POTASH WEST NL
A.C.N. 147 346 334
Annual Report
For the year ended
30 June 2016
For personal use only
Potash West NL
A.C.N. 147 346 334
Contents to Financial Report
Corporate Directory
Chairman’s Letter
Directors’ Report
Auditor’s Independence Declaration
Corporate Governance Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
Tenement Register
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Potash West NL
A.C.N. 147 346 334
Corporate directory
Directors:
Adrian Griffin
Patrick McManus
Chew Wai Chuen
Natalia Streltsova
Company Secretary:
Amanda Wilton-Heald
Auditor:
Ernst & Young
Ernst & Young Building
11 Mounts Bay Road
Perth WA 6000 AUSTRALIA
Telephone (+61 8) 9429 2222
Facsimile (+61 8) 9429 2436
Share Registry:
Advanced Share Registry
160 Stirling Highway
Nedlands WA 6009 AUSTRALIA
Telephone (+61 8) 9389 8033
Facsimile (+61 8) 9262 3723
Registered and Principal Office
Level 1
675 Murray Street
West Perth WA 6005
Telephone (+61 8) 9479 5386
Facsimile (+61 8) 9475 0847
Website www.potashwest.com.au
Email info@potashwest.com.au
Stock Exchange Listing
Potash West NL shares are listed on the Australian Securities Exchange (ASX code: PWN), OTC Pink
(OTC Pink code: PWNNY) and Frankfurt Stock Exchange (Ticker: A1JH27).
Solicitors
Price Sierakowski
Level 24, St Martin’s Tower
Perth WA 6000 AUSTRALIA
Telephone (+61 8) 6211 5000
Facsimile (+61 8) 6211 5055
Bankers
National Australia Bank
Ground Floor
100 St Georges Terrace
Perth WA 6000 AUSTRALIA
Telephone: (+61 8) 9441 9313
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CHAIRMAN’S LETTER
Dear Shareholder
Potash West is a fertilizer developer. It distinguishes itself from its peers by controlling a vast deposit of
greensand capable of supplying phosphates and potash to nearby established and emerging markets for
many decades. Significantly its focus on the greensand deposits of the Dandaragan Trough provides not
only access to phosphate, but also potassium which can be recovered as sulphate of potash. The
importance of this should never be underestimated, as markets for sulphate of potash has remained strong
even during recent years’ decline in the broader potash market. This situation may well underpin the long-
term fortunes of our projects. Potash West remains the only company to successfully demonstrate a
commercial means of recovering sulphate of potash from greensands.
The world population is forecast to grow between 30 and 50% in the next 35 years, reducing the arable
land per person by approximately 40%. Add to that improving diets in the developing world and it is
inevitable that more food will be required, from less area. Improvements in food production and the food
supply chain are imperative to reduce malnutrition and maintain quality of life. Fertilisers are one of the
most cost-effective methods of achieving this. Potash West is fortunate in controlling one of the world’s
largest known greensand deposits which can supply two of the three critical macrofertilisers, phosphorous
and potassium. The Dandaragan Trough, in Western Australia, is capable of meeting the potash and
phosphate requirements of our region for many decades.
2016 has been a year of consolidation of our endeavours in the Dandaragan Trough, located only 150km
north of Perth (WA) and in close proximity to one of Australia’s largest fertilizer consumers’ the Western
Australian Wheatbelt. Resource development has focussed on the Dinner Hill area, in the north-west
sector of the Trough. In particular the phosphate potential of Dinner Hill has been evaluated, as it offers the
opportunity of advancing the project to a cash generating position with the lowest possible capital exposure,
through the production of single superphosphate. This option has minimal technical risk as the processing
methods are well established on a global basis. The project location offers an unsurpassable competitive
advantage as Western Australia currently imports all of its phosphate requirements, our regional
neighbours are also net importers.
Phosphate production is an effective initial operation that will underpin the development of a potash
processing facility, using the K-Max process to exploit the very large tonneages of glauconite (potassium
mica), present within the extensive greensands of the Dandaragan Trough. The potassium can be
recovered as sulphate of potash (SOP), which has not faced the weaker market conditions of the more
commonly traded potassium chloride (MOP).
To minimise the dilution of shareholders with the development of the first mine in the Dandaragan Trough,
to be located at Dinner Hill, we are investigating the possibility of forming a development Joint Venture. To
that end we have established a working relationship with FTI Consulting, an international business
consulting firm, with a large agricultural division, well placed to give Potash West the global exposure
required to maximize the chance of a successful outcome.
Potash West holds a strategic position in a conventional potash project through its 55% holding in East
Exploration Pty Ltd, which owns the South Harz project in Central Germany. Divestment, by way of an IPO
listing on the ASX is in preparation and Potash West shareholders will have a priority entitlement. The IPO
will provide Potash West with a significant interest (+25%) and should deliver sufficient funding to establish
a JORC-compliant resource within an area which has extensive historic drilling demonstrating widespread
potash occurences.The South Harz area has been a prolific potash producer for over 100 years, and offers
exceptional opportunities to identify potential mining projects.
The proprietary K-Max technology Potash West developed to recover potash from glauconite has evolved
extensively over time, to the point that certain aspects of the process have been successfully applied to
recovering lithium from mica. From this interest Potash West has emerged with 97 million shares in an
ASX listed company, Platypus Minerals, that is now focussed on the Lithium exploration and development
sector. This is an excellent outcome for our shareholders.
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CHAIRMAN’S LETTER(continued)
Fertiliser markets have generally weakened in the last year. The bulk potash market, which is MOP,
produced mainly in Canada and Eastern Europe, has remained weak with supply exceeding demand,
several operations have been mothballed or closed. However the SOP market has remained strong, with
the premium for SOP, over MOP, increasing from ~ 30% to 70 to 80%. SOP is a premium product, used for
crops that are chloride intolerant, such as many vegetables and Potash West’s ability to recover SOP from
greensand sets it apart from all of its competitors.
the phosphate market
Similarly,
its
resource/supply base, which is dominated by a handful of North African nations in which political
intervention remains a risk.
is characterised by structural weaknesses within much of
Current market conditions continue with subdued investment in exploration and development companies
worldwide. It is pleasing to see a level of renewed interest in this sector, in the last six months. Several
years of under-investment in exploration has led to a situation where there is a shortage of good projects.
As always, the cyclical nature of business will see a renewed appetite for exploration and development risk,
in time. Potash West is well placed to take advantage of that, and to achieve our goal of providing
economic fertiliser products to meet both Australian and Asian demand.
Finally, thanks to all Potash West shareholders for their support over the last year, and to staff for helping
the company achieve its objectives in such a difficult economic climate.
Adrian Griffin
Chairman
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Directors’ Report
Directors
The names and details of the Company’s directors in office during the financial year and until the date of
this report are set out below, directors were in office for the entire year unless otherwise stated.
Adrian Griffin ( Non-executive Chairman)
Patrick McManus (Managing Director)
Chew Wai Chuen (Non-executive Director)
Natalia Streltsova (Non-executive Director)
Names, qualifications, experience and special responsibilities
Adrian Griffin Non-Executive Chairman
Adrian Griffin, an Australian-trained mining professional, has had exposure to metal mining and processing
worldwide during a career spanning more than three decades. A pioneer of the lateritic nickel processing
industry, he has helped develop extraction technologies for a range of minerals over the years. Today,
Adrian specialises in mine management and production. He is a former Chief Executive Officer of Dwyka
Diamonds Limited, an AIM- and ASX-listed diamond producer, was a founding director and executive of
Washington Resources Limited and also a founding director of Empire Resources Limited, Ferrum
Crescent Limited and Reedy Lagoon Corporation Limited. Moreover, Mr Griffin was a founding director of
ASX-listed Northern Uranium, of which company he is currently a non-executive director. He is also
managing director of ASX-listed Lithium Australia NL.
Other listed company directorships during the last 3 years:
Northern Minerals Ltd (Director June 2006 – present), Reedy Lagoon Corporation Ltd (Director June 2014 –
present) and Lithium Australia NL (Director February 2011 – present).
Adrian Griffin is also a member of the Audit & Risk Committee, Remuneration Committee (Chairman) and
the Nomination Committee.
Patrick McManus Managing Director
Patrick McManus has a degree in mineral processing from Leeds University and an MBA from Curtin
University. A mining professional for more than 30 years, his work has taken him to many sites within
Australia and overseas, including Eneabba and the Murray Basin in Australia, and Madagascar, Indonesia
and the United States. During that time, Patrick has worked in operational, technical and corporate roles for
RioTinto, RGC Limited and Bemax Resources Limited. He was a founding director and, from January 2007
to March 2010, managing director of ASX-listed Corvette Resources Limited.
Other listed company directorships during the last 3 years:
Tungsten Mining NL (Director December 2012 – January 2015)
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Directors’ Report (continued)
Chew Wai Chuen Non-Executive Director
Mr Chew was a financial advisor with more than 16 years of industry experience, specialising in the
provision of corporate and wealth management for ultra-high net worth individuals. With experience in
South East Asia capital market and extensive networks of clients based in Singapore and Malaysia, Mr
Chew provides important contributions to the Board. He has successfully worked with a number of financial
institutions in Singapore such as, Standard Chartered Bank, OCBC Bank and Credit Suisse Singapore.
Mr Chew is now a Managing Partner with a financial advisory firm, providing personal investing planning
and wealth management for high net worth individuals and has a good track record of investment into junior
mining companies in Australia and South East Asia.
Other listed company directorships during the last 3 years:
Tungsten Mining NL (Director April 2014 – present)
Chew Wai Chuen is also a member of the Audit & Risk Committee, Remuneration Committee and the
Nomination Committee.
Natalia Streltsova Non-Executive Director
Dr Natalia Streltsova is a senior executive with over 25 years’ experience in the minerals industry of which
15 years, prior to forming her own consulting business in 2014, was spent in various leadership and
technical roles with major mining houses including Vale SA (formerly CVRD), BHP Billiton and WMC
Resources Limited. In all of these roles, there was considerable interaction with operations to provide
support as well as to identify and implement innovative projects leading to increased production and cost
reduction.
Dr Streltsova has a strong background in mineral processing and metallurgy with broad international
experience in project, technical and business development capacities. Dr Streltsova has previously been a
director on a number of Vale subsidiary boards as well as on several collaborative industry boards. She is
also a Non-Executive Director on ASX listed Neometals Limited.
Other listed company directorships during the last 3 years:
Neometals Limited (Director April 2016 – present)
CopperMoly Limited (Director September 2013 – March 2014)
Natalia Streltsova is also a member of the Audit & Risk Committee, Remuneration Committee and the
Nomination Committee (Chairman).
Company secretary
Amanda Wilton-Heald
Ms Wilton-Heald is a Chartered Accountant and has more than 18 years’ experience within Australia and in
the United Kingdom. That experience has included the auditing of the company financial statements of both
ASX- and LSE-listed companies, an accounting role with an AIM-listed company in the UK specialising in
the provision of collaboration technology, and involvement in the ASX listings of junior exploration
companies, as well as the provision of corporate advisory and company secretarial services.
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Directors’ Report (continued)
Interests in the shares and options of the company and related bodies corporate
As at the date of this report, the interests of the directors (including related parties) in the shares and
options of the company were:
Adrian Griffin
Patrick McManus
Chew Wai Chuen
Natalia Streltsova
Dividends
Number of ordinary
shares
Number of options
over ordinary shares
6,696,539
5,709,230
1,030,460
322,492
-
-
-
-
No dividend has been paid or declared since the start of the financial year and the directors do not
recommend the payment of a dividend in respect of the financial year.
Principal activities
The principal activity of the entity during the financial year was the exploration for minerals, namely
phosphate and potash.
Operating and financial review
Operating results for the year
The loss after income tax benefit for the year ended 30 June 2016 was $184,648 (2015: $2,871,003).
Financial Performance
Total income
Profit/(loss) before tax
Profit/(loss) after income tax benefit
Loss per share (cents)
2016
$
3,126,825
(184,648)
(184,648)
(0.07)
2015
$
62,157
(2,871,003)
(2,871,003)
(1.33)
%
Increase/
(Decrease)
4930.53%
(93.57%)
(93.57%)
(94.81%)
The financial position of the Group is presented in the attached Consolidated Statement of Financial
Position.
OPERATING AND FINANCIAL REVIEW
Introduction
A number of milestones were achieved by Potash West NL (“Potash West” or “the Company”) over 2015-
2016. The Company continued the groundwork to establish a global phosphate and potash supply
business primarily through our flagship Dinner Hill resource close to Perth in Western Australia. The
Western Australia opportunity is augmented by our interest in the South Harz project in central Germany,
embedded in a province with over a century of continuous potash production.
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Key 2015-16 achievements included:
• doubling the estimated mine life for Dinner Hill to 40 years, under an enhanced Scoping Study for
Stage 1, production of single superphosphate,
slashing the mine’s estimated operating costs by more than 14% to $190/tonne of product,
lifting Dinner Hill Stage 1 project’s estimated EBITDA by 24% to $52 million per annum,
•
•
• discovering additional potash and phosphate mineralisation just south of Dinner Hill,
• appointing global firm, FTI Consulting, to market Dinner Hill to prospective financial and strategic
investors,
initiating the critical components of the Dinner Hill Pre-Feasibility Study (PFS),
•
• progressing our direct equity interest in lithium extraction technology to a significant shareholding in
ASX listed Platypus Minerals,
• progressing to a priority entitlement and a cornerstone investment position in the pending $6m IPO
and ASX listing of Davenport Resources into which PWN is vending its German potash project, and
capital raising of $ 3.3 million, completed after year-end.
•
The challenges for 2016-2017:
On the back of the above achievements, Potash West has set a number of targets for the 2016-2017
financial year to build upon the successes of the year under review in this report. Priority will now move to
the possibility of securing a joint venture funding partner to ensure Dinner Hill develops, as a near-term
fertiliser producer. This will be progressed in partnership with our appointed consultancy, FTI Consulting.
Completion of a favourable PFS will also be critical to and contribute substantially to, the success of our
global marketing initiatives. Delivering the upgraded mining plan and optimised metallurgical processing
route for Dinner Hill, will be key benchmarks for project progress between now and June 30 next year.
Pleasingly, since July 1 this year, more favourable and timely equity market sentiment is flowing back to the
junior resources sector. This should have a more positive influence on the outcome of the pending
Davenport IPO and ASX listing. When listed Davenport will hold all of the South Harz potash project and
the Company will hold more than 25% of Davenport. Potash West Shareholders will have a priority
entitlement at the IPO. This should bring further value-add returns to PWN shareholders electing to take up
their entitlement offer in the Davenport float.
Our business strategy:
For small explorers and developers equity markets have been difficult for the past 12-18 months. We have
maintained our focus on emerging within a few years as a major fertiliser supplier to Western Australian
and international markets. This strategy requires patience, persistence and focus as your Board and
management firmly believe that the Dandaragan Trough will be a significant, sustainable supplier of
fertilisers in the future.
Potash West remains focused on fertiliser projects that meet the criteria of:
large-scale,
in regions of the world dependent on importing fertiliser products,
•
•
• existing and robust export infrastructure, and
•
low sovereign risk.
Potash West’s current two projects, Dinner Hill within the Dandaragan Trough in Western Australia and
South Harz, in central Germany, meet these criteria and have the potential to be major fertiliser suppliers
for many decades.
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
PROJECT SUMMARY
Australia
The Company continues to advance the Dinner Hill potash and phosphate deposit, 175km north of Perth in
Western Australia (Figure 1). Dinner Hill forms part of the larger Dandaragan Trough landholding, having an
area of more than 2,600km2. Sedimentary deposits of greensands within the trough contain glauconite, a
potash rich mica, and phosphate nodules. The project objective is to produce potash and phosphate
fertilisers and a range of valuable by-products from the glauconite and phosphate present within the
sediments of the Dandaragan Trough.
Figure 1: Dandaragan Trough and Dinner Hill location
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
The development strategy is to commence operations with a Stage 1 project producing phosphate fertiliser,
from the phosphate nodules and mineralisation that occurs through the greensand sequences. This
approach offers the advantage of using well established technology and requires a lower capital
requirement to commence production and generate a positive cashflow.
Stage 2, the integrated K-Max plant, will employ the Company’s 100%-owned patented K-Max process to
produce potassium sulphate (SOP), potassium magnesium sulphate (KMS), phosphoric acid, iron oxide
and aluminium sulphate. The Scoping Study for the integrated plant has not been updated since the ASX
release of 13 January 2015.
Enhanced Dandaragan Scoping Study
The updated Scoping Study completed during the year on the basis of a +/- 35% accuracy, examined the
production of single superphosphate (SSP) from Dinner Hill. The study examined the production of SSP
from the Indicated Resource for 40 years. The ore will be processed through a beneficiation and acidulation
plant, Figure 2. The pelletised product will be transported by road to Moora and dispatched by rail to
Kwinana and/or Geraldton for local and international distribution. The study assumed using sulphur sourced
internationally and delivered to site from Kwinana, Western Australia. The beneficiation plant may produce
a glauconite concentrate, which will be stockpiled for later treatment.
The results (reported to the ASX on 30 September 2016) further demonstrated the robust nature of Potash
West's Dandaragan project. Key results, in $A:
• Mining rate:
4 million tpa
• Production rate, SSP: 440,000 tpa
• Mine Life:
• Capital Costs:
• Revenue:
• Operating Costs
• EBITDA
plus 40 years, based on indicated resource ( increased from 20 years)
$205 million ($136m excluding acid plant)
$128 million ($ 321/t)
$76 million ($190/t)
$52m p.a ($42m)
The Scoping Study was based upon the Dinner Hill JORC compliant phosphate Mineral Resource (reported
to the ASX on 3 June 2015) which includes an Indicated Resource of 250Mt at 2.9% P 2O 5.
Note: The Scoping Study referred to in this report is based on low-level technical and economic
assessments, and is insufficient to support estimation of Ore Reserves, to provide assurance of an
economic development case at this stage, or to provide certainty that the conclusions of the Scoping Study
will be realised.
Unless otherwise stated, all cashflows are in Australian dollars, are undiscounted and are not subject to an
inflation/escalation factor.
The Company has concluded that it has reasonable basis for providing the forward looking statements
included in this announcement. The detailed reasons for that conclusion are outlined in the various releases
to the ASX, referred to above.
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Figure 2: Phosphate process flowsheet.
Recognising the disparity between the Company’s current market capitalisation and the estimates of capital
required to commence mining operations, Potash West commenced during the year looking for partners to
assist in the project’s development. FTI Consulting was appointed to assist Potash West in marketing the
Dinner Hill project to potential financial and strategic investors. This marketing drive continues in the current
financial year in parallel with the prefeasibility study.
Annual Mineral Resource Statement as at 30 June 2016
The Mineral Resource at the Dinner Hill project is unchanged from that reported in June 2015 (ASX release
3 June 2015).
The June 2015 resource update used drilling carried out in 2014 and 2015 comprising an additional 90
aircore drill holes for 2732m. The resource covers an area of some 17 km2 (Figure 3). Higher grade
phosphate mineralisation is continuous to the north within the area of the new drilling, significantly
upgrading the inventory in both tonnes and grade compared with the phosphate resource estimate
published in 2014 (ASX release 20 March 2014).
The Dinner Hill deposit has an Indicated Mineral Resource of 250Mt at 2.9% P 2O 5 at a 1.45% P2O 5 cut-off
grade. Within this phosphate resource, there is an Indicated Mineral Resource of 155Mt at 4.1% K 2O and
an Inferred Mineral Resource of 20Mt at 2% K2O. An additional Indicated Mineral Resource of 18Mt at 3.8%
K2O occurs marginal to the phosphate resource.
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Dinner Hill Deposit Resource Summary1
Resource
Phosphate
Potash
Potash resources included within
the phosphate resource area
Potash resource outside the
phosphate resource area
Total Potash Resources
Category
Indicated
Indicated
Inferred
Totals
Indicated
Indicated
Inferred
Totals
1: Totals may differ from sum of individual items due to rounding
Tonnes
(Mt)
250
P2O 5
(%)
2.9
155
20
175
18
175
20
195
K2O
(%)
4.1
2
3.8
3.8
4.0
2
3.8
The Dinner Hill project covers two virtually horizontal greensand formations within the Cretaceous Coolyena
Group: the Poison Hill Greensand and the Molecap Greensand. Over most of the area of the deposit, they
are separated by the Gingin Chalk and in places are underlain by a thin pebble horizon containing
phosphatic nodules. Figure 4 is a section through the deposit showing the geology and summary
intersections through potash and phosphate mineralisation. An average thickness of about 11m of surficial,
mostly sandy, cover overlies the greensand units. The greensands and the chalk contain significant
amounts of phosphate as grains and nodules of fluorapatite. They also contain significant potash within the
mineral glauconite.
The cut-off grades used for both potash and phosphate are based on ongoing metallurgical and economic
studies and are set at levels that ensure continuity of mineralisation throughout the deposit as shown in
Figures 5 and 6. The phosphate resource is shown at a range of cut-off grades in Figure 7 and the potash
resource is similarly shown in Figure 8.
This Indicated Resource will be used to develop an optimised mining plan which will be the basis for a
mining model for Dinner Hill. Two development options will be considered:
1. Mining the phosphate rich parts of the deposit, to produce single superphosphate, for the life of the
Indicated resource.
2. Using the phosphate mining project as a “springboard” to generate cashflows, some of which would
be used to complete the development work for the K-Max process. In this model, the K-Max
operation will commence ~ 5 years after the phosphate project.
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OPERATING AND FINANCIAL REVIEW (continued)
Directors’ Report (continued)
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Figure 3: Dinner Hill resource plan with drill hole locations
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OPERATING AND FINANCIAL REVIEW (continued)
Directors’ Report (continued)
Figure 4: Dinner Hill cross section 6,668,000N
Figure 5: Dinner Hill cross section 6,372,000N with potash ore blocks
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Figure 6: Dinner Hill cross section 6,639,600N with phosphate ore blocks
Figure 7: Grade tonnage curve for the Dinner Hill potash resource above a range of cut-off grades.
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Figure 8: Grade tonnage curve for the Dinner Hill phosphate resource above a range of cut-off
grades.
GERMANY
South Harz Project
Potash West owns 55% of East Exploration Pty Ltd (EE) which has been granted two exploration licences,
“Küllstedt” and “Gräfentonna”, covering 450km2 in the South Harz potash district in central Germany (Figure
9).
Potash mining commenced in the South Harz potash district in 1896 and potash is still being produced.
More than 500 million tonnes of potash ore were extracted from the South Harz region in the 22 year period
between 1970 and 1992, producing more than 100 million tonnes of potash fertiliser.
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Figure 9: South Harz project location
EE has commissioned ERCOSPLAN
Ingenieurgesellschaft Geotechnik und Bergbau GmbH
(ERCOSPLAN) to review and summarise the results of all available geological data relating to the Küllstedt
licence and to estimate an Exploration Target for the area. ERCOSPLAN has a long association with the
German potash industry. In its former role as the Central Engineering Office for the East German potash
mining industry, ERCOSPLAN was closely associated with exploration drilling in the South Harz region in
the 1970s and 80s and has access to most of the summary exploration data. The Exploration Target for the
Küllstedt licence area (released to the ASX on 04 March 2015) is tabled below.
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Küllstedt Exploration Target
Tonnage
(MMT)1
Grade
Range
%K2O2
Grade Range
%KCl3
Potash
Tonnage
(MMT)4
(K2O)
4,055 – 5,141
7.2 – 25
11.8 - 41
292 – 1,285
1 - The volume of the potash seam was estimated from the geological model which has been
constructed using historical drill hole data. The tonnage was derived from the style of mineralisation
and its characteristic density which can vary between 1.83 t/m3 and 2.32 t/m3. This amounts to a
tonnage range of between 4,055 million metric tonnes and 5,141 million metric tonnes of mineralised
rock.
2 - The grade range was estimated from assayed drill intersections of the potash seam which range
from 7.2% to 25% K2O
3 - Conversion of assay K2O to KCl product multiply by 1.6393
4 - The tonnages of K2O were obtained by multiplying the tonnage of mineralised material with the
corresponding K 2O grade of the potash seam, which range from 7.2% to 25%. Accordingly, the
minimum K2O tonnage is 292 million metric tonnes and the maximum K2O tonnage is 1,285 million
metric tonnes.
Between 1900 and 1978, 34 drill holes and three shafts were sunk from the surface within the Küllstedt
Exploration Licence Area, (as shown in Figure 10), of which 28 drill holes were drilled for potash
exploration. An additional six holes were drilled, among others, for oil and gas exploration and did not
necessarily fully evaluate potash horizons. ERCOSPLAN does not, at this time, have access to the detailed
exploration database for many of these holes. ERCOSPLAN is confident that a more complete database
will eventually be recovered from the archives of Federal and local authorities.
Given its long history with potash mining in the South Harz region, ERCOSPLAN is of the understanding
that the historical exploration was carried out according to long established procedures that were current
best practice in the German potash industry. Drill hole locations are shown in Figure 10.
The planned 2016/7 drilling program is anticipated to be financed by a capital raising to be carried out as
part of the Davenport Resources IPO, with 100% of EE being vended into Davenport Resources, which
plans to list on the ASX. Work has progressed more slowly than expected on the IPO of Davenport
Resources. Whilst it was anticipated to be completed in the third quarter of FY2016, various issues have
delayed it. Listing is expected in Q1/Q2 FY2017. Potash West shareholders will have a $1 million priority
entitlement at the IPO.
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Figure 10: Küllstedt drill hole plan showing hole location and year of drilling start
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Our K-Max technology
Potash West owns 100% of the intellectual property of the K-Max process which unlocks the valuable
elements that exist within the vast glauconite deposits of the Dandaragan Trough. We have a patent
pending for this technology. The K-Max process uses hot sulphuric acid to leach glauconite at atmospheric
pressure, extracting potassium and other elements to make a range of products, including sulphate of
potash (SOP), high magnesium SOP, (KMS), phosphoric acid, aluminium sulphate (alum) and iron oxide.
The process is also applicable to other mica-like minerals, such as phlogopite.
There has been interest from other companies looking at similar deposits and the Company is investigating
opportunities to licence the technology. In addition, the Company had a shareholding in a lithium extraction
technology, called L-Max. This was held in a company called Lepidico. During the year Lepidico was sold
to an ASX listed company Platypus Minerals (PLP). Potash West, at 30 June 2016, owned 97 million
shares or 5.6% of PLP.
Lithium is a commodity which is facing very strong demand growth, due to its use in lightweight batteries.
PLP has developed a business model focussed on lithium, both exploring for lithium ores and using new
technology to unlock value from lithium micas. PLP is active in several parts of the world in exploration in its
own name and joint ventures.
Exploration Tenure
Potash West’s tenement holdings were unchanged during the year. Subsequent to year end, E57/1051,
E77/2381 and E77/2382, tenements which were applied for. These licences cover the Lake Barlee salt
lake in Western Australia, which we believe may be prospective for SOP within the brines.
Corporate Activity
Subsequent to year-end, Potash West raised $3.3 million, through share issues, via a placement to
sophisticated investors and a Share Purchase Plan to shareholders.
While the divestment of our shareholding in East Exploration progressed during the year, the transaction
has been delayed significantly, for a number of reasons outside of the Company’s’ control. It is expected
that the transaction will be completed late in 2016/early 2017.
Subsequent to the takeover of Lepidico by Platypus Minerals (ASX: PLP) Potash West now owns 97 million
PLP shares, with a market value at year-end of 2.0c/share ($1.94 M).
Competent Person’s Statements
Dandaragan Trough Project
The information in this report that relates to the estimation of the Mineral Resources is based on and fairly
represents information and supporting documentation prepared by J.J.G. Doepel, who is a member of the
Australasian Institute of Mining and Metallurgy. Mr. Doepel, Principal Geologist of the independent
consultancy, Continental Resource Management Pty Ltd, has sufficient experience relevant to the style of
mineralisation and type of deposit under consideration. He is qualified as a Competent Person as defined in
the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves”. This report is issued with Mr. Doepel’s consent as to the form and context in which the Mineral
Resource appears.
South Harz Project, Germany
The information in this report that relates to Exploration Targets and Exploration Results, is based on
information compiled by Andreas Jockel, a Competent Person who is a Member of a ‘Recognised
Professional Organisation’ (RPO), the European Federation of Geologists, and a registered “European
Geologist” (Registration Number 1018) and Dr Henry Rauche, a Competent Person who is a Member of a
‘Recognised Professional Organisation’ (RPO), the European Federation of Geologists, and a registered
“European Geologist” (Registration Number 729).
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Andreas Jockel and Dr Henry Rauche are full-term employees of ERCOSPLAN Ingenieurgesellschaft
Geotechnik und Bergbau mbH (ERCOSPLAN). ERCOSPLAN, Andreas Jockel and Dr Henry Rauche are
not associates or affiliates of East Exploration Pty Ltd, or of any associated company. ERCOSPLAN will
receive a fee for the preparation of this Report in accordance with normal professional consulting practices.
This fee is not contingent on the conclusions of this Report and ERCOSPLAN, Andreas Jockel and Dr
Henry Rauche will receive no other benefit for the preparation of this Report. ERCOSPLAN, Andreas Jockel
and Dr Henry Rauche do not have any pecuniary or other interests that could reasonably be regarded as
capable of affecting their ability to provide an unbiased opinion in relation to the Küllstedt Exploration
Licence Area.
ERCOSPLAN does not have, at the date of this Report, and has not had within the previous years, any
shareholding in or other relationship with East Exploration Pty Ltd or the Küllstedt Exploration Licence Area
and consequently considers itself to be independent of East Exploration Pty Ltd.
Andreas Jockel and Dr Henry Rauche have sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a
Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves’. Andreas Jockel and Dr Henry Rauche consent to the
inclusion in the report of the matters based on their information in the form and context in which it appears.
Cautionary Statement:
The scoping referred to in this report is based on low-level technical and economic assessments and is
insufficient to support any estimation of Ore Reserves or to provide assurance of an economic development
case at this stage, or to provide certainty that the conclusions of the Scoping Study will be realised.
The use of the word “ore” in the context of this report does not support the definition of “Ore Reserves” as
defined by the 2012 Edition of the ‘Australasian Code for reporting of Exploration Results, Mineral
Resources and Ore Reserves. The word ‘ore’ is used in this report to give an indication of quality and
quantity of mineralized material that would be fed to the processing plant and it is not to be assumed that
‘ore ‘will provide assurance of an economic development case at this stage, or to provide certainty that the
conclusions of the scoping study will be realized.
Certain statements contained in this announcement, including information as to the future financial or
operating performance of Potash West and its projects, are forward-looking statements. Such forward-
looking statements are necessarily based upon a number of estimates and assumptions that, whilst
considered reasonable by Potash West, are inherently subject to significant technical, business, economic,
competitive, political and social uncertainties and contingencies; involve known and unknown risks and
uncertainties that could cause actual events or results to differ materially from estimated or anticipated
events or results reflected in such forward-looking statements; and may include, among other things,
statements regarding targets, estimates and assumptions in respect of potash and phosphate production
and prices, operating costs and results, capital expenditures, ore reserves and mineral resources and
anticipated grades and recovery rates, and are or may be based on assumptions and estimates related to
future technical, economic, market, political, social and other conditions.
Forward-looking statements are necessarily based upon a number of estimates and assumptions related to
future business, economic, market, political, social and other conditions that, while considered reasonable
by Potash West, are inherently subject to significant uncertainties and contingencies
Potash West disclaims any intent or obligation to update publicly any forward-looking statements, whether
as a result of new information, future events or results or otherwise. The words “believe”, “expect”,
“anticipate”, “indicate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”,
“will”, “schedule” and other similar expressions identify forward-looking statements. All forward-looking
statements made in this announcement are qualified by the foregoing cautionary statements. Investors are
cautioned that forward looking statements are not guarantees of future performance and accordingly
investors are cautioned not to put undue reliance on forward-looking statements due to the inherent
uncertainty therein.
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Significant changes in the state of affairs
There have been no significant changes in the state of affairs for the year.
Significant events after the balance date
The Company raised funds on the following dates:
•
July 18
• August 17
• September 5
Issue of 57,127,998 shares, $1.7M, before costs
Issue of 37,700,063 shares, $1.13M, before costs
Issue of 15,280,667 shares, $0.46M, before costs
On 9 September 2016, 200,000 unquoted options expired unexercised.
On 3 August 2016 the company announced that it proposes to issue free partly-paid shares through a 1-for-
4 bonus issue at a total issue price of $0.05. The record date for this issue is expected to be October 2016.
There have not been any matters that have arisen after balance date that have significantly affected, or
may significantly affect, the operations and activities of the Company, the results of those operations, or the
state of affairs of the Company in future financial years other than disclosed elsewhere in this annual report.
Likely Developments and expected results
The Company will continue its focus on the Dandaragan Trough and exploring opportunities to progress
both the phosphate and the K-Max projects. Work is in progress on the pre-feasibility study for single
superphosphate production.
We will also look to advance the South Harz project. The vending of that project into Davenport Resources,
which will list on the ASX, is in progress at this moment.
Environmental regulation and performance
The Company’s activities are subject to Australian legislation relating to the protection of the environment.
The Company is subject to significant environmental legal regulations in respect to its exploration and
evaluation activities. There have been no known breaches of these regulations and principles.
Indemnification and Insurance of directors and officers
The Company has entered into deeds of access and indemnity with the officers of the Company,
indemnifying them against liability incurred, including costs and expenses in successfully defending legal
proceedings. The indemnity applies to a liability for costs and expenses incurred by the director or officer
acting in their capacity as a director or officer.
Except in the case of a liability for legal costs and expenses, it does not extend to a liability that is:
(a)
(b)
owed to the Company or a related body corporate of the Company;
for a pecuniary penalty order under section 1317G or a compensation order under section 1317H or
section 1317HA of the Corporations Act 2001; or
(c) owed to someone other than the Company or a related body corporate of the Company where the
liability did not arise out of conduct in good faith.
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Directors’ Report (continued)
Indemnification and Insurance of directors and officers (continued)
Similarly, the indemnity does not extend to liability for legal costs and expenses:
(d)
(e)
(f)
in defending proceedings in which the officer is found to have a liability described in paragraph (a), (b)
or (c);
in proceedings successfully brought by the Australian Securities and Investments Commission or a
liquidator; or
in connection with proceedings for relief under the Corporations Act 2001 in which the court denies
the relief.
During or since the financial year, the Company has paid premiums in respect of a contract insuring all the
Directors and Officers. The terms of the contract prohibit the disclosure of the details of the insurance
contract and premiums paid.
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.
Share Options
As at the date of this report there were 23,296,691 (2015: 5,042,188) unissued ordinary shares under
options.
Option holders do not have any right, by virtue of the option, to participate in any share issue of the
company or any related body corporate.
Non-audit services
The Company may decide to employ the auditor on assignments additional to its statutory audit duties
where the auditor’s expertise and experience with the Company are important. The directors are satisfied
that the provision of non-audit services is compatible with the general standard of independence for audits
by the Corporations Act 2001. The nature and scope of each type of non-audit service provide means that
auditor independence was not compromised.
Details of the amounts paid or payable to the auditor, Ernst & Young, for non-audit services provided during
the year are set out below.
Remuneration of the auditor of the Company for:
-other services; research & development tax concession,
income tax return.
2016
$
17,938
17,938
2015
$
17,909
17,909
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Directors’ Report (continued)
Directors’ meetings
Meetings of directors held and their attendance during the financial year were as follows:
Name of
director:
Directors’
meeting
held
whilst in
office
Directors’
meetings
attended
Audit and
Risk
Committee
meetings
held
Audit and
Risk
Committee
meetings
attended
Remuneration
and
Nomination
Committee
meetings held
Remuneration
and
Nomination
Committee
meetings
attended
Adrian Griffin
Patrick
McManus
Chew Wai Chu
Natalia
Streltsova
7
7
7
7
7
7
6
7
2
-
2
2
2
-
2
2
2
-
2
2
2
-
2
2
Remuneration Report (audited)
This Remuneration Report outlines the director and executive remuneration arrangements of the Company
in accordance with the requirements of the Corporations Act 2001 and its Regulations. For the purpose of
this report, Key Management Personnel (KMP) of the Company are defined as those persons having
authority and responsibility for planning, directing and controlling the major activities of the Company,
directly or indirectly, and includes executives of the Company. The information provided in this
remuneration report has been audited as required by section 308(3C) of the Corporations Act 2001.
Details of Key Management Personnel
(i) Directors:
Adrian Griffin
Patrick McManus
Chew Wai Chu
Natalia Streltsova
Non-Executive Chairman
Managing Director
Non-Executive Director
Non-Executive Director
(ii) Executives:
Lindsay Cahill
Robert Van Der Laan
Geologist
Chief Financial Officer
Remuneration Philosophy
The performance of the Company depends upon the quality of its directors and executives. To prosper, the
Company must attract, motivate and retain highly skilled directors and executives.
To this end, the Company embodies the following principles in its remuneration framework:
Provide competitive rewards to attract high calibre executives;
Link executive rewards to shareholder value.
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Directors’ Report (continued)
Remuneration Report (audited) (continued)
Shares and options issued under the incentive plans provide an incentive to stay with the Company. At this
time, shares and options issued do not have performance criteria attached. This policy is considered to be
appropriate for the Company, having regard to the current state of its development.
The Company does not have a policy which precludes directors and executives from entering into contracts
to hedge their exposure to options or shares granted to them as remuneration.
The Company also recognises that, at this stage in its development, it is most economical to have only a
few employees and to draw, as appropriate, upon a pool of consultants selected by the directors on the
basis of their known management, geoscientific, and engineering and other professional and technical
expertise and experience. The Company will nevertheless seek to apply the principles described above to
its directors and executives, whether they are employees of/or consultants to the Company.
Remuneration Committee Responsibilities
The Committee assesses the appropriateness of the nature and amount of remuneration of directors and
senior executives on a periodic basis by reference to relevant employment market conditions, with the
overall objective of ensuring maximum stakeholder benefit from the retention of a high quality Board and
executive team.
Remuneration Structure
In accordance with best practice corporate governance, the structure of non-executive and executive
director remuneration is separate and distinct.
Non-executive director remuneration
Objective
The Board seeks to set aggregate remuneration at a level which provides the Company with the ability to
attract and retain directors of the highest calibre, whilst incurring a cost which is acceptable to shareholders.
Structure
The Company’s constitution and the ASX Listing Rules specify that the aggregate remuneration of non-
executive directors must be determined from time to time by shareholders of the Company in a general
meeting. An amount not exceeding the amount determined is then divided between the non-executive
directors. As at the date of the report, the aggregate directors’ fees for non-executive Directors has been
set at an amount not exceeding $200,000 per annum (2015: $200,000 per annum).
The amount of aggregate remuneration sought to be approved by shareholders and the manner in which it
is apportioned amongst non-executive directors is reviewed annually. The Board may consider advice from
external consultants (none were used during the current year), as well as the fees paid to non-executive
directors of comparable companies, when undertaking the annual review process. The remuneration report
has been approved by shareholders at the annual general meeting.
Each non-executive director receives a fee for being a director of the Company. No additional fee is paid
for participating in the Audit, Remuneration and Nomination Committees.
Non-executive directors are encouraged by the Board to hold shares in the Company (purchased on market
and in accordance with the Company’s approved policies to ensure there is no insider trading). It is
considered good governance for directors of a company to have a stake in that company. The non-
executive directors of the Company may also participate in the share and option plans as described in this
report.
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Directors’ Report (continued)
Remuneration Report (audited) (continued)
As an incentive to employees, Directors, executive officers and consultants, the Company has adopted a
scheme called the Potash West Employee Incentive Scheme (‘the Scheme’). The purpose of the Scheme is
to give employees, Directors, executive officers and consultants of the Company an opportunity to
subscribe for shares and/or options in the Company. The Directors consider that the Scheme will enable
the Company to retain and attract skilled and experienced employees, Board members and executive
officers and provide them with the motivation to participate in the future growth of the Company and, upon
becoming shareholders in the Company, to participate in the Company’s profits and development.
Executive director and senior management remuneration
Objective
The Company aims to reward executives with a level and mix of remuneration commensurate with their
position and responsibilities within the Company and so as to:
reward executives for Company, business team and individual performance;
align the interests of executives with those of shareholders; and
ensure total remuneration is competitive by market standards.
Structure
At this time, the cash component of remuneration paid to the Executive directors, and other senior
managers is not dependent upon the satisfaction of performance conditions.
It is current policy that some executives be engaged by way of consultancy agreements with the
Company, under which they receive a contract rate based upon the number of hours of service
supplied to the Company. There is provision for yearly review and adjustment based on consumer
price indices. Such remuneration is hence not dependent upon the achievement of specific
performance conditions. This policy is considered to be appropriate for the Company, having regard to
the current state of its development.
Executive directors are encouraged by the Board to hold shares in the Company (purchased on market
and in accordance with the Company’s approved policies to ensure there is no insider trading). It is
considered good governance for directors of a company to have a stake in that company. The
Executive directors of the Company may also participate in the share and option plans as described in
this report.
Performance table
The following table details the loss of the Company from continuing operations after income tax, together
with the basic loss per share since the incorporation of the company:
2016
$
2015
$
2014
$
2013
$
2012
$
2011
$
Net loss from continuing
operations after income tax
Basic earnings/(loss) per
share in cents
Share Price in Cents
(184,648)
(2,871,003)
(1,822,505)
(4,193,632)
(3,900,096)
(808,723)
(0.07)
3.2
(1.33)
4.9
(1.72)
3.60
(5.85)
12.0
(5.76)
23.0
(1.08)
18.00
* The Company was registered in November 2010
The options on issue are not considered dilutive for the purpose of the calculation of diluted earnings/loss
per share as their conversion to ordinary shares would not decrease the net profit from continuing
operations per share. Consequently, diluted earnings/loss per share is the same as basic earnings per
share.
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Directors’ Report (continued)
Remuneration Report (audited) (continued)
Agreements with non-executive directors
The director’s fees of $90,000 per annum inclusive of superannuation requirements were paid, or due and
payable to Mr Adrian Griffin. In the event of termination, there is no notice period required.
The director’s fees of $50,000 per annum inclusive of superannuation requirements were paid, or due and
payable to Mr Chew Wai Chuen. In the event of termination, there is no notice period required.
The director’s fees of $50,000 per annum inclusive of superannuation requirements were paid, or due and
payable to Ms Natalia Streltsova. In the event of termination, there is no notice period required.
Executive director and senior management remuneration
Long-Term Incentive (“LTI”) awards to executives are made under the Employee Share Plan (“ESP”) and
are delivered in the form of shares. Shares granted under the ESP are released equally over 36 months, 12
months from the grant date.
Agreement with Managing Director
On the 6 September 2012, the Remuneration Committee recommended to increase Mr Patrick McManus’s
annual remuneration inclusive of share based payments from $250,000 inclusive of superannuation
requirements to $275,000 per annum inclusive of superannuation requirement, effective from 1 July 2012.
The agreement can be terminated by either party by giving three months’ notice or payment of three
months’ salary in lieu of notice.
Agreement with Chief Financial Officer
Mr Robert Van Der Laan was appointed as Chief Financial Officer, effective on 13 May 2011. On 5 August
2011 the company entered into an agreement containing the terms and conditions under which the services
of Chief Financial Officer are provided. In the event of termination, there is no notice period required.
The agreement involves the payment to the Company associated with Robert Van der Laan of an hourly
fee of $120 and reimbursement of expenses. The hourly rate was revised up to $130 effective from 1 July
2013. Transaction is considered to be on normal commercial terms and conditions no more favourable than
those available to other parties.
Agreement with Exploration Manager
On 25 August 2011, the Company and a company associated with Mr Lindsay Cahill entered into an
agreement containing the terms and conditions under which the services of the Mining Services Manager
are provided to the Company. In the event of termination, there is no notice period required.
The agreement involves the payment to the Company associated with Mr Cahill of an hourly fee of $140
and reimbursement of expenses. Transaction is considered to be on normal commercial terms and
conditions no more favourable than those available to other parties.
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Directors’ Report (continued)
Remuneration Report (audited) (continued)
Directors’ Remuneration 2016
Short-term
Post-employment benefits
Director
Adrian Griffin
Patrick
McManus
Chew Wai
Chuen
Natalia
Streltsova
Total
Directors’
Fees
$
Salary and
Consulting
Fees
$
Superannuation Termination
Share and Option
Based Payments
Contribution
$
Benefits
$
Shares Options
$
$
Total
$
57,535
-
7,808
- 24,657
-
90,000
164,799
34,858
- 75,343
- 275,000
-
35,000
-
- - 15,000
-
50,000
31,963
-
4,338
-
13,699
124,498
164,799
47,004
- 128,699
-
-
50,000
465,000
Executives’ Remuneration 2016
Short-term
Post-employment benefits
Executive
Salary
$
Fees
$
Consulting Superannuation Termination
Contribution
$
- -
Benefits
$
- 37,667
Share and Option
Based Payments
Shares Options
$
$
-
118,950
- 156,617
-
-
- -
Total
$
37,667
-
- 118,950
- 156,617
-
-
-
Lindsay Cahill
Robert Van der
Laan
Total
Total Directors’
and Executives’
Remuneration
124,498
321,416
47,004
- 128,699
- 621,617
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Directors’ Report (continued)
Remuneration Report (audited) (continued)
Directors’ Remuneration 2015
Short-term
Post-employment benefits
Directors’
Fees
$
Salary and
Consulting
Fees
$
Superannuation Termination
Share and Option
Based Payments
Contribution
$
Benefits
$
Shares Options
$
$
Total
$
73,025
-
-
219,952
7,808
33,012
15,886
-
1,807
-
-
-
9,167
22,036
3,140
40,536
28,602
158,049
-
-
219,952
4,338
-
46,965
5,126
-
1,250
-
- 40,719
-
-
-
90,000
275,000
20,833
-
-
-
50,000
29,852
465,685
Director
Adrian Griffin
Patrick McManus
George
Sakalidis*
Gary Johnson*
Chew Wai Chuen
Total
*George Sakalidis and Gary Johnson resigned as Non-Executive directors effective 26 November 2014 and 30 June 2015,
respectively.
Executives’ Remuneration 2015
Short-term
Post-employment benefits
Consulting Superannuation Termination
Contribution
$
Benefits
$
Share and Option
Based Payments
Shares Options
$
$
Executive
Lindsay Cahill
Robert Van der
Laan
Salary
$
-
-
Fees
$
65,914
79,365
-
-
-
-
-
-
Total
- 145,279
- - -
Total Directors’
and Executives’
Remuneration
158,049
365,231
46,965
- 40,719
Total
$
65,914
79,365
145,279
610,964
-
-
-
-
Incentive shares and options: Granted and vested during the year
Shares
There were no shares issued to key management personnel as part of the incentive plan during the year
ended 30 June 2016 (2015: nil). The shares issued to key management personnel as disclosed in the table
above were in lieu of Directors’ fees.
Options
There were no options granted to key management personnel as part of the incentive plan during the year
ended 30 June 2016 (2015: nil).
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Directors’ Report (continued)
Remuneration Report (audited) (continued)
The amounts disclosed in the table are the amounts recognised as an expense during the reporting period related to key management personnel, which including the
directors and executives.
(a)
Share holdings of Key Management Personnel
2016
Directors
Adrian Griffin
Patrick McManus
Chew Wai Chuen
Natalia Streltsova
Total
Executives
Lindsay Cahill
Robert Van der Laan
Total
Total Directors' and Executives’ Share holdings
Balance at 1 July
2015
Ordinary
Granted as
remuneration
Ordinary
On Exercise of
Options
Ordinary
Net change other
Ordinary
Balance at 30 June
2016
Ordinary
6,095,933
3,878,407
595,904
-
10,570,244
714,334
2,182,695
434,556
332,492
3,664,077
-
-
-
-
-
-
-
-
-
-
6,810,267
6,061,102
1,030,460
332,492
14,234,321
3,715,082
-
-
7,476,857
11,191,939
21,762,183
-
-
3,664,077
-
-
(40,000)
141,894
101,894
101,894
3,675,082
7,618,751
11,293,833
25,528,154
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Directors’ Report (continued)
Remuneration Report (audited) (continued)
2015
Directors
Adrian Griffin
Patrick McManus
George Sakalidis*
Gary Johnson*
Chew Wai Chuen
Total
Executives
Lindsay Cahill
Robert Van der Laan
Total
Balance at 1 July
2014
Ordinary
Granted as
remuneration
Ordinary
On Exercise of Options
Net change other
Ordinary
Ordinary
Balance at 30 June
2015
Ordinary
5,890,297
3,384,121
1,080,600
436,097
564,654
11,355,769
205,636
494,286
69,465
114,973
31,250
915,610
-
-
-
-
-
-
-
-
-
(380,788)
-
(380,788)
6,095,933
3,878,407
1,150,065
170,282
595,904
11,890,591
3,755,082
8,181,857
11,936,939
-
-
-
-
-
-
(40,000)
(705,000)
(745,000)
3,715,082
7,476,857
11,191,939
Total Directors' and Executives’ Share holdings
23,292,708
915,610
-
(1,125,788)
23,082,530
*George Sakalidis and Gary Johnson resigned as Non-Executive director effective 26 November 2014 and 30 June 2015, respectively.
(b) Partly Paid Contributing Shares of Key Management Personnel
2016
Directors
Adrian Griffin
Patrick McManus
Chew Wai Chuen
Natalia Streltsova
Total
Executives
Lindsay Cahill
Robert Van der Laan
Total
Balance at 1 July
2015
Partly Paid
Granted as
remuneration
Partly Paid
On Exercise of Options
Net change other
Partly Paid
Partly Paid
Balance at 30 June
2016
Partly Paid
2,895,317
1,567,323
-
-
4,462,640
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,895,317
1,567,323
-
-
4,462,640
1,877,542
3,520,929
5,398,471
-
-
-
-
-
- (1,230,919)
- (1,230,919)
1,877,542
2,290,010
4,167,552
Total Directors' and Executives’ Share holdings
9,861,111
-
- (1,230,919)
8,630,192
32
For personal use only
Remuneration Report (audited) (continued)
2015
Directors
Adrian Griffin
Patrick McManus
George Sakalidis*
Gary Johnson*
Total
Executives
Lindsay Cahill
Robert Van der Laan
Total
Potash West NL
A.C.N. 147 346 334
Directors’ Report (continued)
Balance at 1 July
2014
Partly Paid
Granted as
remuneration
Partly Paid
On Exercise of Options
Net change other
Partly Paid
Partly Paid
Balance at 30 June
2015
Partly Paid
2,895,317
1,567,323
454,705
-
4,917,345
-
-
-
-
-
1,877,542
3,520,929
5,398,471
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,895,317
1,567,323
454,705
-
4,917,345
1,877,542
3,520,929
5,398,471
10,315,816
Total Directors' and Executives Share holdings
*George Sakalidis and Gary Johnson resigned as Non-Executive director effective 26 November 2014 and 30 June 2015, respectively.
10,315,816
-
-
(c) Option holdings of Key Management Personnel
2016
Directors
Adrian Griffin
Patrick McManus
Chew Wai Chuen
Natalia Streltsova
Total
Executives
Lindsay Cahill
Robert Van der Laan
Total
Balance at 1
July 2015
Number
Granted as
remuneration
Number
Options
exercised
Number
Options
expired
Number
Balance at 30
June 2016
Number
Not
exercisable
Number
Exercisable
Number
200,000
750,000
-
-
950,000
-
-
-
-
-
-
250,000
250,000
-
-
-
-
-
-
-
-
-
-
-
-
(200,000)
(750,000)
-
-
(950,000)
-
(250,000)
(250,000)
(1,200,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total Directors' and Executives’ Share holdings
1,200,000
-
33
For personal use only
Potash West NL
A.C.N. 147 346 334
Directors’ Report (continued)
Balance at 1
July 2014
Granted as
remuneration
Options
exercised
Options
expired
Balance at 30
June 2015
Not
exercisable
Exercisable
Number
Number
Number
Number
Number
Number
Number
509,090
1,535,834
475,000
491,667
3,011,591
-
-
-
-
-
-
-
-
(309,090)
(785,834)
(275,000)
(291,667)
200,000
750,000
200,000
200,000
1,350,000
-
-
-
-
-
200,000
750,000
200,000
200,000
1,350,000
-
-
(1,661,591)
613,637
1,754,534
2,368,171
-
-
-
-
-
-
(613,637)
(1,504,534)
(2,118,171)
-
250,000
250,000
-
-
-
-
250,000
250,000
Remuneration Report (audited) (continued)
2015
Directors
Adrian Griffin
Patrick McManus
George Sakalidis*
Gary Johnson*
Total
Executives
Lindsay Cahill
Robert Van der Laan
Total
Total Directors' and Executives’ Share holdings
*George Sakalidis and Gary Johnson resigned as Non-Executive director effective 26 November 2014 and 30 June 2015, respectively.
-
5,379,762
-
(3,779,762)
1,600,000
-
1,600,000
34
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Potash West NL
A.C.N. 147 346 334
Directors’ Report (continued)
Remuneration Report (audited) (continued)
(d) Other Transactions with Key Management Personnel
Other transactions with key management personnel are set out below:
Consulting fees were paid to Strategic Metallurgy Pty Ltd, a company
of which Gary Johnson is a director and shareholder. Service fees are
agreed on an arm’s length transaction basis.
Corporate advisory were paid to Precious Capital Pte Ltd, a company
of which Chew Wai Chuen is a director and shareholder
The issue of 100,000 shares to Richmond Resources Pty Ltd, a
company of which Robert Van der Laan is a director and shareholder,
at $0.05 per share for transferring the tenements.
Fees were paid to Horn Resources Pty Ltd, a company of which
Robert Van der Laan is a director and shareholder.
Fees included investor relations, corporate advisory, office
accommodation, accounting staffs (excluding fees directly related to
Robert Van der Laan), administrative staffs and exploration staffs.
Service fees paid are considered to be on normal commercial terms
and condition.
30-Jun-16
$
30-Jun-15
$
-
157,270
9,708
196,300
-
5,000
213,100
222,808
337,769
696,339
End of Remuneration Report.
Auditor’s Independence Declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act
2001 is set out on page 36 and forms part of this report.
This report is made in accordance with a resolution of directors.
Patrick McManus
Managing Director
Perth
Dated: 29 September 2016
35
For personal use only
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 Potash West NL
As lead auditor for the audit of Potash West NL for the financial 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 audit; and
b. no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Potash West NL and the entities it controlled during the financial year.
Ernst & Young
V L Hoang
Partner
29 September 2016
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
MH:VH:POTASH:009
For personal use only
Potash West NL
A.C.N. 147 346 334
Corporate Governance Statement
The Company is committed to implementing the highest standards of corporate governance. In
determining what those high standards should involve the Company has considered the ASX Corporate
Governance Council’s Principles of Good Corporate Governance and Recommendations.
In line with the above, the Board has set out the way forward for the Company in its implementation of its
Principles of Good Corporate Governance and Recommendations. The approach taken by the board was
to set a blueprint for the Company to follow as it introduces elements of the governance process. Due to
the current size of the Company and the scale of its operations it is neither practical nor economic for the
adoption of all of the recommendations approved via the board charter. Where the Company has not
adhered to the recommendations it has stated that fact in this Corporate Governance Statement however
has set out a mandate for future compliance when the size of the Company and the scale of its operations
warrants the introduction of those recommendations. Date of last review and Board approval: 14
September 2015.
Principle /
Recommendation
Compliance Reference
Commentary
Principle 1: Lay solid foundations for management and oversight
Recommendation 1.1
listed entity
A
disclose:
should
Yes
a)
b)
the respective roles
and responsibilities of
its board and
management; and
those matters
expressly reserved to
the board and those
delegated to
management.
Board
Charter
Code of
Conduct,
Independent
Professional
Advice
Policy
Website
to
discharge
adequately
To add value to the Company the Board has been
formed so that it has effective composition, size and
it
commitment
responsibilities and duties. Directors are appointed
based on the specific skills required by the Company
and on their decision-making and judgment. The
Board’s role is to govern the Company rather than to
manage it. In governing the Company, the Directors
must act in the best interests of the Company as a
whole. It is the role of senior management to
manage
the
direction and delegations of the Board and the
responsibility of the Board to oversee the activities of
management in carrying out those delegated duties.
in accordance with
the Company
is
to drive
the performance of
In carrying out its governance role, the main task of
the Board
the
Company. The Board must also ensure that the
Company complies with all of
its contractual,
statutory and any other legal obligations, including
the requirements of any regulatory body. The Board
has
the successful
operations of the Company. To assist the Board
carry its functions, it has developed a Code of
Conduct to guide the Directors.
responsibility
final
the
for
In general, the Board is responsible for, and has the
authority to determine, all matters relating to the
policies, practices, management and operations of
the Company. It is required to do all things that may
be necessary to be done in order to carry out the
objectives of the Company.
Without intending to limit this general role of the
Board, the principal functions and responsibilities of
the Board include the following.
37
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Potash West NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Principle /
Recommendation
Compliance Reference
Commentary
Principle 1: Lay solid foundations for management and oversight (continued)
Recommendation 1.1 (continued)
• Leadership of the Organisation: overseeing
the Company and establishing codes that
reflect the values of the Company and guide
the conduct of the Board.
• Strategy Formulation: to set and review the
overall strategy and goals for the Company
and ensuring that there are policies in place to
govern the operation of the Company.
• Overseeing Planning Activities:
the
development of the Company’s strategic plan
and
policy
Compliance
the development of
• Shareholder Liaison:
the price or value of
ensuring effective
communications with shareholders through an
and
communications
appropriate
promoting participation at general meetings of
the Company as well as ensuring timely and
balanced disclosures of all material information
concerning the Company that a reasonable
person would expect to have a material effect
the entity’s
on
securities.
• Monitoring,
Risk
Management:
the
Company’s risk management, compliance,
control and accountability systems and
monitoring and directing the financial and
operational performance of the Company.
• Company Finances: approving expenses and
approving
acquisitions,
and monitoring
divestitures and financial and other reporting
the
along with ensuring
Company’s financial and other reporting.
reviewing
the
performance of Executive Officers and
senior
monitoring
management in their implementation of the
Company’s strategy.
performance
• Human
integrity of
Resources:
the
the
of
reviewing
to ensure
the effectiveness of
• Ensuring the Health, Safety and Well-Being of
Employees: in conjunction with the senior
management team, developing, overseeing
and
the
Company’s occupational health and safety
systems
the well-being of all
employees.
• Delegation
delegating
appropriate powers to the Managing Director
to
day-to-day
management of the Company and establishing
and determining the powers and functions of
the Committees of the Board.
of Authority:
effective
ensure
the
• Monitoring the effectiveness of the Company’s
corporate governance practices.
38
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Potash West NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Principle /
Recommendation
Compliance Reference
Commentary
Principle 1: Lay solid foundations for management and oversight (continued)
Recommendation 1.1 (continued)
Recommendation 1.2
A listed entity should:
a) undertake
appropriate checks
before appointing a
person, or putting
forward to security
holders a candidate
for election, as a
director; and
b) provide security
holders with all
material information
in its possession
relevant to a decision
on whether or not to
elect or re- elect a
director.
Full details of the Board’s and Company Secretary’s
roles and responsibilities are contained in the Board
Charter. The Board collectively and each Director has
the right to seek independent professional advice at
the Company’s expense, up to specified limits, (that
limit is currently set at $2,000), to assist them to carry
out their responsibilities.
Yes,
however the
full
information
of new
Directors for
election was
not included
in all notices
of meeting
but will be
included in
future
notices of
meeting
Director
Selection
Procedure
Website
the specific
Directors are appointed based on
governance skills required by the Company. Given the
size of the Company and the business that it operates,
the Company aims at all times to have at least one
Director with experience appropriate to the Company’s
operations. The Company’s current Directors all have
relevant experience in the operations. In addition,
Directors should have the relevant blend of personal
experience in:
• Accounting and financial management; and
• Director-level business experience.
Each member of the Board is committed to spending
sufficient time to enable them to carry out their duties
as a Director of the Company.
to
for
the Board,
is also given
In determining candidates
the
Nomination Committee follows a prescribed process
whereby it evaluates the mix of skills, experience and
expertise of the existing Board. In particular, the
Nomination Committee is to identify the particular skills
that will best increase the Board's effectiveness.
the balance of
Consideration
independent directors.
Potential candidates are
identified and, if relevant, the Nomination Committee
(or equivalent) recommends an appropriate candidate
for appointment to the Board. Any appointment made
by the Board is subject to ratification by shareholders
at the next general meeting. Each Non-Executive
Director has a written agreement with the Company
that covers all aspects of their appointment including
term,
remuneration,
disclosure of interests that may affect independence,
guidance on complying with the Company’s corporate
governance policies and the right to seek independent
advice, indemnity and insurance arrangements, rights
of access to the Company’s information and ongoing
confidentiality obligations as well as roles on the
Company’s committees.
time commitment
required,
39
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Potash West NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Principle /
Recommendation
Compliance Reference
Commentary
Principle 1: Lay solid foundations for management and oversight (continued)
Recommendation 1.2 (continued)
Each executive director’s agreement with
the
Company includes the same details as the non-
executive directors’ agreements but also includes a
and
position
termination clauses.
description,
hierarchy
reporting
is
responsible
The Nomination Committee
for
implementing a program to identify, assess and
enhance Director competencies. In addition, the
Nomination Committee puts in place succession
plans
to ensure an appropriate mix of skills,
experience, expertise and diversity are maintained on
the Board.
Recommendation 1.3
A listed entity should have
a written agreement with
each director and senior
executive setting out the
terms of their
appointment.
Recommendation 1.4
The company secretary of
a listed entity should be
accountable directly to the
board, through the chair,
on all matters to do with
the proper functioning of
the board.
Yes
Kept at
registered
office,
Independent
Professional
Advice
Policy
The Board collectively and each Director has the right
to seek independent professional advice at the
Company’s expense, up to specified limits, (that limit
is currently set at $2,000), to assist them to carry out
their responsibilities.
Yes
Board
Charter
Website
Full details of the Board’s and Company Secretary’s
roles and responsibilities are contained in the Board
Charter.
40
For personal use only
Potash West NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Principle /
Recommendation
Compliance Reference
Commentary
Principle 1: Lay solid foundations for management and oversight (continued)
Recommendation 1.5
A listed entity should:
a) have a diversity policy
Yes
which includes
requirements for the
board or a relevant
committee of the
board to set
measurable
objectives for
achieving gender
diversity and to
assess annually both
the objectives and the
entity’s progress in
achieving them;
b) disclose that policy or
a summary of it; and
Diversity
Policy
Website
The Company recognises and respects the value of
diversity at all levels of the organisation. The
Company
to setting measurable
objectives for attracting and engaging women at the
Board level, in senior management and across the
whole organisation.
is committed
The Diversity Policy was re-adopted during the year
and the Company set the following objectives for the
employment of women:
•
•
•
to the Board – 25% by 2017
to senior management – no target set
to the organisation as a whole – 30% by 2017
As at the date of this report, the Company has the
following proportion of women appointed:
•
•
•
to the Board – 25%
to senior management (including Company
Secretary) – 25%
to the organisation as a whole – 30%
that
The Company recognises
the mining and
exploration industry is intrinsically male dominated in
many of the operational sectors and the pool of
women with appropriate skills will be limited in some
instances. The Company recognises that diversity
extends
to matters of age, disability, ethnicity,
marital/family status, religious/cultural background
and sexual orientation.
the
Company will seek to identify suitable candidates for
positions from a diverse pool. The addition of Chew
Wai Chuen to the Board provides a different cultural
view to the operations of the Company.
Where possible,
41
For personal use only
Potash West NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Principle /
Recommendation
Compliance Reference
Commentary
Principle 1: Lay solid foundations for management and oversight (continued)
Recommendation 1.5 (continued)
c) disclose as at the
end of each
reporting period the
measurable
objectives for
achieving gender
diversity set by the
board or a relevant
committee of the
board in accordance
with the entity’s
diversity policy and
its progress towards
achieving them, and
either:
1)
the respective
proportions of
men and women
on the board, in
senior executive
positions and
across the whole
organisation
(including how
the entity has
defined “senior
executive” for
these purposes);
or
if the entity is a
“relevant
employer” under
the Workplace
Gender Equality
Act, the entity’s
most recent
“Gender Equality
Indicators”, as
defined in and
published under
that Act.
2)
42
For personal use only
Potash West NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Principle /
Recommendation
Compliance Reference
Commentary
Principle 1: Lay solid foundations for management and oversight (continued)
Board,
Committee
& Individuals
Performance
Evaluation
Procedure
Website
It is the policy of the Board to conduct evaluation of
its performance. The objective of this evaluation is to
provide best practice corporate governance to the
Company. During the financial year an evaluation of
the performance of the Board and its members was
formally carried out. From this evaluation, a few
areas for improvement were noted but the important
conclusion drawn was that there was no overlapping
skillset in the Board.
Board,
Committee
& Individuals
Performance
Evaluation
Procedure
Website
It is the policy of the Board to conduct evaluation of
individuals’ performance. The objective of this
evaluation is to provide best practice corporate
governance to the Company. During the financial
year an evaluation of
the
individuals was formally carried out. From this
evaluation, a few areas for improvement were noted.
the performance of
Recommendation 1.6:
A listed entity should:
a) have and disclose a
Yes
process for
periodically evaluating
the performance of
the board, its
committees and
individual directors;
and
b) disclose, in relation
to each reporting
period, whether a
performance
evaluation was
undertaken in the
reporting period in
accordance with that
process.
Recommendation 1.7:
A listed entity should:
a) have and disclose a
Yes
process for
periodically evaluating
the performance of
its senior executives;
and
b) disclose, in relation
to each reporting
period, whether a
performance
evaluation was
undertaken in the
reporting period in
accordance with that
process.
43
For personal use only
Potash West NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Principle /
Recommendation
Compliance Reference
Commentary
Principle 2: Structure the board to add value
Recommendation 2.1
Yes
Nomination
Committee
Charter,
Independent
Professional
Advice
Policy
Website
The role of the Nomination Committee is to help
achieve a structured Board that adds value to the
Company by ensuring an appropriate mix of skills are
present in Directors on the Board at all times. The
Nomination Committee consists of three Non-
Executive directors, being Natalia Streltsova, Adrian
Griffin and Chew Wai Chuen and the Company
Secretary. The Chair of the Nomination Committee is
Natalia Streltsova, an independent director. The
Nomination Committee met once during the year and
all members at the time were present.
including
The responsibilities of the Nomination Committee
include devising criteria
for Board membership,
regularly reviewing the need for various skills and
experience on the Board and identifying specific
individuals for nomination as Directors for review by
the Board. The Nomination Committee also oversees
management
the
succession plans
Managing Director and his/her direct reports and
the Board’s performance and make
evaluate
recommendations for the appointment and removal of
Directors.
remuneration,
expectations, terms, the procedures for dealing with
conflicts of interest and the availability of independent
professional advice are clearly understood by all
Directors, who are experienced public company
Directors. The Board collectively and each Director
has the right to seek independent professional advice
at the Company’s expense, up to specified limits,
(that limit is currently set at $2,000), to assist them to
carry out their responsibilities.
Matters
such as
The board of a listed
entity should:
a) have a nomination
committee which:
1) has at least three
members, a
majority of whom
are independent
directors; and
is chaired by an
independent
director, and
disclose:
the charter of the
committee;
the members of
the committee;
and
3)
4)
2)
b)
5) as at the end of
each reporting
period, the
number of times
the committee
met throughout
the period and the
individual
attendances of
the members at
those meetings;
or
if it does not have a
nomination
committee, disclose
that fact and the
processes it employs
to address board
succession issues
and to ensure that
the board has the
appropriate balance
of skills, knowledge,
experience,
independence and
diversity to enable it
to discharge its
duties and
responsibilities
effectively.
44
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Potash West NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Principle /
Recommendation
Compliance
Reference
Commentary
Principle 2: Structure the board to add value (continued)
Recommendation 2.2
A listed entity should
have and disclose a
board skills matrix setting
out the mix of skills and
diversity that the board
currently has or is looking
to achieve in its
membership.
Recommendation 2.3
Yes
Internal
management
document
The Company has reviewed the skill set of its Board
to determine where the skills lie and any relevant
gaps in skills shortages. The Company is working
towards filling these gaps through professional
development initiatives as well as seeking to identify
suitable Board candidates for positions from a
diverse pool.
A listed entity should
disclose:
a)
the names of the
directors considered
by the board to be
independent
directors;
if a director has an
interest, position,
association or
relationship of the
type described in Box
2.3 but the board is
of the opinion that it
does not
compromise the
independence of the
director, the nature
of the interest,
position, association
or relationship in
question and an
explanation of why
the board is of that
opinion; and
the length of service
of each director.
b)
c)
Yes
Board
Charter,
Independence
of Directors
Assessment
Website
The Company recognises the importance of Non-
Executive Directors and the external perspective
and advice that Non-Executive Directors can offer.
An Independent Director:
1.
2.
is a Non-Executive Director and;
is not a substantial shareholder of the
Company or an officer of, or otherwise
associated directly with, a substantial
shareholder of the Company;
3. within the last three years has not been
employed in an executive capacity by the
Company or another group member, or
been a Director after ceasing to hold any
such employment;
4. within the last three years has not been a
principal of a material professional adviser
or a material consultant to the Company or
another group member, or an employee
materially associated with
the service
provided;
is not a material supplier or customer of the
Company or another group member, or an
officer of or otherwise associated directly or
indirectly with a material supplier or
customer;
5.
6. has no material contractual relationship
with the Company or other group member
other than as a Director of the Company;
7. has not served on the Board for a period
which could, or could
reasonably be
perceived to, materially interfere with the
Director’s ability to act in the best interests
of the Company; and
45
For personal use only
Potash West NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Principle /
Recommendation
Compliance
Reference
Commentary
Principle 2: Structure the board to add value (continued)
Recommendation 2.3 (continued)
8.
is free from any interest and any business
or other relationship which could, or could
reasonably be perceived
to, materially
interfere with the Director’s ability to act in
the best interests of the Company.
Materiality for the purposes of points 1 to 8 above is
determined on the basis of both quantitative and
qualitative aspects with regard to the independence
of Directors. An amount over 5% of the Company’s
expenditure or 10% of the particular directors
annual gross income is considered to be material.
A period of more than six years as a Director would
assessing
be
independence.
considered material
when
Adrian Griffin (appointed 12 November 2010) is a
the
Non-Executive Director and Chairman of
Company and meets the Company’s criteria for
independence. Although Adrian Griffin has entered
into a profit á prendre re mineral interest rights with
to be
the Company, he
independent as the agreement is not considered to
be material as
is
insignificant to both parties. His experience and
knowledge of the Company makes his contribution
to the Board such that it is appropriate for him to
remain on
in his position as
Chairman.
the proportion vended
is still considered
the Board and
in
Chew Wai Chuen (appointed 26 November 2014) is
a Non-Executive Director of the Company and
meets the Company’s criteria for independence. His
experience and knowledge of the Company makes
is
his contribution
appropriate for him to remain on the Board and in
his position as a Non-Executive Director.
the Board such
that
to
it
Natalia Streltsova (appointed 30 June 2015) is a
Non-Executive Director of the Company and meets
the Company’s criteria for independence. Her
experience and knowledge of the Company makes
her contribution
is
appropriate for her to remain on the Board and in his
position as a Non-Executive Director.
the Board such
that
to
it
Patrick McManus (appointed 23 November 2010) is
an Executive Director of the Company and does not
meet the Company’s criteria for independence.
However, his experience and knowledge of the
Company makes his contribution to the Board such
that it is appropriate for him to remain on the Board.
46
For personal use only
Potash West NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Principle /
Recommendation
Compliance
Reference
Commentary
Principle 2: Structure the board to add value (continued)
Recommendation 2.4
A majority of the board of
a listed entity should be
independent directors.
Yes
Independence
of Directors
Assessment
Website
The Board has a majority of Directors who are
independent.
Recommendation 2.5
The chair of the board of
a listed entity should be
independent director
an
and, in particular, should
not be the same person
as the CEO of the entity.
Recommendation 2.6
for
A listed entity should have
a program
inducting
new directors and provide
appropriate
professional
development opportunities
for directors
to develop
and maintain the skills and
knowledge
to
perform
role as
directors effectively.
needed
their
Yes
Independence
of Directors
Assessment
Website
The Chairperson is an independent Director who is
not the CEO / Managing Director.
Yes
Director
Induction
Program,
Ongoing
Education
Framework
Website
It is the policy of the Company that each new
Director undergoes an induction process in which
they are given a full briefing on the Company.
Where possible this includes meetings with key
executives, tours of the premises, an induction
package and presentations. Information conveyed
to new Directors include:
• details of the roles and responsibilities of a
•
as
Director;
formal policies on Director appointment as
contribution
well
expectations;
• a copy of
the Corporate Governance
Statement, Charters, Policies and Memos
and
conduct
and
• a copy of the Constitution of the Company.
In order to achieve continuing improvement in Board
performance, all Directors are encouraged
to
undergo continual professional development. The
Board has implemented an Ongoing Education
Framework.
47
For personal use only
Potash West NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Principle /
Recommendation
Compliance
Reference
Commentary
Principle 3: Act ethically and responsibly
Recommendation 3.
A listed entity should:
a) have a code of
conduct for its
directors, senior
executives and
employees; and
b) disclose that code or
a summary of it.
Yes
Code of
Conduct
Website
As part of its commitment to recognising the
legitimate interests of stakeholders, the Company
has established a Code of Conduct to guide
compliance with legal and other obligations to
legitimate stakeholders. These stakeholders include
employees,
government
authorities, creditors and the community as whole.
customers,
clients,
Principle 4: Safeguard integrity in corporate reporting
Recommendation 4.1
audit
The board of a
listed
entity should: (a) have
committee
an
which:
a) has at least three
members, all of
whom are non-
executive directors
and a majority of
whom are
independent
directors; and
1)
is chaired by an
independent
director, who is
not the chair of
the board,
and disclose:
2) the charter of the
5)
3)
committee;
the relevant
qualifications and
4) experience of the
members of the
committee; and
in relation to each
reporting period,
the number of
times the
committee met
throughout the
period and the
individual
attendances of
the members at
those meetings;
or
Yes
Audit and
Risk
Committee
Charter
Website
(Chair of
The Audit and Risk Committee consists of Barry
the Audit and Risk
Woodhouse
Committee), Adrian Griffin, Natalia Streltsova and
Chew Wai Chuen who are
independent Non-
Executive Directors with experience relevant to
being a member of the Audit and Risk Committee.
Natalia Streltsova is a graduate of AICD. She has
had experience with audit and financial compliance
as part of her
responsibilities with various
companies. Adrian Griffin’s financial experience is
limited to practical application as a director of a
number of private and public companies over a
period of 30 years. Chew Wai Chuen is a Qualified
Chartered Financial Planner, holding BBA and MBA
qualifications. He has had experience with financial
compliance as part of his engagement with various
companies. The Audit and Risk Committee met
twice during the year and all members at the time
were present.
48
For personal use only
Potash West NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Principle /
Recommendation
Compliance
Reference
Commentary
Principle 4: Safeguard integrity in corporate reporting (continued)
Recommendation 4.1 (continued)
b)
if it does not have an
audit committee,
disclose that fact
and the processes it
employs that
independently verify
and safeguard the
integrity of its
corporate reporting,
including the
processes for the
appointment and
removal of the
external auditor and
the rotation of the
audit engagement
partner.
Recommendation 4.2
the
that
that,
listed
The board of a
it
entity should, before
approves
entity’s
financial statements for a
financial period, receive
from its C E O and CFO a
in
declaration
their
financial
opinion,
the
records of the entity have
been properly maintained
and
financial
the
statements comply with
appropriate
the
accounting
standards
and give a true and fair
financial
the
view of
position and performance
of the entity and that the
opinion has been formed
on the basis of a sound
system
risk
management and internal
control which is operating
effectively.
of
to
the Board
The Managing Director and the Chief Financial
Officer provide a declaration
in
accordance with section 295A of the Corporations
Act for each financial report and assure the Board
that such declaration is founded on a sound system
of risk management and internal control and that the
system
in all material
is operating effectively
respects in relation to financial reporting risks.
Yes
Kept at
registered
office
49
For personal use only
Potash West NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Principle /
Recommendation
Compliance
Reference
Commentary
Principle 4: Safeguard integrity in corporate reporting (continued)
Recommendation 4.3
A listed entity that has an
AGM should ensure that
its external auditor attends
its AGM and is available
to answer questions from
security holders relevant
to the audit.
Yes
AGM
The external auditor is invited to attend every AGM
for the purpose of answering questions from security
holders relevant to the audit.
Principle 5: Make timely and balanced disclosure
Recommendation 5.1
A listed entity should:
a) have a written policy
for complying with its
continuous disclosure
obligations under the
Listing Rules; and
b) disclose
that policy
or a summary of it.
Yes
Continuous
Disclosure
Policy
Website
The Board has designated the Company Secretary
as the person responsible for overseeing and
coordinating disclosure of information to the ASX as
well as communicating with the ASX. In accordance
with
the Company
immediately notifies the ASX of information:
the ASX Listing Rules
the price or value of
1. concerning the Company that a reasonable
person would expect to have a material
effect on
the
Company’s securities; and
that would, or would be likely to, influence
persons who commonly invest in securities
in deciding whether to acquire or dispose of
the Company’s securities.
2.
Principle 6: Respect the rights of security holders
Recommendation 6.1
listed entity should
A
provide information about
itself and its governance
its
to
website.
investors
via
Yes
Website
Disclosure
Policy
Website
The Company’s website includes the following:
• Corporate Governance policies, procedures,
charters, programs, assessments, codes
and frameworks
• Names and biographical details of each of
its directors and senior executives
• Constitution
• Copies of annual, half yearly and quarterly
reports
• ASX announcements
• Copies of notices of meetings of security
holders
• Media releases
• Overview of
the Company’s
current
business, structure and history
50
For personal use only
Potash West NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Principle /
Recommendation
Compliance
Reference
Commentary
Principle 6: Respect the rights of security holders (continued)
Recommendation 6.1 (continued)
• Details of upcoming meetings of security
holders
• Summary of the terms of the securities on
issue
• Historical market price information of the
securities on issue
• Contact details for the share registry and
media enquiries
• Share registry key security holder forms
Recommendation 6.2
A
listed entity should
design and implement an
relations
investor
facilitate
program
two-way
effective
communication
with
investors.
to
Yes
Shareholder
Communication
Policy, Social
Media Policy
Website
Recommendation 6.3
A
listed entity should
disclose the policies and
processes it has in place
to facilitate and encourage
participation at meetings
of security holders.
Yes
Shareholder
Communication
Policy
Website
51
The Company
its
shareholders and to facilitate the effective exercise
of those rights the Company is committed to:
rights of
respects
the
•
through
effectively
with
communicating
shareholders
the
market via ASX, information mailed to
shareholders and the general meetings of
the Company;
releases
to
•
• giving shareholders
ready access
the Company and
to
balanced and understandable information
about
corporate
proposals;
requesting the external auditor to attend
the annual general meeting and be
available to answer shareholder questions
about the conduct of the audit and the
preparation and content of the auditor’s
report of future Annual Reports.
The Company also makes available a telephone
number and email address for shareholders to
make enquiries of the Company.
the
respects
rights of
The Company
its
shareholders and to facilitate the effective exercise
of those rights the Company is committed to
making it easy for shareholders to participate in
The
shareholder meetings of the Company.
Company also makes available a
telephone
number and email address for shareholders to
make enquiries of the Company.
For personal use only
Potash West NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Principle /
Recommendation
Compliance
Reference
Commentary
Principle 6: Respect the rights of security holders (continued)
Recommendation 6.4
holders
to
A listed entity should give
the
security
receive
option
from
communications
send
and
to,
communications
the
its security
entity and
registry electronically.
Yes
Shareholder
Communication
Policy
Website
Shareholders are regularly given the opportunity to
receive communications electronically.
Principle 7: Recognise and manage risk
Recommendation 7.1
The board of a
entity should:
a) have a committee or
listed
No
committees to
oversee risk, each
of which:
1) has at least three
members, a
majority of whom
are independent
directors; and
is chaired by an
independent
director, and
disclose:
the charter of the
committee;
the members of
the committee;
and
2)
4)
3)
5) as at the end of
each reporting
period, the
number of times
the committee
met throughout
the period and
the individual
attendances of
the members at
those meetings;
or
The Board has not established a separate Risk
Committee, and therefore it is not structured in
accordance with Recommendation 7.1. Given the
current size and composition of the Board, the
Board believes that there would be no efficiencies
gained by establishing a separate Risk Committee.
Accordingly, the Board performs the role of Risk
Committee. Items that are usually required to be
discussed by a Risk Committee are discussed at a
separate meeting when required. When the Board
convenes as the Risk Committee it carries out
those functions which are delegated to it in the
Company’s Risk Committee Charter. The Board
deals with any conflicts of interest that may occur
when convening
the Risk
Committee by ensuring that the Director with
conflicting interests is not party to the relevant
discussions.
the capacity of
in
The Audit and Risk Committee met twice during the
year. Risk identification and risk management
discussions occurred at several Board meetings
throughout the year. To assist the Board to fulfil its
function as the Risk Committee, the Company has
adopted a Risk Management Policy.
Risk
Management
Policy
Website
52
For personal use only
Potash West NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Principle /
Recommendation
Compliance
Reference
Commentary
Principle 7: Recognise and manage risk (continued)
Recommendation 7.1 (continued)
b)
if it does not have a
risk committee or
committees that
satisfy (a) above,
disclose that fact
and the processes it
employs for
overseeing the
entity’s risk
management
framework.
Recommendation 7.2
board
The
a
committee of the board
should:
or
a) review the
entity’s risk
management
framework at
least annually to
satisfy itself that
it continues to be
sound; and
b) disclose, in
relation to each
reporting period,
whether such a
review has taken
place.
Yes
Risk
Management
Policy
Website
The Company’s Risk Management Policy states
that the Board as a whole is responsible for the
oversight of the Company’s risk management and
control
the
The objectives of
Company’s Risk Management Strategy are to:
framework.
identify risks to the Company;
•
• balance risk to reward;
• ensure regulatory compliance is achieved;
and
• ensure senior executives, the Board and
investors understand the risk profile of the
Company.
The Board monitors
arrangements including:
risk
through
various
•
regular Board meetings;
•
share price monitoring;
• market monitoring; and
•
regular review of financial position and
operations.
is considered a sound strategy
The Company has developed a Risk Register in
order to assist with the risk management of the
Company. The Company’s Risk Management
Policy
for
addressing and managing risk. During the year,
management regularly reported to the Board on the
following categories of risks affecting the Company
as part of the Company’s systems and processes
for managing material business risks: operational,
financial reporting, sovereignty and market-related
risks.
53
For personal use only
Potash West NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Principle /
Recommendation
Compliance
Reference
Commentary
Principle 7: Recognise and manage risk (continued)
Recommendation 7.2 (continued)
risk management
The Board is responsible for the oversight of the
and
Company’s
control
framework. Responsibility
for control and risk
management is delegated to the appropriate level
of management within the Company with the
Managing Director and Chief Financial Officer (or
equivalent) having ultimate responsibility to the
the risk management and control
Board
framework. Arrangements put in place by the Board
to monitor risk management include:
for
•
regular reporting to the Board in respect of
operations and the financial position of the
Company;
• where appropriate
the appointment of
appropriately skilled consultants to provide
independent assessment of operational
results, proposals and activities; and
• Use of a risk register to assist with risk
management.
Recommendation 7.3
b)
listed entity should
A
disclose:
a)
if it has an internal
audit function, how
the function is
structured and what
role it performs; or
if it does not have an
internal audit
function, that fact
and the processes it
employs for
evaluating and
continually improving
the effectiveness of
its risk management
and internal control
processes.
which
overseeing
When the Audit and Risk Committee convenes it
carries out those functions which are delegated to it
in the Company’s Audit and Risk Committee
Charter
the
include
establishment and implementation by management
of a system for identifying, assessing, monitoring
the
and managing material
Company, which includes the Company’s internal
compliance and control systems.. Due to the
nature and size of the Company's operations, and
the Company’s ability to derive substantially all of
the benefits of an
internal audit
function, the expense of an independent internal
auditor is not considered to be appropriate.
independent
throughout
risk
No
Audit and Risk
Committee
Charter
Website
54
For personal use only
Potash West NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Principle /
Recommendation
Compliance
Reference
Commentary
Principle 7: Recognise and manage risk (continued)
Recommendation 7.4
A
listed entity should
disclose whether it has
any material exposure to
economic, environmental
and social sustainability
risks and, if it does, how
it manages or intends to
manage those risks.
Yes
Corporate
Governance
Statement
The Company has considered
its economic,
environmental and social sustainability risks by way
of internal review and has concluded that it is
subject to material economic, environmental and
social sustainability risks, and that is recognised
and managed by the risk management register.
Principle 8: Remunerate fairly and responsibly
Recommendation 8.1
listed
The board of a
entity should:
a) have a remuneration
committee which:
1) has at least three
members, a
majority of whom
are independent
directors; and
is chaired by an
independent
director,
and disclose:
the charter of the
committee;
the members of
the committee;
and
3)
2)
4)
5) as at the end of
each reporting
period, the
number of times
the committee
met throughout
the period and
the individual
attendances of
the members at
those meetings;
or
director.
responsibilities
The Chair of
remuneration, setting
The role of the Remuneration Committee is to
assist the Board in fulfilling its responsibilities in
respect of establishing appropriate remuneration
levels and incentive policies for employees. The
Remuneration Committee consists of three Non-
Executive Directors, being Natalia Streltsova,
Adrian Griffin and Chew Wai Chuen and the
Company Secretary.
the
Remuneration Committee
isAdrian Griffin, an
independent
The Remuneration
Committee met once during the financial year
ended and all members at the time were present.
the Remuneration
The
of
for senior
include setting policies
Committee
officers’
terms and
the
the Managing
conditions of employment
Director, reviewing and making recommendations
to the Board on the Company’s incentive schemes
and superannuation arrangements, reviewing the
remuneration of both Executive and Non-Executive
Directors, recommendations for remuneration by
gender and making recommendations on any
proposed changes and undertaking reviews of the
Managing Director’s performance, including, setting
with the Managing Director goals and reviewing
progress in achieving those goals. The Board
collectively and each Director has the right to seek
independent professional advice at the Company’s
expense, up to specified limits, (that limit is
currently set at $2,000), to assist them to carry out
their responsibilities.
for
Yes
Remuneration
Committee
Charter,
Independent
Professional
Advice Policy
Website
55
For personal use only
Potash West NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Principle /
Recommendation
Compliance
Reference
Commentary
Principle 8: Remunerate fairly and responsibly (continued)
Recommendation 8.1 (continued)
b)
if it does not have a
remuneration
committee, disclose
that fact and the
processes it
employs for setting
the level and
composition of
remuneration for
directors and senior
executives and
ensuring that such
remuneration is
appropriate and not
excessive.
Recommendation 8.2
and
listed entity should
A
its
separately disclose
practices
policies
the
regarding
remuneration of non-
executive directors and
of
remuneration
the
executive directors and
other senior executives.
Recommendation 8.3
A listed entity which has
an equity-based
remuneration scheme
should:
a) have a policy on
whether participants
are permitted to
enter into
transactions
(whether through
the use of
derivatives or
otherwise) which
limit the economic
risk of participating
in the scheme; and
b) disclose that policy or
a summary of it.
Yes
Remuneration
Policy
Website
Non-Executive Directors are to be paid their fees
out of the maximum aggregate amount approved
by shareholders for the remuneration of Non-
Executive Directors.
Managing Director
remuneration is set by the Board with the executive
director in question not present. Full details
regarding the remuneration of Directors has been
included in the Remuneration Report within the
Annual Report.
Executives and Non-Executive Directors are
prohibited
transactions or
arrangements which limit the economic risk of
participating in unvested entitlements.
from entering
into
Yes
Remuneration
Policy
Website
56
For personal use only
Potash West NL
A.C.N. 147 346 334
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2016
For the year ended
30 June 2016
For the year ended
30 June 2015
Note
$
$
INCOME
Other income
Gain on disposal of financial assets
Option and exclusivity fee received
Interest
Government Grant
TOTAL INCOME
EXPENSES
Impairment of financial assets
Administration
Depreciation
Share-based payments
Exploration
Legal
Occupancy
Remuneration (excluding equity based payments)
Share of net losses of associates
LOSS BEFORE INCOME TAX
INCOME TAX EXPENSE
13
25
13
14
19
12
4
-
2,834,320
98,649
14,762
179,094
3,126,825
969,773
574,181
12,241
151,858
990,853
51,096
60,000
501,471
-
38,147
-
-
24,010
-
62,157
-
743,853
15,026
341,635
685,806
72,069
62,000
662,764
350,007
(184,648)
(2,871,003)
-
-
NET LOSS FOR THE YEAR
(184,648)
(2,871,003)
OTHER COMPREHENSIVE INCOME
Items that may be subsequently reclassified to
profit or loss:
Available for sale financial assets
- Current year losses
- Reclassified to profit or loss
TOTAL COMPREHENSIVE LOSS FOR THE
YEAR
LOSS FOR THE YEAR ATTRIBUTABLE TO:
Members of the controlling entity
Non controlling interest
TOTAL COMPREHENSIVE LOSS
ATTRIBUTABLE TO:
Members of the controlling entity
Non controlling interest
(969,773)
969,773
-
-
(184,648)
(2,871,003)
(181,904)
(2,744)
(184,648)
(181,904)
(2,744)
(184,648)
(2,859,357)
(11,646)
(2,871,003)
(2,859,357)
(11,646)
(2,871,003)
Basic and diluted loss per share (cents per share)
7
(0.07)
(1.33)
The consolidated statement of comprehensive income should be read in conjunction with the
accompanying notes.
57
For personal use only
Potash West NL
A.C.N. 147 346 334
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2016
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other assets
Assets included in disposal group classified as held for sale
Total Current Assets
NON CURRENT ASSETS
Exploration and evaluation
Investment in associate
Financial assets
Plant and equipment
Total Non Current Assets
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Liabilities included in disposal group classified as held for
sale
Provisions
Total Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
Non-controlling interest
TOTAL EQUITY
As at 30 June
2016
$
As at 30 June
2015
$
Note
8
9
10
25
11
12
13
14
15
25
16
17
18
487,547
32,486
-
152,290
672,323
2,500,000
-
1,939,547
41,272
4,480,819
5,153,142
1,542,256
75,638
13,860
-
1,631,754
2,500,000
-
75,000
53,513
2,628,513
4,260,267
429,447
390,327
151,351
69,870
650,668
650,668
-
60,210
450,537
450,537
4,502,474
3,809,730
17,634,147
648,934
(13,766,217)
4,516,864
(14,390)
4,502,474
16,776,781
628,908
(13,584,313)
3,821,376
(11,646)
3,809,730
The consolidated statement of financial position should be read in conjunction with the accompanying notes.
58
For personal use only
Potash West NL
A.C.N. 147 346 334
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2016
Issued
Capital
Accum-
ulated
Losses
Share Based
Payment
Reserve
AFS
Reserve
$
$
$
$
Non-
controlling
interest
$
Total
$
At 1 July 2014
Note
Opening Balance
12,812,815
(10,724,956)
465,158
Loss for the year
Other comprehensive income (net of
tax)
Total comprehensive loss for the
year
(net of tax)
Transactions with owners in their
capacity as owners:
Shares issued
Share issue transaction costs
Share based payments
-
-
-
(2,859,357)
-
(2,859,357)
4,283,160
(319,194)
-
-
-
-
-
-
-
-
-
163,750
Balance at 30 June 2015
16,776,781
(13,584,313)
628,908
-
-
-
-
-
-
-
-
-
2,553,017
(11,646)
(2,871,003)
-
-
(11,646)
(2,871,003)
-
-
-
4,283,160
(319,194)
163,750
(11,646)
3,809,730
The consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2016
Issued
Capital
Accum-
ulated
Losses
Share Based
Payment
Reserve
AFS
Reserve
$
$
$
$
Non-
controlling
interest
$
Total
$
Balance at 1 July 2015
16,776,781
(13,584,313)
628,908
Loss for the year
Other comprehensive income (net
of tax):
Available for sale financial asset losses
Reclassification to profit or loss
Total comprehensive loss for the
year
(net of tax)
Transactions with owners in their
capacity as owners:
Shares issued
Share issued transaction costs
Share based payments
-
-
-
-
(181,904)
-
-
(181,904)
761,000
(96,866)
193,232
-
-
-
-
-
-
-
-
-
20,026
Balance as at 30 June 2016
17,634,147
(13,766,217)
648,934
-
-
(11,646)
3,809,730
(2,744)
(184,648)
(969,773)
969,773
-
-
(969,773)
969,773
-
-
-
-
-
(2,744)
(184,648)
-
-
-
761,000
(96,866)
213,258
(14,390)
4,502,474
The consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2016
OPERATING ACTIVITIES
Payments to suppliers and employees
Government grant received
Interest received
NET CASH FLOWS USED IN OPERATING ACTIVITIES
INVESTING ACTIVITIES
Option and exclusivity fees received
Payment for equity investments
NET CASH FLOWS FROM/(USED IN) INVESTING
ACTIVITIES
FINANCING ACTIVITIES
Proceeds from issue of shares
Share issue costs
NET CASH FLOWS FROM FINANCING ACTIVITIES
For the year
ended 30
June 2016
For the year
ended 30 June
2015
Note
$
$
(2,011,346)
179,094
14,762
(1,817,490)
(2,420,857)
-
24,010
(2,396,847)
23
250,000
-
250,000
-
(75,000)
(75,000)
761,000
(96,865)
664,135
4,100,278
(250,445)
3,849,833
NET (DECREASE)/INCREASE IN CASH AND CASH
EQUIVALENTS
Cash and cash equivalents at the beginning of the year
CASH AND CASH EQUIVALENTS AT THE END OF THE
YEAR
(903,355)
1,377,986
1,542,256
164,270
8
638,901
1,542,256
The consolidated statement of cash flows should be read in conjunction with the accompanying notes.
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Notes to Financial Statements
Note 1: Corporate information
The financial report of Potash West NL for the year ended 30 June 2016 was authorised for issue in
accordance with a resolution of directors on 23 September 2016.
Potash West NL is a company limited by shares incorporated in Australia whose share are publicly traded
on the Australian Securities Exchange (ASX), OTC Pink and the Frankfurt Stock Exchange.
East Exploration Pty Ltd is a privately owned propriety company limited by shares incorporated in Australia.
The nature of operations and principal activities of the Consolidated Entity are described in the directors’
report.
Note 2: Statement of significant accounting policies
(a) 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, Accounting Standards and Interpretations and complies with
other requirements of the law. Potash West NL is a for-profit entity for the purpose of preparing the financial
statements.
The accounting policies detailed below have been consistently throughout the year presented unless
otherwise stated.
The financial report has also been prepared on a historical cost basis. Cost is based on the fair values of the
consideration given in exchange for assets.
The financial report is presented in Australian dollars.
The company is a listed public company, incorporated in Australia and operating in Australia. The entity’s
principal activities are mineral exploration.
(b)
Adoption of new and revised standards
The Company has adopted the following new and amended Australian Accounting Standard and AASB
Interpretations for the reporting year ended 30 June 2016:
Reference
Title
AASB 2013-9
Amendments to Australian Accounting Standards – Conceptual
Framework, Materiality and Financial Instruments
The Standard contains three main parts and makes
amendments to a number of Standards and Interpretations.
Part A of AASB 2013-9 makes consequential amendments
arising from the issuance of AASB CF 2013-1.
Part B makes amendments to particular Australian Accounting
Standards to delete references to AASB 1031 and also makes
minor editorial amendments to various other standards.
Application
date of
standard
Application
date for Group
1 January 2015 1 July 2015
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Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(b) Adoption of new and revised standards (continued)
Reference
Title
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.
Application
date of
standard
Application
date for Group
1 July 2015
1 July 2015
The adoption of these new and revised standards has not resulted in any significant changes to the
Company's accounting policies or to the amounts reported for the current or prior periods.
Accounting Standards and Interpretations issued but not yet effective:
Reference
Title
Application
date of
standard*
Application
date for Group*
AASB 9
Financial Instruments
1 January 2018 1 July 2018
AASB 2014-3
AASB 2014-4
Amendments to Australian Accounting Standards –
Accounting for Acquisitions of Interests in Joint
Operations
[AASB 1 & AASB 11]
Clarification of Acceptable Methods of Depreciation
and Amortisation (Amendments to
AASB 116 and AASB 138)
1 January 2016 1 July 2016
1 January 2016 1 July 2016
AASB 15
Revenue from Contracts with Customers
1 January 2018 1 July 2018
AASB 1057
Application of Australian Accounting Standards
1 January 2016 1 July 2016
AASB 2014-9
AASB 2014-10
AASB 2015-1
AASB 2015-2
Amendments to Australian Accounting Standards –
Equity Method in Separate Financial Statements
1 January 2016 1 July 2016
Amendments to Australian Accounting Standards –
Sale or Contribution of Assets between an Investor and
its Associate or Joint Venture
Amendments to Australian Accounting Standards –
Annual Improvements to Australian Accounting
Standards 2012–2014 Cycle
Amendments to Australian Accounting Standards –
Disclosure Initiative: Amendments to AASB 101
1 January 2018 1 July 2018
1 January 2016 1 July 2016
1 January 2016 1 July 2016
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Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(b) Adoption of new and revised standards (continued)
Reference
Title
AASB 2015-5
AASB 2015-6
AASB 2015-7
AASB 2015-9
Amendments to Australian Accounting Standards –
Investment Entities: Applying the Consolidation
Exception
Amendments to Australian Accounting Standards –
Extending Related Party Disclosures to Not-for-Profit
Public Sector Entities
[AASB 10, AASB 124 & AASB 1049]
Amendments to Australian Accounting Standards –
Fair Value Disclosures of Not-for-Profit Public Sector
Entities
[AASB 13]
Amendments to Australian Accounting Standards –
Scope and Application Paragraphs
[AASB 8, AASB 133 & AASB 1057]
Application
date of
standard*
Application
date for Group*
1 January 2016 1 July 2016
1 July 2016
1 July 2016
1 July 2016
1 July 2016
1 January 2016 1 July 2016
AASB 16
Leases
1 January 2019 1 July 2019
2016-1
2016-2
Amendments to Australian Accounting Standards –
Recognition of Deferred Tax Assets for Unrealised
Losses
[AASB 112]
1 January 2017 1 July 2017
Amendments to Australian Accounting Standards –
Disclosure Initiative: Amendments to AASB 107
1 January 2017 1 July 2017
IFRS 2 (Amendments)
Classification and Measurement of
Share-based Payment Transactions
[Amendments to IFRS 2]
1 January 2018 1 July 2018
The impact of the above new and revised standards is yet to be determined.
(c)
Statement of compliance
The financial report complies with Australian Accounting Standards and International Financial Reporting
Standards (IFRS).
(d) Critical accounting estimates and judgements
The application of accounting policies requires the use of judgements, estimates and assumptions about
carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and
associated assumptions are based on historical experience and other factors that are considered to be
relevant. Actual results may differ from these estimates.
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Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(d) Critical accounting estimates and judgements (continued)
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions are recognised in
the year in which the estimate is revised if it affects only that year or in the year of the revision and future
years if the revision affects both current and future years.
Share-based payment transactions
The Company measures the share-based payment transactions with employees by reference to the fair
value of the equity instruments at the date at which they are granted. Estimating fair value for share based
payment transactions requires determining the most appropriate valuation model, which is dependent on the
terms and conditions of the grant. This estimate also requires determining the most appropriate inputs to the
valuation model including the expected life of the share option, volatility and dividend yield and making
assumptions about them. The assumptions and models used for estimating fair value for share-based
payment transactions are disclosed in Note 19.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only when management considers
that it is probable that sufficient future tax profits will be available to utilise those temporary differences.
Significant management judgement is required to determine the amount of deferred tax assets that can be
recognised, based upon the likely timing and the level of future taxable profits over the next two years
together with future tax planning strategies.
Impairment of capitalised exploration and evaluation expenditure
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of
factors, including whether the Company decides to exploit the related lease itself or, if not, whether it
successfully recovers the related exploration and evaluation asset through sale.
(e)
Share-based payment transactions
Employees (including senior executives) of the Company receive remuneration in the form of share-based
payment transactions, whereby employees render services as consideration for equity instruments (equity-
settled transactions).
The cost of equity-settled transactions is recognised, together with a corresponding increase in other capital
reserves in equity, over the period in which the performance and/or service conditions are fulfilled. The
cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date
reflects the extent to which the vesting period has expired and the Company’s best estimate of the number
of equity instruments that will ultimately vest. The income statement expense or credit for a period
represents the movement in cumulative expense recognised as at the beginning and end of that period and
is recognised in equity based payments expense (Note 19).
No expense is recognised for awards that do not ultimately vest, except for equity-settled transactions for
which vesting are conditional upon a market or non-vesting condition. These are treated as vesting
irrespective of whether or not the market or non-vesting condition is satisfied, provided that all other
performance and/or service conditions are satisfied.
When the terms of an equity-settled transaction award are modified, the minimum expense recognised is
the expense as if the terms had not been modified, if the original terms of the award are met. An additional
expense is recognised for any modification that increases the total fair value of the share based payment
transaction, or is otherwise beneficial to the employee as measured at the date of modification.
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Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(e)
Share-based payment transactions (continued)
When an equity-settled award is cancelled, it is treated as if it vested on the date of cancellation, and any
expense not yet recognised for the award is recognised immediately. This includes any award where non-
vesting conditions within the control of either the entity or the employee are not met. However, if a new
award is substituted for the cancelled award, and designated as a replacement award on the date that it is
granted, the cancelled and new awards are treated as if they were a modification of the original award, as
described in the previous paragraph. The dilutive effect of outstanding options is reflected as additional
share dilution in the computation of diluted earnings per share (further details are given in Note 7).
(f)
Going concern
This report has been prepared on the going concern basis, which contemplates the continuity of normal
business activity and the realisation of assets and settlement of liabilities in the normal course of business.
The Consolidated entity has incurred a net loss for the year ended 30 June 2016 of $184,648 (2015:
$2,871,003) and experienced net cash outflows from operating activities of $1,817,490 (2015: $2,396,847).
At the end of the reporting year, the Directors recognise the need to raise additional funds via equity raising
to fund future planned exploration activities.
The Directors have reviewed the Consolidated entity’s financial position and are of the opinion that the use
of the going concern basis of accounting is appropriate as they believe the Consolidated entity will be
successful in securing additional funds through equity issues.
Should the Consolidated entity not achieve the matters set out above, there is significant uncertainty
whether the Consolidated entity 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 report.
The financial report does not contain any adjustments relating to the recoverability and classification of
recorded assets or to the amounts or classification of recorded assets or liabilities that might be necessary
should the Consolidated entity not be able to continue as a going concern.
(g)
Exploration and evaluation expenditure
Exploration and evaluation costs are written off in the year they are incurred apart from acquisition costs
which are carried forward where right of tenure of the area of interest is current and they are expected to be
recouped through sale or successful development and exploitation of the area of interest or, where
exploration and evaluation activities in the area of interest have not reached a stage that permits
reasonable assessment of the existence of economically recoverable reserves.
Where an area of interest is abandoned or the directors decide that it is not commercial, any accumulated
acquisition costs in respect of that area are written off in the financial period the decision is made. Each
area of interest is also reviewed at the end of each accounting period and accumulated costs written off to
the extent that they will not be recoverable in the future.
Amortisation is not charged on costs carried forward in respect of areas of interest in the development
phase until production commences.
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Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(h) Plant & equipment
Plant and equipment is stated at historical cost less accumulated depreciation and any accumulated
impairment in value. Depreciation is calculated on a straight-line basis over the estimated useful life of the
asset as follows:
Plant and equipment – over two to 15 years
Impairment
The carrying values of plant and equipment are reviewed for impairment when events or changes in
circumstances indicate the carrying value may not be recoverable.
For an asset that does not generate largely independent cash inflows, the recoverable amount is
determined for the cash-generating unit to which the asset belongs.
If any indication exists of impairment and where the carrying values exceed the estimated recoverable
amount, the assets or cash-generating units are written down to their recoverable amount.
The recoverable amount of plant and equipment is the greater of fair value less costs to sell and value in
use. In assessing value in use, 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.
Derecognition
An item of plant and equipment is derecognised upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of the asset
(calculated as the difference between the net disposal proceeds and the carrying amount of the item) is
included in the statement of comprehensive income in the period the item is derecognised.
(i)
Income tax
Current tax assets and liabilities for the current year and prior periods are measured at amounts expected
to be recovered from or paid to the taxation authorities based on the current year’s taxable income. The tax
rates and tax laws used for computations are enacted or substantively enacted by the balance date.
Deferred income tax is provided on all temporary differences at 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 where the
deferred income tax liability arises from the initial recognition of goodwill 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.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of
unused tax credits and unused tax losses, 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 assets and unused
tax losses can be utilised except where the deferred income 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.
The carrying amount of deferred income tax assets is reviewed at each balance 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 income tax asset to be utilised.
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Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(i)
Income tax (continued)
Unrecognised deferred income tax assets are reassessed at each balance date and are recognised to the
extent that it has become probable that future taxable profit will allow the deferred tax asset to be
recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to 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 balance date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in the
statement of comprehensive income.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same
taxable entity and the same taxation authority.
(j) GST
Revenues, expenses and assets are recognised net of the amount of GST except:
• where the GST incurred on a purchase of goods and services is not recoverable from the taxation
authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of
the expense item as applicable; and
•
receivables and payables are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the consolidated statement of financial position.
Cash flows are included in the consolidated statement of cash flows on a gross basis and the GST
component of cash flows arising from investing and financing activities, which is recoverable from, or
payable to, the taxation authority, are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to,
the taxation authority.
(k)
Provisions and employee benefits
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation and a reliable estimate can be made of the amount of the obligation.
When the Company expects some or all of a provision to be reimbursed, for example under an insurance
contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually
certain. The expense relating to any provision is presented in the statement of comprehensive income net
of any reimbursement.
Provisions are measured at the present value of management’s best estimate of the expenditure required
to settle the present obligation at the balance date. If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate that reflects the time value of money and the risks
specific to the liability. The increase in the provision resulting from the passage of time is recognised in
finance costs.
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Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(k) Provisions and employee benefits (continued)
Employee leave benefits
i. Wages and salaries, annual leave and sick leave
Liabilities for wages and salaries including non-monetary benefits, annual leave and accumulating sick
leave due to be settled within 12 months of the reporting date are recognised in provisions in respect of
employees’ services up to the reporting date and are measured at the amounts expected to be paid when
the liabilities are settled. Liabilities for non-accumulating sick leave are recognised when the leave is taken
and measured at the rates paid or payable.
ii. Long service leave
The liability for long service leave is recognised and measured as the present value of expected future
payments to be made in respect of services provided by employees up to the reporting date using the
projected unit credit method. Consideration is given to the expected future wage and salary levels,
experience of employee departures and periods of service. Expected future payments are discounted using
market yields at the reporting date on national government bonds with terms to maturity and currency that
match, as closely as possible, the estimated future cash outflows.
(l) Cash and cash equivalents
Cash and cash equivalents in the consolidated statement of financial position comprise cash at bank and in
hand and short-term deposits with an original maturity of three months or less.
For the purposes of the Consolidated Statement of Cash Flows, cash and cash equivalents consist of cash
and cash equivalents as defined above, net of outstanding bank overdrafts.
(m) Receivables
Receivables, which generally have 30-90 day terms, are recognised initially at fair value and subsequently
measured at amortised cost using the effective interest rate method, less an allowance for any uncollectible
amounts.
Collectability or receivables are reviewed on an ongoing basis. Debts that are known to be uncollectible are
written off when identified. An allowance for doubtful debts is raised when there is objective evidence that
the Company will not be able to collect the debt.
(n) Prepayments
Prepayment for goods and services which are to be provided in future years are recognised as
prepayments. Prepayments are recorded in the other assets in the balance sheet.
(o) Revenue recognition
Revenue is recognised and measured at the fair value of the consideration received or receivable to the
extent that it is probable that the economic benefits will flow to the Company and the revenue can be
reliably measured. The following specific recognition criteria must also be met before revenue is
recognised:
Interest Income
Income is recognised as the interest accrues (using the effective interest 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.
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Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(o) Revenue recognition (continued)
Fee Income
Revenue from geological services provided is recognised as the services are rendered, the revenue and
the costs incurred or to be incurred in respect of the transactions can be measured reliably and the
economic benefits associated with the transaction will flow to the Company.
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 over the period necessary to match the grant on a systematic basis to the costs that it is intended to
compensate. When the grant relates to an asset, it is recognised as deferred income and released to
income in equal amounts over the expected useful life of the related asset.
When the Company receives non-monetary grants, the asset and the grant are recorded gross at nominal
amounts and released to the income statement over the expected useful life and pattern of consumption of
the benefit of the underlying asset by equal annual installments. When loans or similar assistance are
provided by governments or related institutions with an interest rate below the current applicable market
rate, the effect of this favourable interest is regarded as additional government grants.
(p) Contributed equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares
or options are shown in equity as a deduction, net of tax, from the proceeds.
(q) Trade and other payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods and
services provided to the Company prior to the end of the financial year that are unpaid and arise when the
Company becomes obliged to make future payments in respect of the purchase of these goods and
services.
(r) Earnings per share
Basic earnings per share is calculated as net profit attributable to members of the Company adjusted to
exclude any costs of servicing equity (other than dividends) divided by the weighted average number of
ordinary shares, adjusted for any bonus element.
Diluted earnings per share is calculated as net profit attributable to members of the Company adjusted for:
•
•
costs of servicing equity (other than dividends);
the after tax effect of dividends and interest associated with dilutive potential ordinary shares that
have been recognised as expenses; and
other non-discretionary changes in revenues or expenses during the period that would result from the
dilution of potential ordinary shares;
•
divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted
for any bonus element.
(s)
Investments and 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 financial assets. 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 Company determines the classification of its financial assets
after initial recognition and, when allowed and appropriate, re-evaluates this designation at each financial
year-end.
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Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(s)
Investments and other financial assets (continued)
(i) Held-to-maturity investments
Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified as
held-to-maturity when the Company has the positive intention and ability to hold to maturity. Investments
intended to be held for an undefined period are not included in this classification. Investments that are
intended to be held-to maturity, such as bonds, are subsequently measured at amortised cost. This cost is
computed as the amount initially recognised minus principal repayments, plus or minus the cumulative
amortisation using the effective interest method of any difference between the initially recognised amount
and the maturity amount. This calculation includes all fees and points paid or received between parties to
the contract that are an integral part of the effective interest rate, transaction costs and all other premiums
and discounts. For investments carried at amortised cost, gains and losses are recognised in profit and loss
when the investment are derecognised or impaired, as well as through the amortisation process.
(ii) Loans and receivables
Loans and receivables 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 and loss when the loans and receivables are derecognised or
impaired, as well as through the amortisation process.
(iii) Available for sale (AFS) financial assets
AFS financial assets are non-derivative financial assets that are either designated to this category or
do not qualify for inclusion in any of the other categories of financial assets. The Group’s AFS
financial assets relate to listed securities
AFS financial assets are measured at fair value. Gains and losses are recognised in other
comprehensive income and reported within the AFS reserve within equity, except for impairment
losses and foreign exchange differences on monetary assets, which are recognised in profit or loss.
When the asset is disposed of or is determined to be impaired the cumulative gain or loss recognised
in other comprehensive income is reclassified from the equity reserve to profit or loss and presented
as a reclassification adjustment within other comprehensive income.
Reversals of impairment losses for AFS debt securities are recognised in profit or loss if the reversal
can be objectively related to an event occurring after the impairment loss was recognised. For AFS
equity investments impairment reversals are not recognised in profit loss and any subsequent
increase in fair value is recognised in other comprehensive income.
(t)
Impairment of financial assets
The Company assesses at each balance date whether a financial asset or group of financial assets is
impaired.
Available-for-sale investments
If there is objective evidence that an available-for-sale investment is impaired, an amount comprising the
difference between its cost and its current fair value, less any impairment loss previously recognised in
profit and loss, is transferred from equity to the statement of comprehensive income. Reversals of
impairment losses for equity instruments classified as available-for-sale are not recognised in profit.
Reversals of impairment losses for debt instruments are reversed through profit and loss if the increase in
an instrument’s fair value can be objectively related to an event occurring after the impairment loss was
recognised in profit or loss.
71
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Potash West NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(u)
Leases
Operating Lease payments are recognised as an operating expense in the statement of comprehensive
income on a straight-line basis over the lease term. Operating lease incentives are recognised as a liability
when received and subsequently reduced by allocating lease payments between rental expense and the
reduction of the liability.
(v)
Investment in associate
The Group’s investments in associates are accounted for using the equity method. Under the equity
method, the investment in an associate is initially recognised at cost. The carrying amount of the
investment is adjusted to recognise changes in the Group’s share of net assets of the associate since the
acquisition date.
The consolidated statement of profit or loss reflects the Group’s share of the results of operations of the
associate. Any change in OCI of those investees is presented as part of the Group’s OCI. In addition, when
there has been a change recognised directly in the equity of the associate, the Group recognises its share
of any changes, when applicable, in the statement of changes in equity.
Unrealised gains and losses resulting from transactions between the Group and the associate are
eliminated to the extent of the interest in the associate.
The aggregate of the Group’s share of profit or loss of an associate is shown on the face of the statement
of profit or loss outside operating profit and represents profit or loss after tax and non-controlling interests in
the subsidiaries of the associate.
The financial statements of the associate are prepared for the same reporting period as the Group. When
necessary, adjustments are made to bring the accounting policies in line with those of the Group.
After application of the equity method, the Group determines whether it is necessary to recognise an
impairment loss on its investment in its associate. At each reporting date, the Group determines whether
there is objective evidence that the investment in the associate is impaired. If there is such evidence, the
Group calculates the amount of impairment as the difference between the recoverable amount of the
associate and its carrying value, then recognises the loss as ‘Share of profit of an associate’ in the
statement of profit or loss.
Upon loss of significant influence over the associate, the Group measures and recognises any retained
investment at its fair value. Any difference between the carrying amount of the associate upon loss of
significant influence and the fair value of the retained investment and proceeds from disposal is recognised
in consolidated statement of comprehensive income.
(w) Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current financial year.
72
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Potash West NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 3: Segment information
The Company has based its operating segment on the internal reports that are reviewed and used by the
executive management team (“Chief Operating Decision Makers”) in assessing performance and in
determining the allocation of resources.
The Company currently does not have production and is only involved in exploration. As a consequence,
activities in the operating segment are identified by management based on the manner in which resources
are allocated, the nature of the resources provided and the identity of the manager and country of
expenditure. Information is reviewed on a whole of entity basis.
Based on these criteria the Company has only one operating segment, being exploration, and the segment
operations and results are reported internally based on the accounting policies as described in Note 2 for
the computation of the Company’s results presented in this set of financial statements.
Note 4: Income tax
(a) Income tax expense/(benefit)
Current tax
Deferred tax
Adjustments for current tax of prior years
Total tax expense/(benefit)
2016
$
2015
$
-
-
-
-
-
-
-
-
(b) Numerical reconciliation of income tax expense
to prima facie tax payable
Loss from continuing operations before income tax
expense
(184,648)
(2,871,003)
Prima facie tax benefit at the Australian tax rate of 30%
(55,394)
(861,300)
Tax effect of amounts which are not deductible (taxable) in calculating taxable income:
Share based payment
Non-deductible expenses
Non-assessable income
Capital raising costs deductible
Deferred tax assets not brought to account
Income tax expense/(benefit)
45,557
2,266
(53,728)
-
61,299
-
102,491
6,370
-
-
752,441
-
73
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Potash West NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 4: Income tax (cont’d)
(c) Deferred tax assets
Capitalised Expenditure
Accrued expenses
Business related deduction
Employee entitlement provisions
Tax losses
Deferred tax asset not recognised
Offset against deferred tax liabilities
Net deferred tax assets
(d) Deferred tax liabilities
Exploration tenement
Financial assets
Offset against deferred tax assets
Net deferred tax liabilities
Note 5: Directors’ and Executives’ remuneration
Short-term employee benefits
Post-employment benefits
Share-based payment
Total compensation
Note 6: Auditor’s remuneration
Remuneration of the auditor of the Company for:
- auditing or reviewing the financial report
- research & development tax concession
- tax compliance
74
71,542
21,788
111,613
26,136
3,847,776
4,078,855
(2,769,491)
1,309,364
(1,309,364)
-
750,000
559,364
1,309,364
(1,309,364)
-
-
9,380
163,991
23,509
3,401,294
3,598,175
(2,848,175)
750,000
(750,000)
-
750,000
-
750,000
(750,000)
-
2016
$
2015
$
445,914 523,280
47,004 46,965
128,699 40,719
621,617 610,964
2016
$
2015
$
32,445
13,303
4,635
50,383
42,745
17,909
-
60,654
For personal use only
Potash West NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 7: Earnings per share
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
Net loss
Loss used in calculating basic and diluted loss per share
2016
$
0.07
0.07
(181,904)
(181,904)
2015
$
1.33
1.33
(2,859,357)
(2,859,357)
Number
Number
Weighted average number of ordinary shares used in the
calculation of basic and diluted loss per share
267,582,650
215,683,626
During the year there were no listed or key management personnel options exercised.
The options issued under Employee Option Plan (EOP) are not considered dilutive for the purpose of the
calculation of diluted earnings/loss per share as their conversion to ordinary shares would not decrease the
net profit from continuing operations per share. Consequently, diluted earnings/loss per share is the same
as basic earnings per share.As of 30 June 2016, a total of 59,256,715 potential ordinary shares had been
issued, this is including 20,442,188 options and 35,960,024 partly paid shares respectively.
Subsequent to the reporting date, the Company undertook a capital raising, raising a total of $3.3 million
before costs at $0.03 per share. A total of 94,828,051ordinary shares have been issued as a result of the
capital raising and a further 15,280,667 ordinary shares have been issued after the general meeting. This
would significantly change the number of ordinary shares or potential ordinary shares outstanding between
the reporting date and the date of completion of these financial statements.
Note 8: Cash and cash equivalents
Cash at bank and on hand
Reconciliation of cash and cash equivalents
30-Jun-16
$
487,547
487,547
30-Jun-15
$
1,542,256
1,542,256
Cash at the end of financial period is shown in the consolidated statement of cash flows is reconciled to
items in the consolidated statement of financial position as follows:
Included in assets held for sale (Note 25)
Cash and cash equivalents
Note 9: Trade and other receivables
Trade debtors
GST Receivables
151,354
487,547
638,901
-
1,542,256
1,542,256
30-Jun-16
$
30-Jun-15
$
262
32,224
32,486
37,923
37,715
75,638
(i) Non-trade debtors are non-interest bearing and are generally on 30-90 days terms. The carrying
amounts of these receivables represent fair value and are not considered to be impaired.
75
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Potash West NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 10: Other assets
Prepayments
Note 11: Exploration expenditure
Acquisition of mineral rights - Dandaragan Trough tenements
30-Jun-16
$
30-Jun-15
$
-
-
13,860
13,860
30-Jun-16
$
2,500,000
2,500,000
30-Jun-15
$
2,500,000
2,500,000
The ultimate recoupment of acquisition costs carried forward for exploration and evaluation phases is
dependent on the successful development and commercial exploitation.
Note 12: Investment in associate
Opening Balance
Further investment - East Exploration Pty Ltd
Further investment - East Exploration Pty Ltd
Further investment - East Exploration Pty Ltd
Further investment - East Exploration Pty Ltd
Share of associated company's losses after income tax
30-Jun-16
$
30-Jun-15
$
100,000
-
-
-
-
-
-
50,000
50,000
100,000
50,007
(350,007)
Balance at the end of the financial year
-
-
On 7 May 2015, the investment in East Exploration Pty Ltd ceased to be an associate when the
Company acquired a 55% interest in East Exploration Pty Ltd. The investment is now treated as a
subsidiary. Refer to note 25 for details.
Note 13: Financial assets
Investment – available for sale financial assets
Reconciliation of movement for the year:
30-Jun-16
$
30-Jun-15
$
1,939,547
1,939,547
75,000
75,000
Opening balance
Purchase of shares in Lepidico
Gain on conversion of shares in Lepidico to shares in Platypus
Loss on decline in fair value at year-end
75,000
-
2,834,320
(969,773)
1,939,547
-
75,000
-
-
75,000
76
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A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 13: Financial assets (cont’d)
During the 2015 financial year, the Consolidated entity subscribed to shares in Lepidico Ltd, a technology
developer who have developed a process of extracting Lithium from Lithium bearing micas. Lepidico Ltd
was acquired by Platypus Minerals Ltd on 8 June 2016. The Consolidated entity has received 96,977,330
Platypus shares in consideration of their interest in Lepidico and recognised a gain on disposal of Lepidico
shares amounting to $2,834,320. As at 30 June 2016, the Consolidated entity recognised impairment loss
of $969,773 for the financial assets due to the decline in value between the acquisition and 30 June 2016.
Fair value of this investment at 30 June 2016 has been determined by reference to quoted bid prices in
active markets at the reporting date and are categorised within Level 1 of the fair value hierarchy.
Note 14: Plant and equipment
At 30 June 2015
Cost
Accumulate depreciation
Closing net carrying value
Year ended 30 June 2016
Office
Equipment
$
Plant and
Equipment
$
Computer
Software
$
Total
$
9,456
(2,185)
7,271
38,079
(7,604)
30,475
21,004
(5,237)
15,767
68,539
(15,026)
53,513
Opening net carrying value
Additions
Depreciation charge for the year
Closing net carrying value
7,271
-
(2,197)
5,074
30,475
-
(6,103)
24,372
15,767
-
(3,941)
11,826
53,513
-
(12,241)
41,272
Note 15: Trade and other payables
Trade payables
Stamp duty payable
Ageing Analysis
30 June 2016
Financial assets
Trade and other receivables
Financial liabilities
Trade and other payables
Net Maturity
30-Jun-16
$
261,922
167,525
429,447
30-Jun-15
$
390,327
-
390,327
Current
90 - 120
Days
120 - 180
Days
180 +
Days
Total
-
-
-
-
-
-
-
33,422
- 429,447
- (396,025)
33,422
429,447
(396,025)
77
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Potash West NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 15: Trade and other payables (cont’d)
30 June 2015
Financial assets
Trade and other receivables
Financial liabilities
Trade and other payables
Net Maturity
Current
90 - 120
Days
120 - 180
Days
180 +
Days
Total
75,638
390,327
(314,689)
-
-
-
-
-
-
-
75,638
- 390,327
- (314,689)
Due to short term nature of these payables, their carrying value is assumed to approximate their fair value.
Note 16: Provisions
Employee benefits
Note 17: Contributed equity
30-Jun-16
$
30-Jun-15
$
69,870
69,870
60,210
60,210
30-Jun-16
30-Jun-15
No.
$
No.
$
Ordinary shares - fully paid
Contributing Shares - partly paid
234,513,572
35,960,024
17,634,147
-
200,929,615
35,960,024
16,776,781
-
270,473,596
17,634,147
236,889,639
16,776,781
Effective 1 July 1998, the corporation legislation abolished the concepts of authorised capital and par value
shares. Accordingly, the Company does not have authorised capital or par value in respect of its issued
shares. Fully paid ordinary shares carry one vote per share and carry the rights to dividends.
When managing capital (which is defined as the Company's total equity amounting to $4,502,474, (2015:
$3,809,730), the Board's objective is to ensure the entity continues as a going concern as well as to
maintain optimal returns to shareholders and benefits for other stakeholders. The Board also aims to
maintain a capital structure that ensures the lowest cost of capital available for future exploration and
development activity. The Company is not subject to any externally imposed capital requirements.
78
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A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 17: Contributed equity (cont’d)
Movements in ordinary shares on issue of the legal parent are:
At the beginning of reporting year
211,005,055 113,806,148
Note
2016
Number
2015
Number
17.10
17.11
17.9
17.1
Issue of 23,607,857 shares via private share placement
17.2
Issue of 56,400,000 shares via private share placement
Issue of 1,250,000 shares to consultant in lieu of services provided 17.3
17.4
Issue of 1,000,000 shares to acquire exploration license
17.5
Issue of 250,000 shares to consultant in lieu of services provided
17.6
Issue of 1,600,000 shares via private share placement
17.7
Issue of 2,000,000 shares to consultant via employees share plan
Isuse of 100,000 shares to transfer the tenements
17.8
Issue of 390,045 shares to directors and senior management via
remuneration sacrifice share plan
Issue of 473,402 shares to directors and senior management via
remuneration sacrifice share plan
Issue of 20,913 shares to directors and senior management via
remuneration sacrifice share plan
Issue of 31,250 shares to directors and senior management via
remuneration sacrifice share plan
Issue of 9,475,000 shares via private share placement
Issue of 536,077 shares to directors and senior management via
remuneration sacrifice share plan
Issue of 64,363 shares to directors and senior management via
remuneration sacrifice share plan
Issue of 250,000 shares to consultant in lieu of services provided
Issue of 600,000 shares to consultant in lieu of services provided
Issue of 100,000 shares to consultant in lieu of services provided
Issue of 300,000 shares to consultant in lieu of services provided
Issue of 19,025,000 shares via private share placement
Issue of 935,278 shares to directors and senior management via
remuneration
Issue of 110,903 shares to directors and senior management via
remuneration
Issue of 105,517 shares to consultant via employees share plan
Issue of 2,081,819 shares to directors and senior management via
remuneration sacrifice share plan
Share to be issued under the director and senior management fee
and remuneration sacrifice share plan
17.15
17.16
17.17
17.18
17.19
17.20
17.21
17.22
17.23
17.24
17.13
17.14
17.12
17.25
Reserved shares
At the end of the reporting year
79
23,607,857
56,400,000
1,250,000
1,000,000
250,000
1,600,000
2,000,000
100,000
390,045
473,402
20,913
31,250
9,475,000
536,077
64,363
250,000
600,000
100,000
300,000
19,025,000
935,278
110,903
105,517
2,081,819
1,061,433
235,575,005 211,005,055
(3,150,000)
(3,150,000)
232,425,005 207,855,055
For personal use only
Potash West NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 17: Contributed equity (cont’d)
Movements in ordinary shares on issue of the legal parent are:
At the beginning of reporting year
17,111,806 13,047,840
Note
2016
$
2015
$
Issue of 23,607,857 shares via private share placement
Issue of 56,400,000 shares via private share placement
Issue of 1,250,000 shares to consultant in lieu of services provided
Issue of 1,000,000 shares to acquire exploration license
Issue of 250,000 shares to consultant in lieu of services provided
Issue of 1,600,000 shares via private share placement
Issue of 2,000,000 shares to consultant via employees share plan
Isuse of 100,000 shares to transfer the tenements
Issue of 390,045 shares to directors and senior management via
remuneration sacrifice share plan
Issue of 473,402 shares to directors and senior management via
remuneration sacrifice share plan
Issue of 20,913 shares to directors and senior management via
remuneration sacrifice share plan
Issue of 31,250 shares to directors and senior management via
remuneration sacrifice share plan
Issue of 9,475,000 shares via private share placement
Issue of 536,077 shares to directors and senior management via
remuneration sacrifice share plan
Issue of 64,363 shares to directors and senior management via
remuneration sacrifice share plan
Issue of 250,000 shares to consultant in lieu of services provided
Issue of 600,000 shares to consultant in lieu of services provided
Issue of 100,000 shares to consultant in lieu of services provided
Issue of 300,000 shares to consultant in lieu of services provided
Issue of 19,025,000 shares via private share placement
Issue of 935,278 shares to directors and senior management via
remuneration
Issue of 110,903 shares to directors and senior management via
remuneration
Issue of 105,517 shares to consultant via employees share plan
Issue of 2,081,819 shares to directors and senior management via
remuneration sacrifice share plan
Shares to be issued under the director and senior management fee
and remuneration sacrifice share plan
Equity raising costs
17.1
17.2
17.3
17.4
17.5
17.6
17.7
17.8
17.9
17.10
17.11
17.12
17.13
17.14
17.15
17.16
17.17
17.18
17.19
17.20
17.21
17.22
17.23
17.24
17.25
17.26
Reserved shares
At the end of the reporting year
80
821,275
2,820,000
43,750
50,000
12,500
80,000
100,000
5,000
15,903
21,303
1,004
1,250
379,000
28,763
3,411
12,000
30,000
5,000
14,400
761,000
28,619
3,438
3,271
64,328
32,175
(96,865)
(319,194)
17,969,172 17,111,806
(335,025)
(335,025)
17,634,147 16,776,781
For personal use only
Potash West NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 17: Contributed equity (continued)
Movements in partly paid contributing shares on issue of the legal parent are:
Note
2016
Number
2015
Number
At the beginning of reporting year
35,960,024
-
Issue of 35,960,024 partly paid contributing shares pursuant to non-
renounceable entitlement issue
17.27
At the end of the reporting year
- 35,960,024
35,960,024 35,960,024
Outstanding amount per partly paid contributing share at 30 June 2016 is $0.049 (2015: $0.049).
The partly paid contributing share are issued with 35,960,024 outstanding calls of 4.9 cents each. The
dates for the future calls are not before 30 June 2016. The partly paid contributing share carry a right to a
dividend on the same basis as holders of Ordinary Shares. Partly paid contributing shares carry the right to
vote in proportion which the amount paid (not credited) bears to the total amounts paid and payable
(excluding amounts credited). The company has the power to forfeit any shares where the call remains
unpaid 14 days after the call was payable. The company must then offer the shares forfeited for public
auction within six weeks of the ball becoming payable.
17.1
17.2
17.3
17.4
17.5
17.6
17.7
17.8
17.9
17.10
17.11
17.12
17.13
17.14
17.15
17.16
17.17
17.18
17.19
The issue of 23,607,857 shares at $0.035 per share via private share placement.
The issue of 56,400,000 shares at $0.05 per share via private share placement.
The issue of 1,250,000 shares to consultant at $0.035 per share in lieu of services provided.
The issue of 1,000,000 shares to Dempsey Minerals Ltd and Fyfehill at $0.05 per share for
exploration license.
The issue of 250,000 shares to General Resources GmbH at $0.05 per share in lieu of services
provided
The issue of 1,600,000 shares at $0.05 per share via private share placement.
The issue of 2,000,000 shares to consultants at $0.05 per share.
The issue of 100,000 shares to Richmond Resources Pty Ltd at $0.05 per share for transferring
the tenements.
The issue of 390,045 shares to directors and senior management via director fee and
remuneration sacrifice share plan at $0.044 per share.
The issue of 473,402 shares to directors and senior management via director fee and
remuneration sacrifice share plan at $0.0455 per share.
The issue of 20,913 shares to directors and senior management via director fee and
remuneration sacrifice share plan at $0.048 per share.
The issue of 31,250 shares to directors and senior management via director fee and
remuneration sacrifice share plan at $0.04 per share.
The issue of 9,475,000 shares to Steda Nominees Pty Ltd at $0.05 per share via private share
placement.
The issue of 536,077 shares to directors and senior management via director fee and
remuneration sacrifice share plan at $0.039 per share.
The issue of 64,363 shares to directors and senior management via director fee and
remuneration sacrifice share plan at $0.053 per share.
The issue of 250,000 shares to General Resources GmbH at $0.048 per share in lieu of services
provided
The issue of 600,000 shares to SConsortium at $0.05 per share in lieu of services provided
The issue of 100,000 shares to Francois Dumas Consulting at $0.05 per share in lieu of services
provided
The issue of 300,000 shares to Horn Resources C/- Rymill at $0.048 per share in lieu of services
provided
81
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Potash West NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 17: Contributed equity (continued)
17.20 The issue of 19,025,000 shares at $0.04 per share via private share placement.
17.21
The issue of 935,278 shares to directors and senior management via director fee and
remuneration sacrifice share plan at $0.039 per share.
The issue of 110,903 shares to directors and senior management via director fee and
remuneration sacrifice share plan at $0.031 per share.
17.23 The issue of 105,517 shares to consultants at $0.031 per share.
17.22
17.24
17.25
17.26
17.27
The issue of 2,081,819 shares to director fee and remuneration sacrifice share plan at $0.0309
per share.
Shares to be issued to directors and senior management via director fee and remuneration
sacrifice share plan. Shares have not yet been issued, with the number of shares to be
determined at issue date, dependent on the market share price.
For the year 2016, the payment of costs incurred by the company in relation to equity raising and
listing of the company’s shares and of $96,866 (2015: $319,194).
The issue of 35,960,024 partly paid contributing shares pursuant to non-renounceable entitlement
bonus issue.
Note 18: Share based payment reserve
Reconciliation of total options on issue:
Options
issued as
share-based
payments
3,800,000
1,992,188
(1,750,000)
4,042,188
3,500,000
(2,350,000)
5,192,188
Other
options
issued
1,000,000
-
-
1,000,000
14,250,000
-
15,250,000
Reserved
shares issued
Total options on
issue
1,150,000
2,000,000
-
3,150,000
-
-
3,150,000
5,950,000
3,992,188
(1,750,000)
8,192,188
17,750,000
(2,350,000)
23,592,188
As at 1 July 2014
Issued during the year
Expired during the year
As at 30 June 2015
Issued during the year
Expired during the year
As at 30 June 2016
Reconciliation of value of share-based payment reserve
30-Jun-16
30-Jun-15
Note
$
$
At the beginning of reporting year
628,908
465,158
Amount expensed for options issued to consultant.
429,688 options with exercise price of $0.087
Amount expensed for options issued to consultant.
1,562,500 options with exercise price of $0.087
Amount expensed for shares issued to consultant in lieu of
services provided.
2,000,000 share at $0.05 per share
Amount expensed for options issued to consultant.
3,500,000 options with exercise price of $0.07
At the end of the reporting year
18.1
18.2
17.7
18.3
-
-
-
13,750
50,000
100,000
20,026
-
648,934
628,908
82
For personal use only
Potash West NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 18: Share based payment reserve (continued)
18.1 The issue of 429,688 $0.087 options exercisable on or before 6 November 2017 on 6 November 2014
to consultant. Please refer to Note 18 for further explanation.
18.2 The issue of 1,562,500 $0.087 options exercisable on or before 6 November 2017 on 6 November
2014 to consultant. Please refer to Note 18 for further explanation.
18.3 The issue of 3,500,000 $0.07 options exercisable on or before 30 November 2018 to consultant.
Please refer to Note 19 for further explanation.
Note 19: Equity based payments
Expenses arising from share-based payment and option-based payment transactions
Total expenses arising from share-based payment transactions recognised during the year were as follows:
Options issued in consideration for servcies. See note 18.3.
Shares issued under the director and senior management
fee and remuneration sacrifice share plan. See note 17.14,
17.15, 17.21, 17.22, 17.24 and 17.25
Shares issued in consideration of services. See note 17.16,
17.17, 17.18, 17.19 and 17.23
30-Jun-16
30-Jun-15
20,026
63,750
128,560
71,635
3,272
206,250
151,858
341,635
During 2016 financial year, 3,500,000 options were issued to consultants for consulting services. These
options had a fair value of $20,026 calculated using a black scholes model. There fair value of the services
was considered to be equal to the fair value of the options issued.
On 6 July 2015, the Company issued 700,000 shares at $0.05 per share and further 550,000 shares at
$0.048 per share to consultants in lieu of cash payments for services provided. This has been inculded in
2015 transactions and has been approved by shareholders at the 2014 AGM.
Under the Management fee and remuneration sacrifice share plan, the eligible directors and senior
management of the Company may elect to sacrifice part of their directors’ fees or consulting fees to acquire
Shares in the Company. Under the Plan, the relevant directors and senior management will receive the
remainder of their directors’ fees or consulting fees in cash. As such, the Shares will be issued for nil cash
consideration and will be valued at market fair value. The Plan has been approved by the shareholders
during 2013 AGM. The associated shares for the sacrificed amount up to March 2016 have been issued to
the directors who have elected to sacrifice part of their directors fees, with remaining associated shares to
be issued in next financial year.
On 13 April 2016, the Company issued 105,517 shares to consultants under the Employee Share Plan
("ESP"). The fair value of the shares issued is at market value $0.031 per share.
The fair value of the options granted for the year ended 30 June 2016 was estimated on the date of grant
using the following assumptions and valuing using a black scholes model:
Dividend yield (%)
Expected volatility* (%)
Risk-free interest rate (%)
Expected life (years)
Share price
Exercise price ($)
30-Jun-16
Nil
75
2.0
3
$0.024
See below tables:
83
30-Jun-15
Nil
75
2.5
3
$0.049
See below tables:
For personal use only
Potash West NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 19: Equity based payments (continued)
Share-based payment plans
Outstanding at 1 July
Granted during the year
Forfeited during the year
Exercised during the year
Expired during the year
Outstanding at 30 June
Exercisable at 30 June
Share-based payment plans (to
consultants)
Outstanding at 1 July
Granted during the year
Forfeited during the year
Exercised during the year
Expired during the year
Outstanding at 30 June
Exercisable at 30 June
Option-based payment plans
Outstanding at 1 July
Granted during the year
Forfeited during the year
Exercised during the year
Expired during the year
Outstanding at 30 June
Exercisable at 30 June
2016
Number
3,026,481
3,833,957
-
-
-
6,860,438
-
2016
WAEP
$0.1071
$0.0344
-
-
-
$0.0665
-
2015
Number
2,110,871
915,610
-
-
-
3,026,481
-
2015
WAEP
$0.1348
$0.0431
-
-
-
$0.1071
-
2016
Number
2016
WAEP
4,500,000
$0.0458
1,355,517 $0.0477
-
-
-
$0.0442
-
-
-
5,855,517
-
2015
Number
4,500,000
-
-
-
-
4,500,000
-
2015
WAEP
$0.0458
-
-
-
-
$0.0458
2016
Number
1,350,000
2016
WAEP
$0.3549
-
-
(1,350,000)
-
-
$0.3549
2015
Number
2,600,000
-
-
-
(1,250,000)
2015
WAEP
$0.3189
-
-
-
$0.2800
-
-
-
-
1,350,000
$0.3549
-
-
* Volatility was determined using considered judgement as to the volatility of the share price over the vesting
period.
Option-based payments (to consultants)
Outstanding at 1 July
Granted during the year
Forfeited during the year
Exercised during the year
Expired during the year
Outstanding at 30 June
Exercisable at 30 June
2016
Number
2,692,188
3,500,000
-
(1,000,000)
5,192,188
-
2016
WAEP
$0.1294
$0.0700
-
$0.1500
$0.0854
-
2015
Number
1,200,000
1,992,188
-
-
(500,000)
2,692,188
-
2015
WAEP
$0.2708
$0.0870
-
-
$0.3000
$0.1294
-
84
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A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 20: Commitments
(i) The Company has certain obligations with respect to tenements and minimum expenditure
requirements on areas, as follows:
Within 1 year
1 to 2 years
Total
30-Jun-16
$
1,206,000
1,206,000
2,412,000
30-Jun-15
$
930,500
930,500
1,861,000
The commitments may vary depending upon additions or relinquishments of the tenements, as well as
farm-out agreements. The above figures are based on the mines department Emits reports as at 30 June
2016. These figures are adjusted at the anniversary date of each tenement and therefore the total can
change on a monthly basis.
(ii) Mr Patrick McManus was appointed as Managing Director on 23 November 2010. Pursuant to a revised
agreement dated 23 November 2010, his reviewed salary is set at $275,000 per annum inclusive of 9.25%
superannuation effective from 1 July 2013. The agreement can be terminated by either party by giving
three months' notice or payment of three months' salary in lieu of notice being $68,750.
Note 21: Contingent liabilities
There are no contingent liabilities as at 30 June 2016 (2015: Nil).
Note 22: Related party transactions
Consulting fees were paid to Strategic Metallurgy Pty Ltd, a company
of which Gary Johnson is a director and shareholder. Service fees are
agreed on an arm’s length transaction basis.
Corporate advisory were paid to Precious Capital Pte Ltd, a company
of which Chew Wai Chuen is a director and shareholder
The issue of 100,000 shares to Richmond Resources Pty Ltd, a
company of which Robert Van der Laan is a director and shareholder,
at $0.05 per share for transferring the tenements.
Fees were paid to Horn Resources Pty Ltd, a company of which
Robert Van der Laan is a director and shareholder.
Fees included investor relations, corporate advisory, office
accommodation, accounting staffs (excluding fees directly related to
Robert Van der Laan), administrative staffs and exploration staffs.
Fees are considered to be on normal commercial terms and
conditions.
30-Jun-16
$
30-Jun-15
$
-
157,270
9,708
196,300
-
5,000
213,100
222,808
337,769
696,339
.
In 2012 financial year, 1,150,000 shares were issued under the Employee Share Plan (ESP) accounted for
as in-substance options. The Company has provided each employee with a Resource Loan up to the
amount payable in respect of the shares. The employee must repay the Loan in full prior to expiry of the
Loan Term but may elect to repay the Loan Amount in respect of any or all of the Plan Shares at any time
prior to expiry of the Loan Term.
85
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A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 23: Cash flow information
30-Jun-16
$
30-Jun-15
$
Reconciliation of cash flow from operations with (loss)/profit from ordinary activities after income
tax
Profit from oridnary activities after income tax
Share of associates loss
Depreciation and amortisation
Expenses settled via equity issues
Option and exclusivity fee received
Gain on disposal of financial assets
Impairment of financial assets
Changes in assets and liabilities
(Increase)/decrease in receivables
(Increase)/decrease in other assets
Increase/(decrease) in payables
Increase/(decrease) in provisions
Cash flows from operations
(184,648)
-
12,241
151,858
(98,649)
(2,834,320)
969,773
42,216
13,860
100,519
9,660
(1,817,490)
(2,871,003)
350,000
15,026
338,887
-
-
-
-
(22,560)
(221,126)
13,929
(2,396,847)
Note 24: Financial risk management objectives and policies
The Company’s principal financial instruments comprise cash and short term deposits. The main purpose of
the financial instruments is to finance the Company’s operations. The Company also has other financial
instruments such as trade debtors and creditors which arise directly from its operations. The main risks
arising from the Group’s financial instruments are interest rate risk and credit risk. The board reviews and
agrees policies for managing each of these risks and they are summarised below:
Interest Rate Risk
(a)
The Group’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate
as a result of changes in market interest rates and the effective weighted average interest rate for each
class of financial assets and financial liabilities is set out in the following table. Also included is the effect on
profit and equity after tax if interest rates at that date had been 10% higher or lower with all other variables
held constant as a sensitivity analysis.
The Group has not entered into any hedging activities to manage interest rate risk. In regard to its interest
rate risk, the Group continuously analyses its exposure. Within this analysis consideration is given to
potential renewals of existing positions, alternative investments and the mix of fixed and variable interest
rates.
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A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 24: Financial risk management objectives and policies (continued)
Weighted
Average
Effective
Interest Rate
%
Floating
Interest
Rate
$
Fixed
Interest
Rate
$
Non
Interest
Bearing
$
Interest Rate
Risk Sensitivity
-10%
10%
Total
$
Profit Equity Profit Equity
$
$
$
$
1.25
2016
Financial
Assets
Cash
Receivables
Total Financial Assets
Financial
Liabilities
Trade creditors
Total Financial Liabilities
444,185
-
444,185
194,715
-
-
33,422
- 228,137
638,901
33,422
672,323
-466
-466
466
466
-
-
-
-
429,447
429,447
429,447
429,447
Weighted
Average
Effective
Interest Rate
%
Floating
Interest
Rate
$
Fixed
Interest
Rate
$
Non
Interest
Bearing
$
Interest Rate
Risk Sensitivity
-10%
10%
Total
$
Profit Equity Profit Equity
$
$
$
$
1.50
2015
Financial
Assets
Cash
Receivables
Total Financial Assets
Financial
Liabilities
Trade creditors
Total Financial Liabilities
1,115,395
-
1,115,395
426,861
-
75,638
-
- 502,500
1,542,256
75,638
1,617,895
-1,171
-1,171
1,171
1,171
-
-
-
-
390,327
390,327
390,327
390,327
A sensitivity of 10% (2015: 10%) has been selected as this is considered reasonable given the current
level of both short term and long term Australian dollar interest rates. A -10% sensitivity would move short
term interest rates at 30 June 2016 from around 1.25% to 1.13% (2015: 1.50% to 1.35%) representing a
12.0 basis points (2015: 15.0 basis points) downwards shift, which is 8.5 basis points (2015: 10.5 basis
points) net of tax.
Based on the sensitivity analysis only interest revenue from variable rate deposits and cash balances is
impacted resulting in a decrease or increase in overall income.
Liquidity Risk
(a)
The Company manages liquidity risk by maintaining sufficient cash reserves and marketable securities
required to meet the current exploration and administration commitments, through the continuous
monitoring of actual cash flows.
All payables are due within 30 days, which is consistent with the prior year.
Fair Values
(b)
For financial assets and liabilities, the net fair value approximates their carrying value. No financial assets
and financial liabilities are readily traded on organised markets in standardised form except for available for
sale financial assets which are valued at market value as traded on the ASX and are considered to be level
1 in the fair value heirarchy.
87
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A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 24: Financial risk management objectives and policies (continued)
(d) Credit Risk
Credit risk arises in the event that counterparty will not meet its obligations under a financial instrument
leading to financial losses. The Consolidated entity is exposed to credit risk from its operating activities,
financing activities including deposits with banks. The credit risk control procedures adopted by the
Consolidated entity is to assess the credit quality of the institution with whom funds are deposited or
invested, taking into account its financial position and past experiences.
The maximum exposure to credit risk on financial assets of the Consolidated entity which have been
recognised on the statement of financial position is generally limited to the carrying amount.
Cash is maintained with National Australia Bank & Macquarie bank.
Note 25: Controlled entity
Potash West NL is the ultimate parent entity of the consolidated group.
The following are controlled entities at the reporting date and have been included in the consolidated
financial statements. All shares held are ordinary shares.
Name
Dandaragan Trough
Holdings Pty Ltd
K- Max Pty Ltd
East Exploration Pty Ltd (i)
Country of
Incorporation
Australia
Australia
Australia
Percentage
Interest Held %
2016 2015
100% 100%
100% 100%
55% 55%
Principal activities
Dormant
Dormant
Mineral exploration
(i) On 24 April 2014, the Company entered into an agreement with Lufgan Nominees Pty Ltd and RL
Holdings Pty Ltd to set up a new company called East Exploration Pty Ltd to acquire exploration
permits in respect of the tenements and developing the tenements in Germany, which is the principal
place of business. Upon signing of the Heads of Agreement, the Company agreed to subscribe
300,000 shares at $1.00 per share and further 66,666 shares at $0.0001 per share to acquire a total of
up to 55% of East Exploration ("acquisition"). On 7 May 2015, the Company settled the final payment
of $50,000 and completed the acquisition.
As at 30 June 2016, there are no commitment or contingent liabilities in respect of the controlled entity.
As announced to the market on 18 August 2015, the company has entered into a term sheet to sell its
55% interest in East Exploration Pty Ltd to Davenport Resources Pty Ltd (‘Davenport’), a wholly owned
subsidiary of Arunta Resources Litmited [ASX:AJR]. Pursuant to the terms of the announced
agreement, during the period Davenport paid to East Exploration the first and second tranche of the
option and exclusivity fee amounting to $250,000. This fee is non-refundable. For the period, the
portion of the fee relationg to the expenditure has been recognised as income in East Exploration,
amounting to $98,649 with the remaining $151,351 shown as deferred income.
Due to the expected sale of the interest in East Exploration Pty Ltd, the assets and liabilities of East
Exploration Pty Ltd have been presented as “held for sale” in the consolidated statement of financial
position at 30 June 2016.
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A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 26: Parent entity disclosure
Assets
Current assets
Non current assets
Total Assets
Liabilities
Current liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
Loss for the year
Other comprehensive income
Total comprehensive loss for the financial
year
Note 27: Subsequent events
Parent
30-Jun-16
Parent
30-Jun-15
520,032
4,480,819
5,000,851
1,624,717
2,628,513
4,253,230
499,316
499,316
450,537
450,537
4,501,535
3,802,693
17,634,147
648,934
(13,781,546)
4,501,535
16,540,712
864,978
(13,602,996)
3,802,693
Parent
30-Jun-16
Parent
30-Jun-15
(178,550)
-
(2,778,040)
-
(178,550)
(2,778,040)
During July 2016, the Company issued 57,127,998 shares at $0.03 per share, raising $1.7 million before
costs, the placement to professional and sophisticated investors who qualify under s708 of Corporation Act
was heavily oversubscribed and to allow all placement applicants to participate in the placement, the
Company held the general meeting on 29 August 2016. On 5 September 2016, the Company issued a
further 15,280,667 shares at $0.03 per share for the oversubscribed placement, raising $458,420.
On 17 August 2016, the Company issued 37,700,063 shares at $0.03 per share, raising $1.13 million
before costs under a share purchase plan.
On 9 September 2016, 200,000 unquoted options expired unexercised.
On 3 August 2016 the company announced that it proposes to issue free partly-paid shares through a 1-for-
4 bonus issue at a total issue price of $0.05. The record date for this issue is expected to be October 2016.
There have not been any other matters that have arisen after balance date that have significantly affected,
or may significantly affect, the operations and activities of the Company, the results of those operations, or
the state of affairs of the Company in future financial years other than disclosed elsewhere in this annual
report.
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A.C.N. 147 346 334
Directors’ Declaration
In the opinion of the directors of Potash West NL:
(a)
the financial statements and notes set out on pages 57 to 89 are in accordance with the
Corporations Act 2001, including:
(i)
(ii)
giving a true and fair view of the financial position of the Company as at 30 June 2016
and of its performance, as represented by the results of its operations and its cash
flows, for the year ended on that date; and
complying with Accounting Standards in Australia and the Corporations Regulations
2001;
(b)
(c)
the financial statements and notes also comply with International Financial Reporting
Standards as disclosed in Note 2(c); and
subject to the matters discussed in Note 2(f), there are reasonable grounds to believe that the
Company will be able to pay its debts as and when they become due and payable.
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 year ending 30 June 2016.
This declaration is made in accordance with a resolution of the directors.
Patrick McManus
Managing Director
Perth
Dated: 29 September 2016
90
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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 Potash West NL
Report on the financial report
We have audited the accompanying financial report of Potash West NL, which comprises the consolidated
statement of financial position as at 30 June 2016, the consolidated statement of 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 of the
financial report that gives a true and fair view 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
MH:VH:POTASH:010
For personal use only
Opinion
In our opinion:
a.
the financial report of Potash West NL is in accordance with the Corporations Act 2001,
including:
i
ii
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;
complying with Australian Accounting Standards and the Corporations Regulations 2001;
and
b.
the financial report also complies with International Financial Reporting Standards as disclosed in
Note 2.
Emphasis of matter
Without qualifying our opinion, we draw attention to Note 2 (f) 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 Potash West NL for the year ended 30 June 2016, complies
with section 300A of the Corporations Act 2001.
Ernst & Young
V L Hoang
Partner
Perth
29 September 2016
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
MH:VH:POTASH:010
For personal use only
Potash West NL
A.C.N. 147 346 334
Shareholder Information
Distribution schedules of shareholders and statements of voting rights are set out in Table 1, whilst the
Company’s top twenty shareholders and option holders are shown in Tables 2, 3 and 4. Substantial
shareholder notices that have been received by the Company are set out in Table 5.
Table 1
Shareholder spread as at 16 September 2016
Ordinary shares, with right to attend meetings and vote personally or by proxy, through show of
hands and, if required, by ballot (one vote for each share)
Spread of Holdings
No. Holders
PWN
No. Holders
PWNCA
1-1,000
1,001-5,000
5,001-10,000
10,001-100,000
100,001 - and over
107
202
160
854
401
30
126
131
262
50
Total number of holders of securities
Total number of securities
1,724
346,887,810
599
35,960,024
Table 2
Top twenty shareholders as at 16 September 2016
Shareholder
1 Citicorp Nominees Pty Limited
2 Wah Len Enterprise SDN BHD
3 Querion Pty Ltd
4 Yap Thai Choy
5 HSBC Custody Nominees
6 Mr Philip Anthony Feitelson
7 Mr Dennis Bell
8 Mr Robert Peter Van Der Laan
9 Mr Adrian Christopher Griffin
10 BNP Paribas Noms Pty Ltd
11 Mr Patrick Bernard Mc Manus & Mrs Vivienne Edwina Mc Manus
12 Mr John Stephen Bladon
13 Torbinup Resources Pty Ltd
14 Davsms Investments Pty Ltd
15 Yarraandoo Pty Ltd
16 BNP Paribas Noms Pty Ltd
17 Potash West NL
18 Buzz Monty Pty Ltd
19 Mr Xuan Khoa Pham
20 Flourish Super Pty Ltd
No. Shares
Percentage
41,911,846
16,666,666
12,500,000
12,000,000
11,990,609
11,020,000
7,895,723
6,390,917
5,577,045
4,415,020
4,392,631
3,607,814
3,478,057
3,416,667
3,333,333
3,222,054
3,150,000
2,916,666
2,800,000
2,601,624
163,286,672
12.082
4.805
3.603
3.459
3.457
3.177
2.276
1.842
1.608
1.273
1.266
1.040
1.003
0.985
0.961
0.929
0.908
0.841
0.807
0.750
47.072
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A.C.N. 147 346 334
Shareholder Information (continued)
Table 3
Top twenty partly paid shareholders as at 16 September 2016
Shareholder
No. Shares
Percentage
1 First Investment Partners Pty Ltd
2 HSBC Custody Nominees (Australia) Limited
3 Mr Adrian Christopher Griffin
4 Torbinup Resources Pty Ltd
5 Mr John Stephen Bladon
6 Roberin Pty Ltd
7 Citicorp Nominees Pty Limited
8 Mr Mohan Singh Nandha
9 Sept Rogues Ltd
10 Mrs Anjana Nandha
11 Richmond Resources Pty Ltd
12 Super Msj Pty Ltd
13 Mr Frederick Denis Láime
14 Potash West NL
15 Ossart Holdings Pty Ltd
16 Mr Bruno Carraro & Mrs Giuseppina Carraro
17 Nutsville Pty Ltd
18 Mr Sean Donahugh Vanderfield
19 Mr Brent Arthur Cotsworth
20 Mr Gregory John Miller
3,000,000
2,636,012
2,575,931
1,779,029
1,763,907
1,553,615
1,438,389
1,072,541
913,891
911,091
697,917
600,000
591,499
575,000
504,556
415,422
400,000
341,698
295,376
265,664
22,331,538
8.343
7.330
7.163
4.947
4.905
4.320
4.000
2.983
2.541
2.534
1.941
1.669
1.645
1.599
1.403
1.155
1.112
0.950
0.821
0.739
62.101
Table 4
Top twenty option holders as at 16 September 2016
Optionholder
No. Options
Percentage
1 M & K Korkidas Pty Ltd
2 Bellaire Capital Pty Ltd
3 David Greenblatt
4 Nutsville Pty Ltd
5 Ms Merle Smith & Ms Kathryn Smith
6 Mr James Robert Dennison
7 Buzz Monty Pty Ltd < The Savage A/C>
8 Buzz Monty Pty Ltd < Buzz Monty Super Fund A/C>
9 Mr Dennis Bell
10 Davsms Investments Pty Ltd
11 Citicorp Nominees Pty Ltd
12 Mr Andrew John Meek & Ms Saskia Elle Meek
13 Lawrence Crowe Consulting Pty Ltd < L C C Super Fund A/C>
14 Mr Mark Richard Jones & Ms Margaret Tai < Tai-Jones S/F A/C>
15 Alimold Pty Ltd
16 Magna Equities II LLC
17 Demasiado Pty Ltd < Demasiado Family A/C>
18 Dropmill Pty Ltd
19 Janafield Pty Ltd< Superannuation Fund A/C>
20 Mr Mark Kenwyn Walters & Ms Elizabeth Jean Gundesen< Mark
Walters Super Fund A/C>
2,550,000
2,000,000
1,500,000
750,000
750,000
650,000
625,000
625,000
625,000
517,834
500,000
485,487
450,000
400,000
350,000
312,500
290,240
250,000
200,000
187,500
14.366
11.268
8.451
4.225
4.225
3.662
3.521
3.521
3.521
2.917
2.817
2.735
2.535
2.254
1.972
1.761
1.635
1.408
1.127
1.056
14,018,561
78.978
94
For personal use only
Potash West NL
A.C.N. 147 346 334
Shareholder Information (continued)
Table 5
Substantial shareholders as at 16 September 2016
Shareholder
Venture Frontier Limited & associated entities
No. of shares Percentage
14.02%
48,666,666
Voting Rights
The voting rights attached to each class of equity securities are set out below.
(a) Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and
upon a poll each share shall have one vote.
95
For personal use only
Potash West NL
A.C.N. 147 346 334
Shareholder Information (continued)
Unlisted options as at 30 June 2016
Details of unlisted option holders are as follow:
Class of unlisted options
No. Options
Options exercisable at $0.40 on or before 8 September 2016
Holders of more than 20% of this class
Options exercisable at $0.60 on or before 8 September 2016
Holders of more than 20% of this class
100,000
1
100,000
1
Options exercisable at $0.15 on or before 7 February 2017
500,000
Holders of more than 20% of this class
1
Options exercisable at $0.087 on or before 6 November 2017
1,992,188
Holders of more than 20% of this class
2
96
For personal use only
Potash West NL
A.C.N. 147 346 334
Tenement Register
Tenements (Australia) as at 6 September 2016
Tenements Name
Project
Holder
Details
Dinner Hill
E70/3987
Richmond Resources Pty Ltd
100% Mineral Rights for Potash
Dalaroo North
E70/3988
Richmond Resources Pty Ltd
100% Mineral Rights for Potash
Daraloo South
E70/3989
Richmond Resources Pty Ltd
100% Mineral Rights for Potash
Mogumber
E70/4124
Potash West NL
100% Mineral Rights for Potash
Jam Hill
Bald Hill
E70/4137
Potash West NL
100% Mineral Rights for Potash
E70/4138
Potash West NL
100% Mineral Rights for Potash
Ingra Hills
E70/4139
Potash West NL
100% Mineral Rights for Potash
Watheroo
E70/4471
Potash West NL
100% Mineral Rights for Potash
Dandaragan
E70/4609
Potash West NL
100% Mineral Rights for Potash
Dandaragan
E70/4687
Potash West NL
Lake Barlee
E29/985
Potash West NL
Lake Barlee
E57/1051
Potash West NL
Lake Barlee
E77/2381
Potash West NL
Lake Barlee
E77/2382
Potash West NL
Pending
Pending
Pending
Pending
Pending
97
For personal use only