PARKWAY MINERALS NL
A.C.N. 147 346 334
Annual Report
For the year ended
30 June 2019
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
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
Patrick Power
Bahay Ozcakmak
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
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
Bellanhouse
Level 19, Alluvion 58 Mounts Bay Road
Perth WA 6000 AUSTRALIA
Telephone (+61 8) 6355 6888
Bankers
National Australia Bank
Ground Floor
100 St Georges Terrace
Perth WA 6000 AUSTRALIA
Telephone: (+61 8) 9441 9313
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A.C.N. 147 346 334
CHAIRMAN’S LETTER
Dear Shareholder
Parkway Minerals NL (Parkway) is a fertiliser minerals company that controls vast quantities of raw materials
close to emerging and mature markets. These 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, 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 resources, and to date, Parkway is the only
company to successfully recover both these elements from this type of material. Parkway’s proprietary K-
Max® process can extract potassium from the greensand to produce high-purity sulphate of potash (SOP).
SOP is a premium fertiliser product that enjoys a significant, and increasing, margin over the more commonly
traded but less desirable, potassium chloride (MOP). Demand for SOP is increasing, and the, phosphate can
also be recovered from the same greensand deposits by more conventional means.
Parkway has continued efforts to secure funding support to complete the next stage of feasibility studies on
the Dinner Hill Project, within the Dandaragan Trough. In parallel to this we have been looking for other
complementary opportunities to utilise the company’s expertise and as a result recently acquired
Consolidated Potash Corporation (CPC). The acquisition of CPC was completed in September 2019 and has
delivered Parkway ownership of the proprietary aMES™ brine processing technology, and two projects,
consisting of the Karinga Lakes Potash (SOP) project and the New Mexico Lithium brine project.
The aMES™ brine processing technology is highly innovative and incorporates a broad technology portfolio
including patents and know-how, that offer a range of technical and economic advantages in the treatment
of brine solutions. The technology has been successfully trialled in a number of different applications,
including the Karinga Lakes Potash Project which is entering the pre-feasibility study stage of evaluation.
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 projects gives it a distinct advantage in terms of
logistics. Australia imports all its SOP requirements, which would be the main product from the Karinga Lakes
Potash project. Western Australia currently imports all of its phosphate requirements, while our regional
neighbours are also net importers of both potash and phospahate products.
Parkway also holds 34.3 million shares in ASX-listed Davenport Resources (ASX: DAV), which is enjoying
considerable success in establishing a significant potash inventory in Germany. The current Inferred
Resource at the South Harz Project stands at approximately 5 Billion tonnes of ore at an average grade of
10.6 % K2O, which represents a world-class potash asset.
Although depressed fertiliser prices have adversely affected Parkway's plans for commercialisation of Dinner
Hill, I believe the complementary assets acquired through CPC will form a base from which we can grow
Parkway. In particular, our portfolio of mineral and brine processing technologies, differentiates Parkway from
most fertiliser mineral companies, and provides us with a unique range of growth opportunities. 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 reposition Parkway for near-term growth.
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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A.C.N. 147 346 334
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 2019.
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)
Patrick Power (Non-executive Director): appointed 17 September 2019
Bahay Ozcakmak (Executive Director): appointed 17 September 2019
Chew Wai Chuen (Non-executive Director): resigned 30 September 2018
Natalia Streltsova (Non-executive Director): resigned 17 September 2019
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:
Davenport Resources NL (Chairman January 2017 – present).
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A.C.N. 147 346 334
Directors’ Report (continued)
Patrick Power Non-executive Director (appointed 17 September 2019)
Mr Patrick Power is the founder of Western Potash, and was instrumental in securing substantial investment
for the company and advancing the Milestone (under construction) project in Saskatchewan, Canada. Mr
Power brings over 25 years' experience in mining finance, management and venture capital. Mr Power is
currently a director of Western Potash and President and CEO of Arctic Star Exploration, a diamond
exploration company. He has served as a director of other mineral exploration companies including Amarillo
Gold Corp., First Narrows Resources Corp., and Goldtex Resources Ltd.
Bahay Ozcakmak Executive Director (appointed 17 September 2019)
Mr Bahay Ozcakmak is the founder of Activated Water Technologies Pty Ltd and the CEO of AWT’s parent
company, Consolidated Potash Corporation Ltd. In addition to two decades of successful technology
commercialisation experience, Mr Ozcakmak has extensive corporate development expertise, including
M&A in the energy and mining sectors, where he has led the successful acquisition of several flagship
projects and major corporate transactions, particularly with listed companies. Mr Ozcakmak has broad
corporate experience ranging from business and corporate strategy development through to CEO and
director level roles in the energy and mining sectors. Recent experience with resources companies have
focused on gold, copper, nickel, cobalt, lithium, potash and uranium projects. Mr Ozcakmak is currently a
director of several private and public companies including TSX-Venture listed Lions Bay Capital and Fidelity
Minerals Corp.
Chew Wai Chuen Non-Executive Director (resigned 30 September 2018)
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)
Natalia Streltsova Non-Executive Director (resigned 17 September 2019)
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)
Natalia Streltsova was also a member of the Audit & Risk Committee, Remuneration Committee and the
Nomination Committee (Chairman).
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A.C.N. 147 346 334
Directors’ Report (continued)
Company secretary
Amanda Wilton-Heald (appointed 7 March 2018)
Amanda is a Chartered Accountant with over 20 years of accounting, auditing (of both listed and non-listed
companies) and company secretarial experience within Australia and the UK. Amanda has been involved
in the listing of junior explorer companies on the ASX and has experience in corporate advisory and
company secretarial services.
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
16,323,693
33,774,291
-
203,920,534
-
-
-
-
4,950,217
3,445,273
-
52,424,060
Adrian Griffin
Patrick McManus
Patrick Power
Bahay Ozcakmak
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.
OPERATING AND FINANCIAL REVIEW
Principal activities
The principal activity of the entity during the financial year was the exploration for minerals, namely phosphate
and potash.
Operating results for the year
The loss after income tax expense for the year ended 30 June 2019 was $2,009,060 (2018: $4,817,991).
Financial Performance
Total income
Loss before tax
Loss after income tax expense
Loss per share (cents)
2019
$
335,231
(2,009,060)
(2,009,060)
(0.28)
2018
$
% Increase/
(Decrease)
169,793
(5,637,365)
(4,817,991)
(0.81)
97.44%
-64.36%
-58.30%
-65.79%
The financial position of the Group is presented in the attached Consolidated Statement of Financial Position.
As at 30 June 2019, the group had a net asset balance of $2,666,861, a decrease of $1,780,635 from 30
June 2018. The cash balance decreased $1,024,037 to $120,981 as at 30 June 2019. For further details,
refer to the consolidated statement of financial position. Refer to subsequent event for subsequent cash
position.
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A.C.N. 147 346 334
Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Introduction
During fiscal 2018-2019 Parkway Minerals NL (“Parkway” or “the Company”) continued work to progress its
fertiliser projects, drilling on Dandaragan Trough and sampling Lake Seabrook. Dandaragan Trough drilling
has indicated a possible second project in at Dambadgee. As of the date of this report, Parkway owns 44.3
million shares in Davenport Resources and 6.3 Million shares in Lithium Australia NL.
The Company has been searching for a new project, as the investor support for advancing the Dandaragan
Trough Project (DTP) has been limited. Accordingly, during the year a large number of projects were
reviewed for their technical and commercial potential. The Board of Directors decided that the opportunity
afforded by acquiring Consolidated Potash Corporation (CPC) was one that would benefit shareholders;
accordingly, negotiations took place during the year, culminating in an announcement made on 5th August
2019 (See section: Significant events after balance date).
Key 2018-19 achievements included:
• Confirming an Exploration Target at Dambadgee, within the Dandaragan Trough Project, and
•
Identifying and pursuing the opportunity to acquire CPC.
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, the Dandaragan Trough, its shareholding in Davenport, and its planned purchase
of CPC, meet these criteria and have the potential to be major fertiliser suppliers for many decades.
PROJECT SUMMARY
DANDARAGAN TROUGH
The Company has continued to advance the Dinner Hill and Dambadgee potash and phosphate deposits,
175km north of Perth in Western Australia (Figure 1). They form part of the larger Dandaragan Trough
Fertiliser Project. 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 has reviewed its tenement holding in the Dandaragan Trough. In order to reduce the holding
costs associated with this extensive landholding, the Company has reduced some tenements size and
withdrawn from other tenements. 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.
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Figure 1. Dandaragan Trough location
Exploration drilling
The Exploration Target for the Dambadgee project was updated during the year and announced to the market
on 7 January 2019.
The mineralisation is reported as being within an Exploration Target of between 6 billion tonnes and 8 billion
tonnes at a grade of between 3.0% and 3.5% K2O and between 0.9% and 1.3% P2O5. NOTE: The potential
quantities and grades of the target 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 one or more Mineral Resources.
Annual Mineral Resource Statement as at 30 June 2019
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 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.
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
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
Total
Indicated
Inferred
Total
Indicated
Inferred
Total
NB: Totals may differ from sum of individual items due to rounding
Table 1. Dinner Hill Resource
LAKE SEABROOK
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
Figure 2. Lake Seabrook Tenements
Lake Seabrook consists of 5 exploration licences covering a salt lake close to the Koolyanobbing iron ore
mining area, straddling the Perth to Kalgoorlie rail-line (figure 2). Near surface brine samples were taken
from shallow holes on the surface of the lake and assayed for potassium (K). Figure 3 shows the sample
location and brine assay. A peak assay of 4.2 gm/litre was considered encouraging.
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Figure 3. Lake Seabrook assay values
Parkway owns 34 million Davenport Resources Limited (ASX: DAV) shares, at the date of this report.
Davenport owns two exploration licences and three mining licences in central Germany (Figures 4 & 5).
More than 500 million tonnes of potash ore were extracted from the South Harz region in the period
between 1970 and 1992, producing more than 100 million tonnes of potash fertiliser.
Davenport has purchased 3 mining licences within the South Harz field from the German Government.
covering 216 km2. The Licences have been drilled extensively. The licences are perpetual, have no
expenditure commitment liabilities and appear to have been part of short-term mining plans, prior to German
Reunification.
Davenport also owns high quality data from over 200 drill holes in and around the mining licences. Most of
the drilling was carried out in the 1960s and 1980s. Davenport is progressively updating the Historical
Resources to JORC compliance. To date close to 5 billion tonnes of JORC inferred material, at a grade 10.6%
K2O has been identified, including 1.5 billion tonnes of sylvinite at a grade of 13% K2O.
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Figure 4. South Harz Project location
Figure 5. South Harz Project detail
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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
patents 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.
Corporate Activity
Parkway owns 6.5 million Lithium Australia (ASX: LIT) shares. Lithium is a commodity that is facing very
strong demand growth in the medium to long term. Lithium Australia has developed a business model,
focussed on lithium, that involves exploring for lithium ores, lithium recycling and using new technology to
unlock value from unconventional hard-rock lithium minerals. LIT is active in several parts of the world in
exploration and project development, in its own name and joint ventures.
Parkway has continued to monitor activities and opportunities that maybe relevant to the company’s
objectives. As part of this practice it has monitored a wide range of projects within Australia and Overseas.
We have identified the opportunity to acquire Consolidated Potash Corporation (CPC) as a transaction that:
Is aligned with the Parkway’s strategy,
•
• Fits within Parkways broad skill sets and investment aims,
• Has ownership of projects with several near-term opportunities,
• Has identified, achievable, short-term milestones, and
• Can get to a positive cashflow without major dilution of existing Parkway shareholders.
CPC has developed brine treatment technology (aMES™) and is using that to earn into 2 projects, Karinga
Lakes potash project and Lordsburg Playa lithium brine project.
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.
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Significant changes in the state of affairs
There have been no significant changes in the state of affairs for the year.
Significant events after the balance date
On 5 August 2019 Parkway announced a transaction to acquire CPC, encompassing:
• The issue of 480 million Parkway Shares,
• 123 million Partly Paid shares,
• A capital raising of $450,000, and
• Transfer of 10 million Davenport shares.
The proposed transaction was described in detail in an ASX release on 5 August and a Notice of Meeting
that was sent to shareholders on 14 August.
An EGM on 13 September 2019 voted in favour of the transaction.
Likely Developments and expected results
Post the Shareholder meeting, the initial focus of the Company will be on:
• Completing the purchase of CPC and combining both groups,
• Completing a Preliminary Feasibility Study on the Karinga Lakes potash project,
• Operating a semi-commercial Pilot Plant on Karinga Lakes feedstock, and
• Geological appraisal of the Lordsburg Playa licences, focussed on targeting a drilling programme.
Environmental regulation and performance
The Company’s activities are subject to Australian legislation relating to the protection of the environment.
The Company is subject to significant environmental legal regulations in respect to its exploration and
evaluation activities. There have been no known breaches of these regulations and principles.
Indemnification and Insurance of directors and officers
The Company has entered into deeds of access and indemnity with the officers of the Company, indemnifying
them against liability incurred, including costs and expenses in successfully defending legal proceedings.
The indemnity applies to a liability for costs and expenses incurred by the director or officer acting in their
capacity as a director or officer.
Except in the case of a liability for legal costs and expenses, it does not extend to a liability that is:
(a)
(b)
owed to the Company or a related body corporate of the Company;
for a pecuniary penalty order under section 1317G or a compensation order under section 1317H or
section 1317HA of the Corporations Act 2001; or
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.
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Directors’ Report (continued)
Indemnification and Insurance of directors and officers (continued)
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 55,126,000 unissued ordinary shares under options.
During the financial year ended 30 June 2019, the Company issued 50,126,000 free attaching unlisted
options exercisable at $0.02 expiring 17 August 2020.
The Company also issued 5,000,000 unlisted options exercisable at $0.02 expiring 17 August 2020 to the
consultant as part of option based payment.
Option holders do not have any right, by virtue of the option, to participate in any share issue of the company
or any related body corporate.
Non-audit services
The Company may decide to employ the auditor on assignments additional to its statutory audit duties where
the auditor’s expertise and experience with the Company are important. The directors are satisfied that the
provision of non-audit services is compatible with the general standard of independence for audits by the
Corporations Act 2001. The nature and scope of each type of non-audit service provide means that auditor
independence was not compromised.
Details of the amounts paid or payable to the auditor, Ernst & Young, for non-audit services provided during
the year are set out below.
Remuneration of Ernst & Young for:
- research & development tax concession
- tax compliance
2019
$
2018
$
17,861
11,072
28,933
6,979
14,214
21,193
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Directors’ Report (continued)
Directors’ meetings
Meetings of directors held and their attendance during the financial year were as follows:
Name of
director:
Directors’
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
Natalia
Streltsova
Chew Wai
Chuen
6
6
6
2
6
6
6
2
2
-
2
-
2
-
2
-
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 2018 was adopted at the 2018 Annual General meeting. 67,886,868 votes were
in favour of the report and 2,016,512 were against. No questions or comments were raised relating to the
report.
No remuneration consultants were used during the year.
Details of Key Management Personnel
(i) Directors:
Adrian Griffin
Patrick McManus
Natalia Streltsova
(ii) Executives:
James Guy
Robert Van Der Laan
Non-Executive Chairman
Managing Director
Non-Executive Director (resigned 17 September 2019)
Exploration Manager
Chief Financial Officer
Subsequent to year end, Patrick Power (Non-executive Director) and Bahay Ozcakmak (Executive Director)
were appointed 17 September 2019.
16
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Parkway Minerals NL
A.C.N. 147 346 334
Directors’ Report (continued)
Remuneration Report (audited) (continued)
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.
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 (2018: $200,000 per annum).
17
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Parkway Minerals NL
A.C.N. 147 346 334
Directors’ Report (continued)
Remuneration Report (audited) (continued)
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.
Under the director fee and senior management fee sacrifice share plan, those participated directors and
management sacrifice 30% of their fee toward shares each month. The share price is determined by market
using 5 days VWAP calculation from the service date. These shares are issued every 6 months.
Executive director and senior management remuneration
Objective
The Company aims to reward executives with a level and mix of remuneration commensurate with their
position and responsibilities within the Company and so as to:
▪
▪
▪
reward executives for Company, business team and individual performance;
align the interests of executives with those of shareholders; and
ensure total remuneration is competitive by market standards.
Structure
▪ At this time, the cash component of remuneration paid to the Executive directors, and other
senior managers is not dependent upon the satisfaction of performance conditions.
▪
It is current policy that some executives be engaged by way of consultancy agreements with the
Company, under which they receive a contract rate based upon the number of hours of service
supplied to the Company. There is provision for yearly review and adjustment based on
consumer price indices. Such remuneration is hence not dependent upon the achievement of
specific performance conditions. This policy is considered to be appropriate for the Company,
having regard to the current state of its development.
▪ Executive directors are encouraged by the Board to hold shares in the Company (purchased
on-market and in accordance with the Company’s approved policies to ensure there is no insider
trading). It is considered good governance for directors of a company to have a stake in that
company. The Executive directors of the Company may also participate in the share and option
plans as described in this report.
18
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Parkway Minerals NL
A.C.N. 147 346 334
Directors’ Report (continued)
Remuneration Report (audited) (continued)
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:
2019
$
2018
$
2017
$
2016
$
2015
$
2014
$
2013
$
2012
$
Net loss from
continuing operations
after income tax
Basic loss per share in
cents
Share Price in Cents
(2,009,060)
(4,817,991)
(1,784,884)
(184,648)
(2,871,003)
(1,822,505)
(4,193,632)
(3,900,096)
(0.28)
(0.81)
(0.43)
(0.07)
(1.33)
0.4
1.0
1.0
3.2
4.9
(1.72)
3.60
(5.85)
12.0
(5.76)
23.0
No dividends were paid in any of these years.
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 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.
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.
19
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Parkway Minerals NL
A.C.N. 147 346 334
Directors’ Report (continued)
Remuneration Report (audited) (continued)
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 2019
Short-term
Post-employment benefits
Director
Directors’
Fees
$
Salary and
Consulting
Fees
$
A Griffin
P McManus
C Chuen*
N Streltsova
Total
57,534
-
5,833
31,963
95,330
-
175,799
-
-
175,799
* Resigned 30 September 2018
Executives’ Remuneration 2019
Superannuation Termination
Share and Option
Based Payments
Contribution
$
Benefits
$
Shares Options
$
$
Total
$
7,808
23,858
- 24,658
- 75,343
- - 2,500
-
13,699
- 116,200
4,338
36,004
-
-
-
-
-
90,000
275,000
8,333
50,000
423,333
Short-term
Salary
$
Consulting
Fees
$
Post-employment benefits
Superannuation Termination
Contribution
$
Benefits
$
Share and Option
Based Payments
Shares Options
$
$
Total
$
-
-
-
60,978
- - 8,193
-
69,171
45,303
-
- 51,352
-
96,655
106,281
- - 59,545
- 165,826
95,330
282,080
36,004
- 175,745
- 589,159
Executive
J Guy
R Van der
Laan
Total
Total
Directors’ and
Executives’
Remuneration
20
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Parkway Minerals NL
A.C.N. 147 346 334
Directors’ Report (continued)
Remuneration Report (audited) (continued)
Directors’ Remuneration 2018
Short-term
Post-employment benefits
Director
Directors’
Fees
$
Salary and
Consulting
Fees
$
A Griffin
P McManus
C Chuen
N Streltsova
Total
57,534
-
35,000
31,963
124,497
-
205,055
-
-
205,055
Executives’ Remuneration 2018
Superannuation Termination
Share and Option
Based Payments
Contribution
$
Benefits
$
Shares Options
$
$
Total
$
7,808
23,858
- 24,658
- 75,343
- - 15,000
-
13,699
- 128,700
4,338
36,004
-
-
-
-
-
90,000
304,256
50,000
50,000
494,256
Short-term
Salary
$
Consulting
Fees
$
Post-employment benefits
Superannuation Termination
Contribution
$
Benefits
$
Share and Option
Based Payments
Shares Options
$
$
Total
$
-
-
-
69,260
- - 9,726
99,320
-
-
-
-
-
78,986
99,320
168,580
- - 9,726
- 178,306
124,497
373,635
36,004
- 138,426
- 672,562
Executive
J Guy
R Van der
Laan
Total
Total
Directors’ and
Executives’
Remuneration
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 2019 (2018: 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 2019 (2018: nil).
21
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Parkway Minerals NL
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
2019
Directors
A Griffin
P McManus
N Streltsova
C Chuen
Total
Executives
J Guy
R Van der Laan
Total
Balance at 1 July
2018
Ordinary
Granted as
remuneration
Ordinary*
On Exercise of
Options
Ordinary
Net change other
Ordinary
Balance at 30 June
2019
Ordinary
11,557,179
19,209,979
2,914,102
3,335,939
37,017,199
1,255,296
39,286,751
40,542,047
1,833,131
5,601,221
1,018,401
-
8,452,753
436,276
1,307,609
1,743,885
-
-
-
-
-
-
-
-
-
-
-
(3,335,939)*
(3,335,939)
-
-
-
13,390,310
24,811,200
3,932,503
-
42,134,013
1,691,572
40,594,360
42,285,932
84,419,945
Total Directors' and Executives’ Share holdings
77,559,246
10,196,638
-
(3,335,939)
*Share holding at the date of resignation on 30 September 2018
22
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Parkway Minerals NL
A.C.N. 147 346 334
Directors’ Report (continued)
Remuneration Report (audited) (continued)
*Shares granted as remuneration were as follows:
Adrian Griffin
-
1,833,131 shares at $0.0067 each issued on 22 January 2019.
Patrick McManus
-
5,601,221 shares at $0.0067 each issued on 22 January 2019.
Natalie Streltsova
1,018,401 shares at $0.0067 each issued on 22 January 2019.
-
James Guy
-
436,276 shares at $0.0074 each issued on 22 January 2019.
Robert Van der Laan
-
1,307,609 shares at $0.0050 each issued on 22 January 2019.
(b) Partly Paid Contributing Shares of Key Management Personnel
2019
Directors
A Griffin
P McManus
N Streltsova
C Chuen
Total
Executives
J Guy
R Van der Laan
Total
Total Directors' and Executives’ Share
holdings
*Share holding at the date of resignation on 30 September 2018
Balance at 1 July
2018
Partly Paid
Granted as
remuneration
Partly Paid
On Exercise of
Options
Partly Paid
Bonus issue
received
Partly Paid
Net change other
Partly Paid
Balance at 30 June
2019
Partly Paid
4,950,217
3,445,273
139,973
326,396
8,861,859
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(326,396)*
(326,396)
4,950,217
3,445,273
139,973
-
8,535,463
-
-
3,178,610
-
3,178,610 -
-
-
-
-
-
-
-
-
-
-
3,178,610
3,178,610
12,040,469
-
-
-
(326,396)
11,714,073
23
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Parkway Minerals NL
A.C.N. 147 346 334
Directors’ Report (continued)
Remuneration Report (audited) (continued)
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
2019: There were no Options granted to Key management personnel as part of the incentive plan during the year
ended 30 June 2019.
2018: There were no Options granted to Key management personnel as part of the incentive plan during the year
ended 30 June 2018.
(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, accounting staff
(excluding fees directly related to Robert Van der Laan) and
exploration staffs.
Service fees paid are considered to be on normal commercial terms
and conditions.
30-Jun-19
$
30-Jun-18
$
1,276
9,220
70,189
71,465
165,041
174,261
Trade and other payables to related party as at 30 June 2019 amounted to $12,219 (30 June 2018: $23,549).
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 25 and forms part of this report.
This report is made in accordance with a resolution of directors.
Patrick McManus
Managing Director
Perth
Dated: 26 September 2019
24
For personal use only
Ernst & Young
11 Mounts Bay Road
Perth WA 6000 Australia
GPO Box M939 Perth WA 6843
Tel: +61 8 9429 2222
Fax: +61 8 9429 2436
ey.com/au
Auditor’s Independence Declaration to the Directors of Parkway
Minerals NL
As lead auditor for the audit of the financial report of Parkway Minerals NL for the financial year ended 30
June 2019, 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
26 September 2019
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
MH:DA:PWN:008
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2019
For the year
ended 30 June
2019
For the year
ended 30 June
2018
Note
$
$
INCOME FROM CONTINUING ACTIVITIES
Other income
Stamp Duty Refund
Loss from disposal of financial assets
Interest
Government Grant
TOTAL INCOME
EXPENSES
Write-off of exploration expenditure
Fair value movement of financial assets
Impairment of investment in associate
General & Administration expenses
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
NET LOSS FOR THE YEAR
12
12
11
18
11
4
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
- Income tax on items that may be reclassified to profit or loss
Equity accounted investments - share of comprehensive income
11
TOTAL OTHER COMPREHENSIVE INCOME
109,361
-
147
5,195
168,828
335,231
58,818
88,453
-
22,522
-
169,793
-
2,855,000
236,917
4,355
433,531
27,380
196,746
307,192
17,388
43,714
342,580
682,788
-
107,754
659,111
11,431
234,424
841,684
59,123
63,452
354,130
581,480
(2,009,060)
-
(2,009,060)
(5,637,365)
819,374
(4,817,991)
-
-
-
31,681
31,681
1,576,375
-
(433,503)
36,112
1,178,984
TOTAL COMPREHENSIVE LOSS FOR THE YEAR
(1,977,379)
(3,639,007)
LOSS FOR THE YEAR ATTRIBUTABLE TO:
Basic and diluted loss per share (cents per share)
7
(0.28)
(0.81)
The consolidated statement of comprehensive income should be read in conjunction with the accompanying
notes.
26
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Parkway Minerals NL
A.C.N. 147 346 334
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2019
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other assets
Total Current Assets
NON CURRENT ASSETS
Trade and other receivables
Investment in associate
Financial assets
Plant and equipment
Total Non Current Assets
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Provisions
Total Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed Equity
Reserves
Accumulated losses
TOTAL EQUITY
As at 30 June 2019 As at 30 June 2018
Note
$
$
8
9
10
9
11
12
13
14
15
16
17
120,981
111,645
18,484
251,110
20,000
2,257,653
399,374
21,912
2,698,939
2,950,049
145,769
137,418
283,187
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
283,187
517,053
2,666,861
4,447,496
23,159,732
1,827,265
(22,320,136)
2,666,861
22,974,071
1,890,627
(20,417,202)
4,447,496
The consolidated statement of financial position should be read in conjunction with the accompanying notes.
27
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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 2019
Contributed
equity
Accumulated
Losses
Share and Option
Based Payment
Reserve
Financial
Asset
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
capacity 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.
28
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 2019
Contributed
equity
Accumulated
Losses
Share and Option
Based Payment
Reserve
Financial
Asset
Reserve
Foreign
Currency
translation
reserve
$
22,974,071
-
22,974,071
-
-
-
$
(20,417,202)
106,126
(20,311,076)
(2,009,060)
-
(2,009,060)
$
711,643
-
711,643
$
1,142,872
(106,126)
1,036,746
$
36,112
-
36,112
Total
$
4,447,496
-
4,447,496
-
-
-
-
-
-
-
-
-
(2,009,060)
31,681
31,681
31,681
(1,977,379)
-
-
-
196,744
Balance at 1 July 2018
Effect of adoption of AASB9
Balance at 1 July 2018
Loss for the year
Other comprehensive income (net
of tax)
Equity accounted investments - share
of other comprehensive income
Total comprehensive loss for the
year
Transactions with owners in their
capacity as owners:
Share issue transaction costs
Share and option based payments
(11,083)
196,744
-
-
11,083
-
Balance at 30 June 2019
23,159,732
(22,320,136)
722,726
1,036,746
67,793
2,666,861
The consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2019
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
Purchase of plant and equipment
Payment for exploration expenditure
Proceeds from sale of investment
NET CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES
FINANCING ACTIVITIES
Proceeds from issue of shares
Share issue costs
NET CASH FLOWS FROM FINANCING ACTIVITIES
For the year
ended 30
June 2019
For the year
ended 30
June 2018
Note
$
$
146,550
(1,340,962)
-
69,787
5,195
(1,119,430)
13,461
(1,974,966)
88,453
-
22,522
(1,850,530)
22
-
-
(3,463)
-
51,847
48,384
(20,000)
(500,000)
(13,213)
(85,000)
-
(618,213)
68,905
(21,896)
47,009
1,808,260
(75,538)
1,732,722
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
(1,024,037)
1,145,018
(736,021)
1,881,039
8
120,981
1,145,018
The consolidated statement of cash flows should be read in conjunction with the accompanying notes.
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Notes to Financial Statements
Note 1: Corporate information
The financial report of Parkway Minerals NL (the “Company” or “Parkway”) and its controlled entity (the
“consolidated entity” or the “Group”) for the year ended 30 June 2019 was authorised for issue in accordance
with a resolution of directors on 25 September 2019.
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 applied throughout the year presented unless
otherwise stated.
The financial report has also been prepared on a historical cost basis with the exception of equity instrument
at fair value through profit and loss. 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 revised or amending accounting standards and interpretations
The Group applied all new and amended Australian Accounting Standards and Interpretations which were
relevant to the Group, which are effective for annual periods beginning on 1 July 2018 including:
i.
AASB 15 Revenue from Contracts with Customers
The Group adopted AASB 15 with the date of initial recognition being 1 July 2018.
AASB 15 supersedes AASB 118 Revenue, AASB 111 Construction Contracts and related Interpretations
and it applies to all revenue arising from contracts with customers, unless those contracts are in scope
with other standards. The new standard establishes a five-step model to account for revenue arising from
contracts with customers. Under AASB 15, revenue is recognised at an amount that reflects the
consideration to which an entity expects to be entitled in exchange for transferring goods or services to a
customer.
At 1 July 2018 it was determined that the adoption of AASB 15 had no impact on the Group as there are
no material revenue streams that are under the scope of the new standard.
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Notes to Financial Statements
Note 2: Statement of significant accounting policies (continued)
The Group recognises other income from reimbursement of geological services costs overtime as services are
rendered. This treatment remains the same under AASB 15.
ii.
AASB 9 Financial Instruments
AASB 9 replaces AASB 139 Financial Instruments: Recognition and Measurement (“AASB 139”), bringing
together all three aspects of the accounting for financial instruments: classification and measurement;
impairment; and hedge accounting. The Group adopted AASB 9 retrospectively, with the initial application
date of 1 July 2018. The group has not restated comparative information, which continues to be reported
under AASB 139. Differences arising from the adoption of AASB 9 have been recognised directly in
retained earnings and other components of equity.
Under AASB 9, debt instruments are subsequently measured at fair value through profit or loss (FVTPL),
amortised cost, or fair value through other comprehensive income (FVOCI).
In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it
needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal
amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument
level.
The Group’s business model for managing financial assets refers to how it manages its financial assets in
order to generate cash flows. The business model determines whether cash flows will result from collecting
contractual cash flows, selling the financial assets, or both. Financial assets measured at amortised cost
pass the SPPI test and are in a business model with the objective to hold the financial asset in order to
collect contractual cashflows.
At the date of initial application, existing financial assets and liabilities of the Group were assessed in terms of
the requirements of AASB 9. The assessment was conducted on instruments that had not been derecognised
as at 1 July 2018. In this regard, the Group has determined that the adoption of AASB 9 has impacted the
classification of financial instruments at 1 July 2018 as follows:
Class of financial
instrument presented
in the statement of
financial position
Original
measurement
category under
AASB 139 (i.e. prior
to 1 July 2018)
New measurement
category under
AASB 9 (i.e. from
1 July 2018)
Carrying
value at 1
July under
AASB 139
$
Carrying
value at 1
July
under
AASB 9 $
Cash and cash
equivalents
Trade and other
receivables
Loans and receivables
Loans and receivables
Financial assets
Available-for-sale
financial assets
Financial assets at
amortised cost
Financial assets at
amortised cost
Financial Assets at
Fair value through
profit and loss
(FVTPL)
1,145,018 1,145,018
136,681
136,681
687,990
687,990
Trade and other
payables
Financial liabilities at
amortised cost
Financial liabilities
at amortised cost
402,071
402,071
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Notes to Financial Statements
Note 2: Statement of significant accounting policies (continued)
The change in classification for cash and cash equivalents, trade and other receivables, and trade and other
payables has not resulted in any re-measurement adjustments at 1 July 2018. The impact of the change on
financial assets is discussed further below:
Financial assets at FVTPL
Financial assets at fair value through profit or loss include financial assets held for trading, e.g., derivative
instruments, financial assets designated upon initial recognition at fair value through profit or loss, e.g., debt
or equity instruments, or financial assets mandatorily required to be measured at fair value, i.e., where they
fail the SPPI test. Financial assets are classified as held for trading if they are acquired for the purpose of
selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also
classified as held for trading unless they are designated as effective hedging instruments. Financial assets
with cash flows that do not pass the SPPI test are required to be classified and measured at fair value through
profit or loss, irrespective of the business model. Notwithstanding the criteria for debt instruments to be
classified at amortised cost or at fair value through OCI, as described above, debt instruments may be
designated at fair value through profit or loss on initial recognition if doing so eliminates, or significantly
reduces, an accounting mismatch.
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair
value with net changes in fair value recognised in profit or loss.
With the implementation of AASB 9, the Group has classified the investment in Lithium Australia NL
previously classified as available for sale financial assets as a financial asset at fair value through profit and
loss. This is on the basis that this investment is not expected to be held on a long-term basis. Accordingly,
the prior period fair value gain of $106,126 recorded in the financial asset reserve has been transferred to
accumulated losses to align the impact of AASB 9 at 1 July 2018. There have been no other changes as a
result of the adoption of AASB 9.
Impairment of financial assets
In respect of financial assets carried at amortised cost, AASB 9 requires an expected credit loss model to
be applied as opposed to an incurred credit loss model under AASB 139. The expected credit loss model
requires the Group to account for expected credit losses and changes in those expected credit losses at
each reporting date to reflect changes in credit risk since initial recognition of the financial asset. In
particular, AASB 9 requires the Group to measure the loss allowance at an amount equal to lifetime
expected credit loss (“ECL”) if the credit risk on the instrument has increased significantly since initial
recognition. On the other hand, if the credit risk on the financial instrument has not increased significantly
since initial recognition, the Group is required to measure the loss allowance for that financial instrument at
an amount equal to the portion of the lifetime ECL that results from default events on a financial instrument
that are possible within 12 months after the reporting date. ECL’s are based on the difference between
contractual cashflows due in accordance with the contract and all the Group expects to receive. The
shortfall is then discounted at an approximation to the assets original effective interest rate.
As at 1 July 2018, management reviewed and assessed the Group’s existing financial assets for
impairment using reasonable and supportable information. In accordance with AASB 9, where the directors
concluded that it would require undue cost and effort to determine the credit risk of a financial asset on
initial recognition, the Group recognises lifetime ECL. No material impact was noted as a result of the
assessment.
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Notes to Financial Statements
Note 2: Statement of significant accounting policies (continued)
New accounting standards not yet adopted
The following standards that have been issued but not yet effective which may impact the consolidated
entity in the period of initial application have not been early adopted in preparing this financial report.
Management is currently in the process of estimating the impact of these standards. The adoption of these
Accounting
Standards and Interpretations is not expected to have a material impact on the financial performance or
position of the consolidated entity.
AASB 16 Leases
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.
The Group does not expect any material impact from this standard since there are no current operating
lease commitments in place.
(c)
Statement of compliance
The financial report complies with Australian Accounting Standards and International Financial Reporting
Standards (IFRS).
(d) Critical accounting estimates and judgements
The application of accounting policies requires the use of judgements, estimates and assumptions about
carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and
associated assumptions are based on historical experience and other factors that are considered to be
relevant. Actual results may differ from these estimates.
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.
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Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
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 18.
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.
Investment in an associate
The Group’s investment in 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 2018) was below the carrying value of the investment at 30
June 2018. Accordingly, an impairment charge of $107,754 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 2019) continued to be below the carrying value of the investment at 30 June 2019. Accordingly, an
impairment charge of $4,355 was recorded in the current period.
(e)
Share-based payment transactions
Employees (including senior executives) of the Company receive remuneration in the form of share-based
payment transactions, whereby employees render services as consideration for equity instruments (equity-
settled transactions).
The cost of equity-settled transactions is recognised, together with a corresponding increase in other capital
reserves in equity, over the period in which the performance and/or service conditions are fulfilled. The
cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date
reflects the extent to which the vesting period has expired and the Company’s best estimate of the number of
equity instruments that will ultimately vest. The income statement expense or credit for a period represents
the movement in cumulative expense recognised as at the beginning and end of that period and is recognised
in equity based payments expense (Note 18).
No expense is recognised for awards that do not ultimately vest, except for equity-settled transactions for
which vesting are conditional upon a market or non-vesting condition. These are treated as vesting
irrespective of whether or not the market or non-vesting condition is satisfied, provided that all other
performance and/or service conditions are satisfied.
When the terms of an equity-settled transaction award are modified, the minimum expense recognised is the
expense as if the terms had not been modified, if the original terms of the award are met. An additional
expense is recognised for any modification that increases the total fair value of the share based payment
transaction, or is otherwise beneficial to the employee as measured at the date of modification.
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Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(e)
Share-based payment transactions (continued)
When an equity-settled award is cancelled, it is treated as if it vested on the date of cancellation, and any
expense not yet recognised for the award is recognised immediately. This includes any award where non-
vesting conditions within the control of either the entity or the employee are not met. However, if a new award
is substituted for the cancelled award, and designated as a replacement award on the date that it is granted,
the cancelled and new awards are treated as if they were a modification of the original award, as described
in the previous paragraph. The dilutive effect of outstanding options is reflected as additional share dilution in
the computation of diluted earnings per share (further details are given in Note 7).
(f)
Going concern
This report has been prepared on the going concern basis, which contemplates the continuity of normal
business activity and the realisation of assets and settlement of liabilities in the normal course of business.
The Consolidated entity has incurred a net loss after tax for the year ended 30 June 2019 of $2,009,060
(2018: $4,817,991) and experienced net cash outflows from operating activities of $1,119,430 (2018:
$1,850,830). As at 30 June 2019 the consolidated entity had cash and cash equivalents of $120,981 (2018:
$1,145,018). Subsequent to the financial year ended 30 June 2019, the Company raised $450,000 via s708
placement. 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.
Should the Consolidated entity not achieve the matters set out above, there is significant uncertainty whether
the Consolidated entity will continue as a going concern and therefore whether it will realise its assets and
extinguish its liabilities in the normal course of business and at the amounts stated in the financial report.
The financial report does not contain any adjustments relating to the recoverability and classification of
recorded assets or to the amounts or classification of recorded assets or liabilities that might be necessary
should the Consolidated entity not be able to continue as a going concern.
(g)
Exploration and evaluation expenditure
Exploration and evaluation costs are written off in the year they are incurred apart from acquisition costs
which are carried forward where right of tenure of the area of interest is current and they are expected to be
recouped through sale or successful development and exploitation of the area of interest or, where
exploration and evaluation activities in the area of interest have not reached a stage that permits reasonable
assessment of the existence of economically recoverable reserves.
Where an area of interest is abandoned or the directors decide that it is not commercial, any accumulated
acquisition costs in respect of that area are written off in the financial period the decision is made. Each area
of interest is also reviewed at the end of each accounting period and accumulated costs written off to the
extent that they will not be recoverable in the future. Amortisation is not charged on costs carried forward in
respect of areas of interest in the development phase until production commences.
(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
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Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(h) Plant & equipment (continued)
Impairment
The carrying values of plant and equipment are reviewed for impairment when impairment indicators exist
under the accounting standards.
For an asset that does not generate largely independent cash inflows, the recoverable amount is determined
for the cash-generating unit to which the asset belongs.
If any indication exists of impairment and where the carrying values exceed the estimated recoverable
amount, the assets or cash-generating units are written down to their recoverable amount.
The recoverable amount of plant and equipment is the greater of fair value less costs to sell and value in use.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-
tax discount rate that reflects current market assessments of the time value of money and the risks specific
to the asset.
Derecognition
An item of plant and equipment is derecognised upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of the asset
(calculated as the difference between the net disposal proceeds and the carrying amount of the item) is
included in the statement of comprehensive income in the period the item is derecognised.
(i)
Income tax
Current tax assets and liabilities for the current year and prior periods are measured at amounts expected to
be recovered from or paid to the taxation authorities based on the current year’s taxable income. The tax
rates and tax laws used for computations are enacted or substantively enacted by the balance date.
Deferred income tax is provided on all temporary differences at balance date between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except where the deferred
income tax liability arises from the initial recognition of goodwill of an asset or liability in a transaction that is
not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable
profit or loss.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused
tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences, and the carry-forward of unused tax assets and unused tax
losses can be utilised except where the deferred income tax asset relating to the deductible temporary
difference arises from the initial recognition of an asset or liability in a transaction that is not a business
combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.
The carrying amount of deferred income tax assets is reviewed at each balance date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the
deferred income tax asset to be utilised.
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.
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A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(i)
Income tax (continued)
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
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.
(k)
Provisions and employee benefits
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the amount of the obligation.
When the Company expects some or all of a provision to be reimbursed, for example under an insurance
contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually
certain. The expense relating to any provision is presented in the statement of comprehensive income net of
any reimbursement.
Provisions are measured at the present value of management’s best estimate of the expenditure required to
settle the present obligation at the balance date. If the effect of the time value of money is material, provisions
are discounted using a current pre-tax rate that reflects the time value of money and the risks specific to the
liability. The increase in the provision resulting from the passage of time is recognised in finance costs.
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A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(k)
Provisions and employee benefits (continued)
Employee leave benefits
i. Wages and salaries, annual leave and sick leave
Liabilities for wages and salaries including non-monetary benefits, annual leave and accumulating sick leave
due to be settled within 12 months of the reporting date are recognised in provisions in respect of employees’
services up to the reporting date and are measured at the amounts expected to be paid when the liabilities
are settled. Liabilities for non-accumulating sick leave are recognised when the leave is taken and measured
at the rates paid or payable.
ii. Long service leave
The liability for long service leave is recognised and measured as the present value of expected future
payments to be made in respect of services provided by employees up to the reporting date using the
projected unit credit method. Consideration is given to the expected future wage and salary levels, experience
of employee departures and periods of service. Expected future payments are discounted using market yields
at the reporting date on 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.
(m) Trade and other receivables (new policy applied from 1 July 2018 due to adoption of AASB9)
Policy up to 30 June 2018
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.
Policy from 1 July 2018
Trade receivables are initially recognised at their transaction price and other receivables at fair value.
Receivables that are held to collect contractual cash flows and are expected to give rise to cash flows
representing solely payments of principal and interest are classified and subsequently measured at amortised
cost. Receivables that do not meet the criteria for amortised cost are measured at fair value through profit or
loss.
The Group assesses on a forward-looking basis the expected credit losses associated with its debt
instruments carried at amortised cost. The amount of expected credit losses is updated at each reporting
date to reflect changes in credit risk since initial recognition of the respective financial instrument. The
expected credit losses on these financial assets are estimated based on the Group’s historic credit loss
experience, adjusted for factors that are specific to the debtors, general economic conditions and an
assessment of both the current as well as forecast conditions at the reporting date.
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A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(m) Trade and other receivables (new policy applied from 1 July 2018 due to adoption of AASB9)
(continued)
For all other receivables measured at amortised cost, the Group recognised lifetime expected credit losses
when there has been a significant increase in credit risk since initial recognition. If on the other hand the credit
risk on the financial instrument has not increased significantly since initial recognition, the Group measures
the loss allowance for that financial instrument at an amount equal to expected credit losses within the next
12 months.
(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
Revenue is recognised at an amount that reflects the consideration to which the Group is expected to be
entitled in exchange for transferring goods or services to a customer.
Other Income
Revenue from rental and geological services provided is recognised overtime 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.
Other revenue
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.
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 instalments. 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.
40
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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)
(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
Policy up to 30 June 2018
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.
41
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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)
(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.
Policy from 1 July 2018
Initial recognition and measurement:
Other financial assets are classified, at initial recognition, at amortised cost, financial assets at fair value
through profit or loss, fair value through other comprehensive income as appropriate. Other financial assets,
are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through
profit or loss, transaction costs that are attributable to the acquisition of the financial asset.
The Group has not recognised any financial assets at fair value through other comprehensive income.
Subsequent measurement:
The subsequent measurement of other financial assets depends on their classification as described below:
Financial assets at fair value through profit or loss
a)
Financial assets are classified at “fair value through profit or loss” include financial assets held for trading,
financial assets designated upon initial recognition at fair value through profit or loss, or financial assets
mandatorily required to be measured at fair value. Financial assets at fair value through profit or loss are
carried in the statement of financial position at fair value with net changes in fair value presented in the
statement of comprehensive income.
Amortised cost
b)
In order for a financial asset to qualify for measurement as amortised cost, it has to pass both the contractual
cash flow characteristics test as well as the business model test. Under the contractual cash flow
characteristics test, an entity has to assess, whether the cash flows resulting from the financial asset are
solely payments for principal and interest on the outstanding principal amount. Under the business model
test the objective is to hold the financial assets in order to collect contractual cash flows.
Receivables that are held to collect contractual cash flows and are expected to give rise to cash flows
representing solely payments of principle and interest are classified and subsequently measured at amortised
cost using the effective interest rate method. Receivables that do not meet the criteria for amortised cost are
measured at fair value through profit or loss.
42
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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)
(t)
Impairment of financial assets
The Company assesses at each balance date whether a financial asset or group of financial assets is
impaired.
Policy up to 30 June 2018
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.
Policy from 1 July 2018
The Group assesses on a forward looking basis the expected credit loss associated with other financial
assets. Evidence of impairment may include indications that the debtors or a group of debtors is experiencing
significant financial difficulty, default or delinquency in interest or principal payments, the probability that they
will enter bankruptcy or other financial reorganisation and observable data indicating that there is a
measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions
that correlate with defaults.
For other financial assets, the expected credit loss is based on the 12-month expected credit loss. The 12-
month expected credit loss is the portion of lifetime expected credit losses that results from default events on
a financial instrument that are possible within 12 months after the reporting date. However, when there has
been a significant increase in credit risk since origination, the allowance will be based on the lifetime expected
credit loss.
The Group considers an event of default has occurred when a financial asset is more than 90 days past due
or external sources indicate that the debtor is unlikely to pay its creditors, including the Group. A financial
asset is credit impaired when there is evidence that the counterparty is in significant financial difficulty or a
breach of contract, such as a default or past due event has occurred. The Group writes off a financial asset
when there is information indicating the counterparty is in severe financial difficulty and there is no realistic
prospect of recovery.
(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.
43
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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)
(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.
44
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Parkway Minerals NL
A.C.N. 147 346 334
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
2019
$
2018
$
-
-
-
-
-
-
(819,374)
(819,374)
433,503
433,503
(c) Numerical reconciliation of income tax expense to
prima facie tax payable
Loss from continuing operations before income tax expense
(2,009,060)
(5,637,365)
Prima facie tax benefit at the Australian tax rate of 27.5%
(552,492)
(1,550,275)
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
54,105
1,486
-
14,258
482,643
64,467
2,020
-
-
664,414
Income tax (benefit)/expense
-
(819,374)
45
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Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
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
2019
$
2018
$
84,478
9,857
112,505
37,790
14,217
989,853
1,248,700
(518,018)
730,682
(730,682)
-
620,854
-
109,828
730,682
(730,682)
-
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)
-
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.
Note 5: Key management personnel remuneration
Short-term employee benefits
Post-employment benefits
Share-based payments
Total compensation
Refer to Note 21 for other related parties transactions.
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
46
2019
$
377,410
36,004
175,745
589,159
2018
$
498,132
36,004
138,426
672,562
2019
$
2018
$
39,255
37,338
17,861
11,072
68,188
6,979
14,214
58,531
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
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
2019
$
0.28
0.28
(2,009,060)
(2,009,060)
2018
$
0.81
0.81
(4,817,991)
(4,817,991)
Number
Number
Weighted average number of ordinary shares used in the
calculation of basic and diluted loss per share
724,922,750
591,335,306
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 2019, a total of 188,426,321 potential ordinary shares had been issued,
this is including 65,126,000 (2018: 30,804,503) options and 123,300,321 (2018: 123,300,321) partly paid
shares respectively.
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)
Other receivables
30-Jun-19
$
120,981
120,981
30-Jun-18
$
1,145,018
1,145,018
30-Jun-19
$
30-Jun-18
$
5,223
7,981
99,041
111,645
-
20,000
20,000
46,211
20,470
70,000
136,681
500,000
-
500,000
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.
Other receivables – Non-Current relates to security bonds held with a reputable Australian bank.
(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.
47
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Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 10: Other assets
Short term investment
Prepayments
Note 11: Investment in associate
30-Jun-19
$
30-Jun-18
$
-
18,484
18,484
20,000
15,918
35,918
The Group’s interest in Davenport Resources Limited (“Davenport”), a potash exploration group incorporated
in Australia and listed on ASX, is accounted for using the equity method in the consolidated financial
statements. This is on the basis that it was concluded Parkway has significant influence due to the 31%
interest that it has in the entity as at 30 June 2019 (30 June 2018: 34.2%), 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:
Balance at the beginning of the financial year
Receipt of subscription shares
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
30-Jun-19
$
30-Jun-18
$
2,413,115
500,000
-
31,681
(682,788)
(4,355)
2,257,653
1,636,243
-
1,429,994
36,112
(581,480)
(107,754)
2,413,115
As at 30 June 2018 the consolidated entity undertook an assessment for impairment as the fair value of the
investment was below its carrying value, an impairment charge of $107,754 was recorded to bring the
carrying value to its fair value of asset. This assessment was undertaken again at 30 June 2019, 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 $4,355. The fair value was determined using the quoted price of
Davenport shares at 30 June 2019 of $0.051.
The following is summarised financial information for the assets and liabilities in Davenport at 30 June 2019
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
30-Jun-19
$
30-Jun-18
$
740,102
1,962,007
(170,631)
-
2,531,478
2,742,216
1,963,343
(2,195,410)
-
2,150,149
48
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Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 11: Investment in associate (continued)
The following summarises the share of other income, loss from continuing operations and other
comprehensive income:
Other income
Loss from continuing operations
Other comprehensive income
Total comprehensive loss for the period
For the year ended
30 June 2019
$
8,354
For the year ended
30 June 2018
$
42,176
(682,788)
31,681
(651,107)
(581,480)
36,112
(545,368)
Contingent liabilities
The associate has guaranteed a rental bond for the operating premises. At 30 June 2019 the extent of
possible exposure is nil (2018: $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 was
released in the financial year.
Commitments
Lease of office premises for three year term and a lease of a business centre for a one year term were expired
during this financial year. The associate no longer has commitments.
Exploration expenditure
Payable within one year
Operating leases
Payable within one year
Payable in one to five years
Note 12: Financial assets
2019
$
-
-
-
-
-
2018
$
89,650
89,650
25,724
-
25,724
30-Jun-19
$
30-Jun-18
$
Investment - available for sale financial
assets
Investment – fair value through P&L
Reconciliation of movement for the period:
Opening Balance
Sale
Gain/(Loss) on increase/(decline) in fair
value at the end of the period
49
-
399,374
399,374
687,990
(51,700)
(236,916)
399,374
687,990
-
687,990
541,609
-
146,381
687,990
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 12: Financial assets (continued)
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. During the current financial year ended 30 June 2019,
the Consolidated entity disposed 550,000 shares and has recognised a gain on sale of $147. The
Consolidated entity also has recognised a loss of $236,917 resulting from the decrease in the fair value of
the financial assets.
Financial assets relate to shares in a listed group. The Company plans to dispose these assets in the near
future and is therefore classified as fair value through profit and loss.
Fair value of the financial assets at 30 June 2019 and 30 June 2018 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 13: Plant and equipment
Office 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
30-Jun-19
$
30-Jun-18
$
31,510
(16,580)
14,930
70,275
(68,065)
2,210
40,340
(40,340)
-
8,644
(3,872)
4,772
21,912
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
Year ended 30 June 2018
Opening net carrying value
Additions
Depreciation charge for the year
Closing net carrying value
Year ended 30 June 2019
Opening net carrying value
Additions
Depreciation charge for the year
Closing net carrying value
Office
Equipment
$
Plant &
Equipment
$
Computer
Software
$
Furniture
Fixtures
$
Total
$
7,110
12,304
(3,133)
16,281
16,281
3,463
(4,814)
14,930
20,017
909
(4,081)
16,845
16,845
-
(14,635)
2,210
8,452
-
(2,107)
6,345
6,345
-
(6,345)
-
8,466
-
(2,110)
6,356
44,045
13,213
(11,431)
45,827
6,356
-
(1,584)
4,772
45,827
3,463
(27,378)
21,912
50
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Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 14: Trade and other payables
Current
Unsecured liabilities
Option fees payable (a)
Trade payables
30-Jun-19
$
30-Jun-18
$
-
145,769
145,769
180,000
222,071
402,071
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. The amount was fully settled during the final year.
Note 15: Provisions
Employee benefits – current liability
Note 16: Contributed equity
30-Jun-19
$
30-Jun-18
$
137,418
137,418
114,982
114,982
NOTE
No.
$
No.
$
30-Jun-19
30-Jun-18
Ordinary shares
- fully paid
Contributing shares -
partly paid
Treasury shares
16B
633,932,540
23,159,732
594,814,654
22,974,071
16C
16A
123,300,321
(24,000,000)
733,232,861
-
123,300,321
-
-
23,159,732
(24,000,000)
694,114,975
-
22,974,071
When managing capital (which is defined as the Company's total equity amounting to $2,583,212 (2018:
$4,447,496), 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.
51
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Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
16A: Movements in treasury shares are as follows:
2019
Number
2019
$
2018
Number
2018
$
At the beginning of
reporting year
(24,000,000)
Issued during the year
-
At the end of the year
(24,000,000)
-
-
-
-
(24,000,000)
(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 24,000,000 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.
16B: Movements in fully paid ordinary shares on issue of the legal parent are:
2019
Number
2018
Number
2019
$
2018
$
At the beginning of reporting year
594,814,654 359,237,974
23,309,096
21,316,846
Issue of nil shares (2018: 135,126,000 shares)
via share placements *
Issue of nil shares (2018: 52,700,000 shares) via
share purchase plan
Issue of 13,512,266 shares (2018: 23,750,680
shares) as share-based payments
Issue of nil treasury shares (2018: 24,000,000
shares) pursuant to the Controlled Placement
Facility (see note 17A)
- 135,126,000
-
52,700,000
-
-
1,351,260
527,000
13,512,266
23,750,680
90,113
260,824
-
24,000,000
-
-
Shares to be issued
Equity Raising Costs
25,605,620
-
-
-
633,932,540 594,814,654
106,631
(11,083)
23,494,757
-
(146,834)
23,309,096
Reserved shares
(3,150,000)
(3,150,000)
(335,025)
(335,025)
At the end of the reporting year
630,782,540 591,664,654
23,159,732
22,974,071
*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.
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A.C.N. 147 346 334
Notes to Financial Statements (continued)
16C: Movements in partly paid ordinary shares on issue of the legal parent are:
There was no changes in the partly paid contributing shares in this financial year.
Outstanding amount per partly paid contributing share at 30 June 2019 is $0.049 (2018: $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.
Note 17: Reserves
Share based payment reserve
Financial Asset reserve
Foreign currency translation reserve
Note
17A
17B
17C
30-Jun-19
$
30-Jun-18
$
722,726
1,036,746
67,793
1,827,265
711,643
1,142,872
36,112
1,890,627
Reconciliation of total options on issue:
Options issued
as share-based
payments (*)
Other options
issued (**)
Reserved
shares issued
Total options
on issue
As at 30 June 2017
8,546,691
14,250,000
3,150,000
25,946,691
Issued during the year
Expired during the year
As at 30 June 2018
Issued during the year
Expired during the year
As at 30 June 2019
10,000,000
(1,992,188)
16,554,503
5,000,000
(6,554,503)
15,000,000
-
-
10,000,000
-
14,250,000
50,126,000
(14,250,000)
50,126,000
-
3,150,000
-
-
3,150,000
(1,992,188)
33,954,503
55,126,000
(20,804,503)
68,276,000
Note 17A: Options
Outstanding at 1 July
Granted during the year
Expired during the year
Outstanding at 30 June
Exercisable at 30 June
2019
Number
2019
WAEP
2018
Number
2018
WAEP
30,804,503
55,126,000
(20,804,503)
65,126,000
65,126,000
$0.0538
$0.0200
$0.0650
$0.0215
$0.0215
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
* These options are issued to consultants as part of capital raising services provided. Refer to Note 18.4
for options issued
** These are free attaching options as part of capital raising. During the year 50,126,000 free attaching
options exercisable at $0.02 expiring 17 August 2020 were issued.
The weighted average remaining contractual life of share options outstanding as at 30 June 2019 was 0.68
years (2018: 2.66 years).
The average exercise price of options granted during the year was $0.02 (2018: $0.03).
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A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 17: Reserves (continued)
The range of exercise prices for options outstanding at the end of the year was $0.02 to $0.04 (2018: $0.02
to $0.07).
Reconciliation of value of share-based payment reserve
At the beginning of reporting year
Amount expensed for options issued to consultant.
5,000,000 options with exercise price of $0.02
Amount expensed for options issued to consultant.
5,000,000 options with exercise price of $0.04
Amount expensed for options issued to consultant.
5,000,000 options with exercise price of $0.02
At the end of the reporting year
Note
17.1
17.2
Jun-19
$
711,643
Jun-18
$
688,643
-
-
16,000
7,000
17.3
11,083
-
722,726
711,643
17.1 The issue of 5,000,000 $0.02 options exercisable on or before 20 September 2019 to consultant.
Please refer to Note 18 for further explanation.
17.2 The issue of 5,000,000 $0.04 options exercisable on or before 20 September 2019 to consultant.
Please refer to Note 18 for further explanation.
17.3 The issue of 5,000,000 $0.02 options exercisable on or before 17 August 2020 to consultant. Please
refer to Note 18 for further explanation.
Note 17B: Financial Asset reserve
The Financial Asset reserve represents the gains and losses of available-for-sale financial assets.
Note 17C: 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 18: 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 17.3.
Total equity based payments recorded in equity
54
Note
Jun-19
$
Jun-18
$
18.1
18.2
116,200
128,699
80,546
196,746
105,725
234,424
18.3
-
26,400
18.4
11,083
11,083
23,000
49,400
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 18: Equity based payments (continued)
18.1 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.
18.2 During the year shares were issued to consultants for the consideration of services provided.
18.3 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 a general meeting.
18.4 During the 2019 financial year, the Company issued 5,000,000 options to consultants for equity raising
services, which the fair value was recognised as part of issued capital. These options had a fair value
of $11,083 calculated using a black scholes model. The fair value of the services was considered to
be equal to the fair value of the options issued. This issue was approved by shareholders at 2018 GM.
During the 2018 financial year, the Company issued 5,000,000 class A options and 5,000,000 class B
options to consultants for equity raising services, which was recognised as part of issued capital. The
fair value of the services was considered to be equal to the fair value of the options issued. This issue
was approved by shareholders at 2017 AGM.
The fair value of the options granted for the year ended 30 June 2019 and 30 June 2018 was estimated on
the date of grant using the following assumptions and valuing using a black scholes model, the fair value of
the services provided was consider to equal the fair value determined using the black scholes model:
Number of options issued
Dividend yield (%)
Expected volatility* (%)
Risk-free interest rate (%)
Expected life (years)
Share price
Exercise price ($)
Value per option
30-Jun-19
5,000,000
Nil
75
1.5
2
$0.004
$0.02
$0.0022
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
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 19: 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-19
30-Jun-18
$
$
560,386
1,038,667
560,386
1,038,667
1,120,772
2,077,334
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
2019. These figures are adjusted at the anniversary date of each tenement and therefore the total can
change on a monthly basis.
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Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 20: Contingent liabilities
There are no contingent liabilities as at 30 June 2019 (2018: Nil).
Note 21: Related party transactions
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.
30-Jun-19
$
30-Jun-18
$
1,276
9,220
70,189
71,465
165,041
174,261
Trade and other payables to related party as at 30 June 2019 amounted to $12,219 (30 June 2018: $23,549).
All related party transactions are considered to be on an arms’ length basis.
Note 22: 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
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-19
30-Jun-18
$
$
(2,009,060)
682,788
27,380
196,746
236,917
-
-
4,355
-
(18,209)
(6,481)
(256,302)
22,436
(4,817,991)
581,480
11,431
234,424
-
2,675,000
(433,503)
107,754
(385,871)
(61,851)
15,462
193,880
29,255
Cash flows used in operating activities
(1,119,430)
(1,850,530)
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A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 23: 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%
Equity
$
Profit
$
10%
Equity
$
Total
$
Profit
$
2019
Financial Assets
Cash
Other assets
Receivables
1.25
94,477
-
-
Total Financial Assets
94,477
-
-
26,504
18,484
120,981
-127
-127
127
127
18,484
20,000
20,000
111,645
131,645
156,633
271,109
Financial Liabilities
Trade creditors
Total Financial Liabilities
-
-
-
-
145,769
145,769
145,769
145,769
Weighted
Average
Effective
Interest Rate
%
1.25
2018
Financial Assets
Cash
Other assets
Receivables
Floating
Interest
Rate
$
Fixed
Interest
Rate
$
Non
Interest
Bearing
$
Interest Rate
Risk Sensitivity
-10%
10%
Total
$
Profit
$
Equity
%
Profit
$
Equity
$
281,138
-
-
400,000
20,000
-
463,880
-
636,681
1,145,018
20,000
636,681
-1,002
-1,002
1,002
1,002
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
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A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 23: Financial risk management objectives and policies(continued)
A sensitivity of 10% (2018: 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 2019 from around 1.25% to 1.13% (2018: 1.25% to 1.13%) representing a 12.0
basis points (2018: 12.0 basis points), which is 8.5 basis points (2018: 8.5 basis points) net of tax.
Based on the sensitivity analysis only interest revenue from variable rate deposits and cash balances is
impacted resulting in a decrease or increase in overall income.
Liquidity Risk
(a)
The Company manages liquidity risk by maintaining sufficient cash reserves and marketable securities
required to meet the current exploration and administration commitments, through the continuous monitoring
of actual cash flows.
All payables are due within 30 days, which is consistent with the prior year.
Fair Values
(b)
For financial assets and liabilities, the net fair value approximates their carrying value. No financial assets
and financial liabilities are readily traded on organised markets in standardised form except for financial
assets fair value through profit or loss which are valued at market value as traded on the ASX and are
considered to be level 1 in the fair value hierarchy.
(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. The Group’s
other receivables relate to a R&D claim from the ATO, which was subsequently collected in full and therefore
carries insignificant expected credit loss.
Cash is maintained with National Australia Bank, an AA S&P rated bank and therefore carries insignificant
expected credit loss.
(d) Equity price risk
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 financial assets fair value through profit or loss was
$399,374.
An increase/(decrease) of 10% on the share price could have a positive/(negative) impact of approximately
$39,937 on the income of the Group.
Note 24: 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.
58
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Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 24: Controlled entities (continued)
Name
Country of
Incorporation
Dandaragan Trough Holdings Pty Ltd
K-Max Pty Ltd
East Exploration Holdings Pty Ltd
Australia
Australia
Australia
Percentage
Interest Held %
2019
100%
100%
100%
2018
100%
100%
100%
Principal
activities
Dormant
Dormant
Dormant
As at 30 June 2019, there are no commitment or contingent liabilities in respect of the controlled entities.
Note 25: Parent entity disclosure
Assets
Current assets
Non current assets
Total Assets
Liabilities
Current liabilities
Non current liabilities
Total Liabilities
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-19
Parent
30-Jun-18
251,110
941,285
1,192,395
283,187
-
283,187
1,317,617
1,233,817
2,551,434
517,053
-
517,053
909,208
2,034,381
23,159,732
722,726
(22,973,250)
22,974,071
817,769
(21,757,459)
909,208
2,034,381
Parent
30-Jun-19
Parent
30-Jun-18
(1,321,917)
-
(1,321,917)
(4,907,876)
106,126
(4,801,750)
The commitments and contingencies and commitments of the parent entity are the same as those for the
consolidated entity.
Note 26: Subsequent events
On 23 July 2019, the Company issued 25,605,620 fully paid ordinary shares to the directors and senior
management under remuneration sacrifice share plan.
On 5 August 2019, the Company announced a transaction to acquire Consolidated Potash Corporation Ltd
(CPC). This transaction includes the issue of 480 million fully paid ordinary shares, 123 million partly paid
shares, a capital raising of $450,000 and transfer of 10 million Davenport Resources Limited shares. This
transaction has been approved by shareholders at EGM held on 13 September 2019.
59
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Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 26: Subsequent events (continued)
On 27 August 2019, the Company announced the completion of $450,000 capital raising before costs via
s708 placement. The capital raising consists of the issuance of 90,000,000 fully paid ordinary shares at an
issue price of $0.005.
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.
60
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Parkway Minerals NL
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 26 to 60 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 2019
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 2019.
This declaration is made in accordance with a resolution of the directors.
Patrick McManus
Managing Director
Perth
Dated: 26 September 2019
61
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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
2019, 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 2019
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. Except for the matter described in the Material
Uncertainty Related to Going Concern section of our report, we have determined that there are no other
key audit matters to be communicated in our report.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
MH:DA:PARKWAY:007
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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 2019 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.
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.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
MH:DA:PARKWAY:007
For personal use only
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.
Report on the Audit of the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors' report for the year ended 30 June
2019.
In our opinion, the Remuneration Report of Parkway Minerals NL for the year ended 30 June 2019,
complies with section 300A of the Corporations Act 2001.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
MH:DA:PARKWAY:007
For personal use only
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
26 September 2019
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
MH:DA:PARKWAY:007
For personal use only
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 2019
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
180
133
619
467
218
425
221
588
173
Total number of holders of securities
Total number of securities
1,513
1,214,906,085
1,625
245,158,677
Table 2
Top twenty shareholders as at 20 September 2019
Shareholder
No. Shares
Percentage
1 LIONS BAY CAPITAL INC
2 ACTIVATED LOGIC PTY LTD
3 CITICORP NOMINEES PTY LIMITED
4 HORN RESOURCES PTY LTD
5 RHODES MINING LIMITED
6 MR PATRICK BERNARD DAVID MCMANUS + MRS VIVIENNE
EDWINA MCMANUS
7 ACUITY CAPITAL INVESTMENT MANAGEMENT PTY LTD
8 HENADOME PTY LTD
9 KEO PROJECTS PTY LTD
10 MR PHILIP ANTHONY FEITELSON
11 MR XUAN KHOA PHAM
12 KALINA POWER LIMITED
13 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
14 OULANGE TRADE LIMITED
15 WAH LEN ENTERPRISE SDN BHD
16 QUERION PTY LTD
17 YAP THAI CHOY
18 PAGONDAS PTY LTD
19 MR GUY BANDUCCI + MRS LISA MAREE BANDUCCI
223,094,414
203,920,534
52,797,583
37,234,500
33,833,562
31,905,819
26,524,453
22,500,000
22,200,000
21,915,000
19,000,000
18,581,062
18,258,806
18,000,000
16,666,666
13,000,000
12,000,000
10,000,000
9,500,000
20 LAWRENCE CROWE CONSULTING PTY LTD
18.36
16.78
4.35
3.06
2.78
2.63
2.18
1.85
1.83
1.80
1.56
1.53
1.50
1.48
1.37
1.07
0.99
0.82
0.78
0.70
819,432,399
67.45
66
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
Shareholder Information (continued)
Table 3
Top twenty partly paid shareholders as at 20 September 2019
Shareholder
No. Shares
Percentage
CITICORP NOMINEES PTY LIMITED
1 LIONS BAY CAPITAL INC
2 ACTIVATED LOGIC PTY LTD
3
4 RHODES MINING LIMITED
5 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
6
7 WAH LEN ENTERPRISE SDN BHD
8 MRS ANJANA NANDHA
9 QUERION PTY LTD
KALINA POWER LIMITED
10 MR PHILIP ANTHONY FEITELSON
11 YAP THAI CHOY
12 MR ADRIAN CHRISTOPHER GRIFFIN
13 MR JOHN STEPHEN BLADON MILLWARD
14 TORBINUP RESOURCES PTY LTD
15 MR STEVEN VARGA
16 MR MOHAN SINGH NANDHA
17 MR BRUCE MCGOWAN HORWOOD
18 MR ROBERT PETER VAN DER LAAN
19 MR ADRIAN CHRISTOPHER GRIFFIN
20 MR DANIAN JOSEPH PEKIN
Table 4
Substantial shareholders as at 20 September 2018
Shareholder
Lions Bay Capital Inc
Activated Logic Pty Limited
Voting Rights
54,534,253
52,424,060
9,574,720
8,697,960
5,398,763
4,776,835
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
2,391,207
2,070,066
1,800,045
1,767,998
1,750,000
172,511,614
22.24
21.38
3.91
3.55
2.20
1.95
1.70
1.43
1.27
1.22
1.22
1.11
1.09
1.08
1.02
0.98
0.84
0.73
0.72
0.71
70.37
No. of shares Percentage
18.36%
16.78%
223,094,414
203,920,534
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
Options exercisable at $0.02 on or before 17 August 2020
Holders of more than 20% of this class
No. Options
55,126,000
2
67
For personal use only
Parkway Minerals NL
A.C.N. 147 346 334
Tenement Register
Tenements (Australia) as at 20 September 2018
Tenements Name
Project
Holder
Details
Dinner Hill
E70/3987
Parkway Minerals NL
Jam Hill
E70/4137
Parkway Minerals NL
Dandaragan
E70/4609
Parkway Minerals NL
Dandaragan
E70/5102
Parkway Minerals NL
Lake Seabrook
E77/2529
Parkway Minerals NL
Lake Seabrook
E77/2532
Parkway Minerals NL
Lake Seabrook
E77/2533
Parkway Minerals NL
Lake Seabrook
E77/2537
Parkway Minerals NL
Lake Seabrook
E77/2563
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
100% Mineral Rights for
Potash
100% Mineral Rights for
Potash
68
For personal use only