MINOTAUR
EXPLORATION
Annual
REPORT 2016
MINOTAUR
EXPLORATION
CONTENTS
Chairman’s Review
Managing Director’s Report
Directors’ Report
1
2
6
Auditor’s Independence Declaration
17
Financial Report
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 Consolidated
Financial Statements
Directors’ Declaration
Independent Auditor’s Report
ASX Additional Information
18
18
19
20
21
22
50
51
53
This annual report covers both Minotaur Exploration Ltd
(ABN 35 108 483 601) as an individual entity and the
consolidated group (‘Group’) comprising Minotaur
Exploration Ltd and its subsidiaries. The Group’s functional
and presentation currency is Australian dollars.
A description of the Group’s operations and of its
principal activities is included in the review of operations
and activities in the Directors’ Report on pages 8 to 9.
The Directors’ Report is not part of the financial report.
CORPORATE DIRECTORY
MINOTAUR EXPLORATION LIMITED
ACN 108 483 601
ASX CODE MEP
DIRECTORS
Mr Derek Carter Chairman
Mr Andrew Woskett Managing Director
Dr Antonio Belperio Executive Director
Mr Richard Bonython Non-Executive Director (resigned 25 November 2015)
Dr Roger Higgins Non-Executive Director (appointed 1 July 2016)
COMPANY SECRETARY
Mr Varis Lidums (appointed 1 July 2016)
Mr Donald Stephens (resigned 1 July 2016)
REGISTERED OFFICE
c/o HLB Mann Judd (SA) Pty Ltd
169 Fullarton Road
DULWICH SA 5065
PRINCIPAL PLACE OF BUSINESS
Level 1, 8 Beulah Road
NORWOOD SA 5067
SHARE REGISTER
Computershare Investor Securities Pty Ltd
Level 5, 115 Grenfell Street
ADELAIDE SA 5000
LEGAL ADVISORS
O’Loughlins Lawyers
Level 2, 99 Frome Street
ADELAIDE SA 5000
BANKERS
National Australia Bank
22-28 King William Street
ADELAIDE SA 5000
AUDITORS
Grant Thornton Audit Pty Ltd
Level 1, 67 Greenhill Road
WAYVILLE SA 5034
www.minotaurexploration.com.au
Chairman’s
REVIEW
We enter the new financial year with optimism founded on
promising outcomes from upcoming drill programs around
Cloncurry (Qld) and the Prominent Hill mine (SA), in association
with our joint venture partners. Minotaur continues to apply its policy of
sharing risk at the exploration level through joint venture models, engaging
again with JOGMEC (at Cloncurry) and, in both locations, with OZ Minerals Ltd.
We are gratified that both groups chose to contribute funds into Minotaur
generated and managed copper-gold exploration opportunities.
Grassroots base metals exploration is an inherently high risk venture delivering a scarcity
of new, economic grade discoveries and yet remains compelling as existing resources
are rapidly depleted and mine grades diminish, pushing operators towards the higher
end of the production cost curve.
Minotaur Exploration maintains that Australia’s geology will reveal, buried under cover
and essentially ‘blind’ to surface inspection, viable copper and other base metal deposits
and so we continue the search. Our geophysical and geological techniques, tested and
honed over the past twenty years, will inevitably deliver. That expectation is supported
by our joint venture partners.
The past year has seen some fundamental changes to the share register with the
departure of Norilsk Nickel Australia and the arrival of Sprott Asset Management at pole
position. Sprott now holds 13% of the shares on issue and we appreciate their strong
interest in our progress. Newmont Mining Australia also exited, as part of its rationalization
of domestic assets. These changes were accompanied by a pleasing improvement in
daily liquidity and solidification of the Top 10 holders.
As we pass two decades as a functioning group it is timely to consider Board renewal
and rejuvenation. Our long-standing non-executive director Mr Richard Bonython,
retired at the 2015 Annual General Meeting. Richard has been intimately involved in
the Company’s affairs and a consistent supporter of its capital raisings over those years.
He remains our 8th largest shareholder. Mr Donald Stephens retired from his role of
Company Secretary on 30 June 2016, drawing close to his twenty years of support to the
Board. Donald’s perspective on financial matters and the listed company environment
has been of immense value to Minotaur.
We welcomed Dr Roger Higgins to the Board on 1 July 2016. Roger’s career in the
mining sector is without peer and he brings international and domestic expertise across
multiple commodities. The Board has endorsed Roger’s ascension to the Chair, which
I intend to vacate at the forthcoming Annual General Meeting to be held on Thursday
17 November 2016.
I am firmly confident of Minotaur’s future, both in terms of its discovery prospects and its
governance. The group consistently operates at a level far exceeding its enterprise value
and, while not necessarily reflected in its share price the past year, has enormous potential
to out-perform its peers upon a new discovery.
Finally, I would like to thank current and past Directors, staff and, of course, shareholders
for a more than memorable journey over 21 years. I wish the Company great success in
the future and look forward to positive results from our ongoing exploration programs.
Derek Carter Chairman
1
Managing Director’s
REPORT
Business Review
2016 may be seen as a watershed year for Minotaur in that we were able to engage with
OZ Minerals Ltd (ASX: OZL) in two strategic deals; the Eloise joint venture (Cloncurry, Qld)
and the Prominent Hill alliance (SA). OZ Minerals is the Company’s 3rd largest
shareholder, having joined the Register originally (then as Oxiana) through acquisition of
the Prominent Hill project in 2004. Both arrangements, discussed below, have potential
to positively propel Minotaur’s profile and value.
Our enduring relationship with the Japan Oil, Gas and Metals National Corporation
(JOGMEC) continues to strengthen as we mutually terminated the long-term
Cloncurry JV and enacted the Osborne JV. JOGMEC’s exploration perseverance and
sustained investment into Minotaur’s projects demonstrates its confidence in the
potential of the geology around Cloncurry to reveal new base metal mineralisation.
As this report goes to print several encouraging geophysical targets have been outlined
and drilling is imminent on the ‘Yeti’ prospect, a very large 3mgal gravity anomaly,
indicative of a possible IOCG system.
OZ Minerals initially engaged with Minotaur at the project level through the Eloise joint
venture, implemented in April 2016, committing OZ Minerals to invest $1.5 million into
the tenements through calendar 2016. Should OZ Minerals decide to continue on with the
joint venture it may earn up to 70% interest through aggregate expenditure of $10 million
over 6 years. Minotaur is manager and operator of the project and has delivered a number
of new and encouraging geophysical targets suggestive of either Eloise or Artemis style
copper-gold mineralisation. Drilling is underway and results will cause OZ Minerals to
consider its continuing involvement.
Subsequently, OZ Minerals invited Minotaur to research its Prominent Hill exploration
database for evidence of previously unrecognised copper prospectivity. An alliance
agreement was structured such that joint field assessment of new, Minotaur generated
targets could lead to Minotaur gaining 20% to 30% interest in any promising discovery.
Minotaur and OZ Minerals have initiated a combined $3 million campaign immediately
north of the Prominent Hill mine testing four such targets, each located through ground
geophysics and on which diamond drilling is underway. Should any exploratory drillhole
intersect promising geology an accelerated exploration campaign could eventuate,
seeking to identify a satellite orebody within 10–30 km of the current mining operation.
2
MINOTAUR
EXPLORATION
Corporate Review
Exploration entities typically write-off some part of their past exploration investment each
reporting season. Minotaur similarly reviews and impairs its exploration expenditure
incurred through the financial year on a case-by-case basis, with the 2016 write-down
amounting to $11.4 million (2015FY $4.8 million). Group capitalised exploration
expenditure for the financial year was $3.1 million (2015FY $4.1 million) whereas total
exploration expenditure (including joint venture contributions of $2.05 million) was
steady at $5.2 million (2015FY $5.2 million). These figures show that Minotaur’s joint
venture based business model enabled the Company to leverage its work funding by 68%,
thereby broadening its scope and sphere of activity.
That advantage helped keep Minotaur in the top 25% of explorers; those with exploration
expenditure over $1 million in 2016FY.
This can also be expressed as Minotaur’s exploration expenditure of $5.2 million being
7.5 times the ‘junior miner’ sector’s1 2016FY median of $0.7 million. That places Minotaur
in the top 10%, by number, for exploration expenditure.
Minotaur held $4.5 million in cash and term deposits at the end of June 2016 (2015FY
$4.2 million). Joint venture funded projects aid recovery of overheads, such that net
administration costs of $0.7 million amounted to 14% of exploration expenses (2015FY
$0.9 million or 17.5%), preserving a significant point of difference for the Company
against many of its peers where overheads tend to represent a disproportionate contrast
to operating costs. Indeed, the sector’s 2016FY average level of gross administration
expense as a percentage of exploration expense was 103% – meaning that, on average,
the sector spent slightly more on administration than it did on exploration.
Andrew Burtt (Senior
Geologist) pegging resource
drill holes at Chameleon
Gold Deposit, WA.
Zombies
9%
Developers/Producers
25%
Exploration expenditure
< A$1m
41%
Exploration expenditure
> A$1m
25%
FY2016 ‘junior miner’ exploration expenditure (A$M). ‘Zombies’ refers to
junior miners with nil or negligible expenditure on exploration or development,
Source: IRESS, App 5B
1
Junior miners – an aggregation of 509 ASX-listed GCIS metals and mining
companies having market capitalisation of less than $100 million as at 30 June 2016,
Source: IRESS, Appendix 5Bs
3
Managing Director’s
REPORT
Minotaur maintains a diverse
array of minerals exploration
tenements around Australia,
totalling 16,520 km 2, including
Joint Venture areas.
Corkwood
Cloncurry
Eloise
Osborne
Mount Isa
Leinster
Scotia
Kambalda West
Camel Lake
Prominent Hill
Gawler Ranges
Poochera
Lake Purdilla
Border
Mutooroo
Perth
Adelaide
Sydney
Lexington
Casterton
Cu projects
Au projects
Ni projects
MINOTAUR
EXPLORATION
Industrial Minerals projects
4
Andrew Burtt (Senior Geologist)
and Anna Ogilvie (Geologist)
logging RC chips at Chameleon
Gold Deposit, WA.
Corporate Review continued
Portrayed another way, the graphic below locates Minotaur’s cash position relative to the
collation of ASX listed junior miners. Minotaur holds a comparatively favourable position
compared to the bulk of those companies where 225 (or 44%) had a cash of less than
$1 million at the close of the financial year.
60
40
20
i
s
e
n
a
p
m
o
c
f
o
r
e
b
m
u
N
Median = A$1.2m
Average = A$3.0m
MEP = A$4.5m
1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0
Junior miners’ cash balance distribution at 30 June 2016, Source: IRESS, App5B
Competent Person’s Statement
Information in this section that relates to Exploration Results, Mineral Resources or Ore Reserves is based on
information compiled by Dr A. P. Belperio, who is a full-time employee of the Company and a Fellow of the
Australasian Institute of Mining and Metallurgy (AusIMM). Dr Belperio has sufficient experience relevant to the
style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to
qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (JORC Code). Dr Belperio consents to inclusion in this document
of the information in the form and context in which it appears.
Andrew Woskett Managing Director
5
Directors’
REPORT
Your Directors present their report on the
consolidated Group for the financial year ended
30 June 2016.
Director Details
The names of the Directors in office at any time
during, or since the end of, the year are:
Mr Derek Carter Chairman
Mr Andrew Woskett Managing Director
Dr Antonio Belperio Executive Director
Mr Richard Bonython Non-Executive Director (resigned 25 November 2015)
Dr Roger Higgins Non-Executive Director (appointed 1 July 2016)
Directors have been in office since the start of the financial year to the date of this
report unless otherwise stated.
Names, qualifications, experience and special responsibilities
Mr Derek Carter BSc, MSc, FAusIMM (CP) (Chairman)
Derek Carter has over 40 years experience in exploration and mining geology and management. He held senior
positions in the Shell Group of Companies and Burmine Ltd before founding Minotaur Gold Ltd in 1993.
He is currently Chairman of Minotaur Exploration Ltd and Highfield Resources Ltd and a former Chairman of
Petratherm Ltd (resigned March 2014). He is a former board member of Intrepid Mines Ltd (resigned November
2015), Mithril Resources Ltd (resigned December 2014) and Toro Energy Ltd (resigned November 2012), all ASX
listed companies. Mr Carter is a former President of the South Australian Chamber of Mines and Energy, former
board member of the Australian Gold Council, is a member of the Minerals and Energy Advisory Council and
the South Australian Minerals and Petroleum Experts Group, and a former Chairman of the Minerals Exploration
Advisory Group. He was awarded AMEC’s Prospector of the Year Award (jointly) in 2003 and is a Centenary
Medallist. As Chairman of Minotaur Exploration Ltd, he is responsible for the management of the board as well as
the general strategic direction of the Company.
6
MINOTAUR
EXPLORATION
Mr Andrew Woskett B Eng, M Comm Law (Managing Director)
Andrew Woskett has 35 years project and corporate experience in the mining industry. He held senior
development responsibility for a variety of Australian mining landmarks in gold, copper, iron ore and coal. He has
had several roles as managing director of resource development companies culminating in his tenure as managing
director of Minotaur since early 2010. Andrew is a Fellow of the Australasian Institute of Mining and Metallurgy.
Mr Richard Bonython B Ag Sc (Non-Executive Director – resigned 25 November 2016)
Richard Bonython was a director of Minotaur Gold Ltd for seven years until 2001, and of Minotaur Resources until
its take-over in 2005 at which time he became a director of Minotaur Exploration. He retired as Chairman of Diamin
Resources NL in 1999 having been a director of that company for 15 years, and was chair of Hindmarsh Resources
until its take-over by Canadian company Mega Uranium. He was executive director of Pioneer Property Group Ltd
for over 15 years until 1991 and has experience of over 45 years in the building, rural and mineral industries.
He was a member of the audit committee until his resignation and is also a former director of Petratherm Ltd
(resigned March 2014) and Mithril Resources Ltd (resigned December 2014), both ASX Listed companies.
Dr Antonio Belperio BSc (Hons), PhD, FAusIMM (Executive Director)
Dr Belperio has an Honours Degree in Geology from the University of Adelaide, a PhD from James Cook University,
and a diverse background in a wide variety of geological disciplines, including marine geology, environmental
geology and mineral exploration. He has 35 years of experience in university, government and the mineral
exploration industry. Dr Belperio is also a Director of Thomson Resources Ltd, a public company listed on the ASX.
Dr Roger Higgins BE (Hons), MSc, PhD, FIEAust, FAusIMM (Non-Executive Director)
Dr Higgins brings extensive experience leading mining companies and operations and is a current director of
Newcrest Mining Ltd and Metminco Ltd, and a former director of Blackthorn Resources Ltd (resigned 2014), all
public companies listed on the ASX. He is also a current director and a former Managing Director of Ok Tedi Mining
Limited in Papua New Guinea. In his most recent executive position, Dr Higgins served as Senior Vice President,
Copper at Canadian metals and mining company, Teck Resources Limited. Prior to this role he was Vice President
and Chief Operating Officer with BHP Billiton Base Metals Customer Sector Group working in Australia and also
held senior positions with BHP Billiton in Chile. He holds the position of Adjunct Professor with the Sustainable
Minerals Institute, University of Queensland.
Varis Lidums BEc, LLB, CA, MBA (Company Secretary – appointed 1 July 2016)
Mr Lidums is a Chartered Accountant and qualified lawyer with over 20 years experience in the resources, energy
and accounting industries. He has held senior roles with BP, Shell and ConocoPhillips and has been the Commercial
Manager at Minotaur Exploration Ltd since 1 March 2011.
Donald Stephens BAcc, FCA (Company Secretary – resigned 1 July 2016)
Mr Stephens is a Chartered Accountant and corporate adviser with over 30 years 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 Mithril Resources Ltd, Petratherm Ltd and Lawson Gold Ltd, and was formerly a Director of Papyrus Australia Ltd
(resigned August 2015), Reproductive Health Science Ltd (resigned August 2015) and Crest Minerals Ltd (resigned
February 2016). He is additionally Company Secretary to Highfield Resources Ltd, Mithril Resources Ltd and various
other public companies. He holds other directorships with private companies and provides corporate advisory
services to a wide range of organisations.
7
Directors’
REPORT
Review of Operations
Corporate
At the close of the 2016 financial year the Company held $4.47 million in cash
and term deposits. A placement and entitlement offer in late 2015 injected $1.6 million
cash and accompanied the introduction of Sprott Asset Management to the register.
Sprott succeeded Norilsk Nickel Australia as the Company’s primary shareholder and, as
a consequence, Sprott now holds 13.1% of the issued shares.
OZ Minerals Ltd (ASX: OZL), Minotaur’s third ranking shareholder, joined our exploration
effort near Cloncurry, Queensland. OZ Minerals agreed to invest $1.5 million through
calendar 2016, towards discovery of Cannington-style base metals occurrences and
copper-gold potential through the Eloise Joint Venture, in which OZ Minerals may earn
up to 70% interest through expenditure of $10 million.
Minotaur was invited, by OZ Minerals, to research its exploration database for its
tenements around the Prominent Hill copper-gold mine in South Australia. The output
of that work resulted in OZ Minerals and Minotaur agreeing to jointly assess four
geophysical targets, all within 30km of the mine and under less than 150m of cover.
The field component will take place through the 2017 financial year.
Exploration
Exploration activity remained focused on copper-gold targets in Queensland and South
Australia, and on nickel-gold prospective tenements in Western Australia.
The new joint venture with OZ Minerals across the Eloise area tenements led to several
programs of ground-based EM surveys and two discrete IP surveys. Drill testing of
anomalies generated from the geophysics did not help to resolve the source of the
Olympus anomaly and, in the case of Bullwinkle, revealed low levels of copper sulphide
mineralisation. Other EM surveys are continuing along the Levuka Shear Zone, north of
the Eloise mine.
The Cloncurry joint venture with JOGMEC was terminated by mutual agreement, the
tenements returning to full Minotaur interest. Both parties created a new joint venture
over Minotaur’s tenements surrounding the Osborne copper mine, south of Cloncurry,
where both Cannington-style and sulphide hosted copper targets will be sought
through new ground EM surveys.
Minotaur participated in the South Australian Department of State
Development (DSD) Minerals Systems Drilling Program 2015
(MSDP). That program involved substantial research
and development trials, on Minotaur tenements, by DSD
in conjunction with the Deep Exploration Technology
Cooperative Research Centre (DET CRC), with technical input
from Minotaur.
8
Glen Little (Exploration Manager) inspecting
costeans at Javelin Gold Prospect, WA.
MINOTAUR
EXPLORATION
A gold deposit near Kalgoorlie, named Chameleon, identified and drilled by previous
operators, was revisited. Minotaur’s recent data re-compilation, interpretation and
wire frame modelling suggested that the deposit could be more robust than
previously understood. Minotaur undertook a reverse circulation drilling
program for 1300m to test its hypothesis. Gold intersections
confirmed the central zone of mineralisation is coherent and the
improved data density contributed to estimation of a maiden
JORC 2012 mineral resource for the deposit.
Likely developments, business strategies
and prospects
Minotaur holds to discovery as its prime objective and
the opportunity to convert economic grade deposits into
mineable propositions.
Minotaur maintains focus on its copper-gold prospects
around Cloncurry and has a positive outlook on the
unfolding work around Prominent Hill in collaboration
with tenement holder OZ Minerals.
Latent value resides throughout the Company’s
co-owned ground in the Western Australia goldfields,
as evidenced by attractive gold assays returned from
the Chameleon deposit. The Company continues
to hold a number of industrial mineral assets,
undertaking limited R&D pending improvements
in market conditions aiding divestment of these.
Information in this report that relates to Exploration Results,
Mineral Resources or Ore Reserves is based on information
compiled by Dr A. P. Belperio, who is a full-time employee
of the Company and a Fellow of the Australasian Institute
of Mining and Metallurgy. Dr A. P. Belperio has a minimum
of 5 years experience which is relevant to the style of
mineralisation and type of deposit under consideration
and to the activity which he is undertaking to qualify as
a Competent Person as defined in the 2012 Edition of the
“Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves”. Dr A. P. Belperio
consents to the inclusion in the report of the matters
based on his information in the form and context in which
it appears.
9
Directors’
REPORT
Operating results
The consolidated loss of the Group after providing for income tax amounted
to $11,750,383 (2015: $6,515,921).
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 Minotaur Exploration Ltd were:
Number of
Ordinary Shares
Number of Options over
Ordinary Shares
Derek Carter
Antonio Belperio
Roger Higgins
Andrew Woskett
2,450,441
1,537,750
-
205,000
222,768
225,000
-
-
Dividends Paid or Recommended
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 consolidated Group during the financial year were:
• To secure new tenements with potential for mineralisation; and
• To evaluate results achieved through surface sampling, drilling and
geophysical surveys carried out during the year.
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 designed to meet stakeholders’ 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.
10
Significant Changes in the State of Affairs
No significant changes occurred during the year.
Environmental Regulations
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 the majority of work carried out was in Queensland
and the Group followed procedures and pursued objectives in line with guidelines published by the
Queensland Government. These guidelines are quite detailed and encompass the impact on owners and land
users, heritage, health and safety and proper restoration practices.
The Group adheres to regulatory guidelines, and any local conditions applicable, both in South Australia and
elsewhere. The Group has not been in breach of any State or Commonwealth environmental rules or regulations
during the period.
Events since the end of the Reporting Period
No matter or circumstance has arisen since 30 June 2016 that has significantly affected the Group’s operations,
results or state of affairs, or may do so in the future.
Unissued Shares under Option
The following unlisted and listed options to acquire ordinary shares in the Company were on issue:
Issue Date
Expiry Date
Exercise Price
Balance at 1 July 2015
Net Issued/(Exercised or
Expired) during the Year
Balance at 30 June 2016
Unlisted
10/05/2010
10/05/2010
30/09/2011
04/07/2012
05/07/2013
20/11/2014
19/11/2015
Listed
30/08/2015
27/02/2016
29/09/2016
03/07/2017
04/07/2018
19/11/2019
30/11/2017
$0.40
$0.55
$0.21
$0.25
$0.30
$0.19
$0.095
08/01/2016
30/11/2017
$0.095
1,000,000
1,000,000
1,045,000
1,575,000
2,083,333
5,505,000
-
-
12,208,333
(1,000,000)
(1,000,000)
-
-
-
-
14,285,715
17,980,071
30,265,786
-
-
1,045,000
1,575,000
2,083,333
5,505,000
14,285,715
17,980,071
42,474,119
Shares Issued as a Result of Exercise of Options
During or since the end of the financial year, the Company issued ordinary shares as a result of the exercise of
listed options as follows (there were no amounts unpaid on the shares issued):
Date Options Granted
Issue Price of Shares
Number of Shares issued
08/01/2016
$0.095
6,248
Indemnification and Insurance of Directors and Officers
To the extent permitted by law, the Company has indemnified (fully insured) each director and the secretary of
the Company for an annual premium of $15,000.
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 Company 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 wilful 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 Company.
MINOTAUR EXPLORATION LIMITED
11
Directors’
REPORT
Remuneration Report – Audited
This report outlines the remuneration arrangements in place for Directors
and other key management personnel of Minotaur Exploration Ltd.
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 Andrew Woskett, are
formalised in a consultancy agreement. Mr Woskett commenced as a consultant to
Minotaur on 1 March 2010 and his annual retainer is $355,675 per annum, exclusive of
GST. The Company may terminate the consultancy agreement without cause by
providing three (3) months written notice and paying a severance amount equal to nine
(9) months’ retainer. Termination payments are generally not payable on resignation or
dismissal for serious misconduct. In the instance of serious misconduct the Company
can terminate the agreement at any time.
The employment conditions of the Executive Director, Dr Antonio Belperio, are formalised
in a contract of employment. Dr Belperio commenced employment on 1 January 2005 and
his gross salary, inclusive of the 9.5% superannuation guarantee, is $225,500 per annum.
The Company may terminate the employment contract without cause by providing six
(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 Exploration Manager, Mr Glen Little, are formalised in
a contract of employment. Mr Little commenced employment on 28 October 2014 and
his gross salary, inclusive of the 9.5% superannuation guarantee, is $192,000 per annum.
Mr Little is also entitled to the lease of a motor vehicle, with the total cost to the Company
totalling $20,000 per annum. If in a particular year the cost to the Company is less than
$20,000, the difference will be paid to Mr Little as additional remuneration. The Company
may terminate the employment contract without cause by providing one (1) month
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 Commercial Manager and Company Secretary
(effective 1 July 2016), Mr Varis Lidums, are formalised in a contract of employment.
Mr Lidums commenced employment on 1 March 2011 and his gross salary, inclusive of
the 9.5% superannuation guarantee, is $195,000 per annum. The Company may terminate
the employment contract without cause by providing one (1) month 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.
12
MINOTAUR
EXPLORATION
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 other key management personnel is expensed as incurred.
Key management are also entitled to participate in the Group’s share option scheme. Options are valued using
the Black-Scholes methodology.
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.
Table 1: Director remuneration for the year ended 30 June 2016 and 30 June 2015
Short Term Employee Benefits
Post Employment
Share-based Payments
Totals
Performance Based
Salary & Fees
Bonus
Superannuation
Options
$
% of Remuneration
John Atkins*
Derek Carter
Antonio Belperio
2016
2015
2016
2015
2016
2015
Richard Bonython** 2016
2015
Andrew Woskett
Total
2016
2015
2016
2015
-
43,836
86,982
91,560
205,936
257,420
16,305
43,899
337,891
355,675
647,114
792,390
-
-
-
-
-
38,613
-
-
-
62,243
-
100,856
-
4,164
-
-
19,564
28,123
1,549
4,170
-
-
21,113
36,457
-
-
-
-
-
-
-
-
-
-
-
-
-
48,000
86,982
91,560
225,500
324,156
17,854
48,069
337,891
417,918
668,227
929,703
-
-
-
-
-
12
-
-
-
15
-
11
Table 2: Remuneration of other key management personnel for the year ended 30 June 2016 and 30 June 2015
Short Term Employee Benefits
Post Employment
Share-based Payments
Totals
Performance Based
Salary & Fees
Bonus
Superannuation
Options
$
% of Remuneration
Ian Garsed*
Varis Lidums
Glen Little**
2016
2015
2016
2015
2016
2015
Donald Stephens*** 2016
2015
-
41,958
169,178
178,082
171,011
116,221
-
-
-
-
-
30,137
-
-
-
-
-
1,800
16,072
19,781
16,246
11,041
-
-
Total
2016
2015
340,189
336,261
-
30,137
32,318
32,622
-
-
-
50,310
-
111,800
-
-
-
162,110
-
43,758
185,250
278,310
187,257
239,062
-
-
372,507
561,130
-
-
-
11
-
-
-
-
-
5
13
Directors’
REPORT
Remuneration Report – Audited
Other transactions with key management personnel
*** Donald Stephens: HLB Mann Judd (SA) Pty Ltd received professional fees for
accounting, taxation and secretarial services provided during the year amounting to
$74,824 (2015: $67,553) (inclusive of GST). Donald Stephens, the Company Secretary,
is a consultant with HLB Mann Judd (SA) Pty Ltd.
Throughout the year $53,078 (2015: $51,680) (inclusive of GST) was paid to a related
entity of Mr Antonio Belperio under a commercial lease agreement for the use of
warehouse space located at Magill, South Australia.
Bonuses
No bonuses were paid during the 2016 financial year.
Share-based remuneration
Options may be granted to Key Management Personnel at the discretion of the Board
under an Employee Share Option Plan.
All options refer to options over ordinary shares of the Company, which are
exercisable on a one-for-one basis under the terms of the agreements.
All options expire on the earlier of their expiry date or termination of the
individual’s employment.
14
MINOTAUR
EXPLORATION
Options held by key management personnel for the year ended 30 June 2016
Directors
Andrew Woskett
Andrew Woskett
Other key management
Varis Lidums
Varis Lidums
Varis Lidums
Glen Little
Balance at
beginning of period
Granted
as remuneration
Exercised
Net change
other
Balance at
end of period
Expiry
date
First
exercise date
1,000,000
1,000,000
250,000
250,000
450,000
1,000,000
-
-
-
-
-
-
-
-
-
-
-
-
(1,000,000)
(1,000,000)
-
-
30/08/15
30/08/10
27/02/16
28/02/11
-
-
-
-
250,000
250,000
450,000
29/09/16
30/09/12
03/07/17
04/07/12
21/11/19
20/11/14
1,000,000
21/11/19
20/11/14
Shares held by key management personnel for the year ended 30 June 2016
Directors
Derek Carter
Antonio Belperio
Andrew Woskett
Other key management
Varis Lidums
Glen Little
Balance at
1 July 2015
2,261,701
1,312,750
205,000
-
58,956
Use of remuneration consultants
On exercise
of options
-
-
-
-
-
Net change
other
226,171
225,000
50,000
-
-
Balance
30 June 2016
2,487,872
1,537,750
255,000
-
58,956
During the financial year, there were no remuneration recommendations made in relation to key management
personnel for the Company by any remuneration consultants.
Voting and comments made at the Company’s 2015 Annual General Meeting
Minotaur Exploration Ltd received more than 97.9% of “yes” votes on its remuneration report for the 2015
financial year by proxy.
The Company did not receive any feedback at the Annual General Meeting on its remuneration report.
End of audited remuneration report.
Directors’ meetings
The number of meetings of directors (including meetings of committees of directors) held during the year and the
number of meetings attended by each director were as follows:
Director
Derek Carter
Andrew Woskett
Richard Bonython
Antonio Belperio
Directors’ Meetings
Audit Committee
Eligible
Attended
Eligible
Attended
6
6
3
6
6
6
3
6
-
-
1
1
-
-
1
1
15
Directors’
REPORT
Proceeds 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.
Non-audit services
During the year, Grant Thornton, the Company’s auditors, performed certain other
services in addition to their statutory audit duties.
The Board has considered the non-audit services provided during the year by the
auditor and is satisfied that the provision of those non-audit services during the year is
compatible with, and did not compromise, the auditor independence requirements of
the Corporations Act 2001 for the following reasons:
• all non-audit services were subject to the corporate governance procedures adopted
by the Company to ensure they do not impact upon the impartiality and objectivity
of the auditor; and
• the non-audit services do not undermine the general principles relating to auditor
independence as set out in APES 110 Code of Ethics for Professional Accountants, as
they did not involve reviewing or auditing the auditor’s own work, acting in a
management or decision-making capacity for the Company, acting as an advocate
for the Company or jointly sharing risks and rewards.
Details of the amounts paid to the auditors of the Company, Grant Thornton, and its
related practices for audit and non-audit services provided during the year are set out in
Note 23 to the Financial Statements.
A copy of the Auditor’s Independence Declaration as required under s307C of the
Corporations Act 2001 is included on page 17 of this financial report and forms part of
this Directors’ Report.
Signed in accordance with a resolution of the Directors:
Derek Carter
Chairman
Dated this 25th day of August 2016
16
Auditor’s independence
DECLARATION
to the Directors of Minotaur Exploration Limited
Level 1,
67 Greenhill Rd
Wayville SA 5034
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 MINOTAUR EXPLORATION LIMITED
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit
of Minotaur Exploration Limited for the year ended 30 June 2016, 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
I S Kemp
Partner – Audit & Assurance
Adelaide, 25 August 2016
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. Liability is limited in those States where a current scheme applies.
17
Financial
REPORT
Consolidated Statement of Profit or Loss and
Other Comprehensive Income FOR THE YEAR ENDED 30 JUNE 2016
Revenue
Loss on disposal of foreign subsidiary
Other income
Impairment of exploration and evaluation assets
Impairment of available-for-sale investments
Project generation costs
Employee benefits expense
Depreciation expense
Finance costs
Other expenses
Loss before income tax expense
Income tax benefit
Loss for the year
Other comprehensive income (net of tax)
Items that may be reclassified to profit or loss
Write-off of foreign currency translation reserve upon
disposal of foreign subsidiary
Fair value gains on available-for-sale assets
Note
4(a)
4(c)
4(b)
4(d)
4(d)
4(d)
4(e)
4(d)
4(d)
4(f)
5
Consolidated Group
2016
$
342,384
-
466,680
2015
$
423,471
(73,639)
51,882
(11,420,788)
(4,808,019)
(9,728)
(324,458)
(313,706)
(187,627)
(2,075)
(878,666)
(12,327,984)
577,601
(178,379)
(374,122)
(787,398)
(192,820)
(5,718)
(1,126,238)
(7,070,980)
555,059
(11,750,383)
(6,515,921)
19(b)
19(c)
-
208,146
125,630
-
Total comprehensive income for the year
(11,542,237)
(6,390,291)
Loss for the year is attributable to:
Members of the parent entity
Non-controlling interest
Total comprehensive income for the year is attributable to:
Members of the parent entity
Non-controlling interest
Earnings per share
Basic earnings per share (cents)
Diluted earnings per share (cents)
20
21
(11,082,042)
(668,341)
(6,472,394)
(43,527)
(11,750,383)
(6,515,921)
(10,873,896)
(668,341)
(6,346,764)
(43,527)
(11,542,237)
(6,390,291)
6
6
(5.58)
(5.58)
(3.81)
(3.81)
The above statement should be read in conjunction with the accompanying notes.
18 MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
Consolidated Statement of Financial Position AS AT 30 JUNE 2016
MINOTAUR
EXPLORATION
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other current assets
Held-for-sale assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Available-for-sale investments
Property, plant and equipment
Exploration and evaluation assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Borrowings
Short-term provisions
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Borrowings
Long-term provisions
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
PARENT INTEREST
Non-controlling interest
TOTAL EQUITY
Consolidated Group
Note
2016
$
2015
$
7
8
9
10
11
12
13
15
16
17
16
17
18
19
20
21
4,471,763
34,431
78,846
4,585,040
-
4,163,979
35,330
166,884
4,366,193
4,758,158
4,585,040
9,124,351
636,971
947,716
10,217,052
839,083
1,161,157
13,759,742
11,801,739
15,759,982
16,386,780
24,884,333
1,298,599
14,933
500,084
935,464
14,089
483,624
1,813,616
1,433,177
394,574
41,067
435,641
409,507
26,391
435,898
2,249,258
1,869,075
14,137,522
23,015,258
42,930,982
1,044,644
40,781,387
1,024,418
(29,842,301)
(18,975,019)
14,133,325
22,830,786
4,197
184,472
14,137,522
23,015,258
The above statement should be read in conjunction with the accompanying notes.
MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
19
Financial
REPORT
Consolidated Statement of Changes in Equity
FOR THE YEAR ENDED 30 JUNE 2016
Consolidated Group
Issued
Capital
Ordinary
$
Share
Option
Reserve
$
Other
Components
of Equity
(Note 19)
$
Note
Accumulated
Losses
$
Non-
Controlling
Interest
$
Total Equity
$
40,781,387
1,024,418
-
(18,975,019)
184,472
23,015,258
-
-
18
2,258,744
18
188
-
-
-
-
-
-
-
(187,920)
-
-
-
2,149,595
(187,920)
208,146
(11,082,042)
(668,341)
(11,542,237)
208,146
(11,082,042)
(668,341)
(11,542,237)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,258,744
(109,337)
188
514,906
514,906
26,840
(26,840)
187,920
-
-
-
214,760
488,066
2,664,501
Balance at 1 July 2015
Comprehensive income
Total loss for the year
Total comprehensive income
for the year
Transactions with owners,
in their capacity as owners,
and other transfers
Issue of shares through
Share Placement and
Rights Issue
Issue of shares through
exercise of options
Conversion of non-controlling
interest loan to equity in
controlled entity
Adjustment upon increase
in ownership percentage in
controlled entity
Transfer from share option
reserve upon lapse of options
19(a)
Transaction costs (net of tax)
(109,337)
Balance at 30 June 2016
42,930,982
836,498
208,146
(29,842,301)
4,197
14,137,522
36,874,859
924,589
(125,630)
(13,018,255)
227,999
24,883,562
Balance at 1 July 2014
Comprehensive income
Total loss for the year
Write-off of foreign currency
translation reserve upon
disposal of foreign subsidiary
Total comprehensive income
for the year
Transactions with owners,
in their capacity as owners,
and other transfers
Issue of shares through
Share Purchase Plan and
Share Placement
Transaction costs (net of tax)
Options issued under
Employee Share Option Plan
Transfer from share option
reserve upon lapse of options
-
-
-
18
3,991,000
(84,472)
-
-
-
-
-
19(a)
19(a)
-
-
615,459
(515,630)
3,906,528
99,829
-
(6,472,394)
(43,527)
(6,515,921)
125,630
-
-
125,630
125,630
(6,472,394)
(43,527)
(6,390,291)
-
-
-
-
-
-
-
-
-
515,630
515,630
-
-
-
-
-
3,991,000
(84,472)
615,459
-
4,521,987
(18,975,019)
184,472
23,015,258
Balance at 30 June 2015
40,781,387
1,024,418
The above statement should be read in conjunction with the accompanying notes.
20 MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
Consolidated Statement of Cash Flows FOR THE YEAR ENDED 30 JUNE 2016
MINOTAUR
EXPLORATION
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers and employees
Interest received
Finance costs
R&D tax concession received
Consolidated Group
Note
2016
$
2015
$
285,003
(1,552,420)
56,674
(2,075)
624,460
253,056
(1,720,064)
109,838
(5,718)
598,227
NET CASH USED IN OPERATING ACTIVITIES
7
(588,358)
(764,661)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of available-for-sale investments
Proceeds from sale of available-for-sale investments
Payment for Scotia Project Gold JV interest
Joint Venture receipts
Government grants received for exploration activities
Payment for exploration activities
(11,006)
38,366
(103,328)
962,039
(50,000)
2,711,268
80,573
(4,973,070)
(124,177)
25,001
(80,000)
326,989
-
3,794,983
-
(7,951,152)
NET CASH USED IN INVESTING ACTIVITIES
(1,345,158)
(4,008,356)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares through Share Purchase Plan and Share Placement
Funds received from GFR
Payment of transaction costs for issue of shares
Proceeds from borrowings
Repayment of borrowings
2,258,931
152,653
(156,195)
-
(14,089)
3,991,000
362,253
(127,640)
46,747
(129,537)
NET CASH PROVIDED BY FINANCING ACTIVITIES
2,241,300
4,142,823
NET INCREASE/DECREASE IN CASH AND CASH EQUIVALENTS
Cash at the beginning of the year
CASH AT THE END OF THE YEAR
307,784
4,163,979
(630,194)
4,794,173
7
4,471,763
4,163,979
The above statement should be read in conjunction with the accompanying notes.
MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
21
Financial
REPORT
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2016
These consolidated financial statements and notes represent
those of Minotaur Exploration Ltd and Controlled Entities
(the ”consolidated Group” or “Group”).
entities is included only for the period of the year that
they were controlled. A list of controlled entities is
contained in Note 25 to the financial statements.
The separate financial statements of the parent entity,
Minotaur Exploration Ltd, have not been presented within this
financial report as permitted by the Corporations Act 2001.
1 SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
Basis of Preparation
The consolidated financial statements are general purpose
financial statements that have been prepared in accordance
with Australian Accounting Standards, Australian Accounting
Interpretations, other authoritative pronouncements of the
Australian Accounting Standards Board and the Corporations
Act 2001. The Group is a for-profit entity for financial reporting
purposes under Australian Accounting Standards.
Minotaur Exploration Limited is the Group’s Ultimate Parent
Company. Minotaur Exploration Limited is a Public Company
incorporated and domiciled in Australia. The address of its
registered office is C/- HLB Mann Judd (SA) Pty Ltd,
169 Fullarton Road, Dulwich SA 5065 and its principal place
of business is Level 1, 8 Beulah Road, Norwood SA 5067.
Australian Accounting Standards set out accounting policies
that the Australian Accounting Standards Board has
concluded would result in financial statements containing
relevant and reliable information about transactions, events
and conditions. Compliance with Australian Accounting
Standards ensures that the financial statements and notes
also comply with International Financial Reporting Standards
as issued by the International Accounting Standards Board
(IASB). Material accounting policies adopted in the
preparation of these financial statements are presented below
and have been consistently applied unless stated otherwise.
Except for cash flow information, the financial statements 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.
The consolidated financial statements for the year ended
30 June 2016 were approved and authorised for issue by the
Board of Directors on 25th August 2016.
a) Principle of Consolidation
The consolidated financial statements incorporate the as-
sets, liabilities and results of entities controlled by Mino-
taur Exploration Ltd at the end of the reporting period.
The parent entity controls a subsidiary if it is exposed, or
has rights, to variable returns from its involvement with
the subsidiary and has the ability to affect those returns
through its power over the subsidiary.
Where controlled entities have entered or left the Group
during the year, the financial performance of those
In preparing the consolidated financial statements, all
inter-group balances and transactions between entities
in the consolidated group have been eliminated in full
on consolidation.
Non-controlling interests, being the equity in a subsidiary
not attributable, directly or indirectly, to a parent, are
reported separately within the equity section of the
consolidated statement of financial position and
statement of profit or loss and other comprehensive
income. The non-controlling interests in the net assets
comprise their interests at the date of the original
business combination and their share of changes in
equity since that date.
Non-controlling interests
Non-controlling interests (i.e. equity in a subsidiary not
attributable directly or indirectly to a parent) are present
in the consolidated statement of financial position
within equity separately from the equity of the owners
of the parent.
b)
Income Tax
The income tax expense (revenue) for the year comprises
current income tax expense (income) and deferred tax
expense (income).
Current income tax expense charged to profit or loss is
the tax payable on taxable income. Current tax liabilities
(assets) are measured at the amounts expected to be
paid to (recovered from) the relevant taxation authority.
Deferred income tax expense reflects movements in
deferred tax asset and deferred tax liability balances
during the year as well unused tax losses.
Current and deferred income tax expense (income) is
charged or credited outside profit or loss when the tax
relates to items that are recognised outside profit or loss.
Except for business combinations, no deferred income
tax is recognised from the initial recognition of an asset
or liability, where there is no effect on accounting or
taxable profit or loss.
Deferred tax assets and liabilities are calculated at the
tax rates that are expected to apply to the period when
the asset is realised or the liability is settled and their
measurement also reflects the manner in which
management expects to recover or settle the carrying
amount of the related asset or liability.
Deferred tax assets relating to temporary differences and
unused tax losses are recognised only to the extent that
it is probable that future taxable profit will be available
against which the benefits of the deferred tax asset can
be utilised.
22 MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
MINOTAUR
EXPLORATION
Where temporary differences exist in relation to
investments in subsidiaries, branches, associates, and
joint ventures, deferred tax assets and liabilities are not
recognised where the timing of the reversal of the
temporary difference can be controlled and it is not
probable that the reversal will occur in the foreseeable
future.
Current tax assets and liabilities are offset where a legally
enforceable right of set-off exists and it is intended that
net settlement or simultaneous realisation and settlement
of the respective asset and liability will occur. Deferred
tax assets and liabilities are offset where:
a) a legally enforceable right of set-off exists; and
b)
the deferred tax assets and liabilities relate to income
taxes levied by the same taxation authority on
either the same taxable entity or different taxable
entities where it is intended that net settlement or
simultaneous realisation and settlement of the
respective asset and liability will occur in future
periods in which significant amounts of deferred tax
assets or liabilities are expected to be recovered
or settled.
Tax consolidation
The parent entity and its Australian wholly-owned entities
are part of a tax-consolidated group under Australian
taxation law. The head entity within the tax consolidation
group for the purposes of the tax consolidation system is
Minotaur Exploration Ltd.
Minotaur Exploration Ltd and each of its own wholly-
owned subsidiaries recognise the current and deferred
tax assets and deferred tax liabilities applicable to the
transactions undertaken by it, after elimination of
intra-group transactions. Minotaur Exploration Ltd
recognises the entire tax-consolidated group’s retained
tax losses.
Research and development tax incentive
To the extent that research and development costs are
eligible activities under the “Research and development
tax incentive” programme, a 45% refundable tax offset is
available for companies with annual turnover of less than
$20 million. The Group recognises refundable tax offsets
received in the financial year as an income tax benefit,
in profit or loss, resulting from the monetisation of
available tax losses that otherwise would have been
carried forward.
c) Property, Plant and Equipment
Each class of property, plant and equipment is carried at
cost as indicated less, where applicable, any accumulated
depreciation and impairment losses.
Land and buildings
Buildings are measured on the cost basis and therefore
carried at cost less accumulated depreciation for buildings
and any accumulated impairment. In the event the
carrying amount of buildings is greater than the estimated
recoverable amount, the carrying amount is written
down immediately to the estimated recoverable amount
and impairment losses are recognised either in profit or
loss or as a revaluation decrease if the impairment
losses relate to a revalued asset. A formal assessment of
recoverable amount is made when impairment indicators
are present.
Plant and equipment
Plant and equipment are measured on the cost basis and
therefore carried at cost less accumulated depreciation
and any accumulated impairment. In the event the
carrying amount of plant and equipment is greater than
the estimated recoverable amount, the carrying amount
is written down immediately to the estimated recoverable
amount and impairment losses are recognised either
in profit or loss or as a revaluation decrease if the
impairment losses relate to a revalued asset. A formal
assessment of recoverable amount is made when
impairment indicators are present.
The carrying amount of property, plant and equipment
is reviewed annually by directors to ensure it is not in
excess of the recoverable amount from these assets.
The recoverable amount is assessed on the basis of the
expected net cash flows that will be received from the
asset’s employment and subsequent disposal.
The expected net cash flows have been discounted to
their present values in determining recoverable amounts.
The cost of fixed assets constructed within the
consolidated group includes the cost of materials, direct
labour, borrowing costs and an appropriate proportion
of fixed and variable overheads. Subsequent costs are
included in the asset’s carrying amount or recognised as
a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item
will flow to the Group and the cost of the item can be
measured reliably. All other repairs and maintenance
are charged to the statement of profit or loss and other
comprehensive income during the financial period in
which they are incurred.
Depreciation
The depreciable amount of all fixed assets including
buildings and capitalised lease assets, but excluding
freehold land, is depreciated on a straight-line and
diminishing value basis over the asset’s useful life to the
consolidated group commencing from the time the
asset is held ready for use. Leasehold improvements are
depreciated over the shorter of either the unexpired
period of the lease or the estimated useful lives of the
improvements.
MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
23
Financial
REPORT
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2016
1 SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
c) Property, Plant and Equipment
Depreciation
The useful life for each class of depreciable assets are:
Class of Fixed Asset
Leasehold improvements
Buildings
Plant and equipment
Motor Vehicles
Useful life
3 -7 years
20 years
2 -20 years
6 -10 years
The assets’ residual values and useful lives are reviewed,
and adjusted if appropriate, at the end of each
reporting period. An asset’s carrying amount is written
down immediately to its recoverable amount if the
asset’s carrying amount is greater than its estimated
recoverable amount.
Gains and losses on disposals are determined by
comparing proceeds with the carrying amount. These
gains and losses are included in the statement of profit
or loss and other comprehensive income. When revalued
assets are sold, amounts included in the revaluation
surplus relating to that asset are transferred to retained
earnings.
d) Exploration and Development Expenditure
Exploration, evaluation and development expenditures
incurred are capitalised in respect of each identifiable
area of interest. These costs are only capitalised to the
extent that they are expected to be recovered through
the successful development of the area or where activities
in the area have not yet reached a stage that permits
reasonable assessment of the existence of economically
recoverable reserves.
Accumulated costs in relation to an abandoned area are
written off in full against profit in the year in which the
decision to abandon the area is made.
When production commences, the accumulated costs
for the relevant area of interest are amortised over the
life of the area according to the rate of depletion of the
economically recoverable reserves.
A regular review is undertaken of each area of interest
to determine the appropriateness of continuing to
capitalise costs in relation to that area of interest.
Costs of site restoration are provided over the life of the
project from when exploration commences and are
included in the costs of that stage. Site restoration costs
include the dismantling and removal of mining plant,
equipment and building structures, waste removal, and
rehabilitation of the site in accordance with local laws
and regulations and clauses of the permits.
Such costs have been determined using estimates of
future costs, current legal requirements and technology
on an undiscounted basis.
Any changes in the estimates for the costs are accounted
on a prospective basis. In determining the costs of site
restoration, there is uncertainty regarding the nature and
extent of the restoration due to community expectations
and future legislation. Accordingly the costs have
been determined on the basis that the restoration will
be completed within one year of abandoning the site.
e) Leases
Leases of fixed assets where substantially all the risks
and benefits incidental to the ownership of the asset, but
not the legal ownership that is transferred to entities in
the consolidated group, are classified as finance leases.
Finance leases are capitalised by recognising an asset
and a liability at the lower of the amounts equal to the
fair value of the leased property or the present value of
the minimum lease payments, including any guaranteed
residual values. Lease payments are allocated between
the reduction of the lease liability and the lease interest
expense for the period.
Leased assets are depreciated on a diminishing value
basis over the shorter of their estimated useful lives or
the lease term.
Lease payments for operating leases, where substantially
all the risks and benefits remain with the lessor, are
recognised as expenses in the periods in which they
are incurred.
Lease incentives under operating leases are recognised
as a liability and amortised on a straight line basis over
the lease term.
f) Financial Instruments
Recognition and initial measurement
Financial assets and financial liabilities are recognised
when the entity becomes a party to the contractual
provisions to the instrument. For financial assets, this is
equivalent to the date that the company commits itself
to either the purchase or sale of the asset (i.e. trade date
accounting is adopted).
Financial instruments are initially measured at fair value
plus transaction costs, except where the instrument is
classified "at fair value through profit or loss", in which
case transaction costs are expensed to profit or loss
immediately.
Classification and subsequent measurement
Finance instruments are subsequently measured at fair
value, amortised cost using the effective interest rate
method, or cost.
24 MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
MINOTAUR
EXPLORATION
Amortised cost is the amount at which the financial asset
or financial liability is measured at initial recognition less
principal repayments and any reduction for impairment,
and adjusted for any cumulative amortisation of the
difference between that initial amount and the maturity
amount calculated using the effective interest method.
Fair value is determined based on current bid prices for
all quoted investments. Valuation techniques are applied
to determine the fair value for all unlisted securities,
including recent arm’s length transactions, reference to
similar instruments and option pricing models.
The effective interest method is used to allocate interest
income or interest expense over the relevant period and
is equivalent to the rate that discounts estimated future
cash payments or receipts (including fees, transaction
costs and other premiums or discounts) through the
expected life (or when this cannot be reliably predicted,
the contractual term) of the financial instrument to the
net carrying amount of the financial asset or financial
liability. Revisions to expected future net cash flows will
necessitate an adjustment to the carrying value with a
consequential recognition of an income or expense item
in profit or loss.
The Group does not designate any interests in
subsidiaries, associates or joint venture entities as being
subject to the requirements of Accounting Standards
specifically applicable to financial instruments.
i)
Loans and receivables
Loans and receivables are non-derivative financial
assets with fixed or determinable payments that are
not quoted in an active market and are subsequently
measured at amortised cost. Gains or losses are
recognised in profit or loss through the amortisation
process and when the financial asset is derecognised.
Loans and receivables are included in current assets,
where they are expected to mature within 12 months
after the end of the reporting period.
ii) Available-for-sale investments
Available-for-sale investments are non-derivative
financial assets that are either not capable of being
classified into other categories of financial assets
due to their nature or they are designated as such by
management. They comprise investments in the
equity of other entities where there is neither a fixed
maturity nor fixed or determinable payments.
They are subsequently measured at fair value with
any remeasurements other than impairment losses
and foreign exchange gains and losses recognised in
other comprehensive income. When the financial
asset is derecognised, the cumulative gain or loss
pertaining to that asset previously recognised
in other comprehensive income is reclassified into
profit or loss.
Available-for-sale financial assets are classified as
non-current assets when they are expected to be
sold after 12 months from the end of the reporting
period. All other available-for-sale financial assets
are classified as current assets.
iii) Financial liabilities
Non-derivative financial liabilities other than financial
guarantees are subsequently measured at amortised
cost. Gains or losses are recognised in profit or loss
through the amortisation process and when the
financial liability is derecognised.
g)
Investments in Associates and Joint Ventures
Associates are those entities over which the Group is
able to exert significant influence but which are not
subsidiaries.
A joint venture is an arrangement that the Group controls
jointly with one or more other investors, and over which
the Group has rights to a share of the arrangement’s net
assets rather than direct rights to underlying assets and
obligations for underlying liabilities. A joint arrangement
in which the Group has direct rights to underlying assets
and obligations for underlying liabilities is classified as a
joint operation.
Investments in associates and joint ventures are
accounted for using the equity method. Interests in joint
operations are accounted for by recognising the Group’s
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 and its
expenses (including its share of any expenses incurred
jointly). Any goodwill or fair value adjustment attributable
to the Group’s share in the associate or joint venture is
not recognised separately and is included in the amount
recognised as investment.
The carrying amount of the investment in associates
and joint ventures is increased or decreased to
recognise the Group’s share of the profit or loss and
other comprehensive income of the associate and joint
venture, adjusted where necessary to ensure consistency
with the accounting policies of the Group.
Unrealised gains and losses on transactions between the
Group and its associates and joint ventures are eliminated
to the extent of the Group’s interest in those entities.
Where unrealised losses are eliminated, the underlying
asset is also tested for impairment.
MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
25
Financial
REPORT
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2016
1 SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
h) Business Combinations
The Group applies the acquisition method in accounting
for business combinations. The consideration transferred
by the Group to obtain control of a subsidiary is calculated
as the sum of the acquisition-date fair values of assets
transferred, liabilities incurred and the equity interests
issued by the Group, which includes the fair value of any
asset or liability arising from a contingent consideration
arrangement. Acquisition costs are expensed as incurred.
The Group recognises identifiable assets acquired and
liabilities assumed in a business combination regardless
of whether they have been previously recognised in the
acquiree’s financial statements prior to the acquisition.
Assets acquired and liabilities assumed are generally
measured at their acquisition-date fair values.
Goodwill is stated after separate recognition of
identifiable intangible assets. It is calculated as the excess
of the sum of (a) fair value of consideration transferred,
(b) the recognised amount of any non-controlling interest
in the acquire, and (c) acquisition-date fair value of any
existing equity interest in the acquiree, over the
acquisition-date fair values of identifiable net assets.
i) Foreign Currency Transactions and Balances
Functional and presentation currency
The functional currency of each of the Group’s entities
is measured using the currency of the primary
economic environment in which that entity operates.
The consolidated financial statements are presented in
Australian dollars which is the parent entity’s functional
and presentation currency.
Transactions and balances
Foreign currency transactions are translated into
functional currency using the exchange rates prevailing
at the date of the transaction. Foreign currency monetary
items are translated at the year end exchange rate.
Non-monetary items measured at historical cost continue
to be carried at the exchange rate at the date of the
transaction. Non-monetary items measured at fair value
are reported at the exchange rate at the date when fair
values were determined.
Exchange differences arising on the translation of
monetary items are recognised in profit or loss, except
where deferred in equity as a qualifying cash flow or
net investment hedge.
Exchange differences arising on the translation of
non-monetary items are recognised directly in other
comprehensive income to the extent that the underlying
gain or loss is recognised in other comprehensive
income; otherwise the exchange difference is recognised
in profit or loss.
Group companies
The financial results and position of foreign operations,
whose functional currency is different from the Group’s
presentation currency, are translated as follows:
•
assets and liabilities are translated at exchange
rates prevailing at the end of the reporting period;
•
•
income and expenses are translated at average
exchange rates for the period; and
retained earnings are translated at the exchange
rates prevailing at the date of the transaction.
Exchange differences arising on translation of foreign
operations with functional currencies other than
Australian dollars are recognised in other comprehensive
income and included in the foreign currency translation
reserve in the statement of financial position. These
differences are recognised in profit or loss in the period
in which the operation is disposed.
j) Employee Benefits
Short-term employee benefits
Short-term employee benefits are benefits, other than
termination benefits, that are expected to be settled
wholly within twelve (12) months after the end of the
period in which the employees render the related service.
Short-term employee benefits are measured at the
undiscounted amounts expected to be paid when the
liabilities are settled.
Other long-term employee benefits
The Group’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 Group presents employee benefit obligations as
current liabilities in the statement of financial position
if the Group 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.
26 MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
MINOTAUR
EXPLORATION
Equity-settled compensation
The Group operates an employee share option plan.
Share-based payments to employees are measured
at the fair value of the instruments issued and amortised
over the vesting periods. Share-based payments to
non-employees are measured at the fair value of goods
or services received or the fair value of the equity
instruments issued, if it is determined the fair value of the
goods or services cannot be reliably measured, and are
recorded at the date the goods or services are received.
The corresponding amount is recorded to the option
reserve. The fair value of options is determined using the
Black-Scholes pricing model. The number of options
expected to vest is reviewed and adjusted at the end of
each reporting period such that the amount recognised
for services received as consideration for the equity
instruments granted is based on the number of equity
instruments that eventually vest.
Revenue recognition relating to the provision of services
is determined with reference to the stage of completion of
the transaction at the end of the reporting period, where
outcome of the contract can be estimated reliably. Stage
of completion is determined with reference to the services
performed to date as a percentage of total anticipated
services to be performed. Where the outcome cannot
be estimated reliably, revenue is recognised only to the
extent that related expenditure is recoverable.
All revenue is stated net of the amount of goods and
services tax (GST).
n) Trade and Other Payables
Trade and other payables represent the liabilities for
goods and services received by the entity that remain
unpaid at the end of the reporting period. The balance
is recognised as a current liability with the amounts
normally paid within 30-90 days of recognition of
the liability.
k) Provisions
o) Borrowing Costs
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.
Provisions are measured using the best estimate of the
amounts required to settle the obligation at the end of
the reporting period.
l) Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits
available on demand with banks, other short-term highly
liquid investments with original maturities of 6 months
or less, and bank overdrafts.
Bank overdrafts are reported within short-term
borrowings in current liabilities in the statement of
financial position.
m) Revenue and Other Income
Revenue is measured at the fair value of the consideration
received or receivable after taking into account any trade
discounts and volume rebates allowed. When the inflow
of consideration is deferred, it is treated as the provision
of financing and is discounted at a rate of interest that is
generally accepted in the market for similar arrangements.
The difference between the amount initially recognised
and the amount ultimately received is interest revenue.
Revenue from the sale of goods is recognised at the
point of delivery as this corresponds to the transfer of
significant risks and rewards of ownership of the goods
and the cessation of all involvement in those goods.
Interest revenue is recognised using the effective interest
rate method.
Borrowing costs directly attributable to the acquisition,
construction or production of assets that necessarily take
a substantial period of time to prepare for their intended
use or sale are added to the cost of those assets, until
such time as the assets are substantially ready for their
intended use or sale.
All other borrowing costs are recognised in profit or loss
in the period in which they are incurred.
p) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of
the amount of GST, except where the amount of GST
incurred is not recoverable from the Australian Taxation
Office (ATO).
Receivables and payables are stated inclusive of the
amount of GST receivable or payable. The net amount of
GST recoverable from, or payable to, the ATO is included
with other receivables or payables in the statement of
financial position.
Cash flows are presented on a gross basis. The GST
components of cash flows arising from investing or
financing activities which are recoverable from, or payable
to, the ATO are presented as operating cash flows included
in receipts from customers or payments to suppliers.
q) Government Grants
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. Grants relating to assets are
credited to deferred income at fair value and are credited
to income over the expected useful life of the asset on a
straight-line basis.
MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
27
Financial
REPORT
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2016
1 SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
r) Comparative Figures
When required by Accounting Standards, comparative
figures have been adjusted to conform to changes in
presentation for the current financial year.
s) Critical Accounting Estimates and Judgments
The directors evaluate estimates and judgments
incorporated into the financial statements based on
historical knowledge and best available current
information. Estimates assume a reasonable expectation
of future events and are based on current trends and
economic data, obtained both externally and within
the Group.
Key estimates
i)
Impairment
The Group assesses impairment at the end of each
reporting period by evaluating conditions and
events specific to the Group that may be indicative
of impairment triggers. Recoverable amounts of
relevant assets are reassessed using fair value less
cost of disposal or value-in-use calculations which
incorporate various key assumptions.
ii) Exploration and evaluation expenditure
The Group capitalises expenditure relating to
exploration and evaluation where it is considered
likely to be recoverable or where the activities have
not reached a stage that permits a reasonable
assessment of the existence of reserves. While there
are certain areas of interest from which no reserves
have been extracted, the directors are of the
continued belief that such expenditure should not
be written off since feasibility studies in such areas
have not yet concluded. Such capitalised expenditure
is carried at the end of the year at $10,217,052
(2015: $13,759,742).
t) Changes in accounting policies
New and amended standards adopted by the Group
A number of new and revised standards became effective
for the first time to annual periods beginning on or
after 1 July 2015. Information on the more significant
standard(s) is presented below.
AASB 2015-4 amends AASB 128 Investments in Associates
and Joint Ventures to ensure that its reporting requirements
on Australian groups with a foreign parent align with
those currently available in AASB 10 Consolidated Financial
Statements for such groups. AASB 128 will now only
require the ultimate Australian entity to apply the equity
method in accounting for interests in associates and joint
ventures, if either the entity or the group is a reporting
entity, or both the entity and group are reporting entities.
AASB 2015-4 is applicable to annual reporting periods
beginning on or after 1 July 2015.
The adoption of this amendment has not had a material
impact on the Group.
u) Standards, amendments and interpretations to
existing standards that are not yet effective and
have not been adopted early by the Group
AASB 9 Financial Instruments (December 2014)
AASB 9 introduces new requirements for the classification
and measurement of financial assets and liabilities and
includes a forward-looking ‘expected loss’ impairment
model and a substantially-changed approach to hedge
accounting. These requirements improve and simplify the
approach for classification and measurement of financial
assets compared with the requirements of AASB 139.
The main changes are:
a) Financial assets that are debt instruments will be
classified based on:
i)
ii)
the objective of the entity’s business model for
managing the financial assets; and
the characteristics of the contractual cash flows.
b) Allows an irrevocable election on initial recognition
to present gains and losses on investments in equity
instruments that are not held for trading in other
comprehensive income (instead of in profit or loss).
Dividends in respect of these investments that are a
return on investment can be recognised in profit or loss
and there is no impairment or recycling on disposal of
the instrument.
Introduces a ‘fair value through other comprehensive
c)
income’ measurement category for particular simple
debt instruments.
d) Financial assets can be designated and measured
at fair value through profit or loss at initial recognition
if doing so eliminates or significantly reduces a
measurement or recognition inconsistency that would
arise from measuring assets or liabilities, or recognising
the gains and losses on them, on different bases.
e) Where the fair value option is used for financial
liabilities the change in fair value is to be accounted for
as follows:
•
the change attributable to changes in credit risk are
presented in Other Comprehensive Income (OCI)
the remaining change is presented in profit or loss.
•
If this approach creates or enlarges an accounting
mismatch in the profit or loss, the effect of the changes
in credit risk are also presented in profit or loss.
Otherwise, the following requirements have generally
been carried forward unchanged from AASB 139
into AASB 9:
•
classification and measurement of financial
liabilities; and
28 MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
MINOTAUR
EXPLORATION
•
derecognition requirements for financial assets
and liabilities.
AASB 9 requirements regarding hedge accounting
represent a substantial overhaul of hedge accounting that
enable entities to better reflect their risk management
activities in the financial statements.
Furthermore, AASB 9 introduces a new impairment model
based on expected credit losses. This model makes
use of more forward-looking information and applies to
all financial instruments that are subject to impairment
accounting.
The Group is yet to undertake a detailed assessment of
the impact of AASB 9. However, based on the Group’s
preliminary assessment, the Standard is not expected to
have a material impact on the transactions and balances
recognised in the financial statements when it is first
adopted for the year ending 30 June 2019.
AASB 1057 Application of Australian
Accounting Standards
In May 2015, the AASB decided to revise Australian
Accounting Standards that incorporate IFRSs to minimise
Australian-specific wording even further. The AASB
noted that IFRSs do not contain application paragraphs
that identify the entities and financial reports to which
the Standards (and Interpretations) apply. As a result,
the AASB decided to move the application paragraphs
previously contained in each Australian Accounting
Standard (or Interpretation), unchanged, into a
new Standard AASB 1057 Application of Australian
Accounting Standards.
When this Standard is first adopted for the year ending
30 June 2017, there will be no impact on the financial
statements.
AASB 16 Leases
AASB 16:
•
replaces AASB 117 Leases and some lease-related
Interpretations
•
•
•
requires all leases to be accounted for ‘on-balance
sheet’ by lessees, other than short-term and low
value asset leases
provides new guidance on the application of
the definition of lease and on sale and lease back
accounting
largely retains the existing lessor accounting
requirements in AASB 117
requires new and different disclosures about leases.
•
The entity is yet to undertake a detailed assessment of
the impact of AASB 16. However, based on the entity’s
preliminary assessment, the Standard is not expected to
have a material impact on the transactions and balances
recognised in the financial statements when it is first
adopted for the year ending 30 June 2020.
AASB 2014-4 Amendments to Australian Accounting
Standards – Clarification of Acceptable Methods of
Depreciation and Amortisation
The amendments to AASB 116 prohibit the use of a
revenue-based depreciation method for property, plant
and equipment. Additionally, the amendments provide
guidance in the application of the diminishing balance
method for property, plant and equipment.
The amendments to AASB 138 present a rebuttable
presumption that a revenue-based amortisation method
for intangible assets is inappropriate. This rebuttable
presumption can be overcome (i.e. a revenue-based
amortisation method might be appropriate) only in two
(2) limited circumstances:
1
The intangible asset is expressed as a measure of
revenue, for example when the predominant
limiting factor inherent in an intangible asset is the
achievement of a revenue threshold (for instance,
the right to operate a toll road could be based on a
fixed total amount of revenue to be generated from
cumulative tolls charged); or
2 When it can be demonstrated that revenue and
the consumption of the economic benefits of the
intangible asset are highly correlated.
When these amendments are first adopted for the year
ending 30 June 2017, there will be no material impact
on the transactions and balances recognised in the
financial statements.
AASB 2014-9 Amendments to Australian Accounting
Standards – Equity Method in Separate Financial
Statements
The amendments introduce the equity method of
accounting as one of the options to account for an
entity’s investments in subsidiaries, joint ventures and
associates in the entity’s separate financial statements.
When these amendments are first adopted for the year
ending 30 June 2017, there will be no material impact
on the financial statements.
AASB 2015 -1 Amendments to Australian Accounting
Standards – Annual Improvements to Australian
Accounting Standards 2012-2014 Cycle
These amendments arise from the issuance of Annual
Improvements to IFRSs 2012-2014 Cycle in September
2014 by the IASB. Among other improvements, the
amendments clarify that when an entity reclassifies an
asset (or disposal group) directly from being held for
sale to being held for distribution (or vice-versa), the
accounting guidance in paragraphs 27-29 of AASB 5
Non-current Assets Held for Sale and Discontinued
Operations does not apply. The amendments also state
that when an entity determines that the asset (or disposal
group) is no longer available for immediate distribution
or that the distribution is no longer highly probable, it
should cease held-for-distribution accounting and apply
the guidance in paragraphs 27-29 of AASB 5.
MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
29
Financial
REPORT
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2016
1 SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
u) Standards, amendments and interpretations to exist-
ing standards that are not yet effective and have not
been adopted early by the Group
AASB 2015 -1 Amendments to Australian Accounting
Standards – Annual Improvements to Australian
Accounting Standards 2012-2014 Cycle
When these amendments are first adopted for the year
ending 30 June 2017, there will be no material impact on
the financial statements.
AASB 2015-2 Amendments to Australian Accounting
Standards – Disclosure Initiative: Amendments
to AASB 101
The Standard makes amendments to AASB 101
Presentation of Financial Statements arising from the
IASB’s Disclosure Initiative project. The amendments:
•
clarify the materiality requirements in AASB 101,
including an emphasis on the potentially
detrimental effect of obscuring useful information
with immaterial information
•
•
•
•
clarify that AASB 101’s specified line items in
the statement(s) of profit or loss and other
comprehensive income and the statement of
financial position can be disaggregated
add requirements for how an entity should present
subtotals in the statement(s) of profit and loss and
other comprehensive income and the statement of
financial position
clarify that entities have flexibility as to the order in
which they present the notes, but also emphasise
that understandability and comparability should be
considered by an entity when deciding that order
remove potentially unhelpful guidance in AASB 101
for identifying a significant accounting policy.
When these amendments are first adopted for the year
ending 30 June 2017, there will be no material impact on
the financial statements.
AASB 2015-5 Amendments to Australian Accounting
Standards – Investment Entities: Applying the
Consolidation Exception
The narrow-scope amendments to AASB 10 Consolidated
Financial Statements, AASB 12 Disclosure of Interests in
Other Entities and AASB 128 Investments in Associates
and Joint Ventures introduce clarifications to the
requirements when accounting for investment entities.
The amendments also provide relief in particular
circumstances, which will reduce the costs of applying
the Standards.
When these amendments are first adopted for the year
ending 30 June 2017, there will be no material impact on
the financial statements.
AASB 2015-9 Amendments to Australian Accounting
Standards – Scope and Application Paragraphs
AASB 2015-9 inserts scope paragraphs into AASB 8
Operating Segments and AASB 133 Earnings per Share
in place of application paragraph text in AASB 1057.
In July and August 2015, the AASB reissued AASB 8,
AASB 133 and most of the Australian Accounting
Standards that incorporate IFRSs to make editorial
changes. The application paragraphs in the previous
versions of AASB 8 and AASB 133 covered scope
paragraphs that appear separately in the corresponding
IFRS 8 and IAS 33. In moving those application
paragraphs to AASB 1057 when AASB 8 and AASB 133
were reissued in August, the AASB inadvertently
deleted the scope details from AASB 8 and AASB 133.
This amending Standard puts the scope details into
those Standards, and removes the related text from
AASB 1057. There is no change to the requirements or
the applicability of AASB 8 and AASB 133.
When this Standard is first adopted for the year ending
30 June 2017, there will be no impact on the financial
statements.
AASB 2015-10 Amendments to Australian Accounting
Standards – Effective Date of Amendments to AASB 10
and AASB 128
This Standard defers the mandatory application date of
amendments to AASB 10 Consolidated Financial
Statements and AASB 128 Investments in Associates and
Joint Ventures that were originally made in AASB 2014-10
Amendments to Australian Accounting Standards – Sale or
Contribution of Assets between an Investor and its Associate
or Joint Venture so that the amendments are required to
be applied for annual reporting periods beginning on or
after 1 January 2018 instead of 1 January 2016.
The amendments have been deferred as the IASB is
planning to address them as part of its longer term
Equity Accounting project. However, early application
of the amendments is still permitted.
AASB 2016-2 Amendments to Australian Accounting
Standards – Disclosure Initiative: Amendments to
AASB 107
AASB 2016-2 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.
30 MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
2 PARENT INFORMATION
Assets
Current assets
Non-current assets
Liabilities
Current liabilities
Non-current liabilities
Equity
Issued capital
Reserves – Share option
Retained earnings
Financial performance
Loss for the year
Other comprehensive income
MINOTAUR
EXPLORATION
2016
$
2015
$
4,060,552
11,771,528
3,698,381
20,476,408
15,832,080
24,174,789
1,258,918
435,641
723,633
435,898
1,694,559
1,159,531
42,930,982
836,499
40,781,387
1,024,418
(29,629,960)
(18,790,547)
14,137,521
23,015,258
(10,624,654)
(5,359,032)
-
-
(10,624,654)
( 5,359,032)
Guarantees
Minotaur Exploration Ltd has not entered into any guarantees, in the current or previous
financial year, in relation to the debts of its subsidiaries.
Contingent Liabilities
Contingent liabilities of the parent entity have been incorporated into the Group information
in Note 24. The contingent liabilities of the parent are consistent with that of the Group.
Contractual Commitments
Contractual Commitments of the parent entity have been incorporated into the Group
information in Note 22. The contractual commitments of the parent are consistent with that
of the Group.
3 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 Managing Director) in
allocating resources and have concluded, due to the Group being solely focused on exploration
activity, at this time that there are no separately identifiable segments.
MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
31
Financial
REPORT
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2016
4 REVENUE AND EXPENSES
a) Revenue
Administration fees
Rent received
Bank interest received or receivable
b) Other income
Net gains on disposal of available-for-sale investments
Net gains on disposal of property, plant and equipment
Other income
c) Loss on disposal of foreign subsidiary
On 11 December 2014, the Group executed a Share Purchase Agreement for the sale of
all of the shares in its wholly-owned foreign subsidiary, Minotaur Atlantic Exploration Ltd
to Cogonov Inc in exchange for 200,000 common shares in Cogonov Inc valued at
$52,507 (CAD $50,000).
As at 30 June 2016, the fair value of shares held in Cogonov Inc $Nil (2015: $Nil).
The carrying amount of the net assets of Minotaur Atlantic Exploration Ltd recognised
as at the date of disposal (11 December 2014) and breakdown of consideration is
detailed as follows:
Current assets
Cash and cash equivalents
Trade and other receivables
Net assets as at date of disposal
Consideration received in shares
Gain on disposal
Translation of foreign subsidiary up to date of disposal
Write-off of foreign currency translation reserve upon disposal of foreign subsidiary
Net loss on disposal
Consolidated Group
2016
$
2015
$
246,899
68,220
108,352
423,471
20,725
25,001
6,156
51,882
260,086
24,917
57,381
342,384
449,511
17,169
-
466,680
$
398
118
516
52,507
51,991
(6,586)
(119,044)
(125,630)
(73,639)
32 MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
4 REVENUE AND EXPENSES
d) Expenses
Impairment of non-current assets
Impairment of exploration and evaluation assets
Impairment of available-for-sale financial assets
Total impairment of non-current assets
Project generation costs
Project generation costs
Total project generation costs
Depreciation of non-current assets
Buildings
Leasehold improvements
Plant and equipment
Motor vehicles
MINOTAUR
EXPLORATION
Consolidated Group
2016
$
2015
$
11,420,788
9,728
4,808,019
178,379
11,430,516
4,986,398
324,458
324,458
7,937
92,361
64,168
23,161
374,122
374,122
7,937
93,635
57,228
34,020
Total depreciation of non-current assets
187,627
192,820
Finance expenses
Finance costs
Interest applicable to hire-purchase contracts
Total finance expenses
e) Employee benefits expense
Wages, salaries, directors fees and other remuneration expenses
Superannuation expense
Transfer to/(from) annual leave provision
Transfer to/(from) long service leave provision
Employee share options expense
Transfer to exploration assets
f) Other expenses
Secretarial, professional and consultancy
Employee taxes and levies
Occupancy costs
Insurance costs
ASX/ASIC costs
Share register maintenance
Communication costs
Promotion and seminars
Audit fees
Other expenses
150
1,925
2,075
2,195,445
163,633
48,798
(17,662)
-
150
5,568
5,718
2,815,081
210,843
9,425
12,791
615,459
(2,076,508)
(2,876,201)
313,706
787,398
249,908
114,576
252,394
59,957
36,035
73,824
9,400
28,883
44,500
9,189
381,869
143,899
283,511
72,086
34,894
46,028
15,030
44,659
46,100
58,162
878,666
1,126,238
MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
33
Financial
REPORT
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2016
Consolidated Group
2016
$
2015
$
-
46,859
(624,460)
(577,601)
(12,327,984)
(3,698,395)
(824,235)
3,140,630
1,382,000
-
43,168
(598,227)
(555,059)
(7,070,980)
(2,121,294)
(1,332,030)
1,753,815
1,699,509
-
-
5
INCOME TAX BENEFIT
The major components of income tax benefit are:
Statement of comprehensive income
Current income tax
Current income tax charge
Tax portion of capital raising costs
Research and development tax incentive
Income tax benefit reported in the income statement
A reconciliation between tax expense and the product of accounting loss before
income tax multiplied by the Group’s applicable income tax rate is as follows:
Accounting (loss)/profit before income tax
At the Group’s statutory income tax rate of 30% (2015: 30%)
Immediate write-off of exploration expenditure
Expenditure not allowable for income tax purposes
Tax losses not recognised due to not meeting recognition criteria
The Group has tax losses arising in Australia of $83,949,507 (2015: $82,326,345) that
are available indefinitely for offset against future taxable profits of the companies in
which the losses arose. In addition, the Group has $8,195,267 (2015: $3,688,161)
capital losses available. These losses include $72,537,535 tax losses and $2,323,426
capital losses transferred to the tax consolidated group on the acquisition of Breakaway
Resources Ltd’s income tax consolidated group from 5 December 2013. The utilisation
of these losses acquired will be restricted to the available fraction of 0.287.
Tax consolidation
Minotaur Exploration Ltd and its 100% owned Australian resident subsidiaries
have formed a tax consolidated group with effect from 5 February 2005.
Breakaway Resources Ltd and its subsidiaries were included in the tax consolidated
group upon their acquisition on 5 December 2013. Minotaur Exploration Ltd is the
head entity of the tax consolidated group.
34 MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
MINOTAUR
EXPLORATION
6 EARNINGS PER SHARE
Basic earnings per share amounts are calculated by dividing net profit for the year attributable to ordinary equity holders of the
parent by the weighted average number of ordinary shares outstanding during the year.
Diluted earnings per share amounts are calculated by dividing the net profit attributable to ordinary equity holders of the parent
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:
Consolidated Group
2016
2015
Net loss attributable to ordinary equity holders of the parent
Weighted average number of ordinary shares for basic earnings per share
($11,082,042)
198,646,744
($6,472,394)
170,936,993
Effect of dilution
Share options
-
-
Weighted average number of ordinary shares adjusted for the effect of dilution
198,646,744
170,936,993
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 for 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.
7 CASH AND CASH EQUIVALENTS
Cash and cash equivalents
Cash at bank and on hand
Short-term deposits
Included in cash at bank is $177,200 relating to deposits to secure tenements
and rental tenancy and as such is restricted for this use.
Cash at bank earns interest at floating rates based on daily deposit rates.
Short-term deposits are made for varying periods between one month and six
months, depending on the immediate cash requirements of the Group, and
earn interest at the respective short-term deposit rate.
Reconciliation to Statement of Cash Flows
For the purposes of the Statement of Cash Flows, cash and cash equivalents
comprise the following at 30 June:
Cash at banks and on hand
Short-term deposits
Consolidated Group
2016
$
2015
$
3,487,034
984,729
1,684,251
2,479,728
4,471,763
4,163,979
3,487,034
984,729
1,684,251
2,479,728
4,471,763
4,163,979
MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
35
Financial
REPORT
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2016
7 CASH AND CASH EQUIVALENTS
Reconciliation of net loss after tax to net cash flows from operations
Net loss
Adjustments for non-cash items:
Depreciation
Impairment of non-current assets and project generation costs
loss on sale of foreign subsidiary
Net gain on disposal of property plant and equipment,
available-for-sale financial instruments and tenements
Share options expensed
Changes in assets and liabilities:
(Increase)/decrease in trade and other receivables
(Increase)/decrease in prepayments
(Decrease)/increase in trade and other payables
(Decrease)/increase in employee provisions
Net cash used in operating activities
8 TRADE AND OTHER RECEIVABLES
Trade receivables (i)
Information regarding the credit risk of current receivables is set out in Note 27.
i)
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 2015 and 2016 and no
receivables are past due at balance date.
9 OTHER CURRENT ASSETS
Prepayments
Accrued income
Other
10 HELD-FOR-SALE ASSETS
Opening balance
Additions through expenditure capitalised
Transfers (to)/from exploration and evaluation assets
Consolidated Group
2016
$
2015
$
(11,750,383)
(6,515,921)
187,627
11,754,974
-
(466,680)
-
2,331
13,256
(360,619)
31,136
(588,358)
192,820
5,360,519
73,639
(45,726)
615,459
(64,462)
4,114
(407,319)
22,216
(764,661)
34,431
34,431
35,330
35,330
56,535
5,940
16,371
78,846
69,791
76,613
20,480
166,884
4,758,158
58,720
(4,816,878)
-
-
4,758,158
-
4,758,158
During the year the marketing process undertaken for the sale of the Group’s gypsum project located in South Australia,
the Scotia and Leinster tenement groups, along with the Group’s nickel mining rights and obligations and other mineral royalty
rights across 19 tenements in the West Kambalda region of Western Australia, drew to a close. No sale transaction was entered
into as a result of this process. These assets have been reclassified to exploration and evaluation assets and their carrying value
impaired to $Nil as at 30 June 2016.
36 MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
MINOTAUR
EXPLORATION
Consolidated Group
2016
$
2015
$
839,083
208,146
(503,858)
103,328
(9,728)
636,971
1,127,693
-
(190,231)
80,000
(178,379)
839,083
508,723
508,723
-
-
-
-
508,723
508,723
7,937
7,937
-
15,874
492,849
-
7,937
-
7,937
500,786
611,218
611,218
-
-
-
-
611,218
611,218
244,373
92,361
-
336,734
274,484
150,738
93,635
-
244,373
366,845
11 AVAILABLE-FOR-SALE INVESTMENTS
At fair value – Shares, listed:
Opening balance
Revaluations
Disposals
Acquisitions
Impairments
12 PROPERTY, PLANT AND EQUIPMENT
Land and buildings
Cost
Opening balance
Additions
Disposals
Accumulated depreciation
Opening balance
Depreciation for the year
Disposals
Net book value of land and buildings
Property is measured at historical cost less accumulated depreciation.
Land and buildings with a net book value of $492,849 (2015: $500,786) is
offered as security against a mortgage of $392,000.
Leasehold improvements
Cost
Opening balance
Additions
Disposals
Accumulated depreciation
Opening balance
Depreciation for the year
Disposals
Net book value of leasehold improvements
MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
37
Financial
REPORT
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2016
12 PROPERTY, PLANT AND EQUIPMENT
Plant and equipment
Cost
Opening balance
Additions
Disposals
Accumulated depreciation
Opening balance
Depreciation for the year
Disposals
Net book value of plant and equipment
Kaolin pilot plant
Cost
Opening balance
Additions
Disposals
Accumulated depreciation
Opening balance
Depreciation for the year
Disposals
Net book value of Kaolin pilot plant
Motor vehicles
Cost
Opening balance
Additions
Disposals
Accumulated depreciation
Opening balance
Depreciation for the year
Disposals
Net book value of motor vehicles
Consolidated Group
2016
$
2015
$
411,799
11,006
(23,879)
398,926
262,012
64,168
(23,879)
302,301
96,625
455,536
92,909
(136,646)
411,799
341,430
57,228
(136,646)
262,012
149,787
283,765
283,765
-
-
-
-
283,765
283,765
244,700
15,626
-
260,326
23,439
245,950
-
(58,697)
187,253
141,276
23,161
(37,503)
126,934
60,319
218,082
26,618
-
244,700
39,065
202,232
43,718
-
245,950
107,256
34,020
-
141,276
104,674
Total net book value of property, plant and equipment
947,716
1,161,157
Motor vehicles with a net book value of $25,737 (2015: $34,316) is
offered as security against hire purchase contracts of $17,507.
38 MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
MINOTAUR
EXPLORATION
Consolidated Group
2016
$
2015
$
6,322,354
3,894,698
1,740,419
12,019,323
10,217,052
13,759,742
13 EXPLORATION AND EVALUATION ASSETS
Exploration, evaluation and development costs carried
forward in respect of mining areas of interest
Exploration and evaluation phase – Joint Operations
Exploration and evaluation phase – Other
The ultimate recoupment of costs carried forward for exploration and evaluation phases is dependent on the successful
development and commercial exploitation or sale of the respective mining areas.
Capitalised tenement expenditure movement reconciliation –
Consolidated Group:
Balance at beginning of year
Additions through expenditure capitalised
Reductions through joint operation contributions
Write-off of tenements relinquished
Transfers from held-for-sale assets
Transfers between categories
Exploration
Joint Operations
$
Exploration
Other
$
1,740,419
2,839,867
(2,046,544)
(1,525,696)
-
5,314,308
12,019,323
2,267,897
-
(9,895,092)
4,816,878
(5,314,308)
Total
$
13,759,742
5,107,764
(2,046,544)
(11,420,788)
4,816,878
-
Balance at end of year
6,322,354
3,894,698
10,217,052
The impairment expense of $11,420,788 arose from a review of the Group’s capitalised costs and the relevant tenements to which
the costs related.
During the year the marketing process undertaken for the sale of the Group’s gypsum project located in South Australia, the Scotia
and Leinster tenement groups, along with the Group’s nickel mining rights and obligations and other mineral royalty rights across
19 tenements in the West Kambalda region of Western Australia, drew to a close. No sale transaction was entered into as a result
of this process. These assets have been reclassified to exploration and evaluation assets from held-for-sale assets and their carrying
value impaired to $Nil as at 30 June 2016.
Deterioration of market conditions also triggered impairment relating to the Group’s non-core assets, namely its industrial minerals
assets located in South Australia.
14 SHARE-BASED PAYMENTS
Employee Share Option Plan
The Company has established the Minotaur Exploration 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 Group, 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.
MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
39
Financial
REPORT
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2016
14 SHARE-BASED PAYMENTS
Employee Share Option Plan
•
If, prior to the expiry date of options, a person ceases to be an employee of a Group 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 1 month 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 cannot 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. 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. The expense recognised in the Statement
of profit or loss and other comprehensive income in relation to share-based payments is disclosed in Note 4 (e).
The following table illustrates the number and weighted average exercise prices (WAEP) and movements in share options under
the Company’s Employee Share Option Plan issued during the year:
2016
Number
2016
WAEP
Outstanding at the beginning of the year
8,125,000
0.20
Granted during the year
Forfeited during the year
Expired or lapsed during the year
Outstanding at the end of the year
Exercisable at the end of the year
-
-
-
8,125,000
8,125,000
-
-
-
0.20
0.20
2015
Number
3,660,000
5,505,000
(1,040,000)
-
8,125,000
8,125,000
2015
WAEP
0.23
0.19
0.23
-
0.20
0.20
The outstanding balance as at 30 June 2016 is represented by:
•
•
•
A total of 1,045,000 options exercisable at any time until 29 September 2016 with an exercise price of $0.21.
A total of 1,575,000 options exercisable at any time until 3 July 2017 with an exercise price of $0.25.
A total of 5,505,000 options exercisable at any time until 21 November 2019 with an exercise price of $0.19.
The weighted average remaining contractual life for the share options outstanding as at 30 June 2016 is 2.53 years (2015: 3.53 years).
The range of exercise prices for options outstanding at the end of the year was $0.19 - $0.25 (2015: $0.19 - $0.25).
The weighted average fair value of options granted during the year was $Nil (2015: $615,459).
Consolidated Group
2016
$
2015
$
450,687
6,995
-
608,312
232,605
1,298,599
392,045
21,718
362,253
-
159,448
935,464
15 TRADE AND OTHER PAYABLES
Trade payables (i)
Net GST and PAYG Payable
Funds received from GFR (iii)
Joint operation income received in advance
Other payables (ii)
i)
Trade payables are non-interest bearing and are normally settled on 30-day terms.
ii) Other payables are non-interest bearing and are normally settled within 30 – 90 days.
iii) Funds received from GFR are to be converted into equity in Minotaur Gold Solutions Ltd,
Information regarding the credit risk of current payables is set out in Note 27.
40 MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
MINOTAUR
EXPLORATION
Consolidated Group
2016
$
2015
$
14,933
14,933
2,574
392,000
394,574
112,213
48,798
161,011
371,411
(32,338)
339,073
500,084
26,391
14,676
41,067
14,089
14,089
17,507
392,000
409,507
102,788
9,425
112,213
352,552
18,859
371,411
483,624
32,459
(6,068)
26,391
16 BORROWINGS
Current
Hire purchase contracts
Non-current
Hire purchase contracts
Bank borrowings
Bank borrowings reflect a secured 5 year interest only loan.
There are no annual renewal or review terms.
17 PROVISIONS
Current
Annual leave provision
Balance at 1 July
Net increase in provision
Closing Balance 30 June
Long Service Leave
Balance at 1 July
Net(decrese)/increase in provision
Closing Balance 30 June
Non-current
Long Service Leave
Balance at 1 July
Net increase/(decrease) in provision
Closing Balance 30 June
MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
41
Financial
REPORT
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2016
Consolidated Group
2016
$
2015
$
18 ISSUED CAPITAL
212,344,322 fully paid ordinary shares (2015: 180,074,588)
42,930,982
40,781,387
2016
2015
Number
$
Number
$
Balance at beginning of financial year
Issue of shares through Share Placement
Rights Issue and Share Purchase Plan
Issue of shares through exercise of options
Transaction costs on shares issued
180,074,588
40,781,387
152,165,042
36,874,859
32,267,760
2,258,744
27,909,546
3,991,000
1,974
-
188
(109,337)
-
-
-
(84,472)
Balance at end of financial year
212,344,322
42,930,982
180,074,588
40,781,387
Effective 1 July 1998, the Corporations legislation abolished the concepts of authorised capital and par value shares.
Accordingly, the Parent does not have authorised capital nor par value in respect of its issued shares.
Fully paid ordinary shares carry one vote per share and carry the right to dividends (in the event such a dividend was declared).
19 RESERVES
Share option reserve (a)
Foreign currency translation reserve (b)
Available-for-sale revaluation reserve (c)
a) Share option reserve
Balance at beginning of financial year
Issue of options to employees and officers under Employee Share Option Plan
Transfer to retained earnings upon lapse of options
Balance at end of financial year
The share option reserve comprises the fair value of options issued to employees
under the Company’s Employee Share Option Plan and to directors of the Company.
b) Foreign currency translation reserve
Balance at beginning of financial year
Translation of foreign subsidiary
Write-off upon disposal of foreign subsidiary*
Balance at end of financial year
Consolidated Group
2016
$
2015
$
836,498
1,024,418
-
208,146
-
-
1,044,644
1,024,418
1,024,418
-
(187,920)
924,589
615,459
(515,630)
836,498
1,024,418
-
-
-
-
(125,630)
6,586
119,044
-
* On 11 December 2014, the Group executed a Share Purchase Agreement for the sale of all of the shares in its wholly owned foreign subsidiary,
Minotaur Atlantic Exploration Ltd. Refer to note 4(c) for further details.
42 MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
MINOTAUR
EXPLORATION
Consolidated Group
2016
$
2015
$
-
208,146
208,146
-
-
-
(18,975,019)
(11,082,042)
187,920
26,840
(13,018,255)
(6,472,394)
515,630
-
(29,842,301)
(18,975,019)
184,472
514,906
(26,840)
(668,341)
4,197
227,999
-
-
(43,527)
184,472
346,967
700,196
343,821
1,036,287
1,047,163
1,380,108
15,558
2,594
18,152
(645)
17,507
15,558
18,152
33,710
(2,114)
31,596
19 RESERVES
c) Available-for-sale revaluation reserve
Balance at beginning of financial year
Revaluation increment
Balance at end of financial year
20 ACCUMULATED LOSSES
Balance at beginning of financial year
Net loss attributable to members of the parent entity
Transfer from share option reserve – lapsed options
Adjustment upon increase in ownership percentage in controlled entity
Balance at end of financial year
21 NON-CONTROLLING INTEREST
Balance at beginning of financial year
Conversion of non-controlling interest loan to equity in controlled entity
Adjustment upon increase in ownership percentage in controlled entity
Net loss attributable to non-controlling interest
22 COMMITMENTS FOR EXPENDITURE
Operating leases
Not longer than 1 year
Longer than 1 year and not longer than 5 years
Hire purchase commitments
Not longer than 1 year
Longer than 1 year and not longer than 5 years
Less: future finance charges
Terms of lease arrangements
The Group has in place an operating lease for its principal place of business. The lease expires on 9 July 2019 and includes an
escalation clause linked to CPI.
Future minimum lease payments under hire purchase contracts together with the present value of the net minimum lease
payments are listed in the above table.
Exploration leases
In order to maintain current rights of tenure to exploration tenements the Group will be required to outlay in the year ending
30 June 2017 amounts of approximately $5.5 million in respect of tenement lease rentals and to meet minimum expenditure
requirements. It is expected that of this minimum expenditure requirement, $3.5 million will be funded by Minotaur’s current and
potential joint venture partners. The net obligation to the Group is expected to be fulfilled in the normal course of operations.
MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
43
Financial
REPORT
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2016
23 AUDITOR’S REMUNERATION
Audit or review of the financial report
Taxation compliance
Total auditor’s remuneration
Consolidated Group
2016
$
44,500
1,100
45,600
2015
$
46,100
1,000
47,100
24 CONTINGENT LIABILITIES AND CONTINGENT ASSETS
At the date of signing this report, the Group is not aware of any Contingent Asset or Liability that should be disclosed in
accordance with AASB 137. It is however noted that the Company has established various bank guarantees in place with a
number of State Governments in Australia, totalling $177,200 at 30 June 2016 (2015: $272,200). These guarantees are designed
to act as collateral over the tenements which Minotaur explores on and can be used by the relevant Government authorities in
the event that Minotaur does not sufficiently rehabilitate the land it explores on. It is noted that the bank guarantees have, as
at the date of signing this report, never been utilised by any State Government.
25 CONTROLLED ENTITIES
Parent entity
Minotaur Exploration Limited (i)
Subsidiaries
Minotaur Operations Pty Ltd (ii)
Minotaur Resources Investments Pty Ltd (ii)
Minotaur Industrial Minerals Pty Ltd (ii)
Great Southern Kaolin Pty Ltd (ii)
Breakaway Resources Pty Ltd (ii)
Scotia Nickel Pty Ltd (ii)
Altia Resources Pty Ltd (ii)
Levuka Resources Pty Ltd (ii)
BMV Properties Pty Ltd (ii)
Minotaur Gold Solutions Limited
Country of
incorporation
2016
%
2015
%
Ownership interest
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
100
100
100
100
100
100
100
100
100
73
100
100
100
100
100
100
100
100
100
50
i) Minotaur Exploration Limited is the head entity within the tax consolidated Group.
ii)
These companies are members of the tax consolidated Group.
44 MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
MINOTAUR
EXPLORATION
26 FINANCIAL ASSETS AND LIABILITIES
Note 1(f ) provides a description of each category
of financial assets and financial liabilities and the
related accounting policies. The carrying amounts
of financial assets and financial liabilities in each
category are as follows:
30 June 2016
Financial assets
Cash and cash equivalents
Trade and other receivables
Available-for-sale assets
Financial liabilities
Trade and other payables
Current borrowings
Non-current borrowings
30 June 2015
Financial assets
Cash and cash equivalents
Trade and other receivables
Available-for-sale assets
Financial liabilities
Trade and other payables
Current borrowings
Non-current borrowings
Note
AFS
$
Cash
$
Loans and
Receivables
$
Total
$
(Carried at fair value) (Carried at amortised cost)
7
8
-
-
11, 26(a)
636,971
4,471,763
-
4,471,763
-
-
34,431
-
34,431
636,971
636,971
4,471,763
34,431
5,143,165
Note
15
16, 26(b)
16, 26(b)
Payables
$
Borrowings
$
Total
$
(Carried at amortised cost)
1,298,599
-
1,298,599
-
-
14,933
394,574
14,933
394,574
1,298,599
409,507
1,708,106
Note
AFS
$
Cash
$
Loans and
Receivables
$
Total
$
(Carried at fair value) (Carried at amortised cost)
7
8
-
-
11, 26(a)
839,083
4,163,979
-
4,163,979
-
-
35,330
-
35,330
839,083
839,083
4,163,979
35,330
5,038,392
Note
15
16, 26(b)
16, 26(b)
Payables
$
Borrowings
$
Total
$
(Carried at amortised cost)
935,464
-
-
-
14,089
409,507
935,464
14,089
409,507
935,464
423,596
1,359,060
A description of the Group’s financial instrument risks, including risk management objectives and policies is given in Note 27.
The methods used to measure financial assets and liabilities reported at fair value are described in Note 28.
MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
45
Financial
REPORT
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2016
26 FINANCIAL ASSETS AND LIABILITIES
26(a) AFS financial assets
The details and carrying amounts of AFS financial assets are as follows:
Listed securities
The listed securities are denominated in AUD and are publically traded in Australia.
26(b) Borrowings
Borrowings include the financial liabilities:
Consolidated Group
2016
$
2015
$
636,971
636,971
839,083
839,083
Current Non-Current
2016
$
2015
$
2016
$
2015
$
14,933
-
14,933
14,089
-
14,089
2,574
392,000
394,574
17,507
392,000
409,507
Financial liabilities
Fair value
Finance lease liabilities
Bank borrowings
All borrowings are denominated in AUD.
Borrowings at amortised cost
Bank borrowings are secured by land and buildings owned by the Group (see Note 12). Current interest rates are variable
and average 4.69% (2015: 4.81%). The carrying amount of bank borrowings is considered to be a reasonable approximation
of the fair value.
Other financial instruments
The carrying amount of the following financial assets and liabilities is considered to be a reasonable approximation of the
fair value:
•
•
•
Trade and other receivables;
Cash and cash equivalents; and
Trade and other payables
27 FINANCIAL RISK MANAGEMENT
Credit risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while
maximising the return to stakeholders. The capital structure of the Group 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 18, 19, 20 respectively. Proceeds from share issues are used to maintain and expand the Group’s exploration activities
and fund operating costs.
46 MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
MINOTAUR
EXPLORATION
Consolidated Group
2016
$
2015
$
4,471,763
34,431
636,971
1,298,599
409,507
4,163,979
35,330
839,083
935,463
425,710
27 FINANCIAL RISK MANAGEMENT
Financial assets
Cash and cash equivalents
Trade receivables
Available-for-sale assets
Financial liabilities
Payables
Borrowings
Credit risk
Credit risk management Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting
in financial loss to the Group. The Group has adopted a policy of only dealing with creditworthy counterparties as a means of
mitigating the risk of financial loss from activities.
The Group does not have any significant credit risk exposure to any single counterparty or any Group of counterparties having
similar characteristics. The credit risk on liquid funds 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
Group’s maximum exposure to credit risk.
Interest rate risk
The tables listed below detail the Group’s interest bearing assets, consisting solely of cash on hand and on short term deposit
(with all maturities less than one year in duration).
Consolidated
2016
Variable interest rate
2015
Variable interest rate
Weighted average
effective interest rate
Less than
1 year
%
$
1.66
4,471,763
2.39
4,163,979
At reporting date, if interest rates had been 50 basis points higher or lower and all other variables were held constant, the Group’s:
•
net loss would increase or decrease by $21,589 which is mainly attributable to the Group’s exposure to interest rates on
its variable bank deposits.
Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the Board, which has built an appropriate liquidity risk
management framework for the management of the Group’s short, medium and long-term funding and liquidity management
requirements. The Group manages liquidity risk by maintaining adequate reserves.
MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
47
Financial
REPORT
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2016
27 FINANCIAL RISK MANAGEMENT
Liquidity and interest risk tables
The following table details the Company’s and the Group’s remaining contractual maturity for its non-derivative financial liabilities.
The table has been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the
Group can be required to pay. The table includes both interest and principal cash flows.
Weighted average
effective interest rate
Less than
1 year
Longer than 1 year
and not longer
than 5 years
%
$
$
Consolidated
2016
Interest bearing
Non-interest bearing
2015
Interest bearing
Non-interest bearing
4.75
-
4.99
-
14,933
1,298,599
394,574
-
14,089
935,463
409,507
-
Available-for-sale financial instrument risk management
Ultimate responsibility for the Group’s investments in available-for-sale financial instruments rests with the Board. The Board
actively manages its investments by reviewing the market value of the Group’s portfolio at each board meeting and making
appropriate investment decisions.
28 FAIR VALUE MEASUREMENT
Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three Levels of
a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:
•
•
•
level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly
level 3: unobservable inputs for the asset or liability
The following table shows the Levels within the hierarchy of financial assets and liabilities measured at fair value on a recurring
basis at 30 June 2016 and 30 June 2015:
Level 1
$
Level 2
$
Level 3
$
Total
$
30 June 2016
Financial assets at fair value
Available-for-sale investments
Listed securities
30 June 2015
Financial assets at fair value
Available-for-sale investments
Listed securities
636,971
636,971
839,083
839,083
-
-
-
-
-
-
-
-
636,971
636,971
839,083
839,083
There were no transfers between Level 1 and Level 2 in 2016 or 2015.
Included within Level 1 of the hierarchy are listed investments. The fair values of these financial assets have been based on the
closing quoted bid prices at the end of the reporting period, excluding transaction costs.
48 MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
MINOTAUR
EXPLORATION
29 RELATED PARTY DISCLOSURE AND KEY MANAGEMENT PERSONNEL REMUNERATION
Transactions with key management personnel
The following individuals are classified as key management personnel in accordance with AASB 124 ’Related Party Disclosures’:
Mr Derek Carter, Chairman
Mr Andrew Woskett, Managing Director
Dr Antonio Belperio, Executive Director
Mr Richard Bonython, Non-Executive Director (resigned 25 November 2015)
Dr Roger Higgins, Non-Executive Director (appointed 1 July 2016)
Mr Donald Stephens, Company Secretary (resigned 1 July 2016)
Mr Varis Lidums, Commercial Manager (Company Secretary – appointed 1 July 2016)
Mr Glen Little, Exploration Manager
Key management personnel remuneration includes the following expenses:
Salaries including bonuses
Total short-term employee benefits
Superannuation
Total post-employment benefits
Share-based payments
Total share-based payments
Total remuneration
Transactions with associates
2016
$
987,303
987,303
53,431
53,431
-
-
2015
$
1,259,644
1,259,644
69,079
69,079
162,110
162,110
1,040,734
1,490,833
Throughout the year no transactions took place between Minotaur Exploration Limited and any associates (2015: $Nil).
In addition, no amounts were owed by any associates at the end of the year (2015: $Nil).
Director and key management personnel related entities
Throughout the year $53,078 (2015: $51,680) (inclusive of GST) was paid to a related entity of Mr Antonio Belperio under a
commercial lease agreement for the use of warehouse space located at Magill, South Australia.
Donald Stephens, the Company Secretary, is a consultant with HLB Mann Judd (SA) Pty Ltd. HLB Mann Judd (SA) Pty Ltd received
professional fees for accounting, taxation and secretarial services provided during the year amounting to $74,824 (2015: $67,553)
(inclusive of GST).
Throughout the year, no other transactions took place between Minotaur Exploration Limited and any director or key
management personnel related entities.
Wholly-owned group transactions
The entities comprising the wholly owned Group and ownership interests in these controlled entities are set out in Note 25.
Transactions between Minotaur Exploration Limited and other entities in the wholly-owned Group during the year consisted
of loans advanced by Minotaur Exploration Limited to fund exploration activities.
30 POST- REPORTING DATE EVENTS
No matter or circumstance has arisen since 30 June 2016 that has significantly affected the Group’s operations, results or state
of affairs, or may do so in the future.
MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
49
Financial
REPORT
Directors’ Declaration FOR THE YEAR ENDED 30 JUNE 2016
The Directors of the Company declare that:
1
the consolidated financial statements and notes, as set out on pages 18 to 49, are in accordance with the
Corporations Act 2001 and:
a)
comply with 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 as at 30 June 2016 and of the performance for the
year ended on that date of the Company and consolidated Group;
2
the Managing Director and Company Secretary have each declared that:
a)
the financial records of the Company for the financial year have been properly maintained in
accordance with s 286 of the Corporations Act 2001;
b)
the financial statements and notes for the financial year comply with Accounting Standards; and
c)
the financial statements and notes for the financial year give a true and fair view; and
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.
Derek Carter
Chairman
Dated this 25th day of August 2016
50 MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
Independent Auditor’s
REPORT
to the Members of Minotaur Exploration Limited
MINOTAUR
EXPLORATION
Level 1,
67 Greenhill Rd
Wayville SA 5034
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 MINOTAUR EXPLORATION LIMITED
Report on the financial report
We have audited the accompanying financial report of Minotaur Exploration Limited (the “Company”), which
comprises the consolidated statement of financial position as at 30 June 2016, 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, notes comprising a summary of significant accounting policies and other
explanatory information and the directors’ declaration of the consolidated entity comprising the Company and the
entities it controlled at the year’s end or from time to time during the financial year.
Directors’ responsibility for the financial report
The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001. The Directors’
responsibility also includes 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. The Directors also state, in the notes to the financial report, in accordance with Accounting Standard
AASB 101 Presentation of Financial Statements, the financial statements comply with International Financial
Reporting Standards.
Auditor’s responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit
in accordance with Australian Auditing Standards. Those standards require us to comply with relevant ethical
requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance
whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the
risks of material misstatement of the financial report, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation
of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal
control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness
of accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
51
Independent Auditor’s
REPORT
to the Members of Minotaur Exploration Limited
Independence
In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.
Auditor’s opinion
In our opinion:
a
the financial report of Minotaur Exploration Limited is in accordance with the Corporations Act 2001, including:
i) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2016 and of its
performance for the year ended on that date; and
ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; and
b the financial report also complies with International Financial Reporting Standards as disclosed in the notes
to the financial statements.
Report on the remuneration report
We have audited the remuneration report included in directors’ report for the year ended 30 June 2016.
The Directors of the Company are responsible for the preparation and presentation of the remuneration report in
accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
remuneration report, based on our audit conducted in accordance with Australian Auditing Standards.
Auditor’s opinion on the remuneration report
In our opinion, the remuneration report of Minotaur Exploration Limited for the year ended 30 June 2016,
complies with section 300A of the Corporations Act 2001.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
I S Kemp
Partner – Audit & Assurance
Adelaide, 25 August 2016
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. Liability is limited in those States where a current scheme applies.
52 MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
ASX Additional
INFORMATION
MINOTAUR
EXPLORATION
Interests in Mining Tenements as at 30 September 2016
Lease ID
Lease Name
State Holding Company
Border Joint Venture
EL5831
EL5502
EL4844
EL5079
EL5437
Bonython Hill
Collins Tank
Mingary
Mutooroo
Woodville Dam
SA
SA
SA
SA
SA
Minotaur Operations
Minotaur Operations
Minotaur Operations
Minotaur Operations
Minotaur Operations
Cloncurry (Regional)
EPM8608
EPM16975
EPM19530
EPM18861
MDL432
EPM18068
EPM19412
EPMA26233
EPM25889
Bendigo Park
Cattle Creek
Corella
Donaldson Well
Eloise
Gidyea Bore
Middle Creek
Route 66
Sedan
Corkwood Project
EPM15633
EPM13380
EPM13376
Beefwood
Corkwood
Pelican Dam
QLD Minotaur Operations
QLD Minotaur Operations
QLD Minotaur Operations
QLD Minotaur Operations
QLD
QLD Minotaur Operations
QLD Minotaur Operations
QLD Minotaur Operations
QLD Minotaur Operations
Levuka Resources
QLD
QLD
QLD
Red Metal Limited
Red Metal Limited
Red Metal Limited
Eloise Joint Venture (OZ Minerals)
MDL431§
Eloise
QLD
Levuka Resources
EPM19500
EPM18442
EPM25389
EPM17838§
EPM25237
EPM25801
EPM18624
EPM25238
Eloise North
Eloise Northwest
Fullarton
Levuka
Levuka
Masai
Oorindi Park
Saxby
Osborne Joint Venture (JOGMEC)
EPM18575
EPM18720
EPM25197
EPM25886
EPM25960
EPM19066
EPM18574
EPMA26230
EPM18576
EPM18571
EPM25888
EPM25699
EPM25856
EPM19061
Carbo Creek
Cuckadoo
Hamilton
Hennes Bore
Jubilee
Lucia
Momedah Creek
Nithsdale
Pathungra
Sandy Creek
Tripod Tank
Warburton Creek
Wilgunya
Windsor
Levuka Resources
QLD Minotaur Operations
QLD
QLD Minotaur Operations
QLD
Levuka Resources
Levuka Resources
QLD Minotaur Operations
QLD
QLD Minotaur Operations
QLD Minotaur Operations
QLD Minotaur Operations
QLD Minotaur Operations
QLD Minotaur Operations
QLD Minotaur Operations
QLD Minotaur Operations
QLD Minotaur Operations
QLD Minotaur Operations
QLD Minotaur Operations
QLD Minotaur Operations
QLD Minotaur Operations
QLD Minotaur Operations
QLD Minotaur Operations
QLD Minotaur Operations
QLD Minotaur Operations
Minotaur Equity
Equity Earned % JV Partner
Sumitomo Metal Mining Oceania 53%
Sumitomo Metal Mining Oceania 53%
Sumitomo Metal Mining Oceania 53%
Sumitomo Metal Mining Oceania 53%
Sumitomo Metal Mining Oceania 53%
Sandfire Resources 60%
Red Metal Ltd
Red Metal Ltd
Red Metal Ltd
Sandfire Resources has 60% equity in
portion of the tenement
Sandfire Resources has 60% equity in
portion of the tenement
Sandfire Resources 60%
47
47
47
47
47
100
100
100
100
40
100
100
0
100
0
0
0
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
0
100
100
100
100
100
100
MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
53
Lease ID
Lease Name
State Holding Company
Minotaur Equity
Equity Earned % JV Partner
Stavely Minerals
Stavely Minerals
Victoria Copper Project
EL5403
EL5450
Lexington
Roxborough
Industrial Minerals Project
ELA2016/039
EL5095
ELA5502
ELA2016/067
ELA2016/096
EL5395
EL5308
ELA2016/037
ELA2016/095
EL5398
EL4575
EL5016
EL5787
Acraman
Camel Lake
Casterton South
Coober Pedy
Giddina Creek
Kyancutta
Mount Hall
Narlaby
Oolgelima
Sceales
Tootla
Whichelby
Yanerbie
Gawler Ranges Project
EL5711
EL5743
EL5709
EL4776
EL5708
EL5232
EL5647
EL5710
Scotia Project
E 29/00661
M 24/00336
M 29/00245
M 29/00246
P 29/02121
Birthday Creek
Fairview
Glyde
Mt Double
Nuckulla
Peltabinna Hill
Pondanna
Waurea
Goongarrie 3
Goongarrie 6
Goongarrie 13
Goongarrie 14
Goongarrie 12
Leinster Project
E 36/235
E 37/909
M 36/475
M 36/548
M 37/877
M 37/7370
M 37/7371
Leinster 9
Leinster 2
Leinster 10
Leinster 15
Leinster 16
Leinster 5
Leinster 6
VIC
VIC
SA
SA
VIC
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
Minotaur Operations
Minotaur Operations
Minotaur Operations
Minotaur Operations
Minotaur Industrial Minerals
BMV Properties
BMV Properties
Minotaur Operations
Minotaur Operations
Minotaur Operations
BMV Properties
Minotaur Operations
Great Southern Kaolin
Minotaur Operations
Minotaur Operations
Minotaur Operations
Minotaur Operations
Minotaur Operations
Minotaur Operations
Minotaur Operations
Minotaur Operations
Minotaur Operations
Minotaur Operations
Minotaur Gold Solutions
Minotaur Gold Solutions
Minotaur Gold Solutions
Minotaur Gold Solutions
Minotaur Gold Solutions
Altia Resources
Scotia Nickel
Altia Resources
Altia Resources
Altia Resources
Scotia Nickel
Scotia Nickel
100
100
0
100
0
0
0
100
100
0
0
100
100
100
100
100
100
100
100
100
100
100
100
99
99
99
99
99
100
100
100
100
100
100
100
54 MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
MINOTAUR
EXPLORATION
Lease ID
Lease Name
State Holding Company
Minotaur Equity
Equity Earned %
JV Partner
Perilya Ltd 90%, MEP 10% free carried
to BFS completion
Perilya Ltd 90%, MEP 10% free carried
to BFS completion
Perilya Ltd 90%, MEP 10% free carried
to BFS completion
Perilya Ltd 90%, MEP 10% free carried
to BFS completion
Peninsula Resources
Birla Mt Gordon
Other Projects
EL5542
Blinman
EL5117
Ediacara
ML4386
Third Plain
EL5723
Wilkawillina
EL4961*
EPM17061
M15 1828
Moonta
Mt Osprey
Spargos Reward
M15 395
M15 703
L15 128
L15 255
E15 967
E15 968
P15 5860
West Kambalda
West Kambalda
West Kambalda
West Kambalda
West Kambalda
West Kambalda
West Kambalda
SA
SA
SA
SA
SA
QLD
WA
WA
WA
WA
WA
WA
WA
WA
Perilya
Perilya
Perilya
Perilya
Peninsula Resources
Birla Mt Gordon
Minex Australia,
Corona Minerals
Tychean Resources
Tychean Resources
Tychean Resources
Tychean Resources
Tychean Resources
Tychean Resources
Tychean Resources
# Diluting interest
* = Portion only of tenement
Ni 100% = 100% interest in Nickel rights only
Ni 100% +1.5% NSR = 100% interest in Nickel rights and 1.5% NSR all other minerals
§
Sandfire Resources earning up to 80% interest in portion of the tenement
10
10
10
10
10
#22.9
Ni 100%
Ni 100% +1.5% NSR
Ni 100% +1.5% NSR
Ni 100% +1.5% NSR
Ni 100% +1.5% NSR
Ni 100% +1.5% NSR
Ni 100% +1.5% NSR
Ni 100% +1.5% NSR
MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
55
INFORMATION
MINOTAUR
EXPLORATION
Shareholdings AS AT 23 SEPTEMBER 2016
Additional information required by the Australian Securities Exchange Ltd and not shown elsewhere in this report is as
follows. The information is current as at 23 September 2016.
Distribution of equity securities
Ordinary share capital
212,348,596 fully paid ordinary shares are held by 2,098 individual shareholders.
All issued ordinary shares carry one (1) vote per share and carry the rights to dividend.
Options
17,975,797 listed options are held by 474 option holders.
26,979,048 unlisted options are held by 33 option holders.
The number of shareholders, by size of holding, in each class are:
Fully paid ordinary shares
Listed Options
Unlisted Options
131
140
219
1,231
377
2,098
293
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
Substantial shareholders
Ordinary shareholders
Merrill Lynch (Australia) Nominees Pty Ltd
Yarraandoo Pty Ltd
TWENTY LARGEST HOLDERS OF QUOTED EQUITY SECURITIES
Merrill Lynch (Australia) Nominees Pty Ltd
Yarraandoo Pty Ltd
OZ Minerals Limited
FMR Investments Pty Limited
Sandfire Resources NL
Miningnut Pty Ltd
Dorica Nominees Pty Ltd
Mr Peter Francis Hasenkam
Mr Nicholas James Carter + Mrs Susan Mary Carter
Mr Stephen Burns + Mrs Kellie Burns
Mr David Norman Deitch
Mr Robert Gemelli
Romsup Pty Ltd
Mr Nicholas Carter
Mr Derek Northleigh Carter + Mrs Carlsa Joyce Carter
Premier Logistics Services Pty Ltd
Howarth Super Pty Ltd
Chetan Enterprises Pty Ltd
MBM Corporation Pty Ltd
Mr Robert William Moses
144
150
56
95
29
474
-
-
-
-
7
26
33
-
Fully paid
Number
Percentage
27,834,324
13,256,726
13.11%
6.24%
Fully Paid Ordinary Shares
Number
Percentage
27,834,324
13,256,726
8,041,670
2,872,303
2,608,695
2,200,000
1,806,896
1,754,896
1,688,396
1,600,000
1,536,600
1,510,572
1,457,064
1,185,095
1,073,874
1,070,147
1,030,000
1,000,000
1,000,000
1,000,000
13.11%
6.24%
3.79%
1.35%
1.23%
1.04%
0.85%
0.83%
0.80%
0.75%
0.72%
0.71%
0.69%
0.56%
0.51%
0.50%
0.49%
0.47%
0.47%
0.47%
75,527,258
35.57%
56 MINOTAUR EXPLORATION LIMITED ANNUAL REPORT 2016
MINOTAUR
EXPLORATION
www.minotaurexploration.com.au