Peel Mining Limited Annual Report 2016

FY2016 Annual Report · Peel Mining Limited
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ACN 119 343 734

2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007

www.peelmining.com.au 

Annual Report 2016

Corporate Directory

Directors
Simon Hadﬁeld Non-executive Chairman
Rob Tyson Managing Director
Graham Hardie Non-executive Director

Company Secretary
Ryan Woodhouse

Registered Office
Unit 1, 34 Kings Park Road 
WEST PERTH WA 6005
Telephone: +61 8 9382 3955
Email: info@peelmining.com.au

Stock Exchange Listing
Securities of Peel Mining Limited are listed on the 
Australian Securities Exchange (ASX)
ASX Code: PEX

ACN
119 343 734

Share Registry
Link Market Services Limited
Level 4 
152 St Georges Tce 
PERTH WA 6000
Telephone: +61 1300 554 474
Facsimile: +61 8 9287 0303
www.linkmarketservices.com

Auditors
PricewaterhouseCoopers
Level 15
125 St Georges Terrace 
PERTH WA 6000

Website
www.peelmining.com.au

Contents

Chairman’s report 
Review of operations 
Schedule of tenements 
Directors’ report 
Consolidated statement of proﬁt and loss and other 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 
Auditor’s independence declaration 
Independent auditor’s report 
Additional ASX information   
Shareholder information 

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PEEL MINING LIMITED ANNUAL REPORT 2016

Chairman’s Report 

Dear Fellow Shareholders

In the past 12 months Peel Mining Limited has continued to enjoy success at its projects near Cobar in New South Wales. 
The Company now has the largest land holding in this proven mineral district and has continued to make new high grade 
discoveries within a 50km radius of its ﬂagship Mallee Bull copper project, about 100km south of Cobar.

Recent drilling at Mallee Bull has discovered a new high-grade copper-rich lens about 300 metres north of the main 
ore body, enhancing the similarities between Mallee Bull and the rich CSA copper mine at Cobar. Mallee Bull is a joint 
venture between Peel and CBH Resources Limited, a wholly owned subsidiary of Toho Zinc of Japan. It is hoped that 
continued investigation of this project in the current year will lead to a signiﬁcant increase in the current inferred resource 
of 3.9 million tonnes at 2.7 per cent copper equivalent.

Drilling at the Company’s Wirlong project, about 30km north of Mallee Bull, has also seen the discovery of broad copper 
intersections including very high grade mineralisation. Wirlong bears the hallmarks of a Cobar-style system and is part of 
the Cobar Superbasin Project. Exploration at Wirlong is being funded by a $7 million 50 per cent farm-in to Peel’s Cobar 
Superbasin Project by Japan Oil, Gas and Metals National Corporation (JOGMEC), which is a state-owned enterprise of 
the Government of Japan. Drilling at Wirlong is expected to recommence in the near-term with the aim of expanding the 
scale of the mineralised system.

During the year the Company purchased several new tenements in the Cobar Basin, including the Wagga Tank prospect, 
about 50km southwest of Mallee Bull. Historical drilling at Wagga Tank in the 1970s and 80s returned high grade base and 
precious metals intersections. No drilling has occurred since 1989 despite mineralisation remaining open along strike and 
at depth. Your Company has high hopes for this project and drilling is expected to start soon. 

Peel has now identiﬁed many highly prospective targets within the area surrounding Mallee Bull and is working hard 
towards its goal of building a camp of high-grade base and precious metals deposits in this southern part of the 
Cobar Basin.

Exploration has also continued at the Company’s 100 per cent owned Apollo Hill gold project near Leonora in Western 
Australia. Step-out drilling to the southeast of the existing mineral resource has shown that high grade mineralisation 
remains present, and continues to be open along strike and down dip, offering excellent potential to increase the 
scale of the deposit. New metallurgical testwork has also underlined the excellent metallurgical characteristics of 
Apollo Hill mineralisation.

Subsequent to the year’s end, the Company completed a capital raising of approximately $3 million which together with 
cash on hand, positions the Company well to pursue its strategic objectives in the Cobar Basin.

On behalf of all shareholders, I would like to thank Peel’s ﬁrst-rate team for the excellent results achieved in the last year 
and their outstanding efforts in positioning the Company for future success.

Yours Sincerely,

Simon Hadﬁeld 
Chairman
29th September 2016

PEEL MINING LIMITED ANNUAL REPORT 2016

1

Review of Operations

Company Assets Background

At September 2016, Peel held four key mineral projects comprising granted exploration licences and licences 
under application.

•  Gilgunnia (EL7461 and ML1361) is in a 50:50 joint venture with CBH Resources Limited, a wholly-owned subsidiary 
of Tokyo Stock Exchange-listed Toho Zinc, and contains the Mallee Bull copper-polymetallic discovery and the 
May Day polymetallic deposit. The tenure also hosts the historic Gilgunnia and 4-Mile goldﬁelds. A maiden resource 
estimate at Mallee Bull was completed in May 2014, and drilling has since focused on extending the known areas 
of mineralisation. 

•  Cobar Superbasin Project (CSP) is a package of granted tenements covering more than 2,100km2 of prospective 

stratigraphy within the Cobar Basin. The tenements are considered prospective for Cobar-style and VHMS 
polymetallic deposits. The package includes EL8307 located north of Mallee Bull, which contains the new copper-
polymetallic discovery at the Wirlong prospect, along with the Sandy Creek and Red Shaft prospects. The tenure is 
covered by a farm-in agreement with Japan Oil, Gas and Metals National Corporation (JOGMEC) which was executed 
in November 2014. JOGMEC can earn up to 50% of certain tenements by funding up to $7 million of exploration 
expenditure.

•  Wagga Tank/Mount View Projects, also in the Cobar Basin, comprise of four newly acquired licences with notable 
prospects including the namesake Wagga Tank polymetallic deposit, Siegal’s Shaft/MD-2, Boolahbone and the 
May Day Tails anomaly.

•  Apollo Hill Project contains two signiﬁcant gold deposits – Apollo Hill and the Ra Zone – for an inferred resource 

estimate of 505,000 oz gold. These deposits exhibit the hallmarks of a major mineralised Archean system, showing 
extensive hydrothermal alteration and deformation. Drilling has continued with the aim of updating the resource model 
at Apollo Hill with an increase in contained ounces and strengthening the potential for future economic extraction. 
Broader regional exploration over Peel’s WA tenure has also identiﬁed numerous additional areas of interest away from 

the main deposit.

Details on assets

Gilgunnia/Mallee Bull Project

The Gilgunnia/Mallee Bull project, located about 100km south of Cobar in western NSW, contains the Mallee Bull 
copper-polymetallic discovery, the May Day polymetallic deposit and the historic Gilgunnia and 4-Mile goldﬁelds. Peel and 
CBH Resources Limited are in a 50:50 Joint Venture over the project tenements EL7461 and ML1361.

Mallee Bull is interpreted to be located in a favourable geological and structural position; it is situated in the suitably 
high-stress environment of the “nose” of an anticline, and occurs in a geological sequence of turbidite and volcaniclastic 
sediments which are thought to be age equivalent to the Chesney and Great Cobar Slate Formations found in the 
immediate Cobar region. Mineralisation occurs either as massive sulphide or breccia/stringer styles within a package of 
brecciated volcaniclastic and turbidite sediments comprising siltstones and mudstone, and is interpreted to occur as a 
shoot-like structure dipping moderately to the west.

Mallee Bull Discovery

In late 2010, an airborne electromagnetic geophysical survey (VTEM) was ﬂown over the May Day and 4-Mile/Butchers 
Dog areas, resulting in the recognition of a coincident late time conducting anomaly and magnetic high. The Mallee Bull 
anomaly is proximal to the historic 4-Mile goldﬁeld area; a series of surface and underground gold workings located 
about 10km east of the May Day deposit. A subsequent ground-based geophysical (ﬁxed-loop TEM) survey conﬁrmed 
the existence of a moderate-strong conductor and in March 2010, a programme of three RC drillholes for a total of 
663m targeting the geophysical anomaly was completed. This drilling resulted in the discovery of strongly anomalous 
polymetallic (gold-silver-copper-lead-zinc) mineralisation in all three drillholes.

Systematic exploration followed involving several rounds of additional drilling (4 more RC drillholes plus a diamond tail) 
and several down-hole geophysical (DHEM) surveys. This work culminated in discovery drill hole 4MRC007 intersecting 
multiple zones of strong copper-dominated polymetallic mineralisation including massive sulphides. In late August 2011, 

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PEEL MINING LIMITED ANNUAL REPORT 2016

Review of Operations

Peel announced that drill hole 4MRCDD006 intersected a 10m zone of massive sulphide averaging more than 20% 
combined lead-zinc plus silver-gold, and a 6.65m semi-massive zone averaging better than 3% copper plus silver-gold. 
Mineralisation included chalcopyrite, sphalerite, galena, pyrrhotite, pyrite, and arsenopyrite.

CBH Resources Farm-in

In May 2012, Peel and CBH Resources Limited (a wholly owned subsidiary of Toho Zinc Co Ltd.) signed a binding Heads 
of Agreement related to EL7461 and ML1361, which includes the Mallee Bull deposit. Under the agreement, CBH had 
the right to earn an interest of up to 50% over a three-year period via staged $8.33 million expenditure on exploration 
and contribution to previous exploration costs incurred by Peel. In March 2014, CBH Resources completed its ﬁnal 
Farm-in payment in relation to the agreement, and consequently has earned an undivided 50% interest in the project; 
a 50:50 Joint Venture has now been formed.

Following CBH’s election to farm-in to Mallee Bull, six drilling programs have been completed for a total 39,874m and a 
seventh is currently underway. The programs continued to conﬁrm signiﬁcant mineralisation along strike, at depth and also 
near surface. Stage 3 of the farm-in, which was completed from August 2013 to March 2014 saw mineralisation at Mallee 
Bull extended to more than 800m below surface.

Mallee Bull Mineral Resource Estimate

In May 2014, a maiden Mineral Resource estimate for the Mallee Bull copper-silver-gold deposit returned a high-grade 
result, as expected, with approximately 90,000 tonnes of contained copper, 4 million ounces contained silver and 
43,000 ounces contained gold (at a 1% copper equivalent cut-off) (see Table 1). This Mineral Resource estimate 
comprises 3.9 million tonnes at 2.3% copper, 32 g/t silver and 0.3 g/t Au. The Mineral Resource estimate is reported in 
accordance with the guidelines of the JORC Code (2012 edition) – see ASX announcement dated 27 May 2014:

CUT 
OFF 
CUEQ 
%

GRADE

CONTAINED METAL

CATEGORY

KT

CUEQ

CU %

AG G/T

AU G/T

CUEQ KT

CU KT

AG KOZ

AU KOZ

Indicated

0.0

Inferred

Total

Indicated

1.0

Inferred

Total

Indicated

1.4

Inferred

Total

Indicated

1.8

Inferred

Total

640

3,300

3,940

620

3,300

3,920

580

3,100

3,680

450

2,600

3,050

2.18

2.7

2.6

2.22

2.8

2.7

2.28

2.8

2.7

2.46

3.1

3.0

1.7

2.3

2.2

1.73

2.4

2.3

1.78

2.4

2.3

1.92

2.7

2.6

28.6

0.53

32

31

29

32

32

0.3

0.3

0.54

0.3

0.3

29.6

0.57

33

32

0.3

0.3

30.5

0.65

36

35

0.3

0.4

14

90

103

14

93

107

13

87

101

11

82

93

10.9

76

87

10.7

79

90

10.3

74

85

8.6

70

79

588

3,395

3,984

578

3,395

3,973

552

3,289

3,841

441

3,009

3,451

TABLE 1: MALLEE BULL MINERAL RESOURCE ESTIMATE

11

32

43

11

32

43

11

30

41

9

25

34

Recent Activity

The mineral resource estimate formed the basis of an in-house scoping study, which amongst other things, highlighted the 
beneﬁts of increasing the scale of Mallee Bull. To this end, further activities and investigations at Mallee Bull have focused 
on this aim.

In early 2015, a 3D DC-IP-MT survey was completed, identifying numerous anomalies including the T1 area. Deﬁned by a 
very strong chargeable and low resistivity response, T1 is located about 150m below surface and up-dip to the northeast 
of Mallee Bull. RC drilling of the target encountered extremely high grade Zn-Pb-Ag-Au mineralisation, including 7m @ 
21.39% Zn, 12.74% Pb, 203 g/t Ag, 0.58 g/t Au from 71m in MBRC028 and 12m @ 20.30% Zn, 14.81% Pb, 308 g/t Ag, 
1.59 g/t Au from 83m in MBRC024.

PEEL MINING LIMITED ANNUAL REPORT 2016

3

Review of Operations

It should be noted that substantial zinc-lead mineralisation has previously been intersected at Mallee Bull, most notably 
on the northern end of the current resource model, where it extends more than 500m below surface, and remains open. 
Zinc-lead mineralisation remains to be formerly quantiﬁed.

Further RC drilling at T1 was completed this reporting period to test the strike potential of the IP chargeability anomaly. 
Results from drillholes MBRC036 to MBRC048 generally returned low grade mineralisation with a best result of 
18m @ 3.72% Zn, 1.75% Pb, 20 g/t Ag, 0.38 g/t Au from 103m including 1m @ 24.3% Zn, 11.8% Pb, 198 g/t Ag, 1.0 g/t Au 
from 107m in MBRC037. This interval is located ~140m south of the previously intercepted high grade zinc-lead rich 
mineralisation, and extensional and closer-spaced drilling is anticipated as follow-up.

The area north of the Mallee Bull resource was also the focus of RC and diamond drilling, with drillholes completed at the 
end of 2015 as part of CBH JV Program 6 intercepting multiple new intervals of chalcopyrite-pyrrhotite stringer/breccia 
style mineralisation and increasing the strike of copper mineralisation to the north. Encouragingly, an RC drillhole from 
this program MBRC052 located on the northern edge of the Mallee Bull resource and beneath the T1 mineralised zone 
returned a 4m intercept @ 1.52% Cu, 111 g/t Ag, 0.21 g/t Au, 2.52% Pb, 4.2% Zn from 197m. Other extensional intercepts 

are outlined below:

•  MBRCDD049, located ~120m further north than previous deep drilling, encountered 5m @ 1.01% Cu, 12 g/t Ag from 
371m, 2m @ 1.91% Cu, 23 g/t Ag, 0.25 g/t Au from 392m and 3m @ 2.42% Cu, 74 g/t Ag, 0.29 g/t Au, 0.87% Pb, 
0.22% Zn from 403m.

•  MBRCDD050, located ~80m further north than previous drilling, intersected a very broad 62m (~40m true width) interval 

averaging @ 3.15% Cu, 42 g/t Ag, 0.28 g/t Au from 465m, including 34m (~22m true width) @ 4.6% Cu, 63 g/t Ag, 
0.44 g/t Au from 475m; signiﬁcantly wider that the 3m footwall stringer interval previously modelled for this area.

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PEEL MINING LIMITED ANNUAL REPORT 2016

FIGURE 1: MALLEE BULL DRILL PLAN

Review of Operations

•  MBRCDD050W1, targeting ~80m down-dip of MBRCDD050, intersected a 13m zone at 0.86% Cu, 33 g/t Ag, 

1.39 g/t Au, 0.34% Pb, 0.68% Zn from 407m. 

•  MBRCDD051, approx 100m east of MBRCDD050, encountered multiple strong intervals of stringer/breccia 

mineralisation similar to that in drillholes MBRCDD049 and MBRCDD050 from ~375m down hole. Intercepts include 
5m @ 2.1% Cu, 59 g/t Ag, 0.72 g/t Au from 385m, 4m @ 1.18% Cu, 23 g/t Ag, 0.12 g/t Au from 398m, 4m @ 1.87% Cu, 
18 g/t Ag, 0.87% Pb, 0.22% Zn from 403m.

•  MBDD026/026W1, drilled about 40m north of MBRCDD050, intercepted minor stringer mineralisation from ~419m 

including 2m @ 2.33% Cu, 46 g/t Ag, 0.62 g/t Au from 422m.

Review of historic DHEM surveys at Mallee Bull has since led to the discovery of new copper mineralisation still further 
to the north. The current drill program (CBH JV Program 7) was instigated to target an off-hole anomaly centred ~300m 
north of the main Mallee Bull deposit. Drill testing of the conductor commenced with RC drillholes MBRC054 and 
MBRC055, with signiﬁcant intervals including 7m @ 2.01% Cu, 37 g/t Ag, 0.15 g/t Au from 324m in MBRC054 and 9m 
@ 2.24% Cu, 27 g/t Ag, 0.27 g/t Au from 455m in MBRC055 (~80m north of MBRC054). Assays from the additional 6 
drillholes that have been completed remain pending. Mineralisation intersected to date comprises stringer/breccia style 
quartz-sulphide (chalcopyrite-pyrrhotite) mineralisation, and remains open along strike and down dip. The true width of 
mineralisation is thought to be ~60% of the downhole intervals.

May Day

May Day was discovered in 1898 and was initially developed as an underground copper-lead-silver mine. Exploration in 
the 1970s identiﬁed high grade gold-base metal mineralisation to a depth of about 250m below surface. Exploration in 
the late 1980s deﬁned a shallow gold resource, which eventually led to the development in 1996 of a small-scale mining 
operation comprising an open pit with a heap leach gold circuit. 

Since acquisition in late 2009, Peel has completed multiple phases of exploration involving: an initial due diligence site visit 
inclusive of geological mapping and rock chip sampling; geophysical surveys comprising gravity and Induced Polarisation; 
remodelling of airborne magnetic data; laser scanning and survey pick-up of the open pit and historic drillholes; an 
RC drilling programme; early-warning metallurgical testwork; and a helicopter-borne geophysical survey (VTEM).

RC drilling in 2010 conﬁrmed down dip extensions of mineralisation and that mineralisation is shear-related, occurring 
as a sub-vertical lense/shoot. Mineralisation occurs at or near the interbedded contact of a ﬁne-grained sedimentary 
hangingwall and a porphyritic volcanic footwall, is associated with silica/talc alteration, and includes disseminated through 
to massive sphalerite-galena-pyrite-pyrrhotite-chalcopyrite sulphides.

Developments at the nearby Mallee Bull prospect add signiﬁcant value to the Gilgunnia/Mallee Bull Project and support 
the prospectivity of the May Day deposit. Further work at May Day will involve a deep drilling programme targeting the 
magnetic anomaly at depth. No work was completed at the prospect in the current year.

Cobar Superbasin Project

Work on the Cobar Superbasin Project continued under the farm-in agreement with Japan Oil, Gas and Metals National 
Corporation (JOGMEC); JOGMEC may earn up to 50% interest in the project by funding up to $7 million of exploration 
expenditure. Stage 1 expenditure was practically completed by year end and included diamond and RC drilling, focusing 
predominantly on the Wirlong prospect.

Wirlong

The Wirlong prospect is located within EL8307, approximately 20km west of Nymagee and 70km south-southeast of 
Cobar. It is deﬁned by historic copper workings, a topographic high, a >2km surface multi-element geochemical anomaly, 
and coincident or semi-coincident geophysical anomalies including magnetic, radiometric, gravity, IP and electromagnetic. 
Early stage exploration drill results testing the geochemical anomaly returned signiﬁcant mineralised intervals including 
4m @ 3.04% Cu, 12 g/t Ag, 0.19% Zn from 196m in WLRC005, 2m @ 2.99% Cu, 1.08 g/t Au, 16 g/t Ag, 0.41% Zn from 
322m in WLRC006, and 2m @ 2.30% Zn, 0.81% Pb, 4 g/t Ag from 139m in WLRC007.

PEEL MINING LIMITED ANNUAL REPORT 2016

5

Review of Operations

Recent Activity 

RAB, RC and diamond drilling completed at Wirlong this reporting period (Phases 2 and 3 of the JOGMEC JV) continued 
to return strong base metals mineralisation with results conﬁrming a new high-grade copper discovery, indicating that the 
prospect represents a very large, mineralised hydrothermal system with a strike length of more than 2.5km. 

Phase 2 commenced with drillholes WLRC008 and WLRC009 to test beneath the historic workings and anomalous 
surface geochemistry. Both drillholes intercepted broad zones of highly anomalous copper-lead-zinc-silver mineralisation 
from near surface with best intervals including 5m @ 1.64% Zn, 0.82% Pb, 2 g/t Ag from 93m and 1m @ 6.44% Zn, 
3.81% Pb, 0.54% Cu, 18 g/t Ag from 113m in WLRC008, and 19m @ 2.44% Zn, 0.39% Pb, 4 g/t Ag from 103m 
(incl. 3m @ 6.90% Zn, 0.88% Pb, 12 g/t Ag from 120m) in WLRC009.

Subsequent Phase 2 drilling comprised a further 41 RAB drillholes and 14 RC/diamond drillholes, following-up the 
previous high grade intercepts and testing multiple other targets identiﬁed from geophysical and geochemical data. 
WLRCDD015, drilled to target the northern end of Wirlong’s multi-element geochemical anomaly along with gravity, 
IP, chargeability and magnetic anomalies, returned intercepts such as 4.9m @ 4.3% Cu, 13 g/t Ag from 402.1m 
(incl. 0.9m @ 19.5% Cu, 58 g/t Ag from 402.1m) and 22m @ 1.0% Cu, 4 g/t Ag from 332m. Follow-up diamond drillhole 
WLDD001 also returned multiple signiﬁcant mineralised zones including 9m @ 8.0% Cu, 17 g/t Ag, 0.21 g/t Au from 616m 
(incl. 2.82m @ 21.85% Cu, 46 g/t Ag, 0.62 g/t Au from 619.68m) and 38m @ 1.18% Cu, 4 g/t Ag from 450m.

Phase 3 comprised 8 drillholes for 3,691.6m, starting with the RC extension of drillhole WLRC008 to target an off-hole 
DHEM anomaly. Whilst minor chalcopyrite and sphalerite were noted in the drill chips, results were not signiﬁcant. 
Successive drillholes proved to be more fruitful, with encountered mineralisation in general comprising chalcopyrite+/-
pyrrhotite+/-sphalerite+/-galena+/-pyrite and occurring as sulphide disseminations, veins and veinlets, and breccia 
within occasionally sheared/deformed and altered (silica-chlorite-sericite) turbidite sediments and/or felsic volcanics 
(rhyolite/rhyodacite).

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PEEL MINING LIMITED ANNUAL REPORT 2016

Review of Operations

FIGURE 2: PEEL MINING COBAR SUPERBASIN TENURE

PEEL MINING LIMITED ANNUAL REPORT 2016

7

Review of Operations

FIGURE 3: WIRLONG PROSPECT DRILL PLAN

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PEEL MINING LIMITED ANNUAL REPORT 2016

Review of Operations

•  WLRC022 (403m) was drilled to target the northern end of an anomaly identiﬁed from a detailed gravity survey, which 
was completed in September 2015 over and between the Wirlong and Red Shaft prospects. Signiﬁcant intercepts 
include 1m @ 0.35% Cu, 1.30% Pb, 0.76% Zn, 29 g/t Ag from 172m and 1m @ 0.46% Pb, 0.95% Zn from 366m. 
The drillhole was interpreted to have passed above the gravity body deemed responsible for the anomaly.

•  WLRCDD023 (588.1m) was drilled to test the Wirlong magnetic and geochemical anomalies from the western side 
of the Wirlong ridge line. Signiﬁcant intercepts include 1m @ 0.45% Cu, 1.41% Pb, 0.95% Zn, 37 g/t Ag from 343m, 
2m @ 0.79% Cu from 347m, 2m @ 0.57% Cu from 387m, 1m @ 0.67% Cu from 395m and 1m @ 0.38% Pb, 0.80% Zn 
from 420m.

•  WLRCDD024 (858.4m) was drilled to test along strike to the north of WLRCDD015 and its gravity/magnetic 

target. The drillhole encountered multiple intercepts of strong copper and zinc mineralisation, with sericite and 
chlorite alteration observed throughout. Signiﬁcant intercepts include 121m @ 0.73% Cu, 3 g/t Ag from 207m 
(including 26m @ 1.21% Cu, 5 g/t Ag from 227m, 5m @ 1.14% Cu, 3 g/t Ag from 260m, 2m @ 1.24% Cu, 5 g/t Ag from 
278m, 10m @ 1.01% Cu, 4 g/t Ag from 288m), 1m @ 4.81% Cu, 10 g/t Ag from 556m, 2m @ 2.23% Cu from 617m. 
Encouragingly, mineralisation remains open at depth, with an intercept of 0.4m @ 3.01% Zn from 858m to EOH.

•  WLRC026 (277m) was drilled to test up-dip of WLRCDD015, with intercepts including 2m @ 3.80% Cu, 10.5 g/t Ag 

from 36m, 1m @ 1.31% Cu from 71m, 2m @ 0.80% Cu from 74m, 2m @ 0.96% Cu from 243m, 1m @ 1.46% Cu from 
249m and 9m @ 1.27% Cu from 255m. 

•  WLRCDD027 (598.7m) was drilled to test along strike to the north of WLRCDD024. Signiﬁcant copper 

mineralisation was again encountered, with better intercepts including 2m @ 0.64% Cu from 57m, 2m @ 1.14% 
Cu from 62m, 2m @ 0.86% Cu from 66m, 2m @ 0.96% Cu from 71m, 2m @ 2.06% Cu, 20 g/t Ag from 106m, 
1m @ 1.13% Cu from 244m.

•  WLRCDD028 (594.4m) was drilled to test along strike to the south of WLRCDD015 and its gravity/magnetic target. 

Strong copper and zinc mineralisation was encountered in multiple intervals, with results including 90m @ 0.68% 
Cu, 3 g/t Ag from 412m (including 9m @ 1.29% Cu, 7 g/t Ag from 412m and 19m @ 1.36% Cu, 6 g/t Ag from 432m), 
3m @ 0.70% Zn from 509m, 1m @ 0.57% Pb, 6.96% Zn from 546m and 1m @ 0.95% Zn from 592m.

Mineralisation at Wirlong remains open up and down dip, and along strike; future activities will focus on extending the 
known mineralised zones and targeting potential higher grade structures. 

Sandy Creek

The Sandy Creek prospect is located approximately 12km SSW of the Wirlong prospect and is directly along strike from 
the stratigraphic contact intersected at the Mallee Bull deposit, occupying the same geological unit; a north-south trending 
belt of sandstone and siltstone of the Shume Formation. A coincident IP anomaly and discrete magnetic low identiﬁed in 
the area was the target for historic drillhole SCDD001 drilled in 2002 by Pasminco. Down-hole EM identiﬁed a very strong 
off-hole conductor 50m below and slightly north of SCDD01; this conductor was the target of drillhole SCDD002 drilled in 
2003 which returned 10.2m @ 1.6% Cu, 7.4% Pb, 68 g/t Ag from 521.8m.

Follow-up drilling by Peel encountered several broad zones of mineralisation and alteration, including a 19m zone of 
variable pyrrhotite-dominant sulphides containing a 4m interval averaging 9.63% Pb, 1.1% Zn, 0.50% Cu, 48 g/t Ag from 
493m in PSCDD001, and 1m intervals in hole PSCDD002 of 9.16% Pb, 5.36% Zn, 1.48% Cu, 82.3 g/t Ag from 499m and 
3.65% Pb, 6.91% Zn, 25.4 g/t Ag from 502m.

Activities this reporting period comprised of RAB and RC drilling both at the main prospect area and an additional target 
identiﬁed approximately 5km north named ‘Valvoline’. At the main prospect, 24 RAB drillholes (PSCRAB080 – 104) were 
drilled to the south of the Sandy Creek mineralisation to evaluate the extensional potential and test a chargeability anomaly 
associated with a gravity high. Approximately 1km to the SW, another IP chargeability anomaly located along strike from 
the former was also tested with 29 RAB drillholes. Whilst results were generally low, several intervals of lead and zinc 
mineralisation were returned, with better intercepts including 1m @ 0.29% Pb from 28m in PSCRAB097, 6m @ 0.22% Pb 
from 38m (incl. 1m @ 0.49% Pb from 40m) in PSCRAB062, 3m @ 0.18% Zn from 38m to EOH in PSCRAB063 and 
1m @ 0.26% Pb from 49m in PSCRAB072.

PEEL MINING LIMITED ANNUAL REPORT 2016

9

Review of Operations

The Valvoline prospect, deﬁned by two adjacent magnetic anomalies of 17nT and 22nT amplitudes, was targeted by 
2 RAB and 2 RC drillholes. Excepting a 1m intercept of 0.17% Pb from surface in RAB hole WB002, no signiﬁcant results 
were returned. However, it is noted that both RC drillholes failed to properly test the modelled magnetic anomalies.

Red Shaft

The Red Shaft prospect is located approximately 9km northeast of Sandy Creek and 4km south of Wirlong, and bears 
many similarities to the latter. The prospective stratigraphy that hosts the mineralisation at Wirlong is traceable to Red 
Shaft, indicating a mineralised trend covering more than 6km strike. RAB drilling was completed at Red Shaft following 
the success of the December 2014 program (incl. 15m @ 0.86 g/t Au from 7m in RSRAB035) along with 6 RC drillholes, 

returning signiﬁcant gold and lead values:

•  6m @ 0.44 g/t Au from 48m in RSRAB043, 12m @ 0.31 g/t Au from 36m in RSRAB050, and 18m @ 0.34 g/t Au from 

6m in RSRAB054.

•  1m @ 1.21% Pb, 0.05% Cu, 0.06% Zn from 31m in RSRAB043, 1m @ 1.53% Pb, 0.20% Cu, 0.02% Zn from 34m in 

RSRAB045, 2m @ 0.62% Pb, 0.12% Cu, 0.10% Zn from 6m in RSRAB046.

•  10m @ 0.84 g/t Au, 0.20% Cu, 0.26% Pb from 60m incl. 4m @ 1.88 g/t Au, 0.35% Pb from 61m in RSRC003, 

2m @ 0.41% Pb, 6 g/t Ag from 54m in RSRC004, 2m @ 0.44% Pb from 17m in RSRC005, and 5m @ 0.76% Cu from 

62m in RSRC007.

Bedooba

The Bedooba prospect, approximately 15km southwest of Sandy Creek, is deﬁned by a NE/SW trending magnetic 
anomaly with coincident gravity high and a substantial multi-element geochemical soil anomaly along strike to the north-
east. Encouragingly, a detailed gravity survey has indicated a continuation of the positive gravity ridge to the south, and 
3D inversion model of airborne magnetic data collected over the prospect this reporting period has been completed for 
drill targeting. Recent soil sampling also conﬁrmed the previously identiﬁed arsenic and bismuth surface geochemical 
anomalies, and an additional partial leach program is anticipated along the anomalous magnetic/gravity trend.

Wagga Tank/Mount View Projects

The Wagga Tank and Mount View Projects comprise a package of 4 tenements within the Cobar Superbasin, for which 
Peel completed purchase agreements this year. 

ELs 7581 and 7484 of the Mount View Project were acquired from MMG Australia Limited, with the latter licence (which 
adjoins EL7461, host to the Mallee Bull and May Day deposits) containing the May Day Tails prospect; a large untested 
coincident magnetic and geochemical anomaly. 

ELs 7226 and L6695 of the Wagga Tank Project were held in Joint Venture by MMG Australia Limited (80%) and Golden 
Cross Operations Pty Ltd (20%). Subsequent to the year end, Peel acquired 100% of the Joint Venture interests with MMG 
Australia Limited receiving $1 consideration and 2% NSR on any future metals production; and Golden Cross Operations 
Pty Ltd receiving $40,000 cash. Transfer of EL6695 has been ﬁnalised, and Peel expects transfer of the remaining 
tenements to be completed in the quarter post year end.

Wagga Tank and Siegal’s Shaft prospects

Preliminary ﬁeld reconnaissance was conducted on EL6695 which contains both the Wagga Tank and Siegal’s 
Shaft/MD-2 prospects. Rock chip samples taken in both areas returned highly anomalous values; 0.69% Pb, 0.31% 
Zn, 16 g/t Ag, 2.01 g/t Au from PRT01 and 0.31% Pb, 0.93 g/t Au from PRT02 at Siegal’s Shaft; 0.26% Cu, 2.97% Pb, 
0.20% Zn from PRT03 and 0.29% Cu, 1.45% Pb, 0.30% Zn from PRT04 at Wagga Tank. 

10

PEEL MINING LIMITED ANNUAL REPORT 2016

Review of Operations

Shortly after the end of this reporting period, Peel completed RC drillhole MD2RC001 to target a strong positive magnetic 
anomaly that deﬁnes the Siegal’s Shaft/MD-2 prospect area. Historic activities had insufﬁciently tested this feature, with 
drilling predominantly focused on following-up surface geochemical anomalism and associated IP anomalies. MD2RC001 
was terminated at 343m due to excessive water, however anomalous Cu, Pb and Zn values were seen throughout the 
hole along with elevated magnetic susceptibility readings. Whilst ﬁnal assay results remain pending, signiﬁcant intercepts 
from portable XRF analyses include 1m @ 1.22% Zn, 0.36% Pb from 81m and 20m @ 0.23% Zn from 119m (including 
2m @ 0.41% Zn, 0.11% Pb from 121m and 1m @ 0.37% Zn, 0.19% Pb, 9 g/t Ag from 144m). Follow-up DHEM surveying 
of MD2RC001 is anticipated, along with further drilling. Geological mapping of the area has shown that mineralisation at 
Siegal’s Shaft/MD-2 have characteristics similar to the styles at Mallee Bull, Sandy Creek and Wirlong.

Drilling is also planned for the Wagga Tank prospect. Historic drilling at Wagga Tank culminated in the estimation of a 
non-JORC compliant inferred mineral resource comprising polymetallic (Zn-Pb-Cu-Ag-Au) mineralisation, with signiﬁcant 
intercepts including 5.3m @ 2.09 g/t Au, 1164 g/t Ag, 9.36% Cu, 0.78% Pb from 119.8m in HD-9; 15.4m @ 133 g/t Ag, 
0.4% Cu, 4.5% Pb, 12.5% Zn from 140.1m in HD-11; 7.5m @ 99.4 g/t Ag, 7.25% Pb, 18.0% Zn from 215.6m in HD-12 and 
2.5m @ 0.24 g/t Au, 100 g/t Ag, 0.25% Cu, 8.59% Pb, 11.6% Zn from 216.2m in HD-14. A review of data at Wagga Tank 
indicates that the mineralised system remains open along strike and at depth.

Apollo Hill Project

The Apollo Hill gold project is located 60km southeast of Leonora, Western Australia. Two main gold deposits deﬁne the 
Apollo Hill deposit; Apollo Hill Main Zone and the Ra Zone. Both deposits exhibit the hallmarks of a major mineralised 
Archean gold system, showing extensive and intense hydrothermal alteration and deformation.

In June 2010, Peel entered into an option agreement with Hampton Hill Mining NL (ASX:HHM) to acquire the entire issued 
capital of Apollo Mining Pty Ltd, the 100%-owner of the Apollo Hill gold, and in November 2010 the option was exercised. 
The key terms of the sale agreement saw Peel issue 11 million fully paid ordinary shares to HHM in consideration for 
Apollo Hill, and HHM granted a 5% gross overriding royalty on Apollo Hill gold production exceeding 1 million ounces.

Peel has since consolidated the Apollo Hill Project landholding to over 930km2 of granted tenure and applications, with 
multiple prospective targets identiﬁed over the broader area and away from the main Apollo Hill resource.

History and Geology

Apollo Hill was discovered in 1986 by Fimiston Mining Limited during a drill program aimed at ﬁnding the source of 
abundant alluvial gold at the base of a prominent hill in the area. Active drilling so far has outlined extensive gold 
mineralisation and alteration over a 1km strike length, which is up to 250m wide and dips 45-60 degrees to the east.

Multiple gold mineralisation events are interpreted to have occurred at Apollo Hill during a complex deformational history. 
Gold mineralisation is accompanied by quartz veins and carbonate-pyrite alteration associated with a maﬁc-felsic contact.

The Apollo Hill gold project straddles a major shear zone, known as the Apollo shear zone, which is a component of the 
Keith Kilkenny Fault system. This shear zone is largely concealed beneath transported overburden, often associated 
with the Lake Raeside drainage system, and previous surface geochemical sampling and shallow RAB drilling has 
consequently been of limited effectiveness. Deeper drilling by previous explorers has largely focused on the only locality 
where this shear zone is exposed at surface, Apollo Hill itself, and also on a nearby parallel trend termed the Western 
trend (Ra deposit).

PEEL MINING LIMITED ANNUAL REPORT 2016

11

 
Review of Operations

FIGURE 4: APOLLO HILL PROJECT TENEMENTS & GEOLOGY

12

PEEL MINING LIMITED ANNUAL REPORT 2016

Review of Operations

Apollo Hill Mineral Resource Estimates

In December 2010, Peel reported a maiden inferred resource estimate for the Apollo Hill and Ra deposits; 
11.1 Mt @ 1.0 g/t Au for 341,000 ounces of gold (using 0.5 g/t gold cut off), with the potential to increase resources with 
minimal further drilling. 

In line with this conclusion, Peel completed a programme of inﬁll and extensional drilling from April to June 2011, 
comprising approximately 3,600m of RC and diamond drilling. The programme was designed to increase sample density 
to allow for the extension of the Apollo Hill resource model a further 200 metres (grid) south, and to a minimum depth 
of about 150 metres below surface. The drilling also provided representative gold-mineralised material for additional 
metallurgical testwork. Subsequently, in September 2011 Peel reported a 48 per cent increase in the resource estimate for 
Apollo Hill, to 505,000 ounces contained gold.

The updated mineral resource estimate totals 17.2 million tonnes at 0.9 g/t Au for 505,000oz of gold (using a 0.5 g/t 
gold cut-off) across the Apollo Hill and Ra deposits. The Mineral Resource estimate is reported in accordance with the 
guidelines of the JORC Code (2004 edition) – see ASX announcement 9 September 2011:

CUT-OFF

AU G/T

0.2

0.4

0.5

0.6

0.8

1

1.2

MT

2.4

1.5

1.2

1

0.7

0.5

0.4

RA

AU G/T

KOZ

0.7

1

1.1

1.2

1.4

1.6

1.8

54

48

42

39

32

26

23

APOLLO HILL

AU G/T

0.5

0.8

0.9

1.0

1.2

1.4

1.6

KOZ

691

566

463

386

270

180

103

MT

43

22

16

12

7

4

2

TOTAL

AU G/T

0.5

0.8

0.9

1.0

1.2

1.4

1.6

KOZ

745

614

505

424

302

206

126

MT

45.4

23.5

17.2

13

7.7

4.5

2.4

TABLE 2: APOLLO HILL RESOURCE ESTIMATES

Peel Mining believes that the shallow and extensive nature of mineralisation at the Apollo Hill gold project suggests that 
the project has reasonable prospects for eventual economic extraction.

Metallurgy

Metallurgical testwork on Apollo Hill mineralisation has consistently given promising outcomes. The latest program 
undertaken in early calendar 2016 was completed to evaluate gravity and cyanide leach extractions (including heap-leach 

simulation) from the ore at conventional grind sizes and coarse-crush sizes, with key results as follows:

-  Head Assay Characteristics

  The overall head grade was calculated to be 0.73 g/t Au with variable assay repeatability. The ore contains minor 

concentrations of silver and low concentrations of cyanide consuming metals.

-  Communition Characteristics

  Bond Ball Mill Work Index indicates an ore of average hardness (16 kWh/t)

-  Gold extraction characteristics

  Excellent Au extraction with agitated cyanide leach; 92-98% recovery at P80 sizes of 300, 150 and 90 microns
  Excellent gravity Au extraction; Gravity Recoverable Gold (GRG) test returned 82.5% recovery
  Moderate to good Au extraction with column leach; heap leach simulation tests at HPGR crush sizes of -4mm and 

-8mm achieved 76.7% and 69.1% recovery respectively, with moderate cyanide consumption.

PEEL MINING LIMITED ANNUAL REPORT 2016

13

Review of Operations

FIGURE 5: APOLLO HILL PRESOURCE EXPLORATION POTENTIAL

Recent Activity

An RC drilling program was completed at Apollo Hill in early calendar 2016, comprising 7 new drillholes (PARC033-39) and 
an extension to the existing drillhole PARC31. Encouragingly high grade gold mineralisation was encountered, increasing 
the known strike of the Apollo Hill main zone by up to 250m to the southeast indicating good potential to add to the 
existing resource. Extensional intercepts included 8m @ 6.39 g/t Au from 71m (incl. 3m @ 15.6 g/t Au from 74m) and 
10m @ 4.23 g/t Au from 94m (incl. 5m @ 6.31 g/t Au from 95m) in PARC036, as well as 28m @ 0.86 g/t Au from 207m 
in PARC31. Inﬁll drill results in the southeast portion of the resource were also positive; 1m @ 8.09 g/t Au from 47m and 
1m @ 4.77 g/t Au from 120m in PARC037, and 5m @ 1.56 g/t Au from 19m, 1m @ 4.4 g/t Au from 53m, 1m @ 5.20 g/t Au 
from 95m, 1m @ 4.23 g/t Au from 113m, 1m @ 19.55 g/t Au from 142m and 1m @ 8.50 g/t Au from 162m in PARC038.

RC drillholes were also collared to test for down-dip extensions to mineralisation in the central and southern part of the 
Apollo Hill main zone area and multiple mineralised intervals were intercepted in all three; 10m @ 0.76 g/t Au from 214m 
in PARC033, 5m @ 1.71 g/t Au from 209m, 1m @ 7.51 g/t Au from 246m and 1m @ 42.77 g/t AU from 287m in PARC034, 

and 12m @ 0.85 g/t Au from 258m in PARC035.

Further drilling is anticipated at the main Apollo Hill deposit to follow-up these encouraging results.

Additional activities at the main zone comprised of the sampling and assaying of historic drill core. Diamond drilling 
completed by Apex Minerals NL in 2006 had returned signiﬁcant mineralised zones including 1.26m @ 21.12 g/t Au from 
192.74m in AAHD0002, 1.3m @ 14.46 g/t Au from 96.7m in AAHD0004, and 2m @ 69.26 g/t Au from 146m in AAHD0010. 
However, numerous sample gaps were present with many in close proximity to high grade Au intervals as well as the ends 
of drillholes. The latest assays continue to substantiate the Apollo Hill resource model with intervals such as 1m @ 6.74 
g/t Au from 165m in AAHD0004; 1m @ 2.91 g/t Au from 225m in AAHD0010; 2m @ 1.18 g/t Au from 148m in AAHD0014; 
1m @ 2.59 g/t Au from 400m and 1m @ 3.60 g/t Au from 417m in AAHD0020.

14

PEEL MINING LIMITED ANNUAL REPORT 2016

Review of Operations

Regional Apollo Hill Project Exploration

Regional exploration activities throughout Peel’s extensive WA tenure has delineated multiple targets that warrant further 
investigations. The most promising of these is the ‘40G’ prospect, located on E31/1063 to the SE of the main Apollo Hill 
resource. Preliminary geochemical sampling showed the area to be highly anomalous in gold (max. 42.9 g/t Au) and 
follow-up RAB drilling completed late last ﬁnancial year continued to highlight the prospectivity of the area with intercepts 
such as 2m @ 0.53 g/t Au from 9m in 40GRAB03, 2m @ 1.32 g/t Au from 16m and 2m @ 2.11 g/t Au from 22m in 
40GRAB12, and 1m @ 1.09 g/t Au from 18m in 40GRAB17. Auger and rock chip sampling has since extended coverage 
to the north, south and east of the RAB drilling, with anomalous gold values of up to 110ppb Au returned towards the east 
along an interpreted NE trending magnetic structural feature. An RC and diamond drilling program has been proposed to 
test whether mineralisation hosting structures exist beneath the geochemical anomalies, with additional surface sampling 
to be completed prior to drilling commencement.

About 17km southeast of 40G, a small soil and rock chip sampling program was undertaken on E31/1076 ‘Mt 
Remarkable’ where the main target is a strong discrete magnetic anomaly (named ‘The Eye’) in otherwise low-to-
moderately responsive basalt. Whilst only minor Au values were returned, an increase in surface sampling coverage is 
deemed required to investigate the full potential of the area.

Attunga

Attunga is located about 20km north of Tamworth, NSW. Within the Attunga project, there are two speciﬁc areas of 
interest; the Attunga Tungsten Deposit and the Attunga Copper Mine prospect. The Attunga Project area is considered 
prospective for tungsten-molybdenum skarn-type mineralisation and base/precious metal skarn-type mineralisation.

Attunga Copper Mine

The Attunga Copper Mine, located about 800m north of the Attunga Tungsten Deposit was discovered in 1902 and 
worked over various periods up until World War 2. Total recorded production was about 1,600t ore grading ~6% copper, 
~8 g/t gold and ~150 g/t silver. Other signiﬁcant metals present include bismuth and molybdenum. 

In May 2009, Peel completed a drilling program targeting the historic Attunga Copper Mine workings and an EM anomaly. 
While thick clays prevented the effective testing of the EM anomaly, drilling to the south of the historic workings resulted 
in the discovery of polymetallic mineralisation. Drillhole ACM-004 returned 75m at 1.02 g/t Au, 0.87% Cu, 0.09% Mo, 
0.06% Bi, and 22 g/t Ag from 136m including 27m at 1.60 g/t Au, 1.6% Cu, 0.18% Mo, 0.1% Bi, and 39 g/t Ag from 136m. 
The true width of the above intervals is construed to be approximately 25% of the down-hole intercepts. Further drilling 
was completed in 2010, where six diamond drillholes totalling 944m drilling that returned encouraging mineralisation 
up-dip of ACM-004 with an interval of 5.6m at 0.44% Mo, 0.70 g/t Au, 12 g/t Ag, 0.45% Cu, 1.9 g/t Re from 48m and 
1.4m at 22.70 g/t Au, 13 g/t Ag, 0.72% Cu from 55m. 

The results from the Attunga Copper Mine conﬁrm the presence of signiﬁcant molybdenum-gold-copper skarn 
mineralisation that remains open in several directions and provides encouragement that the Attunga skarn deposits are 
possibly part of a larger metalliferous system. 

Attunga Tungsten Deposit 

Multiple phases of exploration have been completed by Peel at the Attunga Tungsten Deposit including the completion of 
an independent JORC-compliant mineral resource estimation in April 2008. The Mineral Resource estimate is reported in 
accordance with the guidelines of the JORC Code (2004 edition) – see ASX announcement 24 April 2008:

PEEL MINING LIMITED ANNUAL REPORT 2016

15

Review of Operations

WO3 EQUIVALENT 
CUTOFF 

MILLION TONNES

WO3 %

MO %

WO3 EQUIVALENT 
%

TONNES WO3 
EQUIVALENT

TOTAL INFERRED RESOURCE

0.1

0.2

0.3

0.4

0.5

0.6

2.27

1.29

0.86

0.58

0.4

0.32

0.39

0.61

0.82

1.09

1.4

1.6

0.04

0.05

0.06

0.08

0.10

0.12

TABLE 3: ATTUNGA RESOURCE ESTIMATES

0.48

0.73

0.97

1.27

1.63

1.86

10,800

9,400

8,300

7,300

6,500

5,900

Peel believes that the deposit’s small, high grade nature and proximity to excellent infrastructure and services bodes well 
for its future advancement/potential development. Due to the work commitments at the Mallee Bull prospect and Cobar 
Superbasin Prospects no work was completed at the Attunga Tungsten deposit or Attunga Copper Mine in 2016.

Corporate

Peel Mining Limited completed its Research & Development Tax Incentive application for activities undertaken by the 
Company during the year, as part of its annual tax return. Peel received tax refunds under the scheme of $769,380  
(before interest and costs).

Subsequent to the end of the year, Peel raised $2,992,000 by way of placement of 18,700,000 new ordinary shares in the 
company, on the 19th September 2016.

16

PEEL MINING LIMITED ANNUAL REPORT 2016

Review of Operations

Mineral Resource Estimation Governance Statement

The Mallee Bull Maiden Resource Estimate, the Apollo Hill and Attunga Resource Estimates remained unchanged from the 
Resources Estimate as at 30 June 2014

Peel Mining Ltd has ensured that the Mineral Resource Estimates are subject to good governance arrangements and 
internal controls. The Mineral Resources reported have been generated by independent external consultants who are 
experienced in best practices in modelling and estimation methods. The consultants have also undertaken review of the 
quality and suitability of the underlying information used to generate the resource estimations. Additionally, Peel Mining 
Ltd carries out regular reviews and audits of internal processes and external contractors that have been engaged by the 
Company.

The Mineral Resources for Apollo Hill and Attunga were compiled and reported in accordance with the ‘Australasian Code 
for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (the JORC Code) 2004 Edition, whilst the 
Mallee Bull Resource Estimate was completed in accordance with the JORC Code 2012 Edition.

The tables below set out Mineral Resources comparatives for 2015 and 2016.

Mineral Resource Statement

Mallee Bull Mineral Resource Estimate based on 1% copper equivalent (CuEq) cut-off grade

Mineral Resource – as at 30 June 2016

Mineral Resource – as at 30 June 2015

Category

Indicated

Inferred

Total

Kt

620

3,300

3,920

CuEq

Cu %

Ag g/t

Au g/t

2.22

2.8

2.7

1.73

2.4

2.3

29.0

0.54

32

32

0.3

0.3

Kt

620

3,300

3,920

CuEq

Cu %

Ag g/t

Au g/t

2.22

2.8

2.7

1.73

2.4

2.3

29.0

0.54

32

32

0.3

0.3

Note: The ﬁgures in the above table are rounded to reﬂect the precision of the estimates and include rounding errors.

Apollo Hill Inferred Mineral Resource Estimate based on a 0.5 g/t Au cut-off grade

Mineral Resource – as at 30 June 2016

Mineral Resource – as at 30 June 2015

Apollo Hill Gold Project

Ra Zone

Apollo Hill

Mt

1.2

16

Au g/t

1.1

0.9

Koz

42

463

Mt

1.2

16

Au g/t

1.1

0.9

Koz

42

463

505
Note: The ﬁgures in the above table are rounded to reﬂect the precision of the estimates and include rounding errors.

Total

17.2

17.2

505

0.9

0.9

Attunga Tungsten Deposit Inferred Mineral Resource Estimate based on a 0.2% WO3equivalent cut-off

WO3 equivalent cut-off

Mt

WO3Eq % WO3 %

Mo %

Mt

WO3Eq % WO3 %

Mo %

Mineral Resource – as at 30 June 2016

Mineral Resource – as at 30 June 2015

0.61
Note: The ﬁgures in the above table are rounded to reﬂect the precision of the estimates and include rounding errors.

0.05

1.29

0.61

1.29

0.73

0.73

0.2

0.05

PEEL MINING LIMITED ANNUAL REPORT 2016

17

 
 
 
Review of Operations

Competent Persons Statements

Mallee Bull

The information referred to in this announcement in relation to the Mallee Bull Resource Estimate is based on information 
compiled by Jonathon Abbott, a Competent Person who is a Member of the Australian Institute of Geoscientists. At the 
time of calculating the Resource Estimate Mr Abbott was a full time employee of MPR Geological Consultants Pty Ltd 
and is an independent consultant to Peel Mining Ltd. Mr Abbott has sufﬁcient experience that is relevant to the style of 
mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent 
Person as deﬁned in the 2012 Edition of the ‘Australasian Code of Reporting of Mineral Resources and Ore Reserves’. 
Mr Abbott consented to the release of the matters based on his information in the form and context in which it appears

Apollo Hill

The information in this report that relates to mineral resource estimation for Apollo Hill is based on work completed by 
Mr Jonathon Abbott who is a full time employee of Hellman and Schoﬁeld Pty Ltd and a member of the Australasian 
Institute of Mining and Metallurgy. Hellman & Schoﬁeld was not required to review the quality or validity of the sampling 
data, as Peel Mining are accepting responsibility for these aspects of the estimates. Mr Abbott has sufﬁcient experience 
which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is 
undertaking to qualify as a Competent Person as deﬁned in the 2004 Edition of the ‘Australasian Code for Reporting 
of Exploration Results, Mineral Resources and Ore Reserves’. Mr Abbott consents to the inclusion in the report of the 
matters based on his information in the form and context in which it appears.

The information in this report that relates to the validity/quality of the Apollo Hill sampling database and Apollo Hill 
exploration results, densities, cut off grades, potential for eventual economic extraction and comments on the resource 
estimates and project background is based on information compiled by Rob Tyson, who is a Member of The Australasian 
Institute of Mining and Metallurgy. Rob Tyson is a full-time employee of the Company and has sufﬁcient experience which 
is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking 
to qualify as a Competent Person as deﬁned in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration 
Results, Mineral Resources and Ore Reserves’. Rob Tyson consents to the inclusion in the report of the matters based on 
his information in the form and context in which it appears.

Attunga Tungsten Deposit

The information referred to in this announcement in relation to the Attunga Resource Estimate is based on information 
compiled by Mr Murray Hutton, a Competent Person who is a Member of the Australian Institute of Geoscientists. At the 
time of calculating the Resource Estimate Mr Hutton was a full time employee of Geos Mining and was an independent 
consultant to Peel Mining Ltd. Mr Hutton has sufﬁcient experience that is relevant to the style of mineralisation and type 
of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as deﬁned in the 
2004 Edition of the ‘Australasian Code for Reporting of Mineral Resources and Ore Reserves’. Mr Hutton consented to the 
inclusion of the matters based on his information in the form and context in which it appears.

Peel Mining Exploration Results

The information in this report that relates to Exploration Results is based on information compiled by Rob Tyson who is a 
fulltime employee of the company. Mr Tyson is a member of the Australasian Institute of Mining and Metallurgy. Mr Tyson 
has sufﬁcient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and 
to the activities undertaken, to qualify as Competent Persons as deﬁned in the 2012 Edition of the Joint Ore Reserves 
Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. 
Mr Tyson consents to the inclusion in this report of the matters based on information in the form and context in which 
it appears. Exploration results are based on standard industry practices, including sampling, assay methods, and 
appropriate quality assurance quality control (QAQC) measures. 

18

PEEL MINING LIMITED ANNUAL REPORT 2016

PEEL MINING LIMITED ANNUAL REPORT 2016

19

20

PEEL MINING LIMITED ANNUAL REPORT 2016

Project
New South Wales
Attunga
Ruby Silver 
Brambah
Mayday
Gilgunnia
Gilgunnia South
Mundoe 
Tara
Manuka
Mirrabooka
Yackerboon
Iris Vale
Hillview Nth
Norma Vale
Yara
Burthong
Illewong
Mundoe North
Sandy Creek
Glenwood
Pine Ridge
Gilgunnia North
Mt Walton
Marygold
Lineara
Western Australia
27 Well
Bulyairdie
Isis
Apollo Hill South
The Gap
Yerilla
Mt Remarkable
Apollo Hill ML
Rise Again
Rise Again
Rise Again
Rise Again
Rise Again
Rise Again
Rise Again
Apollo Hill
Apollo Hill
Apollo Hill
Apollo Hill
Apollo Hill
Apollo Hill
Apollo Hill
Apollo Hill
Apollo Hill
Apollo Hill
Apollo Hill
Apollo Hill
Apollo Hill

Schedule of Tenements

Number

Holder

Peel Interest

EL8326
EL7711
EL8336
ML1361
EL7461
EL7519
EL7976
EL8070
EL8071
EL8105
EL8112
EL8113
EL8125
EL8126
EL8114
EL8115
EL8117
EL8201
EL8307
EL8314
EL8345
EL8391
EL8414
EL8426
EL8447

E40/0296
E40/0303
M39/0296
E31/1063
E40/337
E31/1075
E31/1076
M31/486
E31/1087
P31/2068
P31/2069
P31/2070
P31/2071
P31/2072
P31/2073
E39/1198
E39/1236
P31/1797
P39/4586
P39/4587
P39/4588
P39/4589
P39/4590
P39/4591
P39/4592
P39/4677
P39/4678
P39/4679

Peel Mining Ltd
Peel Mining Ltd
Peel Mining Ltd
Peel Mining Ltd
Peel Mining Ltd
Peel Mining Ltd
Peel (CSP) Pty Ltd
Peel (CSP) Pty Ltd
Peel (CSP) Pty Ltd
Peel (CSP) Pty Ltd
Peel (CSP) Pty Ltd
Peel (CSP) Pty Ltd
Peel (CSP) Pty Ltd
Peel (CSP) Pty Ltd
Peel (CSP) Pty Ltd
Peel (CSP) Pty Ltd
Peel (CSP) Pty Ltd
Peel (CSP) Pty Ltd
Peel (CSP) Pty Ltd
Peel (CSP) Pty Ltd
Peel (CSP) Pty Ltd
Peel Mining Ltd
Peel Mining Ltd
Peel Mining Ltd
Peel Mining Ltd

Apollo Mining Pty Ltd
Apollo Mining Pty Ltd
Apollo Mining Pty Ltd
Apollo Mining Pty Ltd
Apollo Mining Pty Ltd
Apollo Mining Pty Ltd
Apollo Mining Pty Ltd
Apollo Mining Pty Ltd
Apollo Mining Pty Ltd
Apollo Mining Pty Ltd
Apollo Mining Pty Ltd
Apollo Mining Pty Ltd
Apollo Mining Pty Ltd
Apollo Mining Pty Ltd
Apollo Mining Pty Ltd
Apollo Mining Pty Ltd
Apollo Mining Pty Ltd
Apollo Mining Pty Ltd
Apollo Mining Pty Ltd
Apollo Mining Pty Ltd
Apollo Mining Pty Ltd
Apollo Mining Pty Ltd
Apollo Mining Pty Ltd
Apollo Mining Pty Ltd
Apollo Mining Pty Ltd
Apollo Mining Pty Ltd
Apollo Mining Pty Ltd
Apollo Mining Pty Ltd

100%
100%
100%
50%
50%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%

100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%

PEEL MINING LIMITED ANNUAL REPORT 2016

21

Directors’ Report

Your directors present their report on the consolidated entity (“Group”) comprising Peel Mining Limited (“Company”) and 
the entities it controlled at the end of, or during the ﬁnancial years ended 30 June 2016 and the comparative period.

Directors

The following persons were directors of Peel Mining Limited during the ﬁnancial year and up to the date of this report.

Simon Hadﬁeld
Graham Hardie
Robert Tyson

Directors’ interests in shares and options

Directors’ interests in shares and options as at the date of this report are set out in the table below. 

Director
Simon Hadﬁeld
Graham Hardie
Robert Tyson

Principal activities

Shares Directly and Indirectly Held
3,812,564
15,422,890
7,080,000

Options
500,000
500,000
1,000,000

The principal activity of the Group is the exploration for economic deposits of minerals. For the period of this report, the 
emphasis has been on base and precious metals.

Results

The loss for the Group for the ﬁnancial year after providing for income tax amounted to $345,277 (2015: $1,725,638).

Dividends

No dividends were paid or proposed during the year. 

Review of operations

A review of the operations of the Group during the ﬁnancial year and the results of those operations are contained in 
pages 2 to 18 in this report. 

Signiﬁcant changes in the state of affairs

Contributed equity increased during the ﬁnancial year by $19,000 through the issue of:

i.  100,000 ordinary shares at $0.19 each as part of the exercise of employee options as part of the company’s employee 

share option plan.

Details of the changes in contributed equity are disclosed in note 14 to the ﬁnancial statements.

The directors are not aware of any other signiﬁcant changes in the state of affairs of the Group occurring during the 
ﬁnancial year, other than disclosed in this report.

Events occurring after balance date

Peel Mining Limited raised $2,992,000 (net of costs) by way of placement of 18,700,000 new ordinary shares in the 
company, on the 19th September 2016.

Other than the above, there were no events occurring after balance date requiring separate disclosure.

Likely developments and expected results

It is the Board’s current intention that the group will seek to progress exploration on current projects. These activities are 
inherently risky and there are no certainties that the group will successfully achieve its objectives.

22

PEEL MINING LIMITED ANNUAL REPORT 2016

Directors’ Report

Information on directors

Simon Hadﬁeld – Non-Executive Chairman

Mr Hadﬁeld has more than 30 years company management experience and has held directorships in publicly-listed 
industrial and resource companies. Mr Hadﬁeld is Managing Director of Resource Information Unit Pty Ltd and a director 
of RIU Conferences Pty Ltd. No other directorships were held in the past 3 years.

Mr Hadﬁeld holds 3,812,564 shares in Peel Mining Limited and 500,000 share options with an exercise price of $0.216.

Robert Maclaine Tyson B.App Sc(Geol).GradDip Applied Finance(SIA) – Managing Director

Mr Tyson is a geologist with more than 20 years resources industry experience having worked in exploration and 
mining-related roles for companies including Cyprus Exploration Pty Ltd, Queensland Metals Corporation NL, 
Murchison Zinc Pty Ltd, Normandy Mining Ltd and Equigold NL. Mr Tyson has more than ﬁve years of senior management 
experience. No other directorships were held in the past 3 years.

Mr Tyson holds 7,080,000 shares in Peel Mining Limited and 1,000,000 share options with an exercise price of $0.07.

Graham Hardie FCA – Non-Executive Director

Mr Hardie is the principal of Hardie Finance Corporation, a private Perth-based property development company, and is 
also the principal of Entertainment Enterprises, a private Perth-based hospitality company. He is a Fellow of the Institute 
of Chartered Accountants and a former partner in a leading Chartered Accounting ﬁrm. He has extensive commercial and 
ﬁnancial experience and has held board positions on a number of public companies in the mining, media, transport and 
retail industries. No other directorships were held in the past 3 years.

Mr Hardie holds 15,422,890 shares in Peel Mining Limited and 500,000 share options with an exercise price of $0.216.

Ryan Woodhouse CA – Company Secretary

Mr Woodhouse has 9 years of experience in the mining and energy industries in the area of accounting and governance. 
He holds a Bachelor of Commerce from Curtin University and is a member of the Institute of Chartered Accountants.

Mr Woodhouse was appointed Company Secretary on 7 January 2015.

Meetings of directors

Director’s attendance at directors meetings are shown in the following table:

Director
S Hadﬁeld
G Hardie
R Tyson

Number held whilst in ofﬁce
9
9
9

Number attended
9
9
9

Remuneration report (audited)

The remuneration report is set out under the following headings:

a.  Principles used to determine the nature and amount of remuneration
b.  Details of remuneration
c.  Service agreements
d.  Share-based compensation and
e.  Additional information.

PEEL MINING LIMITED ANNUAL REPORT 2016

23

Directors’ Report

a) Principles used to determine the nature and amount of remuneration
The objective of the remuneration framework of Peel Mining Limited is to ensure reward for performance is competitive 
and appropriate for the results delivered. The framework aligns executive reward with achievement of strategic objectives 
and the creation of value for shareholders. The board believes that executive remuneration satisﬁes the following 
key criteria:
•  competitiveness and reasonableness
•  acceptability to shareholders
•  performance linkage / alignment of executive compensation
• 
•  capital management.
These criteria result in a framework which can be used to provide a mix of ﬁxed and variable remuneration, and a blend of 
short and long-term incentives in line with the Company’s remuneration policy.

transparency

Board and senior management
Fees and payments to the directors and other key management personnel reﬂect the demands which are made on, and 
the responsibilities of, the directors and the senior management. Such fees and payments are determined by the board 
and reviewed annually. 

Company policy in relation to remunerating executives is that directors are entitled to remuneration out of the funds 
of the Company but the remuneration of the non-executive directors may not exceed in any year the amount ﬁxed by 
the Company in general meeting for that purpose. The aggregate fees of the non-executive directors has been ﬁxed at 
a maximum of $250,000 per annum to be apportioned among the non-executive directors in such a manner as they 
determine (refer below). Directors are also entitled to be paid reasonable travel, accommodation and other expenses 
incurred in consequence of their attendance at board meetings and otherwise in the execution of their duties as directors. 
Senior management are paid based on applicable market rates.

Remuneration is not linked to past Group performance but rather towards generating future shareholder wealth through 
share price performance. The board and management are issued share options in the Company on a periodic basis as a 
means to link executive rewards to shareholder value.

Peel Mining Limited listed on 11 May 2007 at 20c per share and the share price at 30 June 2016 was 17c (2015: 27c). 
The Company has recorded a loss each ﬁnancial year to date, except for 2014 during which it recorded a gain on the 
partial disposal of the Mallee Bull Project. No dividends have been declared or paid during the reporting period.

24

PEEL MINING LIMITED ANNUAL REPORT 2016

Directors’ Report

b) Details of remuneration 
Details of the nature and amount of each element of the remuneration of each of the directors of Peel Mining Limited and 
other key management personnel of the Group during the year ended 30 June 2016 are set out in the following table.

Table 1: Director and Key Management Personnel remuneration

Short-Term 
Employment 
Beneﬁts

Cash salary and 
fees

Post-
Employment

Superannuation

Long-Term 
Beneﬁts

Long-service 
leave

$

$

$

Share Based 
Payment

Options

$

Total

$

Performance 
Related

%

229,004
50,000
50,000

21,755
4,750
4,750

10,500

41,755

28,761
-
-

-

28,761

12,080
45,410
45,409

13,399

116,298

291,600
100,160
100,159

133,899

625,818

0%
0%
0%

0%

0%

Other Key Management Personnel
R Woodhouse1

110,000

Total

439,004

2016
Directors
R Tyson
S Hadﬁeld
G Hardie

Short-Term 
Employment 
Beneﬁts

Cash salary and 
fees

Post-
Employment

Superannuation

Long-Term 
Beneﬁts

Long-service 
leave

$

$

$

Share Based 
Payment

Options

$

Total

$

Performance 
Related

%

2015
Directors
R Tyson
S Hadﬁeld
G Hardie

200,000
50,000
50,000

58,037
50,770
408,807

Other Key Management Personnel
R Woodhouse1
D Lim2

Total

19,000
4,750
4,750

5,429
4,823
38,752

-
-
-

-
-
-

22,044
-
-

-
-
22,044

241,044
54,750
54,750

63,466
55,593
469,603

0%
0%
0%

0%
0%
0%

1. Appointed as Company Secretary on 7 January 2015.

2. Ceased being Company Secretary on 7 January 2015.

c) Service agreements
Remuneration and other terms of employment for the directors and key management personnel, except those of 
non-executive directors are formalised in Employment Agreements or Letters of Offer. Details of the employment 
conditions for directors and key management personnel are set out below:

S Hadﬁeld (non-executive chairman)
Mr Hadﬁeld was appointed a director of the Company on 20 April 2006. Mr Hadﬁeld has not entered into a formal contract 
with the Company in respect to his appointment as a non-executive director. Mr Hadﬁeld received payments and beneﬁts 
totalling $100,160 (2015:$ 54,750) in his role as a non-executive director of the Company.

G Hardie (non-executive director)
Mr Hardie was appointed a director of the Company on 24 February 2010. Mr Hardie has not entered into a formal 
contract with the Company in respect to his appointment as a non-executive director. Mr Hardie received payments and 
beneﬁts totalling $100,159 (2015:$ 54,750) in his role as a non-executive director of the Company. 

PEEL MINING LIMITED ANNUAL REPORT 2016

25

Directors’ Report

R Tyson (managing director)
Mr Tyson was appointed a director of the Company on 20 April 2006. Mr Tyson is employed as the Managing Director of 
the Company under an ongoing contract. The terms of his contract state: 
•  The managing director receives ﬁxed remuneration of $230,000 per annum gross, plus statutory 

superannuation guarantee.

•  Either the managing director or the Company may terminate the employment at any time by giving one month 

written notice.
If the Company terminates the employment the managing director will receive payment of ﬁve weeks pay.

• 
•  The managing director may be invited to participate in the Company’s Employee Share Option Plan.
• 

If the Company terminates the employment of the managing director any active share options issued will be cancelled.

R Woodhouse (Company Secretary)
Mr Woodhouse was appointed company secretary of the Company on 7 January 2015. Mr Woodhouse is employed 
under a letter of employment with the Company as their ﬁnancial controller, the terms of which state:
•  The employee receives ﬁxed remuneration of $110,000 per annum gross, plus statutory superannuation guarantee.

•  Either the employee or the Company may terminate the employment at any time by giving one month written notice.

d) Share-based compensation
Employees

Options over shares in Peel Mining Limited may be granted under the Company’s Employee Share Option Plan which 
was created in June 2008 and approved by shareholders at the annual general meeting. The Employee Share Option 
Plan is designed to provide long-term incentives for employees to deliver long-term shareholder returns. Under the plan, 
participants are granted options 50% of which vest immediately and the remainder vest after twelve months provided 
the employee is still employed by the Company at the end of the vesting period. Participation in the plan is at the 
board’s discretion. 

Details of options over ordinary shares in the Company provided as remuneration to each director and key management 
personnel of Peel Mining Limited are set out below. When exercisable, each option is convertible into one ordinary share 
of Peel Mining Limited. Further information on the options is set out in note 25 to the ﬁnancial statements. 

Name

Value granted

Number of options granted during year

Number of options vested during year

2016

2015

2016

2015

2016

2015

Directors
Simon Hadﬁeld
Graham Hardie
Rob Tyson
Ryan Woodhouse

45,410
45,409
-
16,000

-
-
30,000
-

500,000
500,000
-
200,000

-
-
1,000,000
-

500,000
500,000
500,000
100,000

-
-
500,000
20,000

The assessed fair value at grant date of options granted to the individuals is allocated equally over the period from grant 
date to vesting date. Fair values at grant date have been determined using a Black-Scholes option pricing model that 
takes into account the exercise price, term of the option, impact of dilution, share price at grant date, price volatility of the 
underlying share, expected dividend yield and the risk-free interest rate for the term of the option.

26

PEEL MINING LIMITED ANNUAL REPORT 2016

Directors’ Report

The terms and conditions of each grant of options existing at reporting date is as follows:

Grant Date

5 December 2014

Date Vested & 
Exercisable

5 December 2014 (50%)
5 December 2015 (50%)

Expiry Date

Exercise Price

Value per Option 
at Grant Date

4 December 2017

7 Cents

3 Cents

7 December 2015

7 December 2015 100%)

7 December 2018

21.6 Cents

9 cents

19 October 2015

19 October 2015 (50%)
19 October 2016 (50%)

19 October 2018

19 cents

8 cents

No options were exercised by directors of Peel Mining Limited. 

(e) Option holdings of key management personnel (KMP)

Balance at 
the start 
of the year

Granted as 
compensation

Expired 
during 
year

Other 
Change

Balance at 
end of the 
year

Exercised

Vested and 
exercisable Unvested

30 June 2016

Directors

R Tyson

2,000,000

-

1,000,000

S Hadﬁeld

G Hardie

KMP

500,000

500,000

500,000

500,000

500,000

500,000

R Woodhouse 

-

200,000

-

-

-

-

-

-

-

-

-

1,000,000

1,000,000

500,000

500,000

500,000

500,000

-

-

-

200,000

100,000

100,000

(f) Share holdings of directors and key management personnel – Shares in Peel Mining Limited (number)

30 June 2016

Directors

G Hardie

R Tyson

S Hadﬁeld 

KMP

Balance at
1 July 2015

15,422,890

7,080,000

3,812,564

R Woodhouse 

200,000

30 June 2015

Directors

G Hardie

R Tyson

S Hadﬁeld 

KMP

Balance at
1 July 2014

15,422,890

7,080,000

3,812,564

Received during
the year on the
exercise of options

Other changes
during the year

Balance at
30 June 2016

-

-

-

-

-

-

-

-

15,422,890

7,080,000

3,812,564

200,000

Received during
the year on the
exercise of options

Other changes
during the year

Balance at
30 June 2015

-

-

-

-

-

-

-

15,422,890

7,080,000

3,812,564

200,000

R Woodhouse 

-

200,000

PEEL MINING LIMITED ANNUAL REPORT 2016

27

Directors’ Report

(g) Other transactions with directors and key management personnel
Simon Hadﬁeld, is a director of Resource Information Unit Pty Ltd (RIU). RIU leases the Company ofﬁce space and 
charges the Company lease fees on arm’s length commercial terms on a monthly basis. Total fees charged to the 
Company by RIU for the year ended 30 June 2016 were $63,501 (2015: $59,760). During the year the Company 
participated in conferences organised by RIU Conferences Pty Ltd, to the value of $13,860 (2015: $17,380), a company of 
which Mr Hadﬁeld is a director. These amounts are included in loss for the year within administration expenses and on the 
statement of ﬁnancial position within trade and other payables at year end in relation to any unpaid amounts.

Aggregate amounts of each of the above types of “other transactions” with key management personnel of 
Peel Mining Limited:

Amounts recognised as expense

Management fees

Conferences

Consolidated

2016

$

63,501

13,860

77,361

2015

$

59,760

17,380

77,140

h) Additional information
Cash bonuses
No cash bonuses have been paid by the Company during the reporting period.

Share-based compensation: options
Other than options granted and exercised under the Employee Option Share Plan, as described in (d) above, there were 
no options issued to or exercised by directors of Peel Mining Limited or other key management personnel during the year. 

Use of remuneration consultants
During the year ended 30 June 2016, the Group did not employ the services of a remuneration consultant to review its 
existing remuneration policies and to provide recommendations in respect of both executive short-term and long-term 
incentive plan design.

Voting and comments made at the Company’s 2015 Annual General Meeting 
Peel Mining Limited received more than 99% of “yes” votes on its remuneration report for the 2015 ﬁnancial year. 
The Company did not receive any speciﬁc feedback at the AGM or throughout the year on its remuneration practices.

End of Audited Remuneration Report

28

PEEL MINING LIMITED ANNUAL REPORT 2016

Directors’ Report

Shares under option
Unissued ordinary shares of the Company under option at the date of this report are as follows:

Date options granted

3 December 2014 (managing director) 

19 October 2015

Expiry date

4 December 2017

19 October 2018

7 December 2015(non-executive directors) 

7 December 2018

Issue price of 
shares

Number under 
option

7 cents

19 cents

21.6 cents

1,000,000

1,100,000

1,000,000

No option holder has any right under the options to participate in any other share issue of the Company.

Shares issued on the exercise of options

Date of Exercise

31 July 2014 

19 October 2016

Issue price of shares

Number of shares issued

2016
cents

-

19

2015
cents

8

-

2016
Number

-

100,000

2015
Number

400,000

-

Indemniﬁcation and Insurance of Directors and Ofﬁcers
During the ﬁnancial year the Company paid a premium of $11,125 (2015: $13,594) to insure the directors and ofﬁcers of the 
Group. The policy indemniﬁes each director and ofﬁcer of the Group against certain liabilities arising in the course of their duties. 

Proceedings on behalf of the Company 
No person has applied for leave of court to bring proceedings on behalf of the Group or intervene in any proceedings 
to which the Group is a party for the purpose of taking responsibility on behalf of the Group for all or any part of those 
proceedings. The Group was not a party to any such proceedings during the year.

Environmental Regulation
The Group holds exploration licences and mining leases in Australia. These licences specify guidelines for environmental 
impacts in relation to exploration activities. The licence conditions provide for the full rehabilitation of the areas of 
exploration in accordance with the respective jurisdiction’s guidelines and standards. The Company is not aware of any 
signiﬁcant breaches of the license condition.

Auditor’s Independence Declaration
A copy of the Auditor’s Independence Declaration as required under section 307C of the Corporations Act 2001 is 
included at the end of this ﬁnancial report.

Auditor
During the year Peel Mining Limited appointed PricewaterhouseCoopers to take over the companies audit responsibilities 
under Division 6 of the Corporations Act 2001. They take over from BDO Audit (WA) Pty Ltd.

Non-Audit Services
The Company may decide to employ the auditor on assignments additional to their statutory audit duties where the 
auditor’s expertise and experience with the Company are important. Details of the fees paid to the auditor during the year 
can be found at note 16 of the notes to the consolidated ﬁnancial statements.

This report is made in accordance with a resolution of the board of directors and signed for on behalf of the board by:

Rob Tyson
Managing Director
Perth, Western Australia
29th September 2016

PEEL MINING LIMITED ANNUAL REPORT 2016

29

Consolidated statement of proﬁt or loss  
and other comprehensive income  
for the year ended 30 June 2016

Interest Revenue

Other income

Revenue and other income

Share-based remuneration to employees

Depreciation expense

Employee and directors’ beneﬁt expenses

Exploration expenditure written off

Administration expenses

Proﬁt/(loss) before income tax

Income tax beneﬁt (expense)

Consolidated

Note 

2016

$

2015

$

51,281

423,398

474,679

(183,292) 

(82,267)

(513,412)

(145,309)

(479,743)

82,574

90,909

173,483

(22,044)

(88,015)

(468,672)

(5,011)

(688,150)

(929,344)

(1,098,409)

584,067

(627,229)

3

15

9

4

10

4

5

Proﬁt/(loss) from continuing operations after income tax

(345,277)

(1,725,638)

Other comprehensive income

-

-

Total proﬁt/(loss) and comprehensive income for the 
year attributable to the members of Peel Mining Limited

Basic Earnings/ (loss) per share for the year attributable 
to the members of Peel Mining Ltd

Diluted earnings/ (loss) per share for the year 
attributable to the members of Peel Mining Ltd

24

24

(345,277)

(1,725,638)

(0.002)

(0.013)

(0.002) 

(0.013)

The above Consolidated Statement of Proﬁt or Loss and Other Comprehensive Income should be read in conjunction with 
the accompanying notes.

30

PEEL MINING LIMITED ANNUAL REPORT 2016

 
Consolidated statement of ﬁnancial position  
as at 30 June 2016

Current Assets

Cash and cash equivalents

Trade and other receivables

Total Current Assets

Non-Current Assets

Security deposits

Property

Plant & equipment

Exploration assets

Total Non-Current Assets

Total Assets

Current Liabilities

Trade and other payables

Total Current Liabilities

Non-Current Liabilities

Deferred Income

Deferred Tax Liability

Total Non-Current Liabilities

Total Liabilities

Net Assets

Equity

Contributed equity

Accumulated losses

Option reserve

Total Equity

Consolidated

Note

2016

$

2015

$

6

7

8

9

9

10

12

13

5

14

15

15

1,859,028

271,942

2,130,970

366,404

840,487

171,272

15,100,555

16,478,718

2,974,741

111,260

3,086,001

387,904

840,487

188,323

12,211,903

13,628,617

18,609,688

16,714,618

384,584

384,584

3,636,415

-

3,636,415

4,020,999

487,565

487,565

909,658

627,229

1,536,887

2,024,452

14,588,689

14,690,166

18,002,700

(4,784,479)

1,370,469

14,588,689

17,942,191

(4,439,202)

1,187,177

14,690,166

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes. 

PEEL MINING LIMITED ANNUAL REPORT 2016

31

Consolidated statement of changes in equity for the 
year ended 30 June 2016

CONSOLIDATED

Contributed
Equity
$

Accumulated
Losses
 $

Balance at 1 July 2014

Note

17,911,805

Loss for the year

Total comprehensive proﬁt 
for the year

15

-

-

(2,713,564)

(1,725,638)

(1,725,638)

Transactions with equity holders in their capacity as equity holders:

Issue of share capital

Share issue expenses

Share based payments

Balance at 30 June 2015

Loss for the year

Total comprehensive loss 
for the year

Issue of share capital

Share issue expenses

Share based payments

14

14

25

15

14

14

25

32,000

(1,614)

-

-

-

-

17,942,191

(4,439,202)

-

-

62,163

(1,654)

-

(345,277)

(345,277)

-

-

-

Balance at 30 June 2016

18,002,700

(4,784,749)

Reserves
 $

1,165,133

-

-

-

-

22,044

1,187,177

-

-

-

-

183,292

1,370,469

Total
Equity
 $

16,363,374

(1,725,638)

(1,725,638)

32,000

(1,614)

22,044

14,690,165

(345,277)

(345,277)

62,163

(1,654)

183,292

14,588,689

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes. 

32

PEEL MINING LIMITED ANNUAL REPORT 2016

Consolidated statement of cash ﬂows 
for the year ended 30 June 2016

Consolidated

Note

2016

$

2015

$

Cash ﬂows from operating activities

Payments to suppliers and employees

Management fee income

Interest received

Net cash outﬂow from operating activities

22

Cash ﬂows from investing activities

Payment for exploration expenditure

Transfer to security deposits

Transfer from security deposits

Payments for purchase of plant and equipment

Research and Development Tax Incentive

Proceeds as part of E&E asset farm-out

Net cash inﬂow/(outﬂow) from investing activities

Cash ﬂows from ﬁnancing activities

Proceeds from issue of shares

Transaction costs of issue of shares

Net cash inﬂow from ﬁnancing activities

Net increase (decrease) in cash and cash 
equivalents

Cash and cash equivalents at the start of year

Cash and cash equivalents at the end of year 

6

(984,495)

182,636

50,803

(751,056)

(3,742,930)

-

21,500

(66,305)

769,885

2,635,848

(382,002)

19,000

(1,654)

17,346

(1,115,713)

2,974,741

1,859,028

(1,119,377)

90,909

90,499

(937,969)

(2,665,365)

(40,000)

-

(55,549)

2,618,835

909,658

767,579

32,000

(1,614)

30,386

(140,003)

3,114,744

2,974,741

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

PEEL MINING LIMITED ANNUAL REPORT 2016

33

Notes to the Consolidated Financial Statements

1. Statement of Signiﬁcant Accounting Policies
The principal accounting policies adopted in the preparation of the ﬁnancial report are set out below. These policies have 
been consistently applied to all the years presented, unless otherwise stated. The ﬁnancial report includes the ﬁnancial 
statements for the Group which comprises Peel Mining Limited and its controlled entities at the end of, or during the 
ﬁnancial years ended 30 June 2016 and the comparative period.

a.  Basis of preparation
These general purpose ﬁnancial statements have been prepared in accordance with Australian Accounting Standards, other 
authoritative pronouncements of the Australian Accounting Standards Board, Australian Accounting Interpretations and the 
Corporations Act 2001. Peel Mining Limited is a for-proﬁt entity for the purpose of preparing the ﬁnancial statements.

Compliance with IFRS
The ﬁnancial statements and notes of the Group comply with International Financial Reporting Standards (IFRS). 

Historical cost convention
These ﬁnancial statements have been prepared under the historical cost convention.

New and amended standards adopted by the group
The accounting policies adopted are consistent with those of the previous ﬁnancial year, other than the adoption of the 
following standards and amendments; AASB 2014-1 Amendments to Australian Accounting Standards; which came 
into effect for the annual reporting period commencing 1 July 2015. The adoption of these standards did not have any 
signiﬁcant impact on the current period or any prior period and is not likely to affect future periods.

Comparative information
Certain comparative information has been restated to be present on a consistent basis with the current year’s presentation.

b.  Principles of consolidation
The consolidated ﬁnancial statements are those of the consolidated entity, comprising Peel Mining Limited (the parent 
entity) and entities controlled during the year and at reporting date (“Group”). A controlled entity is any entity that the 
Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those 
returns through its power to direct the activities of the entity. Information from the ﬁnancial statements of the controlled 
entities is included from the date the parent company obtains control until such time as control ceases. Where there is a 
loss of control of a subsidiary, the consolidated ﬁnancial statements include the results for the part of the reporting period 
during which the parent company has control.

Subsidiary acquisitions are accounted for using the acquisition method of accounting.

The ﬁnancial statements of subsidiaries are prepared for the same reporting period as the parent entity, using consistent 
accounting policies. 

All intercompany balances and transactions, including unrealised proﬁts arising from intra-Group transactions, have been 
eliminated in full. Unrealised losses are eliminated except where costs cannot be recovered.

Investments in subsidiaries are carried at cost in the parent entity.

Under AASB 11 Joint Arrangements investments in joint arrangements are classiﬁed as either joint operations or joint 
ventures. The classiﬁcation depends on the contractual rights and obligations of each investor, rather than the legal 
structure of the joint arrangement. 

Joint operations
Peel Mining Limited recognises its direct right to the assets, liabilities, revenues and expenses of joint operations and 
its share of any jointly held or incurred assets, liabilities, revenues and expenses. These have been incorporated in the 
ﬁnancial statements under the appropriate headings.

Details of joint operations are set out in note 27.

34

PEEL MINING LIMITED ANNUAL REPORT 2016

Notes to the Consolidated Financial Statements

c.  Revenue recognition
Revenue is recognised to the extent that it is probable that the economic beneﬁt will ﬂow to the Group and the revenue 
can be reliably measured. The following speciﬁc recognition criteria must also be met before revenue is recognised.

Interest income
Revenue is recognised as the interest accrues using the effective interest rate method.

Management Fee
Peel Mining Limited receives a 10% management fee on all exploration expenses from Peel (CSP) Pty Ltd as the operator 
of the CSP Project, under the JOGMEC farm-in arrangement. The revenue is accrued when expenditure is incurred.

d.  Income tax
The income tax expense (or beneﬁt) for the period is the tax payable (or refundable) on the current period’s taxable income 
based on the notional income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities 
attributable to temporary differences and to unused tax losses.

Deferred income tax is provided on all temporary differences at the reporting date between the tax bases of assets and 
liabilities and their carrying amounts for ﬁnancial reporting purposes. Deferred income tax assets are recognised for 
all deductible temporary differences, carry forward of unused tax assets 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. A deferred income tax asset is not recognised 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 income or when the deductible temporary difference is associated with investments in 
subsidiaries, associates or interests in joint ventures, in which case a deferred tax asset is only recognised to the extent 
that it is probable that the temporary difference will reverse in the foreseeable future and taxable proﬁt will be available 
against which the temporary difference can be utilised.

The carrying amount of deferred income tax assets are reviewed at each reporting date and reduced to the extent it is no longer 
probable that sufﬁcient taxable income will be available to allow all or part of the deferred income tax asset to be utilised.

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 at the reporting date. 
Income taxes relating to items recognised directly in equity are recognised in equity and not in proﬁt and loss for the year.

e.  Impairment of assets
At each reporting date, the Group assesses whether there is any indication that an asset may be impaired. Where an 
indicator of impairment exists, the Company makes a formal estimate of recoverable amount. Where the carrying amount of 
an asset exceeds its recoverable amount the asset is considered impaired and is written down to its recoverable amount.

Recoverable amount is the greater of fair value less costs to sell and value in use. It is determined for an individual asset, 
unless the asset’s value in use cannot be estimated to be close to its fair value less costs to sell and it does not generate 
cash inﬂows that are largely independent of those from other assets or groups of assets, in which case, the recoverable 
amount is determined for the cash-generating unit to which the asset belongs. The estimated future cash ﬂows are 
discounted to their present value using a pre-tax discount rate reﬂecting current market assessments of the time value of 
money and the risks speciﬁc to the asset.

Nil impairment losses have been recognised for the year ending 30 June 2016 (2015: $nil).

f.  Cash and cash equivalents
For statement of cash ﬂows preparation purposes, cash and cash equivalents includes cash on hand and short term 
deposits held at call (other than deposits used as cash backing for performance bonds) with ﬁnancial institutions. Any 
bank overdrafts are shown within borrowings in the current liabilities on the statement of ﬁnancial position.

g.  Trade and other receivables
Trade receivables, which generally have 30 to 90 day terms, are recognised initially at fair value and subsequently at 
amortised cost less an allowance for any potentially unrecoverable amounts. An allowance for doubtful debts is made 
when there is objective evidence that the Group may not be able to collect the debts. The allowance for bad debts is 
recognised in a separate account. Bad debts are written off when identiﬁed.

PEEL MINING LIMITED ANNUAL REPORT 2016

35

Notes to the Consolidated Financial Statements

h.  Other ﬁnancial assets – security deposits
The Group classiﬁes its ﬁnancial assets as loans and receivables. Management determines the classiﬁcation at initial 
recognition and where applicable re-evaluates this designation at the end of each reporting period. Loans and receivables 
are carried at amortised cost using the effective interest method. The Group assesses at the end of each ﬁnancial period 
whether a ﬁnancial asset is impaired.

Security deposits are non-derivative ﬁnancial assets with ﬁxed or determinable payments that are not quoted in an 
active market. 

i.  Fair value estimation
The fair value of ﬁnancial assets and ﬁnancial liabilities must be estimated for recognition and measurement or for 
disclosure purposes.

The carrying value less impairment provision of trade receivables and payables are assumed to approximate their 
fair values due to their short-term nature. The fair value of ﬁnancial liabilities for disclosure purposes is estimated by 
discounting the future contractual cash ﬂows at the current market interest rate that is available to the Group for similar 
ﬁnancial instruments.

j.  Plant and equipment
All assets acquired, including plant and equipment are initially recorded at their cost of acquisition, being the fair value 
of the consideration provided plus incidental costs directly attributable to the acquisition. Depreciation on plant and 
equipment is calculated using the straight-line method to allocate their cost or revalued amounts over their estimated 
useful lives from the time the asset is held ready for use as follows:
•  Plant 
•  Vehicles 
•  Ofﬁce equipment   
•  Computer software  

3-5 years 
3-5 years
3-5 years
3-5 years

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. An 
asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is impaired.

An item of plant and equipment is derecognised upon disposal or when no future economic beneﬁts are expected from its 
use or disposal.

Any gain or loss arising on de-recognition of the asset (calculated as the difference between net disposal proceeds and 
the carrying amount of the asset) is included in proﬁt or loss in the year the asset is derecognised.

k.  Property (Land held at cost)
Property, being interests in freehold land, is held at historical cost and is not depreciated as per the accounting standard.

l.  Exploration and evaluation expenditure
All exploration and evaluation expenditure is capitalised under AASB 6 Exploration for and Evaluation of Mineral 
Resources. Mineral interest acquisition costs and exploration and evaluation expenditure incurred is accumulated and 
capitalised in relation to each identiﬁable area of interest. These costs are only carried forward to the extent that the 
Group’s right to tenure to that area of interest are current and either the costs are expected to be recouped through 
successful development and exploitation of the area of interest (alternatively by sale) or where areas of interest have not 
at reporting date reached a stage which permits a reasonable assessment of the existence or otherwise of economically 
recoverable reserves, and active, and signiﬁcant operations are undertaken in relation to the area of interest.

Amortisation is not charged on costs carried forward in respect of areas of interest in the exploration and evaluation phase 
or develop phase until production commences.

This policy has resulted in exploration expenditure of $145,309 (2015: $5,011) being written off during the year. 

m.  Accounting for farmouts
The Group may enter into transactions whereby a third party (“Farmee”) may earn a right to acquire an interest in assets 
owned by the Group by meeting certain obligations agreed to by both parties. As the terms of farm-ins are not generic 
management assess each agreement on a transaction by transaction basis and determines the appropriate accounting 
treatment based on the terms of the agreement.

36

PEEL MINING LIMITED ANNUAL REPORT 2016

 
 
 
Notes to the Consolidated Financial Statements

CBH Resources Ltd (“CBH”) farm-in agreement 
On 18 July 2012, CBH and Peel Mining Ltd (“Peel”) executed a farm-in agreement (“FIA”) pursuant to which CBH could 
earn up to a 50% interest in certain exploration tenements held by Peel. Under the terms of this agreement Peel incurred 
expenses in relation to the farm-in and CBH contributed to these expenses. 

Based on the terms of the FIA Peel applied the following accounting policy during the current reporting period.
•  Exploration expenditure incurred by Peel in relation to the FIA is capitalised in accordance with AASB 6 Exploration for 

and Evaluation of Mineral Resources.

•  Contributions by CBH pursuant to the FIA, are initially classiﬁed as deferred income until such time as CBH fail to earn 
an interest in the tenements or elected to have an interest in the tenements vest. At this point in time the deferred 
income is considered earned and transferred to Other Income in the calculation of proﬁt or loss for the period.

•  Should CBH earn a vested interest in the tenements, Peel transfers to proﬁt or loss a corresponding proportion of the 
costs capitalised by the Company over the life of the project, in order to calculate the gain or loss on the disposal that 
has occurred.

Japan Oil Gas and Metals National Corporation (“JOGMEC”) farm-in agreement 
On 30 September 2014, JOGMEC and Peel executed a Memorandum of Agreement (‘MoA”) pursuant to which JOGMEC 
could earn up to a 50% interest in certain exploration tenements held by Peel. Under the terms of this agreement a wholly 
owned subsidiary of Peel incurred expenses in relation to the farm-in and JOGMEC contributed to these expenses by way 
of cash call. Based on the terms of the agreement Peel, will account for the MoA as per its policy and the agreement with 
CBH, except the Management Fee of 10% on all expenditure, which is accrued as expenditure is made.

n.  Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the ﬁnancial year 
which are unpaid. The amounts are unsecured and are usually payable within 30 days of invoice. They are recognised 
initially at fair value and subsequently at amortised cost.

o.  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. Incremental costs directly attributable to the issue of new shares or options for the acquisition of a 
business are not included in the cost of the acquisition as part of the purchase consideration.

If the entity acquires its own equity instruments, e.g. as the result of a share buy-back, those instruments are deducted from 
equity and the associated shares are cancelled. No gain or loss is recognised in the proﬁt or loss and the consideration paid 
including any directly attributable incremental costs (net of income taxes) are recognised directly in equity.

p.  Earnings per share
Basic earnings per share is calculated by dividing the proﬁt or loss attributable to equity holders of the Company, 
excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares 
outstanding during the ﬁnancial year, adjusted for bonus elements in ordinary shares issued during the year.

Diluted earnings per share adjusts the ﬁgures used in the determination of basic earnings per share to take into account 
the after income tax effect of interest and other ﬁnancing costs associated with dilutive potential ordinary shares and the 
weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential 
ordinary shares.

q.  Leases
Leases are classiﬁed as ﬁnance leases when the terms of the lease transfer substantially all the risks and rewards 
incidental to ownership of the leased asset to the lessee. All other leases are classiﬁed as operating leases.

Assets held under ﬁnance leases are initially recognised at their fair value or, if lower, at amounts equal to the present value 
of the minimum lease payments, each determined at the inception of the lease. The corresponding liability to the Lessor 
is included in the statement of ﬁnancial position as a ﬁnance lease obligation. Lease payments are apportioned between 
ﬁnance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the liability. Finance 
charges are charged directly to the statement of proﬁt or loss and other comprehensive income. 

Operating lease payments are recognised as an expense when incurred. 

PEEL MINING LIMITED ANNUAL REPORT 2016

37

Notes to the Consolidated Financial Statements

r.  Employee beneﬁts
Short-term obligations
Liabilities for wages and salaries, including non-monetary beneﬁts and leave entitlements that are expected to be settled 
wholly within 12 months after the end of the period in which the employees render the related service are recognised 
in respect of employees’ services up to balance date and are measured at the amounts expected to be paid when the 
liabilities are settled.

s.  Goods and services tax
Revenues, expenses and assets are recognised net of goods and services tax (GST), except where the amount of GST 
incurred is not recoverable from the taxation authority. In these circumstances the GST is recognised as part of the cost of 
acquisition of the asset or as part of the expense item.

Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable is included as 
a current asset in the statement of ﬁnancial position. 

Cash ﬂows are included in the statement of cash ﬂows on a gross basis. The GST components of cash ﬂows arising from 
investing and ﬁnancing activities which are recoverable from the taxation authority are classiﬁed as operating cash ﬂows.

t.  Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating 
decision maker. The chief decision maker has been identiﬁed as the board of directors.

u.  Share Based Payments
Share-based compensation beneﬁts to directors, employees and consultants are provided at the discretion of the board.

The fair value of options granted is recognised as an expense with a corresponding increase in equity. The fair value is measured 
at grant date and recognised over the period during which the recipient becomes unconditionally entitled to the options.

The fair value at grant date is independently determined using a Black-Scholes option pricing model that takes into 
account the exercise price, term of the option, share price at grant date expected price volatility of the underlying share, 
expected dividend yield and the risk free interest rate for the term of the option.

v.  Research and Development Tax Incentive Grant
Peel accounts for funds received from the ATO under the Research and Development (R&D) Tax Incentive Scheme as an 
offset to the Exploration and Evaluation asset, where the initial expenses to which it relates were capitalised.

w. New accounting standards and interpretations not yet adopted
Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2016 
reporting periods and have not been early adopted by the group. The group’s assessment of the impact of these new 
standards and interpretations is set out below.

AASB 9 Financial Instruments – (Effective date 1 January 2018)
AASB 9 addresses the classiﬁcation, measurement and derecognition of ﬁnancial assets and ﬁnancial liabilities and introduces 
new rules for hedge accounting. In December 2014, the AASB made further changes to the classiﬁcation and measurement 
rules and also introduced a new impairment model. These latest amendments now complete the ﬁnancial instruments standard. 

The application of the standard at the operative date is not expected to have a signiﬁcant impact on the group’s 
accounting for ﬁnancial assets and liabilities.

AASB 15 Revenue from Contracts with Customers – (Effective date 1 January 2018)
The AASB has issued a new standard for the recognition of revenue. This will replace AASB 118 which covers contracts 
for goods and services and AASB111 which covers construction contracts. The new standard is based on the principle 
that revenue is recognised when control of a good or service transfers to a customer, so the notion of control replaces the 
existing notion of risks and rewards. The standard permits either a full retrospective or a modiﬁed retrospective approach 
for the adoption. 

Management is currently assessing the impact of the new rules. At this stage, the Group is not able to estimate the impact 
of the new rules on the Group’s ﬁnancial statements. The Group will make more detailed assessments of the impact over 
the next 12 months. 

38

PEEL MINING LIMITED ANNUAL REPORT 2016

Notes to the Consolidated Financial Statements

AASB 16 Leases – (Effective date 1 January 2019)
AASB 16 was issued in February 2016. It will result in almost all leases being recognised on the balance sheet, as the 
distinction between operating and ﬁnance leases is removed. Under the new standard, an asset (the right to use the 
leased item) and a ﬁnancial liability to pay rentals are recognised. The only exceptions are short-term and low-value leases.

The accounting for lessors will not signiﬁcantly change.

At this stage, the group is not able to estimate the effect of the new rules on the group’s ﬁnancial statements. The group 
will make a more detailed assessments of the impact over the next twelve months.

There are no other standards that are not yet effective and that are expected to have a material impact on the 
consolidated entity in the current or future reporting periods and on foreseeable future transactions.

x.  Critical accounting estimates and judgements
The directors evaluate estimates and judgements incorporated into the ﬁnancial report based on historical knowledge and 
best available current information.

The Company makes estimates and judgements in applying the accounting policies. Critical judgements in respect of 
accounting policies relate to exploration assets, where exploration expenditure is capitalised in certain circumstances. 
Recoverability of the carrying amount of any exploration assets is dependent on the successful development and 
commercial exploitation or sale of the respective areas of interest.

Capitalisation and carrying amount of capitalised mining and exploration licences
Mining and exploration leases acquired are carried in the consolidated statement of ﬁnancial position at cost. 
The directors have determined that the carrying value is appropriate. 

Share-based payment transactions
The Group measures the cost of equity-settled share-based payment transactions with employees by reference to the 
fair value of the equity instruments at the grant date. The fair value is determined using a Black-Scholes model. The 
accounting estimates and assumptions relating to equity-settled share-based payments would have no impact on the 
carrying amounts of assets and liabilities within the next annual reporting period but may impact expenses and equity.

Impairment of capitalised exploration and evaluation expenditure
It is the Group’s policy to capitalise costs relating to exploration and evaluation activities. The future recoverability of capitalised 
exploration and evaluation expenditure is dependent upon a number of factors, including whether the Group decides to exploit 
the related lease itself or, if not, whether it successfully recovers the related exploration and evaluation asset through sale. 

Factors that could impact future recoverability include the level of reserves and resources, future technological changes 
which could impact the cost of mining, future legal changes (including changes to environmental restoration obligations) 
and changes to commodity prices.

To the extent that capitalised exploration and evaluation expenditure is determined not to be recoverable in the future, 
proﬁts and net assets will be reduced in the period in which the determination is made.

Income tax expenses and deferred tax
The Group is subject to income taxes in Australia. Signiﬁcant judgement is required in determining the provision for 
income taxes. There are certain transactions and calculations undertaken during the ordinary course of business 
for which the ultimate tax determination is uncertain. The Group estimates its tax liabilities based on the Group’s 
understanding of the tax law. Where the ﬁnal tax outcome of these matters is different from the amounts that were initially 
recorded, such differences will impact the current and deferred income tax assets and liabilities in the period in which 
such determination is made. 

In addition, the Group has recognised deferred tax assets relating to carried forward tax losses to the extent there are 
sufﬁcient taxable temporary differences (deferred tax liabilities) relating to the same taxation authority and the same 
subsidiary against which the unused tax losses can be utilised. Utilisation of the tax losses also depends on the ability of the 
entity to satisfy certain tests at the time the losses are recouped. Refer to note 5 for the current recognition of tax losses.

PEEL MINING LIMITED ANNUAL REPORT 2016

39

Notes to the Consolidated Financial Statements

2. Financial Risk Management

Overview
The Company and Group have exposure to the following risks from their use of ﬁnancial instruments:
•  Credit risk
•  Liquidity risk
•  Market risk

Credit risk
Credit risk is the risk of ﬁnancial loss to the Group if a customer or counterparty to a ﬁnancial instrument fails to meet its 
contractual obligations, and arises principally from the Group’s receivables from customers. The Group manages its credit risk 
on ﬁnancial instruments, including cash, by only dealing with banks licensed to operate in Australia and credit ratings of AA.

Trade and other receivables
The Group operates in the mining exploration sector and does not have trade receivables from customers. It does 
however have credit risk arising from other receivables. 

Exposure to credit risk
The carrying amount of the Group’s ﬁnancial assets represents the maximum credit exposure. The Group’s maximum 
exposure to credit risk at the reporting date was: 

Carrying amounts

Cash and cash equivalents

Trade and other receivables

Security Deposits

Consolidated

Note

6

7

8

2016
$

1,859,028

271,942

366,404

2015
$

2,974,741

111,260

387,904

Impairment losses
None of Group’s other receivables are past due. At 30 June 2016 the Group does recognise an impairment on a receivable 
from its joint venture partner in relation to expenses paid for by the Company in relation to the Mallee Bull tenement.

Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its ﬁnancial obligations as they fall due. The Group’s approach 
to managing liquidity is to ensure, as far as possible, that it will have sufﬁcient liquidity to meet its liabilities when due, under 
both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. 
The Group manages liquidity by maintaining adequate reserves by continuously monitoring forecast and actual cash ﬂows.

Typically the Group ensures it has sufﬁcient cash on hand to meet expected operational expenses for a period of 6 
months, including the servicing of ﬁnancial obligations; this excludes the potential impact of extreme circumstances that 
cannot reasonably be predicted, such as natural disasters.

30 June 2016

Trade and other payables

30 June 2015

Trade and other payables

Carrying
Amount
$

Consolidated

Contractual
Cash ﬂows
$

6mths
Or less
$

384,584

384,584

384,584

487,565

487,565

487,565

Market risk
Market risk is the risk that changes in market prices, such as interest rates, foreign exchange rates and equity prices will 
affect the Group’s income or the value of its holdings of ﬁnancial instruments. The objective of managing market risk is to 
manage and control market risk exposures to within acceptable limits, while optimising returns. The Group does not have 
any risks associated with foreign exchange rates or equity prices.

40

PEEL MINING LIMITED ANNUAL REPORT 2016

Notes to the Consolidated Financial Statements

Interest rate risk
Interest rate risk is the risk that the Group’s ﬁnancial position will be adversely affected by movements in interest rates 
that will increase the costs of ﬂoating rate debt or opportunity losses that may arise on ﬁxed rate borrowings in a falling 
interest rate environment. The Group does not have any borrowings and is, therefore, not exposed to interest rate risk in 
this area. Cash and cash equivalents at variable rates exposes the Group to cashﬂow interest rate risk. The Group is not 
exposed to fair value interest rate risk as all of its ﬁnancial assets and liabilities are carried at amortised amount. 

Proﬁle
At the reporting date the interest rate proﬁle of the consolidated entity’s interest-bearing ﬁnancial instruments was: 

Variable rate instruments

Short term cash deposits

Variable 
Average 
Interest Rate

Consolidated

Carrying Amount

2016
$

2015
$

2.00%

1,859,028

2,974,741

Cash ﬂow sensitivity analysis for variable rate instruments of the consolidated entity
At 30 June 2016 if interest rates had changed +/- 100 basis points from year end rates with all other variables held 
constant, equity and post-tax loss would have been $18,590 lower (2015: $29,747).

Fair values
The carrying values of all ﬁnancial assets and ﬁnancial liabilities, as disclosed in the Statement of Financial Position, 
approximate their fair values. 

3. Revenue & Other Income

Interest

Interest revenue

Other Income

Operator management fee income

Doubtful Debt Recovery

Other Income

Total

Expenses

Loss before income taxes includes the following speciﬁc expenses:

Employees and director’s beneﬁt expenses

Employee costs

Directors fees

Superannuation

Administration expenses

Corporate

Consultants

Bad debt expense

PEEL MINING LIMITED ANNUAL REPORT 2016

Consolidated

2016

$

2015

$

51,281

82,574

272,645

137,499

13,224

423,368

324,746

100,000

88,666

513,412

364,835

114,908

-

479,743

90,909

-

-

90,909

331,241

100,000

37,431

468,672

331,241

-

274,998

606,239

41

Notes to the Consolidated Financial Statements

5. Income tax

Income tax expense

Current tax

Deferred tax

Numerical reconciliation of income tax to prima facie tax payable:

Proﬁt/(loss) from continuing operations before income tax

At the statutory income tax rate of 30% (2015: 30%)

Expenditure not allowed for income tax purposes:

Non-deductible expenses

Reduced prior year tax losses from current year R&D refund

Beneﬁt of tax losses and timing differences not previously recognised

Tax losses not brought to account

Consolidated

2016

$

2015

$

-

(584,067)

-

627,229

(929,344)

(278,803)

58,956

-

(508,656)

144,436

(1,098,410)

(329,523)

2,884

1,745,890

(792,022)

-

Income tax expense reported in the statement of proﬁt and loss and 
other comprehensive income

(584,067)

627,229

Amounts recognised directly in equity

Aggregate current and deferred tax arising in the reporting
period and not recognised in net proﬁt or loss or other
comprehensive income but directly debited or credited to equity: 

Deferred tax: share issue costs recognised through equity

(43,163)

-

The Group has total carried forward tax losses arising in Australia of $10,941,653 (2015: $9,360,683) available for offset 
against future assessable income of the Group. The deferred tax asset in respect of these losses has been used to offset 
a deferred tax liability. The net deferred tax asset attributable to the residual tax losses of $481,453 has not been brought 
to account until convincing evidence exists that assessable income will be earned of a nature and amount to enable such 
beneﬁt to be realised.

Deferred taxes: the balance comprises temporary differences attributable to:

DTA – Deferred income

DTA – Provision for doubtful debts

DTA – Employee beneﬁts

DTA – Other

DTL – Exploration & Evaluation

DTL – Other Timing Differences

DTA – Tax Losses

Net deferred tax liability

1,090,925

300,170

41,250

58,574

21,079

-

5,885

-

(4,344,167)

(3,690,844)

(5,721)

(3,138,060)

3,138,060

-

(50,645)

(3,435,434)

2,808,205

(627,229)

42

PEEL MINING LIMITED ANNUAL REPORT 2016

Notes to the Consolidated Financial Statements

6. Cash & Cash Equivalents

Cash at bank and in hand

Term deposits with ﬁnancial institutions

Refer to Note 2 for the policy on ﬁnancial risk management

7.  Trade and other receivables

Receivable from JV Partner

Provision for doubtful debt

GST recoverable from taxation authority

Accrued income

Prepayments

Refer to Note 2 for the policy on ﬁnancial risk management

8. Receivables (Non-current)

Security deposits in relation to exploration tenements

9. Property. Plant & Equipment

Property

Freehold land (at cost)

Plant and equipment

Depreciating plant and equipment

Less accumulated depreciation

Total property, plant and equipment

Reconciliation

Carrying amount at beginning of year

Additions

Depreciation expense

Disposals 

Closing balance

10. Exploration assets

At cost

Reconciliation

Opening balance

Acquisition of exploration lease

Other exploration expenditure

Impairment Expense

Research and development tax incentive grant

Closing balance

Consolidated

2016

$

2015

$

359,028

1,500,000

1,859,028

124,741

2,850,000 

2,974,741

202,719

(137,499)

87,788

90,517

28,417

271,942

366,404

366,404

305,190

(274,998)

43,148

-

37,920

111,260

387,904

387,904

840,487

840,487

574,415

(403,143)

171,272

1,011,759

1,028,810

66,305

(82,267)

(1,089)

509,199

(320,876)

188,323

1,028,810

1,061,276

55,549

(88,015)

-

1,011,759

1,028,810

15,100,555

12,211,903

12,211,903

12,446,494

40,000

3,763,343

(145,309)

(769,383)

15,100,555

-

2,389,255

(5,011)

(2,618,835)

12,211,903

The recoverability of the carrying amount of the exploration and evaluation assets is dependent on the successful 
development and commercial exploitation, or alternatively the sale, of the respective areas of interest. 

PEEL MINING LIMITED ANNUAL REPORT 2016

43

Notes to the Consolidated Financial Statements

11. Subsidiary companies

The consolidated ﬁnancial statements incorporate the assets, liabilities and results of the following subsidiaries in 
accordance with the accounting policy described in note 1(b):

Name

Peel Environmental Services Limited

Apollo Mining Pty Ltd

Peel (CSP) Pty Ltd

Country of 
Incorporation

Australia

Australia

Australia

Class of 
Shares

Ordinary

Ordinary

Ordinary

12 Trade and other payables

Trade payables

Accrued expenses & other payables

13. Deferred Income

Funds from farm-out of asset to JOGMEC (a)

Total Deferred Income

Equity holding
2016

Equity holding
2015

%

100

100

Consolidated

2016

$

174,805

209,779

384,584

3,636,415

3,363,415

%

100

100

2015

$

363,948

123,617

487,565

909,658

909,658

(a) During the year, Peel Mining Limited continued with its farm-in arrangement with Japanese Oil, Gas & Metals 
National Corporation (JOGMEC) into the Group’s Cobar Superbasin Project (CSP). This saw JOGMEC pay the Group 
$2,999,433 for exploration on the project and management fees as part of their $4,000,000 earn-in over 3 years 
to acquire a 40% of the project. Post this requirement being met and audited, JOGMEC can spend an additional 
$3,000,000 to earn another 10%, bringing them to 50% ownership of the project. These amounts have been included 
in the Group’s Consolidated Statement of Cashﬂows and Consolidated Statement of Financial Position, however per 
the Group’s accounting policy (see note 1(m)), the contributions are recorded as deferred income, which will offset the 
capitalised expenditure incurred resulting in no gain or loss recognised (net effect) until the point in which the interest 
is taken up. Currently cash held by Peel Mining Limited of $182,437 is restricted to be used on the Cobar Superbasin 
Project under JOGMEC’s farm-in arrangement.

14. Contributed Equity

(a) Share capital

Consolidated and Parent Entity

2016

2015

Number of

Shares

$

Number of

Shares

$

Ordinary shares fully paid

132,585,969

17,959,537

132,485,969

17,942,191

(b) Movements in ordinary share capital

Opening balance, 1 July

132,485,969

17,942,191

132,085,969

17,911,805

Transaction costs on share issues

Adjustments to share issue costs and related tax

100,000

-

-

19,000

(1,654)

43,163

400,000

-

-

32,000

(1,614)

-

Closing balance, 30 June

132,585,969

18,002,700

132,485,969

17,942,191

(c) Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in 
proportion to the number of and amounts paid on the shares held.

On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, 
and upon a poll each share is entitled to one vote.

44

PEEL MINING LIMITED ANNUAL REPORT 2016

Notes to the Consolidated Financial Statements

(d) Options
Information relating to options issued during the year is set out in note 25.

(e) Capital risk management
In employing its capital the Company seeks to ensure that it will be able to continue as a going concern and in time 
provide value to shareholders by way of increased market capitalisation and/or dividends. In the current stage of 
its development, the Company has invested its available capital in acquiring and exploring mining tenements. As is 
appropriate at this stage, the Company is funded entirely by equity. As it moves forward to develop its tenements 
towards production, the Company will adjust its capital structure to support its operational and strategic objectives, by 
raising additional capital or taking on debt, as is seen to be appropriate from time to time given the overriding objective of 
creating shareholder value. In this regard, the board will consider each step forward in the development of the Company 
on its merits and in the context of the then capital markets, in deciding how to structure funding arrangements.

15. Reserves and accumulated losses

(i) Accumulated losses

Opening balance

Loss for the year

Closing balance

(ii) Share-based payments reserve

Opening balance

Option expenses (employee options)

Closing balance

Consolidated

2016

$

2015

$

(4,439,202) 

(345,277)

(4,784,479)

(2,713,564)

(1,725,638)

(4,439,202)

1,187,177

183,292

1,370,469

1,165,133

22,044

1,187,177

Nature and purpose of reserve
The share-based payment reserve represents the fair value of equity beneﬁts provided to directors and employees as 
part of their remuneration for services provided to the Company paid for by the issue of equity.

Share options and reserve movements

Opening balance

Expired during year

2016

2015

Options

$

Options

$

3,500,000

1,187,177

3,180,000

1,165,133

Issued to employees and contractors

2,200,000

183,292

1,000,000

22,044

Lapsed 

Exercised

Closing balance

(2,500,000)

(100,000)

-

-

(280,000)

(400,000)

-

-

3,100,000

1,370,469

3,500,000

1,187,177

Exercisable at 7 cents each on or before 4 December 2017

1,000,000

Exercisable at 50 cents each on or before 28 November 2015

-

Exercisable at 19 cents each on or before 19 October 2018

1,100,000

Exercisable at 21.6 cents each on or before 7 December 2018

1,000,000

-

-

-

-

1,000,000

2,500,000

-

-

3,100,000

3,500,000

PEEL MINING LIMITED ANNUAL REPORT 2016

-

-

-

-

45

Notes to the Consolidated Financial Statements

The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that 
may occur. The expected volatility reﬂects the assumption that the historical volatility is indicative of future trends, 
which may also not necessarily be the actual outcome. No other features of options granted were incorporated into the 
measurement of fair value (note 25).

16. Remuneration of Auditors

Amounts paid or due and payable to the PricewaterhouseCoopers

Audit and other assurance services

Auditing and reviewing ﬁnancial reports

Other assurance services*

Taxation services

Indirect taxation services

Total

Amounts paid or due and payable to ﬁrms other than 
PricewaterhouseCoopers

Auditing and reviewing ﬁnancial reports

Other assurance services

Total

* Relates to review of farm-in expenditure during the 2015 year.

17. Contingencies
The Group had no contingent assets or liabilities as at 30 June 2016 (2015: Nil). 

18. Commitments and contingencies

Operating lease commitments

Within one year

Later than a year but not later than ﬁve years

Later than ﬁve years

Consolidated

2016

$

2015

$

48,600

-

48,600

-

65,283

65,283

-

-

-

-

2,244

2,244

-

254,834

254,834

41,722

12,224

53,946

Consolidated

2016

$

2015

$

-

-

-

-

-

-

Operating lease commitments – Peel Mining Limited as lessee
The Company has entered into a commercial property lease agreement for its Perth ofﬁce, which has been on a on a 
month-by-month basis since July 2014.

Exploration commitments
Under the terms of mineral tenement licences held by the Group, minimum annual expenditure obligations are required to 
be expended during the forthcoming ﬁnancial year in order for the tenements to maintain a status of good standing. This 
expenditure may be subject to variation from time to time in accordance with the relevant state department’s regulations. 
The Group may at any time relinquish tenements and as such avoid the requirement to meet applicable expenditure 
requirement, or may seek exemptions from the relevant authority.

46

PEEL MINING LIMITED ANNUAL REPORT 2016

Notes to the Consolidated Financial Statements

Expenditure commitments at the reporting date but not recognised as liabilities are as follows:

Within one year

Later than a year but not later than ﬁve years

Later than ﬁve years

Consolidated

2016

$

2015

$

2,199,240

1,576,140

-

-

-

-

19. Segment information
Management has determined that the Group has three reportable segments, being mineral exploration under its joint 
venture with CBH Resources Limited at its Mallee Bull prospect, mineral exploration under its farm-in agreement with 
JOGMEC and the other being all other mineral exploration within Australia. The Group is focused only on mineral 
exploration and the Board monitors the Group based on actual versus budgeted exploration expenditure incurred for 
these three areas. This internal reporting framework is the most relevant to assist the Board with making decisions 
regarding the Group and its ongoing exploration activities, while also taking into consideration the results of exploration 
work that has been performed to date. Decisions regarding the Mallee Bull joint venture is also taken into account by 
the board, however exploration decisions are made by the Joint Venture committee, which is made up of members from 
both Peel Mining Limited and CBH Resources Limited. 

Revenue from external sources

Reportable segment proﬁt/(loss)

2016

$

Peel

2016

$

CSP

2016

$

2016

Mallee Bull

Total

264,865

-

-

264,865

Segment assets

8,248,207

3,878,090

3,986,016

16,112,313

Revenue from external sources

Reportable segment (loss)

2015

$

Peel

-

(93,026)

2015

$

CSP

2015

$

2015

Mallee Bull

Total

-

-

-

(93,026)

Segment assets

8,367,096

909,658

3,688,962

12,965,716

PEEL MINING LIMITED ANNUAL REPORT 2016

47

Notes to the Consolidated Financial Statements

Reconciliation of reportable segment (loss)

Reportable segment proﬁt/ (loss)

Interest & Other income

Unallocated expenses

Proﬁt/(loss) before tax

Reconciliation of reportable segment (assets)

Reportable segment assets

Cash

Unallocated Assets

Unallocated liabilities

Total Net Assets

20. Related Parties

(a) Compensation of key management personnel

Short-term employee beneﬁts

Post-employment beneﬁts

Long-term beneﬁts

Share-based payments

Consolidated

2016

$

264,865

64,505

(1,258,714)

(929,344)

16,112,314

1,859,028

638,346

(4,020,999)

14,588,689

2015

$

(93,026)

173,483

(1,178,866)

(1,098,409)

12,965,716

2,974,741

774,161

(2,024,452)

14,690,166

 2016

 $

 2015

 $

439,004

41,755

28,761

116,298

625,818

408,807

38,752

-

22,044

469,603

 (b) Other transactions with key management personnel
Simon Hadﬁeld, is a director of Resource Information Unit Pty Ltd (RIU) and RIU Conferences Pty Ltd. RIU leases 
ofﬁce space to the Company and charges rental lease fees on arm’s length commercial terms on a monthly basis. 
Total fees charged to the Company by RIU for the year ended 30 June 2016 were $63,501 (2015: $59,760). During 
the year the Company participated in conferences, to the value of $13,860 (2015: $17,380) organised by RIU 
Conferences Pty Limited. These amounts are included in losses for the year within administration expenses.
Aggregate amounts of each of the above types of “other transactions” with key management personnel of Peel 
Mining Limited:

Amounts recognised as expense

Management fees

Conferences

Consolidated

2016

$

2015

$

63,501

13,860

77,361

59,760

17,380

77,140

48

PEEL MINING LIMITED ANNUAL REPORT 2016

Notes to the Consolidated Financial Statements

21. Events after the reporting period
Peel Mining Limited conducted a capital raising post reporting date, which raised $2,992,000 (net of costs) via placement 
of 18,700,000 new ordinary shares to an institutional and sophisticated investors on 19 September 2016. No fees were 
incurred as part of the capital raising.

Other than above no other matters or circumstances have arisen since the end of the ﬁnancial period which signiﬁcantly 
affected or may signiﬁcantly affect the operations of the Group, the results of those operations or the state of affairs of 
the Group in future ﬁnancial years.

22. Reconciliation of cash ﬂows from operating activities to loss after income tax

Net cash outﬂow from operating activities

(751,056)

(937,969)

Consolidated

2016

$

2015

$

Adjustments for

Share-based payments

Depreciation

Exploration expenditure written off 

Reversal of Doubtful Debt

Adjustments to share issue costs and related tax

Change in Deferred Tax Liability

Change in operating assets and liabilities

Decrease in receivables

Decrease in payables

Proﬁt/(loss) after income tax

(183,292)

(82,267)

(145,309)

137,499

(43,163)

627,229

(7,899)

102,980

(22,044)

(88,015)

(5,011)

9,119

-

(627,229)

(67,605)

13,116

(345,277)

(1,725,638)

23. Non-cash investing and ﬁnancing activities
No non-cash investing and ﬁnancing activities were undertaken during the year (2015: nil).

24. Earnings/(Loss) per share

Consolidated

2016

2015

Basic earnings/(loss) per share

Loss from continuing operations attributable to the ordinary equity 
holders of the Company

Diluted earnings/(loss) per share

Loss from continuing operations attributable to the ordinary equity 
holders of the Company

Reconciliation of proﬁt/loss used in calculation of loss per share

(0.002)

(0.013)

(0.002)

(0.013)

Loss used in calculating basic loss per share

(345,277)

(1,725,638)

Weighted average number of shares used as the denominator

Weighted average number of shares used in calculating basic earnings/
loss per share

Adjustments for calculation of diluted earnings/loss per share

Consolidated

Number of Shares Number of Shares

2016

2015

132,555,832

132,453,002

Options

135,585,969

135,953,002

PEEL MINING LIMITED ANNUAL REPORT 2016

49

Notes to the Consolidated Financial Statements

Effect of dilutive securities
Options on issue at reporting date could potentially dilute earnings per share in the future. The effect in the current year is 
to reduce the loss per share hence they are considered anti-dilutive. Accordingly the diluted loss per share has not been 
disclosed.

25. Share–based payments

(a) Share-based payment expenses
During the year the Company has granted options to employees through its employee share option plan (ESOP).

Total expenses arising from share-based payment transactions recognised in the proﬁt and loss during the year were 
as follows:

2016

Number

Consolidated

2016

$

2015

Number

2015

$

Options granted to employees

1,200,000

80,393

-

-

(b) Director options
 Set out below are summaries of director’s options granted

2016

Number

Consolidated

2016

$

2015

Number

2015

$

Options granted to directors

1,000,000

102,899

1,000,000

22,044

30 June 2016

Grant 
date

Expiry 
date

Exercise 
price

Balance 
at start 
of the 
year

Granted 
during 
the year

Expired 
during 
the year

Exercised 
during the 
year

Balance 
at end of 
the year

Vested and 
exercisable at 
end of the year

$

Number

Number

Number

Number

Number

Number

18 Dec’12

28 Nov’15

$0.50 2,500,000

- 2,500,000

5 Dec’14

4 Dec’17

$0.07 1,000,000

-

7 Dec’15

7 Dec’18

$0.216

- 1,000,000

-

-

-

-

- 1,000,000

- 1,000,000

-

1,000,000

1,000,000

30 June 2015

Grant 
date

Expiry 
date

Exercise 
price

Balance 
at start 
of the 
year

Granted 
during 
the year

Expired 
during 
the year

Exercised 
during the 
year

Balance 
at end of 
the year

Vested and 
exercisable at 
end of the year

$

Number

Number

Number

Number

Number

Number

18 Dec’12

28 Nov’15

$0.50 2,500,000

-

5 Dec’14

4 Dec’17

$0.07

- 1,000,000

-

-

- 2,500,000

2,500,000

- 1,000,000

500,000

Fair value of options granted 
The assessed fair value at grant date of options granted to directors during the period ended 30 June 2016 was 9 cents 
per option (2015: 3 cents). The fair value at grant date is independently determined using a Black-Scholes option pricing 
model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant 
date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for 
the term of the option.

50

PEEL MINING LIMITED ANNUAL REPORT 2016

Notes to the Consolidated Financial Statements

The model inputs for options granted during the years ended 30 June 2016 and 2015 included:

Recipient

Non-exec Director Options

Managing Director Options

Options are granted for no 
consideration and vest accordingly

100% vest immediately

50% vest immediately
50% vest in one year from grant date 

2016

2015

Exercise Price

Grant Date

Expiry Date

Share Price at Grant Date

Expected Price Volatility

Expected Dividend Yield

Risk-free interest rate

21.6 cents

7 December 2015

7 December 2018

16 cents

100%

0.00%

2.19%

7 cents

5 December-14

4 December-17

5 cents

100%

0.00%

2.36%

(c) Employee share option plan
An employee share option plan, designed to provide long-term incentives for senior employees to deliver long-term 
shareholder returns, was established in June 2008. The plan was approved by shareholders at annual general meeting. 
Under the plan, participants are granted options of which 50% are vested immediately and the remainder after 12 months 
employment with the Company. 

Options granted under the plan carry no dividend or voting rights.

When exercisable, each option is convertible into one ordinary share at an exercise price of 19 cents.

Set out below are summaries of options granted under the plan.

30 June 2016

Grant 
date

Expiry 
date

Exercise 
price

Balance 
at start 
of the 
year

Granted 
during 
the year

Exercised 
during the 
year

Lapsed 
during 
the year 

Balance 
at end of 
the year

Vested and 
exercisable at 
end of the year

19 Oct’15

19 Oct’18

$0.19

-

1,200,000

100,000

-

1,100,000

500,000

$

Number

Number

Number

Number

Number

Number

Fair value of options granted 
The assessed fair value at grant date of options granted to employees during the period ended 30 June 2016 was 8 
cents per option The fair value at grant date is independently determined using a Black-Scholes option pricing model 
that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and 
expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of 
the option. No options were granted during the 2015 period. 

PEEL MINING LIMITED ANNUAL REPORT 2016

51

Notes to the Consolidated Financial Statements

The model inputs for options granted during the year ended 30 June 2016 included:

Employee Options

2016

2015

Options are granted for no 
consideration and vest accordingly

50% vest immediately
50% vest in one year from grant date

Exercise Price

Grant Date

Expiry Date

Share Price at Grant Date

Expected price volatility

Expected dividend yield

Risk-free interest rate

30 June 2015

19 cents

19 October 2015

19 October 2018

14 cents

100%

0.00%

1.82%

-

-

-

-

-

-

-

-

Grant 
date

Expiry 
date

Exercise 
price

Balance 
at start 
of the 
year

Granted 
during 
the year

Exercised 
during 
the year

Expired 
during the 
year 

Balance 
at end of 
the year

Vested and 
exercisable at 
end of the year

$

Number

Number

Number

Number

Number

Number

12 Sept’13

30 Jun’15

11 Jul’12

31 Jul’14

$0.50

$0.08

280,000

400,000

-

-

-

(280,000)

(400,000)

-

-

-

-

-

(d) Acquisition – Share based payment
Peel Mining Limited made no acquisitions using share based payments during the year.

(e) Weighted averages – Options
The weighted average exercise price $0.16 (2015: $0.45).

The weighted average fair value of options is $0.07 (2015: $0.19).

The weighted average remaining contractual life is 2.07 years (2015: 1.21years).

52

PEEL MINING LIMITED ANNUAL REPORT 2016

Notes to the Consolidated Financial Statements

26. Parent entity information 

Statement of ﬁnancial position

Current assets

Total assets

Current liabilities

Total liabilities

Net assets

Equity

Issued capital

Share option reserve

Accumulated losses

Total equity

Statement of proﬁt or loss and other comprehensive income

Interest Revenue

Other income

Comprehensive loss for the year

Total comprehensive loss for the year

Parent entity

2016

$

2015 

$

1,902,543

13,969,787

(304,393)

(307,343)

13,662,445

17,959,537

1,370,469

(5,667,563)

13,662,445

51,281

423,398

(201,752)

(201,752)

3,251,837

14,864,164

(470,063)

(473,013)

14,391,151

17,942,191

1,187,177

(4,738,217)

14,391,151

82,574

90,909

(1,725,638)

(1,725,638)

Commitments for the parent entity are the same as those for the consolidated entity and are set out in note 18.

The parent entity has not entered into a deed of cross guarantee nor are there any contingent liabilities at year end.

27. Interests in other entities
Peel Mining Limited has a 50% interest in a joint arrangement called the Mallee Bull Joint Venture which was formed after 
CBH Resources Limited completed their 50% earn-in to the Mallee Bull Project on 27th March 2015. The joint venture 
agreement in relation to the Mallee Bull Joint Venture require unanimous consent from all parties for all relevant activities. 
The two joint venture parties own the assets of the joint venture as tenants in common and their interest in assets and 
liabilities are several, separate and distinct.

This entity is therefore classiﬁed as a joint operation and the Group recognises its direct right to the jointly held assets, 
liabilities, revenues and expenses.

Peel Mining Limited is currently in a farm-in arrangement, through its wholly owned subsidiary Peel (CSP) Pty Ltd, with 
JOGMEC. JOGMEC is earning the right to a 50% interest in the tenements held by Peel (CSP) Pty Ltd through funding 
exploration expenditure. If JOGMEC decided to take up their interest at this point a joint arrangement is formed between 
the parties, in relation to the Cobar Superbasin Project, which requires unanimous consent from all parties for all relevant 
activities. The parties to the joint arrangement will own the assets of the joint arrangement as tenants in common and their 
interest in assets and liabilities are several, separate and distinct. If this is to occur the entity is would be classiﬁed as a 
joint operation and the Group would recognises its direct right to the jointly held assets, liabilities, revenues and expenses.

PEEL MINING LIMITED ANNUAL REPORT 2016

53

 
 
 
 
Directors’ Declaration

The board of directors of Peel Mining Limited declares that:

a.  the ﬁnancial statements, comprising the consolidated statement of proﬁt or loss and other comprehensive income, 

consolidated statement of ﬁnancial position, consolidated statement of cash ﬂows, consolidated statement of changes 
in equity and accompanying notes are in accordance with the Corporations Act 2001 and:

i. 

 comply with Accounting Standards and the Corporations Regulations 2001 and other mandatory professional report-
ing requirements: and

ii.  give a true and fair view of the ﬁnancial position as at 30 June 2016 and performance for the ﬁnancial year ended on 

that date of the consolidated entity.

b.  The Company has included in the notes to the ﬁnancial statements an explicit and unreserved statement of compliance 

with International Financial Reporting Standards.

c.  In the directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and 

when they become due and payable; 

d.  the board of directors have been given the declaration by the chief executive ofﬁcer and chief ﬁnancial ofﬁcer required 

by Section 295A of the Corporations Act 2001.

This declaration is made in accordance with a resolution of the board of directors and is signed for and on behalf of the 
directors by:

Rob Tyson
Managing Director
Perth, Western Australia
29th September 2016

54

PEEL MINING LIMITED ANNUAL REPORT 2016

Auditor’s Independence Declaration

PEEL MINING LIMITED ANNUAL REPORT 2016

55

Independent Auditor’s Report

56

PEEL MINING LIMITED ANNUAL REPORT 2016

Independent Auditor’s Report

PEEL MINING LIMITED ANNUAL REPORT 2016

57

Additional ASX Information

ASX BEST PRACTICE RECOMMENDATIONS 

This statement outlines the main corporate governance practices that were formally in place from 15 September 2014 
onwards. These corporate governance practices comply with the ASX Corporate Governance Council recommendations 
unless otherwise stated. 

BOARD OF DIRECTORS
The Board operates in accordance with the broad principles set out in its charter, which is available from the corporate 
governance information section of the Company website at www.peelmining.com.au.

ROLE AND RESPONSIBILITIES OF THE BOARD
The Board is responsible for ensuring that the Company is managed in a manner which protects and enhances the 
interests of its shareholders and takes into account the interests of all stakeholders. This includes setting the strategic 
directions for the company, establishing goals for management and monitoring the achievement of these goals. 

A summary of the key responsibilities of the Board include:

1.  Strategy – Providing strategic guidance to the Company, including contributing to the development of and approving the 

corporate strategy;

2.  Financial performance – Approving budgets, monitoring management and ﬁnancial performance;

3.  Financial reporting and audits – Monitoring ﬁnancial performance including approval of the annual and half-year ﬁnancial 

reports and liaison with the external auditors;

4.  Leadership selection and performance – Appointment, performance assessment and removal of the Managing Direc-
tor. Ratifying the appointment and/or removal of other senior management, including the Company Secretary and other 
Board members;

5.  Remuneration  –  Management  of  the  remuneration  and  reward  systems  and  structures  for  Executive  management 

and staff;

6.  Risk management – Ensuring that appropriate risk management systems and internal controls are in place; and

7.  Relationships with the exchanges, regulators and continuous disclosure – Ensuring that the capital markets are 

kept informed of all relevant and material matters and ensuring effective communications with shareholders.

The Company Secretary is accountable directly to the Board, through the Chairman, on all matters to do with the proper 
functioning of the board. All directors have direct access to the Company Secretary.

The Board has delegated to management responsibility for the day-to-day operation and administration of the Company 
is delegated by the board to the Managing Director. The Board ensures that the Managing Director and the management 
team is appropriately qualiﬁed and experienced to discharge their responsibilities and has in place procedures to assess 
the performance of the Managing Director and executive directors.

The roles of Chairman and Managing Director are not combined. The Managing Director is accountable to the Board for 
all authority delegated to the position.

Whilst there is a clear division between the responsibilities of the Board and management, the Board is responsible for 
ensuring that management’s objectives and activities are aligned with the expectations and risks identiﬁed by the Board. 
The Board has a number of mechanisms in place to ensure this is achieved including:

 › Board approval and monitoring of a strategic plan;

 › approval of annual and semi-annual budgets and monitoring actual performance against budget; and

 › procedures are in place to incorporate presentations to each Board meeting by ﬁnancial and operations management.

58

PEEL MINING LIMITED ANNUAL REPORT 2016

Additional ASX Information

COMPOSITION OF THE BOARD
The names, skills, experiences and period of ofﬁce of the Directors of the Company in ofﬁce at the date of this Statement 
are set out in the Director’s Report. A summary of these skills and experiences are provided in table 1.

The composition of the Board is determined using the following principles:

 › Persons nominated as Non-executive Directors shall be expected to have qualiﬁcations, experience and expertise of 
beneﬁt to the Company and to bring an independent view to the Board’s deliberations. Persons nominated as Executive 
Directors must be of sufﬁcient stature and security of employment to express independent views on any matter.

 › The Chairperson should ideally be independent, but in any case be Non-executive and be elected by the Board based 

on his/her suitability for the position.

 › The roles of Chairperson and Managing Director should not be held by the same individual.

 › All Non-executive Directors are expected voluntarily to review their membership of the Board from time-to-time taking 
into  account  length  of  service,  age,  qualiﬁcations  and  expertise  relevant  to  the  Company’s  then  current  policy  and 
programme, together with the other criteria considered desirable for composition of a balanced board and the overall 
interests of the Company.

 › The Company considers that the Board should have at least three Directors (minimum required under the Company’s 
Constitution) and to have a majority of independent Directors but acknowledges that this may not be possible at all times 
due  to  the  size of  the Company. Currently the Board has three Directors, with only Mr Hadﬁeild as independent. The 
number of Directors is maintained at a level which will enable effective spreading of workload and efﬁcient decision making.

The Board has accepted the following deﬁnition of an independent Director:

An independent Director is a Director who is not a member of management (a Non-executive Director) and who:

 › holds less than 5% of the voting shares of the Company and is not an ofﬁcer of, or otherwise associated directly or 

indirectly with, a shareholder of more than 5% of the voting shares of the Company;

 › within the last three years has not been employed in an executive capacity by the Company or another group member, 

or been a Director after ceasing to hold any such employment;

 › within the last three years has not been a principal of a material professional adviser or a material consultant to the 

Company or another group member, or an employee materially associated with the service provided;

 › is not a material supplier or customer of the Company or other group member, or an ofﬁcer of or otherwise associated 

directly or indirectly with a material supplier or customer;

 › has no material contractual relationship with the Company or another group member other than as a Director of the 

Company;

 › has not served on the board for a period which could, or could reasonably be perceived to, materially interfere with the 

Director’s ability to act in the best interests of the Company; and

 › is  free  from  any  interest  and  any  business  or  other  relationship  which  could,  or  could  reasonably  be  perceived  to, 

materially interfere with the Director’s ability to act in the best interests of the Company.

The materiality thresholds are assessed on a case-by-case basis, taking into account the relevant Director’s speciﬁc 
circumstances, rather than referring to a general materiality threshold.

PEEL MINING LIMITED ANNUAL REPORT 2016

59

Additional ASX Information

Table 1: Skills and Experience Matrix of Peel Mining Limited’s Directors

Area

Competence

Business and Finance

Leadership

Sustainability & Stakeholder

Accounting, Tax, Business Strategy, Corporate Financing, Financial Literacy, 
Agreements/Fiscal Terms and Risk Management

Business Leadership, Executive Management and Mentoring, Public Listed 
Company Experience

Community Relations, Corporate Governance, Environmental Issues, 
Government Affairs, Health & Safety, Human Resources, Industrial Relations 
and Remuneration

Industry Speciﬁc (Australia)

Precious Metals – Exploration & Production, Base Metals – Exploration & 
Production, Mining & Resources

The directors on the Board collectively have a combination of skills and experience in the competencies set out in the table 
above. These competencies are set out in the skills matrix that the Board uses to assess the skills and experience of each 
director and the combined capabilities of the Board. Where an existing or projected competency gap is identiﬁed, the Board 
will address those gaps. The Board does not currently consider that there are any existing or projected competency gaps.

INDEPENDENT PROFESSIONAL ADVICE AND ACCESS TO COMPANY INFORMATION
Each director has the right to seek independent professional advice on matters relating to his position as a director of the 
Company at the Company’s expense, subject to the prior approval of the Chairman, which shall not be unreasonably withheld. 

NOMINATION COMMITTEE / APPOINTMENT OF NEW DIRECTORS 
Because of the size of the Company and the size of the Board, the Directors do not believe it is appropriate to establish a 
separate Nomination Committee. The Board has taken a view that the full Board will hold special meetings or sessions as 
required. The Board are conﬁdent that this process for selection and review is stringent and full details of all Directors are 
provided to shareholders in the annual report and on the web. 

The composition of the Board is reviewed on an annual basis to ensure the Board has the appropriate mix of expertise 
and experience. Where a vacancy exists, through whatever cause, or where it is considered that the Board would beneﬁt 
from the services of a new Director with particular skills, the Board determines the selection criteria for the position based 
on the skills deemed necessary for the Board to best carry out its responsibilities and then appoints the most suitable 
candidate who must stand for election at the next general meeting of shareholders.

Non-executive directors are do not have written agreements setting out the key terms and conditions of their appointment 
because the Company’s constitution and the ASX Listing Rules govern the term of each director’s appointment. Directors 
are required to retire by rotation. Common law and the Corporations Act govern the duties of directors and members are 
required to approve the maximum fees paid to non-executive directors. Executive directors enter into an employment 
agreement which governs the terms of their appointment.

The Board undertakes appropriate checks prior to nominating a director for election by shareholders. These checks 
include a police and reference checks. Shareholders are provided with all material information in its possession 
concerning a director standing for election or re-election in the relevant notice of meeting.

An informal induction is provided to all new directors, which includes meeting with technical and ﬁnancial personnel to 
understand Peel Mining Limited’s business, including strategies, risks, company policies and health and safety. 

All directors are required to maintain professional development necessary to maintain their skills and knowledge needed 
to perform their duties. In additional to training provided by relevant professional afﬁliations of the directors, additional 
development is provided through attendance at seminars and provision of technical papers on industry related matters 
and developments offered by various professional organisations, such as accounting ﬁrms and legal advisors.

TERM OF OFFICE
Under the Company’s Constitution, the minimum number of Directors is three. At each Annual General Meeting, one third 
of the Directors (excluding the Managing Director) must resign, with Directors resigning by rotation based on the date of 
their appointment. Directors resigning by rotation may offer themselves for re-election.

60

PEEL MINING LIMITED ANNUAL REPORT 2016

Additional ASX Information

PERFORMANCE OF DIRECTORS AND MANAGING DIRECTOR
The performance of all Directors, the Board as a whole and the Managing Director and Company Secretary is 
reviewed annually.

The Board meets once a year with the speciﬁc purpose of conducting a review of its composition and performance.  
This review includes:

 › comparison of the performance of the Board against the requirements of the Board charter;

 › assessment of the performance of the Board over the previous twelve months having regard to the corporate strategies, 

operating plans and the annual budget;

 › review the Board’s interaction with management;

 › identiﬁcation of any particular goals and objectives of the Board for the next year;

 › review the type and timing of information provided to the directors; and

 › identiﬁcation of any necessary or desirable improvements to Board or committee charters.

A review was undertaken during the reporting period.

PERFORMANCE OF SENIOR EXECUTIVES
The Managing Director is responsible for assessing the performance of the key executives within the Company. This is to 
be performed through a formal process involving a formal meeting with each senior executive. The basis of evaluation of 
senior executives will be on agreed performance measures. 

A review of senior executives was undertaken during the reporting period. 

CONFLICT OF INTEREST
In accordance with the Corporations Act 2001 and the Company’s constitution, Directors must keep the Board advised, 
on an ongoing basis, of any interest that could potentially conﬂict with those of the Company. Where the Board believes 
a signiﬁcant conﬂict exists, the Director concerned does not receive the relevant Board papers and is not present at the 
Board meeting whilst the item is considered. Details of Directors related entity transactions with the Company are set out 
in the related parties note in the ﬁnancial statements.

DIVERSITY
Peel Mining Limited recognises the beneﬁts arising from employee and Board diversity, including a broader pool of high 
quality employees, improving employee retention, accessing different perspectives and ideas and beneﬁting from all 
available talent. Diversity includes, but is not limited to, gender, age, ethnicity and cultural background.

The Diversity Policy deﬁnes the initiatives which assist Peel Mining Limited with maintaining and improving the diversity 
of its workforce. A copy of the Diversity Policy can be found in the company’s Corporate Governance Framework on the 
Company’s website. The policy does not include a requirement also set Measurable Objectives for achieving gender 
diversity and monitor their achievement. Nor has the Board set measurable objectives for achieving gender diversity, 
given its current size and stage of development as an exploration company. However the board is striving to achieve the 
initiatives set out in the Policy. 

The policy was formally adopted by the Company on the 23 September 2015.

The respective proportions of men and women on the Board, in senior executive positions and across the whole 
organisation are set out in the table below:

Proportion of Women

Organisation as a whole

2 out of 11 (18%)

Executive Management Team

Board 

0 out of 2 (0%)

0 out of 3 (0%)

PEEL MINING LIMITED ANNUAL REPORT 2016

61

Additional ASX Information

REMUNERATION
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; and

 › Establish appropriate performance hurdles in relation to variable Executive remuneration.

A full discussion of the Company’s remuneration philosophy and framework and the remuneration received by Directors 
and Executives in the current year is included in the remuneration report, which is contained within the Report of 
the Directors.

There are no schemes for retirement beneﬁts for Non-executive Directors, other than superannuation.

BOARD REMUNERATION COMMITTEE 
Once the Board is of a sufﬁcient size and structure, and the Company’s operations are of a sufﬁcient magnitude, to assist 
the Board in fulﬁlling its duties, the Board will establish a Remuneration Committee. Until that time, the Board has taken 
a view that the full Board will hold special meetings or sessions as required. The Board are conﬁdent that this process is 
stringent and full details of remuneration policies and payments are provided to shareholders in the annual report and on 
the web. 

AUDIT AND RISK COMMITTEE
Due to the limited size of the Company and of its operations and ﬁnancial affairs, the use of a separate audit committee is 
not considered appropriate. The Board assures integrity of the ﬁnancial statements by:
a.  reviewing the Company’s statutory ﬁnancial statements to ensure the reliability of the ﬁnancial information presented 

and compliance with current laws, relevant regulations and accounting standards;

b.  monitoring compliance of the accounting records and procedures in conjunctions with the Company’s auditor, on 
matters overseen by the Australian Securities and Investments Commission, ASX and Australian Taxation Ofﬁce;
c.  ensuring that management reporting procedures, and the system of internal control, are of a sufﬁcient standard to 

provide timely, accurate and relevant information as a sound basis for management of the Group’s business;

d.  reviewing audit reports and management letters to ensure prompt action is taken;
e.  when required, nominating the external auditor and at least annually review the external auditor in terms of their 

independence and performance in relation to the adequacy of the scope and quality of the annual statutory audit and 
half-year review and the fees charged.

RISK OVERSIGHT AND MANAGEMENT
The Board determines the Company’s ‘risk proﬁle’ and is responsible overseeing and approving risk management strategy 
and policies, internal compliance and internal control systems. In summary, the Company policies are designed to ensure 
strategic, operational, legal, reputation and ﬁnancial risks are identiﬁed, assessed, effectively and efﬁciently managed and 
monitored to enable achievement of the Company’s business objectives.

The Company has exposure to economic risks, including general economy wide economic risks and risks associated 
with the economic cycle which impact on the price and demand for minerals which affects the sentiment for investment in 
exploration companies.

There will a requirement in the future for the Company to raise additional funding to pursue its business objectives. The 
Company’s ability to raise capital may be effected by these economic risks.

Company has in place risk management procedures and processes to identify, manage and minimise its exposure to 
these economic risks where appropriate. 

The operations and proposed activities of the Company are subject to State and Federal laws and regulations concerning 
the environment. As with most exploration projects and mining operations, the Company’s activities are expected to have 
an impact on the environment, particularly if advanced exploration or mine development proceed. It is the Company’s 
intention to conduct its activities to the highest standard of environmental obligation, including compliance with all 
environmental laws.

62

PEEL MINING LIMITED ANNUAL REPORT 2016

Additional ASX Information

The Board currently considers that the Company does not have any material exposure to social sustainability risk.

The Company’s Corporate Code of Conduct outlines the Company’s commitment to integrity and fair dealing in its 
business affairs and to a duty of care to all employees, clients and stakeholders. The code sets out the principles covering 
appropriate conduct in a variety of contexts and outlines the minimum standard of behaviour expected from employees 
when dealing with stakeholders.

The Board reviewed the Risk Management Framework, including the policies, procedures and the Company’s Risks 
during the reporting period.

A summary of Peel Mining Limited’s Risk Management review procedures can be found in the corporate governance 
information section of the Company website at www.peelmining.com.au.

Considerable importance is placed on maintaining a strong control environment. The Board actively promotes a culture of 
quality and integrity.

Control procedures cover management accounting, ﬁnancial reporting, compliance and other risk management issues.

No internal audit function is currently in place due to the size of the Company, however Board regularly assess the need 
for an internal audit function. The Board encourages management accountability for the Company’s ﬁnancial reports by 
ensuring ongoing ﬁnancial reporting during the year to the Board. Half yearly, the Financial Controller (or equivalent) and 
the Managing Director are required to state in writing to the Board that in all material respects:

Declaration required under s295A of the Corporations Act 2001 –

 › the ﬁnancial records of the Company for the ﬁnancial period have been properly maintained;
 › the ﬁnancial statements and notes comply with the accounting standards; 
 › the ﬁnancial statements and notes for the ﬁnancial year give a true and fair view; and
 › any other matters that are prescribed by the Corporations Act regulations as they relate to the ﬁnancial statements and 

notes for the ﬁnancial year are satisﬁed.

Additional declaration required as part of corporate governance –

 › the risk management and internal compliance and control systems in relation to ﬁnancial risks are sound, appropriate 

and operating efﬁciently and effectively.

These declarations were received for the June 2016 ﬁnancial year.

CODE OF CONDUCT
The Company has developed a Code of Conduct (the Code) which has been fully endorsed by the Board and applies 
to all directors and employees. The Code is regularly reviewed and updated as necessary to ensure it reﬂects the 
highest standards of behaviour and professionalism and the practices necessary to maintain conﬁdence in the 
Company’s integrity.

The Code of Conduct embraces the values of:

 › Integrity & Objectivity
 › Excellence
 › Commercial Discipline

The Board encourages all stakeholders to report unlawful/unethical behaviour and actively promotes ethical behaviour 
and protection for those who report potential violations in good faith.

PEEL MINING LIMITED ANNUAL REPORT 2016

63

Additional ASX Information

TRADING IN PEEL MINING LIMITED SECURITIES BY DIRECTORS, OFFICERS AND EMPLOYEES
The Board has adopted a speciﬁc policy in relation to Directors and ofﬁcers, employees and other potential insiders buying 
and selling shares. 

Directors, ofﬁcers, consultants, management and other employees are prohibited from trading in the Company’s shares, 
options and other securities if they are in possession of price-sensitive information.

The Company’s Security Trading Policy is provided to each new employee as part of their induction training. 

The Directors are satisﬁed that the Company has complied with its policies on ethical standards, including trading 
in securities.

CONTINUOUS DISCLOSURE
The Board has a Market Disclosure Policy to ensure the compliance of the Company with the various laws and ASX Listing 
Rule obligations in relation to disclosure of information to the market. The Managing Director is responsible for ensuring 
that all employees are familiar with and comply with the policy.

The Company is committed to:
a.  complying with the general and continuous disclosure principles contained in the Corporations Act and the 

ASX Listing rules;

b.  preventing the selective or inadvertent disclosure of material price sensitive information;
c.  ensuring shareholders and the market are provided with full and timely information about the Company’s activities; and
d.  ensuring that all market participants have equal opportunity to receive externally available information issued by 

the Company.

SHAREHOLDER COMMUNICATIONS STRATEGY
The Company recognises the value of providing current and relevant information to its shareholders. The Company has 
adopted a Shareholder Communications Strategy which can be accessed from Peel Mining Limited’s website at http://
www.peelmining.com.au/wp-content/uploads/2014/09/Peel-Mining-Ltd-Corporate-Governance-Framework-board-
approved-150914.pdf. 

Information is communicated to shareholders through the annual and half yearly ﬁnancial reports, quarterly reports 
on activities, announcements through the Australian Stock Exchange and the media, on the Company’s web site and 
through the Chairman’s address at the annual general meeting. After the Annual General Meeting, the Managing Director 
provides shareholders with a presentation. Afterwards all directors are available to meet with any shareholders and 
answer questions.

Shareholders are encouraged to contact the Company through the Contact Us section on Peel Mining Limited’s website, 
to submit any questions via email, or call.

The Company’s website provides communication details for its Share Registry, including an email address for shareholder 
enquiries direct to the Share Registry.

In addition, news announcements and other information are sent by email to all persons who have requested their name to 
be added to the email list. If requested, the Company will provide general information by email.

The Company will, wherever practicable, take advantage of new technologies that provide greater opportunities for more 
effective communications with shareholders.

The Company ensures that its external auditor is present at all Annual General Meetings to enable shareholders to ask 
questions relevant to the audit directly to the auditor.

COMPANY WEBSITE
Peel Mining Limited has made available details of all its corporate governance principles, which can be found in the 
corporate governance information section of the Company website at www.peelmining.com.au.

64

PEEL MINING LIMITED ANNUAL REPORT 2016

Additional ASX Information

PEEL MINING LIMITED ANNUAL REPORT 2016

65

Shareholder Information

Information relating to shareholders at 27 September 2016

Distribution of shareholders

Range

1 - 1,000

1,001 - 5,000

5,001 - 10,000

10,001 - 100,000

100,001 - 9,999,999,999

Total

Twenty largest shareholders

No. Ord

No. of Holders

Shares

%

46

127

124

423

152

10,296

414,421

1,055,577

18,368,562

131,437,113

151,285,969

0.01

0.27

0.70

12.14

86.88

100.00

No. Ord Shares

%%

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

POINT NOMINEES PTY LTD 

MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED 

HAMPTON HILL MINING NL 

ARIKI INVESTMENTS PTY LIMITED 

PERTH CAPITAL PTY LTD 

PERTH CAPITAL PTY LTD 

MR ROBERT MACLAINE TYSON 

MR MICHAEL HSIAU YUN LAN 

MR RICHARD JOHN DUNN 

CITICORP NOMINEES PTY LIMITED 

MR SIMON HADFIELD & MRS FIONA HADFIELD 

MR JONATHON TYSON & MR CHRIS TYSON & MR ROBERT TYSON 

ARIKI INVESTMENTS PTY LIMITED 

ARIKI INVESTMENTS PTY LIMITED 

DENKEY PTY LTD 

NALMOR PTY LTD JOHN CHAPPELL SUPER FUND A/C 

MR SIMON HADFIELD 

MR TREVOR HARRY ROHDE 

MR CALLAN HAROLD LOW & MRS ANTONIA MARY LOW 

MR HUGH BROWN & MRS TANYA BROWN 

15,422,890

15,000,000

11,000,000

9,900,000

9,241,223

4,126,366

3,877,625

3,687,017

3,500,858

2,780,000

2,195,560

2,030,000

2,000,000

1,650,000

1,300,000

1,300,000

1,250,000

1,043,749

991,399

955,887

10.19

9.91

7.27

6.54

6.11

2.73

2.56

2.44

2.31

1.84

1.45

1.34

1.32

1.09

0.86

0.86

0.83

0.69

0.66

0.63

93,252,574

62.27

Substantial shareholders

No. Ord Shares

%

1

2

3

4

66

HAMPTON HILL MINING NL AND ASSOCIATES

WILLIAM HODGSON AND ASSOCIATED COMPANIES

POINT NOMINEES PTY LTD 

RESOURCE CAPITAL FUND VI L.P.

24,578,184

15,920,000

15,422,890

15,000,000

16.25

10.52

10.19

9.91

PEEL MINING LIMITED ANNUAL REPORT 2016

Shareholder Information

At the prevailing market price of $0.15 per share there were 112 shareholders with less than a marketable parcel of shares 
at 27 September 2016.

At 27 September 2016 there were 872 holders of ordinary shares in the Company.

At the date of this report there were no shares or options restricted by the ASX.

Unquoted securities

At the date of this report the Company had 3,100,000 unlisted share options on issue. 

Voting Rights

The voting rights attaching to the ordinary shares, set out in Clause 12.11 of the Company’s Constitution are:

“Subject to any rights or restrictions for the time being attached to any class or classes of Shares, at meetings of 
Shareholders or classes of Shareholders:
1.  each Shareholder entitled to vote may vote in person or by proxy, attorney or Representative;
2.  on a show of hands, every person present who is a Shareholder or a proxy, attorney or Representative of a Shareholder 

has one vote; and

3.  on  a  poll,  every  person  present  who  is  a  Shareholder  or  a  proxy,  attorney  or  Representative  of  a  Shareholder  shall,  in 
respect of each fully paid Share held by him, or in respect of which he is appointed a proxy, attorney or Representative, 
have one vote for the Share, but in respect of partly paid Shares, shall have such number of votes being equivalent to 
the proportion which the amount paid (not credited) is of the total amounts paid and payable in respect of those Shares 
(excluding amounts credited)” 

PEEL MINING LIMITED ANNUAL REPORT 2016

67

68

PEEL MINING LIMITED ANNUAL REPORT 2016

PEEL MINING LIMITED ANNUAL REPORT 2016

peel mining limited  ABN 42 119 343 734  
  telephone +61 8 9382 3955   1/34 Kings Park Road WEST PERTH WA 6005
www.peelmining.com.au