PARKWAY MINERALS NL
A.C.N. 147 346 334
Annual Report
For the year ended
30 June 2018
For personal use only
Parkway Minerals 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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Parkway Minerals 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.parkwayminerals.com.au
Email info@parkwayminerals.com.au
Stock Exchange Listing
Parkway Minerals 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
Parkway Minerals Ltd (Parkway) is a fertiliser developer that controls vast quantities of raw materials close
to emerging and mature markets. Those raw materials comprise 'greensand'* deposits in the Dandaragan
Trough, close to the coast of Western Australia and only 150 kilometres north of Perth, the state's capital.
Indeed, the Dandaragan Trough hosts one of the largest known greensand deposits worldwide. Although
greensand is an unconventional source of fertiliser products, appropriate processing technology has the
potential to unlock vast resources.
The Dandaragan Trough boasts well-developed infrastructure networks, as well as access to fertiliser
blending operations and the established agricultural industries of the nearby Wheatbelt region. Significantly,
its greensand deposits contain abundant phosphate and potassium and, to date, Parkway is the only
company to successfully recover both elements from this type of material. Parkway’s proprietary KMax®
process can extract potassium from the greensand to produce sulphate of potash (SOP) of high purity. SOP
is a premium product that enjoys a significant, and increasing, margin over the more commonly traded
potassium chloride (MOP), and demand for SOP is increasing. Meanwhile, phosphate can be recovered from
the same greensand deposits by more conventional means.
The future of the fertiliser industry will be driven by population growth. Global population is forecast to increase
by between 30 and 50 per cent in the next 35 years, reducing the proportion of arable land per person by
around 40 per cent. Add to that the push to improve diets in the developing world and it is inevitable that more
food will have to be produced from smaller areas. Thus, improvements in food production and the food supply
chain as a whole are imperative if malnutrition is to be reduced and quality of life maintained worldwide.
Fertilisers represent one of the most cost-effective means of achieving this.
Parkway is fortunate in that it controls strategically located resources capable of supplying two of the three
most critical macro-fertilisers – phosphorous and potassium – and can meet the region's requirements for
both for many decades. Moreover, the location of Parkway's project gives it a distinct advantage in terms of
logistics, since Western Australia currently imports all of its phosphate and potash requirements, while our
regional neighbours are also net importers of these products.
In line with its focus on fertiliser feed, Parkway holds 32% of ASX-listed Davenport Resources (ASX: DAV),
which is enjoying considerable success in developing potash resources in Germany. More conventional in
nature, the German resources comprise buried evaporite deposits (that is, various salts containing high
concentrations of potassium).
Although depressed fertiliser prices have adversely affected Parkway's plans for commercialisation, the
outlook for potash is improving, creating optimism for the future. I would like to thank all Parkway shareholders
for their support over the past year, as well as the company's staff, who have helped Parkway achieve its
objectives in such a difficult economic climate. Finally, I look forward to a future in which demand for potash
grows and prices for it rise.
Adrian Griffin
Chairman
* Greensand is widely distributed in marine environments and found in ancient strata on the continents; it owes its
colour to the presence of glauconite, a potassium-bearing mineral
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Directors’ Report
The Directors present their report on Parkway Minerals NL and its controlled entities (“Parkway”, “the
Company” or “PWN”) for the year ended 30 June 2018.
Directors
The names and details of the Company’s directors in office during the financial year and until the date of this
report 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 (appointed 12 November 2010)
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
Minerals, 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 (appointed 23 November 2010)
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)
Davenport Resources NL (Chairman January 2017 – present).
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Directors’ Report (continued)
Chew Wai Chuen Non-Executive Director (appointed 26 November 2014)
Mr Chew was a financial advisor with more than 18 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 (appointed 30 June 2015)
Dr Natalia Streltsova is a senior executive with over 27 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
Elizabeth Hunt (resigned 7 March 2018)
Elizabeth Hunt has over fifteen years’ corporate and accounting experience with a particular interest in
governance. Elizabeth Hunt has been involved in the IPO management, corporate advisory and company
secretarial services,
reporting and ASX and ASIC compliance
management. Elizabeth Hunt holds a BSc degree in Sustainable Development and has completed a Master
of Accounting. She is a Fellow of the Governance Institute of Australia and is a Graduate of the Australian
Institute of Company Directors. Elizabeth Hunt is currently also Company Secretary of a number of ASX-
listed entities.
financial accounting and
Amanda Wilton-Heald (appointed 7 March 2018)
Ms Wilton-Heald is a Chartered Accountant and has more than 20 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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A.C.N. 147 346 334
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:
Number of ordinary
shares
Number of options
over ordinary
shares
Partly paid
contributing
shares
Adrian Griffin
Patrick McManus
Chew Wai Chuen
Natalia Streltsova
11,557,179
19,209,979
3,335,939
2,914,102
-
-
-
-
4,950,217
3,445,273
326,395
139,973
Dividends
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 expense for the year ended 30 June 2018 was $4,817,991 (2017: $1,784,884).
Financial Performance
Total income
Loss before tax
Loss after income tax expense
Loss per share (cents)
2018
$
169,793
(5,637,365)
(4,817,991)
(0.81)
2017
$
4,238,200
(1,399,013)
(1,784,884)
(0.43)
%
Increase/
(Decrease)
(95.99%)
302.95%
169.93%
88.37%
The financial position of the Group is presented in the attached Consolidated Statement of Financial Position.
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW
Introduction
During fiscal 2017-2018 Parkway Minerals NL (“Parkway” or “the Company”) continued work to progress its
fertiliser projects, drilling on Dandaragan Trough and Lake Barlee. Dandaragan Trough drilling has indicated
a possible second project in at Dambadgee. Lake Barlee drilling was disappointing. As of the date of this
report, Parkway owns 44 million shares in Davenport Resources, which has purchased potash mining
licences in Central Germany.
Key 2017-18 achievements included:
Identifying Dambadgee project within the Dandaragan Trough
•
• Process development improvements for beneficiation flowsheet, lifting the phosphate recovery
• Granted a further 17.88 M Davenport shares, through the conversion of milestone shares, based
on exploration success.
Our business strategy:
Parkway remains focused on fertiliser projects that meet the criteria of:
large-scale,
in regions of the world dependent on importing fertiliser products, with
•
•
• existing and robust export infrastructure, and
•
low sovereign risk.
Parkway’s current projects, Dinner Hill within the Dandaragan Trough and its shareholding in Davenport,
growing the South Harz project in central Germany, meet these criteria and have the potential to be major
fertiliser suppliers for many decades.
PROJECT SUMMARY
DANDARAGAN TROUGH
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 Fertiliser Project, which
covers an area of more than 1,050 km2 . 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.
The Company also reviewed its tenement holding in the Dandaragan Trough. In order to reduce the
significant holding costs associated with this extensive landholding, the Company has reduced some
tenements size and withdrew from other tenements in the Dandaragan Trough. The areas affected were
considered to be less prospective for mineralisation. These areas were also outside of the Dinner Hill
resource area and the highly prospective Dambadgee project. The acquisition costs of the Dandaragan
Trough were written off during the financial year (refer to note 11).
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Figure 1: Dandaragan Trough location
The development strategy is to commence operations with a 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 would follow and would use Parkways 100% owned
K-Max technology to produce sulphate of potash (“SOP”), high magnesium SOP, phosphoric acid, alum, and
iron oxide.
Scoping Study Strategy
The scoping study (ASX release 30 September 2015) examined the production of single superphosphate
(SSP) at a site near the Dinner Hill deposit for 40 years. The ore will be processed through a beneficiation
and acidulation plant, the flowsheet is shown in 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.
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Figure 2: Phosphate Process Flowsheet
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 flowsheet is shown in Figure 3.
Figure 3: K-Max Process Flowsheet
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Testwork carried out by Kemworks Technology Inc, specialists in phosphate process technology, highlighted
the ability to use specialised process technology to increase the phosphate separation, from the raw ore. A
simpler, lower energy, flowsheet is likely to produce similar metallurgical results. Further work is required to
confirm this and to quantify the effects.
The Company worked with FTI Consulting during the year, targeting Joint Venture partners to develop Dinner
Hill. No parties have advanced to exclusivity agreements.
Exploration drilling
Drilling was carried out over Dambadgee, within the two Dambadgee Exploration Targets (refer table 3 and
Figure 7). This has increased that regions prospectivity to host a large, thick, resource of greensand. One
“fence-line” of aircore drilling over a distance of approximately 10 km showed thickness’s up to 57metres,
and averaged +30 metres of Molecap greensands, substantially thicker than the Dinner Hill resource (refer
ASX release 21 August 2018). Further drilling will establish the size, grade and mining parameters of this
target.
Annual Mineral Resource Statement as at 30 June 2018
The September 2017 resource update used drilling carried out in between 2011 and 2016 comprising a 222
aircore drill holes for 8,143m and 93 SG samples taken from four PQ diamond drill holes completed in 2012.
The resource covers an area of some 52 km2 (Figure 4).
The Dinner Hill Deposit contains an Indicated Mineral Resource of phosphate mineralisation of 160Mt at 2.45%
P2O5 and 4.2% K2O and an Inferred Mineral Resource of 470Mt at 1.7% P2O5 and 4.4% K2O.
Within the phosphate resource area there is a Potash Resource of 630Mt at 4.4 % K2O (Indicated 160 Mt at
4.2% K2O, Inferred 470Mt at 4.4% K2O). An additional Indicated Mineral Resource of 50Mt at 2.65% K2O
and an additional Inferred Mineral Resource of 250Mt at 2.6% K2O occur marginal to the phosphate resource.
Resource
Phosphate
Potash
Potash resources included within
the phosphate resource area
Potash resource outside the
phosphate resource area
Total Potash Resources
Category
Indicated
Inferred
Total
Indicated
Inferred
Totals
Indicated
Inferred
Totals
Indicated
Inferred
Totals
NB: Totals may differ from sum of individual items due to rounding
Table 1: Dinner Hill Resource
Tonnes
(Mt)
160
470
630
P2O5
(%)
2.45
1.7
1.85
160
470
630
50
230
280
210
700
910
K2O
(%)
4.2
4.4
4.3
4.2
4.4
4.3
2.65
2.6
2.6
3.8
3.8
3.8
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Figure 4: Dinner Hill Resource boundaries - phosphate resource (blue), potash resource (green), drill-hole locations and tenement
boundaries (red)
Figure 5: Dinner Hill Deposit - Cross-section 663 7200N - showing geological formations and intersection grades
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Exploration Targets
As part of the resource update for Dinner Hill, Exploration Targets were updated. The Dinner Hill
Exploration Target has been reduced, as displayed in Table 2:
Previous (22 July 2015)
Current (26 Sept 2017)
Phosphate
Potash, K-Max
Tonnes,
Millions
550 to 800
250 to 300
%P2O5
2-2.8
1.5-1.8
Tonnes,
Millions
1,200 to 1,800
800 to 1,600
%K2O
3.5-4.0
3.8-4.4
Table 2: Dinner Hill Deposit Exploration Target
Note: The potential quantity and grade of the targets are conceptual in nature, as there has been insufficient exploration
to estimate Mineral Resources over their areas and as it is uncertain if further exploration will result in the estimation of
Mineral Resources.
The reduction is a function of material being reclassified to Inferred Resource, and extending the Target area,
based on recent drilling. Figure 6 shows the Dinner Hill Resource and Exploration Target areas.
Figure 6: Dinner Hill Resources and Exploration Target Plan
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Additional Exploration Targets have been identified on four advanced prospects within the Dandaragan
Trough Project area to the south of the Dinner Hill Deposit, within the same geological sequence. The location
of the Exploration Target areas is shown in Figure 7 and the target sizes and grades are summarised in Table
3:
Project Area
Badgingarra Road
Dambadgee West
Dambadgee
Attunga
Totals
Phosphate
Phosphate
Grade P2O5
Tonnage (Mt)
2 to 3
60 to 100
1.5 to 2
300 to 350
1.5 to 2.5
200 to 250
1.5 to 2
30 to 45
1.5 to 2.5
590 to 745
Table 3: Dandaragan Trough Fertiliser Project Exploration Targets
Note: The potential quantity and grade of the targets are conceptual in nature, as there has been insufficient exploration
to estimate Mineral Resources over their areas and as it is uncertain if further exploration will result in the estimation of
Mineral Resources.
Potash
Tonnage (Mt)
600 to 900
2000 to 2750
1200 to 1500
750 to 1000
4550 to 6150
Potash
Grade K2O%
4 to 5
3 to 4
3 to 3.5
3.5 to 4
3.2 to 4
Figure 7: Dandaragan Trough Fertiliser Project Exploration Targets
These additional Exploration Targets indicate the potential of the Dandaragan Trough to be a long-term
source of phosphate and potash fertilisers to local, regional and international agriculture.
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
PROJECT SUMMARY
LAKE BARLEE
The Lake Barlee project covered over 1800 km2 of exploration tenure, covering the bulk of the large salt
lake located between Southern Cross and Sandstone in Western Australia (Figure 8). The lake is
essentially dry, and the lake body is filled with clay sediments. Seismic programmes confirmed the
presence of deep palaeochannels beneath the lake floor (Figure 9), indicating potential for accumulations of
sands and gravels. Those sands would provide a reservoir to allow rapid extraction of brines, using
pumping, with replenishment taking place over a larger area of the lake.
A drill programme conducted over the palaeochannels confirmed the existence of sand at the bottom of the
channels. Unfortunately the brines showed low levels of potassium, which is unlikely to support a mining
project, at current prices.
Figure 8: Lake Barlee Tenements
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Figure 9: Lake Barlee Seismic results
GERMANY
South Harz Project (owned by Davenport Resources Limited, which Parkway has a 33% interest in
at the date of this report)
Parkway now owns 44 M Davenport shares at the date of this report. During the year:
• Parkway was issued 17.88 M shares on the milestone of reaching a JORC Compliant Resource
within the South Harz Project, and
• Subsequently purchased 7.1 M shares through a capital raising which closed on 5 July 2018
Davenport owns two exploration licences and three mining licences in the South Harz region of central
Germany (Figure 10).
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 10: South Harz Project location
Davenport has purchased 3 mining licences within the South Harz field from the German Government.
Covering 216 km2 . The Licences have been drilled extensively and a substantial amount of geological data
is available. The licences are perpetual, have no expenditure commitment liabilities and appear to have been
part of short term mining plans, prior to German Reunification.
Review of the data has already allowed establishment of a JORC Inferred Resource, including 324 M tonnes
of Silvinite at a grade of 15.6% K2O (refer ASX announcement 3 April 2018). Further data review is in
progress and it is anticipated priority drill targets will be identified within 6 months.
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
K-Max technology
Parkway Minerals 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 been granted a
patent 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.
Parkway owns 7.3 million Lithium Australia (ASX: LIT) shares. Lithium is a commodity which is facing very
strong demand growth. Lithium Australia has developed a business model focussed on lithium, both exploring
for lithium ores and using new technology to unlock value from lithium ores, including unconventional hard-
rock minerals. LIT is active in several parts of the world in exploration in its own name and joint ventures.
Corporate Activity
Parkway was issued a further 17.88 M Davenport shares in April 2018. These were performance shares to
be granted on achieving a JORC Inferred Resource of a certain tonneage and grade. The Ebeleben resource
announced in April 2018 met that objective.
The second tranche of performance shares was cancelled with the agreement of all shareholders. They were
to be granted on a decision to mine being made within 5 years of January 2017. Davenports corporate
advisors considered that performance shares were perceived as an overhang and that there was little
likelihood of this milestone being triggered.
At the date of this report, Parkway owns 44 M Davenport Resources Limited shares, representing approx.
33% of the issued capital of Davenport.
Parkway raised $1.38 M in October 2017, via a Share Purchase Plan and issue to Sophisticated Investors.
Proceeds were used to carry out exploration on Lake Barlee (Seismic and drilling) and Dandaragan Trough
(process testwork and drilling). $0.50 M was raised in June 2018 and used to purchase Davenport shares in
a capital raising.
On 19 January 2018 The Company announced that it had entered into a Controlled Placement Agreement
(CPA) with Acuity Capital. The CPA will provide PWN with up to $3 million of standby equity capital over the
coming 3 years.
PWN retains full control of all aspects of the placement process: having sole discretion as to whether or not
to utilize the CPA, the quantum of issued shares the minimum issue price of shares and the timing of each
placement tranche, if any. There are no requirements for PWN to utilize the CPA and PWN may terminate
the CPA at any time, without cost or penalty.
Acuity Capital and the CPA do not place any restrictions, at any time, on PWN raising capital through other
methods. If PWN utilizes the CPA, PWN is able to set a floor price (at its sole discretion) and the final issue
price will be calculated as the greater of that floor price, set by PWN, and a 10% discount to a Volume
Weighted Average Price (VWAP) over a period of PWN’s choosing (at the sole discretion of PWN).
As collateral for the CPA, PWN has placed 24 million shares from its LR7.1 capacity at nil consideration to
Acuity Capital (collateral shares). Acuity Capital will return the Collateral Shares to PWN, for nil
consideration, at the end of the term of the CPA. Further, PWN may, at any time, cancel the CPA and buy
back the Collateral Shares for nil consideration (subject to shareholder approval).
Parkway monitors activities and opportunities that maybe relevant to the company’s objectives. This may
include expanding or changing the scope of existing projects or engaging with third parties on other projects.
If a proposal advances, details would be announced in accordance with the Company’s continuous disclosure
obligations.
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
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.
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
Parkway Minerals, are inherently subject to significant uncertainties and contingencies.
Parkway Minerals 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.
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
On 5 July 2018, the Group was issued a further 7.1 million shares in Davenport Resources Limited,
following the subscription paid in June 2018. Following this issue of shares, the group holds a 33% interest
in Davenport Resources Limited.
On 21 August 2018, the Company issued 50,126,000 free-attaching options in respect of the placement
which occurred on 29 June 2018. The company also issued 5,000,000 unlisted options to brokers. These
options are exercisable at $0.02 each and expire on 17 August 2020.
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.
Likely Developments and expected results
The Company will advance the Dinner Hill and Dambadgee projects, within the Dandaragan Trough,
through exploring opportunities to progress both the phosphate and the K-Max projects.
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.
19
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A.C.N. 147 346 334
Directors’ Report (continued)
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
Similarly, the indemnity does not extend to liability for legal costs and expense:
(c)
(d)
(e)
(f)
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. Similarly, the indemnity does not extend to liability
for legal costs and expenses:
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 85,930,503 (2017: 22,796,691) 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.
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Directors’ Report (continued)
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 Ernst & Young for:
- research & development tax concession
- tax compliance
Directors’ meetings
2018
$
2017
$
6,979
14,214
21,193
15,169
4,635
19,804
Meetings of directors held and their attendance during the financial year were as follows:
Name of
director:
Directors’
meetings
attended
Directors’
meeting
held
whilst in
office
Audit and
Risk
Committee
meetings
held
Audit and
Risk
Committee
meetings
attended
Remuneration
Committee
meetings held
Remuneration
Committee
meetings
attended
Nomination
committee
meetings
held
Nomination
committee
meetings
attended
Adrian
Griffin
Patrick
McManus
Chew Wai
Chu
Natalia
Streltsova
6
6
6
6
6
6
5
6
2
-
2
2
2
-
2
2
1
-
1
1
1
-
1
1
1
-
1
1
1
-
1
1
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.
The remuneration report for 2017 was adopted at the 2017 Annual General meeting. 9,051,697 votes were
in favour of the report and 808,289 were against. No questions or comments were raised relating to the report.
No remuneration consultants were used during the year.
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Directors’ Report (continued)
Remuneration Report (audited) (continued)
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:
James Guy
Robert Van Der Laan
Exploration Manager
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.
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.
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Directors’ Report (continued)
Remuneration Report (audited) (continued)
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 (2017: $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.
As an incentive to employees, Directors, executive officers and consultants, the Company has adopted a
scheme called the Parkway Minerals 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.
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Directors’ Report (continued)
Remuneration Report (audited) (continued)
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:
2018
$
2017
$
2016
$
2015
$
2014
$
2013
$
2012
$
Net loss from
continuing operations
after income tax
Basic earnings/(loss)
per share in cents
Share Price in Cents
(4,817,991)
(1,784,884)
(184,648)
(2,871,003)
(1,822,505)
(4,193,632)
(3,900,096)
(0.81)
(0.43)
(0.07)
(1.33)
1.0
1.0
3.2
4.9
(1.72)
3.60
(5.85)
12.0
(5.76)
23.0
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.
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. There were no LTI awards issued during the current or prior year.
24
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A.C.N. 147 346 334
Directors’ Report (continued)
Remuneration Report (audited) (continued)
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 – James Guy
On 22 September 2016, the Company and a company associated with Mr James Guy entered into an
agreement containing the terms and conditions under which the services of the Exploration Manager are
provided to the Company. In the event of termination, there is no notice period required.
The agreement involves the payment to a company associated with Mr Guy of monthly fee of $4,000 and he
will sacrifice 30% of additional consulting fees at a rate of $112 per hour in shares. Transaction is considered
to be on normal commercial terms and conditions no more favourable than those available to other parties.
Directors’ Remuneration 2018
Short-term
Post-employment benefits
Directors’
Fees
$
Salary and
Consulting
Fees
$
Superannuation Termination
Share and Option
Based Payments
Contribution
$
Benefits
$
Shares Options
$
$
Total
$
Director
Adrian
Griffin
Patrick
McManus
Chew Wai
Chuen
Natalia
Streltsova
Total
57,534
-
7,808
- 24,658
-
205,055
23,858
- 75,343
35,000
-
- - 15,000
31,963
-
4,338
-
13,699
124,497
205,055
36,004
- 128,700
-
-
-
-
-
90,000
304,256
50,000
50,000
494,256
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A.C.N. 147 346 334
Directors’ Report (continued)
Remuneration Report (audited) (continued)
Executives’ Remuneration 2018
Short-term
Salary
$
Consulting
Fees
$
Post-employment benefits
Superannuation Termination
Contribution
$
Benefits
$
Share and Option
Based Payments
Shares Options
$
$
-
-
-
69,260
- - 9,726
99,320
-
-
-
168,580
- - 9,726
-
-
-
Total
$
78,986
99,320
178,306
124,497
373,635
36,004
- 138,426
-
672,562
Executive
James Guy
Robert Van
der Laan
Total
Total
Directors’ and
Executives’
Remuneration
Directors’ Remuneration 2017
Short-term
Post-employment benefits
Directors’
Fees
$
Salary and
Consulting
Fees
$
Superannuation Termination
Share and Option
Based Payments
Contribution
$
Benefits
$
Shares Options
$
$
Total
$
57,534
-
7,808
- 24,658
-
90,000
175,799
23,858
- 75,343
- 275,000
-
35,000
-
- - 15,000
-
50,000
31,963
-
4,338
-
13,699
124,497
175,799
36,004
- 128,700
-
-
50,000
465,000
Executives’ Remuneration 2017
Short-term
Post-employment benefits
Consulting Superannuation Termination
Contribution
$
Benefits
$
Share and Option
Based Payments
Shares Options
$
$
-
-
-
- - 4,751
-
-
Salary
$
Fees
$
4,490
- 50,102
-
Total
$
4,490
54,853
-
119,035
- 173,627
-
-
-
- - 4,751
-
119,035
- 178,378
124,497
349,426
36,004
- 133,451
- 643,378
Director
Adrian Griffin
Patrick
McManus
Chew Wai
Chuen
Natalia
Streltsova
Total
Executive
Lindsay Cahill*
James Guy**
Robert Van der
Laan
Total
Total Directors’
and Executives’
Remuneration
*Resigned 22 September 2016
**Commenced 22 September 2016
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A.C.N. 147 346 334
Directors’ Report (continued)
Remuneration Report (audited) (continued)
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 2018 (2017: nil). The shares issued to key management personnel as disclosed in the table
above were in lieu of Directors’ fees and consulting fees.
Options
There were no options granted to key management personnel as part of the incentive plan during the year
ended 30 June 2018 (2017: nil).
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A.C.N. 147 346 334
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
2018
Directors
Adrian Griffin
Patrick McManus
Chew Wai Chuen
Natalia Streltsova
Total
Executives
James Guy
Robert Van der Laan
Total
Balance at 1 July
2017
Ordinary
Granted as
remuneration
Ordinary*
On Exercise of
Options
Ordinary
Net change other
Ordinary
Balance at 30 June
2018
Ordinary
9,315,634
10,860,829
1,972,335
1,168,805
23,317,603
2,241,545
6,849,150
1,363,604
1,245,297
11,699,596
-
-
-
-
-
-
1,500,000
-
500,000
2,000,000
11,557,179
19,209,979
3,335,939
2,914,102
37,017,199
275,179
8,536,751
8,811,930
980,117
-
- -
980,117
-
-
30,750,000**
30,750,000
1,255,296
39,286,751
40,542,047
Total Directors' and Executives’ Share holdings
32,129,533
12,679,713
-
32,750,000
77,559,246
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Directors’ Report (continued)
Remuneration Report (audited) (continued)
*Shares granted as remuneration were as follows:
Adrian Griffin
-
-
1,103,106 shares at $0.0112 each issued on 19 January 2018
1,138,439 shares at $0.0108 each issued on 29 June 2018
Patrick McManus
-
-
3,370,594 shares at $0.0112 each issued on 19 January 2018
3,478,556 shares at $0.0108 each issued on 29 June 2018
Chew Wai Chuen
-
-
671,055 shares at $0.0112 each issued on 19 January 2018
692,549 shares at $0.0108 each issued on 29 June 2018
Natalie Streltsova
-
-
James Guy
-
-
612,834 shares at $0.0112 each issued on 19 January 2018
632,463 shares at $0.0108 each issued on 29 June 2018
397,337 shares at $0.0111 each issued on 19 January 2018
582,780 shares at $0.0107 each issued on 29 June 2018
** Robert Van der Laan is entitled to 25,250,000 free-attaching options as part of a placement, that were subsequently issued on 21 August 2018 after shareholders’ approval.
(b) Partly Paid Contributing Shares of Key Management Personnel
2018
Directors
Adrian Griffin
Patrick McManus
Chew Wai Chuen
Natalia Streltsova
Total
Executives
James Guy
Robert Van der Laan
Total
Balance at 1 July
2017
Partly Paid
Granted as
remuneration
Partly Paid
On Exercise of Options Bonus issue received
Partly Paid
Partly Paid
Balance at 30 June
2018
Partly Paid
4,950,217
3,445,273
326,395
139,973
8,861,858
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,950,217
3,445,273
326,395
139,973
8,861,858
-
3,178,610
3,178,610
-
-
-
-
-
-
-
-
-
-
3,178,610
3,178,610
Total Directors' and Executives’ Share holdings
12,040,468
-
-
-
12,040,468
29
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Remuneration Report (audited) (continued)
Parkway Minerals NL
A.C.N. 147 346 334
The partly paid contributing share are issued with outstanding calls of 4.9 cents each. 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 call becoming
payable.
(c) Option holdings of Key Management Personnel
2018: There were no Options granted to Key management personnel as part of the incentive plan during the year
ended 30 June 2018. Refer to note (a) above regarding options that KMP were issued subsequent to year-end which
were free-attaching to the placement completed on 29 June 2018.
2017: There were no Options granted to Key management personnel as part of the incentive plan during the year
ended 30 June 2017.
(d) Other Transactions with Key Management Personnel
Other transactions with key management personnel are set out below:
Corporate advisory were paid to Precious Capital Pte Ltd, a company
of which Chew Wai Chuen is a director and shareholder
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 staff (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 conditions.
30-Jun-18
$
30-Jun-17
$
9,220
9,454
165,041
174,261
148,526
157,980
Trade and other payables to related party as at 30 June 2018 amounted to $23,549 (30 June 2017: $26,579).
All related party transactions are considered to be on an arms’ length basis.
End of Remuneration Report (audited).
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 31 and forms part of this report.
This report is made in accordance with a resolution of directors.
Patrick McManus
Managing Director
Perth
Dated: 27 September 2018
30
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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
Auditor’s Independence Declaration to the Directors of Parkway Minerals
NL
As lead auditor for the audit of Parkway Minerals NL for the financial year ended 30 June 2018, 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 Parkway Minerals NL and the entities it controlled during the financial
year.
Ernst & Young
V L Hoang
Partner
27 September 2018
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
MH:KG:PARKWAY:008
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Parkway Minerals 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: 29 August 2018.
Yes
Compliance Reference
Principle / Recommendation
Principle 1:
Lay solid foundations for management and oversight
Recommendation 1.1
A listed entity should disclose:
a)
the respective roles and
responsibilities of its board and
management; and
b)
reserved to the board and those
delegated to management.
those matters expressly
Board
Charter
Code of
Conduct,
Independent
Professional
Advice
Policy
Website
Commentary
To add value to the Company the
Board has been formed so that it has
effective composition, size and
commitment to adequately discharge
its 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 Company in accordance
with 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 carrying out its governance role, the
main task of the Board is to drive the
performance of 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 final responsibility
for the successful operations of the
Company. To assist the Board carry
its functions, it has developed a Code
of Conduct to guide the Directors.
32
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
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.
• 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.
• Shareholder Liaison: ensuring
effective communications with
shareholders through an
appropriate communications
policy and 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 on the price or value of
the entity’s securities.
• Monitoring, Compliance and
Risk Management: the
development of the Company’s
risk management, compliance,
control and accountability
systems and monitoring and
directing the financial and
operational performance of the
Company.
33
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
• Company Finances: approving
expenses and approving and
monitoring acquisitions,
divestitures and financial and
other reporting along with
ensuring the integrity of the
Company’s financial and other
reporting.
• Human Resources: reviewing
the performance of Executive
Officers and monitoring the
performance of senior
management in their
implementation of the
Company’s strategy.
• Ensuring the health, safety and
well-being of employees: in
conjunction with the senior
management team,
developing, overseeing and
reviewing the effectiveness of
the Company’s occupational
health and safety systems to
ensure the well-being of all
employees.
• Delegation of Authority:
delegating appropriate powers
to the Managing Director to
ensure the effective day-to-day
management of the Company
and establishing and
determining the powers and
functions of the Committees of
the Board.
• Monitoring the effectiveness of
the Company’s corporate
governance practices.
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.
34
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
undertake appropriate
Recommendation 1.2
A listed entity should:
a)
checks before appointing a
person, or putting forward to
security holders a candidate for
election, as a director; and
b)
with all material information in its
possession relevant to a decision
on whether or not to elect or re-
elect a director.
provide security holders
Directors are appointed based on the
specific 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.
In determining candidates for the
Board, 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
will identify the particular skills that will
best increase the Board's
effectiveness. Consideration is also
given to the balance of 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, time commitment
required, 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.
Director
Selection
Procedure
Website
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
35
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Each Executive Director’s agreement
with the Company includes the same
details as the non-executive directors’
agreements but also includes a
position description, reporting
hierarchy and termination clauses.
The Nomination Committee is
responsible 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.
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.
Full details of the Board’s and
Company Secretary’s roles and
responsibilities are contained in the
Board Charter.
The Company recognises and
respects the value of diversity at all
levels of the organisation. The
Company is committed to setting
measurable objectives for attracting
and engaging women at the Board
level, in senior management and
across the whole organisation.
The Diversity Policy was re-adopted
during the year and the Company set
the following objectives for the
employment of women:
•
•
target set
•
to the Board – 25% by 2019
to senior management – no
to the organisation as a whole –
20% by 2019
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) – 20%
to the organisation as a whole –
20%
36
Recommendation 1.3
Yes
A listed entity should have a
written agreement with each
director and senior executive
setting out the terms of their
appointment.
Recommendation 1.4
Yes
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.
Kept at
registered
office,
Independent
Professional
Advice
Policy
Board
Charter
Website
Recommendation 1.5
Yes
A listed entity should:
Diversity
Policy
Website
a)
b)
c)
have a diversity policy
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;
disclose that policy or a
summary of it; and
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:
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
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.
Recommendation 1.6:
A listed entity should:
2)
a) have and disclose a
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 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.
The Company recognises that 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. Where possible,
the Company will seek to identify
suitable candidates for positions from
a diverse pool. The presence of Chew
Wai Chuen on the Board provides a
different cultural view to the operations
of the Company.
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
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
performance of the individuals was
formally carried out. From this
evaluation, a few areas for
improvement were noted.
Yes
Yes
Principle 2: Structure the board to add value
Recommendation 2.1
The board of a listed entity
should:
a) have a nomination
committee which:
1) has at least three
Yes
members, a majority of
whom are independent
directors; and
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
37
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
3)
4)
2)
is chaired by an
independent director,
and disclose:
the charter of the
committee;
the members of the
committee; and
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.
b)
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. 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 succession plans
including the Managing Director and
his/her direct reports and evaluate the
Board’s performance and make
recommendations for the appointment
and removal of Directors. Matters
such as 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.
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.
Yes
Internal
management
document
Recommendation 2.3
A listed entity should disclose:
Yes
a)
b)
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
Board
Charter,
Independence
of Directors
Assessment
Website
38
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.
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;
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
director, the nature of the
interest, position,
association or relationship
in question and an
explanation of why the
board is of that opinion;
and
c) the length of service of
each director.
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;
6. has no material contractual
5.
relationship with the Company
or other group member other
than as a Director of the
Company;
7. has not served on the Board
8.
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
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 be considered material when
assessing independence.
Adrian Griffin (appointed 12
November 2010) is a Non-Executive
Director and Chairman of the
39
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Company and meets the Company’s
criteria for independence. Although
Adrian Griffin has entered into a profit
á prendre re mineral interest rights
with the Company, he is still
considered to be independent as the
agreement is not considered to be
material as the proportion vended in
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 the Board and in
his position as Chairman.
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
his contribution to the Board such that
it is appropriate for him to remain on
the Board and in his position as a
Non-Executive Director.
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 to
the Board such that it is appropriate
for her to remain on the Board and in
her position as a Non-Executive
Director.
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.
The Board has a majority of Directors
who are independent.
The Chairperson is an independent
Director who is not the CEO /
Managing Director.
Yes
Yes
Recommendation 2.4
A majority of the board of a
listed entity should be
independent directors.
Recommendation 2.5
The chair of the board of a listed
entity should be an independent
director and, in particular,
should not be the same person as
the CEO of the entity.
Independence
of Directors
Assessment
Website
Independence
of Directors
Assessment
Website
40
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Yes
Recommendation 2.6
A listed entity should have a
program for inducting new
directors and provide appropriate
professional development
opportunities for directors to
develop and maintain the skills
and knowledge needed to perform
their role as directors effectively.
Director
Induction
Program,
Ongoing
Education
Framework
Website
Principle 3: Act ethically and responsibly
Recommendation 3.1
A listed entity should:
a) have a code of conduct for
Yes
Code of
Conduct
Website
its directors, senior
executives and employees;
and
b) disclose that code or a
summary of it.
Principle 4: Safeguard integrity in corporate reporting
Recommendation 4.1
The board of a listed entity
should: (a) have an audit
committee which:
a) has at least three
Audit and Risk
Committee
Charter
Website
Yes
1)
members, all of whom are
non-executive directors and
a majority of whom are
independent directors; and
is chaired by an
independent director, who
is not the chair of the
board,
and disclose:
41
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 Director;
formal policies on Director
appointment as well as
conduct and contribution
expectations;
• a copy of the Corporate
Governance Statement,
Charters, Policies and
Memos 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.
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, clients, customers,
government authorities, creditors and
the community as whole.
The Audit and Risk Committee
consists of Barry Woodhouse (Chair
of the Audit and Risk 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.
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
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 three times during the
year and one member at the time
wasn’t present for one meeting.
Yes
Kept at
registered
office
The Managing Director and the Chief
Financial Officer provide a declaration
to the Board 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 is operating
effectively in all material respects in
relation to financial reporting risks.
2) the charter of the
3)
committee;
the relevant qualifications
and
5)
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
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 board of a listed entity
should, before it approves the
entity’s financial statements for
a financial period, receive from
its C E O and CFO a declaration
that, in their opinion, the financial
records of the entity have been
properly maintained and that the
financial statements comply with
the appropriate accounting
standards and give a true and
fair view of the financial position
and performance of the entity
and that the opinion has been
formed on the basis of a sound
system of risk management and
internal control which is operating
effectively.
Yes
AGM
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.
Principle 5: Make timely and balanced disclosure
Recommendation 5.1
A listed entity should:
a) have a written policy for
complying with its
Yes
Continuous
Disclosure
Policy
Website
The external auditor is invited to
attend every AGM for the purpose of
answering questions from security
holders relevant to the audit.
The Board has designated the
Company Secretary as the person
responsible for overseeing and
coordinating disclosure of information
42
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
continuous disclosure
obligations under the Listing
Rules; and
b) disclose that policy or a
summary of it.
Principle 6: Respect the rights of security holders
Recommendation 6.1
A listed entity should provide
information about itself and its
governance to investors via its
website.
Disclosure
Policy
Website
Yes Website
Recommendation 6.2
A listed entity should design and
implement an investor relations
program to facilitate effective two-
way communication with
investors.
Yes
Shareholder
Communication
Policy, Social
Media Policy
Website
43
to the ASX as well as communicating
with the ASX. In accordance with the
ASX Listing Rules the Company
immediately notifies the ASX of
information:
2.
1. concerning the Company that a
reasonable person would
expect to have a material effect
on the price or value of 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.
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
• 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
The Company respects the rights of its
shareholders and to facilitate the
effective exercise of those rights the
Company is committed to:
•
communicating effectively with
shareholders through releases to
the market via ASX, information
mailed to shareholders and the
general meetings of the
Company;
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
•
• giving shareholders ready
access to balanced and
understandable information
about the Company and
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 Company respects the rights of its
shareholders and to facilitate the
effective exercise of those rights the
Company is committed to making it easy
for shareholders to participate in
shareholder meetings of the Company.
The Company also makes available a
telephone number and email address for
shareholders to make enquiries of the
Company.
Shareholders are regularly given the
opportunity to receive communications
electronically.
The Board has not established a
separate Risk Committee, rather, risk is
addressed through the combined Audit
and 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. 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 Audit and
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
in the capacity of the Risk Committee by
ensuring that the Director with conflicting
interests is not party to the relevant
discussions.
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
Yes
Recommendation 6.4
A listed entity should give security
holders the option to receive
communications from and send
communications to, the entity
and its security registry
electronically.
Principle 7: Recognise and manage risk
Recommendation 7.1
The board of a listed entity
should:
a) have a committee or
No
committees to oversee risk,
each of which:
1) has at least three
Shareholder
Communication
Policy
Website
Risk
Management
Policy
Website
2)
3)
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
5) as at the end of eash
reporting period, the
number of times the
committee met throughout
the period and the
individual attendances of
4)
44
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
b)
the members at those
meetings; or
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
The board or a committee of the
board should:
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
45
The Audit and Risk Committee met three
times 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.
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 framework. The objectives of the
Company’s Risk Management Strategy
are to:
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 risk through various
arrangements including:
regular Board meetings;
•
share price monitoring;
•
• market monitoring; and
•
regular review of financial
position and operations.
The Company has developed a Risk
Register in order to assist with the risk
management of the Company. The
Company’s Risk Management Policy is
considered a sound strategy 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.
The Board is responsible for the
oversight of the Company’s risk
management and 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 Board for the risk management
and control framework. Arrangements
put in place by the Board to monitor risk
management include:
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
•
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.
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 which include overseeing the
establishment and implementation by
management of a system for identifying,
assessing, monitoring and managing
material risk throughout the 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 independent internal audit function,
the expense of an independent internal
auditor is not considered to be
appropriate.
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.
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 Chair of the
Remuneration Committee is Adrian
Griffin, an independent director. The
Remuneration Committee met once
during the financial year ended and all
members at the time were present. The
responsibilities of the Remuneration
Committee include setting policies for
No
Audit and Risk
Committee
Charter
Website
Recommendation 7.3
A listed entity should 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.
b)
Yes
Corporate
Governance
Statement
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.
Principle 8: Remunerate fairly and responsibly
Recommendation 8.1
The board of a listed entity
should:
a) have a remuneration
committee which:
1) has at least three
Yes
Remuneration
Committee
Charter,
Independent
Professional
Advice Policy
Website
2)
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
5) as at the end of each
reporting period, the
4)
3)
46
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
senior officers’ remuneration, setting the
terms and conditions of employment for
the Managing 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.
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 from entering into
transactions or arrangements which limit
the economic risk of participating in
unvested entitlements.
b)
Number of times the
committee met throughout
the period and the
indivisudal attendances of
the members at those
meeting; or
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.
Yes
Remuneration
Policy
Website
Recommendation 8.2
A listed entity should separately
disclose its policies and practices
regarding the remuneration of
non-executive directors and the
remuneration of executive
directors and other senior
executives.
Recommendation 8.3
A listed entity which has an
equity-based remuneration
scheme should:
Yes
Remuneration
Policy
Website
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.
47
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2018
INCOME FROM CONTINUING ACTIVITIES
Fee income
Stamp Duty Refund
Gain on disposal of Subsidiary
Option Fee received
Interest
Government Grant
TOTAL INCOME
EXPENSES
Write-off of exploration expenditure
Impairment of financial assets
Impairment of investment in associate
Loss in sale of financial assets
Administration
Depreciation
Equity based payments
Exploration
Legal
Occupancy
Remuneration (excluding share based payments)
Share of net losses of associate
LOSS BEFORE INCOME TAX
Income Tax Benefit/(Expense)
NET LOSS FOR THE YEAR
OTHER COMPREHENSIVE INCOME
Items that may be subsequently reclassified to profit or loss:
Available for sale financial assets
- Current year gain/(losses)
- Reclassified to profit or loss
For the year
ended 30 June
2018
For the year
ended 30 June
2017
Not
e
$
$
12
11
13
12
13
19
4
58,818
88,453
-
-
22,522
-
169,793
2,855,000
-
107,754
-
659,111
11,431
234,424
841,684
59,123
63,452
393,699
581,480
(5,637,365)
819,374
(4,817,991)
6,197
-
3,780,837
151,367
15,077
284,722
4,238,200
-
1,064,921
1,453,305
333,017
712,921
14,931
209,200
597,602
71,451
65,299
354,130
760,436
(1,399,013)
(385,871)
(1,784,884)
1,576,375
(1,064,921)
-
1,064,921
- Income tax on items that may be reclassified to profit or loss
Equity accounted investments - share of comprehensive income
12
TOTAL OTHER COMPREHENSIVE INCOME
(433,503)
36,112
1,178,984
-
-
-
TOTAL COMPREHENSIVE LOSS FOR THE YEAR
(3,639,007)
(1,784,884)
LOSS FOR THE YEAR ATTRIBUTABLE TO:
Members of the controlling entity
Non controlling interest
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Members of the controlling entity
Non controlling interest
(4,817,991)
(1,832,994)
-
48,110
(4,817,991)
(1,784,884)
(3,639,007)
(1,832,994)
-
48,110
(3,639,007)
(1,784,884)
Basic and diluted loss per share (cents per share)
7
(0.81)
(0.43)
The consolidated statement of comprehensive income should be read in conjunction with the accompanying
notes.
48
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2018
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other assets
Total Current Assets
NON CURRENT ASSETS
Trade and other receivables
Exploration and evaluation
Investment in associate
Available-for-sale financial assets
Plant and equipment
Total Non Current Assets
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Provisions
Total Current Liabilities
NON CURRENT LIABILITIES
Provisions
Deferred tax liabilities
Total Non Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed Equity
Reserves
Accumulated losses
TOTAL EQUITY
As at 30 June 2018 As at 30 June 2017
Note
$
$
8
9
10
9
11
12
13
14
15
16
16
4
17
18
1,145,018
136,681
35,918
1,317,617
500,000
-
2,413,115
687,990
45,827
3,646,932
4,964,549
402,071
114,982
517,053
-
-
-
517,053
1,881,039
23,898
12,310
1,917,247
-
2,590,000
1,636,243
541,609
44,045
4,811,897
6,729,144
186,294
63,107
249,401
22,619
385,871
408,490
657,891
4,447,496
6,071,253
22,974,071
1,890,627
(20,417,202)
4,447,496
20,981,821
688,643
(15,599,211)
6,071,253
The consolidated statement of financial position should be read in conjunction with the accompanying notes.
49
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2018
Contributed
equity
$
Accum-
ulated
Losses
$
Share Based
Payment
Reserve
$
AFS
Reserve
$
Non-controlling
interest
$
Total
$
Balance at 1 July 2016
17,634,147
(13,766,217)
648,934
Loss for the year
Other comprehensive income:
Available for sale financial asset losses
Reclassification to profit or loss
Total comprehensive loss for the
year
Transactions with owners in their
capacity as owners:
Shares issued
Share issued transaction costs
Share based payments
Deconsolidation of subsidiary
-
-
-
-
(1,832,994)
-
-
(1,832,994)
3,305,239
(236,515)
278,950
-
-
-
-
-
-
-
-
-
-
-
39,709
-
Balance as at 30 June 2017
20,981,821
(15,599,211)
688,643
The consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
-
-
(14,390)
4,502,474
48,110
(1,784,884)
(1,064,921)
1,064,921
-
(1,064,921)
1,064,921
-
48,110
(1,784,884)
-
-
-
-
-
-
-
-
(33,720)
3,305,239
(236,515)
318,659
(33,720)
-
6,071,253
50
For personal use only
Balance at 1 July 2017
20,981,821
(15,599,211)
688,643
Parkway Minerals NL
A.C.N. 147 346 334
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2018
Contributed
equity
Accumulated
Losses
Share and Option
Based Payment
Reserve
AFS
Reserve
Foreign
Currency
translation
reserve
$
$
$
$
$
-
-
-
-
(4,817,991)
-
-
(4,817,991)
-
-
-
-
Total
$
-
6,071,253
-
(4,817,991)
-
-
1,142,872
-
1,142,872
-
36,112
36,112
1,142,872
36,112
(3,639,007)
Loss for the year
Other comprehensive income (net
of tax)
Available for sale financial asset gains
Equity accounted investments - share
of other comprehensive income
Total comprehensive loss for the
year
Transactions with owners in their
capcity as owners:
Shares issued
Share issue transaction costs
Share and option based payments
1,878,260
(146,834)
260,824
-
-
-
-
23,000
-
-
-
-
-
-
-
1,878,260
(123,834)
260,824
Balance at 30 June 2018
22,974,071
(20,417,202)
711,643
1,142,872
36,112
4,447,496
The consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
51
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2018
OPERATING ACTIVITIES
Other Receipts
Payments to suppliers and employees
Stamp duty refunded
R&D tax rebate
Interest received
NET CASH FLOWS USED IN OPERATING ACTIVITIES
INVESTING ACTIVITIES
Deposit paid
Payment for shares in associate not yet issued
Investment in associate
Purchase of plant and equipment
Payment for exploration expenditure
NET CASH FLOWS USED IN INVESTING ACTIVITIES
FINANCING ACTIVITIES
Proceeds from issue of shares
Share issue costs
NET CASH FLOWS FROM FINANCING ACTIVITIES
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
For the year
ended 30
June 2018
For the year
ended 30
June 2017
Note
$
$
13,461
(1,974,966)
88,453
-
22,522
(1,850,530)
6,197
(1,982,623)
-
284,722
15,077
(1,676,627)
23
(20,000)
(500,000)
-
(13,213)
(85,000)
(618,213)
-
-
(102,865)
(17,702)
(75,000)
(195,567)
1,808,260
(75,538)
1,732,722
3,305,239
(190,907)
3,114,332
(736,021)
1,881,039
1,242,138
638,901
8
1,145,018
1,881,039
The consolidated statement of cash flows should be read in conjunction with the accompanying notes.
52
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Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements
Note 1: Corporate information
The financial report of Parkway Minerals NL (the “Company” or “Parkway”) and its controlled entity (the
“consolidated entity” or the “Group”) for the year ended 30 June 2018 was authorised for issue in accordance
with a resolution of directors on 21 September 2018.
Parkway Minerals 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.
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. Parkway Minerals 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 with the exception of available-for-sale
financial assets. 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 activity is mineral exploration.
The consolidated financial statements provide comparative information in respect of the previous period. In
addition, the Group presents an additional statement of financial position at the beginning of the preceding
period when there is a retrospective application of an accounting policy, a retrospective restatement, or a
reclassification of items in financial statements.
(b)
Adoption of new and revised standards
The Group applied all new and amended Australian Accounting Standards and Interpretations, which are
effective for annual periods beginning on 1 July 2017. Although these new standards and amendments
applied for the first time in 2018, they did not have a material impact on the annual consolidated financial
statements of the Group.
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not
yet effective and have not been adopted by the Group for the annual reporting period ended 30 June 2018 are
outlined in the table below. The Company has decided not to early adopt any of the new and amended
pronouncement.
53
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Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
Application
date of
standard
Application
date for the
Group
1 January
2018
1 July 2018
Impact on the
Group’s
Financial
Statements
The Group
currently records
the gains and
losses of the
available for sale
financial assets
through other
comprehensive
income (OCI).
Based on the
Group’s AASB 9
impact
assessment, the
Group will likely
continue to
apply the option
of presenting the
fair value
changes
through OCI.
Therefore the
application of
AASB 9 will not
have a
significant
impact on the
recognition and
measurement of
financial
instruments.
1 January
2018
1 July 2018
As the Group
does not
generate any
significant
revenue, the
standard is not
expected to
significantly
impact revenue
recognition.
Reference
Title
Summary
AASB 9, and
relevant
amending
statndards
Financial
Instruments
AASB 15, and
relevant
amending
standards
Revenue
from
Contracts
with
Customers
AASB 9 replaces AASB 139 Financial Instruments:
Recognition and measurement. Except for certain
trade receivables, an entity initially measures a
financial asset at its fair value plus, in the case of
a financial asset not at fair value through profit or
loss (FVTPL), transaction costs.
Debt instruments are subsequently measured at
FVTPL, amortised cost, or fair value through other
comprehensive income (FVOCI), on the basis of
their contractual cash flows and the business
model under which the debt instruments are held.
There is a fair value option (FVO) that allows
financial assets on initial recognition to be
designated as FVTPL if that eliminates or
significantly reduces an accounting mismatch.
Equity instruments are generally measured at
FVTPL. However, entities have an irrevocable
option on an instrument-by-instrument basis to
present changes in the fair value of non-trading
instruments in other comprehensive income (OCI)
without subsequent reclassification to profit or loss.
For financial liabilities designated as FVTPL using
the FVO, the amount of change in the fair value
of such financial liabilities that is attributable to
changes in credit risk must be presented in OCI.
The remainder of the change in fair value is
presented in profit or loss, unless presentation in
OCI of the fair value change in respect of the
liability’s credit risk would create or enlarge an
accounting mismatch in profit or loss.
All other AASB 139 classification and
measurement requirements for financial liabilities
have been carried forward into AASB 9, including
the embedded derivative separation rules and
the criteria for using the FVO.
The incurred credit loss model in AASB 139 has
been replaced with an expected credit loss
model in AASB 9.
The requirements for hedge accounting have
been amended to more closely align hedge
accounting with risk management, establish a
more principle-based approach to hedge
accounting and
address inconsistencies in the hedge accounting
model in AASB 139.
AASB 15 replaces all existing revenue
requirements in Australian Accounting Standards
(AASB 111 Construction Contracts, AASB118
Revenue, AASB Interpretation 13 Customer Loyalty
Programmes, AASB Interpretation 15 Agreements
for the Construction of Real Estate, AASB
Interpretation 18 Transfers of Assets from
Customers and AASB Interpretation 131 Revenue –
Barter Transactions Involving Advertising Services)
and applies to all revenue arising from contracts
with customers, unless the contracts are in the
scope of other standards, such as AASB 117
Leases (or AASB 16 Leases, once applied).
The core principle of AASB 15 is that an entity
recognises revenue to depict the transfer of
promised goods or services to customers in an
amount that reflects the consideration to which
an entity expects to be entitled in exchange for
54
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Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
Reference
Title
Summary
Application
date of
standard
Application
date for the
Group
Impact on the
Group’s Financial
Statements
1 January
2018
1 July 2018
1 January
2019
1 July 2019
The Group is in
the process of
evaluating the
impact of the
standard.
The impact on
the Group is not
expected to be
material.
The Group does
not expect any
material impact
from this standard
since there are
no current
operating lease
commitments in
place.
AASE 2016-5
Amendments
to Australian
Accounting
Standards –
Classification
and
Measurement
of Share-
based
Payment
Transactions
AASB 16
Leases
those goods or services. An entity recognises
revenue in accordance with the core principle
by applying the following steps:
► Step 1: Identify the contract(s) with a
customer
► Step 2: Identify the performance
obligations in the contract
► Step 3: Determine the transaction price
► Step 4: Allocate the transaction price
to the performance obligations in the
contract
► Step 5: Recognise revenue when (or
as) the entity satisfies a performance
obligation.
This Standard amends AASB 2 Share-based
Payment, clarifying how to account for certain
types of share-based payment transactions.
The amendments provide requirements on the
accounting for:
► The effects of vesting and non-vesting
conditions on the measurement of cash-settled
share-based payments
► Share-based payment transactions with a
net settlement feature for withholding tax
obligations
► A modification to the terms and conditions
of a share-based payment that changes the
classification of the transaction from cash-
settled to equity-settled.
AASB 16 requires lessees to account for all
leases under a single on- balance sheet model
in a similar way to finance leases under AASB
117 Leases. The standard includes two
recognition exemptions for lessees – leases
of ’low-value’ assets (e.g., personal computers)
and short-term leases (i.e., leases with a lease
term of 12 months or less). At the
commencement date of a lease, a lessee will
recognise a liability to make lease payments
(i.e., the lease liability) and an asset
representing the right to use the underlying
asset during the lease term (i.e., the right-of-use
asset).
Lessees will be required to separately recognise
the interest expense on the lease liability and
the depreciation expense on the right-of-use
asset.
Lessees will be required to remeasure the lease
liability upon the occurrence of certain events
(e.g., a change in the lease term, a change in
future lease payments resulting from a change
in an index or rate used to determine those
payments). The lessee will generally recognise
the amount of the remeasurement of the lease
liability as an adjustment to the right-of-use
asset.
Lessor accounting is substantially unchanged
from today’s accounting under AASB 117.
Lessors will continue to classify all leases using
the same classification principle as in AASB 117
and distinguish between two types of leases:
operating and finance leases.
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Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
Application
date of
standard
Application
date for the
Group
Impact on the
Group’s Financial
Statements
1January
2019
1 July 2019
The Group is in
the process of
evaluating the
impact of the
standard.
1 January
2022
1 July 2022
The Group is in
the process of
evaluating the
impact of the
standard.
Reference
Title
Summary
Uncertainty
over Income
Tax Treatments
AASB
Interpretation
23, and
relevant
amending
standards
AASB 2014-10
Amendments
to Australian
Accounting
Standards –
Sale or
Contribution of
Assets
between an
Investor and its
Associate or
Joint Venture
The Interpretation clarifies the application of
the recognition and measurement criteria in
AASB 112 Income Taxes when there is
uncertainty over income tax treatments. The
Interpretation specifically addresses the
following:
► Whether an entity considers uncertain tax
treatments separately
► The assumptions an entity makes about the
examination of tax treatments by taxation
authorities
► How an entity determines taxable profit
(tax loss), tax bases, unused tax losses, unused
tax credits and tax rates
► How an entity considers changes in facts
and circumstances.
The amendments clarify that a full gain or loss is
recognised when a transfer to an associate or
joint venture involves a business as defined in
AASB 3 Business Combinations. Any gain or loss
resulting from the sale or contribution of assets
that does not constitute a business, however, is
recognised only to the extent of unrelated
investors’ interests in the associate or joint
venture.
AASB 2015-10 deferred the mandatory effective
date (application date) of AASB 2014-10 so that
the amendments were required to be applied
for annual reporting periods beginning on or
after 1 January
2018 instead of 1 January 2016. AASB 2017-5
further defers the effective date of the
amendments made in AASB 2014-10 to periods
beginning on or after 1 January 2022. In
December 2015, the IASB postponed the
effective date of the amendments indefinitely
pending the outcome of its research project on
the equity method of accounting.
(c)
Statement of compliance
The financial report complies with Australian Accounting Standards and International Financial Reporting
Standards (IFRS).
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Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(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.
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. Refer to note 11.
Investment in an associate
The Group’s investment in an an associate is accounted for using the equity method. Significant judgement
is also used to determine if there is considered to be significant influence exerted over the investment.
Impairment is reviewed by considering the higher of the value in use or fair value less cost of disposal of
the investment. For the prior year it was determined that the fair value less cost of disposal (determined by
the share price of the investment at 30 June 2017) was below the carrying value of the investment at 30
June 2017. Accordingly an impairment charge of $1,453,305 was recorded. For the current year it was
determined that the fair value less cost of disposal (determined by the share price of the investment at 30
June 2018) continued to be below the carrying value of the investment at 30 June 2018. Accordingly an
impairment charge of $107,754 was recorded.
(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).
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Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(e)
Share-based payment transactions (continued)
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.
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 after tax for the year ended 30 June 2018 of $4,817,991
(2017: $1,784,884) and experienced net cash outflows from operating activities of $1,850,530 (2017:
$1,676,627). As at 30 June 2018 the consolidated entity had cash and cash equivalents of $1,145,018 (2017:
$1,881,039). At the end of the reporting year, the Directors recognise the need to raise additional funds via
equity raising or sale of financial assets 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 or through the controlled placement agreement
detailed in Note 17a.
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.
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Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(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.
(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 diminishing value basis over the estimated useful life of
the asset as follows:
Plant and equipment – over 2 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.
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Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(i)
Income tax (continued)
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.
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.
i Tax Consolidation
During the year Parkway Minerals NL and its 100% owned subsidiaries have entered into tax consolidated
group which takes effect from 1 July 2016. Parkway Minerals NL is the head entity of the tax consolidated
group.
(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.
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Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(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.
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 corporate 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.
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Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(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 statement of financial position.
(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.
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.
Own equity instruments (treasury shares) are recognised at cost and deducted from equity. No gain or loss
is recognised in profit or loss on the purchase, sale, issue or cancellation of the Group’s own equity
instruments.
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Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(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.
(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.
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Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(s)
Investments and other financial assets (continued)
(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.
(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.
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Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(v)
Investment in associate (continued)
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.
(x) Current versus non-current classification
The Group presents assets and liabilities in the statement of financial position based on current/non-current
classification. An asset is current when it is:
- Expected to be realised or intended to be sold or consumed in the normal operating cycle;
- Held primarily for the purpose of trading;
- Expected to be realised within twelve months after the reporting period; or
- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at
least twelve months after the reporting period
All other assets are classified as non-current.
A liability is current when:
It is expected to be settled in the normal operating cycle;
It is held primarily for the purpose of trading;
It is due to be settled within twelve months after the reporting period; or
-
-
-
- There is no unconditional right to defer the settlement of the liability for at least twelve months after
the reporting period
The Group classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
(y) Treasury shares
Own equity instruments that are issued (treasury shares) are recognised nil value on the date of issue and
deducted from equity. No gain or loss is recognised in profit or loss on the purchase, sale, issue or
cancellation of the Group’s own equity instruments.
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Notes to Financial Statements (continued)
Note 3: Segment information
The Group 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 Group 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 Group 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 Group’s results presented in this set of financial statements.
Note 4: Income tax
(a) Income tax (benefit)/expense
Current tax
Deferred tax
Total tax (benefit)/expense
(b) Income tax recognised in equity
Deferred tax liability recognised
Total income tax recognised in equity
2018
$
2017
$
-
(819,374)
(819,374)
-
385,871
385,871
433,503
433,503
-
-
(c) Numerical reconciliation of income tax expense to
prima facie tax payable
Loss from continuing operations before income tax expense
(5,637,365)
(1,399,013)
Prima facie tax benefit at the Australian tax rate of 27.5%
(1,550,275)
(384,729)
Tax effect of amounts which are not deductible/(taxable) in
calculating taxable income:
Share based payment
Non-deductible expenses
Non-assessable income
Gain on sale of shares
Deferred tax assets not brought to account
64,467
2,020
-
-
664,414
59,868
2,517
(78,299)
155,891
630,623
Income tax (benefit)/expense
(819,374)
385,871
Notes to Financial Statements (continued)
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Note 4: Income tax (continued)
(c) Deferred tax assets
Capitalised Expenditure
Accrued expenses
Business related deduction
Employee entitlement provisions
Capital losses
Revenue losses
Deferred tax asset not recognised
Offset against deferred tax liabilities
Total deferred tax assets
(d) Deferred tax liabilities
Investment in associate
Exploration tenement
Financial Assets
Offset against deferred tax assets
Net deferred tax liabilities
2018
$
64,728
23,566
105,219
31,620
98,071
758,087
1,081,291
(345,364)
735,927
(735,927)
-
567,355
-
168,572
735,927
(735,927)
-
2017
$
65,580
27,808
124,652
24,419
-
3,606,189
3,848,648
(3,032,830)
815,818
(815,818)
-
385,871
687,500
128,318
1,201,689
(815,818)
385,871
The Group offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current
tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income
taxes levied by the same tax authority. The taxation benefits of certain tax losses and temporary differences
have not been brought to account since it is not probable whether future assessable income would be
derived of a nature and of an amount sufficient to enable the benefits from the deductions to be realised.
The tax losses not brought to account is $3,113,302 (2017: $13,113,414). During the year Parkway
Minerals NL and its 100% owned subsidiaries elected to form an income tax consolidated group, which was
effective from 1 July 2016.
Note 5: Key management personnel remuneration
Short-term employee benefits
Post-employment benefits
Share-based payments
Total compensation
Note 6: Auditor’s remuneration
The auditor of the Company is Ernst & Young Australia
Remuneration of the auditor of the Company for:
- auditing or reviewing the financial report
- Non-audit services:
- research & development tax concession
- tax compliance
Notes to Financial Statements (continued)
67
2018
$
498,132
36,004
138,426
672,562
2017
$
473,923
36,004
133,451
643,378
2018
$
2017
$
37,338 32,315
6,979
15,169
14,214 4,635
58,531
52,119
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
Note 7: Loss 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
2018
$
0.81
0.81
(4,817,991)
(4,817,991)
2017
$
0.43
0.43
(1,832,994)
(1,832,994)
Number
Number
Weighted average number of ordinary shares used in the
calculation of basic and diluted loss per share
591,335,306
431,254,790
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 loss per share. As of 30 June 2018, a total of 154,104,824 potential ordinary shares had been issued,
this is including 30,804,503 (2017: 22,796,691) options and 123,300,321 (2017: 123,300,321) partly paid
shares respectively.
In addition as part of the issue of 50,126,000 shares issued on 29 June 2018, there were 50,126,000 free-
attaching options that were approved by shareholders on 15 August 2018 and subsequently issued. These
options have also not been included in the calculation above due to them being anti-dilutive.
Note 8: Cash and cash equivalents
Cash at bank and on hand
Note 9: Trade and other receivables
Current
Trade debtors
GST Receivables
Other Receivables
Non-Current
Shares subscribed but not yet issued (a)
30-Jun-18
$
1,145,018
1,145,018
30-Jun-17
$
1,881,039
1,881,039
30-Jun-18
$
30-Jun-17
$
46,211
20,470
70,000
136,681
500,000
500,000
1,618
22,280
-
23,898
-
-
Trade debtors are non-interest bearing and are generally on 30-90 days terms. The carrying amounts of all
trade and other receivables represent fair value and are not considered to be impaired.
(a) On 25 June 2018, the consolidated entity had participated in Davenport Resources Limited’s share
purchase plan, and subscribed to 7,142,850 shares at $0.07 per share. These shares were subsequently
issued on 5 July 2018. The consolidated entity was also eligible to receive 7,142,850 free-attaching options
as part of this placement. These options will have an exercise price of $0.20 and expire on 31 July 2023.
These options were approved by Davenport Resources’ shareholders at a general meeting on 30 August
2018.
Notes to Financial Statements (continued)
68
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Parkway Minerals NL
A.C.N. 147 346 334
Note 10: Other assets
Short term investment
Prepayments
Note 11: Exploration expenditure
Opening Balance
Option fees paid or payable – Dandaragan Trough tenements
Acquisition of mineral rights – Lake Barlee
Acquisition costs written-off
30-Jun-18
$
30-Jun-17
$
20,000
15,918
35,918
-
12,310
12,310
30-Jun-18
$
2,590,000
265,000
-
(2,855,000)
-
30-Jun-17
$
2,500,000
75,000
15,000
-
2,590,000
During the financial year the Group continued its mineral exploration on the Dandaragan Trough and Lake
Barlee areas of interest.
A total of $265,000 (2017: $90,000) of exploration expenditure was capitalised by Parkway during the year.
The Directors have reviewed all exploration projects for indicators of impairment in light of approved
budgets. Where substantive expenditure is neither budgeted nor planned the area of interest has been
written down to its fair value less cost to dispose. In determining the fair value less cost of disposal, the
Directors had regard to the best evidence of what a willing participant would pay in an arms length
transaction (level 3 fair value hierarchy). Where no such evidence was available, areas of interest were
written down to nil pending the outcome of any future farm-out arrangement. The Group will continue to
look to attract farm-in partners and/or recommence exploration should circumstances change.
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
On 19 January 2017, the Group disposed of its 55% interest in East Exploration Pty Ltd in exchange for
19,249,922 ordinary shares (being a 26% interest) in Davenport Resources Limited (“Davenport”), a potash
exploration group incorporated in Australia and listed on ASX following its successful IPO on the same date.
In addition to the ordinary shares, the Group was also issued:
-
-
17,874,928 “milestone one” shares which will be convertible into ordinary shares in Davenport
Resources Limited if within four years after completion (or such lesser period as is satisfactory to
ASX) of the first JORC code compliant inferred resources exceeds one of the following:
a) 250 million tonnes of potash at or above 11% K2O by content, or
b) 150 million tonnes of potash at or above 12% K2O by content, or
c) 100 million tonnes of potash at or above 13% K2O by content, or
d) 75 million tonnes of potash at or above 15% K2O by content, or
e) 50 million tonnes of potash at or above 18% K2O by content.
17,874,928 “milestone two” shares which will be convertible into ordinary shares in Davenport
Resources Limited if within six years after completion (or such lesser period as is satisfactory to ASX)
of all mining approvals and utility contracts required to construct and operate a minimum 500,000
tonnes per annum potash mine on the South Harz Project (including all government approvals, water
and energy contracts necessary to operate the mine).
69
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Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 12: Investment in associate (continued)
During 2017 financial year, the fair value of the consideration was estimated to be $3,849,984 being the fair
value of the 19,249,922 ordinary shares at their IPO price, a gain on deconsolidation of the subsidiary
$3,780,837 was recognised after deducting the carrying value of net asset of $69,147. The fair value of
milestone shares were estimated to be zero at the disposal date due to uncertainties surrounding the
achievement of these milestones.
During the current financial year, the consolidated entity has been issued the "milestone one" shares, these
have been converted into 17,874,928 ordinary shares in Davenport Resources Limited with a value of
$1,429,994, which resulted in an increase in ownership from 26.0% to 34.2%. The increase in value of these
shares has been recognised in other comprehensive income as part of the AFS reserve. On 10 April 2018,
Davenport Resources Limited announced the cancellation of the "milestone two" shares.
The Group’s interest in Davenport is accounted for using the equity method in the consolidated financial
statements on the basis that it was concluded Parkway has significant influence due to the 34.2% interest
that it has in the entity as at 30 June 2018 (30 June 2017: 26.0%), and due to a Director of Parkway being
the non-executive chairman of Davenport. The following table sets out the summarised financial information
of the Group’s investment in Davenport:
30-Jun-18
$
30-Jun-17
$
Balance at the beginning of the financial year
Carrying value of investment at initial recognition on 19 January
2017
Receipt of milestone shares
Share of other comprehensive income for the period
Share of losses for the period
Impairment
Balance at the end of the financial year
1,636,243
-
-
1,429,994
36,112
(581,480)
(107,754)
2,413,115
3,849,984
-
-
(760,436)
(1,453,305)
1,636,243
As at 30 June 2017 the consolidated entity undertook an assessment for impairment as the fair value of the
investment was below its carrying value, an impairment charge of $1,453,305 was recorded to bring the
carrying balue to its fair value of asset. This assessment was undertaken again at 30 June 2018, whereby it
was determined that the fair value less cost of disposal was below the carrying value, and accordingly a
further impairment was recorded of $107,754.
The following is summarised financial information for the share of assets and liabilities held by Parkway in
Davenport at 30 June 2018 based on its consolidated financial statements modified for differences in the
Group’s accounting policies:
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Less impairment recorded by Parkway
Share of net assets held
30-Jun-18
$
30-Jun-17
$
937,838
3,787,166
(750,830)
-
3,974,174
(1,561,059)
2,413,115
1,150,979
2,037,516
(98,947)
-
3,089,548
(1,453,305)
1,636,243
Notes to Financial Statements (continued)
70
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Parkway Minerals NL
A.C.N. 147 346 334
Note 12: Investment in associate (continued)
Other income
Loss from continuing operations
Other comprehensive income
Total comprehensive loss for the period
For the year ended
30 June 2018
$
42,176
(581,480)
36,112
(545,368)
For the period 19
January 2017 to 30 June
2017
$
14,409
(760,436)
-
(760,436)
Contingent liabilities
The associate has guaranteed a rental bond for the operating premises. At 30 June 2018 the extent of
possible exposure is $104,212 (2017: $104,212). The lease expired on 31 July 2018 and was not renewed.
On 27 August 2018, the associate settled with the landlord the associate’s make good obligations for $56,419,
with the guarantee for the rental bond subsequently released.
Commitments
The associate has the following commitments (100%). Operating lease commitments are a non-cancellable
lease of office premises for a three year term entered into in August 2015 and a lease of a business centre
for a one year term entered into in September 2016.
Exploration expenditure
Payable within one year
Operating leases
Payable within one year
Payable in one to five years
2018
$
89,650
89,650
25,724
-
25,724
2017
$
217,022
217,022
159,512
15,796
175,308
Operating lease commitments are the non-cancellable operating leases of office space.
Note 13: Financial assets
30-Jun-18
$
30-Jun-17
$
Investment - available for sale financial
assets
Reconciliation of movement for the period:
Opening Balance
Loss on conversion of shares in Lepidico Ltd
to shares in Lithium Austraila NL
Gain/(Loss) on increase/(decline) in fair
value at the end of the period
687,990
687,990
541,609
541,609
541,609
-
146,381
687,990
1,939,547
(333,017)
(1,064,921)
541,609
Notes to Financial Statements (continued)
71
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Parkway Minerals NL
A.C.N. 147 346 334
Note 13: Financial assets (continued)
On 28 March 2017 the Consolidated entity accepted Lithium Australia NL’s offer of 1 Lithium Australia share
for 13.25 Lepidico shares held. On 28 March 2017, the Consolidated entity has recognised an impairment
loss on the Lepidico shares amounting to $581,864 and has received 7,319,044 Lithium Australia NL shares
in consideration for the Lepidico Ltd shares held. The Consolidated entity has recognised a loss on disposal
of Lepidico shares amounting to $333,017 on the transaction date. As at 30 June 2017, the Consolidated
entity recognised a further impairment loss of $483,057 for the financial assets due to the significant decline
in value between the acquisition and 30 June 2017.
For the year ended 30 June 2018, the Consolidated entity has recognised a gain of $146,381 resulting from
the increase in the fair value of the financial assets. Fair value of the financial assets at 30 June 2018 and
30 June 2017 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
Offfice equipment at cost
Less accumulated depreciation
Plant and equipment at cost
Less accumulated depreciation
Computer software at cost
Less accumulated depreciation
Furniture fixtures at cost
Less accumulated depreciation
Total plant and equipment
Year ended 30 June 2017
30-Jun-18
$
30-Jun-17
$
28,047
(11,766)
16,281
70,275
(53,430)
16,845
40,340
(33,995)
6,345
8,644
(2,288)
6,356
45,827
15,743
(8,633)
7,110
69,366
(49,349)
20,017
40,340
(31,888)
8,452
8,644
(178)
8,466
44,045
Office
Equipment
$
Plant &
Equipment
$
Computer
Software
$
Furniture
Fixtures
$
Total
$
Opening net carrying value
5,074
24,372
11,826
-
41,272
Additions
Depreciation charge for the year
Closing net carrying value
6,654
(4,618)
7,110
2,406
(6,761)
20,017
- 8,644
(178)
8,466
(3,374)
8,452
17,704
(14,931)
44,045
Year ended 30 June 2018
Opening net carrying value
Additions
Depreciation charge for the year
Closing net carrying value
7,110
12,304
(3,133)
16,281
20,017
909
(4,081)
16,845
8,452
-
(2,107)
6,345
8,466
-
(2,110)
6,356
44,045
13,213
(11,431)
45,827
72
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Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 15: Trade and other payables
Current
Unsecured liabilities
Option fees payable (a)
Trade payables
30-Jun-18
$
30-Jun-17
$
180,000
222,071
402,071
-
186,294
186,294
Due to short term nature of these payables, their carrying value is assumed to approximate their fair value.
(a) Option fees payable relate to a settlement negotiated for the option fees for land at the Dandaragan
Trough.
Note 16: Provisions
Employee benefits – current liability
Employee benefits - non-current liability
Note 17: Contributed equity
30-Jun-18
$
30-Jun-17
$
114,982
114,982
63,107
63,107
30-Jun-18
$
30-Jun-17
$
-
-
22,619
22,619
NOTE
No.
$
No.
$
30-Jun-18
30-Jun-17
Ordinary shares
- fully paid
Contributing shares -
partly paid
Treasury shares
17B
594,814,654
22,974,071
359,144,634
20,981,821
17C
17A
123,300,321
(24,000,000)
694,114,975
-
123,300,321
-
-
22,974,071
-
482,444,955
-
20,981,821
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 $4,447,496 (2017:
$6,071,253), 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.
73
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Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
17A: Movements in treasury shares are as follows:
2018
Number
2018
$
2017
Number
2017
$
At the beginning of
reporting year
-
Issued during the year
(24,000,000)
At the end of the year
(24,000,000)
-
-
-
-
-
-
-
-
-
In January 2018, the Company entered into a Controlled Placement Agreement (“CPA”) with Acuity Capital
Investment Management Pty Ltd as trustee for the Acuity Capital Holdings Trust (“Acuity”). The CPA grants
an option to Acuity to issue Parkway shares at the discretion of Parkway, and which Acuity has the discretion
to either accept or decline. The exercise price of each option is the greater of a 90% volume weighted average
price of Parkway shares traded during the relevant valuation period and a floor price that is set by Parkway.
The maximum option size is $3,000,000 and the option expires on 21 January 2021. During the year there
were no options exercised. As part of the CPA, the Company have issued a total of 2,400,000 Parkway
ordinary shares to Acuity which Acuity holds in the favour of Parkway. These shares are therefore deemed
to be treasury shares. The shares are held by Acuity as collateral over the CPA arrangement and at the expiry
date the shares may either be bought back by Parkway for nil consideration, issued to Acuity for a price that
is to be agreed or transferred to a third party nominated by Parkway with no consideration being due or
payable by Acuity. The shares had a value of $312,000 at the time of issue.
17B: Movements in fully paid ordinary shares on issue of the legal parent are:
2018
Number
2017
Number
2018
$
2017
$
At the beginning of reporting year
359,237,974 235,575,005
21,316,846
17,969,172
Issue of 135,126,000 shares* (2017: 72,408,665
shares) via share placements
Issue of 52,700,000 (2017: 37,700,063 shares)
via share purchse plan
Issue of 23,750,680 shares (2017: 13,420,122
shares) as share-based payments
Issue of nil shares (2017:40,779 shares) via
conversion of partly paid shares
Issue of 24,000,000 treasury shares (2017: nil
shares) pursuant to the Controlled Placement
Facility (see note 17A)
135,126,000
72,408,665
1,351,260
2,172,261
52,700,000
37,700,063
527,000
1,130,982
23,750,680
13,420,122
260,824
278,044
-
40,779
24,000,000
-
-
-
1,998
-
Shares to be issued
Equity Raising Costs
93,340
-
-
-
594,814,654 359,237,974
-
(146,834)
23,309,096
905
(236,515)
21,316,846
Reserved shares
(3,150,000)
(3,150,000)
(335,025)
(335,025)
At the end of the reporting year
591,664,654 256,087,974
22,974,071
20,981,821
*As part of the issue of 50,126,000 shares issued on 29 June 2018, there were 50,126,000 free-attaching
options that were approved by shareholders on 15 August 2018 and subsequently issued.
74
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Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
17C: Movements in partly paid ordinary shares on issue of the legal parent are:
2018
2017
Number
Number
At the beginning of reporting year
123,300,321
35,960,024
The converison of partly paid shares to fully paid
The issue of 87,381,076 bonus partly paid shares
-
-
(40,779)
87,381,076
At the end of the reporting year
123,300,321
123,300,321
Outstanding amount per partly paid contributing share at 30 June 2018 is $0.049 (2017: $0.049).
The partly paid contributing share are issued with outstanding calls of 4.9 cents each. 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 call becoming payable.
During June 2018, the consolidated entity has raised capital via share placement, the consolidated entity
has issued 50,126,000 shares for the total consideration of $501,260. These shares were issued on 29
June 2018, $70,000 of total funds were only received subsequent to 30 June 2018.
Note 18: Reserves
Share based payment reserve
AFS reserve
Foreign currency translation reserve
Note
18A
18B
18C
30-Jun-18
$
711,643
1,142,872
36,112
1,890,627
30-Jun-17
$
688,643
-
-
688,643
75
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 18A: Share based payment reserve
Reconciliation of total options on issue:
Options issued
as share-based
payments
Other options
issued
Reserved
shares issued
Total options
on issue
As at 1 July 2016
5,492,188
14,950,000
3,150,000
23,592,188
Issued during the year
3,054,503
-
-
3,054,503
Expired during the year
As at 30 June 2017
Issued during the year
Expired during the year
As at 30 June 2018
-
8,546,691
(700,000)
14,250,000
-
3,150,000
(700,000)
25,946,691
10,000,000
(1,992,188)
16,554,503
-
-
10,000,000
-
14,250,000
-
3,150,000
(1,992,188)
33,954,503
Options
Outstanding at 1 July
Granted during the year
Expired during the year
Outstanding at 30 June
Exercisable at 30 June
2018
Number
2018
WAEP
2017
Number
2017
WAEP
22,796,691
10,000,000
(1,992,188)
30,804,503
30,804,503
$0.0671
$0.0300
$0.0320
$0.0538
$0.0538
20,442,188
3,054,503
(700,000)
22,796,691
22,796,691
$0.0778
$0.0375
$0.2500
$0.0671
$0.0671
The weighted average remaining contractual life of share options outstanding as at 30 June 2018 was 2.66
years (2017: 1.26 years).
The average exercise price of options granted during the year was $0.03 (2017: $0.0375).
The range of exercise prices for options outstanding at the end of the year was $0.02 to $0.07 (2017: $0.0375
to $0.087).
Reconciliation of value of share-based payment reserve
At the beginning of reporting year
Amount expensed for options issued to consultant.
3,054,503 options with exercise price of $0.0375
Note
18.1
Jun-18
$
688,643
Jun-17
$
648,934
Amount expensed for options issued to consultant.
5,000,000 options with exercise price of $0.02
18.2
16,000
Amount expensed for options issued to consultant.
5,000,000 options with exercise price of $0.04
At the end of the reporting year
76
18.3
7,000
711,643
688,643
39,709
-
-
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 18A: Share based payment reserve (cont’d)
18.1 The issue of 3,054,503 $0.0375 options exercisable on or before 30 June 2019 to consultant.
Please refer to Note 19 for further explanation.
18.2 The issue of 5,000,000 $0.02 options exercisable on or before 20 September 2019 to consultant.
Please refer to Note 19 for further explanation.
18.3 The issue of 5,000,000 $0.04 options exercisable on or before 20 September 2019 to consultant.
Please refer to Note 19 for further explanation.
Note 18B: AFS reserve
The AFS reserve represents the gains and losses of available-for-sale financial assets.
Note 18C: Foreign currency translation reserve
The foreign currency translation reserve comprises the share of foreign currency translation differences
arising from the Group’s equity accounted investment.
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:
Shares issued under the director and senior
management fee and remuneration sacrifice share
plan.
Shares issued in consideration of services.
Total equity based payments expense
Shares issued to consultants recognised for capital
raising services as share issue costs in equity
Options issued to Consultants recognised as share
issue costs in equity. Refer note 18.2 and 18.3
Total equity based payments recorded in equity
Note
Jun-18
$
Jun-17
$
19.1
19.2
19.3
19.4
128,699
128,699
105,725
234,424
80,501
209,200
26,400
5,899
23,000
49,400
39,709
45,608
19.1 During the year shares were issued to directors and senior management under the management fee
and remuneration sacrifice share plan. The fair value of the services was considered to be equal to the
fair value of the shares issued.
19.2 During the year shares were issued to settle a fee payable under a controlled placement deed.
19.3 On 24 October 2017, the Company issued 2,640,000 shares at $0.01 per share to a consultant for
Capital raising services provided. This issue was approved by shareholders at 2017 general meeting.
19.4 During the 2018 financial year, the Company issued 5,000,000 class A options and 5,000,000 class B
options to consultants for equity raising services, which was recognised as part of issued capital. These
options had a fair value of $23,000 calculated using a black scholes model. The fair value of the
services was considered to be equal to the fair value of the options issued. This issue was approved
by shareholders at 2017 AGM.
Subsequent to 30 June 2018 a further 5,000,000 options were issued to brokers. The value of these options
was not considered to be material.
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A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 19: Equity based payments (cont’d)
The fair value of the options granted for the year ended 30 June 2018 and 30 June 2017 was estimated on
the date of grant using the following assumptions and valuing using a black scholes model, the fair value of
the services provided was consider to equal the fair value determined using the black scholes model:
Number of options issued
Dividend yield (%)
Expected volatility* (%)
Risk-free interest rate (%)
Expected life (years)
Share price
Exercise price ($)
Value per option
30-Jun-18
Class A – 5,000,000
Class B – 5,000,000
Nil
75
1.5
2
$0.01
Class A - $0.02
Class B - $0.04
Class A - $0.0032
Class B - $0.0014
30-Jun-17
3,054,503
Nil
75
1.5
3
$0.03
$0.0375
$0.013
All shares issued as equity-based payments were issued for nil cash consideration and were valued at market
fair value which was considered to approximate the fair value of the services provided.
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-18
30-Jun-17
$
$
1,038,667
618,000
1,038,667
618,000
2,077,334
1,236,000
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 2018.
These figures are adjusted at the anniversary date of each tenement and therefore the total can change on
a monthly basis.
Note 21: Contingent liabilities
There are no contingent liabilities as at 30 June 2018 (2017: Nil).
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A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 22: Related party transactions
30-Jun-18
$
30-Jun-17
$
9,220
9,454
Corporate advisory were paid to Precious Capital Pte
Ltd, a company of which Chew Wai Chuen is a
director and shareholder
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, administrative staffs and exploration staffs.
165,041
174,261
148,526
157,980
Trade and other payables to related party as at 30 June 2018 amounted to $23,549 (30 June 2017: $26,579).
All related party transactions are considered to be on an arms’ length basis.
Note 23: Cash flow information
Reconciliation of cash flow from operations with loss from ordinary activities after income tax
Loss from ordinary activities after income tax
Share of net losses of associate
Depreciation and amortisation
Expenses settled via equity issues
Option and exclusivity fee received
Gain on deconsolidation of subsidiary
Loss on disposal of financial assets
Impairment of financial assets
Write-off of exploration and evaluation assets
Income tax recognised in other comprehensive income
Impairment of investment in associate
Changes in assets and liabilities
Increase/(decrease) in deferred tax liabilities
(Increase)/decrease in receivables
(Increase)/decrease in other assets
Increase/(decrease) in payables
Increase/(decrease) in provisions
30-Jun-18
30-Jun-17
$
$
(4,817,991)
581,480
11,431
234,424
-
-
-
-
2,675,000
(433,503)
107,754
(1,784,884)
760,436
14,931
209,200
(151,367)
(3,780,837)
333,017
1,064,921
-
-
1,453,305
(385,871)
(61,851)
15,462
193,880
29,255
385,871
7,920
38,155
(75,628)
(151,667)
Cash flows used in operating activities
(1,850,530)
(1,676,627)
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A.C.N. 147 346 334
Notes to Financial Statements (continued)
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, credit risk and equity price 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.
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
$
$
$
$
2018
Financial
Assets
Cash
Other assets
Receivables
1.25
281,138
400,000
463,880
1,145,018
-1,002
-1,002
1,002
1,002
-
-
20,000
-
-
636,681
20,000
636,681
Total Financial Assets
281,138 420,000
1,100,561
1,801,699
Financial
Liabilities
Trade creditors
Total Financial Liabilities
-
-
-
-
402,071
402,071
402,071
402,071
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
$
$
$
$
$
2017
Financial
Assets
Cash
Receivables
1.25
1,881,039
-
-
-
-
23,898
Total Financial Assets
1,881,039
-
23,898
Financial
Liabilities
Trade creditors
Total Financial Liabilities
-
-
-
-
186,294
186,294
1,881,039
23,898
1,904,937
186,294
186,294
-
1,975
-1,975
1,975
1,975
A sensitivity of 10% (2017: 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 2018 from around 1.25% to 1.13% (2017: 1.25% to 1.13%) representing a 12.0
basis points (2017: 12.0 basis points), which is 8.5 basis points (2017: 8.5 basis points) net of tax.
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A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 24: Financial risk management objectives and policies(continued)
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.
(c) 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.
Equity price risk
(d)
The Group’s listed equity securities are susceptible to market price risk arising from uncertainties about
future values of the investment securities. The Group manages the equity price risk through the Group’s
Board of Directors reviewing and approving all equity investment decisions. At the reporting date, the
exposure to listed equity securities recognised as available-for-sale financial assets was $687,990.
A decrease of 10% on the ASX market index could have an impact of approximately $68,799 on the income
or equity attributable to the Group, depending on whether the decline is significant or prolonged. An
increase of 10% in the value of the listed securities would only impact equity, but would not have an effect
on profit or loss.
Note 25: Controlled entities
Parkway Minerals 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
Country of
Incorporation
Dandaragan Trough Holdings Pty Ltd
K-Max Pty Ltd
East Exploration Holdings Pty Ltd
Australia
Australia
Australia
Percentage
Interest Held %
2018
100%
100%
100%
2017
100%
100%
100%
Principal
activities
Dormant
Dormant
Dormant
As at 30 June 2018, there are no commitment or contingent liabilities in respect of the controlled entities.
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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
Non current liabilities
Total Liabilties
Net Assets
Equity
Contributed equity
Reserves
Accumulated losses
Total Equity
Loss for the year
Other comprehensive income
Total comprehensive loss for the financial year
Parent
30-Jun-18
Parent
30-Jun-17
1,317,617
1,233,817
2,551,434
1,917,247
3,175,654
5,092,901
517,053
-
517,053
249,401
22,619
272,020
2,034,381
4,820,881
22,974,071
817,769
(21,757,459)
20,981,821
688,643
(16,849,583)
2,034,381
4,820,881
Parent
30-Jun-18
Parent
30-Jun-17
(4,907,876)
106,126
(3,068,037)
-
(4,801,750)
(3,068,037)
The commitments and contingencies and commitments of the parent entity are the same as those for the
consolidated entity.
Note 27: Subsequent events
On 5 July 2018, the Group was issued a further 7.1 million shares in Davenport Resources Limited,
following the subscription paid in June 2018. Following this issue of shares, the group holds a 33% interest
in Davenport Resources Limited.
On 21 August 2018, the Company issued 50,126,000 free-attaching options in respect of the placement
which occurred on 29 June 2018. The company also issued 5,000,000 unlisted options to brokers. These
options are exercisable at $0.02 each and expire on 17 August 2020.
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 Parkway Minerals NL:
(a)
the financial statements and notes set out on pages 48 to 82 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 2018
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 ended 30 June 2018.
This declaration is made in accordance with a resolution of the directors.
Patrick McManus
Managing Director
Perth
Dated:27 September 2018
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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 Parkway Minerals NL
Report on the audit of the financial report
Opinion
We have audited the financial report of Parkway Minerals NL (the Company) and its subsidiaries
(collectively the Group), which comprises the consolidated statement of financial position as at 30 June
2018, the consolidated statement of comprehensive income, consolidated statement of changes in equity
and consolidated statement of cash flows for the year then ended, notes to the financial statements,
including a summary of significant accounting policies, and the directors' declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
a)
giving a true and fair view of the consolidated financial position of the Group as at 30 June 2018
and of its consolidated financial performance for the year ended on that date; and
b)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Report section of our report. We are independent of the Group in accordance with the auditor
independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting
Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the
Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Material uncertainty related to going concern
We draw attention to Note 2(f) of the financial report, which describes the principal conditions that raise
doubt about the Group’s ability to continue as a going concern. These events or conditions indicate that a
material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going
concern. Our opinion is not modified in respect of this matter.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the financial report of the current year. These matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, but we do not provide a separate
opinion on these matters. For each matter below, our description of how our audit addressed the matter
is provided in that context.
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We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report, including in relation to these matters. Accordingly, our audit
included the performance of procedures designed to respond to our assessment of the risks of material
misstatement of the financial report. The results of our audit procedures, including the procedures
performed to address the matters below, provide the basis for our audit opinion on the accompanying
financial report.
1.
Investment in Davenport Resources Limited
Why significant
How our audit addressed the key audit matter
As at 30 June 2018, the Group had a 34% interest in
Davenport Resources Limited, with a carrying value of
$2,413,115 (2017: $1,636,243). The accounting treatment
and disclosure of this investment involved significant
judgements in determining the classification of the investment
as an associate in accordance with AASB 128: Investments in
associates and joint ventures and the assessment of whether
the investment was impaired as at 30 June 2018.
Refer to note 12 for further details of this investment.
We evaluated the Group’s accounting for the investment in
Davenport Resources Limited as follows:
• Considered the appropriateness of the Group’s
assessment that the investment in Davenport Resources
Limited meets the criteria of an investment in an associate
in accordance with AASB 128: Investments in associates
and joint ventures.
• Evaluated the Group’s assessment of impairment of the
investment in Davenport Resources Limited as at 30 June
2018. This included comparing the carrying value of the
investment to the market value of Davenport Resources
Limited shares as at 30 June 2018, in order to assess
whether the fair value less cost of disposal was higher
than the carrying value of the investment as at that date.
• Evaluated the adequacy of the disclosures included in note
12 of the financial statements.
2. Carrying value of exploration and evaluation assets
Why significant
How our audit addressed the key audit matter
The assessment of the carrying value of exploration and
evaluation assets for impairment is subjective, as it is based on
the Group’s ability and intention to continue to explore the
asset. The carrying value may also be adversely affected by
the results of exploration work indicating that the mineral
reserves may not be commercially viable for extraction. This
creates a risk that the amounts stated in the financial report
may not be recoverable.
For the year ended 30 June 2018 the exploration and
evaluation assets were written off. Refer to Note 11 –
Exploration expenditure to the financial report for the amounts
held by the Group as at 30 June 2018 and related disclosure.
We evaluated the Group’s assessment of the carrying value of
exploration and evaluation assets. In obtaining sufficient audit
evidence, we:
• Considered the Group’s right to explore in the relevant
exploration area which included obtaining and assessing
supporting documentation such as license agreements.
• Considered the Group’s intention to carry out significant
exploration and evaluation activity in the relevant
exploration area which included assessment of the Group’s
cash-flow forecast models, enquiries with senior
management and Directors as to the intentions and
strategy of the Group.
• Evaluated the Group’s assessment of the commercial
viability of results relating to exploration and evaluation
activities carried out in the relevant licensed area.
• Assessed the ability to finance any planned future
exploration and evaluation activity.
• Assessed the adequacy of the disclosure included in the
financial report.
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Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the information
included in the Company’s 2018 Annual Report, but does not include the financial report and our
auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon, with the exception of the Remuneration Report and
our related assurance opinion.
In connection with our audit of the financial report, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial report or
our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for
such internal control as the directors determine is necessary to enable the preparation of the financial
report that gives a true and fair view and is free from material misstatement, whether due to fraud or
error.
In preparing the financial report, the directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters relating to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of this financial report.
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As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgment and maintain professional scepticism throughout the audit. We also:
•
•
•
•
•
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
Obtain an understanding of internal control relevant to the audit 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 Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial report or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Group to cease to continue as
a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events in a
manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial report. We are
responsible for the direction, supervision and performance of the Group audit. We remain solely
responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated to the directors, we determine those matters that were of most
significance in the audit of the financial report of the current year and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
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Report on the audit of the remuneration report
Opinion on the remuneration report
We have audited the Remuneration Report included in pages 21 to 30 of the directors' report for the year
ended 30 June 2018.
In our opinion, the Remuneration Report of Parkway Minerals NL for the year ended 30 June 2018,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian
Auditing Standards.
Ernst & Young
V L Hoang
Partner
Perth
27 September 2018
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Parkway Minerals 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 20 September 2018
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
114
182
139
664
486
221
428
220
611
170
Total number of holders of securities
Total number of securities
1,585
594,814,654
1,650
123,300,321
Table 2
Top twenty shareholders as at 20 September 2018
Shareholder
No. Shares
Percentage
1 CITICORP NOMINEES PTY LIMITED
2 Acuity Capital Investment Management Pty Ltd
3 Horn Resources Pty Ltd
4 Mr Philip Anthony Feitelson
5 HSBC Custody Nominees (Australia) Limited
6 Mr Patrick Bernard Mc Manus & Mrs Vivienne Edwina Mc Manus
7 WAH LEN ENTERPRISE SDN BHD
8 QUERION PTY LTD
9 YAP THAI CHOY
10 PAGONDAS PTY LTD
11 Mr Xuan Khoa Pham
12 Flourish Super Pty Ltd
13 Mr Adrian Christopher Griffin
14 Mr Mark Andrew Tkocz
15 JB Advisory Pty Limited
16 Rymill Global Ventures Ltd
17 Philip Anthony Feitelson
18 MR ROBERT VANDERLAAN + MR ADRIAN GRIFFIN + MR RINIAN
RUTHERFORD
19 TINNIPLEX PTY LTD
20 Horn Nominees Pty Ltd
57,458,190
26,524,453
25,000,000
23,915,000
18,055,206
17,341,507
16,666,666
13,000,000
12,000,000
10,000,000
9,000,000
7,450,636
7,027,991
7,000,000
7,000,000
6,719,759
6,585,000
6,500,000
9.66
4.46
4.20
4.02
3.04
2.92
2.80
2.19
2.02
1.68
1.51
1.25
1.18
1.18
1.18
1.13
1.11
1.09
6,000,000
5,250,000
288,494,408
1.01
0.88
48.50
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Parkway Minerals NL
A.C.N. 147 346 334
Shareholder Information (continued)
Table 3
Top twenty partly paid shareholders as at 20 September 2018
Shareholder
No. Shares
Percentage
1 CITICORP NOMINEES PTY LIMITED
2 HSBC Custody Nominees (Australia) Limited
3 Wah Len Enterprise SDN BHD
4 MRS ANJANA NANDHA
5 QUERION PTY LTD
6 MR PHILIP ANTHONY FEITELSON
7 YAP THAI CHOY
8 MR ADRIAN CHRISTOPHER GRIFFIN
9 MR JOHN STEPHEN BLADON MILLWARD
10 TORBINUP RESOURCES PTY LTD
11 MR STEVEN VARGA
12 MR GREGORY JOHN MILLER
13 MR EDDIE BONZALIE
14 MR ROBERT PETER VAN DER LAAN
15 MR ADRIAN CHRISTOPHER GRIFFIN
16 ROBERIN PTY LTD
17 MR PATRICK BERNARD DAVID MCMANUS + MRS VIVIENNE
EDWINA MCMANUS
18 SEPT ROGUES LTD
19 POTASH WEST NL
20 SUPER MSJ PTY LTD
10,903,871
5,505,513
4,166,667
3,500,000
3,125,000
3,000,000
3,000,000
2,719,635
2,665,861
2,648,544
2,500,000
2,111,847
1,899,908
1,800,045
1,767,998
1,553,615
1,410,831
1,370,837
1,362,500
1,200,000
58,212,672
8.84
4.47
3.38
2.84
2.53
2.43
2.43
2.21
2.16
2.15
2.03
1.71
1.54
1.46
1.43
1.26
1.14
1.11
1.11
0.97
47.21
Table 4
Top twenty option holders as at 20 September 2018
Optionholder
No. Options
Percentage
1 M & K KORKIDAS PTY LTD
2 DAVID GREENBLATT
3 MS MERLE SMITH + MS KATHRYN SMITH
4 NUTSVILLE PTY LTD
5 MR ANDREW JOHN MEEK + MS SASKIA ELLE MEEK
6 MR JAMES ROBERT DENNISON
7 BUZZ MONTY PTY LTD
8 MR BRENDON MOSEL
9 BUZZ MONTY PTY LTD
10 MR BRENDON MOSEL
11 DAVSMS INVESTMENTS PTY LTD
12 MR BRETT JAMES RUDD
13 CITICORP NOMINEES PTY LTD
14 MR MARK RICHARD JONES + MS MARGARET TAI
15 MAGNA EQUITIES II LLC
16 DEMASIADO PTY LTD
17 MR GIOVANNI FORTE
18 DROPMILL PTY LTD
19 JANAFIELD PTY LTD
20 MR MARK KENWYN WALTERS + MS ELIZABETH JEAN
GUNDESEN
750,000
727,487
650,000
625,000
625,000
625,000
521,036
517,834
500,000
500,000
400,000
312,500
290,240
262,500
250,000
200,000
187,500
4.23
4.10
3.66
3.52
3.52
3.52
2.94
2.92
2.82
2.82
2.25
1.76
1.64
1.48
1.41
1.13
1.06
14,344,097
80.81
90
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
Shareholder Information (continued)
Table 5
Substantial shareholders as at 20 September 2018
Shareholder
Citicorp Nominees Pty Limited
Voting Rights
No. of shares Percentage
9.66%
57,458,190
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.
Unlisted options as at 20 September 2018
Details of unlisted option holders are as follow:
Class of unlisted options
No. Options
Options exercisable at $0.0375 on or before 30 June 2019
3,054,503
Holders of more than 20% of this class
Options exercisable at $0.02 on or before 20 September 2019
Holders of more than 20% of this class
Options exercisable at $0.04 on or before 20 September 2019
Holders of more than 20% of this class
Options exercisable at $0.02 on or before 17 August 2020
Holders of more than 20% of this class
Options exercisable at $0.02 on or before 17 August 2020
Holders of more than 20% of this class
1
5,000,000
1
5,000,000
1
5,000,000
1
50,126,000
2
91
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
Tenement Register
Tenements (Australia) as at 21 September 2018
Tenements Name
Project
Holder
Details
Dinner Hill
E70/3987
Parkway Minerals NL
Jam Hill
E70/4137
Parkway Minerals NL
Bald Hill
E70/4138
Parkway Minerals NL
Watheroo
E70/4471
Parkway Minerals NL
Dandaragan
E70/4609
Parkway Minerals NL
Dandaragan
E70/4687
Parkway Minerals NL
Dandaragan
E70/5102
Parkway Minerals NL
100% Mineral Rights for
Potash
100% Mineral Rights for
Potash
100% Mineral Rights for
Potash
100% Mineral Rights for
Potash
100% Mineral Rights for
Potash
100% Mineral Rights for
Potash
100% Mineral Rights for
Potash
Lake Seabrook
E77/2529
Parkway Minerals NL
Pending
Lake Seabrook
E77/2532
Parkway Minerals NL
Pending
Lake Seabrook
E77/2533
Parkway Minerals NL
Pending
Lake Seabrook
E77/2537
Parkway Minerals NL
Pending
Lake Seabrook
E77/2563
Parkway Minerals NL
Pending
92
For personal use only