ANNUAL
REPORT
ACN 121 582 607
DIRECTORS
Mr Michael Fotios – Non-Executive Chairman
Mr Simon Taylor – Managing Director
REGISTERED OFFICE AND PRINCIPAL
PLACE OF BUSINESS
Level 5, 56 Pitt Street
Dr Madani Diallo – Executive Director, Country
Sydney, NSW, 2000
Telephone: +61 2 8823 3100
Facsimile: +61 8 9252 8466
Website: www.okloresources.com
Email :
info@okloresources.com
STOCK EXCHANGE
The Company’s securities are quoted on the official
list of the Australian Securities Exchange Limited
(ASX code: OKU)
SHARE REGISTRY
Computershare Investor Services Pty Ltd
Level 11, 172 St Georges Terrace
Perth, WA, 6000
Manager
COMPANY SECRETARY
Ms Louisa Martino
BANKER
National Australia Bank Ltd
South Sydney Partnership
Level 20 Tower 1
520 Oxford Street
Bondi Junction NSW 2022
AUDITORS
BDO Audit (WA) Pty Ltd
38 Station Street
Subiaco, WA, 6008
SOLICITORS
Steinepreis Paganin
16 Milligan Street
Perth, WA, 6000
2
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018 Chairman’s Letter
Operations Review
Directors’ Report
Auditor’s Independence Declaration
Financial Statements
PAGE
4
6
23
37
- Consolidated statement of profit or loss and
other comprehensive income
38
- Consolidated statement of financail position 40
- Consolidated statement of changes in equity 41
- Consolidated statement of cash flows
42
- Notes to the consolidated financial statements 43
Directors’ Declaration
78
Independent Auditor’s Report to the Members 79
ASX Additional Information
84
3
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
Chairman’s
Letter
CHAIRMAN’S LETTER
Dear Fellow Shareholders,
Once again, it gives me great pleasure to present Oklo Resources Limited’s (“Oklo” or the “Company”, ASX:
OKU) 2017 Annual Report. The past year has seen our Company make great strides towards achieving its
goal of discovering the next major gold deposit in Mali, West Africa.
We started to see real evidence of this in late 2016 with the first results from shallow auger geochemistry
drilling outlining an extensive zone of bedrock gold anomalism at Seko within the Dandoko Project. Our
aggressive exploration work to date has shown Seko to comprise at least five coherent gold trends of up to
2km in strike length with significant widths of low to medium grade, oxide gold mineralisation intersected
in aircore drilling in early 2017. The drill results to date demonstrate excellent potential for a significant
oxide gold system at Seko, and possibly elsewhere along the 12km-long gold trend outlined by auger
The quality of drilling results continues to
geochemistry within Dandoko.
highlight the excellent potential of our
landholdings with numerous opportunities
We have already commenced planning for the 2017-18 field season and look forward to reporting further
being advanced through the development
positive developments on our quest to build a significant gold company in Mali.
pipeline as we continue our quest to become a
major gold producer in west Mali.
Our impressive project portfolio strategically located amongst several world-class gold deposits and mining
The successful raising of AUD$15 million earlier
operations coupled with our recent exploration success is attracting increasing investor awareness from
in the year was well timed and combined with
within the gold mining industry and also from global fund managers, with the BlackRock Group and Resolute
the 2018 exploration results, the Company is
Mining Ltd emerging as substantial shareholders during the year. This new investor interest has also
well set to capitalise on its strong position as it
enabled Oklo to continue funding its aggressive exploration programs, with $8.7 million raised through an
progresses into the 2019 field season.
oversubscribed share placement and a further $2.9 million through the conversion of listed options,
I would like to thank my fellow Board
meaning that we will be able to start the forthcoming field season in a strong financial position with cash
members, management and in-country team
reserves of circa $13 million.
for all their efforts and successes during the
past year. Significant exploration success
Oklo’s Board and management team collectively has vast experience in gold exploration and has
has been achieved under the leadership of
demonstrated this by uncovering further discoveries within our vast Malian holdings. I would therefore like
Simon Taylor (Managing Director) working
collaboratively with our in-country team,
to thank my fellow Board members and management as well as our in-country team for all their effort and
headed by Dr Madani Diallo (Executive
success during the past year.
Director) and Mr Andrew Boyd (General
Manager Exploration).
We have clear objectives set for the 2017-18 field season including outlining a maiden resource at our
Dandoko Project and particularly at Seko. I thank you for your support throughout 2017 and hope that our
Thank you for your support throughout the
year and I hope that our progress during the
progress during the forthcoming year will continue to add value to your investment in Oklo.
forthcoming year will continue to add value to
your investment in Oklo.
Dear Fellow Shareholders,
On behalf of the Directors I am pleased to
report on a year of strong growth for Oklo
Resources Limited (Oklo or the Company,
ASX: OKU) and delighted to present the
2018 Annual Report. The past year has seen
our Company continue to build a strong
foundation on the back of previous results
from 2017 and advance its vision of unearthing
a major gold deposit in Mali, west Africa.
During the period the Company continued to
aggressively explore the 12 km long Dandoko
gold corridor, completing approximately
57,000 drill meters across the project and
producing a stream of excellent results
including numerous new discoveries.
Drilling results at Seko, within our flagship
Dandoko Project, continue to impress and
were especially encouraging with gold
reported from both shallow oxide and
importantly, deeper primary (fresh rock)
material which is indicative of the potential for
a large gold system. Results have significantly
advanced our understanding of the prospect
with its five exciting and distinct auger gold
zones (SK1-SK5) extending for a combined
strike length over 7km.
New discoveries were also made at Sory and
Dabia, confirming that the 12km long gold
corridor at Dandoko has the potential to
support a district scale gold camp hosting
numerous gold deposits.
Key to the Company’s strategy during the
period was the expansion of our footprint in
west Mail. We have a strong belief that the
ground at Dandoko and surrounding areas
are highly prospective and remain largely
unexplored. The addition of the Kouroufing
and Kandiole Projects and subsequent to
year end, the Kossaya and Sari Projects has
underpinned this strategy. Acquisition of the
prospective ground was vindicated post year
end with the identification of a second 6km
gold corridor at our Kouroufing Project.
Yours sincerely,
Yours sincerely,
Michael Fotios
Chairman
Michael Fotios
Chairman
4
Oklo Resources Limited and its Controlled Entities
Page 4
2017 Annual Report
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
The successful raising of AUD$15 million
earlier in the year was well timed and
combined with the 2018 exploration
results, the Company is well set to
capitalise on its strong position as it
progresses into the 2019 field season.
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
5
Operations
Review
As at the date of this report, the Company holds more than
1,350km2 of exploration ground across Mali, much of which
is largely unexplored. This large strategic landholding was
bolstered during the year with the addition of more than
205km2 of highly prospective landholdings across western Mali
and a further 84km2 added subsequent to year end.
Oklo’s gold projects are concentrated in two key areas: west Mali (Dandoko, Moussala,
Kouroufing, Kandiole, and Socaf) and south Mali (Yanfolila, Kolondieba, Sirakourou
and Solabougouda).
Both groups of permits are located over highly prospective Proterozoic Birimian
greenstone belts in the vicinity of multi-million-ounce gold mining operations and
recent noteworthy discoveries (Figure 1).
FIGURE 1: LOCATION OF OKLO PROJECTS IN WEST AND SOUTH MALI
*Sari and Kossaya projects acquired post year end
6
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018 During the year, the Company continued with its aggressive exploration campaigns with programs focused on:
•
•
The discovery and further definition of gold mineralisation within its flagship Dandoko Project.
First pass auger geochemical sampling its Kouroufing project.
A total of 62,908 drill metres were completed with further significant results including:
•
•
•
Excellent gold results from both oxide and primary zones at Seko (Dandoko).
Two new gold discoveries within the Dandoko gold corridor (Dabia and Sory).
A new 6km long gold anomalous corridor at the Kouroufing Project with results reported subsequent to
year end.
TABLE 1: DRILLING SUMMARY
PROJECT
DRILLING TYPE
NO. HOLES
METRES
Dandoko
Auger
Air core
RC
Diamond1
Kouroufing
Auger
116
439
85
8
439
1 Including RC collars
FY18 Totals
1,087
1,814
39,296
14,594
1,176
6,028
62,908
The reporting of significant gold
mineralisation within the primary zone
(fresh rock) at Seko is highly encouraging
and enhanced the Company’s view that
Seko represents part of a large gold
system within the identified Dandoko
gold corridor – the potential for further
discovery along the corridor remains high.
7
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018 Exploration
Activity
DANDOKO PROJECT
The Dandoko Project covers 134km2 within the Kenieba
Inlier of west Mali in close proximity to numerous world
class gold deposits including B2Gold’s 5.15Moz Fekola
gold project 30km to the west and Randgold’s 12.5Moz
Loulo Gold Mine 50km to the north-northwest. Dandoko
is underlain by Proterozoic Birimian meta-volcanic and
meta-sedimentary sequences (Figure 2a).
In March 2017, Oklo delineated the 12km long Dandoko gold corridor through
reconnaissance shallow auger geochemical drilling, identifying a number
of target prospects (Figure 2b). Drill testing of these auger anomalies has
concentrated on Seko with recent first pass drilling at Sory and Dabia. Other
targets along the corridor remain largely untested.
During the reporting period two phases of drilling were completed, primarily
testing Seko and regional targets (Dabia and Sory). A total of 648 holes
were completed for 56,880 metres with drilling designed to test strike and
depth extensions to the previously encountered oxide gold mineralisation
to a vertical depth of circa 80m with aircore drilling (AC) and deeper reverse
circulation (RC) and diamond (DD) drilling to vertical depths of between
180m and 200m testing for primary gold mineralisation.
8
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018 FIGURE 2: A) LOCATION OF OKLO’S DANDOKO, MOUSSALA, KOUROUFING AND KANDIOLE GOLD PROJECTS IN WEST MALI
B) LOCATION OF SEKO TRENDS WITHIN 12 KM LONG DANDOKO GOLD CORRIDOR
*Sari and Kossaya projects acquired post year end
9
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
SEKO PROSPECT
Seko is comprised of five strong coherent auger gold trends, SK1 to SK5, with a
combined strike length of 7km (Figure 3A & 3B). Drilling to date has identified
extensive gold mineralisation associated with a broad albite-carbonate-pyrite
alteration zone and the presence of turbiditic units within a carbonate and
greywacke sequence. Importantly the alteration assemblage and rock types
have similar characteristics to some of the large gold deposits in proximity to
the project.
Significant intersections from SK1-SK3 are shown in Table 2.
FIGURE 3A: LOCATION OF SEKO AUGER GOLD TRENDS (SK1-SK5) ALONG
WITH GRADE THICKNESS FROM AC, RC AND DD DRILLHOLES
FIGURE 3B: LOCATION SEKO AUGER GOLD TRENDS (SK1-SK5) WITH RESULTS
AND GRADE THICKNESS OF AC, RC AND DD DRILLHOLES
10
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018 SK1
The SK1 auger gold trend extends over 2.0km. Shallow AC drilling has reported wide zones of oxide gold
mineralisation up to 200m across in strike (Figure 4).
Results during the year have included 33m at 4.97g/t gold from 63m (including 13m at 9.69g/t gold), 30m
at 1.56g/t gold from 9m, 40m at 1.41g/t gold from 69m and 76m at 1.65g/t gold from 8m (including 52m at
2.23g/t gold).
FIGURE 4: SK1 CROSS SECTION 1396400MN
11
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018 SK2
The SK2 auger gold trend extends over 1km with high grade oxide gold
mineralisation intersected by shallow AC drilling. Follow up deeper RC and
DD drilling (Figure 5) has focused on the central portion of the anomaly
testing for primary gold mineralisation at depth and to improve the geological
understanding of the previously reported high grade gold mineralisation.
Based on the drilling completed at the end of the year, the oxide mineralisation
extends over a strike length of 400m and overlies what has been confirmed as
a coherent, steep south-easterly plunging, high grade shoot over a strike length
of 80m, extending from surface to a vertical depth of 195m which remains open
down-plunge.
Exceptional grades and widths of gold mineralisation were returned within the
oxide zone with some highlights including 42m at 6.14g/t gold from 0m to the
end of hole, 30m at 4.47g/t gold from 0m, 29m at 12.27g/t gold from 1m and
40m at 10.66g/t gold from 25m.
Deeper RC and DD holes returned significant primary gold mineralisation with
some highlights including 31m at 6.27g/t gold from 101m, 46m at 4.03g/t gold
from 111m and 51m at 2.22g/t gold from 180m.
To commence metallurgical sampling for testwork the Company completed
one DD (PQ - larger diameter hole 85mm core) hole at SK2. The hole was
drilled at the northern end of the historic artisanal workings which were
intersected while drilling. The hole intersected numerous high-grade intervals
with maximum grades of up to 79.70g/t gold and returned 7m at 16.24g/t
gold from 0m including 2m at 46.75g/t gold from 4m and a second interval
downhole of 40m at 10.66g/t gold from 25m including 10m at 23.82g/t gold
from 25m (Figure 5).
FIGURE 5: SK2 DRILL HOLE LOCATION PLAN AND DRILL CROSS SECTION 1396360MN
12
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018 SK3
The SK3 auger gold trend extends over 1.2km. Drilling results to date confirm a continuous west-
dipping gold mineralised zone extending over 600m from surface to a vertical depth of 245m.
Significant intersections of shallow oxide was returned from AC drilling and included 24m at 3.67g/t
gold from 58m, 34m at 1.57g/t gold from 63m and 40m at 1.18g/t gold from 42m. Deeper RC and DD
drilling returned 37m at 2.26g/t gold from 108m including 11m at 4.04g/t gold from 112m, 30m at
2.63g/t gold from 145m, 11m at 9.64g/t gold from 123m and 114m at 0.79g/t from 90m all within fresh
rock (Figure 6).
Significantly, results reported subsequent to year end from an RC hole drilled on the most northern
section, returned 20m at 3.03g/t gold (Figure 6) from 209m that included a higher-grade zone of 3m at
10.24 g/t gold from 226m with the hole ending in mineralisation at 229m down hole depth. This new
intersection is located approximately 100m to the east of the main SK3 mineralisation intersected in
earlier drilling.
FIGURE 6: SK3 DRILL HOLE LOCATION PLAN AND DRILL CROSS SECTION 1397130MN
The Company is highly encouraged by the
continuity and high-grade nature of the gold
mineralisation within the primary zone at SK2
and remains optimistic for the discovery of
further high-grade lodes below the extensive
Seko anomalies and elsewhere along the
12km long Dandoko gold corridor.
13
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018 TABLE 2: SIGNIFICANT INTERSECTIONS FROM SK1-SK3
AREA
HOLE ID
FROM
TO
WIDTH (m)
GRADE (g/t Au)
SK1
SK2
SK3
ACSEK17-314*
including
including
ACSEK17-319
including
ACSEK17-346
ACSEK18-369*
including
ACSEK17-305
including
ACSEK17-309*
including
RCSEK17-012*
Including
Including
RCSEK17-014*
Including
RCSEK17-015
Including
RCSK18-029
RCSK18-036*
RCSK18-043
Including
Including
Including
RCSK18-058
Including
DDSK18-007
Including
DDSK18-010
Including
RDSK18-020
Including
Including
ACSEK17-266
Including
RCSEK17-002
Including
RCSEK17-006*
RCSEK17-007
Including
Including
RCSEK17-019
RCSK18-047
Including
Including
RCSK18-048
Including
RCSK18-049
Including
RDSK18-014
Including
RDSK18-019
Including
0
6
69
71
8
11
9
63
64
0
24
0
27
18
37
91
115
0
30
0
6
191
128
3
26
44
101
102
1
7
96
108
51
55
111
132
180
196
42
47
58
70
59
48
58
85
108
90
104
162
99
100
58
65
145
146
123
144
AC Drilling
29
13
109
83
84
63
39
96
77
AC Drilling
30
30
42
34
RC Drilling
54
47
150
127
79
70
35
11
216
146
65
56
54
132
110
30
15
DD Drilling
141
117
70
64
157
152
231
213
AC Drilling
82
65
RC Drilling
84
75
86
97
66
89
145
204
128
174
121
107
82
74
DD Drilling
175
161
134
148
29
7
40
12
76
52
30
33
13
30
6
42
7
36
10
59
12
79
40
35
5
25
18
62
30
10
31
8
29
8
45
9
19
9
46
20
51
17
40
18
26
5
27
49
8
4
37
114
24
12
20
7
24
9
30
15
11
4
1.59
2.45
1.41
2.39
1.65
2.23
1.56
4.97
9.69
4.47
12.31
6.14
15.10
2.63
6.57
2.00
3.44
2.17
3.85
2.21
7.33
2.24
4.41
5.26
7.09
12.17
6.27
17.20
12.27
36.90
4.38
11.02
2.41
3.64
4.03
6.41
2.22
4.79
1.18
2.02
1.51
3.62
1.41
1.76
3.90
4.53
2.62
0.79
1.35
2.18
2.45
5.42
3.67
5.95
2.63
4.49
9.64
8.03
* hole ended in mineralisation.
AC - Intervals are reported using a threshold where the interval has a 1.0g/t Au average or greater over the sample interval and selects all
material greater than 0.10g/t Au allowing for up to 2 samples of included dilution every 10m.
RC/DD - Intervals are reported using a threshold where the interval has a 0.5g/t Au average or greater over the sample interval and selects all
material greater than 0.10g/t Au allowing for up to 2 samples of included dilution every 10m.
14
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
SK2 NORTH (NEW IDENTIFIED TREND)
Fourteen shallow AC holes on four drill traverses were completed 600m to the north of the SK2
zone. The holes tested the area around and below small artisanal workings. Significant gold
mineralisation was returned including 11m at 1.79g/t gold from 31m with the hole ending in
mineralisation, 9m at 1.21g/t gold from 5m and 2m at 3.48g/t gold from 6m (Figure 7).
The initial results from the new mineralised zone are highly encouraging and will be further tested
at depth and along strike southwards towards SK2. The Company hopes SK2 North will form part
of the existing SK2 trend.
SEKO METALLURGY RESULTS
Early in the reporting year a total of 586 representative samples of oxide mineralisation from Seko
were resubmitted for 24 hour bottle roll cyanide leach analysis. Results returned less than a 3%
variance to the original fire assay results, indicating no nuggety gold distribution and potentially
favourable conventional cyanide leach characteristics.
15
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018 SORY DISCOVERY
A first pass drilling program (60 AC holes) was completed at the Sory target
(Figure 7), located 2.5km south of Seko. The drilling was carried out along five
traverses to provide initial coverage across the previously outlined auger gold
anomalies over a total strike length of 1.8km. Significant results included 14m
at 1.31g/t gold from 48m, 5m at 2.82g/t gold from 49m and 5m at 2.27g/t gold
from 14m.
A further program (comprised of four RC holes and three AC holes) was
completed during the year, with results reported subsequent to year end. The
RC holes were drilled on one traverse and returned positive results including
44m at 1.37g/t gold including 14m at 2.46g/t gold. The AC holes were drilled
into a separate auger geochemical anomaly 1km to the north of the RC drill
traverse and intersected a wide zone of gold mineralisation including 35m at
1.00g/t gold that included 4m at 3.40g/t gold.
FIGURE 7: LOCATION OF COMPLETED AC, RC DRILL TRAVERSES OVER DABIA AND SORY
ALONG WITH GRADE THICKNESS (AC, RC AND DD DRILLHOLES) OVER SEKO ANOMALIES
SK1-SK5 OVERLAIN ON GOLD AUGER GEOCHEMISTRY
16
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018 TABLE 3: SIGNIFICANT INTERSECTIONS – DABIA & SORY
AREA
HOLE ID
FROM (m)
TO (m)
WIDTH (m)
GRADE (g/t Au)
ACDB18-004
including
ACDB18-014
ACDB18-020
ACDB18-027
ACDB18-046
ACDB18-049
ACDB18-060
including
ACDB18-106*
47
5
62
58
34
34
46
26
29
99
including
102
ACDB18-133
ACDB18-189
including
including
RCSR18-003
including
ACDB18-014
ACSR18-441
including
31
65
68
84
33
33
63
18
47
Dabia
Sory
AC Drilling
67
62
64
67
46
42
68
41
38
108
104
36
90
72
86
77
38
77
RC Drilling
53
51
20
7
2
9
12
8
22
15
9
9
2
5
25
4
2
44
5
14
35
4
0.58
1.07
6.01
1.86
1.00
2.64
0.87
2.05
3.02
2.66
5.91
4.85
2.50
5.03
6.59
1.37
2.36
2.46
1.00
3.40
Mineralised zones are reported using a threshold where the interval has a >= 0.30g/t Au average or greater over the sample interval and selects
all material greater than 0.10 g/t Au allowing for 3 sample of included dilution.
DABIA DISCOVERY
Five lines of wide-spaced shallow AC drilling (72 holes) tested auger gold anomalies at
Dabia, some 2.0km north of Seko. Results received returned grades of up to 12.0g/t gold
and multiple intersections of anomalous to low grade mineralisation including: 15m
at 2.05g/t gold including 9m at 3.02g/t gold, 8m at 2.64g/t gold, 22m at 0.87g/t gold
including 8m at 1.87g/t gold., 9m at 1.86g/t gold, 12m at 1.00g/t gold and, 20m at 0.58g/t.
A further program of 146 AC holes was completed during the year along 8 drill traverses
results from this work, reported subsequent to year end, included grades of up to 16.00g/t
gold returned along with multiple intercepts of anomalous to low grade mineralisation
including: 25m at 2.50g/t gold including 4m at 5.03g/t gold, 5m at 4.85g/t gold, 9m at
2.66g/t gold including 2m at 5.91g/t gold, 12m at 1.09g/t gold including 4m at 2.14g/t gold
and 17m at 1.10g/t gold.
These early stage results from Dabia and Sory are highly encouraging and provide support
for the discovery of a district gold camp by the Company.
A summary of results for Dabia and Sory are reported in Table 3.
17
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018 NEW PROJECT ACQUISITIONS
During the year, Oklo increased its footprint in west Mali
around its flagship Dandoko Project with the addition of the
Kouroufing (91km2) and Kandiole (116km2) Projects.
Subsequent to year end, two further projects were acquired,
Sari and Kossaya (84km2 combined).
At the date of this report, Oklo has greatly increased its
combined landholding in the region to 489km2 (Figures 8A & 8B).
+147%
increase to Oklo’s golden footprint in west Mali
FIGURE 8A) OKLO FOOTPRINT AT 30TH JUNE 2017
FIGURE 8B) CURRENT OKLO FOOTPRINT AS AT THE DATE OF THIS REPORT
*Sari and Kossaya projects acquired post year end
18
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018 FIGURE 9 – KOUROUFING GOLD PROJECT, LOCATION OF
AUGER DRILL HOLES AND MAX GOLD IN HOLE VALUES
AND CONTOURS
KOUROUFING PROJECT
OKLO’S 2ND GOLD CORRIDOR
During the year, Oklo agreed to acquire 95% of the
Kouroufing Project over two years, with an option
to acquire 100% ownership of the Permit that is
located 20km southeast of the Company’s flagship
Dandoko Project.
The Project covers a largely unexplored tract of
highly prospective Proterozoic Birimian greenstones
in a comparable geological setting to the nearby,
multi-million ounce gold mining operations and
recent discoveries. Oklo has identified northeast-
trending structures within the project area, which
are considered similar to those outlined within the
Company’s nearby Dandoko.
During the year, Oklo completed a 439 hole shallow
auger geochemical drilling program (average down
hole depth of 14.5m). Similar reconnaissance auger
drilling was instrumental in the identification of the
recent gold discoveries within the Dandoko Project.
The results from this work, reported subsequent
to year end, identified a 6km gold corridor
at Kouroufing (Figure 9). These initial results
demonstrate the potential for further discoveries,
with multiple walk up drill targets identified.
KANDIOLE PROJECT
In May 2018, Oklo agreed to acquire 100% of the Kandiole Sud Project (“Kandiole”), located 5km southwest of the
Dandoko Project and 10km southeast of B2Gold’s operating Fekola Mine in western Mali. The Kandiole Project is
a single granted permit covering an area of 116km2 immediately east of the Senegal Mali Shear Zone and covers a
largely unexplored tract of highly prospective Proterozoic Birimian greenstones in a comparable geological setting
to the Dandoko Project.
No exploration work was completed during the year.
19
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018 MOUSSALA PROJECT
WEST MALI
No field work was completed during the year.
SOCAF PROJECT
NORTH WEST MALI
The Socaf Project covers a sparsely outcropping inlier of Birimian volcanics
located along the interpreted northern continuation of the Senegal Mali Shear
Zone (SMSZ) which hosts no fewer than six major gold deposits to the south,
including Sadiola (13.5Moz) and Loulo (12.5Moz).
No field work was completed during the year.
YANFOLILA PROJECT
SOUTH MALI
Yanfolila is located 45km north of Avnel Gold’s Kalana gold mine (2.15Moz)
and 35km east of Hummingbird Resources’ Komana (Yanfolila) gold project
(1.8Moz).
No field work was completed during the year.
SAMIT NORTH PHOSPHATE
PROJECT
MALI
No exploration activities were undertaken at the project during the year.
KIDAL URANIUM PROJECT
MALI
No exploration activities were undertaken at the project during the year.
INTERESTS ACQUIRED AFTER
BALANCE DATE
In July 2018, as part of the Company’s plan to strategically acquire projects
in the area around its flagship Dandoko project, the Company acquired the
Kossaya and Sari projects. Further details are set out in the section “Events
subsequent to the Reporting Date” below.
20
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018 Corporate
CAPITAL RAISINGS
During the year the Company completed a $15 million placement to sophisticated and institutional investors and raised a total
of $1.7 million from the exercise of options. As at the end of the year, the Company remains well-funded at the end of the year
with cash reserves of $18.4 million.
BOARD & MANAGEMENT CHANGES
None
COMPETENT PERSON’S DECLARATION
The information in this Annual Report that relates to Exploration Results is based on information compiled by geologists employed by
Africa Mining (a wholly owned subsidiary of Oklo Resources) and reviewed by Mr Simon Taylor, who is a member of the Australian Institute
of Geoscientists. Mr Taylor is the Managing Director of Oklo Resources Limited and holds shares in the Company. Mr Taylor is considered to
have sufficient experience deemed relevant to the style of mineralisation and type of deposit under consideration, and to the activity that he
is undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves” (the 2012 JORC Code). Mr Taylor consents to the inclusion in this report of the matters based on this
information in the form and context in which it appears.
This report contains information extracted from previous ASX market announcements reported in accordance with the JORC Code (2012)
and available for viewing at www.okloresources.com. Oklo Resources confirms that in respect of these announcements it is not aware of any
new information or data that materially affects the information included in any original ASX market announcement. The announcements
are as follows:
DANDOKO PROJECT:
Announcements dated 21st December 2016, 30th January 2017, 21st February 2017, 3rd March 2017, 7th March 2017, 15th March 2017, 30th
March 2017, 6th April 2017, 26th April 2017, 29th May 2017, 21st June 2017, 12th July 2017, 25th July 2017, 14th August 2017, 16th August 2017,
4th September 2017, 28th November 2017, 5th December 2017, 20th December 2017, 5th February 2018, 22nd February 2018, 8th March 2018,
28th March 2018, 3rd May 2018, 16th May 2018, 22nd May 2018, 2nd July 2018, 6th August 2018, 28th August 2018 and 3rd September 2018.
KOUROUFING PROJECT:
Announcement dated 12th September 2018.
21
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018 Financial
Report
22
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018 DIRECTORS’ REPORT
The Board of Directors present their report on the Consolidated entity (referred to hereafter as the Group)
consisting of Oklo Resources Ltd and the entities it controlled at the end of, or during the year ended 30 June
2018.
DIRECTORS
The names and details of the Company’s Directors in office during the financial year and until the date of this
report, unless as otherwise stated, are as follows:
Mr Michael Fotios B.Sc. (Hons. Geology)
Non-Executive Chairman
Mr Fotios is a geologist, specialising in economic geology with extensive experience in exploration throughout
Australia, taking projects from exploration to feasibility. Mr Fotios was recently the Executive Chairman of
Eastern Goldfields Limited, has previously held positions with Homestake Australia Limited and Sons of Gwalia
Limited and was formerly the Managing Director of Tantalum Australia NL (now ABM Resources Limited) and
Galaxy Resources Limited. He is also the founder and Executive Chairman of unlisted investment company,
Investmet Limited.
Current External Directorships:
Past Directorships in last 3 years:
Horseshoe Metals Limited (ASX)
Pegasus Metals Limited (ASX)
Redbank Copper Limited (ASX)
Eastern Goldfields Limited (ASX)
General Mining Corporation Limited (ASX)
Galaxy Resources Limited (ASX)
Mr Simon Taylor B.Sc, MAIG,Gcert AppFin
Managing Director
Mr Taylor is a geologist with over 25 years’ experience in exploration, project assessment and development in
the resources sector. He has had a diversified career as a resources professional. His experience spans a range
of commodities including gold, fertilisers (phosphate and potash), base metals, nickel, uranium, coal and coal
seam methane. Whilst his experience includes Australia a majority of his projects have been in international
countries including Brazil, Turkey, Uganda, Tanzania, Mali, China, UK and North America.
His experience includes providing consulting services to resource companies and financial corporations as a
resource analyst and in senior positions. His analytical and technical expertise, combined with his corporate
experience have given him an ability to advise companies at a corporate and Board level including fund raising,
acquisitions, promotion and recognising value opportunities to add shareholder value.
Current External Directorships
Chesser Resources Limited (ASX)
ARC Exploration Limited (ASX)
Bod Australia (ASX)
Past Directorships in last 3 years:
King Solomon Mines (ASX)
Oklo Resources Limited and its Controlled Entities
Page 20
2018 Annual Report
23
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
DIRECTORS’ REPORT
Dr Madani Diallo MSc Geochem, PhD Geochem
Executive Director
Dr Diallo has an outstanding track record for over 30 years of successful exploration in Africa. During his
lengthy career Dr Diallo has directly led the teams that discovered large gold deposits including the multi-
million ounce deposits of Syama, Morila and Sadiola deposits in Mali and the Essakane deposit in Burkina
Faso. Dr Diallo is a director of several private companies focussed on precious and industrial minerals in the
West African region and was formerly a Director of the Sadiola Gold Mine (IamGold/AngloGold Ashanti JV). He
also advises private and government agencies involved with the financing of resource related projects Mali.
He also holds the position of Vice-President of the Mali Chamber of Mines, President of the Association of
Geoscientists in Mali and is a Director of UBA bank in Burkina Faso. He has also been honoured with the
second highest distinction in Mali “Knight of National Order” for his contribution to the development of the
Mali mining industry and was recently granted the medal of Officer of the Nation by the President of Mali.
Current External Directorships
Compass Gold Corporation (TSX-V)
UBA Bank Burkina Faso
Past Directorships in last 3 years:
Sadiola and Morila Gold Mine (joint venture)
COMPANY SECRETARY
Ms Louisa Martino B.Com, CA, SA Fin
Company Secretary
Ms Martino is an experienced company secretary with a substantial background in accounting, finance,
company compliance (ASIC and ASX) and corporate finance, including IPOs and mergers and acquisitions.
Ms Martino has a Bachelor of Commerce from the University of Western Australia, is a member of the Institute
of Chartered Accountants in Australia and a member of the Financial Services Institute of Australasia (FINSIA).
PRINCIPAL ACTIVITIES
The principal activities of the Group during the year were the identification of potential mining resource assets
for acquisition, acquiring same, conducting mineral exploration in the Republic of Mali.
FINANCIAL POSITION
The Group’s net assets at 30 June 2018 were $50,071,457 (30 June 2017: $33,137,636).
The Directors consider that the Group is in a strong and stable financial position to continue and grow its existing
activities.
REVIEW OF OPERATIONS AND FINANCIAL RESULTS
The Group’s operations are reviewed from pages 6 to 21 of the Annual Report.
The Group recorded an operating loss for the period of $1,803,491 (2017: $1,514,153). The 2018 result is
consistent with the size and operations of the Group.
Oklo Resources Limited and its Controlled Entities
Page 21
2018 Annual Report
24
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
DIRECTORS’ REPORT
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
There were no significant changes in the state of affairs of the Group other than those referred to elsewhere in
this report of the financial statements or notes thereto.
EVENTS SUBSEQUENT TO REPORTING DATE
On 19 July 2018, the Company announced that it had signed agreements to acquire 100% ownership of the
Kossaya and Sari Projects, both located within 5km of the Company’s flagship Dandoko Project in West Mali.
The terms of the acquisitions are:
Kossaya Project
Oklo has the option to acquire 100% ownership of the Permit on the following terms:
1. Payment of 40,000,000 FCFA (Euro €60,000) on execution of the Agreement.
2. On the first anniversary of the Agreement, Oklo can earn a 65% interest in the Permit for a further
payment of 60,000,000 FCFA (Euro €90,000) or the equivalent in Oklo shares at the election of the
grantor, subject to Oklo completing a minimum expenditure totalling Euro €100,000 in the first year.
Oklo may at its sole discretion terminate the Agreement at any time prior to the first anniversary by
giving ten (10) days written notice having met the minimum expenditure requirement.
Sari Project
Oklo has the option to acquire 100% ownership of the Permit on the following terms:
3. Payment of 10,000,000 FCFA (Euro €15,000) on execution of the Agreement.
4. On the first anniversary of the Agreement, Oklo can earn a 65% interest in the Permit for a further
payment of 10,000,000 FCFA (Euro €15,000) or the equivalent in Oklo shares at the election of the
grantor subject to Oklo completing a minimum expenditure totalling Euro €117,000 in the first year.
Oklo may at its sole discretion terminate the Agreement at any time prior to the first anniversary by
giving ten (10) days written notice having met the minimum expenditure requirement.
5. On the second anniversary of the Agreement, Oklo can earn the remaining 35% interest in the Permit
for a further payment of 10,000,000 FCFA (Euros €15,000) or the equivalent in Oklo shares at the
election of the grantor.
Other than the above, there has not been any matter or circumstance that has arisen since the end of the
financial year, that has significantly affected or may significantly affect the operations of the Group, the results
of those operations, or the state of affairs of the Group in future financial years.
DIVIDENDS
No dividends were declared or paid during the year.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
Likely future developments in the operations of the Group are referred to in the Chairman’s Letter, Operations
Review and Note on subsequent events.
Oklo Resources Limited and its Controlled Entities
Page 22
2018 Annual Report
25
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
DIRECTORS’ REPORT
INDEMNIFICATION OF DIRECTORS AND OFFICERS
During the year, the Company paid an insurance premium to insure certain directors and officers including
Directors named in this report.
The Directors and Officers Liability insurance provides cover against all costs and expenses that may be incurred
in defending civil or criminal proceedings that fall within the scope of the indemnity and that may be brought
against the officers in their capacity as officers of the Group. The insurance policy does not contain details of
the premium paid in respect of individual officers of the Group. Disclosure of the nature of the liability cover
and the amount of the premium is subject to a confidentiality clause under the insurance policy.
The Company has not provided any insurance for an auditor of the group.
ENVIRONMENTAL REGULATION
The Group is aware of its environmental obligations and acts to ensure that its environmental commitments
are met.
The Group is not currently subject to significant environmental regulation in respect of its activities. The
Directors have considered compliance with the National Greenhouse and Energy Reporting Act 2007 which
requires entities to report annual greenhouse gas emissions and energy use. For the measurement period from
1 July 2017 to 30 June 2018 the Directors have assessed that the Company has no current reporting
requirements but may be required to report in the future.
PROCEEDINGS ON BEHALF OF THE GROUP
No person has applied for leave of Court to bring proceedings on behalf of the Group or intervene in any
proceedings to which the Group is a party for the purpose of taking responsibility on behalf of the Group for all
or any part of those proceedings.
The Group was not a party to any such proceedings during the year.
NON-AUDIT SERVICES
An amount of $Nil (2017: $ Nil) was paid to the external auditor during the year for non-audit services. The
Directors are satisfied that any non-audit services provided during the year ended 30 June 2018 did not
compromise the general principles relating to auditor independence in accordance with APES 110: Code of
Ethics for Professional Accountants set by the Accounting Professional and Ethical Standards Board.
DIRECTORS’ INTERESTS IN SECURITIES OF THE GROUP
At the date of this report the relevant interests of the Directors in shares or options over shares of the Group
are:
DIRECTOR
ORDINARY SHARES
Michael Fotios
Simon Taylor
Madani Diallo
5,500,000
5,260,000
7,111,355
OPTIONS
2,250,000
7,000,000
4,000,000
Oklo Resources Limited and its Controlled Entities
Page 23
2018 Annual Report
26
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
DIRECTORS’ REPORT
Unissued ordinary shares of the Company under option at the date of this report are as follows:
DATE OPTIONS GRANTED
EXPIRY DATE
ISSUE PRICE OF
SHARES
NUMBER UNDER OPTION
7 December 2015
27 January 2018
28 April 2016
17 June 2016
22 June 2016
11 August 2016
11 August 2016
2 November 2016
22 December 2016
21 November 2017
21 November 2017
21 November 2017
21 November 2017
24 November 2017
24 November 2017
24 November 2017
24 November 2017
24 November 2017
15 December 2017
15 December 2017
7 December 2018
27 January 2019
28 April 2019
17 June 2019
22 June 2020
11 August 2019
11 August 2020
2 November 2019
22 December 2019
21 November 2020
21 November 2020
21 November 2019
21 November 2019
24 November 2019
24 November 2020
24 November 2020
24 November 2019
24 November 2020
15 December 2019
15 December 2020
$0.15
$0.15
$0.22
$0.25
$0.30
$0.25
$0.30
$0.20
$0.20
$0.49
$0.395
$0.455
$0.345
$0.35
$0.40
$0.40
$0.35
$0.40
$0.37
$0.42
500,000
1,000,000
1,000,000
3,000,000
1,500,000
3,500,000
1,500,000
250,000
1,000,000
3,875,000
1,000,000
3,875,000
1,000,000
1,050,000
800,000
250,000
250,000
250,000
125,000
150,000
At the date of this report the Group had on issue 352,706,280 ordinary shares and 25,875,000 options over
ordinary shares.
DIRECTORS’ MEETINGS
The table below sets out the number of Directors’ meetings held during the period and the number of meetings
attended by each as a Director.
DIRECTOR
Mr. Michael Fotios
S. Taylor
M Diallo
NUMBER OF MEETINGS
ELIGIBLE TO ATTEND
4
4
4
NUMBER OF MEETINGS
ATTENDED
4
4
4
CORPORATE GOVERNANCE STATEMENT
The Company’s Corporate Governance Statement can be found on the Company’s website at the
following URL: https://www.okloresources.com/corporate/corporate-governance/.
Oklo Resources Limited and its Controlled Entities
Page 24
2018 Annual Report
27
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
DIRECTORS’ REPORT
AUDITED REMUNERATION REPORT
The information provided in this remuneration report has been audited as required under Section 308(3C)
of the Corporations Act 2001.
This report details the nature and amount of remuneration for each director of Oklo Resources Limited and
key management personnel.
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 Company and the Group, directly or indirectly, including any Director (whether Executive or otherwise)
of the parent company.
The names and positions of the KMP of the company and the Group during the financial year were:
Name
Mr. Michael Fotios
Mr Simon Taylor
Dr Madani Diallo
Mr Andrew Boyd
Position
Chairman
Managing Director
Executive Director
General Manager - Exploration
Remuneration Policy
The nature and amount of remuneration for the Non-executive Directors and executives depends on the
nature of the role and market rates for the position, with the assistance of external surveys and reports,
and taking into account the experience and qualifications of each individual. The Board ensures that the
remuneration of key management personnel is competitive and reasonable. Fees and payments to the Non-
executive Directors reflect the demands which are made on, and the responsibilities of the Directors. Non-
executive Director’s fees and payments are reviewed annually by the Board.
In undertaking a review of the performance of both directors and executives, consideration is given to the
respective performance of person during the review period; however, there are no prescribed performance
measures or hurdles connected with the level of remuneration.
Given the current size, nature and risks of the Company, incentive options have been used to attract and
retain Non-executive Directors and executives. The grant of such options is at the discretion of the Board
and subject, as appropriate, to shareholder approval. The Board believes participation in the Company’s
Incentive Option Scheme motivates key management and executives with the long-term interests of
shareholders.
The Company has not engaged the services of external remuneration consultants to advise them on
Director and executive remuneration policy. At the Company’s 2017 Annual General Meeting, the
Remuneration Report was passed by way of show of hands and no comment was made on this matter by
any attendees.
Oklo Resources Limited and its Controlled Entities
Page 25
2018 Annual Report
28
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
DIRECTORS’ REPORT
Employment Contracts of Directors and Executives
As at 30 June 2018, all Directors and all executives, other than the Non-Executive Chairman, have formal
contracts with the Company. The Non-Executive Chairman is paid director’s fees under the terms agreed
to by a directors’ resolution. By way of a board resolution at a Board meeting held on 27 July 2017, it was
resolved that with effect from 1 July 2017, the current remuneration of Non-Executive Chairman be at the
rate of $50,000 per annum. By way of a directors’ resolution dated 23 December 2013, it was resolved that
with effect from 1 July 2013, the current remuneration of Non-Executive Directors be set at $30,000 per
annum.
The terms during the past year and as at the date of this report are set out as follows:
Name
Position
Mr. Michael Fotios
Mr. Simon Taylor
Dr. Madani Diallo
Mr. Andrew Boyd
Notes:
Chairman
Managing Director
Executive Director
General Manager - Exploration
Annual Remuneration
FY 2018
$50,000
$300,0001
$229,0112
$287,1113
1. Mr Simon Taylor was a consultant from 1 July 2017 – 31 January 2018. He became an employee from 1
February 2018.
2. Dr Diallo is paid in Euro. Total amount paid in Euro was €148,500
3. Mr Boyd is paid in USD. Total amount paid in USD was USD190,500
The payment of statutory employment entitlements (such as superannuation contributions), where
applicable is in addition to the above amounts.
The non-executive directors’ fees are determined within an aggregate directors’ fee pool limit, which is
periodically recommended for approval by shareholders. The maximum currently stands at $300,000, which
was approved by shareholders at the Annual General Meeting on 23 November 2006.
In addition, during the year additional monies were paid to Delta Resource Management Pty Ltd, Geeland
Pty Ltd, Makly SA and Cairn Geoscience Limited related parties of Mr Fotios, Mr Taylor, Dr Diallo and Mr
Boyd and with respect to consultancy services provided. These amounts are included salaries and fees in
the following schedule.
On 15 June 2016 the Company and Geeland Pty Ltd entered into a services agreement for the provision of
services by Mr Simon Taylor as Managing Director of the Company (“MD Agreement”). The MD Agreement
has an effective date of 1 July 2016 and a three (3) year term, which auto renews for successive 12 month
periods. The MD Agreement provides for a monthly retainer of $23,000. The MD Agreement can be
terminated with either party giving four (4) months’ notice. On constructive termination, the MD
Agreement provides that any unvested options will immediately vest, and for the payment of a total of
twelve (12) months’ severance pay. As noted above, by way of a board resolution at a Board meeting held
on 27 July 2017, it was resolved that with effect from 1 July 2017, the remuneration pursuant to the MD
Agreement be at the rate of $300,000 per annum.
On 15 March 2018, the Company and the Managing Director entered into an executive services agreement
and with an effective date of 1 February 2018. This agreement was on substantially the same terms as the
previous MD agreement, with the addition of normal leave and superannuation entitlements.
Oklo Resources Limited and its Controlled Entities
Page 26
2018 Annual Report
29
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
DIRECTORS’ REPORT
On 19 October 2016, the Company and Makly SA entered into a services agreement for the provision of
services by Dr Madani Diallo as Exploration Director and Country Manager of the Company (“Makly
Agreement”). The Makly Agreement has an effective date of 1 October 2016 and a two (2) year term. The
Makly Agreement provides for a monthly retainer of €12,500 per month. The Makly Agreement can be
terminated with either party giving 60 days’ notice. On constructive termination, the Makly Agreement
provides that any unvested options will immediately vest, and for the payment of a total of nine (9) months’
severance pay. By way of a board resolution at a Board meeting held on 27 July 2017, it was resolved that
with effect from 1 July 2017, the remuneration pursuant to the Makly Agreement be at the rate of €13,500
(A$20,065) per month / €162,000 (A$240,785) per annum. On 12 September 2017. This arrangement was
formalised in a contract variation dated 12 September 2017.
On 15 June 2016, the Company and Cairn Geoscience Limited entered into a services agreement for the
provision of services by Andrew Boyd as a consultant of the Company (“Cairn Agreement”). The Cairn
Agreement has an effective date of 1 July 2016 and a two (2) year term. The Cairn Agreement provides for
a monthly retainer of USD5,000 per month assuming approximately 5 days work a month, with additional
days being at the rate of USD1,000 per day. The Cairn Agreement can be terminated with either party
giving 60 days’ notice. On constructive termination, the Cairn Agreement provides that in addition to the
notice period, any unvested options will immediately vest. By way of a board resolution at a Board meeting
held on 27 July 2017, it was resolved that with effect from 1 July 2017, the remuneration of Mr Boyd be at
the rate of USD132,000 per annum assuming approximately 10 days work a month, with additional days
being at the rate of USD1,100 per day. This arrangement was formalised in a contract variation dated 12
September 2017
Remuneration of Key Management Personnel
Details of the remuneration provided to the Key Management Personnel of the Group are set out in the
following tables.
Key Management Personnel of the Group 2018
SHARE BASED
PAYMENTS
TOTAL
POST
EMPLOYMENT
Superannuation
Contribution
$
SHORT-
TERM
Cash salary
& fees
$
50,0001
300,0002
229,0113
579,011
DIRECTORS
M Fotios
S Taylor
M Diallo
Total
KEY MANAGEMENT PERSONNEL
Andrew Boyd
Total
287,1114
866,122
Options
$
164,581
542,609
329,163
1,036,353
-
11,875
-
11,875
-
11,875
305,120
1,341,473
Shares
$
-
-
-
-
-
-
TOTAL
$
214,581
854,484
558,174
1,627,239
592,231
2,219,469
Performance
related
77%
64%
59%
52%
Note 1: Fees paid to Delta Resource Management Pty Ltd
Note 2: For the period 1 July 2017 to 31 January 2018, these fees paid to Geeland Pty Ltd. From 1 February 2018,
fees were paid directly to Mr Taylor.
Note 3 Fees paid to Makly SA
Note 4: Fees paid to Cairn Geoscience Limited
Oklo Resources Limited and its Controlled Entities
Page 27
2018 Annual Report
30
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
DIRECTORS’ REPORT
Key Management Personnel of the Group 2017
SHORT-
TERM
Cash salary
& fees
$
44,0001
276,0002
168,1783
6,5004
12,500
2,500
509,678
DIRECTORS
M Fotios
S Taylor
M Diallo
J Henderson
J Bond
S O’Loughlin
Total
KEY MANAGEMENT PERSONNEL
Andrew Boyd
Total
213,3785
723,056
POST
EMPLOYMENT
Superannuation
Contribution
$
-
-
-
-
1,188
237
1,425
-
1,425
SHARE BASED
PAYMENTS
TOTAL
Options
$
48,263
303,596
-
118,375
118,375
-
588,609
-
588,609
Shares
$
-
-
-
-
-
-
TOTAL
$
92,263
579,596
168,178
124,875
132,063
2,737
1,099,712
Performance
related
52%
52%
0%
95%
90%
0%
-
-
213,378
1,313,090
0%
Note 1: Fees paid to Delta Resource Management Pty Ltd
Note 2: Fees paid to Geeland Pty Ltd
Note 3 Fees paid to Makly SA
Note 4: Fees paid to Transocean Securities Pty Ltd
Note 5: Fees paid to Cairn Geoscience Limited
Share–based compensation
The Company has engaged in share-based remuneration with the Directors during the year. During the
year ended 30 June 2018, the Company granted the following persons or their nominees, options.
Grant
Date
Vesting
Date
Expiry
Date
Exercise
Price
Number
Simon Taylor
Michael Fotios
Simon Taylor
Madani Diallo
Michael Fotios
Simon Taylor
Simon Taylor
11 Aug 16
21 Nov 17
21 Nov 17
21 Nov 17
21 Nov 17
21 Nov 17
21 Nov 17
11 Aug 17
21 Nov 17
21 Nov 17
21 Nov 17
21 Nov 17
21 Nov 17
21 Nov 17
11 Aug 20
21 Nov 19
21 Nov 19
21 Nov 19
21 Nov 20
21 Nov 20
21 Nov 20
$0.30
$0.455
$0.455
$0.455
$0.49
$0.49
$0.49
1,500,000
625,000
2,000,000
1,250,000
625,000
2,000,000
1,250,000
Value Per
Option at
Grant Date
$0.0947
$0.1195
$0.1195
$0.1195
$0.1438
$0.1438
$0.1438
At a meeting of Members of the Company held on 1 August 2016, approval was granted for the issue of a
of 1,500,000 options to the Mr Taylor with a strike price of $0.30, a 12 month vesting period with an expiry
date of 3 years after the date of vesting (11 August 2020).
At a meeting of Members of the Company held on 21 November 2017, approval was granted for the issue
of a total of 3,875,000 options to the Directors (625,000 to Mr Fotios, 2,000,000 to Mr Taylor and 1,250,000
to Dr Diallo) with a strike price of $0.455 with an expiry date of 2 years after the date of issue (21 November
2019).
At a meeting of Members of the Company held on 21 November 2017, approval was granted for the issue
of a total of 3,875,000 options to the Directors (625,000 to Mr Fotios, 2,000,000 to Mr Taylor and 1,250,000
to Dr Diallo) with a strike price of $0.49 with an expiry date of 3 years after the date of issue (21 November
2020).
Oklo Resources Limited and its Controlled Entities
Page 28
2018 Annual Report
31
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
DIRECTORS’ REPORT
The grants of options to the Directors were not linked to performance; however, the Board considered the
issues of the options to be reasonable in the circumstances given the Company’s size, stage of development
and need to attract directors and key management personnel of a high calibre while still maintaining cash
reserves.
Options granted carry no dividend or voting rights. When exercisable, each option is convertible into one
ordinary share. The assessed fair value at grant date of options granted to the individuals is allocated equally
over the period from the 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 Binomial Methodology option pricing
model that takes into account the exercise price, the terms 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 rate for the term of the option.
The options were issued for Nil consideration and the model inputs for the options granted during the year
ended 30 June 2018 included:
Exercise price
Grant date
Expiry date
Share price at grant date
Expected price volatility
Risk-free rate
Discount for 12 month
vesting period
Options with Expiry
Date of
$0.30
11 Aug 16
11 Aug 20
$0.225
85%
1.75%
Options with Expiry
Date of
$0.445
21 Nov 17
21 Nov 19
$0.335
80%
1.5%
Options with Expiry
Date of
$0.49
21 Nov 17
21 Nov 20
$0.335
80%
1.50%
25%
N/A
N/A
Other transactions with Key Management Personnel
Transactions with other related parties are made on normal commercial terms and conditions and at
market rates. Outstanding balances are unsecured and are repayable in cash.
(i) Makly SA and M-Consulting sarl (Dr Madani Diallo – Executive Director
M-Consulting is a company controlled by Dr Madani Diallo and which, from time to time, provides
geological consulting services in Mali.
Exploration/Geological consulting services in Mali1,2
2018
$
54,126
54,126
2017
$
79,128
79,128
Note 1: These amounts are not included in the key management personnel remuneration and are incurred
directly by subsidiary companies (Oklo Resources Mali I n FY18 and Africa Mining in FY17).
Note 1: All amounts are included recorded as part of exploration expenditure on the statement of financial
position.
The total amount due to M-Consulting sarl as at 30 June 2018 was $54,126.
Oklo Resources Limited and its Controlled Entities
Page 29
2018 Annual Report
32
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
DIRECTORS’ REPORT
(ii)
Transocean Securities Pty Ltd (Mr. James Henderson – Non-Executive Chairman until 29 July 2016,
resigned 24 August 2016)
Transocean Securities Pty Ltd, a company of which Mr James Henderson is a director, provides the
Group with the services of Mr Henderson as director, and office accommodation.
A summary of the total fees paid to Transocean Securities Pty Ltd for the year ended 30 June 2018
is as follows
Office rent and costs
2018
$
-
-
2017
$
2,080
2,080
The total amount due to Transocean Securities Pty Ltd as at 30 June 2018 was $Nil (2017 - $Nil).
(iii)
Aggregate amounts of each of the above types of other transactions with key management
personnel of Oklo Resources Limited:
Amounts recognised as expense
Office rent and costs
Amounts capitalised as part of exploration expenditure
Geological Consulting fees
2018
$
2017
$
-
-
54,126
54,126
2,080
2,080
79,128
79,128
Equity Instruments Held by Key Management Personnel
a) Shareholdings - Number of shares held by key management personnel:
2018
Directors
Michael Fotios
Simon Taylor
Madani Diallo
Total
KEY MANAGEMENT PERSONNEL
Andrew Boyd
Total
Balance
30 Jun 2017
4,200,000
2,760,000
7,111,355
14,071,355
363,333
14,434,688
Acquisitions
Disposals
1,300,000
2,500,000
-
3,800,000
566,667
4,366,667
-
-
-
-
-
-
Balance
30 Jun 2018
5,500,000
5,260,000
7,111,355
17,871,355
930,000
18,734,688
Oklo Resources Limited and its Controlled Entities
Page 30
2018 Annual Report
33
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
DIRECTORS’ REPORT
(b) Options and Rights Holdings - Number of Options held by key management personnel
Listed Options to expire on 30 June 2017 at an exercise price of $0.125
Directors
Balance
01.07.17
Granted as
compensation
Lapsed
Vested and
Exercisable
Unvested
Balance
30.06.18
Simon Taylor
Andrew Boyd
Total
Note 1 – Exercised on 30 June 2017 at the exercise price, however the shares relating to the exercise of these
options was not completed until July 2018
500,000
66,667
566,667
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Disposals/
Acquired/
exercised
(500,000)1
(66,667)1
566,6670)
Options to expire on 8 December 2017 at an exercise price of $0.10
Directors
Balance
01.07.17
Granted as
compensation
Lapsed
Simon Taylor
Total
Note 1 – Exercised on 8 December 2017 at the exercise price
1,000,000
1,000,000
-
-
-
-
Options to expire on 18 May 2018 at an exercise price of $0.10
Directors
Balance
01.07.17
Granted as
compensation
Lapsed
500,000
Simon Taylor
500,000
Total
Note 1 – Exercised on 10 May 2018 at the exercise price
-
-
-
-
Options to expire on 18 May 2018 at an exercise price of $0.15
Directors
Balance
01.07.17
Granted as
compensation
Lapsed
500,000
Simon Taylor
500,000
Total
Note 1 – Exercised on 10 May 2018 at the exercise price
-
-
-
-
Disposals/
Acquired/
exercised
(1,000,000)1
(1,000,000)
Disposals/
Acquired/
exercised
(500,000)1
(500,000)
Disposals/
Acquired/
exercised
(500,000)1
(500,000)
Vested and
Exercisable
Unvested
Balance
30.06.18
-
-
-
-
-
-
Vested and
Exercisable
Unvested
Balance
30.06.18
-
-
-
-
-
-
Vested and
Exercisable
Unvested
Balance
30.06.18
-
-
-
-
-
-
Options to expire on 25 March 2018 at an exercise price of $0.10
Directors
Balance
01.07.17
Granted as
compensation
Lapsed
500,000
Andrew Boyd
500,000
Total
Note 1 – Exercised on 22 March 2018 at the exercise price
-
-
-
-
Disposals/
Acquired/
exercised
(500,000)1
(500,000)
Vested and
Exercisable
Unvested
Balance
30.06.18
-
-
-
-
-
-
Options to expire on 7 December 2018 at an exercise price of $0.15
Directors
Andrew Boyd
Total
Balance
01.07.17
500,000
500,000
Granted as
compensation
Lapsed
Disposals
-
-
-
-
-
-
Vested and
Exercisable
500,000
500,000
Unvested
-
-
Balance
30.06.18
500,000
500,000
Oklo Resources Limited and its Controlled Entities
Page 31
2018 Annual Report
34
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
DIRECTORS’ REPORT
Options to expire on 18 June 2019 at an exercise price of $0.25
Directors
Madani
Diallo
Andrew Boyd
Total
Balance
01.07.17
1,000,000
1,000,000
2,000,000
Granted as
compensation
Lapsed
Disposals
-
-
-
-
-
-
-
-
-
Vested and
Exercisable
1,000,000
1,000,000
2,000,000
Unvested
-
-
-
Balance
30.06.18
1,000,000
1,000,000
2,000,000
Options to expire on 11 August 2019 at an exercise price of $0.25
Directors
Simon Taylor
Total
Balance
01.07.17
1,500,000
1,500,000
Granted as
compensation
Lapsed
Disposals
-
-
-
-
-
-
Vested and
Exercisable
1,500,000
1,500,000
Unvested
-
-
Balance
30.06.18
1,500,000
1,500,000
Options to expire on 22 December 2019 at an exercise price of $0.20
Directors
Michael
Fotios
Total
Balance
01.07.17
1,000,000
1,000,000
Granted as
compensation
Lapsed
Disposals
-
-
-
-
-
-
Options to expire on 22 June 2020 at an exercise price of $0.30
Directors
Madani
Diallo
Andrew Boyd
Total
Balance
01.07.17
500,000
1,000,000
1,500,000
Granted as
compensation
Lapsed
Disposals
-
-
-
-
-
-
-
-
-
Vested and
Exercisable
1,000,000
1,000,000
Vested and
Exercisable
500,000
1,000,000
1,500,000
Unvested
-
-
Unvested
-
-
-
Options to expire on 11 August 2020 at an exercise price of $0.30
Directors
Simon Taylor
Total
Balance
01.07.17
1,500,000
1,500,000
Granted as
compensation
Lapsed
Disposals
-
-
-
-
Vested and
Exercisable
1,500,000
1,500,000
Unvested
-
-
Options to expire on 21 November 2019 at an exercise price of $0.455
Directors
Michael
Fotios
Simon Taylor
Madani
Diallo
Total
Balance
01.07.17
Granted as
compensation
Lapsed
Disposals
Vested and
Exercisable
Unvested
-
-
-
-
625,000
2,000,000
1,250,000
3,875,000
-
-
-
-
-
-
-
-
625,000
2,000,000
1,250,000
3,875,000
-
-
-
-
Options to expire on 21 November 2019 at an exercise price of $0.345
Directors
Andrew Boyd
Total
Balance
01.07.17
-
-
Granted as
compensation
1,000,000
1,000,000
Lapsed
Disposals
-
-
-
-
Vested and
Exercisable
1,000,000
1,000,000
Unvested
-
-
Balance
30.06.18
1,000,000
1,000,000
Balance
30.06.18
500,000
1,000,000
1,500,000
Balance
30.06.18
1,500,000
1,500,000
Balance
30.06.18
625,000
2,000,000
1,250,000
3,875,000
Balance
30.06.18
1,000,000
1,000,000
Oklo Resources Limited and its Controlled Entities
Page 32
2018 Annual Report
35
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
DIRECTORS’ REPORT
Options to expire on 21 November 2020 at an exercise price of $0.49
Directors
Michael
Fotios
Simon Taylor
Madani
Diallo
Total
Balance
01.07.17
Granted as
compensation
Lapsed
Disposals
Vested and
Exercisable
Unvested
-
-
-
-
625,000
2,000,000
1,250,000
3,875,000
-
-
-
-
-
-
-
-
625,000
2,000,000
1,250,000
3,875,000
-
-
-
-
Options to expire on 21 November 2010 at an exercise price of $0.395
Directors
Andrew Boyd
Total
Balance
01.07.17
-
-
Granted as
compensation
1,000,000
1,000,000
Lapsed
Disposals
-
-
-
-
Vested and
Exercisable
1,000,000
1,000,000
Unvested
-
-
Balance
30.06.18
625,000
2,000,000
1,250,000
3,875,000
Balance
30.06.18
1,000,000
1,000,000
Securities Trading Policy
The Company’s security trading policy provides guidance on acceptable transactions in dealing in the
Company’s various securities, including shares, debt notes and options. The Company’s security trading
policy defines dealing in company securities to include:
(a) Subscribing for, purchasing or selling Company Securities or entering into an agreement to do
any of those things;
(b) Advising, procuring or encouraging another person (including a family member, friend,
associate, colleague, family company or family trust) to trade in Company Securities; and
(c) Entering into agreements or transactions which operate to limit the economic risk of a person’s
holdings in Company Securities.
The securities trading policy details acceptable and unacceptable times for trading in Company Securities
including detailing potential civil and criminal penalties for misuse of “inside information”. The Directors
must not deal in Company Securities without providing written notification to the Chairman. The Chairman
must not deal in Company Securities without the prior approval of the Chief Executive Officer. The Directors
are responsible for disclosure to the market of all transactions or contracts involving the Company’s shares.
Engagement of remuneration consultants
During the financial year, the Company did not engage any remuneration consultants to review the Key
Management Personnel remuneration for the year ended 30 June 2018.
Voting of shareholders at last year’s annual general meeting
The Company received more than 96% of “yes” votes on its remuneration report for the 2017 financial
year. The company did not receive any specific feedback at the AGM or throughout the year on its
remuneration practices.
This is the end of the Audited Remuneration Report.
Oklo Resources Limited and its Controlled Entities
Page 33
2018 Annual Report
36
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
AUDITOR’S INDEPENDENCE DECLARATION
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY NEIL SMITH TO THE DIRECTORS OF OKLO RESOURCES LIMITED
As lead auditor of Oklo Resources Limited for the year ended 30 June 2018, I declare that, to the best
of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Oklo Resources Limited and the entities it controlled during the period.
Neil Smith
Director
BDO Audit (WA) Pty Ltd
Perth, 28 September 2018
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation other than for
the acts or omissions of financial services licensees
Oklo Resources Limited and its Controlled Entities
Page 34
2018 Annual Report
37
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2018
Note
2018
$
2017
$
Continuing Operations
Other income
Employee benefits expense / Directors Fees
Superannuation
Provision for employee benefits
Share based payments expense
Professional fee expense
Legal expense
Administration expense
Investor relations expenses
Travel and accommodation expense
Occupancy expense
Interest Expense
Foreign exchange
Depreciation expense
Loss from continuing operations
Finance income
Finance costs
Net finance income
Loss before income tax
Income tax expense
Loss after income tax
Net loss for the year
Other comprehensive income
Foreign currency translation differences for foreign
operations
Other comprehensive income for the year,
net of income tax
8.1
1.1
1.2
-
-
(350,000)
(11,875)
(26,648)
(821,044)
(109,000)
(22,621)
(221,489)
(144,788)
(128,304)
(36,076)
(1,652)
(70,085)
(368)
(1,943,950)
140,459
-
140,459
-
-
(342,925)
-
-
(588,609)
(94,000)
(1,407)
(180,087)
(148,742)
(109,294)
(33,980)
-
(137,495)
-
(1,636,539)
122,386
-
122,386
(1,803,491)
-
(1,514,153)
-
(1,803,491)
(1,514,153)
(1,803,491)
(1,514,153)
659,075
290,079
659,075
290,079
Total comprehensive loss for the year
(1,144,416)
(1,224,074)
Oklo Resources Limited and its Controlled Entities
Page 35
2018 Annual Report
38
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME (Cont.)
FOR THE YEAR ENDED 30 JUNE 2018
Loss attributable to:
Owners of the Company
Non-Controlling Interest
Total Comprehensive Loss attributable to:
Owners of the Company
Non-Controlling Interest
Note
2018
$
2017
$
8.4
8.4
(1,803,491)
-
(1,803,491)
659,075
-
(1,144,416)
(1,514,153)
-
(1,514,153)
290,079
-
(1,224,074)
Loss and diluted loss per share for loss attributable
to the ordinary equity holders of the company:
1.3
(0.006)
(0.006)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in
conjunction with the accompanying notes
Oklo Resources Limited and its Controlled Entities
Page 36
2018 Annual Report
39
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2018
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
2018
2017
Note
$
$
2.1
2.2
18,366,296
197,267
14,792,611
143,615
TOTAL CURRENT ASSETS
18,563,563
14,936,226
NON-CURRENT ASSETS
Property, plant and equipment
Exploration and evaluation expenditure
3.1
3.2
934,596
33,245,336
299,688
19,042,353
34,179,932
19,342,041
TOTAL ASSETS
52,743,495
34,278,267
CURRENT LIABILITIES
Trade and other payables
2.3
2,645,389
1,140,631
TOTAL CURRENT LIABILITIES
2,645,389
1,140,631
NON-CURRENT LIABILITIES
Provisions
2.4
26,649
TOTAL NON-CURRENT LIABILITIES
26,649
-
-
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserves
Accumulated losses
Non-controlling interest
TOTAL EQUITY
2,672,038
1,140,631
50,071,457
33,137,636
4.1
4.2
8.4
61,925,515
4,386,174
(16,240,232)
-
45,499,491
2,074,886
(14,436,741)
-
50,071,457
33,137,636
The above Consolidated Statement of Financial Position should be read in conjunction with the
accompanying notes.
Oklo Resources Limited and its Controlled Entities
Page 37
2018 Annual Report
40
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2018
Balance at 1 July 2017
Loss for year
Other comprehensive income
Exchange differences on translation of
foreign operation
Total other comprehensive income
Total comprehensive loss for the year
Transactions with owners in their
capacity of owners
Contributions of equity, net of
transaction costs
Share based payments
Contributed
Equity
$
Accumulated
losses
$
Reserves
$
Total
$
45,499,491
-
(14,436,741)
(1,803,491)
2,074,886
-
33,137,636
(1,803,491)
-
-
-
-
-
(1,803,491)
659,075
659,075
659,075
659,075
659,075
(1,144,416)
16,426,024
-
-
-
-
1,652,213
16,426,024
1,652,213
Balance at 30 June 2018
61,925,515
(16,240,232)
4,386,174
50,071,457
Balance at 1 July 2016
Loss for year
Other comprehensive income
Exchange differences on translation of
foreign operation
Total other comprehensive income
Total comprehensive loss for the year
Transactions with owners in their
capacity of owners
Non-controlling interest
Contributions of equity, net of
transaction costs
Share based payments
Contributed
Equity
$
Accumulated
losses
$
Reserve
$
Total
$
34,080,133
-
(12,922,588)
(1,514,153)
1,059,931
-
22,217,476
(1,514,153)
-
-
-
-
11,419,358
-
-
-
(1,514,153)
290,079
290,079
290,079
290,079
290,079
(1,224,074)
-
-
-
-
-
-
724,876
11,419,358
724,876
Balance at 30 June 2017
45,499,491
(14,436,741)
2,074,886
33,137,636
The above Consolidated Statement of Changes in Equity should be read in conjunction with the
accompanying notes.
Oklo Resources Limited and its Controlled Entities
Page 38
2018 Annual Report
41
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE YEAR ENDED 30 JUNE 2018
CASH FLOW FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Interest received
Note
2018
2017
$
$
(1,060,519)
138,807
(1,234,153)
122,386
Net cash outflow in operating activities
2.1
(921,712)
(1,111,767)
CASH FLOW FROM INVESTING ACTIVITIES
Payment for security deposit
Payments for exploration
Payments for plant and equipment
Payment for software
Payments for acquisition of Licences
-
(10,425,290)
(678,087)
(60,632)
(277,212)
(19,140)
(5,790,604)
(270,283)
-
-
Net cash outflow in investing activities
(11,441,221)
(6,080,027)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from share issues (net of share issue costs)
Net cash provided by financing activities
15,932,348
15,932,348
11,395,470
11,395,470
Net increase in cash held
3,569,415
4,230,676
Cash at beginning of the year
14,792,611
10,831,716
Foreign exchange variances on cash
4,270
(242,781)
Cash at end of the year
2.1
18,366,296
14,792,611
The above Consolidated Statement of Cash Flows should be read in conjunction with the
accompanying notes.
Oklo Resources Limited and its Controlled Entities
Page 39
2018 Annual Report
42
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
ABOUT THIS REPORT
Oklo Resources Limited is a company limited by shares incorporated and domiciled in Australia whose
shares are publicly traded on the Australian Securities Exchange. The nature of the operations and
principal activities of the Group are described in the directors' report.
The financial report of Oklo Resources Limited (the Company) and its subsidiaries (collectively, the Group)
for the year ended 30 June 2018 was authorised for issue in accordance with a resolution of the Directors
on 28 September 2018.
Basis of preparation
This financial report is a general purpose financial report, prepared by a for-profit entity, which:
• Has been prepared in accordance with the requirements of the Corporations Act 2001, Australian
Accounting Standards and other authoritative pronouncements of the Australian Accounting
Standards Board (AASB) and International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB);
• Has been prepared on a historical cost basis, as modified by the revaluation of available-for-sale
financial assets, financial assets and liabilities (including derivative instruments) at fair value
through profit or loss and certain classes of property, plant and equipment;
• Presents comparative information where required for consistency with the current year's
presentation;
• Adopts all new and amended Accounting Standards and Interpretations issued by the AASB that
are relevant to the operations of the Group and effective for reporting periods beginning on or
after 1 July 2017; and
• Does not early adopt Accounting Standards and Interpretations that have been issued or
amended but are not yet effective with the exception of AASB 9 Financial Instruments (December
2010) as amended by 2013-0 (AASB 9 (2013)) including consequential amendments to other
standards which was adopted on 1 July 2016.
This financial report has been re-designed with the aim of streamlining and improving readability. The
notes to the consolidated financial statements have been organised into logical groupings to help users
find and understand the information. Where possible, related information has been provided in the same
note.
Oklo Resources Limited and its Controlled Entities
Page 40
2018 Annual Report
43
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
Key estimates and judgements
In the process of applying the Group's accounting policies, management has made a number of
judgements and applied estimates of future events. The areas involving a higher degree of judgement or
complexity, or areas where assumptions and estimates are significant to the financial statements, are
disclosed in the following notes:
Note 1.2 Income tax expense
Note 3.1 Property, plant and equipment
Note 3.2 Exploration and evaluation expenditure
Note 8.1 Share-based payments
Basis of consolidation
The consolidated financial statements comprise the financial statements of the Group. A list of controlled
entities (subsidiaries) at year end is contained in Note 6.1.
The financial statements of subsidiaries are prepared for the same reporting period as the parent entity,
using consistent accounting policies.
In preparing the consolidated financial statements, all inter-company balances and transactions, income
and expenses and profit or losses resulting from intra-Group transactions have been eliminated.
Subsidiaries are consolidated from the date on which control is obtained to the date on which control is
disposed. The acquisition of subsidiaries is accounted for using the acquisition method of accounting.
Oklo Resources Limited and its Controlled Entities
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OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
CONTENTS OF THE NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
PAGE
1. FINANCIAL PERFORMANCE
1.1. FINANCE INCOME
1.2. INCOME TAX
1.3. LOSS PER SHARE
1.4. SEGMENT INFORMATION
2. WORKING CAPITAL PROVISIONS
2.1. CASH AND CASH EQUIVALENTS
2.2. TRADE AND OTHER RECEIVABLES
2.3. TRADE AND OTHER PAYABLES
2.4. PROVISIONS
3.
INVESTED CAPITAL
3.1. PROPERTY, PLANT AND EQUIPMENT
3.2. EXPLORATION AND EVALUATION
4. CAPITAL STRUCTURE AND FINANCING ACTIVITIES
4.1. CONTRIBUTED EQUITY
4.2. RESERVES
5. RISK
5.1. FINANCIAL RISK MANAGEMENT
6. GROUP STRUCTURE
6.1. SUBSIDIARIES
7. UNRECOGNISED ITEMS
7.1. COMMITMENTS
7.2. CONTINGENCIES
7.3. EVENTS OCCURRING AFTER THE REPORTING PERIOD
8. OTHER INFORMATION
8.1. SHARE-BASED PAYMENTS
8.2. RELATED PARTY TRANSACTIONS
8.3. PARENT ENTITY FINANCIAL INFORMATION
8.4. NON-CONTROLLING INTERESTS INSUBSIDIARY
8.5. REMUNERATION OF AUDITIORS
8.6. OTHER ACCOUNTING POLICIES
46
46
47
48
49
50
50
51
51
52
53
53
54
55
55
58
58
58
64
64
65
65
65
66
67
67
74
75
76
77
77
Oklo Resources Limited and its Controlled Entities
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OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
1. FINANCIAL PERFORMANCE
1.1. FINANCE INCOME
Interest revenue
2018
$
140,459
2017
$
122,386
Accounting Policy
Interest revenue
Interest revenue is recognised on a time proportionate basis that takes into account the effective
yield on the financial asset.
1.2. INCOME TAX
Current income tax expense/(benefit)
Deferred income tax expense/(benefit)
Total income tax expense/(benefit)
Income tax expense differs to the standard rate
of corporation tax as follows:
2018
$
2017
$
-
-
-
-
-
-
Accounting loss before taxation
(1,803,491)
(1,514,153)
Tax on loss at standard rate at 27.5% (2017:
27.5%)
Tax effect of permanent differences
Previously unrecognised timing differences
Tax losses not recognised
Income tax expense
Deferred tax assets not recognised
Temporary differences – P&L
Temporary Differences - Equity
Income tax losses
(495,960)
410,342
(25,453)
111,071
-
105,877
2,724,021
2,829,898
(416,392)
274,882
(49,773)
191,283
-
49,773
-
2,365,970
2,415,743
Key estimates and judgements
The recoupment of tax losses carried forward as at 30 June 2018 are contingent upon the
company deriving assessable income of a nature and of an amount sufficient to enable the
benefit from the losses to be realised; the conditions for deductibility imposed by tax legislation
continuing to be complied with; and there being no changes in tax legislation which would
adversely affect the company from realising the benefits from the losses.
Oklo Resources Limited and its Controlled Entities
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OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
1.2 INCOME TAX (CONT)
Accounting policy
Current tax
Current tax is calculated by reference to the amount of income taxes payable or recoverable in
respect of the taxable profit or tax loss for the period. It is calculated using tax rates and tax laws
that have been enacted or substantively enacted by reporting date. Current tax for current and
prior periods is recognised as a liability (or asset) to the extent that it is unpaid (or refundable).
Deferred tax
Deferred tax is accounted for using the comprehensive liability method in respect of temporary
differences arising from differences between the carrying amount of assets and liabilities in the
financial statements and the corresponding tax base of those items.
In principle, deferred tax liabilities are recognised for all taxable temporary differences. Deferred
tax assets are recognised to the extent that it is probable that sufficient taxable amounts will be
available against which deductible temporary differences or unused tax losses and tax offsets
can be utilised. However, deferred tax assets and liabilities are not recognised if the temporary
differences giving rise to them arise from the initial recognition of assets and liabilities (other
than as a result of a business combination) which affects neither taxable income nor accounting
profit. Furthermore, a deferred tax liability is not recognised in relation to taxable temporary
differences arising from goodwill.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments
in subsidiaries, branches, associates and joint ventures except where the consolidated entity is
able to control the reversal of the temporary differences and it is probable that the temporary
differences will not reverse in the foreseeable future. Deferred tax assets arising from deductible
temporary differences associated with these investments and interests are only recognised to
the extent that it is probable that there will be sufficient taxable profits against which to utilise
the benefits of the temporary differences and they are expected to reverse in the foreseeable
future.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to
the period(s) when the asset and liability giving rise to them are realised or settled, based on tax
rates (and tax laws) that have been enacted or substantively enacted by reporting date. The
measurement of deferred tax liabilities and assets reflects the tax consequences that would
follow from the manner in which the consolidated entity expects, at the reporting date, to
recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same
taxation authority and the company intends to settle its current tax assets and liabilities on a
net basis.
Current and deferred tax for the year
Current and deferred tax is recognised as an expense or income in the profit or loss, except when
it relates to items credited or debited in other comprehensive income or directly to equity, in
which case the deferred tax is also recognised in other comprehensive income or directly in
equity, or where it arises from the initial accounting for a business combination, in which case it
is taken into account in the determination of goodwill or excess.
Oklo Resources Limited and its Controlled Entities
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OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
1.3. LOSS PER SHARE
Basic loss per share – cents per share
The following reflects the loss and share data
used in the calculations of basic loss per share
and diluted loss per share:
Net loss
Weighted average number of shares
outstanding:
Weighted average number of ordinary shares
used in calculating basic earnings per share:
Weighted average number of ordinary shares
used in calculating diluted earnings per share:
2018
(0.006)
2017
(0.006)
$ (1,803,491)
$ (1,514,153)
312,951,033
246,786,310
N/A
N/A
Classification of securities
Diluted earnings per share is calculated after classifying all options on issue and all ownership
based remuneration scheme shares remaining uncovered at 30 June 2018 as potential ordinary
shares. As at 30 June 2018, the company has on issue 25,875,000 options over unissued capital.
Diluted loss per share has not been calculated as the Company made a loss for the year and the
impact would be to reduce the loss per share.
Conversions, calls, subscriptions or issues after 30 June 2018
There have not been any conversions, calls, subscriptions or other share issues after 30 June 2018.
Accounting Policy
Loss per share
Basic earnings per share is determined by dividing the profit from ordinary activities after related
income tax expense and after preference dividends by the weighted average number of ordinary
shares outstanding during the year.
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 shares assumed to
have been issued for no consideration in relation to dilutive potential ordinary shares.
Oklo Resources Limited and its Controlled Entities
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OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
1.4. SEGMENT INFORMATION
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 operating segments, has been identified
as the Board of Directors of Oklo Resources Limited.
At 30 June 2018 the segment information reported was analysed on the basis of geographical
Region (Australia and Mali). During the year to 30 June 2018, the Group’s management reporting
has remained unchanged. Management has determined that the Company has two reportable
segments, being mineral exploration in Mali and operations in Australia.
Information regarding these segments is presented below. The accounting policies of the
reportable segments are the same as the Group’s accounting policies.
The following is an analysis of the Group’s revenue and results by reportable segment:
Australia
2018
$
-
2017
$
-
(1,943,950)
140,459
(1,636,539)
122,386
-
-
(1,803,491)
(1,514,153)
Mali
2018
$
2017
$
-
-
-
-
-
-
Group
2018
$
-
(1,943,950)
140,459
2017
$
-
(1,636,539)
-
122,386
-
(1,803,491)
(1,514,153)
(1,803,491)
(1,514,153)
Segment revenue
Other Expenses
Net Finance
Income
Exploration
expense
Segment result
Loss before tax
The following is an analysis of the Group’s assets by reportable operating segment:
Segment
assets
Australia
Mali
Total assets
30 June 2018
30 June 2017
$
18,462,704
34,280,791
52,743,495
$
14,742,535
19,535,732
34,278,267
The following is an analysis of the Group’s liabilities by reportable operating segment:
Segment liabilities
Australia
Mali
Total liabilities
30 June 2018
114,314
2,557,724
2,672,038
30 June 2017
$
91,138
1,049,493
1,140,631
Oklo Resources Limited and its Controlled Entities
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OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
2. WORKING CAPITAL PROVISIONS
2.1. CASH AND CASH EQUIVALENTS
Cash at bank
Total Cash at bank
Reconciliation of Loss after Income Tax to net cash
flows from operating activities:
Loss after income tax
Non-cash flows from continuing operations:
Depreciation
Foreign exchange movements
Provision for employee benefits
Shares based payments
Loss on forward foreign exchange contracts
Changes in assets and liabilities:
(Increase) / decrease in receivables
Increase / (decrease) in payables
Note
2018
$
2017
$
18,366,296
18,366,296
5.2
14,792,611
14,792,611
(1,803,491)
(1,514,153)
368
71,045
26,648
821,044
-
-
-
-
588,609
(121,774)
(27,529)
(9,797)
3,164
(67,613)
Net cash (used in)/generated by operating activities
(921,712)
(1,111,767)
Accounting Policy
For the purpose of the statement of cash flows, cash includes cash on hand and in banks and at call
deposits with banks or financial institutions.
Non-Cash Investing and Financing Activities
During the year, the only non-cash investing and financing activities related to the issue of options by
the Company. Full details of the options issued during the year are set out in Note 4.2 and, as it
relates to share-based payments, Note 8.1.
Oklo Resources Limited and its Controlled Entities
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OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
2.2. TRADE AND OTHER RECEIVABLES
Current
Other debtors
Security deposit
GST Receivable
Note
2018
$
79,959
19,140
98,168
197,267
5.2
2017
$
124,475
19,140
-
143,615
Accounting Policy
Trade and other receivable assets that are held for collection of contractual cash flows where those
cash flows represent solely payments of principal and interest are measured at amortised cost. Interest
income from these financial assets is included in finance income using the effective interest rate
method. Any gain or loss arising on derecognition is recognised directly in profit or loss and presented
in other gains/(losses), together with foreign exchange gains and losses. Impairment losses are
presented as separate line items in the statement of profit or loss.
The Group assesses on a forward looking basis the expected credit losses associated with its financial
assets carried at amortised cost. The impairment methodology applied depends on whether there has
been a significant increase in credit risk. For trade receivables, the Group applies the simplified
approach permitted by AASB 9, which requires expected lifetime losses to be recognised from initial
recognition of the receivables.
2.3. TRADE AND OTHER PAYABLES
Current
Trade payables
Accrued expenses
PAYG Taxes Payable
2018
$
1,962,203
654,611
28,575
2,645,389
2017
$
956,371
184,260
-
1,140,631
Accounting Policy
Trade payables and other accounts payable are recognised when the consolidated entity becomes
obliged to make future payments resulting from the purchase of goods and services.
Oklo Resources Limited and its Controlled Entities
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OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
2.4. PROVISIONS
Current
Provision for Employee Benefits
2018
$
26,649
26,649
2017
$
-
-
Accounting Policy
Short-term employee benefits are benefits, other than termination 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. Examples of such benefits include wages and salaries, annual leave, non-monetary benefits
and accumulating sick leave. Short-term employee benefits are measured at the undiscounted
amounts expected to be paid when the liabilities are settled.
3.
INVESTED CAPITAL
3.1. PROPERTY, PLANT AND EQUIPMENT
Office and field equipment:
At cost
Accumulated depreciation
Software:
At cost
Accumulated Depreciation
Motor vehicles
At cost
Accumulated depreciation
Land and buildings:
At cost
Accumulated depreciation
Total property, plant & equipment – written down value
2018
$
596,549
(242,314)
354,235
90,089
(42,429)
47,660
498,278
(325,533)
172,745
412,185
(52,229)
359,956
934,596
2017
$
334,741
(183,333)
151,408
-
-
-
292,372
(292,372)
-
172,863
(24,583)
148,280
299,688
Oklo Resources Limited and its Controlled Entities
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OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
3.1 PROPERTY PLANT AND EQUIPMENT (CONT.)
Movements in carrying amounts
2018
Opening net book value
Additions
Disposals
Depreciation capitalised to
exploration and evaluation
asset
Depreciation Expense
Exchange differences
Balance at 30 June 2018
2017
Opening net book value
Additions
Disposals
Depreciation capitalised to
exploration and evaluation
asset
Exchange differences
Balance at 30 June 2017
Office and field
equipment
$
151,408
249,473
-
Software
$
-
60,632
-
Motor
Vehicles
$
-
195,626
-
Land and
Buildings
$
148,280
232,987
-
(33,644)
-
10,763
172,745
$
9,680
-
-
(27,646)
-
6,335
359,956
$
24,210
133,053
-
(58,613)
(368)
12,335
354,235
$
27,107
137,237
-
(16,824)
3,888
151,408
(14,006)
-
1,034
47,660
$
-
-
-
-
-
-
(9,197)
(483)
-
(13,008)
4,025
148,280
(39,029)
7,430
299,688
Total
$
299,688
738,718
-
(133,909)
(368)
30,467
934,596
$
60,997
270,290
-
Key estimates and judgements (PPE)
The estimations of useful lives, residual values and depreciation methods require significant
management judgements and are regularly reviewed. If they need to be modified, the depreciation and
amortisation expense is accounted for prospectively from the date of the assessment until the end of
the revised useful life (for both the current and future years).
Accounting Policy
Each class of property, including land, buildings, plant and equipment is carried at cost less, where
applicable, any accumulated depreciation.
Depreciation
Depreciation is provided on a straight line basis on all property, plant and equipment, other than
freehold land. This is done over the useful lives of the asset to the Company commencing from the time
the asset is held ready for use.
The depreciation periods used for each class of depreciable assets are:
Class of fixed asset
Plant and equipment
Software
Office equipment
Motor vehicles
Buildings
Depreciation period
5 years
3 years
5 years
5 years
10 years
Oklo Resources Limited and its Controlled Entities
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OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
3.2. EXPLORATION AND EVALUATION
At written down value
Opening net book amount
Acquisitions
Additions / Expenditure
Foreign exchange differences
Closing net book amount
2018
$
2017
$
33,245,336
19,042,353
19,042,353
779,996
12,815,739
607,248
33,245,336
11,823,632
-
6,941,257
277,464
19,042,353
The Group has recognised an impairment of $Nil (2017: $Nil) with respect to the carrying value of
capitalised exploration and evaluation expenditure.
During the year, the Company acquired interests in the Kouroufing and Kandiole projects on the
following terms:
Kouroufing
On 1 November 2017, Oklo entered into an option agreement to acquire 100% ownership of the
Kouroufing Permit on the following terms:
1. Payment of 30,000,000 FCFA (€46,000, A$70,599) on execution of the Agreement.
2. Subject to the payment set out in 1 and a minimum expenditure totalling €117,000 (A$184,659) in
the first year, Oklo may at its sole discretion terminate the Agreement at any time prior to the first
anniversary by giving ten (10) days written notice to Kouroufing.
3. On the first anniversary of the Agreement, Oklo shall issue to the grantee fully paid shares in the
Company equal to a value of 70,000,000 FCFA (€106,000, A$164,732) at which time Kouroufing
will transfer a 65% interest in the Permit to Oklo and the remaining 35% one year thereafter.
Kandiole
On 23 April 2018, Oklo agreed to purchase 100% interest in the Kandiole Permit for cash and the issue
of fully paid ordinary shares in the Company on the following terms:
1.
Payment of $200,000 in cash or shares within 2 business days of the Completion Date.
2. The issue of 1,319,261 Oklo shares (equivalent to $500,000) within 2 business days of the
Completion Date.
3. The issue of 791,557 Oklo shares (equivalent to $300,000) within 2 business days following the
date on which Oklo or its nominee is registered by the Mali Ministry of Mines as the 100% owner
of the Permit.
4. Oklo will assume all the rights, duties and obligations, including, but not limited to the obligation
to pay a 1% net smelter return royalty in relation to the Permit, which can be purchased by Oklo
for US$1,400,000 (A$1,891,125)at any time in which Oklo or its nominee has an interest, or a right
to an interest, in the Permit.
Oklo Resources Limited and its Controlled Entities
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OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
3.2 EXPLORATION AND EVALUATION (CONT.)
Key estimates and judgements
The recoverability of the carrying amount of the exploration and evaluation assets is dependent on
the successful development and commercial exploitation, or alternatively, sale of the respective area
of interest.
The Group reviews the carrying value of exploration and evaluation expenditure on a regular basis to
determine whether economic quantities of reserves have been found or whether further exploration
and evaluation work is underway or planned to support continued carry forward of capitalised costs.
This assessment requires judgement as to the status of the individual projects and their estimated
recoverable amount.
Accounting Policy
Exploration and evaluation expenditures in relation to separate areas of interest are capitalised in the
year in which they are incurred and are carried at cost less accumulated impairment losses where the
following conditions are satisfied:
i)
ii)
rights to tenure of the area of interest are current; and
at least one of the following conditions is also met:
a) the exploration and evaluation expenditures are expected to be recouped through
successful development and exploration of the area of interest, or alternatively by its
sale; or
b) exploration and evaluation 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.
Capitalised exploration costs are reviewed each reporting date to test whether an indication of
impairment exists. If any such indication exists, the recoverable amount of the capitalised exploration
costs is estimated to determine the extent of the impairment loss (if any). Where an impairment loss
subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its
recoverable amount, but only to the extent that the increased carrying amount does not exceed the
carrying amount that would have been determined had no impairment loss been recognised for the
asset in previous years.
Where a decision is made to proceed with development, accumulated expenditure is tested for
impairment and transferred to capitalised development and then amortised over the life of the
reserve associated with the area of interest once mining operations have commenced.
Development expenditure is recognised at cost less any impairment of losses. Where commercial
production in an area of interest has commenced, the associated costs are amortised over the life of
reserves associated with the area of interest. Changes in factors such as estimates of proved and
probable reserves that affect unit of production calculations are dealt with on a prospective basis.
Oklo Resources Limited and its Controlled Entities
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OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
4. CAPITAL STRUCTURE AND FINANCING ACTIVITIES
4.1. CONTRIBUTED EQUITY
(a) Issued and paid up capital
Fully paid ordinary shares
61,925,515
45,499,491
2018
$
2017
$
Number of
shares
Number of
shares
2018
2017
2018
$
2017
$
(b) Movements in shares on issue
Beginning of the year
Issued during the year (i)
Issued during the year (ii)
Issued during the year (iii)
Issued during the year (iv)
Issued during the year (v)
Issued during the year (vi)
Issued during the year (vii)
Issued during the year (viii)
Transaction costs on issue
End of the year
285,228,236 240,513,840
16,637,274 44,714,396
-
-
-
-
-
540,000
4,007,825
500,000
39,473,684
1,000,000
1,319,261
4,000,000
67,478,044 44,714,396
45,499,491
-
54,000
400,783
50,000
15,000,000
125,000
500,000
1,100,000
17,229,783
(803,759)
352,706,280 285,228,236
61,925,515
34,080,133
11,886,479
11,886,479
(467,121)
45,499,491
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
Refer to 30 June 2017 annual report for details of these transactions.
Exercise of options in September 2017. These options had an exercise price of 10c per share
and an expiry date of 22 September 2017.
Exercise of options in December 2017. These options had an exercise price of 10c per share
and an expiry date of 9 December 2017.
Exercise of options in March 2018. These options had an exercise price of 10c per share and
an expiry date of 25 March 2018.
Issue of shares in April 2018 pursuant to a placement. The Placement was for a total of
$15 million at an issue price of 38 cents per share.
Exercise of options in May 2018. 500,000 of these options had an exercise price of 10c and
500,000 had an exercise price of 15c per share. All options had an expiry date of 18 May 2018.
Issue of shares in May 2018 as part of the acquisition Kandiole licence. Shares were issued at
a price of 37.9c per share (refer note 3.2).
Exercise of options in June 2018. 2,000,000 of these options had an exercise price of 25c and
2,000,000 had an exercise price of 30c per share. All options had an expiry date of 17 June
2018.
Oklo Resources Limited and its Controlled Entities
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
4.1 CAPITAL STRUCTURE AND FINANCING ACTIVITIES (CONT.)
(c) Terms and condition of contributed equity
Ordinary shares
Ordinary shares have the right to receive dividends as declared and in the event of the winding up of
the Company, to participate in the proceeds from the sale of all surplus assets in proportion to the
number of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote, either
in person or by proxy, at a meeting of the Company.
(d) Share options
At 30 June 2018 there were 25,875,000 (2017: 23,297,825) unissued ordinary shares for which options
were outstanding.
Further details on movements in options is during the year are set out in Note 8.1.
(e) Capital risk management
The Group’s objectives when managing capital are to safeguard their ability to continue as a going
concern, so it can continue its activities and provide returns for shareholders and other stakeholders.
It is the board’s current policy, which it has operated since the company’s inception, that given the
nature of its business, to fund its operations without the use of external borrowings. The board
undertakes the preparation of an annual budget to assess its expected capital needs and to ensure
sufficient capital is available to meet those needs. The financial performance of the company is
measured on a regular basis against this budget to ensure that the company is meeting its cash inflow
and outflow targets.
In order maintain its capital structure and to maintain its policy of no external borrowings, to support
its ongoing operations, the company may issue new shares or sell assets to provide ongoing funding of
its operations.
Accounting Policy
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. Incremental costs directly attributable to the issue of new
shares or options for the acquisition of a business are not included in the cost of acquisition as part of
the purchase consideration.
If the entity reacquires its own equity instruments, e.g. as the result of a share buyback, those
instruments are deducted from equity and the associated shares are cancelled. No gain or loss is
recognised in the profit or loss and the consideration paid including any directly attributable
incremental costs (net of income taxes) is recognised directly in equity.
Oklo Resources Limited and its Controlled Entities
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
4.2. RESERVES
Foreign currency translation reserve:
Balance at the beginning of year
Currency translation differences arising
during the year
Balance at the end of the year
Share option reserve:
Balance at the beginning of year
Share based payments expense
Capitalised as part of exploration expenditure
Balance at the end of the year
2018
$
2017
$
(91,659)
(381,738)
659,075
567,416
290,079
(91,659)
2,166,545
821,044
831,169
3,818,758
1,441,669
588,609
136,267
2,166,545
Total reserves
4,386,174
2,074,886
The Foreign Currency Translation Reserve records exchange differences arising on the translation of
foreign controlled subsidiaries.
The Share option reserve records items recognised as expenses in the profit or loss statement, share
issue expenses or capitalised as exploration expenditure on the issue of employee share options or in
respect of compensation for services rendered.
5. RISK
5.1. FINANCIAL RISK MANAGEMENT
The Group attempts to mitigate risks that may affect its future performance through a process of
identifying, assessing, reporting and managing risks of corporate significance.
The board considers the principal risks of our business, particularly during the strategic planning and
budget processes.
The Group’s principal financial instruments comprise cash, short-term deposits and investments in
shares. The main purpose of these financial instruments is to fund the Group’s operations.
The Group has various other financial instruments such as trade debtors, trade creditors and borrowings,
which arise directly from its operations.
The main risks arising from the Group’s financial instruments is cash flow interest rate risk and foreign
currency risk. Other minor risks include credit risk, liquidity risk and capital risk management. The board
reviews and adopts policies for each of these risks which are summarised below.
Oklo Resources Limited and its Controlled Entities
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
5.1 FINANCIAL RISK MANAGEMENT (CONT.)
(a) Credit risk
The Group does not have any material credit risk exposure to any single debtor or group of debtors
under financial instruments entered into by the Group.
Financial instruments other than receivables that potentially subject the Group to concentrations of
credit risk consist principally of cash deposits. The Group places its cash deposits with high credit quality
financial institutions, being in Australia one of the major Australian (big four) banks. Cash holdings in
other countries are not significant. The Group’s cash deposits are all on call or in term deposits and
attract a rate of interest at normal short-term money market rates.
The maximum amount of credit risk the Group considers it would be exposed to would be $18,366,296
(2017: $14,792,611) being the total of the carrying values of cash and cash equivalents and other
financial assets as at the Reporting Date.
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.
Trade and other receivables
Security and other deposits
Other
Cash at bank and short-term bank deposits
AAA
2018
$
19,140
178,127
197,267
2017
$
19,140
124,475
143,615
18,366,296
14,792,611
(b) Cash flow interest rate risk
The Group’s exposure to the risks of changes in market interest rates relate to its cash deposits. All other
financial assets and liabilities in the form of receivables and payables are non-interest bearing. The
Company had external borrowings amounting to $Nil as at 30 June 2018 (2017: $Nil). These external
borrowings are non-interest bearing.
The Group’s exposure to interest rate risk is the risk that a financial instrument’s value will fluctuate as
a result of changes in market interest rates. The Group does not have a formal policy in place to mitigate
such risks as the Group’s income and operating cash flows are not materially exposed to changes in
market interest rates.
Oklo Resources Limited and its Controlled Entities
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
5.1 FINANCIAL RISK MANAGEMENT (CONT.)
The Group’s exposure to interest rate risks and the effective interest rates on its financial assets and
liabilities as at reporting date is as follows:
Weighted
Average
Effective
Interest
Rate
2018
Fixed Interest Rate
Maturing
Floating
Interest Rate
Within
1 Period
1-5
Periods
Non-Interest
Bearing
2018
$
2018
$
2018
$
2018
$
Total
2018
$
0.5%
17,920,873
-
0.5%
-
17,920,873
-
-
-
-
-
-
-
-
-
-
-
-
-
-
445,423
18,366,296
197,267
642,690
197,267
18,563,563
2,645,389
2,645,389
2,645,389
2,645,389
Weighted
Average
Effective
Interest
Rate
2017
%
Fixed Interest Rate
Maturing
Floating
Interest Rate
Within
1 Period
1-5
Periods
Non-Interest
Bearing
2017
$
2017
$
2017
$
2017
$
Total
2017
$
0.5%
12,304,129
-
0.5%
-
12,304,129
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,488,482
14,792,611
143,615
2,632,097
143,615
14,936,226
1,140,631
1,140,631
1,140,631
1,140,631
2018
Financial assets:
Cash at bank
Trade and other
receivables
Total financial assets
Financial liabilities:
Trade and other
payables
Total financial
liabilities
2017
Financial assets:
Cash at bank
Trade and other
receivables
Total financial assets
Financial liabilities:
Trade and other
payables
Total financial
liabilities
Oklo Resources Limited and its Controlled Entities
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
5.1 FINANCIAL RISK MANAGEMENT (CONT.)
Sensitivity Analysis
At the reporting date, the variable interest profile of the Group’s interest bearing financial instruments
were:
Financial assets
2018
$
17,920,873
2017
$
12,304,129
A change of 0.25% in the variable interest rates, at the reporting date, with all other variables held
constant, would have increased/decreased the profit or loss by the amounts shown below. 0.25% is
considered reasonable in light of current market expectations of interest rate movements.
0.25% increase
0.25% decrease
2018
$
44,802
(44,802)
2017
$
30,760
(30,760)
(c) Liquidity risk
The Group’s objective is to match the terms of funding sources to the terms of the assets or operations
being financed. The Group aims to hold sufficient reserves of cash or cash equivalents to help manage
the fluctuations in working capital requirements and provide the flexibility for investment into long-
term assets without the need to raise debt.
Maturities of financial liabilities
The following tables analyse the Group’s and the parent entity’s financial liabilities into relevant
maturity groupings based on the remaining period at the reporting date to the contractual maturity
date. The amounts disclosed in the table are the contracted undiscounted cash flows.
Group:
at 30 June 2018
Less than 6
months
$
6 – 12
months
$
Between
1 and 2
years
$
Between
2 and 5
years
$
Over 5
years
$
Total
contractual
cash flows
$
Carrying
amount
(assets)
/liabilities
$
Trade and other
payables
Group:
at 30 June 2017
Trade and other
payables
2,645,389
-
-
-
-
-
2,645,389
Less than 6
months
$
6 – 12
months
$
Between
1 and 2
years
$
Between
2 and 5
years
$
Over 5
years
$
Total
contractual
cash flows
$
Carrying
amount
(assets)
/liabilities
$
1,140,631
-
-
-
-
-
1,140,631
Oklo Resources Limited and its Controlled Entities
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
5.1 FINANCIAL RISK MANAGEMENT (CONT.)
(d) Foreign Exchange Risk
A risk arises when future commercial transactions and recognised assets and liabilities are
denominated in a currency other than the consolidated entity’s functional currency.
The Group operates internationally, with its major assets being held in Mali, West Africa and is exposed
to foreign exchange risk arising from currency exposures to the Euro, FCFA (fixed to the Euro) and US
Dollar. Historically, given the level of expenditure and available funding, the Group considered its
exposure to foreign exchange risk was manageable and hedging policies were not adopted. The
Company, through the Managing Director and the Chief Financial Officer regularly monitor movements
in the foreign currencies that the Company is exposed to. If appropriate, and from time to time, the
Company may enter into forward foreign exchange contract to minimise its exposure to foreign
exchange risks. The Company also has foreign currency denominated accounts that are utilised to
manage this risk. The Company did not enter into any new forward foreign exchange contracts during
the year.
The Board considers policies relating to foreign currency exposure from time to time and, based on
available funding, proposed exploration programs and foreign currency exposures, may or may not
decide to enter in further forward foreign exchange contracts. The Board will continue to review its
position in respect of foreign exchange risk management and will adopt suitable policies as required.
The carrying value of foreign currency denominate monetary assets and liabilities as at the reporting
date are as follows:
Assets
Liabilities
2018
2017
2018
2017
Euro/CFA
USD
292,346
4,523
252,276
3,214
1,652,531
881,983
1,001,709
39,073
Foreign Currency Sensitivity Analysis
The Group is mainly exposed to Euro and US Dollars. The following table details the Group’s sensitivity
to a 10% increase and decrease in the Australian dollar against the relevant foreign currencies. 10% is
the sensitivity rate that represents management’s assessment of the reasonably possible change in
foreign exchange rates. The sensitivity analysis
includes only outstanding foreign currency
denominated monetary items and adjusts their translation at the year end for a 10% change in foreign
currency rates. A positive number below indicates an increase in profit where the Australian dollar
strengthens 10% against the relevant currency. For a 10% weakening of the Australian dollar against
the relevant currency, there would be a comparable impact on the profit, and the balances below
would be negative.
Oklo Resources Limited and its Controlled Entities
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OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
5.1 FINANCIAL RISK MANAGEMENT (CONT.)
Euro
US Dollars
2018
2017
2018
2017
Financial Assets
+10% Appreciation
-10% Depreciation
Financial Liabilities*
+10% Appreciation
-10% Depreciation
(26,577)
32,483
(22,934)
28,031
150,230
(183,615)
91,064
(111,301)
(411)
503
80,180
(97,998)
(292)
357
3,552
(4,431)
* Note – the majority of the balance of financial liabilities relates to capitalised exploration
expenditure. Therefore, the variations in the balance as shown in the sensitivity analysis would not
impact the profit or loss, but rather the carrying value of the capitalised exploration expenditure.
Forward Foreign Exchange Contracts
As at 30 June 2018 there were no outstanding forward foreign exchange contracts.
(e) Fair value of financial instruments
The directors consider that the carrying amount of financial assets and financial liabilities recorded in
the financial statements represents their respective net fair values, determined in accordance with
accounting policies.
The fair values and net fair values of financial assets and financial liabilities are determined as follows:
-
-
the fair value of financial assets and financial liabilities with standard terms and conditions and
traded on active liquid markets are determined with reference to quoted market prices; and
the fair value of other financial assets and financial liabilities are determined in accordance
with generally accepted pricing models based on discounted cash flow analysis.
Oklo Resources Limited and its Controlled Entities
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OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
6. GROUP STRUCTURE
6.1. SUBSIDIARIES
The consolidated financial statements include the financial statements of the ultimate parent entity
Oklo Resources Limited and the subsidiaries listed in the following table:
Equity Interest
Investment of Parent
Name of Entity
Oklo Resources Mali sarl
Kidal Mining sarl
Essouk Mining sarl
Tessalit Mining sarl
Telabit Mining sarl
Anefis Mining sarl
Adrar Mining sarl
Tedeini Mining sarl
Oklo Uranium Mali Limited
sarl
Socaf sarl
Compass Gold (BVI) Mali
Africa Mining sarl
Compass Gold sarl
Country of
Incorporation
Republic of Mali
Republic of Mali
Republic of Mali
Republic of Mali
Republic of Mali
Republic of Mali
Republic of Mali
Republic of Mali
2018
100%
100%
100%
100%
100%
100%
100%
100%
Republic of Mali
100%
Republic of Mali
British Virgin
Islands
Republic of Mali
Republic of Mali
75%
100%
100%
100%
2017
100%
100%
100%
100%
100%
100%
100%
100%
100%
75%
2018
2,550
2,434
2,434
2,434
2,434
2,434
2,434
2,434
2,550
-
2017
2,550
2,434
2,434
2,434
2,434
2,434
2,434
2,434
2,550
-
100%
4,730,592
4,730,592
100%
100%
-
-
-
-
Oklo Resources Limited and its Controlled Entities
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
7. UNRECOGNISED ITEMS
7.1. COMMITMENTS
EXPENDITURE COMMITMENTS
(a) Capital expenditure commitments
No capital expenditure commitments were contracted for
at reporting date.
(b) Mineral tenement commitments (including under
acquisition agreements)
- Within one year
- Later than one year but not later than five years
(c) Operating lease expenditure commitments
- Within one year
- Later than one year but not later than five years
Total all expenditure commitments
2018
$
2017
$
-
-
4,236,862
4,654,890
8,891,752
6,032
-
6,032
8,897,784
1,497,625
2,456,899
3,954,524
35,960
6,032
41,992
3,996,516
7.2. CONTINGENCIES
The Group’s Malian subsidiary SOCAF sarl has obligations in the event that it commences mining at
either its Boutounguissi Sud or Aourou concessions in Mali. Pursuant to an agreement with the SOCAF
sarl founder, M. B Camara, an amount of FCFA 200,000,000 (approximately A$440,308) is payable from
available cash-flow from mining, after reimbursement of the Malian Government for past exploration.
As part of the acquisition of Compass Gold Mali BVI Corp in December 2013, part of the contingent
liabilities acquired included an existing 2% Net Smelter Return Royalty (Royalty) over the assets of Africa
Mining sarl, one of the Company’s operating subsidiaries in Mali. This Royalty was originally granted in
2009. The Royalty covers the Dandoko, Yanfolila and Kolondieba licences held by Africa Mining sarl and
is jointly held by a company controlled by a former director, James Henderson, and current director Dr
Madani Diallo.
As part of the acquisition of the Kandiole Permit, the Company will assume all the rights, duties and
obligations of the Permit, including, but not limited to the obligation to pay a 1% net smelter return
royalty to the current owner. Oklo has the right to purchase this for US$1,400,000 (A$1,891,125) at any
time in which Oklo or its nominee has an interest, or a right to an interest, in the Permit.
Under the Malian Mining code, the Government of Mali is entitled to a 10% interest in any mining
company established to exploit a resource and may secure a further 10% on commercial terms. This
contingency would only crystallise in the event the any of the current exploration licences are converted
into mining licences.
Oklo Resources Limited and its Controlled Entities
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OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
7.3. EVENTS OCCURING AFTER THE REPORTING PERIOD
On 19 July 2018, the Company announced that it had signed agreements to acquire 100% ownership of
the Kossaya and Sari Projects, both located within 5km of the Company’s flagship Dandoko Project in West
Mali. The terms of the acquisitions are:
Kossaya Project
Oklo has the option to acquire 100% ownership of the Permit on the following terms:
1. Payment of 40,000,000 FCFA (Euro €60,000) on execution of the Agreement.
2. On the first anniversary of the Agreement, Oklo can earn a 65% interest in the Permit for a further
payment of 60,000,000 FCFA (Euro €90,000) or the equivalent in Oklo shares at the election of
the grantor, subject to Oklo completing a minimum expenditure totalling Euro €100,000 in the
first year. Oklo may at its sole discretion terminate the Agreement at any time prior to the first
anniversary by giving ten (10) days written notice having met the minimum expenditure
requirement.
Other than the above, there has not been any matter or circumstance that has arisen since the end of the
financial year, that has significantly affected or may significantly affect the operations of the Group, the
results of those operations, or the state of affairs of the Group in future financial years.
Sari Project
Oklo has the option to acquire 100% ownership of the Permit on the following terms:
1. Payment of 10,000,000 FCFA (Euro €15,000) on execution of the Agreement.
2. On the first anniversary of the Agreement, Oklo can earn a 65% interest in the Permit for a further
payment of 10,000,000 FCFA (Euro €15,000) or the equivalent in Oklo shares at the election of the
grantor subject to Oklo completing a minimum expenditure totalling Euro €117,000 in the first year.
Oklo may at its sole discretion terminate the Agreement at any time prior to the first anniversary
by giving ten (10) days written notice having met the minimum expenditure requirement.
3. On the second anniversary of the Agreement, Oklo can earn the remaining 35% interest in the
Permit for a further payment of 10,000,000 FCFA (Euros €15,000) or the equivalent in Oklo shares
at the election of the grantor.
Other than the above, there has not been any matter or circumstance that has arisen since the end of the
financial year, that has significantly affected or may significantly affect the operations of the Group, the
results of those operations, or the state of affairs of the Group in future financial years.
Oklo Resources Limited and its Controlled Entities
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OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
8. OTHER INFORMATION
8.1. SHARE BASED PAYMENTS
(a) Recognised share based payment expenses
Expense recognised for director or key management
personnel services
Expense recognised for consulting services
Expense recognised for consulting services (capitalised as
exploration expenditure)
Being
Fair value of issue of options to Board and Consultants
(issue August 2016 – fully vested)
Fair value of issue of options to Board and Consultants
(issue August 2016 – with vesting conditions)
Fair value of issue of options to a Board member (issue
December 2015 - with vesting conditions)
Fair value of issue of options to Board on 21 November
2017 with expiry date of 21 November 2019
Fair value of issue of options to Board on 21 November
2017 with expiry date of 21 November 2020)
Fair value of issue of options to consultants on 24
November 2017 with expiry date of 24 November 2019
Fair value of issue of options to consultants on 24
November 2017 with expiry date of 24 November 2020
Fair value of issue of options to a consultant on 15
December 2017 with expiry date of 15 December 2019
Fair value of issue of options to a consultant on 15
December 2017 with expiry date of 15 December 2020
Recognised as expense
Fair value of options issued to two consultants (from issue
in June 2016) – with vesting conditions
Fair value of options issued to a consultant (from issue in
November 2016)
Fair value of issue of options to Board on 21 November
2017 with expiry date of 21 November 2019
Fair value of issue of options to Board on 21 November
2017 with expiry date of 21 November 2020
Fair value of issue of options to a consultant on 21
November 2017 with expiry date of 21 November 2019
Fair value of issue of options to a consultant on 21
November 2017 with expiry date of 21 November 2020
Fair value of issue of options to consultants and employees
on 24 November 2017 with expiry date of 24 November
2019
(i)
(ii)
(i)
(iii)
(iii)
(v)
(v)
(vi)
(vi)
(i)
(i)
(iii)
(iii)
(iv)
(iv)
Note
2018
$
2017
$
707,190
113,854
831,169
1,652,213
588,609
-
136,267
724,876
-
414,311
15,949
126,035
-
48,263
313,713
377,528
32,910
37,430
18,423
-
-
-
-
-
25,091
821,044
-
588,609
-
-
112,148
24,119
149,388
179,776
143,570
161,550
(v)
105,311
-
-
-
-
-
Oklo Resources Limited and its Controlled Entities
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OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
Note
2018
$
2017
$
Fair value of issue of options to consultants and employees
on 24 November 2017 with expiry date of 24 November
2020 and 12 months vesting conditions
Fair value of issue of options to consultants and employees
on 24 November 2017 with expiry date of 24 November
2019 and 12 months vesting conditions
Fair value of issue of options to consultants and employees
on 24 November 2017 with expiry date of 24 November
2020 and 24 months vesting conditions
Booked as Exploration and Evaluation Expenditure (Asset)
Total
(v)
(v)
(v)
64,384
17,690
-
-
9,500
831,169
1,652,213
-
136,267
724,876
Notes:
(i) Refer to 30 June 2017 Annual Report for details of these transactions
(ii)
At a Meeting of Members held on 1 August 2016, members approved the issue of 1,500,000
options to the managing director. These options have a vesting period of 12 months, a strike price
of $0.30 and expiry date of 11 August 2020. The options have been valued using an option pricing
model and have been given a total market value of $141,984, of which $126,035 was expensed in
the year ended 30 June 2017 and $15,949 has been expensed in the current financial year. The
values and inputs used in the option pricing model were as follows:
Options granted
Value per option
Life of options
Risk free rate
Volatility
Discount for vesting period
1,500,000
$0.09466
12 months vesting and then 36 months
1.75%
85%
25%
(iii) At a Meeting of Members held on 21 November 2017, members approved the issue of a total of
7,750,000 options to the Board. The options have been valued using an option pricing model.
Details of the options issued are set out in the table below, including the values and inputs used in
the option pricing model.
Expiry Date
Number of Options
Exercise Price
Risk free rate
Volatility
Value per option
Total value of all options
Amount expensed
Amount capitalised to EED
21 November 2019
3,875,000
$0.455
1.5%
80%
$0.11951
$463,101
$313,713
$149,388
21 November 2020
3,875,000
$0.49
1.5%
80%
$0.14382
$557,304
$377,528
$179,776
Oklo Resources Limited and its Controlled Entities
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
8.1 SHARE BASED PAYMENTS (CONT.)
(iv) On 21 November 2017, the board approved the issue of a total of 2,000,000 options to a consultant
in consideration for exploration services provided to the Company pursuant to the Employee
Option Plan. The options have been valued using an option pricing model. Details of the options
issued are set out in the table below, including the values and inputs used in the option pricing
model.
Expiry Date
Number of Options
Exercise Price
Risk free rate
Volatility
21 November 2019
1,000,000
$0.345
1.5%
80%
Value per option
Total value of all options
Amount expensed
Amount capitalised to EED
$0.14357
$143,570
$Nil
$143,570
21 November 2020
1,000,000
$0.395
1.5%
80%
$0.16155
$161,550
$Nil
$161,550
(v) On 24 November 2017, the board approved the issue of a total of 2,600,000 options to a
consultants and employees of the Group pursuant to the Employee Option Plan. A total of five
classes of options were issued on this date. The options have been valued using an option pricing
model. Details of the options issued are set out in the tables below, including the values and inputs
used in the option pricing model.
Expiry Date
Number of Options
Exercise Price
Risk free rate
Vesting Conditions
Volatility
24 November 2019
1,050,000
$0.35
1.5%
Nil
80%
24 November 2020
800,000
$0.40
1.5%
12 months
80%
24 November 2020
250,000
$0.40
1.5%
Nil
80%
Value per option
Total value of all
options
Amount expensed
Current Period
Amount capitalised
to EED in current
Period
Amount capitalised to
EED in future periods
$0.13164
$138,221
$32,910
$0.14972
$119,776
$Nil
$105,311
$64,384
N/a
$55,392
$0.14972
$37,430
$37,430
$Nil
N/a
Oklo Resources Limited and its Controlled Entities
Page 66
2018 Annual Report
69
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
8.1 SHARE BASED PAYMENTS (CONT.)
Expiry Date
Number of Options
Exercise Price
Risk free rate
Vesting Conditions
Volatility
Value per option
Total value of all options
Amount capitalised to EED in
current Period
Amount capitalised to EED in
future periods
24 November 2019
250,000
$0.35
1.5%
12 months
80%
$0.13164
$32,910
$17,690
$14,220
24 November 2020
250,000
$0.40
1.5%
24 months
80%
$0.14972
$37,430
$9,500
$27,930
(vi) On 15 December 2017, the board approved the issue of a total of 275,000 options to a consultant
in consideration for services provided to the Company. The options have been valued using an
option pricing model. Details of the options issued are set out in the table below, including the
values and inputs used in the option pricing model.
Expiry Date
Number of Options
Exercise Price
Risk free rate
Volatility
Value per option
Total value of all options
Amount expensed
15 December 2019
125,000
$0.37
1.5%
80%
$0.14738
$18,423
$18,423
15 December 2020
150,000
$0.42
1.5%
80%
$0.16727
$25,090
$25,090
Oklo Resources Limited and its Controlled Entities
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OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
8.1 SHARE BASED PAYMENTS (CONT.)
(b)
Summary of Options Granted
2018
2017
Number of
Options
Weighted
Average
Exercise Price
Number of
Options
Outstanding at beginning of year
Net issued year ending 2017 (i)
Exercised (ii)
Issue (iii)
Issue (iv)
Issue (v)
Issue (vi)
Issue (vii)
Issue (viii)
Issue (ix)
Issue (x)
Issue (xi)
Exercised (xii)
Issue (xiii)
Issue (xiv)
Exercised (xv)
Exercised (xvi)
Exercised (xvii)
Exercised (xviii)
Exercised (xix)
Outstanding at end of the year
Vested and Exercisable at end of
the year
23,297,825
-
(540,000)
3,875,000
3,875,000
1,000,000
1,000,000
1,050,000
800,000
250,000
250,000
250,000
(4,007,825)
125,000
150,000
(500,000)
(500,000)
(500,000)
(2,000,000)
(2,000,000)
25,875,000
$0.20
-
$0.10
$0.445
$0.49
$0.345
$0.395
$0.35
$0.40
$0.40
$0.35
$0.40
$0.10
$0.37
$0.42
$0.10
$0.10
$0.15
$0.25
$0.30
$0.324
Weighted
Average
Exercise Price
$0.16
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$0.20
44,931,100
(21,633,275)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
23,297,825
24,425,000
$0.320
21,797,825
$0.20
(i)
(ii)
(iii)
(iv)
(v)
(vi)
Refer to 30 June 2017 annual report for details of issues.
In September 2017, 540,000 options with an exercise price of $0.10 per share and an expiry date
of 22 September 2017 were exercised.
In November 2017, the Company issued 3,875,000 unlisted options with an exercise price of
$0.455 and an expiry date of 21 November 2019 as share based remuneration to the Directors
of the Company.
In November 2017, the Company issued 3,875,000 unlisted options with an exercise price of
$0.49 and an expiry date of 21 November 2020 as share based remuneration to the Directors of
the Company.
In November 2017, the Company issued 1,000,000 unlisted options with an exercise price of
$0.345 and an expiry date of 21 November 2019 pursuant to the Employee Option Plan to a
consultant of the Company.
In November 2017, the Company issued 1,000,000 unlisted options with an exercise price of
$0.395 and an expiry date of 21 November 2020 pursuant to the Employee Option Plan to a
consultant of the Company.
Oklo Resources Limited and its Controlled Entities
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2018 Annual Report
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OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
(vii)
(viii)
(ix)
(x)
(xi)
(xii)
(xiii)
(xiv)
(xv)
(xvi)
(xvii)
(xviii)
In November 2017, the Company issued 1,050,000 unlisted options with an exercise price of
$0.35 and an expiry date of 24 November 2019 pursuant to the Employee Option Plan to
employees and consultants of the Company.
In November 2017, the Company issued 800,000 unlisted options with an exercise price of $0.40,
12 month vesting conditions and an expiry date of 24 November 2020 pursuant to the Employee
Option Plan to employees and consultants of the Company.
In November 2017, the Company issued 250,000 unlisted options with an exercise price of $0.40
and an expiry date of 24 November 2019 pursuant to the Employee Option Plan to employees
and consultants of the Company.
In November 2017, the Company issued 250,000 unlisted options with an exercise price of $0.35,
12 month vesting conditions and an expiry date of 24 November 2020 pursuant to the Employee
Option Plan to employees and consultants of the Company.
In November 2017, the Company issued 250,000 unlisted options with an exercise price of $0.40,
24 month vesting conditions and an expiry date of 24 November 2020 pursuant to the Employee
Option Plan to employees and consultants of the Company.
In December 2017, 4,007,825 options with an exercise price of $0.10 per share and an expiry
date of 9 December 2017 were exercised.
In December 2017, the Company issued 125,000 unlisted options with an exercise price of $0.37
and an expiry date of 15 December 2019 as share based remuneration to a consultant of the
Company.
In December 2017, the Company issued 150,000 unlisted options with an exercise price of $0.42,
and an expiry date of 15 December 2020 as share based remuneration to a consultant of the
Company.
In March 2018, 500,000 options with an exercise price of $0.10 per share and an expiry date of
23 March 2018 were exercised.
In May 2018, 500,000 options with an exercise price of $0.10 per share and an expiry date of 9
May 2018 were exercised.
In May 2018, 500,000 options with an exercise price of $0.15 per share and an expiry date of 9
May 2018 were exercised.
In June 2018, 2,000,000 options with an exercise price of $0.25 per share and an expiry date of
17 June 2018 were exercised.
(xix)
In June 2018, 2,000,000 options with an exercise price of $0.30 per share and an expiry date of
17 June 2018 were exercised.
(c) Weighted average remaining contractual life
The weighted average remaining contractual life of the share options outstanding as at 30 June 2018 is
1.56 years (2017: 1.60 years).
(d) Range of exercise prices
The range of exercise prices for options outstanding at the end of the year is $0.15 to $0.49 (2017: $0.10
to $0.30).
(e) Weighted fair average value
The weighted fair average value of options granted during the year was $0.14 per option (2017: $0.07).
Oklo Resources Limited and its Controlled Entities
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OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
8.1 SHARE BASED PAYMENTS (CONT.)
(f) Share option plan
Accounting Policy
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares that are provided to employees
in exchange for the rendering of services. Cash-settled transactions are awards of cash for the exchange
of services, where the amount of cash is determined by reference to the share price.
The costs of equity-settled transactions are recognised as an expense with a corresponding increase in
equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant
date fair value of the award, the best estimate of the number of awards that are likely to vest and the
expired portion of the vesting period. The amount recognised in profit or loss for the period is the
cumulative amount calculated at each reporting date less amounts already recognised in previous
periods.
The costs of equity-settled transactions are measured at fair value on grant date. Fair value is
independently determined using either the Binomial or 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, together with non-vesting conditions that do not determine
whether the consolidated entity receives the services that entitle the employees to receive payment.
No account is taken of any other vesting conditions.
Key estimates and judgements
The Group has an Incentive Option Scheme (“Scheme”) for executives and employees of the Group.
In accordance with the provisions of the Scheme, as approved by the shareholders at the August 2017
annual general meeting, executives and employees may be granted options at the discretion of the
directors.
Each share option converts into one ordinary share of Oklo Resources Limited on exercise. No amounts
are paid or are payable by the recipient on receipt of the option. The options carry neither rights of
dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date
of their expiry.
Options issued to directors are not issued under the Scheme but are subject to approval by shareholders.
Oklo Resources Limited and its Controlled Entities
Page 70
2018 Annual Report
73
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
8.2
RELATED PARTY TRANSACTIONS
Directors and other key management personnel
The directors of Oklo Resources Limited during the financial year were:
- Mr. Michael Fotios - Chairman
- Mr Simon Taylor - Managing Director
- Dr Madani Diallo - Executive Director
Other key management personnel consisted of:
- Mr Andrew Boyd – General Manager - Exploration
Compensation of key management personnel
Short-term employee benefits
Post-employment benefits
Share-based payments
Other transactions with key management personnel
Amounts recognised as expense
Director and consulting fees (i)
Office rent and costs
(i) This amount is included in key management personnel remuneration.
Amounts recognised as exploration expenditure
Director fees (ii)
Consulting fees (ii)
Geological Consulting Fees
229,011
287,111
54,126
570,248
(ii) These amounts are included in key management personnel remuneration.
2018
$
866,122
11,875
1,341,473
2,219,470
2017
$
$
723,056
1,425
588,608
1,313,089
2018
$
225,000
-
225,000
2017
$
341,500
2,080
343,580
168,178
213,378
79,128
460,684
Oklo Resources Limited and its Controlled Entities
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2018 Annual Report
74
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
8.3
PARENT ENTITY FINANCIAL INFORMATION
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Equity
Issued capital
Accumulated losses
Share based payment reserve
Total equity
Financial performance
Loss for the year
Other comprehensive income
Total comprehensive loss
Contingent liabilities
Contractual commitments:
Operating lease
Mineral properties1
Total contractual commitments
2018
$
2017
$
18,459,051
31,759,305
50,218,356
14,742,535
17,315,184
32,057,719
2,098,425
-
2,098,425
212,534
-
212,534
61,925,514
(17,624,342)
3,818,758
48,119,930
45,499,491
(15,820,851)
2,166,545
31,845,185
(1,803,491)
-
(1,803,491)
(1,514,153)
-
(1,514,153)
-
-
6,032
548,611
554,643
41,992
-
41,992
Note 1 – this is the minimum required exploration expenditure and balance of acquisition costs pursuant
to the Kouroufing and Kandiole Agreements (refer Note 3.2)
There are no parent company guarantees in place at balance date.
Oklo Resources Limited and its Controlled Entities
Page 72
2018 Annual Report
75
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
8.4
NON-CONTROLLING INTERESTS IN SUBSIDIARY
Summarised financial information of SOCAF sarl, the subsidiary with non-controlling interests that
are material to the consolidated entity are set out below:
SOCAF sarl
Summarised statement of financial position
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Summarised statement of profit or loss and other
comprehensive income
Revenue
Expenses
Loss before income tax expense
Income tax expense
Loss after income tax expense
Other comprehensive income
Total comprehensive income
2018
$
6,677
232,847
239,524
474,145
-
474,145
2017
$
35,841
165,656
201,497
277
427,448
427,725
(234,621)
(226,228)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Statement of cash flows
Net cash from operating activities
Net cash used in investing activities
Net cash provided by financing activities
Net increase/(decrease) in cash and cash equivalents
-
(55,866)
46,658
(9,208)
-
(100,161)
112,182
12,021
Other financial information
Loss attributable to non-controlling interests
Accumulated non-controlling interests at the end of
financial year
-
-
-
-
Oklo Resources Limited and its Controlled Entities
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2018 Annual Report
76
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
8.5
REMUNERATION OF AUDITORS
Amounts received or due and receivable by BDO Audit (WA) Pty
Ltd
-
-
-Audit and review of financial statements
-Other amounts received or due and receivable by BDO
Total remuneration
2018
$
58,917
-
58,917
2017
$
36,106
-
36,106
8.6
OTHER ACCOUNTING POLICIES
Goods and services tax
Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except
where the amount of GST incurred is not recoverable from the Australian Tax Office (ATO). In these
circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item
of the expense.
Receivables and payables are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability
in the statement of financial position.
Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash
flows arising from investing and financing activities which are recoverable from, or payable to, the ATO
are classified as operating cash flows.
Oklo Resources Limited and its Controlled Entities
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77
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
DIRECTORS’ DECLARATION
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES
ABN 53 121 582 607
DIRECTORS’ DECLARATION
The directors of the Company declare that:
1. The financial statements, comprising the consolidated statement of profit or loss and other
comprehensive income, consolidated statement of financial position, consolidated statement of
cash flows, consolidated statement of changes in equity, accompanying notes, are in accordance
with the Corporations Act 2001 and:
(a) comply with Accounting Standards and Corporations Regulations 2001 and other
mandatory professional reporting requirements; and,
(b) give a true and fair view of the financial position as at 30 June 2018 and of the performance
for the year ended on that date of the consolidated entity.
2.
In the directors’ opinion, there are reasonable grounds to believe that the Company will be able to
pay its debts as and when they become due and payable.
3. The directors have been given the required declarations by the chief executive officer and chief
financial officer required by section 295A.
The Notes to the Consolidated Financial Statements confirm that the financial statements also comply with
International Financial Reporting Standards as issued by the International Accounting Standards Board.
This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on
behalf of the directors by:
Simon Taylor
Managing Director
Sydney: 28 September 2018
Oklo Resources Limited and its Controlled Entities
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78
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
AUDITOR’S REPORT
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF OKLO RESOURCES LIMITED
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of Oklo Resources Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Oklo Resources Limited (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 30 June 2018, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including a summary of significant accounting policies and the directors’
declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2018 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance
with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation other than for
the acts or omissions of financial services licensees
Oklo Resources Limited and its Controlled Entities
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79
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
AUDITOR’S REPORT
Accounting for Exploration and Evaluation Assets
Key audit matter
How the matter was addressed in our audit
At 30 June 2018 the Group held a significant carrying
Our procedures included, but were not limited to:
value of Exploration and Expenditure as disclosed in
Note 3.2.
As the carrying value of the Exploration and Evaluation
Asset represents a significant asset of the Group, we
considered it necessary to assess whether any facts or
circumstances exist to suggest that the carrying
amount of this asset may exceed its recoverable
•
•
amount.
Obtaining a schedule of the areas of interest
held by the Group and assessing whether the
rights to tenure of those areas of interest
remained current at balance date;
Considering the status of the ongoing exploration
programmes in the respective areas of interest
by holding discussions with management, and
reviewing the Group’s exploration budgets, ASX
Judgement is applied in determining the treatment of
announcements and director’s minutes;
exploration expenditure in accordance with Australian
Accounting Standard AASB 6 Exploration for and
Evaluation of Mineral Resources. In particular:
(cid:120) Whether the conditions for capitalisation are
satisfied;
(cid:120) Which elements of exploration and evaluation
expenditures qualify for recognition;
(cid:120)
Recognition and valuation of purchase
consideration for tenement acquisitions; and
(cid:120) Whether facts and circumstances indicate that
the exploration and expenditure assets should
be tested for impairment.
•
•
•
•
Considering whether any such areas of interest
had reached a stage where a reasonable
assessment of economically recoverable reserves
existed;
Verifying, on a sample basis, evaluation
expenditure capitalised during the year for
compliance with the recognition and
measurement criteria of AASB 6;
Considering whether any facts or circumstances
existed to suggest impairment testing was
required; and
Assessing the adequacy of the related disclosures
in Note 3.2 to the financial report.
Oklo Resources Limited and its Controlled Entities
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80
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
AUDITOR’S REPORT
Accounting for Share Based Payments
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 8.1, during the year the Company
Our procedures included, but were not limited to the
issued performance rights to directors, consultants and
following:
employees which have been accounted for as share-
based payments.
Refer to Note 8.1 of the financial report for a
description of the accounting policy and significant
estimates and judgements applied to these
transactions.
Due to the complex and judgmental estimates used in
determining the valuation of the share based
payments, we consider the accounting for the share
based payment expense to be a key audit matter.
•
•
•
•
•
•
Reviewing relevant supporting documentation to
obtain an understanding of the contractual
nature and terms and conditions of the share-
based payment arrangements;
Holding discussions with management to
understand the share-based payment
arrangements in place;
Reviewing management’s determination of the
fair value of the share-based payments granted,
considering the appropriateness of the valuation
models used and assessing the valuation inputs;
Involving our internal valuation specialists, to
assess the reasonableness of management’s
valuation inputs with respect to volatility;
Assessing the reasonableness of the share-based
payment expense; and
Assessing the adequacy of the related disclosures
Note 8.1 of the Financial Report.
Oklo Resources Limited and its Controlled Entities
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81
OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
AUDITOR’S REPORT
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2018, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf
This description forms part of our auditor’s report.
Oklo Resources Limited and its Controlled Entities
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OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
AUDITOR’S REPORT
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 28 to 36 of the directors’ report for the
year ended 30 June 2018.
In our opinion, the Remuneration Report of Oklo Resources Limited, for the year ended 30 June 2018,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit (WA) Pty Ltd
Neil Smith
Director
Perth, 28 September 2018
Oklo Resources Limited and its Controlled Entities
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OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
ASX ADDITIONAL INFORMATION
As at 31 AUGUST 2018
The following information is required by the Australian Securities Exchange Limited in respect of listed
public companies:
1. Shareholding
(a)
Distribution of shareholders- fully paid ordinary shares
Size of Holding
1-1,000 shares
1,001 - 5,000 shares
5,001 – 10,000 shares
10,000 – 100,000 shares
100,001 shares and over
Total
Number of
Shareholders
229
270
131
372
210
1,212
Percentage of
Holders
18.9%
23.3%
10.5%
30.7%
17.3%
100.0%
Number of Shares
85,247
750,434
1,064,667
16,114,404
334,691,528
302,405,510
Percentage
of Shares
0.0%
0.2%
0.3%
4.5%
95.0%
100.0%
(b)
Marketable Parcels
The number of shareholdings held in less than a marketable parcel is 315 holders with 207,772
shares. The required marketable parcel is $500 (2,000 shares).
(c)
Substantial Shareholders
The company has received the following details of substantial shareholdings as notified
pursuant to sections 671B of The Corporations Act.
Substantial Shareholder
Number of Securities
Voting Power
Blackrock Group
1832 Asset Management LP
Hawkstone Group
Resolute Mining Limited
ACK Pty Ltd
44,750,531
23,020,105
19,700,000
16,529,366
16,510,331
14.8%
7.61%
6.51%
5.47%
5.46%
(d)
Voting Rights
The Constitution of Oklo Resources Limited provides that on a show of hands every member
present or by proxy, attorney or other representative will have one vote for each fully paid
share held by that member.
Options do not carry any voting rights.
Oklo Resources Limited and its Controlled Entities
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ASX ADDITIONAL INFORMATION
As at 31 AUGUST 2018
Top Twenty Shareholders of Oklo Resources Limited – Ordinary Shares:
HSBC Custody Nominees (Australia) Limited
Resolute (Treasury) Pty Ltd
J P Morgan Nominees Australia Limited
Citicorp Nominees Pty Limited
ACK Pty Ltd
Hawkestone Resources PTY LTD
GP Securities PTY LTD
Capricorn Mining PTY LTD
TT Capital Nominees PTY LTD
Delta Resource Management Pty Ltd
Calama Holdings Pty Ltd
HSBC Custody Nominees (Australia) Limited - A/C 2
HSBC Custody Nominees (Australia) Limited-GSCO ECA
Jimbazal Pty Ltd
Jimbazal Pty Ltd
Octifil Pty Ltd
Mrs Louise Hawke
Darroch Family PY LTD< JN Darroch Private Super A/C>
Mr John Darroch
Darroch Family PY LTD< JN Darroch Super HD A/C>
Totals: Top 20 Holders of ORDINARY Shares (TOTAL)
Total Remaining Holders Balance
Fully Paid Ordinary
Shares
94,415,991
36,298,232
25,987,650
18,486,878
16,510,331
14,100,000
11,305,500
8,000,000
5,922,417
4,000,000
3,903,750
3,400,000
2,901,446
2,666,667
2,593,333
2,135,146
2,060,001
2,000,000
2,000,000
1,900,000
260,217696
92,488,584
Percentage
of
Total
26.77%
10.29%
7.37%
5.24%
4.68%
4.00%
3.21%
2.27%
1.68%
1.13%
1.11%
0.86%
0.82%
0.76%
0.74%
0.61%
0.58%
0.57%
0.57%
0.54%
73.78%
26.22%
Oklo Resources Limited and its Controlled Entities
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OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
ASX ADDITIONAL INFORMATION
As at 31 AUGUST 2018
Unlisted options Issued by The Company
The company has the following unlisted options and option holders as detailed below:
Holder
Ms Susan Boyd
Taycol Nominees Pty Ltd
Yoix Pty Ltd
Ms Susan Boyd
Dr Madani Diallo
Clarkson’s Boathouse Pty Ltd
Ms Louisa Martino
Portafortuna Pty Ltd
Ms Susan Boyd
Dr Madani Diallo
Fernland Holdings Pty Ltd
Jalonex Investments Pty Ltd
Jimbzal Pty Ltd
Jimbzal Pty Ltd
Djibril Diakite
Hades Corporation (WA) Pty Ltd
Dr Madani Diallo
Hades Corporation (WA) Pty Ltd
Jimbzal Pty Ltd
Cairn Consulting Limited
Dr Madani Diallo
Hades Corporation (WA) Pty Ltd
Jimbzal Pty Ltd
Cairn Consulting Limited
Mr Mamadou Bathily
Mr Djibril Diakite
Mr Sayon Fofana
Mr Diawoye Guindo
Mr Yann Itard
Mr Hadi Ly
Ms Louisa Martino
Portafortuna Pty Ltd
Mr Adama Sidibe
Mr Bou Gou Zan
Mr Mamadou Bathily
Mr Djibril Diakite
Mr Sayon Fofana
Mr Diawoye Guindo
Exercise Price
$0.15
$0.15
$0.22
$0.25
$0.25
$0.25
$0.25
$0.25
$0.30
$0.30
$0.25
$0.25
$0.25
$0.30
$0.20
$0.20
$0.49
$0.49
$0.49
$0.395
$0.455
$0.455
$0.455
$0.345
$0.35
$0.35
$0.35
$0.35
$0.35
$0.35
$0.35
$0.35
$0.35
$0.35
$0.40
$0.40
$0.40
$0.40
Expiry Date
7/12/2018
27/1/2019
28/4/2019
17/6/2019
17/6/2019
17/6/2019
17/6/2019
17/6/2019
22/06/2020
22/06/2020
11/8/2019
11/8/2019
11/8/2019
11/8/2020
2/11/2019
22/12/2019
21/11/2020
21/11/2020
21/11/2020
21/11/2020
21/11/2019
21/11/2019
21/11/2019
21/11/2019
24/11/2019
24/11/2019
24/11/2019
24/11/2019
24/11/2019
24/11/2019
24/11/2019
24/11/2019
24/11/2019
24/11/2019
24/11/2020
24/11/2020
24/11/2020
24/11/2020
Number
500,000
1,000,000
1,000,000
1,000,000
1,000,000
500,000
250,000
250,000
1,000,000
500,000
1,000,000
1,000,000
1,500,000
1,500,000
250,000
1,000,000
1,250,000
625,000
2,000,000
1,000,000
1,250,000
625,000
2,000,000
1,000,000
150,000
50,000
37,500
75,000
250,000
150,000
125,000
125,000
37,500
50,000
150,000
50,000
37,500
75,000
Oklo Resources Limited and its Controlled Entities
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OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
ASX ADDITIONAL INFORMATION
As at 31 AUGUST 2018
Mr Yann Itard
Mr Hadi Ly
Mr Adama Sidibe
Mr Bou Gou Zan
Ms Louisa Martino
Portafortuna Pty Ltd
Georats Limited
Georats Limited
As Cubed Pty Ltd
As Cubed Pty Ltd
Holder
TOTAL
Exercise Price
$0.40
$0.40
$0.40
$0.40
$0.40
$0.40
$0.35
$0.40
$0.37
$0.42
Expiry Date
24/11/2020
24/11/2020
24/11/2020
24/11/2020
24/11/2020
24/11/2020
24/11/2019
24/11/2020
15/12/2019
15/12/2020
Number
250,000
150,000
37,500
50,000
125,000
125,000
250,000
250,000
125,000
150,000
25,875,000
Oklo Resources Limited and its Controlled Entities
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ASX ADDITIONAL INFORMATION
As at 31 AUGUST 2018
2.
COMPANY SECRETARY
The name of the Company Secretary is Louisa Martino.
3.
REGISTERED OFFICE
Level 5, 56 Pitt Street
Sydney, NSW, AUSTRALIA, 2000
+61 2 8823 3100
Telephone:
+61 2 9525 8466
Facsimile:
www.okloresources.com
Website:
4.
REGISTERS OF SECURITIES
Computershare Investor Services Pty Ltd
Level 11,
172 St Georges Terrace
Perth, WA, 6000
5.
STOCK EXCHANGE LISTING
Australian Securities Exchange Limited
(ASX Code: OKU)
6.
RESTRICTED SECURITIES
The Company has the following restricted securities: nil
7.
ON MARKET BUY-BACK
The company does not have a current on market buy-back facility.
Oklo Resources Limited and its Controlled Entities
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ASX ADDITIONAL INFORMATION
As at 31 AUGUST 2018
8.
TENEMENT DIRECTORY
Granted tenements as at the date of this report:
Country
Location
Prospect
Tenement Number
Holder
North East
Mali
West
Mali
Mali
South Mali
Kidal
Tessalit
Samit Nord
Aourou
Boutouguissi-Sud
Aite Sud
Gombaly
Dandoko
Moussala
Yanfolila
Yanfolila Est
Solabougouda
Sirakourou
Kolondieba
Kolondieba Nord
09/3639/MM-SG DU
08/12/2009
09/3640/MM-SG DU
08/12/2009
11/0463/MM-SG DU
16/02/2011
2017-2648/MM-SG DU
10/08/2017
2017-2647/MM SG DU
10/08/2017
2015-1279/MM-SG DU
15/05/2015
2017-2646/MM-SG DU
10/08/2017
2017-2644/MM-SG DU
10/08/2017
2015-4006/ MM-SG DU
23/12/2015
2017-2783/MM-SG DU
22/08/2017
2016-4075/MM-SG DU
08/11/2016
2016-4847/MM-SG DU
30/12/2016
2016-4753/MM-SG DU
29/12/2016
2017-2645/MM-SG DU
10/08/2017
2016-2164/MM-SG DU
16/06/2018
Oklo Uranium Mali Ltd sarl
Oklo Uranium Mali Ltd sarl
Oklo Uranium Mali Ltd sarl
SOCAF sarl
SOCAF sarl
Oklo Resources Mali sarl
Africa Mining sarl
Africa Mining sarl
Africa Mining sarl
Africa Mining sarl
Oklo Resources Mali sarl
Africa Mining sarl
Africa Mining sarl
Africa Mining sarl
Compass Gold Mali sarl
The Company has entered into agreements in respect of the following tenements:
Country
Location
Prospect
Tenement Number
Holder
Mali
West Mali
Kouroufing
Kandiole
Kossaya
2017-2494/MM-SG DU
31/07/2017
2016-4848/MM-SG
2013-0513/MM-SG DU
19/02/2013
Kouroufing Gold S.A.
Xinga Gold sarl
Sogetrac Sarlu
Sari
Being issued
Ecosud sarl
Oklo Resources Limited and its Controlled Entities
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OKLO RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ANNUAL REPORT 2018
Oklo Resources Limited ASX:OKU
Level 5, 56 Pitt Street, Sydney NSW 2000, Australia
T: +61 2 8319 9233 | F: +61 2 9252 8466 | info@okloresources.com
okloresources.com