PLATINA RESOURCES LIMITED
ABN 25 119 007 939
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2019
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 2019
Consolidated Statement of Financial Position as at 30 June 2019
Consolidated Statement of Changes in Equity for the year ended 30 June 2019
Consolidated Statement of Cash Flows for the year ended 30 June 2019
Notes to the Financial Statements for the year ended 30 June 2019
Declaration by Directors
Independent Audit Report to the Members of Platina Resources Limited
Shareholder Information
Interests in Tenements
Corporate Governance Statement
Corporate Information
1
2
3
6
12
26
27
28
29
30
31
53
54
58
61
62
DIRECTORS
Brian Moller
Corey Nolan
Christopher Hartley
John Anderson
COMPANY SECRETARY
Paul Jurman
PRINCIPAL PLACE OF BUSINESS
c/- Corporate Consultants Pty Ltd
Level 2, Suite 9,
389 Oxford Street
Mount Hawthorn, WA, 6016
Phone: +61 8 9380 6789
Email:admin@platinaresources.com.au
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 2019
Chairman’s Letter to Shareholders
Chairman’s Letter to Shareholders
Dear Shareholders
On behalf of the Board of Directors of Platina, I take pleasure in presenting the Annual Report for 2019.
Platina has taken steps to broaden its asset portfolio with its recently announced farm-in and joint venture deal with
TSX-V listed Blue Moon Zinc Corp (“BMZ”) and its wholly owned subsidiary Keystones Mines, Inc, on its Mariposa
County , Blue Moon project in California, USA.
Blue Moon is a drill-ready, high-grade zinc-copper-gold deposit with significant resource expansion and development
potential. Recent drilling in 2018, intersected some of the highest grades ever encountered in the deposit and
provides scope to expand the existing mineral resource at high grades, especially in gold. Platina is planning a drilling
program for the fourth quarter 2019.
Platina can acquire up to a 70% interest in the Blue Moon Project by spending initially CAD3.25 million over 18 months
to earn 50% and a further $ CAD3.75 million over another 18 months to earn an additional 20%. Platina will be
operator of the Joint Venture.
Platina will, in the near term, acquire a 5% equity interest in BMZ, the Project owner, by subscribing to shares for
CAD300,000. In addition, Platina has a six-month option to acquire a further 5% equity interest in BMZ at market
prices. If the Company reaches a 10% interest in BMZ, it becomes entitled to appoint a member to the board of BMZ.
Additionally, in the past year Platina completed its Definitive Feasibility Study for its Platina Scandium Project in
central New South Wales, Australia, one of the world’s highest-grade scandium projects. The results were very
positive, and Platina remains focussed on a staged development strategy, which was adopted to match market
demand. Platina continues to seek off-take interest and examine future development options.
Platina retains full ownership of the Skaergaard project in Greenland, one of the world’s largest undeveloped gold and
palladium resources. Platina is currently updating its 2009 scoping study, with a view to then being able to determine
the best options to monetise the project with an objective of ensuring shareholder value can be achieved from this
project.
Platina and its 70 per cent JV partner Artemis Resources Ltd, continue to examine options to monetise the Munni
Munni project in Western Australia.
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.
On behalf of the Board of Directors of Platina, I take pleasure in presenting the Annual Report for 2019.
Yours faithfully
Brian Moller
Chairman
Annual Mineral Resources and Reserves Statement
PLATINA RESOURCES LIMITED Annual Report 2019 | 3
Annual Mineral Resources and Ore Reserves Statement
Further details on the JORC (2012) references and statement of currency are included in the Review of Operations.
Owendale Mineral Resources
Mineral Resources estimates for Owendale were prepared in accordance with the JORC Code, 2012 Edition reporting
framework by ResEval Pty Ltd and reported by the Company in an ASX announcement dated 16 August 2018 (Table 1).
Mineral Resources are 100% held by Platina. Each cut-off grade is reported independently.
There has been no change to the Mineral Resources at Owendale from June 2019 to June 2018. No material
exploration activity took place at Owendale during the 2019 period nor since the announcement in August 2018.
Table 1: Statement of Previous and Current Mineral Resources - Owendale, NSW (June 2019 and 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 2019
Annual Mineral Resources and Reserves Statement
Owendale Ore Reserve
The Owendale Ore Reserves (announced on ASX at 13 December 2018) are reported in Table 2. The Owendale Ore
Reserves as at 30 June 2018 are reported in Table 3. Mineral Resources are 100% owned by Platina. Each cut-off grade
is reported independently.
Table 2: Statement of Current Ore Reserves – Owendale, NSW (June 2019)
Ore Reserves– at a 450 ppm Scandium cut-off announced 13 December 2018
Classification
Tonnage
Dry Kt
Scandium
ppm
Proven
Probable
Total
3,054
972
4,027
575
550
570
Nickel
%
0.13
0.08
0.12
Cobalt
%
Scandia
tonnes*
0.10
0.07
0.09
2,696
816
3,512
Cobalt
tonnes
2,945
654
3,599
Table 3: Statement of Previous Ore Reserves – Owendale, NSW (June 2018)
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
4,054
767
4,821
Nickel
tonnes
2,905
2,252
5,157
Review of material changes
The increase in the pit design area reflects the inclusion of two new areas which were infill drilled mid-2018 and
updated in the August 2018 Mineral Resource statement with both Measured and Indicated Mineral Resources.
The potential increase in Ore Reserve tonnage was counter-balanced by an increase in scandium cut-off, resulting in
minimal overall change in the Ore Reserve.
The classification of the additional areas has also increased the proportion of Proven Ore Reserve, the most significant
net change to the Ore Reserves.
The small increase in scandium grade is a result of the slightly higher scandium cut-off adopted by the definitive
feasibility study used for initial planned production schedules. The Ore Reserve cut-off is well above marginal cost of
operation, hence the change in cut-off does not reflect any material change in the parameters. Instead it reflects the
increased in-pit Mineral Resource tonnage that allowed a higher cut-off for scheduling initial production.
Small changes to mining parameters with steeper pit walls, smoother final outlines and increased set-backs were
applied following more detailed study but these have minimal impact and are not considered material.
Owendale Governance and Internal Controls
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.
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.
Annual Mineral Resources and Reserves Statement
PLATINA RESOURCES LIMITED Annual Report 2019 | 5
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.
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 2019 to June 2018. No material
exploration activity took place at Skaergaard during the 2019 period nor since the announcement in 2013.
Table 4: Statement of Previous and Current Mineral Resources - Skaergaard, Greenland (June 2019 and
June 2018)
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.
6 | PLATINA RESOURCES LIMITED Annual Report 2019
Review of Operations
Review of Operations
PLATINA SCANDIUM PROJECT, NEW SOUTH WALES
Platina Resources Ltd 100% - EL7644
The Platina Scandium Project (‘PSP”) 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
Review of Operations
PLATINA RESOURCES LIMITED Annual Report 2019 | 7
In December 2018, the Company completed a Definitive Feasibility Study (“DFS”) which confirmed the technical and
financial viability of constructing a simple, low-strip ratio, open-cut mining operation and processing facility producing
scandium oxide. The positive DFS demonstrates the opportunity to create substantial long-term sustainable
shareholder value at a manageable capital cost. Key highlights of the DFS include:
• Robust financials - The DFS demonstrates a very robust financial case. Based on a mine life of 30 years, the
project generates an after-tax net present value in real terms (8% discount rate) of USD 166 million (AUD 234
million), post-tax IRR of 29% and payback period of 5.3 years. The financial model incorporates an average
scandium oxide price of USD 1550 /kg over the life of the project. Based on market research and discussions
with end-users, the Company believes this is the price necessary to drive wider-scale adoption of scandium in
alloys.
•
Low capital expenditure - The DFS is based on a processing plant designed to initially produce 20 t/y of
scandium oxide at a capital cost of USD 48.1 million (AUD 67.8 million), expandable to 40 t/y of scandium
oxide for a very low incremental capital cost of USD 11.7 million (AUD 15.6 million), as market demand for
lightweight aluminium-scandium grows.
• High-grade, large Mineral Resource base - The strength of the PSP is the very large and high-grade scandium
Mineral Resources, which are amenable to simple, low-cost, open-cut mining techniques at a low waste to
ore ratio (1.9:1). The DFS assumes that 33% of the available Ore Reserves are mined over 30 years, and
additional Ore Reserves and Mineral Resources could provide for decades of additional production or further
production expansion.
• Conventional, well tested process route - Ore mined at Red Heart will be processed through a conventional
high pressure acid leach circuit (“HPAL”) to produce 99.99% high-purity scandium oxide. The process
methodology has been extremely well tested through bench and pilot scale test work to confirm operating
and capital estimates for the DFS.
• Access to infrastructure - The processing facility will utilise an existing industrial site in Condobolin. This
unique site provides access to existing infrastructure – labour, water, power, rail, and sealed roads – which
results in lower capital costs and simplifies the permitting and approvals process.
• Potential for other revenue streams - Like other laterite projects using the HPAL process route, once all the
minerals are in solution from the HPAL process, recovery is achievable at relatively low incremental cost, thus
providing a potential future opportunity to generate cobalt, nickel and aluminium products (to make high
purity alumina) and generate additional cash flow.
•
Significant community benefits - The Company is very committed to delivering the PSP in an environmentally
and socially responsible manner. The significant investment will provide jobs, training and contracts for the
local communities.
Table 1 – Platina Scandium Project – Key Project Parameters
Stage 1 Annual Production
Stage 2 Annual Production (from Year 5)
Life-of-mine for financial model
Net Present Value (8%), real, after-tax
Internal Rate of Return, post-tax
Payback Period (undiscounted)
Stage 1 Capital Expenditure
Stage 2 Capital Expenditure
Total Life-of-Project Capital Expenditure*
Life-of-Mine Average Cash Operating Costs#
Life-of-Mine Scandium Oxide Price
USD to AUD Exchange Rate
USD
AUD
20 tonnes
40 tonnes
30 years
166 million
234 million
48.1 million
11.1 million
104.1 million
$525/kg
$1,550/kg
29%
5.3 years
0.71
67.8 million
15.6 million
146.5 million
$739/kg
$2,183/kg
*Includes sustaining capital costs. # Mining, processing, general and administration costs. Excludes royalties
Following the release of the PSP DFS, an updated Ore Reserve statement was prepared and is outlined in Table 2. (Full
details of the Ore Reserve upgrade are outlined in ASX release titled “Platina Scandium Project Ore Reserve Increase”,
13 December 2018). The DFS assumes that 33% of the available Ore Reserves are mined over 30 years, and additional
Ore Reserves and Mineral Resources could provide for decades of additional production or further production
expansion.
8 | PLATINA RESOURCES LIMITED Annual Report 2019
Review of Operations
Table 2 – JORC Ore Reserve at a 450 ppm scandium cut-off grade (Dec 2018)
Ore Reserve
Classification
Tonnage
Scandium
Cobalt
Nickel
Sc2O3
Cobalt
Nickel
Dry Kt
ppm
%
%
t
t
t
0.13
0.07
0.12
0.16
0.08
0.14
High Grade (HG) Ore >550 ppm Sc cut-off
1,576
650
Proven
610
438
Probable
Sub-Total
640
2,014
Medium Grade (MG) Ore 450 to 550 ppm Sc cut-off
500
1,479
Proven
500
534
Probable
500
2,013
Sub-Total
Total HG and MG Ore >450 ppm Sc cut off
575
Proven
550
Probable
Total
570
* Scandium Oxide (Sc2O3) product is calculated from scandium metal using a 1.53 factor
3,054
972
4,027
0.13
0.08
0.12
0.10
0.07
0.09
0.10
0.07
0.10
0.06
0.06
0.06
1,565
408
1,973
1,131
408
1,539
2,696
816
3,512
2,079
326
2,406
865
328
1,193
2,945
654
3,599
2,516
368
2,884
1,538
399
1,937
4,054
767
4,821
The Company is now focused on completing the Environmental Impact Assessment, Mining Licence Application,
Development Applications (mine and process plant), securing offtake and project financing.
The Company also invested in developing procedures to produce scandium-containing master alloy which is an
important step in being able to provide potential aluminium industry offtake partners with their preferred product.
Being able to produce the master alloy from an intermediate product may also provide the potential for capital and
operating cost reductions in the final flowsheet design.
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) – see Table 4 – Annual Mineral Resources and Ore Reserves Statement. 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 1.1 kilometres vertical depth and more than 35,000 metres of diamond drilling has been completed.
Metallurgical test work has confirmed the Skaergaard ores are amenable to gravity and flotation processes, achieving
excellent recoveries from both techniques. 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 but further test work is required.
In July 2013, the Company reported a JORC compliant Mineral Resource estimate of based on metal price assumptions
of US$1,400/oz for gold and platinum, and US$560/oz for palladium. In the last five years, the price of palladium has
substantially increased from US$736/oz to over US$1,500/oz.
Moreover, during the year, the Company also received a number of highly conditional, non-cash, offers for the
project. To ensure the best outcome for shareholders, the Company engaged an experienced advisor to assist in a
review of the offers received. In light of the advisors recommendations and the recent increase in the Palladium price,
the Company engaged SRK Limited to prepare an update of the Scoping Study they prepared in 2008. The Scoping
study will define the potential development options available for the project and enable the board to make an
informed judgement about the best future path forward for the project.
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.
Review of Operations
PLATINA RESOURCES LIMITED Annual Report 2019 | 9
Figure 3: Plan of Skaergaard showing location and extent of Mineral Resource
10 | PLATINA RESOURCES LIMITED Annual Report 2019
Review of Operations
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 on EL2012/25 during the year.
Platina controls a large ground position in Greenland and is required to comply with the Minerals Act including,
meeting the annual minimum tenement expenditure obligations. The annual exploration licence fees and obligations
increase year-on-year during the life of the licence. As Platina has held its tenure for a long period of time, the annual
expenditure commitments and fees are increasing (see Note 16 in the Financial Report). As such, it is expected that
the Platina will be required to manage its tenure position to be able to meet the expenditure commitments.
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. During the year, the conditions were met reducing Platina’s holding to 30%.
No site exploration activities were undertaken by the project operator, Karratha Metals Pty Ltd, during the period.
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:
• Platina Scandium Project - Positive Definitive Feasibility Study, 13 December 2018;
• Platina Scandium Project Ore Reserve, 13 December 2018
• Owendale Measured, Indicated and Inferred Mineral Resource – 16 August 2018
•
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.
Review of Operations
PLATINA RESOURCES LIMITED Annual Report 2019 | 11
BLUE MOON PROJECT, MARIPOSA COUNTY, CALIFORNIA, USA
Platina Resources Ltd Earning up to 70%
Subsequent to the end of the period, Platina announced a farm-in and joint venture deal with TSX-V listed Blue Moon
Zinc Corp (“BMZ”) and its wholly owned subsidiary Keystones Mines, Inc, on its Mariposa County , Blue Moon project
in California, USA (Refer ASX announcement dated 29 August 2019).
Platina can acquire up to a 70% interest in the Blue Moon Project by spending initially CAD3.25 million over 18 months
to earn 50% and a further CAD3.75 million over another 18 months to earn an additional 20%. Platina will be operator
of the Joint Venture.
As part of the agreement terms, Platina will in the near future acquire a 5% equity interest in BMZ, by subscribing to
shares for CAD300,000. In addition, Platina has a six-month option to acquire a further 5% equity interest in BMZ at
market prices.
Blue Moon is a drill-ready, high-grade zinc-copper-gold deposit with significant resource expansion and development
potential. Recent drilling in 2018, intersected some of the highest grades ever encountered in the deposit and
provides scope to expand the existing mineral resource at high grades, especially in gold. Platina is planning a drilling
program for the fourth quarter 2019.
12 | PLATINA RESOURCES LIMITED Annual Report 2019
Directors’ Report
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
2019 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 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.
Prior to joining Platina, 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 2009)
Directors’ Report
PLATINA RESOURCES LIMITED Annual Report 2019 | 13
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.Ec, 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 Carnavale Resources Limited.
During the past three years, Mr Jurman did not hold any other (ASX listed) directorships.
14 | PLATINA RESOURCES LIMITED Annual Report 2019
Directors’ Report
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
4
3
4
4
1
4
3
4
4
1
Brian Moller
Corey Nolan
Christopher Hartley
John Anderson
Paul Jurman
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 $358,460 (2018: $393,453).
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.
Directors’ Report
PLATINA RESOURCES LIMITED Annual Report 2019 | 15
REVIEW OF OPERATIONS / OPERATING AND FINANCIAL REVIEW
The Group is primarily engaged in mineral exploration in Australia, Greenland and subsequent to the end of
the period has announced a joint venture on an asset in the USA. 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 2019 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.
16 | PLATINA RESOURCES LIMITED Annual Report 2019
Directors’ Report
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.
•
•
On 29 August 2019, the Company announced it entered into a joint venture agreement to earn up
to a 70% interest in and become operator of the Blue Moon Zinc Project (Project) in the United
States. Platina will acquire up to a 70% interest in the Project by spending CAD3.25 million over 18
months to earn 50% and CAD3.75 million over another 18 months to earn an additional 20%. In
addition, the Company will in the near future acquire a 5% equity interest in the Project owner, TSX-
V listed, Blue Moon Zinc Corporation (“BMZ”), by subscribing to shares for CAD300,000.
On 29 August 2019, the Company announced an underwritten Shareholder Share Purchase Plan
(“SPP”) to raise $1.25 million before costs and a proposed Placement targeted to raise up to an
additional $1.25 million (“Top-Up Placement”) (together the “Offer”). Patersons Securities are
underwriters of the SPP offer to the amount of $1.25 million, subject to standard underwriting
terms and conditions. Additionally, the Company proposes to raise an additional circa $1.25 million
through a Top-Up Placement to further strengthen its balance sheet by way of a placement of
shares. The SPP is scheduled to close at 5.00pm (Sydney time) on 30 September 2019 and the
allotment of Shares under the SPP is scheduled to occur on 9 October 2019.
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, USA 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, USA 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.
Directors’ Report
PLATINA RESOURCES LIMITED Annual Report 2019 | 17
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, USA 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, USA 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.
18 | PLATINA RESOURCES LIMITED Annual Report 2019
Directors’ Report
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
Corey Nolan
Christopher Hartley
John Anderson
Paul Jurman
Non-Executive Chairman
Managing Director – appointed 1 August 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
There have been no 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 Directors 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 2018 Annual General Meeting (AGM): – At the 2018 AGM, less
than 8% of the votes received (excluding abstentions) did not support the adoption of the remuneration report
for the year ended 30 June 2018. The Company did not receive any specific feedback at the AGM regarding its
remuneration practices.
Directors’ Report
PLATINA RESOURCES LIMITED Annual Report 2019 | 19
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 2019 and 30 June 2018 is
detailed in Table 1 of this report.
20 | PLATINA RESOURCES LIMITED Annual Report 2019
Directors’ Report
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 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 2019 and 30 June 2018 is detailed in Table 1 of
this report.
Directors’ Report
PLATINA RESOURCES LIMITED Annual Report 2019 | 21
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 28 November 2018. 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.
22 | PLATINA RESOURCES LIMITED Annual Report 2019
Directors’ Report
REMUNERATION REPORT (AUDITED) - CONTINUED
Table 1: Remuneration details
The following table details, in respect to the financial years ended 30 June 2019 and 2018, 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
Salary/Fees
$
57,800
57,800
277,263
-
50,000
50,000
50,000
11,347
6,474
24,532
-
174,951
441,537
318,630
Other
(i)
$
Superannuation/
Retirement
Benefits
$
Other
Share-based
payment
Total
$
$
$
%
-
-
-
-
70,400
69,300
-
-
-
-
-
-
70,400
69,300
-
-
18,820
-
4,750
4,750
4,750
1,078
615
2,332
-
15,479
28,935
23,639
-
-
-
-
-
-
-
-
-
-
-
75,737
-
75,737
16,924
16,924
163,737
-
16,924
16,924
47,800
-
8,462
8,462
-
-
253,847
42,310
74,724
74,724
459,820
-
142,074
140,974
102,550
12,425
15,551
35,326
-
266,167
794,719
529,616
22.7
22.7
35.61
-
11.9
12.0
-
-
54.4
23.9
-
-
Directors:
Brian Moller (Non-Executive Chairman)
2019 (ii)
2018
Corey Nolan (Managing Director & CEO – appointed 1 August 2018)
2019 (iii)
2018
Christopher Hartley (Non-Executive Director to 5 January 2018,
interim Executive Director from 5 January 2018)
2019 (i), (ii)
2018
John Anderson (Non-Executive Director – appointed 9 April 2018)
2019 (iii)
2018
Paul Jurman (Non-Executive Director – appointed 5 January 2018)
2019 (iv)
2018
Robert Mosig (Managing Director & CEO – resigned 5 January 2018)
2019
2018
Total, all specified Directors
2019
2018
Director’s Report
PLATINA RESOURCES LIMITED Annual Report 2019 | 23
REMUNERATION REPORT (audited) (continued)
(i)
(ii)
(iii)
(iv)
During the year ended 30 June 2019 and 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.
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 (2018 - $33,848).
In August 2018, following shareholder approval, Mr Nolan was granted 4 million unlisted options exercisable
at $0.20 expiring on 31 December 2019 and Mr Anderson was granted 2 million unlisted options exercisable
at $0.20 expiring on 31 December 2019 whose combined value was $143,400 and this amount was charged
to the profit and loss account for the reporting period. Mr Nolan was also granted 2 million 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 which expires on 20 August 2020.
The value has been estimated at $180,000 over the vesting period and the charge to the profit and loss
account for the reporting period is $68,137.
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 was estimated at $22,650 over the vesting period and the
charge to the profit and loss account for the reporting period is $8,462 (2018 - $8,462).
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
Corey Nolan
Christopher Hartley
John Anderson
Paul Jurman
Total
Balance
1 July 2018
Granted as
Compensation
Performance
Rights Converted
Net Change
Other*
Balance
30 June 2019
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
104,340
104,340
-
-
-
-
* Net Change Other refers to shares purchased during the financial year ended 30 June 2019.
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 2018
Options Granted
as Compensation
(i)
Options Exercised
/ Expired
Net Change
Other*
Balance
30 June 2019
Brian Moller
Corey Nolan
2,000,000
-
-
4,000,000
Christopher Hartley
2,000,000
-
John Anderson
Paul Jurman
Total
-
2,000,000
1,000,000
5,000,000
-
6,000,000
-
-
-
-
-
-
-
-
-
-
(1,000,000)
2,000,000
4,000,000
2,000,000
2,000,000
N/A
(1,000,000)
10,000,000
* Net Change Other refers to options held by Mr Jurman on his resignation date of 16 August 2018.
i) During the financial year, following shareholder approval, Mr Nolan was issued 4 million unlisted options and Mr
Anderson was issued 2 million unlisted options as part of their remuneration and details are noted below:
24 | PLATINA RESOURCES LIMITED Annual Report 2019
Director’s Report
REMUNERATION REPORT (audited) (continued)
2019 Unlisted
Options
Number
granted
Fair value per
option at grant
date
Value of
options at
grant date
Number
vested at year
end
Last exercise
date
Grant Date
$
$
Corey Nolan
John Anderson
4,000,000 20/08/2018
2,000,000 20/08/2018
$0.0239
$0.0239
95,600
47,800
4,000,000
2,000,000
31 Dec 2019
31 Dec 2019
The Options were provided at no cost and expire on 31 December 2019.
Performance Rights of Key Management Personnel
Directors
Brian Moller
Corey Nolan (i)
Christopher Hartley
John Anderson
Paul Jurman
Total
Balance
1 July 2018
Performance
Rights Granted as
Compensation
Performance
Rights Exercised /
Expired
Net Change
Other
Balance
30 June 2019
-
-
-
-
-
-
-
2,000,000
-
-
-
2,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
2,000,000
-
-
-
2,000,000
(i) During the financial year, the Company granted 2 million performance rights for nil consideration over unissued
ordinary shares in the Company to Mr Nolan as part of his remuneration and details are noted below:
Fair value per
right at grant
date
Exercise price
per right
2019
Performance Rights
Number
granted
Grant Date
$
Corey Nolan
Tranche 1
Tranche 2
Tranche 3
Tranche 4
Tranche 5
Tranche 6
800,000 20/08/2018
200,000 20/08/2018
200,000 20/08/2018
200,000 20/08/2018
200,000 20/08/2018
400,000 20/08/2018
$
-
-
-
-
-
-
$0.09
$0.09
$0.09
$0.09
$0.09
$0.09
Maximum
total value of
grant yet to
vest
$
Number
vested at year
end
-
-
-
-
-
-
40,679
12,506
18,000
10,170
10,169
20,339
•
•
•
•
•
•
Tranche 1 - 800,000 Performance Rights in total vest upon satisfaction of a number of key performance indicators relating
to the Platina Scandium Project. The Test Date for these 800,000 Performance Rights is 20 August 2020. The
Performance Rights remain unvested at balance date.
Tranche 2 - 200,000 Performance Rights vest and convert into ordinary shares in the event that the Company’s Shares
trade at a daily VWAP of at least $0.25 for a consecutive period of at least 30 trading days commencing on 1 January
2019. The Performance Rights remain unvested at balance date.
Tranche 3 - 200,000 Performance Rights vest and convert into ordinary shares in the event that the Company’s Shares
trade at a daily VWAP of at least $0.50 for a consecutive period of at least 30 trading days commencing on 1 January
2020. The Performance Rights remain unvested at balance date.
Tranche 4 - 200,000 Performance Rights vest and convert into ordinary shares in the event that the Company acquires
new projects into the portfolio. The Test Date for these 200,000 Performance Rights is 20 August 2020. The Performance
Rights remain unvested at balance date.
Tranche 5 - 200,000 Performance Rights vest and convert into ordinary shares in the event that the Company unlocks
value for the Skaergaard Project in Greenland. The Test Date for these 200,000 Performance Rights is 20 August 2020.
The Performance Rights remain unvested at balance date.
Tranche 6 - 400,000 Performance Rights vest and convert into ordinary shares in the event that there is a change of
control transaction which results in a value of not less than $150 million. The Test Date for these 400,000 Performance
Rights is 20 August 2020. The Performance Rights remain unvested at balance date.
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.
Director’s Report
PLATINA RESOURCES LIMITED Annual Report 2019 | 25
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 2019, HopgoodGanim, a legal firm of which Mr Brian Moller is a partner was paid
legal fees by the Group of $73,723 (2018: $81,607). There was an amount of $5,034 payable at balance date.
• During the year ending 30 June 2019, Corporate Consultants Pty Ltd, a corporate advisory firm of which Mr Paul
Jurman is a director was paid $102,000 (2018: $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 (2018: Nil).
AUDITOR’S INDEPENDENCE DECLARATION
The lead auditor’s independence declaration for the year ended 30 June 2019 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 62.
This report is signed in accordance with a resolution of the directors.
Corey Nolan
Managing Director
Brisbane
Date: 30 September 2019
26 | PLATINA RESOURCES LIMITED Annual Report 2019 Auditor’s Independence Declaration
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 2019 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
30 September 2019
Consolidated Statement of Comprehensive Income
PLATINA RESOURCES LIMITED Annual Report 2019 | 27
Consolidated Statement of Comprehensive Income
For the year ended 30 June 2019
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
2019
$
2018
$
40,387
148,173
(378,759)
(5,794)
(405,251)
(112,210)
-
(170,231)
(11,421)
(272,462)
(253,847)
(193,392)
(4,678)
(482,389)
(12,102)
(345,106)
(103,665)
(19,115)
(348,580)
33,560
(1,569,588)
(1,327,294)
(1,569,588)
(1,327,294)
1,211,128
(358,460)
933,841
(393,453)
-
-
-
-
(358,460)
(393,453)
Earnings per share
Cents
Cents
Basic/diluted loss per share (cents per share)
7
(0.14)
(0.15)
The accompanying notes form part of these financial statements
28 | PLATINA RESOURCES LIMITED Annual Report 2019
Consolidated Statement of Financial Position
Consolidated Statement of Financial Position
As at 30 June 2019
Note
2019
$
2018
$
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.
1,298,952
4,170,012
10,142
13,117
199,683
15,833
1,322,211
4,385,528
19,000
12,934
29,537,519
27,393,532
41,337
23,293
29,597,856
27,429,759
30,920,067
31,815,287
215,436
215,436
903,867
903,867
1,627,674
1,627,674
1,729,850
1,729,850
1,843,110
2,633,717
29,076,957
29,181,570
50,576,464
50,576,464
(2,907,913)
(2,907,913)
47,668,551
47,668,551
552,459
298,612
(19,144,053)
(18,785,593)
29,076,957
29,181,570
Consolidated Statement of Changes in Equity
PLATINA RESOURCES LIMITED Annual Report 2019 | 29
Consolidated Statement of Changes in Equity
For the year ended 30 June 2019
Share Capital
Ordinary
Share-based
Payments
Reserve
Accumulated
Losses
Total
$
$
$
$
Balance at 30 June 2017
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
Share issue costs
Issue of shares
Performance rights and options expensed
Sub total
Total Comprehensive loss
Balance at 30 June 2019
-
-
-
-
-
(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
-
-
-
-
-
253,847
-
-
-
-
-
253,847
47,668,551
552,459
(18,785,593)
29,435,417
-
-
(358,460)
(358,460)
47,668,551
552,459
(19,144,053)
29,076,957
The accompanying notes form part of these financial statements.
30 | PLATINA RESOURCES LIMITED Annual Report 2019
Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows
For the year ended 30 June 2019
Note
2019
$
2018
$
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 credit card 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.
(1,521,820)
(1,365,434)
34,495
1,108,952
108,116
652,826
(378,373)
(604,492)
-
106,286
(11,860)
-
(20,000)
-
1,427
-
(2,460,827)
(3,299,310)
(2,492,687)
(3,191,597)
-
-
-
-
-
-
(2,871,060)
(3,796,089)
4,170,012
7,966,101
1,298,952
4,170,012
Notes to the Financial Statements
PLATINA RESOURCES LIMITED Annual Report 2019 | 31
Notes to the Financial Statements for the year ended 30 June 2019
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 the date the director’s report was signed. 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 2019 is prepared on a going concern basis, which contemplates the continuity
of normal business activity and the commercial realisation of the Group’s assets and the settlement of liabilities in the normal
course of business.
The Group has incurred a loss for the year after tax of $358,460 (2018: $393,453) and experienced net operating and
investing cash outflows of $2,871,060 (2018: $3,796,089). As at 30 June 2019, the Group has net current assets of
$1,106,775.
On 29 August 2019, the Company announced an underwritten SPP to raise $1.25 million before costs and a proposed
Placement targeted to raise up to an additional $1.25 million. The application period for the SPP will close at 5.00pm (Sydney
time) on 30 September 2019 so the quantum of the raising is unknown at present. Assuming only the amount underwritten
of $1.25 million is received, the Directors consider that additional funding will be required to enable the Group to continue as
a going concern for a period of at least twelve months from the date of signing this financial report.
Such additional funding is potentially available from a number of sources including further capital raisings, 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.
However, due to the existence of the above financial conditions, there exists a material uncertainty that may cast significant
doubt about the Group’s ability to continue as a going concern and therefore the Group may be unable to realise its assets
and discharge its liabilities in the normal course of business.
The Directors believe the Group will obtain sufficient funding from one or more of the funding opportunities detailed above
to enable it to continue as a going concern and therefore that it is appropriate to prepare the financial statements on a going
concern basis.
d. Basis of Consolidation
Controlled Entities
The financial results 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.
32 | PLATINA RESOURCES LIMITED Annual Report 2019
Notes to the Financial Statements
,
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 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.
Based on preliminary assessment, the Group does not expect this Standard to have a material impact.
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.
Notes to the Financial Statements
PLATINA RESOURCES LIMITED Annual Report 2019 | 33
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
g. Property, Plant and Equipment (Continued)
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.
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.
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.
Financial assets at amortised cost
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.
34 | PLATINA RESOURCES LIMITED Annual Report 2019
Notes to the Financial Statements
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
j.
Financial Instruments (Continued)
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.
k.
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.
l.
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.
m. 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.
n. 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.
o. 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 2019 | 35
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
p. 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.
q. 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.
r. 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.
s.
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.
No impairment has been recognised for the year ended 30 June 2019 (2018: $345,106), in respect of capitalised exploration
costs for areas of interest. The factor that led to the impairment for the year ending 30 June 2018 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.
36 | PLATINA RESOURCES LIMITED Annual Report 2019
Notes to the Financial Statements
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
t.
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.
u. 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.
v. 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 2019 | 37
NOTE 2
REVENUE
Interest revenue - Bank
Other income
Sale of investments1
Proceeds from sale of property, plant and equipment
2019
$
2018
$
33,093
7,294
-
-
40,387
109,682
-
37,064
1,427
148,173
1.
During the prior 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.
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%
(2018:27.5%)
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:
(5,794)
(253,847)
(4,678)
33,560
(1,108,542)
(102,586)
(1,211,128)
(652,826)
(281,015)
(933,841)
(431,637)
(365,006)
2,341
69,848
4,149
(9,229)
(359,448)
(370,086)
256,862
(1,108,542)
(1,211,128)
89,071
(652,826)
(933,841)
Net unrecognised deferred tax balances for tax losses and temporary differences
2,861,927
3,203,107
(d) Tax effects relating to each component of other comprehensive income:
Other comprehensive income
-
-
38 | PLATINA RESOURCES LIMITED Annual Report 2019
Notes to the Financial Statements
NOTE 5
KEY MANAGEMENT PERSONNEL
(a) Names and positions held by Group key management personnel in office at any time during the financial year are:
Director
Brian Moller
Corey Nolan
Position
Non-Executive Chairman
Managing Director – appointed 1 August 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, resigned 16 August 2018
John Anderson
Non-Executive Director
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
2019
$
511,937
28,935
-
253,847
794,719
2018
$
387,930
23,639
75,737
42,310
529,616
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 2019, HopgoodGanim, a legal firm of which Mr Brian Moller is a partner was paid legal fees by
the Group of $73,723 (2018: $81,607). There was an amount of $5,034 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 (2018: $102,000) 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
2019
$
2018
$
40,000
-
40,000
40,000
-
40,000
Notes to the Financial Statements
PLATINA RESOURCES LIMITED Annual Report 2019 | 39
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
2019
$
2018
$
(0.14)
(0.15)
(358,460)
(358,460)
(358,460)
(393,453)
(393,453)
(393,453)
2019
Number
2018
Number
Weighted average number of ordinary shares on issue in calculating basic EPS
264,126,235
264,126,235
Weighted average number of options outstanding
11,000,000
11,000,000
Weighted average number of ordinary shares outstanding during the period used in
calculating dilutive EPS
264,126,235
264,126,235
Anti-dilutive options on issue not used in dilutive EPS calculation
11,000,000
11,000,000
NOTE 8
CASH AND CASH EQUIVALENTS
Cash at bank – deposit account
Cash at bank and in hand
Cash and cash equivalents
2019
$
2018
$
750,000
548,952
1,298,952
2,501,690
1,668,322
4,170,012
The average interest rate on the deposit accounts was 0.85% at 30 June 2019 (2018 = 1.68%)
The average effective interest rate on short-term bank deposits was 2.40% (2018 = 2.35%). 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
Total Receivables
8,077
2,065
10,142
196,217
3,466
199,683
40 | PLATINA RESOURCES LIMITED Annual Report 2019
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
2019
$
2018
$
791,590
(772,590)
19,000
779,730
(766,796)
12,934
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 2017
Depreciation expense
Balance at 30 June 2018
Additions
Depreciation expense
Balance at 30 June 2019
NOTE 11
EXPLORATION AND EVALUATION EXPENDITURE
Balance at beginning of financial year
Capitalised
Impaired
Exploration and evaluation expenditure capitalised – at cost
Plant and
Equipment
$
17,612
(4,678)
12,934
11,860
(5,794)
19,000
2019
$
2018
$
27,393,532
24,153,065
2,143,987
-
3,585,573
(345,106)
29,537,519
27,393,532
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
NON CURRENT
Security and credit card deposits and Rental Bond
2019
$
2018
$
13,117
13,117
41,337
41,337
15,833
15,833
23,293
23,293
Notes to the Financial Statements
PLATINA RESOURCES LIMITED Annual Report 2019 | 41
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 (2018: 264,126,235)
Share issue costs
(a) Ordinary Shares
Movements in Ordinary Shares
2019
$
2018
$
120,535
79,181
15,720
215,436
548,694
355,173
-
903,867
1,627,264
1,627,264
1,729,850
1,729,850
50,576,464
50,576,464
(2,907,913)
(2,907,913)
47,668,551
47,668,551
There were no movements in ordinary shares during the year ended 30 June 2019 or 30 June 2018.
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 2019.
(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.
For information relating to share options issued to key management personnel during the financial period, refer to Note 18 Share-
based Payments.
2019 - 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 2018
Options
Issued
2018/19
Options
Exercised/
Cancelled
2018/18
Closing
Balance
30 June 2019
Vested /
Exercisable
30 June 2019
Options expiring 31 December
2019
Options expiring 28 April 2019
(i)
(ii)
Weighted average exercise price
($)
Number
Number
Number
Number
Number
$0.20
5,000,000
6,000,000
-
11,000,000
6,000,000
$0.20
6,000,000
-
(6,000,000)
-
-
11,000,000
6,000,000
(6,000,000)
11,000,000
6,000,000
0.20
0.20
0.20
0.20
0.20
42 | PLATINA RESOURCES LIMITED Annual Report 2019
Notes to the Financial Statements
NOTE 14
ISSUED CAPITAL (Continued)
(i)
(ii)
6 million options were issued to directors, Corey Nolan and John Anderson as part of their remuneration package.
6 million options expired unexercised on 28 April 2019.
2018 - Options to take up ordinary shares in the capital of the Company have been granted as follows:
Exercise
Period
Note
Exercise
Price
Opening
Balance
1 July 2017
Options
Issued
2017/18
Options
Exercised/
Cancelled
2017/18
Closing
Balance
30 June 2018
Vested /
Exercisable
30 June 2018
Number
Number
Number
Number
Number
Options expiring 31 December
2019
Options expiring 28 April 2019
Weighted average exercise price
($)
(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.
The weighted average contractual life of the unlisted options is 6 months (2018: 13.9 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
2019 - Performance Rights over ordinary shares in the capital of the Company have been granted as follows:
Grant date
Expiry Date
Note
20 August 2018
20 August 2020
(i)
Opening
Balance
1 July 2018
Number
Rights
Issued
2018/19
Number
Exercised/
Cancelled
2018/19
Closing
Balance
30 June 2019
Vested /
Exercisable
30 June 2019
Number
Number
Number
-
-
2,000,000
2,000,000
-
-
2,000,000
2,000,000
-
-
(i)
On 20 August 2018, 2 million performance rights were granted to Corey Nolan and vest subject to meeting specific
performance conditions as follows.
•
•
•
•
•
•
Tranche 1 - 800,000 Performance Rights in total vest upon satisfaction of a number of key performance indicators relating
to the Platina Scandium Project. The Test Date for these 800,000 Performance Rights is 20 August 2020. The
Performance Rights remain unvested at balance date.
Tranche 2 - 200,000 Performance Rights vest and convert into ordinary shares in the event that the Company’s Shares
trade at a daily VWAP of at least $0.25 for a consecutive period of at least 30 trading days commencing on 1 January
2019. The Performance Rights remain unvested at balance date.
Tranche 3 - 200,000 Performance Rights vest and convert into ordinary shares in the event that the Company’s Shares
trade at a daily VWAP of at least $0.50 for a consecutive period of at least 30 trading days commencing on 1 January
2020. The Performance Rights remain unvested at balance date.
Tranche 4 - 200,000 Performance Rights vest and convert into ordinary shares in the event that the Company acquires
new projects into the portfolio. The Test Date for these 200,000 Performance Rights is 20 August 2020. The Performance
Rights remain unvested at balance date.
Tranche 5 - 200,000 Performance Rights vest and convert into ordinary shares in the event that the Company unlocks
value for the Skaergaard Project in Greenland. The Test Date for these 200,000 Performance Rights is 20 August 2020.
The Performance Rights remain unvested at balance date.
Tranche 6 - 400,000 Performance Rights vest and convert into ordinary shares in the event that there is a change of
control transaction which results in a value of not less than $150 million. The Test Date for these 400,000 Performance
Rights is 20 August 2020. The Performance Rights remain unvested at balance date.
Notes to the Financial Statements
PLATINA RESOURCES LIMITED Annual Report 2019 | 43
NOTE 14
ISSUED CAPITAL (Continued)
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
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
-
-
-
(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.
(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.
NOTE 15
SHARE BASED PAYMENTS RESERVE
Share-based payments reserve
Share-based Payments Reserve
2019
$
2018
$
552,459
552,459
298,612
298,612
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 directors and key management
personnel
Reversal of previously recognized expenses on unvested options and
performance rights to directors
Closing balance
2019
$
2018
$
298,612
253,847
332,172
42,310
-
(75,870)
552,459
298,612
44 | PLATINA RESOURCES LIMITED Annual Report 2019
Notes to the Financial Statements
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
$
$
$
132,040
432,949
660,199
202,612
528,160
-
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.
For the financial year ending June 2020 the Group may seek to renegotiate tenement arrangements or apply for exemptions
against expenditure in relation to those tenements which did not have sufficient expenditure recorded against them in the prior 12
months of their term. In the event that renegotiation does not occur or exemption for these tenements is not granted, the
tenements may not be renewed, and the Group may have to impair/expense the value of the amount capitalised to exploration
and evaluation assets for those tenements.
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
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)
2019
$
2018
$
(358,460)
(393,453)
5,794
-
253,847
-
-
2,716
191,497
-
(387,311)
(86,456)
(378,373)
4,678
345,106
(33,560)
(1,427)
(37,064)
(1,361)
(790)
-
(199,212)
(287,409)
(604,492)
Shareholders approved the Company’s PRP at the Annual General Meeting held on 28 November 2018. The PRP is designed to
provide a framework for competitive and appropriate remuneration so as to retain and motivate skilled and qualified personnel
whose personal rewards are aligned with the achievement of the Company’s growth and strategic objectives.
During the financial year, the Company granted 2 million performance rights for nil consideration over unissued ordinary shares in
the Company to Mr Nolan as part of his remuneration (2018: Nil). 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 2019 (2018: nil).
Notes to the Financial Statements
PLATINA RESOURCES LIMITED Annual Report 2019 | 45
NOTE 18
SHARE-BASED PAYMENTS (Continued)
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.
6 million options were issued to directors and officers during the year ended 30 June 2019 (2018: nil). Refer to Note 14(c) for
additional information.
The following share-based payment arrangements existed at 30 June 2019:
a.
Unlisted Options
30 June 2019
30 June 2018
Number of Options
Weighted Average
Exercise Price ($)
Number of Options
Weighted Average
Exercise Price ($)
Outstanding at beginning of the year
11,000,000
Granted (i) (ii)
Expired
Outstanding at end of the year
Exercisable at end of the year
6,000,000
(6,000,000)
11,000,000
6,000,000
0.20
0.20
(0.20)
0.20
0.20
17,000,000
-
(6,000,000)
11,000,000
6,000,000
0.20
0.20
(0.20)
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
2019
Number
11,000,000
11,000,000
2019
$
185,710
185,710
2018
Number
11,000,000
11,000,000
2018
$
42,310
42,310
(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 - $42,310). 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 prior reporting
period was $8,763.
In August 2018, following shareholder approval, Mr Nolan was issued 4 million unlisted options and Mr Anderson was
issued 2 million unlisted options, exercisable at $0.20 expiring on 31 December 2019 whose combined value was
$143,400 and this amount was charged to the profit and loss account for the reporting period.
The following table lists the inputs to the model used for the financial period ended 30 June 2019 and 30 June 2018.
(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 2019, no options were exercised.
b.
Performance Rights
20 August 2018
$0.20
2 May 2017
$0.20
31 December 2019
31 December 2019
$0.09
100%
2.04%
Nil
$0.11
90%
2.08%
50%
30 June 2019
30 June 2018
Number of
Performance Rights
Weighted Average
Exercise Price ($)
Number of
Performance Rights
Weighted Average
Exercise Price ($)
Outstanding at beginning of the year
-
Granted
Exercised / Expired
Cancelled / Lapsed
2,000,000
-
-
Outstanding at end of the year
2,000,000
Exercisable at end of the year
-
-
-
-
-
-
-
2,500,000
-
(2,500,000)
-
-
-
-
-
-
-
-
-
46 | PLATINA RESOURCES LIMITED Annual Report 2019
Notes to the Financial Statements
NOTE 18
SHARE-BASED PAYMENTS (Continued)
(i)
2,500,000 Performance Rights expired upon Mr Mosig resignation on 5 January 2018 as they had not vested.
The following share-based payment arrangements were in place during the current and prior periods:
2019
Number of
Performance Rights
Grant date
Expiry date
at grant date
Vesting date
Fair value
$
Performance Rights issued to C
Nolan
2,000,000
20-Aug-18
20-Aug-20
180,000
20-Aug-20
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.
No performance rights were exercised during the current and prior periods.
NOTE 19
OPERATING SEGMENTS
The Group operates predominately in mineral exploration with a focus on platinum group metals.
Segment Information
Identification of reportable segments
The Group has identified its operating segments based on the internal reports that are reviewed and used by the Board of Directors
(chief operating decision makers) in assessing performance and determining the allocation of resources.
The Group is managed primarily on the basis of geographical locations as these locations have notably different risk profiles and
performance assessment criteria. Operating segments are therefore determined on the same basis.
Reportable segments disclosed are based on aggregating operating segments where the segments are considered to have similar
economic characteristics and are similar with respect to any external regulatory requirements.
Basis of accounting for purposes of reporting by operating segments
(a) Accounting policies adopted
Unless stated otherwise, all amounts reported to the Board of Directors, being the chief decision maker with respect to operating
segments, are determined in accordance with accounting policies that are consistent to those adopted in the annual financial
statements of the Group.
(b) Segment assets
Where an asset is used across multiple segments, the asset is allocated to that segment that receives majority economic value from
that asset. In the majority of instances, segment assets are clearly identifiable on the basis of their nature and physical location.
(c) Segment liabilities
Liabilities are allocated to segments where there is a direct nexus between the incurrence of the liability and the operations of the
segment. Segment liabilities include trade and other payables and deferred tax liabilities.
(d) Unallocated items
The following items of revenue, expenses, assets and liabilities are not allocated to operating segments as they are not considered
part of the core operations of any segment:
Impairment of assets and other non-recurring items of revenue or expense
Income tax expense
Derivatives
Deferred tax assets and liabilities
Current tax liabilities
Other financial liabilities
Discontinuing operations
Intangible assets
Notes to the Financial Statements
PLATINA RESOURCES LIMITED Annual Report 2019 | 47
NOTE 19
OPERATING SEGMENTS (Continued)
i. Segment Performance
Greenland
Australia
$
$
All Other
Segments
$
Total
$
30 June 2019
REVENUE
Interest revenue
Other revenue
Total segment revenue
-
-
-
33,093
7,294
40,387
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
(9,705)
(112,210)
102,176
1,108,952
Amounts not included in segment result but reviewed by Board
-
-
-
-
-
33,093
7,294
40,387
40,387
(121,915)
1,211,128
- Corporate charges
- Depreciation and amortisation
Net Loss after tax from continuing operations
(1,482,266)
(1,482,266)
(5,794)
(5,794)
(358,460)
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)
48 | PLATINA RESOURCES LIMITED Annual Report 2019
Notes to the Financial Statements
NOTE 19
OPERATING SEGMENTS (Continued)
ii. Segment Assets
Greenland
Australia
$
$
All Other
Segments
$
Total
$
15,863,688
13,673,830
-
29,537,518
1,382,549
30,920,067
30 June 2019
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
163,793
1,980,194
- Impairment of Exploration and Other
-
-
163,793
1,980,194
-
-
-
2,143,987
-
2,143,987
Greenland
Australia
$
$
All Other
Segments
$
Total
$
15,699,896
11,693,636
-
27,393,532
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
iii. Segment Liabilities
44,144
3,541,429
(345,106)
(300,962)
-
3,541,429
Greenland
Australia
$
$
All Other
Segments
$
30 June 2019
Reconciliation of segment liabilities to Group
liabilities
3,976
211,460
Unallocated Liabilities
- Corporate
Total Group Liabilities
4,421,755
31,815,287
3,585,573
(345,106)
3,240,467
Total
$
215,436
1,627,674
1,843,110
-
-
-
-
-
Notes to the Financial Statements
PLATINA RESOURCES LIMITED Annual Report 2019 | 49
NOTE 19
OPERATING SEGMENTS (Continued)
ii. Segment Liabilities (Continued)
Greenland
Australia
$
$
All Other
Segments
$
Total
$
30 June 2018
Reconciliation of segment liabilities to Group
liabilities
2,000
901,867
Unallocated Liabilities
- Corporate
Total Group Liabilities
NOTE 20
FINANCIAL RISK MANAGEMENT
Financial Risk Management Policies
-
-
903,867
1,729,850
2,633,717
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. 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.
Security deposits and deposits at
financial institutions
Other financial assets
Total Financial Assets
Financial Liabilities
Other financial liabilities
Total Financial Liabilities
2018
Financial Assets
50 | PLATINA RESOURCES LIMITED Annual Report 2019
Notes to the Financial Statements
NOTE 20
FINANCIAL RISK MANAGEMENT (Continued)
Weighted
Average
Effective
Interest Rate
Floating
Interest Rate
Less than 1
year
Fixed Interest
Rate Maturing
Non-Interest
Bearing
Total
2019
Financial Assets
Cash and cash equivalent assets
0.85%
1,191,412
-
107,540
1,298,952
2.40%
-
-
-
31,337
10,000
41,337
-
10,142
10,142
1,191,412
31,337
127,682
1,350,431
-
-
-
-
-
215,436
215,436
215,436
215,436
129,182
4,170,012
Cash and cash equivalent assets
1.68%
4,040,830
Security deposits and deposits at
financial institutions
Other financial assets
Total Financial Assets
Financial Liabilities
Other financial liabilities
Total Financial Liabilities
Foreign exchange risk
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
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.
Notes to the Financial Statements
PLATINA RESOURCES LIMITED Annual Report 2019 | 51
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
2019
$
2018
$
1,220,920
4,275,888
29,696,971
27,539,399
30,917,891
31,815,287
213,260
1,627,674
1,840,934
903,867
1,729,850
2,633,717
29,076,957
29,181,570
50,576,464
50,576,464
(2,907,913)
(2,907,913)
47,668,551
47,668,551
552,459
298,612
(19,144,053)
(18,785,593)
29,076,957
29,181,570
(358,460)
(393,453)
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.
52 | PLATINA RESOURCES LIMITED Annual Report 2019
Notes to the Financial Statements
NOTE 21
PLATINA RESOURCES LIMITED PARENT INFORMATION (Continued)
b. Interest in Subsidiaries
Company Name
Parent Entity
Country of
Incorporation
Percentage Owned (%)*
2019
2018
Platina Resources Limited
Australia
Subsidiaries
Platina (South America) Pty Ltd
Red Heart Mines Pty Ltd
Platina Scandium Pty Ltd
Skaergaard Holdings Pty Ltd1
Platina Greenland A/S
Colombia
Australia
Australia
Australia
Greenland
100
100
100
100
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 $101,291.
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 2019.
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.
• On 29 August 2019, the Company announced it entered into a joint venture agreement to earn up to a 70% interest in
and become operator of the Blue Moon Zinc Project (Project) in the United States. Platina will acquire up to a 70%
interest in the Project by spending CAD3.25 million over 18 months to earn 50% and CAD3.75 million over another 18
months to earn an additional 20%. In addition, the Company will in the near future acquire a 5% equity interest in the
Project owner, TSX-V listed, Blue Moon Zinc Corporation (“BMZ”), by subscribing to shares for CAD300,000.
• On 29 August 2019, the Company announced an underwritten Shareholder Share Purchase Plan (“SPP”) to raise $1.25
million before costs and a proposed Placement targeted to raise up to an additional $1.25 million (“Top-Up Placement”)
(together the “Offer”). Patersons Securities are underwriters of the SPP offer to the amount of $1.25 million, subject to
standard underwriting terms and conditions. Additionally, the Company proposes to raise an additional circa $1.25
million through a Top-Up Placement to further strengthen its balance sheet by way of a placement of shares. The SPP is
scheduled to close at 5.00pm (Sydney time) on 30 September 2019 and the allotment of Shares under the SPP is
scheduled to occur on 9 October 2019.
The financial report was authorised for issue on the date the director’s report was signed. The Board has the power to amend and
re-issue the financial report.
Declaration by Directors
PLATINA RESOURCES LIMITED Annual Report 2019 | 53
Declaration by Directors
1.
In the opinion of the Directors of Platina Resources Limited (the ‘Company’):
a.
the accompanying financial statements and notes are in accordance with the Corporations Act 2001
including:
i.
ii.
giving a true and fair view of the Consolidated Entity’s financial position as at 30 June 2019 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;
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.
b.
c.
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 2019.
This declaration is signed in accordance with a resolution of the Board of Directors.
Corey Nolan
Managing Director
Brisbane
Date: 30 September 2019
54 | PLATINA RESOURCES LIMITED Annual Report 2019 Independent Audit Report to the Members of Platina Resources Limited
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 2019 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 2019 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
W e 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.
W e 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.
Material Uncertainty Related to Going Concern
We draw attention to Note 1(c) in the financial report, which indicates that the Company incurred a net loss of
$358,460 during the year ended 30 June 2019 (2018: $393,453) and experienced net operating and investing cash
outflows of $2,871,060 (2018: $3,796,089). As stated in Note 1(c), the events or conditions, along with other
matters as set forth in Note 1(c), indicate that a material uncertainty exists that may cast significant doubt on the
Company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional 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 - $29,537,519
(Refer to Note 11)
As disclosed in note 11 to the financial statements, as at 30
June 2019, capitalised exploration costs totaled $29,537,519.
Exploration and Evaluation Expenditure is considered to be a
key audit matter due to:
•
The significance of the balance to the Consolidated
Entity’s consolidated financial position, as it is the largest
asset.
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,
55 | PLATINA RESOURCES LIMITED Annual Report 2019 Independent Audit Report to the Members of Platina Resources Limited
INDEPENDENT AUDITOR’S REPORT
TO THE DIRECTORS OF PLATINA RESOURCES LIMITED
(Continued)
Key Audit Matters (Continued)
Key Audit Matter
How our audit addressed the key audit matter
required
judgement
Exploration and Evaluation Expenditure - $29,537,519
(Refer to Note 11) – continued
level of
•
The
in evaluating
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
•
The assessment of
evaluation expenditure being inherently difficult.
impairment of exploration and
• Expenditure is incurred and assets recognised in multiple
jurisdictions.
• 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.
• We assessed each area of interest for one or more of the
following circumstances that may indicate impairment of
the capitalised expenditure:
o Ensured that the Group has rights to tenure and
maintains the tenements in good standing;
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 or 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 2019, 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. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true and
fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the 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.
56 | PLATINA RESOURCES LIMITED Annual Report 2019 Independent Audit Report to the Members of Platina Resources Limited
INDEPENDENT AUDITOR’S REPORT
TO THE DIRECTORS OF PLATINA RESOURCES LIMITED
(Continued)
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. W e also:
•
•
•
•
•
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Group's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Group's ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the
financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause
the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial report. We are responsible for the direction,
supervision and performance of the Group audit. We remain solely responsible for our audit opinion.
W e 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.
57 | PLATINA RESOURCES LIMITED Annual Report 2019 Independent Audit Report to the Members of Platina Resources Limited
INDEPENDENT AUDITOR’S REPORT
TO THE DIRECTORS OF PLATINA RESOURCES LIMITED
(Continued)
Report on the Remuneration Report
Opinion on the Remuneration Report
W e have audited the Remuneration Report included in the directors' report for the year ended 30 June 2019.
In our opinion, the Remuneration Report of Platina Resources Limited, for the year ended 30 June 2019, 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
30 September 2019
58 | PLATINA RESOURCES LIMITED Annual Report 2019
Shareholder Information
Shareholder Information
Additional information required by the Australian Securities Exchange and not shown elsewhere in this report is as
follows. The information is current as at 24 September 2019.
(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
100
188
254
804
305
19,623
619,734
2,110,563
33,149,637
228,226,678
1,651
264,126,235
The number of shareholders holding less than a marketable parcel was 682 and they hold a total of 4,614,074 shares.
(b) Unquoted equity securities
Class
Unlisted Options – exercisable at 20 cents each on or before 31 December 2019
Performance Rights – expires 20 August 2020
Number
11,000,000
2,000,000
Holders
Note 1
Note 2
Holders of more than 20% of the unquoted equity securities:
1) Corey Nolan
2) Corey Nolan
4,000,000 options
2,000,000 performance rights
Shareholder Information
PLATINA RESOURCES LIMITED Annual Report 2019 | 59
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>
11,117,790
4.21%
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 MR MICHAEL WONG
8 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
9 NOVASC PTY LTD *
Number of
shares
% of total
shares
39,926,054
15.12%
31,621,216
11.97%
14,520,707
5.50%
7,900,000
2.99%
7,000,000
2.65%
4,016,030
1.52%
3,723,749
1.41%
3,458,712
1.31%
10 MR VU QUANG MINH DANG & MRS THI KIM DAU NGUYEN
2,587,913
0.98%
11 CITICORP NOMINEES PTY LTD
12 GPI MANAGEMENT SERVICES PTY LTD
13 BOND STREET CUSTODIANS LIMITED
2,226,972
0.84%
1,910,000
0.72%
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 MRS MELISSA ANN JOSEPHSON
1,550,200
0.59%
1,475,000
0.56%
1,350,000
0.51%
18 MR JOHN JACOB GUNTHER & MRS MARJORIE GUNTHER & MR KEVIN CHARLES RAE
1,244,749
0.47%
19 MRS LILIANA TEOFILOVA
20 MRS SUSANNE ELIZABETH MORROW
Top 20
Total
* Merged holding
Substantial Shareholders
1,229,000
0.47%
1,203,333
0.46%
141,444,239
53.56%
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
60 | PLATINA RESOURCES LIMITED Annual Report 2019
Shareholder Information
(c) Voting rights
All ordinary shares carry one vote per share without restriction.
Options and performance rights do not carry voting rights.
(d) Restricted securities
The Group currently has no restricted securities on issue.
(e) On-market buy back
There is not a current on-market buy-back in place.
Interest in Tenements
PLATINA RESOURCES LIMITED Annual Report 2019 | 61
Interests in Tenements
Platina Resource Limited held the following interests in tenements as at 24 September 2019:
Area
Location
Ownership
% Ownership
Tenement
M47/123
M47/124
M47/125
M47/126
E47/3322
EL7644
EL8672
EL2007/01
EL2012/25
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
American Eagle
Central California
Blue Bell & Bonanza
Central California
Red Cloud 1
Red Cloud 2
Red Cloud 3
Red Cloud 4
Red Cloud 5
Red Cloud 6
Red Cloud 7
Red Cloud 8
James Gann Jr. trust
of 1991
James Gann Jr. trust
of 1991
Central California
Central California
Central California
Central California
Central California
Central California
Central California
Central California
Central California
Central California
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
PGM
PGM
PGM
PGM
PGM
PGM
PGM
PGM
PGM
BMZ
BMZ
BMZ
BMZ
BMZ
BMZ
BMZ
BMZ
BMZ
BMZ
BMZ
30%
30%
30%
30%
30%
100%
100%
100%
100%
Earning up to 70%
Earning up to 70%
Earning up to 70%
Earning up to 70%
Earning up to 70%
Earning up to 70%
Earning up to 70%
Earning up to 70%
Earning up to 70%
Earning up to 70%
Earning up to 70%
BMZ
Earning up to 70%
•
•
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.
On 29 August 2019, the Company entered into a joint venture agreement to earn up to a 70% interest in
and become operator of the Blue Moon Zinc Project (Project) in the United States. Platina will acquire up to
a 70% interest in the Project by spending CAD3.25 million over 18 months to earn 50% and CAD3.75 million
over another 18 months to earn an additional 20%. The Company can withdraw at anytime without
incurring any cost.
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
62 | PLATINA RESOURCES LIMITED Annual Report 2019
Corporate Governance Statement
Corporate Governance Statement
The board of directors of Platina Resources Limited is responsible for the corporate governance of the Group. The
Board guides and monitors the business and affairs of Platina Resources Limited on behalf of the shareholders by
whom they are elected and to whom they are accountable. 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 2019 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. 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.
Corporate Governance Statement
PLATINA RESOURCES LIMITED Annual Report 2019 | 63
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 2019, 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.
64 | PLATINA RESOURCES LIMITED Annual Report 2019
Corporate Governance Statement
Board Composition
ASX CGC Principle 2
Structure of the Board to add value
Nomination Committee
Recommendation 2.1 requires the Board to establish a nomination committee.
Although the Board has adopted a Nominations Committee Charter, the Board has not formally established a
Nominations Committee as the Directors consider that the Company is currently not of a size nor are its affairs of such
complexity as to justify the formation of this Committee. The Board as a whole is able to address these issues and is
guided by the Nominations Committee Charter. The Company will review this position annually and determine
whether a Nominations Committee needs to be established.
The Nomination Committee Charter is set out in the Company’s Corporate Governance Charter which is available from
the corporate governance section of the Group’s website.
The Company is developing an appropriate board skills matrix. The skills, experience and expertise relevant to the
position of each director who is in office at the date of the Annual Report is detailed in the director’s report.
Corporate Governance Council Recommendation 2.4 requires a majority of the Board to be independent Directors.
The Corporate Governance Council defines independence as being free from any interest, position, association or
relationship that might influence, or reasonably be perceived to influence, in a material capacity to bring independent
judgement to bear on issues before the board and to act in the best interests of the entity and its security holders
generally.
In the context of Director independence, “materiality” is considered from both the Group and the individual Director
perspective. The determination of materiality requires consideration of both quantitative and qualitative elements.
An item is presumed to be material (unless there is qualitative evidence to the contrary) if it is equal to or greater than
10% of the appropriate base amount.
Qualitative factors considered included whether a relationship is strategically important, the competitive landscape,
the nature of the relationship and the contractual or other arrangements governing it and other factors which point to
the actual ability of the Director in question to shape the direction of the Group.
In accordance with the Council’s definition of independence above and the materiality thresholds set, the Directors
listed below are not considered to be independent and therefore the Group does not currently comply with
Recommendation 2.4:
Name
Corey Nolan
Brian Moller
Chris Hartley
Paul Jurman
Position
Reason for non-compliance
Managing Director Mr Nolan was employed by the
Group in an executive capacity
from his appointment date of 1
August 2018.
Non-Executive
Director
Non-Executive
Director
Non-Executive
Director – resigned
16 August 2018
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.
The Group’s Non-Executive Director, John Anderson, appointed on 9 April 2018 is considered independent.
Corporate Governance Statement
PLATINA RESOURCES LIMITED Annual Report 2019 | 65
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
13 years 7 months
1 year 2 months
Christopher Hartley
2 years 9 months
John Anderson
1 year 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.
66 | PLATINA RESOURCES LIMITED Annual Report 2019
Corporate Governance Statement
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.
Corporate Governance Statement
PLATINA RESOURCES LIMITED Annual Report 2019 | 67
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.
68 | PLATINA RESOURCES LIMITED Annual Report 2019
Corporate Governance Statement
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 into 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.