key Management
Jim McKinnon- Matthews
Balance at
start of year
Granted as
remuneration
Acquired /
(Disposed)
Held at the end of
reporting period
5,962,275
8,633,334
4,083,334
-
6,190,571
4,333,428
800,000
19,478,943
-
10,523,999
3,000,000
3,000,000
3,000,000
-
9,000,000
8,962,275
17,823,905
11,416,762
800,000
39,002,942
Option holdings of Directors and Key Management Personnel
The number of options over ordinary shares in the Company held during the financial year by each Director and specified
KMP of the Group, including their personally related parties, are set out below:
2017
Directors
David Hutton
Graham Ascough
Donald Stephens
Key Management
Jim McKinnon- Matthews
Balance at
start of year
Granted as
remuneration
Exercised
Other
changes
Vested and
exercisable at
the end of the
reporting
period
Held at the
end of
reporting
period
2,000,000
-
-
2,250,000
4,250,000
4,000,000
-
-
2,000,000
6,000,000
-
-
-
-
-
-
-
-
-
-
6,000,000
-
-
6,000,000
-
-
4,250,000
10,250,000
4,250,000
10,250,000
The Company has not used remuneration consultants.
End of Remuneration Report (audited).
DIRECTORS MEETINGS
The number of meetings of directors (including meetings of committees of directors) held during the year
and the number of meetings attended by each director was as follows:
Number of meetings held
Director’s Meetings
5
Audit Committee
2
Number of meetings attended:
David Hutton
Graham Ascough
Donald Stephens
Eligible
5
5
5
Attended
5
5
5
Eligible
2
2
2
Attended
2
2
2
Members acting on the audit committee of the board are:
Graham Ascough
Non-executive Director
David Hutton
Donald Stephens
Non-executive Director
Non-executive Director/ Company Secretary
PROCEEDINGS ON BEHALF OF THE GROUP
No person has applied for leave of Court to bring proceedings on behalf of the Group or intervene in any proceedings to
which the Group is a party for the purpose of taking responsibility on behalf of the Group for all or any part of those
proceedings. The Group was not a party to any such proceedings during the year.
11
Mithril Resources Ltd
ABN 30 099 883 922
Directors' Report
30 June 2017
AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES
Grant Thornton Audit Pty Ltd, in its capacity as auditor for Mithril Resources Ltd, has not provided any non-audit services
throughout the reporting year. The auditor’s independence declaration for the year ended 30 June 2017 as required under
section 307C of the Corporations Act 2001 has been received and can be found on the following page.
Signed in accordance with a resolution of the Board of Directors.
Mr David Hutton
Managing Director
Dated this 12 day of September 2017
12
Grant Thornton House
Level 3
170 Frome Street
Adelaide, SA 5000
Correspondence to:
GPO Box 1270
Adelaide SA 5001
T 61 8 8372 6666
F 61 8 8372 6677
E info.sa@au.gt.com
W www.grantthornton.com.au
Auditor’s Independence Declaration
To the Directors of Mithril Resources Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor
for the audit of Mithril Resources Limited for the year ended 30 June 2017, I declare that, to the
best of my knowledge and belief, there have been:
a
no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
b
no contraventions of any applicable code of professional conduct in relation to the audit.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
B K Wundersitz
Partner - Audit & Assurance
Adelaide, 12 September 2017
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the
context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm
is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and
are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its
Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
Mithril Resources Ltd
ABN 30 099 883 922
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the Year Ended 30 June 2017
Revenue
Other income
Impairment of exploration assets
Employee benefits expense
Depreciation expense
Finance costs
Share-based payments expense
Impairment of available-for-sale investments
Other expenses
Loss before income tax expense
Income tax expense
Total loss for the year
Other comprehensive income, net of income tax
Items that will not be reclassified subsequently to profit or loss
Items that may be reclassified to profit or loss when specific conditions are
met
Net fair value movements for available-for-sale financial assets
Other comprehensive income for the year, net of tax
Note
5(a)
5(b)
5(c)
5(c)
5(c)
5(c)
5(c)
6
Consolidated
2017
$
33,248
779
(272,498)
(292,725)
(5,389)
(727)
-
-
(244,695)
2016
$
44,698
21,387
(2,063,970)
(196,124)
(35,181)
(3,283)
(45,500)
(235,173)
(255,143)
(782,007)
(5,595)
(2,768,289)
(12,608)
(787,602)
(2,780,897)
-
-
-
-
35,000
35,000
Total comprehensive income for the year
(787,602)
(2,745,897)
Earnings per share
Basic earnings per share (cents)
Diluted earnings per share (cents)
7
7
(0.11)
(0.11)
(0.62)
(0.62)
The accompanying notes form part of these financial statements.
14
Mithril Resources Ltd
ABN 30 099 883 922
Consolidated Statement of Financial Position
As At 30 June 2017
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Plant and equipment
Exploration and evaluation assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
Employee benefits
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Employee benefits
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Consolidated
2017
$
2016
$
Note
8
9
10
12
13
14
15
15
818,055
-
16,921
628,298
12,788
-
834,976
641,086
19,829
1,632,001
22,656
1,270,163
1,651,830
1,292,819
2,486,806
1,933,905
109,140
35,188
124,271
41,045
144,328
165,316
26,717
16,147
26,717
16,147
171,045
181,463
2,315,761
1,752,442
17
18
19
34,824,778
215,400
(32,724,417)
33,531,257
158,000
(31,936,815)
2,315,761
1,752,442
The accompanying notes form part of these financial statements.
15
Mithril Resources Ltd
ABN 30 099 883 922
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2017
Issued
Capital
Accumulated
Losses
Share Option
Reserve
Available-for-Sale
Revaluation Reserve
Consolidated
Balance at 1 July 2016
Net profit/(loss) for the year
Note
$
$
$
$
19
33,531,257 (31,936,815)
(787,602)
-
158,000
-
Total comprehensive income for the year
-
(787,602)
-
Transactions with owners in their capacity as owners
Share based payment transactions
Share issues via placement
Transaction costs (net of tax effect)
17, 18
17
73,668
1,353,504
(133,651)
-
-
-
57,400
-
-
Balance at 30 June 2017
34,824,778 (32,724,417)
215,400
-
-
-
-
-
-
-
Total
$
1,752,442
(787,602)
(787,602)
131,068
1,353,504
(133,651)
2,315,761
Balance at 1 July 2015
Net profit/(loss) for the year
Net fair value movements for available-for-sale financial assets
19
32,879,698 (30,847,508)
(2,780,897)
-
-
-
1,804,090
-
-
(35,000)
3,801,280
- (2,780,897)
35,000
35,000
Total comprehensive income for the year
-
(2,780,897)
-
35,000 (2,745,897)
Transactions with owners in their capacity as owners
Share based payment transactions
Share issue via rights issue on
Transaction costs (net of tax effect)
Transfer to accumulated losses from share option reserve
17
17
18, 19
-
692,300
(40,741)
-
-
-
-
1,691,590
45,500
-
-
(1,691,590)
Balance at 30 June 2016
33,531,257 (31,936,815)
158,000
-
-
-
-
-
45,500
692,300
(40,741)
-
1,752,442
The accompanying notes form part of these financial statements.
16
Mithril Resources Ltd
ABN 30 099 883 922
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2017
Consolidated
2017
$
2016
$
Note
CASH FLOWS FROM OPERATING ACTIVITIES:
Payments to suppliers and employees
Interest received
Finance costs
Net cash (used in) provided by operating activities
21
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of plant and equipment
Proceeds from sale of available-for-sale investment
Purchase of plant and equipment
Payments for exploration activities
Proceeds from sale of tenements
Receipts from JV partners
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issue of shares
Payment of transaction costs
Net cash provided by (used in) financing activities
Net (decrease) increase in cash and cash equivalents held
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of financial year
(477,495)
6,293
(727)
(451,234)
6,863
(3,283)
(471,929)
(447,654)
-
-
(2,562)
(634,336)
-
38,326
43,750
261,027
(1,733)
(563,560)
100,000
54,104
(598,572)
(106,412)
1,353,504
(93,246)
692,300
(53,349)
1,260,258
638,951
189,757
628,298
84,885
543,413
818,055
628,298
The accompanying notes form part of these financial statements.
17
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
This consolidated financial report covers the consolidated financial statements and notes of Mithril Resources Ltd ('the
Company') as an individual entity and the consolidated Group comprising Mithril Resources Ltd and its Controlled Entities
('the Group'). Mithril Resources Ltd is a listed public Company incorporated and domiciled in Australia.
Each of the entities within the Group prepare their financial statements based on the currency of the primary economic
environment in which the entity operates (functional currency). The consolidated financial statements are presented in
Australian dollars which is the parent entity’s functional and presentation currency.
The separate consolidated financial statements and notes of the parent entity, Mithril Resources Ltd, have not been
presented within this consolidated financial report as permitted by amendments made to the Corporations Act 2001. Parent
entity summary is included in Note 27.
The financial report was authorised for issue by the Directors on 12 September 2017.
Comparatives are consistent with prior years, unless otherwise stated.
1 Basis of Preparation
The financial statements are general purpose financial statements that have been prepared in accordance with the
Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the
Australian Accounting Standards Board and the Corporations Act 2001.
These financial statements and associated notes comply with International Financial Reporting Standards as issued by
the International Accounting Standards Board.
The financial statements, except for the cash flow information, have been prepared on an accruals basis and are based
on historical costs modified, where applicable, by the measurement at fair value of selected non-current assets,
financial assets and financial liabilities.
Significant accounting policies adopted in the preparation of these financial statements are presented below and are
consistent with prior reporting periods unless otherwise stated.
2
Summary of Significant Accounting Policies
(a) Principles of Consolidation
The consolidated financial statements include the financial position and performance of controlled entities from
the date on which control is obtained until the date that control is lost.
Intragroup assets, liabilities, equity, income, expenses and cashflows relating to transactions between entities in
the consolidated entity have been eliminated in full for the purpose of these financial statements.
Appropriate adjustments have been made to a controlled entity’s financial position, performance and cash flows
where the accounting policies used by that entity were different from those adopted by the consolidated entity.
All controlled entities have a June financial year end. A list of controlled entities is contained in Note 23 to the
financial statements.
Subsidiaries
Subsidiaries are all entities (including structured entities) over which the parent has control. Control is
established when the parent is exposed to, or has rights to variable returns from its involvement with the entity
and has the ability to affect those returns through its power to direct the relevant activities of the entity.
18
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
2
Summary of Significant Accounting Policies
(a) Principles of Consolidation
Joint Arrangements
AASB 11 Joint Arrangements defines a joint arrangement as an arrangement of which two or more parties have
joint control and classifies these arrangements as either joint ventures or joint operations.
Mithril Resources Ltd has determined that it has both joint ventures and joint operations.
Joint operations: In relation to its joint venture operations, where the venturer has the rights to the individual
assets and obligations arising from the arrangement, Mithril Resources Ltd has recognised:
·
·
·
·
·
Its assets, including its share of any assets held jointly;
Its liabilities, including its share of any liabilities incurred jointly;
Its revenue from the sale of its share of the output arising from the joint operation;
Its share of the revenue from the sale of the output by the joint operation;
Its expenses, including its share of any expenses incurred jointly.
These figures are incorporated into the relevant line item in the primary statements.
(b) Revenue and other income
Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economic
benefits associated with the transaction will flow to the Group and specific criteria relating to the type of revenue
as noted below, has been satisfied.
Revenue is measured at the fair value of the consideration received or receivable and is presented net of
returns, discounts and rebates.
All revenue is stated net of the amount of goods and services tax (GST).
Interest revenue
Interest is recognised using the effective interest method.
Rendering of services
Revenue in relation to rendering of services is recognised depending on whether the outcome of the services
can be estimated reliably. If the outcome can be estimated reliably then the stage of completion of the services
is used to determine the appropriate level of revenue to be recognised in the period.
If the outcome cannot be reliably estimated then revenue is recognised to the extent of expenses recognised
that are recoverable.
19
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
2
Summary of Significant Accounting Policies
(b) Revenue and other income
Adminstration fees
Administration fees are recognised on an accruals basis when the Group is entitled to it.
Grant revenue
Government grants are recognised at fair value where there is reasonable assurance that the grant will be
received and all grant conditions will be met. Grants relating to expense items are recognised as income over
the periods necessary to match the grant to the costs they are compensating. Research and development grants
are recognised as an income tax benefit in the consolidated statement of profit or loss and other comprehensive
income when they are received.
(c) Finance costs
Finance costs directly attributable to the acquisition, construction or production of assets that necessarily take a
substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until
such time as the assets are substantially ready for their intended use or sale.
All other finance costs are recognised in income in the period in which they are incurred.
(d) Leases
Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but
not the legal ownership that are transferred to entities in the Group, are classified as finance leases.
Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair
value of the leased property or the present value of the minimum lease payments, including any guaranteed
residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest
expense for the period.
Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor, are
charged as expenses in the periods in which they are incurred. The lease is not recognised in the consolidated
statement of financial position.
Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over
the life of the lease term.
(e) Cash and cash equivalents
Cash and cash equivalents comprises cash on hand, demand deposits and short-term investments which are
readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.
Bank overdrafts also form part of cash equivalents for the purpose of the consolidated statement of cash flows
and are presented within current liabilities on the consolidated statement of financial position.
20
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
2
Summary of Significant Accounting Policies
(f) Trade and other receivables
Trade receivables, which generally have 30-90 day terms, are recognised and carried at original invoice amount
less an allowance for any uncollectible amounts.
An allowance for doubtful debts is made when there is objective evidence that the Group will not be able to
collect the debts. Bad debts are written off when identified.
(g) Financial instruments
Initial recognition and measurement
Financial instruments are recognised initially using trade date accounting, i.e. on the date that Company
becomes party to the contractual provisions of the instrument.
On initial recognition, all financial instruments are measured at fair value plus transaction costs (except for
instruments measured at fair value through profit or loss where transaction costs are expensed as incurred).
Classification and subsequent measurement
Financial assets at fair value through profit and loss
A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or
if so designated by management and within the requirements of AASB 139: Recognition and Measurement of
Financial Instruments. Derivatives are also categorised as held for trading unless they are designated as
hedges. Realised and unrealised gains and losses arising from changes in the fair value of these assets are
included in the consolidated statement of profit or loss and other comprehensive income in the period in which
they arise.
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 stated at amortised cost using the effective interest rate method.
Held-to-maturity investments
These investments have fixed maturities, and it is the Group's intention to hold these investments to maturity.
Any held-to-maturity investments held by the Group are stated at amortised cost using the effective interest rate
method.
Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets, which include any financial assets not
included in the above categories. They comprise investments in the equity of other entities where there is neither
a fixed maturity nor fixed or determinable payments. Available-for-sale financial assets are reflected at fair value.
Unrealised gains and losses arising from changes in fair value are taken directly to equity.
21
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
2
Summary of Significant Accounting Policies
(g) Financial instruments
Financial liabilities
Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal
payments and amortisation.
Impairment of financial assets
At the end of the reporting period the Company assesses whether there is any objective evidence that a financial
asset or group of financial assets is impaired.
Financial assets at amortised cost
If there is objective evidence that an impairment loss on financial assets carried at amortised cost has been
incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the
present value of the estimated future cash flows discounted at the financial assets original effective interest rate.
Impairment on loans and receivables is reduced through the use of an allowance accounts, all other impairment
losses on financial assets at amortised cost are taken directly to the asset.
If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related
objectively to an event occurring after the impairment was recognised, the previously recognised impairment
loss is reversed through profit or loss to the extent the carrying amount of the investment at the date the
impairment is reversed does not exceed what the amortised cost would have been had the impairment not been
recognised.
Available-for-sale financial assets
A significant or prolonged decline in value of an available-for-sale asset below its cost is objective evidence of
impairment, in this case, the cumulative loss that has been recognised in other comprehensive income is
reclassified from equity to profit or loss as a reclassification adjustment. Any subsequent increase in the value of
the asset is taken directly to other comprehensive income.
Derecognition
Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is
transferred to another party whereby the entity no longer has any significant continuing involvement in the risks
and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are
either discharged, cancelled or expire. The difference between the carrying value of the financial liability,
extinguished or transferred to another party and the fair value of consideration paid, including the transfer of
non-cash assets or liabilities assumed is recognised in profit or loss.
(h) Income Tax
The tax expense recognised in the consolidated statement of profit or loss and other comprehensive income
comprises of current income tax expense plus deferred tax expense (being the movement in deferred tax assets
and liabilities and unused tax losses during the year).
Current tax is the amount of income taxes payable (recoverable) in respect of the taxable profit (loss) for the
22
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
2
Summary of Significant Accounting Policies
(h) Income Tax
year and is measured at the amount expected to be paid to (recovered from) the taxation authorities, using the
tax rates and laws that have been enacted or substantively enacted by the end of the reporting period. Current
tax liabilities (assets) are measured at the amounts expected to be paid to (recovered from) the relevant taxation
authority.
Deferred tax is provided on temporary differences which are determined by comparing the carrying amounts of
tax bases of assets and liabilities to the carrying amounts in the consolidated financial statements.
Deferred tax is not provided for the following:
·
·
·
The initial recognition of an asset or liability in a transaction that is not a business combination and at the
time of the transaction, affects neither accounting profit nor taxable profit (tax loss).
Taxable temporary differences arising on the initial recognition of goodwill.
Temporary differences related to investment in subsidiaries, associates and jointly controlled entities to
the extent that the Group is able to control the timing of the reversal of the temporary differences and it is
probable that they will not reverse in the foreseeable future.
Deferred tax assets and liabilities are measured 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 (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period.
Deferred tax assets are recognised for all deductible temporary differences and unused tax losses to the extent
that it is probable that taxable profit will be available against which the deductible temporary differences and
losses can be utilised.
Current and deferred tax is recognised as income or an expense and included in profit or loss for the period
except where the tax arises from a transaction which is recognised in other comprehensive income or equity, in
which case the tax is recognised in other comprehensive income or equity respectively.
Tax consolidation
Mithril Resources Ltd and its wholly owned Australian resident entities are part of a tax consolidated group under
the tax consolidation legislation as of 1 July 2007.
The head entity within the tax-consolidated group is Mithril Resources Ltd. Mithril Resources Ltd and each of its
wholly-owned controlled entities recognise the current and deferred tax assets and deferred tax liabilities
applicable to the transactions undertaken by it, after elimination of intra-group transactions. Mithril Resources Ltd
recognises the entire tax-consolidated group's retained tax losses.
(i) Goods and Services Tax (GST)
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except
where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).
Receivables and payables are stated inclusive of GST. The net amount of GST recoverable from, or payable to,
the ATO is included as part of receivables or payables in the consolidated statement of financial position.
23
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
2
Summary of Significant Accounting Policies
(i) Goods and Services Tax (GST)
Cash flows in the consolidated statement of cash flows are included on a gross basis and the GST component of
cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation
authority is classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the
taxation authority.
(j) Plant and Equipment
Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated
depreciation and impairment.
Costs include purchase price, other directly attributable costs and the initial estimate of the costs of dismantling
and restoring the asset, where applicable.
Depreciation
Property, plant and equipment, excluding freehold land, is depreciated on a reducing balance basis over the
assets useful life to the Group, commencing when the asset is ready for use.
The depreciation rates used for each class of depreciable asset are shown below:
Fixed asset class
Depreciation rate
Plant and Equipment
Motor Vehicles
10 - 40%
22.5%
At the end of each annual reporting period, the depreciation method, useful life and residual value of each asset
is reviewed. Any revisions are accounted for prospectively as a change in estimate.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains
and losses are included in the consolidated statement of profit or loss and other comprehensive income.
(k) Impairment of non-financial assets
At the end of each reporting period the Group determines whether there is any evidence of impairment for its
non-financial assets.
Where this indicator exists and regardless for goodwill, indefinite life intangible assets and intangible assets not
yet available for use, the recoverable amount of the asset is estimated.
Where assets do not operate independently of other assets, the recoverable amount of the relevant
cash-generating unit (CGU) is estimated.
The recoverable amount of an asset or CGU is the higher of the fair value less costs of disposal and the value in
use. Value in use is the present value of the future cash flows expected to be derived from an asset or
cash-generating unit. Where the recoverable amount is less than the carrying amount, an impairment loss is
recognised in profit or loss.
24
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
2
Summary of Significant Accounting Policies
(k) Impairment of non-financial assets
Reversal indicators are considered in subsequent periods for all assets which have suffered an impairment loss,
except for goodwill.
(l) Exploration and development expenditure
Exploration, evaluation and development expenditure incurred is accumulated in respect of each identifiable
area of interest. These costs are only carried forward to the extent that they are expected to be recouped
through 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. As the asset is not
available for use it is not depreciated or amortised.
Accumulated costs in relation to an abandoned area are written off in full against profit or loss in the period in
which the decision to abandon that area is made.
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. When provisions for closure and rehabilitation are initially recognised, the
corresponding cost is capitalised as an asset representing part of the cost of acquiring the future economic
benefits of the operation. The capitalised cost of closure and rehabilitation activities is recognised in property,
plant and equipment and depreciated accordingly. The value of the provision is progressively increased over
time as the effect of discounting unwinds, creating an expense which is recognised in finance costs. 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 discounted to their
present value.
Any changes in the estimates for the costs are accounted on a prospective basis in the consolidated statement
of profit or loss and other comprehensive income. In determining the costs of site restoration, there is an
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 restoration will be completed within
one year of abandoning the site.
(m) Trade and other payables
Trade and other payables are carried at amortised costs and represent liabilities for goods and services provided
to the Group prior to the end of the financial year that are unpaid and arise when the the Group becomes obliged
to make future payments in respect of the purchase of these goods and services.
(n) Provisions
Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for
which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.
When the Group expects some or all of a provision to be reimbursed, for example under an insurance contract,
the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The
expense relating to any provision is presented in the consolidated statement of profit or loss and other
comprehensive income net of any reimbursement.
25
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
2
Summary of Significant Accounting Policies
(n) Provisions
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects the risks specific to the liability.
(o) Employee benefits
Provision is made for the Group's liability for employee benefits arising from services rendered by employees to
the end of the reporting period. Employee benefits that are expected to be wholly settled within one year have
been measured at the amounts expected to be paid when the liability is settled, plus related on-costs.
Other long-term employee benefits
The Company’s liabilities for annual leave and long service leave are included in other long term benefits as they
are not expected to be settled wholly within twelve (12) months after the end of the period in which the
employees render the related service. They are measured at the present value of the expected future payments
to be made to employees. The expected future payments incorporate anticipated future wage and salary levels,
experience of employee departures and periods of service, and are discounted at rates determined by reference
to market yields at the end of the reporting period on high quality corporate bonds that have maturity dates that
approximate the timing of the estimated future cash outflows. Any re-measurements arising from experience
adjustments and changes in assumptions are recognised in profit or loss in the periods in which the changes
occur.
The Company presents employee benefit obligations as current liabilities in the consolidated statement of
financial position if the Company does not have an unconditional right to defer settlement for at least twelve (12)
months after the reporting period, irrespective of when the actual settlement is expected to take place.
(p) Equity-settled compensation
The Group provides benefits to employees of the Group in the form of share-based payments, whereby
employees receive options incentives (equity-settled transactions).
There is currently one plan in place to provide these benefits, the Employee Share Option Plan (ESOP) which
provides benefits to directors and employees.
The cost of these equity-settled transactions with employees is measured by reference to the fair value at the
date at which they were granted. The fair value is determined using the Black-Scholes option pricing model.
The cost of equity-settled transactions is recognised as an expense in the consolidated statement of profit or
loss and other comprehensive income, together with a corresponding increase in the share option reserve, when
the options are issued. However, where options have vesting terms attached, the cost of the transaction is
amortised over the vesting period.
Upon the exercise of options, the balance of share based payments reserve relating to those options is
transferred to issued capital.
(q) Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares
and share options which vest immediately are recognised as a deduction from equity, net of any tax effects.
26
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
2
Summary of Significant Accounting Policies
(r) Earnings per share
The Group presents basic and diluted earnings per share information for its ordinary shares.
Basic earnings per share is calculated by dividing the profit attributable to owners of the company by the
weighted average number of ordinary shares outstanding during the year.
Diluted earnings per share adjusts the basic earnings per share to take into account the after income tax effect
of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average
number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive
potential ordinary shares.
In accordance with AASB 133 ‘Earnings per Share’, as potential ordinary shares may only result in a situation
where their conversion results in an increase in loss per share or decrease in profit per share from continuing
operations, no dilutive effect has been taken into account in 2017 and 2016.
(s)
Going concern
The financial report has been prepared on the basis of a going concern. The financial report shows the Group
incurred a net loss of $787,602 (2016: $2,780,897) and a net cash outflow from operating and investing activities
of $1,070,501 (2016: $554,066) during the year ended 30 June 2017. The Group continues to be economically
dependent on the generation of cashflow from the business and/ or raising additional capital as and when
required for the continued operations including the exploration program and the provision of working capital.
The Group’s ability to continue as a going concern is contingent upon generation of cashflow from its business
and/ or successfully raising additional capital. If sufficient cash flow is not generated and/or additional funds are
not raised, the going concern basis may not be appropriate, with the result that the Group may have to realise its
assets and extinguish its liabilities, other than in the ordinary course of business and at amounts different from
those stated in the financial report. No allowance for such circumstances has been made in the financial report.
(t)
Adoption of new and revised accounting standards
There were no material new and revised standards which were effective for annual periods begining on or after 1
July 2016 that were adopted by the group.
(u)
New Accounting Standards and Interpretations
The AASB has issued new and amended Accounting Standards and Interpretations that have mandatory
application dates for future reporting periods. The Group has decided not to early adopt these Standards. The
following table summarises those future requirements, and their impact on the Group where the standard is
relevant:
27
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
2
Summary of Significant Accounting Policies
(u)
New Accounting Standards and Interpretations
Effective date for
Group (annual
reporting periods
beginning on or
Standard Name
after)
Nature of change
Likely Impact
AASB 9 Financial Instruments
1 January 2018
AASB 16 Leases
1 January 2018
AASB 2016-2 Disclosure Initiative –
Amendment to AASB 107
1 January 2017
AASB 2016-5 Amendments to Australian
Accounting Standards - Classification
and Measurement of Sharebased
Payment Transactions
1 January 2018
This Standard will be applicable retrospectively and
includes revised requirements for the classification
and measurement of financial instruments, revised
recognition and derecognition requirements for
financial instruments and simplified requirements for
hedge accounting. Key changes made to this
standard that may affect the Group on initial
application include certain simplifications to the
classification of financial assets, simplifications to
the accounting of embedded derivatives, and the
irrevocable election to recognise gains and losses
on investments in equity instruments that are not
held for trading in other comprehensive income.
When this standard is first
adopted for the year ending
30 June 2019, there will be
no material impact on the
transactions and balances
recognised in the financial
statements
AASB 15 introduces a five step process for revenue
recognition with the core principle of the new
Standard being for entities to recognise revenue to
depict the transfer of goods or services to customers
in amounts that reflect the consideration (that is,
payment) to which the entity expects to be entitled in
exchange for those goods or services.
When this standard is first
adopted for the year ending
30 June 2019, there will be
no material impact on the
transactions and balances
recognised in the financial
statements
This standard amends AASB 107 Statement of
Cash Flows to require entities preparing financial
statements in accordance with Tier 1 reporting
requirements to provide disclosures that enable
users of financial statements to evaluate changes in
liabilities arising from financing activities, including
both changes arising from cash flows and non-cash
changes.
When these amendments
are first adopted for the year
ending 30 June 2018, there
will be no material impact on
the financial statements.
When these amendments
are first adopted for the year
ending 30 June 2019, there
will be no material impact on
the financial statements.
This Standard amends AASB 2 Share-based
Payment to address:
-The accounting for the effects of vesting and
non-vesting conditions on the measurement of
cash-settled share-based payments;
-The classification of share-based payment
transactions with a net settlement feature for
withholding tax obligations; and
-The accounting for a modification to the terms and
conditions of a share-based payment that changes
the classification of the transaction from cash-settled
to equity-settled.
28
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
3 Critical Accounting Estimates and Judgements
The Directors make estimates and judgements during the preparation of these financial statements regarding
assumptions about current and future events affecting transactions and balances.
These estimates and judgements are based on the best information available at the time of preparing the financial
statements, however as additional information is known then the actual results may differ from the estimates.
The significant estimates and judgements made have been described below.
Key judgements - capitalisation of exploration and evaluation expenditure
The Group's policy for exploration and evaluation is discussed in Note 2(l). The application of this policy requires
management to make certain assumptions as to future events and circumstances. Any such estimates and
assumptions may change as new information becomes available. If, after having capitalised exploration and evaluation
expenditure, management concludes that the capitalised expenditure is unlikely to be recovered by future sale or
exploration, then the relevant capitalised amount will be written off through the consolidated statement of profit or loss
and other comprehensive income.
4 Operating Segments
The Board has considered the requirements of AASB 8 Operating Segments and the internal reports that are reviewed
by the chief operating decision maker (the Board) in allocating resources and has concluded at this time that there are
no separately identifiable segments.
29
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
5 Revenue and expenses
(a)
Revenue
Administration fees
Bank interest received or receivable
Total revenue
(b)
Other income
Other income
Net gains on disposal of property, plant and equipment
Total other income
Consolidated
2017
$
2016
$
25,538
7,710
37,965
6,733
33,248
44,698
779
-
779
1,280
20,107
21,387
30
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
5 Revenue and expenses
(c)
Expenses
Impairment of Non-Current Assets
Capitalised tenement costs written off
Depreciation of Non-Current Assets
Plant and equipment
Employee Benefits Expense
Wages, salaries, directors fees & other remuneration expenses
Superannuation
Transfer to annual leave provision
Transfer from/(to) long service leave provision
Share-based payments expense
Transfer (to) exploration assets
Total employee benefits expense
Other Expenses from Ordinary Activities
Secretarial, professional and consultancy
Occupancy costs
Share register maintenance
Insurance costs
Promotion and advertising
Employee taxes and levies
Service charges
Securities exchange fees
Travel expenses
Conferences
Audit fees
Legal fees
Other expenses
Transfer (to) exploration assets
Consolidated
2017
$
2016
$
272,498
2,063,970
5,389
35,181
367,818
37,933
(3,934)
8,647
85,068
(202,807)
462,902
38,467
(9,701)
(61,218)
-
(234,326)
292,725
196,124
101,597
75,232
20,515
7,592
10,044
958
13,811
29,812
1,531
3,690
26,997
12,528
21,016
(80,628)
46,054
106,338
19,888
29,357
5,896
2,260
16,089
27,399
6,781
1,145
29,169
1,783
60,864
(97,880)
Total other expenses from ordinary activities
244,695
255,143
Impairment of Available-for-Sale Investments
Impairment of investment in Musgrave Minerals Ltd
Total impairment of available-for-sale investments
-
-
235,173
235,173
31
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
6
Income Tax Expense
(a) The major components of tax expense (income) comprise:
Current tax expense
Current income tax charge/(benefit)
Total income tax expense/(benefit)
(b) Reconciliation of income tax to accounting profit/(loss):
Accounting loss before income tax
Group's statutory income tax rate
Add:
Tax effect of:
- expenditure not allowable for income tax purposes
- other deductible items
- tax portion of share issue costs
Less:
Tax effect of:
- tax losses not recognised due to not meeting recognition criteria
Income tax expense
Consolidated
2017
$
2016
$
5,595
5,595
12,608
12,608
(782,007)
30%
(2,768,289)
30%
(234,602)
(830,487)
98,697
(198,102)
5,595
661,881
150,793
12,608
(328,412)
(5,205)
334,007
17,813
5,595
12,608
The Company has tax losses arising in Australia of $31,772,031 (2016: $31,166,621) that are available indefinitely for
offset against future taxable profits of the companies in which the losses arose.
No deferred tax asset has been recognised because it is not likely future assessable income is derived of a nature and
of an amount sufficient to enable the benefit to be realised.
(c)
Tax Consolidation
Mithril Resources Ltd and its wholly-owned Australian resident entities have implemented a tax consolidated
group under the tax consolidation legislation as of 1 July 2007. The Australian Taxation Office has been notified
of the decision. The accounting policy relating to the implementation of the tax consolidation legislation is set out
in Note 2(h).
32
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
7
Earnings per Share
Basic earnings per share amounts are calculated by dividing net loss for the year attributable to ordinary equity holders
of the Company by the weighted average number of ordinary shares outstanding during the year.
Diluted earnings per share amounts are calculated by dividing the net loss attributable to ordinary equity holders of the
Company by the weighted average number of ordinary shares outstanding during the year plus the weighted average
number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into
ordinary shares.
The following reflects the income and share data used in the basic and diluted earnings per share computations:
(a) Reconciliation of earnings to profit or loss from continuing operations
Net loss attributable to ordinary equity holders of the parent
Losses used to calculate basic EPS from continuing operations
Losses used in the calculation of dilutive EPS from continuing
operations
(b) Losses used to calculate overall earnings per share
Losses used to calculate overall earnings per share
Consolidated
2017
$
2016
$
(787,602)
(2,745,897)
(787,602)
(2,745,897)
(787,602)
(2,745,897)
(787,602)
(2,745,897)
(c) Weighted average number of ordinary shares outstanding during the year used in calculating basic EPS
No.
No.
Weighted average number of ordinary shares outstanding during the year
used in calculating basic EPS
694,190,415 445,876,160
Weighted average number of ordinary shares outstanding during the
year used in calculating dilutive EPS
694,190,415 445,876,160
In accordance with AASB 133 ‘Earnings per Share’, as potential ordinary shares may only result in a situation where
their conversion results in an increase in loss per share or decrease in profit per share from continuing operations, no
dilutive effect has been taken into account in 2017 or 2016.
There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting
date and the date of completion of these financial statements.
33
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
8 Cash and cash equivalents
Cash at bank and in hand
Short-term bank deposits
Total cash and cash equivalents
Consolidated
2017
$
2016
$
Note
308,055
510,000
498,298
130,000
818,055
628,298
Cash at bank earns interest at floating rates based on daily bank deposit rates.
$150,000 of short-term deposits acts as security for visa cards and the billflex facility.
Short-term deposits are made for varying periods of between one day and six months, depending on the immediate
cash requirements of the Company, and earn interest at the respective short-term deposit rates.
9
Trade and other receivables
CURRENT
Trade receivables
Total current trade and other receivables
(a)
Trade receivables
9(a)
-
-
12,788
12,788
Trade receivables are non-interest bearing and are generally on 30-90 day terms. An allowance for doubtful
debts is made when there is objective evidence that a trade receivable is impaired. No impairment was
recognised in 2017 or 2016 and no receivables are past due at balance date.
10 Other assets
CURRENT
Prepayments
Accrued income
Total current other assets
14,902
2,019
16,921
-
-
-
34
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
11 Other financial assets
Available-for-sale financial assets comprise:
NON-CURRENT
Listed investments, at fair value
- Opening balance at 1 July
- Fair value adjustment
- Sale of listed investments
Total non-current available-for-sale financial assets
Consolidated
2017
$
2016
$
-
-
-
-
464,194
-
(464,194)
-
The Company has a NIL interest in Musgrave Minerals Limited at 30 June 2017 (2016: 7.67%).
12 Plant and equipment
PLANT AND EQUIPMENT
Plant and equipment
At cost
Accumulated depreciation
Total plant and equipment
279,815
(259,986)
277,253
(254,597)
19,829
22,656
35
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
12 Plant and equipment
(a) Movements in carrying amounts of plant and equipment
Movement in the carrying amounts for each class of plant and equipment between the beginning and the end of
the current and previous financial years:
Consolidated
Year ended 30 June 2017
Balance at the beginning of year
Additions
Disposals - written down value
Depreciation expense
Balance at the end of the year
Year ended 30 June 2016
Balance at the beginning of year
Additions
Disposals - written down value
Depreciation expense
Balance at the end of the year
Plant and
Equipment
Motor
Vehicles
$
$
Total
$
22,656
2,562
-
(5,389)
19,829
43,867
-
(1,948)
(19,263)
22,656
-
-
-
-
-
22,656
2,562
-
(5,389)
19,829
47,163
-
(31,245)
(15,918)
91,030
-
(33,193)
(35,181)
-
22,656
(b)
Impairment and depreciation of plant and equipment
No impairment loss was recognised or reversed for the years ended 30 June 2017 and 2016 with respect to
plant and equipment.
The depreciation rates of the assets were estimated as follows for both 2016 and 2017:
Plant and equipment - 10 - 40% (Diminishing value)
Motor vehicles - 22.5% (Diminishing value)
36
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
13 Exploration and evaluation assets
Exploration and evaluation phases - Joint Operations
Exploration and evaluation phases - Other
Total exploration and evaluation assets
Capitalised tenement expenditure movement reconciliation
Consolidated
2017
Balance at beginning of the year
Additions through expenditure capitalised
Reductions through joint venture contributions
Impairment of tenement
Disposal of tenements
Balance at end of the year
2016
Balance at beginning of the year
Change of JV status during period
Additions through expenditure capitalised
Reductions through joint venture contributions
Disposal of tenements
Impairment of tenement
Balance at end of the year
Consolidated
2017
$
2016
$
1,078,131
553,870
1,059,666
210,497
1,632,001
1,270,163
Exploration
and
Evaluation -
Joint
Operations
Exploration
and
Evaluation -
Other
$
$
Total
$
1,059,666
222,063
-
(76,686)
210,497
412,271
-
(46,902)
1,270,163
634,334
-
(123,588)
(126,912)
(21,996)
(148,908)
1,078,131
553,870
1,632,001
2,483,834
(1,837,465)
604,093
(54,000)
-
(136,796)
384,038
1,837,465
23,365
-
(107,197)
(1,927,174)
2,867,872
-
627,458
(54,000)
(107,197)
(2,063,970)
1,059,666
210,497
1,270,163
The recoverability of the carrying amount of the exploration and evaluation assets is dependent on successful
development and commercial exploitation, or alternatively, sale of the respective areas of interest.
The recoverable amount of development expenditure is determined as the higher of its fair value less costs to sell and
its value in use.
Exploration and Evaluation expenditure has been 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 recovered reserves. Management assessment of
carried forward expenditure resulted in impairment charges of 123,588 (2016: $2,063,970).
37
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
14 Trade and other payables
CURRENT
Unsecured liabilities
Trade payables
Other payables
Total current trade and other payables
(a)
Trade payables
Note
14(a)
Consolidated
2017
$
2016
$
38,529
70,611
29,837
94,434
109,140
124,271
Trade payables are non-interest bearing and normally settled on 60-day terms.
15 Employee Benefits
CURRENT
Long service leave
Annual leave
Total current employee benefits liability
NON-CURRENT
Long service leave
16 Remuneration of Auditors
Remuneration of the auditor of the Company, Grant Thornton Audit Pty Ltd,
for:
- auditing or reviewing the financial report
Total remuneration of auditors
No non-audit services have been provided.
17
Issued Capital
848,103,831 (2016: 566,879,066) Ordinary shares
Total issued capital
9,536
25,652
11,459
29,586
35,188
41,045
26,717
16,147
26,997
29,169
26,997
29,169
Consolidated
2017
$
2016
$
34,824,778
33,531,257
34,824,778
33,531,257
38
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
17
Issued Capital
(a)
Ordinary shares
At the beginning of the reporting period
33,531,257 32,879,698 566,879,066 421,043,293
2017
$
2016
$
2017
No.
2016
No.
Shares issued during the year
- Shares issued pursuant to SPP (7 November 2016)
- Allotment of shares to directors (9 November 2016)
- Issue of shares via placement (10 March 2017)
- Shares issued pursuant to SPP (6 October 2015)
- Shares issued via placement (6 October 2015)
- Shares issued in lieu of drilling costs (5 January
2016)
- Shares issued via placement (21 April 2016)
- Transaction costs (net of tax)
545,400
73,668
808,104
-
-
- 109,080,000
- 10,523,999
- 161,620,766
-
-
-
- 52,000,026
- 25,555,558
234,000
115,000
-
-
(133,651)
33,550
309,750
(40,741)
- 6,330,189
- 61,950,000
-
-
At end of the reporting period
34,824,778 33,531,257 848,103,831 566,879,066
The holders of ordinary shares are entitled to participate in dividends (in the event when a dividend is declared)
and the proceeds on winding up of the Company. On a show of hands at meetings of the Company, each holder
of ordinary shares has one vote in person or by proxy, and upon a poll each share is entitled to one vote.
The Company does not have authorised capital or par value in respect of its shares.
In the event of winding up the Company, ordinary shareholders rank after all creditors and are fully entitled to
any net proceeds of liquidation.
(b)
Capital Management
The Company manages its capital to ensure that entities in the Company will be able to continue as a going
concern while maximising the return to stakeholders.
The capital structure of the Company consists of cash and cash equivalents and equity attributable to equity
holders of the parent, comprising issued capital, reserves and accumulated losses as disclosed in Notes 17, 18
and 19 respectively.
Proceeds from share issues are used to maintain and expand the Company’s exploration activities and fund
operating costs.
39
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
18 Reserves
Available-for-sale revaluation reserve
Balance at beginning of financial year
Transfers out - sale of available-for-sale investment
Share option reserve
Balance at beginning of financial year
Issue of options
Lapse of options due to expiration
Balance at end of the year
Total reserves
(a)
Available-for-sale revaluation reserve
Consolidated
2017
$
2016
$
Note
-
-
(35,000)
35,000
158,000
57,400
-
1,804,090
45,500
(1,691,590)
215,400
158,000
215,400
158,000
19
18(b)
Change in the fair value of available-for-sale investments are recognised in other comprehensive income -
available-for-sale revaluation reserve. Amounts are reclassified to profit or loss on disposal of the investment or
when an impairment arises.
(b)
Share option reserve
This reserve records items recognised as expenses on valuation of employee share options and other equity
settled transactions.
During the financial year, no options lapsed (2016: 4,235,000).
19 Accumulated losses
Opening balance at start of the financial year
Net loss attributable to members of the parent entity
Transfer from share option reserve
Accumulated losses at end of the financial year
(31,936,815)
(787,602)
-
(30,847,508)
(2,780,897)
1,691,590
(32,724,417)
(31,936,815)
40
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
20 Share-based Payments
(a) Employee share-based payments
The Group established the Mithril Resources Ltd Employee Share Option Plan and a summary of the Rules of the Plan
are set out below:
·
·
·
·
·
·
·
·
All employees (full and part time) will be eligible to participate in the Plan after a qualifying period of 12 months
employment by a member of the Company, although the Board may waive this requirement.
Options are granted under the Plan at the discretion of the Board and if permitted by the Board, may be issued
to an employee's nominee.
Each option is to subscribe for one fully paid ordinary share in the Company and will expire 5 years from its date
of issue. An option is exercisable at any time from its date of issue. Options will be issued free. The exercise
price of options will be determined by the Board, subject to a minimum price equal to the market value of the
Company's shares at the time the Board resolves to offer those options. The total number of shares, the subject
of options issued under the Plan, when aggregated with issues during the previous 5 years pursuant to the Plan
and any other employee share plan, must not exceed 5% of the Company's issued share capital.
If, prior to the expiry date of options, a person ceases to be an employee of the Company for any reason other
than retirement at age 60 or more (or such earlier age as the board permits), permanent disability, redundancy
or death, the options held by that person (or that person's nominee) automatically lapse on the first to occur of a)
the expiry of the period of 6 months from the date of such occurrence, and b) the expiry date. If a person dies,
the options held by that person will be exercisable by that person's legal personal representative.
Options can’t be transferred other than to the legal personal representative of a deceased option holder.
The Company will not apply for official quotation of any options issued under the plan.
Shares issued as a result of the exercise of options will rank equally with the Company's previously issued
shares.
Option holders may only participate in new issues of securities by first exercising their options.
The Board may amend the Plan Rules subject to the requirements of the Listing Rules.
(b) Share-based payments to suppliers
During the financial year ended 30 June 2017, the Company issued 10,000,000 options to the lead manager upon
completion of a share placement.
41
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
20 Share-based Payments
(c) Share options issued
Share options and weighted average exercise prices are as follows for the reporting periods presented:
Outstanding at 1 July 2015
Granted
Forfeited
Exercised
Expired
Outstanding at 30 June 2016
Granted
Forfeited
Exercised
Expired'
Outstanding at 30 June 2017
Exercisable at 30 June 2016
Exercisable at 30 June 2017
Number of options
Issued to
employees
9,385,000
-
-
-
(4,235,000)
5,150,000
6,000,000
-
-
-
11,150,000
5,150,000
11,150,000
Issued to
suppliers
-
6,500,000
-
-
-
6,500,000
10,000,000
-
-
-
16,500,000
6,500,000
16,500,000
Weighted average
exercise price ($)
Total
9,385,000
6,500,000
-
-
(4,235,000)
11,650,000
16,000,000
-
-
-
27,650,000
11,650,000
27,650,000
0.110
0.003
-
-
0.110
0.037
0.010
-
-
-
0.021
0.037
0.021
The weighted average remaining contractual life of options outstanding at year end was 2.79 years (2016: 2.42 years).
The range of exercise prices for options outstanding at the end of the year was $0.005 - $0.15 (2016: $0.005 - $0.15).
The fair value of the options granted to employees is deemed to represent the value of the employee services received
over the vesting period.
The weighted average fair value of options granted during the year was $0.004.
The fair value of the equity-settled share options granted under the option plan is estimated as at the grant date by
using a Black-Scholes option pricing model taking into account the terms and conditions upon which the options were
granted.
The following table lists the inputs to the model used for the years ended 30 June 2017:
30 June 2017
Grant date:
Expiry date:
Share price at grant date ($):
Exercise price ($):
Expected share price volatility:
Risk-free interest rate:
Fair value at grant date ($):
10/03/2017
31/12/2020
0.006
0.01
134.53%
3.06%
0.0046
22/06/2017
31/12/2020
0.003
0.01
120.37%
2.76%
0.0017
22/06/2017
31/12/2022
0.003
0.01
120.37%
3.22%
0.0021
The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that
may occur.
42
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
20 Share-based Payments
The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may also
not necessarily be the actual outcome. Volatility is calculated as the average historical volatility of the Company share
price for the period of the option life.
No other features of options granted were incorporated into the measurement of fair value.
Director options
The Company issues options to Directors in order to retain their services and provide incentive linked to the
performance of the Company. Shareholder approval is sought for all options issued to Directors in accordance with
applicable legislation.
During the year, 4,000,000 (2016: NIL) share options were issued to the Managing Director and other KMP.
Full details of option holdings of Directors are disclosed in the Remuneration Report contained within the Directors'
Report. The fair value of the equity-settled share options granted to Directors is calculated using the method detailed
above.
43
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
21 Cash Flow Information
Reconciliation of result for the year to cashflows from operating activities
Net loss for the year
Non-cash flows in profit:
- depreciation
- impairment of non-current assets
- impairment of available-for-sale investments
- share based payments
- net gain on disposal of property, plant and equipment
- net gain on disposal of investment
- income tax expense
Changes in assets and liabilities:
- (increase)/decrease in trade and other receivables
- (increase)/decrease in prepayments
- increase/(decrease) in trade and other payables
- increase/(decrease) in employee benefits
Net cash (used in)/provided by operating activities
22 Capital and Leasing Commitments
(a)
Operating Leases
Minimum lease payments under non-cancellable operating leases:
- not later than one year
Minimum lease payments
Consolidated
2017
$
2016
$
(787,602)
(2,780,897)
5,389
272,498
-
85,068
-
-
5,595
(25,538)
(16,920)
(15,131)
4,712
35,181
2,063,970
235,173
45,500
(20,107)
(29,920)
-
(6,242)
32,755
47,851
(70,918)
(471,929)
(447,654)
51,917
51,917
52,363
52,363
The Company has operating leases in place for its principal place of business and operating equipment which
have terms of 3-4 years. The terms of renewal have an escalation clause linked to CPI in some cases.
(b)
Exploration leases
In order to maintain current rights of tenure to exploration tenements, the Company will be required to spend in
the year ending , 30 June 2018 net amounts of approximately $445,520 (2017: $622,850) in respect of tenement
lease rentals and to meet minimum expenditure requirements. These obligations are expected to be fulfilled in
the normal course of operations.
44
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
23
Interests in Subsidiaries
Principal place of
business / Country of
Incorporation
Percentage
Owned (%)*
Percentage
Owned (%)*
2017
2016
Subsidiaries:
Minex (Aust) Pty Ltd
Mithril Resources Investments Pty Ltd
Minex (West) Pty Ltd (incorporated on 22 November 2013)
Australia
Australia
Australia
100
100
100
100
100
100
*The percentage of ownership interest held is equivalent to the percentage voting rights for all subsidiaries.
24 Financial Risk Management
Categories of financial instruments
The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the
accounting policies to these consolidated financial statements, are as follows:
Financial Assets
Cash and cash equivalents
Loans and receivables
Total financial assets
Financial Liabilities
Financial liabilities at amortised cost
- Trade and other payables
Total financial liabilities
Credit risk
Note
8
9
Consolidated
2017
$
2016
$
818,055
-
628,298
12,788
818,055
641,086
14
109,140
124,271
109,140
124,271
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to
the Company.
The Company has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of
financial loss from activities.
The Company does not have any significant credit risk exposure to any single counterparty or any company of
counterparties having similar characteristics. The credit risk on liquid funds is limited because the counterparties are
banks with high credit-ratings assigned by international credit-rating agencies.
The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses,
represents the Company’s maximum exposure to credit risk.
45
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
24 Financial Risk Management
Market risk
(i) Cash flow interest rate sensitivity
The Company is exposed to interest rate risk as it holds some bank deposits at floating rates.
The Company's policy is to minimise interest rate cash flow risk exposures on long-term financing. Longer-term
deposits are therefore usually at fixed rates. At the reporting date, the Company is exposed to changes in market
interest rates through its bank deposits, which are subject to variable interest rates.
The following table illustrates the sensitivity of the net result for the year and equity to a reasonably possible change in
interest rates of +0.50% and -0.50% (2016: +0.50%/-0.50%), with effect from the beginning of the year. These changes
are considered to be reasonably possible based on observation of current market conditions.
The calculations are based on the financial instruments held at each reporting date. All other variables are held
constant.
Cash and cash equivalents
Net results
Equity
2017
2016
+0.50%
-0.50%
+0.50%
-0.50%
$
$
$
$
3,141
3,141
(3,141)
(3,141)
2,628
(2,628)
2,628 (2,628)
46
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
24 Financial Risk Management
(ii) Financial instrument composition and maturity analysis
The Company's exposure to interest rate risk, which is the risk that a financial instruments value will fluctuate as a result
of changes in market interest rates and the effective weighted average interest rates on classes of financial assets and
financial liabilities, is as follows:
Weighted
Average
Effective Interest
Rate
Floating Interest Rate Maturing within 1 Year Non-interest Bearing
Total
2017
2016
2017
2016
2017
2016
2017
2016
2017
2016
%
%
$
$
$
$
$
$
$
$
Financial Assets:
Cash and cash equivalents 1.58 1.43 308,055 498,298 510,000 130,000
-
-
Trade and other receivables
-
-
-
-
Total Financial Assets
308,055 498,298 510,000 130,000
-
-
-
- 818,055 628,298
-
12,788
12,788
12,788 818,055 641,086
Financial Liabilities:
Trade and other payables
Total Financial Liabilities
-
-
-
-
-
-
-
-
- 109,140 124,271 109,140 124,271
- 109,140 124,271 109,140 124,271
The Company is not materially exposed to any effects on changes in interest rates.
Liquidity risk
Liquidity risk arises from the Company’s management of working capital and the finance charges and principal
repayments on its debt instruments. It is the risk that the Company will encounter difficulty in meeting its financial
obligations as they fall due.
Ultimate responsibility for liquidity risk management rests with the Board of Directors, whom have built an appropriate
liquidity risk management framework for the management of the Company’s short, medium and long-term funding and
liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves.
47
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
25 Related Parties
(a)
Transactions with related parties
Transactions between related parties are on normal commercial terms and conditions no more favourable than
those available to other parties unless otherwise stated.
No transactions between the Company and its related parties occured during the year ended 30 June 2017
(2016: none)
(b) Wholly owned group transactions
Loans
The wholly owned Company consists of Mithril Resources Ltd and its wholly owned controlled entities Minex
(Aust) Pty Ltd, Mithril Resources Investments Pty Ltd and Minex (West) Pty Ltd. Ownership interest in the
controlled entities is set out in Note 23. Transactions between Mithril Resources Ltd and its wholly owned
entities in the Company during the year consisted of loans advanced by Mithril Resources Ltd to fund exploration
and investment activities.
(c)
Interests of Key Management Personnel (KMP)
For details of Key Management Personnel’s interests in shares and options of the Company, refer to Note 26:
Key Management Personnel Disclosures. The Remuneration Report contained in the Directors' Report contains
details of the remuneration paid or payable to each member of the Group's key management personnel for the
year ended 30 June 2017.
48
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
26 Key Management Personnel Disclosures
Key management personnel remuneration included within employee expenses for the year is shown below:
Short-term employee benefits
Post-employment benefits
Share-based payments
Total remuneration paid to key management personnel
The Share-based payments consisted of the following:
·
·
10,523,999 ordinary shares issued to Directors in lieu of upaid director fees
6,000,000 share options issued to the Managing Director and other KMP
2017
$
407,060
35,832
85,068
2016
$
359,780
30,434
-
527,960
390,214
Full details of option holdings of Directors are disclosed in the Remuneration Report contained within the Directors'
Report.
The Remuneration Report contained in the Directors' Report contains details of the remuneration paid or payable to
each member of the Group's key management personnel for the year ended 30 June 2017.
For details of other transactions with key management personnel, refer to Note 25: Related Parties.
27 Parent entity
The following information has been extracted from the books and records of the parent, Mithril Resources Ltd, and has
been prepared in accordance with Accounting Standards.
The financial information for the parent entity, Mithril Resources Ltd, has been prepared on the same basis as the
consolidated financial statements except as disclosed below.
Investments in subsidiaries, associates and joint ventures
Investments in subsidiaries, associates and joint venture entities are accounted for at cost in the financial statements of
the parent entity. Dividends received from associates are recognised in the parent entity profit or loss, rather than being
deducted from the carrying amount of these investments.
Tax consolidation legislation
Mithril Resources Ltd and its wholly-owned Australian subsidiaries have formed an income tax consolidated group.
Each entity in the tax consolidated group accounts for their own current and deferred tax amounts. These tax amounts
are measured using the ‘stand-alone taxpayer’ approach to allocation.
Current tax liabilities (assets) and deferred tax assets arising from unused tax losses and tax credits in the subsidiaries
are immediately transferred to the parent entity.
The tax consolidated group has entered into a tax funding agreement whereby each entity within the group contributes
to the income tax payable by the Group in proportion to their contribution to the Group’s taxable income. Differences
between the amounts of net tax assets and liabilities derecognised and the net amounts recognised pursuant to the
funding agreement are recognised as either a contribution by, or distribution to the head entity.
49
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
27 Parent entity
Statement of Financial Position
Assets
Current assets
Non-current assets
Total Assets
Liabilities
Current liabilities
Non-current liabilities
Total Liabilities
Equity
Issued capital
Accumulated losses
Share-based payments reserve
Total Equity
Statement of Profit or Loss and Other Comprehensive Income
Total profit or loss for the year
Other comprehensive income
Total comprehensive income
Contingent liabilities
2017
$
2016
$
2,466,977
19,829
1,911,249
22,656
2,486,806
1,933,905
144,328
26,717
165,733
16,147
171,045
181,880
34,824,778
33,531,257
(32,724,417) (31,937,232)
158,000
215,400
2,315,761
1,752,025
(787,185)
-
(4,942,773)
-
(787,185)
(4,942,773)
Contingent liabilities of the parent entity have been incorporated into the Company information in Note 29. The
contingent liabilities of the parent are consistent with that of the Company.
Contractual commitments
Contractual commitments of the parent entity have been incorporated into the Company information in Note 22. The
contractual commitments of the parent are consistent with that of the Company.
28 Events Occurring After the Reporting Date
On 28 August 2017, the Company announced it has received firm commitments to raise $254,431 (before costs)
through a share placement. The proceeds of the share placement will be used to expedite drill testing of the Kombi
Gold Prospect and Fencline Gold Prospect and provide for working capital. The placement would comprise
127,215,574 fully paid ordinary shares at issue price of $0.002 (0.2 cents) per share. 10 million Broker Options
exerciseable at $0.01 (1 cent) expiring on 31 December 2020 were also to be issued subjected to shareholder approval.
No other matters or circumstances have arisen since the end of the financial year which significantly affected or may
significantly affect the operations of the Group, the results of those operations or the state of affairs of the Group in
future financial years.
50
Mithril Resources Ltd
ABN 30 099 883 922
Notes to the Financial Statements
For the Year Ended 30 June 2017
29 Contingencies
There has been no change in contingent liabilities since the last reporting date. It is, however, noted that the Company
has various bank guarantees totalling $10,000 at 30 June 2017 (2016: $122,000) which act as collateral over
exploration tenements.
51
Mithril Resources Ltd
ABN 30 099 883 922
Directors' Declaration
The directors of the Company declare that:
1.
the consolidated financial statements and notes for the year ended 30 June 2017 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 explicit and unreserved compliance with International Financial Reporting Standards
(IFRS); and
b. give a true and fair view of the financial position and performance of the consolidated group;
2.
the Managing Director and Company Secretary have given the declarations required by Section 295A that:
a.
the financial records of the Company for the financial year have been properly maintained in accordance with
section 286 of the Corporations Act 2001;
b.
the financial statements and notes for the financial year comply with the Accounting Standards; and
c.
the financial statements and notes for the financial year give a true and fair view.
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.
This declaration is made in accordance with a resolution of the Board of Directors.
Director ................................................................................................................................................
Mr David Hutton
Managing Director
Dated this 12th day of September 2017
52
Grant Thornton House
Level 3
170 Frome Street
Adelaide, SA 5000
Correspondence to:
GPO Box 1270
Adelaide SA 5001
T 61 8 8372 6666
F 61 8 8372 6677
E info.sa@au.gt.com
W www.grantthornton.com.au
Independent Auditor’s Report
to the Members of Mithril Resources Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Mithril Resources Limited (the Company) and its
subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30
June 2017, the consolidated statement of profit or loss and other comprehensive income,
consolidated statement of changes in equity and consolidated statement of cash flows for the year
then ended, and notes to the consolidated 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:
a Giving a true and fair view of the Group’s financial position as at 30 June 2017 and of its
performance for the year ended on that date; and
b 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
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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the
context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm
is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and
are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its
Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
Material Uncertainty Related to Going Concern
We draw attention to Note 2(s) in the financial statements, which indicates that the Group incurred
a net loss of $787,602 during the year ended 30 June 2017, and incurred net cash outflows from
operating and investing activities totalling $1,070,501. These conditions, along with other matters
as set forth in Note 2(s), indicate that a material uncertainty exists that may cast doubt on the
Group’s ability to continue as a going concern. Our opinion is not modified in respect of this
matter.
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.
In addition to the matter described in the Material Uncertainty Related to Going Concern section,
we have determined the matters described below to be the key audit matters to be communicated
in our report.
Key audit matter
How our audit addressed the key audit matter
Valuation of exploration and evaluation assets
Notes 2(l), 3, 13
At 30 June 2017 the carrying value of Exploration
and Evaluation Assets was $1,632,001. The Group
recognised an impairment of $272,498 during the
year on its Exploration and Evaluation Assets.
In accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources, the Group is
required to assess at each reporting date if there are
any triggers for impairment which may suggest the
carrying value is in excess of the recoverable value.
The process undertaken by management to assess
whether there are any impairment triggers in each
area of interest involves an element of management
judgement.
This area is a key audit matter due to the significant
judgement involved in determining the existence of
impairment triggers.
Our procedures included, amongst others:
· obtaining management’s reconciliation of
capitalised exploration and evaluation expenditure
and agreeing to the general ledger;
·
reviewing management’s area of interest
considerations against AASB 6;
· conducting a detailed review of management’s
assessment of trigger events prepared in
accordance with AASB 6 including;
-
-
-
tracing projects to statutory registers,
exploration licenses and third party
confirmations to determine whether a right of
tenure existed;
enquiry of management regarding their
intentions to carry out exploration and
evaluation activity in the relevant exploration
area, including review of management’s
budgeted expenditure;
understanding whether any data exists to
suggest that the carrying value of these
exploration and evaluation assets are unlikely
to be recovered through development or sale;
· assessing the accuracy of impairment recorded for
the year as it pertained to exploration interests;
· evaluating the competence, capabilities and
objectivity of the Managing Director as a
management expert in the evaluation of potential
impairment triggers; and
· assessing the appropriateness of the related
financial statement disclosures.
Information Other than the Financial Report and Auditor’s Report Thereon
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 our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors’ for the Financial Report
The Directors of the Company are responsible for the preparation of the financial report that gives
a true and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001 and for such internal control as the Directors determine is necessary to enable the
preparation of the financial report that gives a true and fair view and is free from material
misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the Group’s ability 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/ar1.pdf. This description forms part of our
auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30
June 2017.
In our opinion, the Remuneration Report of Mithril Resources 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.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
B K Wundersitz
Partner - Audit & Assurance
Adelaide, 12 September 2017
Mithril Resources Ltd
ASX Additional Information
30 June 2017
ASX Additional Information
Additional information required by the ASX Limited Listing Rules and not disclosed elsewhere in this report is set out below.
This information is effective as at 25 September 2017.
Substantial shareholders
The Company has no substantial shareholders.
Voting rights
Ordinary Shares
On a show of hands, every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
Options
No voting rights.
Distribution of equity security holders
Ordinary Share Capital
975,319,405 fully paid ordinary shares are held by 1,815 individual shareholders.
Unlisted options
26,950,000 unlisted options are held by 6 individual option holders.
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Holding less than a marketable parcel
Fully paid
ordinary shares
50
128
166
660
811
1,815
1,129
Unlisted Options
-
-
-
-
6
6
-
57
Mithril Resources Ltd
ASX Additional Information
30 June 2017
Twenty largest shareholders of quoted equity securities
DELRIVIERE INVESTMENTS PTY LTD (L & B DELRIVIERE
SUPER A/C)
MS JOSEPHINE KATHLEEN PATOIR
GRIFFLILY PTY LTD
PERTH CAPITAL PTY LTD
REC (WA) PTY LTD (THE RYEM A/C)
MASSIF HOLDINGS PTY LTD
NUTSVILLE PTY LTD (INDUST ELECTRIC CO S/F A/C)
DCS SUPER FUND PTY LTD (DCS SUPERANNUATION
FUND A/C)
MR GRAHAM LESLIE ASCOUGH & MRS PATRICIA LYNN
ASCOUGH (ASCOUGH S/F A/C)
MR WILLIAM HENRY HERNSTADT
TOLTEC HOLDINGS PTY LTD
BROUGHTON SECURITIES PTY LTD (BROUGHTON SUPER
FUND A/C)
MR VINAI NIRULA & MRS VIPHA NIRULA
OLGEN PTY LTD
MR DAVID JAMES HUTTON & MRS RACHEL MARIE
HUTTON (HUTTON SUPER FUND A/C)
DORICA NOMINEES PTY LTD (SUPER FUND A/C)
STATELINE INVESTMENTS PTY LTD (COLGAN FAMILY A/C)
CAPRETTI INVESTMENTS PTY LTD (CASTELLO A/C)
MR DEREK CARTER & MRS CARLSA CARTER (THE
SALAMANCA SUPER FUND A/C)
CITYLIGHT ASSET PTY LTD (GRAHAM SUPER FUND A/C)
Fully Paid Ordinary Shares
Number
Percentage
20,000,000
19,000,000
18,197,000
15,000,000
13,500,000
13,000,000
13,000,000
11,416,762
11,000,000
11,000,000
11,000,000
10,000,000
10,000,000
9,330,189
8,962,275
8,000,000
8,000,000
7,750,000
7,233,334
2.05%
1.95%
1.87%
1.54%
1.38%
1.33%
1.33%
1.17%
1.13%
1.13%
1.13%
1.03%
1.03%
0.96%
0.92%
0.82%
0.82%
0.79%
0.74%
7,000,000
246,389,560
0.72%
25.26%
58
Mithril Resources Ltd
ASX Additional Information
30 June 2017
List of tenements
Tenement
No
Northern Territory
Project
Area (km2)
Company Interest
EL26942
East Arunta Area
EL24253
East Arunta Area
Western Australia
E28/2567
Kurnalpi Area
E28/2682 *
Kurnalpi Area
E28/2506
Kurnalpi Area
P28/1271
Kurnalpi Area
E27/538
E27/576
E27/582
E27/584
Lignum Dam Area
Lignum Dam Area
Lignum Dam Area
Lignum Dam Area
P27/2283
Lignum Dam Area
P27/2284
Lignum Dam Area
P27/2285
Lignum Dam Area
P27/2286
Lignum Dam Area
E20/846
Murchison Area
E51/1615
Murchison Area
E51/1649
Murchison Area
E51/1069 *
Murchison Area
E15/1423
West Kambalda Area
M15/1828
West Kambalda Area
P15/5791
West Kambalda Area
E04/2497 *
West Kambalda Area
* In application stage
214.29
213.62
14.77
2.95
51.85
1.17
171.66
17.78
59.31
8.69
1.42
1.62
1.62
1.47
207.22
183.32
202.23
6.09
23.47
10.13
0.24
94.35
100%
33.3%
100%
0%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
0%
35%
35%
35%
0%
59