2015 Annual Financial Report
CORPORATE DIRECTORY
TABLE OF CONTENTS
Corporate Directory
Chairman’s Address
Highlights
Review of Operations
Directors' Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Directors' Declaration
Independent Auditor’s Report
Additional Information
Tenement Schedule
PAGE
Inside Cover
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15
29
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34
68
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72
DIRECTORS
Christopher Rowe
Bill Beament
John Fitzgerald
Peter O’Connor
COMPANY SECRETARY
Liza Carpene
(Non-Executive Chairman)
(Managing Director)
(Non-Executive Director)
(Non-Executive Director)
SHARE REGISTRY
Advanced Share Registry Limited
110 Stirling Highway
Nedlands WA 6009
Australia
Telephone: +61 8 9389 8033
Facsimile: +61 8 9389 7871
Website: www.advancedshare.com.au
REGISTERED OFFICE/
PRINCIPAL PLACE OF BUSINESS
Level 1
388 Hay Street
Subiaco WA 6008
Australia
Telephone: +61 8 6188 2100
Facsimile: +61 8 6188 2111
Website: www.nsrltd.com
Email: info@nsrltd.com
HOME STOCK EXCHANGE
ASX Limited
Level 40, Central Park
152-158 St Georges Terrace
Perth WA 6000
Australia
ASX Code: NST
AUDITORS
Deloitte Touche Tohmastu
Level 14 Woodside Plaza
240 St Georges Terrace
Perth WA 6000
Australia
Cover photograph: Phillip Westerhuis, Graduate Metallurgist at Jundee Gold Mine (April 2015)
Photographer: Evan Collis
2015 Annual Financial Report
CHAIRMAN’S ADDRESS
Dear Shareholder
Annual reports are traditionally a vehicle for Directors to ponder the year that was. Unkind
souls could adopt the view that in doing so, the Directors are insinuating that Shareholders
have been immersed in a cocoon for 12 months and know little about what has transpired
in the business they own.
It is true that most of us appreciate a gentle reminder about events which took place a
year ago. And in Northern Star’s case, I’m sure Shareholders would enjoy a dose of the
good cheer which comes with a brief recollection of the acquisitions and exploration
successes which have transformed our Company so dramatically, so quickly and so
positively.
But as the Chairman of your Company, I’m acutely aware that the past is only relevant to Shareholders insofar
as it is meaningful to the future of Northern Star. And in that respect, rewinding the tape has some merit.
The acquisitions over the past 18 months of the Jundee, Plutonic, Kundana and Kanowna Belle mines have,
somewhat understandably, been heralded as the arrival of Northern Star as a significant force in the Australian
gold mining industry.
But when it comes to assessing what the past year means to the future, I am reminded of the words of Sir
Winston Churchill when he said: “Now this is not the end. It is not even the beginning of the end. But it is,
perhaps, the end of the beginning”.
Your Board believes that this is truly the case in respect to Northern Star.
With multiple assets, critical production mass, strong cash flow and no bank debt, it is now often said that
Northern Star is ideally positioned.
But positioned for what?
In a word, growth. In several words, sustainable growth in total Shareholder returns backed by prudent
financial management.
We believe our Company has succeeded in meeting this objective over the past five years. And we are
confident that our strategy of investing heavily in exploration and development around the quality assets we
have accumulated will underpin the next round of growth.
This financial year alone we will invest more than A$70 million in targeted drilling campaigns to progress the
recent exploration successes as well as expansion and investing capital to potentially bring a further 1.5Moz
into future mine plans. This commitment was made in light of the outstanding results, including eight
discoveries, which stemmed from the A$50 million exploration budget of the past financial year.
But it is important to note that despite investing this A$50 million in exploration, outlaying A$82.5 million to
acquire Jundee, we retired the last of our bank debt, lifted our full-year dividend payout by more than 43%
and increased our cash and investments by another A$82 million to A$178 million at 30 June 2015.
During this process, our return on equity was an exceptional 32% – significantly higher than that achieved by
the vast majority of leading ASX-listed companies. We also have the balance sheet to underwrite further
acquisitions if we believe they will create value for Shareholders.
Your Board believes that this combination strikes the right balance between sustainable growth, strong
Shareholder returns and financial prudence.
This philosophy has underpinned our successful past and I am confident it will be central to our bright future.
Our ability to execute this strategy is determined by the quality of our people. I would like to thank Northern
Star management, employees, contractors and suppliers for their outstanding commitment to realising these
objectives.
And I thank Shareholders for your support as we have set about building and growing your Company.
Yours sincerely
CHRIS ROWE
Chairman
26 August 2015
2015 Annual Financial Report
Page 1
HIGHLIGHTS
Northern Star: an Australian mid-cap gold miner for global investors with
scale, low costs, low debt and asset diversity – a year of achievements:
Jundee Gold Mine acquired, settled 1 July 2014
Entered agreement to acquire the Central Tanami Project Joint
Venture
Mines and Money “Asian Explorer of the Year ”
Resources increased by 44% to 8.9Moz, after 0.6Moz of mining
Reserves increased by 26% to 1.5Moz
Record underlying net profit after tax of A$108.8M
Annual fully franked dividends of A5 cents per share
Return on equity of 32% in FY15
Our VISION is to continue to build a safe, quality mining and exploration
company focussed on creating value for Shareholders.
Our MISSION is to generate earning accretive value for our Shareholders
through operational effectiveness, growth opportunities and
exploration with a prime focus on success to deliver on our targets.
Our CORE VALUES:
2015 Annual Financial Report
Page 2
REVIEW OF OPERATIONS
OVERVIEW
Northern Star Resources Limited (Northern Star) is an ASX 200 gold
(Au) production and exploration company with a Mineral
Resource base of 8.9 million ounces and Ore Reserves of
1.5 million ounces1, located in highly prospective regions of
Western Australia with a total land package of 9,008km2.
Northern Star has delivered on its growth strategy objective of
being a significant gold company by producing 580,784 ounces
of gold from its five West Australian operating business units being
the Paulsens, Plutonic, Kanowna Belle, Kundana2 and Jundee
Mines during the 2015 financial year.
The Company has expanded its footprint into the Northern
Territory with the acquisition of an initial 25% interest in the
2.7 million ounce high-grade Central Tanami Project which will
increase to a 60% interest following commercial production
milestones3 expected to be achieved in 2017.
In parallel, the Company has been rapidly progressing its
exploration activities through the expenditure of A$50M with the
goal of extending mine life at all our operations and creating an
organic pipeline of future projects for the business.
OUR PEOPLE, HEALTH AND SAFETY, ENVIRONMENT AND COMMUNITY
Our People and Our Culture
The past year has been one of integration and consolidation for Northern Star.
Driven by its employees and contractors, the Company has remained
committed to operating its business at all levels based on its core values of:
Safety, Teamwork, Accountability, Respect and Results (STARR).
Across its five operating business units, the experienced and dedicated Northern
Star Team remained focused on streamlining the activities of the business to
deliver on the Company’s promises.
Northern Star is a significant and proud employer with a workforce of ~1,100
direct employees and ~500 contractors across Western Australia, and is looking
forward to expanding employment into the Northern Territory through the
Central Tanami Project.
The STARR Core Values remains as the foundation for developing the culture
within Northern Star, and align and enable our employees and contractors to
achieve Northern Star’s vision. The adherence to our STARR Core Values is non-
negotiable.
Northern Star values diversity in its workforce at all levels and is an equal
opportunity employer, based on the best person for the position at the time of
recruitment. Northern Star’s overall female participation rate increased by 10%
to 13.23% (2014: 12.03%) with management committed to further improving female participation rates in line with our
recruitment practices. The Company’s 2014-15 Workplace Gender Equality Report is located on our website at
http://www.nsrltd.com/about/corporate-governance/.
Northern Star recognises its responsibility to ensure Aboriginal peoples are meaningfully engaged through
employment and enterprise development opportunities across the Company’s operational footprint. Similarly, it
understands Aboriginal people and their place-based affinity with their traditional country offer the organisation a
unique and valued resource of local employees. The Company is constantly reviewing opportunities to increase its
effective engagement of Aboriginal employees and contractors, through both mainstream and fit for purpose roles.
Northern Star encourages all of our contractors and valued business partners to support this strategy, by supporting
the employment and training of local Aboriginal peoples where able.
1 As at 30 June 2015 – see ASX Release dated 4 August 2015.
2 51% interest in the East Kundana Joint Venture.
3 Refer ASX Announcement released on 31 July 2015 titled: “Northern Star set for more growth with completion of Central Tanami deal”
Photograph: Lauren Elliott, Geology Superintendent underground at Paulsens
2015 Annual Financial Report
Page 3
REVIEW OF OPERATIONS
Our people remain our greatest strength and the Company continues to provide opportunities to build outstanding
careers in a dynamic and changing industry. The Company promotes an environment which encourages our
employees to think innovatively and work to impact the direction of the business to produce superior results – but
never to the detriment of safety.
The Company acknowledges the ongoing dedication and hard work of its employees, contractors and suppliers, as
it continues to grow the business further.
Health and Safety
Northern Star values the health and safety of its employees and contractors, and it is an embedded Company focus
which continually drives behaviour based safety systems that promote positive safety behaviour and increases focus
on leading safety indicators. The Five STARR safety program operates at all sites to continually raise awareness on a
day-to-day basis and further improve safety in the workplace.
As part of the consolidation process across the Group, the Company focused on standardising software safety
systems, rolling out new group safety standards, conducted principle mining hazards workshops and undertook
extensive explosives management audits at all operations.
As at 30 June 2015, Northern Star’s Lost Time Injury frequency rate (LTIFR) was 2.1 (2014: 2.4) and its Total Reportable
Injury frequency rate (TRIFR) was 13.0 (2014: 13.3). Although these rates are comparable to the mining standard LTIFR
(2.6) and TRIFR (10.1) in Western Australia4, any injury is unacceptable and Northern Star remains focussed on
proactively reducing these lagging indicators.
The Company will continue to demand strong safety performance in every step of the business as safety is the first
key core value of the organisation and is fundamental to our success.
Environment
in an environmentally
is committed to managing
its
Northern Star
activities
responsible
manner through best-practice action. Northern
Star’s effective management practices, and the
commitment of its employees and contractors,
will ensure its activities have a minimum impact
on the environment. The Company respects its
relevant environmental
the
conditions within related Acts and Regulations,
which are used to shape the Company-wide
environmental management system.
licences and
Following the acquisition of its new operations,
Northern Star has embraced
its expanded
environmental responsibility and will continue to
meet or exceed its statutory requirements on all of
its tenure. The risks associated with environmental
incidents are taken into account as part of the
Company’s normal course of business, and are managed through risk assessments, introduction of preventative
measures, ongoing review and monitoring, and where necessary, effective and efficient corrective actions.
The Company recognises the value for both itself and stakeholders in supporting beyond compliance environmental
practice, where able. The recently expanded Company assets, including both land and environmental staff support
this position.
As an example, Northern Star supports a beyond compliance biodiversity management plan at one of its pastoral
stations. Here, the Company has partnered with pastoralists, relevant government agencies, conservation
organisations and key scientists, and members of the Talka Matuwa Piarku Aboriginal Corporation to implement a
management plan that aims to increase the biodiversity values of the mining-held pastoral lease. Most importantly,
the project aims to achieve this goal without excluding the rights and interests of key-joint stakeholders (miners,
Traditional Owners, and pastoralists). In a regional first, Northern Star’s support sees Traditional Owners implementing
a traditional fire regime, erosion control and flora/fauna monitoring program on the station and around the
operating mine, with pastoralists and mining staff actively engaging in the activities. It is hoped this collaborative
framework will prove to be an effective means of enhancing environmental values on mining held land in the
rangelands region, and be expanded to other Northern Star assets in the future.
4 Source: Safety Performance in the Western Australian Mineral Industry, Accident and Injury Statistics 2013-2014, Department of Mines and Petroleum 2013-2014: LTIFR
2.6 and TRIFR 10.1 (Metalliferous Underground).
Photograph: Jundee Environmental Technician, Brendon McGillivray
2015 Annual Financial Report
Page 4
REVIEW OF OPERATIONS
Community
Creating both respectful and trust-based relationships with all stakeholders is how Northern Star conducts its business
activities.
The Company operates on the belief that as an organisation, it must be guided by a purpose beyond profit and that
the support and trust of its activities by the communities in which it operate is fundamental to the Company’s long-
term success and the creation of a strong Social License to Operate. Stakeholder trust and respect is only gained
through the acknowledgement of the organisation’s impacts on the environmental, economic and social
landscapes: both positive and negative. With this in mind, Northern Star seeks to identify opportunities for the
creation of shared-value for stakeholders, in return for the opportunity to extract mineral wealth.
An example of this value in practice is the Company’s determination towards overcoming Indigenous disadvantage,
by developing meaningful and sustainable employment opportunities for Aboriginal people in remote regions. In
early 2015, with the assistance of the Department of Prime Minister and Cabinet and Central Desert Native Title
Service, Northern Star expanded on the success of its Aboriginal Ranger Program, and implemented a second
initiative at the Plutonic operations. Here, Gingirana peoples are being contracted to directly work with the
environmental department to ensure best practice environmental compliance at the mine site. Participants are
being trained in a range of compliance-orientated roles, in order to build their capacity as a viable environmental
contracting enterprise for industry. Northern Star recognises that Aboriginal peoples’ cultural affinity with the natural
environment provides them with an invaluable and pre-determined skill-set, and that the Company can assist in
building off that cultural value and develop an economic opportunity for indigenous people in remote regions.
In early 2015, Northern Star signed a formal agreement with leading Australian research institution, NintiOne to
partner with their Interplay Project that looks to unpack the interplay between Aboriginal health, culture, community
empowerment, employment, education and well-being. The project is using the Company’s Ranger Program as one
of three national case-studies, which incorporates the training and use of Aboriginal community researchers from the
study sites. The Company anticipates the results will help to ensure more Aboriginal people are provided with the
appropriate resources and opportunities for meaningful career development in the future.
In October 2014, the Company was privileged to be associated with the Muntjiltjarra Wurrgumu Group (MWG) and
their much deserved recognition as runner up in the 2014 Reconciliation Australia – National Indigenous Governance
Awards, which saw several Wiluna-based members travel to the awards ceremony in Melbourne to receive their
award from the Prime Minister – the Hon Tony Abbott and other dignitaries. Northern Star is a strong supporter of the
MWG and looks forward to continue supporting their governance work.
Northern Star recognises the importance of its contribution to our local residential communities, such as Kalgoorlie, as
it is a significant employer of local people, and through a buy-local strategy, utilises local suppliers where possible
and participates in community initiatives and activities. Northern Star also believes that it is important to participate
in community initiatives that are not directly related to our business. The Company and its employees are pleased to
participate in and support initiatives such as the Telethon Adventurers in the fight to find a cure for childhood cancer,
City to Surf which supports people living with disability in Western Australia, the Royal Flying Doctor Service which is a
critical service to remote communities as well as our FIFO operations and the Ruggies Recycling Program which sees
proceeds from recycling efforts donated to PMH Foundation.
Northern Star’s expanded family of employees and contractors are expected to, at all times, embrace an inclusive
culture, and continue to strengthen and expand relationships with all stakeholders.
The Company appreciates all of its new stakeholders through the recent expansion of its business activities,
especially the traditional owners on whose land we operate, the local communities whom surround our mines,
neighbouring pastoralists whose land we share, valued contractors and business partners, and our workforce.
Photograph: Northern Star employees with Wiluna Martu Rangers and Central Desert Staff, Wiluna (Photographer: Wayne Quilliam)
2015 Annual Financial Report
Page 5
REVIEW OF OPERATIONS
Photograph: Pit wall at Jundee (Photographer: Evan Collis)
2015 Annual Financial Report
Page 6
REVIEW OF OPERATIONS
MINE OPERATIONS REVIEW
Measure
Paulsens
Plutonic
Kanowna
Belle
Kundana
(51%)
Jundee
Total
Total Material Mined
Total Material Milled
Gold Grade
Gold Recovery
Gold Produced
Revenue
Cost of Sales
Depreciation & Amortisation
Operating EBIT
tonnes
tonnes
grams/tonne
%
ounces
A$000's
A$000's
A$000's
A$000's
All in Sustaining Cost
A$/ounce sold
Table 1 – Mine Operations Review
455,655
483,456
5.4
89
810,467
836,682
3.6
81
658,243
766,015
4.3
92
354,105
315,885
10.2
97
1,249,633
1,286,273
3,528,103
3,688,311
5.8
93
5.3
91
74,999
78,709
96,749
100,160
222,848
573,465
113,936
(99,079)
(24,072)
13,059
1,264
117,502
(136,029)
(27,065)
(21,033)
1,550
140,283
(102,949)
(17,316)
35,175
1,018
148,734
(79,300)
(27,609)
71,719
711
325,198
(237,946)
(69,194)
86,944
1,008
-
845,653
(655,303)
(165,256)
185,864
1,065
Performance for the 2015 financial year has been sourced from the Paulsens, Plutonic, Kanowna Belle, Kundana and
Jundee gold mines. In the 2015 financial year, a total of 580,784 ounces of gold was sold at an average price of
A$1,453 (2014: A$1,410). All-in sustaining cost in accordance with the new World Gold Council reporting standard for
the period was A$1,065 per ounce.
During the period 3.7 million tonnes were milled at an average head grade of 5.3gpt Au for 573,465 ounces Au
recovered. Unprocessed ore stocks available for mill feed at the end of the period contained 73,339 ounces Au.
Gold in circuit at the end of the period totalled 19,016 ounces. These items are reflected in the accounts as gold in
circuit at cost.
Operational highlights throughout the year included the development of the Paulsens Voyager 2 high grade ore
zone which restored mined grade in-line with historic performance of the mine. The knowledge of this geological
system has enabled continued growth of mine life and continued development down plunge.
The Plutonic operation saw an investing period of capital development to access new ore zones to move the mine
away from remnant activity. During the year, the acquisition of the ~300,000oz Hermes gold project was sought to
complement the life of mine and under-utilised processing facility at Plutonic.
The Kanowna Belle operation continued to yield the benefits of leveraging the significant capital infrastructure in the
mine and improved cost structure. In-mine discovery of Velvet mineralisation is encouraging to extend mine life
further and investment decisions were made to establish drill drive development to gain a targeting advantage.
The Kundana mines performed solidly throughout the year, with the re-establishment of Raleigh production,
productivity growth from Rubicon and Hornet, and the rapid development of Pegasus into production during the
year. The in-mine exploration success demonstrated the quality of this mineralised system and opportunity to grow
mine lives.
Jundee was new to the Company portfolio of assets at the commencement of the financial year. The successful
integration and seamless transition reflected the quality of the asset, the cooperative approach by the vendor, the
strength of the site team and support of associated contractors. This established a great platform to grow mineral
inventory to extend mine life to deliver into the Company strategy.
The Central Tanami Project settlement occurred post the end of the financial year, and planning is underway to
engage with all stakeholders to develop this project back to production. This is an exciting addition to the portfolio
and underpins Company strategy to maintain a profitable production pipeline.
Photograph: Drilling at the Hermes Gold Project
2015 Annual Financial Report
Page 7
REVIEW OF OPERATIONS
EXPLORATION
Paulsens In-Mine Drilling
The Paulsens Mine continued to drill the Voyager 2 and
Titan Extensions down-plunge significantly
increasing
resources in future production areas. Lateral extension
and exploration also targeted the Galileo and Southern
Gabbro vein mineralisation systems.
Pilbara Region
Paulsens Regional
Resource extension drilling at Belvedere resulted in a
revised resource estimate completed. Surface sampling
programs continued on regional targets across the Wyloo
Dome area.
Plutonic In-Mine Drilling
Ashburton
The Plutonic Mine has focussed predominantly on grade
control and
resource drilling. Exploration developed
extensions to the existing mineral resource base in the
Caribbean, Timor, Spur and Pacific East areas of the Mine.
Kalgoorlie Operations In-Mine Drilling
The Kundana and Kanowna Belle Operations undertook
an accelerated large near-mine exploration program that
delivered exceptional growth to the existing mineral
resource domains and six potential new discoveries with
an increase of 1.5 million ounces after depletion. At
Kanowna Belle Operations, exploration maintained the in-
mine resource and defined a maiden open pit resource
for the Six Mile project. Near-mine exploration within the
EKJV area (Northern Star 51%) in the Kundana region was
highly successful with further significant extensions to the
Rubicon and Pegasus Deposits. Exploration within the
Northern Star’s 100% owned Kundana tenements was
the
exceptionally successful with
Millennium Deposit (346,000oz – refer Table 2) and maiden
resources announced
(192,000oz),
Moonbeam (74,000oz) and Artic (41,000oz) deposits. This
will open a new mining area with further drilling planned
for all areas in the oncoming year.
the discovery of
for Pope John
Jundee Operations In-Mine Drilling
The Jundee Operations continued infill and resource
extension drilling within the existing mineral resource and
reserve boundaries resulting in an increase in the Mineral
Resource at Midas, Nexus and Moneyline area.
Photograph: Kalgoorlie Geologists, Darren Cooke (left), Andrew Barker
(middle) and Jonathan Gough (right)
Extensional drilling programs
for near surface oxide
mineralisation were completed at the Titus, Mae West and
Basil prospects.
Kazput Coal Project
A maiden JORC Code 2012 Resource estimate was
completed for the Kazput Coal Project and announced in
Northern Star’s Quarterly Report for the Quarter ended
31 March 2015.
Fortescue JV and Northern Star’s Regional Exploration
Northern Star completed the earn-in obligations to secure
a 60% interest in the FMG Joint Venture area during the
year. Gold exploration programs continued on the
Fortescue JV and 100% Northern Star tenements in the
Ashburton Basin with regional geochemical sampling
programs and
initial drilling programs at the Rhino
prospect completed.
Plutonic Region
Exploration drilling at the Bigfish, Zone 114 and Plutonic
West prospect areas were completed. Evaluation of
drilling results is ongoing with further resource evaluation
drilling planned for the coming year. A 3D seismic survey
was completed in the Bigfish area to assist with drill
targeting.
Hermes Project
Northern Star acquired the Hermes Project from Alchemy
Resources Limited in March 2015 and commenced an
extensional drilling program immediately resulting in a
significant increase in Mineral Resources to 224,000oz as at
30 June 2015. Planning for the development of this deposit
has commenced and will be advanced in the coming
year.
2015 Annual Financial Report
Page 8
REVIEW OF OPERATIONS
Jundee Region
in
resulted
Resource extension drilling at Gourdis-Vause, Desert
Dragon, Cook and Menzies
significant
increase to Mineral
in the 53%
resulting
extensions
Resources at 30 June 2015. Surface exploration within the
regional tenement package south of Jundee mine
resulted
regional
the
geological understanding with
initial drilling on new
targets in the Henry Ward and Area 7 areas. New
mineralised zones were intersected with further follow up
drilling planned.
in a significant upgrade
to
Kalgoorlie Region
Kanowna Belle
Extensional drilling at the historic White Feather prospect
returned significant intersections (see ASX announcement
21 May 2015) with initial exploration completed on targets
at the Goldeneye and Oscar/Fitzroy Chasers prospects.
Kundana EKJV (51% NST)
Surface drilling completed at the Ambition prospect
successful located a new gold mineralised zone on an
interpreted extension of the Zuelika Shear Trend.
Carbine
Drilling programs at the historic Carbine and Paradigm
mines achieved excellent results resulting in a maiden
resource completed for the Carbine deposit. Ongoing
drilling at Paradigm has intersected significant high grade
mineralised zones with further extensional drilling planned
in this area.
Mt Clement Project
(Antimony, Lead, Silver, Gold)
(ARV 80%: NST 20%)
Artemis Resources Limited (ASX: ARV) carried out RC
drilling to test the high grade antimony-lead Dugite East
zone (see ARV ASX Announcement 20 October 2014).
Cheroona & Beatty Park Projects (Copper/Gold)
(RNI earning up to 70%)
A farmin agreement with Resource and Investment NL
(ASX: RNI) was announced on 4 December 2013. RNI are
progressing exploration at the Cheroona and Beatty Park
tenements with an initial drilling program completed at
the
(see RNI ASX
Announcement 6 November 2014).
T10 prospect at Cheroona
Photograph: Caroline Patmore (back) and Rachel Shelton-Smith (front),
Jundee Mine Geologists
2015 Annual Financial Report
Page 9
REVIEW OF OPERATIONS
RESOURCES AND RESERVES
As at 30 June 2015, Northern Star’s JORC 2012 reported Consolidated Group Mineral Resource Estimate (inclusive of
Reserves) is 75.1 million tonnes at 3.7gpt Au for 8.9 million ounces (refer Table 2 below) and the Consolidated Group
Ore Reserve Estimate is 8.6 million tonnes at 5.4gpt Au for 1.5 million ounces (refer Table 3 below).
The Consolidated Group Mineral Resource Estimate and the Consolidated Group Ore Reserve Estimate includes the
Resources and Reserves attributable to the Central Tanami Gold Project (25% interest) which the Company acquired
on 31 July 2015.
The variation on the Northern Star Consolidated Group year on year Mineral Resource is highlighted in Table 2 where
Mineral Resources have increased by 2.7 million ounces Au from 6.2 million ounces Au as at 30 June 2014 year end to
the current 8.9 million ounces Au Measured, Indicated and Inferred Mineral Resource after mining 622,000 ounces.
The variation on the Northern Star Consolidated Group year on year Proved and Probable Ore Reserve is highlighted
in Table 3 where reserves have increased by 300,000 ounces Au from 1.2 million ounces Au as at 30 June 2014 to the
current 1.5 million ounces Au Proven and Probable Reserve at 30 June 2015.
Mineral Resource and Ore Reserve Governance and Internal Controls
Northern Star ensures that the Mineral Resource and Ore Reserve estimates quoted are subject to governance
arrangements and internal controls activated at a site level and at the corporate level. Internal and external reviews
of Mineral Resource and Ore Reserve estimation procedures and results are carried out through a technical review
team which is comprised of highly competent and qualified professionals. These reviews have not identified any
material issues. The Company has finalised its governance framework in relation to the Mineral Resource and Ore
Reserve estimates in line with the expansion of its business.
Northern Star Resources Limited reports its Mineral Resources and Ore Reserves on an annual basis in accordance
with the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (the JORC
Code) 2012 Edition. Mineral Resources are quoted inclusive of Ore Reserves. Competent Persons named by Northern
Star Resources Limited are Members or Fellows of the Australasian Institute of Mining and Metallurgy and/or the
Australian Institute of Geoscientists, and qualify as Competent Persons as defined in the JORC Code.
2015 Annual Financial Report
Page 10
REVIEW OF OPERATIONS
Competent Persons Statements
The information in this announcement that relates to exploration results, data quality, geological interpretations and
Mineral Resource estimations for the Company’s Jundee, Plutonic, Paulsens and Ashburton Project areas is based on
information compiled by Brook Ekers (Member Australian Institute of Geoscientists), who is a full-time employee of
Northern Star Resources Limited. Mr Ekers has sufficient experience which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as
defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves" for the Group reporting. Mr Ekers consents to the inclusion in this announcement of the matters based on
this information in the form and context in which it appears.
The information in this announcement that relates to exploration results, data quality, geological interpretations and
Mineral Resource estimations for the Company’s Kanowna, EKJV, Kundana and Carbine Project areas is based on
information compiled by Darren Cooke and fairly represents this information. Mr Cooke is a Member of the Australian
Institute of Geoscientists who is a full-time employee of Northern Star Resources Limited who has sufficient experience
which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves“. Mr Cooke consents to the inclusion in this
announcement of the matters based on this information in the form and context in which it appears.
The information in this announcement that relates to Ore Reserve estimations for the Company’s Project areas is
based on information compiled by Jeff Brown and fairly represents this information. Mr Brown is a Member of the
Australian Institute of Mining and Metallurgy who is a full-time employee of Northern Star Resources Limited and has
sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to
the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the
"Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Brown consents to
the inclusion in this announcement of the matters based on this information in the form and context in which it
appears.
The information in this announcement that relates to the Central Tanami Gold Project is extracted from the Tanami
Gold NL ASX announcement entitled “Quarterly Report for the Period Ending 31 March 2014” released on 1 May 2014
and is available to view on www.tanami.com.au. The Company confirms that it is not aware of any new information
or data that materially affects the information included in the original market announcement and, in the case of
estimates of Mineral Resources or Ore Reserves that all material assumptions and technical parameters underpinning
the estimates in the relevant market announcement continue to apply and have not materially changed. The
Company confirms that the form and context in which the Competent Person’s findings are presented have not
been materially modified from the original market announcement.
Forward Looking Statements
Northern Star Resources Limited has prepared this announcement based on information available to it. No
representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of
the information, opinions and conclusions contained in this announcement. To the maximum extent permitted by
law, none of Northern Star Resources Limited, its Directors, employees or agents, advisers, nor any other person
accepts any liability, including, without limitation, any liability arising from fault or negligence on the part of any of
them or any other person, for any loss arising from the use of this announcement or its contents or otherwise arising in
connection with it.
This announcement is not an offer, invitation, solicitation or other recommendation with respect to the subscription
for, purchase or sale of any security, and neither this announcement nor anything in it shall form the basis of any
contract or commitment whatsoever. This announcement may contain forward looking statements that are subject
to risk factors associated with gold exploration, mining and production businesses. It is believed that the expectations
reflected in these statements are reasonable but they may be affected by a variety of variables and changes in
underlying assumptions which could cause actual results or trends to differ materially, including but not limited to
price fluctuations, actual demand, currency fluctuations, drilling and production results, Reserve estimations, loss of
market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory changes, economic
and financial market conditions in various countries and regions, political risks, project delay or advancement,
approvals and cost estimates.
2015 Annual Financial Report
Page 11
REVIEW OF OPERATIONS
2015 Annual Financial Report
Page 12
MINERAL RESOURCES Year onAs at 30 June 2015YearTonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Competent OuncesBased on attributable ounces Au(000's) (gpt) (000's) (000's) (gpt) (000's) (000's) (gpt) (000's) (000's) (gpt) (000's) Person(000's)SurfacePaulsens(61) Belvedere129 3.2 13 111 4.8 17 240 4.0 31 3 (4) Merlin523 1.4 24 523 1.4 24 3 - Mt Clement (20%)226 1.8 13 226 1.8 13 8 - UndergroundUpper Paulsens147 10.8 51 106 6.6 23 65 7.2 15 318 8.7 89 1 (2) Voyager (Voy1, Voy2, Titan)562 10.7 194 106 9.7 33 160 9.9 51 828 10.4 278 1 106 Stockpiles127 1.6 6 127 1.6 6 1 (9) Gold in Circuit1 1 1 (2) Subtotal Paulsens836 9.4 252 341 6.3 69 1,085 3.4 120 2,262 6.1 441 27 SurfaceMt Olympus6,038 2.3 448 9,138 2.2 632 15,176 2.2 1,080 2 - Peake113 5.2 19 3,544 3.3 380 3,657 3.4 399 2 - Waugh347 3.6 40 240 3.6 28 587 3.6 68 3 - Zeus508 2.1 34 532 2.2 38 1,040 2.2 72 3 - Electric Dingo98 1.6 5 444 1.2 17 542 1.3 22 3 - Romulus 329 2.6 27 329 2.6 27 3 - Subtotal Ashburton7,104 2.4 546 14,227 2.5 1,122 21,331 2.4 1,668 - SurfaceHermes1,404 2.7 121 1,196 2.7 103 2,600 2.7 224 2 224 UndergroundPlutonic East 37 6.4 8 98 5.6 18 915 5.3 155 1,050 5.3 180 4 19 NW Extension - Indian265 5.7 49 244 6.8 53 663 4.6 98 1,173 5.3 200 4 41 NW Extension - Caspian290 5.4 51 117 5.3 20 407 5.4 71 4 (41) Zone 19 : Baltic346 5.3 59 55 5.9 10 749 4.6 110 1,150 4.9 180 4 1 Zone 19 : Baltic Extended158 4.9 25 766 4.4 108 924 4.5 133 4 37 Zone 61 : Caribbean247 6.9 55 119 6.5 25 352 5.0 57 719 5.9 136 4 27 Zone 124 : Spur - Area 13477 7.5 19 654 5.8 122 994 4.4 142 1,725 5.1 283 4 (89) Zone 124 : Cortez - Med - Adr85 5.7 16 102 5.0 17 358 3.9 45 546 4.4 77 4 4 Zone 124 North : Pacific226 5.0 36 297 4.6 44 523 4.7 80 4 21 Zone 124 North : Timor463 5.8 86 252 4.6 38 715 5.4 124 4 3 Stockpiles3 3.3 0 3 3.3 0 4 (1) Gold in Circuit7 7 4 3 Subtotal Plutonic1,062 6.2 212 3,813 4.6 564 6,660 4.3 919 11,535 4.6 1,694 248 SurfaceWoodline Pit433 2.8 38 433 2.8 38 5 - Six Mile Pit429 1.5 21 429 1.5 21 6 21 Kanowna Belle Underground1,616 4.6 239 4,196 4.4 596 1,917 4.4 270 7,729 4.4 1,105 6 75 Stockpiles56 3.6 6 792 0.9 24 848 1.1 30 6 22 Gold in Circuit12 - 12 6 (2) Subtotal Kanowna Belle1,672 4.8 257 4,988 3.9 620 2,779 3.7 329 9,439 4.0 1,206 116 SurfaceArctic565 2.2 41 565 2.2 41 5 41 UndergroundRaleigh North2 80.1 4 0 106.7 0 2 82.1 5 5 5 Millenium Centenary1,843 5.8 346 1,843 5.8 346 5 346 Pope John538 11.1 192 538 11.1 192 5 192 Moonbeam438 5.2 74 438 5.2 74 5 74 Subtotal Kundana2 80.1 4 0 106.7 0 3,384 6.0 653 3,386 6.0 658 658 SurfaceHornet Pit (51%)86 3.7 10 2 1.6 0 88 3.6 10 5 0 UndergroundRaleigh (50%)24 67.4 51 12 48.0 19 13 52.3 22 49 58.5 92 5 (10) Hornet (51%)52 18.3 30 173 9.3 51 149 7.6 36 373 9.9 118 5 (4) Rubicon (51%)9 18.9 5 103 9.6 32 201 8.5 55 313 9.2 92 5 31 Pegasus (51%) 1,292 11.2 463 442 11.4 161 1,734 11.2 625 6 236 Stockpiles49 8.4 13 49 8.4 13 5 (13) Subtotal EKJV133 23.4 100 1,666 10.7 576 806 10.6 275 2,605 11.3 950 239 Surface5,759 1.4 265 5,759 1.4 265 5 265 Subtotal Kalgoorlie1,806 6.2 361 6,654 5.6 1,196 12,729 3.7 1,521 21,189 4.5 3,079 1,277 MEASUREDINDICATEDINFERRED TOTAL RESOURCESASHBURTON GOLD PROJECTPAULSENS GOLD PROJECTPLUTONIC GOLD PROJECTKALGOORLIE GOLD PROJECTKanowna BelleKundanaEast Kundana Joint Venture (EKJV) Carbine
REVIEW OF OPERATIONS
Table 2 – Consolidated Group Gold Mineral Resources Estimate (inclusive of Reserves) effective 30 June 2015
2015 Annual Financial Report
Page 13
MINERAL RESOURCES Year onAs at 30 June 2015YearTonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Competent OuncesBased on attributable ounces Au(000's) (gpt) (000's) (000's) (gpt) (000's) (000's) (gpt) (000's) (000's) (gpt) (000's) Person(000's)UndergroundBarton- Cardassian121 4.6 18 44 7.1 10 165 5.3 28 7 9 Gateway191 6.4 39 741 8.1 193 185 12.6 75 1,117 8.5 307 7 149 Hamptons151 4.5 22 151 4.5 22 7 10 Invicta42 8.1 11 31 21.1 21 73 13.6 32 7 (4) Nexus/Moneyline/Midas132 6.6 28 423 15.7 214 555 13.6 242 7 (121) Nim3 / Champagne198 9.6 61 161 7.7 40 59 3.7 7 418 8.0 108 7 (19) Westside / Lyons87 7.2 20 238 5.6 43 29 6.4 6 354 6.1 69 7 (5) Wilson47 9.9 15 347 5.7 64 50 7.5 12 444 6.4 91 7 74 Subtotal Jundee Underground523 8.0 135 1,933 6.7 419 821 13.1 345 3,277 8.5 899 92 Open PitCook17 12.8 7 163 5.5 29 180 6.2 36 7 36 Desert Dragon259 2.2 18 112 1.9 7 371 2.1 25 7 25 Gourdis1,128 1.6 58 2,658 1.4 123 3,786 1.5 181 7 181 Menzies426 2.0 27 298 1.9 18 724 1.9 45 7 45 Vause1,796 1.4 79 769 1.8 44 2,565 1.5 123 7 123 Subtotal Jundee Open Pit3,626 1.6 189 4,000 1.7 221 7,626 1.7 410 410 Stockpiles1,075 1.1 38 1,075 1.1 38 7 (2) Gold in Circuit3 3 7 (1) Subtotal Jundee Stockpiles1,075 1.2 41 1,075 1.2 41 (3) Subtotal Jundee1,598 3.4 176 5,559 3.4 608 4,821 3.7 566 11,978 3.5 1,350 499 CTP (25%)1,683 3.0 162 2,373 3.1 239 2,320 3.4 256 6,375 3.2 656 9 656 Stockpiles (25%)425 0.9 12 425 0.9 12 9 12 Subtotal CTP Stockpiles2,108 2.6 174 2,373 3.1 239 2,320 3.4 256 6,800 3.1 668 668 TOTAL RESOURCES7,410 4.9 1,175 25,844 3.9 3,221 41,842 3.3 4,504 75,095 3.7 8,900 2,720 Note :1. Mineral Resources are inclusive of Reserves.2. Mineral Resources are reported at various gold price guidelines (a. AUD $1,600/oz Au - Paulsens, Plutonic, Kanowna, Kundana, Jundee b. AUD $1,850 /oz Au - Ashburton).3. Rounding may result in apparent summation differences between tonnes, grade and contained metal content.4. Numbers are 100 % NST attributable.Competent Persons1. Lauren Elliot. 2. Graeme Bland. 3. Brook Ekers. 4. Luke Barbetti. 5. Darren Cooke. 6. Alan Pederson. 7. Penelope Littlewood. 8. Artemis ASX Release 2011. 9. Tanami Gold 2014 Annual ReportJUNDEE GOLD PROJECTCENTRAL TANAMI PROJECTMEASUREDINDICATEDINFERRED TOTAL RESOURCES
REVIEW OF OPERATIONS
Table 3 – Consolidated Group Mineral Reserves Estimate effective 30 June 2015
2015 Annual Financial Report
Page 14
ORE RESERVESYear onAs at 30 June 2015YearTonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Competent OuncesBased on attributable ounces Au(000's) (gpt) (000's) (000's) (gpt) (000's) (000's) (gpt) (000's) Person(000's)UndergroundUpper Paulsens5 7.2 1 56 4.9 9 61 5.1 10 1 (9) Voyager (Voy1, Voy2, Titan)142 11.9 54 75 7.1 17 217 10.2 71 1 29 Stockpiles127 1.6 6 127 1.6 6 1 (9) Gold in Circuit1 1 1 (2) Subtotal Paulsens275 7.1 63 131 6.2 26 406 6.8 89 (35) ASHBURTON GOLD PROJECTSurfaceMt Olympus248 3.6 29 113 3.6 13 361 3.6 42 2 - Peake47 5.3 8 47 5.3 8 2 - Subtotal Ashburton248 3.6 29 160 4.1 21 408 3.8 50 - PLUTONIC GOLD PROJECTUndergroundPlutonic East 53 5.0 9 69 4.1 9 122 4.5 18 3 (4) NW Extension - Indian81 5.7 15 90 5.3 15 171 5.5 30 3 16 NW Extension - Caspian0 6.6 0 52 6.4 11 52 6.4 11 3 (15) Zone 19 : Baltic26 6.2 5 3 3.9 0 29 6.0 6 3 (1) Zone 61 : Caribbean69 5.4 12 104 4.6 15 173 4.9 28 3 24 Zone 124 : Spur - Area 13487 6.0 17 40 7.3 9 128 6.4 26 3 5 Zone 124 : Cortez - Med - Adr11 8.4 3 17 4.7 3 28 6.1 6 3 (3) Zone 124 North : Pacific0 11.2 0 49 8.5 14 50 8.5 14 3 13 Zone 124 North : Timor1 4.4 0 52 4.3 7 52 4.3 7 3 2 Stockpiles3 3.3 0 3 3.3 0 3 (1) Gold in Circuit7 7 3 3 Subtotal Plutonic332 6.3 68 477 5.5 84 809 5.8 151 39 Kanowna BelleKanowna Belle Underground302 4.8 46 615 4.0 80 917 4.3 126 5 (67) Stockpiles56 3.6 6 792 0.9 24 848 1.1 30 5 22 Gold in Circuit12 12 5 (2) Subtotal Kanowna Belle358 5.7 65 1,407 2.3 103 1,765 3.0 168 (47) KundanaUndergroundRaleigh North13 6.5 3 0 1.2 0 13 6.4 3 4 3 Subtotal Kundana13 6.5 3 0 1.2 0 13 6.4 3 3 East Kundana Joint Venture (EKJV)UndergroundRaleigh (50%)89 13.1 38 17 10.6 6 106 12.7 43 4 8 Rubicon / Hornet (51%)107 10.2 35 180 7.3 42 287 8.4 77 4 (33) Pegasus (51%)3 4.8 0 1,219 7.9 310 1,222 7.9 310 4 184 Stockpiles49 8.4 13 49 8.4 13 4 (13) Subtotal EKJV248 10.8 86 1,416 7.9 358 1,664 8.3 444 145 Subtotal Kalgoorlie618 7.7 154 2,823 5.1 461 3,441 5.6 615 101 JUNDEE GOLD PROJECTUndergroundBartonCardassian121 4.6 18 121 4.6 18 6 1 Gateway191 6.4 39 741 8.1 193 932 7.7 232 6 128 Hamptons151 4.5 22 151 4.5 22 6 10 Invicta42 8.1 11 42 8.1 11 6 (3) Nexus/Moneyline/Midas132 28 132 6.6 28 6 28 Nim3 / Champagne198 9.6 61 161 7.7 40 359 8.8 101 6 (8) Westside / Lyons87 7.2 20 238 5.6 43 325 6.0 63 6 (8) Wilson47 9.9 15 347 5.7 64 394 6.2 79 6 67 Subtotal523 8.0 135 1,933 6.7 419 2,456 7.0 554 215 Stockpiles1,075 1.1 38 1,075 1.1 38 6 (2) Gold in Circuit3 3 6 (1) Subtotal Jundee Stockpiles1,075 1.2 41 1,075 1.2 41 (3) Subtotal Jundee1,598 3.4 176 1,933 6.7 419 3,531 5.2 595 212 TOTAL RESERVES3,071 5.0 489 5,524 5.7 1,011 8,595 5.4 1,500 317 Note :1. Mineral Reserves are reported at the following gold prices of AUD $1,400/oz Au, except Ashburton at AUD $1,600/oz.2. Tonnages include allowances for losses resulting from mining methods with tonnages rounded to the nearest 1,000 tonnes.3. Ounces are estimates of metal contained in the Mineral Reserve and do not include allowances for processing losses. 4. Numbers are 100 % NST attributable.Competent Persons1. Tim McCambridge. 2. Shane Mcleay (Entech Pty Ltd). 3. Anthony Malavisi. 4. Rob Parsons. 5. Stasi Capsanis. 6.William Stirling.TOTAL RESERVESPAULSENS GOLD PROJECTPROVED PROBABLEKALGOORLIE GOLD PROJECT
DIRECTORS’ REPORT
The Directors present their report on the consolidated entity consisting of Northern Star Resources Limited (the Company)
and the entities it controlled at the end of, or during, the year ended 30 June 2015. Throughout the report, the consolidated
entity is referred to as the Group.
DIRECTORS
The following persons were Directors of Northern Star Resources Limited during the whole of the financial year and up to the
date of this report:
Name and Qualifications
Experience, Special Responsibilities and Other Directorships
Christopher K G Rowe
BA, MA Economics and Law
Independent Non-Executive Chairman
Appointed: 20 February 2003
Mr Rowe has practised as a lawyer both in the United Kingdom and in Western Australia
before becoming a full time consultant to the mining and oil and gas industry. He has been
chairman or deputy chairman of a number of public listed mining and oil and gas related
companies in Australia and North America, holding both executive and non-executive
positions.
In addition to his resource related actives, Mr Rowe acted as one of the Counsel Assisting
the Royal Commission into WA Inc. and has served on the EPA of Western Australia as both
a member and as Deputy Chairman.
Mr Rowe is currently Chairman of ASX listed Target Energy Limited and fund manager
Hawkesbridge Capital Pty Ltd, and was previously a director of Tangiers Petroleum Limited.
Mr Rowe is a member of the Audit Committee, and Chair of the Nomination and
Remuneration Committees.
Mr Beament is a mining engineer with more than 20 years’ experience in the resource
sector. Previously he held several senior management positions, including General Manager
of Operations for Barminco Limited with overall responsibility for 12 mine sites across Western
Australia and General Manager of the Eloise Copper Mine in Queensland. Mr Beament is
the current President of Western Australian School of Mines Graduate Association
representing over 3,000 graduates.
Mr Beament is a member of the Nomination Committee.
Mr O’Connor has extensive global experience in the funds management industry, both in
public and private companies in developed and emerging economies. He was co-founder,
director and deputy chairman of IMS Selection Management Ltd which had $10 billion
under management or advice from 1998-2008. Following the sale of IMS to BNP Paribas in
2008, he was deputy chairman of FundQuest UK Ltd with $10 billion under management,
and FundQuest globally had $35 billion of assets under management from 2008-2010.
Mr O’Connor was previously a Director and Chairman of ASX listed Brazilian Metals Group
Limited (from May 2011 to October 2012), LSE listed Advance Developing Markets Fund
(from October 1998 to April 2012) and TSX listed NEO Material Technologies Inc (from
December 1993 to June 2012).
Mr O’Connor is a member of the Audit, Nomination and Remuneration Committees.
Mr Fitzgerald has over 25 years resource financing experience and has provided project
finance and corporate advisory services to a large number of companies in the resource
sector.
Mr Fitzgerald is the Managing Director of Optimum Capital Pty Ltd, a corporate advisory
business focussed on the mining sector. He has previously held senior positions at NM
Rothschild & Sons, Investec Bank Australia, Commonwealth Bank and HSBC Precious Metals.
Mr Fitzgerald is a Chartered Accountant, a Fellow of the Financial Services Institute of
Australasia and a graduate member of the Australian Institute of Company Directors.
Mr Fitzgerald is a Non-Executive Director of Danakali Limited, Chairman of Atherton
Resources Limited and was previously Chairman of Integra Mining Limited.
Mr Fitzgerald is the Chair of the Audit Committee and a member of the Nomination and
Remuneration Committees.
Ms Carpene has worked in the mining industry for more than 19 years and has significant
experience in corporate administration, human resources, IT and community relations. Most
recently, Ms Carpene was Company Secretary/CFO for listed explorer Venturex Resources
Limited and previously held various site and Perth based management roles with Great
Central Mines, Normandy Mining, Newmont Australia, Agincourt Resources and Oxiana.
Ms Carpene is a Non-Executive Director of Alchemy Resources Limited (from 18 March
2015).
William J (Bill) Beament
B.Eng-Mining (Hons)
Managing Director
Appointed: 20 August 2007
Peter E O’Connor
MA, Economics and Political Science,
Trinity College, Dublin University;
Barrister-at Law, The Kings Inn, Dublin
Independent Non-Executive Director
Appointed: 21 May 2012
John D Fitzgerald
CA, Fellow FINSIA, GAICD
Independent Non-Executive Director
Appointed: 30 November 2012
COMPANY SECRETARY
Liza Carpene
MBA, AGIA, ACIS, GAICD
Company Secretary
Appointed: 15 April 2013
2015 Annual Financial Report
Page 15
DIRECTORS’ REPORT
DIRECTORS’ MEETINGS
The number of meetings of the Company’s Board of Directors and each Board Committee held during the year ended
30 June 2015, and the numbers of meetings attended by each Director were:
DIRECTORS’ MEETINGS
AUDIT
REMUNERATION
NOMINATION
MEETINGS OF COMMITTEES
Director
Christopher Rowe
Bill Beament
John Fitzgerald
Peter O'Connor
Attended
12
13
14
14
* Not a member of the relevant committee
Held
14
14
14
14
PRINCIPAL ACTIVITIES
The principal activities of the Group are:
Attended
4
*
4
4
Held
4
*
4
4
Attended
3
*
3
3
Held
3
*
3
3
Attended
2
2
2
2
Held
2
2
2
2
mining of gold deposits at Paulsens, Plutonic, Kanowna Belle, Kundana and Jundee operations;
construction and development of extensions to existing gold mining operations; and
exploration for gold deposits in the Ashburton, Kalgoorlie and Plutonic regions of Western Australia.
No significant changes in the principal activities of the Group occurred during the year ended 30 June 2015.
The entity’s operations are discussed in the Review of Operations section at the front of this report.
FINANCIAL OVERVIEW
Key Highlights
Revenue
EBITDA(1)
Underlying EBITDA(2)
Net profit(3)
Underlying net profit(4)
Cash flow from operating activities
Cash flow used in Investing activities
Sustaining capital
Non sustaining capital
Exploration
Acquisition of businesses
Other investing
Free cash flow(5)
Underlying free cash flow(6)
Average gold price per ounce (A$)
Gold mined (ounces)
Gold sold (ounces)
All-in sustaining cost (AISC) per ounce sold (A$)
Cash and cash equivalents($ million)
Earnings per share (cents)
Year End 30 June
2015
($000’s)
845,653
316,142
333,122
91,902
108,882
Year End 30 June
2014
($000’s)
296,976
89,598
104,225
21,871
36,498
359,009
(239,458)
(104,747)
(9,301)
(35,619)
(90,729)
938
119,551
185,628
1,453
621,691
580,784
1,065
167
15.5
80,059
(157,339)
(37,392)
-
(13,149)
(107,373)
575
(77,280)
44,720
1,410
245,082
210,055
1,094
82
4.5
Change
($000’s)
Change
(%)
548,677
226,544
228,897
70,031
72,384
278,950
(82,119)
(67,355)
(9,301)
(22,470)
16,644
363
196,831
140,908
43
376,609
370,729
(29)
85
11
185%
253%
220%
320%
198%
348%
52%
180%
n/a
171%
(15%)
63%
(255%)
315%
3%
154%
176%
(3%)
104%
244%
(1) EBITDA is earnings before interest, depreciation, amortisation and impairment and is calculated as follows: Profit before Income tax plus depreciation, amortisation, impairment
and finance costs.
(2) Underlying EBITDA is calculated as follows: EBITDA plus one off acquisition and restructure expenses ($12.8 million and $4.2 million).
(3) Net Profit is calculated as net profit after taxation.
(4) Underlying Net Profit is calculated as Net Profit plus one off acquisition and restructure expenses ($12.8 million and $4.2 million).
(5) Free Cash Flow is calculated as operating cash flow minus investing cash flow.
(6) Underlying Free Cash Flow is calculated as follows: Free cash flow plus Jundee gold mine ($90.7 million) and Hermes acquisitions ($1.95 million), plus one off acquisition and
restructure expenses ($12.8 million and $4.2 million), less working capital adjustment ($43.6 million).
EBITDA, Underlying EBITDA, Underlying Net Profit and Underlying Free Cash Flow are unaudited non IFRS measures.
Reference to $ in the Directors’ Report refers to Australian dollars (A$).
The Group’s operating and financial performance for the twelve months ended 30 June 2015 reflects the focus on
productivity and cost reduction whilst maintaining growth options through exploration. Increased gold production and free
cash flow generation in the 2015 financial year follows major acquisitions in 2014 and during the current year.
2015 Annual Financial Report
Page 16
DIRECTORS’ REPORT
Profit
For the financial year ended 30 June 2015, the Group reported a profit after tax of $92 million (2014: $22 million). The Group
recorded a significant increase in revenue for the full year ended 30 June 2015 due to the expansion of business activities
through acquisitions. Revenue increased 185% to $846 million driven by higher gold sales (2015: 580,784 ounces; 2014:
210,055 ounces) and a $43 per ounce higher realised gold price. Gold sold for the current financial year of 580,784 ounces
was at the higher end of full year guidance (550,000-600,000 ounces) and AISC of $1,065 per ounce sold towards the lower
end of guidance ($1,050-$1,100 per ounce sold).
EBITDA was $316 million for the financial year ended 30 June 2015, which was an increase of 253% over the corresponding
prior period. Depreciation and amortisation charges in 2015 financial year have increased by 246% due to the expanded
operational asset base and finalisation of the prior year provisional acquisitions. Higher finance charges reflect the draw-
down of borrowings during the year to fund the acquisition of the Jundee gold mine and accretion costs in respect of the
rehabilitation liabilities assumed by the Group from the operations and companies acquired. An impairment charge of $8.6
million was recorded on exploration and evaluation assets. Corporate costs for the financial year increased by $12.8 million
in line with the increased scale of the Group.
Reconciliation of underlying net profit and underlying free cash flow is outlined below. These metrics are an unaudited non-
IFRS measure that, in the opinion of the Board, provides useful information to assess the operating performance of the
Group.
Underlying net profit and underlying free cash flow are reconciled as follows:
Net profit/free cash flow
reconciliation
Net profit/free cash flow
Underlying Net
Profit $000’s
91,902
Underlying Free
Cash Flow $000’s
119,551
Jundee acquisition
Hermes acquisition
Acquisition costs
Restructure costs
Working capital
Underlying net profit/free cash flow
Balance Sheet
-
-
12,757
4,223
-
108,882
90,729
1,950
12,757
4,223
(43,582)
185,628
Current assets as at the 30 June 2015 increased by 54% against the prior year balance date. The increase was largely a
result of cash and cash equivalents increasing by $85 million and inventories (gold in circuit and ore stocks) increasing by
$8 million reflecting strong margins realised by the expanded operational base.
Non-current assets increased by $107 million largely through the addition of the Jundee gold mine assets acquired on 1 July
2014.
Trade and other payables increased by $56 million as at 30 June 2015 in line with the increased scale of the Group, including
the acquisition of the Jundee gold mine during the year. Current provisions were $14 million higher on the back of the
Jundee gold mine acquisition and the associated employee complement.
Non-current liabilities increases are reflective of the increase in employee entitlements and the higher environmental liability
provisions assumed as part of the Jundee gold mine acquisition and finalisation of prior year provisional acquisitions.
Issued capital increased through the shares issued as part of the Jundee gold mine acquisition.
Cash Flow
Cash flow from operating activities for the 12 months ended 30 June 2015 was $359 million which was $279 million higher
than the previous financial year;
receipts from customers increased by 175% due to higher gold production from five operating mine sites, in addition to a
3% increase in the gold price from the previous year; and
supplier payments increased by $230 million reflecting the increase in the overall scale of the Group.
Cash flows for investing activities increased by 198% after allowance for the acquisitions in the current and prior period. This
was largely as a result of the Group’s extensive capital development and exploration program to grow mine lives in 2015
During the year ended 30 June 2015, the Company repaid its debt facility drawn in the year ($75.5 million). Payments for
leased equipment of $8.0 million (2014: 5.3 million) were made and dividends totalling $26.5 million (2014: 16.4 million) were
paid to Shareholders.
2015 Annual Financial Report
Page 17
DIRECTORS’ REPORT
Full Year 2016 Production and Cost Guidance
Key forecasts as announced on the Australian Securities Exchange 4 August 2015:
total gold production of 535,000-570,000 ounces
all-in sustaining costs of $1,050-$1,100 per ounce sold
$35 million investment in exploration following on from the success in 2015
Investing/expansion capital expenditure of $39 million to pursue opportunities identified from the very successful 2015
exploration campaign
Dividends
Dividends paid to Members during the financial year ended 30 June 2015 were as follows:
Dividend Rate
2.5 cents per share
2.0 cents per share
Record Date
15 September 2014
31 March 2015
Payment Date
1 October 2014
1 April 2015
Franking
100% franked
100% franked
Since the end of the financial year the Directors have recommended the payment of a final fully franked ordinary dividend
of 3 cents per fully paid share to be paid on 2 October 2015 out of retained earnings at 30 June 2015.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Significant changes in the state of affairs of the Group during the financial year were as follows:
Northern Star entered into an agreement with Newmont Mining Corporation to acquire all the trade and assets of the
Jundee gold mine. The acquisition was completed on 1 July 2014. Further details of the transaction are discussed in note
32 to the financial statements. As part of the acquisition, Northern Star drew down $75 million from its $100 million credit
facility with Investec Bank Plc, which was fully repaid during the course of the year;
the issue of 7,854,843 fully paid ordinary shares associated with the acquisition of the Jundee gold mine;
completed the purchase of the Hermes gold resources and adjacent tenements from Alchemy Resources Ltd for $1.45
million on 18 March 2015. The acquisition entitles the Company to explore and to earn an interest in part of Alchemy’s
Bryah Basin project. In addition, the Company invested $500,000 in return for 33.3 million fully paid ordinary shares in
Alchemy Resources Ltd at an issue price of $0.015 per share; and
entered into a binding joint venture Heads of Agreement with Tanami Gold NL to progressively acquire 60% joint venture
interest in the Central Tanami Project.
Other than noted elsewhere in this report, there were no other significant changes in the state of affairs of the Group that
occurred during the year under review.
SUBSEQUENT EVENTS
Subsequent to the period end 30 June 2015, the Company announced:
a final fully franked dividend of 3 cents per share to Shareholders on the record date of 14 September 2015, payable on
2 October 2015; and
the completed settlement of the agreement with Tanami Gold NL under which Northern Star can progressively acquire
60% joint venture interest in the 2.7 million-ounce Central Tanami Project. Settlement occurred on 31 July 2015 following a
payment of $20 million by Northern Star to Tanami Gold NL. This comprised a cash payment of $11 million and the issue
of 4.29 million Northern Star shares which have a value of $9 million based on their five-day volume weighted average
prior to the ASX announcement of the deal on 26 February 2015. As a result of the payment Northern Star now has a 25%
interest in the Central Tanami Project.
There are no other matters or circumstances that have arisen since 30 June 2015 that have or may significantly affect the
operations, results, or state of affairs of the Group in future financial years.
ENVIRONMENTAL REGULATION AND PERFORMANCE
The Company holds licences and abides by Acts and Regulations issued by the relevant mining and environmental
protection authorities. The Company has a policy of at least complying with, but in most cases exceeding, its statutory
environmental performance obligations. These licences, Acts and Regulations specify limits and regulate the management
of various environmental management issues, including discharges to the air, surface water and groundwater associated
with the Company’s mining operations as well as the storage and use of hazardous materials.
All environmental performance obligations are monitored by the Board and subjected from time to time to Government
agency audits and site inspections. No environmental breaches have occurred or have been notified by any Government
agencies during the year ended 30 June 2015.
2015 Annual Financial Report
Page 18
DIRECTORS’ REPORT
DIRECTORS’ INTERESTS
The relevant interest of each Director in the share capital of the Company as notified by the Directors to the Australian
Securities Exchange in accordance with Section 205G(1) of the Corporations Act 2001, at the date of this report is as follows:
Name of Director
Christopher Rowe
Bill Beament
John Fitzgerald
Peter O'Connor
SHARE OPTIONS
Fully Paid
Ordinary Shares
2,900,000
15,826,340
60,000
600,000
Options
-
Exercise Price
-
Details of Options
-
-
-
-
-
-
-
-
-
-
Unissued ordinary shares of the Company under option at the date of this report are as follows:
Type
Employee Options
Employee Options (Unvested)
Employee Options (Unvested)
Number
250,000
2,706,815
1,319,279
Exercise Price
$1.0500
$1.2804
$2.1818
Expiry Date
Expiring on 15 April 2016
Expiring on 31 July 2017
Expiring on 31 July 2018
REMUNERATION REPORT (AUDITED)
A. Introduction
This report details the nature and amount of remuneration for Directors and Executive of Northern Star Resources Limited.
The information provided in the Remuneration Report includes remuneration disclosures that are audited as required by
Section 308(3C) of the Corporations Act 2001.
For the purposes of this report, Key Management Personnel (KMP) of the Group are defined as those persons having
authority and responsibility for planning, directing and controlling the major activities of the Group, directly or indirectly,
including any Director (whether Executive or otherwise) of the Company. KMP are defined as: Directors, Chief Operating
Officer, Chief Financial Officer, Chief Geological Officer and Company Secretary.
For the purposes of this report the term “Executive” includes the Managing Director, Chief Operating Officer, Chief Financial
Officer, Chief Geological Officer and Company Secretary.
Details of KMP covered in this report:
Non-Executive Directors
Christopher Rowe
Non-Executive Chairman
Peter O’Connor
Non-Executive Director
John Fitzgerald
Non-Executive Director
B. Remuneration Governance
Board Oversight
Executives
Bill Beament
Liza Carpene
Stuart Tonkin
Shaun Day
Managing Director
Company Secretary
Chief Operating Officer
Chief Financial Officer
appointed 13 October 2014
Raymond Parry
Chief Financial Officer
ceased 3 October 2014
Michael Mulroney
Chief Geological Officer
appointed 2 June 2015
The Board is responsible for ensuring that the Group’s remuneration structures are aligned with the long-term interests of the
Company and its Shareholders. Accordingly, the Board has an established Remuneration Committee to assist it in making
decisions in relation to KMP remuneration.
Remuneration Committee
The Remuneration Committee currently comprises all Independent Non-Executive Directors. The Remuneration Committee
comprised of three Independent Non-Executive Directors for the entire period.
The Remuneration Committee is responsible for reviewing and recommending to the Board:
the Company’s remuneration policy and framework (including determining short term incentives (STIs) key performance
indicators and long term incentives (LTIs) performance hurdles, and vesting of STIs/LTIs);
senior executives’ remuneration and incentives (including KMP and other senior executives);
non-executive individual remuneration and the aggregate pool for approval by Shareholders (as required);
superannuation arrangements; and
remuneration by gender.
Executive remuneration is reviewed annually having regard to individual and business performance, relevant comparative
information (such as the Australasian Gold & General Mining Industry Remuneration Report by Aon Hewitt), and internal and
independent external information.
2015 Annual Financial Report
Page 19
DIRECTORS’ REPORT
In order to ensure that this Committee is fully informed when making remuneration recommendations, the Committee
receives reports from Management, independent sources, empirical market data and may draw on services from a range
of other external sources if required.
Use of Remuneration Consultants
The Remuneration Committee consulted with external sources during the period to obtain information in relation to
reviewing the Executive and Non-Executive remuneration and mix of remuneration.
During the year ended 30 June 2015 no remuneration recommendations, as defined by the Corporations Act, were
provided by remuneration consultants.
C. Principles Used to Determine the Nature and Amount of Remuneration
Remuneration Philosophy
The performance of the Company depends upon the quality of its Directors and Executives. To succeed and endure, the
Company must attract, motivate and retain highly skilled Directors and Executives.
To this end, the Company embodies the following principles in its remuneration framework:
provides for competitive rewards to attract and retain high calibre Executives;
aligns the incentives of Executives with the long-term interests of Company Shareholders by linking rewards to
Shareholder value; and
establishes appropriate key performance indicators and hurdles in relation to variable Executive remuneration.
In accordance with good corporate governance practices, the structure of Non-Executive Director and Executive
management remuneration is separate and distinct.
Non-Executive Director Remuneration
The Board’s objective is to set aggregate remuneration at a level which provides the Company with the ability to attract
and retain Directors of the highest calibre, whilst incurring a cost which is acceptable to Shareholders.
Non-Executive Directors’ fees are paid within an aggregate remuneration limit which is approved by the Shareholders from
time to time (currently $1,250,000 per annum – approved 12 November 2014). Retirement payments, if any, are agreed to
be determined in accordance with the rules set out in the Corporations Act as at the time of a Director’s retirement or
termination.
The Board reviews on an annual basis the manner in which it apportions the aggregate remuneration amongst Non-
Executive Directors at its discretion, and the amount of aggregate remuneration sought to be approved by Shareholders.
When undertaking the annual review process, the Board considers the amount of Non-Executive Director fees being paid by
comparable companies within the S&P ASX200 with similar market capitalisation, responsibilities and experience of the Non-
Executive Directors.
The Board has increased its current individual Non-Executive Directors’ Fees effective 1 July 2015 as detailed in Section D,
whilst remaining within the approved aggregate remuneration limit of $1,250,000 per annum.
Executive Director and Senior Executive Remuneration
The Board’s objective is to reward Executives with a level and mix of remuneration commensurate with their position and
responsibilities within the Company and so as to:
motivate and reward Executives for Company and individual performance;
ensure continued availability of experienced and effective management; and
ensure total remuneration is competitive by market standards.
In reviewing the level and make-up of Executive total remuneration, the Remuneration Committee ensures remuneration
reflects the market salary for a position and individual of comparable responsibility and experience. Remuneration is
compared with the external market by reviewing industry salary surveys, sourcing empirical market data and other
evaluation methods during the recruitment process. Target positioning of total remuneration against market is between the
50th and 75th percentile. If required, the Remuneration Committee may engage an external consultant to provide
independent advice in the form of a written report detailing market levels of remuneration for comparable Executive roles.
Total remuneration for the 2015 financial year consisted of a mix of:
fixed remuneration; and
“at risk” variable remuneration, comprising STIs and LTIs.
2015 Annual Financial Report
Page 20
DIRECTORS’ REPORT
Component
Consist of
Objective
Links to Performance FY2015
REMUNERATION STRUCTURE FOR 1 JULY 2014 TO 30 JUNE 2015 (FY2015)
Fixed Remuneration
(TFR)
Base salary, superannuation
and other non-cash benefits
Short-term Incentives
(STI)
Cash payments targeted at a
percentage of Total Fixed
Remuneration (TFR)
To provide a base level of remuneration
which is both appropriate for the position
and competitive in the market
To provide an “at risk” incentive to reward
Executives in a manner which aligns this
element of
the
creation of Shareholder wealth through
the achievement of annual performance
measures
remuneration with
To provide a market competitive STI
opportunity
Long Term Incentives
(LTI)
Performance shares/loans or
share options based on a
percentage of TFR
To provide an “at risk” grant to incentivise
and motivate Executives to pursue the
long term growth and success of the
Company
To provide a market competitive LTI
opportunity
To support retention of Executives and
key personnel
Annual performance of Company and individual.
specific Company
Combination
of
Performance Indicators (KPIs) (65%):
Combination of specific Company KPIs (65%):
KPI 1: Financial outcome (20%): Achieve FY2015
budget Net Profit After Tax (NPAT) as approved
by the Board:
o 10% payable on budget NPAT achievement,
Key
and
o then pro-rata for each additional percentage
point above budget achievement – maximum
payable (20%) at 10% above Budget NPAT;
KPI 2: Production (15%): Production within stated
guidance 550-600koz
o payable pro-rata from 575koz: 0% @ 575koz to
15% @ 625koz);
KPI 3: Costs (15%): AISC within stated guidance
A$1,050 to A$1,100
o pro-rata 0% at A$1,075 to 15% at A$1,025; and
KPI 4: Social Licence (15%): reduction in safety
significant environmental or
measures, no
community incidents, increase in diversity targets
by 5% from 2014 numbers.
Individual KPI and personal performance at least
satisfactory (35%).
Vesting after year 3 on achievement of
performance hurdles measured at 30 June 2017:
Relative Total Shareholder Return (40%): target
50% of peers (ASX: SLR, SAR, RRL, RSG, EVN, KCN,
OGC, SBM, NCM);
Total Shareholder Return (40%): target 15%
Resource
compound annual growth rate; and
/ Reserve
(20%):
maintaining at least 2 years of reserves based on
the annualised Company production and 6
years of resources.
replacement
Board reserves the right to vest LTIs at its discretion.
Following a review by the Remuneration Committee subsequent to the end of the financial year, the Board resolved to set
the STI KPIs and the LTI hurdles as follows for the 2016 financial year:
Component
Links to FY2016 Performance
REMUNERATION STRUCTURE FOR 1 JULY 2015 TO 30 JUNE 2016 (FY2016)
TFR
Salaries awarded effective 1 July 2015 used as base for determining value component for FY2016 STIs and LTIs.
Short-term Incentives
(STI)
Combination of specific Company Key Performance Indicators (KPIs) (65%):
KPI 1: Financial outcome (20%): Achieve FY2016 Budget NPAT as approved by the Board5;
KPI 2: Production (15%): Production within stated guidance 535-570koz;
KPI 3: Costs (15%): AISC within stated guidance A$1,050 to A$1,100; and
KPI 4: Social Licence (15%): 5% reduction in safety measures, no significant environmental or community incidents, increase in
diversity targets by 5% from 2015 numbers.
Individual KPI and personal performance at least satisfactory (35%).
Long Term Incentives
(LTI)
Vesting after year 3 on achievement of performance hurdles:
Relative Total Shareholder Return (40%): target 50% of peers6 (EVN, IGO, NCM, OGC, RRL, RSG, SAR, SBM);
Total Shareholder Return (40%): target 15% compound annual growth rate; and
Resource / Reserve replacement (20%): maintaining at least 2 years of reserves and 6 years of resources based on the annualised
budgeted production.
Board reserves the right to vest LTIs at its discretion.
D. Non-Executive Director Remuneration
FY2015 Remuneration of Non-Executive Directors
For the 2015 financial year, the Non-Executive Directors were paid base fees associated with their duties as Directors and
members of Board Committees. The policy for Non-Executive Director base fees was $150,000 per annum for the Non-
Executive Chairman and $105,000 per annum for other Non-Executive Directors, inclusive of superannuation contributions.
The Chair of the Audit Committee received an additional $25,000 per annum in recognition of the additional level of
commitment and responsibility. Refer to the table below for amounts paid for the period.
5 KPI 1 (based on 20% of total STI) will be measured against target NPAT performance for the year as set by the Board. Target NPAT performance requirements have
not been disclosed due to commercial sensitivity but will be disclosed in the FY2016 Remuneration Report showing the performance achieved versus the target
performance required and the relevant bonus amount based on this performance.
6 Peer group for FY2016 reviewed and modified effective 1 July 2015.
2015 Annual Financial Report
Page 21
DIRECTORS’ REPORT
Total remuneration paid or payable to Non-Executive Directors for the period ended 30 June 2015 was:
TOTAL NON-EXECUTIVE DIRECTOR REMUNERATION FOR FY2015
Salary /
Consulting
Fees
Year
$
2015
2015
2015
150,000
105,000
118,721
STI Cash
Payment^
$
-
-
-
Super
$
-
-
11,279
Options
$
-
-
-
Total
$
150,000
105,000
130,000
Remuneration
Consisting of Options
During the Year
%
0.0%
0.0%
0.0%
Directors
Christopher Rowe
Peter O’Connor
John Fitzgerald
The Board has increased its individual Non-Executive Directors’ Fees and Committee Member Fees effective 1 July 2015 as
detailed below. Current Non-Executive Director Fees total $475,000 per annum, and remains well within the current
aggregate limit of $1,250,000 per annum.
TOTAL NON-EXECUTIVE DIRECTOR REMUNERATION EFFECTIVE FY2016
Name
Christopher Rowe
Peter O’Connor
John Fitzgerald
Base Salary
(at 30/6/2015)
Committee Fees
(at 30/6/2015)
Termination
Benefit
Base Salary
(from 1/7/15)
Committee Fees
(from 1/7/2015)
Termination
Benefit
$150,000
$105,000
$105,000
$0
$0
$25,000 1,3
None
None
None
$175,000
$115,000
$115,000
$20,000 2,3
$20,000 2,3
$30,000 1,3
None
None
None
1 Includes $25,000 in recognition of additional commitment and responsibility as Chair of the Audit Committee.
2 Includes $15,000 in recognition of additional commitment and responsibility as a Member of the Audit Committee.
3 Includes $5,000 in recognition of additional commitment and responsibility as a Member of the Remuneration Committee.
E. Executive Remuneration
2015 Executive Remuneration
Remuneration for the 2015 financial year consisted of a mix of:
fixed remuneration; and
variable remuneration, comprising STIs and LTIs*.
*In relation to the 2015 financial year, LTIs were allocated in October 2014.
Fixed Remuneration
Individual Executives’ base salaries for the 2015 financial year were:
Name
Bill Beament
Liza Carpene
Stuart Tonkin
Shaun Day
Position
Managing Director
Company Secretary
Chief Operating Officer
Chief Financial Officer (Appointed 13 October 2014)
Raymond Parry
Chief Financial Officer (Ceased 3 October 2014)
Michael Mulroney
Chief Geological Officer (Appointed 2 June 2015)
Base Salary
(30/6/14)
Base Salary
(30/6/15)
Base Salary Increase
(%) for FY15
725,000
300,000
475,000
N/A
287,718
N/A
725,000
300,000
475,000
375,000
N/A
350,000
0.00%
0.00%
0.00%
N/A
N/A
N/A
Following a review by the Remuneration Committee subsequent to the end of the 2015 financial year, the Board
determined to maintain base salary levels for Executives in line with FY2015 taking into consideration general market
conditions at that time. As part of a Company-wide equalisation process, the Board approved an increase in capped
superannuation contributions and introduced Company-funded health insurance cover. The following table reflects
remuneration components available to Executives effective 1 July 2015:
Base Salary
(at 1/7/15)
Superannuation
(capped)*
Total Fixed
Remuneration
Potential
STI %**
Potential
LTI %**
Name
Position
Bill Beament
Managing Director
Liza Carpene
Company Secretary
725,000
300,000
Stuart Tonkin
Chief Operating Officer
475,000
Shaun Day***
Chief Financial Officer
375,000
Michael Mulroney***
Chief Geological Officer
350,000
30,000
30,000
30,000
30,000
30,000
755,000
330,000
505,000
405,000
380,000
35%
25%
35%
35%
35%
65%
35%
65%
65%
65%
Insurances
Health & Salary
Continuance
Health & Salary
Continuance
Health & Salary
Continuance
Health & Salary
Continuance
Health & Salary
Continuance
* Effective 1 July 2015, individual superannuation contributions were increased from $25,000 to a capped amount of $30,000 per annum in line with an increase in the
individual contributions cap.
** Potential STI and LTI are based on a % of Total Fixed Remuneration or TFR comprising base salary and superannuation only.
*** Mr Day commenced employment on 13 October 2014 and Mr Mulroney commenced employment on 2 June 2015.
Variable Remuneration – STIs
STIs paid in the FY2015 were for the performance by eligible Executives in the FY2014.
2015 Annual Financial Report
Page 22
DIRECTORS’ REPORT
The following table indicates performance against FY2015 KPIs (corporate and individual):
Key Performance Indicators 2014
Measure
Achievement
KPI 1: Financial Outcome (20%)
KPI 2: Stretch Production (15%)
KPI 3: Costs (15%)
KPI 4: Social Licence (15%)
Achieve FY2015 Budget NPAT as approved by the Board:
o 10% payable on Budget NPAT achievement, and
o then pro-rata for each additional percentage point above
Budget achievement – max payable (20%) at 10% above Budget
NPAT
Production within stated guidance 550-600koz,
o payable pro-rata from 575koz: 0% @ 575koz to 15% @ 625koz)
AISC within stated guidance A$1,050 to A$1,100
o pro-rata 0% at A$1,075 to 15% at A$1,025
Reduction in safety measures, no significant environmental or
community incidents, increase in diversity targets by 5% from
2014 numbers
Achieved 100% award
Budget target was A$67.2M, Achieved A$91.9M
Partial achievement 11.57% award
Partial achievement 20.00% award
Achieved 100% award1
1 The Diversity Targets measures focused on operational achievements.
Individual KPIs/Personal Performance (35%)
As determined for each individual Executive
Majority achieved.
As a result, STI payments for FY2015 to Executive KMP were recommended as detailed in the following table, and will be
paid in October 2015.
The following table reflects eligible individual Executives’ potential STI components as a percentage of TFR against paid or to
be paid amounts:
Name
Position
Bill Beament
Managing Director
Liza Carpene
Company Secretary
Stuart Tonkin
Shaun Day 4
Chief Operating Officer
Chief Financial Officer (Appointed 13 October 2014)
Raymond Parry
Chief Financial Officer (Ceased 3 October 2014)
Michael Mulroney
Chief Geological Officer (Appointed 2 June 2015)
1 % of TFR (base salary plus superannuation).
2 Paid in October 2014.
3 To be paid in October 2015.
4 Pro-rata entitlement based on commencement date.
Variable Remuneration – LTIs
FY2014
Potential
STI %1
FY2014
Paid
$2
FY2015
Potential
STI %1
FY2015
Declared
$3
50%
25%
25%
N/A
25%
N/A
208,495
50,113
75,000
N/A
62,543
N/A
35%
25%
35%
35%
N/A
N/A
196,179
60,722
130,786
74,530
N/A
N/A
During the period, 5,039,976 Performance Shares were issued as FY2015 LTIs to four KMP Executives and six senior
management in accordance with the Performance Share Plan approved by Shareholders at the Annual General Meeting in
November 2013. This Plan provides the Board with the discretion to grant Performance Shares on an annual basis to certain
Executives and senior management that will vest subject to the satisfaction of performance hurdles, as determined by the
Board. Shareholder approval was obtained at the 2013 Annual General Meeting to issue LTIs in the form of Performance
Shares to the Managing Director without seeking further Shareholder approval to a maximum of 3,000,000 shares. In relation
to the FY2015 period, 1,354,167 Performance Shares were issued to the Managing Director without seeking any further
Shareholder approval.
In addition to the above Performance Shares, 2,706,815 unlisted employee share options were issued to 31 senior staff as
FY2015 LTIs.
The LTI arrangements have been designed to motivate and incentivise Executives to drive the Company’s long term
performance to deliver greater returns to Shareholders. The hurdles defined for the 2015 financial year will be measured at
year three (30 June 2017) against (1) a Relative Total Shareholder Return against a group of peers, (2) Total Shareholder
Return targeting compound annual growth of 15% and (3) Resource/Reserve replacement for the Group. In order to
achieve vesting of LTIs by Executives, the set hurdles must be achieved as at 30 June 2017, along with continued
employment and satisfactory performance reviews in all years.
The Performance Share Plan also provides an appropriate framework to incentivise other key Company employees who are
not at the Executive level as may be determined from time to time. In addition, the Company may also issue unlisted
employee share options to incentivise other key Company employees. For the sake of simplicity the comments here focus
on incentivising of Executives, but the framework will apply in the same manner for select non-Executives, with differing
percentage allocation levels.
Accordingly, under the Performance Share Plan, KMP Executives will be granted Performance Shares (outlined below), with
vesting of any Performance Shares subject to the satisfaction of performance hurdles.
Each Performance Share represents an actual legal interest in a share in the Company on day one of the vesting period,
with the Performance Share being forfeited for no consideration should the vesting condition not be met. Under the terms
of the Performance Share Plan, the Performance Shares are issued to the Executive at their current market value, with the
Executive required to pay this market value amount in order to take up the Performance Share offer. The Company will
provide the Executive with a loan to fund the acquisition price. The loan is interest-free and is secured against the
Performance Shares in the form of a holding lock preventing all dealing in the Performance Shares. The loan is limited
recourse, such that if the Performance Shares are forfeited, this is treated as full repayment against the loan balance. While
a loan balance remains outstanding, any dividends paid on the Performance Shares will be automatically applied towards
the repayment of the loan.
2015 Annual Financial Report
Page 23
DIRECTORS’ REPORT
In making the loan in respect of newly issued Performance Shares, there is no cash cost to the Company, as the
Performance Shares are newly issued, with the loan essentially being an obligation to repay the amount due when the
Performance Shares are sold or forfeited. This also means that no funds are raised upon the issue of the Performance Shares.
In substance, the Performance Share Plan operates in the same way as an option plan, therefore provided the size of the LTI
award is reasonable and there are appropriate vesting conditions, it should be viewed in the same light as an option plan.
The following Performance Shares were issued to KMP Executives in relation to the 2015 financial year:
Name
Bill Beament
Liza Carpene
Stuart Tonkin
Shaun Day
Raymond Parry
Michael Mulroney
Position
Managing Director
Company Secretary
Chief Operating Officer
Chief Financial Officer
Chief Financial Officer (Ceased 3 October 2014)
Chief Geological Officer
No of
Performance
Shares Issued for
FY2014 Period*
1,000,000
325,000
500,000
N/A
425,000***
N/A
Remaining
Loan Value
30/6/2015
676,850
219,976
338,425
N/A
287,661
N/A
No of
Performance
Shares Issued for
FY2015 Period**
1,354,167
315,972
902,778
722,222
N/A
N/A
Remaining
Loan Value
30/6/2015
1,508,854
368,866
1,053,903
843,122
N/A
N/A
* Shares issued at 5 Day VWAP of $0.7304 on 20 November 2013, and loan values have been reduced due to the payment of dividends up to 30 June 2015.
** Shares issued at 5 Day VWAP of $1.1874 on 9 October 2014, and loan values have been reduced due to the payment of dividends up to 30 June 2015.
*** Mr Parry ceased to be an employee effective 3 October 2014. In accordance with the Performance Share Plan, the Board resolved to treat Mr Parry as a “good
leaver” which entitles Mr Parry to retain the unvested Performance Shares. Vesting will not occur unless hurdles are met as at 30 June 2016.
LTIs issued to KMP Executives for FY2016 were issued on 9 July 2015 as follows:
Name
Bill Beament
Liza Carpene
Stuart Tonkin
Shaun Day
Michael Mulroney
Position
Managing Director
Company Secretary
Chief Operating Officer
Chief Financial Officer
Chief Geological Officer
* Shares issued at 5 Day VWAP of $2.1818 on 9 July 2015.
Total Remuneration - FY2015
No of
Performance
Shares Issued for
FY2016 Period*
597,836
140,703
399,877
320,694
300,898
Opening Loan
9/7/2015
1,304,358
306,985
872,457
699,690
656,499
Total remuneration paid or payable to KMP for the year ended 30 June 2015 was:
Executive
Executive Directors
Bill Beament
Other Executives
Raymond Parry1
Liza Carpene
Stuart Tonkin2
Shaun Day3
Michael Mulroney4
Year
2015
2014
2015
2014
2015
2014
2015
2014
2015
2015
Salary /
Consulting
Fees
$
633,733
496,238
74,249
287,718
288,502
227,273
434,469
354,167
261,967
29,167
Annual and
Long Service
Leave
$
91,267
30,476
-
9,940
11,498
-
40,531
6,539
7,186
-
Other
Benefits (1)
$
3,913
9,343
277,093
1,431
2,120
2,576
1,267
416
3,772
1,267
STI Cash
Payment
$
208,495
134,288
-
80,573
50,113
14,479
75,000
-
-
-
Post-
Employment
Benefits
$
25,000
25,000
6,521
25,000
25,000
23,295
25,000
20,833
17,958
2,083
Options
$
-
250,706
-
-
32,624
85,213
-
-
-
-
Performance
Shares
$
231,599
66,300
28,178
28,178
60,117
21,548
143,349
33,150
88,159
-
Total
$
1,194,007
1,012,351
386,041
432,840
469,974
374,384
719,616
415,105
379,042
32,517
Percentage of
Performance
Related
Remuneration
%
37%
45%
7%
25%
30%
32%
30%
8%
23%
0%
(1)Other Benefits include: telephone allowance, salary continuance insurance, health insurance and parking.
1 Ceased employment 3 October 2014. Other benefits include $277,093 in termination payments.
2 Appointed 2 September 2013
3 Appointed 13 October 2014
4 Appointed 2 June 2015
Executive Contracts
Executive
Term of Agreement
Executive Directors
Base Salary
(at 30/6/14)
Base Salary
(at 1/7/14)
Base Salary
(at 1/7/15)
Termination
Notice
Termination
Benefit
Bill Beament
Commenced 30 July 2010 – open ended
496,238
725,000
725,000
3 Months
12 Months
Other Executives
Raymond Parry
Commenced 4 October 2010 – Ceased 3
October 2014
287,718
287,718
N/A
1 Month
None
Liza Carpene
Commenced 15 April 2013 – open ended
Stuart Tonkin
Shaun Day
Commenced 2 September 2013 – open ended
Commenced 13 October 2014 – open ended
Michael Mulroney
Commenced 2 June 2015 – open ended
227,273
425,000
N/A
N/A
300,000
475,000
N/A
N/A
300,000
475,000
375,000
350,000
1 Month
1 Month
1 Month
3 Months
None
None
None
None
2015 Annual Financial Report
Page 24
DIRECTORS’ REPORT
F. Equity Instrument Holdings
(i) Shareholdings
The number of ordinary shares in the Company held during the financial year by each Director of the Company and any
other KMP of the Group, including their personally related parties, are as follows:
FY2015
Name
Directors
Christopher Rowe
Bill Beament*
John Fitzgerald
Peter O'Connor
Key Management Personnel
Raymond Parry* (as at 3 October 2014)
Stuart Tonkin*
Liza Carpene*
Shaun Day*
Michael Mulroney
Balance at the beginning of the year
Net Change during the year
Balance at the end of the year
4,412,590
14,109,252
60,000
500,000
996,479
631,628
336,628
-
-
(1,512,590)
1,119,252
-
100,000
-
902,778
468,508
722,222
-
2,900,000
15,228,504
60,000
600,000
996,479
1,534,406
805,136
722,222
-
* Includes unvested FY2014 and FY2015 Performance Shares which are still subject to performance hurdles as at 30 June 2016 and 30 June 2017 respectively.
FY2014
Name
Directors
Christopher Rowe
Bill Beament*
John Fitzgerald
Peter O'Connor
Michael Fotios (as at 24 October 2013)
Key Management Personnel
Raymond Parry*
Stuart Tonkin*
Liza Carpene*
Balance at the beginning of the year
Net Change during the year
Balance at the end of the year
3,986,195
12,284,735
-
200,000
29,050,374
904,813
-
-
426,395
1,824,517
60,000
300,000
-
91,666
631,628
336,628
4,412,590
14,109,252
60,000
500,000
29,050,374
996,479
631,628
336,628
* Includes unvested FY2014 Performance Shares which are still subject to performance hurdles at 30 June 2016.year
(ii) Option Holdings
The number of options over ordinary shares in the Company held during the financial year by each Director of the
Company and any other KMP of the Group, including their personally related parties are as follow:
Balance at the
beginning of the
year
Granted
during the
year
Exercised
during the year
Forfeited, expired or
cancelled during the
year
Balance at the
end of the year
Vested and
exercisable at the
end of the year
Key Management Personnel
FY2015
Name
Directors
Christopher Rowe
Bill Beament
John Fitzgerald
Peter O'Connor
Raymond Parry
Stuart Tonkin
Liza Carpene
Shaun Day
Michael Mulroney
FY2014
Name
Directors
Christopher Rowe
Bill Beament
John Fitzgerald
Peter O’Connor
Michael Fotios (as at
24 October 2013)
Key Management Personnel
Raymond Parry
Stuart Tonkin
Liza Carpene
2015 Annual Financial Report
-
-
-
-
-
-
500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
250,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
250,000
-
-
250,000
-
Balance at the
beginning of the
year
Granted
during the
year
Exercised
during the year
Forfeited, expired or
cancelled during the
year
Balance at the
end of the year
Vested and
exercisable at the
end of the year
-
2,000,000
-
750,000
-
-
-
500,000
-
-
-
-
-
-
-
-
-
(2,000,000)
-
(750,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
500,000
250,000
Page 25
DIRECTORS’ REPORT
Options issued during the period
There were no options granted as equity compensation benefits to KMPs during the period.
Options affecting remuneration in the current and future reporting period
The terms and conditions of each grant of options affecting KMP remuneration in the current or a future report period are as
follows:
Grant Date
Vesting Date
Expiry Date
Exercise Price
15-Apr-13
15-Apr-13
15-Apr-14
15-Apr-15
15-Apr-15
15-Apr-16
$0.95
$1.05
Value Per Option At
Grant Date
$0.2350
$0.2800
Performance Achieved
% Vested
Exercised 30 March 2015
Remain employed
100%
100%
Options granted under the plan carry no dividend or voting rights.
Details of options over ordinary shares in the Company provided as remuneration to KMP are shown below. Once vested,
each option is convertible into one ordinary share of the Company upon payment of the exercise price and prior to the
expiry date. The exercise price of options is based on the weighted average price at which the Company’s shares are
traded on the Australian Securities Exchange during the week up to and including the date of grant.
Name
Liza Carpene
Year of
Grant
2013
2013
Years In Which
Options Vest
Number of Options
Granted
Value of Options at
Grant Date
Number of Options
Vested During the Year
% Vested
2014
2015
250,000
250,000
$58,701
$70,109
Exercised on 30 March 2015
250,000
100%
100%
The assessed fair value at grant date of options granted to the individuals is allocated equally over the period from grant
date to vesting date, and the amount is included in the remuneration tables above. Fair values at grant date are
independently determined using a Black-Scholes option pricing model that takes into account the exercise price, the term
of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the
expected dividend yield and the risk-free interest rate for the term of the option.
Shares provided on exercise of KMP remuneration options in FY2015:
Name
Liza Carpene
Date of Exercise
of Options
30 March 2015
Number of Ordinary Shares
Issued on Exercise of
Options During the Year
152,536
The amounts paid per ordinary share on the exercise of options at the date of exercise were as follows:
Exercise Date
30 March 2015
Amount Paid Per Share
$0.95
The above conversion did not result in the Company receiving any funds as the options were converted through the
Company’s cashless conversion mechanism which results in a reduced amount of shares being issued. No amounts are
unpaid on any shares issued through the exercise of options.
During the period an administrative error was identified which resulted in the inadvertent over issue of ordinary fully paid
shares through the cashless options conversion process to two Directors in the prior period. Once the issue was identified,
the Directors took the following actions to reimburse the Company to correct the administrative error:
Bill Beament: 234,915 shares were cancelled (as reported to the ASX on 30 March 2015); and
Peter O’Connor: repaid A$81,724.93 due to the prior disposal of the shares issued in error in satisfaction of the financial
gain prior to the period end.
The Company validated all other transactions involving the cashless conversion of options transactions.
(iii) Other transactions with Key Management Personnel
The Company has in place policies and procedures which govern transactions involving KMPs or related parties, and these
policies and procedures restrict the involvement of the KMP or related party in the negotiation, awarding or direct
management of the resultant contract. The following services were provided on market competitive rates.
John Fitzgerald is a Director, and:
(a) is a board member and has a beneficial interest in a shareholding in Optimum Capital Pty Ltd. During the year, a
revenue amount of $10,000 was paid to Optimum Capital Pty Ltd for consulting services provided at normal commercial
rates (2014: Nil);
Bill Beament is a Director, and:
(a) has a beneficial minority interest in a shareholding of Australian Underground Drilling Pty Ltd (and is a former Director who
resigned in June 2014). During the year a revenue amount of $6,952,574 was paid to this business for drilling services at
normal commercial rates (2014: $7,397,675);
2015 Annual Financial Report
Page 26
DIRECTORS’ REPORT
(b) has a beneficial minority interest in a shareholding in Premium Mining Personnel Pty Ltd. During the year, a revenue
amount of $3,979,135 was paid to this business for supplying specialist mining labour at commercial rates (2014:
$6,202,673); and
(c) is the sole director and has a beneficial interest in a shareholding in Mining & Infrastructure Group Pty Ltd. During the year
no amounts were paid to this business (2014: $7,100).
In addition to the above, the group had the followings receivables and payables from related parties noted above:
Assets
Trade Receivables
Liabilities
Trade Payables
2015
$000's
-
727
2014
$000's
57
1,193
(iv) Long Term Incentive Shares Issued to KMP
Shares issued pursuant to this plan (LTI Shares) are for services rendered by eligible employees and Directors. The Company
believes that LTI Shares provide effective remuneration for eligible employees and Directors for their ongoing commitment
and contribution to the Company. Where the Company offers to issue LTI Shares to eligible employees and Directors, the
Company may offer to provide the employee a limited recourse, interest free loan to be used for the purposes of
subscribing for the LTI Shares in the Company.
The table below includes details of LTI Shares issued to KMP in FY2015:
30 June 2015
Bill Beament
Liza Carpene
Raymond Parry*
Stuart Tonkin
Shaun Day
Michael Mulroney**
N/A
Date shares
granted
Loan expiry
date
9/10/2014
9/10/2014
N/A
9/10/2014
9/10/2014
30/6/2017
30/6/2017
N/A
30/6/2017
30/6/2017
N/A
Issue
Price
1.1874
1,1874
N/A
1.1874
1.1874
N/A
Balance at
the start of
year
1,000,000
325,000
425,000
500,000
-
-
Granted During
the period
Forfeited
during the
period
1,354,167
315,972
-
902,778
722,222
-
-
-
-
-
-
-
Balance at
the end of
the Period
2,354,167
640,972
425,000
1,402,778
722,222
-
Vested at
end of the
period
-
-
-
-
-
-
* Ceased employment on 3 October 2014 and did not participate in the FY2015 LTI allocation.
** Appointed 2 June 2015 and did not participate in the FY2015 LTI allocation.
On 9 October 2014, 4,827,058 FY2015 performance shares were issued to KMP and other personnel of the Company at an
issue price of $1.1874 per share, with a further 212,917 shares issued on 30 March 2015 to other personnel of the Company at
an issue price of $2.4549 per share. Corresponding limited recourse loans totalling $6,254,338 were entered into with KMP
and other personnel in accordance with the Company's LTI Share Plan as part of their remuneration. As at 30 June 2015,
FY2015 non-recourse loans had reduced to $6,153,539.
In FY2014, 4,090,000 FY2014 performance shares were issued to KMP and other personnel of the Company at an issue price
of $0.7304 per share. Corresponding non-recourse loans totalling $2,987,336 were entered into in accordance with the
Company's LTI Share Plan as part of their remuneration. During FY2015, 125,000 FY2014 performance shares were cancelled,
reducing the total FY2014 performance shares on issue to 3,965,000. As at 30 June 2015, FY2014 non-recourse loans had
reduced to $2,683,710.
Summary of Key
Loan terms:
FY2014
a. Loan Amount
$0.7304 per share
b. Interest rate
0%
FY2015
$1.1874
0%
c. Term of Loan
20 November 2013 to 30 June 2016
9 October 2014 to 30 June 2017
d. Vesting
Conditions
(1) Achievement of Performance Hurdles Measured at End of Year
3, being 30 June 2016
(2) Continued employment
(3) Personal Performance reviews must be satisfactory in all years
(1) Achievement of Performance Hurdles Measured at End of Year
3, being 30 June 2017
(2) Continued employment
(3) Personal Performance reviews must be satisfactory in all years
The loans are limited recourse and are secured against the performance shares held by the relevant participants.
The Board may, at its discretion, agree to forgive a loan made to a participant. The fair value at grant date is independently
determined using a Monte Carlo simulation model (market based vesting conditions) and a Black Scholes Model (non-
market vesting conditions) that takes into account the exercise price, the term of the performance share, the impact of
dilution (where material), the share price at grant date and expected price volatility of the underlying share, the expected
dividend yield, the risk free rate for the term of the performance share and the correlations and volatilities of the peer group
companies.
2015 Annual Financial Report
Page 27
DIRECTORS’ REPORT
The model inputs for performance share granted during the year ended 30 June 2015 included:
(a) exercise price
(b) grant date
(c) expiry date
9 October 2014
30 March 2015
$1.1874
$2.4549
9 October 2014
30 March 2015
30-Jun-17
30-Jun-17
(d) share price at grant date
(e) expected volatility of the company’s shares
(f) expected dividend yield
(g) risk-free interest rate
$1.245
60%
2.81%
2.63%
$2.26
65%
2.21%
1.73%
The expected price volatility is based on the historic volatility (based on the remaining life of the performance share)
adjusted for any expected changes to future volatility due to publicly available information.
The value of the instruments granted have been expensed on a proportionate basis for each financial year from grant date
to vesting date. The proportion of the value of the instrument, which were expensed and accounted for in the share option
reserve was for the year ended 30 June 2015, was $896,587.
CORPORATE GOVERNANCE STATEMENT
The Company’s 2015 Corporate Governance Statement has been released as a separate document and is located on our
website at http://www.nsrltd.com/about/corporate-governance/.
INDEMNIFICATION AND INSURANCE OF OFFICERS
During the year the Company has paid a premium to insure the Directors and officers of the Company and its controlled
entities. Details of the premium are subject to a confidentiality clause under the contract of insurance. The liabilities insured
are costs and expenses that may be incurred in defending civil or criminal proceedings that may be brought against the
Directors and officers in their capacity as officers of entities in the group.
NON-AUDIT SERVICES
The Company may decide to employ the auditor on assignments additional to their statutory audit duties where the
auditor’s expertise and experience with the Company and/or Group are important. Details of the amounts paid or payable
to the auditor (Deloitte) for the audit and non-audit services provided during the years are disclosed in note 27 to the
financial statements. The Directors are satisfied that the provision of non-audit services is compatible with the general
standard of independence for auditors imposed by the Corporations Act 2001. The Directors are satisfied that the provision
of non-audit services by the auditor did not compromise the auditor independence requirements of the Corporations Act
2001 for the following reasons:
all non-audit services have been reviewed by the Audit Committee to ensure they do not impact the impartially and
objectivity of the auditor; and
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code of
Ethics for Professional Accountants.
AUDITOR INDEPENDENCE
A copy of the auditor’s independence declaration as required under Section 307C of the Corporations Act 2001 is set out
on page 29.
ROUNDING
The Company is of a kind referred to in Class Order 98/100, issued by the Australian Securities and Investments Commission,
relating to the ‘rounding off’ of amounts in the Directors’ Report. Amounts in the Director’s Report have been rounded off in
accordance with that Class Order to the nearest thousand dollars, or in certain cases, to the nearest dollar.
This report is made in accordance with a resolution of Directors.
BILL BEAMENT
Managing Director
Perth, Western Australia
26 August 2015
2015 Annual Financial Report
Page 28
AUDITOR’S INDEPENDENCE DECLARATION
2015 Annual Financial Report
Page 29
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
Sales revenue
Cost of sales
Other income and expense
Corporate and technical services
Acquisition costs
Restructure costs
Impairment of assets
Finance costs
Profit before income tax
Income tax expense
Profit for the year
Notes
3
5 (a)
4
5 (b)
5 (c)
5 (d)
5 (e)
30 June 2015
30 June 2014*
$'000
845,653
(655,303)
190,350
$'000
296,976
(234,098)
62,878
420
3,788
(23,036)
(12,757)
(4,223)
(8,573)
(9,098)
133,083
(10,193)
(7,382)
(7,245)
(6,546)
(1,800)
33,500
6
(41,181)
(11,629)
91,902
21,871
Other comprehensive income
Items that may be reclassified to profit or loss
Changes in the fair value of available-for-sale financial assets
20(b)
Income tax relating to these items
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Total comprehensive income attributed to:
Owners of the Company
4,131
(1,239)
2,892
410
(123)
287
94,794
22,158
94,794
22,158
Earnings per share
*Basic earnings/(loss) per share (cents per share)
*Diluted earnings/(loss) per share (cents per share)
Cents per
Shares
Cents per
Shares
8
8
15.5
15.5
4.5
4.5
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying
notes.
* Restated: refer note 1.
2015 Annual Financial Report
Page 30
47,870
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Inventories
Current tax asset
Other assets
Total Current Assets
Non-Current Assets
Available-for-sale financial assets
Property, plant & equipment
Exploration and evaluation assets
Mine properties
Total Non-Current Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Trade and other payables
Borrowings
Provisions
Current tax liabilities
Total Current Liabilities
Non-Current Liabilities
Borrowings
Provisions
Deferred tax liabilities
Total Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Retained earnings
TOTAL EQUITY
30 June 2015
30 June 2014*
Notes
$'000
$'000
9
10
11
7
12
13
14
15
16
17
18(a)
7
17
18(b)
7
167,443
13,674
70,982
10,987
-
82,387
24,890
63,104
-
400
263,086
170,781
7,537
102,563
56,624
163,587
330,311
2,906
60,639
69,049
90,197
222,791
593,397
393,572
93,027
8,322
32,940
-
134,289
8,167
100,076
27,613
135,856
37,449
4,476
18,618
5,228
65,771
1,471
73,042
10,804
85,318
270,145
151,088
323,252
242,484
19
20
21
204,925
4,960
113,367
323,252
193,808
682
47,994
242,484
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
* Restated: refer note 1.
2015 Annual Financial Report
Page 31
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Balance at 1 July 2013
Profit for the year*
Other comprehensive Income
Total comprehensive Income for the year
Equity issue net of transaction costs
Share based payments
Exercise of employee share options
Dividends paid
Other
Balance at 30 June 2014
Profit for the year
Other comprehensive Income
Total comprehensive Income for the year
Equity issue net of transaction costs
Share based payments
Exercise of employee share options
Dividends paid
Share plan loan repayment
Other
Balance at 30 June 2015
Notes
20(b)
19(b)
5(b)
22(a)
20(b)
19(b)
5(b)
22(a)
Issued
Capital
$'000
66,765
-
-
-
125,568
84
1,391
-
-
193,808
-
-
-
10,000
980
443
-
(306)
204,925
Reserves
$'000
691
Retained
Earnings*
$'000
42,879
-
287
287
-
1,095
(1,391)
-
-
682
-
2,892
2,892
-
1,206
(443)
-
317
306
4,960
21,871
-
21,871
-
-
-
(16,393)
(363)
47,994
91,902
-
91,902
-
-
-
(26,529)
-
-
113,367
Total Equity
$'000
110,335
21,871
287
22,158
125,568
1,179
-
(16,393)
(363)
242,484
91,902
2,892
94,794
10,000
2,186
-
(26,529)
317
-
323,252
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
* Restated: refer note 1.
2015 Annual Financial Report
Page 32
CONSOLIDATED STATEMENT OF CASH FLOWS
30 June 2015
30 June 2014
Notes
$'000
$'000
Cash flows from operating activities
Receipts from customers (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
Interest received
Interest paid
Income taxes paid
Net cash from operating activities
Cash Flows from investing activities
Payments for acquisition of businesses, net of cash acquired
Payments for property, plant & equipment
Payments for exploration and evaluation
Payments for mine properties
Payments for available for sale financial assets
Proceeds from sale of property, plant and equipment
Proceeds from sale of available for sale financial assets
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares and other equity securities
Share issue costs
Proceeds from borrowings
Repayment of borrowings
Finance lease payments
Dividends paid
Net cash (used)/from financing activities
7(a)
9(b)
32
13
14
15
12
22(a)
Net increase in cash And cash equivalents
Cash and cash equivalents at beginning of financial year
Cash and cash equivalents at end of financial year
9(a)
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
847,086
308,506
(449,676)
(219,223)
2,079
(1,917)
(38,563)
359,009
(90,729)
(20,524)
(35,619)
(93,524)
(500)
1,438
-
1,624
(1,804)
(9,044)
80,059
(107,373)
(11,892)
(13,149)
(25,500)
-
551
24
(239,458)
(157,339)
-
-
128,856
(3,288)
75,750
(75,750)
(7,966)
(26,529)
(34,495)
85,056
82,387
167,443
-
-
(5,284)
(16,393)
103,891
26,612
55,775
82,387
2015 Annual Financial Report
Page 33
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
This note provides a list of all significant accounting policies adopted in the preparation of these consolidated financial
statements. These policies have been consistently applied to all the years presented, unless otherwise stated. The financial
statements are for the Group consisting of Northern Star Resources Limited (“the Company”) and its subsidiaries.
A. Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board and the Corporations Act 2001. Northern Star Resources
Limited is a for-profit entity for the purpose of preparing the financial statements.
(i) Compliance with IFRS
Compliance with Australian Accounting Standards ensures that the financial statements and notes of the Company and the
Group complies with international financial reporting standards (IFRS). The financial statements were authorised for issue by
Directors on 26 August 2015.
(ii) Historical cost convention
The financial statements have been prepared on a historical cost basis, except for available-for-sale financial assets,
financial assets and liabilities (including derivative instruments) which are measured at fair value.
(iii) New and amended standards adopted by the Group
The consolidated entity has adopted all of the new, revised or amending Accounting Standards and Interpretations issued
by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early
adopted.
Any significant impact of the accounting policies of the consolidated entity from the adoption of these Accounting
Standards and Interpretations are disclosed below. The adoption of these Accounting Standards and Interpretations did not
have any significant impact on the financial performance or position of the consolidated entity.
(iv) Rounding of amounts
The Company is of a kind referred to in Class Order 98/100, issued by the Australian Securities and Investments Commission,
relating to the ‘rounding off’ of amounts in the financial statements. Amounts in the financial statements have been
rounded off in accordance with that Class Order to the nearest thousand dollars, or in certain cases, the nearest dollar.
(v) Parent entity financial information
The financial information for the parent entity, Northern Star Resources Limited, disclosed in note 30 has been prepared on
the same basis as the consolidated financial statements, except in for Investments in subsidiaries which are accounted for
at cost.
Comparative Restatement
Available for sale financial assets
In the current period, the Group identified an immaterial prior period error in respect of accounting for investments in listed
equity instruments. In the prior period, these investments were incorrectly accounted for as financial assets held for trading
under the principles prescribed in Australian Accounting Standard AASB 139 Financial Instruments: Recognition and
Measurement, with the fair value movements of the investments recognised through profit or loss. Based on the nature of the
equity instruments and the purpose for which they are held, the Group has identified that these instruments should have
been accounted for as financial assets available for sale, with the fair value movements of the investments recognised in
equity.
A mark to market expense of $0.6 million was recognised in the statement of profit or loss and other comprehensive income
for the year ended 30 June 2014. This expense was made up of a $1 million loss on revaluation of listed investments that had
been subject to impairment in the year ended 30 June 2013, offset by $0.4 million in gains on other listed equity investments.
Consequently, the statement of profit or loss and other comprehensive income for the year ended 30 June 2014 has been
restated, resulting in a decrease to the net loss on financial statements held at fair value through profit or loss of $0.6 million
and an increase to impairment losses of $1 million. This restatement has resulted in an increase of $0.4 million (pre-tax) to the
available for sale reserve as at 30 June 2014. Net profit and earnings per share for the year ended 30 June 2014 have also
been restated, resulting in a decrease of $0.4 million and 5 cents per share respectively, compared to that previously
presented.
There was no impact on the statement of cash flows for the year ended 30 June 2014 as a result of the correction of the
error. The error has no impact on reserves or retained earnings as at 1 July 2013.
Derivative Financial Instruments
In the current period, the Group identified an immaterial prior period error in respect of accounting for gold forward sales
contracts. In the prior period, these contracts that are entered into and held for the purpose of hedging future gold sales,
through the physical delivery of gold bullion were incorrectly accounted for under the accounting principles prescribed in
Australian Accounting Standard AASB 139 Financial Instruments: Recognition and Measurement, with the forward sales
2015 Annual Financial Report
Page 34
NOTES TO THE FINANCIAL STATEMENTS
contracts treated as derivative financial instruments, at fair value through profit or loss. However, AASB 139 specifically
excludes from its scope contracts that are entered into for the purposes of physical delivery in accordance with an entity’s
expected sales requirements.
A derivative asset of $3.0 million and a derivative liability of $1.3 million were recognised in the statement of financial position
as at 30 June 2014. No gold forward sales contracts were entered into by the Group prior to 1 July 2013.
Consequently, during the current year, the statement of financial position as at 30 June 2014 has been restated, resulting in
a $3.0 million decrease to assets, $1.3 million decrease to liabilities and $1.7 million decrease to retained earnings.
Additionally net profit and earnings per share for the year ended 30 June 2014 have also decreased by $1.7 million and 5
cents per share respectively, compared to that originally presented.
There was no impact on the statement of cash flows for the year ended 30 June 2014 as a result of the correction of the
error.
Apart from the changes above, the accounting policies applied by the Group in this consolidated financial report are the
same as those applied by the Group in its consolidated financial report as at and for the year ended 30 June 2015.
(vi) New Standards and Interpretations not yet adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2015.
The consolidated entity's assessment of the impact of these new or amended Accounting Standards and Interpretations,
most relevant to the consolidated entity, are set out below.
Title of standard
AASB 9
‘Financial Instruments’, and
the relevant amending
standards
AASB 2014-3
‘Amendments to Australian
Accounting Standards –
Accounting for Acquisitions of
Interests in Joint Operation’
AASB 2014-4
‘Amendments to Australian
Accounting Standards –
Clarification of Acceptable
Methods of Depreciation and
Amortisation’
AASB 15
‘Revenue from Contracts with
Customers’
for
financial assets and b)
Nature of change
AASB 9 issued in December 2009 introduced new requirements
for the classification and measurement of financial assets. AASB
9 was subsequently amended in December 2010 to include
requirements
the classification and measurement of
financial liabilities and for de-recognition, and in December
2013 to include the new requirements for general hedge
accounting. Another revised version of AASB 9 was issued in
December 2014 mainly to include a) impairment requirements
for
limited amendments to the
classification and measurement requirements by introducing a
‘fair value through other comprehensive income’ (FVTOCI)
measurement category for certain simple debt instruments.
The amendments to AASB 11 provide guidance on how to
account for the acquisition of a joint operation that constitutes
a business as defined in AASB 3 ‘Business Combinations’.
Specifically, the amendments state that the relevant principles
on accounting for business combinations in AASB 3 and other
standards (e.g. AASB 136 ‘Impairment of Assets’ regarding
impairment testing of a cash generating unit to which goodwill
on acquisition of a joint operation has been allocated) should
be applied. The same requirements should be applied to the
formation of a joint operation if, and only if, an existing business
is contributed to the joint operation by one of the parties that
participate in the joint operation.
A joint operator is also required to disclose the relevant
information required by AASB 3 and other standards for
business combinations.
The amendments to AASB 116 prohibit entities from using a
revenue-based depreciation method for items of property,
plant and equipment. The amendments to AASB 138 introduce
a rebuttable presumption that revenue is not an appropriate
basis for amortisation of an intangible asset. This presumption
can only be
limited
circumstances:
following
rebutted
two
the
in
o
o
when the intangible asset is expressed as a measure
of revenue; or
when it can be demonstrated that revenue and
consumption of the economic benefits of the
intangible asset are highly correlated.
The amendments apply prospectively for annual periods
beginning on or after 1 January 2016. Currently, the Group uses
both the straight-line method and units- -of-production for
depreciation and amortisation for its property, plant and
equipment. The Directors of the Company believe that the use
of both methods is the most appropriate to reflect the
consumption of economic benefits inherent in the respective
assets.
AASB 15 establishes a single comprehensive model for entities
to use in accounting for revenue arising from contracts with
customers. AASB 15 will supersede the current
revenue
recognition guidance including AASB 118 ‘Revenue,’ AASB 111
‘Construction Contracts’ and the related Interpretations when
it becomes effective.
Application date
for the Group
1 January 2018
Impact on Group
The Group has
not yet
determined the
extent of the
impact, if any.
1 January 2016
1 January 2016
The adoption of
this new
standard,
amendment or
interpretation is
not expected to
have a material
impact on the
Group’s financial
statements.
The adoption of
this new
standard,
amendment or
interpretation is
not expected to
have a material
impact on the
Group’s financial
statements.
1 January 2017
The Group has
not yet
determined the
extent of the
impact, if any.
2015 Annual Financial Report
Page 35
NOTES TO THE FINANCIAL STATEMENTS
The core principle of AASB 15 is that an entity should recognise
revenue to depict the transfer of promised goods or services to
customers in an amount that reflects the consideration to
which the entity expects to be entitled in exchange for those
goods or services. Specifically, the Standard introduces a 5-step
approach to revenue recognition:
o
o
o
o
o
Step 1: Identify the contract(s) with a customer
Step 2: Identify the performance obligations in the
contract
Step 3: Determine the transaction price
Step 4: Allocate
performance obligations in the contract
Step 5: Recognise revenue when (or as) the entity
satisfies a performance obligation
the transaction price to the
Under AASB 15, an entity recognises revenue when (or as) a
performance obligation is satisfied, i.e. when ‘control’ of the
goods or services underlying the particular performance
obligation is transferred to the customer.
Other than as noted above, the adoption of the various Australian Accounting Standards and Interpretations in issue but not
yet effective will not impact the Group’s accounting policies. However, the pronouncements will result in changes to
information currently disclosed in the financial statements. The Group does not intend to adopt any of these
pronouncements before their effective dates.
B. Principles of consolidation
(i) Subsidiaries
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity
when the Group 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 obtained by the Group. They are deconsolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted
by the Group.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of profit
or loss and other comprehensive income, statement of changes in equity and balance sheet respectively.
(ii) Joint arrangements
Under AASB 11 Joint Arrangements investments in joint arrangements are classified as either joint operations or joint ventures.
The classification depends on the contractual rights and obligations of each investor, rather than the legal structure of the
joint arrangement. Northern Star Resources Limited has only joint operations. A joint operation is a joint arrangement
whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities,
relating to the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only
when decisions about the relevant activities require unanimous consent of the parties sharing control.
(iii) Joint operations
Northern Star Resources Limited recognises its direct right to the assets, liabilities, revenues and expenses of joint operations
and its share of any jointly held or incurred assets, liabilities, revenues and expenses. These have been incorporated in the
financial statements under the appropriate headings. Details of the Group’s interests in joint operation are set out in note 23.
(iv) Change in ownership interests
The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity
owners of the Group. A change in ownership interest results in an adjustment between the carrying amounts of the
controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the
amount of the adjustment to non-controlling interests and any consideration paid or received is recognised in a separate
reserve within equity attributable to owners of Northern Star Resources Limited.
When the Group ceases to consolidate or equity account for an investment because of a loss of control, joint control or
significant influence, any retained interest in the entity is remeasured to its fair value with the change in carrying amount
recognised in profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently accounting
for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in
other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related
assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to
profit or loss.
C. Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the
2015 Annual Financial Report
Page 36
NOTES TO THE FINANCIAL STATEMENTS
operating segments, has been identified as the Board of Directors who are responsible for the Groups strategic decisions.
Refer to note 28 for further details.
D. Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary
economic environment in which the entity operates (‘the functional currency’). The consolidated financial statements are
presented in Australian dollars, which is Northern Star Resources Limited’s functional and presentation currency.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation
of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in
profit or loss. They are deferred in equity if they relate to qualifying cash flow hedges and qualifying net investment hedges
or are attributable to part of the net investment in a foreign operation.
Foreign exchange gains and losses that relate to borrowings are presented in the statement of profit or loss, within finance
costs. All other foreign exchange gains and losses are presented in the statement of profit or loss on a net basis within other
income or other expenses.
Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the
date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as
part of the fair value gain or loss. For example, translation differences on non-monetary assets and liabilities such as equities
held at fair value through profit or loss are recognised in profit or loss as part of the fair value gain or loss and translation
differences on non-monetary assets such as equities classified as available-for-sale financial assets are recognised in other
comprehensive income.
E. Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefit will flow to the entity and the revenue can
be reliably measured. Revenue is measured at the fair value of the consideration received or receivable.
(i) Metal sales
Revenue is recognised when there has been a transfer of risks and rewards from the Group to an external party, no further
processing is required by the Group, quality and quantity of the goods has been determined with reasonable accuracy, the
selling price is fixed or determinable, and collectability is probable. The point at which risk and rewards passes for the
majority of the Group’s commodity sales is upon delivery of the gold bullion to the refiner. Adjustments are made for
variations in commodity price, assay and weight between the time of dispatch and the time of final settlement.
(ii) Interest
Interest income is recognised as it accrues using the effective interest method.
F.
Income tax
The income tax expense or revenue for the period is the tax payable on the current period’s taxable income based on the
applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences
and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the
reporting period in the countries where the Company’s subsidiaries operate and generate taxable income. Management
periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to
interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
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 consolidated financial statements. Deferred tax liabilities are not
recognised if they arise from the initial recognition of goodwill. Deferred income tax is not accounted for if it arises from initial
recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction
affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have
been enacted or substantially enacted by the end of the reporting period 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 only if it is probable that future taxable amounts will be available to utilise those
temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases
of investments in foreign operations where the Company is able to control the timing of the reversal of the temporary
differences and it is probable that the differences will not reverse in the foreseeable future.
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 tax 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.
2015 Annual Financial Report
Page 37
NOTES TO THE FINANCIAL STATEMENTS
Northern Star Resources Limited and its wholly-owned Australian controlled entities have implemented the tax consolidation
legislation. As a consequence, these entities are taxed as a single entity and the deferred tax assets and liabilities of these
entities are set off in the consolidated financial statements.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or
directly in equity, respectively.
G. Investment allowances and similar tax incentives
Companies within the Group may be entitled to claim special tax deductions for investments in qualifying assets or in
relation to qualifying expenditure (e.g. the Research and Development Tax Incentive regime in Australia or other investment
allowances). The Group accounts for such allowances as tax credits, which means that the allowance reduces income tax
payable and current tax expense. A deferred tax asset is recognised for unclaimed tax credits that are carried forward as
deferred tax assets.
H. Leases
Leases of property, plant and equipment where the Group, as lessee, has substantially all the risks and rewards of ownership
are classified as finance leases. Finance leases are capitalised at the lease’s inception at the fair value of the leased
property or, if lower, the present value of the minimum lease payments. The corresponding rental obligations, net of finance
charges, are included in other short-term and long-term borrowings. Each lease payment is allocated between the liability
and finance cost. The finance cost is charged to the profit or loss over the lease period so as to produce a constant periodic
rate of interest on the remaining balance of the liability for each period. The property, plant and equipment acquired under
finance leases is depreciated over the asset’s useful life or over the shorter of the asset’s useful life and the lease term if there
is no reasonable certainty that the Group will obtain ownership at the end of the lease term.
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Group as lessee are
classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are
charged to profit or loss on a straight-line basis over the period of the lease.
I. Business combinations
The acquisition method of accounting is used to account for all business combinations, regardless of whether equity
instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the:
fair values of the assets transferred;
liabilities incurred to the former owners of the acquired business;
equity interests issued by the Group;
fair value of any asset or liability resulting from a contingent consideration arrangement; and
fair value of any pre-existing equity interest in the subsidiary.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited
exceptions, measured initially at their fair values at the acquisition date. The Group recognises any non-controlling interest in
the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest’s proportionate
share of the acquired entity’s net identifiable assets. Acquisition-related costs are expensed as incurred.
The excess of the:
consideration transferred;
amount of any non-controlling interest in the acquired entity; and
acquisition-date fair value of any previous equity interest in the acquired entity over the fair value of the net identifiable
assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the
subsidiary acquired, the difference is recognised directly in profit or loss as a bargain purchase.
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their
present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate, being the rate
at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions.
Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are
subsequently remeasured to fair value with changes in fair value recognised in profit or loss.
If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s previously held equity
interest in the acquire is remeasured to fair value at the acquisition date. Any gains or losses arising from such re-
measurement are recognised in profit or loss.
J.
Impairment of assets
Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for
impairment or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are
tested for impairment 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 the asset’s carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the
purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash
inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-
financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at the end
of each reporting period.
2015 Annual Financial Report
Page 38
NOTES TO THE FINANCIAL STATEMENTS
K. Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits
held at call with financial institutions, other short-term, highly liquid investments with maturities of three months or less from
reporting date that are readily convertible to known amounts of cash and which are subject to an insignificant risk of
changes in value.
L. Trade and other receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective
interest method, less provision for impairment.
M. Inventories
Gold bullion, gold in circuit and ore stockpiles are physically measured or estimated and valued at the lower of cost and net
realisable value. Cost represents the weighted average cost and includes direct purchase costs and an appropriate portion
of fixed and variable production overhead expenditure, including depreciation and amortisation, incurred in converting
materials into finished goods.
Materials and supplies are valued at the lower of cost and net realisable value. Any allowance for obsolescence is
determined by reference to specific stock items identified. A regular and on-going review is undertaken to establish the
extent of surplus items and an allowance is made for any potential loss on their disposal.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion
and the estimated costs necessary to make the sale.
Ore stockpiles which are not expected to be processed in the 12 months after the reporting date are classified as non-
current inventory. There is a reasonable expectation the processing of these stockpiles will have a future economic benefit
to the Group and accordingly values these stockpiles at the lower of cost and net realisable value.
N. Investments and other financial assets
(i) Classification
The Group classifies its financial assets in the following categories:
financial assets at fair value through profit or loss;
loans and receivables;
held-to-maturity investments; and
available-for-sale financial assets.
The classification depends on the purpose for which the investments were acquired. Management determines the
classification of its investments at initial recognition and in the case of assets classified as held-to-maturity, re-evaluates this
designation at the end of each reporting period.
(ii) Recognition and de-recognition
Regular way purchases and sales of financial assets are recognised on trade-date, the date on which the Group commits to
purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets
have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership.
When securities classified as available-for-sale are sold, the accumulated fair value adjustments recognised in other
comprehensive income are reclassified to profit or loss as gains and losses from investment securities.
(iii) Measurement
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair
value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset.
Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.
Loans and receivables and held-to-maturity investments are subsequently carried at amortised cost using the effective
interest method.
Available-for-sale financial assets and financial assets at fair value through profit or loss are subsequently carried at fair
value. Gains or losses arising from changes in the fair value are recognised as follows:
for ‘financial assets at fair value through profit or loss’ – in profit or loss within other income or other expenses;
for available for sale financial assets that are monetary securities denominated in a foreign currency – translation
differences related to changes in the amortised cost of the security are recognised in profit or loss and other changes in
the carrying amount are recognised in other comprehensive income; and
for other monetary and non-monetary securities classified as available for sale – in other comprehensive income.
Dividends on financial assets at fair value through profit or loss and available-for-sale equity instruments are recognised in
profit or loss as part of revenue from continuing operations when the Group’s right to receive payments is established.
Interest income from financial assets at fair value through profit or loss is included in the net gains/(losses). Interest on
available-for-sale securities calculated using the effective interest method is recognised in the income statement as part of
revenue from continuing operations.
2015 Annual Financial Report
Page 39
NOTES TO THE FINANCIAL STATEMENTS
(iv) Impairment
The Group assesses at the end of each reporting period whether there is objective evidence that a financial asset or group
of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred
only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition
of the asset (a ‘loss event’) and that loss event (or events) has an impact on the estimated future cash flows of the financial
asset or group of financial assets that can be reliably estimated. In the case of equity investments classified as available-for-
sale, a significant or prolonged decline in the fair value of the security below its cost is considered an indicator that the
assets are impaired.
(v) Assets carried at amortised cost
For loans and receivables, the amount of the loss is measured as the difference between the asset’s carrying amount and
the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at
the financial asset’s original effective interest rate. The carrying amount of the asset is reduced and the amount of the loss is
recognised in profit or loss. If a loan or held-to-maturity investment has a variable interest rate, the discount rate for
measuring any impairment loss is the current effective interest rate determined under the contract. As a practical
expedient, the Group may measure impairment on the basis of an instrument’s fair value using an observable market price.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an
event occurring after the impairment was recognised (such as an improvement in the debtor’s credit rating), the reversal of
the previously recognised impairment loss is recognised in profit or loss. Impairment testing of trade receivables is described
in note 29.
(vi) Assets classified as available-for-sale
If there is objective evidence of impairment for available-for-sale financial assets, the cumulative loss – measured as the
difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously
recognised in profit or loss – is removed from equity and recognised in profit or loss.
Impairment losses on equity instruments that were recognised in profit or loss are not reversed through profit or loss in a
subsequent period. If the fair value of a debt instrument classified as available-for-sale increases in a subsequent period and
the increase can be objectively related to an event occurring after the impairment loss was recognised in profit or loss, the
impairment loss is reversed through profit or loss.
O. Derivatives and hedging activities
The Group uses derivative financial instruments, such as forward commodity contracts, to hedge its commodity price risks.
Commodity contracts that were entered into and continue to be held for the purpose of the receipt or delivery of a non-
financial item in accordance with the Group’s expected purchase, sale or usage requirements fall within the exemption
from AASB 132 Financial Instruments: Presentation and AASB 139 Financial Instruments: Recognition and Measurement, which
is known as the “own use exemption”.
For these contracts and the host part of the contracts containing embedded derivatives, they are accounted for as
executory contracts. The Group recognises such contracts in its statement of financial position only when one of the parties
meets its obligation under the contract to deliver either cash or a non-financial asset.
P. Exploration and evaluation expenditure
Exploration and evaluation assets include the costs of acquiring licences, costs associated with exploration and evaluation
activity, and the fair value (at acquisition date) of exploration and evaluation assets acquired in a business combination.
Exploration and evaluation expenditure is capitalised on an area of interest basis. Costs incurred before the Group has
obtained the legal rights to explore an area are recognised in the statement of profit or loss and other comprehensive
income. Exploration and evaluation assets are only recognised if the rights of the area of interest are current and either:
the expenditures are expected to be recouped through successful development and exploitation of the area of interest;
or
activities in the area of interest have not at the reporting date, reached a stage which permits a reasonable assessment
of the existence or otherwise of economically recoverable reserves and active and significant operations in, or in relation
to, the area of interest are continuing.
Such expenditure consists of an accumulation of acquisition costs and direct net exploration and evaluation costs incurred
by or on behalf of the Group, together with an appropriate portion of directly related overhead expenditure.
At the commencement of production, all past exploration and evaluation expenditure in respect of an area of interest that
has been capitalised is transferred to mine properties where it is amortised over the life of the area of interest to which it
relates on a unit-of-production basis. No amortisation is charged during the exploration and evaluation phase.
When an area of interest is abandoned or the Directors decide it is not commercial, any accumulated costs in respect of
that area are written off in the year the decision is made. Each area of interest is reviewed at the end of each reporting
period and accumulated costs written off to the extent they are not expected to be recoverable in the future.
Recoverability of the carrying amount of the exploration and evaluation assets is dependent on successful development
and commercial exploitation, or alternatively, sale of the respective areas of interest.
Q. Property, plant and equipment
Property, plant and equipment is carried at historical cost less accumulated depreciation and impairment losses. Historical
cost includes expenditure that is directly attributable to the acquisition of the items.
2015 Annual Financial Report
Page 40
NOTES TO THE FINANCIAL STATEMENTS
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when
it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be
measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when
replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are
incurred.
Items of property, plant and equipment are depreciated over their estimated useful lives. The Group uses the unit-of-
production basis when depreciating mine specific assets which results in a depreciation/amortisation charge proportional to
the depletion of the anticipated remaining life of mine. Each item’s economic life has due regard to both its physical life
limitations and to present assessments of economically recoverable reserves and resources of the mine property at which it
is located.
For the remainder of assets the straight-line method is used, resulting in estimated useful lives between 3 to 20 years, the
duration of which reflects the useful life depending on the nature of the asset. Estimates of remaining useful lives and
depreciation methods are reviewed annually for all major items of plant and equipment.
Major spares purchased specifically for particular plant are capitalised and depreciated on the same basis as the plant to
which they relate. Assets are depreciated or amortised from the date they are installed and are ready for use, or in respect
of internally constructed assets, from the time the asset is completed and deemed ready for use.
The cost of improvements to leasehold properties is amortised over the unexpired period of the lease or the estimated useful
life of the improvement, whichever is the shorter.
R. Mine properties
(i) Mines under construction
Expenditure incurred in constructing a mine by, or on behalf of, the Group is accumulated separately for each area of
interest in which economically recoverable reserves and resources have been identified. This expenditure includes direct
costs of construction, drilling costs and removal of overburden to gain access to the ore, borrowing costs capitalised during
construction and an appropriate allocation of attributable overheads. Once commercial production rates have been
established, all aggregated costs of construction are transferred to non-current assets as either mine development (a
separate category within Mine properties) or an appropriate class of property, plant and equipment.
(ii) Mine development
Mine development represents expenditure in respect of exploration and evaluation, overburden removal and construction
costs and development incurred by or on behalf of the Group previously accumulated and carried forward in relation to
properties in which mining has now commenced. Such expenditure comprises direct costs and an appropriate allocation of
directly related overhead expenditure.
All expenditure incurred prior to commencement of production from each development property is carried forward to the
extent to which recoupment out of future revenue from the sale of production, or from the sale of the property, is
reasonably assured. When further development expenditure is incurred in respect of a mine property after commencement
of commercial production, such expenditure is carried forward as part of the cost of the mine property only when future
economic benefits are reasonably assured, otherwise the expenditure is classified as part of the cost of production and
expensed as incurred. Such capitalised development expenditure is added to the total carrying value of mine development
being amortised.
Mine development costs (as transferred from exploration and evaluation and/or mines under construction) are amortised on
a units-of-production basis over the life of mine to which they relate. In applying the units of production method,
amortisation is calculated using the expected total contained ounces as determined by the life of mine plan specific to that
mine property. For development expenditure undertaken during production, the amortisation rate is based on the ratio of
total development expenditure (incurred and anticipated) over the expected total contained ounces as estimated by the
relevant life of mine plan to achieve a consistent amortisation rate per ounce. The rate per ounce is typically updated upon
a revised life of mine.
(iii) Mineral interests
Mineral interests comprise identifiable exploration and evaluation assets, mineral resources and ore reserves, which are
acquired as part of a business combination or joint venture acquisition and are recognised at fair value at the date of
acquisition. Where possible, mineral interests are attributable to specific areas of interest and are classified within mine
properties.
Amortisation of mineral interests commences from the date when commercial production commences or in the case of
acquired mineral interests, from the date of acquisition and is charged to the profit or loss on a unit-of-production basis over
the estimated economic reserve and resource of the property to which the interests relate. These assets form part of the
total investment in the relevant cash generating unit to which they relate, which is reviewed for impairment in accordance
with the Group’s impairment accounting policy (refer Note 1j).
S. Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year which are
unpaid. The amounts are unsecured and are usually paid within 30-60 days of recognition. Trade and other payables are
presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised
initially at their fair value and subsequently measured at amortised cost using the effective interest method.
2015 Annual Financial Report
Page 41
NOTES TO THE FINANCIAL STATEMENTS
T. Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at
amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised
in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan
facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be
drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is
probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and
amortised over the period of the facility to which it relates.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for
at least 12 months after the reporting date.
U. Borrowing costs
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a
qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended
use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use
or sale.
Other borrowing costs are expensed in the period in which they are incurred.
V. Provisions
Provisions are recognised when the Group has a present legal or constructive obligation 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.
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the
present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate
that reflects current market assessments of the time value of money.
W. Provision for rehabilitation
The Group records the present value of the estimated cost of legal and constructive obligations to rehabilitate operating
locations in the period in which the obligation is incurred. The nature of rehabilitation activities includes dismantling and
removing structures, rehabilitating mines, dismantling operating facilities, closure of plant and waste sites and restoration,
reclamation and revegetation of affected areas.
Typically the obligation arises when the asset is installed or the ground/environment is disturbed at the production location.
When the liability is initially recorded, the present value of the estimated cost is capitalised by increasing the carrying
amount of the related mining assets. Over time, the discounted liability is increased for the change in the present value
based on a discount rate. Additional disturbances or changes in rehabilitation costs will be recognised as additions or
changes to the corresponding asset and rehabilitation liability when incurred.
The unwinding of the effect of discounting the provision is recorded as a finance charge in the profit or loss. The carrying
amount capitalised as a part of mining assets is depreciated/ amortised over the life of the related asset. Costs incurred that
relate to an existing condition caused by past operations but do not have a future economic benefit are expensed as
incurred.
X.
Employee benefits
(i) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months
after the end of the period in which the employees render the related service are recognised in respect of employees’
services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities
are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.
(ii) Other long-term employee benefit obligations
The liability for long service leave and other long-term benefits is measured at the present value of the estimated future cash
outflows to be made by the Group for those employees with greater than 5 years’ service up to the reporting date. Long-
term benefits not expected to be settled within 12 months are discounted using the rates attaching to high quality
corporate bonds at the reporting date, which most closely match the terms of maturity of the related liability. In determining
the liability for these long-term employee benefits, consideration has been given to expected future increases in wage and
salary rates, the Group’s experience with staff departures and periods of service. Related on-costs are also included in the
liability.
(iii) Defined contribution superannuation plan
Contributions to defined contribution superannuation plans are expensed when incurred.
(iv) Share-based payments
Share-based compensation benefits are provided to employees via the Northern Star Resources Limited Performance Share
Plan (“Share Plan”), Employee Option Plan (“Option Plan”) and an Employee Share Scheme. Information relating to these
schemes is set out in remuneration report and note 25.
2015 Annual Financial Report
Page 42
NOTES TO THE FINANCIAL STATEMENTS
The fair value of shares and options granted under the Plans is recognised as an employee benefits expense with a
corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the
shares or options granted, which includes any market performance conditions and the impact of any non-vesting conditions
but excludes the impact of any service and non-market performance vesting conditions.
Non-market vesting conditions are included in assumptions about the number of shares and options that are expected to
vest. The total expense is recognised over the vesting period, which is the period over which all of the specified vesting
conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of shares and options
that are expected to vest based on the non-market vesting conditions. It recognises the impact of the revision to original
estimates, if any, in profit or loss, with a corresponding adjustment to equity.
Y.
Issued capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are
shown in equity as a deduction, net of tax, from the proceeds.
Z.
Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion
of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.
AA. Earnings per share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing:
the profit attributable to owners of the Company, excluding any costs of servicing equity other than ordinary shares
by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements
in ordinary shares issued during the year and excluding treasury shares.
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:
the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares; and
the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion
of all dilutive potential ordinary shares.
AB. Royalties
Royalties under existing royalty regimes are payable on sales and are therefore recognised as the sale occurs.
AC. Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of
the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
which are recoverable from, or payable to the taxation authority, are presented as operating cash flows.
2. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
Judgements, estimates and assumptions are continually evaluated and are based on historical experience and other
factors, including expectations of future events that are believed to be reasonable under the circumstances. The Group
makes assumptions concerning the future. All judgements, estimates and assumptions made are believed to be reasonable
based on the most current set of circumstances available to management. The resulting accounting estimates will, by
definition, seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed
below.
a) Determination of mineral resources and ore reserves
The Group reports its Mineral Resources and Ore Reserves in accordance with the Joint Ore Reserves Committee (JORC)
Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” – the JORC Code. The
information on Mineral Resources and Ore Reserves is prepared by Competent Persons as defined by the JORC Code.
There are numerous uncertainties inherent in estimating Mineral Resources and Ore Reserves. Assumptions that are valid at
the time of estimation may change significantly when new information becomes available.
Changes in the forecast prices of commodities, exchange rates, production costs or recovery rates may change the
economic status of reserves and may, ultimately, result in the reserves being restated. Such changes may impact asset
carrying values, depreciation and amortisation rates, deferred development costs and provisions for restoration.
2015 Annual Financial Report
Page 43
NOTES TO THE FINANCIAL STATEMENTS
b) Mine rehabilitation provision
The Group assesses its mine rehabilitation provision annually in accordance with the accounting policy Note 1(w). Significant
judgement is required in determining the provision for mine rehabilitation as there are many transactions and other factors
that will affect the ultimate liability payable to rehabilitate the mine sites. Factors that will affect this liability include future
disturbances caused by further development, changes in technology, changes in regulations, price increases, changes in
timing of cash flows which are based on life of mine plans and changes in discount rates. When these factors change or
become known in the future, such differences will impact the mine rehabilitation provision in the period in which they
change or become known.
c) Unit of production method of depreciation/amortisation
The Group uses the unit-of-production basis when depreciating/amortising specific assets which results in a depreciation
/amortisation charge proportional to the depletion of the anticipated remaining life of mine. Each item’s economic life,
which is assessed annually has due regard to both its physical life limitations and to present assessments of economically
recoverable reserves of the mine property at which it is located.
d) Exploration and evaluation expenditure
The application of the Group’s accounting policy for exploration and evaluation expenditure, as set out in note 1(p),
requires management to make certain estimates and assumptions as to future events and circumstances, in particular, the
assessment of whether economic quantities of reserves will be found. Any such estimates and assumptions may change as
new information becomes available, which may require adjustments to the carrying value of assets. Capitalised exploration
and evaluation expenditure is assessed for impairment when an indicator of impairment exists, and capitalised assets are
written off where required.
e) Impairment of assets
The Group undertakes an impairment review to determine whether any indicators of impairment are present. Where
indicators of impairment exist, an estimate of the recoverable amount of the CGU is made. These assessments require the
use of estimates and assumptions such as discount rates, exchange rates, commodity prices, gold multiple values, future
operating development and sustaining capital requirements and operating performance. An indicator assessment of
impairment was undertaken for all operations at balance date and it was concluded that for the Plutonic gold mine
operation an impairment indicator did exist given the higher cost structure of the operation evidenced in the second half of
the year and as highlighted in note 28. As directed under AASB 136 Impairment of Assets, the recoverable amount of assets
associated with the Plutonic operation was estimated using a fair value less cost to sell approach through a discounted cash
flow model. The discounted cash flow model used to estimate the recoverable amount was constructed using information
from the most recent Plutonic Life of Mine (LOM) model and under the guidance of AASB 13 Fair Value Measurement. The
recoverable amount estimate, which included operating cost efficiencies which have been planned, initiated and/or
already implemented, comfortably exceeded the carrying value of the associated assets of the Plutonic operations and
therefore no impairment loss was charged to the profit or loss for the year ended 30 June 2015.
f) Recovery of deferred tax assets
Deferred tax assets, including those arising from unutilised tax losses, require management to assess the likelihood that the
Group will comply with the relevant tax legislation and will generate sufficient taxable earnings in future periods in order to
recognise and utilise those deferred tax assets. Estimates of future taxable income are based on forecast cash flows from
operations and existing tax laws in each jurisdiction. These assessments require the use of estimates and assumptions such as
exchange rates, commodity prices and operating performance over the life of the assets. To the extent that cash flows and
taxable income differ significantly from estimates, the ability of the Group to realise the net deferred tax assets reported at
the reporting date could be impacted. Additionally, future changes in tax laws in the jurisdictions in which the Group
operates could limit the ability of the Group to obtain tax deductions in future periods.
g) Share based payments
The Group measures the cost of equity settled transactions with employees by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined using the assumptions detailed in note 25.
2015 Annual Financial Report
Page 44
NOTES TO THE FINANCIAL STATEMENTS
3. REVENUE
Sales revenue
Sale of gold
Sale of silver
4. OTHER INCOME AND EXPENSE
Interest income
Profit/(loss) on disposal of property, plant and equipment
Other
5. EXPENSES
(a) Cost of sales
Mining
Processing
Site administration
Depreciation
Amortisation
Government royalty expense
(b) Corporate and technical services
Administration
Depreciation
Employee benefits
Shares based payments
(c) Acquisition costs (net)
Pre-emptive waiver expense (note 32)
Gain on bargain purchase (note 32)
Acquisition costs
(d) Impairment of assets
Exploration & evaluation (note 14)
Available for sale financial assets (note 12)
(e) Finance costs
Interest expense
Finance charges
Rehabilitation provision – unwinding of discount (note 18)
Total expenses
30 June 2015
30 June 2014
$'000
$'000
843,661
1,992
845,653
296,263
713
296,976
30 June 2015
30 June 2014
$'000
2,091
(2,537)
866
420
$'000
1,727
23
2,038
3,788
30 June 2015
$'000
30 June 2014
$'000
308,380
127,767
32,891
42,802
122,454
21,009
655,303
7,766
132
12,952
2,186
23,036
10,000
(10,000)
12,757
12,757
8,573
-
8,573
2,107
2,427
4,564
9,098
708,767
98,062
44,284
36,820
15,252
32,352
7,328
234,098
5,154
148
3,712
1,179
10,193
-
-
7,382
7,382
5,544
1,002
6,546
866
934
-
1,800
260,019
2015 Annual Financial Report
Page 45
NOTES TO THE FINANCIAL STATEMENTS
6. INCOME TAX EXPENSE
(a) Income tax expense
Current tax
Deferred tax
Adjustments for current tax of prior periods
Income tax expense
(b) Numerical reconciliation of income tax expense to prima facie tax payable
Profit before income tax
Tax at the Australian tax rate of 30% (2014: 30%)
Tax effect of amounts which are not deductible (taxable) in calculating taxable income:
Share-based payments
Tax offset - Research and development
Trading stock
Recognition of deferred tax assets not recoverable in prior year
Sundry items
Research and development tax credit
Adjustments for current tax of prior periods
Income tax expense
7. TAX BALANCES
(a) Current tax asset/(liability)
Opening balance
Tax paid
Current tax
Adjustment for current tax on prior periods
Current tax asset/(liability)
(b) Deferred tax assets
The balance comprises temporary differences attributable to:
Employee benefits
Provisions
Accruals
Available-for-sale financial assets
Other
Total deferred tax assets
Set-off of deferred tax assets pursuant to set-off provisions
Net deferred tax asset
2015 Annual Financial Report
30 June 2015
$’000
30 June 2014
$’000
28,106
11,621
1,454
41,181
9,591
(652)
2,690
11,629
30 June 2015
$’000
30 June 2014
$’000
133,083
33,500
39,925
10,050
566
-
-
(630)
(134)
-
1,454
41,181
56
260
(1,803)
-
722
(346)
2,690
11,629
30 June 2015
$’000
30 June 2014
$’000
(5,228)
38,563
(28,106)
5,758
10,987
(4,621)
9,044
(9,591)
(60)
(5,228)
30 June 2015
$’000
30 June 2014
$’000
7,454
30,143
565
630
730
6,048
16,630
5,986
(19)
17
39,522
28,662
(39,522)
(28,662)
-
-
Page 46
NOTES TO THE FINANCIAL STATEMENTS
Movements
At July 2013
(Charged)/credited:
-
to profit or loss
- adjustments to prior year
At June 2014
(Charged)/credited:
-
to profit or loss
- adjustments to prior year
- acquisition of subsidiary
At 30 June 2015
Employee
benefits
Provisions
Investments
$’000
424
5,624
-
6,048
3,544
(5,633)
3,495
7,454
$’000
-
16,630
-
16,630
1,722
-
11,791
30,143
$’000
1,724
-
(1,743)
(19)
649
-
-
630
Other
$’000
929
5,074
-
6,003
(2,905)
(1,803)
-
1,295
Total
$’000
3,077
27,328
(1,743)
28,662
3,010
(7,436)
15,286
39,522
(c) Deferred tax liabilities
30 June 2015
30 June 2014
The balance comprises temporary differences attributable to:
Exploration and evaluation
Mine properties
Property plant and equipment
Inventories
Accrued income
Other
Total
Available-for-sale financial assets (recognised in equity)
Total deferred tax liabilities
Set off deferred tax assets pursuant to set-off provisions
Net deferred tax liabilities
Movements
At July 2013
Charged/(credited):
-
-
to profit or loss
to other comprehensive
income
At June 2014
Charged/(credited):
-
to profit or loss
- adjustments to prior year
- acquisition of subsidiary
-
to other comprehensive
income
Exploration &
evaluation
expenditure
$’000
-
Mine
properties
$’000
11,397
Property,
plant and
equipment
$’000
-
15,284
4,388
-
-
15,284
15,785
1,583
-
-
-
17,763
327
4,097
-
975
-
975
(6,793)
-
7,736
-
1,918
At 30 June 2015
16,867
37,972
$’000
16,867
37,972
1,918
9,139
-
-
65,896
1,239
67,135
(39,522)
27,613
Inventories
$’000
506
6,335
-
6,841
2,298
-
-
-
9,139
Other
$’000
-
458
123
581
(220)
(361)
-
1,239
1,239
$’000
15,284
15,785
975
6,841
426
32
39,343
123
39,466
(28,662)
10,804
Total
$’000
11,903
27,440
123
39,466
14,631
(34)
11,833
1,239
67,135
2015 Annual Financial Report
Page 47
NOTES TO THE FINANCIAL STATEMENTS
Tax Consolidation
The head entity, in conjunction with other members of the tax-consolidation Group, have entered into a tax funding
arrangement which sets out the funding obligations of members of the tax-consolidation Group in respect of tax amounts. The
tax funding arrangements require payments to/from the head entity equal to the current tax liability/ (asset) assumed by the
head entity and any tax-loss deferred tax asset assumed by the head entity, resulting in the head entity recognising an inter-
company receivable/(payable) equal in amount to the tax liability/ (asset) assumed. The inter-entity receivables/ (payable)
will be at call.
Contributions to fund the current tax liabilities are payable as per the tax funding arrangement and reflect the timing of the
head entity's obligation to make payments for the liabilities to the relevant tax authorities. The head entity in conjunction with
other members of the tax-consolidated group has also entered into a tax sharing arrangement. The tax sharing agreement will
provide for the determination of the allocation of income tax liabilities between the entities should the head entity default on
its tax payment obligations. No amounts have been recognised in the financial statements in respect of this agreement as
payment of any amounts under the tax sharing agreement is considered remote.
8. EARNINGS PER SHARE
Basic earnings per share (cents)
Diluted earnings per share (cents)
Profit used to calculate earnings per share ($'000)
Weighted average number of ordinary shares used as
denominator in calculating basic earnings per share
Adjustments for calculation of diluted earnings per share:
Options
Weighted average number of ordinary shares and potential ordinary
shares used as the denominator in calculating diluted earnings per
share
* Restated: refer note 1.
the
9. CASH AND CASH EQUIVALENTS
(a) Cash and cash equivalents
Cash at bank
Deposits at call
30 June 2015
30 June 2014*
15.5
15.5
4.5
4.5
91,902
21,871
591,015,696
481,545,715
2,956,815
1,791,666
593,972,511
483,337,381
30 June 2015
30 June 2014
$'000
$'000
165,143
2,300
167,443
80,887
1,500
82,387
The Group’s exposure to interest rate risk is discussed in Note 29. The maximum exposure to credit risk at the end of the
reporting period is the carrying amount of each class of cash and cash equivalents mentioned above.
Reconciliation of profit after tax to net cash inflow from operating activities
Profit for the period
Depreciation and amortisation
Share-based payments
Rehabilitation provision - unwinding of discount
Transaction costs written off
Exploration assets written off during the period
Loss from sale of non-current assets
2015 Annual Financial Report
91,902
165,487
2,186
4,564
1,290
8,573
2,537
21,871
47,604
1,179
-
-
5,544
-
Page 48
NOTES TO THE FINANCIAL STATEMENTS
Change in operating assets and liabilities during the period:
(Increase)/decrease in trade and other receivables
(Increase)/decrease in inventories
Increase in deferred taxes
Increase/(decrease) in trade and other payables
Increase in provisions
Increase/(decrease) in current tax liability/asset
Net cash inflow from operating activities
10. TRADE AND OTHER RECEIVABLES
Trade receivables
Sundry debtors
Goods and services tax recoverable
Prepayments
Other receivables
Fair value and risk exposure
1,712
14,184
19,022
55,577
8,379
(16,404)
359,009
(14,479)
6,308
1,977
(4,620)
14,068
607
80,059
30 June 2015
$'000
5,024
1,488
4,791
1,337
1,034
13,674
30 June 2014
$'000
2,945
7,874
2,406
11,225
440
24,890
(a) Due to the short term nature of these receivables, their carrying value is assumed to be the same as their fair value.
(b) Trade receivables are non-interest bearing and are generally on terms of 30 to 90 days. Refer to note 29 for analysis.
11. INVENTORIES
Consumables stores
Ore stockpiles
Gold in circuit
12. AVAILABLE-FOR-SALE FINANCIAL ASSETS
Investments in listed equity securities
Reconciliation of available for sale financial assets
Opening balance
Acquired as part of business combination (note 32)
Equity securities acquired for cash
Equity securities disposed for cash
Realised gain on sale
Impairment
Gain/(loss) recognised in other comprehensive income (note 20b)
30 June 2015
$'000
30 June 2014
$'000
30,462
22,064
18,456
70,982
22,802
17,240
23,061
63,104
30 June 2015
$'000
7,537
30 June 2014
$'000
2,906
2,906
-
500
-
-
-
4,131
7,537
2,224
1,295
-
(24)
3
(1,002)
410
2,906
2015 Annual Financial Report
Page 49
NOTES TO THE FINANCIAL STATEMENTS
13. PROPERTY, PLANT AND EQUIPMENT
Year ended 30 June 2014
Cost
Accumulated depreciation
Net book value
Year ended 30 June 2015
Cost
Accumulated depreciation
Net book value
Land &
buildings
$'000
10,138
(7,074)
3,064
Land &
buildings
$'000
12,808
(5,165)
7,643
Plant &
equipment
$'000
95,374
(41,060)
54,314
Plant &
equipment
$'000
141,924
(59,484)
82,440
Motor
vehicles
$'000
2,701
(1,715)
986
Motor
vehicles
$'000
5,027
(3,342)
1,685
Office
equipment
$'000
1,276
Capital work-
in Progress
$'000
1,612
Total
$'000
111,101
(613)
663
-
(50,462)
1,612
60,639
Office
equipment
$'000
1,861
Capital work-
in Progress
$'000
9,886
Total
$'000
171,506
(952)
909
-
(68,943)
9,886
102,563
Year ended 30 June 2014
Opening net book value
Additions
Acquired as part of business
combination (note 32)
Disposals
Transfers
Depreciation charge
Closing net book value
Year ended 30 June 2015
Opening net book value
Additions
Adjustments to provisional
business combination value
(note 32)
Acquired as part of
business combination (note
32)
Disposals
Transfers
Transfer to mine properties
Transfer from exploration
and evaluation
Depreciation charge
Closing net book value
Total
$'000
42,877
11,610
21,932
(528)
-
Land &
buildings
Plant &
equipment
Motor
vehicles
Office
equipment
Capital work-
in-progress
$'000
$'000
$'000
$'000
$'000
2,301
18
1,595
-
32
(882)
3,064
28,538
-
19,931
(528)
20,081
(13,708)
54,314
1,033
-
406
-
-
(453)
986
560
252
-
-
60
(209)
663
10,445
11,340
-
-
(20,173)
-
(15,252)
1,612
60,639
Land &
Buildings
Plant &
equipment
Motor
vehicles
Office
equipment
Capital work-
in-progress
$'000
$'000
$'000
$'000
$'000
Total
$'000
3,064
-
54,314
11,106
986
30
663
2
1,612
29,240
60,639
40,378
1,726
21,106
1,595
35
(841)
23,621
2,244
-
1,282
-
2,007
(2,680)
7,643
20,203
(3,797)
17,142
(145)
-
(37,489)
82,440
1,526
(178)
110
-
-
(2,384)
1,685
414
-
274
-
-
(479)
909
-
-
(18,808)
(1,317)
24,387
(3,975)
-
(1,462)
-
-
2,007
(43,032)
9,886
102,563
2015 Annual Financial Report
Page 50
NOTES TO THE FINANCIAL STATEMENTS
14. EXPLORATION AND EVALUATION ASSETS
Opening balance
Expenditure for the year
Acquired as part of asset acquisition (a)
Reclassification from other assets (note 32)
Acquired as part of business combination (note 32)
Transfer to property, plant and equipment (note 32)
Transfer to mine properties
Reclassification to mine properties (note 32)
Impairment
30 June 2015
30 June 2014
$'000
$'000
69,049
34,267
1,450
400
-
(2,007)
(8,255)
(29,707)
(8,573)
56,624
30,462
12,417
-
-
31,714
-
-
-
(5,544)
69,049
(a) On 18 March 2015 the Company acquired the Hermes gold deposit from Alchemy Resources Ltd for $1.45 million. The
tenement acquisition also included a farm-in and joint venture agreement with Alchemy covering additional tenements in the
Bryah Basin. The Company also invested $500,000 in return for 33.3 million fully paid ordinary shares in Alchemy Resources Ltd at
an issue price of $0.015 per share.
The ultimate recoupment of costs carried forward for exploration and evaluation expenditure is dependent on the successful
development and commercial exploitation, or alternatively, the sale of the respective area of interest.
During the year, the Group identified indicators of impairment on certain exploration and evaluation assets under AASB 6
Exploration for and Evaluation of Mineral Resources, including tenements where no further exploration activities were to be
performed, resulting in a $8.6 million impairment charge to profit or loss for the year ended 30 June 2015 (2014: $5.5 million).
15. MINE PROPERTIES
Opening balance
Expenditure for the year
Transfer from exploration and evaluation
Acquired as part of business combination (note 32)
Net transfer from property, plant and equipment
Adjustment to business combination provisional values (note 32) –
net of reclassification from exploration and evaluation
Amortisation
16. TRADE AND OTHER PAYABLES
Trade payables
Accruals
Other payables
30 June 2015
30 June 2014
$'000
90,197
91,308
8,255
96,731
1,462
(1,912)
(122,454)
163,587
$'000
8,813
26,336
-
87,399
-
-
(32,352)
90,197
30 June 2015
30 June 2014
$'000
44,985
37,923
10,119
93,027
$'000
11,365
20,027
6,057
37,449
Fair Value and Risk Exposures
(i) Due to the short term nature of these payables, their carrying value is assumed to be the same as their fair value.
(ii) Details regarding liquidity risk are disclosed in note 29.
(iii) Trade and other payables are unsecured and usually paid within 45 days of recognition.
2015 Annual Financial Report
Page 51
NOTES TO THE FINANCIAL STATEMENTS
17. BORROWINGS
(a) Current
Lease Liabilities
(b) Non-Current
Lease Liabilities
Total borrowings
Commitments:
Commitments in relation to hire purchase arrangements at the
end of the reporting period are payable as follows:
Within one year
Later than one year but not more than five years
Minimum lease payments
Future finance charges
Recognised as a liability
Risk Exposures
30 June 2015
30 June 2014
$'000
$'000
8,322
4,476
8,167
16,489
1,471
5,947
8,824
8,364
17,188
(699)
16,489
5,191
1,502
6,693
(746)
5,947
Details of the Group’s exposure to risks arising from financial liabilities are set out in note 29.
The Group has entered into various loan agreements for the purchase of plant and equipment. The interest rates are fixed and
are payable over a period of up to 36 months.
Financing Arrangements
The Group had an undrawn revolving credit facility at the end of the reporting period of $100 million.
18. PROVISIONS
(a) Current
Employee entitlements
Other
(b) Non-Current
Employee entitlements
Rehabilitation
Reconciliation of rehabilitation provision:
Opening balance
Increase during the year
Adjustment business combination provisional values (note 32)
Acquired as part of business combination (note 32)
Unwinding of discount
30 June 2015
30 June 2014
$'000
$'000
24,370
8,570
32,940
2,242
97,834
100,076
65,523
1,200
(3,837)
30,384
4,564
97,834
13,201
5,417
18,618
7,519
65,523
73,042
2,676
836
-
62,011
-
65,523
2015 Annual Financial Report
Page 52
NOTES TO THE FINANCIAL STATEMENTS
The Group makes full provision for the future costs of rehabilitating mine sites and related production facilities on a discounted
basis at the time of developing the mine and installing or using those facilities or upon the acquisition of mining operations. The
provision for rehabilitation represents the present value of rehabilitation costs relating to mine sites and production facilities
which are expected to be incurred over the mines life. These provisions have been created based on the Group’s internal
estimates and which have been subject to an independent review. Assumptions based on current economic environment
have been made, which management believes are a reasonable basis upon which to estimate the future liability. These
estimates are reviewed at least annually to take into account any material changes to the assumptions. However, actual
rehabilitation costs will ultimately depend upon future market prices for the necessary rehabilitation works required that will
reflect market conditions at the relevant time. Furthermore, the timing of rehabilitation at each mining operation is likely to
depend on when the operation ceases to produce at economically viable rates. This, in turn, will depend upon future gold
prices, which are inherently uncertain.
19. ISSUED CAPITAL
(a) Issued capital
Ordinary shares fully paid
(b) Movements in ordinary share capital
Opening balance 1 July 2013
Equity issue net of transaction costs
Exercise of options
Employee share scheme issues
Performance share plan issues
Balance at 30 June 2014
Equity issue net of transaction costs
Exercise of options
Employee share scheme issues
Performance share plan issues
Transfers to reserves
Balance at 30 June 2015
(i) Ordinary shares
Notes
30 June 2015
30 June 2014
(i)
592,928,376
579,404,804
(ii)
(iii)
(iii)
(iii)
(ii)
(iii)
(iii)
(iii)
Number of
Shares
424,279,762
149,833,510
1,094,600
106,932
4,090,000
$'000
66,765
125,568
1,391
84
-
579,404,804
193,808
7,854,843
10,000
236,258
392,496
5,039,975
-
592,928,376
443
980
-
(306)
204,925
Ordinary shares entitle the holder to participate in dividends, and to share in the proceeds of winding up the Company in
proportion to the number of and amounts paid on the shares held. On a show of hands every holder of ordinary shares present
at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote. Ordinary shares
have no par value.
(ii) Equity issue
In 2014, the Company issued a total of 149,833,510 fully paid ordinary shares, through three tranche placements, raising a total
of $125.6 million to fund the acquisition of a 51% share in the East Kundana Joint Venture and 100% of the Kanowna Belle gold
mine.
On 1 July 2014, the Company issued 7,854,843 fully paid ordinary shares at an issue price of $1.2731 per share in return for
waiving the right of first refusal to buy the Jundee gold mine.
(iii) Employee share based payment plans
Information relating to the employee share and option schemes and performance share plans, including details of shares and
options issued under the schemes, are set out in note 25.
(c) Capital Management
When managing capital, management’s objective is to ensure the entity continues as a going concern as well as to maintain
optimal returns to Shareholders and benefits for other stakeholders. Management also aims to maintain a capital structure that
ensures the lowest cost of capital. Management may in the future adjust the capital structure to take advantage of
favourable costs of capital and issue further shares in the market. Management has no current plans to adjust the capital
structure.
Total capital is equity as shown in the statement of financial position. The Group is not subject to any externally imposed
capital requirements.
2015 Annual Financial Report
Page 53
NOTES TO THE FINANCIAL STATEMENTS
20. RESERVES
(a) Share based payments
Opening balance
Transfer from issued capital
Options exercised
Share based payments expense
Performance Share Plan loan repayment
Balance at the end of the year
(b) Available for sale
Opening balance 1 July
Fair value revaluation
Deferred tax
Balance at the end of the year
Total reserves
(c) Nature and purpose of reserves:
30 June 2015
$'000
30 June 2014
$'000
395
306
(443)
1,206
317
1,781
287
4,131
(1,239)
3,179
4,960
691
-
(1,391)
1,095
-
395
-
410
(123)
287
682
Share based payments reserve
The share-based payments reserve is used to recognise:
Repayment of performance share loans.
The grant date fair value of options issued to employees but not exercised;
The grant date fair value of shares issued to employees; and
Available-for-sale reserve
The reserve is used to recognise changes in the fair value of available-for-sale financial assets. Changes in fair value of
investments classified as available-for-sale financial assets are recognised in other comprehensive income and accumulated
in a separate reserve within equity. Amounts are reclassified to profit or loss when the associated assets are sold or impaired.
21. RETAINED EARNINGS
Movements in retained earnings were as follows:
Opening balance at
Profit for the year
Dividends
Other
Balance at 30 June
* Restated: refer note 1.
22. DIVIDENDS
(a) Dividends paid during the financial year were as follows:
Final dividend for the year ended 30 June 2014 of 2.5 cents
(2013: 2.5 cents) per ordinary share
Interim dividend for the year ended 30 June 2015 of 2.0 cents
(2014: 1.0 cent) ordinary share
2015 Annual Financial Report
30 June 2015
$'000
30 June 2014*
$'000
47,994
42,879
91,902
(26,529)
-
113,367
21,871
(16,393)
(363)
47,994
30 June 2015
$'000
30 June 2014
$'000
14,686
10,607
11,843
26,529
5,786
16,393
Page 54
NOTES TO THE FINANCIAL STATEMENTS
Subsequent to year end, the Directors have recommended the payment of a final fully franked dividend for the year ended
30 June 2015 of 3 cents per ordinary share to be paid on 2 October 2015, a total estimated distribution of $18 million based on
the number of ordinary shares on issue as at 26 August 2015.
(b) Franked dividends:
The franked portions of the final dividends recommended after 30 June 2015 will be franked out of existing franking credits, or
out of franking credits arising from the payment of income tax in the year ended 30 June 2016.
Franking credits available for subsequent reporting periods based on a tax
rate of 30% (2014: 30%)
30 June 2015
$'000
30 June 2014
$'000
29,615
3,872
The above amounts are calculated from the balance of the franking account as at the end of the reporting period, adjusted
for franking credits and debits that will arise from the settlement of liabilities or receivables for income tax and dividends after
the end of the year.
23. INTEREST IN OTHER ENTITIES
(a) Subsidiaries:
Northern Star Mining Services Pty Ltd
Northern Star (Kanowna) Pty Ltd
Kundana Gold Pty Ltd
Gilt-Edged Mining Pty Ltd
EKJV Management Pty Ltd
Kanowna Mines Pty Ltd
GKL Properties Pty Ltd
Northern Star (Tanamai) Pty Ltd
Country of Incorporation
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
(b) Joint arrangements
Principal Activities 30 June 2015
30 June 2014
FMG JV
Hardey Junction JV
Mt Clement JV
East Kundana Production JV
Kanowna West JV
Kalbarra JV
West Kundana JV
Carbine East JV
Bryah Basin JV
Exploration
Exploration
Exploration
Exploration &
Development
Exploration
Exploration
Exploration
Exploration
Exploration
60%
80%
20%
51%
70.06%
62.34%
75.5%
95%
0%
25%
80%
20%
51%
60%
60%
75.5%
95%
-
The joint arrangements listed above are classified as joint operations and are not separate legal entities. They are contractual
arrangements between participants for the sharing of costs and outputs and do not themselves generate revenue and profit.
The joint operations are of the type where initially one party contributes tenements with the other party earning a specified
percentage by funding exploration activities; thereafter the parties often share exploration and development costs and
output in proportion to their ownership of joint venture assets. The joint operations are accounted for in accordance with the
Group's accounting policy set out in note 1.
2015 Annual Financial Report
Page 55
NOTES TO THE FINANCIAL STATEMENTS
24. COMMITMENTS AND CONTINGENT LIABILITIES
30 June 2015
30 June 2014
$'000
$'000
(a) Capital Commitments:
Contracted for at the end of the reporting date, but not recognised as liabilities.
Within one year
6,481
1,082
(b) Non-cancellable operating lease
The Company leases its corporate office under an operating lease, expiring within 2 years.
The lease commenced 20 October 2014, with the end date being 9 June 2017. Lease
payments are increased every year to reflect market rentals.
Within one year
Later than one year but not more than five years
1,056
1,042
2,098
298
-
298
(c) Gold Delivery Commitments
Within one year
Gold for Physical
delivery
(Ounces)
90,000
Weighted
Average
Contracted
Sales Price
(A$)
1,435
Value of
Committed Sales
($’000)
129,197
Contracts are accounted for as sale contracts with revenue recognised once gold has been physically delivered. The physical
gold delivery contracts are considered a contract to sell a non-financial item and therefore do not fall within the scope of AASB
139 Financial Instruments: Recognition and Measurement.
25. SHARE BASED PAYMENTS
(a) Employee Share Option Plan
The Northern Star Resources Ltd Employee Option Plan is designed to provide long-term incentives for senior managers and
executives to deliver long-term shareholder returns. Under the plan, participants are granted options which only vest if certain
performance standards are met. Participation in the plan is at the Board’s discretion and no individual has a contractual right
to participate in the plan or to receive any guaranteed benefits.
Options are granted under the plan for no consideration and carry no dividend or voting rights.
The exercise price of the options is based on the weighted average price at which the Company's shares are traded on the
Australian Securities Exchange (ASX) during the week up to and including the date of grant.
Set out below are the summaries of options granted under the plan:
2015
2014
Average exercise price
per share options
Number of options
Average exercise price
per share options
Number of options
As at 1 July
Granted during the year
Exercised during the year
As at 30 June
1.26
1.28
1.29
1.17
1,791,666
2,706,815
(1,541,666)
2,956,815
1.17
-
1.02
1.26
5,000,000
-
(3,208,334)
1,791,666
Share options outstanding at the end of the year have the following expiry dates and exercise price:
Employee Options
Employee Options
Number
250,000
2,706,815
Exercise price
Expiry date
$1.0500
$1.2804
Expiring on 15 April 2016
Expiring on 31 July 2017
The assessed fair value at grant date of options granted during the year ended 30 June 2015 was $0.25 per option (2014: no
options were granted under the Employee Share Option Plan). The fair value at grant date is independently determined using a
2015 Annual Financial Report
Page 56
NOTES TO THE FINANCIAL STATEMENTS
Monte Carlo simulation model (market based vesting conditions) and a Black Scholes Model (non-market vesting conditions)
that takes into account the exercise price, the term of the options, the impact of dilution (where material), the share price at
grant date and expected price volatility of the underlying option, the expected dividend yield, the risk free rate for the term of
the options and the correlations and volatilities of the peer group companies.
The model inputs for options granted during the year ended 30 June 2015 included:
(a) Options are granted for no consideration and vest based on the Company’s total shareholder returns (“TSR”) ranking within
a selected peer group of companies over a three year period.
(b) exercise price : $1.2804
(c) grant date: 14 November 2014
(d) expiry date: 31 July 2017
(e) share price at grant date: 1.08
(f) expected volatility of the Company’s shares: 58%
(g) expected dividend yield: 3.24%
(h) risk-free interest rate: 2.62%
The expected price volatility is based on the historic volatility (based on the remaining life of the options), adjusted for any
expected chanced to future volatility due to publicly available information.
(b) Employee Share Plan
An employee incentive scheme has been established by the Company to provide eligible employees with a potential
ownership interest in the Company for the purpose of:
providing them with an opportunity to share in the growth in value of the Company,
encouraging them to improve the longer-term performance of the Company and its returns to Shareholders, and
assisting in the attraction, reward and retention of employees of the Company and its subsidiaries.
These shares are granted at the discretion of the Board, who may take into account skills, experience, length of service with the
Company, remuneration level and such other criteria as considered appropriate. Shares issued pursuant to the scheme are
issued free of charge.
Under the scheme, eligible employees may be granted up to $1,000 worth of fully paid ordinary shares in the Company
annually for no cash consideration. The number of shares issued to participants in the scheme is the offer amount divided by
the weighted average price at which the Company’s shares are traded on the ASX during the week up to and including the
date of grant. The fair value of shares issued during the year was $2.26 (2014: $0.78) per share.
Offers under the scheme are made in accordance with the Company’s 2011 Employee Share Plan and the shares issued to
acceptors will be escrowed for three years from the date of issue (or date of termination of employment of the individual,
whichever comes first). In all other respects the shares rank equally with other fully-paid ordinary shares on issue.
Employee share scheme shares granted as share based payments:
Grant Date
2015
27/5/2015
2014
30/1/2014
(c) Performance Share Plan
Balance at start
of the year
Granted during
the year
Balance at the
end of the year
236,511
129,579
392,496
106,932
629,007
236,511
The establishment of the Northern Star Limited Performance Share Plan was approved by Shareholders at the November 2013
annual general meeting. The Performance Share Plan is designed to provide long-term incentives for senior managers and
executives to deliver long-term shareholder returns. Under the rules of the plan, participants are provided a limited recourse
loan to fund the shares granted which only vest if certain performance standards are met. Participation in the plan is at the
Board’s discretion and no individual has a contractual right to participate in the plan or to receive any guaranteed benefits.
The amounts of shares that will vest depends on Company’s TSR, including share price growth, dividends and capital returns,
raking with peer group companies that are listed on the ASX over a three year period.
On 9 October 2014, 4,827,058 performance shares were issued to Key Management Personnel (“KMP”) and other personnel of
the Company at an issue price of $1.1874 per share. Corresponding limited recourse loans totalling $5,731,648 were entered
into in accordance with the rules of the plan. As at 30 June 2015, the limited recourse loans in respect of the performance
shares issued on 9 October 2014 totalled $5,635,107.
On 30 March 2015, 212,917 performance shares were issued to an employee of the Company at an issue price of $2.4549per
share. Corresponding limited recourse loan totalling $522,690 was entered into in accordance with the rules of the plan. As at
30 June 2015, the limited recourse loan in respect of the performance shares totalled $518,432.
In the prior year, on 20 November 2013, 4,090,000 performance shares were issued to KMP’s and other personnel of the
Company at an issue price of $0.7304. Corresponding limited recourse loans totalling $2,987,336 were entered into in
accordance with the rules of the plan. During the year ended 30 June 2015, 125,000 performance shares that were issued in
2015 Annual Financial Report
Page 57
NOTES TO THE FINANCIAL STATEMENTS
2014 were cancelled. As at 30 June 2015, the limited recourse loans in respect of the performance shares issued on 20
November 2013 totalled $2,683,710.
The loans offered are limited recourse and are secured against the performance shares held by the relevant participants. The
Board may, at its discretion, agree to forgive a loan offered to a participant.
The assessed fair value at grant date of the performance shares granted during the year ended 30 June 2015 were as follows:
October 2014: $0.37
30 March 2015: $0.57
(2014: 20 November 2013: $0.20)
The fair value at grant date is independently determined using a Monte Carlo simulation model (market based vesting
conditions) and a Black Scholes Model (non-market vesting conditions) that takes into account the exercise price, the term of
the performance share, the impact of dilution (where material), the share price at grant date and expected price volatility of
the underlying share, the expected dividend yield, the risk free rate for the term of the performance share and the correlations
and volatilities of the peer group companies.
The model inputs for performance shares granted during the year ended 30 June 2015 included:
(a) exercise price
(b) grant date
(c) expiry date
(d) share price at grant date
(e) expected volatility of the company’s shares
(f) expected dividend yield
(g) risk-free interest rate
9 October 2014
30 March 2015
(2014: 20 November 2013)
$1.1874
9 October 2014
30 June 2017
$1.245
60%
2.81%
2.63%
$2.4549
30 March 2015
30 June 2017
$2.26
65%
2.21%
1.73%
$0.7304
20 November 2013
30 June 2016
$0.71
65%
4.93%
3.06%
The expected price volatility is based on the historic volatility (based on the remaining life of the performance share).
Total performance shares on issued at 30 June 2015 is 9,004,975 (2014: 4,090,000), with a corresponding total non-recourse loan
value of $8,837,249 (2014: 2,946,436).
26. RELATED PARTY TRANSACTIONS
(a) Compensation of key management personnel
Short-term employee benefits
Employee entitlements
Post-employment benefits
Share based payments
Termination payment
30 June 2015
30 June 2014
$'000
2,068
150
102
584
277
$'000
1,608
47
94
767
-
3,181
2,516
(b) Transactions with related party entities:
The Company has in place policies and procedures which govern transactions involving KMPs or related parties, and these
policies and procedures restrict the involvement of the KMP or related party in the negotiation, awarding or direct
management of the resultant contract. The following services were provided on market competitive rates.
John Fitzgerald is a Director, and:
(a) is a board member and has a beneficial interest in a shareholding in Optimum Capital Pty Ltd. During the year, a revenue
amount of $10,000 was paid to Optimum Capital Pty Ltd for consulting services provided at normal commercial rates (2014:
Nil);
Bill Beament is a Director, and:
(a) has a minor beneficial interest in a shareholding of Australian Underground Drilling Pty Ltd (and is a former Director who
resigned in June 2014). During the year a revenue amount of $6,952,574 was paid to this business for drilling services at
normal commercial rates (2014: $7,397,675);
(b) has a minor beneficial interest in a shareholding in Premium Mining Personnel Pty Ltd. During the year, a revenue amount of
$3,979,135 was paid to this business for supplying specialist mining labour at commercial rates (2014: $6,202,673); and
(c) is the sole director and has a beneficial interest in a shareholding in Mining & Infrastructure Group Pty Ltd. During the year no
amounts were paid to this business (2014: $7,100).
2015 Annual Financial Report
Page 58
NOTES TO THE FINANCIAL STATEMENTS
(c) Outstanding balances arising from sales/purchases of goods and services
The following balances are outstanding at the end of the reporting period in relation to transactions with related parties:
2015
$000's
-
727
2014
$000's
57
1,193
Assets
Trade Receivables
Liabilities
Trade Payables
27. AUDITOR'S REMUNERATION
During the year the following fees were paid or payable for services provided by the
auditor of the parent entity, its related practices and non-related audit firms:
30 June 2015
30 June 2014
$
$
(a) Deloitte Touche Tohmatsu
(i) Audit or review of financial statements
(ii) Other assurance services
Total remuneration for audit and other assurance services
(iii) Tax compliance services
Total remuneration for taxation services
(b) Non Deloitte Touche Tohmatsu audit firms
Audit and review of financial statements
Total remuneration of non-Deloitte Touch Tohmatsu audit firms
203,600
15,540
219,140
8,400
8,400
95,000
-
95,000
-
-
-
-
128,000
128,000
Total Auditors remuneration
227,540
223,000
The auditors of the Company for the year ended 30 June 2014 was Rothsay Chartered Accountants. The auditors of the
Company for the year ended 30 June 2015 was Deloitte Touche Tohmatsu.
28. SEGMENT INFORMATION
Management has determined the operating segments based on the reports reviewed by the Board that are used to make
strategic decisions. The Group operates in only one geographic segment (i.e. WA, Australia) and has identified 6 reportable
operating segments as listed below.
The Group's reportable operating segments are:
1. Paulsens, WA Australia
2. Plutonic, WA Australia
3. Kundana, WA Australia
4. Kanowna, WA Australia
5. Jundee, WA Australia (acquired 1 July 2014)
6. Exploration
Exploration (6. above) mainly compromise projects in the exploration, evaluation and feasibility phase. These include the
Ashburton gold project, Fortescue JV project and ongoing regional exploration surrounding the Group’s respective sites.
All revenue derived by the Group is received from one customer, being the Perth Mint. The General Manager of the
respective mine is responsible for budgets and expenditure of the operations, which includes exploration activities on the
mine's tenure.
The Group's Chief Geological Officer is responsible for budgets and expenditure relating to the Group's exploration and
feasibility studies. These exploration divisions do not ordinarily derive any income. Once a project generated by the
exploration division enters the production phase and commences generating income, that operation would then be
disaggregated from exploration and become reportable as a separate segment.
2015 Annual Financial Report
Page 59
NOTES TO THE FINANCIAL STATEMENTS
30 June 2015
Paulsens
Plutonic
Kundana
Kanowna
Belle
Jundee Exploration
$000's
$000's
$000's
$000's
$000's
$000's
Total
$000's
Sales to external
customers
Total Segment revenue
Segment net operating
profit (loss) before
income tax
113,936
113,936
117,502
117,502
148,734
148,734
140,283
140,283
325,198
325,198
-
-
845,653
845,653
13,059
(21,033)
71,719
35,175
86,944
(8,573)
177,291
Segment Assets
Segment Liabilities
62,336
(7,577)
56,751
59,835
56,249
118,644
56,624
410,439
(40,703)
(11,367)
(58,583)
(68,234)
Depreciation and
amortisation
Impairment loss
Other non-cash
expenses
(24,072)
(27,065)
(27,609)
(17,316)
(69,194)
-
-
-
-
-
(8,573)
(8,573)
(294)
(1,453)
3,247
(737)
3,256
-
4,019
-
-
(186,464)
(165,256)
(i) Reconciliation of segment net profit before tax to operating profit before tax
Segment profit before tax
Other income
Share-based payments
Acquisition costs
Corporate and technical services
Finance costs
Total net profit before tax
(ii) Operating segment assets reconciliation to the statement of financial position
Total assets for reportable segments
Unallocated assets
Available-for-sale financial assets
Cash and receivables
Sundry debtors
Current tax asset
Total assets per the statement of financial position
(iii) Operating segment liabilities reconciliation to the statement of financial position
Total liabilities for reportable segments
Unallocated liabilities
Deferred tax liabilities (net)
Creditors and accruals
Provision for employee benefits
Other provisions
Borrowings
Total liabilities per the statement of financial position
2015 Annual Financial Report
$'000
177,291
1,158
(2,186)
(12,757)
(21,325)
(9,098)
133,083
$'000
410,439
7,537
161,624
2,810
10,987
593,397
$'000
(186,464)
(27,613)
(4,398)
(26,612)
(8,570)
(16,488)
(270,145)
Page 60
NOTES TO THE FINANCIAL STATEMENTS
30 June 2014
Paulsens
Plutonic
Kundana
Kanowna
Belle
Jundee Exploration
$'000
$'000
$'000
$'000
$'000
$'000
Total
$'000
Sales to external
customers
Total Segment revenue
Segment net operating
profit (loss) before
income tax
143,040
143,040
56,963
56,963
41,120
41,120
55,853
55,853
35,408
584
13,690
5,030
Segment Assets
Segment Liabilities
72,539
(5,426)
58,427
63,607
85,393
(23,430)
(25,233)
(37,941)
Depreciation and
amortisation
Impairment loss
Other non-cash
expenses
(29,715)
(10,577)
(3,511)
(3,801)
-
-
975
1,041
-
-
-
1,240
(i) Reconciliation of segment net profit before tax to operating profit before tax
-
-
-
-
-
-
-
-
-
-
296,976
296,976
(5,742)
48,970
69,049
349,015
-
-
(92,030)
(47,604)
(6,546)
(6,546)
-
3,256
Segment profit before tax
Other income
Available-for-sale financial assets
Share-based payments
Acquisition costs
Corporate and technical services
Total net profit before tax
(ii) Operating segment assets reconciliation to the statement of financial position
Total assets for reportable segments
Unallocated assets
Available-for-sale financial assets
Cash and receivables
Total assets per the statement of financial position
(iii) Operating segment liabilities reconciliation to the statement of financial position
Total liabilities for reportable segments
Unallocated liabilities
Deferred tax liabilities (net)
Creditors and accruals
Provision for employee benefits
Current tax liabilities
Other provisions
Borrowings
Total liabilities per the statement financial position
$'000
48,970
3,788
(1,002)
(1,179)
(7,382)
(9,695)
33,500
$'000
349,015
2,906
41,651
393,572
$'000
(92,030)
(10,804)
(10,680)
(20,720)
(5,490)
(5,417)
(5,947)
(151,088)
2015 Annual Financial Report
Page 61
NOTES TO THE FINANCIAL STATEMENTS
29. FINANCIAL RISK MANAGEMENT
The Group's activities expose it to a variety of financial risks: market risk (interest rate and price risk), credit risk and liquidity risk.
This note provides information about the Group's exposure to each of these risks and its objectives, policies and processes for
measuring and managing financial risks.
The Board has the overall responsibility for the establishment and oversight of the risk management framework. The Audit and
Risk Management Committee is responsible for developing and monitoring risk management policies. The Committee reports
regularly to the Board on its activities.
Risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits
and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to
reflect changes in market conditions and the Group’s activities. The Group, through its training and management standards
and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their
roles and obligations.
The Group’s Audit and Risk Management Committee oversees how management monitors compliance with the Group’s risk
management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks
faced by the Group.
The Group holds the following financial instruments:
Financial assets
Cash and cash equivalents
Trade and other receivables (note 10)
Available for sale financial asset
Financial liabilities
Trade payables
Borrowings
Refer to note 17 for details of undrawn credit facility.
(a) Market Risk
(i) Interest rate risk
30 June 2015
$'000
30 June 2014
$'000
167,443
12,337
7,537
187,317
93,027
16,489
109,516
82,387
13,665
2,906
98,958
37,449
5,948
43,397
At reporting date the Group has minimal exposure to interest rate risk. The Group’s borrowings relate to the purchases of plant
and equipment which have fixed interest rates over their terms.
(a) Liquidity risk
The Group manages liquidity risk by monitoring immediate and forecasted cash requirements and ensures adequate cash
reserves are maintained to pay debts as and when due. Additionally, the Company has access to a $100 million revolving
credit facility which remains undrawn at the end of the reporting period. A maturity analysis of financial liabilities is disclosed in
the table below.
30 June 2015
Trade and other payables
Borrowings
Weighted Average
Effective Interest Rate
%
-
4.33%
1-6 months 6-12 months
$'000
-
3,956
$'000
93,027
4,868
1-2 years
$'000
-
6,844
30 June 2014
Trade and other payables
Borrowings
Weighted Average
Effective Interest Rate
%
-
5.81%
1-6 months 6-12 months
$'000
-
2,352
$'000
37,449
2,839
1-2 years
$'000
-
1,409
2 or more
years
$'000
-
1,520
2 or more
years
$'000
-
93
Total
$'000
93,027
17,188
Total
$'000
37,449
6,693
(b) Foreign currency risk
At reporting date the Group has minimal exposure to foreign currency risk. The Group’s operations are all located within
Australia and material expenses and revenues are denominated in Australian Dollars, the Company’s functional currency.
2015 Annual Financial Report
Page 62
NOTES TO THE FINANCIAL STATEMENTS
(c) Commodity price risk
The Group is exposed to the risk of fluctuations in the prevailing market prices on the gold and silver currently produced from
its operating mines.
Based upon sensitivity analysis, a movement in the average spot price of gold during the year of +/-AUD$100 per ounce would
have increased/ (decreased) after tax profit by $32,759,815/ ($32,759,815) respectively.
The Group manages this risk through the use of gold forward contracts. These contracts are accounted for as sale contracts
with revenue recognised once gold has been physically delivered into the contract. The physical gold delivery contracts are
considered a contract to sell a non-financial item and therefore do not fall within the scope of AASB 139 Financial Instruments:
Recognition and Measurement. As at reporting date the Group has contractual sale commitments of 90,000 ounces of gold
at an average price of A$1,435 per ounce (2014: A$1,441 per ounce).
(d) Credit risk
Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Group.
The Group has adopted the policy of dealing with creditworthy counterparties and obtaining sufficient collateral or other
security where appropriate, as a means of mitigating the risk of financial loss from defaults. Cash is deposited only with
institutions with a minimum credit rating of AA- (or equivalent) as determined by a reputable credit rating agency e.g.
Standard & Poor’s. The Group has all cash deposited with one bank. The Group sells the majority of its gold and silver to a
single counterparty with settlement terms of no more than 2 days. The counterparty has an AA+ long term rating and AAA
short term rating. The Group does not have any other significant credit risk exposure to a single counterparty or any group of
counterparties having similar characteristics.
The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to external credit
ratings (if available) or to historical information about counterparty default rates.
The Group measures credit risk on a fair value basis. The carrying amount of financial assets recorded in the financial
statements, net of any provision for losses, represents the Group’s maximum exposure to credit risk.
As at 30 June 2015, the analysis of trade receivables that were past due, but not impaired, is, as follows:
30 June 2015
30 June 2014
Total
$’000
5,024
2,945
0-30 Days
$’000
4,523
2,823
31-60 Days
$’000
252
49
61-90 Days
$’000
207
5
Past Due
Not impaired
+91 Days
$’000
42
68
Impaired
+91 days
$’000
-
In determining the recoverability of trade and other receivables, the Group performs a risk analysis considering the type
and age of the outstanding receivable and the creditworthiness of the counterparty.
(e) Net fair values
The net fair values of financial assets and financial liabilities at the reporting date are as follows:
Financial Assets
Cash and cash equivalents
Trade and other receivables
Available for sale financial assets
Total Financial Assets
Financial Liabilities
Trade Payables
Borrowings
Total Financial Liabilities
Carrying amount
Fair value
2015
$'000
167,443
13,674
7,537
188,654
93,027
16,489
109,516
2014
$'000
82,387
24,890
2,906
110,183
37,449
5,948
43,397
2015
$'000
167,443
13,674
7,537
188,654
93,026
17,188
110,214
2014
$'000
82,387
24,890
2,906
110,183
37,449
6,693
44,142
As at 30 June 2015, the Group’s level 1 financial instruments comprise available-for-sale equity securities of $7.5 million (2014:
$2.9 million). The Group’s available-for-sale equity securities are traded in an active market and their fair values are based
upon quoted market prices at the end of the reporting period. The quoted market price is the quoted bid prices that are
included in level 1.
2015 Annual Financial Report
Page 63
NOTES TO THE FINANCIAL STATEMENTS
30. PARENT ENTITY INFORMATION
(a) Information relating to Northern Star Resources Limited:
Results of the parent entity
Profit/(loss) for the period
Other comprehensive income*
Total comprehensive income for the year
Financial position
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net Assets
Contributed equity
Reserves
Retained earnings
Total equity
* Restated: refer note 1.
Parent Entity
30 June 2015
$'000
30 June 2014*
$'000
(8,107)
2,892
(5,215)
188,595
248,286
436,881
76,089
158,477
234,566
2,591
287
2,878
151,451
130,182
281,633
29,864
28,489
58,353
202,315
223,280
204,925
4,960
(7,570)
202,315
193,808
682
28.790
223,280
(a) Details of any guarantees entered into by the parent entity in relation to the debts of its subsidiary
Refer to note 31.
(b) Details of any contingent liabilities of the parent entity
The parent entity did not have any contingent liabilities as at 30 June 2015 or 30 June 2014.
(c) Details of any contractual commitments by the parent entity for the acquisition of plant, and equipment
There are no contractual commitments by the parent entity for the acquisition of property, plant and equipment as at
reporting date.
(d)
Tax Consolidation
The Company and its 100% owned controlled entities have formed a tax consolidated group. Members of the Group
entered into a tax sharing arrangement in order to allocate income tax expense to the wholly owned controlled entities.
The head entity of the consolidated Group is Northern Star Resources Limited.
31. DEED OF CROSS GUARANTEE
Northern Star Resources Limited and the following entities are parties to a deed of cross guarantee under which each
company guarantees the debts of the others:
Closed Group:
Northern Star Mining Services Pty Limited;
Northern Star (Kanowna) Pty Limited;
Kanowna Mines Pty Limited; and
Gilt-Edged Mining Pty Limited.
Extended Closed Group:
GKL Properties Pty Limited;
Kundana Gold Pty Limited; and
EKJV Management Pty Limited.
By entering into a deed, the wholly-owned entities have been relieved from the requirement to prepare a financial report and
directors’ report under Class Order 98/1418 (as amended) issued by the Australian Securities and Investments Commission.
The above companies represent an ‘extended closed group’ for the purposes of the Class Order, which represent the entities
who are parties to the deed of cross guarantee and which are controlled by Northern Star Resources Limited.
The consolidated statement of profit or loss and other comprehensive income and statement of financial position for the
closed Group is materially consistent with those of the consolidated entity.
2015 Annual Financial Report
Page 64
NOTES TO THE FINANCIAL STATEMENTS
32. BUSINESS COMBINATION
(a) Plutonic Gold Mine
On 1 February 2014, the Company completed a Sale and Purchase Agreement with Barrick Gold Corporation to purchase the
Plutonic gold mine which was initially provisionally accounted for in the consolidated financial statements for the year ended
30 June 2014. An independent appraisal of the assets and liabilities was commissioned and completed during the year ended
30 June 2015. Details of the changes to assets and liabilities and the impact of the change in provisional amounts reported in
the current year are illustrated below:
Purchase Consideration
Cash Paid
Assets and Liabilities recognised as a result of acquisition:
Current Assets
Inventories
Other
Non-Current Assets
Available for sale financial assets
Property, plant and equipment
Exploration and evaluation assets
Mine properties
Total Assets
Current Liabilities
Trade and other payables
Provisions
Non-Current Liabilities
Provision - rehabilitation
Total Non-Current Liabilities
Total Liabilities
Net identifiable assets acquired
$’000
25,000
Provisional Fair Value Final Fair Value
$’000
$’000
13,007
400
13,407
100
7,282
1,500
38,728
47,610
13,007
-
13,007
89
18,422
400
30,554
49,465
61,017
62,472
10,040
7,128
17,168
18,849
18,849
8,751
7,128
15,879
21,593
21,593
36,017
37,472
25,000
25,000
The adjustment to the provisional fair values to reflect the final fair values of assets and liabilities acquired in respect of the
Plutonic gold mine acquisition were finalised in the period ended 30 June 2015. The effect of these adjustments on the
performance of the year ended 30 June 2015 has been a decrease in net profit after tax of $1.5 million.
(b) Kanowna Belle & East Kundana Joint Venture
On 1 March 2014, the Company completed the acquisition of Barrick Gold Corporation's 100% owned Kanowna Belle gold
mine and production facilities and 51% interest in the East Kundana Joint Venture which was initially provisionally accounted
for in the consolidated financial statements for the year ended 30 June 2014. An independent appraisal of the assets and
liabilities was commissioned and completed during the year ended 30 June 2015. Details of the changes to assets and
liabilities and the impact of the change in provisional amounts reported in the current year are illustrated below:
Purchase Consideration
Cash Paid
2015 Annual Financial Report
$’000
75,000
Page 65
NOTES TO THE FINANCIAL STATEMENTS
Assets and Liabilities recognised as a result of acquisition:
Current Assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other assets
Non-Current Assets
Available-for-sale financial assets
Property, plant and equipment
Exploration and evaluation assets
Mine properties
Deferred tax asset
Total Assets
Current Liabilities
Trade and other payables
Provisions
Total Current Liabilities
Non-Current Liabilities
Provision - rehabilitation
Total Liabilities
Net identifiable assets acquired
Provisional Fair Value Final Fair Value
$’000
$’000
1,627
9,406
42,133
1,866
55,032
1,195
14,650
30,214
48,671
-
94,730
1,627
9,406
41,560
-
52,593
1,195
29,133
-
54,933
3,453
88,714
149,762
141,307
19,952
11,648
31,600
43,162
43,162
18,078
11,648
29,726
36,581
36,581
74,762
66,307
75,000
75,000
The adjustment to the provisional fair values to reflect the final fair values of assets and liabilities acquired in respect of the
Kanowna Belle & East Kundana Joint Venture acquisition were finalised in the period ended 30 June 2015. The effect of these
adjustments on the performance of the year ended 30 June 2015 has been an increase in net profit after tax of $0.4 million.
Cash flows
Purchase consideration – cash outflow
Outflow of cash to acquire subsidiary, net of cash acquired
Cash consideration
Less: Cash balance acquired
Net outflow from investing activities
$’000
75,000
(1,627)
73,373
(c) Jundee Gold Mine
On 1 July 2014, Northern Star completed the acquisition of the Jundee gold mine from Newmont Mining Corporation. The total
cash consideration paid by Northern Star was $99.7 million, of which $9.0 million was paid during the period ended 30 June
2014. Details of the fair value of assets and liabilities recognised as a results of the acquisition are as follows:
Purchase Consideration
Cash Paid
Assets and Liabilities recognised as a result of acquisition:
Current Assets
Inventories
2015 Annual Financial Report
$’000
99,729
Final Fair Value
$’000
22,150
22,150
Page 66
NOTES TO THE FINANCIAL STATEMENTS
Non-Current Assets
Property, plant and equipment
Mine properties
Total Assets
Current Liabilities
Employee entitlements
Non-Current Liabilities
Employee entitlements
Provisions - rehabilitation
Total Liabilities
Net identifiable assets acquired
Less: gain on bargain purchase
24,387
96,731
121,118
143,268
2,353
2,353
802
30,384
31,186
35,539
109,729
(10,000)
99.729
Acquisition related costs of $12.8 million and shares issued to the value of $10 million to a third party to waive their pre-emptive
right have been excluded from the consideration transferred and have been recognised as an expense in the statement of
profit or loss and other comprehensive income for the year ended 30 June 2015. The bargain purchase arose as a result of the
vendor making a strategic decision to reduce their presence in the Australian market as part of a review of their global
operations.
Details of the financial impact of the acquisition of the Jundee gold mine on the financial year ended 30 June 2015 are
disclosed in note 28.
33. EVENTS SUBSEQUENT TO YEAR END
Subsequent to the period end, the Company announced:
a final dividend of 3 cents per share to Shareholders on the record date of 14 September 2015, payable on 2 October
2015; and
the completed settlement of the agreement with Tanami Gold under which Northern Star can progressively acquire 60%
joint venture interest in 2.7 million-ounce Central Tanami Project. Settlement occurred on 31 July 2015 following a payment
of A$20 million by Northern Star to Tanami Gold NL. This comprised a cash payment of A$11 million and the issue of 4.29
million Northern Star shares which have a A$9 million based on their five-day volume weighted average prior to the ASX
announcement of the deal on 26 February 2015. As a result of the payment Northern Star now has a 25% interest in the
Central Tanami Project.
There are no other matters or circumstances that have arisen since 30 June 2015 that have or may significantly affect the
operations, results, or state of affairs of the group in future financial years.
2015 Annual Financial Report
Page 67
DIRECTORS’ DECLARATION
In the Directors’ opinion:
1.
(a)
the financial statements and notes set out on pages 30 to 67 are in accordance with the Corporations Act
2001, including:
i.
ii.
complying with Accounting Standards, the Corporations Regulations 2001and other mandatory
professional reporting requirements, and
giving a true and fair view of the consolidated entity’s financial position as at 30 June 2015 and of its
performance for the financial year ended on that date; and
(b)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable; and
(c) at the date of this declaration, there are reasonable grounds to believe that the members of the extended
closed group identified in note 31 will be able to meet any obligations or liabilities to which they are, or may
become, subject by virtue of the deed of cross guarantee described in note 31.
Note 1 confirms that the financial statements also comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board.
The Directors have been given the declarations by the Managing Director and Chief Financial Officer required by
section 295A of the Corporations Act 2001.
This declaration is made with a resolution of the Directors.
BILL BEAMENT
Managing Director
Perth, Western Australia
26 August 2015
2015 Annual Financial Report
Page 68
INDEPENDENT AUDITOR’S REPORT
2015 Annual Financial Report
Page 69
INDEPENDENT AUDITOR’S REPORT
2015 Annual Financial Report
Page 70
ADDITIONAL INFORMATION
The following additional information required by the ASX Listing Rules is current as at 25 August 2015.
EQUITY SECURITIES HOLDER INFORMATION
Ordinary Shares
600,029,557 quoted fully paid ordinary shares (NST). All ordinary shares carry one vote per share.
Distribution of Fully Paid Ordinary Shares
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,000+
Total Holders
No of Holders
2,600
3,105
1,448
2,195
295
9,643
No of Shares
1,368,996
9,077,197
11,675,340
64,184,196
513,723,828
600,029,557
% of Issued Capital
0.228
1.513
1.946
10.697
85.616
100.000
395 Shareholders held less than a marketable parcel (<$500) of ordinary fully paid shares based on the current market price
($1.910).
Twenty Largest Holders of Ordinary Fully Paid Shares
National Nominees Limited
HSBC Custody Nominees (Australia) Limited
J P Morgan Nominees Australia Limited
Citicorp Nominees Pty Limited
1.
2.
3.
4.
5. Mr William James Beament
6.
7.
8.
9.
BNP Paribas Nominees Pty Ltd
AMP Life Limited
National Nominees Limited
Tanami (NT) Pty Ltd
10. Wyllie Group Pty Ltd
11. William James Beament
12.
13. Mr Hendrius Petrus Indrisie
14.
15. Gunz Pty Ltd
16.
17.
18.
19. Mr Christopher Kenneth George Rowe
20. Mrs Catherine Anne Wilkinson
Leefab Pty Ltd
Stuart Peter Tonkin
Leejames Nominees Pty Ltd
Perth Select Seafoods Pty Ltd
RBC Investor Services Australia Nominees Pty Limited
TOTAL
Options
No of Shares
160,710,341
121,729,518
63,535,828
26,893,283
12,637,709
11,635,781
7,344,319
5,332,976
4,290,228
3,566,852
2,952,003
2,168,151
2,011,628
2,000,000
1,991,022
1,802,655
1,636,628
1,600,000
1,500,000
1,415,000
436,753,922
% Issued Capital
26,784
20.287
10.589
4.482
2.106
1.939
1.224
0.889
0.715
0.594
0.492
0.361
0.335
0.333
0.332
0.300
0.273
0.267
0.250
0.236
72,789
4,276,094 unlisted options with various exercise prices and expiry dates (refer table below). Options do not carry a right to
vote. Voting rights will be attached to the unissued shares when the options have been exercised.
Expiry Date
15/4/2016
31/7/2017
31/7/2018
No of Options
250,000
2,706,815
1,319,279
Exercise Price
$1.05
$1.2804
$2.1818
No of Holders
1
31
35
Holding >20%
Issued under employee incentive scheme
Issued under employee incentive scheme
Issued under employee incentive scheme
Substantial Shareholders
The substantial Shareholders as disclosed in the substantial shareholding notices received by the Company are:
No of Shares
72,460,698
71,926,674
Holding
12.22%
12.14%
Name
Van Eck Associates Corporation
BlackRock Group
Restricted Securities
The following securities are held in escrow:
Ordinary Shares:
Unlisted Options:
12,316,698
4,026,094
On-Market Buy-Back
Currently there is no on-market buy-back of the Company’s securities.
2015 Annual Financial Report
Page 71
TENEMENT SCHEDULE
Tenement
No.
E08/2232
E08/2393
E08/2395
E08/2472
E08/2474
E08/2475
E08/2499
E08/2565
E08/2566
E08/2567
E08/2568
E08/2569
E08/2570
E08/2659
E08/2701
E08/2702
E08/2707
L08/0103
P08/0653
P08/0670
P08/0677
P08/0678
E08/2310
E08/2487
E08/2494
E08/1187-I
E08/1845
E08/2613
E08/2614
P08/0646
E08/1166
E08/1189
E08/1763
E08/1842
E08/1843
E08/1844
P08/0546
E08/1650
E08/2654
E08/1628
E08/1629
E08/1631
E08/1632
E08/1741
E08/1915
E08/1916
E08/1949
E08/1950
E08/1985
E08/1986
E08/2000
E08/2003
E08/2038
E08/2039
E08/2065
E08/2067
E08/2114
E08/2250
E08/2258
E08/2280
E08/2282
E08/2293
E08/2294
E08/2295
E08/2296
E08/2354-I
M08/0191
M08/0192
M08/0193
E08/1649
E08/1744
E08/1745
E08/2240
E08/2251
E08/2252
E08/2555
E08/2556
E08/2558
E08/2559
E08/2560
E08/2655
E08/2715
E08/2716
L08/0012
L08/0013
L08/0014
L08/0015
L08/0081
L08/0091
L08/0092
L08/0113
L08/0148
M08/0099
M08/0196
M08/0222
P08/0516
P08/0543
P08/0565
P52/1420
E52/2484
E52/2730-I
E52/2786
Interest
%
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
80
80
80
80
80
80
80
100
100
60
60
60
60
60
60
60
60
60
60
60
60
60
60
60
60
60
60
60
60
60
60
60
60
60
60
60
20
20
20
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
60
60
60
Project Name and Location
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton , Ashburton
Cullen JV, Ashburton
Cullen JV, Ashburton
Cullen JV, Ashburton
Cullen JV, Ashburton
Cullen JV, Ashburton
Cullen JV, Ashburton
Cullen JV, Ashburton
Electric Dingo, Ashburton
Electric Dingo, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
Mt Clement, Ashburton
Mt Clement, Ashburton
Mt Clement, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Ashburton, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
2015 Annual Financial Report
Tenement
No.
E52/1941
E52/3024
E52/3025
E52/3026
M52/0639
M52/0640
M52/0734
M52/0735
E47/3305
E47/1395
E47/1549
E47/1677
E47/1735
E47/1773
E47/1833
E47/1879
E47/2035
E47/2171
E47/2236
E47/2292
E47/2587
E47/1134
E47/1553
P47/1313
P47/1637
P24/4184
P24/4185
P24/4186
M24/0924
E24/0151
P24/4146
P24/4149
P24/4498
P24/4499
P24/4500
P24/4501
P24/4502
P24/4503
P24/4538
P24/4818
P24/4819
P24/4820
E24/0152
E24/0153
L24/0205
L24/0206
M24/0142
M24/0435
M24/0606
M24/0626
P24/4229
P24/4230
P24/4236
P24/4237
P24/4969
P24/4970
P24/4971
P24/4972
P16/2482
P16/2483
P16/2484
P16/2485
P16/2486
P16/2487
P16/2488
P16/2489
P16/2490
P16/2491
L16/0057
L16/0075
M16/0027
M16/0188
M16/0239
M16/0411
P16/2508
M15/0993
M15/1413
M16/0181
M16/0182
M16/0308
M16/0309
M16/0325
M16/0326
M16/0421
M16/0428
L16/0028
L16/0038
L16/0039
L16/0069
L16/0104
L16/0105
L16/0106
L16/104
M15/0669
M15/1351
M16/0072
M16/0073
M16/0074
M16/0075
M16/0087
m16/0097
M16/0157
Project Name and Location
Interest
%
100 Mt Olympus, Ashburton
100 Mt Olympus, Ashburton
100 Mt Olympus, Ashburton
100 Mt Olympus, Ashburton
100 Mt Olympus, Ashburton
100 Mt Olympus, Ashburton
100 Mt Olympus, Ashburton
100 Mt Olympus, Ashburton
100
60
60
60
60
60
60
60
60
60
60
60
60
100
100
100
100
95
95
95
51
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
95
95
95
95
95
95
95
95
95
95
100
100
100
100
100
100
100
51
51
51
51
51
51
51
51
51
51
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
Ashburton, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Carbine East (Westex), Kalgoorlie
Carbine East (Westex), Kalgoorlie
Carbine East (Westex), Kalgoorlie
East Kundana JV, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Carbine East (Westex), Kalgoorlie
Carbine East (Westex), Kalgoorlie
Carbine East (Westex), Kalgoorlie
Carbine East (Westex), Kalgoorlie
Carbine East (Westex), Kalgoorlie
Carbine East (Westex), Kalgoorlie
Carbine East (Westex), Kalgoorlie
Carbine East (Westex), Kalgoorlie
Carbine East (Westex), Kalgoorlie
Carbine East (Westex), Kalgoorlie
Carbine Zuleika, Kalgoorlie
Carbine Zuleika, Kalgoorlie
Carbine Zuleika, Kalgoorlie
Carbine Zuleika, Kalgoorlie
Carbine Zuleika, Kalgoorlie
Carbine Zuleika, Kalgoorlie
Carbine Zuleika, Kalgoorlie
East Kundana JV, Kalgoorlie
East Kundana JV, Kalgoorlie
East Kundana JV, Kalgoorlie
East Kundana JV, Kalgoorlie
East Kundana JV, Kalgoorlie
East Kundana JV, Kalgoorlie
East Kundana JV, Kalgoorlie
East Kundana JV, Kalgoorlie
East Kundana JV, Kalgoorlie
East Kundana JV, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Tenement
No.
M16/0260
M16/0366
M16/0367
M16/0408
M16/0436
M16/0438
M16/0440
M16/0441
P16/2575
M16/0213
M16/0214
M16/0218
M16/0310
L26/0198
P26/3769
P26/3788
P26/3979
P26/3980
P26/3981
P26/3982
P26/3983
E26/0140
M26/0680
M26/0681
M26/0687
M26/0688
P26/3573
P26/3574
M27/0181
P27/1843
L27/0049
L27/0050
L27/0051
L27/0060
L27/0061
L27/0062
L27/0083
L27/0087
M27/0018
M27/0022
M27/0023
M27/0037
M27/0049
M27/0053
M27/0057
M27/0063
M27/0092
M27/0103
M27/0122
M27/0123
M27/0127
M27/0128
M27/0133
M27/0157
M27/0159
M27/0164
M27/0175
M27/0182
M27/0191
M27/0197
M27/0198
M27/0202
M27/0219
M27/0228
M27/0232
M27/0245
M27/0272
M27/0287
M27/0378
M27/0406
M27/0420
M27/0438
P27/1743
P27/1842
P27/1844
P27/1845
P27/1846
P27/1847
P27/1878
P27/1880
P27/1881
P27/1882
P27/2024
P27/2025
P27/2026
P27/2099
P27/2100
P27/2101
P27/2102
P27/2230
M27/0414
P27/1840
M27/0041
M27/0047
M27/0059
M27/0072
M27/0073
M27/0114
M27/0196
P27/1826
P27/1827
P27/1828
Interest
%
100
100
100
100
100
100
100
100
100
76
76
76
76
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
62
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
0
0
70
70
70
70
70
70
70
70
70
70
Project Name and Location
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
West Kundana JV, Kalgoorlie
West Kundana JV, Kalgoorlie
West Kundana JV, Kalgoorlie
West Kundana JV, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kalbara JV, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna West, Kalgoorlie (earn-in)
Kanowna West, Kalgoorlie (earn-in)
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Page 72
TENEMENT SCHEDULE
Tenement
No.
P27/1829
P27/1830
P27/1831
P27/1832
P27/1833
P27/1834
P27/1835
P27/1836
P27/1837
P27/1838
P27/1839
P27/1840
P27/1841
P27/1887
M27/0415
E27/0457
E27/0542
E51/1391
E52/1668
E52/1678
E52/1723
E52/1730
E52/1731
E52/1852
E52/2360
E52/2362
M52/0722
M52/0723
M52/0737
M52/0795
M52/1049
P52/1195
P52/1196
P52/1314
P52/1315
P52/1316
P52/1321
P52/1322
P52/1327
P52/1365
P52/1429
E52/2361
L52/0116
L52/0117
L52/0118
M52/0685
M52/0753
M52/0796
M52/0797
E52/2509
E52/3189
L52/0040
L52/0041
L52/0048
L52/0052
L52/0054
Project Name and Location
Interest
%
Kanowna West JV, Kalgoorlie
70
Kanowna West JV, Kalgoorlie
70
Kanowna West JV, Kalgoorlie
70
Kanowna West JV, Kalgoorlie
70
Kanowna West JV, Kalgoorlie
70
Kanowna West JV, Kalgoorlie
70
Kanowna West JV, Kalgoorlie
70
Kanowna West JV, Kalgoorlie
70
Kanowna West JV, Kalgoorlie
70
Kanowna West JV, Kalgoorlie
70
Kanowna West JV, Kalgoorlie
70
Kanowna West JV, Kalgoorlie
70
Kanowna West JV, Kalgoorlie
70
Kanowna West JV, Kalgoorlie
70
Kanowna West JV , Kalgoorlie
70
Kanowna, Kalgoorlie
100
100
Kanowna, Kalgoorlie
100 Murchison, Murchison
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
Bryah Basin JV, Peak Hill (earn-in)
Bryah Basin JV, Peak Hill (earn-in)
Bryah Basin JV, Peak Hill (earn-in)
Bryah Basin JV, Peak Hill (earn-in)
Bryah Basin JV, Peak Hill (earn-in)
Bryah Basin JV, Peak Hill (earn-in)
Bryah Basin JV, Peak Hill (earn-in)
Bryah Basin JV, Peak Hill (earn-in)
Bryah Basin JV, Peak Hill (earn-in)
Bryah Basin JV, Peak Hill (earn-in)
Bryah Basin JV, Peak Hill (earn-in)
Bryah Basin JV, Peak Hill (earn-in)
Bryah Basin JV, Peak Hill (earn-in)
Bryah Basin JV, Peak Hill (earn-in)
Bryah Basin JV, Peak Hill (earn-in)
Bryah Basin JV, Peak Hill (earn-in)
Bryah Basin JV, Peak Hill (earn-in)
Bryah Basin JV, Peak Hill (earn-in)
Bryah Basin JV, Peak Hill (earn-in)
Bryah Basin JV, Peak Hill (earn-in)
Bryah Basin JV, Peak Hill (earn-in)
Bryah Basin JV, Peak Hill (earn-in)
Bryah Basin JV, Peak Hill (earn-in)
Hermes, Peak Hill
Hermes, Peak Hill
Hermes, Peak Hill
Hermes, Peak Hill
Hermes, Peak Hill
Hermes, Peak Hill
Hermes, Peak Hill
Hermes, Peak Hill
Peak Hill, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Tenement
No.
L52/0055
L52/0056
L52/0070
L52/0071
L52/0074
M52/0148
M52/0149
M52/0150
M52/0170
M52/0171
M52/0222
M52/0223
M52/0263
M52/0264
M52/0289
M52/0295
M52/0296
M52/0300
M52/0301
M52/0308
M52/0309
M52/0591
M52/0592
P52/1394
G53/0020
L53/0052
L53/0060
L53/0068
L53/0069
L53/0070
L53/0071
L53/0072
L53/0073
L53/0075
L53/0099
L53/0100
L53/0102
L53/0112
L53/0113
L53/0117
L53/0136
L53/0137
L53/0138
L53/0142
L53/0143
L53/0153
L53/0169
L53/0174
M53/0155
M53/0156
M53/0182
M53/0191
M53/0192
M53/0196
M53/0197
M53/0198
Interest
%
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
Project Name and Location
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Tenement
No.
M53/0199
M53/0221
M53/0226
M53/0228
M53/0229
M53/0230
M53/0235
M53/0236
M53/0237
M53/0245
M53/0246
M53/0247
M53/0248
M53/0249
M53/0250
M53/0326
M53/0347
M53/0372
M53/0412
M53/0413
M53/0414
M53/0441
M53/0446
M53/0451
M53/0452
M53/0461
M53/0477
M53/0478
M53/0479
M53/0480
M53/0492
M53/0535
M53/0536
M53/0537
M53/0538
M53/0539
M53/0540
M53/0541
M53/0552
M53/0588
M53/0589
M53/0611
M53/0707
M53/0708
M53/0711
M53/0712
M53/0836
M53/0874
M53/0895
M53/0911
M53/0929
M53/0935
M53/0940
M53/0966
Interest
%
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
Project Name and Location
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
2015 Annual Financial Report
Page 73
2015 Annual Financial Report