Annual Report
2019
www.bciminerals.com.au
ABN 21 120 646 924
Vast area of mudflats at the Mardie Salt & Potash Project
Contents
Our Company
Chairman’s Report
Managing Director’s Report
Directors’ Report
Remuneration Report
Director’s Declaration
Annual Financial Report
Independent Auditor’s Report
Auditor’s Independence Declaration
Mineral Resources and Ore Reserves
Shareholder Information
Corporate Directory
3
5
6
8
13
19
21
47
52
53
56
57
BCI Minerals Limited Annual Report 2019
1
Geotechnical drilling within the evaporation pond footprint at the
Mardie Salt & Potash Project
2
Our Company
BCI Minerals Limited (ASX:BCI) (“BCI”) is an Australian-
based company that is developing a salt and potash
business supported by iron ore royalty earnings.
BCI is focused on rapidly advancing its 100% owned
Mardie Salt & Potash Project, a potential Tier 1 project
located on the West Pilbara coast in the centre of
Australia’s key salt production region.
Mardie will produce high-purity salt (typically >99.5%
NaCl) and sulphate of potash (“SOP”) (typically >51% K2O)
via solar evaporation of seawater. Using an inexhaustible
resource and a production process driven mainly by
natural solar and wind energy, Mardie is a sustainable
opportunity to supply the salt and potash growth markets
in Asia over many decades.
The long-term demand outlook for both salt and SOP
is positive. Salt is an essential mineral used extensively
in modern life. High purity salt produced at Mardie will
be used in chemical and industrial processes that create
thousands of everyday products. Demand in this market
segment, particularly in Asia, is expected to grow strongly
over the next decade and result in a supply deficit.
Increasing population and urbanisation requires more and
better-quality food to be produced from less arable land.
SOP is a premium fertiliser providing two key nutrients –
potassium and sulphur – which improves plant growth
and makes it drought resistant. SOP is mostly used on
high value crops where yield increases deliver larger
financial benefits.
BCI is focused on rapidly advancing its
100% owned Mardie Salt & Potash Project,
a potential Tier 1 project located on
the West Pilbara coast in the centre of
Australia’s key salt production region.
Following a positive Pre-Feasibility Study in 2018, a Definitive
Feasibility Study on a 4Mtpa salt and 100ktpa SOP operation
is underway and due to be completed in Q1 2020. Key
approvals are expected to be in place by Q2 2020 and a
Final Investment Decision is targeted by Q2 2020.
BCI receives quarterly royalty earnings from Iron Valley,
an iron ore mine located in the Central Pilbara region of
Western Australia which is operated by Mineral Resources
Limited (ASX:MIN) (89Mt JORC Ore Reserve). BCI’s EBITDA
from Iron Valley has ranged from A$5.6-18.3M per annum,
with FY19 delivering A$12.3M.
MARDIE SALT &
POTASH PROJECT
KARRATHA
PORT HEDLAND
ONSLOW
IRON VALLEY
MINE
NEWMAN
0
50
100
BCI Minerals Limited Annual Report 2019
3
Salt naturally crystallising on the Mardie mudflats.
4
Chairman’s Report
Dear Shareholders
I am pleased to present BCI Minerals’ 2019 annual report.
Over the last 12 months, BCI has delivered a healthy net
profit and made positive progress on advancing the Mardie
Salt & Potash Project towards development.
The Mardie Project, which BCI considers a potential Tier 1
project, is an attractive and unique opportunity to establish
a long-term operation of significant scale on the Pilbara
coast of Western Australia.
BCI is planning to sustainably and competitively produce
both salt and sulphate of potash (“SOP”) over an operating
life of at least 60 years. Whilst salt production is a well-
established industry in Western Australia, there have been
no new large-scale operations built in the last 20 years,
and Mardie represents an excellent opportunity to capture
some of the expected growth in Asian salt demand over
the next decade.
The long-term outlook for SOP fertiliser is also attractive
given ongoing population growth and the reducing
availability of land for agriculture, leading to higher crop
yields being required. Mardie’s SOP production will form
part of an emerging industry in Australia, which has no
existing production.
Overall, the Project has potential to provide shareholders
with substantial value creation and long-term returns.
Importantly, Mardie can also benefit a much broader range
of stakeholders, including in the north-west region of
Western Australia, through jobs, contracting opportunities
and the payment of significant taxes and royalties over
many decades.
It was also a positive year for BCI’s iron ore business, with
A$27M received from the sale of the Kumina tenements
in late-2018 and improved iron ore market conditions
delivering a healthy A$12.3M in EBITDA from the Iron Valley
royalty in FY19.
“The Company considers Mardie to be an
attractive opportunity to create significant
long-term shareholder value.”
I would like to thank BCI employees and the BCI Board
for your ongoing contribution. I would particularly like that
acknowledge the contribution of previous Board members,
Andy Haslam and Martin Bryant, who resigned in late-2018
after 7 years and 3 years respectively of valuable service.
I would also like to acknowledge Iron Valley operator,
Mineral Resources Limited, and our other business partners
and stakeholders, including our shareholders, for their
continued support of the Company through FY19, and into
the current year.
The next 12 months is a critical phase in Mardie’s
development. Significant work is underway to finalise the
studies, approvals, offtake and funding solutions over this
period. We are positive about the progress being made
on all fronts, and remain committed to rapidly developing
the Mardie Project for the benefits of shareholders and
all stakeholders.
Brian O’Donnell
Non-Executive Chairman
BCI Minerals Limited Annual Report 2019
5
Managing Director’s Report
Dear Shareholders
BCI’s long-term vision is to become a globally significant
producer of industrial and agricultural minerals, and we
plan to initially achieve this by developing the Tier 1
Mardie Salt & Potash Project.
The Mardie Project has a number differentiating points
from existing and new salt and SOP projects. It would be
the first salt operation in Australia producing SOP from
further processing of waste from the salt operation. It
would also be the only operation producing SOP from
seawater and being located on the coast, will enjoy
logistics and cost benefits compared to other prospective
Western Australian SOP operations.
The Company’s activities during FY19 have been focused
on completing the Mardie Project’s Definitive Feasibility
Study (“DFS”) which includes detailed design and costing,
securing tenure and approvals, developing offtake
relationships and progressing financing solutions.
The DFS commenced during FY19 following completion
of the Pre-Feasibility Study (“PFS”), with an initial aim of
ensuring an optimal project development case was taken
forward. A number of revisions to the PFS development
case were adopted including increased production of
4 million tonnes per annum of salt and 100,000 tonnes
per annum of SOP, and export of both products from a
new port facility at the Mardie site, effectively eliminating
all road haulage costs.
To that end, BCI released a positive PFS Optimisation
Study on the improved development case in May 2019.
Key financial metrics from the study included a pre-tax
NPV10 of A$560M, pre-tax IRR of 20% and steady-
state EBITDA of A$155M per annum – all improvements
relative to the PFS.1
Led by BCI’s Project Director, Tony Chamberlain, with
support from engineering firms GR Engineering and
Worley as well as a range of other contractors and service
providers, the DFS is progressing well. At the time of
writing, it is more than 60% complete and on track to be
finished in early 2020.
BCI has also progressed the Mardie environmental
approvals process, with the draft Environmental Review
Document being submitted to the Western Australian
Environmental Protection Authority (“EPA”) in mid-2019.
Following three years of environmental studies and
ongoing engagement with the EPA, we are confident a
project case has been established which appropriately
protects the environmental values of the region, and are
aiming to receive EPA endorsement by Q2 2020.
Site activity at Mardie has increased significantly during FY19,
with small-scale trial ponds and pan evaporators constructed
to conduct site specific evaporation trials and produce raw
salt samples for processing test work (SOP) and customer
samples (salt and SOP). First raw NaCl salts have recently
begun crystallising in the trial ponds.
Small-scale trial ponds at the Mardie Salt & Potash Project
Site activity is planned to ramp-up further during Q4 2019,
with the BCI Board recently approving a A$15M large-
scale trial pond programme. This will involve construction
of 2.3km of pond walls to establish a 32-hectare trial
pond and construction of the main seawater intake
facility with one out of the six large seawater pumps
installed. The large-scale trial pond programme is an
important de-risking exercise with a number of objectives
including testing construction methods and materials for
the pond walls and confirming pond floor permeability
over a large area.
Enhancing our understanding of the salt and SOP
markets and developing offtake relationships has been
an important activity during 2019. We have expanded
our marketing capability through the appointment of an
experience salt marketing executive with 20 years’ salt
sales experience in Asia. We now have a good level of
salt-specific experience in our project and marketing
teams, enhancing the credibility of BCI as developer of
the Mardie Project.
Our ongoing market studies and customer engagement
programmes continue to galvanise BCI’s view of a positive
outlook for the salt and SOP markets over the next decade
and customer interest in Mardie’s products. We have now
agreed five salt MOUs with Asian chemical companies
for more than 2Mtpa of production and have numerous
other positive discussions ongoing for additional salt and
SOP MOUs. Developing suitable offtake will be critical to
securing funding for the Mardie Project.
Refer to BCI’s announcement dated 17 May 2019. All material assumptions and technical parameters underpinning the production
target and forecast financial information derived from the production target continue to apply and have not materially changed.
1
6
Iron Valley Mine
Initial funding discussions with potential debt and equity
providers have been positive. After factoring in financing
costs, interest during construction, working capital and
appropriate overrun allowances, Mardie’s all-in funding
requirement will likely be more than A$600M, depending
on the final cost structure. BCI will aim to secure a large
proportion of long tenor debt to manage shareholder
dilution and with this in mind, the Northern Australia
Infrastructure Facility (“NAIF”) or similar concessional
long tenor financing sources will be key to the financing
of Mardie. NAIF is a A$5b Federal Government initiative
established to encourage development of projects in
northern Australia. Mardie has successfully completed
NAIF’s strategic assessment phase and is currently the
subject of the due diligence phase. BCI is also actively
discussing Mardie with a range of other potential financiers.
To summarise, the high-level timeline for the Mardie
Project is to finalise the DFS by early-2020, secure
environmental approval by Q2 2020 and progress offtake
and financing solutions to a level that will support a final
investment decision during Q2 2020.
Whilst the Mardie Project is BCI’s key focus, Iron Valley
is also an important asset for the Company. Iron Valley
operator, Mineral Resources Limited (“MIN”) continued
to deliver solid operating results and an improvement
in iron ore market conditions in the second half of FY19
contributed towards BCI generating A$12.3M in EBITDA
from Iron Valley in FY19. In testament to the turnaround in
the iron ore market, half of the FY19 EBITDA was earned in
the June 2019 quarter alone.
“The Mardie Salt & Potash Project,
which is now considered BCI’s flagship
development project, advanced
materially during the year.”
BCI had success with its iron ore asset sale programme
in late-2018, agreeing to sell the Kumina tenements to
MIN for A$35M, of which an initial A$27M was received
upon completion. Together with Iron Valley earnings,
this has provided BCI with sufficient funding to reach
a final investment decision for Mardie, based on the
current timetable.
Overall, the positive Iron Valley earnings and a gain on sale
of Kumina of A$17.8M resulted in BCI returning to profit in
FY19, with group EBITDA of A$16.2M and net profit after
tax of A$12.9M.
I’d like to thank the Board for its ongoing support and
acknowledge BCI staff for their efforts to deliver on the
Company’s objectives. I’d also like to express appreciation
to our long-term shareholders, including major shareholder
Wroxby Pty Ltd, who are prepared to be patient while we
are creating a project with a multi-generational life.
We are entering an important time in Mardie’s
development and I believe we can establish a foundation
for long-term value creation during this period.
Alwyn Vorster
Managing Director
BCI Minerals Limited Annual Report 2019
7
Directors’ Report
(Issued 23 August 2019)
The Directors present their report on the results of
the Consolidated Entity (referred to hereafter as the
Company) consisting of BCI Minerals Limited (“BCI”) and
the entities it controlled at the end of, or during the year
ended 30June 2019.
Principal Activity
The principal activities of the Company during the course of
the financial year were the exploration and development of
assets in the Pilbara region of Western Australia, including
the Mardie Salt Project, Iron Valley Iron Ore Mine, Buckland
Iron Ore Project, and Carnegie Potash Project.
There has been no significant change in the nature of the
Company’s activities during the financial year.
Directors
The names of directors of the Company in office during the
financial year and up to the date of this report are:
Brian O’Donnell Chairman (Non-Executive)
Alwyn Vorster Managing Director (Executive)
Michael Blakiston Director (Non-Executive)
Jenny Bloom
Director (Non-Executive)
Martin Bryant and Andrew Haslam were directors of the
Company until their resignation on 30 November 2018.
Directors’ Qualifications, Experience and
Special Responsibilities
Mr Brian O’Donnell B Com, FCA, MAICD
Chairman (Non-Executive) appointed October 2014
Period of office at August 2019 – 4 years and 10 months
In addition to being Chairman of BCI, Mr O’Donnell is
Director, Finance and Investments for the Australian
Capital Equity Pty Limited (ACE) group, which includes
BCI’s largest shareholder, Wroxby Pty Ltd. He is a director
of various ACE group companies, including companies
active in the property, agricultural, financial services and
investment sectors.
Mr O’Donnell is also a non-executive director of Bravo
Holdings Pty Ltd (the holding company for Hive and
Wellness Australia Pty Ltd - formerly Capilano Honey
Limited), the West Australian Football Commission and The
Guide Dog Foundation Pty Ltd (WA). He is a former director
of Capilano Honey Limited, Iron Ore Holdings Limited, Coates
Group Holdings Pty Ltd, WesTrac Pty Ltd, Landis & Gyr AG,
Fremantle Football Club Ltd and YMCA of Perth Inc. He is
a Fellow of the Institute of Chartered Accountants and has
34 years’ experience in the finance and investment industry.
Mr O’Donnell is a member of the Audit and Risk Committee.
Mr Alwyn Vorster BSc (Hons) Geology, MSc (Mineral Economics)
and MBA
Managing Director appointed 22 September 2016
Period of office at August 2019 – 2 year and 11 months
Mr Vorster commenced as Chief Executive Officer of BCI
in May 2016 and was appointed as Managing Director in
September 2016. He has more than 25 years’ experience
with numerous large mining houses in technical and
8
commercial management roles covering the total
supply chain from mine to market for iron ore, coal and
other minerals.
Recent roles include Group Executive Mining at Australian
Capital Equity Pty Limited (ACE), Chief Executive Officer
of API Management and Managing Director of Iron Ore
Holdings Ltd. Mr Vorster was a non-executive director of
Volt Resources Limited until 30 June 2019.
Ms Jenny Bloom Grad. Dip Business Administration, GAICD
Director (Non-Executive) appointed March 2017
Period of office at August 2019 – 2 year and 5 months
Ms Bloom has an extensive business background with
experience in the public and private sectors in Western
Australia and Victoria. She was most recently the Deputy
Chair and Member of the Waste Authority Western
Australia for eight years and was a member of the
Program and Risk Committee. She is a non-executive
director of Breaking the Silence (Inc) and is a director of
various private businesses. Ms Bloom previously held an
elected position as a Councillor and Deputy Shire President
for the Shire of Broome and as an independent director of
a Broome based Aboriginal Corporation.
Ms Bloom is a member of the Remuneration and
Nomination Committee.
Mr Michael Blakiston B. Juris
Director (Non-Executive) appointed March 2017
Period of office at August 2019 – 2 year and 5 months
Mr Blakiston is a partner in Gilbert + Tobin’s Energy and
Resources group. He has over 30 years’ experience gained
across a range of jurisdictions. He advises in relation to
asset acquisition and disposal, project structuring, joint
ventures and strategic alliances, development agreements
and project commercialisation, capital raisings and
company merger and acquisitions.
Mr Blakiston has served on numerous ASX listed
companies and not-for-profit boards and is currently the
Chairman of Precision Opportunities Fund Ltd, a specialist
small to medium cap fund.
Mr Blakiston is the Chairman of the Audit and Risk
Committee and Chairman of the Remuneration and
Nomination Committee.
Company Secretary
Ms Susan Hunter BCom, ACA, F Fin, MAICD, ACIS
Appointed July 2018
Ms Hunter was appointed Company Secretary of BCI,
effective 1 July 2018.
Ms Hunter has over 23 years’ experience in the corporate
finance industry and extensive experience in company
secretarial and non-executive director roles with ASX, AIM
and TSX listed companies.
Ms Hunter is currently Company Secretary of several ASX
listed companies.
Meetings of Directors
The number of meetings held during the year and the number of meetings attended by each director was as follows:
Total Number of Meetings
Held
Attended
Held
Attended
Held
Attended
Board
Audit and Risk Committee
Remuneration and
Nomination Committee
B O’Donnell
A Vorster
M Bryant (a)
A Haslam (b)
M Blakiston
J Bloom
8
8
4
4
8
8
8
8
3
4
8
8
3
-
-
1
3
-
3
-
-
1
3
-
-
-
-
1
2
2
-
-
-
1
2
2
(a) Mr Bryant was eligible to attend four Board meetings
(b) Mr Haslam attended all meetings to which he was eligible
Corporate Governance
In recognising the need for high standards of corporate behaviour and accountability, the Directors of BCI Minerals
Limited support and have adhered to the ASX Corporate Governance Council’s Corporate Governance Principles and
Recommendations. The Company’s detailed corporate governance policy statement can be found in the annual report or
viewed on the Company’s web site at www.bciminerals.com.au.
Directors’ Interests and Benefits
The relevant interest of each director in the shares, Performance Rights and options over shares issued by the Company at
the date of this report is as follows:
Director
B O’Donnell
A Vorster
M Blakiston
J Bloom
Total
Ordinary shares
Performance Rights
Direct
-
-
-
60,000
60,000
Indirect
351,998
3,985,645
-
-
4,337,643
Direct
Indirect
-
-
-
-
-
-
1,320,000
-
-
1,320,000
Dividends
No dividends have been declared in relation to the year ended 30 June 2019 (June 2018: Nil).
Rounding of amounts
The Company is of a kind referred to in ASIC Corporations (Rounding in Financials/Directors’ Reports) Instrument 2016/191,
relating to the ‘rounding off’ of amounts in the Directors’ Report. Amounts in the Directors’ Report have been rounded off in
accordance with that Class Order to the nearest thousand dollars, or in certain cases, to the nearest dollar.
Review of Operations
BCI is an Australian-based company that is developing a salt and potash business supported by iron ore royalty earnings.
Safety performance
BCI places a high priority on facilitating a safe working environment for all staff and contractors. No lost time injuries (“LTIs”)
were recorded for the year ended 30 June 2019 and the lost time injury frequency rate (“LTIFR”) was zero (June 2018: 0.0).
Mineral Resources Limited is responsible for Occupational Health and Safety matters at Iron Valley and therefore BCI does
not report safety performance for the Iron Valley site.
BCI Minerals Limited Annual Report 2019
9
Operations
Mardie Salt & Potash Project
BCI is focused on rapidly advancing its 100% owned
Mardie Salt & Potash Project, a potential Tier 1 project
located on the West Pilbara coast in the centre of
Australia’s key salt production region.
Mardie will produce high-purity salt (typically >99.5%
NaCl) and sulphate of potash (“SOP”) (typically >51% K2O)
via solar evaporation of seawater. Using an inexhaustible
resource and a production process driven mainly by
natural solar and wind energy, Mardie is a sustainable
opportunity to supply the salt and potash growth markets
in Asia over many decades.
A PFS Optimisation Study was concluded during the June
2019 quarter, delivering an enhanced development case
with improved project economics. The development case
envisages salt production of 4Mtpa and SOP production of
100ktpa over an operating life of 60 years, with salt and
SOP product exported via a new port at Mardie.
A Definitive Feasibility Study (“DFS”) is currently underway
and due to be completed in the March 2020 quarter,
with DFS engineering approximately 30% complete as at
30 June 2019.
BCI is also progressing the approvals and tenure required
for development of the Mardie Project. BCI submitted
its Environmental Review Document in April 2019 and
endorsement by the Environmental Protection Authority
is targeted by early 2020. BCI has received in-principle
approval from the Western Australian State Government
for a new port at the Mardie site and BCI is now working
closely with the Pilbara Ports Authority to establish the
tenure and agreements required for the port.
BCI is targeting a Final Investment Decision for the Mardie
Project by end of the March 2020 quarter, once the DFS is
complete and key approvals are in place.
Iron Valley Iron Ore Mine
The Iron Valley Mine is operated by Mineral Resources
Limited (“MIN”) under an ore purchase agreement with
BCI. MIN operates the mine at its cost and purchases iron
ore from BCI at the mine gate at a price linked to MIN’s
received sales price. BCI is responsible for paying third
party royalties related to the project and securing key
approvals.
During the financial year MIN shipped 7.4 million wet metric
tonnes (“M wmt”) (June 2018: 6.1 wmt), which generated
revenue for BCI of $54.3M (June 2018: $33.0M) and
EBITDA of $12.3M (June 2018: $5.6M), which was made up
of EBITDA for the current financial year shipments of $12.4M
less a negative adjustment for final pricing for prior financial
year shipments of $0.1M.
Other Assets
During the year BCI commenced a process to divest its
other iron ore assets and exploration tenements, with the
aim of providing additional funding and management time
to advance the Mardie Salt & Potash Project.
Discussions are ongoing about potential transactions in
relation to its other assets, which include the Bungaroo
South tenements and the Cape Preston East port rights,
known as the Buckland Project.
The Buckland Project is a 100% owned iron ore
development project located in the West Pilbara,
comprising a potential 8Mtpa mine at Bungaroo South,
private haul road and 20Mtpa transhipment port facility
at Cape Preston East. Bungaroo South and its satellite
deposits have Mineral Resources of 283Mt at 56.5%
Fe and Ore Reserves of 134Mt at 57.6% Fe. A definitive
feasibility study was completed in 2014 and all key
approvals and tenure are in place for the mine, road
and port.
Iron Valley Shipments (M wmt)
Iron Valley EBITDA (A$M)
15
12
9
6
3
0
H1
FY15
H2
FY15
H1
FY16
H2
FY16
H1
FY17
H2
FY17
H1
FY18
H2
FY18
H1
FY19
H2
FY19
H1
FY15
H2
FY15
H1
FY16
H2
FY16
H1
FY17
H2
FY17
H1
FY18
H2
FY18
H1
FY19
H2
FY19
5
4
3
2
1
0
10
In October 2018, BCI entered into an agreement to sell the
Kumina Iron Ore Project to MIN for total cash consideration
of A$35M. The transaction completed in December 2018
and BCI received the first cash payment of A$27M from
MIN. A further two cash payments of A$4M each are due
upon first export of iron ore from Kumina and 12 months
after first export.
In the June 2019 quarter, BCI sold two Western
Australian exploration tenement packages for a combined
consideration of $1.2M.
BCI also has an interest in the Carnegie Potash Project,
an SOP exploration project located approximately 220km
north-east of Wiluna. BCI currently holds a 30% interest in
a joint venture with Kalium Lakes Limited (“Kalium”) and
has rights to earn up to a 50% interest. Kalium, the joint
venture manager, completed a Scoping Study in July 2018
and is proceeding with a staged Pre-Feasibility Study, with
the current focus on securing tenure and access to all
required tenements.
Environmental Regulation
BCI is committed to minimising its environmental impact,
with an appropriate focus on continuous monitoring
of environmental matters and compliance with
environmental regulations.
BCI’s exploration, mining and development activities
are the subject of various State and Commonwealth
environmental regulations. Compliance with these
environmental regulations is managed through the
Environment and Heritage Management System and a
series of other tools used to identify, analyse and control
key risks associated with the environmental impact
from the Company’s activities. A compliance program
is implemented on an annual basis to ensure correct
data is being gathered to measure the impacts to the
environment and periodic reviews (inspections and audits)
are conducted to assess performance against agreed
regulatory targets.
During the year, BCI submitted a number of reports and
compliance statements to State and Federal regulatory
bodies detailing BCI’s performance against granted
approvals. This includes all Annual Environmental Reports,
Annual Compliance Reports, Compliance Assessment
Reports and Emissions Reports which were all submitted
on time and endorsed by the regulators.
There have been no material breaches of the Company’s
licences, permits and approvals during the financial year.
Review of Results
Statement of profit or loss
The Company’s profit after income tax for the financial year ended 30 June 2019 was $12.9M (June 2018: loss $16.9M ),
which is a result of increased Iron Valley earnings driven by higher iron ore pricing and higher shipping volumes, the gain
arising on the sale of Kumina and other exploration tenements offset by increased expenditure on developing the Mardie
Salt and Potash Project.
The following table provides a summary of the Company’s statement of profit and loss:
Revenue
Profit/(loss) after tax
Net profit/(loss) after tax
30 June 2019
A$M
30 June 2018
A$M
54.8
12.9
12.9
33.4
(16.9)
(16.9)
The Company’s EBITDA for the financial year ended 30 June 2019 was $16.2M (June 2018: loss of $14.4M), which
incorporates a positive EBITDA from Iron Valley of $12.3M (June 2018: $5.6M).
The following table shows the EBITDA contribution for each segment of the Group:
Iron Valley
Buckland (including gain on sale of Kumina)
Mardie
Other
Total EBITDA
30 June 2019
A$M
30 June 2018
A$M
12.3
16.5
(8.2)
(4.4)
16.2
5.6
(7.5)
(2.9)
(9.6)
(14.4)
Statement of cash flows
Cash and cash equivalents as at 30 June 2019 increased to $33.7M (June 2018: $13.1M), primarily due to the cash received
in connection with the sale of Kumina and higher Iron Valley receipts.
BCI Minerals Limited Annual Report 2019
11
Statement of financial position
Net assets increased to $103.6M (June 2018: $90.6M) primarily as a result of the gain on sale of Kumina.
Dividends
The Directors have not paid or declared any dividends since the commencement of the financial year ended 30 June 2019.
(a) out of the profits for the year ended 30 June 2018 and retained earnings on fully paid ordinary shares
(b) out of the profits for the year ended 30 June 2019 and retained earnings on fully paid ordinary shares.
2019
Nil
Nil
2018
Nil
Nil
Corporate
Annual General Meeting
The Company’s annual general meeting was held in Perth on 22 November 2018. All four resolutions considered at the
meeting were passed.
Performance Rights
As at the date of this report, there were 1,320,000 Performance Rights on issue that were vested as shares to be issued
(30 June 2018: 19,752,271). Refer to the Remuneration Report for further details of Performance Rights outstanding.
No Performance Rights holder has any right to be provided with any other share issue of the Company by virtue of their
Performance Rights holding. None of the Performance Rights are listed on the ASX.
Shares issued as a result of conversion of performance rights
Since the end of the financial year, the Company issued no ordinary shares as a result of the conversion of performance rights.
Likely Developments and Expected Results
The Company plans to focus on advancing the Mardie Salt and SOP Project Definitive Feasibility Study which is due for
completion in the March 2020 quarter.
BCI expects to continue receiving revenue and EBITDA from Iron Valley during the 2020 financial year. The Company may
also receive income from the divestment of exploration tenements and other assets during the year.
Significant changes in state of affairs
There were no significant changes in the Company’s state of affairs not otherwise included in this report.
Matters subsequent to the reporting date
No matter or circumstances has arisen since the end of the financial year which significantly affected or may significantly
affect the operations of the Company, the results of those operations, or the state of affairs of the Company in financial
periods subsequent to the financial year ended 30 June 2019.
Audit independence and non-audit services
Auditor’s Independence Declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is attached
to the independent auditor’s report and forms part of the Directors’ Report.
Non-audit services
For the year ended 30 June 2019 the Board of Directors is satisfied that the auditor, BDO Audit (WA) Pty Ltd, did not
provide any non-audit services to the Company set out in Note 24 to the Financial Statements that compromised the
auditor independence requirements of the Corporations Act 2001.
Signed in accordance with a resolution by the Directors.
Brian O’Donnell
Chairman
Perth, Western Australia
23 August 2019
Alwyn Vorster
Managing Director
Perth, Western Australia
23 August 2019
12
Remuneration Report
(Issued 23 August 2019)
The Remuneration Report outlines the remuneration arrangements in place for Directors and other Key Management
Personnel (“KMP”) of the Company in accordance with section 308 (3c) of the Corporations Act 2001.
For the purpose of this report the KMP are defined as those persons having authority and responsibility for planning,
directing and controlling the major activities of the Company, directly or indirectly, including any directors of the Company.
Directors
B O’Donnell
M Bryant
A Haslam
M Blakiston
J Bloom
Executives
A Vorster
S Hodge
Non-executive Chairman
Non-executive Director (resigned 30 November 2018)
Non-executive Director (resigned 30 November 2018)
Non-executive Director
Non-executive Director
Managing Director
Chief Financial Officer
A Chamberlain
Project Director (appointed 31 January 2019)
Remuneration and Nomination Committee
The Remuneration and Nomination Committee (“RNC”) is a committee of the Board comprised of two independent Non-
Executive Directors, being Mr Blakiston (Chairman) and Ms Bloom.
The role of the RNC is to assist the Board to fulfil its responsibilities with respect to employee and director remuneration,
and board composition and diversity, by making recommendations to the Board on:
• The Company’s People Policy which sets out the Company’s approach to Remuneration, Diversity and Privacy;
• A Remuneration Framework which enables the Company to attract, retain and motivate high quality senior executives
who create value for shareholders; and
• The selection, composition, performance and appointment of members of the Board so that it is effective and able to
operate in the best interests of shareholders.
Remuneration Standard
The Remuneration Standard of the Company aims to:
• Reward employees fairly and responsibly in accordance with the Australian market;
• Provide competitive rewards that attract, retain and motivate employees;
• Ensure incentives provide fair reward in line with company and individual performance to deliver on the current and long
term strategic objectives; and
• Ensure a level of equity and consistency across BCI and alignment with BCI’s culture.
Non-Executive Director Remuneration
Fees and payments to Non-Executive Directors reflect the demands which are made on, and the responsibilities of, the
Directors and are reviewed annually by the Board. The Chairman is not present at any discussions relating to determination
of his own remuneration.
Directors’ fees are determined within an aggregate directors’ fee pool limit, which is periodically recommended for approval
by shareholders. The maximum currently stands at $900,000 in aggregate and was approved by shareholders at the
annual general meeting on 19 November 2014. This amount is separate from any specific tasks the directors or their
related entities may take on for the Company.
Fixed Remuneration
Non-Executive Directors’ fixed remuneration comprise the following:
• Cash remuneration; and
• Superannuation.
Performance Rights
At the November 2017 general meeting, shareholders approved the grant of 200,000 Performance Rights to Ms Bloom
subject to Performance Conditions disclosed in the 2018 Annual Report.
All of the Performance Rights lapsed during the year.
BCI Minerals Limited Annual Report 2019
13
Executive Remuneration
The objective of the Company’s executive remuneration is to ensure reward for performance is market competitive and
appropriate for the results delivered. The executive remuneration is aligned with achievement of strategic and project
objectives and the creation of value for shareholders.
The Board ensures that executive reward satisfies the following key criteria in line with appropriate corporate
governance practices:
• Competitiveness and reasonableness;
• Acceptability to shareholders;
• Performance linkage/alignment of executive compensation;
• Transparency; and
• Prudent capital management.
Fixed Remuneration
The components of executives’ fixed remuneration are determined individually and may include:
• Cash remuneration;
• Superannuation; and
• Insurances, parking and other benefits.
Variable Remuneration
Short-term Incentives
Executives may receive a short-term incentive (“STI”) of up to 20-70% of their fixed remuneration. The STI is an “at risk”
component of remuneration and payment may, at the Board’s discretion, be in cash and/or equity. Measurement will be
based on performance against annually agreed key performance indicators (“KPIs”). These KPIs will typically be aligned to
specific operating and corporate objectives in relation to each financial year.
For the 2019 financial year, the Board exercised its discretion to award an STI based on the KPIs achieved during the year.
Executive KMP were in aggregate awarded an STI cash incentive of $227,125 (25% of their aggregate annual salary). The
amount of the STI was included in the Company’s financials for the 2019 year and was paid after year-end in the 2020
financial year.
For the 2018 financial year, the Board exercised its discretion to award an STI based on the KPIs achieved during year.
Executive KMP were, in aggregate, awarded an STI cash incentive of $131,236 (17% of their aggregate annual salary). The
amount of the STI was included in the Company’s financials for the 2018 year and was paid after year-end in the 2019
financial year.
Long-term Incentives
Longer term incentive awards will occur through the Performance Rights Plan (“PRP”). The PRP will form part of an “at risk”
component of remuneration and Performance Rights will generally have a vesting period longer than one year. Performance
hurdles will be based on company share price and/or other relevant shareholder return measures. The PRP will operate
entirely at the discretion of the Company’s Board and may be terminated, suspended or amended at any time, or from time
to time, in it’s entirely or in part in relation to any or all employees (except where contractual rights have been created).
At the November 2017 general meeting, shareholders approved the grant of Performance Rights to the Managing Director,
Alwyn Vorster. The Performance Rights were issued on 29 November 2017 and are subject to the Performance Conditions
disclosed in the 2018 Annual Report.
Performance Rights were issued to KMP on 21 August 2017 and 23 August 2018 are subject to the Performance
Conditions disclosed in the 2018 Annual Report in respect of the 21 August 2017 issue.
Use of Remuneration Consultants
The Board and Remuneration Committee reviews executive remuneration annually, including assessment of:
• Advice from independent external remuneration consultants;
• Individual and business performance measurement against both internal targets and appropriate external comparatives; and
• General remuneration advice from both internal and independent external sources.
In the current financial year, the Board did not utilise an external remuneration consultant to provide a comprehensive
benchmarking review. Industry remuneration data has been sourced through Aon Hewitt, the McDonald Gold and General
Mining Industry Remuneration report for the benchmarking of new positions and projected industry market movements.
Share Trading Policy
The trading of shares by all employees is subject to, and conditional upon, compliance with the Company’s share trading
policy which is available on the Company’s website: www.bciminerals.com.au. Directors and employees may not engage in
short-term or speculative trading of the Company’s securities and are prohibited from trading in financial products issued
or created over, or in respect of the Company’s securities during a non-trading period.
14
Service Agreements
The remuneration and other terms of employment for executive KMP are covered in formal employment contracts. The key
terms of their employment contracts, at the date of release of this report, are shown in the table below.
Name
Terms/Notice periods/Termination payment
A Vorster (Managing Director)
Base salary inclusive of superannuation of $524,300 reviewed at intervals to be determined by the
Company.
Employment can be terminated at three months’ notice by Mr Vorster or by the Company. If the
Company elects to terminate the employment agreement for reasons other than Mr Vorster’s gross
misconduct or default, Mr Vorster will be entitled to a payment equal to six months’ total fixed
remuneration. Certain agreed trigger events will lead to Mr Vorster having the option to terminate the
contract and receive a payment equal to twelve months’ total fixed remuneration.
S Hodge (Chief Financial Officer) Base salary inclusive of superannuation $338,836 reviewed at intervals to be determined by the
Company.
Employment can be terminated at twelve weeks’ notice by Mr Hodge or by the Company. Certain
agreed trigger events will lead to Mr Hodge having the option to terminate the contract and receive a
payment equal to six months’ total fixed remuneration.
A Chamberlain (Project Director) Base salary inclusive of superannuation $375,804 reviewed at intervals to be determined by the
Company.
Employment can be terminated at three months’ notice by Mr Chamberlain or by the Company. Certain
agreed trigger events will lead to Mr Chamberlain having the option to terminate the contract and
receive a payment equal to six months’ total fixed remuneration
Remuneration of Key Management Personnel for the Year Ended 30 June 2019
The remuneration table below sets out the remuneration information for the directors and executives, which includes the
managing director, who are considered to be KMP of the Company.
Short Term
Post
Employment
Share Based
Payments
Salary and
fees
Incentives
(a)
Other
benefits (b)
Super-
annuation
Performance
Rights (c)
Termination
Payment
Directors
B O’Donnell
M Bryant (e)
A Haslam (e)
M Blakiston
J Bloom
Executives
A Vorster
S Hodge
A Chamberlain (f)
$
129,452
27,911
31,335
78,767
69,863
337,328
478,836
283,340
140,161
$
-
-
-
-
-
-
75,000
56,236
-
Total
1,239,665
131,236
902,337
131,236
$
-
-
-
-
-
-
12,201
13,601
3,812
29,614
29,614
$
12,298
2,652
2,977
7,483
6,637
32,047
20,531
20,531
13,315
54,377
86,424
$
-
-
-
-
1,478
1,478
50,484
37,543
-
88,027
89,505
$
-
-
-
-
-
-
-
-
-
-
-
Total
$
141,750
30,563
34,312
86,250
77,978
370,853
637,052
411,251
157,288
1,205,591
1,576,444
Performance
Related (d)
%
0
0
0
0
2
0
20
23
0
18
14
(a) Short term incentives relate to performance in the previous financial year. Please refer to section on short-term incentive payments above.
(b) Other benefits include fuel, parking and insurances. Directors’ and Officers’ liability premiums have not been allocated to individual directors.
(c) Share-based payments represent the accounting expense incurred by the Company for the stated financial period, reflecting the terms
of the Performance Rights as valued using a Monte Carlo simulation.
(d) Percentage performance related is the sum of short-term incentives and share based payments divided by total remuneration, reflecting
the actual percentage of remuneration at risk for the year. Note that short-term incentives are reported in the year in which they are
paid but relate to performance in previous reporting periods.
(e) Resigned 30 November 2018.
(f) A Chamberlain became a KMP on 31 January 2019.
BCI Minerals Limited Annual Report 2019
15
Remuneration of Key Management Personnel for the Year Ended 30 June 2018
The remuneration table below sets out the remuneration information for the directors and executives, which includes the
managing director, who are considered to be KMP of the Company.
Short Term
Post
Employment
Share Based
Payments
Salary and
fees
Incentives
(a)
Other
benefits (b)
Super-
annuation
Performance
Rights (c)
Termination
Payment
$
Directors
B O’Donnell
129,452
M Bryant
A Haslam
M Blakiston
J Bloom
Executives
A Vorster
S Hodge
R Ventouras (e)
66,986
75,205
73,973
69,863
415,479
478,836
271,727
258,192
$
-
-
-
-
-
-
73,500
39,925
17,541
1,008,755
130,966
$
$
10,874
10,874
10,874
10,874
10,874
12,298
6,364
7,144
7,027
6,637
54,370
39,470
23,063
23,001
18,094
64,158
20,464
20,464
22,412
63,340
$
-
-
-
-
862
862
122,852
62,627
42,273
227,752
Total
1,424,234
130,966
118,528
102,810
228,614
$
-
-
-
-
-
-
-
-
-
-
-
Total
$
152,624
84,224
93,223
91,874
88,236
510,181
718,715
417,744
358,512
1,494,971
2,005,152
Performance
Related (d)
%
0
0
0
0
1
0
27
25
17
24
18
(a) Short term incentives relate to performance in the previous financial year. Please refer to section on short-term incentive payments above.
(b) Other benefits include vehicles, fuel, parking, travel and insurances.
(c) Share-based payments represent the accounting expense incurred by the Company for the stated financial period, reflecting the terms
of the Performance Rights as valued using a Monte Carlo simulation.
(d) Percentage performance related is the sum of short-term incentives and share based payments divided by total remuneration, reflecting
the actual percentage of remuneration at risk for the year. Note that short-term incentives are reported in the year in which they are
paid but relate to performance in previous reporting periods.
(e) Ceased to be a KMP on 30 June 2018
Performance Rights On issue
The terms and conditions of Performance Rights granted to KMP affecting remuneration in the current or future reporting
periods are set out in the following table.
Grant date Date to vest Expiry date
Risk free
rate at
grant date
Value per
right at
grant date
Number
granted during
the year
Value at
grant date
Number
vested
Number
lapse
Directors
J Bloom
29/11/2017 30/06/2019 28/11/2022
2.5%
$0.012
200,000
$2,340
-
200,000
Executives
A Vorster 25/05/2016 30/06/2019 24/05/2021
A Vorster
29/11/2017 30/06/2019 28/11/2022
A Vorster
29/11/2017 30/06/2020 28/11/2022
S Hodge
21/08/2017 30/06/2019 21/08/2022
S Hodge
21/08/2017 30/06/2020 21/08/2022
S Hodge
23/08/2018 30/06/2020 21/08/2022
2.4%
2.5%
2.5%
2.6%
2.6%
2.5%
$0.069
2,000,000
$138,000 1,320,000 *
680,000 *
$0.012
2,000,000
$23,400
-
2,000,000
$0.008
$0.026
$0.015
$0.010
2,000,000
$15,400
- 2,000,000 *
1,000,000
$26,400
1,000,000
$15,400
750,000
$7,425
-
-
-
1,000,000 *
1,000,000 *
750,000 *
* Performance Rights vested or lapsed subsequent to 30 June 2019, remaining value to be expensed in financial year 2020
A Monte Carlo simulation is used to value all of the Performance Rights. The Monte Carlo simulates the Company’s share
price and depending on the hurdle arrives at a value based on the number of Performance Rights that are likely to vest.
The risk-free rate of the Performance Rights on the date granted are shown in the table above.
16
Equity Instrument Disclosures
The interests of KMP in shares at the end of the financial year 2019 are as follows:
Directors
B O’Donnell
M Bryant (a)
A Haslam (a)
J Bloom
Executives
A Vorster
S Hodge
A Chamberlain
Total
Balance at
1 July 2018
Acquired
during year
Performance
Rights converted
during year
Disposed
during the year
Other changes
Balance at
30 June 2019
351,998
580,822
192,000
60,000
2,665,645
-
-
3,850,465
-
-
-
-
-
-
-
-
-
-
-
-
1,320,000
462,000
-
1,782,000
-
-
-
-
-
-
-
-
-
351,998
(580,822)
(192,000)
-
-
-
-
-
-
60,000
3,985,645
462,000
-
(772,822)
4,859,643
(a) Resigned 30 November 2018; Other Changes represents balance as at resignation date.
The interests of KMP in Performance Rights at the end of the financial year 2019 are as follows.
Directors
J Bloom
Executives
A Vorster
S Hodge
A Chamberlain
Total
Company performance
Balance at
1 July 2018
Granted as
compensation
Converted to
shares
Rights lapsed/
cancelled
Balance at
30 June 2019
200,000
8,000,000
2,700,000
-
-
-
(200,000)
-
(1,320,000)
(2,680,000)
4,000,000
750,000
(462,000)
(238,000)
2,750,000
-
-
-
-
-
10,900,000
750,000
(1,782,000)
(3,118,000)
6,750,000
The table below shows key financial measures of company performance over the past five years.
2019
2018
2017
2016
2015
Continuing operations
Revenue
Net profit/(loss) after tax
Basic earnings/(loss) per share
Dividends paid per share
Share price (last trade day of financial year)
$million
$million
Cents
Cents
A$
54.8
13.4
3.38
-
0.18
33.4
(16.9)
(4.29)
-
0.14
64.0
7.1
2.2
-
0.14
40.4
(43.9)
(22.4)
-
0.11
281.2
(158.5)
(90.7)
15.0
0.29
Transactions with Key Management Personnel
On 1 March 2017, Michael Blakiston was appointed as a Non-Executive Director of the Company. Mr Blakiston is a partner
in the legal firm Gilbert + Tobin. During the current financial year, the Company made legal fee payments to Gilbert + Tobin
of $445K (2018: $207K). All transactions were on normal commercial terms and conditions. Refer to Note 25 for Related
Party transactions.
Voting and comments made at the Company’s 2018 Annual General Meeting
The Company received 99% of ‘yes’ votes cast on its remuneration report for the 2018 financial year.
BCI Minerals Limited Annual Report 2019
17
Other information
Insurance of officers
During the financial period, the Company incurred premiums of $111,241 (2018: $96,308) to insure the directors, company
secretaries and officers of the Company. The liability insured is the indemnification of the Company against any legal
liability to third parties arising out of any directors’ or officers’ duties in their capacity as a director or officer other than
indemnification not permitted by law.
No liability has arisen under this indemnity as at the date of this report.
The Company has entered into indemnity deeds with each director and officer. Under the deeds, the Company indemnifies
each director and officer to the maximum extent permitted by law against legal proceedings or claims made against
or incurred by the directors or officers in connection with being a director or officer of the Company, or breach by the
Company of its obligations under the deed.
Independent audit of Remuneration Report
The Remuneration Report has been audited by BDO. Please see page 43 of this report for BDO’s report on the
Remuneration Report.
Signed in accordance with a resolution by the Directors.
Brian O’Donnell
Chairman
Perth, Western Australia
23 August 2019
Alwyn Vorster
Managing Director
Perth, Western Australia
23 August 2019
18
Director’s Declaration
In the opinion of the Directors of BCI Minerals Limited:
a. the financial statements comprising the consolidated statement of profit or loss and other comprehensive income,
consolidated statement of financial position, consolidated statement of cash flows, consolidated statement of changes in
equity and accompanying notes are in accordance with the Corporations Act 2001 including:
i. giving a true and fair view of the financial position of the Consolidated Entity as at 30 June 2019 and of its
performance for the financial year ended 30 June 2019; and
ii. complying with Accounting Standards and the Corporations Regulations 2001 and other mandatory professional
reporting requirements.
b. there are reasonable grounds to believe that the Consolidated Entity will be able to pay its debts as and when they
become due and payable.
c. the Company has included in the notes to the financial statements an explicit and unreserved statement of compliance
with International Financial Reporting Standards.
The Directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer required by section
295A of the Corporations Act 2001 (Cth).
This declaration is made in accordance with a resolution of the Directors and is signed on their behalf by:
Brian O’Donnell
Chairman
Perth, Western Australia
23 August 2019
BCI Minerals Limited Annual Report 2019
19
20
Annual Financial Report
For the Year Ended 30 June 2019
BCI Minerals Limited Annual Report 2019
21
Financial Statement Contents
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Note 1 – Revenue
Note 2 – Expenses
Note 3 – Impairment of Non-Financial Assets
Note 4 – Income Taxes
Note 5 – Cash and Cash Equivalents
Note 6 – Trade and Other Receivables
Note 7 – Property, Plant and Equipment
Note 8 – Exploration and Evaluation
Note 9 – Intangibles
Note 10 – Trade and other payables
Note 11 – Provisions
Note 12 – Capital Risk Management
Note 13 – Contributed Equity
Note 14 – Reserves
Note 15 – Accumulated Losses
Note 16 – Earnings Per Share
Note 17 – Financial Risk Management
Note 18 – Subsidiaries
Note 19 – Segment Information
Note 20 – Commitments
Note 21 – Contingent Liabilities and Assets
Note 22 – Events Occurring after the Reporting Period
Note 23 – Parent Entity
Note 24 – Auditor’s Remuneration
Note 25 – Related Party Transactions
Note 26 – Share Based Payments
Note 27 – Other Accounting Policies
22
23
24
25
26
27
29
29
30
31
33
33
34
35
36
36
37
38
38
38
39
39
40
41
42
43
43
43
43
43
44
44
46
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
BCI Minerals Limited and its controlled entities for the year ended 30 June 2019
Revenue from continuing operations
Sale of goods
Other revenue
Total revenue from continuing operations
Cost of sales
Administration expenses
Exploration and evaluation expenditure
Loss on sale of asset
Write down of exploration tenements
Profit on sale of exploration tenements
Profit / (loss) before income tax
Income tax benefit / (expense)
Profit / (loss) after income tax from continuing operations
attributable to owners of BCI Minerals Limited
Basic earnings / (loss) per share from continuing operations
Diluted earnings / (loss) per share from continuing operations
Notes
2019
$000’s
2018
$000’s
54,170
32,970
630
479
54,800
33,449
(44,330)
(29,954)
(5,419)
(7,118)
(9,655)
(13,287)
(3)
(3,025)
19,019
-
-
-
11,387
(16,910)
1,510
-
12,897
(16,910)
Cents
3.26
3.25
Cents
(4.29)
(4.26)
1
2
2
8
8
4
16
16
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with
the accompanying notes.
BCI Minerals Limited Annual Report 2019
23
Consolidated Statement of Financial Position
BCI Minerals Limited and its controlled entities as at 30 June 2019
Notes
2019
$000’s
2018
$000’s
Current assets
Cash and cash equivalents
Short term investments
Trade and other receivables
Total current assets
Non-current assets
Receivables
Property, plant and equipment
Exploration and evaluation assets
Intangibles
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Provisions
Total current liabilities
Non-current liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Contributed equity
Reserves
Accumulated losses
Total shareholders’ equity
5
6
6
7
8
9
10
11
11
13
14
15
33,702
340
22,251
56,293
8,285
39,683
2,575
23,532
74,075
13,057
-
7,213
20,270
5,583
42,153
14,500
23,532
85,768
130,368
106,038
18,092
379
18,471
8,285
8,285
26,756
103,612
267,212
5,418
(169,018)
103,612
9,373
471
9,844
5,583
5,583
15,427
90,611
266,984
5,542
(181,915)
90,611
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
24
Consolidated Statement of Changes in Equity
BCI Minerals Limited and its controlled entities for the year ended 30 June 2019
Balance at 1 July 2017
Loss for the year
Total comprehensive income
Contributed
equity
$000’s
Accumulated
losses
$000’s
266,735
(165,005)
-
-
(16,910)
(16,910)
Transactions with equity holders in their capacity as equity holders
Performance Rights converted
Share based payments
249
-
-
-
Balance at 30 June 2018
266,984
(181,915)
Profit for the year
Total comprehensive income
-
-
Transactions with equity holders in their capacity as equity holders
Performance Rights converted
Share based payments
228
-
12,897
12,897
-
-
Balance at 30 June 2019
267,212
(169,018)
Reserves
$000’s
5,426
-
-
(249)
365
5,542
-
-
(228)
104
5,418
Total
$000’s
107,156
(16,910)
(16,910)
-
365
90,611
12,897
12,897
-
104
103,612
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
BCI Minerals Limited Annual Report 2019
25
Consolidated Statement of Cash Flows
BCI Minerals Limited and its controlled entities for the year ended 30 June 2019
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Interest received
Income tax refund
Notes
2019
$000’s
2018
$000’s
39,794
(48,087)
630
1,510
35,833
(48,210)
420
-
Net cash flows used in operating activities
5
(6,153)
(11,957)
Cash flows from investing activities
Proceeds from disposal of exploration tenements
Proceeds from disposal of plant and equipment
Payments for short term investments
Payments for plant and equipment
Payments for exploration project earn-ins
Payments for exploration and evaluation assets
Net cash flows from/(used in) investing activities
Cash flows from financing activities
Repayment of Royalty Rebate
Net cash flows from financing activities
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
5
27,294
1
(340)
(157)
-
-
26,798
-
-
20,645
13,057
33,702
-
-
-
(74)
(1,000)
(9,000)
(10,074)
(1,288)
(1,288)
(23,319)
36,376
13,057
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
26
Notes to the Consolidated Financial Statements
BCI Minerals Limited and its controlled entities for the year ended 30 June 2019
Preface to the notes
The notes include information which is required to understand the financial statements and is material and relevant to the
operations and the financial position and performance of the Company. Information is considered relevant and material if:
• The amount is significant due to its size or nature;
• The amount is important in understanding the results of the Company;
• It helps to explain the impact of significant changes in the Company’s business; or
• It relates to an aspect of the Company’s operations that is important to its future performance.
The notes are organised into the following sections:
• Basis of preparation;
• Key numbers;
• Capital;
• Risk management;
• Group structure;
• Unrecognised items; and
• Other notes.
Basis of preparation
Corporate information
The financial statements for BCI Minerals Limited for the year ended 30 June 2019 were authorised for issue in accordance
with a resolution of the Directors on 23 August 2019. BCI Minerals Limited is a company limited by shares incorporated in
Australia whose shares are publicly traded on the Australian Securities Exchange. BCI Minerals Limited and its subsidiaries
together are referred to in these financial statements as the ‘Company’ or the ‘Consolidated Entity’.
The principal activities of the Company during the financial year were the development of assets in the Pilbara region of
Western Australia, including the Mardie Salt & Potash Project. The Company also receives revenue from the Iron Valley Iron
Ore Mine under the terms of an Iron Ore Sale and Purchase Agreement.
Basis of preparation
The principal accounting policies adopted in the preparation of the financial statements are set out in the notes to the
accounts. These policies have been consistently applied to all the financial years presented, unless otherwise stated.
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board (“AASB”), and the Corporations Act 2001. BCI Minerals
Limited is a for-profit entity for the purpose of preparing the financial statements.
The financial statements are presented in Australian dollars. The Company is of the kind referred to in ASIC Corporations
(Rounding in Financials/Directors’ Reports) Instrument 2016/191, and in accordance with that Corporations Instrument
amounts in the directors’ report and annual financial report are rounded off to the nearest thousand dollars, unless
otherwise indicated.
BCI Minerals Limited Annual Report 2019
27
Compliance with IFRS
The consolidated financial statements of BCI Minerals Limited comply with International Financial Reporting Standards
(“IFRS”) as issued by the International Accounting Standards Board.
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable, the
revaluation of financial assets and cash flow hedges at fair value through other comprehensive income.
New, revised or amending Accounting Standards and Interpretations adopted
New and amended standards adopted by the group
A number of new or amended standards become applicable for the current reporting period and the group had to change
its accounting policies as a result of adopting the following standards:
• AASB 9 Financial Instruments (Note 6); and
• AASB 15 Revenue from Contract with Customers (Note 1).
The impact of the adoption of these standards did not have any material impact on the group’s accounting policies and did
not require retrospective adjustments.
Changes in accounting policy, estimates disclosures, standards and interpretations
Except for matters relating to the adoption of new Australian Accounting Standards referred to above, the accounting
policies adopted and estimates made are consistent with those of the previous financial year.
Foreign currency
The financial statements are presented in Australian dollars which is the Company’s functional and presentation currency.
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of
the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions, and from the
translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are
recognised in profit or loss.
Comparatives
Where applicable, comparatives have been adjusted to conform with current year presentation.
Key estimates and judgements
In the process of applying the Company’s accounting policies, management has made a number of judgements and
applied estimates of future events. Judgements and estimates which are material to the financial report are found in the
following notes:
Note 3:
Impairment of non-financial assets
Note 4:
Income taxes
Note 7: Property, plant and equipment
Note 8:
Exploration and evaluation
Note 9:
Intangibles
Note 11: Provisions
Note 26: Share based payments
28
Key Numbers
Note 1 – Revenue
Sales – Iron Valley
Interest revenue
Other income
Total
Accounting policy
2019
$000’s
54,312
630
(142)
54,800
2018
$000’s
32,970
420
59
33,449
Revenue is measured at the fair value of the gross consideration received or receivable. Revenue is recognised if it meets
the criteria outlined below.
Sales – Iron Valley
Revenue from contracts with customers for the sale of goods is recognised when persuasive evidence, usually in the form
of an executed sales agreement, or an arrangement exists, indicating there has been a transfer of control to the customer,
no further work or processing is required by the Company, the quantity and quality of the goods has been determined with
reasonable accuracy, the price can be reasonably estimated, and collectability is reasonably assured.
The Company receives revenue from Mineral Resources Limited (“MIN”) based on a mine gate sale agreement based
on MIN’s realised price. The Company recognises revenue when the ore passes over the ships rail which is typically at
the bill of lading. MIN send monthly shipping information based on either a provisional basis at the date of shipment or
the subsequent final pricing, which is typically once the vessel has arrived at its destination and quotation pricing has
been determined. BCI recognises revenue on provisionally priced sales based on the estimated fair value of the total
consideration, which is adjusted for any changes when pricing is finalised. Provisionally priced sales for which price
finalisation is referenced to the relevant metal price index have an embedded commodity derivative. The embedded
derivative is carried at fair value through profit and loss as part of trade receivables. The period between provisional pricing
and final invoices is typically approximately 30 to 90 days.
Interest revenue
Interest revenue is recognised on a time proportionate basis using the effective interest method.
Note 2 – Expenses
Amortisation of mine properties
Royalties
Cost of sales
Employee benefits expense
Depreciation and amortisation
Share based payments
Non-executive directors’ fees
Occupancy related expenses
Consultant and legal fees
Other
Administration expenses
2019
$000’s
2,547
41,783
44,330
2,891
76
104
466
395
170
1,317
5,419
2018
$000’s
2,837
27,117
29,954
3,356
80
365
481
229
1,301
1,306
7,118
BCI Minerals Limited Annual Report 2019
29
Note 3 – Impairment of Non-Financial Assets
Accounting policy
Assets are reviewed for impairment at each reporting date or whenever events or changes in circumstances indicate that
the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which an asset’s carrying
amount exceeds its recoverable amount.
The valuation used by BCI to determine recoverable amount is the higher of an asset’s fair value less costs of disposal
(“FVLCD”) and value in use (“VIU”).
Accounting standards require that the valuation technique used be consistent with one of three commonly accepted
approaches outlined below:
• Level 1 Market - The market approach uses prices and other relevant information generated by market transactions
involving identical or comparable (i.e. similar) assets, liabilities or a group of assets and liabilities, such as a business.
Examples relevant to BCI include earnings multiples or JORC reserve/resource multiples;
• Level 2 Cost - The cost approach reflects the amount that would be required currently to replace the service capacity of
an asset (often referred to as current replacement cost); and
• Level 3 Income - The income approach converts future amounts (e.g. cash flows or income and expenses) to a single
current (i.e. discounted) amount. When the income approach is used, the fair value measurement reflects current market
expectations about those future amounts. Examples include Net Present Value (“NPV”) techniques.
FVLCD is an NPV calculation which is consistent with the Level 3 income approach.
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately
identifiable cash flows which are largely independent of the cash flows from other assets or groups of assets (cash-
generating units).
An impairment loss is recognised for the amount by which an asset’s carrying amount exceeds its recoverable amount.
Non-financial assets other than goodwill that have been impaired are reviewed for possible reversal of impairment at each
reporting period.
Impairment assessment
The Company has completed its annual review of its assets for impairment. Based on these assessments, the Company has
concluded that impairment of assets was not required.
Revenue assumptions
Cash flow projections used to estimate recoverable amounts include assumptions on revenue. The assumptions used for
revenue in impairment testing are summarised below:
CFR 62% Fe iron ore price (USD/dmt, nominal)
Years 1-5
Years 6-10
Years 11-20
Foreign exchange rate (AUD:USD, nominal)
Years 1-5
Years 6-10
Years 11-20
Inflation (% per annum)
USD inflation rate
Key estimates and judgements
2019
2018
71-81
68-74
76-92
64-69
72-83
85-96
0.74-0.78
0.76-0.77
0.74
0.74
2.2
0.76
0.76
2.8
The recoverable amount of mine property, plant and equipment and intangible assets is estimated on the basis of the
discounted value of future cash flows. The estimates of future cash flows are based on significant assumptions including:
• estimates of the quantities of ore reserves and mineral resources for which there is a high degree of confidence of
economic extraction and the timing of access to these reserves and resources;
• future iron ore prices and exchange rates based on forecasts by a range of recognised economic forecasters as well as
recent spot prices and rates;
• production rates, production costs and capital expenditure based on approved budgets and projections including
inflation factors;
• the timing of when production will commence from projects for which royalties are payable to the Company; and
• the asset specific discount rate applicable to the cash generating unit.
30
Note 4 – Income Taxes
Current tax expense/(benefit)
Current period
Adjustments for prior periods
Deferred tax expense/(benefit)
Origination and reversal of temporary differences
De-recognition of deferred tax assets
Recognition of previously unrecognised tax losses
Equity deferred tax movement
Adjustments for prior periods
Income tax expense/(benefit) reported in the Consolidated statement of profit or loss
and other comprehensive income
Reconciliation of effective tax rate
Profit / (loss) before tax
Income tax at the statutory rate of 30 per cent (2017: 30 per cent)
Non-deductible expenses
Temporary differences derecognised
Utilisation of tax losses
Tax losses not recognised
Recognised directly in equity
Under/(over) provided in prior periods and other
Tax refund from prior years
Income tax benefit reported in the Consolidated statement of profit or loss and other
comprehensive income
Accounting policy
2019
$000’s
2018
$000’s
94
1,495
1,589
(39)
(848)
1,073
(79)
(186)
(79)
1,510
11,932
3,580
31
(769)
902
(3,650)
(79)
(15)
1,510
1,510
(1,332)
1,411
79
1,169
(1,140)
-
(79)
(29)
(79)
-
(16,910)
(5,073)
110
(1,061)
-
6,132
(79)
(29)
-
-
The income tax expense on income for the financial year is the tax payable on the current financial period’s taxable income
based on the national income tax rate, adjusted by changes in deferred tax assets and liabilities attributable to temporary
differences and to unused tax losses.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the financial statements.
Deferred income tax is determined using tax rates and laws that have been enacted or substantially enacted by the
statement of financial position date and are expected to apply when the related deferred income tax asset is realised or
the deferred income tax liability is settled.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and liabilities are
offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the
asset and settle the liability simultaneously.
Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity.
Significant judgement
The Company is subject to income taxes in Australia. Significant judgement is required in determining the provisions for
income taxes. There are certain transactions and calculations undertaken during the ordinary course of business for which
the ultimate tax determination may be subject to change. The Company estimates its tax liabilities based on the Company’s
understanding of the tax law. Where the final tax outcome of these matters is different from the amounts that were initially
recorded, such differences will impact the current and deferred income tax assets and liabilities in the period in which such
determination is made.
The Company recognises deferred tax assets relating to carried forward tax losses to the extent they can be utilised. The
utilisation of the tax losses depends on the ability of the entities to generate sufficient future taxable profits. At 30 June
2019, the Company had unrecognised deferred tax assets relating to tax losses of $73.1M (2018: $76.0M). The Company
also has an R&D off-set available of $5.7M (2018 $5.7M).
BCI Minerals Limited Annual Report 2019
31
Deferred tax assets not recognised
Temporary differences
Income Tax losses
Capital losses
Deferred tax assets and liabilities
Amounts recognised in Profit or Loss:
Mine property, plant and development
Provisions
Intangibles
Exploration
Other items
Amounts recognised directly in equity:
Share issue costs in equity
Temporary differences derecognised
Tax assets/(liabilities)
Movements in deferred tax assets
At 1 July 2017
(Charged)/credited
to profit or loss
to (under)/over prior period
At 30 June 2018
(Charged)/credited
to profit or loss
to (under)/over prior period
At 30 June 2019
Movement in deferred tax liabilities
At 1 July 2017
(Charged)/credited
to profit or loss
to (under)/over prior period
At 30 June 2018
(Charged)/credited
to profit or loss
to (under)/over prior period
2019
$000’s
(5,875)
70,423
2,702
2018
$000’s
(5,027)
74,074
1,598
Assets
Liabilities
Net
2019
$000’s
2018
$000’s
2019
$000’s
2018
$000’s
2019
$000’s
2018
$000’s
(3,296)
(2,757)
(3,296)
(2,757)
-
-
113
141
(2,409)
(2,409)
(2,409)
(2,409)
-
113
-
-
529
160
802
-
802
-
141
-
-
843
238
1,222
-
1,222
(591)
(381)
-
(6,677)
5,875
(802)
Provisions
$000’s
Share issue
costs
$000’s
Mine
property
$000’s
88
53
-
141
318
(80)
-
238
(28)
(79)
113
160
-
-
-
-
-
-
-
(781)
(302)
-
(6,249)
5,027
(1,222)
Other
$000’s
618
165
60
843
(339)
25
529
(591)
148
160
(5,875)
5,875
-
Temporary
differences
derecognised
$000’s
-
-
-
-
-
-
-
Intangibles
$000’s
Mine
property
$000’s
Exploration
$000’s
Other
$000’s
Temporary
differences
derecognised
$000’s
(2,409)
(2,114)
(382)
(6)
3,887
-
-
(650)
7
(2,409)
(2,757)
-
-
(486)
(53)
(399)
-
(781)
190
-
(591)
(259)
(37)
(302)
(79)
-
(381)
1,140
-
5,027
848
-
5,875
(781)
541
238
(5,027)
5,027
-
Total
$000’s
1,024
138
60
1,222
(446)
25
802
Total
$000’s
(1,024)
(168)
(30)
(1,222)
473
(53)
(802)
At 30 June 2019
(2,409)
(3,296)
32
Note 5 – Cash and Cash Equivalents
Cash at bank
Cash on deposit
Total
Reconciliation of profit / (loss) after income tax to net cash flows from operating activities
Net Profit / (loss)
Depreciation and amortisation
Write down of exploration tenements
Share based payments
Gain on disposal of exploration tenements
Loss on disposal of plant and equipment
Other
(Increase)/decrease in assets
Trade and other receivables
Increase/(decrease) in liabilities
Trade and other payables
Provisions
Net cash used in operating activities
2019
$000’s
12,219
21,483
33,702
12,897
2,623
3,025
104
(19,019)
(3)
8
2018
$000’s
5,824
7,233
13,057
(16,910)
2,917
-
365
-
-
33
(14,415)
2,841
8,719
(92)
(6,153)
(1,372)
169
(11,957)
Cash on deposit relates to 31-day term deposits held with financial institutions. See Note 17 – Financial risk management
note for further details.
Accounting policy
For statement of cash flows presentation purposes, cash and cash equivalents includes cash on hand, deposits held at call
with financial institutions, and other short-term, highly liquid investments with original maturities of three months or less
that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
There are no non-cash investing or financing activities.
Note 6 – Trade and Other Receivables
Current
Trade receivables and prepayments
Other receivables
Total current
Non-current
Other receivables
Total non-current
Total trade and other receivables
2019
$000’s
21,566
685
22,251
8,285
8,285
30,536
2018
$000’s
7,171
43
7,213
5,583
5,583
12,796
Due to the short-term nature of current receivables, their carrying amount is approximate to their fair value.
As at 30 June 2019 no receivables were past due or impaired (2018: Nil).
Other current receivables include $36k for GST receivable (2018: $16k). Other non-current receivables represent an estimate of the
amount payable by the operator of the Iron Valley operation for fulfilment of rehabilitation obligations at the end of operations.
Refer to Note 17 for information on the Financial risk management policy of the Company.
Accounting policy
Trade receivables are amounts due from customers for commodities sold in the ordinary course of business.
Trade Receivables that are Provisionally Priced
Trade receivables that contain an embedded derivative relating to the provisional pricing of iron ore are measured at fair value.
At each reporting date the provisional priced receivable is marked to market based on the forward selling price for the quotation
period stipulated in the contract until the quotation period expires and the change in value is recognised in the profit or loss.
Other Trade Receivables
Trade receivables that do not contain an embedded derivative are measured at the amount of consideration that is
unconditional. The Group holds trade receivables with the objective to collect the contractual cash flows and measures them
at amortised cost.
The Group applies the simplified impairment methodology permitted by AASB 9, which requires expected lifetime losses to
be recognised from initial recognition of the receivables.
BCI Minerals Limited Annual Report 2019
33
Note 7 – Property, Plant and Equipment
Mine Properties
$000’s
Plant and
equipment
$000’s
Office furniture,
equipment and IT
$000’s
Year ended 30 June 2018
Opening net book value
Additions
Reclassification of assets
Depreciation and amortisation expense
Closing net book value
At 30 June 2018
Cost
Accumulated depreciation and amortisation
Net carrying amount
Year ended 30 June 2019
Opening net book value
Additions
Disposals
Depreciation and amortisation expense
Closing net book value
At 30 June 2019
Cost
Accumulated depreciation and amortisation
Net carrying amount
Accounting policy
44,887
-
-
(2,838)
42,049
51,658
(9,609)
42,049
42,049
-
-
(2,547)
39,502
51,658
(12,156)
39,502
61
19
(50)
(5)
25
753
(728)
25
25
140
(3)
(22)
140
870
(730)
140
48
55
50
(74)
79
1,695
(1,616)
79
79
16
-
(54)
41
1,711
(1,670)
41
Total
$000’s
44,996
74
-
(2,917)
42,153
54,106
(11,953)
42,153
42,153
156
(3)
(2,623)
39,683
54,239
(14,556)
39,683
Mine Properties
Once a mining project has been established as commercially viable and technically feasible, expenditure other than that
on land, buildings, plant and equipment is transferred and capitalised as mine property. Mine property costs include past
capitalised exploration and evaluation costs, pre-production development costs, development excavation, development
studies and other subsurface and permanent installation expenditure pertaining to that area of interest.
Mine property costs are accumulated in respect of each separate area of interest. Costs associated with commissioning
new assets in the period before they are capable of operating in the manner intended by management, are capitalised.
Mine property costs incurred after the commencement of production are capitalised to the extent they are expected to give
rise to a future economic benefit.
When an area of interest is abandoned, or the Directors decide that it is not commercial or technically feasible, any
accumulated cost in respect of that area is written off in the financial period the decision is made. Each area of interest is
reviewed at the end of each accounting period and accumulated costs written off to the profit or loss to the extent that
they will not be recoverable in the future.
Amortisation of mine property costs is charged on a unit of production basis over the life of economically recoverable
reserves once production commences.
Mine property assets are assessed for impairment if facts and circumstances suggest that the carrying amount exceeds the
recoverable amount. For the purposes of impairment testing, mine property is allocated to cash-generating units to which
the development activity relates. The cash generating unit shall not be larger than the area of interest.
Plant and equipment
Plant and equipment, including mechanical, electrical, field and computer equipment as well as furniture, fixtures and
fittings, is stated at historical cost less accumulated depreciation. Historical cost includes expenditure that is directly
attributable to the acquisition of the items. Depreciation is calculated on a straight-line basis so as to write off the net cost
of each asset over either its expected useful life of 2.5 to 5 years for furniture, computers and equipment, or the life of the
mine for plant and equipment.
Spare parts, stand-by equipment and servicing equipment is classified as property, plant and equipment if they are
expected to be used during more than one period. Otherwise they are classified as inventory.
Key judgement – ore reserves and mineral resources
Amortisation of mine property assets is based on the depletion of economically recoverable reserves. The rate of
amortisation is re-assessed on a prospective basis when ore reserves are changed for the appropriate ore body in
accordance with the JORC 2012 Guidelines.
34
Note 8 – Exploration and Evaluation
Opening balance
Carrying value of tenements sold
Write down of tenements to recoverable value
Exploration earn-in
Exploration tenements acquisition
Unsuccessful exploration expenditure derecognised
Net carrying amount
Accounting policy
2019
$000’s
14,500
(8,900)
(3,025)
-
-
-
2,575
2018
$000’s
4,600
-
-
1,000
9,000
(100)
14,500
The Company accounts for exploration and evaluation activities as follows:
Acquisition and Exploration earn-in
Exploration and evaluation costs arising from acquisitions and earn-ins are carried forward where exploration and
evaluation activities have not, at reporting date, reached a stage to allow a reasonable assessment of economically
recoverable reserves otherwise they are written down to their recoverable amount.
Exploration and evaluation costs
Costs arising from on-going exploration and evaluation activities are expensed as incurred.
Disposal of tenements
As announced on 21 December 2018, the Company completed the sale of the Kumina tenements, originally acquired
from Mineralogy Pty Ltd in September 2017, to Mineral Resources Limited (ASX: MIN) for total consideration of A$35M
cash including a first cash payment of A$27M received in December 2018, resulting in a gain of $17.8M. A further two
cash payments of A$4M each are due upon first export of iron ore from Kumina and twelve months after first export. No
receivable has been recognised for these payments as development of the Kumina mine is yet to be announced by MIN.
In addition to the sale of Kumina, other tenement sales during the year have resulted in an overall profit on sale of
exploration tenements of $19.0M.
Key judgement – Capitalisation of exploration and evaluation expenditure
The Company has capitalised acquired exploration and evaluation expenditure and earn-in expenditure on the basis that
either it is expected to be recouped through future successful development (or alternatively sale) of the areas of interest
concerned or on the basis that it is not yet possible to assess whether it will be recouped. The future recoverability of
capitalised exploration and evaluation expenditure is dependent on a number of factors, including whether the Company
decides to exploit the related lease itself, or, if not, whether it successfully recovers the related exploration and evaluation
asset through sale.
Factors that could impact the future recoverability include the level of reserves and resources, future technological changes,
costs of drilling and production, production rates, future legal changes (including changes to environmental rehabilitation
obligations) and changes to commodity prices.
BCI currently holds a 30% interest in the Carnegie Potash in a joint venture with ASX-listed potash development company,
Kalium Lakes Limited (“KLL”), who is the joint venture manager. BCI has rights to earn up to a 50% interest through sole-
funding the Pre-Feasibility Study and Feasibility Study phases.
BCI Minerals Limited Annual Report 2019
35
Note 9 – Intangibles
Net carrying value of intangibles:
Royalties
Port lease rights
Net carrying amount
Notes
2019
$000’s
15,502
8,030
23,532
2018
$000’s
15,502
8,030
23,532
The intangible assets were acquired through Iron Ore Holdings Limited as follows:
Royalties
The Company holds royalties over the Koodaideri South and North Marillana Extension tenements. The assets have a finite
life reflecting the underlying resource and will be amortised as the resource is depleted. Production has not commenced at
either Koodaideri South or North Marillana and hence the assets remain unamortised.
The Koodaideri South royalty asset has been tested for impairment with the recoverable amount assessed by reference to
the FVLCD, in line the policy in note 3 and classified as level 3 under the fair value hierarchy. FVLCD was determined using
an income approach based on the net present value of future cash flows projected over the estimated mine life of 32
years. The pre-tax nominal discount rate used in determining FVLCD was 11.2%. Forecast iron ore price, foreign exchange
and inflation assumptions used in the calculation of FVLCD are summarised in Note 3.
The North Marillana Extension royalty asset has been tested for impairment with the recoverable amount assessed by
reference to the FVLCD, in line with the policy in note 3 and classified as level 3 under the fair value hierarchy. FVLCD was
determined using an income approach based on the net present value of future cash flows projected over the estimated
mine life of 10 years. The pre-tax nominal discount rate used in determining FVLCD was 11.2%. Forecast iron ore price,
foreign exchange and inflation assumptions used in the calculation of FVLCD are summarised in Note 3.
The recoverable amounts were determined to be in excess of carrying values, and there are no reasonably possible
changes in key assumptions that would cause the asset to be impaired. Refer to Note 3 for details of the key estimates and
judgements applied in determining the recoverable amount.
Port lease rights
The Company holds a lease at the Cape Preston East Port and a value has been ascribed to the intellectual property
associated with developing this port. The port is yet to be developed and the intangible asset will be amortised once the
port is operational.
The Company has tested the asset for impairment with the recoverable amount assessed by reference to the FVLCD of
the Buckland project, in line with the policy in note 3 and classified as level 3 under the fair value hierarchy. FVLCD for the
Buckland project including mineral assets and the port access rights was determined by estimating cash flows over the
project life of approximately 12 years. The pre-tax nominal discount rate used in determining FVLCD was 12.2%. Forecast
iron ore price, foreign exchange and inflation assumptions used in the calculation of FVLCD are summarised in Note 3.
The recoverable amount was determined to be in excess of carrying value, and there are no reasonably possible changes
in key assumptions that would cause the asset to be impaired. Refer to Note 3 for details of the key estimates and
judgements applied in determining the recoverable amount.
Note 10 – Trade and other payables
Current
Trade payables and accruals
Total
Accounting policy
2019
$000’s
2018
$000’s
18,092
18,092
9,373
9,373
These amounts represent liabilities for goods and services provided to the Company prior to the end of the financial year
which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.
The Company has financial risk management policies in place to ensure that all payables are paid within the credit
timeframe (refer to Note 17).
36
Note 11 – Provisions
Current
Employee benefits
Total current
Non-current
Rehabilitation
Total non-current
Total
Movement in Provisions in 2019
Opening balance 1 July 2018
Changes in rehabilitation estimate
Unwinding of discount (non-cash expense)
Amounts used during the year
Closing balance
Accounting policy
2019
$000’s
2018
$000’s
379
379
8,285
8,285
8,664
Rehabilitation and
site closure
$000’s
Employee
benefits
$000’s
5,583
2,543
159
-
8,285
471
-
-
(92)
379
471
471
5,583
5,583
6,054
Total
$000’s
6,054
2,543
159
(92)
8,664
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of past events, it is
probable that an outflow of resources will be required to settle the obligation, and the amount can be reliably estimated.
Employee benefits, salaries and annual leave
Liabilities for salaries, including non-monetary benefits and annual leave expected to be settled within 12 months of
the reporting date are recognised in respect of employee’s services up to the reporting date. They are measured at the
amounts expected to be paid when the liabilities are settled.
Employee benefits – long service leave
The liability for long service leave is recognised and measured at the present value of expected future payments to be
made in respect of services provided by employees up to the reporting date using the projected unit credit method.
Consideration is given to expected future salary levels, experience of employee departures and periods of service. Expected
future payments are discounted using market yields at the reporting date on corporate bonds with terms to maturity and
currency that match, as closely as possible, the estimated future cash outflows.
The obligations are presented as current liabilities in the Statement of Financial Position if the entity does not have an
unconditional right to defer settlement for at least twelve months after the reporting date, regardless of when the actual
settlement is expected to occur.
Rehabilitation
The Company has obligations to dismantle and remove certain items of property, plant and equipment and to restore and
rehabilitate the land on which they are situated.
A provision is raised for the estimated cost of settling the rehabilitation and restoration obligations existing at balance date,
discounted to present value using an appropriate discount rate. When provisions for rehabilitation are initially recognised,
the corresponding cost is capitalised as an asset within mine properties and amortised accordingly.
Where rehabilitation is conducted systematically over the life of the operation, rather than at the time of closure, costs are
charged to the profit or loss in the period in which the work is undertaken.
At each reporting date the rehabilitation liability is re-measured to account for any new disturbance, updated cost estimates,
changes to the estimated lives of operations, new regulatory requirements and revisions to discount rates. Changes to the
rehabilitation liability are added to or deducted from the related rehabilitation asset and amortised accordingly.
Key estimate – Rehabilitation
The Company’s accounting policy for the recognition of rehabilitation provisions requires significant estimates in determining
the estimated cost for the rehabilitation of disturbed areas, removal of infrastructure and site closure at a point in the future.
These uncertainties may result in future actual expenditure differing from the amounts currently provided.
A provision is made for the estimated cost to rehabilitate the Iron Valley site, which is offset by a receivable from Mineral
Resources Limited recognising the contractual requirement to rehabilitate the site.
BCI Minerals Limited Annual Report 2019
37
Note 12 – Capital Risk Management
The Company’s objective when managing capital is to safeguard its ability to continue as a going concern so that it
can continue to provide returns to shareholders and benefits for other stakeholders, and to maintain an optimal capital
structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the
amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The Company defines capital as equity and net debt. Net debt is defined as borrowings less cash and cash equivalents,
and equity as the sum of share capital, reserves and accumulated losses/retained earnings.
Net debt to equity
Total debt
Less cash and cash equivalents
Excess of cash over debt
Equity
Net debt as percentage of equity - not applicable as the Company has no debt.
2019
$000’s
2018
$000’s
-
33,207
33,207
103,612
-
13,057
13,057
90,611
Note 13 – Contributed Equity
Share capital
Ordinary shares - fully paid
Movements in ordinary share capital
Opening balance
2019
2018
Number
$000’s
Number
$000’s
397,608,910
276,212
394,968,910
266,984
394,968,910
266,984
392,526,910
266,735
Issue of shares under Employee Performance Rights Plan
2,640,000
228
2,442,000
249
Closing balance
Accounting policy
397,608,910
267,212
394,968,910
266,984
Ordinary shares are classified as equity. Costs directly attributable to the issue of new shares or options are recorded in
equity as a deduction, net of tax, from the proceeds.
Terms and conditions of ordinary shares
Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote
per share at shareholders’ meetings. In the event of winding up of the Company, ordinary shareholders rank after all other
shareholders and creditors are fully entitled to any proceeds of liquidations.
Note 14 – Reserves
Share based payments reserve
Balance as at 1 July
Share based payments expense
Issue of shares under Employee Performance Rights Plan
Balance as at 30 June
Financial assets at fair value through other comprehensive income
Balance as at 1 July
Balance as at 30 June
Options exercised reserve
Balance as at 1 July
Balance as at 30 June
Total reserves
Nature and purpose of reserves
2019
$000’s
2018
$000’s
10,764
104
(228)
10,640
(9,009)
(9,009)
3,787
3,787
5,418
10,648
365
(249)
10,764
(9,009)
(9,009)
3,787
3,787
5,542
The share based payments reserve is used to recognise the fair value of options (not exercised), Performance Rights and
equity-settled benefits issued in settlement of share issue costs.
Changes in the fair value of investments such as equities measured at fair value through other comprehensive income, are
recognised in other comprehensive income and accumulated in a separate reserve within equity. On adoption of AASB 9
Financial Instruments investments in listed shares previously classified as available-for-sale were reclassified as financial
assets at fair value through other comprehensive income.
The options exercised reserve is used to recognise the fair value of options exercised.
38
Note 15 – Accumulated Losses
Balance as at 1 July
Net profit / (loss)
Balance as at 30 June
Note 16 – Earnings Per Share
Earnings per share from continuing operations
Profit / (loss) after income tax from continuing operations
2019
$000’s
(181,915)
12,897
(169,018)
2019
$000’s
13,442
Number
2018
$000’s
(165,005)
(16,910)
(181,915)
2018
$000’s
(16,910)
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
397,237,863
394,597,863
Adjustments for calculation of diluted earnings per share:
Vested Performance Rights outstanding at year end
1,320,000
2,640,000
Weighted average number of ordinary shares used in calculating diluted earnings per share
398,557,863
397,237,863
Earnings per share attributable to the ordinary equity holders of the company
Basic earnings / (loss) per share
Diluted earnings / (loss) per share
Accounting policy
Cents
3.26
3.25
Cents
(4.29)
(4.26)
Basic earnings per share is calculated by dividing net profit after income tax attributable to equity holders of the Company
by the weighted average number of ordinary shares on issue during the financial year.
Diluted earnings per share is calculated using net profit after income tax attributable to equity holders of the Company
adjusted for the after-tax effect of dividends and interest associated with dilutive potential ordinary shares. The weighted
average number of shares used is adjusted for the weighted average number of ordinary shares that would be issued on
the conversion of all the dilutive potential ordinary shares into ordinary shares.
BCI Minerals Limited Annual Report 2019
39
Risk management
Note 17 – Financial Risk Management
The Company holds the following financial instruments:
Financial assets
Cash and cash equivalents
Short term investments
Trade and other receivables
Financial liabilities
Trade and other payables
2019
$000’s
2018
$000’s
33,702
340
30,536
64,578
18,092
18,092
13,057
-
12,796
25,853
9,373
9,373
Market (including foreign exchange, commodity price and interest rate risk), credit and liquidity risks arise in the normal
course of the Company’s business. Primary responsibility for identification and control of financial risk rests with senior
management under directives approved by the Board.
a. Market risk
i. Foreign exchange risk
Foreign exchange risk arises from future commitments, assets and liabilities that are denominated in a currency that is
not the functional currency in which they are measured. The Company is not exposed to foreign exchange risk on trade
receivables.
ii. Commodity price risk
The Company’s revenue is exposed to commodity price fluctuations, specifically iron ore prices. The Company measures
exposure to commodity price risk by monitoring and stress testing the Company’s forecast financial position to sustained
periods of low iron ore prices on a regular basis.
Trade receivables outstanding at year end are subject to potential changes in future iron ore prices.
b. Credit risk
Credit risk arises from cash and cash equivalents and deposits with financial institutions, and from receivables from
customers for iron ore sales. For banks and financial institutions, only independently rated parties with a minimum rating
of “A” are accepted in accordance with ratings guidelines of major global credit rating agencies. For customers, credit
reference checks are undertaken. The carrying amount of financial assets recorded in the financial statements, net of any
allowances for losses, represents the Company’s maximum exposure to credit risk without taking account of the fair value
of any collateral or other security obtained.
The maximum exposure to credit risk at the reporting date is the carrying amount of the financial assets as summarised at
the beginning of this note.
The credit quality of financial assets that are neither past due nor impaired can be summarised as follows:
• Cash and cash equivalents $33.7M (2018: $13.1M) held with banks with minimum long term external credit rating of AA-.
• Short term investments $0.3M (2018: $nil) held with banks with a minimum long term external credit rating of AA-
• Current trade and other receivables $22.2M (2018: $7.2M) due from existing customers are backed by an agreement
with quarterly invoices paid within 5 working days. There has been no history of default in the past.
• Non-current receivables $8.3M (2018: $5.6M) due from Mineral Resources Limited under a contractual arrangement as
described in Note 11. No default is expected.
c. Liquidity risk
Prudent liquidity management involves the maintenance of sufficient cash and access to capital markets. It is the policy
of the Board to ensure that the Company is able to meet its financial obligations and maintain the flexibility to pursue
attractive investment opportunities through keeping committed credit lines available where possible, ensuring the Company
has sufficient working capital and preserving the 15% share issue limit available to the Company under the ASX Listing
Rules.
Maturity analysis of financial assets and liabilities
Financial liabilities comprise trade and other payables which have a maturity of less than six months.
40
Group structure
Note 18 – Subsidiaries
The consolidated financial statements include the financial statements of BCI Minerals Limited and the subsidiaries listed in
the following table.
Country of
incorporation
Functional
currency
2019
%
2018
%
Beneficial interest
BC Iron Nullagine Pty Ltd
BCI (SA) Pty Ltd
BC Potash Pty Ltd
BC Gold Pty Ltd
BC Pilbara Iron Ore Pty Ltd
PEL Iron Ore Pty Ltd
Buckland Minerals Transport Pty Ltd
Cape Preston Logistics Pty Ltd
Mardie Minerals Pty Ltd
Iron Valley Pty Ltd
Bungaroo South Pty Ltd
Mal’s Ridge Pty Ltd
Maitland River Pty Ltd
BCI Exploration Pty Ltd
Accounting policy
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
AUD
AUD
AUD
AUD
AUD
AUD
AUD
AUD
AUD
AUD
AUD
AUD
AUD
AUD
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
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of BCI Minerals Limited as at
30 June 2019, and the results of all subsidiaries for the year then ended.
Subsidiaries are all entities (including structured entities) over which the Company has control. The Company controls an
entity when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from
the date on which control is transferred to the group. They are deconsolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the Consolidated Entity are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of an asset
transferred. Accounting policies of subsidiaries are consistent with the policies adopted by the Consolidated Entity.
BCI Minerals Limited Annual Report 2019
41
Note 19 – Segment Information
2019 Segment information
Segment revenue
Sales revenue
Other revenue
Total
Segment results
EBITDA
Interest revenue
Write down of tenements
Depreciation and amortisation
Profit / (loss) before income tax
Segment assets
Segment liabilities
2018 Segment Information
Segment revenue
Sales revenue
Other revenue
Total
Segment results
EBITDA
Interest revenue
Depreciation and amortisation
Profit / (loss) before income tax
Segment assets
Segment liabilities
Iron Valley
$000’s
Mardie
$000’s
Buckland
$000’s
Other
$000’s
Consolidated
$000’s
54,312
(142)
54,170
-
-
-
-
-
-
-
630
630
54,312
488
54,800
12,296
(8,200)
16,499
(4,190)
16,405
-
-
(2,547)
9,749
69,188
23,553
-
-
-
-
630
(3,025)
(76)
(8,200)
16,499
(6,661)
630
(3,025)
(2,623)
11,387
800
-
8,030
-
52,350
3,203
130,368
26,756
Iron Valley
$000’s
Mardie
$000’s
Buckland
$000’s
Other
$000’s
Consolidated
$000’s
32,970
-
32,970
-
-
-
-
-
-
-
479
479
32,970
479
33,449
5,598
(2,885)
(7,501)
(9,625)
(14,413)
-
(2,837)
2,761
54,657
10,767
-
-
-
-
420
(80)
(2,885)
(7,501)
(9,285)
800
-
16,930
-
33,652
4,660
420
(2,917)
(16,910)
106,039
15,427
Management has determined that the Company has four reportable segments, being Iron Valley, Mardie, Buckland and
Other (Corporate and other assets).
Sales revenue comprises iron ore sales from a single location to a single customer in Australia.
Accounting policy
Operating segments are reported in a manner that is consistent with the internal reporting provided to the chief operating
decision maker. The chief operating decision maker has been identified as the Company’s Board. Internal reporting is
provided to the Board on a consolidated basis.
42
Unrecognised Items
Note 20 – Commitments
The Company has two property leases and a lease for certain office equipment all of which expire within one year. The
total minimum future payments under the leases at 30 June 2019 is $87k (30 June 2018: $378k of which $74k was due
between one and five years).
Note 21 – Contingent Liabilities and Assets
As at 30 June 2019, the Company has no contingent liabilities or assets other than additional cash payments in respect of
the sale of the Kumina tenements disclosed in Note 8.
Note 22 – Events Occurring after the Reporting Period
No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly
affect the operations of the Company, the results of those operations, or the state of affairs of the Company in financial
periods subsequent to the year ended 30 June 2019.
Other notes
Note 23 – Parent Entity
The following details information related to the parent entity, BCI Minerals Limited, as at 30 June 2019. The information
presented here has been prepared using accounting policies consistent with those presented in the notes to the accounts.
Statement of Financial Position
Current assets
Total assets
Current liabilities
Total liabilities
Shareholders’ equity
Issued capital
Reserves
Accumulated losses
Total shareholders’ equity
Profit / (Loss) for the year
Total comprehensive income / (loss) for the year
2019
$000’s
33,481
141,438
1,125
53,937
267,212
5,546
(185,257)
87,501
1,805
1,805
Included in note 20 are commitments incurred by the parent entity relating to the lease of offices.
Note 24 – Auditor’s Remuneration
The auditor of BCI Minerals Limited is BDO Audit (WA) Pty Ltd
Amounts received or due and receivable by BDO Audit (WA) Pty Ltd for:
Audit or review of financial reports for the Company
Non-audit services – other assurance services
Non-audit services – tax services
Total
2019
$
65,896
10,211
52,312
128,419
2018
$000’s
12,552
123,068
1,759
37,477
266,984
5,670
(187,063)
85,591
(32,271)
(32,271)
2018
$
58,950
7,889
-
66,839
BCI Minerals Limited Annual Report 2019
43
Note 25 – Related Party Transactions
a. Parent entity
BCI Minerals Limited is the parent entity.
b. Subsidiaries
Interests in subsidiaries are set out in note 18.
c. Key management personnel
Disclosures relating to Key Management Personnel are set out in the Audited Remuneration Report.
Short-term employee benefits
Share based payments
Post-employment benefits
Total
d. Transactions with related parties
Payment for services made to other related parties
2019
$
2018
$
1,400,515
1,673,729
89,505
86,424
228,614
102,811
1,576,444
2,005,154
2019
$
2018
$
445,095
207,101
On 1 March 2017, Michael Blakiston was appointed as a Non-Executive Director of the Company. Mr Blakiston is a partner in
the legal firm Gilbert + Tobin. During the current financial year, the Company made legal fee payments to Gilbert + Tobin of
$445K (2018: $207K). All transactions were on normal commercial terms and conditions.
Note 26 – Share Based Payments
During the 2011-2019 financial years, the Company provided share based payments to employees only, whereas in the
2010 financial year they were also granted to consultants and financers. An employee share option incentive plan was
approved at the shareholder’s annual general meeting of 16 November 2011. An Employee Performance Rights Plan was
initially approved at the shareholder’s annual general meeting of 19 November 2010 and a revised plan was approved at
the Company’s 2016 annual general meeting.
Under the terms of these plans, the Board may offer options and Performance Rights at no more than nominal
consideration to employees or directors (the latter subject to shareholder approval) based on a number of criteria, including
contribution to the Company, period of employment, potential contribution to the Company in the future and other factors
the Board considers relevant. These long-term incentives are provided to certain employees at the discretion of the Board to
deliver long-term shareholder returns. Set out below is a summary of the Performance Rights granted by the Company.
Employee Performance Rights
During the year the Company issued share based payments in the form of Performance Rights to directors and employees
as per below. Refer to the Remuneration Report in the Directors’ Report for more information.
2019 – Performance Rights
Grant date
23/08/2018
*Source: www.asx.com.au
Granted during
the year
Vesting
date
Fair value per right
at grant date
Share price
on grant date*
2,050,000
30/06/2020
$0.01
$0.14
Expected
dividends
0%
The fair value per Performance Right on grant date was determined as follows:
Grant date
Vesting date
Grant date share price
Volatility (per cent)
Dividend yield (per cent)
Risk free rate (per cent)
44
23/08/2018
30/06/2020
$0.14
75.9
0
2.5
2018 – Performance Rights
Grant date
21/08/2017
21/08/2017
27/10/2017
29/11/2017
29/11/2017
18/05/2018
18/05/2018
Granted during
the year
Vesting
date
Fair value per right
at grant date
Share price
on grant date*
Expected
dividends
3,300,000
2,450,000
30/06/2019
30/06/2020
500,000
30/06/2019
2,200,000
2,000,000
1,000,000
1,500,000
30/06/2019
30/06/2020
30/06/2019
30/06/2020
$0.03
$0.02
$0.03
$0.01
$0.01
$0.01
$0.01
$0.19
$0.19
$0.15
$0.16
$0.16
$0.15
$0.15
0%
0%
0%
0%
0%
0%
0%
*Source: www.asx.com.au
The fair value per Performance Right on grant date was determined as follows:
Grant date
Vesting date
Grant date share price
Volatility (per cent)
Dividend yield (per cent)
Risk free rate (per cent)
21/08/2017
21/08/2017
27/10/2017
29/11/2017
29/11/2017
18/05/2018
18/05/2018
30/06/2019 30/06/2020
30/06/2019
30/06/2019 30/06/2020
30/06/2019 30/06/2020
$0.19
94.4
0
2.6
$0.19
95.1
0
2.6
$0.15
94.4
0
2.6
$0.16
94.7
0
2.5
$0.16
94.4
0
2.5
$0.15
94.4
0
2.6
$0.15
95.1
0
2.6
Summary of Performance Rights on issue
Vesting date
Opening balance
at 1 July 2018
Rights granted
during the year
Rights cancelled /
lapsed during
the year
Rights converted
to shares during
the year
Closing balance at
30 June 2019
Rights vested since
30 June 2019
30/06/2019
9,000,000
-
(2,435,000)
(2,640,000)
30/06/2020
5,950,000
2,050,000
(3,600,000)
-
3,925,000
5,400,000
1,320.000
-
Total
11,052,271
2,050,000
(6,035,000)
(2,640,000)
9,325,000
1,320,000
a. Expenses arising from share-based payment transactions
Total expenses arising from share based payments recognised during the financial period as part of employee benefits
expense were as follows. Where Performance Rights are forfeited or cancelled due to a vesting condition not being
satisfied, the previously recognised cumulative share based payment expense is reversed.
Director benefits
Employee benefits
Total
Accounting policy
2019
$
51,962
66,022
117,984
2018
$
139,107
225,471
364,578
The fair value of share based payments granted is recognised as an employee benefit expense with a corresponding
increase in equity. The fair value is measured at grant date and recognised over the period during which the employees
become unconditionally entitled to the options or Performance Rights.
A Monte Carlo simulation is used to value Performance Rights. The Monte Carlo calculation simulates the Company’s share
price and depending on the hurdle arrives at a value based on the number of Performance Rights that are likely to vest.
The employee benefit expense recognised each period takes into account the most recent estimate of the options
and Performance Rights. The impact of revision to original estimates, if any, is recognised in the profit or loss with a
corresponding adjustment to equity.
Key estimate: Share-based payment costs
The cost of share-based payments to financiers is measured by reference to the difference between the nominal value and
net present value of the finance facility provided. The net present value is determined based upon a market comparable
discount rate applicable to similar size companies within the mining sector.
A Monte Carlo simulation has been used to value Performance Rights. The Monte Carlo calculation simulates the returns
of the Company in relation to the peer group and arrives at a value based on the number of Performance Rights that are
likely to vest.
BCI Minerals Limited Annual Report 2019
45
Note 27 – Other Accounting Policies
Summary of other significant accounting policies
Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of associated GST, except where the GST incurred is not
recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset
or as part of the expense item.
Receivables and payables are stated inclusive of the amount of GST receivable or payable, where an invoice has been
issued. The net amount of GST recoverable from, or payable to, the taxation authority is included within receivables or
payables in the statement of financial position.
The GST component of cash flows arising from investing and financing activities, which is recoverable from or payable to
the taxation authority are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from or payable to the taxation authority.
Fair value
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. It is based on the presumption that the transaction takes place either in
the principal market for the asset or liability or, in the absence of a principal market, in the most advantageous market.
The principal or most advantageous market must be accessible to, or by, the Company. Fair value is measured using the
assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in
their best economic interest.
The fair value measurement of a non-financial asset takes into account the market participant’s ability to generate
economic benefits by using the asset at its highest and best use or by selling it to another market participant that would
use the asset at its highest and best use.
In measuring fair value, the Company uses valuation techniques that maximise the use of observable inputs and minimise
the use of unobservable inputs.
Tax consolidation legislation
BCI Minerals Limited and its wholly owned Australian controlled entities have entered into the tax consolidation legislation.
On adoption of the tax consolidation legislation, the entities in the tax consolidated group entered into a tax sharing
agreement which, limits the joint and several liability of the wholly owned entities in the case of a default by the head
entity, BCI Minerals Limited.
The entities entered into a tax funding agreement under which the wholly owned entities fully compensate BCI Minerals
Limited for any current tax payable assumed and are compensated by BCI Minerals Limited for any current tax receivable
and deferred tax assets relating to unused tax losses or unused tax credits that are transferred to BCI Minerals Limited
under the tax consolidation legislation. The funding amounts are determined by reference to the amounts recognised in
the wholly owned entities’ financial statements.
The amounts receivable or payable under the tax funding agreement are due upon receipt of the funding advice from the
head entity, which where appropriate, is issued as soon as practicable after the end of each financial year. The head entity
may also require payment of interim funding amounts to assist with its obligations to pay tax instalments. The funding
amounts are recognised as current intercompany receivables or payables.
New, revised or amending Accounting Standards and Interpretations adopted
The following applicable accounting standards, amendment of standards and interpretations have recently been issued but
are not yet effective. These standards have not been adopted by the Company as at the financial reporting date.
Standard title
AASB 16 Leases
Application date
of the standard
Periods beginning
on or after
1 January 2019
Summary
If a lessee has significant operating leases outstanding at the
date of initial application, right-of-use assets will be recognised
for the amount of the unamortised portion of the useful life,
and lease liabilities will be recognised at the present value of
the outstanding lease payments.
This will increase EBITDA as operating leases that were
previously expensed will be amortised as a right-of-use asset,
and an interest expense on the lease liability. However, there
will be an overall reduction in net profit before tax in the early
years of a lease because the amortisation and interest charges
will exceed the current straight-line expense incurred under
AASB 117 Leases. This trend will reverse in the later years.
There will be no change to the accounting treatment for short-
term leases less than 12 months and leases of low value items,
which will continue to be expensed on a straight-line basis.
Impact on Company’s
financial report
The Company has considered
this standard and identified that
future contractual arrangements
will impact on the financial
statements with new leases for
operating premises giving rise
to a right of use asset.
Current contractual
arrangements will not be
impacted by the standard as
the Company will elect to apply
certain practical expedients in
the standard on transition.
46
Independent Auditor’s Report
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of BCI Minerals Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of BCI Minerals Limited (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 30 June 2019, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including a summary of significant accounting policies and the directors’
declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2019 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance
with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
BCI Minerals Limited Annual Report 2019
47
Carrying Value of Mine Properties
Key audit matter
How the matter was addressed in our audit
At 30 June 2019, we note that the carrying value of
We evaluated management’s assessment of indicators
Mine Properties is significant to the financial
of impairment for Iron Valley as at 30 June 2019. Due
statement, as disclosed in Note 7.
to the market capitalisation being lower than the net
The assessment of indicators of impairment and the
assessment of carrying value of Mine Properties
requires management to make significant accounting
judgements and estimates. Due to the significance of
estimates and assumptions in this assessment, we have
assets of the Group we have cross checked
management’s assessment of indicators against the
discounted cash flow model for the asset. Our
procedures on the discounted cash flow model
included, but were not limited to the following:
identified this as a key audit matter.
·
Analysing management’s key assumptions
Refer to Note 3 and Note 7 for the detailed disclosures,
which include the related accounting policies and the
critical accounting judgements and estimates.
used in the discounted cash flow model
against external data and market consensus
information to determine their
reasonableness;
·
Challenging the appropriateness of
management’s discount rates used in the
discounted cash flow model in conjunction
with our internal valuation experts;
·
·
Reviewing mathematical accuracy of the
discounted cash flow model;
Performing sensitivity analysis on significant
assumptions to determine if there would be a
significant change to the carrying value of
the asset; and
·
Assessing the adequacy of the Groups’
disclosure in respect of mine property
carrying values and impairment assessment
assumptions as disclosed in Note 3 and Note
7 of the financial report.
48
Carrying Value of Intangible Assets
Key audit matter
How the matter was addressed in our audit
At 30 June 2019, we note that the carrying value of
We evaluated management’s impairment assessment
Intangible Assets is significant to the financial
for the Intangible Assets by challenging the key
statement, as disclosed in Note 9.
estimates and assumptions used by management. Our
An annual impairment test is required for intangible
assets not being amortised under the Australian
procedures included, but were not limited to the
following:
Accounting Standards.
·
Analysing management’s key assumptions
The assessment of the carrying value of Intangible
Assets requires management to make significant
account judgements and estimates in producing the
used in the discounted cash flow models
against external data and market information
to determine their reasonableness;
discounted cash flow models used to determine
·
Challenging the appropriateness of
whether the assets require impairment. Due the
management’s discount rates used in the
significance of the estimates and assumptions in this
discounted cash flow models in conjunction
assessment we have identified this as a key audit
with our internal valuation experts;
matter.
Refer to Note 3 and Note 9 for the detailed disclosures,
which include the related accounting policies and the
critical accounting judgements and estimates.
·
·
·
·
Challenging assumptions around timing of
future cash flows;
Comparing ore reserve to most recent
available reserve statements;
Checking the mathematical accuracy of the
discounted cash flow;
Performing sensitivity analysis on key
assumptions to determine if there would be a
significant change to the carrying value of
the asset; and
·
Assessed the adequacy of the Group’s
disclosures in respect of intangible asset
carrying values and impairment assessment
assumptions as disclosed in Note 3 and Note
9 of the financial report.
BCI Minerals Limited Annual Report 2019
49
Other information
The directors are responsible for the other information. The other information comprises the
information contained in directors’ report for the year ended 30 June 2019, but does not include the
financial report and our auditor’s report thereon, which we obtained prior to the date of this auditor’s
report, and the annual report, which is expected to be made available to us after that date.
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
identified above 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 on the other information that we obtained prior to the date
of this auditor’s report, 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.
When we read the annual report, if we conclude that there is a material misstatement therein, we are
required to communicate the matter to the directors and will request that it is corrected. If it is not
corrected, we will seek to have the matter appropriately brought to the attention of users for whom
our report is prepared.
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 ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has 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 (http://www.auasb.gov.au/Home.aspx) at:
http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf
This description forms part of our auditor’s report.
50
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 8 to 14 of the directors’ report for the
year ended 30 June 2019.
In our opinion, the Remuneration Report of BCI Minerals Limited, for the year ended 30 June 2019,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit (WA) Pty Ltd
Glyn O'Brien
Director
Perth, 23 August 2019
BCI Minerals Limited Annual Report 2019
51
Auditor’s Independence Declaration
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY GLYN O'BRIEN TO THE DIRECTORS OF BCI MINERALS LIMITED
As lead auditor of BCI Minerals Limited for the year ended 30 June 2019, I declare that, to the best of
my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of BCI Minerals Limited and the entities it controlled during the period.
Glyn O'Brien
Director
BDO Audit (WA) Pty Ltd
Perth, 23 August 2019
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
52
Mineral Resources and Ore Reserves
BCI has a substantial Mineral Resource and Ore Reserves base across its portfolio of operating and development projects
in the Pilbara region of Western Australia. The Company’s Mineral Resources and Ore Reserves are summarised in the
following tables and further details are provided below.
Mineral Resources
Project
Iron Valley
Buckland
Total
Ore Reserves
Project
Iron Valley
Buckland
Total
Cut-off % Fe
Mt
Fe %
CaFe %
SiO2 %
Al2O3 %
50
50
189.9
283.3
473.2
58.0
56.5
62.5
61.4
5.5
7.8
3.3
2.7
Cut-off % Fe
Mt
Fe %
CaFe %
SiO2 %
Al2O3 %
54
54
89.0
134.3
223.3
58.3
57.6
63.0
62.6
5.0
6.5
3.1
2.4
P %
0.17
0.14
P %
0.18
0.15
LOI %
7.2
8.1
LOI %
7.5
8.0
Iron Valley
Mineral Resource and Ore Reserve estimates for Iron Valley as at 30 June 2019 are set out below, with a comparison
to 30 June 2018 figures. The estimates have been completed by MIN, the operator of the Iron Valley mine. Mineral
Resources reduced by 7.9Mt accounting for mining depletion. Ore Reserves reduced by 6.4Mt during the year, due to
mining depletion, updated iron ore price, exchange rate and cost assumptions.
Iron Valley Mineral Resource Estimate (100% BCI, subject to iron ore sale agreement with MIN)
Classification
Measured – In-situ
Measured – Stockpile
Indicated – In-situ
Inferred – In-situ
Total as at 30-Jun-19
Total as at 30-Jun-18
Cut-off % Fe
50
50
50
50
50
50
Mt
81.8
4.6
77.4
26.1
189.9
197.8
Fe %
CaFe %
SiO2 %
Al2O3 %
57.8
56.4
58.5
57.8
58.0
58.1
62.7
59.9
63.0
61.3
62.5
62.6
5.2
8.1
5.1
6.6
5.5
5.4
3.2
3.7
3.2
3.9
3.3
3.3
Iron Valley Ore Reserve Estimate (100% BCI, subject to iron ore sale agreement with MIN)
Classification
Proved – In-situ
Proved – Stockpiles
Probable – In-situ
Total as at 30-Jun-19
Total as at 30-Jun-18
Cut-off % Fe
54
54
54
54
54
Mt
52.3
4.6
32.2
89.0
95.4
Fe %
CaFe %
SiO2 %
Al2O3 %
58.3
56.4
58.6
58.3
58.4
63.2
59.9
63.2
63.0
63.1
4.7
8.1
5.0
5.0
5.0
3.1
3.7
3.1
3.1
3.1
Notes:
• Tonnages are dry metric tonnes and have been rounded. Small difference in totals may exist due to rounding.
• CaFe means “calcined Fe” and equals Fe% / (1- LOI%).
• Stockpiles have been converted to dry tonnes based on a 7% moisture content.
• Stockpiles include 1.1Mt of post-process lump and fines products and 3.5Mt of pre-process ore.
P %
0.19
0.14
0.17
0.14
0.17
0.17
P %
0.19
0.14
0.16
0.18
0.18
LOI %
7.9
5.9
7.2
5.6
7.2
7.2
LOI %
7.8
5.9
7.2
7.5
7.4
BCI Minerals Limited Annual Report 2019
53
Buckland
Mineral Resource and Ore Reserve estimates for Buckland as at 30 June 2019 are set below, with a comparison to
30 June 2018 figures. There were no changes to the Mineral Resource and Ore Reserve estimates during the year.
Buckland Mineral Resource Estimate (100% BCI)
Deposit
Classification
Cut-off % Fe
Bungaroo
South Area
Regional Satellite
Deposits
Sub-total
Measured
Indicated
Inferred
Indicated
Inferred
Measured
Indicated
Inferred
Total as at 30-Jun-19
Total as at 30-Jun-18
50
50
50
50
50
50
50
50
50
50
Buckland Ore Reserve Estimate (100% BCI)
Deposit
Classification
Cut-off % Fe
Bungaroo
South Area
Proved
Probable
Total as at 30-Jun-19
Total as at 30-Jun-18
54
54
54
54
Mt
30.9
224.0
3.4
11.1
13.8
30.9
235.1
17.2
283.3
283.3
Mt
23.2
106.7
134.3
134.3
Fe %
CaFe %
SiO2 %
Al2O3 %
57.4
56.6
54.7
55.4
54.8
57.4
56.5
54.8
56.5
56.5
62.1
61.6
59.4
59.5
59.9
62.1
61.5
59.8
61.4
61.4
6.7
7.8
10.2
8.8
7.8
6.7
7.9
8.3
7.8
7.8
3.0
2.4
3.0
4.0
4.2
3.0
2.5
4.0
2.7
2.7
Fe %
CaFe %
SiO2 %
Al2O3 %
58.3
57.5
57.6
57.6
62.9
62.6
62.6
62.6
5.8
6.6
6.5
6.5
2.9
2.3
2.4
2.4
P %
0.15
0.15
0.13
0.11
0.11
0.15
0.14
0.11
0.14
0.14
P %
0.15
0.15
0.15
0.15
LOI %
7.6
8.1
7.9
6.9
8.6
7.6
8.1
8.4
8.1
8.1
LOI %
7.4
8.1
8.0
8.0
Notes:
• Bungaroo South Area is Bungaroo South and Dragon. Regional Satellite Deposits are Rabbit, Rooster and Snake.
• Tonnages are dry metric tonnes and have been rounded. Small difference in totals may exist due to rounding.
• CaFe means “calcined Fe” and equals Fe% / (1- LOI%).
Mineral Resources and Ore Reserves Governance
BCI’s Mineral Resources and Ore Reserves as at 30 June 2019 are reported in accordance with JORC (2012) guidelines.
In relation to Buckland, the Mineral Resource and Ore Reserve estimates are completed by or under the guidance of a
suitably qualified BCI or independent Competent Person. The estimates are based on industry standard techniques and
standard company practices for public reporting.
In relation to Iron Valley, the Mineral Resource and Ore Reserve estimates are completed by or under the guidance
of a suitably qualified MIN or independent Competent Person. BCI is satisfied with the procedures MIN has advised it
has in place for Mineral Resource and Ore Reserve estimation. Suitably qualified BCI personnel have also reviewed the
documentation and are comfortable with the methodologies used by MIN.
The Mineral Resources and Ore Reserves statement included in the Annual Report is reviewed and approved by a suitably
qualified BCI Competent Person prior to its inclusion.
54
Competent Persons Statements
The Mineral Resources and Ore Reserves statement in this report has been approved by Mr Paul Penna who is an employee
of BCI Minerals Limited and a Member of the Australian Institute of Geoscientists. Mr Penna consents to the inclusion in this
report of the Mineral Resources and Ore Reserves statement in the form and context in which it appears.
The information in this report that relates to the Mineral Resource estimate at Iron Valley is based on, and fairly represents,
information which has been compiled by Mr Matthew Watson, who is a Member of the Australasian Institute of Mining and
Metallurgy and a full time employee of Mineral Resources Limited. Mr Watson has sufficient experience that is relevant to
the style of mineralisation and type of deposit under consideration and to the activity that is being undertaken to qualify as
a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves’. Mr Watson consents to the inclusion in this report of the matters based on his information in
the form and context in which they appear.
The information in this report that relates to the Ore Reserve estimate at Iron Valley is based on, and fairly represents,
information which has been compiled by Mr Ross Jaine, who is a Member of the Australasian Institute of Mining and
Metallurgy and a full-time employee of Mineral Resources Limited. Mr Jaine has sufficient experience that is relevant to the
style of mineralisation and type of deposit under consideration and to the activity that is being undertaken to qualify as a
Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves’. Mr Jaine consents to the inclusion in this report of the matters based on his information in
the form and context in which they appear.
The information in this report that relates to the Mineral Resource estimates at Buckland is based on, and fairly represents,
information which has been compiled by Mr Lynn Widenbar, who is a Member of the Australasian Institute of Mining and
Metallurgy and a full-time employee of Widenbar and Associates. Mr Widenbar has sufficient experience that is relevant to
the style of mineralisation and type of deposit under consideration and to the activity that is being undertaken to qualify as
a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves’. Mr Widenbar consents to the inclusion in this report of the matters based on his information
in the form and context in which they appear.
The information in this report that relates to the Ore Reserve estimate at Buckland is based on, and fairly represents,
information which has been compiled by Mr Alan G. Cooper, who was a Member of the Australasian Institute of Mining and
Metallurgy and was a full-time employee of Snowden Mining Industry Consultants Pty Ltd at the time the estimate was
completed. Mr Cooper has sufficient experience that is relevant to the style of mineralisation and type of deposit under
consideration and to the activity that is being undertaken to qualify as a Competent Person as defined in the 2012 Edition
of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.
BCI Minerals Limited Annual Report 2019
55
Shareholder Information
(as at 30 September 2019)
Substantial Shareholders
Substantial shareholders as disclosed in substantial notices given to the Company are as follows:
Shareholder
Wroxby Pty Ltd
Sandon Capital Pty Ltd
Distribution of Shareholdings
Size of shareholding
1-1,000
1,001-5,000
5,001-10,000
10,001 – 100,000
100,001 and over
Total
Shares held % of issued capital
115,579,126
22,094,102
29.1
5.6
Number of holders
Number of shares % of issued capital
1,470
2,096
1,004
1,781
341
6,692
670,992
5,928,627
7,893,088
60,454,750
323,981,453
398,928,910
0.17
1.49
1.98
15.15
81.21
100.00
Unmarketable Parcels
There were 2,597 members holding less than a marketable parcel of shares in the Company at $0.185 per unit.
Twenty Largest Shareholders
#
Shareholder
1 Wroxby Pty Ltd
2
J P Morgan Nominees Australia Limited
3 Wroxby Pty Ltd
4
5
6
7
8
9
Citicorp Nominees Pty Limited
Norfolk Enchants Pty Ltd
One Managed Invt Funds Ltd
National Nominees Limited
Mineralogy Pty Ltd
One Managed Invt Funds Ltd <1 A/C>
10 Mr Alwyn Petrus Vorster
11
Pacific L Pty Ltd
12 HSBC Custody Nominees (Australia) Limited
13 HSBC Custody Nominees (Australia) Limited – A/C 2
14 Super Smart Investments Pty Ltd
15 Ms Karen Anne Davies + Mr Bruce Donald Maclean
16 Mr Richard Cheng Shih Koo + Ms Cindy Bee Har Koo
17 Minton Ltd
18 Mrs Jing Peng
19 Dr Dennis Jonathan Kar Que Lum
20 Mr Brian Maxwell Durham + Mrs Ann Marie Durham
Shares held % of issued capital
102,114,132
26,527,810
14,263,508
13,287,165
12,073,828
9,138,960
9,106,360
6,090,000
6,000,000
5,305,645
3,000,000
2,444,603
2,358,021
2,300,000
2,183,912
2,179,174
2,102,673
1,691,151
1,645,224
1,500,000
25.60
6.65
3.58
3.33
3.03
2.29
2.28
1.53
1.50
1.33
0.75
0.61
0.59
0.58
0.55
0.55
0.53
0.42
0.41
0.38
Total
225,312,166
56.49
Voting Rights
All issued shares carry voting rights on a one for one basis.
Unlisted Securities
Nil.
56
Corporate Directory
BCI Minerals Limited ABN 21 120 646 924
Registered Office and Principal Place of Business
Annual General Meeting
The 2019 Annual General Meeting of BCI Minerals Limited
will be held at 2pm (AWST) on Thursday 27 November
2019 at the offices of BDO, 38 Station Street, Subiaco,
Western Australia. Details of the business of the meeting
will be provided in the Notice of Meeting.
Copies of the Chairman’s and Managing Director’s
speeches will be available on the Company’s website.
Financial Calendar*
September 2018 quarter report:
Annual General Meeting:
Half-year end:
22 October 2018
27 November 2018
31 December 2018
*Timing of events is subject to change
Level 2, 1 Altona Street
West Perth, Western Australia 6005, Australia
Telephone:
Facsimile:
Website:
Email:
+61 (08) 6311 3400
+61 (08) 6311 3449
www.bciminerals.com.au
info@bciminerals.com.au
Postal Address
GPO Box 2811
Perth, Western Australia 6001, Australia
Executive Directors
Alwyn Vorster – Managing Director
Non-executive Directors
Brian O’Donnell – Chairman
Michael Blakiston
Jenny Bloom
Company Secretary
Susan Hunter
Share Registry
Investors seeking information about their shareholdings
should contact the company’s share registry:
Computershare Investor Services Pty Limited
Level 11, 172 St Georges Terrace
Perth, Western Australia 6000
Postal address: GPO Box 2975, Melbourne Victoria 3001
Telephone:
1300 850 505 (within Australia)
+61 3 9415 4000 (outside Australia)
(03) 9473 2500 (within Australia)
+61 3 9473 2500 (outside Australia)
web.queries@computershare.com.au
www.investorcentre.com/contact
Facsimile:
Email:
Website:
The share registry can assist with queries on share
transfers, dividend payments and changes of name,
address or bank account details.
For security reasons you will need your Security Reference
Number (SRN) or Holder Identification Number (HIN) when
communicating with the share registry.
Australian Securities Exchange Listing
BCI Minerals Limited securities are listed on the Australian
Securities Exchange (ASX) under the code BCI.
BCI Minerals Limited Annual Report 2019
57
Level 2, 1 Altona Street, West Perth,
Western Australia 6005, Australia
GPO Box 2811, Perth, WA 6001
Telephone: +61 (08) 6311 3400
Facsimile: +61 (08) 6311 3449
Email: info@bciminerals.com.au
www.bciminerals.com.au
ABN 21 120 646 924