PLATINA RESOURCES LIMITED
ABN 25 119 007 939
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2018
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 2018
Consolidated Statement of Financial Position as at 30 June 2018
Consolidated Statement of Changes in Equity for the year ended 30 June 2018
Consolidated Statement of Cash Flows for the year ended 30 June 2018
Notes to the Financial Statements for the year ended 30 June 2018
Declaration by Directors
Independent Audit Report to the Members of Platina Resources Limited
Shareholder Information
Interests in Tenements
Corporate Governance Statement
1
2
3
7
13
27
28
29
30
31
32
56
57
61
64
65
Corporate Information
DIRECTORS
Brian Moller
Corey Nolan
Christopher Hartley
John Anderson
COMPANY SECRETARY
Paul Jurman
PRINCIPAL PLACE OF BUSINESS
Level 21, 179 Turbot Street
Brisbane, QLD, 4000
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 2018
Chairman’s Letter to Shareholders
Chairman’s Letter to Shareholders
On behalf of the Board of Directors of Platina, I take pleasure in presenting the Annual Report for 2018.
In the past year Platina has been very active in advancing the Company’s Owendale Scandium, Cobalt, Nickel and
Platinum Project in central New South Wales, Australia, one of the world’s highest-grade scandium projects, towards
development.
Platina is focussed on a staged development strategy, which was adopted to match market demand. Platina
successfully completed the continuous pilot plant program and the data generated in the program will provide a solid
basis for our Definitive Feasibility Study, which is on track for completion in Q4 2018. In July 2018, Platina was able to
secure an industrial site in Condobolin for processing facilities and permitting and other approval processes continue.
Work continued by our JV partner Artemis Resources Ltd at Munni Munni during the year. Artemis Resources Ltd has
earned its 70% interest and work to-date suggests Munni Munni has conglomerate gold potential.
Platina retains full ownership of the Skaergaard project in Greenland, one of the world’s largest undeveloped gold and
palladium resources, with a JORC Resource of 203Mt @ 0.88g/t gold and 1.33g/t palladium. Skaergaard has currently
0.69Moz platinum, 8.67Moz palladium and 5.69Moz gold.
Platina continues to actively pursue options to monetise the project with an objective of ensuring shareholder value
can be achieved from this project.
Rob Mosig, our long time CEO stepped down in January 2018. We thank Rob for his contribution to Platina over many
years and wish him well in his future endeavours.
During the year we welcomed John Anderson to the board as a non-executive director. In August 2018 we have also
welcomed Corey Nolan to the board as our new MD and CEO.
Chris Hartley acted as our interim CEO and MD from January to July 2018 and I wish to thank Chris for his tireless
efforts during the year and also our staff and technical team, to advance the Owendale project.
Our Company Secretary Paul Jurman also joined the Board to assist whilst a new CEO and MD was secured, stepping
down in August on Corey’s appointment. On behalf of the Board I wish to thank Paul for his contribution during that
time.
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 2018 | 3
Annual Mineral Resources and Ore Reserves Statement
Further details on the JORC (2012) references and statement of currency are included in the last page of the Review of
Operations.
Owendale Mineral Resources
The Owendale Mineral Resources (announced on ASX at 16 August 2018) are reported in Table 1. The Owendale
Mineral Resources as at 30 June 2017 are reported in Table 2. Mineral Resources are 100% owned by Platina. Each
cut-off grade is reported independently.
Table 1: Statement of Current Mineral Resources – Owendale, NSW (June 2018)
Mineral Resources – at a 300 ppm Scandium cut-off announced 16 August 2018
Tonnage
Dry Mt
Scandium
ppm
Platinum
g/t
Nickel
%
Cobalt
%
Scandia
tonnes*
Platinum
koz
Nickel
tonnes
Cobalt
tonnes
7.8
12.5
15.3
35.6
435
410
380
405
0.42
0.26
0.22
0.28
0.13
0.11
0.08
0.10
0.07
0.06
0.05
0.06
5,200
7,800
8,900
22,000
105
106
106
317
9,900
5,400
13,400
8,100
12,400
7,000
35,700
20,500
Classification
Measured
Indicated
Inferred
Total
Mineral Resources – at a 600 ppm Scandium cut-off announced 16 August 2018
Classification
Tonnage
Dry Mt
Scandium
ppm
Platinum
g/t
Nickel
%
Cobalt
%
Scandia
tonnes*
Platinum
koz
Nickel
tonnes
Cobalt
tonnes
Measured
Indicated
Inferred
Total
0.74
0.75
0.26
1.76
685
670
645
675
0.39
0.32
0.22
0.34
0.17
0.14
0.10
0.15
0.16
0.11
0.07
0.12
800
800
300
9
8
2
1,300
1,200
1,100
300
800
200
1,800
19
2,600
2,200
Mineral Resources – at a 0.08% Cobalt cut-off announced 16 August 2018
Classification
Tonnage
Dry Mt
Scandium
ppm
Platinum
g/t
Nickel
%
Cobalt
%
Scandia
tonnes*
Platinum
koz
Nickel
tonnes
Cobalt
tonnes
Measured
Indicated
Inferred
4.0
6.2
6.7
Total
16.9
380
350
245
315
0.49
0.26
0.21
0.29
0.29
0.20
0.21
0.22
0.14
0.12
0.11
0.12
2,340
3,340
2,520
8,210
63
51
45
11,610
5,690
12,380
7,440
13,910
7,270
160
37,900
20,410
*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
4 | PLATINA RESOURCES LIMITED Annual Report 2018
Annual Mineral Resources and Reserves Statement
Table 2: Statement of Previous Mineral Resources– Owendale, NSW (June 2017 Annual Report)
Mineral Resources – at a 300 ppm Scandium cut-off
Classification
Tonnage
Dry Mt
Scandium
ppm
Platinum
g/t
Nickel
%
Cobalt
%
Scandia
tonnes*
Platinum
koz
Nickel
tonnes
Cobalt
tonnes
Measured
Indicated
Inferred
Total
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
Mineral Resources – at a 600 ppm Scandium cut-off
Classification
Tonnage
Dry Mt
Scandium
ppm
Platinum
g/t
Nickel
%
Cobalt
%
Scandia
tonnes*
Platinum
koz
Nickel
tonnes
Cobalt
tonnes
Measured
Indicated
Inferred
Total
0.71
0.56
0.27
1.54
690
675
645
675
0.39
0.29
0.22
0.32
0.17
0.17
0.14
0.16
0.16
0.13
0.09
0.14
800
600
300
9
5
2
1,200
1,100
900
400
700
200
1,600
16
2,500
2,100
Mineral Resources – at a 0.08% Cobalt cut-off
Classification
Tonnage
Dry Mt
Scandium
ppm
Platinum
g/t
Nickel
%
Cobalt
%
Scandia
tonnes*
Platinum
koz
Nickel
tonnes
Cobalt
tonnes
Measured
Indicated
Inferred
3.9
6.2
7.5
Total
17.6
370
345
245
310
0.50
0.27
0.22
0.30
0.31
0.21
0.21
0.23
0.14
0.12
0.11
0.12
2,220
3 300
2 800
8,270
63
55
52
11,970
5,620
13,000
7 400
15,500
8 100
169
40,480
21,140
Review of material changes
The updated Mineral Resource (announced 16 August 2018) incorporates data from the 1,151 m drilling program from
33 holes completed in June 2018 and the results from a re-assaying program of previous drilling.
The intention of the June 2018 drilling program was to upgrade the Mineral Resource with two additional mining
areas for the Definitive Feasibility Study and for mine permitting. The updated Mineral Resource represents a 6%
increase in the size of the scandium Mineral Resource to 35.6 Mt at a 300 ppm cut-off level (up from 33.7 Mt), and a
2% increase in the scandium grade to 405 ppm (up from 395 ppm).
The reassaying of the samples from the two additional areas at Box Cowal and North Cincinnati resulted in 20% higher
scandium grade from the XRF analysis compared to the previous ICP analyses. This has had a significant impact on the
quantum of higher grade scandium Mineral Resource in both areas, which is supported by high grades from Platina
2018 infill drilling (announced 2 August 2018).
Consequently, the Mineral Resource estimate at the higher 600 ppm scandium cut-off has been improved significantly
with a 15% increase in the size of the scandium Mineral Resource to 1.76 Mt (up from 1.54 Mt), at the same scandium
grade of 675 ppm, after rounding.
In addition, further reassaying of historic Helix drilling has also added to the overall resource, particularly in the
southern areas where Platina has completed less drilling. The updated Mineral Resource incorporates more historic
Helix assay data improving the laterite interpretation that has resulted in geology interpretation changes in more
sparsely drilled areas largely classified as Inferred.
Some minor modifications to the geological domaining has trimmed some lower grade dilution where magnesite is
present and the material is unlikely to be considered economic due to the expected higher acid consumption.
Annual Mineral Resources and Reserves Statement
PLATINA RESOURCES LIMITED Annual Report 2018 | 5
The August 2018 Mineral Resource estimate has been successful in proving up the two additional focus areas as more
robust options than originally envisaged. For the two areas the additional drilling has increased the Mineral Resource
classification to Measured and Indicated. It is now planned these areas will be added to the mining Ore Reserve and
mining schedule for Definitive Feasibility Study and included for permitting.
The reduction in cobalt cut-off Mineral Resource is attributed largely to a southern Inferred area where the reassay
and addition of the Helix drilling has improved the estimate confidence but restricted the extrapolation of some
peripheral areas.
Owendale Ore Reserve
The Owendale Ore Reserves remains unchanged in Table 3.
The Owendale Ore Reserves are currently being updated for the current Definitive Feasibility Study economics and
parameters and also to include the updated Mineral Resource (as noted above).
The changes in the Mineral Resource are predominantly in Inferred Mineral Resource areas or areas infill drilled
outside the current Ore Reserve. Hence the new drilling and assay data are not expected to materially affect the
current Ore Reserve area but will offer new areas intended for inclusion in any updated Ore Reserve.
Table 3: Statement of Previous and Current Ore Reserves – Owendale, NSW (June 2018 and June 2017)
Ore Reserves– at a 400 ppm Scandium cut-off announced 13 September 2017 and remains unchanged
Classification
Tonnage
Dry Kt
Scandium
ppm
Proven
Probable
Total
2,225
1,765
3,990
560
540
550
Nickel
%
0.13
0.13
0.13
Cobalt
%
Scandia
tonnes*
0.09
0.08
0.09
1,896
1,463
3,359
Cobalt
tonnes
2,027
1,483
3,510
Nickel
tonnes
2,905
2,252
5,157
Owendale 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 metre 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 methods and
accuracy.
Assay batches continued use of in-house high grade scandium standards used throughout all 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 analysis (NAA) techniques, which have
allowed the development of a reliable understanding of previous assay biases by older scandium assaying methods.
Drilling and sampling was supervised by suitably qualified Platina staff. Surveying was by a registered surveyor and
assaying by a commercial laboratory (ALS). All drilling was immediately back filled and rehabilitated after drilling.
Drilling included regular quality assurance samples with blanks, field duplicates and standards submitted blind to the
laboratory. Post assaying check samples were submitted and verified the original results. 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 has progressed the reassaying and integration of the previous Helix drilling data into their database and the
Mineral Resource estimate to make the best use of the available data but still maintain a standard where that data is
considered both reliable and has a meaningful addition to peripheral areas.
6 | PLATINA RESOURCES LIMITED Annual Report 2018
Annual Mineral Resources and Reserves Statement
Mineral Resources and Ore Reserves were estimated by independent third parties (Owendale Mineral Resource by
ResEval Pty Ltd; Owendale Ore Reserve by Measured Group Pty Ltd) and reported under current JORC (2012)
reporting guidelines. Various visual and statistical checks were made to validate the results.
Skaergaard Mineral Resource
Mineral Resources estimates for Skaergaard were prepared in accordance with the JORC Code, 2012 Edition reporting
framework by Wardell Armstrong, UK and reported by the Company in an ASX announcement dated 23 July 2013
(Table 4). Mineral Resources are 100% held by Platina.
There has been no change to the Mineral Resources at Skaergaard from June 2018 to June 2017. No material
exploration activity took place at Skaergaard during the 2018 period nor since the announcement in 2013.
Table 4: Statement of Previous and Current Mineral Resources - Skaergaard, Greenland (June 2018 and
June 2017)
Mineral Resources – at a 1 g/t AuEq cut-off for Combined Reefs H0 + H3 + H5
announced 23 July 2013 and remains unchanged
Classification
Indicated
Tonnes
(kt)
5,080
Inferred
197,140
Total
202,220
Au
(g/t)
1.25
0.87
0.88
Pd
(g/t)
0.88
1.35
1.33
Pt
(g/t)
0.06
0.11
0.11
AuEq
(g/t)
1.66
1.51
1.52
Au
(Moz)
0.20
5.49
5.69
Pd
Pt
(Moz)
(Moz)
0.14
8.53
8.67
0.01
0.68
0.69
Notes:
•
•
•
•
The contained Au represents estimated contained metal in the ground and is not 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
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
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 John Horton, Principal Geologist, who is a Fellow and
Chartered Professional of the Australasian Institute of Mining and Metallurgy and a full time employee of ResEval Pty
Ltd. Mr. Horton 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. Horton 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.
Review of Operations
PLATINA RESOURCES LIMITED Annual Report 2018 | 7
Review of Operations
PLATINA SCANDIUM PROJECT, NEW SOUTH WALES
Platina Resources Ltd 100% - EL7644
Owendale is located in central New South Wales, 350 kilometres 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.
Figure 1: Platina Scandium Project locations
Figure 2: Platina Scandium Project region
8 | PLATINA RESOURCES LIMITED Annual Report 2018
Review of Operations
A Pre-Feasibility Study (“PFS”) was completed in July 2017, confirming the robust economics of developing a 42 tonne
per year scandium production facility with by-products of nickel and cobalt intermediate products.
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 99.99% purity. Ore
will be mined in advance and stockpiled for blending and road transport to the process facility off-site at Condobolin.
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. 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 5. July 2017 PFS Key Metrics
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
50ktpa
42ktpa
90.3%
610ppm Sc
US$1,500/kg
US$94m
US$58m
US$23m
US$180m
27%
3 to 4 years
Subsequent to the PFS, an exploration and infill drilling program allowed the update of the Mineral Resource
(announced 9 August 2017) and the statement of a maiden Ore Reserve (announced 13 September 2017). The maiden
Ore Reserve underpinned the positive project economics including an optimised, mine schedule of an initial 35 years
of high-grade feed (>550 ppm Sc), including an initial 5 years of high-grade cobalt (0.18% Co head grade) recovered as
a by-product.
In late 2017, Simulus Engineers was commissioned to complete a plant size optimization study, incorporating a
modularisation approach to reduce the upfront capital cost and plant size for a staged market entry (18 December
2017). This resulted in a 59% lower capital cost estimate for 55% smaller throughput and is summarized in Table 2.
Table 2. Dec 2017 Sizing Study Key Metrics
Key project parameters
Capital cost estimate
Average plant feed grade
Process throughput
Scandium oxide production
Overall scandium recovery to product
Scandium oxide (scandia) product grade
PFS results
(July 2017)
USD 94M
610 ppm Sc
50,000 dtpa
42 tpa
90.3%
99.9%
Simulus Stage1
option (Dec 2017)
USD 38.5M
640 ppm Sc*
22,570 dtpa
20 tpa
90.3%
99.9%
Annual average cash operating cost
USD 23M
USD 15.6M
Unit cash cost
USD 532/kg Oxide
USD 780/kg Oxide
Scandium oxide price assumption
USD 1,500/kg
USD 1,500/kg
* Updated from maiden Ore Reserve that post-dates the PFS (first 5 years of PFS production)
Change
(%)
(59%)
5%
(55%)
(52%)
-
-
(32%)
+47%
-
Review of Operations
PLATINA RESOURCES LIMITED Annual Report 2018 | 9
The Simulus Engineers sizing study defined the preferred start-up configuration for the Definitive Feasibility Study
(“DFS”), which encompasses a staged development to allow growth of production as the world scandia market grows.
The first stage will exclude the production of by-products to keep the capital cost as low as possible. The DFS is due for
completion in the fourth quarter 2018.
Bench scale metallurgical test work continued in 2017 and 2018 and culminated in a full pilot plant program where 5
tonnes of scandium laterite was processed at a purpose configured mini plant at SGS Mineral Metallurgy in Perth. The
continuous pitot plant ran for 11 days testing scandium recovery through a high pressure acid leach (HPAL) front end
process and solvent exchange (SX) back end metal extraction. Scandium recovery was confirmed and a suitable tailing
filter cake produced confirming plans for trucking and in-pit remediation of the tailings (announced 12 June 2018).
Refining of the extracted scandium after the pilot program produced a final scandia product that met a high 99.99%
(4N) specification.
Platina identified a suitable processing site near Condobolin in 2017. The site is a disused industrial facility with
existing earthworks, building, power and water and proximity to a regional town with housing and existing businesses.
The site offers lower infrastructure cost and solves water access issues, both critical items for the planned initial small
scale development. Discussions and work progressed with the property owner, the Lachlan Shire Council, and resulted
in the execution of a lease agreement (announced 12 July 2018), which has an option to purchase. Onsite work
completed to date includes a site clean-up, soil remediation, and ground water and geotechnical assessments.
To enhance permitting applications, two additional Mineral Resource areas next to the main road were identified for
inclusion in the DFS and Environmental Impact Study (“EIS”). These were followed up with additional drilling and
resampling (announced 2 August 2018). A significant upgrade to the previous Mineral Resource in that area in
combination with a wider spread of resampling over mostly southern areas of the Mineral Resource has increased the
total scandium Mineral Resource by 8% to 11%, for the 300 ppm and 600 ppm Sc cut-offs respectively (announced 16
August 2018). The updated Mineral Resource will be the basis of the DFS with work currently underway to update the
Ore Reserve.
Ausenco Services Pty Ltd was appointed as the lead engineering firm for the DFS with work proceeding on schedule
during 2018 along with other key consulting and engineering groups that include:
Element 21 for SX test work and design;
•
• Prudentia Process Consulting for associated SX engineering;
• Measured Group for mine planning; and
• ATC Williams for geotechnical services.
During the year, environmental baseline studies have been progressing to allow the completion of the EIS by the end
of 2018. This is managed by RW Corkery & Co who have substantial experience in New South Wales with small to
medium sized environmental studies and permitting. On completion of the DFS and EIS, the Company will lodge a
Mining Lease Application.
The Company is simultaneously seeking to secure binding offtake agreements for the supply of scandium oxide from
Owendale to facilitate project financing. Negotiations remain ongoing with multiple parties throughout the world.
10 | PLATINA RESOURCES LIMITED Annual Report 2018
Review of Operations
SKAERGAARD, GREENLAND – GOLD AND PGM PROJECT
Platina Resources Ltd 100% - EL2007/01
The Skaergaard Gold & Platinum Group Metals (“PGM”) project is located on the East Coast of Greenland,
approximately 400 kilometres west of Iceland (Figure 3). It is one of the world’s largest undeveloped gold and
palladium resource 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. The combined Mineral Resource includes both the Indicated and Inferred
categories for a total of 5.7 million ounces of gold, 8.7 million ounces of palladium and 0.79 million ounces of
platinum. The mineralisation is confined within three reefs (H0, H3 and H5), the Triple Group, which is the major
location for all the gold and PGM mineralisation within the Skaergaard Intrusion.
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. 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 has confirmed the Skaergaard ores 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
process 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
messing facilities. The camp is utilized for both Skaergaard and the Qialivarteerpik exploration licences.
No work was carried out at Skaergaard during the year. The Company is currently reviewing its options for advancing
the project and how to best generate a return from the significant historical investment.
QIALIVARTEERPIK, GREENLAND – MULTI-ELEMENT PROJECT
Platina Resources Ltd 100% - EL2012/25.
Exploration Licence 2012/25 is referred to as Qialivarteerpik, (situated near Skaergaard Exploration Licence 2007/01
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.
Review of Operations
PLATINA RESOURCES LIMITED Annual Report 2018 | 11
Figure 3: Plan of Skaergaard showing location and extent of Mineral Resource
12 | PLATINA RESOURCES LIMITED Annual Report 2018
Review of Operations
MUNNI MUNNI, WA - PGM AND GOLD PROJECT
Platina Resources Ltd 30% - Artemis Resources 70% - M47/123-126 and E47/3322
Situated in the Pilbara region of Western Australia, the Munni Munni Complex is one of Australia’s most significant
PGM occurrences. Platina 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. Subsequent to year end, the conditions were recently met reducing Platina’s
holding to 30%.
Artemis recently completed drilling, costeaning and geophysics programs at Munni Munni and the data is still being
collated and the results have not yet been announced.
JORC REFERENCES AND CURRENCY
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 Measured, Indicated and Inferred Mineral Resource – 16 August 2018
• Modular development approach reduces Owendale upfront capital expenditure by 59% - 18 December
• Owendale Maiden Scandium and Cobalt Reserve – 13 September 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 statements contained in those market releases continue to apply and have not
materially changed.
Directors’ Report
PLATINA RESOURCES LIMITED Annual Report 2018 | 13
Directors' Report
Your Directors present their report together with the financial report for Platina Resources Limited (“the
Company”) and its controlled entities (“the Group” or “the consolidated entity”) for the year ended 30 June
2018 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) - Chairman
Dark Horse Resources Limited (formerly Navaho Gold Limited) (since 22 January 2003)
Lithium Consolidated Mineral Exploration Limited (since 13 October 2016) - Chairman
Mr Moller is also a director of ASX and TSXV listed Aguia Resources Limited (since 18 December 2013) and
Chairman of LSE and TSX listed SolGold plc.
Corey Nolan, B.Com, MMEE, GAICD
Managing Director
Mr Nolan was appointed as Managing Director on 15 May 2018, effective from 1 August 2018.
Mr Nolan is an accomplished mining executive and experienced public company director with more than 25
years’ experience focused on the acquisition, funding, exploration and development of resource projects.
Most recently, Mr Nolan was Chief Executive Officer at Sayona Mining Limited. Mr Nolan was instrumental in
the identification, negotiation, due diligence and financing the acquisition of the Authier lithium project in
Canada. Since acquisition, Mr Nolan was responsible for overseeing a major expansion of the Authier lithium
resource, numerous metallurgical testing programs, and pre-feasibility and definitive studies. During Mr
Nolan’s tenure, Sayona Mining’s market capitalisation materially increased and he has raised a significant
amount of equity capital to fund the Authier work programs.
During the past three years, Mr Nolan has also served as a director of the following ASX listed companies:
Leyshon Resources Limited (since 2 October 2009)
Elementos Limited (since 24 July 2007)
14 | PLATINA RESOURCES LIMITED Annual Report 2018
Directors’ Report
Christopher Hartley, BSc; PhD; MIMMM; CEng; GAICD
Non-Executive Director
Dr Hartley was appointed as a Non-Executive Director on 1 January 2017 and has acted as an Executive
Director since 5 January 2018.
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.
John Anderson, LL.B,B.Com,GDCL,GAICD
Non-Executive Director
Mr Anderson was appointed as a Non-Executive Director on 9 April 2018.
Mr Anderson has had more than 20 years’ experience in the gas industry with 12 of those in senior executive
roles at Santos Limited (Santos). He was also a director of Darwin LNG for more than 8 years.
At Santos, Mr Anderson was responsible for leading strategic projects, business development, mergers and
acquisitions, commercial and marketing and trading. Mr Anderson also had roles leading two of Santos'
business units, in Western Australia and the Northern Territory and in Asia Pacific in which he was accountable
for all activities from exploration through to development, operations and sales.
Mr Anderson is an experienced executive in the Australian and Asian energy markets with direct international
experience in the Asian region having led businesses operating in the region for a number of years including
Santos’ significant investments in Vietnam, Bangladesh, Malaysia, PNG and Indonesia. He has extensive
experience in Asia Pacific in LNG projects and the commercialization of domestic gas and increasingly the
interplay between both gas to LNG and gas to domestic energy needs.
Mr Anderson holds no other (ASX listed) directorships.
Paul Jurman B.Com, CPA
Company Secretary – appointed 1 June 2016
Non-Executive Director – appointed 5 January 2018, resigned 16 August 2018
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.
During the past three years, Mr Jurman served as a director of the following ASX listed companies:
Nemex Resources Limited (from 31 October 2012 to 16 December 2015)
Explaurum Limited (from 21 September 2012 to 21 September 2015)
Robert Mosig, MSc; FAusIMM; FAICD
Managing Director – resigned 5 January 2018
Mr Mosig was a founding director of Platina Resources Limited. 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.
Directors’ Report
PLATINA RESOURCES LIMITED Annual Report 2018 | 15
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
2
4
3
7
7
2
4
3
Brian Moller
Christopher Hartley
John Anderson
Paul Jurman
Robert Mosig
At present, the Company does not have any formally constituted committees of the Board. The Directors
consider that the Group is not of a size nor are its affairs of such complexity as to justify the formation of
special committees.
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:
Ordinary Shares
Unlisted Options
Performance Rights
($0.20 @ 31-Dec-19)
Brian Moller
Corey Nolan
Christopher Hartley
-
-
-
John Anderson
104,340
2,000,000
4,000,000
2,000,000
2,000,000
-
2,000,000
-
-
PRINCIPAL ACTIVITIES
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.
OPERATING RESULTS
The net loss of the Group for the year, after provision for income tax, amounted to $393,453 (2017: $532,726).
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.
16 | PLATINA RESOURCES LIMITED Annual Report 2018
Directors’ Report
REVIEW OF OPERATIONS / OPERATING AND FINANCIAL REVIEW
The Group is primarily engaged in mineral exploration in Australia. A review of the Group’s operations,
including information on exploration activity and results thereof, financial position, strategies and projects of
the Group during the year ended 30 June 2018 is provided in this Financial Report and, in particular, in the
"Review of Operations" section immediately preceding this Directors’ Report. The Group’s financial position,
financial performance and use of funds information for the financial year is provided in the financial
statements that follow this Directors’ Report.
As an exploration entity, the Group has no operating revenue or earnings and consequently the Group’s
performance cannot be gauged by reference to those measures. Instead, the Directors’ consider the Group’s
performance based on the success of exploration activity, acquisition of additional prospective mineral
interests and, in general, the value added to the Group’s mineral portfolio during the course of the financial
year.
Whilst performance can be gauged by reference to market capitalisation, that measure is also subject to
numerous external factors. These external factors can be specific to the Group, generic to the mining industry
and generic to the stock market as a whole and the Board and management would only be able to control a
small number of these factors.
The Group’s business strategy for the financial year ahead and, in the foreseeable future, is to continue
exploration activity on the Group’s existing mineral projects, identify and assess new mineral project
opportunities and review development strategies where individual projects have reached a stage that allows
for such an assessment. Due to the inherent risky nature of the Group’s activities, the Directors are unable to
comment on the likely results or success of these strategies.
The Group’s activities are also subject to numerous risks, mostly outside the Board’s and management’s
control. These risks can be specific to the Group, generic to the mining industry and generic to the stock
market as a whole. The key risks, expressed in summary form, affecting the Group and its future performance
include but are not limited to:
•
•
•
•
•
•
•
geological and technical risk posed to exploration and commercial exploitation success;
security of tenure including licence renewal, inability to obtain regulatory or landowner consents or
approvals and native title issues;
change in commodity prices and market conditions;
environmental and occupational health and safety risks;
government policy changes;
retention of key staff; and
capital requirement and lack of future funding.
This is not an exhaustive list of risks faced by the Group or an investment in it. There are other risks generic to
the stock market and the world economy as whole and other risks generic to the mining industry, all of which
can impact on the Group.
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.
Directors’ Report
PLATINA RESOURCES LIMITED Annual Report 2018 | 17
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 other than the matters referred to below.
•
•
•
•
In August 2018, the Company reported an updated Mineral Resource estimate representing a 6%
increase in the size of the scandium Mineral Resource to 35.6 Mt at a 300 ppm cut-off level (up from
33.7 Mt), and a 2% increase in scandium grade to 405 ppm (up from 395 ppm) for 22,000 tonnes of
Scandium on its Owendale Project in NSW.
In July 2018, the Company entered into a lease agreement for the former abattoir site at
Condobolin, NSW that is planned to be the site for the processing facility for the Owendale Project.
In August 2018, following shareholder approval, the Company issued 4,000,000 options exercisable
at $0.20 on or before 31 December 2019 and 2,000,000 Performance Rights to Mr Nolan and
2,000,000 options exercisable at $0.20 on or before 31 December 2019 to Mr Anderson.
In August 2018, the Company announced that that Artemis Resources Limited (“Artemis”) has
satisfied the conditions required to acquire a 70% interest in the Munni Munni Project in the West
Pilbara. Formal documentation formalising the joint venture is currently being finalised.
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. The Directors are unable to comment on the
likely results from the Company’s planned exploration and pre-development activities due to the speculative
nature of such activities.
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.
18 | PLATINA RESOURCES LIMITED Annual Report 2018
Directors’ Report
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
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 2018 | 19
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
John Anderson
Paul Jurman
Non-Executive Chairman
Managing Director – resigned 5 January 2018
Non-Executive Director – appointed 1 January 2017, Executive Director
from 5 January 2018
Non-Executive Director – appointed 9 April 2018
Non-Executive Director – appointed 5 January 2018, resigned 16 August
2018
Mr Corey Nolan was appointed as Managing Director, effective from 1 August 2018 and other than this
appointment, 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.
Voting and comments made at the Company’s 2017 Annual General Meeting (AGM) – At the 2017 AGM, less
than 1% of the votes received (excluding abstentions) did not support the adoption of the remuneration report
for the year ended 30 June 2017. The Company did not receive any specific feedback at the AGM regarding its
remuneration practices.
20 | PLATINA RESOURCES LIMITED Annual Report 2018
Directors’ Report
REMUNERATION REPORT (AUDITED) – CONTINUED
Remuneration committee
Given the size and scale of the Company’s operations, the full Board has undertaken 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 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 and the non-executive Directors are formalised in
service agreements. 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 the Non-Executive directors shall each receive a fee of $50,000 plus statutory
superannuation per annum effective from their appointment date. Mr Moller, as Chairman, is entitled to a fee
of $57,800 per annum. Non-executive Directors may also be remunerated for additional specialised services
performed at the request of the Board. Upon Mr Mosig’s resignation on 5 January 2018, the Company advised
that Dr Hartley would be acting as an interim executive director, pending the appointment of a new CEO. The
Company agreed that Chris Hartley’s remuneration was $1,100 per day (or pro-rata thereof), for 12 days per
calendar month, effective from 5 January 2018.
The remuneration of the non-executive Directors for the year ending 30 June 2018 and 30 June 2017 is
detailed in Table 1 of this report.
Directors’ Report
PLATINA RESOURCES LIMITED Annual Report 2018 | 21
REMUNERATION REPORT (AUDITED) - CONTINUED
Managing 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.
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 the Company in November 2016 to be Managing Director
and Chief Executive Officer of the Company. Mr Mosig was entitled to be paid an annual salary of $323,000,
including statutory superannuation. Mr Mosig could also receive an annual bonus in addition to his annual
remuneration (excluding the statutory superannuation) upon the achievement of certain performance criteria
and at the Board’s discretion. There was no bonus paid during the year ended 30 June 2018 or 30 June 2017.
The duties were those as are customarily expected of a Managing Director and from time to time delegated by
the Board. The agreement was terminated on 5 January 2018 and Mr Mosig was paid the equivalent of 3
months’ salary in lieu of notice.
Mr Corey Nolan entered into an executive services agreement with the Company on 14 May 2018, effective
from 1 August 2018 to act as Managing Director and Chief Executive Officer of the Company. Mr Nolan is paid
an annual salary of $323,000, including statutory superannuation. Mr Nolan can also receive an annual bonus
of up to 50% of the annual remuneration (excluding the statutory superannuation) upon the achievement of
certain performance criteria. The duties are those as are customarily expected of a Managing Director and
from time to time delegated by the Board. The agreement is terminable by either party on six months written
notice.
At the general meeting of shareholders held on 16 August 2018, shareholders approved the issue to Mr Nolan
of:
• 4,000,000 options exercisable at $0.20 on or before 31 December 2019; and
• 2,000,000 Performance Rights, free of any consideration, convertible into fully paid Shares on the
basis of one Performance Right converts to one Share subject to meeting agreed KPI’s over a 2-year
period.
Executive Director remuneration for the year ending 30 June 2018 and 30 June 2017 is detailed in Table 1 of
this report.
22 | PLATINA RESOURCES LIMITED Annual Report 2018
Directors’ Report
REMUNERATION REPORT (AUDITED) - CONTINUED
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.
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 2018 | 23
REMUNERATION REPORT (AUDITED) - CONTINUED
Table 1: Remuneration details
The following table details, in respect to the financial years ended 30 June 2018 and 2017, the components of remuneration for each key management person of the
Group.
Short-term employee benefits
Post-employment
benefits
Termination
benefits
Equity
Percentage of
Remuneration as
Share-based
payment
Other
(i)
$
Superannuation/
Retirement
Benefits
$
Other
Share-based
payment
Total
$
$
$
Directors:
Brian Moller (Non-Executive Chairman)
2018 (ii)
2017
Christopher Hartley (Non-Executive Director to 5 January 2018,
interim Executive Director from 5 January 2018)
2018 (ii)
2017
John Anderson (Non-Executive Director – appointed 9 April 2018)
2018
2017
Paul Jurman (Non-Executive Director – appointed 5 January 2018)
2018 (iv)
2017
Robert Mosig (Managing Director & CEO – resigned 5 January 2018)
2018 (iii)
2017
Reginald Gillard (former Non-Executive Chairman, resigned 1
January 2018)
2018
2017
Total, all specified Directors
2018
2017
Salary/Fees
$
57,800
54,400
50,000
25,000
11,347
-
24,532
-
-
-
69,300
-
-
-
-
-
174,951
303,387
-
120,568
-
26,393
318,630
409,180
-
-
69,300
120,568
-
-
4,750
2,375
1,078
-
2,332
-
15,479
19,616
-
2,507
23,639
24,498
-
-
-
-
-
-
-
-
75,737
-
-
-
16,924
2,921
74,724
57,321
16,924
2,921
140,974
30,296
-
-
8,462
-
-
59,426
-
-
12,425
-
35,326
-
266,167
502,997
-
28,900
529,616
619,514
75,737
-
42,310
65,268
%
22.7
5.0
12.0
9.6
-
-
23.9
-
-
11.8
-
-
24 | PLATINA RESOURCES LIMITED Annual Report 2018
Director’s Report
REMUNERATION REPORT (audited) (continued)
(i)
(ii)
(iii)
(iv)
During the year ended 30 June 2018, Dr Hartley acted as an interim executive director, following Mr Mosig’s
resignation on 5 January 2018. The Company agreed that Dr Hartley’s remuneration was $1,100 per day (or
pro-rata thereof), for 12 days per calendar month, effective from 5 January 2018. 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 and Dr Hartley were each granted 2 million unlisted
options exercisable at $0.20 expiring on 31 December 2019 whose combined value has been estimated at
$90,600 over the vesting period and the charge to the profit and loss account for the reporting period is
$33,848 (2017 - $5,842).
In November 2016, following shareholder approval, Mr Mosig was granted 1 million (2016: 5 million)
performance rights whose value was estimated at $55,620 (2017 - $175,000). These performance rights were
valued over the vesting period and following Mr Mosig’s resignation on 5 January 2018, the charges
previously recognised in the profit and loss account were reversed as the performance rights lapsed on
resignation and did not vest. The reversal of previously recognised expenses on unvested performance rights
for the reporting period is $67,107 (2017 – share based payment expense $50,663). 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 was estimated at $135,900 over the vesting period and following Mr Mosig’s
resignation on 5 January 2018, the charges previously recognised in the profit and loss account were reversed
as the options did not vest. The reversal of previously recognised expenses on unvested options for the
reporting period is $8,763 (2017 – share based payment expense $8,763).
In May 2017, following shareholder approval, Mr Jurman was granted 1 million unlisted options exercisable at
$0.20 expiring on 31 December 2019 whose value has been estimated at $22,650 over the vesting period and
the charge to the profit and loss account for the reporting period is $8,462 (2017 - $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:
Directors
Brian Moller
Christopher Hartley
John Anderson
Paul Jurman
Robert Mosig (i)
Total
Balance
1 July 2017
Granted as
Compensation
Performance
Rights Converted
Net Change
Other*
Balance
30 June 2018
-
-
-
-
4,481,335
4,481,335
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(4,481,335)
(4,481,335)
-
-
-
-
N/A
-
* Net Change Other refers to shares held by Mr Mosig on his resignation date of 5 January 2018.
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:
Directors
Balance
1 July 2017
Options Granted
as Compensation
Options Exercised
/ Expired
Net Change
Other*
Balance
30 June 2018
Brian Moller
Christopher Hartley
John Anderson
Paul Jurman
Robert Mosig
Total
2,000,000
2,000,000
-
-
6,000,000
10,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,000,000
2,000,000
-
1,000,000
1,000,000
(6,000,000)
N/A
(5,000,000)
5,000,000
* Net Change Other refers to options held by Mr Mosig on his resignation date of 5 January 2018 and options held by
Mr Jurman on his appointment date of 5 January 2018.
Director’s Report
PLATINA RESOURCES LIMITED Annual Report 2018 | 25
REMUNERATION REPORT (audited) (continued)
Performance Rights of Key Management Personnel
Balance
1 July 2017
Performance
Rights Granted as
Compensation
Performance
Rights Exercised /
Expired*
Net Change
Other
Balance
30 June 2018
Directors
Brian Moller
Christopher Hartley
John Anderson
Paul Jurman
Robert Mosig (i) (ii)
Total
-
-
-
-
2,500,000
2,500,000
-
-
-
-
-
-
-
-
-
-
(2,500,000)
(2,500,000)
-
-
-
-
-
-
-
-
-
-
-
-
*2,500,000 Performance Rights expired upon Mr Mosig resignation on 5 January 2018 as they had not vested.
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 2018, HopgoodGanim, a legal firm of which Mr Brian Moller is a partner was paid
legal fees by the Group of $81,607 (2017: $53,478). There was an amount of $9,420 payable at balance date.
• During the year ending 30 June 2018, Corporate Consultants Pty Ltd, a corporate advisory firm of which Mr Paul
Jurman is a director was paid $102,000 for administration, accounting and company secretarial services. No
amounts were payable at balance date.
End of Remuneration 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 (2017: Nil).
26 | PLATINA RESOURCES LIMITED Annual Report 2018
Director’s Report
AUDITOR’S INDEPENDENCE DECLARATION
The lead auditor’s independence declaration for the year ended 30 June 2018 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 65.
This report is signed in accordance with a resolution of the directors.
Corey Nolan
Managing Director
Brisbane
Date: 26 September 2018
27| PLATINA RESOURCES LIMITED Annual Report 2018
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE
CORPORATIONS ACT 2001 TO THE DIRECTORS OF PLATINA RESOURCES LIMITED
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2018
there have been:
i.
no contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
ii. no contraventions of any applicable code of professional conduct in relation to the audit.
Bentleys
Brisbane Partnership
Chartered Accountants
Stewart Douglas
Partner
Brisbane
26 September 2018
28 | PLATINA RESOURCES LIMITED Annual Report 2018
Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income
For the year ended 30 June 2018
Note
2
3
Revenue and other income
Administration expenses
Depreciation and amortisation expense
Employee benefits expense
Exploration costs expensed
Impairment of exploration costs
Marketing expenses
Occupancy expenses
Professional services
Share based payments reversed / (expensed)
3
Operating Loss
Loss before income tax
Income tax benefit/(expense)
4
Net profit/(loss) for the year
Other comprehensive income
Other comprehensive income net of tax
Total comprehensive loss for the year
2018
$
2017
$
148,173
248,173
(193,392)
(4,678)
(482,389)
(12,102)
(345,106)
(103,665)
(19,115)
(348,580)
33,560
(1,327,294)
(1,327,294)
933,841
(393,453)
-
-
(315,009)
(1,846)
(176,043)
(5,564)
-
(66,494)
(3,582)
(259,131)
(107,789)
(687,285)
(687,285)
154,559
(532,726)
-
-
(393,453)
(532,726)
Earnings per share
Cents
Cents
Basic/diluted loss per share (cents per share)
7
(0.15)
(0.24)
The accompanying notes form part of these financial statements
Consolidated Statement of Financial Position
PLATINA RESOURCES LIMITED Annual Report 2018 | 29
Consolidated Statement of Financial Position
As at 30 June 2018
Note
2018
$
2017
$
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
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
14
15
The accompanying notes form part of these financial statements.
4,170,012
7,966,101
199,683
15,833
144,390
83,472
4,385,528
8,193,963
12,934
17,612
27,393,532
24,153,065
23,293
13,377
27,429,759
24,184,054
31,815,287
32,378,017
903,867
903,867
758,569
758,569
1,729,850
1,729,850
2,010,865
2,010,865
2,633,717
2,769,434
29,181,570
29,608,583
50,576,464
50,576,464
(2,907,913)
(2,907,913)
47,668,551
47,668,551
298,612
332,172
(18,785,593)
(18,392,140)
29,181,570
29,608,583
30 | PLATINA RESOURCES LIMITED Annual Report 2018
Consolidated Statement of Changes in Equity
Consolidated Statement of Changes in Equity
For the year ended 30 June 2018
Share Capital
Ordinary
Share-based
Payments
Reserve
Accumulated
Losses
Total
$
$
$
$
Balance at 30 June 2016
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
Share issue costs
Issue of shares
Performance rights and options expensed /
(reversed)
Sub total
Total Comprehensive loss
Balance at 30 June 2018
-
-
-
-
-
(33,560)
-
-
-
-
-
(33,560)
47,668,551
298,612
(18,392,140)
29,575,023
-
-
(393,453)
(393,453)
47,668,551
298,612
(18,785,593)
29,181,570
The accompanying notes form part of these financial statements.
Consolidated Statement of Cash Flows
PLATINA RESOURCES LIMITED Annual Report 2018| 31
Consolidated Statement of Cash Flows
For the year ended 30 June 2018
Note
2018
$
2017
$
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
Proceeds from sale of 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.
(1,365,434)
(1,024,203)
108,116
652,826
86,243
219,333
(604,492)
(718,627)
106,286
-
1,427
190,816
(16,656)
-
-
(11,006)
(3,299,310)
(1,535,235)
(3,191,597)
(1,372,081)
-
-
-
7,131,375
(406,161)
6,725,214
(3,796,089)
4,634,506
7,966,101
3,331,595
4,170,012
7,966,101
32 | PLATINA RESOURCES LIMITED Annual Report 2018
Notes to the Financial Statements
Notes to the Financial Statements for the year ended 30 June 2018
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 the entities it controlled from time to
time throughout the year. 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 26 September 2018. 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 2018 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 $393,453 for the year ended 30 June 2018 and has accumulated losses of
$18,785,593 and has a year end cash balance of $4.17m.
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 2018 | 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, management do not expect any impact from this standard.
AASB 16 Leases
•
•
•
•
Replaces AASB 117 Leases for reporting periods beginning on or after 1 January 2019.
Requires lessees to record substantially all leases to be included in the Statement of Financial Position.
Requires all leases to be amortised over the lease term. The interest component of the lease cost to be
expensed, while the principal component offsets the liability in the Statement of Financial Position.
There are no changes expected for lessors in the way that leases are accounted for.
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 2018
Notes to the Financial Statements
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
f.
Income Tax
The income tax expense (benefit) 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 as 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 2018 | 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 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 2018
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 2018 | 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 areas of interest 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, such as the likelihood of the
Group continuing to explore the area of interest for the foreseeable future, estimated production volumes and estimated
extraction costs. The Group maximises external inputs by referring to scoping and feasibility studies prepared by external
experts.
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.
An impairment of $345,106 has been recognised for the year ended 30 June 2018 (2017: $Nil), in respect of capitalised
exploration costs for areas of interest. The factor that led to the impairment was a decision by management not to renew the
exploration license for one of the areas of interest in Greenland.
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 2018
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 2018 | 39
NOTE 2
REVENUE
Interest revenue - Bank
Sale of investments1
Proceeds from sale of property, plant and equipment
Fair value change on Financial Assets held for sale1
2018
$
2017
$
109,682
37,064
1,427
-
148,173
88,357
110,816
-
49,000
248,173
1.
During the period, Platina disposed of part of its shareholding in Artemis Resources Limited (“Artemis”) for gross proceeds of
$106,286 and recorded a gain of $37,064 on the sale (2017: gross proceeds of $190,816 and recorded a gain of $110,816 on
the sale. During the prior period, the balance of Artemis shares held at balance date (30 June 2017) were marked to market
with $49,000 being the fair value change to the carrying amount of the investment in Artemis.
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 reversed / (expensed)
NOTE 4
INCOME TAX EXPENSE
(a) The components of tax expense comprise:
Current tax
Deferred tax
Income tax expense/(benefit) reported in statement of comprehensive income
(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%
(2017:27.5%)
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:
(4,678)
33,560
(1,846)
(107,789)
(652,826)
(281,015)
(933,841)
(147,600)
(6,959)
(154,559)
(365,006)
(189,003)
4,149
(9,229)
1,393
29,642
(370,086)
(157,968)
89,071
(652,826)
(933,841)
151,009
(147,600)
(154,559)
Net unrecognised deferred tax balances for tax losses and temporary differences
3,203,107
3,095,066
(d) Tax effects relating to each component of other comprehensive income:
Other comprehensive income
-
-
40 | PLATINA RESOURCES LIMITED Annual Report 2018
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
Position
Brian Moller
Non-Executive Chairman
Robert Mosig
Managing Director – resigned 5 January 2018
Christopher Hartley
Non-Executive Director – to 4 January 2018, Executive Director – from 5 January
2018
Paul Jurman
Non-Executive Director – appointed 5 January 2018
John Anderson
Non-Executive Director – appointed 9 April 2018
The key management personnel compensation included in “Employee benefits expense” and “Exploration Expenditure” is as
follows:
Short-term employee benefits
Post-employment benefits
Termination benefits
Share-based payments
2018
$
387,930
23,639
75,737
42,310
529,616
2017
$
529,748
24,498
-
65,268
619,514
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 2018, HopgoodGanim, a legal firm of which Mr Brian Moller is a partner was paid legal fees by
the Group of $81,607 (2017: $53,478). There was an amount of $9,420 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 $102,000 (2017: $108,000) 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
2018
$
2017
$
40,000
-
40,000
40,000
-
40,000
Notes to the Financial Statements
PLATINA RESOURCES LIMITED Annual Report 2018 | 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
2018
$
2017
$
(0.15)
(0.24)
(393,453)
(393,453)
(393,453)
(532,726)
(532,726)
(532,726)
2018
Number
2017
Number
Weighted average number of ordinary shares on issue in calculating basic EPS
264,126,235
226,013,153
Weighted average number of options outstanding
11,000,000
17,000,000
Weighted average number of ordinary shares outstanding during the period used in
calculating dilutive EPS
264,126,235
226,013,153
Anti-dilutive options on issue not used in dilutive EPS calculation
11,000,000
17,000,000
NOTE 8
CASH AND CASH EQUIVALENTS
Cash at bank – deposit account
Cash at bank and in hand
Cash and cash equivalents
2018
$
2017
$
2,501,690
1,668,322
4,170,012
4,000,000
3,966,101
7,966,101
The average interest rate on the deposit accounts was 1.68% at 30 June 2018 (2017 = 1.63%)
The average effective interest rate on short-term bank deposits was 2.35% (2017 = 3.00%). 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
196,217
3,466
-
139,518
2,230
2,642
199,683
144,390
42 | PLATINA RESOURCES LIMITED Annual Report 2018
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
2018
$
2017
$
779,730
(766,796)
12,934
782,289
(764,677)
17,612
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 2016
Additions
Depreciation expense
Balance at 30 June 2017
Additions
Depreciation expense
Balance at 30 June 2018
NOTE 11
EXPLORATION AND EVALUATION EXPENDITURE
Balance at beginning of financial year
Capitalised
Impaired
Exploration and evaluation expenditure capitalised – at cost
Plant and
Equipment
$
2,802
16,656
(1,846)
17,612
-
(4,678)
12,934
2018
$
2017
$
24,153,065
22,085,162
3,585,573
(345,106)
2,067,903
-
27,393,532
24,153,065
Recoverability of the carrying amount of exploration assets is dependent on the successful exploration and sale of minerals.
NOTE 12
OTHER CURRENT AND NON-CURRENT ASSETS
CURRENT
Prepayments
Financial assets held for sale
NON CURRENT
Security deposits and Rental Bond
2018
$
2017
$
15,833
-
15,833
23,293
23,293
14,472
69,000
83,472
13,377
13,377
Notes to the Financial Statements
PLATINA RESOURCES LIMITED Annual Report 2018 | 43
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 (2017: 264,126,235)
Share issue costs
(a) Ordinary Shares
Movements in Ordinary Shares
There were no movements in ordinary shares during the year ended 30 June
2018.
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
2018
$
2017
$
548,694
355,173
-
903,867
645,029
107,148
6,392
758,569
1,729,850
1,729,850
2,010,865
2,010,865
50,576,464
50,576,464
(2,907,913)
(2,907,913)
47,668,551
47,668,551
Number of Shares
$
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
There no quoted options during the year ended 30 June 2018.
(c) Unlisted Options
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.
44 | PLATINA RESOURCES LIMITED Annual Report 2018
Notes to the Financial Statements
NOTE 14
ISSUED CAPITAL (Continued)
For information relating to share options issued to key management personnel during the financial period, refer to Note 18 Share-
based Payments.
2018 - 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 2017
Options
Issued
2017/18
Options
Exercised/
Cancelled
2017/18
Closing
Balance
30 June 2018
Vested /
Exercisable
30 June 2018
Number
Number
Number
Number
Number
Options expiring 31 December
2019
Options expiring 28 April 2019
Weighted average exercise price
($)
(i)
$0.20
11,000,000
$0.20
6,000,000
17,000,000
0.20
-
-
-
-
(6,000,000)
5,000,000
-
-
6,000,000
6,000,000
(6,000,000)
11,000,000
6,000,000
0.20
0.20
0.20
(i)
6 million options expired unexercised and unvested following the resignation of Mr Robert Mosig.
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.
The weighted average contractual life of the unlisted options is 13.9 months (2017: 27.2 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
2018 - Performance Rights over ordinary shares in the capital of the Company have been granted as follows:
Grant date
Expiry Date
Note
8 December 2015
30 June 2018
14 November 2016
30 June 2018
(i)
(i)
Opening
Balance
1 July 2017
Number
1,500,000
1,000,000
2,500,000
Rights
Issued
2017/18
Number
Exercised/
Cancelled
2017/18
Closing
Balance
30 June 2018
Vested /
Exercisable
30 June 2018
Number
Number
Number
-
-
-
(1,500,000)
(1,000,000)
(2,500,000)
-
-
-
-
-
-
(i)
2,500,000 Performance Rights expired upon Mr Mosig resignation on 5 January 2018 as they had not vested.
2017 - Performance Rights over ordinary shares in the capital of the Company have been granted as follows:
Notes to the Financial Statements
PLATINA RESOURCES LIMITED Annual Report 2018 | 45
NOTE 14
ISSUED CAPITAL (Continued)
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
-
-
-
-
-
(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)
2 million Performance Rights were due to 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 were due to 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 were due to 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 was 30 June 2018 however these Performance Rights lapsed upon the resignation of Mr Mosig on 5
January 2018 as the as the performance condition was not met.
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 were due to 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 was 30 June 2018 however these
Performance Rights lapsed upon the resignation of Mr Mosig on 5 January 2018 as the as the vesting condition was not
met.
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.
(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.
46 | PLATINA RESOURCES LIMITED Annual Report 2018
Notes to the Financial Statements
NOTE 15
SHARE BASED PAYMENTS RESERVE
Share-based payments reserve
Share-based Payments Reserve
2018
$
2017
$
298,612
298,612
332,172
332,172
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
Reversal of previously recognized expenses on unvested options and
performance rights to directors
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
2018
$
332,172
-
42,310
(75,870)
-
-
-
2017
$
155,883
42,521
65,268
-
(50,500)
(100,000)
219,000
Closing balance
298,612
332,172
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
Greenland
Less than 12 months
Between 12 months
and 5 years
Greater than 5 years
$
$
$
127,979
16,144
639,896
1,129,640
639,896
-
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.
Notes to the Financial Statements
PLATINA RESOURCES LIMITED Annual Report 2018 | 47
NOTE 17
CASH FLOW INFORMATION
Reconciliation of Cash Flow from Operations with Loss after Income Tax
Loss after income tax
Non-cash flows in loss
Depreciation
Impairment of exploration costs
Share based payments reversed / (expensed)
Gain on disposal of property, plant and equipment
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
There were no non-cash financing activities during the year.
NOTE 18
SHARE-BASED PAYMENTS
Performance Rights Plan (PRP)
2018
$
2017
$
(393,453)
(532,726)
4,678
345,106
(33,560)
(1,427)
-
(37,064)
(1,361)
(790)
-
(199,212)
(287,409)
(604,492)
1,846
-
107,789
-
(49,000)
(110,816)
(3,849)
(73,901)
-
65,633
(123,603)
(718,627)
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 did not grant any performance rights in the Company (2017: 1.35 million). 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 2018 (2017: 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.
No options were issued to directors and officers during the year ended 30 June 2018 (2017: 11 million).
During the previous financial year ended 30 June 2017, 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.
48 | PLATINA RESOURCES LIMITED Annual Report 2018
Notes to the Financial Statements
NOTE 18
SHARE-BASED PAYMENTS (Continued)
The following share-based payment arrangements existed at 30 June 2018:
a.
Unlisted Options
30 June 2018
30 June 2017
Number of Options
Weighted Average
Exercise Price ($)
Number of Options
Weighted Average
Exercise Price ($)
Outstanding at beginning of the year
17,000,000
Granted (i) (ii)
Expired
Outstanding at end of the year
Exercisable at end of the year
-
(6,000,000)
11,000,000
6,000,000
0.20
0.20
(0.20)
0.20
0.20
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
Expenses arising from share-based payment transactions - Unlisted Options
Share based payments, are as follows (with additional information provided in Note 14 and 15 above):
Options to directors and company secretary (i)
Total
2018
Number
6,000,000
6,000,000
2018
$
42,310
42,310
2017
Number
11,000,000
11,000,000
2017
$
16,066
16,066
(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 was estimated at $249,150 over the vesting
period and the charge to the profit and loss account for the reporting period is $42,310 (2017 - $16,066). Following Mr
Mosig’s resignation on 5 January 2018, the charges previously recognised in the profit and loss account were
reversed as the options did not vest. The reversal of previously recognised expenses on unvested options for
the reporting period is $8,763.
During the financial year ended 30 June 2017, the Company issued 6 million options 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 2018 and 30 June 2017.
(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
During the year ended 30 June 2018, no options were exercised.
b.
Performance Rights
2 May 2017
$0.20
31 December 2019
$0.11
90%
2.08%
50%
30 June 2018
30 June 2017
Number of
Performance Rights
Weighted Average
Exercise Price ($)
Number of
Performance Rights
Weighted Average
Exercise Price ($)
Outstanding at beginning of the year
2,500,000
Granted
Exercised / Expired
Cancelled / Lapsed
Outstanding at end of the year
Exercisable at end of the year
-
(2,500,000)
-
-
-
-
-
-
-
-
-
4,250,000
1,350,000
(3,100,000)
-
2,500,000
-
-
-
-
-
-
-
(i)
2,500,000 Performance Rights expired upon Mr Mosig resignation on 5 January 2018 as they had not vested.
Notes to the Financial Statements
PLATINA RESOURCES LIMITED Annual Report 2018 | 49
NOTE 18
SHARE-BASED PAYMENTS (Continued)
The following share-based payment arrangements were in place during the current and prior periods:
2018
Number of
Performance Rights
Grant date
Expiry date
at grant date
Vesting date
Fair value
$
Performance Rights issued to R
Mosig
Performance Rights issued to R
Mosig
1,000,000
14-Nov-16
30-Jun-18
55,620
30-Jun-18
1,500,000
8-Dec-15
30-Aug-18
75,000
30-Jun-18
2,500,000 Performance Rights expired upon Mr Mosig resignation on 5 January 2018 as they had not vested.
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
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
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:
2018 – Nil.
2017
Number of
Performance Rights
Number of
performance
Rights
Exercised
Exercise date
Share price at
exercise date
Performance Rights issued to
director, R Mosig
Performance Rights issued to
consultants
2,000,000
2,000,000
8-Jul-16
1,100,000
1,100,000
13-Jan-17
NOTE 19
OPERATING SEGMENTS
The Group operates predominately in mineral exploration with a focus on platinum group metals.
Segment Information
Identification of reportable segments
$
.096
0.10
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
50 | PLATINA RESOURCES LIMITED Annual Report 2018
Notes to the Financial Statements
NOTE 19
OPERATING SEGMENTS (Continued)
(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
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
i. Segment Performance
Greenland
Australia
$
$
All Other
Segments
$
Total
$
30 June 2018
REVENUE
Interest revenue
Other revenue
Total segment revenue
-
-
-
109,682
38,491
148,173
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
(354,974)
(357,208)
Income tax benefit
281,015
652,826
Amounts not included in segment result but reviewed by Board
- Corporate charges
- Depreciation and amortisation
Net Loss after tax from continuing operations
-
-
-
-
-
109,682
38,491
148,173
148,173
(712,182)
933,841
(758,607)
(758,607)
(4,678)
(4,678)
(393,453)
Notes to the Financial Statements
PLATINA RESOURCES LIMITED Annual Report 2018 | 51
NOTE 19
OPERATING SEGMENTS (Continued)
i. Segment Performance (Continued)
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
-
-
-
-
-
88,357
159,816
248,173
248,173
(5,564)
154,559
(928,048)
(928,048)
(1,846)
(1,846)
(532,726)
- Corporate charges
- Depreciation and amortisation
Net Loss after tax from continuing operations
ii. Segment Assets
30 June 2018
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
- Impairment of Exploration and Other
Greenland
Australia
$
$
All Other
Segments
$
Total
$
15,699,896
11,693,636
-
27,393,532
4,421,755
31,815,287
44,144
3,541,429
(345,106)
(300,962)
-
3,541,429
-
-
-
3,585,573
(345,106)
3,240,467
52 | PLATINA RESOURCES LIMITED Annual Report 2018
Notes to the Financial Statements
NOTE 19
OPERATING SEGMENTS (Continued)
ii. Segment Assets (Continued)
Greenland
Australia
$
$
All Other
Segments
$
Total
$
16,000,857
8,152,208
-
24,153,065
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
iii. Segment Liabilities
115,517
115,517
1,952,386
1,952,386
Greenland
Australia
$
$
All Other
Segments
$
30 June 2018
Reconciliation of segment liabilities to Group
liabilities
2,000
901,867
Unallocated Liabilities
- Corporate
Total Group Liabilities
Greenland
Australia
$
$
All Other
Segments
$
30 June 2017
Reconciliation of segment liabilities to Group
liabilities
1,800
756,770
Unallocated Liabilities
- Corporate
Total Group Liabilities
8,224,954
32,378,019
2,067,903
2,067,903
Total
$
903,867
1,729,850
2,633,717
Total
$
758,570
2,010,865
2,769,435
-
-
-
-
-
-
Notes to the Financial Statements
PLATINA RESOURCES LIMITED Annual Report 2018 | 53
NOTE 20
FINANCIAL RISK MANAGEMENT
Financial Risk Management Policies
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.
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.
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
2018
Financial Assets
Cash and cash equivalent assets
1.68%
4,040,830
-
129,182
4,170,012
2.35%
-
-
-
11,336
-
11,336
-
211,640
211,640
4,040,830
11,336
340,822
4,392,988
-
-
-
-
-
903,867
903,867
903,867
903,867
49,476
7,966,101
Cash and cash equivalent assets
1.63%
7,916,625
Security deposits and deposits at
financial institutions
Other financial assets
Total Financial Assets
Financial Liabilities
Other financial liabilities
Total Financial Liabilities
3.00%
-
-
-
11,006
-
11,006
-
215,761
215,761
7,916,625
11,006
265,237
8,192,868
-
-
-
-
758,569
758,569
758,569
758,569
Security deposits and deposits at
financial institutions
Other financial assets
Total Financial Assets
Financial Liabilities
Other financial liabilities
Total Financial Liabilities
2017
Financial Assets
54 | PLATINA RESOURCES LIMITED Annual Report 2018
Notes to the Financial Statements
NOTE 20
FINANCIAL RISK MANAGEMENT (Continued)
Foreign exchange risk
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.
NOTE 21 PLATINA RESOURCES LIMITED PARENT INFORMATION
a. Platina Resources Limited
ASSETS
Current assets
Non-current assets
TOTAL ASSETS
LIABILITIES
Current liabilities
Non-current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Share issue costs
Share-based payments reserve
Accumulated Losses
TOTAL EQUITY
FINANCIAL PERFORMANCE
Loss for the period
2018
$
2017
$
4,275,888
8,193,963
27,539,399
24,184,054
31,815,287
32,378,017
903,867
1,729,850
2,633,717
758,569
2,010,865
2,769,434
29,181,570
29,608,583
50,576,464
50,576,464
(2,907,913)
(2,907,913)
47,668,551
47,668,551
298,612
332,172
(18,785,593)
(18,392,140)
29,181,570
26,608,583
(393,453)
(532,726
Contingent liabilities of the parent entity
The parent entity’s contingent liabilities are noted in Note 22.
For details on commitments, see Note 16.
Commitments for the acquisition of property, plant and equipment by the parent entity
The parent entity has not made any commitments for the acquisition of property, plant and equipment.
Notes to the Financial Statements
PLATINA RESOURCES LIMITED Annual Report 2018 | 55
NOTE 21
PLATINA RESOURCES LIMITED PARENT INFORMATION (Continued)
b. Interest in Subsidiaries
Company Name
Parent Entity
Country of
Incorporation
Percentage Owned (%)*
2018
2017
Platina Resources Limited
Australia
Subsidiaries
Platina (South America) Pty Ltd
Skaergaard Holdings Pty Ltd1
Platina Greenland A/S
Colombia
Australia
Greenland
100
100
100
100
-
-
* Percentage of voting power is in proportion to ownership
1 Skaergaard Holdings Pty Ltd is the parent entity of Platina Greenland A/S with a 100% interest.
None of the subsidiaries have traded during the year and do not have any assets and liabilities apart from Platina Greenland A/s
which has cash on hand of $109,640.
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 2018.
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 other than the matters referred to below.
•
•
•
•
In August 2018, the Company reported an updated Mineral Resource estimate representing a 6% increase in the size of
the scandium Mineral Resource to 35.6 Mt at a 300 ppm cut-off level (up from 33.7 Mt), and a 2% increase in scandium
grade to 405 ppm (up from 395 ppm) for 22,000 tonnes of Scandium on its Owendale Project in NSW.
In July 2018, the Company entered into a lease agreement for the former abattoir site at Condobolin, NSW that is planned
to be the site for the processing facility for the Owendale Project.
In August 2018, following shareholder approval, the Company issued 4,000,000 options exercisable at $0.20 on or before
31 December 2019 and 2,000,000 Performance Rights to Mr Nolan and 2,000,000 options exercisable at $0.20 on or
before 31 December 2019 to Mr Anderson.
In August 2018, the Company announced that that Artemis has satisfied the conditions required to acquire a 70% interest
in the Munni Munni Project in the West Pilbara. Formal documentation formalising the joint venture is currently being
finalised.
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.
56 | PLATINA RESOURCES LIMITED Annual Report 2018
Declaration by Directors
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.
giving a true and fair view of the Consolidated Entity’s financial position as at 30 June
2018 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;
ii.
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 2018.
This declaration is signed in accordance with a resolution of the Board of Directors.
Corey Nolan
Managing Director
Brisbane
Date: 26 September 2018
57| PLATINA RESOURCES LIMITED Annual Report 2018 Shareholder Information
INDEPENDENT AUDITOR’S REPORT
TO THE DIRECTORS OF PLATINA RESOURCES LIMITED
Opinion
We have audited the financial report of Platina Resources Limited (“the Company”, and its controlled entities (the
“Group”), which comprises the consolidated statement of financial position as at 30 June 2018 and the
consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated
statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and
other explanatory information, and the director’s declaration.
In our opinion, the consolidated financial report of the Group is in accordance with the Corporations Act 2001,
including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2018 and of its financial performance
for the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our
report. We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Australian Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, has been provided to the
directors of the Company at the same time as this report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matter
Exploration and Evaluation Expenditure - $27,393,532
(Refer to Note 11)
As disclosed in note 11 to the financial statements, as at 30
June 2018, capitalised exploration costs totaled $27,393,532.
Exploration and Evaluation Expenditure is considered to be a
key audit matter due to:
•
•
required
level of
judgement
The significance of the balance to the Consolidated
Entity’s consolidated financial position, as it is the largest
asset.
in evaluating
The
management’s application of the requirements of AASB
6 Exploration for and Evaluation of Mineral Resources.
AASB 6 is an industry specific accounting standard
judgements,
requiring
estimates and industry knowledge. This includes specific
requirements for expenditure to be capitalised as an
asset and subsequent requirements which must be
complied with for capitalised expenditure to continue to
be carried as an asset.
the application of significant
How our audit addressed the key audit matter
Our procedures included, amongst others:
• Assessing management’s determination of its areas of
interest for consistency with the definition in AASB 6.
This involved analysing the tenements in which the
consolidated entity holds an interest and the exploration
programmes planned for those tenements.
For each area of interest, we assessed the Consolidated
Entity’s rights to tenure by corroborating to government
registries and evaluating agreements in place with other
parties as applicable.
•
• We tested the additions to capitalised expenditure for the
year by evaluating a sample of recorded expenditure for
consistency
the capitalisation
requirements of the Consolidated Entity’s accounting
policy and the requirements of AASB 6.
to underlying records,
• We considered the activities in each area of interest to
date and assessed the planned future activities for each
area of interest by evaluating budgets for each area of
interest.
58| PLATINA RESOURCES LIMITED Annual Report 2018 Shareholder Information
INDEPENDENT AUDITOR’S REPORT
TO THE DIRECTORS OF PLATINA RESOURCES LIMITED
Key Audit Matter
How our audit addressed the key audit matter
Exploration and Evaluation Expenditure - $27,393,532
(Refer to Note 11) - continued
The assessment of
•
evaluation expenditure being inherently difficult.
impairment of exploration and
• Expenditure is incurred and assets recognised in multiple
• We assessed each area of interest for one or more of the
following circumstances that may indicate impairment of
the capitalised expenditure:
o the licenses for the right to explore expiring in the
near future or are not expected to be renewed;
jurisdictions.
o substantive expenditure for further exploration in the
specific area is neither budgeted or planned;
o decisions by regulators in the various jurisdictions in
respect of expenditure commitments
that might
impact the viability of the entity carrying forward the
expenditure;
o the results of pre-feasibility studies by external
agencies on relevant areas of interest;
o decision or intent by the Consolidated Entity to
discontinue activities in the specific area of interest
due to lack of commercially viable quantities of
resources; and
o data indicating that, although a development in the
specific area is likely to proceed, the carrying amount
of the exploration asset is unlikely to be recovered in
full from successful development of sale.
the appropriateness of
the
disclosures in note 11 to the financial statements.
related
• We assessed
Information Other than the Financial Report and Auditor's Report Thereon
The directors are responsible for the other information. The other information comprises the information included in
the Group's annual report for the year ended 30 June 2018, but does not include the financial report and our
auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. W e have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true and
fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic
alternative but to do so.
59| PLATINA RESOURCES LIMITED Annual Report 2018 Shareholder Information
INDEPENDENT AUDITOR’S REPORT
TO THE DIRECTORS OF PLATINA RESOURCES LIMITED
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
•
•
•
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Group's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Group's ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the
financial report or, if such disclosures are inadequate, to modify our opinion.
Auditor’s Responsibilities for the Audit of the Financial Report (continued)
Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future
events or conditions may cause the Group to cease to continue as a going concern.
•
•
Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial report. We are responsible for the direction,
supervision and performance of the Group audit. W e remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most significance in
the audit of the financial report of the current period and are therefore the key audit matters. We describe these
matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
60| PLATINA RESOURCES LIMITED Annual Report 2018 Shareholder Information
INDEPENDENT AUDITOR’S REPORT
TO THE DIRECTORS OF PLATINA RESOURCES LIMITED
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors' report for the year ended 30 June 2018.
In our opinion, the Remuneration Report of Platina Resources Limited, for the year ended 30 June 2018, complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Group are responsible for the preparation and presentation of the Remuneration Report in
accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
Bentleys Brisbane Partnership
Chartered Accountants
Stewart Douglas
Partner
Brisbane, 26 September 2018
Shareholder Information
PLATINA RESOURCES LIMITED Annual Report 2018 | 61
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 21 September 2018.
(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
96
216
290
853
302
18,019
722,994
2,419,557
33,451,288
227,514,377
1,757
264,126,235
The number of shareholders holding less than a marketable parcel was 326 and they hold a total of 814,315 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 10 August 2020
Number
11,000,000
6,000,000
2,000,000
Holders
Note 1
Note 2
Note 3
Holders of more than 20% of the unquoted equity securities:
1) Corey Nolan
4,000,000 options
2) Zenix Nominees Pty Ltd 6,000,000 options
3) Corey Nolan
2,000,000 performance rights
62 | PLATINA RESOURCES LIMITED Annual Report 2018
Shareholder Information
Twenty largest holders
The names of the twenty largest holders, in each class of quoted security are:
i. Ordinary shares:
#
Registered Name
BNP PARIBAS NOMINEES PTY LTD < IB AU NOMS RETAIL CLIENT DRP>
11,294,432
4.28%
1
2
3
4
5
6
CAIRNGLEN INVESTMENTS PTY LTD*
J P MORGAN NOMINEES AUSTRALIA LIMITED
SHOPFITTING HEADQUARTERS PTY LTD
SINO PORTFOLIO INTERNATIONAL LIMITED
YANDAL INVESTMENTS PTY LTD
7 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
8 MR MICHAEL WONG
9 NOVASC PTY LTD *
Number of
shares
% of total
shares
39,926,054
15.12%
30,422,069
11.52%
15,880,935
6.01%
7,900,000
2.99%
7,000,000
2.65%
3,992,004
1.51%
3,416,093
1.29%
3,408,712
1.29%
10 FORSYTH BARR CUSTODIANS LTD
2,625,000
0.99%
11 CITICORP NOMINEES PTY LTD
12 OPEKA DALE PTY LTD
13 BOND STREET CUSTODIANS LIMITED
2,432,025
0.92%
2,050,000
0.78%
1,782,814
0.67%
14 MR KEITH LEONG & MRS ELIZABETH LEONG
1,600,000
0.61%
15 TECHNICA PTY LTD
16 FORTUNE CORPORATION AUSTRALIA PTY LTD
17
MR GRAHAM WOODWARD & MRS SHERYL WOODWARD
18 MR MARK RESNIK
19 MR VINCENT DAVID MASCOLO
1,550,200
0.59%
1,475,000
0.56%
1,350,305
0.51%
1,336,000
0.51%
1,300,000
0.49%
20 MR JOHN JACOB GUNTHER & MRS MARJORIE GUNTHER & MR KEVIN CHARLES RAE
1,244,749
0.47%
Top 20
Total
* Merged holding
Substantial Shareholders
141,986,392
53.76%
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
Shareholder Information
PLATINA RESOURCES LIMITED Annual Report 2018 | 63
(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.
64 | PLATINA RESOURCES LIMITED Annual Report 2018
Interests in Tenements
Interests in Tenements
Platina Resource Limited held the following interests in tenements as at 21 September 2018:
Tenement
M47/123
M47/124
M47/125
M47/126
E47/3322
EL7644
EL8672
EL2007/01
EL2012/25
Area
Location
Ownership
% Ownership
Munni Munni
Munni Munni
Munni Munni
Munni Munni
Munni Munni
Owendale
Condobolin
Skaergaard
Qialivarteerpik
WA, Australia
WA, Australia
WA, Australia
WA, Australia
WA, Australia
NSW, Australia
NSW, Australia
Greenland
Greenland
PGM
PGM
PGM
PGM
PGM
PGM
PGM
PGM
PGM
30
30
30
30
30
100
100
100
100
•
In August 2015, Platina entered into an agreement with Artemis under which Artemis could earn a 70%
interest in the Munni Munni Platinum Group Elements Project, comprising M47/123, 124, 125, 126 and
E47/3322 (the “Munni Munni Project”) by expending $750,000 over a 3-year period. In August 2018, the
Company announced that that Artemis satisfied the conditions required to acquire a 70% interest and formal
documentation formalising the joint venture is currently being finalised.
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
Corporate Governance Statement
PLATINA RESOURCES LIMITED Annual Report 2018 | 65
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. The Group’s governance approach aims to achieve
exploration, development and financial success while meeting stakeholders’ expectations of sound corporate
governance practices by proactively determining and adopting the most appropriate corporate governance
arrangements.
ASX Listing Rule 4.10.3 requires listed companies to disclose the extent to which they have complied with the ASX Best
Practice Recommendations of the ASX Corporate Governance Council in the reporting period. A description of the
Company’s main corporate governance practices is set out below. The Corporate Governance Statement is current as
at 30 June 2018 and has been approved by the Board of Directors. All these practices, unless otherwise stated, were in
place for the entire year. They comply with the ASX Corporate Governance Principles and Recommendations (3rd
edition), however, a number of those principles and recommendations are directed towards listed companies
considerably larger than Platina Resources Limited, whose circumstances and requirements accordingly differ
markedly from the Company's. For example, the nature of the Company's operations and the size of its staff mean
that a number of the Board committees and other governance structures recommended by the CGC are not only
unnecessary in Platina’s case, but the effort and expense required to establish and maintain them would, in the
directors' view, be an unjustified diversion of shareholders' funds. Since the departure of Mr Robert Mosig on 5
January 2018 as Chief Executive Officer and Managing Director, the Company did not have a CEO / MD until the
appointment of Mr Corey Nolan on 1 August 2018 and a number of the Company's governance practices were
affected during the period.
As the Group's activities develop in size, nature and scope, the size of the Board and the implementation of additional
corporate governance structures will be given further consideration.
The Company’s website at www.platinaresources.com.au contains a corporate governance section that includes
copies of the Company’s corporate governance policies.
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.
66 | PLATINA RESOURCES LIMITED Annual Report 2018
Corporate Governance Statement
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.
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 2018, 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.
Corporate Governance Statement
PLATINA RESOURCES LIMITED Annual Report 2018 | 67
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
Robert Mosig
Brian Moller
Chris Hartley
Position
Reason for non-compliance
Managing Director Mr Mosig was employed by the
Group in an executive capacity
until his resignation on 5 January
2018.
Non-Executive
Director
Non-Executive
Director
Mr Moller is a principal of a
material professional advisor to
the Group.
Dr Hartley acted as an interim
executive director from 5 January
2018. Prior to 5 January 2018, he
was considered independent.
Mr Jurman is a director of
Corporate Consultants Pty Ltd,
who provides accounting and
company secretarial services to
the Group.
Paul Jurman
Non-Executive
Director
The Group’s Non-Executive Director, John Anderson, appointed on 9 April 2018 is considered independent.
68 | PLATINA RESOURCES LIMITED Annual Report 2018
Corporate Governance Statement
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.
The term in office held by each Director in office at the date of this report is as follows:
Name
Brian Moller
Corey Nolan
Term in Office
12 years 7 months
2 months
Christopher Hartley
1 year 9 months
John Anderson
5 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 Company does not have an audit committee. The Board considers that the Company is not currently of a size, nor
are its affairs of such complexity, to justify the formation of separate or special committees at this time. The Board as
a whole is able to address the governance aspects of the full scope of the Company’s activities and to ensure that it
adheres to appropriate ethical standards. In particular, the full Board considers those matters that would usually be
the responsibility of an audit committee. The Board considers that no efficiencies or other benefits would be gained
by establishing a separate audit committee.
External Auditors
The Company requires external auditors to demonstrate quality and independence. The performance of the external
auditor is reviewed and applications for tender of external audit services are requested as deemed appropriate, taking
into consideration assessment of performance, existing value and tender costs. It is Bentley’s policy to rotate audit
engagement partners on listed companies at least every 5 years.
Corporate Governance Statement
PLATINA RESOURCES LIMITED Annual Report 2018 | 69
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.
70 | PLATINA RESOURCES LIMITED Annual Report 2018
Corporate Governance Statement
Risk Management
ASX CGC Principle 7
Recognise and manage risk
Although the Board has adopted an Audit and Risk Committee Charter, the Board has not formally established an
Audit and Risk 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 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 will review this position annually and determine whether an Audit and Risk Committee needs to be
established.
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.
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. 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 Board 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.
Corporate Governance Statement
PLATINA RESOURCES LIMITED Annual Report 2018 | 71
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 limiting 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.