Annual Report
MRG Metals Ltd
ABN: 83 148 938 532
For the Year ended 30 June 2017
For personal use only Contents
Review of Operations
Corporate Governance Statement
Statement of Financial Position
Statement of Profit or Loss and Other Comprehensive Income
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Consolidated Financial Statements
1. Nature of Operations
2. General Information and Statement of Compliance
3. New Accounting Standards & Interpretations
4. Summary of Accounting Policies
5. Adjustment to Prior Period
6. Revenue
7. Segment Reporting
8. Other Receivables
9. Cash and Cash Equivalents
10. Equity and Dividends
11. Trade and Other Payables
12. Plant and Equipment
13. Exploration and Evaluation
14. Option
15. Income Tax Expense
16. Auditor Remuneration
17. Earnings per Share
18. Reconciliation of Cash Flows from Operating Activities
19. Related Party Transactions
20. Contingent Assets and Contingent Liabilities
21. Commitments
22. Financial Instrument Risk
23. Capital Risk Management
24. Post-Reporting Date Events
25. Parent Entity Information
26. Authorisation of Financial Statements
ASX Additional Information
Corporate Directory
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For personal use only
MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
Review of Operations
Highlights
3
The year ended 30 June 2017 saw MRG Metals Ltd (“MRG” or “Company”) complete a successful capital raising,
explore on its Western Australia Yardilla project, explore its Queensland projects and enter into a Farm-in
Agreement on a Sweden VMS project.
A Research and Development (“R & D”) grant of $552K for the 2016 year was received from the Federal
Government's R & D Tax Incentive Scheme in recognition of our technology driven exploration approach.
Approval has been received for another R & D claim of approximately $669K for the 2017 year.
The Company is now embarking on drill testing program on its Swedish project. Also, the Company is considering
opportunities of Joint Ventures on its Australian projects.
Projects
SWEDEN
On 29 May 2017 MRG Metals entered into a Farm-in Agreement with Mandalay Resources Corporation (Mandalay)
over the Norrliden VMS project in Sweden. Mandalay acquired the Norrliden project as part of the Elgin acquisition
in 2014. Due to the focus on Brownfields extensions to their mining operation they have chosen not to develop the
exploration Project further themselves. The current size of the Norrliden Norre resource and the different
metallurgical character of Norrliden mineralisation discovered make it unsuitable as mill feed for Mandalay’s existing
Bjorkdal processing facility. However, Mandalay will retain the right to claw-back the project should a significantly
larger stand-alone discovery be made once a 50/50 earn-in is a achieved and the project progresses to a Joint
Venture.
1.5 million tonnes @ 4.4%Zn, 0.4%Pb; 0.8%Cu; 0.8 g/t Au and 59.9 g/t Ag, of which approximately 40%
Preliminary economic study was undertaken in 2004.
Located within an approved Mining Concession.
Norrliden Norra deposit: JORC Resource (Indicated and Inferred):
•
of the tonnes Indicated and 60% Inferred.
•
•
Fundamentals of the deal for MRG:
•
•
•
•
•
10% Earn-in after $500,000 USD sole expenditure within 15 months,
25% Earn-in after cumulative $1,000,000 USD sole expenditure within 27 months,
50% Earn-in after cumulative $3,000,000 USD sole expenditure within 39 months,
Joint Venture structure to progress the project from here.
At any time after establishing the Joint Venture and with an independent completed NI-43101 and
compliant Feasibility Study, up till decision financing is raised to construct a mine, Mandalay can buy out
MRG’s interest for MRG’s share of the unlevered NPV of the project as estimated in a NI-43-101 Feasibility
Study report prepared by a third party consultant. All parties must unanimously agree to the independent
consultant and the assumptions used in the Feasibility study.
The Norrliden JV is located in a key position within the central part of the Paleoproterozoic (c. 1890-1870 Ma)
Skellefte Belt in Northern Sweden, 5km to the southeast of the Boliden Group’s Maurliden mines along the main
structural corridor and mineralised trend between Boliden and Malå.
The Swedish Boliden Group has dominated production in the district for decades and has established processing
facilities at Boliden and smelting facilities in Skellefteå. In more recent years TSX and ASX listed companies such as
Mandalay Resources (MRG’s JV partner) and S2 Resources have recognised the untapped potential of the belt,
For personal use only MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
4
establishing concession holdings in the district and beginning active exploration using the latest available technology.
Much of the Skellefte Belt and the majority of the Norrliden JV area is covered by a veil of recent glacial till deposits
(up to 50m thick) and MRG’s expertise in integrating electrical and potential field geophysics with geochemical
analysis from drill holes and surface sampling will be key to taking exploration at Norrliden to the next stage.
There are approximately 20 sulphide deposits, resources and mines within 10km of the Norrliden JV and huge
potential for further new discoveries. This list includes Boliden Group’s Maurliden Västra and Maurliden Östra
operations 5km to the northwest which have reported pre-mining resources of 5.7Mt (@ 2.7% Zn, 0.3% Cu, 0.7 g/t
Au, 44 g/t Ag) and 1.2Mt (@ 0.5% Zn, 0.8% Cu, 0.8 g/t Au, 16 g/t Ag) respectively.
5km along-strike to the southeast is the Boliden-owned Bjurliden deposit and S2 Resources Bjurträskgruvan project
where recent drilling down-dip of known mineralisation returned intercepts of 14.71m @ 2.2% Zn, 1.0% Cu, 5g/t
Ag (SBJK17003), 6.28m @ 1.4% Cu, 5.7 g/t Ag (SBJK17004) and 24.4m @ 1.11% Cu, 5.1 g/t Ag (SBJK17006)
(From S2R ASX Announcements March-May 2017).
5km west of Norrliden is the decommissioned sulphide mine at Högkulla (Boliden Group) and S2 Resources
Skäggträskberget project.
Within the Norrliden JV concessions are three main areas of historical exploration that will be the initial targets of
review and exploration by MRG.
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Consolidated Financial Statements
30 June 2017
QUEENSLAND PROJECTS:
5
MRG holds a number of Projects in Western Queensland with potential to host Iron Oxide, Copper Gold ('IOCG')
and base metal mineralisation. These projects were highlighted by preliminary analysis completed by our technical
partner Sasak Technology. They have similar geophysical characteristics to known deposits such as Glencore PLC's
Ernest Henry Mine (166 Mt @ 1.1% Cu & 0.54 g/t Au - pre mining resource) and BHP's Cannington Mine (44 Mt
@ 383 g/t Ag, 8.9% Pb, 4.2% Zn - 2007 resource).
The Projects comprise:
Iron Oxide Copper Gold Type Targets:
EPM 25887 Selwyn: 11km North of BHP Cannington in the Staveley Formation.
EPM 25884 Mt Angelay: 30km NE of Selwyn-Starra Deposit in the Staveley Formation.
EPM25885 Kamilaroi: 150km NNW of Cloncurry. 40m @ 0.14% Cu in previous drilling by Paradigm Metals.
EPM25883 Oban: 35km SW of Mt Isa at a splay in regional-scale structures where Alpha Centauri and
Gunpowder Formation meta-sediments are exposed at surface.
EPM19306 Davenport Downs: Southern extension of the Mount Isa Belt undercover to the north of the
Diamantina Hinge Zone
Sediment Hosted Copper-Lead-Zinc Targets (Mt Isa – Cannington Style):
EPM19470 Squirrel Hill: 12km WNW of BHP Cannington.
EPM19471 Pulchera: A string of prospects situated in the Simpson Desert near the Northern Territory border in
western Queensland. Along strike from Krucible Metals Toomba discovery of up to 27m @ 0.4% copper from 9m
(including 3m @ 2.4% copper).
Alkaline Intrusion (Carbonatite) Hosted Cobalt-Scandium-Nickel -Rare Earth Element targets
EPM19471 Pulchera: The project also sits astride an anomalously magnetic, post-orogenic late-Devonian alkaline
intrusion, one of several running in a NW-SE orientation for several hundred kilometres from central NSW to the Gulf of
Carpentaria. These underexplored intrusions have similarities to economically significant intrusions of the Kola Peninsula
(Finland-Russia) which are prospective for Co-Sc-Ni and Rare Earth Elements as well as gold and platinum group
elements.
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Consolidated Financial Statements
30 June 2017
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Airborne VTEM Geophysical surveys were flown over selected projects in late 2016 and analysis of geochemical and
geophysical data by MRG’s technical partner Sasak resulted in an initial field program completed in May 2017. The
program was focused on those areas with minimal soil or younger sedimentary cover. For those projects where the targets
are under deeper cover, additional ground geophysics is required to generate 3D targets for drill testing.
Grid based geochemical sampling was completed over the Oban (EPM25883) and Selwyn (EPM25887) Projects and
orientation lines over Mount Angelay (EPM25884 & EPM26167). Geological mapping and reconnaissance for drilling
access was also completed. Additionally, drill rig access to the Squirrel Hills Project was investigated.
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Consolidated Financial Statements
30 June 2017
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The target Proterozoic aged rocks at Kamilaroi (EPM25885) and Davenport Downs (EPM19306) Projects lie under
younger sedimentary cover and the development of a discreet drill-target will depend on additional geophysical methods.
A ground gravity survey is in planning at Kamilaroi that will extend the existing surveys at the prospect to a wider
coverage. Previous drilling by Paradigm Metals intersected 40m @ 0.14% Cu from 397.5 m in magnetic ironstone
surrounded by meta sedimentary and calc silicate rocks in the central part of the licence. But analysis of VTEM and
magnetic data from MRG’s 2016 survey has changed the focus of the Company’s exploration strategy onto a gravity
anomaly to the south.
Enhanced modelling of cover depth over the Davenport Downs Project during January 2017 indicates that the depth of
Palaeozoic Eromanga Basin sediments to be in the order 600m to 800m. Effective exploration of a target this deep would
be prohibitively expensive despite the prospectivity of the geological setting. MRG is currently reviewing options for using
deeper targeting technology before making a decision to continue with the Davenport Downs Project.
The Pulchera Project (EPM19471) is located in a remote part of western Queensland and a desktop review indicates that
prospective rocks are overlain by 50m to 80m of Eromanga Basin Sediments and sand dunes. MRG is working on further
defining the geological and structural framework of the prospect while developing a combined geophysical and
geochemical sampling program that will be best suited to the terrain at this remote project. Further development of close
working relationships with the leaseholders and Native Title Claimants in the area will be a crucial part of planning and
activities over the forthcoming period.
Subsequent analysis of VTEM analysis, Soil sampling and Geological mapping has resulted in the prioritisation of the
projects. Following the initial field work our future work in Queensland will be directed towards the Oban,
Kamilaroi Mount Angeley and Pulchera Projects. The Selwyn, Squirrel Hills and Davenport Downs will be accorded
lower priority
WESTERN AUSTRALIAN PROJECTS:
YARDILLA
MRG’s Yardilla Project comprises 3 exploration licences covering high impact gold and nickel sulphide targets,
Located 95km east-northeast of Norseman on the boundary between the Archaean Yilgarn Craton and the
Proterozoic Albany-Fraser Orogen.
Tropicana gold mine – Resource of 115.7Mt @ 1.89 g/t Au for 7.04Moz Au (30 June 2015)
Nova-Bollinger nickel sulphide deposits – Resource of 14.3Mt @ 2.3% Ni & 0.9% Cu for 325kt Ni & 134kt
The Albany-Fraser Orogen hosts a number of world class deposits, including:
•
•
Cu (30 June 2015)
•
& 9.3Moz Ag (30 June 2015)
Trilogy base metal deposit – Resource of 6.2Mt @ 1% Cu, 0.9 g/t Au & 47 g/t Ag for 65kt Cu, 214koz Au
The project is considered highly prospective and spans a portion of a the major tectonic suture between the Kurnalpi
greenstone Terrain of the Yilgarn Craton and the Proterozoic Albany-Fraser Province, covering tectonically
reworked Archaean rocks which form the eastern margin of the Yilgarn Craton. This is a Tectono-Structural
position similar to the Tropicana deposit.
During the year MRG completed two drilling programs, a 788 metres of diamond in December 2016 with a follow
up Reverse Circulation Program in April 2017. The initial diamond program discovered a large alteration zone at the
Ommaney Prospect, revealed by analysis of exploration data generated by previous explorers. Two holes from this
program, YRDH002A & YRDH003B identified the presence of a large alteration system.
Follow up RC drilling at the Ommaney prospect and subsequent analysis of the multi-element geochemical data
from by Sasak Technical Services supports observations from MRG geologists that there are two phase of
mineralisation present at Ommaney. Intervals of anomalous gold intersected in hole YRRC-001 are not directly
related to the main alteration zone at Ommaney and should be treated as a separate target (see figure below).
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Consolidated Financial Statements
30 June 2017
8
Oblique view (towards the south) of RC and DDH drill holes at the Ommaney prospect (MRG: 2016-2017) with the Sasak-generated multi-
element anomaly (translucent image) draped on topography. Analysis of geochemical results support observations by MRG geologists:
intervals of anomalous gold in YRRC-001 appear to be from a different source/setting than the alteration zone centred on YRRD-003A.
Simply drilling between the two is not likely to be a good exploration strategy.
Analysis of the geochemical characteristics of YRRC-001 in comparison to diamond holeYRDH-003A and YRRC-
008 show it as separate population of more gold and arsenic rich mineralisation with significantly elevated Mo and
Pb.
The anomalous intervals in YRRC-001 are associated with intermittent quartz veining hosted in dark grey meta-
sedimentary rocks, rather than the feldspar-dominated gneissic rock or meta-volcanic rocks that is the interpreted
precursor of the main pyrite and tungsten-rich intense alteration zone centred on YRDH-003A.
Further implications of this analysis are that drilling between the two targets (YRRC-001 and YRDH-003A) is
unlikely to intersect a transitional zone between the two holes.
MRG’s is currently in the process of further investigating the alteration system at Ommaney, having submitted core
for thin section preparation and analysis. The results of this work will contribute towards better understanding how
the exploration strategy at Yardilla should progress.
After this MRG plans to review the exploration strategy at Yardilla and likely direct efforts towards systematic
Aircore/RAB drilling to top of fresh rock over expanded areas of the tenement where potential continuity to the
alteration zone at Ommaney is interpreted from historical soil sampling and geophysical data.
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Consolidated Financial Statements
30 June 2017
XANADU
9
The Xanadu Project is located close to the northern-central margin of the Ashburton Basin, flanking both the Pilbara
Craton and Hamersley Basin and lies 4km west southwest of Northern Star’s Ashburton project (1.67Moz at 2.4g/t).
It covers a 12km strike length of prospective stratigraphy that includes several known occurrences of gold
mineralisation and a number of prospects including the Amphitheatre Mine. Gold mineralisation has been detected
by shallow drilling along the entire strike length of the tenements.
A program of structural mapping and review of the Xanadu project geology was undertaken onsite in November
2016. A number of inconsistencies with historical exploration strategies and the understanding of mineralisation at
the Xanadu project were identified during this field work, leading to a decision by MRG to postpone any planned
drilling until a thorough structural and geological review could be completed.
A review of geological literature including recently published geochronology and stratigraphic models of the Pilbara-
Ashburton region allowed the assembly of data into a new 3D model. This work included consultation with industry
and government experts in the geology of the wider district to establish a timing and relative genetic framework for
features identified at the Xanadu prospects. Previous explorers of the district were also consulted where possible to
establish and confirm historical exploration strategies, and to further check the accuracy and reliability of the
compiled database.
The Xanadu Technical Program is still ongoing. However, confidence in the location of the Xanadu project host-
rocks within the established stratigraphy allows comparison to other exposures and to two main conclusions: That
transition from carbonaceous and siliclastic sedimentation to carbonate reefs creates a situation of high chemical,
rheological and permeability contrasts at Xanadu. The lithocap breccia and silica-sulphide alteration that is
commonly exposed in pits and along escarpments at Xanadu is the result of a large and intense hydrothermal
alteration system (10km in length) that is recorded in drilling to >300m, whereas secondary silicification due to
weathering (silcrete) is of limited depth (1-2m from top surface of mesa).
The main controls on near-surface Au mineralisation in Xanadu are a steep fault network that cross-cuts the altered
and brecciated rock and has similar geometry to the deposits and prospect around the Mt Olympus area. Extensive
near-surface exploration of these corridors at Xanadu have only resulted in small and patchy deposits and resources
being defined, whereas the core of this main fluid system at depth below the outcropping alteration remains to be
identified and tested.
Recommendations from the Xanadu Technical Review are:
Re-focus efforts towards developing a targeting strategy that combines investigation of appropriate
-
geophysical techniques to identify a disseminated or vein-hosted orebody (not massive sulphide) at depth of 100-
800m below the surface.
-
of geophysical data.
Further litho-structural modelling of the Xanadu project area in 3D to support processing and interpretation
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Consolidated Financial Statements
30 June 2017
10
South-eastern wall of the Amphitheatre Pit showing folded carbonaceous and siliclastic sediments with dark red-brown Duck Creek
Dolomite above (Nov 2016).
LOONGANA PROJECT
MRG’s Loongana Project is located on the Nullarbor Plain, 500kms east of Kalgoorlie and 60kms north of the Trans
Australia railway line. MRG holds 2 granted licences that cover the majority of the Loongana Igneous Complex, a
large layered mafic and ultramafic intrusive body that lies at depths ranging from 250m to 350m below the surface.
The Complex was drilled for platinum reef style mineralisation. Due to localised structural complexity the reef style
target was not tested by this drilling, however this still remains a valid drill target. Attention has now shifted to
massive nickel - copper sulphides on the margins of the Complex and iron-oxide copper-gold (IOCG)
mineralisation.
MRG have recently obtained the samples generated from 6 widely spaced deep holes drilled by previous explorers
and these are being subject to hyperspectral analysis. The data generated from this work will be combined with
previous geophysical analysis completed by Sasak to generate new drill targets within the central and western parts of
the Complex.
KALGOORLIE EAST
MRG holds four contiguous Prospecting Licences; P26/3693, P26/3694, P26/4015 & P26/4016 over a consolidated
area of 586 hectares within the Golden Ridge Belt, a structurally complex assemblage of Archean ultramafic, mafic
and felsic volcanic rocks with associated sediments and cherts, intruded by a series of younger dolerite dykes and
felsic porphyries. The project is located approximately 8km east of Kalgoorlie and 12km the north of Macpherson’s
Resources Ltd’s Boorara Gold Project.
Further work on this Project will be in a similar vein to our Xanadu Project with litho-structural modelling of the
project area in 3D to determine the focus of future exploration.
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Consolidated Financial Statements
30 June 2017
11
Note
ACTIVITIES AND HIGHLIGHTS SINCE 30 JUNE 2017
Approval for 2017 Research and Development claim of approximately $669,000.
Completion of Norrliden Södra rock chip sampling in July.
Commencement of drilling at Sweden VMS project.
TENEMENTS:
The Tenements held by the Company at reporting date are as follows:
Project
Yardilla
Yardilla
Yardilla
Xanadu
Xanadu
Xanadu
Xanadu
Xanadu
Xanadu
Xanadu
Xanadu
Xanadu
Xanadu
Xanadu
Xanadu
Xanadu
Xanadu
Xanadu
Kalgoorlie East
Kalgoorlie East
Kalgoorlie East
Kalgoorlie East
Loongana
Loongana
Davenport Downs
Squirrel Hill
Pulchera
Mt Angelay I
Mt Angelay II
Oban
Kamilleroi
Selwyn
Tenement
E28/2368
E63/1626
E28/2338
P52/1366
P52/1367
P52/1368
P52/1369
P52/1372
P52/1373
P52/1374
P52/1375
P52/1376
P52/1377
P52/1378
P52/1379
P52/1380
P52/1381
E52/3065
P26/4015
P26/4016
P26/3693
P26/3694
E69/3104
E69/3288
EPM19306
EPM19470
EPM19471
EPM25884
EPM26167
EPM25883
EPM25885
EPM25887
% Owned
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
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Consolidated Financial Statements
30 June 2017
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Directors’ Report
The Directors of MRG Metals Ltd present their Report together with the financial statements of the consolidated
entity, being MRG Metals Ltd (‘MRG’ or ‘the Company’) and its controlled entities, MRG Metals (Australia) Pty Ltd
and MRG Metals (Exploration) Pty Ltd (‘the Group’) for the year ended 30 June 2017 and the Independent
Auditor’s Report thereon.
Director details
The following persons were directors of MRG Metals Ltd during or since the end of the financial year.
Mr Andrew Van Der Zwan
BE Chemical Engineering (hons)
Independent Non Executive Director since 07/01/2013
Chairman since 08/10/2013
Director since 14/02/2011
Andrew has over 30 years engineering and commercial experience, both local and international. He was a Non
Executive Director of Gulfx Ltd for 11 years and was employed in various senior positions within the worldwide
operations of Exxon Mobil for 17 years.
Other current directorships:
Argo Exploration Ltd (ASX: AXT) since 19/03/2013
Previous directorships (last 3 years):
TTE Petroleum Ltd (ASX: TTE) April 2014 to April 2016
Interests in shares:
7,187,500 shares
Interest in options:
3,590,000 August 2020 options
Mr Shane Turner
CA, Bachelor of Business
Independent Non-Executive Director
Director since incorporation 24/01/2011
Shane is a Chartered Accountant and has over 30 years financial and accounting experience. He has been employed
with KPMG, a large regional public accounting practice, operated his own public accounting practice and now is
employed with RSM Australia. He has been Company Secretary and CFO of White Rock Minerals (ASX: WRM)
since August 2015. He was a Non Executive Director and Company Secretary for Metminco (ASX: MNC) for 2
years.
Other current directorships:
None
Previous directorships (last 3 years):
None
Interests in shares:
5,305,800 shares
Interest in options:
1,520,000 August 2020 options
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30 June 2017
Mr Christopher Gregory
BSc Geology, MAusIMM, MAIG, FSEG, MAICD
Independent Non-Executive Director since 12/08/2013
Director since 12/08/2013
13
Chris has extensive global minerals industry experience over 37 years, at both technical and executive levels. Career
foundation of 22 years in the Asia-Pacific region with Rio Tinto. Currently Vice President – Operational Geology at
Mandalay Resources (TSX: MND) and MD at Sasak Minerals.
Other current directorships:
None
Previous directorships (last 3 years):
None
Interests in shares:
24,899,800 shares
Interest in options:
8,300,000 August 2020 options
Mr Keith Weston
BSc Geology (hons), MAusIMM
Managing Director & Chief Executive Officer since 07/01/2013
Director since 07/01/2013
Ceased 05/08/2016
Company secretary
Shane Turner is a Chartered Accountant and the Group Chief Financial Officer. Shane has held senior positions
with a number of professional accounting firms and has a degree in Business. Shane has held the role of company
secretary at White Rock Minerals (ASX: WRM) since August 2015. Shane has previously held the role of company
secretary for Metminco (ASX: MNC) for 2 years. He has been the company secretary of MRG since incorporation
on 24/01/2011.
Principal activities
During the period, the principal activities of entities within the Group were exploration and development of gold,
base metals and other commodities within Australia and Overseas. There have been no significant changes in the
nature of these activities during the period.
Review of operations and financial results
The operating result of the Group for the year ended was a loss of $590,197 (2016 loss $2,022,320). Refer detailed
Review of Operations that follows this report.
Earnings per share (0.21) cents (2016 (1.49) cents).
Further information on the detailed operations of the Group during the year is included in the Review of Operations
Report.
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Significant changes in the state of affairs
During the year, some tenement applications for the Kalgoorlie East project were relinquished.
During the year, new tenement applications for Yardilla project were made and not yet granted at year end.
During the year, a Farm-in Agreement was entered into on a Sweden VMS project.
Dividends
There were no dividends declared or paid during the financial period.
Events arising since the end of the reporting period
Since the end of the year no further significant events have occurred other than those noted in the Review of
Operations Report.
Likely developments
Information on likely developments in the Group’s operations and the expected results have not been included in
this report because the directors believe it would likely result in unreasonable prejudice to the Group.
Directors’ meetings
The number of meetings of directors held during the period and the number of meetings attended by each director
were as follows:
Name
Board meetings
Mr A Van Der Zwan
Mr K Weston
Mr S Turner
Mr C Gregory
A
21
2
21
21
B
21
2
21
21
Where:
A is the number of meetings the Director was entitled to attend
B is the number of meetings the Director attended
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30 June 2017
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Remuneration Report (audited)
The Directors of MRG Metals Ltd (‘the Group’) present the Remuneration Report prepared in accordance with the
Corporations Act 2001 and the Corporations Regulations 2001.
The remuneration report is set out under the following main headings:
a. Principles used to determine the nature and amount of remuneration
b. Details of remuneration
c.
Service agreements
d. Share-based remuneration
e. Bonuses included in remuneration
f. Other information
(a) Principles used to determine the nature and amount of remuneration
The principles of the Group’s executive strategy and supporting incentive programs and frameworks are:
• To align rewards to business outcomes that deliver value to shareholders;
• To drive a high performance culture by setting challenging objectives and rewarding high performing
individuals; and
• To ensure remuneration is competitive in the relevant employment market place to support the attraction,
motivation and retention of executive talent.
MRG Metals Ltd has structured a remuneration framework that is market competitive and complementary to the
reward strategy of the Group.
The Board, in accordance with its charter as approved by the Board, is responsible for determining and reviewing
compensation arrangements for the directors and the executive team.
The remuneration structure that has been adopted by the Group consists of the following components:
• Fixed remuneration being annual salary; and
• Superannuation to meet statutory obligations.
The Board assesses the appropriateness of the nature and amount of remuneration on a periodic basis by reference
to recent employment market conditions with the overall objective of ensuring maximum stakeholder benefit from
the retention of a high quality Board and executive team.
The payment of bonuses, share options and other incentive payments are reviewed by the Board annually as part of
the review of executive. All bonuses, options and incentives must be linked to pre-determined performance criteria.
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30 June 2017
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(b) Details of remuneration
Details of the nature and amount of each element of the remuneration of each key management personnel (‘KMP’) of MRG Metals Ltd are shown in the table
below.
Director and other Key Management Personnel Remuneration
Short term employee benefits
Cash salary
and fees ($)
Cash bonus
($)
Non-
monetary
benefits ($)
Post-
employment
benefits
Long-term
benefits
Termination
benefits
Share-based
payments
Superannuation
($)
Long-term
bonus ($)
Termination
payments ($)
Options ($)
Total ($)
% of
remuneration
that is
performance
based
Name
Executive director
Mr K Weston
Non-executive directors
Mr A Van Der Zwan
Mr S Turner
Mr C Gregory
2017 Total
Executive directors
Mr K Weston
Non-executive directors
Mr C Gregory
Mr S Turner
Mr A Van Der Zwan
2016 Total
6,666
95,837
100,000
112,000
314,503
94,500
112,000
100,000
55,000
361,500
-
-
-
-
-
-
-
-
-
-
-
633
60,800
60,800
60,800
4,750
9,500
4,750
182,400
19,633
-
-
-
-
-
7,600
4,275
9,500
5,225
26,600
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7,299
161,387
170,300
177,550
516,536
102,100
116,275
109,500
60,225
388,100
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Note: Mr K Weston ceased 5 August 2016.
Note: At 30 June 2016, deferred remuneration to Directors was $106,732. This amount is included in the totals above.
For personal use only
MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
17
(c) Service agreements
Remuneration and other terms of employment for Executive Directors and other Key Management Personnel are
formalised in a service agreement. The major provisions of the agreements relating to remuneration are set out
below:
Base salary
Name
Mr A Van Der Zwan
50,000
Mr A Van Der Zwan - Consultant 50,000
50,000
Mr C Gregory
62,000
Mr C Gregory - Consultant
50,000
Mr S Turner - Director
50,000
Mr S Turner - Secretary
Notice period
Term of agreement
Rotation per Corporations Act 2001 Nil
No fixed term
Rotation per Corporations Act 2001 Nil
No fixed term
Nil
Rotation per Corporations Act 2001 Nil
Nil
No fixed term
(d) Share based remuneration
During the year, 4,000,000 performance rights to each Director were approved at the 2016 Annual General Meeting
(AGM)
expiring 5 years after grant. A valuation of the fair value of the performance rights using a Monte-Carlo valuation
model assessed the fair value of 4,000,000 performance rights at $60,800.
(e) Bonuses included in remuneration
No short-term incentive cash bonuses were awarded as remuneration during the financial year.
(f) Other information
Loans to key management personnel (KMP)
year (2016: nil).
none (2016: nil).
Shares held by key management personnel
their related parties, is set out below:
2017
Key
Management
Person
Van Der Zwan
Turner
Gregory
Weston
Balance at
start of year
2,375,000
1,652,900
12,449,900
100,000
16,577,800
Received
on
exercise
-
-
-
-
-
Other
changes
-
-
-
(100,000)
(100,000)
Additions
4,812,500
3,652,900
12,449,900
-
20,915,300
Mr Weston held 100,000 shares at date of cessation, 5 August 2016.
2016
Key
Management
Person
Van Der Zwan
Turner
Gregory
Weston
Balance at
start of year
2,375,000
1,652,900
12,449,900
100,000
16,577,800
Received
on
exercise
-
-
-
-
-
Other
changes
-
-
-
-
-
Additions
-
-
-
-
-
Held at the
end of the
reporting
period
7,187,500
5,305,800
24,899,800
-
37,393,100
Held at the
end of the
reporting
period
2,375,000
1,652,900
12,449,900
100,000
16,577,800
For personal use only MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
18
Options held by key management personnel
The number of options to acquire shares in the Company held by each of the key management personnel of the
Group; including their related parties are set out below.
2017
Key
Management
Person
Van Der Zwan
Turner
Gregory
Weston
2016
Key
Management
Person
Van Der Zwan
Turner
Gregory
Weston
Deleted
on
exercise
-
-
-
-
-
Deleted
on
exercise
-
-
-
-
-
Ceased/Lapsed
(1,080,000)
(735,000)
-
(88,688)
(1,903,688)
Ceased/Lapsed
-
-
-
-
-
Additions
-
-
-
-
-
Additions
3,590,000
1,520,000
8,300,000
88,688
13,498,688
Held at
the end of
the
reporting
period
3,590,000
1,520,000
8,300,000
-
13,410,000
Held at
the end of
the
reporting
period
4,670,000
2,255,000
8,300,000
88,688
15,313,688
Balance at start
of year
4,670,000
2,255,000
8,300,000
88,688
15,313,688
Balance at start
of year
1,080,000
735,000
-
-
1,815,000
End of audited remuneration report.
Environmental legislation
The Group’s projects are subject to environmental regulation under laws of the Commonwealth and States and
Territories in Australia, specifically the Group is required to comply with terms of the grant of the tenement and all
directions given to it under those terms of the tenement which it holds. There have been no known breaches of the
tenement conditions, and no such breaches have been notified by any government agency during the period ended
30 June 2017.
Indemnities given and insurance premiums paid to auditors and officers
During the year, MRG Metals Ltd negotiated a premium to insure officers of the Group. The officers of the Group
covered by the insurance policy include all directors.
The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be
brought against the officers in their capacity as officers of the Group, 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 to cause detriment to the Group.
Details of the amount of the premium paid in respect of the insurance policies are not disclosed as such disclosure is
prohibited under the terms of the contract.
For personal use only MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
19
The Group has not otherwise, during or since the end of the financial year, except to the extent permitted by law,
indemnified or agreed to indemnity any current or former officer or auditor of the Group against a liability incurred
as such by an officer or auditor.
Non-audit services
During the previous period, Grant Thornton Audit Pty Ltd, the
addition to their statutory audit duties.
auditors, performed no other services in
Details of the amounts paid to the auditors of the Group, Grant Thornton Audit Pty Ltd, and its related practices
for audit and non-audit services provided during the year are set out in note 16 to the Financial Statements.
on page 20 of this financial report and forms part of this Directors Report.
Proceedings of behalf of the Company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings
on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of
taking responsibility on behalf of the Company for all or part of those proceedings.
Signed in accordance with a resolution of the directors.
Andrew Van Der Zwan
Chairman
28 September 2017
For personal use only The Rialto, Level 30
525 Collins St
Melbourne Victoria 3000
Correspondence to:
GPO Box 4736
Melbourne Victoria 3001
T +61 3 8320 2222
F +61 3 8320 2200
E info.vic@au.gt.com
W www.grantthornton.com.au
Auditor’s Independence Declaration
to the Directors of MRG Metals Ltd
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for
the audit of MRG Metals Ltd for the year ended 30 June 2017, I declare that, to the best of my
knowledge and belief, there have been:
a
no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
b
no contraventions of any applicable code of professional conduct in relation to the audit.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
S C Trivett
Partner - Audit & Assurance
Melbourne, 28 September 2017
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context
requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal
entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s
acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities.
GTIL is not an Australian related entity to Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
20For personal use only MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
21
Corporate Governance Statement
MRG Metals Ltd has adopted comprehensive systems of controls and accountability as the basis for the administration
of corporate governance. To the extent that they are applicable, MRG has adopted the Corporate Governance
Principles and Recommendations as published by ASX Corporate Governance Council on 27 March 2014 and became
effective for financial years beginning on or after 1 July 2014. The Corporate Governance Statement is current at 30
June 2017 and has been approved by the Board of Directors.
ASX Corporate Governance Council
Recommendation
Principle 1: Lay solid foundations for management and oversight
Recommendation 1.1: Companies should establish
functions reserved to the board and those delegated to
senior executives and disclose those functions.
MRG policy
The Company's Corporate Governance framework
includes a Board Charter, which details the specific
responsibilities of the Board and identifies those
areas of authority delegated to senior executives.
The Company's Board Charter provides
that
appropriate checks should be undertaken before the
appointment of a director.
If checks reveal any information that is relevant , then
the Company will disclose that information to
Shareholders.
The Company's Board Charter sets provides that all
directors and senior executives, at the time of their
appointment, should execute a written agreement
that sets out the key terms of their appointment.
The Company's Board Charter sets out the role of
the Company Secretary and ensures that the
Company Secretary is accountable to the Board,
through the Chairman.
The Company's Diversity Policy requires the Board
to set out measurable objectives for achieving gender
diversity. The Diversity Policy requires the Board to
annually assess its diversity objectives and report on
the Company's progress
those
objectives. At the end of each reporting period, the
Diversity Policy requires the Company to report on
its progress and set out the respective proportion of
men and women across the whole of the Company
(including their representation in key management
positions)
in achieving
Recommendation 1.2: Companies should:
-
undertake appropriate checks before appointing
a person, or putting forward to security holders
a candidate for election as a director; and
- provide security holders with all material
information it its possession relevant to a
decision on whether or not to elect or re-elect a
director.
Recommendation 1.3: Companies should have a
written agreement with each director and senior
executive setting out the terms of their appointment.
Recommendation 1.4: Company Secretaries should be
accountable directly to the Board, through the Chair, on
all matters to do with the proper functioning of the
Board.
Recommendation 1.5: Companies should:
- have a diversity policy which includes
-
-
requirements for the Board or a relevant
committee of the Board to set measurable
objectives for achieving gender diversity and to
access annually both the objectives and the
progress in achieving them;
disclose the diversity policy or a summary of the
policy;
disclose, at the end of each reporting period, the
measurable objectives for achieving gender
diversity set by the Board or a relevant
committee of the Board, in accordance with the
diversity policy, and its progress towards
achieving them, and either:
-
the respective proportions of men and
women on the Board, in senior executive
positions and across the whole organisation
(including how the company has defined
"senior executive" for these purposes); or
For personal use only MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
ASX Corporate Governance Council
Recommendation
-
if the Company is a "relevant employer"
under the Workplace Gender Equality Act,
the Company's most recent "Gender
Equality Indicators" as defined in and
published under that Act.
Recommendation 1.6: Companies should:
- have and disclose a process for periodically
evaluating the performance of the Board, its
committees and individual directors;
disclose, in relation to each reporting period,
whether a performance evaluation was
undertaken in the reporting period in accordance
with that process.
-
Recommendation 1.7: Companies should:
- have and disclose a process for periodically
evaluating the performance of its senior
executives; and
disclose, in relation to each reporting period,
whether a performance evaluation was
undertaken in the reporting period in accordance
with that process
-
Principle 2: Structure the board to add value
Recommendation 2.1: Companies should:
- have a nominations committee which:
- has at least three members, a majority of
whom are independent directors; and
is chaired by an independent director.
-
The Company should disclosed:
- The charter of the nomination committee;
- The members of the nomination committee; and
-
as at the end of each reporting period, the
number of times the nomination committee met
through the period and the individual
attendances of the members at those meetings;
or
if the Company does not have a nomination committee
disclose, that fact, and the process it employs to address
Board successions issues and to ensure that the Board
has appropriate balance of skills knowledge, experience,
independence and diversity to enable it to discharge its
duties and responsibilities effectively
Recommendation 2.2: Companies should have and
disclose a Board skills matrix setting out the mix of
skills and diversity that the Board currently has or is
looking to achieve in its membership.
22
MRG policy
The Company Secretary plays an integral role in
monitoring the conduct and activities of Board,
ensuring the Board has an appropriate mix of skills
and experience and reviewing individual director's
performance.
The Chairman is responsible for reviewing the
performance of the Company Secretary.
The Chairman is responsible for reviewing the
individual performance of senior executives.
The Company does not currently have a nomination
committee. The Board does not consider it necessary
given the size of the Company's current operations.
Board appointments will be decided by the Board as
a whole, taking into consideration the needs of the
Company at the relevant time. Where the Company
considers there is a need to review the skills and
competencies of the existing Directors and to
supplement that experience, the Company would
consider engaging appropriately qualified third
parties to assist with the review. The Company's
Board Charter requires the Board to develop
succession plans for the future management of the
Company.
The Company's Board Charter sets out the directors'
obligations to prepare and disclose a Board skills
matrix.
For personal use only MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
ASX Corporate Governance Council
Recommendation
Recommendation 2.3: Companies should disclose:
-
-
-
the names of directors considered by the Board
to be independent directors;
If a director has an interest, position, association
or relationship of a type set out in Box 2.3 of the
Third Edition of the Recommendations, but the
Board is of the opinion that it does not
compromise the independence of the director,
the nature of the interest, position, association
or relationship in question and an explanation of
why the Board is of that opinion; and
the length of service of each director.
Recommendation 2.4: The majority of the Board of a
Company should be independent directors.
Recommendation 2.5: The Chairman of the Board
should be an independent director and, in particular,
should not be the same person as the CEO of the
Company.
Recommendation 2.6: Companies should have a
program for inducting new directors and provide
appropriate professional development opportunities
for directors to develop and maintain the skills and
knowledge needed to perform their role as directors
effectively.
23
MRG policy
The Company's Board Charter sets out the directors'
obligations in relation to conflicts of interests and the
disclosure requirements of the Board.
All of the Company's current directors, being Chris
Gregory, Andrew Van Der Zwan and Shane Turner,
are independent directors.
Andrew Van Der Zwan, an independent director, is
the Chairman of the Board.
The Company's Board Charter requires the Board to
implement an induction procedure to assist newly
appointed directors to gain an understanding of the
Company's polices and procedures. In addition, the
Board Charter requires the Board to develop
continuing education opportunities in order to
provide the directors with the ability to enhance their
skills.
Principle 3: Promote ethical and responsible decision making
Recommendation 3.1: Companies should:
- have a code of conduct for its directors, senior
executives and employees; and
disclose that code or a summary of it.
-
The Board has established a Code of Conduct as to
the practices necessary to maintain confidence in the
Company's integrity, practices necessary to take into
account the Company's legal obligations and the
reasonable expectations of shareholders and the
responsibility and accountability of individuals for
reporting and investigating reports of unethical
practices.
The Code of Conduct will be available on the
Company's website.
The Company does not currently have an audit
committee. The Board does not consider it necessary
given the size of the Company's current operations.
The functions of this committee will be carried out
by the whole Board. The Company Secretary has
significant experience in financial and accounting
matters and will be primarily responsible for
monitoring and preparing the financial reports.
External resources will be commissioned where
necessary.
The Company's process and practices comply with
the Recommendation. In particular, the CFO of the
Principle 4: Safeguard integrity in financial reporting
Recommendation 4.1: The Board should establish an
audit committee. If the Company does not have an
audit committee, disclose that fact, and the process it
employs to independently verify and safeguard the
integrity of its corporate reporting, including the
process for the appointment and removal of the
external auditor and the rotation of the audit
engagement partner.
Recommendation 4.2: The Board should, before it
approves the company’s financial statements for a
For personal use only MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
ASX Corporate Governance Council
Recommendation
financial period, receive from its CEO and CFO a
declaration that, in their opinion, the financial records
of the company have been properly maintained and that
the financial statements comply with the appropriate
accounting standards and give a true and fair view of
the financial position and performance of the company
and that the opinion has been formed on the basis of a
sound system of risk management and internal control
which is operating effectively.
Recommendation 4.3: Companies that have AGMs
should ensure that their external auditors attend their
AGMs and are available to answer questions from
security holders relevant to the audit
Principle 5: Make timely and balanced disclosure
Recommendation 5.1: Companies should:
-
- have a written policy for compliance with its
continuous disclosure obligations under the
ASX Listing Rules; and
disclose that policy or a summary of it.
Principle 6: Respect the rights of shareholders
Recommendation 6.1: Companies should provide
information about itself and its governance to investors
via its website.
Recommendation 6.2 Companies should design and
implement an investor relations program to facilitate
effective two-way communication with investors.
Recommendation 6.3: Companies should disclose the
policies and processes it has in place to facilitate and
encourage participation at meetings of security holders
Recommendation 6.4: Companies should give
security holders the option to receive communications
from, and send communications to, the Company and
its security registry electronically.
Principle 7: Recognise and manage risk
Recommendation 7.1: Companies should have a
committee to oversee risk. If a Company does not have
a risk committee, it must disclose that fact, and the
processes it employs for overseeing the Company's risk
management framework.
Recommendation 7.2: Companies should:
-
review their risk management framework at least
annual to satisfy that the continue to be sound;
and
24
MRG policy
Company provides a declaration in relation to the
Company's financial statements that, in his opinion,
the financial records of the Company have been
maintained and that the financial statements comply
with appropriate accounting standards and give a true
the financial position and
and fair view of
performance of the Company and that the opinion
has been formed on the basis of a sound system of
risk management and internal control which is
operating effectively.
As a matter of practice, the Company invites the
external auditors of the Company to attend the AGM
of the Company. The security holders are provided
with an opportunity to ask questions of the external
auditors at the AGM.
The Company has established a Continuous
Disclosure Policy which applies to all directors and
senior management.
A copy of the Continuous Disclosure Policy has been
made available on the Company's website.
The Company's Continuous Disclosure Policy
requires the Company to include all of its corporate
governance policies on its websites.
The Company's Board Charter sets out the manner
in which the Board should endeavor to communicate
with its shareholders and the manner in which
shareholders can make enquiries to the Company.
The Company's Board Charter sets out
the
Company's goal to encourage participation at general
meetings.
The Company's Board Charter addresses the means
to effectively communicate with shareholders.
Given the size of the Company's current operations,
the Board has formed the view that a separate risk
committee is not necessary. The Board itself
monitors all areas of operational and financial risk
and considers strategies
risk
management arrangements on an ongoing basis. If
considered necessary, external input will be sought to
assess and counteract identified risks.
for appropriate
The Board requires that Andrew Van Der Zwan, as
Chairman undertakes a review of the Company's risk
management framework annually to ensure that the
framework continues to be sound, and disclose, in
relation to each reporting period, whether such a
review has taken place.
For personal use only MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
ASX Corporate Governance Council
Recommendation
-
disclose in relation to each reporting period,
whether such a review has taken place.
Recommendation 7.3: Companies should:
-
-
if they have an internal audit function, how the
function is structured and what role it performs;
or
if they do not have an internal audit function,
that fact and the process they employ for
evaluating and continually improving
effectiveness of their risk management and
internal control process.
Recommendation 7.4: Companies should disclose
whether they have any material exposure to economic,
environmental and social sustainability risks and, if it
does, how it manages or intends to manage those risk.
Principle 8: Remunerate fairly and responsibly
Recommendation 8.1: The Board should establish a
remuneration committee.
If the Company does not have a remuneration
committee, disclose that fact and the process it employs
for setting the level and composition of remuneration
for directors and senior executives and ensure that such
remuneration is appropriate and not excessive.
Recommendation 8.2: Companies should separately
disclose
its policies and practices regarding the
remuneration of non-executive directors and the
remuneration of executive directors and other senior
executives.
25
MRG policy
Given the size of the Company's current operations,
the Board has formed the view that the appointment
of an internal auditor is not necessary. The Board
will oversee the risk management and internal control
process. If considered necessary, external input will
be sought to assess and review the effectiveness of
the Company's risk management and internal control
process.
The Board will be responsible for disclosing whether
the Company has any material exposure to economic,
environmental and social responsibility risks and, if it
does, how it intends to manage those risks.
relation
remuneration packages.
The Company does not currently have a
remuneration committee. The Board does not
consider it necessary given the size of the Company's
current operations. The Board is responsible for
making recommendations regarding director and
management
The
Company's Board Charter sets out the principles that
should be considered by the Board in making
to management
in
recommendations
remuneration packages.
The Board
is aware of the need to ensure
remuneration remains competitive and consistent
with competitor companies and that remuneration
reflects the performance of the Company over time.
The directors performing an executive role are
their
remunerated based on
the
responsibilities and
Company.
Non-executive directors are paid fees within the total
as determined by shareholders.
The Company will provide the requisite disclosure
regarding executive remuneration policies in its
annual report.
the performance of
scope of
the
Recommendation 8.3: Companies which have equity
based remuneration schemes should:
-
-
have a policy on whether participants are
permitted to enter into transactions (whether
through the use of derivatives or otherwise)
which limit the economic risk of participating in
the scheme; and
disclose the policy or a summary of it.
The Share Trading Policy of the Company prohibits
employees of the Company from entering into any
transaction which would have the effect of hedging
or otherwise transferring to any person the risk of
any fluctuation in the value of any unvested
entitlement in the Company.
The Board actively monitors the Company's governance framework, related practices and overall culture.
For personal use only MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
Statement of Financial Position
As of 30 June 2017
Assets
Current
Cash and cash equivalents
Other receivables
Total current assets
Non-current
Plant & Equipment
Exploration & Evaluation
Option
Total non-current assets
Total assets
Liabilities
Current
Trade and other payables
Total current liabilities
Total liabilities
Net assets
Equity
Share capital
Reserve
Retained earnings
Total equity
26
Notes
Consolidated
2017
$
Consolidated
2016
$
9
8
12
13
14
11
10
10
579,964
728,503
1,308,467
1,809
3,056,142
-
3,057,951
4,366,418
72,206
580,719
652,925
1,613
2,191,582
75,000
2,268,195
2,921,120
132,843
132,843
132,843
4,233,575
289,374
289,374
289,374
2,631,746
18,104,748
703,174
(14,574,347)
15,938,494
1,103,444
(14,410,192)
4,233,575
2,631,746
This statement should be read in conjunction with the notes to the financial statements.
For personal use only MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
27
Statement of Profit or Loss and other
Comprehensive Income
for the year ended 30 June 2017
Revenue
Research & Development Incentive
Other income
Employee benefits expense
Consultants
Promotions expense
Other expenses
Amortisation/Depreciation expenses
Exploration/Tenements write off expenses
(Loss) before tax
Tax expense
(Loss) after tax
Other comprehensive income, net of tax
Total comprehensive (losses)
Earnings per share
Basic earnings per share
Earnings from continuing operations
Diluted earnings per share
Earnings from continuing operations
Notes
Consolidated
2017
$
Consolidated
2016
$
6
13
15
17
9,799
174,452
26,181
(248,390)
(295,307)
(65,754)
(190,203)
(975)
-
(590,197)
-
(590,197)
-
(590,197)
3,714
215,745
21,600
(306,594)
(273,461)
(84,513)
(197,507)
(532)
(1,400,772)
(2,022,320)
-
(2,022,320)
-
(2,022,320)
Cents
Cents
(0.21)
(0.21)
(1.49)
(1.49)
This statement should be read in conjunction with the notes to the financial statements.
For personal use only MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
28
Statement of Changes in Equity
for the year ended 30 June 2017
Share
Capital
$
Share
based
payments
$
Retained
earnings
$
Total
equity
$
Balance at 1 July 2015
Adjustment to prior period (Note 5)
Loss after income tax expense for the period
Transactions with owners
Issue of share capital
16,364,536
-
677,402
Balance at 30 June 2016
17,041,938
Balance at 1 July 2016
Issue of share capital
Transaction costs
Share based payments
Lapsed options
Loss after income tax expense for the period
17,041,938
2,264,121
(97,867)
-
(426,042)
-
-
-
-
-
-
-
-
-
25,772
-
(11,841,687)
4,522,849
(546,185)
(546,185)
(2,022,320)
(2,022,320)
-
677,402
(14,410,192)
2,631,746
(14,410,192)
-
-
-
426,042
(590,197)
2,631,746
2,264,121
(97,867)
25,772
-
(590,197)
Balance at 30 June 2017
18,782,150
25,772
(14,574,347)
4,233,575
This statement should be read in conjunction with the notes to the financial statements.
For personal use only MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
Statement of Cash Flows
for the year ended 30 June 2017
Operating activities
Interest received
Sale of Data
Research & Development Incentive
Government Drilling Grants
Payments to suppliers and employees
Net cash used in operating activities
Investing activities
Payment for exploration & evaluation
Payment for plant & equipment
Net cash used in investing activities
Financing activities
Proceeds from issue of capital (1)
Payment of transaction costs
Net cash from financing activities
Net change in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
29
Notes
Consolidated
2017
$
Consolidated
2016
$
18
9,799
25,000
551,680
-
(1,453,324)
(866,845)
6,295
-
455,357
116,640
(1,410,718)
(832,426)
(691,942)
(1,172)
(693,114)
(178,427)
(2,145)
(180,572)
2,128,121
(60,404)
2,067,717
704,081
(29,016)
675,065
507,758
(337,933)
9
72,206
579,964
410,139
72,206
(1) The Group also had non-cash activities in the form of issuance of shares to the value of $100,000
as consideration for tenement acquisitions, $52,000 as consideration for corporate advisory services
and $36,000 as consideration for geological services rendered.
This statement should be read in conjunction with the notes to the financial statements.
For personal use only MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
30
Notes to the consolidated financial statements
Nature of operations
1
The activities of MRG Metals Ltd and its subsidiaries, MRG Metals (Australia) Pty Ltd and MRG Metals
(Exploration) Pty Ltd are exploration and development of gold, base metals and other commodities
within Australia.
General information and statement of compliance
2
The consolidated general purpose financial statements of the Group have been prepared in accordance
with the requirements of the Corporations Act 2001, Australian Accounting Standards and other
authoritative pronouncements of the Australian Accounting Standards Board. Compliance with
Australian Accounting Standards results in full compliance with the International Financial Reporting
Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
MRG Metals Ltd is the Group's ultimate parent company. MRG Metals Ltd is a public company
incorporated and domiciled in Australia.
The consolidated financial statements for the year ended 30 June 2017 were approved and authorised for
issue by the board of directors on 28 September 2017 (see note 26).
3
New Accounting Standards and Interpretations not yet mandatory or early
adopted
AASB 9 Financial instruments
AASB 9 introduces new requirements for the classification and measurement of financial assets and
liabilities and includes a forward-
approach to hedge accounting.
-changed
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:
Financial assets that are debt instruments will be classified based on: (i) the objective of the
entity
contractual cash flows.
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.
Introd
particular simple debt instruments.
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.
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.
For personal use only 31
MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
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.
When this standard is first adopted for the year ending 30 June 2019, there will be no material impact on
the transactions and balances recognised in the financial statements.
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.
AASB 15 Revenue from contracts with customers
AASB 15 replaces AASB 118 Revenue, AASB 111 Construction Contracts and some revenue related
Interpretations and:
- Establishes a new revenue recognition model
- Changes the basis for deciding whether revenue is to be recognised over time or at a point in
time
- Provides new and more detailed guidance on specific topics (e.g. multiple element arrangements,
variable pricing, rights of return, warranties and licensing)
- Expands and improves disclosures about revenue.
When this Standard is first adopted for the year ending 30 June 2019, there will be no material impact on
the transactions and balances recognised in the financial statements.
AASB 16
AASB 16 replaces AASB 117 Leases and some lease-related Interpretations and:
• 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
When this Standard is first adopted for the year ending 30 June 2020, there will be no material impact on
the transactions and balances recognised in the financial statements
Summary of accounting policies
Overall considerations
4
4.1
The significant accounting policies that have been used in the preparation of these consolidated financial
statements are summarised below.
The consolidated financial statements have been prepared using the measurement bases specified by
Australian Accounting Standards for each type of asset, liability, income and expense. The measurement
bases are more fully described in the accounting policies below.
Presentation of financial statements
4.2
AASB 101 requires two comparative periods to be presented for the statement of financial position in
certain circumstances.
For personal use only MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
32
4.3 Basis of measurement
Going Concern
The Group recorded a loss after tax of $590,197 and net cash outflows from operating and investing
activities were $1,559,959
2017 was as follows:
The Group had available cash reserves of $579,964;
1,308,467 exceed current liabilities of $132,843 by $1,175,624;
income, rather it is reliant on Research and Development tax refund, equity raisings or funds from
other external sources to fund its activities.
Current forecasts indicate that cash on hand as at 30 June 2017 will not be sufficient to fully fund the
planned exploration and operational activities during the next twelve months. Accordingly, the Group
will be required to secure additional funding in order to undertake the planned exploration and
operational activities or reduce or defer expenditure.
ollows:
The Group had available cash reserves of $381,738;
The Group continued to have a positive working capital position; and
-cancellable commitments since
30 June 2017.
The Directors are confident that the Group will be able to secure sufficient funds or reduce or defer
expenditure to ensure that the Group can meet essential operational and expenditure commitments for
at least the next twelve months.
Accordingly, the financial statements for the year ended 30 June 2017 have been prepared on a going
concern basis as, in the opinion of the Directors, the Group will be in a position to continue to meet
its essential operating costs and pay its debts as and when they fall due for at least twelve months from
the date of this report.
However, the Directors recognise that if further funding is required and is not subsequently secured,
the outcome of which is uncertain until such funding is secured, there is a material uncertainty as to
whether the going concern basis of accounting is appropriate. As a result, the Group may be required
to relinquish title to certain tenements, significantly curtail further expenditures and may have to realise
its assets and extinguish its liabilities other than in the ordinary course of business and at amounts
different from those stated in the financial report.
Basis of consolidation
4.4
The Group financial statements consolidate those of the parent company and its subsidiary undertakings
drawn up to 30 June 2017. The parent 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. All subsidiaries have a reporting date of 30 June.
All transactions and balances between Group companies are eliminated on consolidation, including
unrealised gains and losses on transactions between Group companies. Amounts reported in the
financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the
accounting policies adopted by the Group.
Profit or loss and other comprehensive income of subsidiaries acquired or disposed of during the year
are recognised from the effective date of acquisition, or up to the effective date of disposal, as
applicable.
For personal use only 33
MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
4.5
Segment reporting
the same basis as the internal reports provided to chief operating decision makers, being the Board of
Directors. The Board of Directors are responsible for the allocation of resource to operating segments
and assessing their performance.
4.6
Interest income is recognised on an accrual basis using the effective interest method.
Revenue
Operating expenses
4.7
Operating expenses are recognised in profit or loss upon utilisation of the service or at the date of their
origin.
Exploration and evaluation
4.8
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of
interest. These costs are only carried forward to the extent that they are expected to be recouped
through the successful development of the area or where activities in the area have not yet reached a
stage that permits reasonable assessment of the existence of economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit or loss in the
year in which the decision to abandon the area is made.
A regular review for impairment is undertaken of each area of interest to determine the appropriateness
of continuing to carry forward costs in relation to that area of interest.
Income taxes
4.9
Tax expense recognised in profit or loss comprises the sum of deferred tax and current tax not
recognised in other comprehensive income or directly in equity.
Current income tax assets and/or liabilities comprise those obligations to, or claims from, the Australian
Taxation Office (ATO) and other fiscal authorities relating to the current or prior reporting periods, that
are unpaid at the reporting date. Current tax is payable on taxable profit, which differs from profit or
loss in the financial statements. Calculation of current tax is based on tax rates and tax laws that have
been enacted or substantively enacted by the end of the reporting period.
Deferred income taxes are calculated using the liability method on temporary differences between the
carrying amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on
the initial recognition of goodwill, or on the initial recognition of an asset or liability unless the related
transaction is a business combination or affects tax or accounting profit. Deferred tax on temporary
differences associated with investments in subsidiaries and joint ventures is not provided if reversal of
these temporary differences can be controlled by the Group and it is probable that reversal will not
occur in the foreseeable future.
Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to
apply to their respective period of realisation, provided they are enacted or substantively enacted by the
end of the reporting period. Deferred tax liabilities are always provided for in full.
Deferred tax assets are recognised to the extent that it is probable that they will be able to be utilised
against future taxable income.
For personal use only 34
MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
Deferred tax assets and liabilities are offset only when the Group has a right and intention to set off
current tax assets and liabilities from the same taxation authority.
Changes in deferred tax assets or liabilities are recognised as a component of tax income or expense in
profit or loss, except where they relate to items that are recognised in other comprehensive income (such
as the revaluation of land) or directly in equity, in which case the related deferred tax is also recognised
in other comprehensive income or equity, respectively.
Cash and cash equivalents
4.10
Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term,
highly liquid investments that are readily convertible into known amounts of cash and which are subject
to an insignificant risk of changes in value.
4.11
Other receivables are recognised at amortised cost, less any impairment.
Other Receivables
Trade Payables
4.12
These amounts represent liabilities for goods and services provided to the Group prior to the end of the
financial period and which are unpaid. Due to their short term nature they are measured at amortised
cost and not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.
Earnings per share
4.13
Basic earnings per share is calculated by dividing the profit attributable to the owners of MRG Metals
Ltd, excluding any costs of servicing equity other than ordinary shares, by the weighted average number
of ordinary shares outstanding during the financial period, adjusted for bonus elements in ordinary
shares issued during the financial period.
Diluted earnings per share adjust the figures used in the determination of basic earnings per share to take
into account the after income tax effect of interest and other financing costs associated with dilutive
potential ordinary shares and the weighted average number of shares assumed to have been issued for
no consideration in relation to dilutive potential ordinary shares.
Equity
4.14
Share capital represents the nominal value of shares that have been issued. Any transaction costs
associated with the issuing of shares are deducted from share capital, net of any related income tax
benefits.
Retained earnings include all current and prior period retained profits.
4.15
The Group provides post employment benefits through various accumulation funds.
Post employment benefits
An accumulation fund is a superannuation fund under which the Group pays fixed contributions into an
independent entity. The Group has no legal or constructive obligations to pay further contributions
after its payment of the fixed contribution. Contributions to the funds are recognised as an expense in
the period that relevant employee services are received.
Provisions, contingent liabilities and contingent assets
4.16
Provisions are recognised when present obligations as a result of a past event will probably lead to an
outflow of economic resources from the Group and amounts can be estimated reliably. Timing or
amount of the outflow may still be uncertain. Provisions are not recognised for future operating losses.
Provisions are measured at the estimated expenditure required to settle the present obligation, based on
the most reliable evidence available at the reporting date, including the risks and uncertainties associated
For personal use only 35
MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
with the present obligation. Where there are a number of similar obligations, the likelihood that an
outflow will be required in settlement is determined by considering the class of obligations as a whole.
Provisions are discounted to their present values, where the time value of money is material.
All provisions are reviewed at each reporting date and adjusted to reflect the current best estimate.
Possible inflows of economic benefits to the Group that do not yet meet the recognition criteria of an
asset are considered contingent assets.
Goods and Services Tax (GST)
4.17
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of
GST incurred is not recoverable from the Tax Office. In these circumstances the GST is recognised as
part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables
in the statement of financial position are shown inclusive of GST.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST
components of investing and financing activities, which are disclosed as operating cash flows.
4.18
Significant management judgement in applying accounting policies
The following are significant management judgements in applying the accounting policies of the Group
that have the most significant effect on the financial statements.
Deferred tax assets/Tax losses
The assessment of the probability of future taxable income in which deferred tax assets can be utilised is
based on the Group's latest approved budget forecast, which is adjusted for significant non-taxable
income and expenses and specific limits to the use of any unused tax loss or credit. The tax rules in the
numerous jurisdictions in which the Group operates are also carefully taken into consideration. If a
positive forecast of taxable income indicates the probable use of a deferred tax asset, especially when it
can be utilised without a time limit, that deferred tax asset is usually recognised in full. The recognition
of deferred tax assets that are subject to certain legal or economic limits or uncertainties is assessed
individually by management based on the specific facts and circumstances.
The Group has not recognised a deferred tax asset with regard to unused tax losses and other temporary
differences, as it has not been determined whether the Company will generate sufficient taxable income
against which the unused tax losses and other temporary differences can be utilised in the foreseeable
future.
Estimation uncertainty
When preparing the financial statements management undertakes a number of judgements, estimates
and assumptions about recognition and measurement of assets, liabilities, income and expenses.
The actual results may differ from the judgements, estimates and assumptions made by management,
and will seldom equal the estimated results.
Information about significant judgements, estimates and assumptions that have the most significant
effect on recognition and measurement of assets, liabilities, income and expenses is provided below.
Exploration and evaluation assets
At each reporting date, the directors review the carrying amount of each area of interest, with reference
to the indicators of impairment outlined in AASB 6 Exploration for and Evaluation of Mineral
Resources. No indicators of impairment were noted in the current period.
For personal use only MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
36
4.18 Other intangible assets
Recognition of other intangible assets
When an intangible asset is disposed of, the gain or loss on disposal is determined as the difference
between the proceeds and the carrying amount of the asset, and is recognised in profit or loss within
other income or other expenses.
4.19 Impairment testing of goodwill, other intangible assets and property, plant and
equipment
For impairment assessment purposes, assets are grouped at the lowest levels for which there are largely
independent cash inflows (cash-generating units). As a result, some assets are tested individually for
impairment and some are tested at cash-generating unit level. Goodwill is allocated to those cash-
generating units that are expected to benefit from synergies of the related business combination and
represent the lowest level within the Group at which management monitors goodwill.
All individual assets or cash-generating units are tested for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable.
An
amount exceeds its recoverable amount, which is the higher of fair value less costs to sell and value-in-
use. To determine the value-in-use, management estimates expected future cash flows from each cash-
generating unit and determines a suitable interest rate in order to calculate the present value of those
cash flows. The data used for impairment testing procedures are directly linked to the Group's latest
approved budget, adjusted as necessary to exclude the effects of future reorganisations and asset
enhancements. Discount factors are determined individually for each cash-generating unit and reflect
h as market and asset-specific risks factors.
-generating unit's carrying
Impairment losses for cash-generating units reduce first the carrying amount of any goodwill allocated to
that cash-generating unit. Any remaining impairment loss is charged pro rata to the other assets in the
cash-generating unit. With the exception of goodwill, all assets are subsequently reassessed for
indications that an impairment loss previously recognised may no longer exist. An impairment charge is
reversed if the cash-
unt exceeds its carrying amount.
4.20 Government incentives and grants
Government incentives and grants comprise assistance by the Government in the form of transfers of
resources to the Group in return for past or future compliance with certain conditions relating to the
activities of the Group. Government incentives and grants are recognised when there is reasonable
assurance that the Group will comply with the conditions attaching to them and the grants will be received.
Government incentives and grants are recognised in profit or loss on a systematic basis over the periods
in which expenses are recognised for the related costs for which grants are intended to compensate.
5
Adjustment to prior periods
The Research & Development Tax Incentive was accounted for as income in the profit and loss account
on an accruals basis in prior periods. This income should be offset against exploration and evaluation
assets under AASB 120 Accounting for Government Grants, to the extent that the related expenditure is
capitalised. An adjustment has been made to comparative amounts to reflect this accounting treatment.
This accounting treatment has been reflected by restating each of the affected financial statement line
items for comparative periods as follows:
For personal use only MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
Statement of financial position (extract)
Exploration and evaluation asset
Net assets
Retained earnings
Total equity
Statement of profit or loss (extract)
Research & development incentive
Prior period profit or loss impact
Diluted earnings per share (EPS)
6
Revenue
Interest
37
Restated
amount
2,191,582
2,631,746
(14,410,192)
2,631,746
Restated
amount
215,745
(1.49)
Previous
amount
3,073,702
3,513,866
(13,528,072)
3,513,866
Previous
amount
551,680
(1.24)
30 June 2016
Adjustment
(882,120)
(882,120)
(882,120)
(882,120)
Adjustment
(335,935)
(546,185)
(0.25)
Consolidated
2017
$
9,799
9,799
Consolidated
2016
$
3,714
3,714
7
Segment reporting
The Group is organised into one operating segment, which is the exploration and development of Gold,
base metals and other commodities within Australia. This operating segment is based on the internal
reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating
Decision Makers) in assessing performance and in determining the allocation of resources.
8
Other receivables
GST receivables
Prepayments
Research & Development Incentive receivable
Other
Other receivables
The receivables noted above are not impaired nor past due.
Consolidated
2017
$
45,203
-
669,271
14,029
728,503
Consolidated
2016
$
18,277
8,262
551,680
2,500
580,719
For personal use only MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
9
Cash and cash equivalents
Cash and cash equivalents include the following components:
Cash at bank and in hand:
AUD
Short term deposits (AUD)
Cash and cash equivalents
38
Consolidated
2017
$
Consolidated
2016
$
559,855
20,109
579,964
52,097
20,109
72,206
The effective interest rate on short-term bank deposits is 3.00%; these deposits have an average maturity
of 365 days.
10
10.1
Equity
Share capital & reserves
The share capital of MRG Metals Ltd consists of fully paid ordinary shares and options, the shares do
not have a par value. All shares are equally eligible to receive dividends and the repayment of capital and
represent one vote at the shareholders' meeting of MRG Metals Ltd.
Date Issued
Details
SHARES
Total at 1 July 2015
Shares issued and fully paid:
Total share capital at 30 June 2016
OPTIONS
Total at 1 July 2015
15 September 2015 Issued to Shareholders
Total issued options at 30 June 2016
SHARE CAPITAL & RESERVES
Date Issued
Details
SHARES
Total at 1 July 2016
Additions during the year
Costs of raising
Total share capital at 30 June 2017
Quantity
Consolidated
2016
$
135,612,115
15,938,494
135,612,115
15,938,494
44,007,993
72,978,404
116,986,397
Quantity
135,612,115
185,167,644
320,779,759
426,042
677,402
1,103,444
17,041,938
Consolidated
2017
$
15,938,494
2,264,121
(97,867)
18,104,748
For personal use only MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
OPTIONS
Total at 1 July 2016
Lapsed during the year
Total issued options at 30 June 2017
SHARE BASED PAYMENTS RESERVE
Total at 1 July 2016
Created during the year
Total reserve at 30 June 2017
SHARE CAPITAL & RESERVES
39
116,986,397
(44,007,993)
72,978,404
1,103,444
(426,042)
677,402
-
25,772
25,772
18,807,922
Dividends
10.2
No dividends were declared or paid during the year. There are no franking credits outstanding at period
end.
Trade and other payables
11
Trade and other payables recognised in the Statement of Financial Position can be analysed
as follows:
Trade payables
Current
-
- Other payables and accrued expenses
- Accrued Directors fees
- Accrued Consultant fees
12
Plant and equipment
Plant & Equipment
Accumulated Depreciation
13
Exploration and evaluation assets
Cost as at 1 July 2015
Additions
Other exploration costs
Relinquishments
Offset R&D Tax Incentive
Adjustment to prior period (Note 5)
Cost as at 30 June 2016
Consolidated
2017
$
22,673
110,170
-
-
132,843
Consolidated
2016
$
41,474
85,168
106,732
56,000
289,374
Consolidated
2017
$
4,420
(2,611)
1,809
Consolidated
2016
$
3,248
(1,635)
1,613
Consolidated
2016
$
3,960,509
13,956
509,474
(1,410,237)
(335,935)
(546,185)
2,191,582
For personal use only MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
Cost as at 1 July 2016
Additions
Other exploration costs
Offset R&D Tax Incentive
Cost as at 30 June 2017
40
Consolidated
2017
$
2,191,582
210,055
1,149,324
(494,819)
3,056,142
The recoverability of the carrying amount of the exploration and evaluation assets is dependent on
successful development and commercial exploitation, or alternatively, sale of the respective areas of
interest. The relinquishments represents the capitalised amounts written off during the period when
ownership of the tenements is abandoned.
Option
14
The company entered into an Option Agreement on 23 June 2014 for the right to acquire tenements
adjacent to its Yardilla tenement in the South Fraser Range area of Western Australia. The cost of the
Option was $75,000 ($25,000 cash and $50,000 shares). The Option gave the Company the right to
acquire the tenements within 2 years for $100,000 of shares in the Company. This Option was exercised
during the year for consideration of 5,555,556 shares. Upon a decision to mine, another $500,000 of
shares in the Company are payable.
Income tax expense
15
The relationship between the expected tax expense based on the tax rate of MRG Metals Ltd and the
reported tax expense in profit or loss can be reconciled as follows, also showing major components of
tax expenses:
Profit/(loss) before tax
Expected tax expense/(benefit) @ 27.5%
Adjustment for non-deductible expenses:
- Movement in accruals
-
Exploration and evaluation expenses
Adjustment for non-assessable income:
- Movement in other receivables
Current period tax (loss) not recognised
Deferred tax expense:
Temporary differences
-
- Unused tax losses
Deferred tax assets not recognised
Consolidated
2017
$
(590,197)
(162,304)
Consolidated
2016
$
(2,022,320)
(606,696)
6,876
-
(40,641)
(196,069)
(196,069)
(33,765)
196,069
162,304
(4,555)
(152,842)
13,860
(750,233)
(750,233)
(143,537)
750,233
606,696
The above potential tax benefit has not be recognised as the recovery is uncertain.
The carry forward tax losses at 30 June 2017 were $13,553,595.
For personal use only 41
MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
The taxation benefit of tax losses and temporary differences not brought to account will only be
obtained if:
-
-
-
the Group derives future assessable income of a nature and an amount sufficient to enable the
benefit from the deductions for the losses to be realised;
the Group continues to comply with the conditions for deductibility imposed by law; and
no change in tax legislation adversely affects the Group in realising the benefits from deducting
the tax losses.
16
Auditor remuneration
Audit services
Auditors of MRG Metals Ltd
Grant Thornton
- Audit and review of the financial reports
Audit services remuneration
Other services
Consolidated
2017
$
Consolidated
2016
$
38,500
38,500
-
38,500
30,000
30,000
-
30,000
Earnings per share
17
The weighted average number of shares for the purposes of diluted earnings per share can be
reconciled to the weighted average number of ordinary shares used in the calculation of basic
earnings per share as follows:
Loss after income tax
Weighted average number of shares used in basic earnings per share
Weighted average number of shares used in diluted earnings per share
Earnings Per Share
Diluted Earnings Per Share
Consolidated
2017
$
(590,197)
283,619,488
283,619,488
Consolidated
2016
$
(2,022,320)
135,612,115
135,612,115
(0.21) cents
(0.21) cents
(1.49) cents
(1.49) cents
The rights to options held by option holders have not been included in the weighted average number of
ordinary shares for the purposes of calculating diluted EPS as they do not meet the requirements for the
. The rights to options are non-dilutive as the Group is loss
generating.
For personal use only MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
18
Reconciliation of cash flows from operating activities
Cash flows from operating activities
(Loss) after income tax expense for the year
Cash flows excluded from loss attributable to operating activities
Non cash flows in loss:
Amortisation/Depreciation
Write off deferred exploration and evaluation expenditure
Change in other assets and liabilities:
(Increase)/decrease in trade and other receivables
(Increase)/decrease in other assets and prepayments
Increase/(decrease) trade and other payables
Net cash used in operating activities
19
The Parent entity is MRG Metals Ltd.
Related party transactions
42
Consolidated
2017
$
Consolidated
2016
$
(590,197)
(2,022,320)
975
-
(156,046)
8,262
(129,839)
(866,845)
532
1,407,150
41,273
3,645
(262,706)
(832,426)
MRG Metals Ltd owns 100% of the shares of MRG Metals (Australia) Pty Ltd.
MRG Metals Ltd owns 100% of the shares of MRG Metals (Exploration) Pty Ltd.
MRG Metals (Australia) Pty Ltd and MRG (Exploration) Pty Ltd own the mining tenements and have
no other Assets or Liabilities.
The Group's related parties include its key management and others as described in Note 19.2.
Unless otherwise stated, none of the transactions incorporate special terms and conditions and no
guarantees were given or received.
19.1
The following transactions occurred with related parties:
Transactions with related parties
Payment for goods and services:
The Group used the accounting and taxation services of RSM Australia, an entity associated with Mr.
Turner and Mr. Turner. The amounts billed were based on normal market rates and amounted to
$41,000 (2016 $44,601).
Receivable from and payable to related parties
There were no trade receivable from or trade payables to related parties.
Loans to/from related parties
There were no loans to or from related parties at the reporting date.
Terms and conditions
All transactions are made on normal commercial terms and conditions and at market rates.
For personal use only MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
Transactions with key management personnel
19.2
Key management of the Group are the Board of Directors. Key management personnel remuneration is
43
Equity instruments held by KMP
19.3
The number of shares in the Company by each of the key management personnel of the Group,
including their related parties are set out below:
Year ended 30 June 2017
Key
Management
Person
Van Der Zwan
Turner
Gregory
Weston
Year ended 30 June 2016
Key
Management
Person
Weston
Van Der Zwan
Turner
Gregory
Balance at
start of
year
2,375,000
1,652,900
12,449,900
100,000
16,577,800
Balance at
start of
year
100,000
2,375,000
1,652,900
12,449,900
16,577,800
Received
on
exercise
-
-
-
-
-
Other
changes
-
-
-
(100,000)
-
Additions
4,812,500
3,652,900
12,449,900
-
20,915,300
Received
on
exercise
-
-
-
-
-
Other
changes
-
-
-
-
-
Additions
-
-
-
-
-
Held at
the end of
the
reporting
period
7,187,500
5,305,800
24,899,800
-
37,393,100
Held at
the end of
the
reporting
period
100,000
2,375,000
1,652,900
12,449,900
16,577,800
The number of options in the Company by each of the key management personnel of the Group,
including their related parties are set out below:
Year ended 30 June 2017
Key
Management
Person
Van Der Zwan
Turner
Gregory
Weston
Balance
at start of
year
4,670,000
2,255,000
8,300,000
88,688
15,313,688
Deleted
on
Additions
-
-
-
-
-
exercise Ceased/Lapsed
(1,080,000)
(735,000)
-
(88,688)
(1,903,688)
-
-
-
-
-
Held at
the end of
the
reporting
period
3,590,000
1,520,000
8,300,000
-
13,410,000
For personal use only 44
MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
Year ended 30 June 2016
Key
Management
Person
Weston
Van Der Zwan
Turner
Gregory
Balance
at start of
year
-
1,080,000
735,000
-
Deleted
on
exercise
-
-
-
-
Other
changes
-
-
-
-
Additions
88,688
3,590,000
1,520,000
8,300,000
Held at
the end of
the
reporting
period
88,688
4,670,000
2,255,000
8,300,000
1,815,000
13,498,688
-
-
15,313,688
20
There were no contingent assets or liabilities.
Contingent assets and contingent liabilities
21
Commitments for expenditure
Exploration and evaluation:
Within 12 months
2017
$
915,043
915,043
2016
$
406,140
406,140
Exploration and evaluation:
In order to maintain current rights of tenure to exploration tenements, the Group is required to outlay
rentals and to meet the minimum expenditure requirements of the State Mine Departments. Minimum
expenditure commitments may be subject to renegotiation and with approval may otherwise be avoided
by sale, farm out or relinquishment. These obligations are not provided in the accounts and are payable.
22
Financial instrument risk
Risk management objectives and policies
The Group is exposed to various risks in relation to financial instruments. The main types of risks are
market risk (including interest rate risk), credit risk and liquidity risk.
The Group's risk management is carried out by the board of directors, and focuses on actively securing
the Group's short to medium-term cash flows by minimising the exposure to financial markets.
The Group does not engage in the trading of financial assets for speculative purposes nor does it write
options. The most significant financial risks to which the Group is exposed are described below.
For personal use only MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
45
22.1
To date, all of the Group's transactions have been carried out in Australian Dollars.
Foreign currency sensitivity
Interest rate sensitivity
22.2
The Group's only exposure to interest rate risk is in relation to deposits held. Deposits are held with
reputable banking financial institutions.
At 30 June 2017, there was $20,109 on deposit at 3.00% (Note 9).
An increase/decrease by 30% or 0.09 basis points would have a favourable/adverse effect on profit for
the year of $186. The percentage change is based on the expected volatility of interest rates using
Credit risk analysis
22.3
Credit risk is the risk that a counterparty fails to discharge an obligation to the Group. The Group is
exposed to minimal credit risk as its only exposure is to interest receivable and GST refunds.
Liquidity risk analysis
22.4
Liquidity risk is that the Group might be unable to meet its obligations. The Group manages its liquidity
needs by monitoring actual and forecast cash inflows and outflows due in day-to-day business.
The Group's working capital, being current assets less current liabilities, at 30 June 2017 was $1,175,624.
Based on this, the directors are satisfied the Group will have sufficient funds to pay its debts as and
when they fall due.
As at 30 June, the Group's non-derivative financial liabilities have contractual maturities (including
interest payments where applicable) as summarised below:
30 June 2017
Trade and other payables
Total
30 June 2016
Trade and other payables
Total
Current
Non current
Within 6
months
$
132,843
132,843
6 to 12
months
$
-
-
1 to 5 years
$
-
-
Later than 5
years
$
-
-
Current
Non current
Within 6
months
$
289,374
289,374
6 to 12
months
$
-
-
1 to 5 years
$
-
-
Later than 5
years
$
-
-
The above amounts reflect the contractual undiscounted cash flows, which may differ to the carrying
values of the liabilities at the reporting date. Unless otherwise stated, the carrying amounts of financial
instruments reflect their fair values due to their short term nature.
For personal use only MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
46
23
Capital risk management
concern so that it can provide an adequate return to shareholders.
The Group would look to raise capital when an opportunity to invest in a business, company or tenement is
seen as value adding.
24
Since the end of the year the following significant events have occurred:
Post-reporting date events
Approval received for claiming a Research and Development Tax Refund for the 2017 year of
approximately $669,000.
There are no other events occurring since the end of the year that have, or may, significantly affect the
25
Parent entity information
Statement of financial position
Current assets
Total assets
Current liabilities
Total liabilities
Issued capital & reserves
Retained earnings
Statement of comprehensive income
Profit/(loss) for the period
Total comprehensive income
2017
$
1,308,467
4,366,418
132,843
132,843
2016
$
652,925
2,921,120
289,374
289,374
18,807,922
(14,574,347)
4,233,575
17,041,938
(14,410,192)
2,631,746
(590,197)
(590,197)
(2,022,320)
(2,022,320)
Authorisation of financial statements
26
The consolidated financial statements for the year ended 30 June 2017 were approved by the board of
directors on 28 September 2017.
Andrew Van Der Zwan
Chairman
Shane Turner
Director/Secretary
For personal use only MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
47
1. In the opinion of the directors of MRG Metals Ltd:
a
the consolidated financial statements and notes of MRG Metals Ltd are in accordance with the
Corporations Act 2001, including
i.
giving a true and fair view of its financial position as at 30 June 2017 and of its performance for
the financial period ended on that date; and
ii.
complying with Australian Accounting Standards (including the Australian Accounting
Interpretations) and the Corporations Regulations 2001; and
b there are reasonable grounds to believe that MRG Metals Ltd will be able to pay its debts as
and when they become due and payable.
2. The directors have been given the declarations required by Section 295A of the Corporations Act
2001 from the chief executive officer and chief financial officer for the financial period ended 30 June
2017.
3. The consolidated financial statements comply with International Financial Reporting Standards.
Signed in accordance with a resolution of the directors:
Dated at Melbourne, the 28th day of September 2017.
_______________________Andrew Van Der Zwan
Director
For personal use only The Rialto, Level 30
525 Collins St
Melbourne Victoria 3000
Correspondence to:
GPO Box 4736
Melbourne Victoria 3001
T +61 3 8320 2222
F +61 3 8320 2200
E info.vic@au.gt.com
W www.grantthornton.com.au
Independent Auditor’s Report
to the Members of MRG Metals Ltd
Report on the audit of the financial report
Opinion
We have audited the financial report of MRG Metals (the Company) and its subsidiaries (the Group),
which comprises the consolidated statement of financial position as at 30 June 2017, the consolidated
statement of profit or loss and other comprehensive income, consolidated statement of changes in
equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated
financial statements, including a summary of significant accounting policies, and the directors’
declaration.
In our opinion, the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
a Giving a true and fair view of the Group’s financial position as at 30 June 2017 and of its
performance for the year ended on that date; and
b Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Report section of our report. We are independent of the Company in accordance with the independence
requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional
and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that
are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical
responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context
requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal
entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s
acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities.
GTIL is not an Australian related entity to Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
48For personal use only
Material Uncertainty Related to Going Concern
We draw attention to Note 4.3 in the financial statements, which indicates that the Group incurred a net
loss of $590,197 during the year ended 30 June 2017, with the net cash outflow from operating and
investing activities totalling $1,559,959. As stated in Note 4.3, these events or conditions, along with
other matters as set forth in Note 4.3, indicate that a material uncertainty exists that may cast doubt on
the Group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. These matters were addressed in the context of our
audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
In addition to the matter described in the Material Uncertainty Related to Going Concern section we
have determined the matters described below to be the key audit matters to be communicated in our
report.
Key audit matter
How our audit addressed the key audit matter
Valuation of exploration and evaluation
assets - Note 13
In accordance with Accounting Standard 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;
- Enquiring 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; and
• Reviewing the appropriateness of the related
disclosures within the financial statements.
49For personal use only
Information Other than the Financial Report and Auditor’s Report Thereon
The Directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2017, but does not include the
financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any form
of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial report or
our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard
Responsibilities of the Directors’ for the Financial Report
The Directors of the Company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and
for such internal control as the Directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the Directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the Directors either intend to liquidate the Company or to
cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing
and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf.
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 15 to 18 of the directors’ report for the
year ended 30 June 2017.
In our opinion, the Remuneration Report of MRG Metals Ltd, for the year ended 30 June 2017, complies
with section 300A of the Corporations Act 2001.
50For personal use only
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
S C Trivett
Partner - Audit & Assurance
Melbourne, 28 September 2017
51For personal use only MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
ASX Additional Information
Additional information required by the ASX Limited Listing Rules and not disclosed elsewhere in this
report is set out below. The information is effective as at 14 September 2017.
52
Substantial Shareholders
The number of substantial shareholders and their associates are set out below:
Shareholder
P Cozzi
Voting Rights
Ordinary shares
Number of Shares
16,400,000
On show of hands, every member present at a
meeting in person or by proxy shall have one
vote and upon a poll each share shall have one vote
No voting rights
Options
Holding
1
1,000
1,001
5,000
5,001
10,000
100,000
10,001
100,000 and over
Shareholders
26
19
66
253
346
710
There were 284 holders of less than a marketable parcel of ordinary shares.
Twenty largest quoted shareholders
P Cozzi
CJ & M Gregory S/F A/C
El Gaia Holdings P/L
Jolanza P/L
AP Manger
EJ Heymann
Bond Street Custodians Ltd
KV Van Der Zwan Family A/C
Mazarine Investments Ltd
AT Jones
Bond Street Custodians Ltd
TC Wallace
S & E Turner S/F A/C
DM Wilson
Hedt Super P/L
Australian Executors Trustees Ltd
GD Butkeraitis
CE Coghlan
A & J Turner P/L
SG Pattrick
Ordinary Shares
Number Held %of quoted shares
5.11
4.02
3.82
3.74
3.68
3.15
2.44
2.08
2.04
2.03
1.57
1.56
1.19
1.12
0.96
0.95
0.94
0.94
0.93
0.92
43.17
16,400,000
12,899,500
12,249,900
12,000,300
11,798,520
10,090,000
7,819,000
6,683,500
6,530,000
6,501,671
5,050,000
5,000,000
3,805,800
3,585,370
3,080,000
3,037,000
3,016,620
3,000,000
2,990,000
2,940,000
138,477,181
For personal use only
53
MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
Restricted equity securities
Nil
Securities exchange
The Company is listed on the Australian Securities Exchange and shares are quoted under the code
MRQ.
Options
Twenty largest quoted optionholders
Number Held
Tempo Capital P/L
K Grogan
Zaman Perak P/L
CJ & M Gregory S/F A/C
A & K Van Der Zwan S/F A/C
Jolanza P/L
Maplestone P/L
C Williams
SG & EJ Turner S/F A/C
LH Gentry
AMW Investments P/L
R & L Racz S/F A/C
N & S Shaw P/L
Y & JW Bruinsma
PN Tselepi
A & J Turner P/L
Australian Executors Trustees Ltd
S Muffet
SD Vanderfield Foley
Securities exchange
11,304,015
5,990,696
5,420,000
5,000,000
3,500,000
3,300,000
2,250,000
2,075,000
2,000,000
1,500,000
1,400,000
1,000,000
1,000,000
1,000,000
1,000,000
939,972
860,000
853,334
750,000
750,000
51,893,017
%of quoted
options
15.49
8.21
7.43
6.85
4.80
4.52
3.08
2.84
2.74
2.06
1.92
1.37
1.37
1.37
1.37
1.29
1.18
1.17
1.03
1.03
71.12
The Company is listed on the Australian Securities Exchange and options are quoted under the code
MRQOA.
For personal use only 54
Note
MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
Tenements
The Tenements held by the Company at reporting date are as follows:
Project
Yardilla
Yardilla
Yardilla
Xanadu
Xanadu
Xanadu
Xanadu
Xanadu
Xanadu
Xanadu
Xanadu
Xanadu
Xanadu
Xanadu
Xanadu
Xanadu
Xanadu
Xanadu
Kalgoorlie East
Kalgoorlie East
Kalgoorlie East
Kalgoorlie East
Loongana
Loongana
Davenport Downs
Squirrel Hill
Pulchera
Mt Angelay I
Mt Angelay II
Oban
Kamilleroi
Selwyn
Tenement
E28/2368
E63/1626
E28/2338
P52/1366
P52/1367
P52/1368
P52/1369
P52/1372
P52/1373
P52/1374
P52/1375
P52/1376
P52/1377
P52/1378
P52/1379
P52/1380
P52/1381
E52/3065
P26/4015
P26/4016
P26/3693
P26/3694
E69/3104
E69/3288
EPM19306
EPM19470
EPM19471
EPM25884
EPM26167
EPM25883
EPM25885
EPM25887
% Owned
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
For personal use only 55
MRG Metals Ltd
Consolidated Financial Statements
30 June 2017
Corporate Directory
Directors & Secretary
Andrew Van Der Zwan
Non Executive Chairman
Christopher Gregory
Non Executive Director
Shane Turner
Non Executive Director and Company Secretary
Principal place of business
12 Anderson Street West, Ballarat VIC 3350
Telephone: +61 3 5330 5800 Fax: +61 3 5333 1667
Email: info@mrgmetals.com.au, www.mrgmetals.com.au
Registered office
12 Anderson Street West, Ballarat Victoria 3350
PO Box 237, Ballarat VIC 3353
Telephone: +61 3 5330 5800 Fax: +61 3 5333 1667
Corporate accountant and Registered ASIC Agent
RSM Australia
12 Anderson Street West, Ballarat VIC 3350
PO Box 685, Ballarat VIC 3353
Telephone: +61 3 5330 5800 Fax: +61 3 5330 5890
www.rsm.com.au
Solicitors
Gadens
Level 25, 600 Bourke Street, Melbourne VIC 3000
Telephone: +61 3 9252 2555 Fax: +61 3 9252 2500
www.gadens.com
Share Registry
Link Market Services Limited
Central Park, Level 4, 152 St Georges Terrace, Perth WA 6000
Telephone: 1300 554 474
Auditor
Grant Thornton Audit Pty Ltd
Level 30, 525 Collins Street, Melbourne Vic 3000
Telephone (office): +61 3 8663 6000 Fax: +61 3 8663 6333
Website: www.grantthornton.com.au
Stock Exchange Listing
ASX Codes: MRQ, MRQOA
For personal use only