More annual reports from Minotaur Exploration:
2020 ReportMINOTAUR
EXPLORATION
Annual Report
2017
BANKERS
National Australia Bank
22-28 King William Street
ADELAIDE SA 5000
AUDITORS
Grant Thornton Audit Pty Ltd
Level 3, 170 Frome Street
ADELAIDE SA 5000
www.minotaurexploration.com.au
CORPORATE DIRECTORY
MINOTAUR EXPLORATION LIMITED
ACN 108 483 601
ASX CODE: MEP
DIRECTORS
Dr Antonio Belperio
Mr Derek Carter
Executive Director
Chairman
(resigned 17 November 2016)
Dr Roger Higgins
Chairman
(elected 31 January 2017)/
Non-Executive Director
(appointed 1 July 2016)
Mr George McKenzie Non-Executive Director
(appointed 31 January 2017)
Mr Andrew Woskett Managing Director
COMPANY SECRETARY
Mr Varis Lidums
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
MINOTAUR
EXPLORATION
CONTENTS
Chairman’s Review
Managing Director’s Report
Directors’ Report
Auditor’s Independence Declaration
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
1
2
4
12
13
13
13
14
14
15
30
31
33
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 4 to 5
The Directors’ Report is not part of the financial report.
Chairman’s R
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I’m delighted to report to shareholders in my
new capacity as Chairman of the Board.
It is an honour to accept this stewardship role
for the Company following Derek Carter’s
retirement at last year’s annual general
meeting. We also welcomed George McKenzie
to the Board during the year and George has
taken the role of Chair of the Board’s Audit and
Risk Committee.
As our Annual Report goes to press, we see
many signs that a return to favour for
commodities is flowing through to the junior
sector of the listed mining company register.
Positive sentiment is vital in the exploration
business as it is fundamental to stepping
out into the unknown in search of hidden
mineral deposits.
Of course, enthusiasm must be melded with
the science we practice. Our discipline attracts
quality joint venture partners who collectively
contributed $3.73 million towards our
exploration campaigns through the 2017
financial year, enabling Minotaur to sustain a
70/30 ratio between third party and internally
funded work programs.
We appreciate the faith that accompanies those
partner contributions and strive to deliver on
that support.
Minotaur closed a fully subscribed private
Placement at the end of September; the A$1
million raising was cornerstoned by Sprott Inc
and Yarraandoo, our #1 and #2 shareholders
respectively. Their active support is most
gratifying and we hope that shareholders will
similarly support the complementary A$1
million share purchase plan, presently underway.
Proceeds from these equity issues will serve to
maintain our tempo of activity in 2018.
Work is continuing on our Eloise joint venture
with OZ Minerals, near Cloncurry in Queensland.
By the close of the 2017 calendar year OZ
Minerals’ investment in the project is expected
to reach A$4.2 million.
Success in the drilling program, now underway,
could encourage OZ Minerals to continue into
2018, working to its threshold 51% interest in
the tenements which requires total expenditure
by OZ Minerals of A$5 million.
Our Osborne joint venture in the same district,
with JOGMEC, continues using geophysics to
search under deep cover sediments.
This requires patience and deep technical
strengths, attributes which JOGMEC brings to
the partnership.
In South Australia, close to OZ Minerals’
Prominent Hill mine, our collaboration with OZ
Minerals has delivered a suite of encouraging
basement anomalies, about to be tested by
drilling. These are all within 22km of the mine
itself in a highly prospective geological setting.
A well mineralised drill intersection would
provide great encouragement to expand the
drill effort.
Our package of nickel and gold prospective
tenements near Kalgoorlie and Leinster in
Western Australia warrant a modest amount
of exploration attention, given the firming
nickel price. Ultimately, the Company’s aim is
to demonstrate potential for an expanded
resource base, building on the May 2017 JORC
resource at Saints and to leverage that promise
into a vehicle for regional consolidation of
surrounding tenements.
At the same time we continue to stay alert for,
and to seek out, value creating opportunities
in the gold sector where existing resources can
be upgraded through judicious exploration
and advanced towards development.
Chalcopyrite in drill core sample.
Thank you for your continuing support of
Minotaur Exploration.
Roger Higgins
Chairman
1
Managing Director’s R
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Business Review
Minotaur’s exploration pace was maintained
through the 2017 financial year, due largely
to our ongoing partner-funded joint ventures
with OZ Minerals Ltd (ASX: OZL) and the
Japan Oil, Gas and Metals National Corporation
(JOGMEC). Both partners recognise the
potential for discovery of new, ‘blind’ deposits
in the Cloncurry region, where our geophysical
techniques are proven to reveal basement
mineralisation obscured under cover sediments.
The region demonstrates a range of
mineralisation styles, all of which tend to
respond well to geophysics. Drill investigation
is the ultimate, and only, definitive test
method to confirm the type of mineralisation
generating a conductive response is, in fact,
an economic mineral type, such as chalcopyrite
(a form of copper sulphide).
Thus the technical approach is and must be
methodical and measured, based on rigorous
scientific modelling, abilities which position
Minotaur well amongst its industry peers.
A year on from activation of those joint
ventures we, with our respective partners, have
identified a number of quality targets. Some
have proven to be ‘false positives’, in that
the conductive anomalism has shown to be a
non-economic mineralisation type, such as
pyrite or graphite, in the drill core.
Others have proven the integrity of the geolog-
ical model, revealing highly anomalous inter-
sections of copper sulphides, such as the
‘Electra’ prospect 5km north-east of the Eloise
copper mine (where one intersection -
EL16D08 - returned 0.4m @ 12.35% Cu and
14.3g/t Au, illustrating fertility in a sequence of
rocks not previously recognised).
2
Similar early stage results gave impetus to
the exploration effort around the Eloise mine,
leading to a reconnaissance drilling program
testing new, similar geophysical responses,
underway at the time of writing and again
funded by OZ Minerals.
Close to OZ Mineral’s Prominent Hill mine
in South Australia our joint collaboration
seeking new regional targets moved into its
second phase, generating positive targets in
September, through use of on-ground
geophysics.
A new drill campaign is planned for the
December Quarter of 2017 and should any
drill target reveal economic grade copper
mineralisation the Alliance partners will
be motivated to expand the drilling scope
and pace.
Historic drill assays for the Saints nickel
deposit near Kalgoorlie in Western Australia
were re-appraised and modelled, resulting in
publication of a maiden JORC 2012 Inferred
mineral resource estimate. The contained
metal inventory of 21,000 tonnes of
nickel at 2% provides a sound base for further
exploration along strike.
Minotaur had previously partly completed
ground electromagnetic surveys to track
mineralised extensions, with favourable results.
This incomplete work warrants follow up,
especially as the commodity price continues
to firm.
When potential for expansion of the resource
base is demonstrated Minotaur would seek to
consolidate its nickel tenement assets in the
region into a separate listed vehicle.
In South Australia the Company continues
its technical and marketing research into
innovative uses for its kaolin and gypsum
resources, mineral assets which benefit the
Company with significant operational and
strategic optionality.
Corporate Review
In line with the Accounting Standards Minotaur
reviewed and impaired its exploration and
evaluation assets through the financial year,
with the 2017FY write-down amounting to
$2.09 million (2016FY $11.42 million).
Group capitalised exploration expenditure
for the financial year was $1.54 million (2016FY
$3.06 million) whereas total exploration
expenditure (including joint venture
contributions of $3.73 million) was steady at
$5.3 million (2016FY $5.2 million).
These figures show that Minotaur’s joint
venture based business model enabled the
Company to leverage its work funding by
3.4 times, thereby broadening its scope and
sphere of activity.
Minotaur’s exploration expenditure of $5.3
million for FY2017 was thereby outstanding
relative to industry peers, particularly when
taking into account the Company’s modest
market capitalisation of c. A$14m (at the time
of writing).
Prior to the current $2 million raising activity,
the Company had not raised new capital since
the $2.3 million equity raising in November
2015, thus avoiding shareholder dilution in
the interim.
The Board’s view is that the Company’s joint
venture model positions Minotaur with
optimal exposure to significant discoveries.
I am confident in the collective ability of
Minotaur’s employees and projects
to provide shareholders with market leading
returns over time and we look forward to
delivering on that potential.
Osborne JV, QLD
Barry van der Stelt, Senior Geologist, and Anna Ogilvie, Geologist, inspecting
drill core at Electra Prospect, Eloise JV, QLD.
Drilling at Osborne JV, QLD.
Minotaur maintains a diverse array of minerals exploration tenements around
Australia, totalling 10,092 km2, including Joint Venture areas.
Mount Isa
Cloncurry
Eloise
Osborne
Leinster
Scotia
Camel Lake
Prominent Hill
Gawler Ranges
Poochera
Lake Purdilla
Mutooroo
Perth
Adelaide
Sydney
Cu projects
Au projects
Ni projects
Casterton
MINOTAUR
EXPLORATION
Industrial Minerals projects
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.
Anna Ogilvie, Geologist, logging samples from Chameleon Gold Deposit, WA.
Andrew Woskett
Managing Director
3
Directors’ R
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T
Your Directors present their report on
the consolidated Group for the financial year
ended 30 June 2017.
Dr Roger Higgins BE (Hons), MSc, PhD, FIEAust, FAusIMM
(Non-Executive Director – appointed 1 July 2016
Chairman – elected 31 January 2017)
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
(resigned 17 November 2016)
Mr Andrew Woskett Managing Director
Dr Antonio Belperio Executive Director
Dr Roger Higgins
Chairman
(elected 31 January 2017)/
Non-Executive Director
(appointed 1 July 2016)
Mr George McKenzie Non-Executive Director
(appointed 31 January 2017)
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
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.
4
Dr Higgins has over 40 years experience in
mine management, project development and
sustainability, 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. 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.
Mr George McKenzie
BA LLB (cum laude), FAICD, MtB (Order of Merit)
(Non-Executive Director – appointed 31 January 2017
George McKenzie is a commercial lawyer
with over 25 years experience representing
many of South Australia’s explorers and mine
developers. He is a long standing Councillor
of the South Australian Chamber of Mines
and Energy Inc. (SACOME), having served as
Vice-President and member of the Executive
Committee of the Chamber. Mr McKenzie
has also been a member of the Minerals and
Energy Advisory Council which advises the
Minister of Mineral Resources and Energy on
strategic issues, since inception of the Council
in 2000.
Mr Andrew Woskett B Eng, M Comm Law
(Managing Director)
Andrew Woskett has over 35 years project
and corporate experience in the mining
industry. He held senior development
responsibility roles 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.
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.
Review of Operations
Corporate
The 2017 financial year concluded with the
Group holding $2.33 million in cash and term
deposits plus $0.72 million equity holdings
in ASX listed explorers. No equity issues
were required to support the Group’s active
work programs, largely due to ongoing and
substantial exploration investments by our
joint venture allies. Sprott Group remains the
Company’s key shareholder with 13% of the
issued shares.
OZ Minerals Ltd’s (ASX: OZL) investment in the
Eloise Joint Venture, in which OZ Minerals may
earn up to 70% interest through expenditure
of $10 million, exceeded $3.2 million in total
by the close of the financial year. OZ Minerals
continues to fund Eloise joint venture research
into copper and base metal prospects through
the remainder of calendar 2017.
Rotary mud pre-collar samples, Osborne Project, QLD.
OZ Minerals also endorsed Minotaur’s
proposed work plan to explore its tenements
around the Prominent Hill copper-gold
mine in South Australia. This alliance opens
up new horizons for Minotaur to deploy its
copper-gold targeting expertise.
Exploration
Exploration activity continued to focus
on copper-gold targets in Queensland and
South Australia.
The joint venture with OZ Minerals across
the Eloise area tenements honed in on new
EM anomalies at Iris North and Iris South,
where four diamond holes intersected
moderate to low grades of copper sulphides.
The EM surveys identified a 2.7km zone
of interest encompassing Iris-Electra, along
which a new four-hole drill campaign
satisfactorily established the cause of the
Electra geophysical response. Sub economic
copper mineralisation was encountered in
all holes, showing extent of fertility along the
Levuka Shear structure and within 5km of
the Eloise copper mine.
The new joint venture, with Japan Oil, Gas and
Metals National Corporation (JOGMEC), over
Minotaur’s tenements surrounding the
Osborne copper mine, south of Cloncurry was
activated, seeking both Cannington-style and
sulphide hosted copper targets through new
ground EM surveys. Several targets were
generated from the data and these were being
drill tested at the close of the financial year.
Minotaur’s alliance with OZ Minerals around
Prominent Hill made valuable progress during
the financial year. A number of geophysical
targets, all within 50km of the mine, were
tested and Minotaur’s proposition that iron
sulphide hosted copper mineralisation
could exist was validated. Follow-up work will
progress during the 2018 financial year.
A gold deposit near Kalgoorlie, named
Chameleon, identified and drilled by previous
operators, was advanced to a maiden JORC
Ava Stephens, student geologist, Artemis drill core, QLD.
Drilling at Osborne JV, QLD.
mineral resource. A sale transaction over
the asset was agreed and is in train for
completion by the end of calendar 2017, with
the balance of sale proceeds also expected by
that date. Nickel rights held over third party
tenements west of Kambalda, WA, were sold
to a private group.
Likely developments, business strategies
and prospects
Minotaur maintains its commitment to
discovery through assiduous exploration and
the opportunity to convert economic grade
deposits into mineable propositions.
While assays emanating from the recent Eloise
drilling have disappointed, the joint venture
believes that they establish confidence
in the targeting technique and demonstrate
prospectivity of the geology to potentially
deliver an Eloise mine scale repetition.
For those reasons a new ground EM campaign
is underway along the mine’s flanks and is
expected to reveal new drill targets.
The same target generation approach is
being applied to the regional work around
Prominent Hill.
Minotaur maintains a primary focus on its
copper-gold prospects near Cloncurry and
has a positive outlook on the upcoming work
around Prominent Hill in collaboration with
tenement holder OZ Minerals.
The Company’s business model is substantially
founded on continuing support from joint
venture partners. This enables Minotaur to
maintain a high level of exploration activity,
compared to its peers, and constrains self
funded administration costs to well under
20% of its exploration spend. Additionally, the
Company self funds a modest program each
year in order to generate new opportunities
or present new openings for prospective joint
venture involvement.
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.
5
Directors’
Operating Results
The consolidated loss of the Group
after providing for income tax amounted to
$3,820,416 (2016: $11,750,383).
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
Antonio Belperio
Roger Higgins
George McKenzie
Andrew Woskett
1,712,750
-
59,100
205,000
2,800,000
2,500,000
-
5,000,000
Dividends Paid or Recommended
Risk Management
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.
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 other
than the Audit, Business Risk and Compliance
Committee.
The Board has a number of mechanisms in
place to ensure that management’s
objectives and activities are aligned with the
6
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.
Significant Changes in the State of Affairs
On 31 March 2017, Minotaur Gold Solutions
Pty Ltd completed a share buy back
and cancellation of all the shares held by its
minority interest holder, Golden Fields
Resources Pty Ltd. As a result of the share buy
back and cancellation, Minotaur Gold Solutions
Pty Ltd became a wholly owned subsidiary of
the Group, with Minotaur Exploration Limited
owning 100% of its issued shares.
No other 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
On 3 July 2017, the following unlisted options
issued under the Company’s Employee Share
Option Plan expired:
Issue
Date
Expiry
Date
Exercise
Price
Number
of option
04/07/2012
03/07/2017
$0.25
1,575,000
No matter or circumstance has arisen since
30 June 2017 that has significantly affected
the Group’s operations, results or state of
affairs, or may do so in the future.
Drilling, Eloise JV, QLD.
Unissued Shares Under Option
Unissued ordinary shares of Minotaur Exploration Limited under option at the date of this
report are:
Date Options
Granted
Unlisted
05/07/2013
20/11/2014
19/11/2015
07/09/2016
18/11/2016
Listed
08/01/2016
Expiry Date
04/07/2018
19/11/2019
30/11/2017
06/09/2021
17/11/2019
30/11/2017
Exercise Price
of Shares $
Number
Under Option
0.300
0.190
0.095
0.115
0.250
0.095
2,083,333
5,505,000
14,285,715
2,685,000
10,250,000
17,937,777
52,746,825
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):
Grant Date
of Options
08/01/2016
08/01/2016
08/01/2016
08/01/2016
08/01/2016
08/01/2016
Issue Date
of Shares
14/07/2016
25/07/2016
24/10/2016
29/11/2016
08/02/2017
09/06/2017
Issue Price
of Shares $
Number of
Shares Issued
0.095
0.095
0.095
0.095
0.095
0.095
3,274
1,000
33,837
1,325
1,858
1,000
42,294
Indemnification and Insurance of
Directors and Officers
Remuneration R
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T
AUDITED
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 $15,750.
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.
Surface copper sample, Artemis Prospect, QLD.
This report outlines the remuneration
arrangements in place for directors and other
key management personnel of Minotaur
Exploration Limited in accordance with the
requirements of the Corporations Act 2001
(the Act) and its regulations. This information
has been audited as required by section
308(3C) of the Act.
Introduction
The remuneration report details the remuner-
ation arrangements for key management
personnel (KMP) who are defined as those
persons having authority and responsibility
for planning, directing and controlling the
major activities of the Company and the
Group, directly or indirectly, including any
director (whether executive or otherwise) of
the Parent.
These are as follows:
Dr Antonio Belperio
Executive Director
Mr Derek Carter
Dr Roger Higgins
Mr Varis Lidums
Chairman
(resigned 17 November 2016)
Chairman
(elected 31 January 2017)/
Non-Executive Director
(appointed 1 July 2016)
Commercial Manager and
Company Secretary
Mr Glen Little
Mr George McKenzie Non-Executive Director
Exploration Manager
(appointed 31 January 2017)
Mr Andrew Woskett Managing Director
7
Directors’
Remuneration R
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T
AUDITED
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
8
The table below details the conditions under
which non-executive directors of the Company
are remunerated:
Non-Executive Directors
Annual Retainer
$
Dr Roger Higgins Non-Executive Chairman
90,000
Mr George McKenzie Non-Executive Director
45,000
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 executive directors and other executives
receive a superannuation guarantee
contribution when required by law, 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.
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.
Table 1: Director remuneration for the year ended 30 June 2017 and 30 June 2016
Short Term Employee Benefits
Post Employment
Share-based Payments
Salary & Fees
Bonus
Superannuation
Antonio Belperio
Richard Bonython (i)
Derek Carter (ii)
Roger Higgins (iii)
George McKenzie (iv)
Andrew Woskett
Total
2017
2016
2017
2016
2017
2016
2017
2016
2017
2016
2017
2016
2017
2016
205,936
205,936
-
16,305
38,150
86,982
67,500
-
18,750
-
355,675
337,891
686,011
647,114
-
-
-
-
-
-
-
-
-
-
-
-
-
-
19,564
19,564
-
1,549
-
-
-
-
-
-
-
-
19,564
21,113
Options
82,225
-
-
-
-
-
74,750
-
-
-
149,500
-
306,475
-
Table 2: Remuneration of other key management personnel for the year ended 30 June 2017 and 30 June 2016
Short Term Employee Benefits
Post Employment
Share-based Payments
Salary & Fees
Bonus
Superannuation
Options
Varis Lidums
Glen Little
Total
2017
2016
2017
2016
2017
2016
178,082
169,178
182,391
171,011
360,473
340,189
-
-
-
-
-
-
16,918
16,072
17,327
16,246
34,245
32,318
16,280
-
10,175
-
26,455
-
Share based payments, being options issued
to directors and employees under the
Company’s Employee Share Option Plan, are
recognised at fair value using the Black-Scholes
pricing model.
Totals
$
307,225
225,000
-
17,854
38,150
86,982
142,250
-
18,750
-
505,175
337,891
1,012,050
668,227
Totals
$
211,280
185,250
209,893
187,257
421,173
372,507
Performance Based
% of Remuneration
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Performance Based
% of Remuneration
-
-
-
-
-
-
Andrew Thompson, Chief Geophysicist (right), with Zonge collecting EM data, SA.
Other transactions with key management
personnel
Throughout the year $53,500 (2016: $53,078)
(inclusive of GST) was paid to a related entity
of Dr 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 2017
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.
9
Directors’
Remuneration R
E
P
O
R
T
AUDITED
Details of options over ordinary shares in the Company that were granted during the year as remuneration to each key management
personnel are set out below:
Directors
Antonio Belperio
Derek Carter (i)
Roger Higgins (ii)
Number
granted
2,750,000
-
Grant date
18/11/16
-
2,500,000
18/11/16
George McKenzie (iii)
-
-
Andrew Woskett
5,000,000
18/11/16
Other key management
Varis Lidums
Glen Little
400,000
250,000
07/09/16
07/09/16
Options held by key management personnel
Value per option
at grant date
Value of options
at grant date
Number vested
Exercise price
$
0.0299
-
0.0299
-
0.0299
0.0407
0.0407
82,225
-
74,750
-
149,500
16,280
10,175
2,750,000
-
2,500,000
-
5,000,000
400,000
250,000
0.25
-
0.25
-
0.25
0.115
0.115
Last
exercise date
17/11/19
-
17/11/19
-
17/11/19
06/09/21
06/09/21
The number of options to acquire shares in the Company held during the 2017 reporting period by each of the key management personnel of
the Group; including their related parties are set out below:
Directors – Unlisted options
Balance at beginning
of period
Granted as
remuneration
Exercised
Net change
other
Antonio Belperio
Derek Carter (i)
Roger Higgins (ii)
George McKenzie (iii)
Andrew Woskett
Directors – Listed options
Antonio Belperio
Derek Carter (i)
Roger Higgins (ii)
George McKenzie (iii)
Andrew Woskett
-
-
-
-
-
225,000
226,171
-
-
50,000
2,750,000
-
2,500,000
-
5,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(175,000)
(226,171)
-
-
(50,000)
Balance at end
of period
2,750,000
-
Expiry date
17/11/19
-
2,500,000
17/11/19
-
-
5,000,000
17/11/19
First
exercise date
18/11/16
-
18/11/16
-
18/11/16
50,000
30/11/17
05/1/16
-
-
-
-
-
-
-
-
-
-
-
-
10
Options held by key management personnel continued
Other key management
Unlisted options
Balance at beginning
of period
Granted as
remuneration
Exercised
Varis Lidums
Varis Lidums
Varis Lidums
Varis Lidums
Glen Little
Glen Little
250,000
250,000
450,000
-
1,000,000
-
-
-
-
400,000
-
250,000
-
-
-
-
-
-
Net change
other
(250,000)
-
-
-
-
-
Balance at end
of period
-
250,000
450,000
400,000
1,000,000
250,000
Expiry date
29/09/16
03/07/17
21/11/19
06/09/21
21/11/19
06/09/21
First
exercise date
30/09/12
04/07/12
20/11/14
07/09/16
20/11/14
07/09/16
Shares held by key management personnel
Use of remuneration consultants
The number of fully paid ordinary shares in the Company held during the 2017 reporting
period by each of the key management personnel of the Group; including their related parties
are set out below:
Directors
Antonio Belperio
Derek Carter (i)
Roger Higgins (ii)
George McKenzie (iii)
Andrew Woskett
Other key management
Varis Lidums
Glen Little
Balance at
1 July 2016
1,537,750
2,487,872
-
59,100
255,000
-
58,956
On exercise
of options
-
-
-
-
-
-
-
Net change
other
175,000
(2,487,872)
-
-
(50,000)
-
-
Balance at
30 June 2017
1,712,750
-
-
59,100
205,000
-
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 2016 Annual General Meeting
Minotaur Exploration Ltd received more than
96.9% of “yes” votes on its remuneration
report for the 2016 financial year by proxy.
The Company did not receive any feedback
at the Annual General Meeting on its
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:
Directors’ Meetings
Audit Committee
Director
Eligible Attended Eligible Attended
Antonio Belperio
Derek Carter
Roger Higgins
George McKenzie
Andrew Woskett
6
2
6
4
6
6
1
6
4
6
2
-
2
1
-
2
-
2
1
-
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.
End of audited remuneration report.
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:
11
Directors’
Auditor’s Independence DECLARATION
to the Directors of Minotaur Exploration Limited
Non -audit Services continued
• 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 12
of this financial report and forms part of
this Directors’ Report.
Signed in accordance with a resolution of
the Directors:
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 2017, I declare that, to the
best of my knowledge and belief, there have been:
a
no contraventions of the auditor independence requirements of the Corporations Act 2001
in relation to the audit; and
b no contraventions of any applicable code of professional conduct in relation to the audit.
Grant Thornton House
Level 3,
170 Frome Street
Adelaide SA 5000
Correspondence to:
GPO Box 1270
Adelaide SA 5001
T 61 8 8372 6666
F 61 8 8372 6677
E info.sa@au.gt.com
W www.grantthornton.com.au
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
I S Kemp
Partner – Audit & Assurance
Adelaide, 21 August 2017
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
Roger Higgins
Chairman
‘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.
Dated this 21st day of August 2017
Liability limited by a scheme approved under Professional Standards Legislation.
12
Financial R
E
P
O
R
T
Consolidated Statement of Profit or Loss and Other Comprehensive Income
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 7
Consolidated Statement of Financial Position
A S AT 3 0 J U N E 2 0 1 7
Revenue
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
Fair value gains on available-for-sale assets
Total comprehensive income for the year
Loss for the year is attributable to:
Members of the parent entity
Non-controlling interest
Consolidated Group
2017
$
2016
$
268,923
253,508
(2,091,726)
(25,041)
(1,056,673)
(810,590)
(164,135)
(700)
(889,457)
(4,515,891)
695,475
342,384
466,680
(11,420,788)
(9,728)
(324,458)
(313,706)
(187,627)
(2,075)
(878,666)
(12,327,984)
577,601
Note
4(a)
4(b)
4(c)
4(c)
4(c)
4(d)
4(c)
4(c)
4(e)
5
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other current assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Available-for-sale investments
Property, plant and equipment
Exploration and evaluation assets
TOTAL NON-CURRENT ASSETS
(3,820,416)
(11,750,383)
TOTAL ASSETS
19(b)
46,585
208,146
(3,773,831)
(11,542,237)
20
21
(3,814,220)
(6,196)
(11,082,042)
(668,341)
CURRENT LIABILITIES
Trade and other payables
Borrowings
Short-term provisions
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Borrowings
Long-term provisions
(3,820,416)
(11,750,383)
TOTAL NON-CURRENT LIABILITIES
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)
(3,767,635)
(6,196)
(10,873,896)
(668,341)
(3,773,831)
(11,542,237)
6
6
(1.80)
(1.80)
(5.58)
(5.58)
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
PARENT INTEREST
Non-controlling interest
TOTAL EQUITY
Consolidated Group
2017
$
2016
$
Note
7
8
9
11
12
13
15
16
17
16
17
18
19
20
21
2,331,267
704,123
110,767
3,146,157
718,494
753,448
8,969,026
4,471,763
34,431
78,846
4,585,040
636,971
947,716
10,217,052
10,440,968
11,801,739
13,587,125
16,386,780
1,839,818
-
505,478
2,345,296
392,000
66,365
458,365
1,298,599
14,933
500,084
1,813,616
394,574
41,067
435,641
2,803,661
2,249,258
10,783,464
14,137,522
42,935,000
1,433,207
(33,584,743)
42,930,982
1,044,644
(29,842,301)
10,783,464
14,133,325
-
4,197
10,783,464
14,137,522
The above statement should be read in conjunction with the accompanying notes.
The above statement should be read in conjunction with the accompanying notes.
MIN OTAUR EXPLOR ATION LIMITED ANNUAL REPORT 2 017
13
Financial R
E
P
O
R
T
Consolidated Statement of Changes in Equity
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 7
Consolidated Group
Issued
Capital
$
Note
Other
Share Components
Option
Reserve
$
Non-
of Equity Accumulated Controlling
Interest
(Note 19)
$
$
Losses
$
Total Equity
$
Balance at 1 July 2016
Comprehensive income
Total comprehensive income for the year
Total comprehensive income for the year
Transactions with owners, in their
capacity as owners, and other transfers
Issue of shares through
exercise of options
Issue of unlisted options to employees
and directors
Adjustment upon increase in ownership
percentage in controlled entity
Transfer from share option
reserve upon lapse of options
42,930,982
836,498
208,146 (29,842,301)
4,197
14,137,522
-
-
18
4,018
-
-
-
-
-
-
415,755
-
(73,777)
4,018
341,978
19(a)
46,585
(3,814,220)
(6,196)
(3,773,831)
46,585
(3,814,220)
(6,196)
(3,773,831)
-
-
-
-
-
-
-
-
-
4,018
415,755
(1,999)
1,999
73,777
-
-
-
71,778
1,999
419,773
Balance at 30 June 2017
42,935,000 1,178,476
254,731 (33,584,743)
-
10,783,464
Balance at 1 July 2015
Comprehensive income
Total comprehensive income 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
Transaction costs (net of tax)
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
40,781,387
1,024,418
-
(18,975,019)
184,472
23,015,258
-
-
18
18
2,258,744
(109,337)
188
-
-
-
19(a)
-
-
-
-
-
-
-
(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 30 June 2016
42,930,982
836,498
208,146 (29,842,301)
4,197
14,137,522
Consolidated Statement of Cash Flows
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 7
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers and employees
Interest received
Finance costs
R&D tax incentive received
Consolidated Group
2017
$
2016
$
Note
242,689
(1,402,976)
31,490
(1,501)
695,475
285,003
(1,552,420)
56,674
(2,075)
624,460
NET CASH USED IN OPERATING ACTIVITIES
7
(434,823)
(588,358)
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
Buy back of shares in controlled entity
Proceeds from sale of tenements
Joint Venture receipts
Government grants received for exploration activities
Payment for exploration activities
(3,622)
10,000
(140,757)
155,000
-
(6,471)
360,000
3,006,449
178,065
(5,250,848)
(11,006)
38,366
(103,328)
962,039
(50,000)
-
-
2,711,268
80,573
(4,973,070)
NET CASH USED IN INVESTING ACTIVITIES
(1,692,184)
(1,345,158)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares through Share Purchase Plan and Share Placement
Proceeds from exercise of listed options
Funds received from GFR
Payment of transaction costs for issue of shares
Repayment of borrowings
NET CASH (USED IN)/PROVIDED BY FINANCING ACTIVITIES
Net (decrease)/increase in cash and cash equivalents
Cash at the beginning of the year
-
4,018
-
-
(17,507)
(13,489)
(2,140,496)
4,471,763
CASH AT THE END OF THE YEAR
7
2,331,267
2,258,931
-
152,653
(156,195)
(14,089)
2,241,300
307,784
4,163,979
4,471,763
The above statement should be read in conjunction with the accompanying notes.
The above statement should be read in conjunction with the accompanying notes.
14
MINOTAUR E XPLO R ATIO N LI MI TED ANN UAL RE PORT 201 7
Notes to the Consolidated Financial Statements
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 7
These consolidated financial statements and notes
represent those of Minotaur Exploration Ltd
and Controlled Entities (the ”consolidated Group”
or “Group”).
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 2017 were approved and
authorised for issue by the Board of Directors on
21st August 2017.
a) Principle of Consolidation
The consolidated financial statements
incorporate the assets, liabilities and results of
entities controlled by Minotaur 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 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.
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.
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
b)
exists; and
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.
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b)
Summary of Significant Accounting Policies
Income Tax
Tax consolidation
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
16
MINOTAUR E XPLO R ATIO N LI MI TED ANN UAL RE PORT 201 7
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.
The useful life for each class of depreciable
assets are:
Class of Fixed Asset
Useful life
Leasehold improvements
3 -7 years
Buildings
Plant and equipment
Motor Vehicles
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.
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.
value for all unlisted securities, including recent
arm’s length transactions, reference to similar
instruments and option pricing models.
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.
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.
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
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.
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.
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F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 7
Summary of Significant Accounting Policies
1
h) Business Combinations
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
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.
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.
Functional and presentation currency
Other long-term employee benefits
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.
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.
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.
k) Provisions
Provisions are recognised when the Group has
a legal or constructive obligation, as a result
of past events, for which it is probable that an
outflow of economic benefits will result and
that outflow can be reliably measured.
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 six (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
The Group generates revenues from
management fees charged to joint operation
partners for the management of exploration
activities. This revenue is recognised when the
management services are provided.
Rental income from operating leases is
recognised on a straight-line basis over
the lease term. Interest income is reported
on an accruals basis using the effective
interest method.
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.
o) Borrowing Costs
Borrowing costs directly attributable to the
acquisition, construction or production of assets
that necessarily take a substantial period of time
to prepare for their intended use or sale are
added to the cost of those assets, until such time
as the assets are substantially ready for their
intended use or sale.
All other borrowing costs are recognised in profit
or loss in the period in which they are incurred.
18
MINOTAUR EXPLOR ATION LIM ITED ANN UAL RE PORT 201 7
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 capitalised
exploration and evaluation expenditure are
credited against the exploration and evaluation
assets to which they relate in order to match
the grants received with the expenditure the
grants are intended to compensate.
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 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 $8,969,026
(2016: $10,217,052).
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 2016.
Information on the more significant standard(s)
is presented below.
AASB 2014-3 Amendments to Australian
Accounting Standards – Accounting for
Acquisitions of Interests in Joint Operations
Additionally, the amendments provide guidance
in the application of the diminishing balance
method for property, plant and equipment.
The amendments to AASB 11 Joint
Arrangements state that an acquirer of an
interest in a joint operation in which the
activity of the joint operation constitutes a
‘business’, as defined in AASB 3 Business
Combinations, should:
•
apply all of the principles on business
combinations accounting in AASB 3 and
other Australian Accounting Standards
except principles that conflict with the
guidance of AASB 11. This requirement
also applies to the acquisition of additional
interests in an existing joint operation
that results in the acquirer retaining joint
control of the joint operation (note that
this requirement applies to the additional
interest only, i.e. the existing interest is not
re-measured) and to the formation of a
joint operation when an existing business
is contributed to the joint operation by one
of the parties that participate in the joint
operation; and
•
provide disclosures for business
combinations as required by AASB 3 and
other Australian Accounting Standards.
AASB 2014-3 is applicable to annual reporting
periods beginning on or after 1 January 2016.
The adoption of these amendments has not
had a material impact on the Group.
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.
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:
•
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
• when it can be demonstrated that revenue
and the consumption of the economic
benefits of the intangible asset are highly
correlated.
AASB 2014-4 is applicable to annual reporting
periods beginning on or after 1 January 2016.
The adoption of these amendments has not
had a material impact on the Group.
AASB 2014-9 Amendments to Australian
Accounting Standards – Equity Method in Sepa-
rate 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.
AASB 2014-9 is applicable to annual reporting
periods beginning on or after 1 January 2016.
The adoption of these amendments has not
had a material impact on the Group.
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F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 7
Summary of Significant Accounting Policies
1
t) Changes in accounting policies
New and amended standards adopted by
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 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
AASB 2015-2 is applicable to annual reporting
periods beginning on or after 1 January 2016.
The adoption of these amendments has not
had a material impact on the Group.
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MINOTAUR EXPLOR ATION LIM ITED ANN UAL RE PORT 201 7
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
c)
comprehensive 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
•
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 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 Group 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 2014-7 Amendments to Australian
Accounting Standards arising from AASB 9
(December 2014)
AASB 2014-7 incorporates the consequential
amendments arising from the issuance of
AASB 9.
AASB 2014-10 Amendments to Australian
Accounting Standards – Sale or Contribution of
Assets between an Investor and its Associate
or Joint Venture
The amendments address a current
inconsistency between AASB 10 Consolidated
Financial Statements and AASB 128 Investments
in Associates and Joint Ventures.
The amendments clarify that, on a sale or
contribution of assets to a joint venture or
associate or on a loss of control when joint
control or significant influence is retained
in a transaction involving an associate or a joint
venture, any gain or loss recognised will depend
on whether the assets or subsidiary constitute
a business, as defined in AASB 3 Business
Combinations. Full gain or loss is recognised
when the assets or subsidiary constitute a
business, whereas gain or loss attributable to
other investors’ interests is recognised when
the assets or subsidiary do not constitute
a business.
This amendment effectively introduces an
exception to the general requirement in
AASB 10 to recognise full gain or loss on the
loss of control over a subsidiary. The exception
only applies to the loss of control over a
subsidiary that does not contain a business, if
the loss of control is the result of a transaction
involving an associate or a joint venture that is
accounted for using the equity method.
Corresponding amendments have also been
made to AASB 128.
AASB 2016-5 Amendments to Australian
Accounting Standards – Classification
and Measurement of Share-based Payment
Transactions
This Standard amends AASB 2 Share-based
Payment to address:
a) The accounting for the effects of
vesting and non-vesting conditions
on the measurement of cash-settled
share-based payments; and
b) The classification of share-based payment
transactions with a net settlement feature
for withholding tax obligations.
The accounting for a modification to the terms
and conditions of a share-based payment that
changes the classification of the transaction
from cash-settled to equity-settled.
When these amendments are first adopted for
the year ending 30 June 2019, there will be no
material impact on the financial statements.
When these amendments are first adopted for
the year ending 30 June 2019, there will be no
material impact on the financial statements.
AASB 2017-2 Amendments to Australian
Accounting Standards – Further Annual
Improvements 2014-2016 Cycle
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.
This Standard clarifies the scope of AASB 12
Disclosure of Interests in Other Entities by
specifying that the disclosure requirements
apply to an entity’s interests in other entities
that are classified as held for sale, held for
distribution to owners in their capacity as
owners or discontinued operations in
accordance with AASB 5 Non-current Assets
Held for Sale and Discontinued Operations.
When these amendments are first adopted for
the year ending 30 June 2018, there will be no
material impact on the financial statements.
Although AASB 121 The Effects of Changes in
Foreign Exchange Rates sets out requirements
about which exchange rate to use when
recording a foreign currency transaction on
initial recognition in an entity’s functional
currency, the IFRS Interpretations Committee had
observed diversity in practice in circumstances
in which an entity recognises a non-monetary
liability arising from advance consideration.
The diversity resulted from the fact that some
entities were recognising revenue using the spot
exchange rate at the date of the receipt of the
advance consideration while others were using
the spot exchange rate at the date that revenue
was recognised.
Interpretation 22 addresses this issue by
clarifying that the date of the transaction for the
purpose of determining the exchange rate to
use on initial recognition of the related asset,
expense or income (or part of it) is the date
on which an entity initially recognises the
non-monetary asset or non-monetary liability
arising from the payment or receipt of advance
consideration. If there are multiple payments or
receipts in advance, the entity shall determine
a date of the transaction for each payment or
eceipt of advance consideration.
When this interpretation is adopted for the year
ending 30 June 2019, there will be no material
impact on the financial statements.
IFRIC 23 Uncertainty Over Income Tax
Treatments
IFRIC 23 clarifies how the recognition and
measurement requirements of IAS 12 Income
Taxes are applied where there is uncertainty
over income tax treatments.
Interpretation 22 Foreign Currency Transactions
and Advance Consideration
The entity has not yet assessed the full impact
of this Interpretation.
Interpretation 22 looks at what exchange rate
to use for translation when payments are made
or received in advance of the related asset,
expense or income.
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
2017
$
2016
$
1,710,076
10,427,329
4,060,552
11,771,528
12,137,405
15,832,080
895,576
458,365
1,258,918
435,641
1,353,941
1,694,559
42,935,000
1,178,476
(33,330,012)
42,930,982
836,499
(29,629,960)
10,783,464
14,137,521
(3,771,830)
-
(10,624,654)
-
(3,771,830)
(10,624,654)
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.
MI NOTAUR EXPLOR ATI ON LIMI TED ANNUAL REPORT 2 017
21
Financial R
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Notes to the Consolidated Financial Statements
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 7
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.
4 Revenue and Expenses
Revenue
a)
Administration fees
Rent received
Bank interest received or receivable
b) Other income
Net gains on disposal of available-for-sale investments
Net (loss)/gain on disposal of property, plant and equipment
Initial recognition of listed shares
Net gain on disposal of exploration assets
Expenses
c)
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
4 Revenue and Expenses
Consolidated Group
2017
$
2016
$
c)
Expenses
Finance expenses
Finance costs
Interest applicable to hire-purchase contracts
Total finance expenses
Employee benefits expense
d)
Wages, salaries, directors fees and other remuneration expenses
Superannuation expense
Transfer to annual leave provision
Transfer to/(from) long service leave provision
Employee share options expense
Transfer to exploration assets
e) 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
220,054
22,635
26,234
268,923
28,915
(316)
44,221
180,688
253,508
260,086
24,917
57,381
342,384
449,511
17,169
-
-
466,680
2,091,726
25,041
11,420,788
9,728
2,116,767
11,430,516
1,056,673
1,056,673
7,937
92,173
48,945
15,080
324,458
324,458
7,937
92,361
64,168
23,161
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
Total depreciation of non-current assets
164,135
187,627
Income tax benefit reported in the Statement of Profit or Loss
22
MINOTAUR E X PLOR ATION L IM ITED ANN UAL RE PORT 201 7
Consolidated Group
2017
$
2016
$
55
645
700
2,267,164
166,951
22,370
8,322
415,755
(2,069,972)
150
1,925
2,075
2,195,445
163,633
48,798
(17,662)
-
(2,076,508)
810,590
313,706
228,755
113,192
251,981
53,248
37,873
48,163
11,023
22,393
44,178
78,651
889,457
249,908
114,576
252,394
59,957
36,035
73,824
9,400
28,883
44,500
9,189
878,666
-
-
(695,475)
(695,475)
-
46,859
(624,460)
(577,601)
5
Income Tax Benefit
6 Earnings per Share
Consolidated Group
As no dilutive effect has been taken into account for 2017, 54,321,825 potential ordinary shares have not been included in the calculation.
2017
$
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.
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 before income tax
At the Group’s statutory income tax rate of 27.5% (2016: 30%)
Expenditure not allowable for income tax purposes
Research and development tax incentive
Tax effect of transactions recorded directly to equity
Tax losses not recognised due to not meeting recognition criteria
(4,515,891)
(12,327,984)
(1,241,870)
115,689
(695,475)
-
1,126,181
(3,698,395)
2,316,395
(624,460)
46,859
1,382,000
(695,475)
(577,601)
7 Cash and Cash Equivalents
Cash and cash equivalents
Cash at bank and on hand
Short-term deposits
Consolidated Group
2017
$
2016
$
2,153,167
178,100
2,331,267
3,487,034
984,729
4,471,763
The Group has tax losses arising in Australia of $83,582,234 (2016: $83,949,507) that are available indefinitely for offset against future
taxable profits generated by the Group. In addition, the Group has $8,122,131 (2016: $8,195,267) capital losses available. These losses
include $72,537,535 tax losses and $2,323,426 capital losses transferred by members to the tax consolidated group. The utilisation of these
losses will be restricted to their available fraction.
Tax losses of $1,223,333 (2016: $1,899,773) were cancelled upon issue of EDI credits to shareholders pursuant to the announcement dated
29 March 2017.
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 Gold Solutions Pty Ltd joined the income tax consolidated group on 31 March 2017. Minotaur Exploration Ltd
is the head entity of the tax consolidated group.
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:
Net loss attributable to ordinary equity holders of the parent
Weighted average number of ordinary shares for basic earnings per share
Effect of dilution
Share options
Consolidated Group
2017
2016
($3,814,220)
212,373,155
($11,082,042)
198,646,744
-
-
Weighted average number of ordinary shares adjusted for the effect of dilution
212,373,155
198,646,744
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 taking into account for 2017.
Included in short-term deposits is $178,100 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
Reconciliation of net loss after tax to net cash flows used in operating activities
Net loss
Adjustments for non-cash items:
Depreciation
Impairment of non-current assets and project generation costs
Net gain on disposal of property plant and equipment,
available-for-sale financial instruments and tenements
Share options expensed
Initial recognition of listed shares
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
2,153,167
178,100
2,331,267
3,487,034
984,729
4,471,763
(3,820,416)
(11,750,383)
164,135
3,173,440
187,627
11,754,974
(209,287)
415,755
(44,221)
6,624
3,481
(155,025)
30,691
(434,823)
(466,680)
-
-
2,331
13,256
(360,619)
31,136
(588,358)
MIN OTAUR EXPLOR ATION LIMITED ANNUAL REPORT 2 017
23
Financial R
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Notes to the Consolidated Financial Statements
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 7
8 Trade and Other Receivables
Trade receivables (i)
Sale of tenements receivable (ii)
i)
ii)
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 2016 and 2017 and no
receivables are past due at balance date.
On 2 March 2017, Minotaur Gold Solutions Pty Ltd entered into a tenement sale and
purchase agreement with Shine Resources Pty Ltd for the sale of P29/2121, E29/661
and M24/336 for a total consideration of $550,000. As at balance date the Group
had received a total of $250,000 with the balance of $300,000 due to be received at
completion, anticipated in December 2017.
Information regarding the credit risk of current receivables is set out in Note 27.
9 Other Current Assets
Prepayments
Accrued income
Net GST and PAYG receivable
Other
10 Held-for-Sale Assets
Opening balance
Additions through expenditure capitalised
Transfers to exploration and evaluation assets
During the year ended 30 June 2016 the marketing process undertaken for the sale
of various non-core assets of the Group drew to a close. No sale transaction was
entered into as a result of this process. The assets were reclassified to exploration
and evaluation assets and their carrying value impaired to $Nil as at 30 June 2016.
24
MINOTAUR EXPLOR ATION LIM ITED ANN UAL RE PORT 201 7
Consolidated Group
2017
$
404,123
300,000
704,123
2016
$
34,431
-
34,431
53,053
687
42,027
15,000
110,767
56,535
5,940
-
16,371
78,846
-
-
-
-
4,758,158
58,720
(4,816,878)
-
1 1 Available-for-Sale Investments
At fair value – Shares, listed:
Opening balance
Revaluations
Disposals
Initial recognition of listed shares
Acquisitions
Impairments
12 Property, Plant and Equipment
Consolidated Group
2017
$
2016
$
636,971
76,586
(155,000)
44,221
140,757
(25,041)
718,494
839,083
208,146
(503,858)
-
103,328
(9,728)
636,971
30 June 2017
Cost
Opening balance
Additions
Disposals
Accumulated depreciation
Opening balance
Depreciation for the year
Disposals
Net book value
30 June 2016
Cost
Opening balance
Additions
Disposals
Accumulated depreciation
Opening balance
Depreciation for the year
Disposals
Net book value
Land and
buildings
Leasehold
improvements
Plant and
equipment
Kaolin
Pilot Plant
Motor
Vehicles
Total
508,723
-
-
508,723
15,874
7,937
-
23,811
484,912
508,723
-
-
508,723
7,937
7,937
-
15,874
492,849
611,218
-
-
611,218
336,734
92,173
-
428,907
182,311
611,218
-
-
611,218
244,373
92,361
-
336,734
274,484
398,926
3,622
(49,890)
283,765
-
-
187,253
-
-
1,989,885
3,622
(49,890)
352,658
283,765
187,253
1,943,617
302,301
48,945
(39,574)
260,326
23,439
-
126,934
15,080
-
1,042,169
187,574
(39,574)
311,672
283,765
142,014
1,190,169
40,986
-
45,239
753,448
411,799
11,006
(23,879)
398,926
262,012
64,168
(23,879)
302,301
96,625
283,765
-
-
283,765
244,700
15,626
-
260,326
23,439
245,950
-
(58,697)
2,061,455
11,006
(82,576)
187,253
1,989,885
141,276
23,161
(37,503)
126,934
60,319
900,298
203,253
(61,382)
1,042,169
947,716
12 Property, Plant and Equipment
Property is measured at historical cost less accumulated depreciation. Land and buildings with a net book value of $484,912 (2016: $492,849)
is offered as security against a mortgage of $392,000.
No motor vehicles as at balance date were offered as security against hire purchase contracts as all hire purchase contracts pertaining to
motor vehicles were extinguished during the year (30 June 2016: Motor vehicles with a net book value of $25,737 was offered as security
against hire purchase contracts of $17,507).
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
Consolidated Group
2017
$
2016
$
5,597,913
3,371,113
6,322,354
3,894,698
8,969,026
10,217,052
Capitalised tenement expenditure movement reconciliation – Consolidated Group:
30 June 2017
Balance at beginning of year
Additions through expenditure capitalised
Reductions through joint operation contributions
Write-off of tenements relinquished
Disposals
Project generation costs
Transfers between categories
Exploration
Joint Operations
$
Exploration
Other
$
6,322,354
3,836,889
(3,727,296)
(871,879)
(6,080)
-
43,925
3,894,698
1,429,671
-
(1,219,847)
(473,232)
(216,252)
(43,925)
Total
$
10,217,052
5,266,560
(3,727,296)
(2,091,726)
(479,312)
(216,252)
-
Balance at end of year
5,597,913
3,371,113
8,969,026
30 June 2016
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
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)
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 $2,091,726 (2016: $11,420,788) arose from a review of the Group’s capitalised costs and the relevant tenements
to which the costs related.
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.
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.
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 (d).
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:
Outstanding at the beginning of the year
Granted during the year
Expired during the year
Outstanding at the end of the year
Exercisable at the end of the year
2017
Number
8,125,000
2,685,000
(1,045,000)
9,765,000
9,765,000
2017
WAEP
0.20
0.03
0.20
0.18
0.18
2016
Number
8,125,000
-
-
8,125,000
8,125,000
2016
WAEP
0.20
-
-
0.20
0.20
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.
A total of 2,685,000 options exercisable at any time until 6 September 2021 with an exercise price of $0.115.
The outstanding balance as at 30 June 2017 is represented by:
•
•
•
The weighted average remaining contractual life for the share options outstanding as at 30 June 2017 is 2.50 years (2016: 3.53 years).
The range of exercise prices for options outstanding at the end of the year was $0.115 - $0.25 (2016: $0.19 - $0.25).
The fair value of options granted during the year was $109,280 (2016: $Nil).
MIN OTAUR EXPLOR ATION LIMITED ANNUAL REPORT 2 017
25
Financial R
E
P
O
R
T
Notes to the Consolidated Financial Statements
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 7
15 Trade and Other Payables
Trade payables (i)
Net GST and PAYG Payable
Joint operation income received in advance
Accrued expenses
Other payables (ii)
i)
ii)
Trade payables are non-interest bearing and are normally settled on 30-day terms.
Other payables are non-interest bearing and are normally settled within 30 - 90 days.
Information regarding the credit risk of current payables is set out in Note 27.
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
Long service leave provision
Non-current
Long service leave provision
26
MIN OTAU R E XPLOR ATI ON LIM ITED ANN UAL R EPORT 2017
Consolidated Group
2017
$
2016
$
1,130,962
-
253,456
431,167
24,233
1,839,818
450,687
6,995
608,312
206,989
25,616
1,298,599
-
-
-
392,000
392,000
183,381
322,097
505,478
66,365
66,365
14,933
14,933
2,574
392,000
394,574
161,011
339,073
500,084
41,067
41,067
Consolidated Group
2017
$
2016
$
18
Issued Capital
212,386,616 fully paid ordinary shares (2016: 212,344,322)
42,935,000
42,930,982
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
2017
2016
Number
$
Number
$
212,344,322
42,930,982
180,074,588
40,781,387
-
42,294
-
-
4,018
-
32,267,760
1,974
-
2,258,744
188
(109,337)
Balance at end of financial year
212,386,616
42,935,000
212,344,322
42,930,982
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)
Available-for-sale revaluation reserve (b)
Share option reserve
a)
Balance at beginning of financial year
Issue of options to employees and officers under Employee Share Option Plan
Issue of options to directors of the Company
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) Available-for-sale revaluation reserve
Balance at beginning of financial year
Net revaluation increment
Balance at end of financial year
The available-for-sale revaluation reserve comprises the cumulative net change in the fair
value of available-for-sale financial assets until the assets are derecognised or impaired.
Consolidated Group
2017
$
2016
$
1,178,476
254,731
1,433,207
836,498
109,280
306,475
(73,777)
1,178,476
836,498
208,146
1,044,644
1,024,418
-
-
(187,920)
836,498
208,146
46,585
254,731
-
208,146
208,146
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 $3.07 million in respect of exploration licence rentals and to meet minimum expenditure requirements.
It is expected that of this minimum expenditure requirement, $1.68 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.
Consolidated Group
2017
$
2016
$
(29,842,301)
(3,814,220)
73,777
(1,999)
(18,975,019)
(11,082,042)
187,920
26,840
23 Auditor’s Remuneration
Audit or review of the financial report
Taxation compliance
Total auditor’s remuneration
(33,584,743)
(29,842,301)
24 Contingent Liabilities and Contingent Assets
Consolidated Group
2017
$
44,178
9,500
53,678
2016
$
44,500
1,000
45,600
4,197
-
1,999
(6,196)
-
184,472
514,906
(26,840)
(668,341)
4,197
356,357
356,963
713,320
346,967
700,196
1,047,163
-
-
-
-
-
15,558
2,594
18,152
(645)
17,507
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 $165,000 at 30 June 2017 (2016: $177,200). 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 Pty Ltd (ii)
Ownership interest
Country of
incorporation
2017
%
2016
%
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
73
i)
ii)
Minotaur Exploration Limited is the head entity within the tax consolidated Group.
These companies are members of the tax consolidated Group.
On 31 March 2017, Minotaur Gold Solutions Pty Ltd completed a share buy back and cancellation of all the shares held by its minority
interest holder, Golden Fields Resources Pty Ltd. As a result of the share buy back and cancellation, Minotaur Gold Solutions Pty Ltd became
a wholly owned subsidiary of the Group, with Minotaur Exploration Limited owning 100% of its issued shares.
On the same date, Minotaur Gold Solutions Pty Ltd jointed the tax consolidated group.
MIN OTAUR EXPLOR ATION LIMITED ANNUAL REPORT 2 017
27
(Carried at amortised cost)
Other financial instruments
Financial R
E
P
O
R
T
Notes to the Consolidated Financial Statements
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 7
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 2017
Financial assets
Cash and cash equivalents
Trade and other receivables
Available-for-sale assets
Financial liabilities
Trade and other payables
Non-current borrowings
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
Note
7
8
11, 28
Note
15
16, 26(a)
Note
7
8
11, 28
Note
15
16, 26(a)
16, 26(a)
AFS
$
Cash
$
Loans and
Receivables
$
Total
$
(Carried at fair value)
(Carried at amortised cost)
-
-
718,494
718,494
2,331,267
-
-
2,331,267
Payables
$
-
704,123
-
704,123
2,331,267
704,123
718,494
3,753,884
Borrowings
$
Total
$
1,839,818
-
1,839,818
AFS
$
Cash
$
-
392,000
392,000
Loans and
Receivables
$
(Carried at fair value)
(Carried at amortised cost)
-
-
636,971
636,971
4,471,763
-
-
4,471,763
Payables
$
-
34,431
-
34,431
1,839,818
392,000
2,231,818
Total
$
4,471,763
34,431
636,971
5,143,165
Borrowings
$
Total
$
(Carried at amortised cost)
1,298,599
-
-
1,298,599
-
14,933
394,574
409,507
1,298,599
14,933
394,574
1,708,106
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.
28
MINOTAUR EXPLOR ATION LIM ITED ANN UAL RE PORT 201 7
26 Financial Assets and Liabilities
26(a) Borrowings
Borrowings include the financial liabilities:
Financial liabilities
Fair value
Finance lease liabilities
Bank borrowings
All borrowings are denominated in AUD.
Borrowings at amortised cost
Current
Non-Current
2016
$
14,933
-
14,933
2017
$
2016
$
-
392,000
392,000
2,574
392,000
394,574
2017
$
-
-
-
Bank borrowings are secured by land and buildings owned by the Group (see Note 12). Current interest rates are variable and average 4.95%
(2016: 4.69%). The carrying amount of bank borrowings is considered to be a reasonable approximation of the fair value.
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 Groups exploration activities and fund operating costs.
Financial assets
Cash and cash equivalents
Trade and other receivables
Available-for-sale assets
Financial liabilities
Payables
Borrowings
Consolidated Group
2017
$
2016
$
2,331,267
704,123
718,494
1,839,818
392,000
4,471,763
34,431
636,971
1,298,599
409,507
27 Financial Risk Management
Credit risk
27 Financial Risk Management
Available-for-sale financial instrument risk management
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.
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.
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
2017
Variable interest rate
2016
Variable interest rate
Weighted average
effective interest rate
%
Less than
1 year
$
1.10
1.66
2,331,267
4,471,763
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 $17,008 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.
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.
Consolidated
2017
Interest bearing
Non-interest bearing
2016
Interest bearing
Non-interest bearing
Weighted average
effective interest rate
%
Less than
1 year
$
Longer than 1 year
and not longer
than 5 years
$
4.95
-
4.75
-
-
1,839,818
14,933
1,298,599
392,000
-
394,574
-
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 2017 and 30 June 2016:
Level 1
$
Level 2
$
Level 3
$
Total
$
30 June 2017
Financial assets at fair value
Available-for-sale investments
Listed securities
30 June 2016
Financial assets at fair value
Available-for-sale investments
Listed securities
718,494
718,494
636,971
636,971
-
-
-
-
-
-
-
-
718,494
718,494
636,971
636,971
There were no transfers between Level 1 and Level 2 in 2017 or 2016.
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.
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’:
Directors
Mr Derek Carter, Chairman (Resigned 17 November 2016)
Dr Antonio Belperio, Executive Director
Dr Roger Higgins, Chairman (Elected 31 January 2017)/
Non-Executive Director (Appointed 1 July 2016)
Mr Richard Bonython, Non-Executive Director (Resigned 25 November 2015) Mr George McKenzie, Non-Executive Director (Appointed 31 January 2017)
Mr Andrew Woskett, Managing Director
MIN OTAUR EXPLOR ATION LIMITED ANNUAL REPORT 2 017
29
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.
Roger Higgins
Chairman
Dated this 21st day of August 2017
Financial R
E
P
O
R
T
Notes to the Consolidated Financial Statements
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 7
Directors’ Declaration
29 Related Party Disclosure and Key Management Personnel Remuneration
The Directors of the Company declare that:
3
Other key management personnel
Mr Varis Lidums, Commercial Manager (Company Secretary appointed 1 July 2016)
Mr Glen Little, Exploration Manager
Mr Donald Stephens, Company Secretary (resigned 1 July 2016)
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
1
the consolidated financial statements
and notes, as set out on pages 13 to 30,
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 2017
and of the performance for the
year ended on that date of the
Company and consolidated Group;
2017
$
1,046,484
1,046,484
53,809
53,809
332,930
332,930
2016
$
987,303
987,303
53,431
53,431
-
-
1,433,223
1,040,734
Throughout the year no transactions took place between Minotaur Exploration Limited and any associates (2016: $Nil). In addition, no
amounts were owed by any associates at the end of the year (2016: $Nil).
2
the Managing Director and Company
Secretary have each declared that:
Director and key management personnel related entities
Throughout the year $53,500 (2016: $53,078) (inclusive of GST) was paid to a related entity of Dr Antonio Belperio under a commercial
lease agreement for the use of warehouse space located at Magill, South Australia.
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 2017 that has significantly affected the Group’s operations, results or state of affairs,
or may do so in the future.
a)
b)
c)
the financial records of the
Company for the financial year
have been properly maintained
in accordance with s 286 of the
Corporations Act 2001;
the financial statements and
notes for the financial year comply
with Accounting Standards; and
the financial statements and
notes for the financial year give a
true and fair view; and
30
MIN OTAU R E XPLOR ATI ON LIM ITED ANN UAL RE PORT 201 7
Independent Auditor’s
REPORT
to the Members of Minotaur Exploration Limited
Grant Thornton House
Level 3,
170 Frome Street
Adelaide SA 5000
Correspondence to:
GPO Box 1270
Adelaide SA 5001
T 61 8 8372 6666
F 61 8 8372 6677
E info.sa@au.gt.com
W www.grantthornton.com.au
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS
OF MINOTAUR EXPLORATION LIMITED
Report on the audit of the financial report
Opinion
We have audited the financial report of Minotaur Exploration Limited (the Company) and its
subsidiaries (the Group), which comprises the consolidated statement of financial position as
at 30 June 2017, the consolidated statement of profit or loss and other comprehensive
income, consolidated statement of changes in equity and consolidated statement of cash
flows for the year then ended, and notes to the consolidated financial statements, including
a summary of significant accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group, is in accordance with the
Corporations Act 2001, including:
a
b
Giving a true and fair view of the Group’s financial position as at 30 June 2017 and of its
performance for the year ended on that date; and
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of
the Financial Report section of our report. We are independent of the Group in accordance
with the independence requirements of the Corporations Act 2001 and the ethical requirements
of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (the Code) that are relevant to our audit of the financial report in
Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial report of the current period. These matters were
addressed in the context of our audit of the financial report as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter How our audit addressed the key audit matter
Valuation of exploration and evaluation assets
Notes 1, 4, 13
In accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources, the company is
required to assess at each reporting date if
there are any triggers for impairment which may
suggest the carrying value is in excess of the
recoverable value.
The process undertaken by management to
assess whether there are any impairment triggers
in each area of interest involves an element of
management judgement.
This area is a key audit matter due to the significant
judgement involved in determining the existence
of impairment triggers.
Our procedures included, amongst others:
• Obtaining the management reconciliation of
capitalised exploration and evaluation
expenditure and agreeing to the general ledger;
• Reviewing management’s area of interest
considerations against AASB 6;
• Conducting a detailed review of management’s
assessment of trigger events prepared in
accordance with AASB 6 including;
- Tracing projects to statutory registers,
exploration licenses and third party
confirmations to determine whether a right
of tenure existed;
- Enquiry of management regarding their
intentions to carry out exploration and
evaluation activity in the relevant exploration
area, including review of management’s
budgeted expenditure;
- Understanding whether any data exists to
suggest that the carrying value of these
exploration and evaluation assets are unlikely
to be recovered through development or sale;
- Assessing the accuracy of impairment
recorded for the year as it pertained to
exploration interests that are to be
relinquished; and
• Reviewing the appropriateness of the related
financial statement disclosures.
MIN OTAUR EXPLOR ATION LIMITED ANNUAL REPORT 2 017
31
Independent Auditor’s
Information Other than the Financial Report and Auditor’s Report Thereon
The Directors are responsible for the other information. The other information comprises the
information included in the Group’s annual report for the year ended 30 June 2017, but
does not include the financial report and our auditor’s report thereon. The annual report is
expected to bemade available to us after the date of this auditor’s report.
Our opinion on the financial report does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the financial report or our knowledge obtained in the audit or otherwise appears to be
materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact. We have nothing to report in
this regard.
Responsibilities of the Directors for the Financial Report
The Directors of the Company are responsible for the preparation of the financial report
that gives a true and fair view in accordance with Australian Accounting Standards and the
Corporations Act 2001 and for such internal control as the Directors determine is necessary
to enable the preparation of the financial report that gives a true and fair view and is free
from material misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the Directors either intend
to liquidate the Group or to cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a
whole is free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with the Australian Auditing
Standards will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of
this financial report.
32
MINOTAUR E X PLOR ATION L IM ITED ANN UAL R EPORT 2017
A further description of our responsibilities for the audit of the financial report is located at
the Auditing and Assurance Standards Board website at:
http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf. This description forms part of
our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year
ended 30 June 2017.
In our opinion, the Remuneration Report of Minotaur Exploration Limited, for the year ended
30 June 2017, complies with section 300A of the Corporations Act 2001.
Responsibilities
The Directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001.
Our responsibility is to express an opinion on the Remuneration Report, based on our audit
conducted in accordance with Australian Auditing Standards.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
I S Kemp
Partner – Audit & Assurance
Adelaide, 21 August 2017
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or
refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL).
GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the
member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable
for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited
ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
ASX Additional
INFORMATION
Minotaur Exploration Limited
Interests in Mining Tenements as at 30 September 2017
Lease ID
Lease Name
State
Holding Company
Border Joint Venture
EL5079
Mutooroo
SA
Minotaur Operations
Cloncurry (Regional)
EPM8608
EPM16975
EPM19530
EPM18861
MDL432
EPM18068
EPMA26509
EPM19412
EPM25889
EPMA26521
Bendigo Park
Cattle Creek
Corella
Donaldson Well
Eloise
Gidyea Bore
Gold Reef
Middle Creek
Sedan
Sybellah
Eloise Joint Venture (OZ Minerals)
MDL431§
Eloise
EPM19500
EPM18442
EPM25389
EPM17838§
EPM25237
EPM25801
EPM18624
EPM26233
EPM25238
Eloise North
Eloise Northwest
Fullarton
Levuka
Levuka
Masai
Oorindi Park
Route 66
Saxby
Osborne Joint Venture (JOGMEC)
EPM18575
EPM18720
EPM25886
EPM25960
EPM26230
EPM18571
EPM25888
EPM25699
EPM25856
Carbo Creek
Cuckadoo
Hennes Bore
Jubilee
Nithsdale
Sandy Creek
Tripod Tank
Warburton Creek
Wilgunya
Victoria Copper Project (Stavely Minerals)
EL5403
EL5450
Lexington
Roxborough
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
VIC
VIC
Minotaur Operations
Minotaur Operations
Minotaur Operations
Minotaur Operations
Levuka Resources
Minotaur Operations
Minotaur Operations
Minotaur Operations
Minotaur Operations
Minotaur Operations
Levuka Resources
Minotaur Operations
Levuka Resources
Minotaur Operations
Levuka Resources
Minotaur Operations
Levuka Resources
Minotaur Operations
Minotaur Operations
Minotaur Operations
Minotaur Operations
Minotaur Operations
Minotaur Operations
Minotaur Operations
Minotaur Operations
Minotaur Operations
Minotaur Operations
Minotaur Operations
Minotaur Operations
Minotaur Operations
Minotaur Operations
Minotaur Equity
Equity Earned %
JV Partner
Lease ID
Lease Name
State
Holding Company
Minotaur Equity
Equity Earned %
JV Partner
Sumitomo Metal Mining Oceania 53%
BHPBilliton NSR
Sandfire Resources 60%
Sandfire Resources has 60% equity in
portion of the tenement
Sandfire Resources has 60% equity in
portion of the tenement
47
100
100
100
100
40
100
0
100
100
0
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
Industrial Minerals Project
EL5906
ELA5502
EL5869
EL5911
EL5395
EL5308
EL5905
EL5885
EL5398
EL5814
EL5710
ELA116/2017
(EL5016)
EL5787
ELA175/2017
(EL5095)
Acraman
Casterton South
Coober Pedy
Giddina Creek
Kyancutta
Mount Hall
Narlaby
Oolgelima
Sceales
Tootla
Waurea
Whichelby
Yanerbie
Camel Lake
Gawler Ranges Project
EL5887
ELA165/2017
ELA166/2017
Scotia Project
E 29/00661
M 24/00336
M 29/00245
M 29/00246
P 29/02121
Leinster Project
E 36/899
E 37/909
M 36/475
Other Projects
EL5542
EL5117
ML4386
EL5723
Mt Double
Lake Everard East
Lake Everard West
Goongarrie 3
Goongarrie 6
Goongarrie 13
Goongarrie 14
Goongarrie 12
Fly Bore
Leinster 2
Leinster 10
Blinman
Ediacara
Third Plain
Wilkawillina
SA
VIC
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
WA
WA
WA
WA
WA
WA
WA
WA
SA
SA
SA
SA
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 Gold Solutions
Minotaur Gold Solutions
Minotaur Gold Solutions
Minotaur Gold Solutions
Minotaur Gold Solutions
Altia Resources
Scotia Nickel
Altia Resources
Perilya
Perilya
Perilya
Perilya
100
0
100
100
100
100
100
100
100
100
100
100
100
100
100
0
0
100
100
100
100
100
0
100
100
10
10
10
10
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
MI NOTAUR EXPLOR ATI ON LIMI TED ANNUAL REPORT 2 017
33
ASX Additional
INFORMATION
Minotaur Exploration Limited
Interests in Mining Tenements as at 30 September 2017
Shareholdings A S AT 3 0 S E P T E M B E R 2 0 1 7
Lease ID
Lease Name
State
Holding Company
Minotaur Equity
Equity Earned %
JV Partner
Additional information required by the Australian Securities Exchange (ASX) and not shown elsewhere in this report is as follows.
The information is current as at 30 September 2017.
ELA170/2016
(EL4961)
EPM17061
M15 1828
M15 395
M15 703
L15 128
L15 255
E15 967
E15 968
P15 5860
Moonta
Mt Osprey
Spargos Reward
West Kambalda
West Kambalda
West Kambalda
West Kambalda
West Kambalda
West Kambalda
West Kambalda
# Diluting interest
Ni 100% = 100% interest in Nickel rights only
SA
QLD
WA
WA
WA
WA
WA
WA
WA
WA
Peninsula Resources
Birla Mt Gordon
Minex Australia,
Corona Minerals
Tychean Resources
Tychean Resources
Tychean Resources
Tychean Resources
Tychean Resources
Tychean Resources
Tychean Resources
10
#22.9
Ni 100%
Peninsula Resources
Capricorn Copper
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
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
Distribution of equity securities
Ordinary share capital
212,394,016 fully paid ordinary shares are held by 2,307 individual shareholders.
All issued ordinary shares carry one (1) vote per share and carry the rights to dividend.
Options
17,930,377 listed options are held by 454 option holders.
34,609,048 unlisted options are held by 28 option holders.
The number of shareholders, by size of holding, in each class are:
Range
Fully paid ordinary shares
Listed Options
Unlisted Options
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Holdings less than a marketable parcel
Substantial shareholders
Ordinary shareholders
Merrill Lynch (Australia) Nominees Pty Limited
Yarraandoo Pty Ltd
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