PLATINA RESOURCES LIMITED
ABN 25 119 007 939
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2017
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Contents
Corporate Information
Chairman’s Letter to Shareholders
Annual Mineral Resources and Ore Reserves Statement
Review of Operations
Directors' Report
Auditor’s Independence Declaration
Consolidated Statement of Comprehensive Income for the year ended 30 June 2017
Consolidated Statement of Financial Position as at 30 June 2017
Consolidated Statement of Changes in Equity for the year ended 30 June 2017
Consolidated Statement of Cash Flows for the year ended 30 June 2017
Notes to the Financial Statements for the year ended 30 June 2017
Declaration by Directors
Independent Audit Report to the Members of Platina Resources Limited
Shareholder Information
Interests in Tenements
Corporate Governance Statement
Corporate Information
DIRECTORS
Robert Mosig
Brian Moller
Christopher Hartley
COMPANY SECRETARY
Paul Jurman
PRINCIPAL PLACE OF BUSINESS
Level 2, Suite 9,
389 Oxford Street
Mount Hawthorn, WA, 6016
Phone: +61 7 5580 9094
+61 8 9380 6761
Fax:
admin@platinaresources.com.au
Email:
COUNTRY OF INCORPORATION
Australia
REGISTERED OFFICE
c/- Corporate Consultants Pty Ltd
Level 2, Suite 9,
389 Oxford Street
Mount Hawthorn, WA, 6016
Phone: +61 8 9380 6789
SOLICITORS
HopgoodGanim Lawyers
Level 8, Waterfront Place
1 Eagle Street
Brisbane QLD 4000
SHARE REGISTRY
Link Market Services
Level 12 QV1 Building
250 St Georges Terrace
Perth WA 6000
Phone: 1300 554 474
AUDITORS
Bentleys
Level 9, 123 Albert Street
Brisbane QLD 4000
STOCK EXCHANGE LISTING
Australian Securities Exchange
ASX Code: PGM
INTERNET ADDRESS
www.platinaresources.com.au
AUSTRALIAN BUSINESS NUMBER
ABN 25 119 007 939
2 | PLATINA RESOURCES LIMITED Annual Report 2017
Chairman’s Letter to Shareholders
Chairman’s Letter to Shareholders
Dear Fellow Shareholder,
On behalf of the Board of Directors of Platina, I take pleasure in presenting the Annual Report for 2017.
The principal focus of Platina has been in advancing the Company’s Owendale Scandium, Cobalt, Nickel and Platinum
Project in central New South Wales, Australia.
During the year, the Company successfully raised some $7.1 million to fast-track completion of a Pre-Feasibility Study
(PFS), a significant achievement in what, at times, had been a challenging capital market.
The PFS was successfully completed in Q2 2017 and revealed robust scandium-cobalt-nickel project economics with an
identified average annual production target of 42 tonnes of scandium oxide after 2 year ramp up and a long mine life
with 21 years of initially high grade (610 ppm Sc) and a further 23 years of stockpile feed at moderate (500ppm Sc)
grade.
Additionally, work at Owendale has shown the new Mineral Resource estimate to position Owendale as the largest
and highest-grade scandium, cobalt and platinum deposit so far reported.
Platina is now progressing with examination of a number of options for future scandium oxide commercialisation,
including evaluation of possible pilot plant production and this will also involve investigating ways to vary the amount
of scandium oxide production to smaller amounts in the earlier years of mining and increasing production as the
market develops.
Platina retains full ownership of the Skaergaard project in Greenland and with recent improvements in Gold, Platinum
and Palladium prices, Platina remains focussed on ensuring shareholder value can be achieved from this project.
I would also like to mention the efforts over the past 12 months by our CEO Rob Mosig, our staff and technical team,
who have worked tirelessly to advance the Owendale project.
I would also like to thank our former Chairman Reg Gillard who retired on 1 January 2017 for his contribution to
Platina over many years and wish him well in his retirement.
On behalf of the Board, I would like to thank you for your support of the Company and I look forward to bringing you
further news as our development, marketing and exploration efforts continue.
Yours faithfully
Brian Moller
Chairman
Annual Mineral Resources and Reserves Statement
PLATINA RESOURCES LIMITED Annual Report 2017 | 3
Annual Mineral Resources and Ore Reserves Statement
Table 1: Statement of Current Mineral Resources and Ore Reserves – Owendale, New South Wales (June
2017)
Ore Reserves– at a 400 ppm Scandium cut-off announced 13 September 2017
Classification
Proven
Probable
Total
Tonnage
Dry Kt
2,225
1,765
3,990
Scandium
ppm
560
540
550
Nickel
%
0.13
0.13
0.13
Cobalt
%
0.09
0.08
0.09
Scandia
tonnes*
1,896
1,463
3,359
Cobalt
tonnes
2,027
1,483
3,510
Nickel
tonnes
2,905
2,252
5,157
Mineral Resources – at a 300 ppm Scandium cut-off announced 9 August 2017
Classification
Measured
Indicated
Inferred
Total
Tonnage
Dry Mt
Scandium
ppm
Platinum
g/t
Nickel
%
Cobalt
%
Scandia
tonnes*
Platinum
koz
Nickel
tonnes
Cobalt
tonnes
6.9
11.6
15.1
33.7
440
400
375
395
0.42
0.26
0.23
0.28
0.13
0.11
0.09
0.11
0.07
0.07
0.05
0.06
4,700
7,100
8,600
20,400
94
99
111
304
9,200
5,000
13,200
7,700
13,700
7,500
36,100
20,200
*Scandium is typically sold as Scandia or Scandium Oxide (Sc2O3) product and is calculated from scandium metal content and a 1.53
factor to convert to the oxide form
Table 2: Statement of Previous Mineral Resources– Owendale, New South Wales (June 2016 Annual
Report)
Previous Mineral Resources – at a 300 ppm Scandium cut-off (announced 12 July 2016)
Status
Measured
Indicated
Inferred
Total
Tonnage
Mt
Scandium
ppm
Platinum
g/t
Nickel
%
Cobalt
%
Scandia
tonnes*
Platinum
koz
Nickel
tonnes
Cobalt
tonnes
4.3
5.9
15.6
25.9
404
373
378
381
0.53
0.35
0.29
0.34
0.12
0.11
0.12
0.12
0.07
0.07
0.06
0.06
2,700
3,400
9,000
15,100
74
66
145
285
5,300
2,800
6,400
3,900
18,800
9,600
30,500
16,300
Estimated tonnages of Ore Reserves, where shown, are included in the Mineral Resource tonnage estimates.
Review of material changes
Platina undertook the first Mineral Resource update since 2013 in July 2016. This minor update included previous
drilling not previously assessed that was included in the 2016 Annual Report and is summarized in Table 2.
Subsequently Platina has reported two further Mineral Resource updates. The first in February 2017 incorporated
increases in scandium, nickel and cobalt grade derived from reassaying results and replacing the preferred assay
method following quality assurance assessments that incorporated assaying by neutron activation techniques. This
helped to confirm that current XRF analysis is reliable and that previous assaying ICP is biased low. It is noted that
much of the Mineral Resource still relies on ICP scandium analyses, which potentially understate the scandium
content.
A Mineral Resource drilling program was undertaken in 2017 targeting the proposed development area to significantly
upgrade the Mineral Resource classification, as well as collect other feasibility study data. The program was successful
and resulted in areas with thicker and higher grade scandium than previously predicted. The Mineral Resource was
updated in August 2017 with material improvements in average grade, increased tonnage and higher classification
(Table 1).
4 | PLATINA RESOURCES LIMITED Annual Report 2017
Annual Mineral Resources and Reserves Statement
The current Mineral Resource in Table 1 compared to that reported in the 2016 Annual Report (Table 2) shows a 30%
increase in total tonnage, a 35 % increase in scandium metal and an 80% increase in the Mineral Resource classified as
Measured or Indicated.
These improvements warranted the PFS results to be followed up with an update of the mine planning work. The
classification of all scheduled material allowed a maiden Ore Reserve to be prepared (Table 1).
Governance and Internal Controls
Mineral Resource and Ore Reserve statements for Platina during the last year for the Owendale project have been
undertaken by suitably qualified independent consultants each with over 30 years or relevant experience.
Sampling at Owendale used Aircore drilling which proved to have superior sample recovery compared to RC drilling.
All sampling was over 1 m regular intervals using standard riffle splitting sub sampling methods and commercial
laboratory sample preparation and assaying methods. Platina has pioneered new XRF assaying method in 2016
undertaking a comprehensive assaying quality assurance process to determine the suitability of XRF for the assaying of
scandium. ALS laboratories, a certified commercial laboratory with significant in-house QAQC expertise, have been
used for all primary assaying. ALS has worked closely with Platina to develop and test scandium assaying method
accuracy.
Assay batches continued use of in-house high grade scandium standards used throughout all of Platina drilling
programs as well as a number of other commercial certified reference materials. Extensive reassaying work has
allowed Platina to recalibrate its in-house standards using XRF and robust neutron activation techniques, which have
allowed the development of a reliable understanding of previous assay biases by older scandium assaying methods.
Drilling was undertaken by an exploration services company and a geological logging and sampling overseen by their
specialist laterite geologist. They also undertook accurate Differential Global Positioning System (“DGPS”) surveying of
the collars during the drilling program. All drilling was immediately back filled and rehabilitated after drilling.
Drilling include regular quality assurance samples with blanks, field duplicates and standards submitted blind to the
laboratory. Post assaying check samples are submitted and final assessments are in progress.
Platina maintains strong QAQC controls across all resource related work. Particular emphasis and considerable work
has been spent on deriving a more accurate assaying method for scandium
Platina have engaged a database management company, Maxwell Geoservices, to maintain their drill hole database in
Datashed and Microsoft Access.
Platina is yet to fully integrate the Helix data into their database as additional data entry and validation has been
progressively undertaken. Platina maintain their own drilling data to an acceptable standard incorporating QAQC data
and using external expertise.
Resource and reserve estimates were calculated by independent third parties (Owendale Mineral Resource by ResEval
Pty Ltd; Owendale Reserve by Measured Group Pty Ltd) and reported under JORC reporting frameworks. Various
visual and statistical checks were made to validate the results.
Annual Mineral Resources and Reserves Statement
PLATINA RESOURCES LIMITED Annual Report 2017 | 5
Table 3: Statement of Mineral Resources - Skaergaard, Greenland (June 2017 and June 2016)
Reef
Resource
Classification
Tonnes (kt) Au (g/t) Pd (g/t) Pt (g/t)
AUEQ
(g/t)
Au (Moz)
Pd
(Moz)
Pt
(Moz)
Combined Reefs
H0 + H3 + H5
Indicated
5,080
1.25
0.88
0.06
1.66
Inferred
197,140
0.87
1.35
0.11
1.51
0.20
5.49
0.14
0.01
8.53
0.68
Ind & Inf
202,220
0.88
1.33
0.11
1.52
5.69
8.67
0.69
Notes:
▪
The contained Au represents estimated contained metal in the ground and has not been adjusted for
metallurgical recovery
▪ AuEq = Au + Pt + (Pdx0.4); where the gold price is US$1,400/oz and the platinum price is US$1,400/oz and the
palladium price is US$560/oz. The metal equivalent calculation assumes 100% metallurgical recovery
▪ Cut-off grade = 1g/t AuEq
▪ Minimum thickness = 1m; parts below 1m thickness have been diluted to 1m. 10% reduction globally applied,
to reflect dyke intersections
▪ Resource split is approximately 44:26:30% between reefs H0:H3:H5
▪
The project is 100% held by Platina
Check list of assessment and reporting criteria as per JORC 2012 is on the Company website.
Review of material changes
Mineral Resources estimates for Skaergaard were prepared in accordance with the JORC Code, 2012 Edition reporting
framework by Wardell Armstong, UK. and reported by the Company in an ASX announcement dated 23 July 2013.
There has been no change to the Mineral Resources at Skaergaard from June 2016 to June 2017. No material
exploration activity took place at Skaergaard during the 2017.
Competent Person Statement
The information in this Annual Mineral Resources and Ore Reserves Statement is based on, and fairly represents
information and supporting documentation prepared by Mr. Robert Mosig, a Competent Person who is a Fellow of
The Australasian Institute of Mining and Metallurgy. Mr. Mosig is a Director of the Company. Mr. Mosig 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 for
Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Mosig has approved the Statement as a
whole and consents to its inclusion in the Annual Report in the form and context in which it appears.
NB: Readers’ attention is also drawn to the “Competent Person Statement” appearing on the last page of the Review
of Operations.
6 | PLATINA RESOURCES LIMITED Annual Report 2017
Review of Operations
Review of Operations
OWENDALE, NSW – SCANDIUM, COBALT, NICKEL AND PLATINUM PROJECT
Platina Resources Ltd 100% - EL7644
Project Summary
▪ World’s largest and highest-grade laterite-hosted scandium, cobalt, nickel, platinum deposit
▪ Positive Prefeasibility Study (PFS)
▪ Highest grade scandium and cobalt development opportunity
The Owendale Project is in central New South Wales, approximately 80km northwest of Parkes and 350km west of
Sydney (Figure 1). Owendale is one of the world’s highest-grade scandium deposits, and has potential to be Australia’s
first scandium producer with platinum, cobalt and nickel credits. Mineralisation is associated with the Owendale
Intrusive Complex, the majority of which is within the Company’s 100%-owned Exploration Licence.
Owendale is located only 7km north east of Clean TeQ Energy’s Syerston Scandium Project, which is the most
analogous project given its similar size and grade.
Figure 1: Owendale Project location
A PFS, released in July 2017, confirmed robust economics for Owendale and significant economic potential of the
scandium development option with low capex and fast payback.
The PFS highlights a simple, free dig open-pit mining operation, which will mine approximately 50,000 dry tonnes of
ore per annum for treatment and concentration off site to produce 42 tonnes of scandium oxide at 99.9% purity. Ore
will be mined in advance and stockpiled for blending and road transport to the process facility off-site. The PFS
considers a processing plant utilising a simple crushing and grinding circuit followed by a high-pressure acid leaching
circuit. Final processing of the scandium ore is carried out using solvent extraction, precipitation and filtration.
Owendale contains significant cobalt, allowing for viable production of cobalt as an important by-product. The current
PFS considered the recovery of cobalt, and higher cobalt has been targeted for initial production whilst maintaining
Review of Operations
PLATINA RESOURCES LIMITED Annual Report 2017 | 7
high scandium grade.
Table 1 provides a summary of the key outcomes and parameters of the PFS, for full details see ASX announcement
dated 10 July 2017.
Table 1. Owendale Project PFS Overview
Parameters
Operating
Annual process throughput
Annual scandia production
Average scandia recoveries
Average mined grade
Financial
Scandia price assumption
Capital costs (including 20% contingency on US$59.9m direct costs only)
Annual revenue (LOM average)
Annual cash costs (LOM average)
NPV (10%, pre-tax)
IRR (pre-tax)
Payback period
PFS Result
50ktpa
42ktpa
90.3%
610ppm Sc
US$1,500/kg
US$94m
US$58m
US$23m
US$180m
27%
3 to 4 years
The PFS is based on a portion of the Owendale North deposit, with additional Mineral Resources not included in the
PFS offering both a long-term mining proposition and scope to expand annual production as the global scandium
market develops.
The Measured, Indicated and Inferred Mineral Resource Estimation for the Owendale Scandium and Platinum Project
in Table 2 is reported in accordance with the JORC Code (2012).
Platina updated the Mineral Resource estimate in February 2017. A new Mineral Resource estimate and maiden Ore
Reserve was completed for Owendale subsequent to year end. The Mineral Resource estimate incorporated data
from the 3,792m drilling program completed in June 2017 and the results from a re-assaying program of historical
drilling.
Resource Table – Owendale Project
Table 2. Owendale Mineral Resource estimate at a 600 ppm Scandium cut-off (August 2017)
Classification Area
Measured
Indicated
Inferred
Total
Tonnage
Mt
0.71
0.56
0.27
1.54
Sc
ppm
690
675
645
675
Pt
g/t
0.39
0.29
0.22
0.32
Ni
%
0.17
0.17
0.14
0.16
Co
%
0.16
0.13
0.09
0.14
Scandia
t*
800
600
300
Pt
koz
9
5
2
Ni
t
1,200
900
400
Co
t
1,100
700
200
1,600
16
2,500
2,100
*Scandium is typically sold as Scandia or Scandium Oxide (Sc2O3) product and is calculated from scandium metal
content and a 1.53 factor to convert to the oxide form
The current scale and grade of the Owendale Measured and Indicated Mineral Resource provides the basis of mining
Ore Reserves (Table 3) which will be utilised in the upcoming feasibility study.
8 | PLATINA RESOURCES LIMITED Annual Report 2017
Review of Operations
Table 3: Owendale Total Ore Reserve (August 2017, 400 ppm Scandium cut-off)
Classification Area
Proven
Probable
Total
Tonnage
Dry kt
2,225
1,765
3,990
Sc
ppm
560
540
550
Co
%
0.09
0.08
0.08
Ni
%
0.13
0.13
0.13
Scandia
t*
1,896
1,463
3,359
Co
t
2,027
1,483
3,510
Co
t
2,905
2,252
5,157
The maiden Ore Reserve underpins the positive project economics including an optimized, mine schedule of an initial
35 years of high grade feed (HG, >550 ppm Sc), including an initial 5 years of high grade cobalt (0.18% Co head grade)
recovered as a by-product.
Platina completed an additional Mineral Resource estimate focusing on cobalt for the Owendale project with the
review undertaken in light of growing global demand for cobalt for industrial purposes. Owendale contains significant
cobalt mineralisation, which is expected to be extracted using similar pressure acid leach processing methods to what
is utilised for scandium. The Owendale cobalt Mineral Resource (Table 4) provides compelling evidence that
Owendale’s unique cobalt mineralisation, which is associated with the highest recorded scandium contents from a
laterite, will provide excellent financial credits in any potential future mining operation.
Table 4. Owendale Mineral Resource estimate at a 0.08% Cobalt cut-off (August 2017)
Classification Area
Measured
Indicated
Inferred
Total
Tonnage
Mt
3.9
6.2
7.5
17.6
Sc
ppm
370
345
245
310
Pt
g/t
0.5
0.27
0.22
0.30
Ni
%
0.31
0.21
0.21
0.23
Co
%
0.14
0.12
0.11
0.12
Scandia
t*
2,200
3,300
2,800
8,270
Pt
koz
63
55
52
Ni
t
11,970
13,000
15,500
Co
t
5,620
7,400
8,100
169
40,480
21,140
*Scandium is typically sold as Scandia or Scandium Oxide (Sc2O3) product and is calculated from scandium metal
content and a 1.53 factor to convert to the oxide form
ResEval Pty Ltd prepared the updated resource estimates with an emphasis on scandium as part of Platina’s planning
process for its PFS. The updated Mineral Resource estimate is consistent with the methodology adopted for the
resource estimate provided in the previous Annual Report. Changes to the estimate area are as a result of:
• Addition of 705 re-assayed Platina drill holes with updated results for Sc, Ni and Co.
•
The use of previous XRF results for Platina 2011 drilling and assaying for 9,061 samples with updated
results for Ni and Co.
• Addition of 136 new assayed aircore, reverse circulation and diamond drill holes for 3,792 m from the
April/June 2017 program completed with the intention to upgrade the Mineral Resource in the key
Owendale North development focus area to Measured and Indicated category and include some
exploration and extension drilling.
The resource estimate is essentially based on the scandium results from Platina drilling completed between 2010 and
2014 (mostly RC and some diamond core) and some reassayed older diamond core, for a total of 338 drill holes and 16
288 samples. Other older drilling with limited geochemistry has only been used to help inform Inferred Mineral
Resource areas.
A comparison of the statement provided in July 2016 and current Mineral Resource statement at the 300 ppm Sc cut-
off indicated a 30% increase in the size of the scandium Mineral Resource to 33.7 Mt at a 300 ppm cut-off level (up
from 25.9 Mt), and a 4% increase in scandium grade to 395 ppm (up from 380 ppm).
Of most significance is the high-grade scandium Mineral Resource at a 600 ppm cut-off level, which has increased
152% to 1.54 Mt @ 675 ppm Sc (up from 0.61 Mt @ 557 ppm Sc in July 2016).
Platina has a dual-track work program which will progress the scandium development option for its 100% owned
Owendale project as well as investigate the cobalt potential.
Review of Operations
PLATINA RESOURCES LIMITED Annual Report 2017 | 9
Project Development
As part of the PFS, the Company completed a preliminary environmental impact study, considering the Mine Site, the
transportation route between the Mine Site and the Processing Site, and the Processing Site. Environmental baseline
studies have been initiated at Owendale in preparation for the commencement of an environmental and social impact
assessment (ESIA) and mining lease application.
Positive metallurgical testing results were also returned during the PFS. The results successfully demonstrated that a
standard Pressure Acid Leach (“PAL”) process could dissolve the scandium (93%), cobalt (>97%) and nickel (>97%)
using 90 minute trials. These strong recoveries using a proven and patented process gave Platina confidence to
process quickly with further feasibility studies. Platina also conducted preliminary solvent extraction test work to
recover scandium from leach solution. So far excellent test results have been received with up to 99.3% extraction of
scandium from leach solution reported.
The Company is simultaneously seeking to secure binding offtake agreements for the supply of scandium oxide and
scandium based alloy metals from Owendale and to continue discussions with marketing partners to progress the
scandium commercialisation opportunity. Negotiations remain ongoing with multiple parties throughout the world.
Platina’s Owendale Project has great potential to become a dominant producer of scandium due to a number of
favourable characteristics of the project including its shallow depth allowing open pit mining and appreciable
Platinum, Cobalt and Nickel credits. In fact, the updated August 2017 Mineral Resource and the maiden Ore Reserve
position the Owendale Project as the largest and highest-grade scandium and cobalt development discovered, and has
potential to be Australia’s first scandium producer with platinum, cobalt and nickel credits.
SKAERGAARD, GREENLAND – GOLD AND PGM PROJECT
Platina Resources Ltd 100% - EL2007/01
Project Summary
▪ One of the World’s largest undeveloped gold deposits
▪ One of the largest palladium resources outside South Africa and Russia
No work was carried out at Skaergaard during the year other than maintenance of the camp.
The Skaergaard Gold & PGM Project is located on the East Coast of Greenland, approximately 400km west of Iceland
(Figure 2). It is one of the world’s largest undeveloped gold and palladium resources, and has an Indicated and
Inferred Mineral Resource estimate reported in accordance with the JORC Code (2012) of 203Mt @ 0.88g/t gold &
1.33g/t palladium at a 1 g/t gold equivalent (AuEq) cut-off grade and minimum mining thickness of 1.0m.
Mineralisation at Skaergaard is hosted in a layered intrusion, geologically akin to South Africa’s Bushveld Complex,
which hosts the majority of the world’s platinum group metals. More than 80% of the world’s palladium supply is
currently mined in South Africa and in Russia. However, the resource estimate completed for Skaergaard in 2013
confirmed the project, and Greenland, have one of the world’s largest palladium resources outside of these latter
regions. The Mineral Resource at Skaergaard includes both the Indicated and Inferred categories which have a
combined total of 5.7 million ounces of gold and 8.7 million ounces of palladium and 0.79 million ounces of platinum
confined within three reefs (H0, H3 and H5) of the Triple Group, which is the major location for all the gold and
platinum group metals (pgm) mineralisation within the Skaergaard Intrusion.
Mineralisation outcrops at surface, and extends to at least 1.1km vertical depth and more than 35,000m of diamond
drilling has been completed. Additional infill drilling is likely to increase the quantity of contained metal at Skaergaard.
In particular, the northern extent of the Skaergaard Intrusion shows excellent exploration potential.
Metallurgical test work identified that the unique properties of Skaergaard ore are amenable to gravity and flotation
processes, achieving excellent recoveries from both techniques. With the addition of a small leach circuit, it is
conceptually possible to produce gold ore on site. The implications of this are significant as it could allow for year-
round exports via light aircraft, rather than shipping a concentrate during the relatively short ice-free window that
occurs on the east coast of Greenland. Preliminary results are also encouraging in terms of titanomagnetite and
ilmenite recovery, demonstrating that those minerals are upgradable by a combination of magnetic separation and
flotation.
The Company maintains its own 20-person exploration camp at Skaergaard which also includes an airstrip, and
10 | PLATINA RESOURCES LIMITED Annual Report 2017
Review of Operations
messing facilities. The camp is utilized for both Skaergaard and the Qialivarteerpik exploration licences.
Figure 2: Plan of Skaergaard showing location and extent of Mineral Resource
Review of Operations
PLATINA RESOURCES LIMITED Annual Report 2017 | 11
QIALIVARTEERPIK, GREENLAND – MULTI-ELEMENT PROJECT
Platina Resources Ltd 100% - EL2012/25.
Project Summary
▪ Near to Skaergaard Exploration Licence 2007/01
Exploration Licence 2012/25 is referred to as Qialivarteerpik and is located on the East Coast of Greenland and
comprises the potential east extension of the Company’s Skaergaard Project.
No work was carried out during the year and the area was reduced in size from 207km2 to 16km2.
MUNNI MUNNI, WA - PGM AND GOLD PROJECT
Platina Resources Ltd 100% - M47/123-126 Artemis Resources earning 70%.
Situated in the Pilbara region of Western Australia, the Munni Munni Complex is one of Australia’s most significant
PGM occurrences. Platina has entered into a binding agreement with Artemis Resources providing for Artemis’
subsidiary Karratha Metals Pty Ltd to earn a 70% interest in the Mining Leases held by Platina by expending $750,000
in exploration over a three-year period, and must keep the tenements in good standing during that time.
COMPETENT PERSON STATEMENT
The information in this Director’s Report that relates to the Mineral Resources and Ore Reserves were last reported by
the Company in compliance with the 2012 Edition of the JORC Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves in market releases dated as follows:
• Owendale Maiden Scandium and Cobalt Reserve – 13 September 2017
• Owendale Measured, Indicated and Inferred Mineral Resource – 9 August 2017
• Platina delivers positive pre-feasibility study (PFS announcement) for the Owendale Scandium and Cobalt
Project – 10 July 2017
Skaergaard Indicated and Inferred Mineral Resource – 23 July 2013
•
The Company confirms that it is not aware of any new information or data that materially affects the information
included in the market announcements referred above and further confirms that all material assumptions
underpinning the production targets and all material assumptions and technical parameters underpinning the ore
reserve and mineral resource estimates contained in those market releases continue to apply and have not materially
changed.
The information in this Annual Report that relates to Exploration Results is based on information compiled by Mr
Robert Mosig who is a full time employee of Platina Resources Limited and who is a Fellow of The Australasian
Institute of Mining and Metallurgy. Mr Mosig has sufficient experience which is relevant to the style of mineralization
and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person
as defined in the 2012 Edition of the JORC Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves.
12 | PLATINA RESOURCES LIMITED Annual Report 2017
Directors’ Report
Directors' Report
Your Directors present their report together with the financial report for Platina Resources Limited (“the
Company”) and its controlled entity (“the Group” or “the consolidated entity”) for the year ended 30 June
2017 and the auditor’s report thereon.
DIRECTORS
The following persons were Directors of Platina Resources Limited during the financial year and up the date of
this report, unless otherwise stated:
Brian Moller, LL.B (Hons)
Non-Executive Chairman
Mr Moller was appointed as a Non-Executive Director on 30 January 2007 and appointed Non-Executive
Chairman on 1 January 2017.
Mr Moller is a partner with HopgoodGanim Lawyers and practices almost exclusively in the corporate area
with an emphasis on capital raising, mergers and acquisitions and corporate restructuring. Mr Moller acts for
many publicly listed resource and industrial companies in Australia, and regularly advises boards of directors
on corporate governance and related issues.
During the past three years, Mr Moller has also served as a director of the following ASX listed companies:
▪ DGR Global Ltd (since 2 October 2002)
▪ Aus Tin Mining Limited (since 1 December 2006)
▪ Dark Horse Resources Limited (formerly Navaho Gold Limited) (since 22 January 2003)
▪
Lithium Consolidated Mineral Exploration Limited (since 13 October 2016)
Mr Moller is also a director of ASX and TSXV listed Aguia Resources Limited (since 18 December 2013) and
Chairman of AIM and TSX listed SolGold plc.
Robert Mosig, MSc; FAusIMM; FAICD
Managing Director
Mr Mosig is a founding director of Platina Resources Limited. He held the position of Chairman of Platina
Resources Limited from 28 March 2006 until his appointment as Managing Director on 2 July 2009. Mr Mosig is
a geologist with over 30 years’ experience in platinum group metals, gold and diamond exploration. His
experience includes exploration using geology, geochemistry, geophysics and drilling; ore resource drilling and
calculation; metallurgical and engineering evaluation and environmental and economic evaluations; mining
and processing.
Mr Mosig holds no other (ASX listed) directorships.
Christopher Hartley, BSc; PhD; MIMMM; CEng; GAICD
Non-Executive Director
Dr Hartley was appointed as a Non-Executive Director of Platina Resources on 1 January 2017.
Dr Hartley has 40 years’ experience in the mining industry in a variety of roles relating to management and
development of mining and metallurgical operations. Most recently he spent five years with Bloom Energy in
the role of Technical Director Strategic Materials, leading a team that established secure and efficient supplies
of scandium oxide for their manufacturing operations in the USA. Prior to that he held roles with BHP Billiton
and its predecessor Billiton, as well as working as an independent consultant. He has been based in the
Netherlands, the UK, India and the USA and worked on projects in many more countries.
Dr Hartley holds no other (ASX listed) directorships.
Directors’ Report
PLATINA RESOURCES LIMITED Annual Report 2017 | 13
Reginald Gillard
Non-Executive Chairman – resigned 1 January 2017
Mr Gillard was appointed Non-Executive Chairman on 2 July 2009. Mr Gillard holds a Bachelor of Arts degree,
is a Justice of the Peace, a Fellow of the Certified Practising Accountants of Australia and a Fellow of the
Australian Institute of Company Directors.
Paul Jurman BCom, CPA
Company Secretary
Mr Jurman was appointed company secretary on 1 June 2016.
Mr Jurman is a Certified Practising Accountant with over 15 years’ experience and has been involved with a
diverse range of Australian public listed companies in company secretarial and financial roles. He is also
company secretary of ASX listed Nemex Resources Limited, Carnavale Resources Limited and Kangaroo
Resources Limited.
DIRECTORS’ MEETINGS
The number of meetings of Directors (including meetings of committees of directors) held during the year and
the number of meetings attended by each Director was as follows:
Board
Number of
meetings held
while in office
Meetings
attended
7
7
4
3
7
7
4
3
Brian Moller
Robert Mosig
Christopher Hartley
Reg Gillard
During the current financial year, the Board decided that given the size and scale of operations, the full Board
would undertake the roles previously undertaken by the Audit and Risk Committee and the Remuneration
Committee.
DIRECTORS’ INTERESTS IN SECURITIES
As at the date of this report, the interests of the Directors in the shares, options and performance rights of
Platina Resources Limited are shown in the table below:
Brian Moller
Robert Mosig
Ordinary Shares
-
4,481,335
Christopher Hartley
-
PRINCIPAL ACTIVITIES
Unlisted Options
Performance Rights
($0.20 @ 31-Dec-19)
2,000,000
6,000,000
2,000,000
-
2,500,000
-
The principal activities of the Group during the financial year were acquiring, exploring and developing mineral
interests, prospective for precious metals and other mineral deposits.
14 | PLATINA RESOURCES LIMITED Annual Report 2017
Directors’ Report
OPERATING RESULTS
The net loss of the Group for the year, after provision for income tax, amounted to $532,726 (2016: $373,648).
DIVIDENDS PAID OR RECOMMENDED
There were no dividends paid or recommended during the financial year.
REVIEW OF OPERATIONS
Information on the operations of the Group during the financial year and up to the date of this report is set out
separately in the Annual Report under Review of Operations.
REVIEW OF FINANCIAL CONDITION
Capital structure
In March 2017, 52,825,000 ordinary shares were issued at a price of $0.135 per share, raising $7,131,375 in
capital pursuant to a private placement. During the financial year, a number of changes took place to the
Company’s incentive securities as follows:
• On 8 July 2016, 2,000,000 shares were issued to Robert Mosig as a result of exercise of performance
rights upon satisfaction of the required performance hurdles. On 14 November 2016, 1,000,000
performance rights were issued to Robert Mosig following receipt of shareholder approval at the
Annual General Meeting. 350,000 performance rights were also issued on this date to an external
consultant. On 13 January 2017, 350,000 ordinary shares were issued to the consultant following the
exercise of those performance rights upon achieving the performance hurdles as determined by the
Board. On 13 January 2017, 750,000 ordinary shares were issued following the exercise of 750,000
performance rights by two consultants upon achieving the performance hurdles as determined by the
Board.
• 1,000,000 Unlisted options exercisable at $0.10 expired unexercised on 26 November 2016.
• On 2 May 2017, 11,000,000 unlisted options were issued to directors and officers of the Company,
following approval by shareholders in April 2017. Also, 6,000,000 unlisted options were issued as a
partial fee in relation to the capital raising in March 2017.
At 30 June 2017, the Company had 264,126,235 ordinary shares, 17,000,000 unlisted options (exercisable at
$0.20 each) and 2,500,000 performance rights on issue. As at the date of this report, the number and class of
securities on issue remains unchanged from that at 30 June 2017 apart from the issue of 1,000,000
performance rights to a consultant to the Company in September 2017.
Financial position
The net assets of the Group have increased by $6.3M from $23.3M at June 2016 to $29.6M at June 2017 due
largely to the following factors:
Increase in cash from capital raisings; and
▪
▪ Capitalised exploration expenditure; partly offset by
▪ Operating losses (corporate and administration costs)
The consolidated entity’s working capital, being current assets less current liabilities has increased from $3.1M
in June 2016 to $7.4M in June 2017.
Directors’ Report
PLATINA RESOURCES LIMITED Annual Report 2017 | 15
Treasury policy
The consolidated entity does not have a formally established treasury function. The Board is responsible for
managing the consolidated entity’s finance facilities. The Group does not currently undertake hedging of any
kind and is minimally exposed to currency risks.
Liquidity and funding
The consolidated entity has sufficient funds to finance its operations and exploration activities, and to allow
the consolidated entity to take advantage of favourable business opportunities, not specifically budgeted for,
or to fund unforeseen expenditure.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There were no significant changes in the state of affairs of the Group in the financial year except as disclosed in
this financial report.
AFTER BALANCE DATE EVENTS
No matter or circumstance has arisen since the end of the financial year, to the date of this report, that has
significantly affected, or may significantly affect, the operations of the Group, the results of those operations,
or the state of affairs of the Group in future financial years.
LIKELY DEVELOPMENTS, EXPECTED RESULTS, PROSPECTS AND BUSINESS STRATEGIES
Likely developments in the operations of the Group and the expected results of those operations in
subsequent financial years have been discussed where appropriate in the Annual Report under Review of
Operations.
There are no further developments of which the Directors are aware which could be expected to affect the
results of the Group’s operations in subsequent financial years.
Business Results
The prospects of the Group in progressing their exploration projects in Australia and Greenland may be
affected by a number of factors. These factors are similar to most exploration companies moving through
exploration phase and attempting to get projects into development. Some of these factors include:
▪
Exploration - the results of the exploration activities may be such that the estimated resources are
insufficient to justify the financial viability of the projects. Platina Resources undertakes extensive
exploration and product quality testing prior to establishing JORC compliant resource estimates and
to (ultimately) support mining feasibility studies. The Group engages external experts to assist with
the evaluation of exploration results and relies on third party competent persons to prepare JORC
resource statements. Economic feasibility modelling of projects will be conducted in conjunction with
third party experts and the results of which will usually be subject to independent third party peer
review.
▪ Regulatory and Sovereign - the Group operates in Australia and Greenland and deals with local
regulatory authorities in relation to the exploration of its properties. The Group may not achieve the
required local regulatory approvals to continue exploration or properly assess development
prospects. The Group takes appropriate legal and technical advice to ensure it manages its
compliance obligations appropriately.
▪
Social Licence to Operate – the ability of the Group to secure and undertake exploration and
development activities within prospective areas is also reliant upon satisfactory resolution of native
title and (potentially) overlapping tenure. To address this risk, the Group develops strong, long term
effective relationships with landholders with a focus on developing mutually acceptable access
16 | PLATINA RESOURCES LIMITED Annual Report 2017
Directors’ Report
arrangements. The Group takes appropriate legal and technical advice to ensure it manages its
compliance obligations appropriately. Mining tenements that the Group currently holds, or has
applied for, are subject to Native Title claims. The Group has a policy that is respectful of the Native
Title rights and is continuing to negotiate with relevant indigenous bodies.
▪
▪
▪
Environmental - All phases of mining and exploration present environmental risks and hazards.
Platina’s operations in Australia and Greenland are subject to environmental regulation pursuant to a
variety of state and municipal laws and regulations. Environmental legislation provides for, among
other things, restrictions and prohibitions on spills, releases or emissions of various substances
produced in association with mining operations. Compliance with such legislation can require
significant expenditures and a breach may result in the imposition of fines and penalties, some of
which may be material. Environmental legislation is evolving in a manner expected to result in stricter
standards and enforcement, larger fines and liability and potentially increased capital expenditures
and operating costs. Environmental assessments of proposed projects carry a heightened degree of
responsibility for companies and directors, officers and employees. The Group assesses each of its
projects very carefully with respect to potential environmental issues, in conjunction with specific
environmental regulations applicable to each project, prior to commencing field exploration. Periodic
reviews are undertaken once field exploration commences.
Safety - Safety is of critical importance in the planning, organisation and execution of Platina
Resources exploration activities. Platina Resources is committed to providing and maintaining a
working environment in which its employees are not exposed to hazards that will jeopardise an
employee’s health, safety or the health and safety of others associated with our business. Platina
Resources recognise that safety is both an individual and shared responsibility of all employees,
contractors and other persons involved with the operation of the organisation. The Group has a
comprehensive Safety and Health Management system, which is designed to minimise the risk of an
uncontrolled safety and health event and to continuously improving safety culture within the
organisation.
Funding - the Group will require additional funding to continue exploration and potentially move from
the exploration phase to the development phases of its projects. There is no certainty that the Group
will have access to available financial resources sufficient to fund its exploration, feasibility or
development costs at those times. The Group has no material financial commitments.
▪ Market - there are numerous factors involved with exploration and early stage development of its
projects, including variance in commodity price and labour costs, which can result in projects being
uneconomical.
ENVIRONMENTAL REGULATIONS
The Group’s operations are subject to significant environmental regulation under the law of the Australian
Commonwealth and State and of Greenland. The Group has a policy of complying with its environmental
obligations and at the date of this report, is not aware of any breach of such regulations.
Directors’ Report
PLATINA RESOURCES LIMITED Annual Report 2017 | 17
REMUNERATION REPORT (AUDITED)
This report outlays the remuneration arrangements in place for the Key Management Personnel (as defined
under section 300A of the Corporations Act 2001) of Platina Resources Limited. The information provided in
this remuneration report has been audited as required by section 308(3C) of the Corporations Act 2001.
The following were key management personnel of the consolidated entity at any time during the year and
unless otherwise indicated were key management personnel for the year:
Details of Key Management Personnel
(i)
Directors
Brian Moller
Robert Mosig
Christopher Hartley
Reginald Gillard
Non-Executive Director to 31 December 2016, Non-Executive Chairman
from 1 January 2017
Managing Director
Non-Executive Director – appointed 1 January 2017
Non-Executive Chairman – resigned 1 January 2017
There have been no other changes of Key Management Personnel after the reporting date and up to the date
the financial report was authorised for issue.
Remuneration philosophy
The Board reviews the remuneration packages applicable to the executive Director and non-executive
Directors on an annual basis. The broad remuneration policy is to ensure the remuneration package properly
reflects the person’s duties and responsibilities and level of performance and that remuneration is competitive
in attracting, retaining and motivating people of the highest quality. Independent advice on the
appropriateness of remuneration packages is obtained, where necessary, although no such independent
advice was sought during the financial year.
Remuneration is not linked to past company performance but rather towards generating future shareholder
wealth through share price performance. As a minerals explorer, the Company does not generate operating
revenues or earnings and company performance, at this stage, can only be judged by exploration success and
ultimately shareholder value. Market capitalisation is one measure of shareholder value but this is subject to
many external factors over which the Company has no control. Consequently linking remuneration to past
performance is difficult to implement and not in the best interests of the Company. Presently, total fixed
remuneration for senior executives is determined by reference to market conditions and incentives for out-
performance are provided by way of options or performance rights over unissued shares. The Directors
believe that this best aligns the interests of the shareholders with those of the senior executives.
All remuneration paid to key management personnel is valued at cost to the Group and charged to the profit
and loss account as an expense or capitalised as part of exploration expenditure as appropriate. Shares given
to directors and executives are valued as the difference between the market price of those shares and the
amount paid by the director or executive. Options and performance rights are valued using the Black-Scholes
methodology. There are no schemes for retirement benefits other than statutory superannuation for
executive directors.
Remuneration committee
During the current financial year, it was decided that, given the size and scale of the Company’s operations,
the full Board would undertake the roles previously undertaken by the Remuneration Committee. The Board
is considered to have sufficient legal, corporate, commercial and industry experience in the context of the
Company’s affairs to properly assess the remuneration issues required by the Group.
18 | PLATINA RESOURCES LIMITED Annual Report 2017
Directors’ Report
REMUNERATION REPORT (audited)
The Board assesses the appropriateness of the nature and amount of remuneration of Directors and senior
managers on a periodical basis by reference to relevant employment market conditions with the overall
objective of ensuring maximum stakeholder benefit from the retention of a high quality board and
management team.
Remuneration structure
In accordance with best practice corporate governance, the structure of non-executive Directors and executive
Director remuneration is separate and distinct.
Non-executive Directors remuneration
Objective
The Board seeks to set aggregate remuneration at a level which provides the Company with the ability to
attract and retain directors of the highest calibre, whilst incurring a cost which is acceptable to shareholders.
Structure
The Constitution and the ASX Listing Rules specify that the aggregate remuneration of non-executive Directors
shall be determined from time to time by a general meeting. An amount not exceeding the amount
determined is then divided between the directors as agreed. The present limit of approved aggregate
remuneration is $250,000 per year.
The Board reviews the remuneration packages applicable to the non-executive Directors on an annual basis.
The Board considers fees paid to non-executive directors of comparable companies when undertaking the
annual review process.
The appointment conditions of the non-executive Chairman, Mr Moller and non-executive Director Dr Hartley
are formalised in service agreements. Both non-executive Directors have contracts for service. Under the
Constitution of the Group, these appointments, if not terminated sooner, end on the date of retirement by
rotation. The Constitution requires one third of Directors retire each year at a general meeting of
shareholders. If re-elected at future general meetings of shareholders, the appointments continue for further
terms.
It has been agreed that Dr Hartley shall receive a fee of $50,000 plus statutory superannuation per annum
effective from his appointment date. Mr Moller was entitled to a fee of $51,000 per annum as a non-executive
Director up to 31 December 2016 and from 1 January 2017, upon his appointment as Chairman, is entitled to a
fee of $57,800 per annum. Mr Gillard, in his role as Chairman up to his resignation on 1 January 2017 was
entitled to a fee of $57,800 per annum (inclusive of superannuation). Non-executive Directors may also be
remunerated for additional specialised services performed at the request of the Board.
The remuneration of the non-executive Directors for the year ending 30 June 2017 and 30 June 2016 is
detailed in Table 1 of this report.
Executive Directors remuneration
Objective
The Company aims to reward the Managing Director with a level of remuneration commensurate with his
position and responsibilities within the Company and so as to:
• align the interests of the Managing Director with those of shareholders;
• link reward with the strategic goals and performance of the Company; and
• ensure total remuneration is competitive by market standards.
Directors’ Report
PLATINA RESOURCES LIMITED Annual Report 2017 | 19
REMUNERATION REPORT (audited)
Structure
Remuneration consists of the following key elements:
• Fixed remuneration
• Variable remuneration
Fixed remuneration
The level of fixed remuneration is set so as to provide a base level of remuneration that is both appropriate to
the position and is competitive in the market.
Fixed remuneration is reviewed annually by the Board and the process consists of a review of companywide,
business unit and individual performance, relevant comparative remuneration in the market and internal and,
where appropriate, external advice on policies and practice.
Mr Mosig renewed his employment agreement with Platina Resources Limited in November 2016 as the
Managing Director and Chief Executive Officer on the same terms and conditions as the previous agreement,
except that it is now a permanent term contract rather than a fixed term contract. Details of the employment
agreement with Mr Mosig are as follows:
Name
Term of Agreement
Robert Mosig
Managing Director
Ongoing commencing
28 November 2016
Base Salary
including
Superannuation
$323,000
Termination Benefit
Six months’ notice is required if Robert
Mosig terminates his employment with
the Group. The Group is required to give
Mr Mosig twelve months’ notice (or salary
in
in the event of
termination without cause or where the
control of the Company changes and he is
made redundant, or his role changes
significantly.
lieu of notice)
Executive Director remuneration for the year ending 30 June 2017 and 30 June 2016 is detailed in Table 1 of
this report.
Variable remuneration – Long Term Incentive (‘LTI’)
Objective
The objective of the LTI plan is to reward executives and senior managers in a manner that aligns this element
of remuneration with the creation of shareholder wealth.
As such LTI grants are only made to executives who are able to influence the generation of shareholder wealth
and thus have a direct impact on the Group’s performance.
Structure
LTI grants to Key Management Personnel are delivered in the form of options and performance rights. The
issue of options / performance rights as part of the remuneration packages of executive and non-executive
directors is an established practice of junior public listed companies and, in the case of the Company, has the
benefit of conserving cash whilst properly rewarding each of the directors.
20 | PLATINA RESOURCES LIMITED Annual Report 2017
Directors’ Report
REMUNERATION REPORT (audited)
Performance Rights Plan (PRP)
Shareholders approved the Company’s PRP at the Annual General Meeting held on 27 November 2015. The
PRP is designed to provide a framework for competitive and appropriate remuneration so as to retain and
motivate skilled and qualified personnel whose personal rewards are aligned with the achievement of the
Company’s growth and strategic objectives.
Employee Option Incentive Plan (“EOIP”)
Shareholders last approved the Platina Resources Limited EOIP at the General Meeting on 28 April 2017. The
EOIP is designed to provide incentives, assist in the recruitment, reward and retention of employees or key
consultants. Participation in the plan is at the Board’s discretion and no individual has a contractual right to
participate in the plan or receive any guaranteed benefit.
Directors’ Report
PLATINA RESOURCES LIMITED Annual Report 2017 | 21
REMUNERATION REPORT (audited) (continued)
Table 1: Remuneration details
The following table details, in respect to the financial years ended 30 June 2017 and 2016, the components of remuneration for each key management person of the
Group.
Directors:
Brian Moller (Non-Executive Chairman effective 01/01/2017,
Non-Executive Director prior to that)
2017 (ii)
2016
Robert Mosig (Managing Director & CEO)
2017 (iii)
2016
Christopher Hartley (Non-Executive Director appointed
01/01/2017)
2017 (iv)
2016
Reginald Gillard (former Non-Executive Chairman, resigned
01/01/2017)
2017
2016
Total, all specified Directors
2017
2016
Senior Management
Duncan Cornish (resigned 01/06/2016)
2017
2016
Total, Senior Management
2017
2016
Short-term employee benefits
Post-employment
benefits
Equity
Salary/Fees
$
Other
(i)
$
Superannuation/
Retirement Benefits
$
Share-based
payment
$
Total
$
54,400
51,000
303,387
327,124
25,000
-
26,393
52,906
409,180
431,030
-
100,833
-
100,833
-
120,568
-
-
-
-
-
120,568
-
-
-
-
-
-
-
19,616
22,793
2,375
-
2,507
4,894
24,498
27,687
-
-
-
-
2,921
-
59,426
116,443
57,321
51,000
502,997
466,360
2,921
-
30,296
-
-
-
65,268
116,443
-
6,748
-
6,748
28,900
57,800
619,514
575,160
-
107,581
-
107,581
Percentage of
Remuneration as
Share-based
payment
%
5.0
-
11.8
25.0
9.6
-
-
-
-
6.3
22 | PLATINA RESOURCES LIMITED Annual Report 2017
Director’s Report
REMUNERATION REPORT (audited) (continued)
(i)
(ii)
(iii)
(iv)
During the year ended 30 June 2017, following Board approval, Mr Mosig was paid out his accrued annual
leave and long service leave entitlements.
In May 2017, following shareholder approval, Mr Moller was granted 2 million unlisted options exercisable at
$0.20 expiring on 31 December 2019 whose value has been estimated at $45,300 over the vesting period and
the charge to the profit and loss account for the reporting period is $2,921 (2016 - $Nil).
In November 2016, following shareholder approval, Mr Mosig was granted 1 million (2016: 5 million)
performance rights whose value has been estimated at $55,620 (2016 - $175,000). These performance rights
were valued over the vesting period and the charge to the profit and loss account for the reporting period is
$50,663 (2016 - $116,443). In May 2017, following shareholder approval, Mr Mosig was granted 6 million
unlisted options exercisable at $0.20 expiring on 31 December 2019 whose value has been estimated at
$135,900 over the vesting period and the charge to the profit and loss account for the reporting period is
$8,763.
In May 2017, following shareholder approval, Dr Hartley was granted 2 million unlisted options exercisable at
$0.20 expiring on 31 December 2019 whose value has been estimated at $45,300 over the vesting period and
the charge to the profit and loss account for the reporting period is $2,921 (2016 - $Nil).
Shareholdings of Key Management Personnel
The numbers of shares in the Company held during the financial period by Directors and other Key Management
Personnel, including shares held by entities they control, are set out below:
Balance
1 July 2016
Granted as
Compensation
Performance
Rights Converted
Net Change
Other*
Balance
30 June 2017
Directors
Brian Moller
-
Robert Mosig (i)
2,481,335
Christopher Hartley
Reg Gillard
Total
-
2,293,334
4,774,669
-
-
-
-
-
-
2,000,000
-
-
-
-
-
(2,293,334)
-
4,481,335
-
N/A
2,000,000
(2,293,334)
4,481,335
* Net Change Other refers to shares held by Mr Gillard on his resignation date of 1 January 2017.
(i) On 8 July 2016, 2 million ordinary shares were issued to Mr Mosig following conversion of 2 million performance
rights which vested on 30 June 2016 upon meeting the Performance Hurdle of the Company completing various
capital raisings in May and June 2016.
Director’s Report
PLATINA RESOURCES LIMITED Annual Report 2017 | 23
REMUNERATION REPORT (audited) (continued)
Option holdings of Key Management Personnel
The numbers of options in the Company held during the financial period by Directors and other Key Management
Personnel, including options held by entities they control, are set out below:
Balance
1 July 2016
Options Granted
as Compensation
(ii)
Options Exercised
Options Expired
Balance
(i)
30 June 2017
Directors
Brian Moller
Robert Mosig
Christopher Hartley
Reg Gillard
Total
500,000
-
-
500,000
2,000,000
6,000,000
2,000,000
-
1,000,000
10,000,000
-
-
-
-
-
(500,000)
-
-
(500,000)
2,000,000
6,000,000
2,000,000
N/A
(1,000,000)
10,000,000
(i) 1,000,000 unlisted options expired unexercised on 26 November 2016.
(ii) During the financial year, the Company has granted 10 million (2016 – nil) options for nil consideration over
unissued ordinary shares in the Company to the following Key Management Personnel as part of their remuneration:
2017 Options
Number
granted
Fair value per
option at grant
date
Exercise price
per option
Grant Date
$
$
Expiry date
Number
vested at year
end
Maximum
total value of
grant yet to
vest
$
Directors
Brian Moller
Robert Mosig
Christopher Hartley
2,000,000 02/05/2017
6,000,000 02/05/2017
2,000,000 02/05/2017
$0.0227
$0.0227
$0.0227
$0.20
$0.20
$0.20
31/12/2019
31/12/2019
31/12/2019
-
-
-
42,379
127,137
42,379
The 2017 options have a market vesting condition being a daily volume weighted average share price of at least $0.25
over a period of at least 10 trading days.
Fair value of options granted
The fair values at grant date of options issued are determined using a Black-Scholes option pricing model that takes
into account the exercise price, the term of the options, 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 options. The model inputs for options granted included:
(a) Grant date
(b)
(c)
(d)
(e)
(f)
Exercise price
Expiry date
Share price at grant date
Expected price volatility of the Company’s shares
Risk-free interest rate
(g) Discount for market vesting condition
2 May 2017
$0.20
31 December 2019
$0.11
90%
2.08%
50%
No options have been exercised into shares during the year or up to the date of this report.
24 | PLATINA RESOURCES LIMITED Annual Report 2017
Director’s Report
REMUNERATION REPORT (audited) (continued)
Performance Rights of Key Management Personnel
Balance
1 July 2016
Performance
Rights Granted as
Compensation
Performance
Rights Exercised
Performance
Rights Expired
Balance
30 June 2017
Directors
Brian Moller
-
-
-
Robert Mosig (i) (ii)
3,500,000
1,000,000
(2,000,000)
Christopher Hartley
Reg Gillard
Total
-
-
-
-
-
-
3,500,000
1,000,000
(2,000,000)
-
-
-
-
-
-
2,500,000
-
-
2,500,000
(i) During the financial year, the Company has granted 1 million performance rights for nil consideration over
unissued ordinary shares in the Company to Mr Mosig as part of his remuneration (2016: 5 million) and details are
noted below:
2017
Performance Rights
Number
granted
Grant Date
$
Robert Mosig
1,000,000 14/11/2016
$0.0556
$
-
Vesting date
30/06/2018
Fair value per
right at grant
date
Exercise price
per right
Maximum
total value of
grant yet to
vest
$
34,235
Number
vested at year
end
-
2017 performance rights will vest subject to meeting specific performance conditions. The 2017 performance rights
have a market vesting condition being a daily volume weighted average share price of at least $0.20 for a consecutive
period of at least 20 trading days.
Fair value per
right at grant
date
Exercise price
per right
2016
Performance Rights
Number
granted
Grant Date
$
Robert Mosig
Tranche 1
Tranche 2
Tranche 3
2,000,000 08/12/2015
1,500,000 08/12/2015
1,500,000 08/12/2015
$0.05
$0.05
$0.05
(ii) Vesting conditions of the 2016 performance rights are as follows:
$
-
-
-
Number
vested at year
end
Vesting date
Maximum
total value of
grant yet to
vest
$
30/06/2016
30/06/2016
30/06/2018
2,000,000
n/a
-
-
-
29,278
Tranche 1 - 2 million Performance Rights vest upon the placement of a parcel of shares in the order of 30 million
shares with a share price in excess of the current share price of $0.06. The Test Date was 30 June 2016. On 8 July
2016, 2 million ordinary shares were issued to Mr Mosig following conversion of 2 million Performance Rights that
vested upon meeting the Performance Hurdle.
Tranche 2 - 1.5 million Performance Rights vest upon the receipt of funds or a contractual obligation by a third party
to fund a feasibility study costing approximately $3,000,000 to $4,000,000. The Test Date was 30 June 2016 and as the
vesting condition was not satisfied, 1.5 million Performance Rights lapsed; and
Tranche 3 - 1.5 million Performance Rights vest upon the entry into an agreement by a third party to fund the capital
costs of the scandium oxide plant, such cost being in the vicinity of $70 million. The Test Date for these 1.5 million
Performance Rights is 30 June 2018.
Director’s Report
PLATINA RESOURCES LIMITED Annual Report 2017 | 25
REMUNERATION REPORT (audited) (continued)
Each right is converted to one ordinary share upon vesting. The performance rights vest when the vesting conditions
are met. No performance rights will vest if the conditions are not satisfied, hence the minimum value of the
performance rights yet to vest is nil. The maximum value of the performance rights yet to vest has been determined
as the amount of the grant date fair value of the performance rights that is yet to be expensed.
The fair values at grant date of performance rights issued were determined using a Black-Scholes option pricing model
or Barrier model simulation that takes into account the exercise price, the term of the rights, the share price at grant
date and expected price volatility of the underlying share, and the risk free interest rate for the term of the rights. The
model inputs for performance rights granted in year ended 30 June 2017 and 2016 included:
(a) Grant date
(b)
Exercise price
(c)
(d)
(e)
(f)
Expiry date
Share price at grant date
Expected price volatility of the Company’s shares
Risk-free interest rate
14 November 2016 (2016: 8 December 2015
Nil (2016: Nil)
30 June 2018 (2016: 30 June 2016 -2018)
$0.08 (2016: $0.05)
100%
1.5%
Loans to key management personnel and their related parties
There were no loans outstanding at the reporting date to key management personnel and their related parties.
Other Transactions with Key Management Personnel
A number of key management persons, or their related parties, held positions in other entities that result in them
having control or significant influence over the financial or operating policies of these entities. Transactions between
related parties are on normal commercial terms and conditions unless otherwise stated.
• During the year ending 30 June 2017, HopgoodGanim, a legal firm of which Mr Brian Moller is a partner was paid
legal fees by the Group of $53,478 (2016: $46,758). There was an amount of $11,118 payable at the balance date.
End of Remuneration Report
26 | PLATINA RESOURCES LIMITED Annual Report 2017
Director’s Report
INDEMNIFICATION AND INSURANCE OF DIRECTORS, OFFICERS AND AUDITOR
Each of the Directors of Platina Resources Limited has entered into a Deed with Platina Resources Limited under the
terms of which the Company has provided certain contractual rights of access to its books and records to those
Directors.
Platina Resources Limited has insured all of the Directors and officers of Platina Resources Limited. The contract of
insurance prohibits the disclosure of the nature of the liabilities covered and amount of the premium paid. The
Corporations Act does not require disclosure of the information in these circumstances.
PROCEEDINGS ON BEHALF OF THE CONSOLIDATED ENTITY
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.
Moreover, the Group was not a party to any such proceedings during the year.
NON-AUDIT SERVICES
There have been no non-audit services provided by the Company’s auditor during the year (2016: Nil).
AUDITOR’S INDEPENDENCE DECLARATION
The lead auditor’s independence declaration for the year ended 30 June 2017 has been received and can be found on
the following page.
CORPORATE GOVERNANCE
In recognising the need for the highest standards of corporate behaviour and accountability, the directors of Platina
Resources Limited support and have adhered to the principles of corporate governance. Platina Resources Limited’s
Corporate Governance Statement can be found on page 66.
This report is signed in accordance with a resolution of the directors.
Robert Mosig
Managing Director
Brisbane
Date: 28 September 2017
28 | PLATINA RESOURCES LIMITED Annual Report 2017
Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income
For the year ended 30 June 2017
Note
2
3
3
4
Revenue and other income
Administration expenses
Depreciation and amortisation expense
Employee benefits expense
Exploration costs expensed
Marketing expenses
Occupancy expenses
Professional services
Share based payments
Operating Loss
Loss before income tax
Income tax benefit/(expense)
Net profit/(loss) for the year
Other comprehensive income
Other comprehensive income net of tax
Total comprehensive loss for the year
2017
$
2016
$
248,173
331,364
(315,009)
(1,846)
(176,043)
(5,564)
(66,494)
(3,582)
(259,131)
(107,789)
(687,285)
(687,285)
154,559
(532,726)
-
-
(241,850)
(3,573)
(218,200)
(27,087)
(11,328)
-
(303,835)
(164,072)
(638,581)
(638,581)
264,933
(373,648)
-
-
(532,726)
(373,648)
Earnings per share
Cents
Cents
Basic/diluted loss per share (cents per share)
7
(0.24)
(0.23)
The accompanying notes form part of these financial statements
Consolidated Statement of Financial Position
PLATINA RESOURCES LIMITED Annual Report 2017 | 29
Consolidated Statement of Financial Position
As at 30 June 2017
Note
2017
$
2016
$
Current Assets
Cash and cash equivalents
Trade and other receivables
Other current assets
Total Current Assets
Non-Current Assets
Property, plant and equipment
Exploration and evaluation expenditure
Other non-current assets
Total Non-Current Assets
TOTAL ASSETS
Current Liabilities
Trade and other payables
Total Current Liabilities
Non-Current Liabilities
Other provisions
Deferred tax liabilities
Total Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
Equity
Issued capital
Share Issue Costs
Share-based payments reserve
Accumulated losses
TOTAL EQUITY
8
9
12
10
11
12
13
13
13
14
15
The accompanying notes form part of these financial statements.
7,966,101
3,331,595
144,390
83,472
97,933
10,623
8,193,963
3,440,151
17,612
2,802
24,153,065
22,085,162
13,377
100,422
24,184,054
22,188,386
32,378,017
25,628,537
758,569
758,569
311,059
311,059
-
2,010,865
2,010,865
-
2,017,824
2,017,824
2,769,434
2,328,883
29,608,583
23,299,654
50,576,464
43,294,589
(2,907,913)
(2,291,404)
47,668,551
41,003,185
332,172
155,883
(18,392,140)
(17,859,414)
29,608,583
23,299,654
30 | PLATINA RESOURCES LIMITED Annual Report 2017
Consolidated Statement of Changes in Equity
Consolidated Statement of Changes in Equity
For the year ended 30 June 2017
Share Capital
Ordinary
Share-based
Payments
Reserve
Accumulated
Losses
Total
$
$
$
$
Balance at 30 June 2015
37,470,143
61,811
(17,485,766)
20,046,188
Share issue costs
Issue of shares
Performance rights issued
Performance rights converted
Sub total
Total Comprehensive loss
Balance at 30 June 2016
(170,247)
3,645,789
-
57,500
-
-
151,572
(57,500)
-
-
-
-
(170,247)
3,645,789
151,572
-
41,003,185
155,883
(17,485,766)
23,673,302
-
-
(373,648)
(373,648)
41,003,185
155,883
(17,859,414)
23,299,654
Share issue costs
Issue of shares
(616,509)
7,131,375
-
-
Performance rights and options issued
-
326,789
Performance rights converted
150,500
(150,500)
-
-
-
-
(616,509)
7,131,375
326,789
-
Sub total
Total Comprehensive loss
Balance at 30 June 2017
47,668,551
332,172
(17,859,414)
30,141,309
-
-
(532,726)
(532,726)
47,668,551
332,172
(18,392,140)
29,608,583
The accompanying notes form part of these financial statements.
Consolidated Statement of Cash Flows
PLATINA RESOURCES LIMITED Annual Report 2017| 31
Consolidated Statement of Cash Flows
For the year ended 30 June 2017
Note
2017
$
2016
$
Cash Flows from Operating Activities
Payments to suppliers and employees
Interest received
Other receipts
Net cash provided by (used in) operating activities
17
Cash Flows from Investing Activities
Proceeds from sale of investments
Payments for property, plant and equipment
Cash held as security deposit
Exploration and evaluation expenditure
Net cash provided by (used in) investing activities
Cash Flows from Financing Activities
Proceeds from issue of shares & options
Share Issue Costs
Net cash provided by (used in) financing activities
Net increase/(decrease) in cash held
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of financial year
8
The accompanying notes form part of these financial statements.
(1,024,203)
(816,675)
86,243
219,333
7,371
336,933
(718,627)
(472,371)
190,816
(16,656)
(11,006)
-
(2,925)
-
(1,535,235)
(559,517)
(1,372,081)
(562,442)
7,131,375
3,633,288
(406,161)
(162,826)
6,725,214
3,470,462
4,634,506
2,435,649
3,331,595
895,946
7,966,101
3,331,595
32 | PLATINA RESOURCES LIMITED Annual Report 2017
Notes to the Financial Statements
Notes to the Financial Statements for the year ended 30 June 2017
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of these consolidated financial statements are set out below. These
policies have been consistently applied to all the periods presented, unless otherwise stated. The financial statements are for the
Consolidated Entity (or “Group”) consisting of Platina Resources Limited (“Company”) and its subsidiary. For the purpose of
preparing the consolidated financial statements, the Company is a for-profit entity.
a.
Basis of preparation
The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting
Standards, other authoritative pronouncements of the Australian Accounting Standards Board, the Corporations Act 2001 and
other requirements of the law and Australian equivalents to International Financial Reporting Standards (AIFRS). The financial
report has been prepared on a historical cost basis, except where otherwise stated.
The financial report is presented in Australian dollars.
The Company is a listed public company, incorporated and domiciled in Australia that has operated during the year in Australia
and Greenland. The Group’s principal activities are evaluation and exploration of mineral interests, prospective for precious
metals and other mineral deposits.
b.
Statement of compliance with IFRS
The financial report was authorised for issue on 28 September 2017. It complies with Australian Accounting Standards, which
include Australian equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the
financial report, comprising the financial statements and notes thereto, complies with International Financial Reporting
Standards (IFRS).
c. Going Concern
The financial report for the year ended 30 June 2017 is prepared on a going concern basis.
The ability of the Group to continue as a going concern is principally dependent upon the ability of the Group to secure funds
by raising capital from equity markets, or sale of projects, and managing cash flow in line with available funds. The Group’s
operations require the raising of capital on an on-going basis to fund its planned exploration program and to commercialize
its projects.
The Company recorded a loss after tax of $532,726 for the year ended 30 June 2017 and has accumulated losses of
$18,392,140. However, the Company has successfully raised capital during the year, resulting in a year end cash balance of
$7.97m.
Management has prepared a detailed cash flow forecast for the next 12 months from the date of this report, and the
directors are satisfied that the going concern basis of preparation is appropriate and as a result the directors do not believe
there is any material uncertainty in respect of the Company's ability to continue as a going concern for the foreseeable
future.
d. Basis of Consolidation
Controlled Entities
The financial statements of controlled entities are included in the consolidated financial statements from the date control
commences until the date control ceases.
The acquisition of subsidiaries is accounted for using the purchase method of accounting. The purchase method of
accounting involves allocating the cost of the business combination to the fair value of the assets acquired and the liabilities
and contingent liabilities assumed at date of acquisition.
Details of controlled entities at balance date are included in Note 21.
Notes to the Financial Statements
PLATINA RESOURCES LIMITED Annual Report 2017 | 33
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
e. New standards and interpretations not yet adopted
A number of new standards, amendments to standards and interpretations are effective for future periods reporting, but
have not been applied in preparing these consolidated financial statements. Those which may be relevant to the Group are
set out below. The Group does not plan to adopt these standards early.
(i)
A summary of the most significant new standards is as follows:
AASB 9 Financial Instruments
•
•
•
•
Replaces AASB 139 for reporting periods beginning on or after 1 January 2018
Revised guidance on classification and measurement of financial instruments
New ‘expected credit loss’ model for calculating impairment on financial assets
Changes to the conditions required to apply hedge accounting
Apart from changing naming conventions, the Group does not expect the Standard to have any impact as the Group
does not have any complex financial instruments
AASB 15 Revenue from Contract with Customers
•
•
•
Replaces AASB 118 Revenue, AASB 111 Construction Contracts and Interpretation 13 Customer Loyalty
Programs for reporting periods beginning on or after 1 January 2018.
Establishes a comprehensive framework for determining whether, how much and when revenue is recognised.
The 5-step process for recognising revenue removes the focus from the transfer of “risk and reward” to
identification and completion of “performance obligations.”
At this stage the Group has not entered into any contracts with customers and it is therefore difficult to predict what
form any future contracts may take. As a result it is impractical to attempt to quantify the potential impact of this
standard.
AASB 16 Leases
•
•
•
Replaces AASB 117 Leases for reporting periods beginning on or after 1 January 2019.
Requires substantially all leases to be included in the Statement of Financial Position.
Requires all leases to be amortised over the interest component of the lease cost to be expensed, while the
principal component offsets the liability in the Statement of Financial Position.
At this stage the Group is yet to assess the expected impact of this Standard, but historically has not used extensive
Lease facilities.
34 | PLATINA RESOURCES LIMITED Annual Report 2017
Notes to the Financial Statements
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
f.
Income Tax
The income tax expense (revenue) for the year comprises current income tax expense (income) and deferred tax expense
(income).
Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using applicable
income tax rates enacted, or substantially enacted, as at the end of the reporting period. Current tax liabilities (assets) are
therefore measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as
well unused tax losses.
Current and deferred income tax expense (income) is charged or credited directly to equity instead of the profit or loss when
the tax relates to items that are credited or charged directly to equity.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts have been
fully expensed but future tax deductions are available. No deferred income tax will be recognised from the initial recognition
of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is
realised or the liability is settled, based on tax rates enacted or substantially, enacted at the end of the reporting period.
Their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the
related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is
probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.
Current tax assets and liabilities are offset where a legally enforceable right to set-off exists and it is intended that net
settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and
liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate to income
taxes levied where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and
liability will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be
recovered or settled.
g. Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation and
impairment losses.
Plant and equipment
Plant and equipment are measured on the cost basis.
The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable
amount from these assets. The expected net cash flows have been discounted to their present values in determining
recoverable amounts.
All repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they
are incurred.
Depreciation
The depreciable amount of all fixed assets is depreciated on a straight-line basis over their useful lives to the Group
commencing from the time the asset is held ready for use.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset Depreciation Rate
Plant and equipment 7.5% -40%
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are
included in the statement of comprehensive income.
Notes to the Financial Statements
PLATINA RESOURCES LIMITED Annual Report 2017 | 35
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
h. Exploration and Evaluation Expenditure
Costs in relation to exploration and evaluation expenditure are capitalised to the extent that:
i.
the rights to tenure of the areas of interest are current and the Group controls the area of interest in which the
expenditure has been incurred;
ii. such costs are expected to be recouped through successful development and exploitation of the area of interest, or
alternatively by its sale; or
iii. exploration and evaluation activities in the area of interest have not, at the reporting date, reached a stage which permits
a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant
operations in, or in relation to, the area of interest are continuing.
The statement of comprehensive income will recognise expenses arising from the excess of the carrying values of exploration
and evaluation assets over the recoverable amounts of these assets. Expenditure capitalised under the above policy is
amortised over the life of the area of interest from the date that that commercial production of the related mineral occurs.
In the event that an area of interest is abandoned or if the directors consider the expenditure to be of no value, accumulated
expenditure carried forward is written off in the year in which that assessment is made.
i.
Leases
Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as
expenses in the periods in which they are incurred.
Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over the life of the
lease term.
j.
Investments
Investments are valued at fair value as available-for-sale financial assets, as described below. The fair value is assessed from
the shares’ current market value.
k.
Financial Instruments
Recognition
Financial instruments are initially measured at fair value on trade date, which includes transaction costs, when the related
contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below.
Loans and receivables
These financial assets consist of trade and other receivables, which are measured at cost less any accumulated impairment
losses. There is a significant concentration of credit risk with the Australia Taxation Office, however management considers
credit risk of this entity to be extremely low.
Individually significant receivables are considered for impairment when they are past due or when other objective evidence is
received that a specific counterparty will default. Receivables that are not considered to be individually impaired are
reviewed for impairment in groups, which are determined by reference to the industry and region of a counterparty and
other shared credit risk characteristics. The impairment loss estimate is then based on recent historical counterparty default
rates for each identified group.
Financial Assets at fair value through profit or loss
Financial assets are valued at ‘fair value through profit or loss’ when they are either held for trading for the purpose of short
term profit taking, derivatives not held for hedging purposes, or when they are designated as such to avoid an accounting
mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel
on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are
subsequently measured at fair value with changes in carrying value being included in profit or loss.
Held-to-maturity investments
These investments have fixed maturities, and it is the Group’s intention to hold these investments to maturity. Any held-to-
maturity investments held by the Group are stated at amortised cost.
36 | PLATINA RESOURCES LIMITED Annual Report 2017
Notes to the Financial Statements
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
k.
Financial Instruments (Continued)
Available-for-sale financial assets
Available-for-sale financial assets include any financial assets not included in the above categories. Available-for-sale financial
assets are reflected at fair value. Unrealised gains and losses arising from changes in fair value are taken directly to equity,
except where losses are considered to be prolonged and extensive, in which case such losses are recognised in profit or loss.
Financial liabilities
Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal payments and
amortisation.
Fair Value
Fair value is determined based on current bid prices for all quoted investments.
Impairment
At each reporting date, the Group assesses whether there is objective evidence that a financial instrument has been
impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is
considered to determine whether an impairment has arisen. Impairment losses are recognised in profit and loss.
l.
Impairment of Assets
At each reporting date, the Group reviews the carrying values of its tangible and intangible assets to determine whether
there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the
asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value.
Any excess of the asset’s carrying value over its recoverable amount is expensed to profit and loss.
Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable
amount of the cash-generating unit to which the asset belongs.
m. Employee Benefits
Short-term employee benefits, including wages and payments made to defined contribution superannuation funds, are
recognised when incurred. Provision is made for the Group’s liability for employee benefits arising from services rendered by
employees to balance date. Employee benefits that are expected to be settled within one year have been measured at the
amounts expected to be paid when the liability is settled. Other non-current employment benefit obligations are discounted
using market yields on corporate bonds.
n. Equity settled compensation
The Group operates share-based compensation plans for employees. The element over the exercise price of the employee
services rendered in exchange for the grant of shares and options is recognised as an expense in the statement of
comprehensive income. The total amount to be expensed over the vesting period is determined by reference to the fair value
of the options granted.
o. Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments
with original maturities of twelve months or less, and bank overdrafts. Where applicable, bank overdrafts are shown within
short-term borrowings in current liabilities on the statement of financial position.
p. Revenue and Other income
Interest revenues are recognised on a proportional basis taking into account the interest rates applicable to the financial
assets.
All revenue is stated net of the amount of goods and services tax (GST).
Other income is recognised when the Group obtains a contractual right to obtain the income.
Notes to the Financial Statements
PLATINA RESOURCES LIMITED Annual Report 2017 | 37
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
q. Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not
recoverable from the Australian Tax Office. In these circumstances, the GST is recognised as part of the cost of acquisition of
the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown
inclusive of GST.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and
financing activities, which are disclosed as operating cash flows.
r. Provisions
Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is
probable that an outflow of economic benefit will result and that outflow can be reliably measured.
No provision has yet been recognised for mine restoration and rehabilitation costs because the definition above has not yet
been satisfied in relation to any of the mine sites operated by the Group.
s. Trade and Other Payables
Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services
received by the Group during the reporting period which remains unpaid. The balance recognised as a current liability with
the amount being normally within 30 days of reconciliation of the liability.
t.
Critical Accounting Estimates and Judgments
The directors evaluate estimates and judgments incorporated into the financial statements based on historical knowledge
and best available current information. Estimates assume a reasonable expectation of future events and are based on current
trends and economic data, obtained both externally and within the Group.
Key Estimates — Impairment
The Group assesses impairment at each reporting date by evaluating conditions specific to the Group that may lead to
impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value-in-use
calculations performed in assessing recoverable amounts incorporate a number of key estimates.
The Group performs a regular review of each area of interest to determine the appropriateness of continuing to carry
forward expenditure in relation to that area of interest. The review requires a number of estimates to be made.
No impairment has been recognised for the year ended 30 June 2017 (2016: $Nil), in respect of capitalised exploration costs
for areas of interest.
Key Judgements — Capitalisation of Exploration Costs
All expenditure incurred by the Group, including employee benefits, is assessed as to whether it should be capitalized as
exploration and evaluation expenditure or expensed through the statement of comprehensive income. This requires some
judgement; however expenditure is capitalized to the extent the Group believes it meets the criteria as set out in AASB 6
Exploration Expenditure.
Key Judgements - Share Based Payments
The Group measures the cost of equity-settled transactions by reference to the fair value of the equity instruments at the
date at which they are granted. The fair value of options with non-market conditions is determined by an internal valuation
using a Black-Scholes option pricing model taking into account the terms and conditions upon which the instruments were
granted. The fair value of performance rights with market conditions is determined by using a Black-Scholes option pricing
model or Barrier model simulation taking into account the terms and conditions upon which the instruments were granted.
38 | PLATINA RESOURCES LIMITED Annual Report 2017
Notes to the Financial Statements
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
u.
Foreign Currency Transactions and Balances
Functional and presentation currency
The functional currency of each of the Group’s entities is measured using the currency of the primary economic environment
in which that entity operates. The consolidated financial statements are presented in Australian dollars, which is the parent
entity’s functional currency.
Transactions and balances
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the
transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items measured
at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at
fair value are reported at the exchange rate at the date when fair values were determined.
Exchange differences arising on the translation of monetary items are recognised in profit or loss, except where deferred in
equity as a qualifying cash flow or net investment hedge.
Exchange differences arising on the translation of non-monetary items are recognised directly in other comprehensive
income to the extent that the underlying gain or loss is recognised in other comprehensive income; otherwise the exchange
difference is recognised in profit or loss.
Foreign exchange differences relating to qualifying assets are capitalised. Costs incurred in mining exploration are considered
to be part of qualifying assets and can be capitalised.
v. Government Grants
To the extent that contributions or rebates are received from taxation authorities, they are recognised in profit and loss as an
Income Tax Benefit.
w. Comparative Information
Where necessary, comparative financial information may be adjusted to improve comparability, or as required by the
adoption of new or revised accounting standards.
Notes to the Financial Statements
PLATINA RESOURCES LIMITED Annual Report 2017 | 39
NOTE 2
REVENUE
Interest revenue - Bank
Sale of investments1
Other income 2
Fair value change on Financial Assets held for sale1
Foreign exchange gain
2017
$
2016
$
88,357
110,816
7,487
-
-
243,734
49,000
-
248,173
-
80,143
331,364
1.
2.
During the period, Platina disposed of part of its shareholding in Artemis Resources Limited (“Artemis”) for gross proceeds of
$190,816 and recorded a gain of $110,816 on the sale. The balance of Artemis shares held at balance date have been marked
to market with$49,000 being the fair value change to the carrying amount of the investment in Artemis. Refer Note 12.
During the prior period, Platina entered an agreement with Artemis for Artemis to earn a 70% interest in the Munni Munni
project in WA. Consideration to Platina on completion of the Agreement, recorded in as other income, was $143,734 plus 100
million Artemis shares (valued at $0.001 per share).
NOTE 3
LOSS FOR THE YEAR
Loss for the year is derived after charging the following significant expenses:
Depreciation of property, plant and equipment
Share-based payments
NOTE 4
INCOME TAX EXPENSE
(a) The components of tax expense comprise:
Current tax
Deferred tax
(1,846)
(107,789)
(3,573)
(164,072)
(147,600)
(264,933)
(6,959)
-
Income tax expense/(benefit) reported in statement of comprehensive income
(154,559)
(264,933)
(b) The prima facie income tax on the loss is reconciled to the income tax
expense/(benefit) as follows:
Prima facie tax benefit on loss from ordinary activities before income tax 27.5% (2016:30%)
(189,003)
(191,574)
Add tax effect of:
-
-
non-allowable items
share options / performance rights expensed during period
Less Tax effect of:
Benefit of tax losses and temporary differences not brought to account
R&D Tax offset (benefit)
Income tax attributable to the Group
(c) Unrecognised deferred tax balances:
Net unrecognised tax losses
1,393
29,642
3,384
49,222
(157,968)
(138,968)
151,009
(147,600)
(154,559)
138,968
(264,933)
(264,933)
(3,095,066)
(3,216,731)
(d) Tax effects relating to each component of other comprehensive income:
Other comprehensive income
-
-
40 | PLATINA RESOURCES LIMITED Annual Report 2017
Notes to the Financial Statements
NOTE 5
KEY MANAGEMENT PERSONNEL
(a) Names and positions held by Group key management personnel in office at any time during the financial year are:
Director
Brian Moller
Position
Non-Executive Director – to 31 December 2016, Non-Executive Chairman – from 1
January 2017
Robert Mosig
Managing Director
Christopher Hartley
Non-Executive Director – from 1 January 2017
Reg Gillard
Non-Executive Chairman – resigned 1 January 2017
The key management personnel compensation included in “Employee benefits expense” and “Exploration Expenditure” is as
follows:
Short-term employee benefits
Post-employment benefits
Share-based payments
2017
$
529,748
24,498
65,268
619,514
2016
$
531,863
27,687
123,191
682,741
Individual Directors and executives compensation disclosures
Information regarding individual Directors and executives compensation and some equity instruments disclosures as permitted by
Schedule 5B to the Corporations Regulations 2001 is provided in the Remuneration Report section of the Directors’ Report. Apart
from the details disclosed in this note, no Director has entered into a material contract with the Company or the Group since the
end of the previous financial year and there were no material contracts involving Directors’ interests existing at year-end.
Loans to key management personnel and their related parties
There were no loans outstanding at the reporting date to key management personnel and their related parties.
Other Transactions with Key Management Personnel
A number of key management persons, or their related parties, held positions in other entities that result in them having control or
significant influence over the financial or operating policies of these entities. Transactions between related parties are on normal
commercial terms and conditions unless otherwise stated.
•
During the year ending 30 June 2017, HopgoodGanim, a legal firm of which Mr Brian Moller is a partner was paid legal fees by
the Group of $53,478 (2016: $46,758). There was an amount of $11,118 payable at the balance date.
•
Company secretarial services are charged to the Company by Corporate Consultants Pty Ltd (CCPL), a company in which Mr
Jurman has a beneficial interest. Total fees of $108,000 (2016: $6,000) were paid or were payable to Corporate Consultants
Pty Ltd, for provision of office space, administration, accounting and company secretarial services.
NOTE 6
AUDITOR’S REMUNERATION
Remuneration of the auditor of the Group for
- auditing or reviewing the financial report
- non-audit services
2017
$
2016
$
40,000
-
40,000
62,000
-
62,000
Notes to the Financial Statements
PLATINA RESOURCES LIMITED Annual Report 2017 | 41
NOTE 7
LOSS PER SHARE
Basic/diluted loss per share (cents per share)
Reconciliation of earnings to profit or loss:
Loss for the period
Earnings used to calculate basic EPS
Earnings used in the calculation of dilutive EPS
2017
$
2016
$
(0.24)
(0.23)
(532,726)
(532,726)
(532,726)
(373,648)
(373,648)
(373,648)
2017
Number
2016
Number
Weighted average number of ordinary shares on issue in calculating basic EPS
226,013,153
165,204,015
Weighted average number of options outstanding
17,000,000
1,000,000
Weighted average number of ordinary shares outstanding during the period used in
calculating dilutive EPS
226,013,153
165,204,015
Anti-dilutive options on issue not used in dilutive EPS calculation
17,000,000
1,000,000
NOTE 8
CASH AND CASH EQUIVALENTS
Cash at bank – deposit account
Cash at bank and in hand
Short-term bank deposits
Cash and cash equivalents
2017
$
2016
$
4,000,000
3,966,101
-
484,337
2,836,419
10,839
7,966,101
3,331,595
The average interest rate on the deposit accounts was 1.63% at 30 June 2017 (2016 = 1.3%)
The average effective interest rate on short-term bank deposits was 3.00% (2016 = 2.65%). These deposits have an average
maturity of 6 months.
The cash and cash equivalents balance above reconciles to the statement of cash flows.
NOTE 9
TRADE AND OTHER RECEIVABLES
CURRENT
GST receivable
Interest receivable
Other receivables
Total Receivables
139,518
2,230
2,642
144,390
25,495
116
72,322
97,933
42 | PLATINA RESOURCES LIMITED Annual Report 2017
Notes to the Financial Statements
NOTE 10
PROPERTY, PLANT AND EQUIPMENT
PLANT AND EQUIPMENT
Plant and equipment:
At cost
Accumulated depreciation
Total Plant and Equipment
(a) Movements in Carrying Amounts
2017
$
2016
$
782,289
(764,677)
17,612
765,633
(762,831)
2,802
Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the
current financial year:
Balance as at 1 July 2015
Additions
Depreciation expense
Balance at 30 June 2016
Additions
Depreciation expense
Balance at 30 June 2017
NOTE 11
EXPLORATION AND EVALUATION EXPENDITURE
Balance at beginning of financial year
Capitalised
Impaired
Plant and
Equipment
$
3,450
2,925
(3,573)
2,802
16,656
(1,846)
17,612
2017
$
2016
$
22,085,162
21,525,644
2,067,903
559,518
-
-
Exploration and evaluation expenditure capitalised – at cost
24,153,065
22,085,162
Recoverability of the carrying amount of exploration assets is dependent on the successful exploration and sale of minerals.
Notes to the Financial Statements
PLATINA RESOURCES LIMITED Annual Report 2017 | 43
NOTE 12
OTHER CURRENT ASSETS
CURRENT
Prepayments
Financial assets held for sale
NON CURRENT
Available for sale financial assets – investments in listed companies
Security deposits and Rental Bond
2017
$
2016
$
14,472
69,000
83,472
-
13,377
13,377
10,623
-
10,623
100,000
422
100,422
Available-for-sale financial assets comprise of an investment in Artemis which is listed on ASX. The shares in Artemis were received
as partial consideration for an agreement for Artemis to earn a 70% interest in the Munni Munni project in WA. The investment is
recorded at cost and is marked to market at the balance date of 30 June 2016 with changes recognised directly in other
comprehensive income. The Group is exposed to security price risk. This arises from investments held by the Group in entities listed
on a stock exchange. Due to the low value of the investment, security price risk is not considered material to the Group.
The Artemis shareholding is classified as a financial asset held for sale at 30 June 2017 as a portion of the shareholding was
disposed during the current financial year with the remainder disposed subsequent to year end. Available for sale financial assets
are level 1 financial assets as prescribed under the accounting standards on fair value.
NOTE 13
TRADE, OTHER PAYABLES AND PROVISIONS
CURRENT
Trade payables
Sundry payables and accrued expenses
Employee benefits
NON-CURRENT
Deferred tax liability
The Deferred tax liability has arisen on Mining and Exploration assets in Greenland.
NOTE 14
ISSUED CAPITAL
Fully paid ordinary shares 264,126,235 (2016: 208,201,235)
Share issue costs
2017
$
2016
$
645,029
107,148
6,392
758,569
103,090
84,936
123,033
311,059
2,010,865
2,017,824
2,017,824
2,017,824
50,576,464
43,294,589
(2,907,913)
(2,291,404)
47,668,551
41,003,185
44 | PLATINA RESOURCES LIMITED Annual Report 2017
Notes to the Financial Statements
NOTE 14
ISSUED CAPITAL (Continued)
(a) Ordinary Shares
Movements in Ordinary Shares
Balance at 1 July 2015
In October 2015, shares were issued as a result of exercise of options
On 8 December 2015, shares were issued to a consultant for services
provided.
On 13 January 2016 and 26 February 2016, shares were issued on exercise
of performance rights.
On 30 May 2016 and 6 June 2016, shares were issued pursuant to a private
placement
-
-
-
-
-
-
Number of Shares
$
156,813,183
37,470,143
8,888,052
250,000
533,289
12,500
875,000
37,500
12,000,000
780,000
On 24 June 2016, shares were issued pursuant to a private placement
29,000,000
2,320,000
On 24 June 2016, shares were issued on exercise of performance rights.
375,000
20,000
Less: Share issue costs
Balance at 30 June 2016
Balance at 1 July 2016
-
-
-
On 8 July 2016, ordinary shares were issued on exercise of performance
rights to Robert Mosig.
On 13 January 2017, ordinary shares were issued to consultants on exercise
of performance rights.
On 17 March 2017, ordinary shares were issued pursuant to a private
placement
Less: Share issue costs
Balance at 30 June 2017
-
(170,247)
208,201,235
41,003,185
208,201,235
41,003,185
2,000,000
100,000
1,100,000
50,500
52,825,000
7,131,375
-
(616,509)
264,126,235
47,668,551
Ordinary shares participate in dividends and the proceeds on the winding up of the Group in proportion to the number of shares
held. At Shareholders meetings, on a show of hands, every member present in person or by proxy, or attorney or representative
has one vote and upon a Poll every member present in person, or by proxy, attorney or representative shall in respect of each fully
paid share held, 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).
(b) Quoted Options
At the beginning of financial year
Options issued during financial year
Options exercised to fully paid shares
Options lapsed
Balance at end of financial year
(c) Unlisted Options
2017
Number
2017
$
2016
Number
2016
$
-
-
-
-
-
-
-
-
-
-
81,766,495
817,666
-
-
(8,888,052)
(88,881)
(72,878,443)
(728,785)
-
-
For information relating to the Group’s employee option plan, including details of options issued, exercised and lapsed during the
financial period and the options outstanding at period-end refer to Note 18 Share-based Payments.
For information relating to share options issued to key management personnel during the financial period, refer to Note 18 Share-
based Payments.
Notes to the Financial Statements
PLATINA RESOURCES LIMITED Annual Report 2017 | 45
NOTE 14
ISSUED CAPITAL (Continued)
2017 - Options to take up ordinary shares in the capital of the Company have been granted as follows:
Exercise
Period
Exercise
Price
Note
Opening
Balance
1 July 2016
Options
Issued
2016/17
Options
Exercised/
Cancelled
2016/17
Closing
Balance
30 June 2017
Vested /
Exercisable
30 June 2017
Options expiring 26 November
2016
Options expiring 31 December
2019
(i)
(ii)
$0.20
Options expiring 28 April 2019
(iii)
$0.20
Weighted average exercise price
($)
Number
Number
Number
Number
Number
$0.10
1,000,000
-
(1,000,000)
-
-
-
11,000,000
6,000,000
-
-
11,000,000
6,000,000
6,000,000
1,000,000
17,000,000
(1,000,000)
17,000,000
6,000,000
0.10
0.20
0.10
0.20
0.20
-
-
(i)
(ii)
(iii)
1,000,000 unlisted options expired unexercised on 26 November 2016.
11 million options were issued as part of the remuneration package for the Company’s directors and company secretary.
6 million options were issued to a corporate advisor as partial consideration for acting as the Lead Manager for the March
2017 share placement.
2016 - Options to take up ordinary shares in the capital of the Company have been granted as follows:
Exercise
Period
Options expiring 26 November
2016
Weighted average exercise price
($)
Note
Exercise
Price
Opening
Balance
1 July 2015
Options
Issued
2015/16
Options
Exercised/
Cancelled
2015/16
Closing
Balance
30 June 2016
Vested /
Exercisable
30 June 2017
Number
Number
Number
Number
Number
$0.10
1,000,000
1,000,000
0.10
-
-
-
-
-
-
1,000,000
1,000,000
1,000,000
1,000,000
0.10
0.10
The weighted average contractual life of the unlisted options is 27.2 months (2016: 6 months).
None of the options have any voting rights, any entitlement to dividends or any entitlement to the proceeds of liquidation in the
event of a winding up.
(d) Performance Rights
2017 - Performance Rights over ordinary shares in the capital of the Company have been granted as follows:
Grant date
Expiry Date
Note
Opening
Balance
1 July 2016
Number
Rights
Issued
2016/17
Number
Exercised/
Cancelled
2016/17
Closing
Balance
30 June 2017
Vested /
Exercisable
30 June 2017
Number
Number
Number
8 December 2015
30 June 2016 &
30 June 2018
(i)
3,500,000
18 February 2016
31 January 2017
14 November 2016
30 June 2018
14 November 2016
31 January 2017
(ii)
(iii)
(iv)
750,000
-
-
-
-
(2,000,000)
1,500,000
(750,000)
-
1,000,000
-
1,000,000
350,000
(350,000)
-
4,250,000
1,350,000
(3,100,000)
2,500,000
-
-
-
-
-
46 | PLATINA RESOURCES LIMITED Annual Report 2017
Notes to the Financial Statements
NOTE 14
ISSUED CAPITAL (Continued)
2016 - Performance Rights over ordinary shares in the capital of the Company have been granted as follows:
Grant date
Expiry Date
Note
18 October 2013
18 November 2016
11 February 2015
31 January 2016
8 December 2015
30 August 2018
18 February 2016
31 January 2017
8 December 2015
30 June 2016
(v)
(v)
(i)
(ii)
(ii)
Opening
Balance
1 July 2015
Rights
Issued
2015/16
Exercised/
Cancelled
2015/16
Closing
Balance
30 June 2016
Vested /
Exercisable
30 June 2016
Number
Number
Number
Number
Number
250,000
750,000
-
(250,000)
(750,000)
-
-
-
-
5,000,000
(1,500,000)
3,500,000
2,000,000
-
-
-
750,000
-
750,000
250,000
(250,000)
-
-
-
-
1,000,000
6,000,000
(2,750,000)
4,250,000
(i)
On 8 December 2015, 5 million performance rights were granted to Rob Mosig and vest subject to meeting specific
performance conditions as follows.
•
•
•
(ii)
(iii)
(iv)
(v)
2 million Performance Rights vest upon the placement of a parcel of shares in the order of 30 million shares with a share
price in excess of the current share price of $0.06. The Test Date for these 2 million Performance Rights was 30 June
2016. The Company completed share placements in May and June 2016 satisfying the performance condition and, on 8
July 2016, 2 million ordinary shares were issued to Mr Mosig following conversion of 2 million Performance Rights.
1.5 million Performance Rights vest upon the receipt of funds or a contractual obligation by a third party to fund a
feasibility study costing approximately $3,000,000 to $4,000,000. The Test Date for these 1.5 million Performance Rights
was 30 June 2016. 1.5 million Performance rights lapsed on 30 June 2016 as the performance condition was not met.
1.5 million Performance Rights will vest upon the entry into an agreement by a third party to fund the capital costs of the
scandium oxide plant, such cost being in the vicinity of $70 million. The Test Date for these 1.5 million Performance Rights
is 30 June 2018 and they remain unvested at balance date.
On 8 December 2015 and 18 February 2016, 1,000,000 performance rights which have various vesting conditions,
performance hurdles and expiry dates were issued to consultants. 250,000 ordinary shares were issued on 24 June 2016
and 750,000 ordinary shares were issued on 13 January 2017 following Board approval that the performance conditions
were met.
On 14 November 2016, 1 million performance rights were granted to Rob Mosig and vest and convert into ordinary
shares in the event that the Company’s Shares trade at a daily VWAP of at least $0.20 for a consecutive period of at least
20 trading days. The Test Date for these 1 million Performance Rights is 30 June 2018 and they remain unvested at
balance date.
On 14 November 2016, 350,000 performance rights were issued to a consultant. 350,000 ordinary shares were issued on
13 January 2017 following Board approval that the performance conditions were met.
On 13 January 2016, 26 February 2016 and 24 June 2016 1,000,000 shares were issued on exercise of performance rights
following Board approval that the performance conditions were met.
(e) Capital Management
Management controls the capital of the Group in order to maintain a good debt to equity ratio, provide the shareholders with
adequate returns and ensure that the Group can fund its operations and continue as a going concern.
The Group’s debt and capital includes ordinary share capital and financial liabilities, supported by financial assets.
There are no externally imposed capital requirements.
Management effectively manages the Group’s capital by assessing the Group’s financial risks and adjusting its capital structure in
response to changes in these risks and in the market. These responses include the management of debt levels, distributions to
shareholders and share issues.
There have been no changes in the strategy by management to control the capital of the Group since the prior year. This strategy is
to ensure that the Group has no debts.
Notes to the Financial Statements
PLATINA RESOURCES LIMITED Annual Report 2017 | 47
NOTE 15
SHARE BASED PAYMENTS RESERVE
Share-based payments reserve
Share-based Payments Reserve
2017
$
2016
$
332,172
332,172
155,883
155,883
The share-based payments reserve records items recognised as expenses on valuation of share options and performance rights.
Movement during the year
Opening balance
-
-
-
-
-
Issue of performance rights and options to consultants.
Issue of performance rights and options to directors and key management
personnel
Shares issued on conversion of performance rights by consultants
Shares issued on conversion of performance rights by directors
Issue of options to corporate advisor as partial consideration for acting as
the Lead Manager for the March 2017 placement 1
2017
$
2016
$
155,883
42,521
65,268
(50,500)
(100,000)
219,000
61,811
28,381
123,191
(57,500)
-
-
Closing balance
332,172
155,883
1.
The valuation of the options issued forms part of the share issue costs disclosed at Note 14, rather than part of share-based
payments expense.
NOTE 16
TENEMENT COMMITMENTS
The Group has certain obligations to expend minimum amounts on exploration in tenement areas. These obligations may be varied
from time to time and are expected to be fulfilled in the normal course of operations of the Group.
Tenement
Munni Munni
Owendale
Greenland
Less than 12 months
Between 12 months
and 5 years
Greater than 5 years
$
$
$
-
-
15,240
1,520,790
1,732,306
1,891,882
2,515,312
-
-
To keep tenements in good standing, work programs should meet certain minimum expenditure requirements. The Group has the
option to negotiate new terms or relinquish the tenements and also to meet expenditure requirements by joint venture or farm-in
arrangements.
48 | PLATINA RESOURCES LIMITED Annual Report 2017
Notes to the Financial Statements
NOTE 17
CASH FLOW INFOMATION
Reconciliation of Cash Flow from Operations with Loss after Income Tax
Loss after income tax
Non-cash flows in loss
Depreciation
Share-based payment
Foreign exchange gain
Fair value change on Financial Assets held for sale
Gain on disposal of investments
Changes in assets and liabilities
(Increase)/decrease in prepayments
(Increase)/decrease in other current assets
(Increase)/decrease in financial assets
Increase/(decrease) in trade payables and accruals
Increase/(decrease) in provisions
Cash flow from operations
NOTE 18
SHARE-BASED PAYMENTS
Performance Rights Plan (PRP)
2017
$
2016
$
(532,726)
(373,648)
1,846
107,789
-
(49,000)
(110,816)
(3,849)
(73,901)
-
65,633
(123,603)
(718,627)
3,573
164,072
(80,143)
-
-
687
(63,523)
(100,000)
(49,299)
25,910
(472,371)
Shareholders approved the Company’s PRP at the Annual General Meeting held on 27 November 2015. The PRP is designed to
provide a framework for competitive and appropriate remuneration so as to retain and motivate skilled and qualified personnel
whose personal rewards are aligned with the achievement of the Company’s growth and strategic objectives.
During the financial year, the Company granted 1 million performance rights for nil consideration over unissued ordinary shares in
the Company to Mr Mosig as part of his remuneration (2016: 5 million) and 350,000 performance rights for nil consideration over
unissued ordinary shares in the Company to a consultant. Refer to Note 14(d) for additional information.
Employee Option Incentive Plan (“EOIP”)
Shareholders last approved the Platina Resources Limited EOIP at the General Meeting on 28 April 2017. The EOIP allows Directors
from time to time to invite eligible employees to participate in the Plan and offer options to those eligible persons. The Plan is
designed to provide incentives, assist in the recruitment, reward, retention of employees and provide opportunities for employees
(both present and future) to participate directly in the equity of the Company. The contractual life of each option granted is three
years or as otherwise determined by the Directors. There are no cash settlement alternatives. No options were issued under the
EOIP in 2017 (2016: nil).
Non - Plan based payments
The Company also makes share based payments to consultants and / or service providers from time to time, not under any specific
plan. Specific shareholder approval was obtained for any share based payments to directors and officers of the parent entity.
11 million options were issued to directors and officers during the year ended 30 June 2017 (2016: nil).
6 million options were issued to a corporate advisor as partial consideration for acting as the Lead Manager for the March 2017
placement.
Refer to Note 14(c) for additional information.
Notes to the Financial Statements
PLATINA RESOURCES LIMITED Annual Report 2017 | 49
NOTE 18
SHARE-BASED PAYMENTS (Continued)
The following share-based payment arrangements existed at 30 June 2017:
a.
Unlisted Options
30 June 2017
30 June 2016
Number of Options
Weighted Average
Exercise Price ($)
Number of Options
Weighted Average
Exercise Price ($)
Outstanding at beginning of the year
1,000,000
Granted (i) (ii)
Expired
Outstanding at end of the year
Exercisable at end of the year
17,000,000
(1,000,000)
17,000,000
6,000,000
0.10
0.20
(0.10)
0.20
0.20
1,000,000
0.10
-
-
1,000,000
1,000,000
-
-
0.10
0.10
Expenses arising from share-based payment transactions - Unlisted Options
Share based payments, are as follows (with additional information provided in Note 14 above):
Options to directors and company secretary (i)
Total
2017
Number
11,000,000
11,000,000
2017
$
16,066
16,066
2016
Number
2016
$
-
-
-
-
(i)
(ii)
In May 2017, following shareholder approval, the directors and company secretary were issued 11 million unlisted
options exercisable at $0.20 expiring on 31 December 2019 whose value has been estimated at $249,150 over the vesting
period and the charge to the profit and loss account for the reporting period is $16,066 (2016 - $Nil).
The Company issued 6 million options issued to a corporate advisor as partial consideration for acting as the Lead
Manager for the March 2017 placement, the fair value of which has been recorded as part of share issue costs and
therefore not recognised as an expense in the reporting period.
The following table lists the inputs to the model used for the financial period ended 30 June 2017 (2016: Nil)
(a) Grant date
(b)
(c)
(d)
(e)
(f)
Exercise price
Expiry date
Share price at grant date
Expected price volatility of the Company’s shares
Risk-free interest rate
(g) Discount for market vesting condition
2 May 2017
$0.20
31 December 2019
$0.11
90%
2.08%
50%
During the year ended 30 June 2017, no options were exercised.
b.
Performance Rights
30 June 2017
30 June 2016
Number of
Performance Rights
Weighted Average
Exercise Price ($)
Number of
Performance Rights
Weighted Average
Exercise Price ($)
Outstanding at beginning of the year
Granted
Exercised
Cancelled / Lapsed
4,250,000
1,350,000
(3,100,000)
-
Outstanding at end of the year
2,500,000
Exercisable at end of the year
-
-
-
-
-
-
-
1,000,000
6,000,000
(1,250,000)
(1,500,000)
4,250,000
2,000,000
-
-
-
-
-
-
50 | PLATINA RESOURCES LIMITED Annual Report 2017
Notes to the Financial Statements
NOTE 18
SHARE-BASED PAYMENTS (Continued)
The following share-based payment arrangements were in place during the current and prior periods:
2017
Number of
Performance Rights
Grant date
Expiry date
at grant date
Vesting date
Fair value
$
Performance Rights issued to
consultants
Performance Rights issued to R
Mosig
350,000
14-Nov-16
31-Jan-17
28,000
31-Dec-16
1,000,000
14-Nov-16
30-Jun-18
55,620
30-Jun-18
2016
Number of
Performance Rights
Grant date
Expiry date
at grant date
Vesting date
Fair value
$
Performance Rights issued to
company secretary, D Cornish
Performance Rights issued to
consultants
Performance Rights issued to R
Mosig
Performance Rights issued to R
Mosig
Performance Rights issued to R
Mosig
250,000
18-Oct-13
18-Nov-16
15,000
18-Oct-16
750,000
11-Feb-15
31-Jan-16
30,000
31-Dec-15
2,000,000
8-Dec-15
30-Aug-18
100,000
30-Jun-16
1,500,000
8-Dec-15
30-Aug-18
75,000
30-Jun-16
1,500,000
8-Dec-15
30-Aug-18
75,000
30-Jun-18
The following performance rights were exercised during the current and prior periods:
Number of
Performance Rights
Number of
performance
Rights
Exercised
Exercise date
Share price at
exercise date
2,000,000
2,000,000
8-Jul-16
1,100,000
1,100,000
13-Jan-17
Number of
Performance Rights
Number of
performance
Rights
Exercised
Exercise date
Share price at
exercise date
250,000
125,000
125,000
26-Feb-16
24-Jun-16
750,000
750,000
13-Jan-16
250,000
250,000
24-Jun-16
0.105
$
.096
0.10
$
0.035
0.105
0.037
2017
Performance Rights issued to
director, R Mosig
Performance Rights issued to
consultants
2016
Performance Rights issued to
company secretary, D Cornish
Performance Rights issued to
consultants
Performance Rights issued to
consultant
c.
Share-based Payments
Included under share based payments expense in the statement of comprehensive income is $107,789 (2016: $164,072), and
relates, in full, to equity-settled share-based payment transactions.
Notes to the Financial Statements
PLATINA RESOURCES LIMITED Annual Report 2017 | 51
NOTE 19
OPERATING SEGMENTS
The Group operates predominately in mineral exploration with a focus on platinum group metals.
Segment Information
Identification of reportable segments
The Group has identified its operating segments based on the internal reports that are reviewed and used by the Board of Directors
(chief operating decision makers) in assessing performance and determining the allocation of resources.
The Group is managed primarily on the basis of geographical locations as these locations have notably different risk profiles and
performance assessment criteria. Operating segments are therefore determined on the same basis.
Reportable segments disclosed are based on aggregating operating segments where the segments are considered to have similar
economic characteristics and are similar with respect to any external regulatory requirements.
Basis of accounting for purposes of reporting by operating segments
(a) Accounting policies adopted
Unless stated otherwise, all amounts reported to the Board of Directors, being the chief decision maker with respect to operating
segments, are determined in accordance with accounting policies that are consistent to those adopted in the annual financial
statements of the Group.
(b) Segment assets
Where an asset is used across multiple segments, the asset is allocated to that segment that receives majority economic value from
that asset. In the majority of instances, segment assets are clearly identifiable on the basis of their nature and physical location.
(c) Segment liabilities
Liabilities are allocated to segments where there is a direct nexus between the incurrence of the liability and the operations of the
segment. Segment liabilities include trade and other payables and deferred tax liabilities.
(d) Unallocated items
The following items of revenue, expenses, assets and liabilities are not allocated to operating segments as they are not considered
part of the core operations of any segment:
▪ Derivatives
▪ Net gains on disposal of available-for-sale investments
▪
▪
Impairment of assets and other non-recurring items of revenue or expense
Income tax expense
▪ Deferred tax assets and liabilities
▪
Current tax liabilities
▪ Other financial liabilities
▪
Intangible assets
▪ Discontinuing operations
52 | PLATINA RESOURCES LIMITED Annual Report 2017
Notes to the Financial Statements
NOTE 19
OPERATING SEGMENTS (Continued)
(d) Unallocated items (Continued)
i. Segment Performance
Greenland
Australia
$
$
All Other
Segments
$
Total
$
30 June 2017
REVENUE
Interest revenue
Other revenue
Total segment revenue
-
-
-
88,357
159,816
248,173
Reconciliation of segment revenue to Group revenue
Total Group revenue
Reconciliation of segment result of Group net loss after tax
Segment net loss before tax
Income tax benefit
-
6,959
(5,564)
147,600
Amounts not included in segment result but reviewed by Board
- Corporate charges
- Depreciation and amortisation
Net Loss after tax from continuing operations
-
-
-
-
-
88,357
159,816
248,173
248,173
(5,564)
154,559
(928,048)
(928,048)
(1,846)
(1,846)
(532,726)
Greenland
Australia
$
$
All Other
Segments
$
Total
$
30 June 2016
REVENUE
Interest revenue
Other revenue
Total segment revenue
Reconciliation of segment revenue to Group revenue
Total Group revenue
Reconciliation of segment result of Group net loss after tax
Segment net loss before tax
Income tax benefit
Amounts not included in segment result but reviewed by Board
- Corporate charges
- Depreciation and amortisation
Net Loss after tax from continuing operations
-
-
-
-
-
7,487
243,734
251,221
-
80,143
80,143
(27,087)
264,933
-
-
7,487
323,877
331,364
331,364
(27,087)
264,933
(939,285)
(939,285)
(3,573)
(3,573)
(373,648)
Notes to the Financial Statements
PLATINA RESOURCES LIMITED Annual Report 2017 | 53
NOTE 19
OPERATING SEGMENTS (Continued)
(d) Unallocated items (Continued)
ii. Segment Assets
30 June 2017
Reconciliation of segment assets to Group assets
Segment Assets
Unallocated Assets
- Corporate
Total Group Assets
Segment Asset Increases (Decreases)
Capitalised expenditure for the period
- Exploration and Other
30 June 2016
Reconciliation of segment assets to Group assets
Segment Assets
Unallocated Assets
- Corporate
Total Group Assets
Segment Asset Increases (Decreases)
Capitalised expenditure for the period
- Exploration and Other
Greenland
Australia
$
$
All Other
Segments
$
Total
$
16,000,857
8,152,208
-
24,153,065
8,224,954
32,378,019
115,517
115,517
1,952,386
1,952,386
-
-
2,067,903
2,067,903
Greenland
Australia
$
$
All Other
Segments
$
Total
$
15,885,340
6,199,822
-
22,085,162
3,517,880
25,603,042
53,432
53,432
506,085
506,085
-
-
559,517
559,517
54 | PLATINA RESOURCES LIMITED Annual Report 2017
Notes to the Financial Statements
NOTE 19
OPERATING SEGMENTS (Continued)
(d) Unallocated items (Continued)
Greenland
Australia
$
$
All Other
Segments
$
Total
$
30 June 2017
Reconciliation of segment liabilities to Group
liabilities
1,800
756,770
Unallocated Liabilities
- Corporate
Total Group Liabilities
Greenland
Australia
$
$
All Other
Segments
$
30 June 2016
Reconciliation of segment liabilities to Group
liabilities
8,300
277,264
Unallocated Liabilities
- Corporate
Total Group Liabilities
NOTE 20
FINANCIAL RISK MANAGEMENT
Financial Risk Management Policies
-
-
-
-
758,570
2,010,865
2,769,435
Total
$
285,564
2,017,824
2,303,388
The Group’s financial instruments consist mainly of deposits with banks, short term investments, accounts receivable and accounts
payable.
The main risks and related risk management policies arising from the Group’s financial instruments are summarised below.
Credit Risk
The maximum exposure to credit risk at balance date to recognised financial assets, net of any provisions for doubtful debts, is
disclosed in the statement of financial position and notes to and forming part of the financial report. The Group does have a
material credit risk exposure to a single debtor or group of debtors under financial instruments entered into by the Group, being
the counterparty to the other income described in Note 2. Amounts receivable are set out in a contract with that debtor.
Interest Rate Risk
The Group’s exposure to interest rate risk is the risk that an increase or decrease in market interest rates will result in increased or
reduced revenue from interest receipts. The Group’s exposure to interest rate risk is minimal.
Liquidity Risk
The Group manages liquidity risk by monitoring forecast cash flows. The Group’s operations require the raising of capital on an on-
going basis to fund its planned exploration program and to commercialise its tenement assets. The Group’s past success in the
raising of capital will ensure it can continue as a going concern and proceed with planned exploration expenditure.
Net Fair Values
The net fair values of financial assets and financial liabilities approximate their carrying value. No financial assets and financial
liabilities are readily traded on organised markets in standardised form except for the investment disclosed in Note 12. The
aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in the statement of financial
position and in the notes to and forming part of the financial report.
Notes to the Financial Statements
PLATINA RESOURCES LIMITED Annual Report 2017 | 55
NOTE 20
FINANCIAL RISK MANAGEMENT (Continued)
The Group’s exposure to interest rate risk and effective average interest rate for classes of financial assets and financial liabilities is
set out below.
Weighted
Average
Effective
Interest Rate
Floating
Interest Rate
Less than 1
year
Fixed Interest
Rate Maturing
Non-Interest
Bearing
Total
2017
Financial Assets
Cash and cash equivalent assets
1.63%
7,916,625
-
49,476
7,966,101
Security deposits and deposits at
financial institutions
Other financial assets
Total Financial Assets
Financial Liabilities
Other financial liabilities
Total Financial Liabilities
2016
Financial Assets
3.00%
-
-
-
11,006
-
11,006
-
215,761
215,761
7,916,625
11,006
265,237
8,192,868
-
-
-
-
758,570
758,570
758,570
758,570
Cash and cash equivalent assets
1.30%
484,337
-
2,836,419
3,320,756
Security deposits and deposits at
financial institutions
2.65%
Other financial assets
Total Financial Assets
Financial Liabilities
Other financial liabilities
Total Financial Liabilities
Foreign exchange risk
-
-
10,839
-
10,839
-
198,355
198,355
484,337
10,839
3,034,774
3,529,950
-
-
-
-
285,564
285,564
285,564
285,564
Exposure to foreign exchange risk may result in fair value or future cash flows of a financial instrument fluctuating due to
movement in foreign exchange rates of currencies in which the Group makes purchases or holds financial instruments which are
other than the AUD functional currency.
Other than the conversion to the spot rate of the Deferred Tax Liability that arose in Greenland, the foreign currency to the Group
is considered immaterial and is therefore not discussed further.
56 | PLATINA RESOURCES LIMITED Annual Report 2017
Notes to the Financial Statements
2017
$
2016
$
NOTE 21 PLATINA RESOURCES LIMITED PARENT INFORMATION
The financial statements of the Company are identical to the consolidated financial statements.
b. Subsidiary of Platina Resources Limited
Company Name
Country of
Incorporation
Platina (South America) Pty Ltd
Colombia
Percentage Owned (%)*
2017
100
2016
100
*Percentage of voting power is in proportion to ownership
Platina (South America) Pty Ltd did not trade during the year and does not have any assets and liabilities. The carrying value of the
investments held by the parent company is $Nil.
c. Amounts Outstanding from Related Parties
There are no amounts outstanding from related parties.
NOTE 22
CONTINGENT LIABILITIES
There are no known contingent liabilities as at 30 June 2017.
NOTE 23
RELATED PARTY TRANSACTIONS
Transactions between related parties as disclosed in Note 5 are on normal commercial terms and conditions no more favourable
than those available to other parties unless otherwise stated.
Key Management Personnel
Disclosures relating to Key Management Personnel are set out in Note 5.
For full details refer to the Remuneration Report included in the Director’s Report.
NOTE 24
SUBSEQUENT EVENTS
No matter or circumstance has arisen since the end of the financial year, to the date of this report, that has significantly affected, or
may significantly affect, the operations of the Group, the results of those operations, or the state of affairs of the Group in future
financial years.
The financial report was authorised for issue on the date the director’s report was signed. The Board has the power to amend and
re-issue the financial report.
Declaration by Directors
PLATINA RESOURCES LIMITED Annual Report 2017 | 57
Declaration by Directors
1.
In the opinion of the Directors of Platina Resources Limited (the ‘Company’):
a.
the accompanying financial statements and notes are in accordance with the Corporations Act
2001 including:
i.
ii.
giving a true and fair view of the Consolidated Entity’s financial position as at 30 June 2017
and of its performance for the year then ended; and
complying with Australian Accounting Standards, the Corporations Regulations 2001,
professional reporting requirements and other mandatory requirements;
b.
c.
there are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable; and
the financial statements and notes thereto are in accordance with International Financial
Reporting Standards issued by the International Accounting Standards Board.
This declaration has been made after receiving the declarations required to be made to the Directors in
accordance with Section 295A of the Corporations Act 2001 for the financial year ended 30 June 2017.
This declaration is signed in accordance with a resolution of the Board of Directors.
Robert Mosig
Managing Director
Brisbane
Date: 28 September 2017
62 | PLATINA RESOURCES LIMITED Annual Report 2017
Shareholder Information
Shareholder Information
Additional information required by the Australian Securities Exchange and not shown elsewhere in this report is as
follows. The information is current as at 25 September 2017.
(a) Distribution of equity securities
The number of holders, by size of holding, in each class of security are:
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Total
Ordinary Shares
No. Holders
No. Shares
80
205
272
822
315
18,107
683,247
2,291,268
34,340,240
226,793,373
1694
264,126,235
The number of shareholders holding less than a marketable parcel was 224 and they hold a total of 400,887 shares.
(b) Unquoted equity securities
Class
Unlisted Options – exercisable at 20 cents each on or before 31 December 2019
Unlisted Options– exercisable at 20 cents on or before 28 April 2019
Performance Rights – expires 30 August 2018
Performance Rights – expires 30 June 2018
Performance Rights – expires 1 August 2019
Number
11,000,000
6,000,000
1,500,000
1,000,000
1,000,000
Holders
Note 1
Note 2
Note 3
Note 4
Note 5
Holders of more than 20% of the unquoted equity securities:
1) Robert Mosig
6,000,000 options
2) Zenix Nominees Pty Ltd 6,000,000 options
3) Robert Mosig
4) Robert Mosig
5) Grace Deng
1,500,000 performance rights
1,000,000 performance rights
1,000,000 performance rights
Shareholder Information
PLATINA RESOURCES LIMITED Annual Report 2017 | 63
Twenty largest holders
The names of the twenty largest holders, in each class of quoted security are:
i. Ordinary shares:
#
Registered Name
CAIRNGLEN INVESTMENTS PTY LTD*
J P MORGAN NOMINEES AUSTRALIA LIMITED
YANDAL INVESTMENTS PTY LTD
SINO PORTFOLIO INTERNATIONAL LIMITED
CITICORP NOMINEES PTY LTD
1
2
3
4
5
6
Number of
shares
% of total
shares
39,269,837
14.87%
30,074,182
11.39%
8,000,000
3.03%
7,900,000
2.99%
6,450,791
2.44%
BNP PARIBAS NOMINEES PTY LTD < IB AU NOMS RETAIL CLIENT DRP>
6,285,855
2.38%
7 NERO RESOURCE FUND PTY LTD
8 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
9 NOVASC PTY LTD *
10 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
11 MR ROBERT MOSIG
12 OPEKA DALE PTY LTD
13 MR MICHAEL WONG
14 PRECISION OPPORTUNITIES FUND LTD
5,846,896
2.21%
3,602,504
1.36%
3,558,712
1.35%
3,340,237
1.26%
3,063,334
1.16%
2,500,000
0.95%
2,218,370
0.84%
1,800,000
0.68%
15 MR KEITH LEONG & MRS ELIZABETH LEONG
1,600,000
0.61%
16 TECHNICA PTY LTD
1,550,200
0.59%
17 SLADE TECHNOLOGIES PTY LTD
1,550,000
0.59%
18 CS FOURTH NOMINEES PTY LIMITED
1,521,191
0.58%
19 COLTER HOLDINGS PTY LTD
20 MR MANUEL ARTHUR SAMIOS
Top 20
Total
* Merged holding
Substantial Shareholders
1,418,001
0.54%
1,350,000
0.51%
132,900,110
50.33%
264,126,235
100.00%
Substantial shareholders as shown in substantial shareholder notices received by Platina Resources Limited are:
Name of Shareholder:
Cairnglen Investments Pty Ltd
Electrum Global Holdings (and associated entities)
Ordinary Shares:
39,269,837
20,797,199
64 | PLATINA RESOURCES LIMITED Annual Report 2017
Shareholder Information
(c) Voting rights
All ordinary shares carry one vote per share without restriction.
Options and performance rights do not carry voting rights.
(d) Restricted securities
The Group currently has no restricted securities on issue.
(e) On-market buy back
There is not a current on-market buy-back in place.
Interest in Tenements
PLATINA RESOURCES LIMITED Annual Report 2017 | 65
Interests in Tenements
Platina Resource Limited held the following interests in tenements as at 27 September 2017:
Tenement
M47/123
M47/124
M47/125
M47/126
EL7644
EL2007/01
EL2012/25
Area
Location
Ownership
% Ownership
Munni Munni
Munni Munni
Munni Munni
Munni Munni
Owendale
Skaergaard
Qialivarteerpik
WA, Australia
WA, Australia
WA, Australia
WA, Australia
NSW, Australia
Greenland
Greenland
PGM
PGM
PGM
PGM
PGM
PGM
PGM
100
100
100
100
100
100
100
In August 2015, Platina entered into an agreement with Artemis Resources Limited under which Artemis can earn a
70% interest in the Munni Munni Platinum Group Elements Project, comprising M47/123, 124, 125, 126 (the “Munni
Munni Project”) by expending $750,000 over a 3-year period.
The Company is not party to any other farm-in or farm-out agreements.
Abbreviations and Definitions:
EPM
Exploration License
EL
M
PL
Exploration License
Mining Lease
Prospecting License
PGE
PGM
AU
Platinum Group Elements
Platina Resources Ltd
Gold
66 | PLATINA RESOURCES LIMITED Annual Report 2017
Corporate Governance Statement
Corporate Governance Statement
The board of directors of Platina Resources Limited is responsible for the corporate governance of the Group. The
Board guides and monitors the business and affairs of Platina Resources Limited on behalf of the shareholders by
whom they are elected and to whom they are accountable.
Platina Resources Limited’s Corporate Governance Statement (which can be found on the Company’s website
www.platinaresources.com.au) is structured with reference to the Australian Securities Exchange (“ASX”) Corporate
Governance Council’s (the “Council”) “Corporate Governance Principles and Recommendations, 3rd Edition”, which
are as follows:
Principle 1
Principle 2
Principle 3
Principle 4
Principle 5
Principle 6
Principle 7
Principle 8
Lay solid foundations for management and oversight
Structure the board to add value
Act ethically and responsibly
Safeguard integrity in corporate reporting
Make timely and balanced disclosure
Respect the rights of security holders
Recognise and manage risk
Remunerate fairly and responsibly
A copy of the eight Corporate Governance Principles and Recommendations can be found on the ASX’s website.
The Board is of the view that, during the reporting period, with the exception of the departures from the ASX
Guidelines as set out below, it otherwise complies with all of the ASX Guidelines.
Roles and Responsibilities of the Board and Management
ASX CGC Principle 1
Lay solid foundations for management and oversight.
Role of the Board
The Board of Directors is pivotal in the relationship between shareholders and management and the role and
responsibilities of the Board underpin corporate governance.
The Board is committed to administering the policies and procedures with openness and integrity, pursuing the true
spirit of corporate governance commensurate with the Group’s needs.
Generally, the powers and obligations of the Board are governed by the Corporations Act and the general law.
Without limiting those matters, the Board expressly considers itself responsible for the following:
▪
Ensuring compliance with the Corporations Act, ASX Listing Rules (where appropriate) and all relevant laws;
▪ Oversight of the Group including its framework of control and accountability systems to enable risk to be
assessed and managed;
▪ Appointing and removing the chief executive officer;
▪ Ratifying the appointment and, where appropriate, removal of senior executives including the chief financial
officer and the Group secretary;
▪
Input into and final approval of management’s development of corporate strategy and performance
objectives;
▪ Monitoring senior executive’s performance and implementation of strategy;
▪
Ensuring appropriate resources are available to senior executives;
▪ Approving and monitoring the progress of major capital expenditure, capital management and acquisitions
and divestitures;
▪ Approving and overseeing Committees where appropriate to assist in the Board’s function and powers.
The Functions, Powers and Responsibilities of the Board are set out in the Company’s Corporate Governance Charter
which is available from the corporate governance section of the Group’s website.
Corporate Governance Statement
PLATINA RESOURCES LIMITED Annual Report 2017 | 67
The board meets on a regular basis to review the performance of the Company against its goals both financial and
non-financial. In normal circumstances, prior to the scheduled board meetings, each board member is provided with a
formal board package containing appropriate management and financial reports.
Appropriate background checks are conducted on proposed new directors and material information about a director
being re-elected is provided to security holders.
Written agreements are entered in to with directors and senior management clearly setting out their roles and
responsibilities.
The company secretary works directly with the chair and the managing director on the functioning of all board and
committee procedures.
Diversity
The Group is committed to workplace diversity and ensuring a diverse mix of skills amongst its directors, officers and
employees.
Recommendation 1.5 requires that listed entities should establish a policy concerning diversity. Whilst the Group does
not currently have a Diversity policy due to its size and nature of its operations, it strives to attract the best person for
the position regardless of gender, age, ethnicity or cultural background.
As at 30 June 2017, the proportion of women in the whole organisation is as follows:
Male
100%
100%
100%
Female
0%
0%
0%
Board Members
Officers
Other
Performance Evaluation
The Board (in carrying out the functions of the Remuneration and Nomination Committees) considers remuneration
and nomination issues annually and otherwise as required in conjunction with the regular meetings of the Board.
Due to the size of the Board and the nature of its business, it has not been deemed necessary to institute a formal
documented performance review program of individuals. The Chairman conducted an informal review during the
financial year whereby the performance of the Board as a whole and the individual contributions of each director
were discussed. The Board considers that at this stage of the Company’s development an informal process is
appropriate.
68 | PLATINA RESOURCES LIMITED Annual Report 2017
Corporate Governance Statement
Board Composition
ASX CGC Principle 2
Structure of the Board to add value
Nomination Committee
Recommendation 2.1 requires the Board to establish a nomination committee.
Although the Board has adopted a Nominations Committee Charter, the Board has not formally established a
Nominations Committee as the Directors consider that the Company is currently not of a size nor are its affairs of such
complexity as to justify the formation of this Committee. The Board as a whole is able to address these issues and is
guided by the Nominations Committee Charter. The Company will review this position annually and determine
whether a Nominations Committee needs to be established.
The Nomination Committee Charter is set out in the Company’s Corporate Governance Charter which is available from
the corporate governance section of the Group’s website.
The Company is developing an appropriate board skills matrix. The skills, experience and expertise relevant to the
position of each director who is in office at the date of the Annual Report is detailed in the director’s report.
Corporate Governance Council Recommendation 2.4 requires a majority of the Board to be independent Directors.
The Corporate Governance Council defines independence as being free from any interest, position, association or
relationship that might influence, or reasonably be perceived to influence, in a material capacity to bring independent
judgement to bear on issues before the board and to act in the best interests of the entity and its security holders
generally.
In the context of Director independence, “materiality” is considered from both the Group and the individual Director
perspective. The determination of materiality requires consideration of both quantitative and qualitative elements.
An item is presumed to be material (unless there is qualitative evidence to the contrary) if it is equal to or greater than
10% of the appropriate base amount.
Qualitative factors considered included whether a relationship is strategically important, the competitive landscape,
the nature of the relationship and the contractual or other arrangements governing it and other factors which point to
the actual ability of the Director in question to shape the direction of the Group.
In accordance with the Council’s definition of independence above and the materiality thresholds set, the Directors
listed below are not considered to be independent and therefore the Group does not currently comply with
Recommendation 2.4:
Name
Position
Reason for non-compliance
Robert Mosig
Managing Director Mr Mosig is employed by the
Brian Moller
Non-Executive
Director
Group in an executive capacity.
Mr Moller is a principal of a
material professional advisor to
the Group.
The Group’s Non-Executive Director, Christopher Hartley, is considered independent.
Platina Resources Limited considers industry experience and specific expertise, as well as general corporate
experience, to be important attributes of its Board members. The Directors noted above have been appointed to the
Board of Platina Resources Limited due to their considerable industry and corporate experience.
Corporate Governance Statement
PLATINA RESOURCES LIMITED Annual Report 2017 | 69
The term in office held by each Director in office at the date of this report is as follows:
Name
Brian Moller
Robert Mosig
Term in Office
11 years 7 months
12 years 5 months
Christopher Hartley
9 months
Directors have the right to seek independent professional advice in the furtherance of their duties as directors at the
Group’s expense. Written approval must be obtained from the chair prior to incurring any expense on behalf of the
Group. Informal induction is provided to any new directors.
Act Ethically and Responsibly
ASX CGC Principle 3
Code of Conduct
The Directors are subject to certain stringent legal requirements regulating the conduct both in terms of their internal
conduct as directors and in their external dealings with third parties both on their own and on behalf of the Group.
To assist directors in discharging their duty to the Group and in compliance with relevant laws to which they are
subject, the Group has adopted a Corporate Ethics Policy and Corporate Code of Conduct within its Corporate
Governance Charter.
The Corporate Ethics Policy sets out rules binding Directors in respect of:
▪
▪
a Director’s legal duties as an officer of the Company;
a Director’s obligations to make disclosures to the ASX and the market generally; and
▪ dealings by Directors in shares in the Company.
The Corporate Ethics Policy, as set out in the Company’s Corporate Governance Charter is available from the
corporate governance section of the Group’s website.
Safeguard Integrity in Corporate Reporting
ASX CGC Principle 4
Audit Committee
The Board previously had established an Audit and Risk Management Committee which operated under a charter
approved by the Board.
Recommendation 4.1 states that an audit committee should be structured so that it:
i.
consists only non-executive directors;
ii. consists of a majority of independent directors;
iii. is chaired by an independent chair, who is not the chair of the Board; and
iv. has at least three members.
The members of the Audit & Risk Management Committee were Brian Moller (Chair) and Reginald Gillard, both of
whom are non-executive directors. However as the Company’s Audit and Risk Management Committee only had two
members and Mr Moller was not considered independent (based on the Council’s definition), the Committee did not
contain a majority of independent directors and was not chaired by an independent director. Therefore the Company
did not comply with Recommendation 4.1.
During the current financial year, the Board decided that given the size and scale of operations, the full Board would
undertake the roles previously undertaken by the Audit and Risk Committee.
The Board is considered financially literate in the context of the Company’s affairs. The Company believes that given
the size and nature of its operations, non-compliance by the Company with Recommendation 4.1 will not be
detrimental to the Company.
70 | PLATINA RESOURCES LIMITED Annual Report 2017
Corporate Governance Statement
The Audit Committee Charter is set out in the Company’s Corporate Governance Charter which is available from the
corporate governance section of the Group’s website.
Certification of financial reports
The Managing Director has made the following certifications to the Board:
▪
▪
That the Group’s financial reports are complete and present a true and fair view, in all material respects, of
the financial position and performance of the Group and are in accordance with relevant accounting
standards;
The integrity of the reports is founded on a sound system of financial risk management and internal
compliance and control.
The Company Secretary has made the following certifications to the Board:
▪
▪
That the Group’s financial reports are complete and present a true and fair view, in all material respects, of
the financial position and performance of the Group and are in accordance with relevant accounting
standards;
The integrity of the reports is founded on sound system of financial risk management and internal compliance
and control.
The Group ensures that its external auditors are present at the AGM to answer any questions with regard to the
efficacy of the financial statement audit and the associated independent audit report.
Continuance Disclosure
ASX CGC Principle 5
Make timely and balanced disclosure
The Group duly complies with ASX and ASIC requirements for the timely and accurate reporting of the Group’s
financial activities, thus ensuring that the Group has disclosed all information that has a material impact on
shareholders. This includes the Annual Financial Report, Interim Financial Report, quarterly cash flows, new and
relinquished tenements and changes in directors and shareholder interests and other events that are identified to be
material. All ASX announcements are available on the Group’s website.
The Company Secretary is responsible for communication with the ASX, including responsibility for ensuring
compliance with the continuous disclosure requirements of the ASX Listing Rules and oversight of information
distributed to the ASX.
Respect The Rights of Security Holders
ASX CGC Principle 6
The Board of directors undertakes to ensure that shareholders are informed of all major developments affecting the
Group. Information is communicated to shareholders through the annual report, interim financial report,
announcements made to the ASX, notices of Annual General and Extraordinary General Meetings, the AGM and
Extraordinary General Meetings.
The Board encourages full participation of shareholders at Annual and Extraordinary General Meetings to ensure a
high level of accountability and identification with the Group’s direction, strategy and goals. In particular,
shareholders are responsible for voting on the re-election of directors.
The Group also offers shareholders the option to receive ASX announcements and other notices from the Company
electronically.
Risk Management
ASX CGC Principle 7
Recognise and manage risk
The Board previously had established an Audit and Risk Management Committee which operated under a charter
approved by the Board.
Recommendation 7.1 states that an audit committee should be structured so that it:
Corporate Governance Statement
PLATINA RESOURCES LIMITED Annual Report 2017 | 71
i.
consists only non-executive directors;
ii. consists of a majority of independent directors;
iii. is chaired by an independent chair, who is not the chair of the Board; and
iv. has at least three members.
The members of the Audit & Risk Management Committee were Brian Moller (Chair) and Reginald Gillard, both of
whom are non-executive directors. However as the Company’s Audit and Risk Management Committee only had two
members and Mr Moller was not considered independent (based on the Council’s definition), the Committee did not
contain a majority of independent directors and was not chaired by an independent director. Therefore the Company
did not comply with Recommendation 7.1.
During the current financial year, the Board decided that given the size and scale of operations, the full Board would
undertake the roles previously undertaken by the Audit and Risk Committee.
The Board is considered to have sufficient technical, legal and industry experience in the context of the Company’s
affairs to properly assess the risks facing the Group. The Company believes that given the size and nature of its
operations, non-compliance by the Company with Recommendation 7.1 will not be detrimental to the Company.
The Company has developed a basic framework for risk management and internal compliance and control systems
which cover organisational, financial and operational aspects of the Company’s affairs. Further detail of the
Company’s risk management policies can be found within the Audit and Risk Management Committee Charter.
Recommendation 7.2 requires that the Board review the Company’s risk management framework and disclose
whether such a review has taken place. Business risks are considered regularly by the Board and management at
management and Board meetings. A formal report to the Board as to the effectiveness of the management of the
Company’s material business risks has not been formally undertaken.
The Audit and Risk Management Committee Charter is set out in the Company’s Corporate Governance Charter which
is available from the corporate governance section of the Group’s website.
The Company does not have a separate internal audit function. The board considers that the Company is not currently
of the size or complexity to justify a separate internal audit function, and that appropriate internal financial controls
are in place. Such controls are monitored by senior financial management and the Audit and Risk Committee.
The Director’s Report sets out some of the key risks relevant to the Company and its operations. Although not
specifically defined as such, the risks include economic, environmental and social sustainability risks. As noted above,
the Company regularly reviews risks facing the Company and adopts appropriate mitigation strategies where possible.
Remuneration
ASX CGC Principle 8
Remunerate fairly and responsibly
Remuneration Committee
The Board previously had established a Remuneration Committee that operated under a charter approved by the
Board.
Recommendation 8.1 states that a remuneration committee should be structured so that it:
i.
ii.
consists of a majority of independent directors;
is chaired by an independent chair; and
iii. has at least three members.
The members of the Remuneration Committee were Brian Moller and Reginald Gillard (Chair), both of whom are non-
executive directors. However as the Company’s Remuneration Committee only had two members and Mr Moller was
not considered independent (based on the Council’s definition), the Committee did not contain a majority of
independent directors but was chaired by an independent director. Therefore the Company did not comply with
Recommendation 8.1.
72 | PLATINA RESOURCES LIMITED Annual Report 2017
Corporate Governance Statement
During the current financial year, the Board decided that given the size and scale of operations, the full Board would
undertake the roles previously undertaken by the Remuneration Committee.
The Board is considered to have sufficient legal, corporate, commercial and industry experience in the context of the
Company’s affairs to properly assess the remuneration issues required by the Group. The Company believes that given
the size and nature of its operations, non-compliance by the Company with Recommendation 8.1 will not be
detrimental to the Company.
It is the Company’s objective to provide maximum stakeholder benefit from the retention of a high quality Board and
Executive team by remunerating directors and key executives fairly and appropriately with reference to relevant
employment market conditions. To assist in achieving this objective, the Remuneration Committee (previously) and
the Board (currently) links the nature and amount of executive director’s and officer’s remuneration to the Group’s
financial and operations performance. The expected outcomes of the remuneration structure are:
▪
▪
retention and motivation of key Executives
attraction of quality management to the Group
▪ performance incentives which allow executives, management and staff to share the rewards of the success of
Platina Resources Limited.
For details on the amount of remuneration and all monetary and non-monetary components for Key Management
Personnel during the period, please refer to the Remuneration Report within the Directors’ Report. In relation to the
payment of bonuses, options and other incentive payments, discretion is exercised by the Board, having regard to the
overall performance of Platina Resources Limited and the performance of the individual during the period.
There is no scheme to provide retirement benefits to directors other than statutory superannuation.
The Remuneration Committee Charter is set out in the Company’s Corporate Governance Charter which is available
from the corporate governance section of the Group’s website.
Remuneration Policy
The Group’s remuneration policy is also further detailed in the Remuneration Report in the Directors Report.
Non-Executive Director Remuneration
Non-executive directors are remunerated at market rates for time, commitment and responsibilities. Non-executive
directors are remunerated by fees as determined by the Board with the aggregate directors’ fee pool limit of
$250,000, as listed on 29 May 2006. The maximum aggregate amount of fees that can be paid to non-executive
directors is subject to approval by shareholders at the Annual General Meeting. Independent consultancy sources
provide advice, as required; ensuring remuneration is in accordance with market practice. Fees for non-executive
Directors are not linked to the performance of the Group. However, to align Directors’ interests with shareholders
interests, the Directors are encouraged to hold shares in the Company and are, subject to approval by shareholders,
periodically offered options and/or performance rights.
The Company has adopted a Trading Policy that includes a prohibition on hedging, aimed at ensuring participants do
not enter in to arrangements which would have the effect of limited their exposure to risk relating to an element of
their remuneration.
Other Information
Further information relating to the Group’s corporate governance practices and policies has been made publicly
available on the Group’s web site.