EASTERN GOLDFIELDS LIMITED
ABN 69 100 038 266
ANNUAL REPORT
FOR THE YEAR ENDED 30 JUNE 2016
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EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
ABN 69 100 038 266
CORPORATE DIRECTORY AND CONTENTS
BOARD OF DIRECTORS
Michael Fotios
Alan Still
Craig Readhead
Executive Chairman
Non-Executive Director
Non-Executive Director
COMPANY SECRETARY
Shannon Coates
REGISTERED OFFICE AND PRINCIPAL PLACE OF
BUSINESS
24 Mumford Place
BALCATTA
WA 6021
Telephone: (61-8) 6241 1802
Facsimile: (61-8) 6241 1811
E-mail: admin@easterngoldfields.com.au
Web-site: www.easterngoldfields.com.au
SHARE REGISTRY
Computershare Investor Services Pty Ltd
Level 11, 172 St. George’s Terrace
Perth WA 6000
Telephone: (61-8) 9323 2000
Facsimile:
(61-8) 9323 2033
E-mail: perth.services@computershare.com.au
Web-site: www.computershare.com.au
Corporate directory and contents ..................... 1
Directors’ report ................................................ 2
Auditor’s independence declaration ................ 27
Consolidated statement of profit or loss and
other comprehensive income….……………...28
Consolidated statement of financial position...29
Consolidated statement of changes in equity.30
Consolidated statement of cash flows…….….31
Notes to the consolidated financial
statements ……………………………………...32
Directors’ declaration ……………………….…64
Independent auditor’s report ……………….…65
Tenement Schedule……………………………68
Annual Mineral Resource Statement….……..73
Additional ASX Information……...…………….75
AUDITORS
Ernst & Young
SOLICITORS
Squire Patton Boggs
BANKERS
National Australia Bank Limited
STOCK EXCHANGE LISTING
Shares in Eastern Goldfields Limited are listed on the
Australian Securities Exchange under the trading code
EGS
This financial report covers the consolidated financial statements for the Group, consisting of Eastern
Goldfields Limited and its subsidiaries.
The annual financial report is presented in Australian dollars.
Eastern Goldfields Limited is a company limited by shares, incorporated and domiciled in Australia.
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EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
30 JUNE 2016 FULL YEAR REPORT
DIRECTORS’ REPORT
The Directors of Eastern Goldfields Limited (previously named Swan Gold Mining Limited) (“Eastern Goldfields” or
“Company”) present their report on the results and state of affairs of the consolidated entity, being the Company and
its controlled entities (“Group”) for the financial year ended 30 June 2016.
The Company changed its name to Eastern Goldfields Limited on 11 November 2015.
DIRECTORS
The names of the Directors of Eastern Goldfields in office during the course of the financial year and up to the date of
this report are as follows:
Michael Fotios
Craig Readhead
Alan Still
All Directors held their position as a Director throughout the entire financial year and up to the date of this report.
INFORMATION ON DIRECTORS
Director
Qualifications, experience and special responsibilities
Michael Fotios
Executive
Chairman
BSc (Hons) MAusIMM
A Director since September 2012, Mr Fotios is a geologist specialising in economic geology with
27 years’ extensive experience in exploration throughout Australia for gold, base metals, tantalum,
tin and nickel and taking projects from exploration to feasibility. He previously held positions with
Homestake Australia Limited and Sons of Gwalia Limited. He was Managing Director and a
Director with Tantalum Australia NL (now ABM Resources Ltd) from September 1999 to October
2005. His last position was as Managing Director of Galaxy Resources Limited. Michael Fotios is
founder and current Executive Chairman of Investmet Limited and is regarded as having control
of Investmet.
Other current directorships: Pegasus Metals Limited (from December 2009), Horseshoe Metals
Limited (from May 2012), Galaxy Resources Limited (from August 2016), Redbank Copper
Limited (from September 2012), General Mining Corporation Limited (from June 2012), and Oklo
Resources Limited (from July 2016).
Former directorships in the last three years: Northern Star Resources Limited (from September
2009 to October 2013) and Stirling Resources Limited (now Stirling Resources Pty Ltd) (from
September 2012 to November 2012).
Alan Still
Non-Executive
Director
AMIM
Alan Still is a metallurgist with over 14 years’ experience in steelmaking and a further 41 years’
mining experience in a variety of commodities including a detailed knowledge of a number of
African based rare metals projects.
Current directorships: Zedsee Enterprises (Pty) Limited, Horseshoe Metals Limited, Pegasus
Metals Limited, and Investmet Limited.
Former directorships in the last three years: General Mining Corporation Limited
Craig Readhead
Non-Executive
Director
B Juris Lib
Mr Readhead is one of WA’s leading mining and resource lawyers with over 33 years legal and
corporate advisory experience specialising in the resources sector, including the implementation
of large scale mining projects both in Australia and overseas. In 2009, Craig was identified as one
of the top ten Best Mining Lawyers in Australia published by the Australian Financial Review. Craig
is a former Partner of law firm, Allion Legal.
Current directorships: Beadell Resources Limited, Western Areas Limited and Redbank Copper
Limited.
Former directorships in the last three years: Galaxy Resources Limited (to November 2013),
General Mining Corporation Limited (to October 2015), and Heron Resources Limited (to April
2015).
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EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
30 JUNE 2016 FULL YEAR REPORT
DIRECTORS’ REPORT
OPERATING AND FINANCIAL REVIEW
This review provides to shareholders an overview of Eastern Goldfields’ 2016 operations, financial position, business
strategies and prospects.
The review also provides contextual information, including the impact of key events that have occurred during 2016 and
material business risks faced by the business so that shareholders can make an informed assessment of the results
and prospects of the Group. The review compliments the financial report and has been prepared in accordance with
recently released guidance set out in ASIC Regulatory Guide 247 (“RG 247”).
1. Operating Review
Core Business
Eastern Goldfields, via its subsidiaries, is the 100% owner of the Davyhurst Gold Project 120km north-west of Kalgoorlie,
and the Mt Ida Gold Project located 200km north-west of Kalgoorlie. Processing infrastructure includes a 1.2Mtpa
processing plant, two camps (Davyhurst Central and Mt Ida), mains power and working bore fields.
The Group also holds a substantial tenement position (1,420 square kilometres, 150km strike length), surrounding the
existing infrastructure.
Principal Activities and Significant Changes in those Activities
The principal activity of the Group during the financial year was mineral exploration and evaluation, and care and
maintenance of its historically producing gold mines being the Davyhurst Gold Project and the Mt Ida Gold Project.
The Davyhurst Project includes both open cut and underground mining targets. Mining operations will initially
commence on open pit resources at Siberia and underground resources within the Davyhurst area. The Davyhurst area
hosts some of the largest deposits within the entire portfolio and has considerable potential for the discovery of new
gold deposits, in addition to the extension of existing resources.
The Company’s immediate focus remains centred on the evaluation of mining opportunities. Work programs carried out
during the year were designed to cover Mineral Resource definition & extension drilling, exploration of known
mineralisation along with grassroots programs targeting new discoveries. The Company also initiated the refurbishment
of the 1.2Mtpa Davyhurst Processing Plant which is underway.
Project Development
Siberia Project Area
The Siberia mining centre is 35km south east of Davyhurst and contains two main deposits, namely Sand King and
Missouri, both of which remain the subject of detailed mine evaluation works.
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EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
30 JUNE 2016 FULL YEAR REPORT
DIRECTORS’ REPORT
Figure 1: Siberia Deposit Location Map
In early 2016 the Company commenced drilling with three diamond rigs at the Sand King and Missouri Gold deposits
at the Siberia Project. The resource definition drilling program consists of approximately 6,000 metres of diamond core
drilling and 6,000 metres of reverse circulation drilling from within and around the existing Sand King and Missouri open
pit deposits.
Davyhurst Project Area
Golden Eagle Deposit
Underground mine evaluation works continued on the Golden Eagle deposit which is located 2km from the Davyhurst
Processing Plant. These works are advanced and included optimising and finalising mines designs, surface
infrastructure layouts and submission of regulatory approval documents.
As announced on 19 May 2016, drilling on the Golden Eagle Deposit has confirmed the Company’s recently revised
geological model and the importance of the Quartz-Feldspar-Lode association with the location of high grade gold.
Golden Eagle has been identified as an additional near term underground mining target. The first phase of the drilling
is now complete, with results confirming that mineralisation extends over 100m north of the existing resource boundary
and remains open at both depth and in the down plunge direction.
LOI Mining Centre
A diamond drilling program was completed during the year, with 3 holes drilled into the Makai Deposits and an additional
exploratory diamond hole into the Great Ophir Lode system
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EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
30 JUNE 2016 FULL YEAR REPORT
DIRECTORS’ REPORT
The Makai deposit is a lode system that sits in an up dip position to the main Lights of Israel deposit (LOI), which is
located 700m from the Davyhurst Processing Plant. A mining event has been proposed which targets Makai while
leveraging off the existing LOI capital development, ultimately providing access options for the entire known plunge
length of this deposit.
Detailed geotechnical assessment of the Makai diamond core was undertaken; along with an underground inspection
examining the LOI vent adit, main portal, decline and stockpiles. All were found to be in fair to good condition. The
standing water level within the mine was also found to be below the current planned mining event.
Figure 2: LOI Mining Centre Complex – 3D view.
(Refer to ASX announcements dated 28 January 2016 and 10 August 2016 for further information)
The potential quantity and grade of the Exploration Targets are conceptual in nature. There has been insufficient
exploration to estimate a Mineral Resource and that it is uncertain if further exploration will result in the estimation of a
Mineral Resource. The Exploration Targets are based upon a comprehensive geological and mineralisation review
conducted by Eastern Goldfields. This modelling utilised a combination of exploration drilling data, underground
sampling along with detailed geologic observations. A high proportion of the LOI deposit was drilled with diamond core
and as such there has been significant data available to compile geologic models and justify the projection of
mineralisation down plunge.
Historical survey, geology and assay records reviewed, validated and were utilised to create a 3-dimensional geological
and mineralisation model. RC drill diameter was 5 ½ inch and diamond core size was NQ. RC drill sample were
collected at 1m intervals and diamond core was cut to geological intervals. Assay methods of drill hole samples was by
aqua regia or fire assay using accredited laboratories.
The grades of these Exploration Targets have been assigned by detailed assessment of previous production from the
Lights of Israel and Great Ophia Deposits along with detailed statistical modelling (ID2 and Ordinary Kriging) of sample
grades from within the mineralised systems. In areas where there is little or no existing data the grade has been derived
from the geological investigations into continuity of existing mineralisation and geology (projecting down plunge) and
are conceptual in nature with confirmatory RC and DD drilling required to validate these targets which is scheduled for
completion in 2016. Samples will be submitted to accredited laboratories for gold assay (fire assay) with a full suite of
QAQC samples (blanks, standards and field duplicates).
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EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
30 JUNE 2016 FULL YEAR REPORT
DIRECTORS’ REPORT
Riverina Project Area
The Riverina deposit lies approximately 40km north-west of Davyhurst and contains a mineral resource of 2.6Mt @
2.5g/t for 205,000ounces. It remains a high priority mining target following on from the planned Siberia mining event.
Open pit mining was initially commenced by Monarch in 2007/2008 but only reached a depth of 20m. Significant RC
grade control drilling was completed by Monarch at the time which included 2,345 holes, drilled on a tight 5m x 5m
pattern, totalling 37,000m. Monarch went into administration during the mining of Riverina, leaving much of the area
covered by grade control drilling, unmined. Limited mining has taken place in the north of the design, the remainder
was cleared in preparation for mining.
Figure 3: Riverina Complex and pit design. (Refer to ASX announcement dated 13 September 2016 for further information)
The close spaced drilling to a maximum depth of 32m has provided additional information that has not been used in
previous resource models. A preliminary resource model was initiated during the quarter, using only the grade control
drilling, to quantify the near surface ore potential. This work is ongoing and will be integrated with the existing wider
spaced (20m x20m) resource drilling.
The mineralisation defined by this grade control drilling is seen as an immediate low cost oxide ore source for the mill
at Davyhurst. The close spaced drilling has identified areas of significant near surface oxide mineralisation, not
previously identified in the resource drilling.
Mt Ida Gold Project
The Mt Ida Project is a high grade underground deposit located 200km north-west of Kalgoorlie-Boulder, 120km from
the Davyhurst Processing Plant, containing a mineral resource of 316,700t @ 13.8g./t for 140,500 ounces. Mt Ida mine
has been narrow vein mining operation with fully serviced shaft, winder and workshops 80-person operating camp
servicing the mine and an airstrip at the nearby abandoned Bottle Creek mine.
The exploration potential for this multiple lode system is considered high. The Company intends to drill out the system
to identify sufficient resource to allow conventional decline access targeting multiple mineralised horizons.
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EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
30 JUNE 2016 FULL YEAR REPORT
DIRECTORS’ REPORT
Figure 4: Mt Ida Complex. (Refer to ASX announcement dated 13 September 2016 for further information)
Environmental Compliance
The Company’s Annual Environmental Reports were lodged with the Department on 31 March 2016 for the period from
28 February 2015 to 30 March 2016. The Department has provided an extension until 15 April 2016 for the Lady Ida
Mine Closure Plan.
Mining Approvals
A preliminary pre-submission mining approval meeting was held with the DMP Environmental Branch on 9 March 2016.
Two approvals, namely the Siberia Open Cuts and the Golden Eagle Underground proposals were discussed and have
subsequently been submitted. Over the period, the mine layouts, dewatering, pit and landform designs and rehabilitation
scheduling was completed.
Siberia Clearing Permit
An ecological survey report, resultant from the November field survey, was finalised on 2 March 2016. A Native
Vegetation Purpose (Clearing) Permit was lodged with the Native Vegetation Branch of the DMP on 3 March 2016.
Davyhurst Tailing Storage Expansion
Work continued on geotechnical analysis of the existing TSF, progressing through to the engineering design stage. An
option study was also completed which examined future tailings storage options. The engineering study is now complete
and provides the details required for the development of a tailing storage plan for the next 4 years of operation.
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EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
30 JUNE 2016 FULL YEAR REPORT
DIRECTORS’ REPORT
EXPLORATION
Figure 5: Davyhurst Project Areas
Regional Mapping
As part of a tenement wide data collation exercise, the Company has enlisted specialist consultants to conduct 1:10,000
scale regional mapping over its entire tenure. The Siberia Project has been recently completed with attention now
directed to the Mulline Project Area, which encompasses several sizable deposits, namely the Giles and Lady Gladys
and Deposits. Mapping of the Mulline \ Riverina area has progressed during the quarter and is scheduled for completion
in the 3rd quarter of 2016.
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EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
30 JUNE 2016 FULL YEAR REPORT
DIRECTORS’ REPORT
Davyhurst Project Area
Figure 6: Davyhurst Project Area Drill Sites.
Golden Eagle
Drilling at The Golden Eagle Deposit (GED), located near Davyhurst in Western Australia has confirmed the Company’s
recently revised geological model and the importance of the Quartz-Feldspar-Lode (QFL) association with the location
of high gold grades (refer to ASX announcement 19 May 2016).
• GEDD002 with 2.7m @ 13.74g/t Au from 112.8m Incl 0.7m @ 36.60g/t Au
• GEDD014 with 6.1m @ 4.81g/t Au from 229.2m
• GEDD001 with 5.0m @ 5.00g/t Au from 119.0m
• GEDD006 with 3.0m @ 6.27g/t Au from 134.0m
• GEDD007 with 2.95m @ 11.06g/t Au from 157.05m
• GEDD011 with 4.25m @ 6.08g/t Au from 165.95m Incl 1.55m @ 12.91g/t Au
• GEDD015 with 3.43m @ 5.66g/t Au from 188.42m
• GEDD007 with 1.74m @ 9.43g/t Au from 162.36m
The GED has been identified as an additional near term underground mining target. The revised geological model was
developed with a focus on defining the high grade hanging-wall mineralisation (see Figure 1 & 2) from the broader 10-
20 metre wide mineralised zone that was previously bulk mined in a large open pit
The GED is hosted within the same geological unit as the Lights of Israel Deposit that historically produced 4.7Mt @
3.0g/t Au and was mined to over 500 vertical metres below the natural surface. The GED displays numerous geological
similarities, suggesting the exploration potential for down plunge continuation remains significant.
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EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
30 JUNE 2016 FULL YEAR REPORT
DIRECTORS’ REPORT
The Company has previously informed the market that underground mining evaluation work has returned positive
results. All the statutory approvals required to commence mining have been lodged with the regulator and are currently
being assessed.
Figure 7: Looking East – long Section showing drill hole intersections and resource outline.
(Refer to ASX announcement 19 May 2016)
Walhalla North
As part of a project review of the Round Dam mineralised trend, the area between the Walhalla and Federal Flag pits
was identified as a potential source for shallow oxide resources. Of particular interest were historical drilling results that
included 6m @ 19.21g/t (WARC145), 5m @ 26.49g/t (WARC175) and 4m @ 20.53g/t (WARC176) (refer to ASX
release 15 June 2016) within the Walhalla North Prospect.
The Walhalla North prospect is situated midway between the Federal Flag and Walhalla open pits which are 1.1km
apart. Walhalla and Federal Flag deposits were both mined by Monarch Gold in 2007 and 2008, the last operator of
the Davyhurst Project. The prospect is approximately 14 km from the Company’s processing plant at Davyhurst.
The key objectives of the Company’s drilling was to confirm the location and tenor of the existing drilling via a twin hole,
obtain structural data from diamond drilling and to extend depth and strike extents to mineralisation.
Drilling successfully intercepted mineralisation with the following results (refer to ASX announcements 15 June 2016
and 18 July 2016):
o WARC0184 with 7.0m @ 3.70g/t Au from 98.0m
o WARC0189 with 2.0m @ 5.74g/t Au from 15.0m
o WARC0184 with 3.0m @ 3.29g/t Au from 44.0m
o WARC0184 with 3.0m @ 3.26g/t Au from 87.0m
o WADD001 with 3.3m @ 5.96g/t Au from 15.7m including 0.5m @ 30.29g/t
o WADD001 with 9.8m @ 5.57g/t Au from32m including 0.8m @ 44.10g/t & 0.7m @
17.36g/t
o WADD002 with 25.6m @ 1.57g/t Au from 24m including 0.70m @ 12.00g/t
o WADD002 with 0.4m @ 56.3g/t Au from 54.9m
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EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
30 JUNE 2016 FULL YEAR REPORT
DIRECTORS’ REPORT
Figure 8: Walhalla North – location setting.
Dexy Prospect
The Dexy Prospect is situated 400 metres south of the Waihi open pit which has historically produced 704,000t @
2.39g/t for 54,000 ounces. The historical Golden Pole underground mine (circa 1900) located 200m to the west of the
Waihi pit was one of Davyhurst’s highest grade undergrounds at the time, producing 81,000t @ 29.7g/t for 77,000
ounces.
As part of a project review of the Round Dam mineralised trend, the area between the Waihi and Lady Eileen pits was
identified as a potential source for shallow oxide resources. Of particular interest was historical drilling results that
included 7m @ 3.04g/t, 10m @ 2.56g/t and 6m @ 3.11g/t within the Dexy Prospect.
Drilling returned significant mineralisation (refer to ASX announcement 26 May 2016):
• WSRC034 with 5.00m @ 11.04g/t Au from 65.0m
• WSRC032 with 8.00m @ 2.94g/t Au from 35.0m
• WSRC032 with 6.00m @ 3.08g/t Au from 12.0m
• WSRC034 with 2.00m @ 5.45g/t Au from 20.0m
The Dexy mineralisation has been defined over a strike length of greater than 300 metres, while the structure itself
remains open to the north and south and is prospective for over 500 metres. Additional parallel mineralised trends also
exist to the east and west of the main Dexy mineralised zones, which remain untested. Further infill and extensional
drilling is planned, which will be used to determine a maiden Mineral Resource estimation.
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EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
30 JUNE 2016 FULL YEAR REPORT
DIRECTORS’ REPORT
Figure 9: Dexy Prospect.
Macedon South Prospect
The Macedon South prospect is situated 1.6km south of the Walhalla pit, along the same Round Dam mineralised trend.
This trend extends approximately 18km from Waihi in the north to Salmon Gums in the south.
A total of six holes were drilled at Macedon South to infill previous anomalous RC and RAB gold results. The previous
zones of mineralisation were confirmed but the tenor of anomalism was downgraded.
Significant results include (refer ASX announcement 5 May 2016):
LGNRC006
LGNRC004
4.0m @ 1.4g/t
1.0m @ 3.1g/t
from 40m
from 50m
Callion Project Area
Gila Prospect
The Gila Prospect is located approximately 5km south east of the Callion pit. The recent drilling aimed to further
investigate historical drilling intersections, defined with the database.
The prospect was first defined by RAB drilling in the 1990s. Further RAB drilling carried out in 2005 intercepting 13m
@ 8.65g/t in upper saprolite mafic zone in hole CARB180. No further follow up work has been completed since 2005.
Eastern Goldfields completed a program of eight RC holes on three 50m spaced liens to test the historical RAB intercept
of 13m @ 8.65g/t. Drilling successfully intersected a steep east dipping mineralised zone related to quartz veining and
a possible felsic intrusion at depth within Basalt.
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EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
30 JUNE 2016 FULL YEAR REPORT
DIRECTORS’ REPORT
Significant results include (refer ASX announcement 5 May 2016):
GARC007
GARC005
GARC005
3.0m @ 18.9g/t
4.0m @ 9.5g/t
4.0m @ 2.2g/t
from 115m
from 20m
from 31
Further drilling, including diamond drilling, is planned to better understand the controls on mineralisation and to test the
extents of mineralisation.
Figure 10: Gila Prospect Drill Hole Cross Section.
Glasson North Prospect
The Company was drawn to the Glasson North historical workings as they are believed to be related to the northern
extension of Glasson Deposit located 600m to the south. The main Glasson deposit has been mined by both open cut
and underground mining methods. This mineralisation is interpreted to be dextrally offset (off set to the east) by a north-
east trending D2 structure.
Eastern Goldfields completed six holes on two lines to test beneath these old workings. Drilling intersected mineralised
moderately east dripping quartz veining within a narrow biotite altered structure.
Significant results include (refer ASX announcement 5 May 2016):
GVNRC003
GVNRC001
2.0m @ 6.3g/t
2.0m @ 2.9g/t
from 55m
from 16m
Further drilling is planned to test the extent of mineralisation along strike and down dip.
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EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
30 JUNE 2016 FULL YEAR REPORT
DIRECTORS’ REPORT
Figure 11: Glasson North Prospect Drill Hole Cross Section.
MULLINE \ RIVERINA PROJECT
Forehand and Riverina North
The Forehand Resource lies 1km to the east of the Riverina deposit on M30/178. The current open pit Resource for
Forehand is 821,500T @ 1.8/t for 47,463 ounces at a 1g/t cut-off grade.
A number of shallow infill RC holes were drilled for a total of three holes for 235 metres, drilling successfully intercepted
mineralisation and will be incorporated into the existing dataset and geological models.
The Riverina North Prospect is situated ~2.5km north of the Riverina mine. The prospect consists of a 2000m by 600m
+20ppb Au auger anomaly, which is coincident with an interpreted cross cutting structure. A line of historical RC returned
1m @ 4.45g/t. Four holes for 400 metres were drilled.
No significant results were returned.
Foxtrot Prospect
The Foxtrot Prospect is located within the Mulline group of tenements, approximately 2,500m north of the Lady Gladys
pit. The prospect sits at the southern end of a 7km long north south trending mineralised zone that extends from Lady
Jane in the north to Lady Gladys in the south.
The Foxtrot prospect was defined by RAB drilling completed by Croesus in 2000. Significant intersections include
MERB232, 7m @ 2.3g/t from 35m and MERB247 5m @ 3.0g/t from 36m. Gold mineralisation is associated with quartz
veining within Basalt. Mineralisation was interpreted to be shallowly dipping (~30o) to the east as at the Peachtree and
Lady Gladys deposits.
Eastern Goldfields Mining completed a program of eight RC holes on three 100m spaced lines. The orientation and
controls on gold mineralisation are unclear at this line spacing. However, it is believed that results received to date
warrant further infill and extensional drilling.
Significant results include (refer to ASX announcement 5 May 2016):
• FTRC003 with 5.0m @ 7.5g/t from 38m ( Inc 2.0m @ 17.3g/t)
• FTRC006 with 1.0m @ 7.0g/t from 39m
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EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
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DIRECTORS’ REPORT
Figure 12: Foxtrot Prospect Drill Hole Cross Section.
Mulline Offset
The Mulline offset prospect lies 1km north of the Lady Gladys pit. Six RC holes were drilled to test a possible east west
structural off set between Lady Gladys and Young Australia. An east west orientation can be seen within the surface
geochemistry and on aeromagnetic imagery.
Significant results include (refer to ASX announcement 5 May 2016):
MSRC004
MSRC002
1.0m @ 7.6g/t
1.0m @ 1.6g/t
from 50m
from 60m
Auger Drilling
A total of 1,835 holes of auger were drilled across six tenements on the Siberia and Lady Ida Projects. Drilling was
carried out on a nominal 200m by 80m grid. This work was designed to infill gaps in the existing Auger and Vacuum
coverage, and to follow up previously defined gold anomalies. All samples were submitted to Genalysis for gold and a
mutli-element suite analysis.
Siberia South results have returned three large coherent +20ppb gold anomalies (with +100ppb centres) coincident
with the base of the Missouri basalt, the contact between the Siberia Komatite and the Walter Williams formation and a
north east striking Ultramafic unit within the Missouri basalt. A number of theses anomalies have received no gold
exploration to date and are being accessed for further follow up work.
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EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
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DIRECTORS’ REPORT
2. Operating Financial Results
The Company’s financial performance and result is attributable to its ongoing exploration, evaluation and development
costs, project care and maintenance costs and corporate administration costs.
The Group’s net loss after tax for the year was $18,001,267 (2015: $7,701,667).
Financial Position
At 30 June 2016 total Group assets were $21,327,243 (2015: $3,325,037) and net assets were $4,164,491 (Net
shareholders’ deficit 2015: $40,896,509).
Liquidity and Capital Resources
The table below sets out summary information about the Group’s earnings and movement in shareholder wealth for the
five years to 30 June 2016.
Performance Measures
FY 2016
FY 2015
FY 2014
FY 2013
FY 2012
$
$
$
$
$
Net assets/(liabilities)
4,164,491
(40,896,509)
(33,269,842)
(27,143,125)
(5,214,181)
Current assets
Cash
16,669,018
15,401,037
260,877
52,366
988,457
215,699
5,836,151
235,603
467,444
259,169
Contributed equity
228,342,835
168,040,331
167,965,331
167,665,331
164,665,331
Accumulated losses
(232,230,721)
(214,229,454)
(206,527,787)
(200,101,070)
(175,214,426)
EBITDA (1)
(16,287,920)
(5,350,525)
(4,589,604)
(24,811,010)
(3,734,000)
Net loss before tax
(18,011,267)
(7,701,667)
(6,469,017)
(24,886,641)
(4,413,000)
Share price at start of year
Share price at end of year
Loss per share
0.15*
0.43
(0.08)
0.15*
0.15*
(0.08)
0.15*
0.15*
(0.07)
0.15*
0.15*
(0.30)
0.15*
0.15*
(0.59)
*The share price of the Company remained unchanged since its suspension from the ASX in 2008.
(1) This information is non-IFRS information that has been disclosed to assist users in understanding the Group’s
operations
(2) EBITDA represents earnings before interest, tax, depreciation and amortisation.
3. Key Developments
Significant Changes in the State of Affairs
Change of Company Name
The Company confirms that, further to shareholder approval at the 2013 Annual General Meeting held on 8 July 2014,
the name of the Company has been changed from Swan Gold Mining Limited to Eastern Goldfields Limited.
The Australian Securities and Investments Commission recorded the change of name on 11 November 2015. The ASX
ticker code changed to EGS on 3 December 2015.
Corporate Activities
Ms Shannon Coates was appointed as Company Secretary effective 26 November 2015.
Capital Raising and Re-listing of Eastern Goldfields
Further to the Appendix 3B lodged on 27 November 2015, Eastern Goldfields announced it had completed a placement
to sophisticated investors, issuing 10,666,667 fully paid ordinary shares at an issue price of $0.15 to raise $1.6 million.
On 29 December 2015, Eastern Goldfields lodged a Prospectus to raise a minimum of $6 million and a maximum of
$10 million of new equity in Eastern Goldfields at $0.15 per share with the ability to accept over subscriptions to raise
an additional $5 million. A Supplementary Prospectus was lodged on 9 February 2016 to increase the maximum to $15
16
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
30 JUNE 2016 FULL YEAR REPORT
DIRECTORS’ REPORT
million. A further second Supplementary Prospectus was lodged on 16 February 2016 to further increase the maximum
raising to $20 million with the ability to accept up to $5 million oversubscription.
The Prospectus offer closed oversubscribed, raising a total of $25 million as announced on 29 February 2016.
Subsequent to this successful raising, Eastern Goldfields was re-instated to official quotation on the Australian
Securities Exchange on 24 March 2016.
On 13 April 2016, Eastern Goldfields raised a further $2.5 million from professional and sophisticated investors. Funds
raised pursuant to this Placement will be applied towards reserve definition drilling, plant refurbishment and general
working capital.
Settlement with Stirling Resources Pty Ltd
On 30 December 2015, the Company announced a revised settlement arrangement with Stirling Resources Pty Ltd
(Stirling Resources) which provided for the following:
• Payment of the remainder of $529,000 pursuant to the previous settlement arrangement to occur in two
tranches of $150,000 on 31 December 2015 and $379,000 plus accrued interest on the diminishing balance of
the previous settlement amount since 1 July 2015 at a rate of 6 per cent per annum to occur on 8 January
2016;
• Upon payment of the settlement amounts, all amounts owing to Stirling under the loan facility agreement with
the Company and other parties, and all related security, will be released;
• Acknowledgement of the amount of $1,000,000 already paid by Eastern Goldfields under the previous
settlement arrangement;
• Agreement to the share buy-back of all of the shares held by Stirling in Eastern Goldfields;
• A further payment of $150,000 by Eastern Goldfields to be made on the earlier of the date which is 3 months
after commencement of gold production at the Davyhurst gold operation and 30 September 2016 (subsequently
paid on 6 October 2016); and
• Subject to commencement of gold production at the Davyhurst gold operation, an issue of 4.5 million ordinary
shares by Eastern Goldfields in two equal tranches on the date of payment of the further $150,000 referred to
above and the earlier of the date which is within 6 months of commencement of gold production and 31
December 2016.
In February 2016, a second amended deed was subsequently entered whereby the payments as part of settlement
were amended as follows:
• Payment of $150,000 on or before 31 December 2015;
• Payment of $200,000 on or before 11 February 2016; and
• Payment of $229,000 plus $33,968 on or before 16 February 2016 or, if a written demand is given by
Stirling pursuant to clause 3(b) of the Settlement Deed, and the non-payment is remedied within 3 business
days after the written demand, $229,000 plus $34,200.
Payments were made in accordance with the settlement deed to Stirling Resources and the outstanding loan amounts
and all related security were released.
At 30 June 2016, the Company was liable to Stirling Resources for:
• A further payment of $150,000 by Eastern Goldfields to be made on the earlier of the date which is 3
months after commencement of gold production at the Davyhurst gold operation and 30 September 2016
(subsequently paid on 6 October 2016); and
• Subject to commencement of gold production at the Davyhurst gold operation, an issue of 4.5 million
ordinary shares by Eastern Goldfields in two equal tranches on the date of payment of the further $150,000
referred to above and the earlier of the date which is within 6 months of commencement of gold production
and 31 December 2016.
17
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
30 JUNE 2016 FULL YEAR REPORT
DIRECTORS’ REPORT
Settlement of Related and Non-Related Debts
On 8 March 2016, the Company also issued 212,371,417 shares in settlement of loans, interests’ component of loans
and in lieu of fees relating to the Resolutions approved by shareholders on 30 December 2015.
Acquisition of Additional Tenements in WA
On 3 May 2016, Eastern Goldfields announced that it had executed a binding agreement (“Agreement”) to acquire
additional tenements (“Tenements”) in the Eastern Goldfields region in Western Australia from Goldstar Resources
(WA) Pty Ltd (“Goldstar”), a wholly owned subsidiary of Orion Gold NL (ASX:ORN) (“Orion”).
Under the terms of the Agreement, the Company agreed to pay to Orion cash consideration of $125,000 and 2,000,000
unlisted options (1,000,000 unlisted options exercisable at $0.168 each on or before 8 March 2018 and 1,000,000
unlisted options exercisable at $0.189 each on or before 8 March 2020). The Company also agreed to procure
subscriptions from external parties for 33,333,333 shares in Orion at an issue price of $0.015 per Share to raise
$500,000, which was completed on 8 June 2016.
The payment of $125,000 was made on 20 May 2016 and the 2,000,000 unlisted options were issued on 13 May 2016.
The Agreement is conditional on withdrawal of the plaints lodged by Goldstar on the Davyhurst, Lady Ida and Riverina
tenements as noted in the Company’s prospectus dated 24 December 2015 (as supplemented).
Significant Events after Reporting Date
Heads of Agreement with Intermin
On 5 September 2016, Eastern Goldfields announced that it has entered into an exploration and development earn-in
joint venture with Intermin Resources Limited (ASX:IRC) (“Intermin”) on tenements containing nearly 200,000 oz Au in
reported resources, and with historic production in excess of 830,000 oz, primarily from underground sources.
Material Terms of Heads of Agreement with Intermin
a) Eastern Goldfields to solely contribute to expenditure of $2M on the Projects to earn a 25% interest within 2 years
of the commencement date (“Initial Interest”);
b) Eastern Goldfields to solely contribute to further expenditure of $2M on the Projects to earn a further 25% interest
within 2 years of earning the Initial Interest (“Further Interest”);
c) Eastern Goldfields to solely contribute to further expenditure of $1.5m on the Projects (inclusive of a BFS to support
a mill installation in the Mt Ida/Menzies region) to earn a further 15% interest within 2 years of earning the Initial
Interest (“Second Further Interest”);
d) while Eastern Goldfields is sole funding the Projects, it will manage the exploration programs on the Projects and
be responsible for maintaining tenure over the Projects areas in good standing, subject to Intermin providing in a
timely manner all cooperation required by Eastern Goldfields;
e) Eastern Goldfields may withdraw from the above expenditure obligations at any time but will be entitled to retain
any interest in the Projects earned (if any) at the date of withdrawal;
f)
g)
Intermin will transfer legal title to each of the Initial Interest and Further Interests as soon as Eastern Goldfields
has earned the beneficial interest as mentioned above;
In respect to the Goongarrie Lady mining lease M29/420, Intermin and Eastern Goldfields agree that the current
resource of 272,014t @ 2.86g/t for 25,000 ounces currently under feasibility study is excluded from the farm in
and both parties will work together on potential milling of the project at the Davyhurst Mill under standard
commercial terms; and
h) For avoidance of doubt, exploration on M29/420 outside of (g) above forms part of the joint venture covering the
Goongarrie Project area.
Upon Eastern Goldfields earning a Project interest of 75%, the parties will:
a)
thereafter each contribute to expenditure on the Projects in accordance with their respective percentage Project
interests from time to time;
b) establish a joint venture committee to make all decisions in respect of exploration, resource development, definitive
feasibility studies, approvals and any other matters required for consideration (“Joint Venture”);
c)
appoint Eastern Goldfields as manager of the Joint Venture unless otherwise agreed, provided that Intermin will
continue to provide in a timely manner all cooperation required by Eastern Goldfields;
18
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
30 JUNE 2016 FULL YEAR REPORT
DIRECTORS’ REPORT
d) make all Joint Venture decisions by majority vote in accordance with the respective percentage Project interests
of the parties from time to time;
e) apply a standard industry straight line dilution formula; and
f)
permit assignment by each party of its Projects interest at any time, provided that the incoming party enters into a
Deed of Assignment and Assumption upon terms reasonably required by the ongoing party.
Conditions
The Heads of Agreement is conditional upon:
a) Eastern Goldfields being satisfied with its due diligence investigations in respect of the Project areas;
b) Eastern Goldfields’ Board resolving to proceed with the transaction set out in the Heads of Agreement;
c)
such other conditions precedent that are customary in transactions of this nature together called “Conditions
Precedent”.
Placement with Intermin
Eastern Goldfields has agreed to subscribe for shares in a placement undertaken by Intermin whereby Eastern
Goldfields will subscribe for 12,500,000 new fully paid ordinary shares in Intermin (“Placement”) at 12 cents per share
(“Subscription Price”) being equal to the terms being offered by Intermin to other investors. It’s understood the
Placement may occur in two tranches with the second tranche subject to shareholder approval.
In consideration of making the Placement, Intermin will issue to Eastern Goldfields 6,250,000 options with an exercise
price of 17 cents per option and with an expiry date of 31 August 2018.
Investment in Winward Resources Limited
On 8 September 2016, Eastern Goldfields announced that it had entered into a binding investment arrangement with
Windward Resources Limited (ASX:WIN) (“Windward”) that would see Eastern Goldfields become a cornerstone
shareholder in Windward, providing the Company with exposure to Windward’s highly prospective Fraser Range
portfolio.
On 10 October 2016, following an off-market takeover offer from Independence Group NL to acquire all of the ordinary
shares of Windward, Eastern Goldfields announced that it had given notice of withdrawal to Windward, releasing it from
its obligations to hold a meeting of its shareholders to approve the subscription for shares in Windward in accordance
with the subscription agreement between the Company and Windward.
Settlement with Stirling Resources Pty Ltd
On 30 December 2015, the Company announced a revised settlement arrangement with Stirling Resources Pty Ltd.
The terms of the revised settlement are summarised elsewhere in the Director’s report. Of the remaining liability at 30
June 2016:
•
•
the further payment of $150,000 was made subsequently on 6 October 2016; and
the issue of 4.5 million ordinary shares remains outstanding.
Contract awarded to GR Engineering
On 23 September 2016, Eastern Goldfields announced that it had awarded a contract to GR Engineering Services
Limited to refurbish the Davyhurst gold processing plant. The target cost estimate for completion of the work is
$12,566,697
Loan agreement with Orion Gold NL
On 9 September 2016, Eastern Goldfields entered into an agreement to provide a loan facility of $250,000 to Orion
Gold NL. On 12 September 2016, the facility was fully drawn down and Eastern Goldfields provided a loan of $250,000.
Purchase of shares in Orion Gold NL
On 22 September 2016, Eastern Goldfields purchased 9,100,000 shares in Orion Gold NL at 2.5 cents each for
$227,500.
Purchase of 215 Balcatta Road, Balcatta
On 31 August 2016, the Company and Investmet Limited (as equal tenants in common) entered into a contract to
purchase 215 Balcatta Road, Balcatta for $12.1 million. The contract is subject to finance and is due to settle on 25
November 2016. Finance is being arranged and post completion a refurbishment fit out will be undertaken with a view
to the Company moving in to the premises as its new corporate headquarters in January 2017.
There has not been any other matter or circumstance that has arisen after balance date 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 periods.
19
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
30 JUNE 2016 FULL YEAR REPORT
DIRECTORS’ REPORT
DIVIDENDS
No amounts were paid or declared by way of dividend since the end of the previous financial year. The Directors do
not recommend the payment of a dividend in respect of the current financial year.
DIRECTOR’S INTERESTS IN THE SHARES AND OPTIONS OF EASTERN GOLDFIELDS
Details of Directors’ interests in the securities of Eastern Goldfields as at the date of this report are as follows, which
are on a post share consolidation basis:
Director
Michael Fotios
Alan Still
Craig Readhead
Fully paid shares
191,488,723
-
1,653,332
Unlisted options
15,000,000
3,600,000
3,600,000
COMPANY SECRETARIES
Shannon Coates (appointed 26 November 2015)
Michael Fotios, BSc (Hons) MAusIMM (appointed 22 December 2014, resigned 26 November 2015).
MEETINGS OF DIRECTORS
The number of meetings of the Board of Directors held during the year and the number of meetings attended by
each Director was as follows:
Number held whilst in office
Number attended
Michael Fotios
Craig Readhead
Alan Still
6
6
6
6
6
6
20
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
30 JUNE 2016 FULL YEAR REPORT
DIRECTORS’ REPORT
REMUNERATION REPORT (audited)
This Remuneration Report outlines the Director and executive remuneration arrangements of the Group in accordance
with the requirements of the Corporations Act 2001 and its Regulations. This report forms part of the Directors’ report
and has been audited in accordance with Section 300A of the Corporations Act 2001.
For the purposes of this report Key Management Personnel are defined as those persons having authority and
responsibility for planning, directing and controlling the major activities of the Group, directly or indirectly, including any
Director (whether executive or otherwise) of the parent company. Unless otherwise indicated, all key management
personnel held their position as a throughout the entire financial year and up to the date of this report.
Details of key management personnel during the year up to the date of this report:
Directors
Michael Fotios1
Alan Still
Craig Readhead
Executive Chairman and Company Secretary
Non-executive Director
Non-executive Director
1 Mr Fotios was appointed Company Secretary on the 22 December 2014, resigned 26 November 2015.
Principles used to determine the nature and amount of remuneration
Directors and executives remuneration
Overall remuneration policies are determined by the Board of Directors and are adapted to reflect competitive market
and business conditions. Within this framework, the board considers remuneration policies and practices generally,
and determines specific remuneration packages and other terms of employment for executive Directors and senior
management. Executives may be provided with longer-term incentives through participation in option schemes, which
serve to align the interests of the executives with those of shareholders. Executive remuneration and other terms of
employment are reviewed annually by the Board having regard to performance and relevant comparative information.
Non-executive Directors’ remuneration
The Company’s Policy is to remunerate non- executive Directors (NEDs) at market rates (for comparable companies)
for time commitment and responsibilities. Fees for non-executive Directors are not linked to the performance of the
Company, however to align Directors interest with shareholders interest Directors are encouraged to hold shares in the
Company. The amount of aggregate remuneration sought to be approved by shareholders and the fee structure is
reviewed annually against fees paid to NEDs of comparable companies.
Payments to non- executive Directors reflect the demands that are made on, and the responsibilities of the NEDs. Non-
executive Director’s fee and payments are reviewed annually by the Board. The Company’s constitution and the ASX
listing rules specify that the NED fee pool shall be determined from time to time by a general meeting.
In accordance with current corporate governance practices, the structure for the remuneration of non-executive
Directors and senior executives is separate and distinct. Shareholders approve the maximum aggregate remuneration
for non-executive Directors, with the current approved limit being $500,000. The Board determines the actual payments
to Directors. The Board approves any consultancy arrangements for non-executive Directors who provide services
outside of and in addition to their duties as non-executive Directors.
21
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
30 JUNE 2016 FULL YEAR REPORT
DIRECTORS’ REPORT
REMUNERATION REPORT (audited)
Share based payments
During the financial year, the Directors were issued unlisted options under the Company’s Employee Option Plan to
provide incentive to the Directors to grow shareholder value by providing them with an opportunity to receive an
ownership interest in the Company.
Director
Number of Options
Total
Michael Fotios
Alan Still
Craig Readhead
Total
Exercisable at $0.168 expiring 2
years from issue date
7,500,000
1,800,000
1,800,000
Exercisable at $0.189 expiring 4
years from issue date
7,500,000
1,800,000
1,800,000
15,000,000
3,600,000
3,600,000
22,200,000
Remuneration Strategy
The Company has yet to adopt any remuneration strategy and will review this strategy at the appropriate time.
Details of remuneration
The following table discloses details of the nature and amount of each element of the emoluments of each Director of
Eastern Goldfields and each of the officers receiving the highest emoluments for the year ended 30 June 2016.
30 June 2016
Name
Directors
Michael Fotios
Craig Readhead1
Alan Still1
Primary (short-term)
Salary and
Directors
fees
$
Consulting
Fees
$
Non-
monetary
benefits
$
60,000
40,000
40,000
140,000
-
-
-
-
-
-
-
-
Equity
(share-
based
payments)
Post-
employment
Superannuation
$
$
Total
$
-
-
-
-
893,730
214,495
214,495
953,730
254,495
254,495
1,322,720
1,462,720
1 Cash component in aggregate did not exceed the $500,000 limit
30 June 2015
Name
Directors
Michael Fotios
Craig Readhead
Alan Still1
John Poynton2
Wayne Zekulich3
1 Appointed on 31 March 2015
2 Resigned on 31 March 2015
3 Resigned on 22 December 2014
Primary (short-term)
Post-employment
Equity
(share-
based
payments)
Salary and
Directors
fees
$
Non-
Consulting monetary
benefits
$
fees
$
Superannuation
$
$
60,000
40,000
10,000
26,667
20,000
156,667
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
$
60,000
40,000
10,000
26,667
20,000
156,667
-
-
-
-
-
-
There were no proportions of any elements of Key Management Personnel remuneration that related to performance.
Other than Directors of Eastern Goldfields, there were no other executive officers of the Group during the year.
22
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
30 JUNE 2016 FULL YEAR REPORT
DIRECTORS’ REPORT
REMUNERATION REPORT (audited)
Option holdings of key management personnel (consolidated)
30 June 2016
Balance at
1 July 2015
On the
exercise of
options
Options
awarded and
vested during
the year
Balance at
30 June 2016
Award date
Vesting date
Directors
Michael Fotios
Alan Still
Craig Readhead
-
-
-
-
-
-
-
15,000,000
3,600,000
3,600,000
15,000,000
3,600,000
3,600,000
30 Dec 15
30 Dec 15
30 Dec 15
30 Dec 15
30 Dec 15
30 Dec 15
-
22,200,000
22,200,000
No options were exercised by key management personnel during the year. There were also no options issued to key
management personnel that lapsed during the year.
30 June 2015
There were no options held or granted to key management personnel during the year ended 30 June 2015.
Shareholdings of key management personnel (consolidated)
30 June 2016
Directors
Michael Fotios6
Alan Still
Craig Readhead7
30 June 2015
Directors
Michael Fotios6
Alan Still1
John Poynton2
Craig Readhead7
Wayne Zekulich3
Balance at
1 July 2015
On the
exercise of options
Net change other
Balance at
30 June 2016
41,238,671
-
166,667
41,405,338
-
-
-
-
150,250,052
-
1,486,665
191,488,723
-
1,653,332
151,736,717
193,142,055
Balance at
1 July 2014
On the
exercise of options
Net change other
Balance at
30 June 2015
412,386,710
-
10,000,000
-
-
-
-
-
-
-
(371,148,039) 4
-
(10,000,000) 4, 5
166,6674,5
-
41,238,671
-
-
166,667
-
422,386,710
-
(380,981,372)
41,405,338
1 Appointed on 31 March 2015
2 Resigned on 31 March 2015
3 Resigned on 22 December 2014
4 Consolidation of 1 for 10 shares on 15 July 2014
5 Participation in share placement
6 This includes shareholdings by Mr Michael Fotios and entities he controlled (Michael Fotios Family A/C, Investmet Limited, Delta Resource
Management Pty Ltd, Whitestone Minerals Limited).
7 This includes shareholdings by Mr Craig Readhead and entities he controlled (Hengolo Pty Ltd as trustee for CL Readhead Family Trust).
No shares were issued during the year as a result of the exercise of options granted as part of remuneration.
There were no alterations to the terms and conditions of options granted as remuneration since their grant date.
There were no forfeitures during the period.
All equity transactions with key management personnel have been entered into under terms and conditions no
more favourable than those the Group would have adopted if dealing at arm’s length.
Loans to key management personnel
There were no loans to key management personnel during the financial year.
23
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
30 JUNE 2016 FULL YEAR REPORT
DIRECTORS’ REPORT
REMUNERATION REPORT (audited)
Other transactions with Directors
The following transactions occurred during the year between the Group and Directors or their director-related
entities.
The following amounts are not included in the Remuneration table in the preceding pages:
• Delta Resources Management Pty Ltd, a Company which Mr Michael Fotios is a substantial shareholder
in, and Chairman of, provided technical and administrative support to the Company to the value of
$112,079 (inclusive of GST) (2015: $518,475). A total of $25,705 remains due and payable as at 30
June 2016 (2015: $509,592). All charges are at market value. Interest is not charged. Delta Resources
Management Pty Ltd also advanced a working capital loan to the Company to the value of $528,756
(2015: $316,197). A total of $52,844 remains due and payable on the loan balance as at 30 June 2016
(2015: $316,167). Interest of $41,309 was capitalised to the loan principal for the year ended 30 June
2016 (interest rate 10% per annum, 2015: 10% per annum). The Company made a cash repayment of
$233,388 on this loan during the financial year. In March 2016, the Company also issued 4,000,000
shares at a deemed price of $0.15 each as settlement of $600,000 of the loan balance. Refer to Note
12 for the loan reconciliation.
• Whitestone Minerals Pty Ltd, a Company which is 100% owned by Investmet Ltd, a company which Mr
Michael Fotios is a substantial shareholder in, and Chairman of, provided consulting services to the
Company to the value of $3,803,409 (inclusive of GST) (2015: $137,893). In March 2016, the Company
issued 6,000,000 shares at a deemed price of $0.15 each in settlement of outstanding invoices with a
total value of $900,000. A total of $1,809,675 remains due and payable as at 30 June 2016 (2015:
$211,976). All charges are at market value. Interest is not charged.
• Allion Legal, a firm which Mr Craig Readhead was a partner in until his resignation on 30 June 2015,
invoiced $210,207 in 2015 for legal advice provided to the Company. A total of $162,898 was unpaid
as at 30 June 2015. All charges were at normal commercial rates.
• General Mining Corporation Limited, a company which Mr Michael Fotios is a substantial shareholder in,
received consulting and administrative support from the Company to the value of $67,402 (inclusive of
GST) (2015: $0). A total of $67,402 remains due and receivable by the Company as at 30 June 2016
(2015: $0). All charges were at normal commercial rates. Interest is not charged.
• Horseshoe Metals Limited, a company which Mr Michael Fotios is a substantial shareholder in, received
consulting and administrative support from the Company to the value of $24,974 (inclusive of GST) (2015:
$16,484). A total of $55,866 remains due and payable by the Company as at 30 June 2016 (2015:
$64,356). All charges are at market value. Interest is not charged.
• Pegasus Metals Limited, a company which Mr Michael Fotios is a substantial shareholder in, received
consulting and administrative support from the Company to the value of $45,848 (inclusive of GST) (2015:
$0). A total of $45,848 remains due and receivable as at 30 June 2016 (2015: $0). All charges are at
market value. Interest is not charged.
• Redbank Copper Limited, a company which Mr Michael Fotios is a substantial shareholder in, received
consulting and administrative support from the Company to the value of $116,324 (inclusive of GST)
(2015: $3,715). A total of $120,039 remains due and receivable as at 30 June 2016 (2015: $3,715). All
charges are at market value. Interest is not charged.
• During the year, Michael Fotios Family Trust provided loans of $606,510 (2015: $99,904) to Eastern
Goldfields for working capital. A total of $25,532 interest was capitalised to the Michael Fotios Family
Trust loan for the year ended 30 June 2016 (interest rate 10% per annum, 2015: 10% per annum). In
March 2016, Eastern Goldfields issued 1,000,000 shares at a deemed price of $0.15 each as settlement
of $150,000 of the balance. In addition, an amount of $590,148 was paid in cash as settlement of the
balance. Upon conversion, the Company inadvertently converted shares to the value of $8,202 in excess
of the loan balance. This amount was offset against outstanding invoices from Whitestone Minerals Pty
Ltd, thereby reducing the debt owed to them. A total of $0 remains due and payable as at 30 June 2016
(2015: $99,904). Refer to Note 12 for the loan reconciliation.
• During the year, Eastern Goldfields settled its outstanding loan with Investmet Limited, a company which
Mr Michael Fotios is a substantial shareholder in through cash repayments of $545,720 and the
conversion of $29,845,679 of the loan balance into shares. Upon conversion, the Company inadvertently
converted shares to the value of $36,373 in excess of the loan balance. This amount was offset against
outstanding invoices from Whitestone Minerals Pty Ltd, thereby reducing the debt owed to them. Refer
to Note 12 for the loan reconciliation. A total of $1,281,693 (2015: $0) interest was capitalised to the
Investmet loan for the year ended 30 June 2016. A total of $0 remains due and payable as at 30 June
2016 (2015: payable of $29,029,348).
• Readhead Legal, a company which Mr Craig Readhead is a substantial shareholder in, received $84,000
(2015: $0) for consulting fees to the Company. A total of $37,400 (inclusive of GST) remains due and
24
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
30 JUNE 2016 FULL YEAR REPORT
DIRECTORS’ REPORT
payable as at 30 June 2016 (2015: $0). The Company issued 220,000 fully paid ordinary shares of
Eastern Goldfields Ltd at a deemed price of $0.15 each during the year as settlement of his consulting
fees of $33,000.
The following amounts are included in the Remuneration table in the preceding pages:
• Magisterium Pty Ltd, a company which Mr Craig Readhead was a substantial shareholder of until 30
June 2015, invoiced $40,000 for his Directors fees in respect of the Company, for the financial year ended
30 June 2015. A total of $65,993 was unpaid as at 30 June 2015.
• Zedsee Enterprises Pty Ltd, a company which Mr Alan Still is a substantial shareholder in, received
$40,000 (2015: $0) for Directors fees to the Company. A total of $12,500 remains due and payable as
at 30 June 2016 (2015: $0).
• Craig Readhead was entitled to $40,000 of Director fees for the year ended 30 June 2016. The Company
issued 266,667 fully paid ordinary shares of Eastern Goldfields Ltd at a deemed price of $0.15 each
during the year as settlement of his Director fees of $40,000.
Terms and conditions of transactions with Director-related entities:
Transactions with related parties are made at terms equivalent to those that prevail in arm’s length transactions.
Outstanding balances at the year-end are unsecured and carries interest at 6% (Investmet Limited) and 10% (Delta
Resources Management Pty Ltd and Michael Fotios Family A/c) and settlement occurs in cash. There have been no
guarantees provided or received for any related party receivables or payables. For the year ended June 2016, the
Group has not recorded any impairment of receivables relating to amounts owed by related parties. This assessment
is undertaken each financial year through examining the financial position of the related party and the market in which
the related party operates.
Service agreements
The terms of employment for executive Directors and specified executives were not formalised in service agreements
during the year ended 30 June 2016.
Company performance
The table below shows the performance of the Group as measured by its earnings per share. In the past five years the
Group has incurred losses and no dividends have been paid. Any improvement to earnings is viewed as a long term
position that is not yet fully determinable.
30 June
2016
30 June
2015
30 June
2014
30 June
2013
30 June
2012
Loss per share
(0.08)
(0.08)
(0.07)
(0.30)
(0.59)
End of Remuneration Report (audited)
ENVIRONMENTAL REGULATIONS
The Group is subject to significant environmental regulation in respect to its mineral exploration activities. These
obligations are regulated under relevant government authorities within Australia. The Group is a party to exploration
and mine development licences. Generally, these licences specify the environmental regulations applicable to
exploration and mining operations in the respective jurisdictions. The Group aims to ensure that it complies with the
identified regulatory requirements in each jurisdiction in which it operates.
Compliance with environmental obligations is monitored by the Board of Directors. No environmental breaches have
been notified to the Group by any government agency during the year ended 30 June 2016.
WARDENS COURT PROCEEDINGS
The Company (and its wholly owned subsidiaries) is a party to various proceedings in the Wardens Court pursuant to
which third parties are seeking to challenge its title to various mining tenements by way of forfeiture and other
proceedings. The Directors are confident that the Company (and its wholly owned subsidiaries) will be successful in
defending these proceedings.
PROCEEDINGS ON BEHALF OF THE COMPANY
Other than as referred to above, no person has applied for leave of court or to bring proceedings on behalf of the
Company or intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on
behalf of the Company, for all or any part of those proceedings.
25
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
30 JUNE 2016 FULL YEAR REPORT
DIRECTORS’ REPORT
NON-AUDIT SERVICES
Non-audit services provided by Ernst & Young during their period as external auditors was $nil (2015: $nil). Further
details of remuneration of the auditors are set out at Note 17.
AUDITOR INDEPENDENCE
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is
included immediately following the Directors’ report and forms part of this Directors’ report.
INDEMNIFICATION OF AUDITORS
To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young, as part of the terms
of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified amount).
No payment has been made to indemnify Ernst & Young during or since the financial year.
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Company has entered into indemnity agreements with each of the Directors and officers of the Company. Under
the agreements, the Company will indemnify those officers against certain claims or for any expenses or costs which
may arise as a result of work performed in their respective capacities as officers of the Company or any related entities.
The Company has taken out an insurance policy insuring Directors and Officers of the Company against any liability
arising from a claim bought by a third party against the Company or its Directors or Officers, and against liabilities for
costs and expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in
their capacity as a Director or Officer of the Company, other than conduct involving a wilful breach of duty in relation
to the Company.
During the year, the Company paid premiums in respect of the above insurance policy. The contract prohibits the
disclosure of the nature of the liabilities and/or the amount of the premium.
Signed in accordance with a resolution of the Directors.
Michael Fotios
Executive Chairman
Perth, Western Australia
24 October 2016
26
Ernst & Young
11 Mounts Bay Road
Perth WA 6000 Australia
GPO Box M939 Perth WA 6843
Tel: +61 8 9429 2222
Fax: +61 8 9429 2436
ey.com/au
Auditor’s independence declaration to the Directors of Eastern Goldfields
Limited
As lead auditor for the audit of Eastern Goldfields Limited for the year ended 30 June 2016,
I declare to the best of my knowledge and belief, there have been:
a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the review; and
b) no contraventions of any applicable code of professional conduct in relation to the review.
This declaration is in respect of Eastern Goldfields Limited and the entities it controlled during the
financial year.
Ernst & Young
G H Meyerowitz
Partner
24 October 2016
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
GHM:JT:EGS:010
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
Revenue
Other income
Employee and directors – remuneration expense
Site care and maintenance costs
Corporate and administrative expenses
Share based payments
Finance costs
Impairment of mine properties
Mine development expense
Exploration expenditure
CONSOLIDATED
NOTES
2016
$
2015
$
4(a)
4(b)
4(c)
4(d)
27
4(e)
7
7
7,894
2,434
3,410,373
63,082
(791,565)
(138,024)
(2,946,009)
(2,407,477)
(1,731,241)
-
(5,143,781)
(8,271,437)
(539,088)
(39,806)
(707,389)
-
(2,349,578)
(3,998)
-
(4,127,324)
Loss before income tax expense
(18,011,267)
(7,701,667)
Income tax benefit/(expense)
Loss for the year
Other comprehensive income, net of income tax
Items that may be reclassified to profit or loss
Changes in the fair value of available-for-sale assets
Income tax relating to this item
Other comprehensive income for the year, net of tax
5
5
Total comprehensive loss for the year
Attributable to:
- Members of Eastern Goldfields Limited
- Non-controlling interest
10,000
-
(18,001,267)
(7,701,667)
33,333
(10,000)
23,333
-
-
-
(17,977,934)
(7,701,667)
(17,977,934)
-
(17,977,934)
(7,701,667)
-
(7,701,667)
Basic and diluted loss per share
26
0.08
0.08
The above statement should be read in conjunction with the accompanying notes.
28
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
AS AT 30 JUNE 2016
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED
NOTES
2016
$
2015
$
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Inventory
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Trade and other receivables
Mine properties
Capitalised exploration expenditure
Available for sale financial asset
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
Loans and borrowings
Provisions
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Provision for rehabilitation
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS/(LIABILITIES)
EQUITY / (SHAREHOLDERS’ DEFICIT)
Contributed equity
Accumulated losses
Reserves
TOTAL EQUITY / (SHAREHOLDERS’ DEFICIT)
25(a)
6
9
6
7
8
10
11
12
13
13
14
15
15,401,037
1,267,981
-
16,669,018
64,160
3,606,779
453,953
533,333
4,658,225
21,327,243
7,666,864
52,844
63,110
7,782,818
9,379,934
9,379,934
17,162,752
4,164,491
52,366
197,600
10,911
260,877
64,160
3,000,000
-
-
3,064,160
3,325,037
4,939,837
35,081,218
52,391
40,073,446
4,148,100
4,148,100
44,221,546
(40,896,509)
228,342,835
(232,230,721)
8,052,377
4,164,491
168,040,331
(214,229,454)
5,292,614
(40,896,509)
The above statement should be read in conjunction with the accompanying notes.
29
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Contributed
equity
$
Accumulated
losses
$
Share based
payments
reserve
$
Available for
sale reserve
$
Total equity /
(shareholders’
deficit)
$
Consolidated
At 1 July 2014
167,965,331
(206,527,787)
5,292,614
Loss for the year
Total comprehensive loss
Issue of ordinary shares (Note 14)
-
(7,701,667)
-
75,000
(7,701,667)
-
-
-
-
At 30 June 2015
168,040,331
(214,229,454)
5,292,614
Loss for the year
Other comprehensive income, net
of income tax
Total comprehensive loss
Issue of ordinary shares (Note 14)
(net of costs)
Options issued for tenement
acquisition
Share based payments
-
-
-
(18,001,267)
-
(18,001,267)
60,302,504
-
-
-
-
-
-
-
-
-
328,953
2,407,477
-
-
-
-
-
-
(33,269,842)
(7,701,667)
(7,701,667)
75,000
(40,896,509)
(18,001,267)
23,333
23,333
23,333
(17,977,934)
-
-
-
60,302,504
328,953
2,407,477
At 30 June 2016
228,342,835
(232,230,721)
8,029,044
23,333
4,164,491
The above statement should be read in conjunction with the accompanying notes.
30
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
CONSOLIDATED STATEMENT OF CASH FLOWS
Cash flows from operating activities
Receipts from management fee
Payments to suppliers and employees
Interest received
Finance costs paid
Research and development rebate
Net cash flows used in operating activities
Cash flows from investing activities
Payments for purchase of property, plant and equipment
Payments for construction in progress
Payments for acquisition of tenement
Payments for available for sale asset acquisition
Net cash flows (used in) / from investing activities
Cash flows from financing activities
Proceeds from share issue
Payments for costs of capital raising
Proceeds from share application
Proceeds from loan advances
Repayment of loans
Net cash flows from financing activities
CONSOLIDATED
NOTES
2016
$
2015
$
7,507
(8,435,194)
7,894
(138,827)
-
(8,558,620)
-
(606,779)
(125,000)
(500,000)
(1,231,779)
28,220,250
(1,328,207)
-
1,179,251
(2,932,224)
25,139,070
25(b)
7
7
8
10
14
14
11
12
12
-
(2,930,662)
2,434
(353,928)
788,703
(2,493,453)
(3,998)
-
-
-
(3,998)
75,000
-
879,750
1,379,368
-
2,334,118
Net increase / (decrease) in cash and cash equivalents
15,348,671
(163,333)
Cash and cash equivalents at the beginning of the financial year
52,366
215,699
Cash and cash equivalents at the end of the financial year
25(a)
15,401,037
52,366
The above statement should be read in conjunction with the accompanying notes.
31
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1.
CORPORATE INFORMATION
The financial report of Eastern Goldfields for the year ended 30 June 2016 was authorised for issue in
accordance with a resolution of the Directors on the date of signing of the Directors’ report. Eastern Goldfields
is a for-profit company limited by shares that is incorporated and domiciled in Australia.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a)
(b)
Basis of preparation
The financial report is a general-purpose financial report 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. The financial report has been prepared on a
historical cost basis. The financial report is presented in Australian dollars.
Going concern
The consolidated financial statements of Group have been prepared on a going concern basis which
contemplates the continuity of normal business activities and the realisation of assets and the settlement of
liabilities in the ordinary course of business.
As at 30 June 2016, the Group had cash and cash equivalents of $15,401,037, its current assets exceeded its
current liabilities by $8,886,200 and total equity totalled $4,164,491. The Group recorded a loss after tax of
$18,001,267 for the year ended 30 June 2016 and its net cash used in operating activities for the same period
totalled $8,558,621.
The Group has initiated the refurbishment engineering works of the 1.2Mtpa Davyhurst Processing Plant and
plans to commence mining of the open pit resources at Siberia and underground resources within the Davyhurst
area. The Group is currently also undertaking project development and ongoing explorations works.
In order to successfully recommence gold production through the Davyhurst Processing Plant, the Group will
require a significant injection of funding in the near term. This funding will be a combination of debt and equity.
The Group is currently in discussions with various debt and equity providers and the Directors are confident
they will be successful in raising the requisite debt and equity to successfully recommence gold production in
the near term.
Should the Group not achieve the matters set out above, there is significant uncertainty whether the Group will
continue as a going concern and therefore whether it will realise its assets and extinguish its liabilities in the
normal course of business and at the amounts stated in the financial statements.
The financial report does not include any adjustments relating to the recoverability and classification of recorded
asset amounts nor to the amounts and classification of liabilities that might be necessary should the Group not be
able to continue as a going concern.
(c)
Statement of compliance
The financial report complies with Australian Accounting Standards and International Financial Reporting
Standards (IFRS) as issued by the International Accounting Standards Board.
All new and amended Accounting Standards and Interpretations effective from 1 July 2015 have been applied
for the first time. There was no material impact on the financial report on adoption of these Standards and
Interpretations which included:
Reference
Summary of Change
AASB 2015-3
Amendments to Australian Accounting Standards arising from the Withdrawal of AASB
1031 Materiality
The Standard completes the AASB’s project to remove Australian guidance on
materiality from Australian Accounting Standards.
32
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AASB 2015-4
Amendments to Australian Accounting Standards – Financial Reporting Requirements for
Australian Groups with a Foreign Parent
This Standard amends AASB 128 to require that the ultimate Australian entity apply the
equity method in accounting for an interest in an associate or joint venture, when either
the parent or the group is a reporting entity or both the parent and the group are reporting
entities. The amendments eliminated an inconsistency with the requirement in AASB 10
for the ultimate Australian parent to present consolidated financial statements.
The following Accounting Standards and Interpretations have been issued by the AASB but are not yet effective
for the year ending 30 June 2016. The Group has not yet early adopted any other standard, interpretation or
amendment that has been issued but is not yet effective. The impact of the new and amended standards still
needs to be determined.
Application
Date of
Standard
1 January
2016
Application
Date for
Group
1 July 2016
1 January
2016
1 July 2016
1 January
2016
1 July 2016
1 January
2016
1 July 2016
1 January
2016
1 July 2016
Reference
Summary of Change
AASB 1057 Application of Australian Accounting Standards
AASB
2014-3
AASB
2014-4
AASB
2014-9
AASB
2015-1
in each Australian Accounting Standard
This Standard deletes the application paragraphs previously
(or
contained
Interpretation) and moves them into this Standard. The
application requirements of each other Australian Accounting
Standard have not been amended.
Accounting for Acquisitions of Interests in Joint Operations –
Amendments to AASB 11
This amendment to AASB 11 Joint Arrangements requires the
acquirer of an interest in a joint operation in which the activity
constitutes a business, as defined in AASB 3 Business
Combinations, to apply all of the principles on business
combinations accounting in AASB 3.
Clarification of Acceptable Methods of Depreciation and
Amortisation (Amendments to AASB 116 and AASB 138)
These amendments to AASB 116 and AASB 138 clarify that the
use of revenue-based methods to calculate the depreciation of
an asset is not appropriate because revenue generated by an
activity that includes the use of an asset generally reflects
factors other than the consumption of the economic benefits
embodied in the asset. The standard also clarified that revenue
is generally presumed to be an inappropriate basis for
measuring the consumption of the economic benefits embodied
in an intangible asset.
Equity Method in Separate Financial Statements (Amendments
to AASB 127)
Amends IAS 27 to permit entities to use the equity method to
account for investments in subsidiaries, joint ventures and
associates in their separate financial statements.
Annual Improvements to Australian Accounting Standards
2012-2014
This Standard makes amendments to various Accounting
Standards arising from the IASB’s Annual Improvements
process, namely:
AASB 5 – changes in methods of disposal from sale to
distribution
AASB 7 – applicability of disclosures to servicing contracts and
interim financial statements;
33
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Application
Date of
Standard
Application
Date for
Group
1 January
2016
1 July 2016
1 January
2016
1 July 2016
1 January
2017
1 July 2017
1 January
2017
1 July 2017
1 January
2018
1 July 2018
1 January
2018
1 July 2018
Reference
Summary of Change
AASB
2015-2
AASB
2015-9
AASB
2016-1
AASB
2016-2
AASB
2016-3
AASB
2014-10
AASB 119 – clarifies that the government bond rate used in
measuring employee benefits should be those denominated in
the same currency.
AASB 134 – permits the cross referencing of disclosures
elsewhere in the financial report.
Amendments to Australian Accounting Standards – Disclosure
Initiative: Amendments to AASB 101
The Standard makes amendments to AASB 101 Presentation of
Financial Statements arising from the IASB’s Disclosure
Initiative project.
Amendments To Australian Accounting Standards – Scope And
Application Paragraphs
The amendments correct previous drafting errors resulting from
the introduction of AASB1057 and reintroduce the scope
paragraphs of AASB 8 and AASB 133 into those Standards.
There is no change to the requirements or the applicability of
AASB 8 and AASB 133.
Amendments to Australian Accounting Standards – Recognition
of Deferred Tax Assets for Unrealised Losses [AASB 112]
This Standard amends AASB 112 Income Taxes to clarify the
circumstances in which the recognition of deferred tax assets
may arise in respect of unrealised losses on debt instruments
measured at fair value.
Amendments to Australian Accounting Standards –Disclosure
Initiative: Amendments to AASB 107
This Standard amends AASB 107 Statement of Cash Flows to
include additional disclosures and reconciliation relating to
changes in liabilities arising from financing activities, including
both changes arising from cash flows and non-cash changes.
to Australian Accounting Standards –
Amendments
Clarifications to AASB 15
This Standard amends AASB 15 Revenue from Contracts with
identifying
Customers
performance obligations, principal versus agent considerations
and the timing of recognising revenue from granting a licence.
In addition, it provides further practical expedients on transition
to AASB 15.
requirements on
to clarify
the
Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture (Amendments to AASB 10 and AASB
128)
Amends AASB 10 and AASB 128 to remove the inconsistency
in dealing with the sale or contribution of assets between an
investor and its associate or joint venture. A full gain or loss is
recognised when a transaction involves a business (whether it
is housed in a subsidiary or not). A partial gain or loss is
recognised when a transaction involves assets that do not
constitute a business, even if these assets are housed in a
subsidiary.
The mandatory application date of AASB 2014-10 has been
amended and deferred to annual reporting periods beginning on
or after 1 January 2018 by AASB 2015-10.
AASB 9
Financial Instruments
AASB 9 includes requirements for the classification and
measurement of financial assets and incorporates amendments
1 January
2018
1 July 2018
34
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Reference
Summary of Change
Application
Date of
Standard
Application
Date for
Group
to the accounting for financial liabilities and hedge accounting
rules to remove the quantitative hedge effectiveness tests and
have been replaced with a business model test.
AASB 9 improves and simplifies the approach for classification
and measurement of financial assets compared with the
requirements of AASB 139 as follows:
a) Financial assets that are debt instruments will be classified
based on (1) the objective of the entity’s business model for
managing the financial assets; (2) the characteristics of the
contractual cash flows.
b) Allows an irrevocable election on initial recognition to
in equity
losses on
present gains and
in other
that are not held
instruments
comprehensive income. Dividends in respect of these
investments that are a return on investment can be
recognised in profit or loss and there is no impairment or
recycling on disposal of the instrument.
investments
trading
for
c) Financial assets can be designated and measured at fair
value through profit or loss at initial recognition if doing so
eliminates or significantly reduces a measurement or
recognition inconsistency that would arise from measuring
assets or liabilities, or recognising the gains and losses on
them, on different bases.
d) Where the fair value option is used for financial liabilities the
change in fair value is to be accounted for as follows:
i) The change attributable to changes in credit risk are
presented in other comprehensive income (OCI)
ii) The remaining change is presented in profit or loss.
AASB 2012-6 also modifies the relief from restating prior periods
by amending AASB 7 to require additional disclosures on
transition to AASB 9 in some circumstances. Consequential
amendments were made to other standards as a result of AASB
9 by AASB 2014-7 and AASB 2014-8. The mandatory
application date of AASB 9 has been deferred to annual
reporting periods beginning on or after 1 January 2018 by AASB
2014-1.
Revenue from Contracts with Customers
AASB 15 replaces AASB 118 Revenue, AASB 111 Construction
Contracts and four Interpretations issued by the AASB and
amends the principles for recognising revenue from contracts
with customers. It applies to all contracts with customers except
leases, financial instruments and insurance contracts. The
Standard requires an entity to recognise revenue on a basis that
depicts the transfer of promised goods or services to customers
at an amount that reflects the consideration to which the entity
expects to be entitled in exchange for those goods or services.
To achieve that principle, an entity shall apply all of the following
steps:
a) identify the contract with a customer;
b) identify the separate performance obligations in the contract;
c) determine the transaction price;
d) allocate the transaction price to the separate performance
obligations in the contract; and
e) recognise revenue when (or as) the entity satisfies a
performance obligation.
35
AASB 15
1 January
2018
1 July 2018
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Application
Date of
Standard
Application
Date for
Group
1 January
2019
1 July 2019
Reference
Summary of Change
AASB 16
Consequential amendments to other Standards are made by
AASB 2014-5 Amendments to Australian
Accounting Standards arising from AASB 15. The mandatory
application date of AASB 15 has been deferred to annual
reporting periods beginning on or after 1 January 2018 by AASB
2015-8.
Leases
AASB 16 replaces AASB 117 Leases and sets out the principles
for the recognition, measurement, presentation and disclosure
of leases.
AASB 16 introduces a single lessee accounting model and
requires a lessee to recognise assets and liabilities for all leases
with a term of more than 12 months, unless the underlying asset
is of low value. A lessee is required to recognise a right-of-use
asset representing its right to use the underlying leased asset
and a lease liability representing its obligations to make lease
payments
A lessee measures right-of-use assets similarly to other non-
financial assets (such as property, plant and equipment) and
lease liabilities similarly to other financial liabilities. As a
consequence, a lessee recognises depreciation of the right-of-
use asset and interest on the lease liability, and also classifies
cash repayments of the lease liability into a principal portion and
an interest portion and presents them in the statement of cash
flows applying AASB 107 Statement of Cash Flows.
AASB 16 substantially carries forward the lessor accounting
requirements in AASB 117 Leases. Accordingly, a lessor
continues to classify its leases as operating leases or finance
leases, and to account for those two types of leases differently.
This Standard applies to annual reporting periods beginning on
or after 1 January 2019. Earlier application is permitted provided
the entity also applies AASB 15 Revenue from Contracts with
Customers at or before the same date.
(d)
Principles of consolidation
The consolidated financial statements comprise the financial statements of Eastern Goldfields and its
subsidiaries (as outlined in Note 22) (the Group) as at and for the period ended 30 June each year.
Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the
Group is exposed to, or has rights to, variable returns from the its involvement with the entity and has the ability
to affect those returns through its power to direct the activities of the entity.
The financial statements of the subsidiaries are prepared for the same reporting period as the parent company,
using consistent accounting policies. In preparing the consolidated financial statements, all intercompany
balances, transactions, unrealised gains and losses resulting from intra-group transactions and dividends have
been eliminated in full.
Subsidiaries are fully consolidated from the date on which control is obtained by the Group and cease to be
consolidated from the date on which control is transferred out of the Group.
Investments in subsidiaries held by Eastern Goldfields are accounted for at cost in the separate financial
statements of the parent entity less any impairment charges. Dividends received from subsidiaries are recorded
as a component of other revenues in the separate income statement of the parent entity, and do not impact the
recorded cost of the investment. Upon receipt of dividend payments from subsidiaries, the parent will assess
whether any indicators of impairment of the carrying value of the investment in the subsidiary exist.
36
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(d)
Principles of consolidation (continued)
Where such indicators exist, to the extent that the carrying value of the investment exceeds its recoverable
amount, an impairment loss is recognised.
The acquisition of subsidiaries which are businesses is accounted for using the acquisition method of
accounting. The acquisition method of accounting involves recognising at acquisition date, separately from
goodwill, the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the
acquiree. The identifiable assets acquired and the liabilities assumed are measured at their acquisition date
fair values. The difference between the above items and the fair value of the consideration (including the fair
value of any pre-existing investment in the acquiree) is goodwill or a discount on acquisition.
Non-controlling interests are allocated their share of net profit after tax in the statement of comprehensive
income and are presented within equity in the consolidated statement of financial position, separately from the
equity of the owners of the parent. Losses are attributed to the non-controlling interest even if that results in a
deficit balance.
A change in the ownership interest of a subsidiary that does not result in a loss of control is accounted for as
an equity transaction.
If the Group loses control over a subsidiary, it:
- Derecognises the assets (including goodwill) and liabilities of the subsidiary
- Derecognises the carrying amount of any non-controlling interest
- Derecognises the cumulative translation differences, recorded in equity
- Recognises the fair value of the consideration received
- Recognises the fair value of any investment retained
- Recognises any surplus or deficit in profit or loss
- Reclassifies the parent’s share of components previously recognised in other comprehensive income to
profit or loss, or retained earnings, as appropriate.
(e)
Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefit will flow to the Group and the
revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or
receivables taking into account contractually defined terms of payment and excluding taxes or duty. The
following specific recognition criteria must also be met before revenue is recognised.
Interest
Revenue is recognised as the interest accrues using the effective interest rate method (which is the rate that
exactly discounts estimated future cash receipts through the expected life of the financial instrument to the net
carrying amount of the financial asset).
(f)
Mine properties
All assets acquired, including property, plant and equipment are initially recorded at their cost of acquisition
being the fair value of the consideration provided plus incidental costs directly attributable to the acquisition.
Property, plant and equipment located on a mine site is included at cost less provision for depreciation and any
impairment in value. All such assets are depreciated over the estimated remaining economic life of the mine,
using a unit of production basis.
All other property, plant and equipment is included at cost less provision for depreciation and any impairment
in value and depreciated on a straight-line basis commencing from the time the asset is held ready for use. All
other repairs and maintenance costs are recognised in profit or loss as incurred. The present value of the
expected cost for the decommissioning of an asset after its use is included in the cost of the respective asset if
the recognition criteria for a provision are met. Refer to significant accounting judgments, estimates and
assumptions (Note 3) and provisions for further information about the recognised decommissioning provision.
An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal
or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on recognition
of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset)
is including the statement of profit or loss when the asset is derecognised.
37
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(g) Other financial assets
Financial assets in the scope of AASB 139 “Financial Instruments – Recognition and Measurement” are
classified as either financial assets at fair value through profit or loss, loans and receivables, held to maturity
investments or available for sale investments as appropriate. When financial assets are recognised initially,
they are measured at fair value, plus, in the case of investments not at fair value through profit or loss, directly
attributable transaction costs. The Group determines the classification of its financial assets at initial
recognition.
All regular way purchases and sales of financial assets are recognised on the trade date (the date that the
Group commits to purchase the asset). Regular way purchases or sales are purchases or sales of financial
assets under contracts that require delivery of the assets within the period established generally by regulation
or convention in the market place.
Loans, receivables and security deposits
Loans, receivables and security deposits are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. Such assets are carried at amortised cost using the effective
interest method. Gains and losses are recognised in profit or loss when the loans and receivables are
derecognised or impaired as well as through the amortisation process.
(h)
Exploration and evaluation expenditure
Once the legal right to explore has been acquired, exploration and evaluation costs are expensed to the
Statement of Profit or Loss and Other Comprehensive Income as incurred unless the Directors conclude that a
future economic benefit is more likely than not to be realised. Costs incurred during this phase are expensed
in the Statement of Comprehensive Income as ‘exploration and evaluation expenditure’. In evaluating if
expenditures meet the criteria to be capitalised, several different sources of information are utilised. The
information that is used to determine the probability of future economic benefits depends on the extent of
exploration and evaluation that has been performed.
Impairment
The carrying value of capitalised exploration and evaluation expenditure is assessed for impairment whenever
facts and circumstances suggest that the carrying amount of the asset may exceed its recoverable amount.
The recoverable amount of capitalised exploration and evaluation expenditure is the higher of fair value less
costs to sell and value in use.
An impairment exists when the carrying amount of an asset or cash-generating unit exceeds its estimated
recoverable amount. The asset or cash-generating unit is then written down to its recoverable amount. Any
impairment losses are recognised in profit or loss.
(i)
Impairment of non-financial assets
At each reporting date, the consolidated entity assesses whether there is any indication that an asset may be
impaired. Where an indicator of impairment exists, the Group makes a formal estimate of recoverable amount.
Where the carrying amount of an asset exceeds its recoverable amount the asset is considered impaired and
is written down to its recoverable amount.
Recoverable amount is the greater of fair value less costs to sell and value in use. It is determined for an
individual asset, unless the asset’s value in use cannot be estimated to be close to its fair value less costs to
sell and it does not generate cash inflows that are largely independent of those from other assets or groups of
assets, in which case, the recoverable amount is determined for the cash-generating unit to which the asset
belongs. The estimated future cash flows are discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money and the risks specific to the asset.
38
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(j)
Joint operations
The Group has an interest in a joint arrangement that is a joint operation. A joint arrangement is a contractual
arrangement whereby two or more parties undertake an economic activity that is subject to joint control. Joint
control is the contractual agreed sharing of control of the arrangement which exists only when decisions about
the relevant activities require unanimous consent of the parties sharing control. To the extent the joint
arrangement provides the Group with rights to the individual assets and obligations arising from the joint
arrangement, the arrangement is classified as a joint operation and as such the Group recognises its:
•
•
•
•
•
assets, including its share of any assets held jointly;
liabilities, including its share of any assets held jointly;
revenue from the sale of its share of the output arising from the joint operation
share of revenue from the sale of the output by the joint operation; and
expenses, including its share of any expenses incurred jointly.
(k)
Income tax
Deferred income tax is provided on all temporary differences at the balance date between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except:
•
•
When the deferred income tax liability arises from the initial recognition of goodwill or of an asset or
liability in a transaction that is not a business combination and that, at the time of the transaction, affects
neither the accounting profit nor taxable profit or loss.
In respect of taxable temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, when the timing of the reversal of the temporary differences can be controlled
and it is probable that the temporary differences will not reverse in the foreseeable future.
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax
credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences, and the carry forward of
unused tax credits and unused tax losses can be utilised, except:
•
•
When the deferred tax asset relating to the deductible temporary difference arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the time of
the transaction, affects neither the accounting profit nor taxable profit or loss.
In respect of deductible temporary differences associated with investments in subsidiaries, associates
and interests in joint ventures, deferred tax assets are recognised only to the extent that it is probable
that the temporary differences will reverse in the foreseeable future and taxable profit will be available
against which the temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset
to be utilised. Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to
the extent that is has become probable that future taxable profits will allow the deferred tax asset to be
recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the
asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date. Deferred tax relating to items recognised outside profit or loss is
recognised outside profit or loss. Deferred tax items are recognised in correlation to the underlying transaction
either in other comprehensive income or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax
assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the
same taxation authority.
39
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(l)
Trade and other receivables
Trade receivables, which generally have 30 to 90 day terms, are recognised initially at fair value and
subsequently measured at amortised cost using the effective interest method less an allowance for impairment.
An allowance for doubtful debts is made when there is objective evidence that the Group will not be able to
collect the debts. Bad debts are written off when identified.
Collectability of trade receivables is reviewed on an ongoing basis. Financial difficulties of the debtor, default
payments or debts more than 180 days overdue are considered objective evidence of impairment. The amount
of the impairment loss is the receivable carrying amount compared to the present value of estimated future cash
flows, discounted at the original effective interest rate.
(m) Trade and other payables
Trade payables and other payables are carried at amortised cost and represent liabilities for goods and services
provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes
obliged to make future payments in respect of the purchase of these goods and services.
(n)
(o)
(p)
Loans and borrowings
All loans and borrowings are initially recognised at cost, being the fair value of the consideration received net of
issue costs associated with the borrowing. After initial recognition, interest-bearing loans and borrowings are
subsequently measured at amortised cost using the effective interest method. Amortised cost is calculated by
taking into account any issue costs, and any discount or premium on settlement. Gains and losses are recognised
in the statement of comprehensive income when the liabilities are derecognised as well as through the amortisation
process.
Contributed equity
Ordinary share capital is recognised at the fair value of the consideration received.
Earnings per share
Basic earnings per share is determined by dividing net operating results after income tax attributable to
members of the parent entity, excluding any costs of servicing equity other than ordinary shares, by the
weighted average number of ordinary shares outstanding during the financial year.
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 potential ordinary shares.
(q) Goods and services tax
Revenues, expenses and assets are recognised net of goods and services tax (GST), except where the amount
of GST incurred is not recoverable. In these circumstances the GST is recognised as part of the cost of acquisition
of the asset or as part of the expense item.
Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from
or payable to the tax authority 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 tax authority are classified as
operating cash flows.
(r)
Provisions – Employee benefits
Provision for employee benefits represents the amount which the Group has a present obligation to pay resulting
from employees’ service provided up to the balance date.
Liabilities arising in respect of employee benefits expected to be settled within twelve months of the balance date
are measured at their nominal amounts based on remuneration rates which are due to be paid when the liability
is settled. All other employee benefit liabilities are measured at the present value of the estimated future cash
outflow to be made in respect of services provided by employees up to the balance date.
40
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(s)
Provisions – Rehabilitation costs
Full provision for rehabilitation costs is made based on the net present value of the estimated cost of restoring
the environmental disturbance that has occurred up to the balance date. Increases due to additional
environmental disturbances are capitalised and amortised over the remaining lives of the operations. These
increases are accounted for on a net present value basis.
Rehabilitation provisions are discounted using a current pre-tax rate that reflects the risks specific to the liability.
When discounting is used, the increase in the provision due to the passage of time is recognised as a financing
cost. The estimated costs of rehabilitation are reviewed annually and adjusted as appropriate for changes in
legislation, technology or other circumstances.
(t)
Leases
Leases are classified at their inception as either operating or finance leases based on the economic substance
of the agreement so as to reflect the risks and benefits incidental to ownership.
Operating leases
The minimum lease payments of operating leases, where the lessor effectively retains substantially all of the
risks and benefits of ownership of the leased item, are recognised as an expense on a straight-line basis.
(u)
Cash and cash equivalents
Cash and cash equivalents in the statement of financial position comprise cash at bank and short-term deposits
with an original maturity of three months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value. For the purposes of the statement of cash flows,
cash includes cheque account, trust account, credit card accounts and deposits at call which are readily
convertible to cash on hand and which are used in the cash management function on a day to day basis, net
of outstanding bank overdrafts.
(v) Government grants
Government grants are recognised where there is reasonable assurance that the grant will be received and all
attached conditions will be complied with. When the grant relates to an expense item, it is recognised as income
on a systematic basis over the periods that the related costs, for which it is intended to compensate, are
expensed. When the grant relates to an asset, it is recognised as income in equal amounts over the expected
useful life of the related asset. When the Group receives grants of non-monetary assets, the asset and the
grant are recorded at nominal amounts and released to profit or loss over the expected useful life of the asset
based on the pattern of consumption of the benefits of the underlying asset by equal annual instalments.
3.
JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION
UNCERTAINTY
Judgements made by management in the application of IFRS that have significant effects on the financial
statements and estimates with a significant risk of material adjustments in the next year are disclosed, where
applicable, in the relevant note to the financial statements. The following are the key assumptions concerning
the future, and other key sources of estimation uncertainty at the balance date, that have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year:
Exploration and evaluation costs carried forward
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of
factors, including whether the Group decides to exploit the related lease itself or, if not, whether it successfully
recovers the related exploration and evaluation asset through sale. Factors which could impact the future
recoverability include the level of proved, probable and inferred mineral resources, future technological changes
which could impact the cost of mining, future legal changes (including changes to environmental restoration
obligations) and changes to commodity prices. To the extent that capitalised exploration and evaluation
expenditure is determined not to be recoverable in the future, this will reduce profits and net assets in the period
in which this determination is made.
Impairment of mine properties and receivables
Assets, including property, plant and equipment and receivables, are reviewed for impairment if there is any
indication that the carrying amount may not be recoverable. Where a review for impairment is conducted, the
41
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3.
JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION
UNCERTAINTY (continued)
recoverable amount is assessed by reference to the higher of “value in use” (being the net present value of
expected future cash flows of the relevant cash generating unit) and “fair value less costs to sell”.
Provision for decommissioning and restoration costs
Decommissioning and restoration costs are a normal consequence of mining and the majority of this
expenditure is incurred at the end of a mine’s life. In determining an appropriate level of provision, consideration
is given to the expected future costs to be incurred, the timing of these expected future costs (largely dependent
on the life of the mine) and the estimated future level of inflation. The ultimate cost of decommissioning and
restoration is uncertain and costs can vary in response to many factors including changes to the relevant legal
requirements, the emergence of new restoration techniques or experience at other mine sites. The expected
timing of expenditure can also change, for example in response to changes in reserves or to production rates.
Changes to any of the estimates could result in significant changes to the level of provisioning required, which
would in turn impact future financial results.
Deferred tax assets
Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against
which the losses can be utilised. Significant management judgement is required to determine the amount of
deferred tax assets that can be recognised, based on the likely timing and the level of future taxable profits
together with future tax planning strategies.
Deferred tax assets have not been recognised because it is not probable that future taxable profit will be
available against which the Group can utilise the benefits thereof.
42
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
4. REVENUE AND EXPENSES
(a) Revenue
- Interest
(b) Other income
- Management fees
- Research and development tax claim
- Gain on relinquishment of loans (Note 12)
(c)
Employee and Directors’ – remuneration expense
- Wages and salaries - Employees
- Directors fees
(d)
Corporate and administration expenses
- Accounting and tax fees
- Consulting fees
- Legal fees
- Legal settlement expenses
- Travel and accommodation expenses
- Regulatory fees
- Insurance expenses
- Other expenses
CONSOLIDATED
2016
$
2015
$
7,894
2,434
7,507
-
3,402,866
3,410,373
-
63,082
-
63,082
651,565
140,000
382,421
156,667
791,565
539,088
21,055
1,540,190
490,707
150,000
178,535
127,040
10,439
428,043
120,899
289,851
92,144
-
66,395
49,861
36,201
52,038
2,946,009
707,389
(e)
Finance costs
- Bank fees
- Interest expense
- Interest expense – capitalised against loan (Note 12)
- Cost associated with the capital raising
- Interest accretion in relation to the rehabilitation provision
5,291
134,328
1,503,569
-
88,053
5,511
20,042
1,995,650
328,375
-
1,731,241
2,349,578
43
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
5.
INCOME TAX EXPENSE
(a) Income tax recognised in profit or loss
The major components of tax expense/(benefit) are:
Current tax expense/(benefit)
Benefit arising from previously unrecognised tax
losses from prior years
Deferred tax expense/(benefit)
Total tax expense/(benefit)
The prima facie income tax benefit on pre-tax loss from
ordinary activities reconciles to the income tax benefit
in the financial statements as follows:
CONSOLIDATED
2016
$
2015
$
(10,000)
-
(10,000)
-
-
-
-
Accounting loss before income tax
(18,011,267)
(7,701,667)
Income tax expense/ (benefit) calculated at 30% (2015:
30%)
Tax effect of amounts which are not
deductible/(taxable) in calculating taxable income:
- Effect of expenses that are not deductible in
determining taxable profit
- Effect of other items which are non-assessable in
determining taxable profit
- Effect of losses and other deferred tax balances not
recognised during the period
Income tax expense/(benefit) reported in the
consolidated statement of comprehensive income
(b) Amounts recognised directly in equity
The following current and deferred amounts were
charged/(credited) directly to equity during the year:
Current tax – revaluation of available for sale asset
Total tax expense recognised directly in equity
(c) Deferred tax recognised:
Deferred tax liabilities:
Available for sale asset
Deferred tax assets:
Carry forward revenue losses
Net deferred tax
44
(5,403,380)
(2,310,500)
722,314
(1,020,860)
79,720
41,026
5,691,926
2,189,754
(10,000)
10,000
10,000
10,000
(10,000)
-
-
-
-
-
-
-
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
5.
INCOME TAX EXPENSE (continued)
The tax benefits of the above deferred tax assets will only be obtained if:
•
•
•
-
the Group derives future assessable income of a nature and of an amount sufficient to enable the benefits
to be utilised;
the Group continues to comply with the conditions for deductibility imposed by law; and
no changes in income tax legislation adversely affect the Group in utilising the benefits.
The deductible tax losses do not expire under current tax legislation. Deferred tax assets have not been recognised
in respect of these items because it is not probable that future taxable profit will be available against which the Group
can utilise the benefits therefrom.
(d) Tax consolidation:
Eastern Goldfields and its wholly owned Australian resident subsidiary have formed a tax consolidated group.
Eastern Goldfields is the head entity of the tax consolidated group. For the purposes of income taxation, Eastern
Goldfields and its 100% owned subsidiaries have formed a tax consolidated group.
(i) Members of the tax consolidated group and the tax sharing agreement
Eastern Goldfields and its 100% owned Australian resident subsidiaries formed a tax consolidated group with
effect from 1 July 2002. Eastern Goldfields is the head entity of the tax consolidated group. Members of the
Group have entered into a tax sharing agreement that provides for the allocation of income tax liabilities between
the entities should the head entity default on its tax payment obligations. No amounts have been recognised in
the financial statements in respect of this agreement on the basis that the possibility of default is remote.
(ii) Tax effect accounting by members of the tax consolidated group.
The head entity and the controlled entities in the tax consolidated group continue to account for their own current
and deferred tax amounts. The Group has applied the Group allocation approach in determining the appropriate
amount of current taxes and deferred taxes to allocate to members of the tax consolidated group. The current
and deferred tax amounts are measured in a systematic manner that is consistent with the broad principles in
AASB 112 Income Taxes.
6. TRADE AND OTHER RECEIVABLES
CURRENT
Trade receivables
GST receivables
Related party receivables1
Other receivables
CONSOLIDATED
2016
$
2015
$
2,807
950,298
221,447
93,429
2,483
195,117
-
-
1,267,981
197,600
1 These receivables relate to advances provided to related parties. There are no interest charges on these advances
Ageing of trade and other receivables:
0-180 days
+ 181 days PDNI *
+181 days CI **
* Past due not impaired (PDNI)
** Considered impaired (CI)
There were no receivables past due and considered impaired (2015: nil).
1,267,981
-
-
1,267,981
197,600
-
-
197,600
45
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
6. TRADE AND OTHER RECEIVABLES (continued)
NON-CURRENT
Security deposits (a)
Sundry receivables – Joint operator (b)
Allowance for non-recovery (c)
CONSOLIDATED
2016
$
2015
$
64,160
6,534,637
(6,534,637)
64,160
6,534,637
(6,534,637)
64,160
64,160
(a) Security deposits are held in a 90 day and 1 year term deposit that are rolled over at each maturity
date. The deposits comprised a $30,000 security deposit for the Eastern Goldfields credit cards and a
bank guarantee for $34,160 that is not available for use until the Group has been released from any
rehabilitation obligations in regard to tenements to which the security deposit relates.
Reconciliation of security deposits:
Opening balance
Reclassified from cash
Closing written down value
64,160
-
64,160
64,160
-
64,160
(b) Represents monies owed to the Company from its joint operator. Refer to Note 23.
(c) The carrying values of trade and other receivables approximate their fair values.
7. MINE PROPERTIES
Plant and equipment
At cost
Less accumulated depreciation and impairment
Mine development
At cost
Less accumulated depreciation and impairment
Construction in progress
At cost
Total mine properties
At cost
Less accumulated depreciation and impairment
CONSOLIDATED
2016
$
2015
$
14,145,438
(11,145,438)
14,145,438
(11,145,438)
3,000,000
3,000,000
-
-
-
606,779
-
-
-
-
14,752,217
(11,145,438)
14,145,438
(11,145,438)
3,606,779
3,000,000
46
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
7. MINE PROPERTIES (continued)
Impairment of Plant and Equipment
The processing plant is currently held in care and maintenance. During the prior period the Company
obtained a market valuation report from an independent third party. The report contained an upper, preferred
and lower valuation based on a trade sale. The carrying value of the property, plant and equipment was
impaired to the lower valuation contained in the report to ensure the carrying value reflects the risk of pricing
uncertainty due to current second hand market conditions and to cover costs to sell.
The recoverable amount has been determined using fair value less costs to dispose using the market
comparable method (level 3 in the hierarchy). This means that valuations performed by the valuer are based
on active market prices, significantly adjusted for differences in the nature, location or condition of the
specific plant. As at the date of valuation on 6 December 2013, the plant and equipment fair values were
based on valuations performed by MSP Engineering Pty Ltd.
Reconciliation of mine properties:
Plant and equipment
Carrying amount at beginning of period
Additions
Impairment
Carrying amount at end of period
Mine development
Carrying amount at beginning of period
Reassessment of rehabilitation provision
Less amount written off to the profit and loss
Carrying amount at end of period
Construction in progress
Carrying amount at beginning of period
Additions
Carrying amount at end of period
8. CAPITALISED EXPLORATION EXPENDITURE
Tenement acquisition costs
Balance at beginning of period
Tenements acquired
CONSOLIDATED
2016
$
2015
$
3,000,000
-
-
3,000,000
-
5,143,781
(5,143,781)
-
-
606,779
606,779
3,000,000
3,998
(3,998)
3,000,000
-
-
-
-
-
-
-
3,606,779
3,000,000
-
453,953
453,953
-
-
-
In May 2016, Eastern Goldfields paid $125,000 in cash and issued 2,000,000 unlisted options (1,000,000
unlisted options exercisable at $0.168 each on or before 8 March 2018 and 1,000,000 unlisted options
exercisable at $0.189 each on or before 8 March 2020 to acquire the exploration tenements from Goldstar
Resources (WA) Pty Ltd, a wholly owned subsidiary of Orion Gold NL (refer Note 27).
47
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
9.
INVENTORY
CONSOLIDATED
Inventory
2016
$
-
-
2015
$
10,911
10,911
10. AVAILABLE FOR SALE FINANCIAL ASSETS
Shares in listed entities
Shares in Orion Gold NL – 33,333,333 shares (2015: Nil)
533,333
-
As part of the agreement to purchase the Orion Gold NL’s exploration tenements as described in Note 8,
Eastern Goldfields agreed to subscribe for 33,333,333 shares in Orion Gold at a price of $0.015 per share
($500,000). At 30 June 2016, the shares in Orion Gold traded at $0.016 per share.
11. TRADE AND OTHER PAYABLES
Trade payables (a)
Accruals (a)
Payable to Stirling Resources Pty Ltd (refer Note 12)
Share application funds received (b)
Other payables
3,984,935
2,339,912
150,000
-
1,192,017
3,439,526
35,000
-
879,750
585,561
7,666,864
4,939,837
(a) Trade payables and accruals are non-interest bearing and generally settled on 60 day terms.
(b) Share application funds received during the year ended 30 June 2015. Shares were subsequently
issued at a price of $0.15 per share on 27 November 2015.
(c) Included in the trade and other payables balances are payables to related parties totalling
$1,943,445 (2015: $794,807).
(d) The carrying values of trade and other payables approximate their fair values.
12. LOANS AND BORROWINGS
Investmet Ltd – Secured (b)
Investmet Ltd – Unsecured (b)
Stirling Resources Pty Ltd – Unsecured (a)
Delta Resources Pty Ltd – Unsecured
Michael Fotios Family Trust – Unsecured (“MFFT”)
-
-
-
52,844
-
20,387,319
8,642,029
5,635,799
316,167
99,904
52,844
35,081,218
48
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
12. LOANS AND BORROWINGS (continued)
Reconciliation of loans and borrowings:
Carrying amount at beginning of year
Advances
Capitalised interest
Cash repayments
Equity repayments at $0.15 per share
Transfer to related party payables
Future obligation settlement with
issue of equity
Future obligation settlement (refer
Note 11)
Gain on relinquishment of loans
Closing written down value
(a) Stirling Resources Pty Ltd
Investmet
$
29,029,348
43,985
1,281,693
(545,720)
(29,845,679)
36,373
-
-
-
-
Stirling
$
5,635,799
-
155,035
(1,562,968)
-
-
(150,000)
(675,000)
(3,402,866)
-
Delta
$
316,167
528,756
41,309
(233,388)
(600,000)
-
-
-
-
52,844
MFFT
$
99,904
606,510
25,532
(590,148)
(150,000)
8,202
-
-
-
-
TOTAL
$
35,081,218
1,179,251
1,503,569
(2,932,224)
(30,595,679)
44,575
(150,000)
(675,000)
(3,402,866)
52,844
On 30 December 2015, the Company announced it had entered into a revised settlement arrangement with
Stirling Resources Pty Ltd (Stirling Resources) which provided for the following:
• Payment of the remainder of $529,000 pursuant to the previous settlement arrangement to occur in two
tranches of $150,000 on 31 December 2015 and $379,000 plus accrued interest on the diminishing
balance of the previous settlement amount since 1 July 2015 at a rate of 6 per cent per annum to occur
on 8 January 2016;
• Upon payment of the settlement amounts, all amounts owing to Stirling under the loan facility agreement
with the Company and other parties, and all related security, will be released;
• Acknowledgement of the amount of $1,000,000 already paid by Eastern Goldfields under the previous
settlement arrangement;
• Agreement to the share buy-back of all of the shares held by Stirling in Eastern Goldfields;
• A further payment of $150,000 by Eastern Goldfields to be made on the earlier of the date which is 3
months after commencement of gold production at the Davyhurst gold operation and 30 September 2016;
and
• Subject to commencement of gold production at the Davyhurst gold operation, an issue of 4.5 million
ordinary shares by Eastern Goldfields in two equal tranches on the date of payment of the further
$150,000 referred to above and the earlier of the date which is within 6 months of commencement of gold
production and 31 December 2016.
In February 2016, a second amended deed was subsequently entered whereby the payments as part of
settlement were amended as follows:
• Payment of $150,000 on or before 31 December 2015;
• Payment of $200,000 on or before 11 February 2016; and
• Payment of $229,000 plus $33,968 on or before 16 February 2016 or, if a written demand is given by
Stirling pursuant to clause 3(b) of the Settlement Deed, and the non-payment is remedied within 3
business days after the written demand, $229,000 plus $34,200.
Payments were made in accordance with the settlement deed to Stirling Resources and the outstanding loan
amounts and all related security were released.
At 30 June 2016, the Company was still liable to Stirling Resources for:
• A further payment of $150,000 by Eastern Goldfields to be made on the earlier of the date which is 3
months after commencement of gold production at the Davyhurst gold operation and 30 September 2016
(this has been included in Note 11 as a current liability and was subsequently paid to Stirling Resources
on 6 October 2016); and
49
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
12. LOANS AND BORROWINGS (continued)
• Subject to commencement of gold production at the Davyhurst gold operation, an issue of 4.5 million
ordinary shares by Eastern Goldfields in two equal tranches on the date of payment of the further
$150,000 referred to above and the earlier of the date which is within 6 months of commencement of gold
production and 31 December 2016. The issue of 4.5 million shares has been provisionally recorded
against share capital (being valued at the issue price of $0.15 per share), and offset against the liability
to Stirling Resources (as shown in the reconciliation of loans and borrowings).
(b)
Investmet Ltd Loan
Following shareholder approval on 30 December 2015, a total of 198,971,193 shares were issued on 8
March 2016 at a deemed price of $0.15 per share totaling $29,845,679 to satisfy the part settlement of
secured and unsecured loans with Investmet Limited.
A further cash payment of $545,720 was also paid to settle all other outstanding balances.
13. PROVISIONS
CURRENT
Employee benefits
NON-CURRENT
Provision for rehabilitation
Reconciliation of provision for rehabilitation:
Carrying amount at beginning of period
Movement as a result of re-assessment of provision
Accretion
Carrying amount at end of period
CONSOLIDATED
2016
$
2015
$
63,110
63,110
52,391
52,391
9,379,934
9,379,934
4,148,100
4,148,100
4,148,100
5,143,781
88,053
9,379,934
4,148,100
-
-
4,148,100
The Group makes full provision for the future cost of rehabilitating mine sites and related production facilities on
a discounted basis on the development of mines or installation of those facilities.
The rehabilitation provision represents the present value of rehabilitation costs relating to mine sites. These
provisions have been created based on Eastern Goldfields’ internal estimates. Assumptions, based on the current
economic environment, have been made which management believes are a reasonable basis upon which to
estimate the future liability. These estimates are reviewed regularly to take into account any material changes to
the assumptions. However, actual rehabilitation costs will ultimately depend upon future market prices for
necessary decommissioning works required which will reflect market conditions at the relevant time.
Furthermore, the timing of rehabilitation is likely to depend on when the mines cease to produce at economically
viable rates. This, in turn, will depend upon future gold prices, which are inherently uncertain.
During the financial year ended 30 June 2016, management undertook a detailed review of the Group’s future
rehabilitation obligations in relation to the mine. The review involves ground trothing the entire tenement portfolio
to confirm exactly what areas have been disturbed.
50
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
14. CONTRIBUTED EQUITY
(a) Share capital
494,097,819 (2015: 91,850,223) ordinary
shares, fully paid
CONSOLIDATED
2016
$
2015
$
228,342,835
168,040,331
Ordinary shares entitle the holder to participate in dividends in proportion to the number of and amounts
paid on the shares held. On a show of hands, every holder of ordinary shares present at a meeting in
person or by proxy is entitled to one vote, and upon a poll each share is entitled to one vote.
(b) Movements in ordinary share capital Shares No. $
Balance 1 July 2014
913,487,661
167,965,331
Shares issued – 11 July 2014 at $0.015 per share
Consolidation 1 for 10 – 15 July 2014
5,000,000
(826,637,438)
75,000
-
Balance 30 June 2015
91,850,223
168,040,331
Shares issued – 27 Nov 2015 at $0.15 per share(i)
Shares issued – 8 March 2016 at $0.15 per share(ii)(xi)
Shares issued – 8 March 2016 deemed at $0.15 per share(iii)
Shares issued – 8 March 2016 deemed at $0.15 per share(iv)
Shares issued – 8 March 2016 deemed at $0.15 per share(v)
Shares issued – 8 March 2016 at $0.15 per share(vi)
Shares issued – 8 March 2016 deemed at $0.15 per share(vii)
Shares issued – 21 March 2016 at $0.15 per share(viii)
Shares buy back – 23 March 2016(ix)
Shares issued – 13 April 2016 at $0.15 per share(x)
Provision for the issue of shares for Stirling Loan
settlement at $0.15 per share
Cost of Capital Raising
10,666,667
66,666,667
202,478,114
1,493,082
7,980,000
33,333,333
420,221
66,666,667
(8,632,822)
16,666,667
4,500,000
-
1,600,000
10,000,000
30,371,717
223,962
1,197,000
5,000,000
63,033
10,000,000
(1)
2,500,000
675,000
(1,328,207)
Balance 30 June 2016
494,097,819
228,342,835
(i)
(ii)
(iii)
(iv)
Placement made to professional and sophisticated investors subsequently ratified by shareholders on 30 December 2015.
Issued to professional and sophisticated investors pursuant to the Prospectus dated 24 December 2015 following
shareholder approval on 30 December 2015.
Issued following conversion of principle amount and interest on debts owed by the Company to related parties and unrelated
parties as approved by shareholders on 30 December 2015.
Issued following conversion of principle amount and interest on debts owed by the Company to non-related parties as
approved by shareholders on 30 December 2015.
Issued in lieu of fees owed by the Company as approved by shareholders on 30 December 2015.
Issued pursuant to the Prospectus (as supplemented) dated 24 December 2015.
Issued following the conversion of interest on debts owed by the Company (to non-related parties).
(v)
(vi)
(vii)
(viii) Issued to pursuant to the Prospectus (as supplemented) dated 24 December 2015 following shareholder approval on 16
March 2016.
(ix) Share buy-back as part settlement with Stirling Resources Pty Ltd.
(x)
Issued to professional and sophisticated investors following oversubscriptions received under the Prospectus dated 24
December 2015.
(xi) An amount of $879,750 was received before 30 June 2015.
Capital Management
When managing capital, management’s objective is to safeguard the entity’s ability to continue as a going
concern as well as to maintain optimum returns to shareholders and benefits to other stakeholders.
Management also aims to maintain a capital structure that ensures the lowest cost of capital available to
the entity. Capital is comprised of shareholders’ equity as disclosed in the statement of financial position.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. Management
has no current plans to reduce the capital structure through a share buy-back. The Group is not subject to
any externally imposed capital restrictions.
51
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED
15. RESERVES
Option premium and share-based payments reserve
Available for sale reserve
Reconciliation of reserves:
Option premium and share-based payments reserve
Opening balance
Fair value of options issued for tenement acquisition
Share based payments issued during the year
(refer to Note 27)
Available for sale reserve
Opening balance
Revaluation of Orion Gold NL shares
Tax effect of revaluation
16. KEY MANAGEMENT PERSONNEL
Aggregate Remuneration
- Short-term
- Post-employment
- Share based payments (refer note 27)
17. REMUNERATION OF AUDITORS
Amounts paid or due and payable to the auditors for:
- Auditing and reviewing the financial reports
Current year
Prior year (due and payable)
- Taxation advisory services
18. EXPENDITURE COMMITMENTS
2016
$
8,029,044
23,333
8,052,377
5,292,614
328,953
2,407,477
8,029,044
-
33,333
(10,000)
23,333
140,000
-
1,322,720
1,462,720
159,500
-
-
159,500
2015
$
5,292,614
-
5,292,614
5,292,614
-
-
5,292,614
-
-
-
-
156,667
-
-
156,667
36,000
25,196
-
61,196
Under the terms of mineral tenement licences held by the Group, minimum annual expenditure obligations of
$4,973,393 (2015: $4,183,710) may be required to be expended during the forthcoming financial year in order for the
tenements to maintain a status of good standing. This expenditure may be incurred by the Group and may be subject
to variation from time to time in accordance with Department of Industry and Resources regulations.
On 23 September 2016, Eastern Goldfields announced that it had awarded a contract to GR Engineering Services
Limited to refurbish the Davyhurst gold processing plant. The target cost estimate for completion of the work is
$12,566,697.
52
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
19. SEGMENT INFORMATION
The Group has identified its segments based on the internal management reporting that is used by the executive
management team in assessing performance and allocating resources. At present the Group’s focus has been on the
exploration and evaluation of its interests in mineral tenement licences associated with the Davyhurst Gold Project.
The Group operates in one geographical segment – Australia.
As such, the consolidated entity only operates in one segment and no additional information is provided to that
contained in the consolidated financial statements contained herein.
20. RELATED PARTY TRANSACTIONS
(a) Subsidiaries of the Company can be found at Note 22.
(b) Directors who held office for any time during the period are disclosed in the Directors’ report.
(c) Terms and conditions of transactions with related parties:
Transactions with related parties are made at terms equivalent to those that prevail in arm’s length transactions.
Outstanding balances at the year-end are unsecured and carries interest at 6% p.a. (Investmet Limited) and
10% p.a. (Delta Resources Management Pty Ltd and Michael Fotios Family A/c) and settlement occurs in cash.
There have been no guarantees provided or received for any related party receivables or payables. For the
year ended June 2016, the Group has not recorded any impairment of receivables relating to amounts owed by
related parties. This assessment is undertaken each financial year through examining the financial position of
the related party and the market in which the related party operates.
(d) Transactions with related parties:
The following transactions occurred during the year between the Group and Directors or their director-related
entities
• Delta Resources Management Pty Ltd, a Company which Mr Michael Fotios is a substantial
shareholder in, and Chairman of, provided technical and administrative support to the Company to
the value of $112,079 (inclusive of GST) (2015: $518,475). A total of $25,705 remains due and
payable as at 30 June 2016 (2015: $509,592). All charges are at market value. Interest is not
charged. Delta Resources Management Pty Ltd also advanced a working capital loan to the
Company to the value of $528,756 (2015: $316,197). A total of $52,844 remains due and payable
on the loan balance as at 30 June 2016 (2015: $316,167). Interest of $41,309 was capitalised to the
loan principal for the year ended 30 June 2016 (interest rate 10% per annum, 2015: 10% per
annum). The Company made a cash repayment of $233,388 on this loan during the financial year.
In March 2016, the Company also issued 4,000,000 shares at a deemed price of $0.15 each as
settlement of $600,000 of the loan balance. Refer to Note 12 for the loan reconciliation.
• Whitestone Minerals Pty Ltd, a Company which is 100% owned by Investmet Ltd, a company which
Mr Michael Fotios is a substantial shareholder in, and Chairman of, provided consulting services to
the Company to the value of $3,803,409 (inclusive of GST) (2015: $137,893). In March 2016, the
Company issued 6,000,000 shares at a deemed price of $0.15 each in settlement of outstanding
invoices with a total value of $900,000. A total of $1,809,675 remains due and payable as at 30 June
2016 (2015: $211,976). All charges are at market value. Interest is not charged.
• Allion Legal, a firm which Mr Craig Readhead was a partner in until his resignation on 30 June 2015,
invoiced $210,207 in 2015 for legal advice provided to the Company. A total of $162,898 was
unpaid as at 30 June 2015.All charges were at normal commercial rates.
• General Mining Corporation Limited, a company which Mr Michael Fotios is a substantial
shareholder in, received consulting and administrative support from the Company to the value of
$67,402 (inclusive of GST) (2015: $0). A total of $67,402 remains due and receivable by the
Company as at 30 June 2016 (2015: $0). All charges were at normal commercial rates. Interest is
not charged.
53
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
• Horseshoe Metals Limited, a company which Mr Michael Fotios is a substantial shareholder in,
received consulting and administrative support from the Company to the value of $24,974 (inclusive
of GST) (2015: $16,484). A total of $55,866 remains due and payable by the Company as at 30
June 2016 (2015: $64,356). All charges are at market value. Interest is not charged.
• Pegasus Metals Limited, a company which Mr Michael Fotios is a substantial shareholder in,
received consulting and administrative support from the Company to the value of $45,848 (inclusive
of GST) (2015: $0). A total of $45,848 remains due and receivable as at 30 June 2016 (2015: $0).
All charges are at market value. Interest is not charged.
• Redbank Copper Limited, a company which Mr Michael Fotios is a substantial shareholder in,
received consulting and administrative support from the Company to the value of $116,324 (inclusive
of GST) (2015: $3,715). A total of $120,039 remains due and receivable as at 30 June 2016 (2015:
$3,715). All charges are at market value. Interest is not charged.
• During the year, Michael Fotios Family Trust provided loans of $606,510 (2015: $99,904) to Eastern
Goldfields for working capital. A total of $25,532 interest was capitalised to the Michael Fotios
Family Trust loan for the year ended 30 June 2016 (interest rate 10% per annum, 2015: 10% per
annum). In March 2016, Eastern Goldfields issued 1,000,000 shares at a deemed price of $0.15
each as settlement of $150,000 of the balance. In addition, an amount of $590,148 was paid in cash
as settlement of the balance. Upon conversion, the Company inadvertently converted shares to the
value of $8,202 in excess of the loan balance. This amount was offset against outstanding invoices
from Whitestone Minerals Pty Ltd, thereby reducing the debt owed to them. A total of $0 remains
due and payable as at 30 June 2016 (2015: $99,904). Refer to Note 12 for the loan reconciliation.
• During the year, Eastern Goldfields settled its outstanding loan with Investmet Limited, a company
which Mr Michael Fotios is a substantial shareholder in through cash repayments of $545,720 and
the conversion of $29,845,679 of the loan balance into shares. Upon conversion, the Company
inadvertently converted shares to the value of $36,373 in excess of the loan balance. This amount
was offset against outstanding invoices from Whitestone Minerals Pty Ltd, thereby reducing the debt
owed to them. Refer to Note 12 for the loan reconciliation. A total of $1,281,693 (2015: $0) interest
was capitalised to the Investmet loan for the year ended 30 June 2016. A total of $0 remains due
and payable as at 30 June 2016 (2015: payable of $29,029,348).
• Readhead Legal, a company which Mr Craig Readhead is a substantial shareholder in, received
$84,000 (2015: $0) for consulting fees to the Company. A total of $37,400 (inclusive of GST)
remains due and payable as at 30 June 2016 (2015: $0). The Company issued 220,000 fully paid
ordinary shares of Eastern Goldfields Ltd at a deemed price of $0.15 each during the year as
settlement of his consulting fees of $33,000.
• Magisterium Pty Ltd, a company which Mr Craig Readhead was a substantial shareholder of until 30
June 2015, invoiced $40,000 for his Directors fees in respect of the Company, for the financial year
ended 30 June 2015. A total of $65,993 was unpaid as at 30 June 2015.
• Zedsee Enterprises Pty Ltd, a company which Mr Alan Still is a substantial shareholder in, received
$40,000 (2015: $0) for Directors fees to the Company. A total of $12,500 remains due and payable
as at 30 June 2016 (2015: $0).
21. FINANCIAL INSTRUMENTS
(a) Credit Risk
Credit risk relates to the risk that a counter party will default on its contractual obligations resulting in financial
loss to the Group. The exposure of the Group to credit risk at balance date in relation to each class of
recognised financial asset is the carrying amount of the assets as indicated in the statement of financial
position. Credit risk represents the loss that would be recognised if counterparties failed to perform as
contracted. The Group’s maximum exposure to credit risk at reporting date in relation to each class of
financial asset is the carrying amount of those assets as indicated in the Statement of Financial Position. In
relation to managing potential credit risk exposures, the Group has in place policies that aim to ensure that
cash transactions are limited to high credit quality financial institutions and that the amount of credit exposure
to any one financial institution is limited as far as is considered commercially appropriate.
54
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(b)
Interest Rate Risk
The Group’s exposure to the risk of changes in market interest rates is minimal and relates primarily to
cash and security deposits held with the Company’s bankers. Interest rate risk represents the risk that the
value of a financial instrument will fluctuate as a result of changes in market interest rates. The exposure
of the Group to interest rate risk and the effective weighted average interest rate for classes of financial
assets and liabilities is set out below.
Financial assets
Floating rate
Cash
Fixed rate
Security deposits – non- current (Note 6)
Financial liabilities
Fixed rate
Loans, borrowings and other liabilities
CONSOLIDATED
2016
$
2015
$
15,401,037
64,160
52,366
64,160
52,844
35,081,218
The Group’s policy is to manage its exposure to interest rate risk by holding cash on short term, fixed
rate deposits and variable rate deposits with reputable high credit quality financial institutions. The Group
constantly analyses its interest rate exposure. Consideration is given to potential renewals of existing
positions, alternative financing and the mix of fixed and variable interest rates.
(c) Sensitivity Analysis
The following tables summaries the sensitivity of the Group’s financial assets and liabilities to interest
rate risk. Had the interest rates moved, with all other variables held constant, post- tax profit and
equity would have been affected as shown.
Sensitivity Analysis
Interest rate risk
-1% (1)
Interest rate risk
+1% (1)
Interest rate risk
-1% (1)
Interest rate risk
+1% (1)
30 June 2016
30 June 2015
Profit
Equity
Profit
Equity
Profit
Equity
Profit
Equity
$
$
$
$
$
$
$
$
Financial assets
Cash
(154,010)
Total
increase/(decrease)
(154,010)
-
-
154,010
154,010
-
-
(524)
(524)
-
-
524
524
-
-
(1) The rate of 1% applied in the above analysis and is based on management’s expected movement for the interest rate over the next
financial year.
55
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
21. FINANCIAL INSTRUMENTS (continued)
(d) Liquidity risk
The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use
of loans and other available lines of credit. The Group manages liquidity risk by monitoring forecast cash
flows. The table below reflects all contractually fixed pay-offs and receivables for settlement, repayments
and interest resulting from recognised financial assets and liabilities as of 30 June 2016. Cash flows for
financial assets and liabilities without fixed amount or timing are based on the conditions existing at 30 June
2016.
Maturity analysis of financial assets and liabilities based on management’s expectations:
Trade payables and other financial liabilities mainly originate from the financing of assets used in our ongoing
operations. These assets are considered in the Group’s overall liquidity risk. To monitor existing financial
liabilities as well as to enable an effective controlling of future risks, the Company has established
comprehensive risk reporting covering its business that reflects expectations of management of expected
settlement of financial assets and liabilities.
< 6
months
$
6 – 12
months
$
1 – 5
years
$
>5
years
$
Total
$
Maturity Analysis
30 June 2016
Financial liabilities
Trade and other
payables
Loans, borrowings
and other liabilities
(7,666,864)
(52,844)
Net Maturity
(7,719,708)
30 June 2015
Financial liabilities
Trade and other
payables
Loans and
borrowings
< 6
months
$
6 – 12
months
(4,939,837)
(35,081,218)
Net Maturity
(40,021,055)
(e) Equity Price risk
-
-
-
$
-
-
-
-
-
-
-
-
(7,666,864)
(52,844)
-
(7,719,708)
1 – 5
years
$
>5
years
$
Total
$
-
-
-
-
-
(4,939,837)
(35,081,218)
-
(40,021,055)
At reporting date the Group owned 33,333,333 (2015: nil) listed shares in Orion Gold NL. The Group’s listed
equity securities are susceptible to market price risk arising from uncertainties about future values of the
investment securities. The Group manages the equity price risk through, where appropriate, diversification and
by placing limits on individual and total equity instruments. Reports on the equity portfolio are submitted to the
Group’s senior management on a regular basis. The Group’s Board of Directors reviews and approves all equity
investment decisions.
At the reporting date, the exposure to listed equity securities at fair value was $533,333. A decrease of 10% in
Orion Gold NL’s share price on reporting date would have an impact of $53,333 on the income or equity
attributable to the Group, depending on whether the decline is significant or prolonged. An increase of 10% in
the value of the listed securities would only impact equity, but would not have an effect on profit or loss.
56
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
21. FINANCIAL INSTRUMENTS (continued)
(f) Fair value measurement
The following tables detail the Groups’ assets and liabilities, measured or disclosed at fair value, using a three
level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being:
Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access
at the measurement date.
Level 2 – inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly or indirectly.
Level 3 – unobservable inputs for the asset or liability.
Consolidated – 2016
Assets
Available for sale assets
Liabilities
Consolidated – 2015
Assets
Available for sale assets
Liabilities
Level 1
$
Level 2
$
Level 3
$
533,333
533,333
Level 1
$
-
-
-
-
-
-
Level 2
$
-
-
-
-
-
-
-
-
Level 3
$
-
-
-
-
-
-
-
-
The fair value of financial instruments traded in active markets (such as available-for-sale securities) is based
on quoted market prices at the end of the reporting period. The quoted market price used for financial assets
held by the Group is the current bid price. These instruments are included in level 1. There were no transfers
between levels during the year.
(g) Fair value of financial assets and liabilities
The carrying amount of financial assets and financial liabilities recorded in the financial statements represents
their respective net fair values, determined in accordance with the accounting policies disclosed in Note 3. The
Directors consider that the carrying amount of financial assets and other financial liabilities recorded in the
financial statements approximate their net fair values (2015: net fair values).
57
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
22.
INVESTMENTS IN CONTROLLED ENTITIES
Name of entity
Monarch Nickel Pty Ltd
Monarch Gold Pty Ltd
Carnegie Gold Pty Ltd
Siberia Mining Corporation Pty Ltd
Country of
incorporation
Class
of shares
Equity holding
2015
2016
Australia
Australia
Australia
Australia
Ordinary
Ordinary
Ordinary
Ordinary
100
80
100
100
100
80
100
100
Controlled entities of Siberia Mining Corporation Pty Ltd
Mt Ida Gold Operations Pty Ltd
Australia
Ordinary
100
100
Controlled entities of Siberia Mining Corporation Pty Ltd
Ida Gold Operations Pty Ltd
Pilbara Metals Pty Ltd
Siberia Gold Operations Pty Ltd
Mt Ida Gold Pty Ltd
Australia
Australia
Australia
Australia
Ordinary
Ordinary
Ordinary
Ordinary
100
100
100
100
100
100
100
100
23.
INTERESTS IN JOINTLY CONTROLLED OPERATIONS
The Group entered into a joint arrangement with Kingsday Holdings Pty Ltd for the operation of the Mt Ida Excluded
Area joint operation. Under the agreement Eastern Goldfields retains a 70% interest in the asset. The Group
contributes 100% of the funding of the joint operation with the other participant’s share repayable from the gold
production of the asset. Eastern Goldfields will be paid interest on the funds used and in relation to the other
participant’s share of costs at a rate of 30% per annum during periods where mining operations are occurring on the
Mt Ida Excluded Area. The face value of the amount receivable as at 30 June 2016 is $6,534,637 (2015: $6,534,637)
with an applicable notional interest rate of 30%, subject to an interest free period of 20 months when Eastern Goldfields
had yet to recommence mining operations. This balance continues to be fully impaired as at 30 June 2016 (as shown
in Note 6) as the recovery of this balance is dependent on gold production and remains uncertain. There are no assets
employed by the joint operation and the Group’s expenditure in respect of the joint operation is brought to account
initially as exploration and evaluation through profit and loss.
The joint operation has no contingent liabilities or capital commitments.
24. CONTINGENT LIABILITIES
There were no contingent liabilities identified as at 30 June 2016 (2015: nil).
58
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
25. CASH FLOW STATEMENT
a) Reconciliation of cash and cash equivalents
Cash balances comprise:
Cash and cash equivalents
For the purpose of the cash flow statement, cash and cash equivalents
consist of cash and cash equivalents as defined above, net of
outstanding bank overdrafts.
b) Reconciliation of net cash outflow from operating activities to
loss after income tax
Loss after income tax
Adjusted for non- cash items:
Impairment of property, plant and equipment
Mine development expense
Interest expense – capitalised against loan (refer Note 12)
Accretion
Gain on loan relinquishment
Share based payments
Payments to suppliers made via equity settlement
Income tax benefit recognised
Changes in operating assets and liabilities:
(Increase)/decrease in receivables
Increase/(decrease) in payables
Increase/(decrease) of provisions
(Increase)/decrease of inventory
CONSOLIDATED
2016
$
2015
$
15,401,037
52,366
(18,001,267)
(7,701,667)
-
5,143,781
1,503,569
88,053
(3,402,866)
2,407,477
1,260,032
(10,000)
(1,070,381)
3,501,351
10,719
10,911
3,998
-
1,995,650
-
-
-
-
-
575,158
2,650,170
(5,851)
(10,911)
Net cash outflow from operating activities
(8,558,621)
(2,493,453)
26. LOSS PER SHARE
Loss per share (basic and diluted)
CONSOLIDATED
2016
$
(0.08)
2015
$
(0.08)
Loss used in the calculation of basic loss per share
18,001,267
7,701,667
Weighted average number of ordinary shares on issue used in the
calculation of basic earnings per share
Effect of dilution:
Weighted average number of ordinary shares on issue adjusted for
the effect of dilution
Number
Number
215,057,645
-
91,833,698
-
215,057,645
91,833,698
59
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
DIRECTORS’ DECLARATION
27. SHARE BASED PAYMENTS
The share based payments of $2,407,477 as recognised in the statement of profit or loss and other comprehensive
income incurred during the period relates to the following options issued:
Directors
Michael Fotios
Craig Readhead
Alan Still
Employees
TOTAL
Unlisted Options
at $0.168
expiring 8 March
2018
Series 1
Unlisted Options
at $0.189
expiring 8 March
2020
Series 2
Total
7,500,000
1,800,000
1,800,000
7,500,000
1,800,000
1,800,000
15,000,000
3,600,000
3,600,000
13,000,000
13,000,000
26,000,000
24,100,000
24,100,000
48,200,000
Series 1 Options: 24,100,000 Unlisted Options exercisable at $0.168 expiring 8 March 2018 issued to Directors
and employees under the Company Share Option Plan. These options vested on the date of issue (11,100,100 on
30 December 2015 and 13,000,000 on 4 April 2016).
Series 2 Options: 24,100,000 Unlisted Options exercisable at $0.189 expiring 8 March 2020 issued to Directors
and employees under the Company Share Option Plan. Options issued to Directors vested on 30 December 2015.
The Options issued to employees vest on 14 April 2018 subject to continual employment and engagement by the
Company by the vesting date.
The fair value of options granted during the year was calculated at the date of grant using the Black-Scholes option-
pricing model. The following table gives the assumption made in determining the fair value of options on grant date:
Option Series
Fair value per option
Grant date
Number of options
Expiry date
Exercise price
Price of shares on grant
date
Estimated volatility
Risk-free interest rate
Dividend yield
Director Options
Series 1
$0.051492
30/12/15
11,100,000
08/03/2018
$0.168
$0.15
Director Options
Series 2
$0.067672
30/12/15
11,100,000
08/03/2020
$0.189
$0.15
Emp.Options
Series 1
$0.07187
4/04/16
13,000,000
08/03/2018
$0.168
$0.21
Emp.Options
Series 2
$0.09172
4/04/16
13,000,000
08/03/2020
$0.189
$0.21
75%
2.00%
0%
75%
2.00%
0%
80%
2.00%
0%
80%
2.00%
0%
60
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
DIRECTORS’ DECLARATION
27. SHARE BASED PAYMENTS (continued)
The share based payments of $328,953 as recognised as part of capitalised exploration expenditure (refer Note 8)
relates to the following options issued:
In May 2016, Eastern Goldfields paid $125,000 and 2,000,000 unlisted options (1,000,000 unlisted options
exercisable at $0.168 each on or before 8 March 2018 and 1,000,000 unlisted options exercisable at $0.189 each
on or before 8 March 2020) to acquire the exploration tenements from Goldstar Resources (WA) Pty Ltd, a wholly
owned subsidiary of Orion Gold NL.
The fair value of options issued for the purchase of the exploration tenements were calculated at the date of grant
using the Black-Scholes option-pricing model. The following table gives the assumption made in determining the
fair value of options on grant date:
Option Series
Fair value per option
Grant date
Number of options
Expiry date
Exercise price
Price of shares on grant
date
Estimated volatility
Risk-free interest rate
Dividend yield
Series 1
$0.15147
3/05/16
1,000,000
08/03/2018
$0.168
$0.26
80%
1.75%
0%
Series 2
$0.17747
3/05/16
1,000,000
08/03/2020
$0.189
$0.26
80%
1.75%
0%
28. SUBSEQUENT EVENTS
On 5 September 2016, Eastern Goldfields announced that it had entered into an exploration and development earn-
in joint venture with Intermin Limited (ASX:IRC) (“Intermin”) on tenements containing nearly 200,000 oz Au in
reported resources, and with historic production in excess of 830,000 oz, primarily from underground sources.
Material Terms of Heads of Agreement with Intermin
a) Eastern Goldfields to solely contribute to expenditure of $2M on the Projects to earn a 25% interest within 2
years of the commencement date (“Initial Interest”);
b) Eastern Goldfields to solely contribute to further expenditure of $2M on the Projects to earn a further 25%
interest within 2 years of earning the Initial Interest (“Further Interest”);
c) Eastern Goldfields to solely contribute to further expenditure of $1.5m on the Projects (inclusive of a BFS to
support a mill installation in the Mt Ida/Menzies region) to earn a further 15% interest within 2 years of earning
the Initial Interest (“Second Further Interest”);
d) While Eastern Goldfields is sole funding the Projects, it will manage the exploration programs on the Projects
and be responsible for maintaining tenure over the Projects areas in good standing, subject to Intermin
providing in a timely manner all cooperation required by Eastern Goldfields;
e) Eastern Goldfields may withdraw from the above expenditure obligations at any time but will be entitled to
retain any interest in the Projects earned (if any) at the date of withdrawal;
f)
g)
Intermin will transfer legal title to each of the Initial Interest and Further Interests as soon as Eastern Goldfields
has earned the beneficial interest as mentioned above;
In respect to the Goongarrie Lady mining lease M29/420, Intermin and Eastern Goldfields agree that the
current resource of 272,014t @ 2.86g/t for 25,000 ounces currently under feasibility study is excluded from
the farm in and both parties will work together on potential milling of the project at the Davyhurst Mill under
standard commercial terms; and
h) For avoidance of doubt, exploration on M29/420 outside of (g) above forms part of the joint venture covering
the Goongarrie Project area.
61
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
DIRECTORS’ DECLARATION
28. SUBSEQUENT EVENTS (continued)
Upon Eastern Goldfields earning a Project interest of 75%, the parties will:
a)
thereafter each contribute to expenditure on the Projects in accordance with their respective percentage Project
interests from time to time;
b) establish a joint venture committee to make all decisions in respect of exploration, resource development,
definitive feasibility studies, approvals and any other matters required for consideration (“Joint Venture”);
appoint Eastern Goldfields as manager of the Joint Venture unless otherwise agreed, provided that Intermin will
continue to provide in a timely manner all cooperation required by Eastern Goldfields;
c)
d) make all Joint Venture decisions by majority vote in accordance with the respective percentage Project interests
of the parties from time to time;
e) apply a standard industry straight line dilution formula; and
f)
permit assignment by each party of its Projects interest at any time, provided that the incoming party enters into
a Deed of Assignment and Assumption upon terms reasonably required by the ongoing party.
Conditions
The Heads of Agreement is conditional upon:
a) Eastern Goldfields being satisfied with its due diligence investigations in respect of the Project areas;
b) Eastern Goldfields’ Board resolving to proceed with the transaction set out in this Heads of Agreement;
c)
such other conditions precedent that are customary in transactions of this nature together called “Conditions
Precedent”.
Placement with Intermin
Eastern Goldfields has agreed to subscribe for shares in a placement undertaken by Intermin whereby Eastern
Goldfields will subscribe for 12,500,000 new fully paid ordinary shares in Intermin (“Placement”) at 12 cents per share
(“Subscription Price”) being equal to the terms being offered by Intermin to other investors. It is understood the
Placement may occur in two tranches with the second tranche subject to shareholder approval.
In consideration of making the Placement, Intermin will issue to Eastern Goldfields 6,250,000 options with an exercise
price of 17 cents per option and with an expiry date of 31 August 2018.
Investment in Winward Resources Limited
On 8 September 2016, Eastern Goldfields announced that it had entered into a binding investment arrangement with
Windward Resources Limited (ASX:WIN) (Windward) that would see Eastern Goldfields becomes a cornerstone
shareholder in Windward, providing the Company with exposure to Windward’s highly prospective Fraser Range
portfolio.
On 10 October 2016, following an off-market takeover offer from Independence Group NL to acquire all of the ordinary
shares of Windward, Eastern Goldfields announced that it has given notice of withdrawal to Windward, releasing it
from its obligations to hold a meeting of its shareholders to approve the subscription for shares in Windward in
accordance with the subscription agreement between the Company and Windward.
Settlement with Stirling Resources Pty Ltd
On 30 December 2015, the Company announced a revised settlement arrangement with Stirling Resources Pty Ltd.
Under the terms of the revised settlement, which is summarised in Note 12(a), a payment of $150,000 by Eastern
Goldfields was to be made on the earlier of the date which is 3 months after commencement of gold production at the
Davyhurst gold operation and 30 September 2016. Payment of $150,000 was made by the Company on 6 October
2016.
Of the remaining liability at 30 June 2016:
•
•
the further payment of $150,000 was made subsequently on 6 October 2016;
the issue of 4.5 million ordinary shares remains outstanding;
Contract awarded to GR Engineering
On 23 September 2016, Eastern Goldfields announced that it had awarded a contract to GR Engineering Services
Limited to refurbish the Davyhurst gold processing plant. The target cost estimate for completion of the work is
$12,566,697
Loan agreement with Orion Gold NL
On 9 September 2016, Eastern Goldfields entered into an agreement to provide a loan facility of $150,000 to Orion
Gold NL.
62
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
DIRECTORS’ DECLARATION
28. SUBSEQUENT EVENTS (continued)
Purchase of shares in Orion Gold NL
On 22 September 2016, Eastern Goldfields purchased 9,100,000 shares in Orion Gold NL at 2.5 cents each for
$227,500.
Purchase of 215 Balcatta Road, Balcatta
On 31 August 2016, the Company and Investmet Limited entered into a contract to purchase 215 Balcatta Road,
Balcatta for $12.1 million. The contract is subject to finance and is due to settle on 25 November 2016. Finance is
being arranged and post completion a refurbishment fit out will be undertaken with a view to the Company moving in
to the premises as its new corporate headquarters in January 2017.
There has not been any other matter or circumstance that has arisen after balance date 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 periods.
29. PARENT ENTITY INFORMATION
(a) Financial Position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Equity/(Deficit)
Contributed equity
Accumulated losses
Reserves
Total equity / (deficit)
(b) Financial performance
Loss for the year
Other comprehensive income
Total comprehensive loss for the year
(c) Guarantees
2016
$
15,195,895
-
15,195,895
11,205,337
-
11,205,337
228,317,835
(232,379,654)
8,052,377
3,990,558
2015
$
147,185
28,430,105
28,577,290
37,874,815
-
37,874,815
168,040,331
(182,630,470)
5,292,614
(9,297,525)
(49,749,183)
23,333
(49,725,850)
(3,534,000)
-
(3,534,000)
Eastern Goldfields and all its wholly owned subsidiaries have entered into a Deed of Cross Guarantee. The effect of
the deed is that Eastern Goldfields has guaranteed to pay any deficiency in the event of winding up of any controlled
entity or if they do not meet their obligations under the terms of loans, leases or other liabilities subject to the
guarantee. The controlled entities have also given a similar guarantee in the event that Eastern Goldfields is wound
up or if it does not meet its obligations under the terms of loans, leases or other liabilities subject to the guarantee.
63
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
DIRECTORS’ DECLARATION
(d) Contingent Liabilities and Commitments
There were no contingent liabilities or commitments identified as at 30 June 2016 (2015: nil).
In accordance with a resolution of the Directors of Eastern Goldfields Limited, I state that:
1. In the opinion of the Directors:
a. The financial statements, notes and the additional disclosures included in the Directors’ report designed as
audited, of the Group are 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 2016 and of its performance for
the year ended on that date.
ii. Complying with Accounting Standards (including the Australian Accounting Interpretations) and
Corporations Regulations 2001.
b. The financial statements and notes also comply with International Financial Reporting Standards (‘IFRS’) as
issued by the International Accounting Standards Board (‘IASB’) as disclosed in Note 2(c).
c. Subject to the matters disclosed in Note 2(b), there are reasonable grounds to believe that the Company will
be able to pay its debts as and when they become due and payable.
d. The remuneration disclosures included in pages 21 to 25 of the Directors’ report (as part of the audited
Remuneration Report), for the year ended 30 June 2016, comply with section 300A of the Corporations Act 2001.
2. This declaration has been made after receiving the declarations required to be made to the Directors in
accordance with section 295A of the Corporations Act 2001 for the financial year ended 30 June 2016.
On behalf of the Board
Michael Fotios
Executive Chairman
Perth, Western Australia
24 October 2016
64
Ernst & Young
11 Mounts Bay Road
Perth WA 6000 Australia
GPO Box M939 Perth WA 6843
Tel: +61 8 9429 2222
Fax: +61 8 9429 2436
ey.com/au
Independent auditor’s report to the members of Eastern Goldfields
Limited
Report on the financial report
We have audited the accompanying financial report of Eastern Goldfields Limited, which comprises the
consolidated statement of financial position as at 30 June 2016, 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, notes comprising a summary of significant
accounting policies and other explanatory information, and the directors' declaration of the consolidated
entity comprising the company and the entities it controlled at the year's end or from time to time during
the financial year.
Directors’ responsibility 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 controls as the directors determine are necessary to enable the preparation of the financial
report that is free from material misstatement, whether due to fraud or error. In Note 2, the directors also
state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that the
financial statements comply with International Financial Reporting Standards.
Auditor’s responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted our
audit in accordance with Australian Auditing Standards. Those standards require that we comply with
relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain
reasonable assurance about whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial report. The procedures selected depend on the auditor's judgment, including the assessment
of the risks of material misstatement of the financial report, whether due to fraud or error. In making
those risk assessments, the auditor considers internal controls relevant to the entity's preparation and fair
presentation of the financial report in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's
internal controls. An audit also includes evaluating the appropriateness of accounting policies used and
the reasonableness of accounting estimates made by the directors, as well as evaluating the overall
presentation of the financial report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Independence
In conducting our audit, we have complied with the independence requirements of the Corporations Act
2001. We have given to the directors of the company a written Auditor’s Independence Declaration, a
copy of which is included in the directors’ report.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
GHM:JT:EGS:009
Basis for qualified opinion
Carrying value of mine properties
Included in the 30 June 2016 mine properties balance is an amount of $3,000,000 relating to the
Davyhurst processing plant, which was under care and maintenance at that date.
A valuation of the Davyhurst processing plant was last undertaken in December 2013 and no further
valuations have been undertaken since that time.
As at the date of our audit, we have been unable to obtain sufficient appropriate audit evidence to
support the recoverability of the Davyhurst processing plant. Consequently, we are unable to determine
whether any adjustment to the carrying value of the Davyhurst processing plant is necessary.
Our audit report on the financial statements of Eastern Goldfields Limited for the year ended 30 June
2015, which forms the basis for the comparative data included in these 30 June 2016 financial
statements, contained a qualification on the carrying value of the Davyhurst processing plant similar to
the above.
Carrying value of the rehabilitation provision
Our audit report on the financial statements of Eastern Goldfields Limited for the year ended 30 June
2015 included a qualification on the carrying value of the rehabilitation provision as follows:
“Included in the 2015 non-current provision balance is an amount of $4,148,100 for the future
rehabilitation obligations for the Davyhurst mine. Management is currently undertaking a detailed review
of the consolidated entity’s future rehabilitation obligations in relation to this mine.
As at the date of our audit, we have been unable to obtain sufficient appropriate audit evidence to support
the carrying value of the rehabilitation provision. Consequently, we are unable to determine whether any
adjustment to the carrying value of the rehabilitation provision is necessary.”
During the financial year ended 30 June 2016, management undertook a detailed review of the
consolidated entity’s future rehabilitation obligations and recognised a provision of $9,379,934. An
amount of $5,231,834 has therefore been recognised as an expense in the current year consolidated
statement of profit or loss and other comprehensive income. As we were unable to determine whether the
opening balance of the rehabilitation provision was accurately stated, we are unable to determine whether
the expense recognised in the current year consolidated statement of profit or loss and other
comprehensive income is appropriate.
Qualified opinion
In our opinion, except for the possible effects of the matters described in the Basis for qualified opinion
paragraphs:
a.
the financial report of Eastern Goldfields Limited is in accordance with the Corporations Act 2001,
including:
i
giving a true and fair view of the consolidated entity's financial position as at 30 June 2016
and of its performance for the year ended on that date
ii complying with Australian Accounting Standards and the Corporations Regulations 2001
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
b.
the financial report also complies with International Financial Reporting Standards as disclosed in
Note 2.
Emphasis of matter
Without further qualification to our conclusion, we draw attention to Note 2 in the financial report which
describes the principal conditions that raise doubt about the consolidated entity’s ability to continue as a
going concern. These conditions indicate the existence of a material uncertainty that may cast significant
doubt about the consolidated entity’s ability to continue as a going concern and therefore, the
consolidated entity may be unable to realise its assets and discharge its liabilities in the normal course of
business.
Report on the remuneration report
We have audited the remuneration report included in the directors' report for the year ended 30 June
2016. 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.
Opinion
In our opinion, the remuneration report of Eastern Goldfields Limited for the year ended 30 June 2016,
complies with section 300A of the Corporations Act 2001.
Ernst & Young
G H Meyerowitz
Partner
Perth
24 October 2016
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
TENEMENT SCHEDULE
TENEMENT
E16/0332
REGISTERED HOLDER
CARNEGIE GOLD PTY LTD
E16/0337
CARNEGIE GOLD PTY LTD
E16/0344
SIBERIA MINING CORPORATION PTY LTD
E16/0347
SIBERIA MINING CORPORATION PTY LTD
E16/0456
SIBERIA MINING CORPORATION PTY LTD
E16/0473
CARNEGIE GOLD PTY LTD
E16/0475
CARNEGIE GOLD PTY LTD
E16/0480
GOLDSTAR RESOURCES (WA) PTY LTD
E16/0484
GOLDSTAR RESOURCES (WA) PTY LTD
E29/0419
BLACK MOUNTAIN GOLD LTD
E29/0640 MT IDA GOLD PTY LTD
E29/0641 MT IDA GOLD PTY LTD
E29/0895 MT IDA GOLD PTY LTD
E29/0922
BLACK MOUNTAIN GOLD LTD
E29/0955
SIBERIA MINING CORPORATION PTY LTD
E29/0964
GOLDSTAR RESOURCES (WA) PTY LTD
E29/0966
BLACK MOUNTAIN GOLD LTD
E30/0333
CARNEGIE GOLD PTY LTD
E30/0334
CARNEGIE GOLD PTY LTD
E30/0335
CARNEGIE GOLD PTY LTD
E30/0336
CARNEGIE GOLD PTY LTD
E30/0338
CARNEGIE GOLD PTY LTD
E30/0449
DELTA RESOURCE MANAGEMENT PTY LTD
E30/0454
CARNEGIE GOLD PTY LTD
L15/0224
SIBERIA MINING CORPORATION PTY LTD
L16/0058
SIBERIA MINING CORPORATION PTY LTD
L16/0062
SIBERIA MINING CORPORATION PTY LTD
L16/0072
CARNEGIE GOLD PTY LTD
L16/0073
CARNEGIE GOLD PTY LTD
L16/0077
IDA GOLD OPERATIONS PTY LTD (SIBERIA)
L16/0103
SIBERIA MINING CORPORATION PTY LTD
L24/0085
SIBERIA MINING CORPORATION PTY LTD
L24/0101
CARNEGIE GOLD PTY LTD
L24/0115
SIBERIA MINING CORPORATION PTY LTD
L24/0123
SIBERIA MINING CORPORATION PTY LTD
L24/0124
SIBERIA MINING CORPORATION PTY LTD
L24/0170
CARNEGIE GOLD PTY LTD
L24/0174
CARNEGIE GOLD PTY LTD
L24/0188
SIBERIA MINING CORPORATION PTY LTD
L24/0189
SIBERIA MINING CORPORATION PTY LTD
L24/0224
SIBERIA MINING CORPORATION PTY LTD
L29/0034
CARNEGIE GOLD PTY LTD
L29/0038
CARNEGIE GOLD PTY LTD
L29/0040
CARNEGIE GOLD PTY LTD
REGISTERED
INTEREST
100/100
APPLICATION
DATE
19-07-2006
GRANT
DATE
28-05-2007
EXPIRY DATE
27-05-2017
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
96/96
96/96
96/96
96/96
100/100
100/100
100/100
100/100
100/100
96/96
96/96
96/96
07-12-2006
09-04-2008
08-04-2018
02-02-2007
29-04-2008
28-04-2018
29-03-2007
12-03-2008
11-03-2018
12-12-2013
11-07-2014
10-07-2019
03-02-2015
05-10-2015
04-10-2020
03-02-2015
05-10-2015
04-10-2020
21-07-2015
02-05-2016
01-05-2021
05-08-2015
26-08-2016
25-08-2021
13-08-1998
06-01-2011
05-01-2018
19-12-2006
24-06-2008
23-06-2018
19-12-2006
24-06-2008
23-06-2018
17-09-2013
07-04-2014
06-04-2019
02-05-2014
02-12-2014
01-12-2019
25-06-2015
13-01-2016
12-01-2021
20-10-2015
05-05-2016
04-05-2021
22-12-2015
06-09-2016
05-09-2021
31-01-2007
02-09-2008
01-09-2018
08-02-2007
21-04-2008
20-04-2018
08-02-2007
19-12-2008
18-12-2018
08-02-2007
02-07-2008
01-07-2018
08-02-2007
20-05-2008
19-05-2018
14-09-2012
02-04-2013
01-04-2018
28-11-2013
10-07-2014
09-07-2019
15-07-1999
10-01-2000
09-01-2021
22-04-1999
13-12-1999
12-12-2020
07-07-1999
13-12-1999
12-12-2020
23-08-2001
13-06-2002
12-06-2023
23-08-2001
13-06-2002
12-06-2023
23-12-2004
28-03-2006
27-03-2027
11-09-2012
06-07-2016
05-07-2037
16-06-1987
27-10-1987
26-10-2017
04-03-1988
29-08-1988
28-08-2018
04-08-1988
25-10-1988
24-10-2018
24-02-1989
01-08-1989
31-07-2019
24-02-1989
01-08-1989
31-07-2019
14-11-1996
14-05-1997
13-05-2017
01-07-1997
22-12-1997
21-12-2017
02-09-2003
04-11-2004
03-11-2025
19-03-2004
01-03-2006
28-02-2027
13-01-2016
07-07-2016
06-07-2037
24-02-1988
07-04-1988
06-04-2018
02-05-1988
11-04-1989
10-04-2019
08-07-1988
06-04-1989
05-04-2019
L29/0042
BLACK MOUNTAIN GOLD LTD
100/100
20-09-1988
22-02-1989
21-02-2019
68
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
TENEMENT SCHEDULE
TENEMENT
L29/0043
REGISTERED HOLDER
BLACK MOUNTAIN GOLD LTD
L29/0044
BLACK MOUNTAIN GOLD LTD
L29/0074 MT IDA GOLD PTY LTD
L29/0109
BLACK MOUNTAIN GOLD LTD
L30/0035
CARNEGIE GOLD PTY LTD
L30/0037
CARNEGIE GOLD PTY LTD
L30/0043
CARNEGIE GOLD PTY LTD
M16/0220
CARNEGIE GOLD PTY LTD
M16/0262
SIBERIA MINING CORPORATION PTY LTD
M16/0263
SIBERIA MINING CORPORATION PTY LTD
M16/0264
SIBERIA MINING CORPORATION PTY LTD
M16/0268
CARNEGIE GOLD PTY LTD
M16/0470
CARNEGIE GOLD PTY LTD
M24/0039
CHARLES ROBERT GARDNER
M24/0051
SIBERIA MINING CORPORATION PTY LTD
M24/0115
SIBERIA MINING CORPORATION PTY LTD
REGISTERED
INTEREST
100/100
APPLICATION
DATE
20-09-1988
GRANT
DATE
22-02-1989
EXPIRY DATE
21-02-2019
100/100
100/100
100/100
96/96
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
96/96
96/96
96/96
20-09-1988
22-02-1989
21-02-2019
14-11-2007
04-09-2008
03-09-2029
20-06-2011
27-12-2012
26-12-2033
01-07-1992
06-11-1992
05-11-2017
06-12-1996
14-05-1997
13-05-2017
21-08-2001
19-03-2002
18-03-2023
22-09-1994
27-03-2001
26-03-2022
10-11-1995
12-03-1999
11-03-2020
10-11-1995
12-03-1999
11-03-2020
10-11-1995
12-03-1999
11-03-2020
18-12-1995
10-08-2001
09-08-2022
17-09-2002
09-12-2003
08-12-2024
29-12-1983
16-01-1985
15-01-2027
28-05-1984
05-10-1984
04-10-2026
17-10-1986
11-06-1987
10-06-2029
M24/0159
SIBERIA MINING CORPORATION PTY LTD
100/100
15-06-1987
09-02-1988
08-02-2030
M24/0208
SIBERIA MINING CORPORATION PTY LTD
M24/0290
SIBERIA MINING CORPORATION PTY LTD
M24/0352
SIBERIA MINING CORPORATION PTY LTD
96/96
96/96
96/96
03-11-1987
18-05-1988
17-05-2030
30-09-1988
15-06-1989
14-06-2031
07-09-1989
13-06-1990
12-06-2032
M24/0376
SIBERIA MINING CORPORATION PTY LTD
100/100
15-06-1990
19-02-1991
18-02-2033
M24/0427
SIBERIA MINING CORPORATION PTY LTD
96/96
20-10-1993
14-12-1993
13-12-2035
M24/0633
SIBERIA MINING CORPORATION PTY LTD
100/100
28-02-1997
20-04-2004
19-04-2025
M24/0754
SIBERIA MINING CORPORATION PTY LTD
M24/0755
SIBERIA MINING CORPORATION PTY LTD
M24/0830
SIBERIA MINING CORPORATION PTY LTD
M24/0845
SIBERIA MINING CORPORATION PTY LTD
M24/0846
SIBERIA MINING CORPORATION PTY LTD
M24/0847
SIBERIA MINING CORPORATION PTY LTD
M24/0848
SIBERIA MINING CORPORATION PTY LTD
M29/0002 MT IDA GOLD PTY LTD
M29/0014
BLACK MOUNTAIN GOLD LTD
M29/0088
BLACK MOUNTAIN GOLD LTD
M29/0153
BLACK MOUNTAIN GOLD LTD
M29/0154
BLACK MOUNTAIN GOLD LTD
96/96
96/96
100/100
100/100
100/100
100/100
100/100
100/100
96/96
96/96
100/100
100/100
06-10-1998
11-01-1999
10-01-2020
16-10-1998
28-11-2007
27-11-2028
27-03-2000
30-08-2012
29-08-2033
22-09-2000
25-03-2004
24-03-2025
22-09-2000
25-03-2004
24-03-2025
22-09-2000
25-03-2004
24-03-2025
22-09-2000
25-03-2004
24-03-2025
16-04-1982
22-12-1982
21-12-2024
06-10-1983
14-05-1984
13-05-2026
27-05-1988
28-07-1988
27-07-2030
25-10-1991
18-11-1992
17-11-2034
25-10-1991
18-11-1992
17-11-2034
M29/0165 MT IDA GOLD PTY LTD & STUART LESLIE HOOPER
95/100 5/100
20-06-1994
21-12-1994
20-12-2036
M29/0184
BLACK MOUNTAIN GOLD LTD
M29/0212
BLACK MOUNTAIN GOLD LTD
M29/0410 WAYNE CRAIG VAN BLITTERSWYK
M29/0420
BLACK MOUNTAIN GOLD LTD
M29/0422 MT IDA GOLD PTY LTD
M30/0001
CARNEGIE GOLD PTY LTD
M30/0005
CARNEGIE GOLD PTY LTD
M30/0007
CARNEGIE GOLD PTY LTD
M30/0016
CARNEGIE GOLD PTY LTD
100/100
100/100
100/100
100/100
100/100
96/96
96/96
96/96
21-12-1995
13-03-1997
12-03-2018
16-12-1996
27-02-2001
26-02-2022
02-08-2010
02-10-2012
01-10-2033
27-01-2012
14-11-2012
13-11-2033
04-04-2013
22-11-2013
21-11-2034
07-09-1982
09-05-1984
08-05-2026
20-12-1983
22-10-1985
21-10-2027
22-12-1983
27-06-1984
26-06-2026
100/100
29-05-1985
16-12-1986
15-12-2028
69
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
TENEMENT SCHEDULE
TENEMENT
M30/0021
REGISTERED HOLDER
CARNEGIE GOLD PTY LTD
REGISTERED
INTEREST
100/100
APPLICATION
DATE
14-08-1985
GRANT
DATE
17-03-1986
EXPIRY DATE
16-03-2028
M30/0034
CARNEGIE GOLD PTY LTD
M30/0039
CARNEGIE GOLD PTY LTD
M30/0042
CARNEGIE GOLD PTY LTD
M30/0043
CARNEGIE GOLD PTY LTD
M30/0044
CARNEGIE GOLD PTY LTD
M30/0048
CARNEGIE GOLD PTY LTD
M30/0059
CARNEGIE GOLD PTY LTD
M30/0060
CARNEGIE GOLD PTY LTD
M30/0063
CARNEGIE GOLD PTY LTD
M30/0072
CARNEGIE GOLD PTY LTD
M30/0073
CARNEGIE GOLD PTY LTD
M30/0074
CARNEGIE GOLD PTY LTD
M30/0075
CARNEGIE GOLD PTY LTD
M30/0080
CARNEGIE GOLD PTY LTD
M30/0084
CARNEGIE GOLD PTY LTD
M30/0097
CARNEGIE GOLD PTY LTD
M30/0098
CARNEGIE GOLD PTY LTD
M30/0100
CARNEGIE GOLD PTY LTD
M30/0102
CARNEGIE GOLD PTY LTD
M30/0103
CARNEGIE GOLD PTY LTD
M30/0106
CARNEGIE GOLD PTY LTD
M30/0107
CARNEGIE GOLD PTY LTD
M30/0108
CARNEGIE GOLD PTY LTD
M30/0109
CARNEGIE GOLD PTY LTD
M30/0111
CARNEGIE GOLD PTY LTD
M30/0122
CARNEGIE GOLD PTY LTD
M30/0123
CARNEGIE GOLD PTY LTD
M30/0126
CARNEGIE GOLD PTY LTD
M30/0127
CARNEGIE GOLD PTY LTD
M30/0129
CARNEGIE GOLD PTY LTD
M30/0131
CARNEGIE GOLD PTY LTD
M30/0132
CARNEGIE GOLD PTY LTD
M30/0133
CARNEGIE GOLD PTY LTD
M30/0135
CARNEGIE GOLD PTY LTD
M30/0137
CARNEGIE GOLD PTY LTD
M30/0148
CARNEGIE GOLD PTY LTD
M30/0150
CARNEGIE GOLD PTY LTD
M30/0157
CARNEGIE GOLD PTY LTD
M30/0159
CARNEGIE GOLD PTY LTD
M30/0178
CARNEGIE GOLD PTY LTD
M30/0182
CARNEGIE GOLD PTY LTD
M30/0187
CARNEGIE GOLD PTY LTD
P16/2514
CARNEGIE GOLD PTY LTD
P16/2774
SIBERIA MINING CORPORATION PTY LTD
70
100/100
100/100
96/96
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
96/96
10-11-1986
12-06-1987
11-06-2029
18-12-1986
18-05-1988
17-05-2030
25-02-1987
02-12-1987
01-12-2029
17-03-1987
03-11-1987
02-11-2029
08-04-1987
30-10-1987
29-10-2029
18-05-1987
18-05-1988
17-05-2030
27-08-1987
29-03-1988
28-03-2030
28-08-1987
22-01-1988
21-01-2030
12-10-1987
22-04-1988
21-04-2030
17-03-1988
04-11-1988
03-11-2030
17-03-1988
04-11-1988
03-11-2030
17-03-1988
04-11-1988
03-11-2030
29-03-1988
08-09-1988
07-09-2030
19-07-1988
04-11-1988
03-11-2030
30-08-1988
12-01-1989
11-01-2031
24-04-1990
03-08-1990
02-08-2032
29-06-1990
15-11-1990
14-11-2032
15-04-1991
01-08-1991
31-07-2033
07-01-1992
11-12-1992
10-12-2034
07-01-1992
27-01-1993
26-01-2035
17-05-1993
25-10-1993
24-10-2035
17-05-1993
25-10-1993
24-10-2035
14-06-1993
12-10-1993
11-10-2035
22-07-1993
01-11-1993
31-10-2035
22-09-1993
22-02-1994
21-02-2036
02-12-1994
29-09-2004
28-09-2025
02-12-1994
29-09-2004
28-09-2025
27-11-1995
13-10-2009
12-10-2030
08-12-1995
12-06-2007
11-06-2028
100/100
20-05-1996
28-11-2007
27-11-2028
96/96
96/96
100/100
100/100
100/100
100/100
100/100
96/96
100/100
100/100
100/100
100/100
100/100
100/100
21-10-1996
04-12-1996
03-12-2017
21-10-1996
04-12-1996
03-12-2017
06-12-1996
09-07-1999
08-07-2020
26-03-1997
06-11-2007
05-11-2028
08-04-1997
18-03-1998
17-03-2019
27-01-1999
17-11-1999
16-11-2020
31-01-2000
04-04-2001
03-04-2022
26-04-2000
19-12-2002
18-12-2023
04-10-2000
26-11-2001
25-11-2022
05-02-2001
18-12-2002
17-12-2023
09-04-2001
27-06-2003
26-06-2024
24-08-2001
02-10-2002
01-10-2023
08-02-2007
19-12-2008
18-12-2016
29-06-2012
17-01-2013
16-01-2017
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
TENEMENT SCHEDULE
TENEMENT
P16/2775
REGISTERED HOLDER
SIBERIA MINING CORPORATION PTY LTD
P16/2921
GOLDSTAR RESOURCES (WA) PTY LTD
P16/2922
GOLDSTAR RESOURCES (WA) PTY LTD
P24/4182
SIBERIA MINING CORPORATION PTY LTD
P24/4750
SIBERIA MINING CORPORATION PTY LTD
P24/4751
SIBERIA MINING CORPORATION PTY LTD
P24/4752
SIBERIA MINING CORPORATION PTY LTD
P24/4753
SIBERIA MINING CORPORATION PTY LTD
P24/4754
SIBERIA MINING CORPORATION PTY LTD
P29/2070
BLACK MOUNTAIN GOLD LTD
P29/2073
BLACK MOUNTAIN GOLD LTD
P29/2153
BLACK MOUNTAIN GOLD LTD
P29/2154
BLACK MOUNTAIN GOLD LTD
P29/2155
BLACK MOUNTAIN GOLD LTD
P29/2156
BLACK MOUNTAIN GOLD LTD
P29/2251
BLACK MOUNTAIN GOLD LTD
P29/2252
BLACK MOUNTAIN GOLD LTD
P29/2253
BLACK MOUNTAIN GOLD LTD
P29/2254
BLACK MOUNTAIN GOLD LTD
P29/2268
BLACK MOUNTAIN GOLD LTD
P29/2269
BLACK MOUNTAIN GOLD LTD
P29/2286
BLACK MOUNTAIN GOLD LTD
P29/2287
BLACK MOUNTAIN GOLD LTD
P29/2288
BLACK MOUNTAIN GOLD LTD
P29/2289
BLACK MOUNTAIN GOLD LTD
P29/2290
BLACK MOUNTAIN GOLD LTD
P29/2291 WAYNE CRAIG VAN BLITTERSWYK
P29/2292 WAYNE CRAIG VAN BLITTERSWYK
P29/2293 WAYNE CRAIG VAN BLITTERSWYK
P29/2294 WAYNE CRAIG VAN BLITTERSWYK
P29/2295 WAYNE CRAIG VAN BLITTERSWYK
P29/2296 WAYNE CRAIG VAN BLITTERSWYK
P29/2297 WAYNE CRAIG VAN BLITTERSWYK
P29/2298 WAYNE CRAIG VAN BLITTERSWYK
P29/2299 WAYNE CRAIG VAN BLITTERSWYK
P29/2300 WAYNE CRAIG VAN BLITTERSWYK
P29/2301 WAYNE CRAIG VAN BLITTERSWYK
P29/2302 WAYNE CRAIG VAN BLITTERSWYK
P29/2303 WAYNE CRAIG VAN BLITTERSWYK
P29/2304 WAYNE CRAIG VAN BLITTERSWYK
P29/2305 WAYNE CRAIG VAN BLITTERSWYK
P29/2307
BLACK MOUNTAIN GOLD LTD
P29/2308
BLACK MOUNTAIN GOLD LTD
P29/2310 MT IDA GOLD PTY LTD
P29/2311 MT IDA GOLD PTY LTD
REGISTERED
INTEREST
100/100
APPLICATION
DATE
29-06-2012
GRANT
DATE
17-01-2013
EXPIRY DATE
16-01-2017
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
23-10-2015
06-05-2016
05-05-2020
23-10-2015
06-05-2016
05-05-2020
02-02-2007
20-02-2008
19-02-2016
12-06-2013
20-01-2014
19-01-2018
12-06-2013
20-01-2014
19-01-2018
15-07-2013
11-02-2014
10-02-2018
15-07-2013
11-02-2014
10-02-2018
15-07-2013
11-02-2014
10-02-2018
29-11-2007
19-12-2008
18-12-2016
04-12-2007
19-12-2008
18-12-2016
22-10-2009
22-07-2010
22-07-2018
22-10-2009
22-07-2010
22-07-2018
22-10-2009
22-07-2010
22-07-2018
22-10-2009
02-08-2010
01-08-2018
30-05-2012
14-02-2013
13-02-2017
30-05-2012
14-02-2013
13-02-2017
30-05-2012
14-02-2013
13-02-2017
30-05-2012
14-02-2013
13-02-2017
11-10-2012
17-06-2014
16-06-2018
11-10-2012
17-06-2014
16-06-2018
14-11-2012
14-08-2013
13-08-2017
14-11-2012
14-08-2013
13-08-2017
14-11-2012
14-08-2013
13-08-2017
14-11-2012
14-08-2013
13-08-2017
14-11-2012
14-08-2013
13-08-2017
23-11-2012
26-07-2013
25-07-2017
23-11-2012
27-06-2013
26-06-2017
23-11-2012
27-06-2013
26-06-2017
23-11-2012
27-06-2013
26-06-2017
23-11-2012
27-06-2013
26-06-2017
23-11-2012
27-06-2013
26-06-2017
23-11-2012
01-04-2014
31-03-2018
23-11-2012
26-07-2013
25-07-2017
23-11-2012
27-06-2013
26-06-2017
23-11-2012
27-06-2013
26-06-2017
23-11-2012
27-06-2013
26-06-2017
23-11-2012
27-06-2013
26-06-2017
13-12-2012
25-07-2013
24-07-2017
13-12-2012
25-07-2013
24-07-2017
13-12-2012
25-07-2013
24-07-2017
17-01-2013
28-08-2013
27-08-2017
17-01-2013
28-08-2013
27-08-2017
18-03-2013
07-10-2013
06-10-2017
18-03-2013
07-10-2013
06-10-2017
71
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
TENEMENT SCHEDULE
TENEMENT
P29/2312 MT IDA GOLD PTY LTD
REGISTERED HOLDER
REGISTERED
INTEREST
100/100
APPLICATION
DATE
18-03-2013
GRANT
DATE
07-10-2013
EXPIRY DATE
06-10-2017
P29/2313 MT IDA GOLD PTY LTD
P29/2314 MT IDA GOLD PTY LTD
P29/2315 MT IDA GOLD PTY LTD
P29/2316 MT IDA GOLD PTY LTD
P29/2317 MT IDA GOLD PTY LTD
P29/2318 MT IDA GOLD PTY LTD
P29/2319 MT IDA GOLD PTY LTD
P29/2320 MT IDA GOLD PTY LTD
P29/2321 MT IDA GOLD PTY LTD
P29/2322 MT IDA GOLD PTY LTD
P29/2323 MT IDA GOLD PTY LTD
P29/2324 MT IDA GOLD PTY LTD
P29/2325 MT IDA GOLD PTY LTD
P29/2326 MT IDA GOLD PTY LTD
P29/2327 MT IDA GOLD PTY LTD
P29/2328 MT IDA GOLD PTY LTD
P29/2344
BLACK MOUNTAIN GOLD LTD
P29/2345
BLACK MOUNTAIN GOLD LTD
P30/1042
CARNEGIE GOLD PTY LTD
P30/1043
CARNEGIE GOLD PTY LTD
P30/1060
CARNEGIE GOLD PTY LTD
P30/1074
CARNEGIE GOLD PTY LTD
P30/1100 WAYNE CRAIG VAN BLITTERSWYK
P30/1101 WAYNE CRAIG VAN BLITTERSWYK
P30/1102 WAYNE CRAIG VAN BLITTERSWYK
P30/1103 WAYNE CRAIG VAN BLITTERSWYK
P30/1104 WAYNE CRAIG VAN BLITTERSWYK
P30/1105 WAYNE CRAIG VAN BLITTERSWYK
P30/1107
CARNEGIE GOLD PTY LTD
P30/1108
CARNEGIE GOLD PTY LTD
P30/1109
CARNEGIE GOLD PTY LTD
P30/1110
CARNEGIE GOLD PTY LTD
P30/1111
CARNEGIE GOLD PTY LTD
P30/1112
CARNEGIE GOLD PTY LTD
P30/1113
CARNEGIE GOLD PTY LTD
P30/1114
CARNEGIE GOLD PTY LTD
P30/1115
CARNEGIE GOLD PTY LTD
P30/1116
CARNEGIE GOLD PTY LTD
P30/1117
CARNEGIE GOLD PTY LTD
P30/1118
CARNEGIE GOLD PTY LTD
P30/1119
CARNEGIE GOLD PTY LTD
P30/1120
CARNEGIE GOLD PTY LTD
P30/1121
CARNEGIE GOLD PTY LTD
P30/1122
CARNEGIE GOLD PTY LTD
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
18-03-2013
07-10-2013
06-10-2017
18-03-2013
07-10-2013
06-10-2017
18-03-2013
07-10-2013
06-10-2017
18-03-2013
07-10-2013
06-10-2017
18-03-2013
07-10-2013
06-10-2017
18-03-2013
07-10-2013
06-10-2017
27-03-2013
04-11-2013
03-11-2017
27-03-2013
04-11-2013
03-11-2017
27-03-2013
04-11-2013
03-11-2017
27-03-2013
04-11-2013
03-11-2017
27-03-2013
05-11-2013
04-11-2017
27-03-2013
01-11-2013
31-10-2017
27-03-2013
01-11-2013
31-10-2017
27-03-2013
04-11-2013
03-11-2017
27-03-2013
04-11-2013
03-11-2017
28-03-2013
01-11-2013
31-10-2017
28-03-2014
17-11-2014
16-11-2018
28-03-2014
17-11-2014
16-11-2018
08-02-2007
01-04-2008
DGA ML APPL
08-02-2007
01-04-2008
DGA ML APPL
08-02-2007
21-04-2008
20-04-2016
22-10-2007
06-01-2010
05-01-2018
26-11-2012
23-02-2015
22-02-2019
26-11-2012
25-07-2013
24-07-2017
26-11-2012
23-02-2015
22-02-2019
26-11-2012
23-02-2015
22-02-2019
26-11-2012
25-07-2013
24-07-2017
26-11-2012
25-07-2013
24-07-2017
08-04-2013
04-12-2013
03-12-2017
08-04-2013
04-12-2013
03-12-2017
08-04-2013
04-12-2013
03-12-2017
18-04-2013
04-12-2013
03-12-2017
29-04-2013
04-12-2013
03-12-2017
29-04-2013
04-12-2013
03-12-2017
29-04-2013
04-12-2013
03-12-2017
29-04-2013
04-12-2013
03-12-2017
29-04-2013
04-12-2013
03-12-2017
29-04-2013
04-12-2013
03-12-2017
29-04-2013
04-12-2013
03-12-2017
29-04-2013
04-12-2013
03-12-2017
29-04-2013
04-12-2013
03-12-2017
29-04-2013
04-12-2013
03-12-2017
29-04-2013
04-12-2013
03-12-2017
29-04-2013
04-12-2013
03-12-2017
72
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
ANNUAL MINERAL RESOURCE STATEMENT
In accordance with ASX Listing Rule 5.21, the Company reviews and reports its Mineral Resources at least annually.
The date of reporting is 30 June each year, to coincide with the Company’s end of financial year balance date. If there
are any material changes to its Mineral Resources over the course of the year, the Company is required to promptly
report these changes. The Company has previously reported the following Mineral Resources pursuant to the
‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code) 2004
Edition:
JORC
Category
Inferred
Indicated
Measured
Total
Tonnes (‘000) Au (g/t)
8,759
9,962
236
18,957
2.6
2.4
2.8
2.5
The Mineral Resource was first reported to the ASX on June 30 2008 and subsequently in the Company’s Prospectus
dated 11 July 2014. There has been no change to the Resource Statement reported in the Company’s Prospectus to
the review date of 30 June 2016, or to the date of this Annual Report.
In completing the annual review for the year ended 30 June 2016, the historical resource factors were reviewed and
found to be relevant and current. No project area has been converted to an active operation yet and hence no resource
depletion has occurred for the review period.
THE MINERAL RESOURCE STATEMENT
PROJECT
GOLDEN EAGLE
LIGHTS OF ISRAEL UNDERGROUND
MAKAI SHOOT
WAIHI
Central Davyhurst Subtotal
LADY GLADYS
RIVERINA AREA
FOREHAND
SILVER TONGUE
Mulline Subtotal
SAND KING
MISSOURI
PALMERSTON / CAMPERDOWN
BERWICK MOREING
BLACK RABBIT
THIEL WELL
Siberia Subtotal
CALLION
FEDERAL FLAG
SALMON GUMS
WALHALLA
WALHALLA NORTH
MT BANJO
MACEDON
IGUANA
LIZARD
Davyhurst Regional Subtotal
Davyhurst Total
BALDOCK
BALDOCK STH
METEOR
WHINNEN
Mount Ida subTotal
Combined Total
MEASURED
INDICATED
INFERRED
('000t)
0
0
0
0
0
0
0
0
0
0
0
98
0
0
0
0
98
0
32
0
0
0
0
0
0
106
138
236
0
0
0
0
0
236
(g/t Au)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.7
0.0
0.0
0.0
0.0
1.7
0.0
2.0
0.0
0.0
0.0
0.0
0.0
0.0
4.0
3.5
2.8
0.0
0
0.0
0
0.0
2.8
('000t)
345
74
1,985
805
3,200
1,858
941
386
155
3,300
516
831
118
0
0
0
1,500
86
112
199
448
94
109
0
690
75
1,800
9,800
136
0
0
0
140
9,900
73
(g/t Au)
2.5
4.3
2.0
2.4
2.2
1.9
2.4
1.7
2.7
2.1
3.1
2.0
2.3
0.0
0.0
0.0
2.4
2.8
1.8
2.8
1.8
2.4
2.3
0.0
2.1
3.7
2.2
2.2
18.6
0
0.0
0
18.6
2.4
('000t)
311
180
153
109
800
190
1,644
436
19
2,300
935
909
174
50
434
18
2,500
83
238
108
216
13
126
186
2,032
13
3,000
8,600
0
0
143
39
180
8,800
(g/t Au)
2.6
4.2
1.7
2.4
2.6
2.4
2.5
1.9
1.3
2.4
3.0
2.2
2.4
2.3
3.5
6.0
2.8
2.3
2.5
2.9
1.4
3.0
1.4
1.8
2.0
2.8
2.0
2.4
0.0
0
9.3
13.3
10.2
2.5
TOTAL MATERIAL
(g/t Au)
2.5
4.2
2.0
2.4
2.3
1.9
2.5
1.8
2.5
2.2
3.0
2.1
2.4
2.3
3.5
6.0
2.6
2.6
2.3
2.8
1.7
2.5
1.8
1.8
2.0
3.8
2.1
2.3
18.6
0
9.3
13.3
13.8
2.5
('000oz.)
54
35
136
71
300
128
205
48
14
390
142
123
22
4
49
3
340
14
28
28
36
9
14
11
177
24
340
1,370
81
0
43
17
140
1,510
('000t)
656
254
2,138
914
4,000
2,048
2,585
822
174
5,600
1,451
1,838
292
50
434
18
4,100
169
382
307
664
107
235
186
2,722
194
5,000
18,700
136
0
143
39
320
19,000
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
ANNUAL MINERAL RESOURCE STATEMENT
Material Changes and Resource Statement Comparison
There have been no material changes to the Mineral Resource during the review period from 1 July 2015 to 30 June
2016, and to and including the date of this report.
Governance Arrangements and Internal Controls
Eastern Goldfields has ensured that the Mineral Resources quoted are subject to good governance arrangements and
internal controls. The Mineral Resources reported have been generated by internal Company geologists, who are
experienced in best practice in modelling and estimation methods. The competent person has also undertaken reviews
of the quality and suitability of the underlying information used to generate the resource estimation. In addition, Eastern
Goldfields management carry out regular reviews and audits of internal processes and external contractors that have
been engaged by the Company.
Competent Person Statement
The information in this presentation that relates to Mineral Resources, Exploration Results and Exploration Targets is
based on, and fairly represents, information and supporting documentation compiled by or under the supervision of Mr
Michael Thomson, a Competent Person who is a member of the Australasian Institute of Mining and Metallurgy, a
‘Recognised Professional Organisation’ (‘RPO’) included in a list that is posted on the ASX website from time to time.
Mr Thomson has sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 and
2012 Editions of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.
Eastern Goldfields confirms that it is not aware of any new information or data that materially affects the information
included in the original market announcement and, in the case of estimates of Mineral Resources, all material
assumptions and technical parameters underpinning the estimates in the initial announcement continue to apply and
have not materially changed. Eastern Goldfields confirms that the form and context in which the Competent Person’s
findings are presented have not been materially modified from the original market announcement. This information was
prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code
2012 on the basis that the information has not materially changed since it was last reported. Mr Thomson consents to
the form and context in which the Mineral Resources, Exploration Results and Exploration Target appears and the
content of this Annual Mineral Resource Statement as a whole.
The Exploration Targets are based upon a comprehensive geological and mineralisation review conducted by Eastern
Goldfields. This modelling utilised a combination of exploration drilling data, underground sampling along with detailed
geologic observations. A high proportion of the LOI deposit was drilled with diamond core and as such there has been
significant data available to compile geologic models and justify the projection of mineralisation down plunge.
Historical survey, geology and assay records reviewed, validated and were utilised to create a 3-dimensional geological
and mineralisation model. RC drill diameter was 5 ½ inch and diamond core size was NQ. RC drill sample were collected
at 1m intervals and diamond core was cut to geological intervals. Assay methods of drill hole samples was by aqua
regia or fire assay using accredited laboratories.
The grades of these Exploration Targets has been assigned by detailed assessment of previous production from the
LOI and Great Ophia Deposits along with detailed statistical modelling ( ID2 and Ordinary Kriging) of sample grades
from within the mineralised systems. In areas where there is little or no existing data the grade has been derived from
the geological investigations into continuity of existing mineralisation and geology (projecting down plunge) and are
conceptual in nature with confirmatory RC and DD drilling required to validate these targets which is scheduled for
completion in 2016. Samples will be submitted to accredited laboratories for gold assay (fire assay) with a full suite of
QAQC samples (blanks, standards and field duplicates).
Planned Exploration work:
In the short term (2016) Eastern Goldfields plans to drill RC and diamond holes to evaluate the geology, grade and
width of the target. Drilling will target remnant pillars and areas below current mining depths. Samples will be submitted
to accredited laboratories for gold assay with a full suite of QAQC samples (blanks, standards and field duplicates). If
this drill program is deemed successful a geological and resource model will be produced. The resource model will be
classified as inferred/indicated as deemed appropriate.
74
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
ASX ADDITIONAL INFORMATION
Additional information required by the Australian Securities Exchange Listing Rules and not disclosed elsewhere in this
report is set out below, current as at 14 September 2016:
Substantial shareholders
The number of shares held by substantial shareholders and their associates are set out below:
Shareholder
Number of ordinary
shares
% of issue capital
Wyllie Group Pty Ltd1
Mr Michael Fotios + his controlled entities Michael
Fotios Family A/C, Investmet Limited, Delta Resource
Management, Whitestone Minerals Limited2
Mr Hendricus Indrisie + controlled entity Perth Select
Seafoods Pty Ltd3
1. As provided to the Company on 15 June 2016.
2. As provided to the Company on 9 June 2016.
3. As provided to the Company on 3 June 2016.
27,270,150
191,488,723
26,000,000
5.57
39.77
5.31
Voting Rights
Each shareholder is entitled to receive notice of and attend and vote at general meetings of the Company. At a general
meeting every shareholder present in person or by proxy, representative or attorney will have one vote on a show of
hands and on a poll, one vote for each share held.
Distribution of equity security holders
Ordinary Shares
Category
1-1,000
1,001-5,000
5,001-10,000
10,001-100,000
100,001-9,999,999,999
Number of Holders
2,935
1,340
261
430
184
5,150
Shares
1,237,609
3,091,908
2,045,133
16,459,462
466,763,707
489,597,819
Unlisted Options exercisable at $0.168 each on or before 8 March 2018
Category
1-1,000
1,001-5,000
5,001-10,000
10,001-100,000
100,001-9,999,999,999
Number of Holders
Options
-
-
-
3
31
34
-
-
-
200,000
23,900,000
24,100,000
75
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
ASX ADDITIONAL INFORMATION
Distribution of equity security holders (continued)
Unlisted Options exercisable at $0.189 each on or before 8 March 2020
Category
1-1,000
1,001-5,000
5,001-10,000
10,001-100,000
100,001-9,999,999,999
On market buy-back
There is not currently any on market buyback.
Quoted Securities on issue
Category
Ordinary Shares
Escrowed (indefinitely)
Number of Holders
Options
-
-
-
250,000
23,850,000
24,100,000
-
-
-
4
30
34
Number
489,531,151
66,668
489,597,819
Unmarketable parcels
There were 3,148 holders of less than a marketable parcel of ordinary shares, which as at 14 September 2016 was
1,334 shares based on a price of $0.375 per share.
Corporate Governance Statement
The Company’s Corporate Governance Statement for the 2016 financial year can be accessed at:
http://easterngoldfields.com.au/corporate-governance-2/
76
EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES
FOR THE YEAR ENDED 30 JUNE 2016
ASX ADDITIONAL INFORMATION
Twenty largest shareholders as at 14 September 2016
Rank
Name
Number of Shares
% Interest
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Investmet Limited
Delta Resource Management Pty Limited
HSBC Custody Nominees (Australia) Limited
Wyllie Group Pty Ltd
Perth Select Seafoods Pty Ltd
JP Morgan Nominees Australia Limited
Mr Michael George Fotios
National Nominees Limited
UBS Nominees Pty Ltd
Tarney Holdings Pty Ltd
HSBC Custody Nominees (Australia) Limited – GSCO ECA
Morgan Stanley Australia Securities (Nominee) Pty Ltd
Lido Trading Limited
Southern Cross Capital Pty Ltd
Whitestone Minerals Pty Limited
Mr Donald Jeffrey Smith + Mrs Patty Susan Smith
Botsis Holdings Pty Ltd
Citicorp Nominees Pty Ltd
MGMC Pty Ltd
106,438,370
57,691,527
29,430,260
27,270,150
25,000,000
23,167,278
19,986,487
15,121,979
11,193,245
8,327,015
8,314,605
7,052,806
6,666,667
6,419,751
6,000,000
5,700,000
5,000,000
4,763,893
4,372,339
21.74
11.78
6.01
5.57
5.11
4.73
3.47
3.09
2.29
1.70
1.70
1.44
1.36
1.31
1.23
1.16
1.02
0.97
0.89
Mr Philip Colin Hammond + Mrs Betty Jeanette Moore
4,133,333
0.84
77