RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
ANNUAL REPORT FOR THE YEAR ENDED
30 JUNE 2019
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
CONTENTS
CORPORATE DIRECTORY............................................................................................................................... 1
DIRECTORS’ REPORT ...................................................................................................................................... 2
AUDITOR’S INDEPENDENCE DECLARATION ..............................................................................................14
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ..........15
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ..........................................................................16
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ..........................................................................17
CONSOLIDATED STATEMENT OF CASH FLOWS .......................................................................................18
NOTES TO AND FORMING PART OF THE ACCOUNTS ..............................................................................19
DIRECTORS’ DECLARATION .........................................................................................................................46
INDEPENDENT AUDITOR’S REPORT ...........................................................................................................47
SHAREHOLDER INFORMATION…………………………………………………………………………………....52
SCHEDULE OF MINING TENEMENTS……………………………………………………………………………..53
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
CORPORATE DIRECTORY
DIRECTORS
Grant Mooney
Alexander Sutherland
Scott Cuomo
COMPANY SECRETARIES
Henko Vos
Abby Siew
REGISTERED OFFICE &
PRINCIPAL PLACE OF BUSINESS
Suite 4
6 Richardson Street
WEST PERTH WA 6005
Telephone: (08) 9226 0866
Facsimile: (08) 9486 7375
AUDITORS
PKF Perth
Level 4, 35 Havelock Street
WEST PERTH WA 6005
SHARE REGISTRY
Computershare Investor Services Pty Limited
Level 11, 172 St Georges Terrace
PERTH WA 6000
SECURITIES EXCHANGE LISTING
Australian Securities Exchange
ASX Code: RIE
1
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2019
Your directors present the following report on Riedel Resources Limited (the Company) and the entities
it controlled during or at the end of the financial year (the Group) for the financial year ended 30 June
2019.
DIRECTORS
The Directors of the Company at any time during or since the end of financial year are:
Grant Mooney
Qualifications
Experience
Non-Executive Chairman (Appointed 31 October 2018)
B.Bus, CA
Mr Mooney is the principal of Perth-based corporate advisory firm Mooney
& Partners, specialising in corporate compliance administration to public
companies. Mr Mooney has gained extensive experience in the areas of
corporate and project management since commencing Mooney & Partners
in 1999. His experience extends to advice on capital raisings, mergers and
acquisitions and corporate governance.
Currently, Mr Mooney serves as a Director to several ASX listed
companies across a variety of industries including technology and
resources. He is a Director of Gibb River Diamonds Limited (Formerly POZ
Minerals Limited), appointed 14 October 2008, Barra Resources Limited,
appointed 29 November 2002, Accelerate Resources Limited, appointed 1
July 2017, Talga Resources Limited, appointed 20 February 2014 and
Carnegie Clean Energy Limited.
Mr Mooney is a member of the Institute of Chartered Accountants in
Australia.
Directorships of other listed
companies
Carnegie Clean Energy Limited
Gibb River Diamonds Limited
Barra Resources Limited
Accelerate Resources Limited
Talga Resources Limited
Interest in Shares
Interest in Options
1,438,427
Nil
Alexander Sutherland
Qualifications
Non-executive Director (Appointed 26 July 2017)
B.Com UWA
Experience
Mr Sutherland has extensive experience in international commercial
operations, including 15 years in Europe, 8 in the Asia Pacific region and
two years in the United States. He is currently based in Switzerland and is
Vice President of Finance (Extrusion Europe) for Sapa AB, a subsidiary of
Norsk Hydro. Prior to this, he held the position of Strategy Director
(Extrusion Europe) for Sapa AB.
Mr Sutherland was previously Global Projects Manager for Alcoa Europe
and has held senior management positions in multinational firms,
including KPMG. Mr Sutherland brings his significant knowledge of
international finance and the resources sector to provide depth to the
Company‘s management team as it pursues exploration and development
opportunities outside of Australia.
2
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2019
DIRECTORS (con’t)
Directorships of other listed
companies
Nil
Interest in Shares
Interest in Options
1,959,596
5,000,000
Scott Cuomo
Non-executive Director (Appointed 26 July 2017)
Experience
Mr Cuomo is an experienced non-executive director and a successful
entrepreneur in the mobile telecommunications sector. His career spans
over 25 years and includes establishing Vodafone’s largest Australian
retail partner. Prior to that he was the National Business Development
Manager of Optus reseller, B Digital Limited, an ASX listed company that
was subject to take-over in 2007.
He offers valuable experience in strategic planning and risk management.
Mr Cuomo is currently an Associate Director with Oracle Capital.
Directorships of other listed
companies
Nil
Interest in Shares
Interest in Options
Nil
5,000,000
Jeffrey Moore
Qualifications
Experience
Former Director (Appointed 30 September 2010; Resigned 15
January 2019)
B.Sc, MAusIMM, MGSA
Mr Moore is a geologist with extensive technical, managerial and project
finance experience in exploration and mining for publicly listed companies.
for
During his career, he has generated and managed projects
commodities including precious metals, base metals, diamonds, nickel
and industrial minerals throughout Australia, Central and South America,
Africa and Asia.
Mr Moore is also a Corporate Member of the Australasian Institute of
Mining and Metallurgy and a Member of the Geological Society of
Australia.
Directorships of other listed
companies
Myanmar Metals Limited
Interest in Shares*
Interest in Options*
14,499,999
5,000,000
* Shares/options held at the time of resignation.
3
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2019
COMPANY SECRETARIES
Henko Vos
Joint Company Secretary (Appointed 28 December 2016)
the Governance
Institute of Australia (GIA),
Mr Vos is a member of the Australian Institute of Company Directors
the Chartered
(AICD),
Accountants
in Australia and New Zealand (CAANZ) and Certified
Practising Accountants of Australia (CPA) with more than 15 years’
experience working within public practice, specifically within the area of
corporate services and audit and assurance both in Australia and South
Africa. He holds similar secretarial roles in various other listed public
companies in both industrial and resource sectors. He is a Director at
Nexia Perth, a mid-tier corporate advisory and accounting practice.
Abby Siew
Joint Company Secretary (Appointed 28 December 2016)
Ms Siew graduated from Curtin University with a Bachelor of Commerce
majoring in Accounting and Finance. She is a member of Certified
Practicing Accountants Australia. She is currently employed by Nexia Perth,
a mid-tier corporate advisory and accounting practice.
The Directors and Company Secretaries have been in office to the date of this report unless otherwise
stated.
PRINCIPAL ACTIVITIES
The principal activity of the Group during the year was mineral exploration.
OPERATING RESULTS
The net loss of the Group for the financial period after provision for income tax was $1,733,262 (2018:
net loss $636,758).
REVIEW OF OPERATIONS
Marymia, Western Australia
The Marymia Project is located approximately 900 kilometres north of Perth, Western Australia, within
the Archean Marymia Inlier. The project is situated 40 kilometres east of the Plutonic Gold Mine, 20
kilometres southeast of the Marymia gold camp, and 55 kilometres northeast of Sandfire Resources
NL’s DeGrussa copper mine.
The Company reported on 21 May 2018 that Australian Mines Limited (ASX: AUZ, USA OTCQB:
AMSLF) increased its interest in the Marymia Gold and Copper Project in Western Australia to 80%
having spend $3 million under the April 2014 dated Heads of Agreement. Australian Mines Limited
subsequently transferred its rights to Norwest Minerals Limited (ASX: NWM) following a spin-off of
that company in November 2018.
During the March 2019 quarter, Norwest Minerals increased its interest to 81.07% following additional
exploration work undertaken on the project and the Company electing not to contribute towards these
and associated costs.
As at 30 June 2019 the Company maintained its 18.93% interest in the Marymia Gold and Copper
Project.
For details of exploration work undertaken during the financial year, refer to Norwest Minerals
Limited’s (ASX: NWM) Quarterly Activities Reports lodged with the ASX.
4
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2019
REVIEW OF OPERATIONS (con’t)
Cármenes Project, Northern Spain
On 21 July 2017, Riedel signed a Joint Venture Agreement with SIEMCALSA (Sociedad De
Investigación Y Exploración Minera De Castilla Y León S.A.) whereby Riedel can earn interests of up
to 90% in the Cármenes Project, with provision for Riedel to acquire the remaining 10% interest from
SIEMCALSA.
The Cármenes cobalt-copper-nickel project in Spain is host to historical high grade cobalt-copper
production with recorded concentrate grades of 14% cobalt and 33% copper. Significant historic
cobalt, copper, nickel and gold mines exist within the Project area at La Profunda and Divina
Providencia1, with additional mines at Fontun and Valverdin.
During the year to June 2019, Riedel’s primary focus during the first 6 months was the receipt and
analysis of relevant assay results from its maiden four-hole programme at its Profunda Mine Prospect
in Northern Spain. For the next 6 months, the Company continued the process of evaluating data and
the determining direction of the exploration programs.
On 22 July 2019, the Company advised that, following an extensive review and assessment of the
project, it has decided not to proceed with further exploration activities at the Cármenes Project and
that it has given formal notice to SIEMCALSA of the Company’s termination of the Joint Venture
Agreement.
For further details on the Company’s activities, refer to the Quarterly Reports and the ASX
announcements made during the year ended 30 June 2019.
TENEMENT SCHEDULE
Following is the schedule of Riedel Resources minerals tenements as at 30 June 2019.
Area of Interest
Tenement reference
Nature of interest
Interest
Spain
Carmenes *
Valverdin *
Australia
Marymia
Marymia
West Yandal
Porphyry
n°15,107
n°15,106
E52/2394
E52/2395
M36/615
M31/157
Joint Venture
Joint Venture
Earning 90%
Earning 90%
Direct
Direct
Royalty
Royalty
18.93%
18.93%
0%
0%
* As noted the Company terminated the Joint Venture agreement for the Carmenes Project on 22
July 2019, resulting in the interest being terminated at and from that date.
1 Excised from Cármenes Project joint venture tenement area.
5
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2019
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There have been no significant changes in the state of affairs of the Group during the year.
DIVIDENDS PAID OR RECOMMENDED
No dividend has been paid or declared since the start of the financial year.
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
On 22 July 2019 the Company announced that following an extensive review and assessment of the
project, it has decided not to proceed with further exploration activities at the Cármenes Project and that
it has given formal notice to SIEMCALSA of the Company’s termination of the Joint Venture Agreement.
Other than noted above, there has been no additional matter or circumstance that has arisen after
reporting date 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 periods.
LIKELY DEVELOPMENT AND RESULTS
Likely developments in the operations of the Group and the expected results of those operations in
future financial years have not been included in this report, as inclusion of such information is likely to
result in unreasonable prejudice to the Group.
MEETINGS OF DIRECTORS
During the financial year, 6 meetings of directors were held. The number of meetings attended by each
director during the year is stated below:
Grant Mooney¹
Alexander Sutherland
Scott Cuomo
Jeffrey Moore2
¹ Appointed 31 October 2018.
2 Resigned 15 January 2019.
Number of eligible to
attend
3
6
6
4
Number attended
3
6
6
4
In addition to the above, the directors met by circular resolution on 5 occasions during the financial
year.
UNISSUED SHARES UNDER OPTIONS
At the date of this report, the unissued ordinary shares of Riedel Resources Limited under option are as
follows:
Expiry date
23/11/2021
Exercise price
(cents)
11
Quantity
10,000,000
Each option entitles the holder to one fully paid ordinary share in the Company at any time up to expiry
date. To the date of this report no shares had been issued as a result of the exercise of options.
REMUNERATION REPORT
The Remuneration Report, which forms part of the Directors’ report, outlines the remuneration
arrangements in place for the Key Management Personnel of Riedel Resources Limited for the financial
year ended 30 June 2019 and is included on page 8.
6
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2019
ENVIRONMENTAL REGULATION
The Group’s operations are not regulated by any significant environmental regulation under a law of the
Commonwealth or of a State or Territory.
INDEMNIFICATION AND INSURANCE OF DIRECTORS, OFFICERS AND AUDITORS
The Group has not, during or since the financial year, in respect of any person who is or has been an
officer of the Company:
Indemnified or made any relevant agreement for the indemnifying against a liability, including
costs and expenses in successfully defending legal proceedings; or
Paid or agreed to pay a premium in respect of a contract insuring against a liability for the costs
or expenses to defend legal proceedings.
During the financial year the Company paid a premium of $8,000 (excluding GST) in respect of a
contract insuring against a liability for the costs or expenses to defend legal proceedings that may be
brought against the directors and secretaries of the Company.
Indemnity and insurance of auditors
The Company has not, during or since the end of financial year, indemnified or agreed to indemnify the
auditor of the Company or any related entity against a liability incurred by the auditor.
During the financial year, the Company has not paid a premium in respect of the contract to insure the
auditor of the Company or any related entity.
AUDITOR’S INDEPENDENCE DECLARATION
The auditor’s independence declaration for the year ended 30 June 2019 has been received and is
included in the financial report on page 14.
PROCEEDINGS ON BEHALF OF COMPANY
No person has applied for leave of Court to bring proceedings on behalf of the Company or to intervene
in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of
the Company for all or any part of those proceedings.
The Company was not a party to any such proceedings during the period.
CORPORATE GOVERNANCE STATEMENT
The Board is committed to achieving and demonstrating the highest standards of corporate
governance. As such, the Group have adopted the third edition of the Corporate Governance Principles
and Recommendations which was released by the ASX Corporate Governance Council on 27 March
2015 and became effective for financial years beginning on or after 1 July 2015.
The Group’s Corporate Governance Statement for the financial year ending 30 June 2019 is dated as
at 27 September 2019 and was approved by the Board on 27 September 2019.
The Corporate Governance Statement is available on Riedel Resources Limited’s website at
http://www.riedelresources.com.au.
7
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2019
REMUNERATION REPORT - AUDITED
This report outlines the remuneration arrangements in place for the key management personnel of
Riedel Resources Limited (the “Company”) for the financial year ended 30 June 2019. The information
provided in this remuneration report has been audited as required by Section 308(3C) of the
Corporations Act 2001.
The remuneration report details the remuneration arrangements for key management personnel
(“KMP”) who are defined as those persons having authority and responsibility for planning, directing
and controlling the major activities of the Company and the Group, directly or indirectly, including any
director (whether executive or otherwise) of the parent Company.
Key Management Personnel
Directors
Grant Mooney (Non-executive Chairman) (Appointed 31 October 2018)
Alexander Sutherland (Non-executive Director) (Appointed 26 July 2017)
Scott Cuomo (Non-executive Director) (Appointed 26 July 2017)
Jeffrey Moore (Executive Director) (Appointed 30 September 2010; Resigned 15 January 2019)
Remuneration Philosophy
The performance of the Company depends upon the quality of the directors and executives. The
philosophy of the Company in determining remuneration levels is to:
- set competitive remuneration packages to attract and retain high calibre employees;
-
link executive rewards to shareholder value creation; and
- establish appropriate, demanding performance hurdles for variable executive remuneration.
Remuneration Committee
The Remuneration Committee, the role and duties of which are undertaken by the Board, establishes
human resources and compensation policies and practices for the Directors (executive and non-
executive) and senior executives, including retirement termination policies and practices, Company
share schemes and other
incentive schemes, Company superannuation arrangements and
remuneration arrangements.
Remuneration Policy
The remuneration policy of the Company has been designed to align director and executive objectives
with shareholder and business objectives by providing a fixed remuneration component which is
assessed on an annual basis in line with market rates and offering specific long-term incentives based
on key performance areas affecting the Group’s financial results. The Board of the Company believes
the remuneration policy to be appropriate and effective in its ability to attract and retain the best
directors and executives to run and manage the Group.
The Board’s policy for determining the nature and amount of remuneration for Board members and
senior executives of the Group is as follows:
The remuneration policy, setting the terms and conditions for the executive directors and other senior
executives (if any), was developed by the Board. All executives are to receive a base salary (which is
based on factors such as length of service and experience) and superannuation. The Board reviews
8
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2019
REMUNERATION REPORT – AUDITED (con’t)
executive packages annually by reference to the Group’s performance, executive performance and
comparable information from industry sectors and other listed companies in similar industries.
The Board may exercise discretion in relation to approving incentives, bonuses and options. The
policy is to attract the highest calibre of executives and reward them for performance that results in
long-term growth in shareholder wealth.
Directors and executives are also entitled to participate in the Employee Incentive Option Scheme
and Performance Rights Plan. The executive directors and executives receive a superannuation
guarantee contribution required by the government, which was 9.5% for the year ended 30 June
2019, and do not receive any other retirement benefits. All remuneration paid to directors and
executives is valued at the cost to the Company and expensed. Options are valued using the Black-
Scholes or Binomial Option Pricing models.
The Board policy is to remunerate non-executive directors at market rates for comparable companies
for time, commitment and responsibilities. The Board determines payments to the non-executive
directors and reviews
their remuneration annually, based on market practice, duties and
accountability. Independent external advice is sought when required. The maximum aggregate fees
that can be paid to non-executive directors is $250,000 per annum. Amendments to this amount are
subject to approval by shareholders at the Annual General Meeting. Fees for non-executive directors
will not be linked to the performance of the Group. However, to align directors’ interests with
shareholder interests, the directors are encouraged to hold shares in the Company and are able to
participate in the Employee Incentive Option Scheme.
The objective of the Company’s executive reward framework is set to attract and retain the most
qualified and experienced directors and senior executives.
The Board ensures that executive reward satisfies the following key criteria for good reward
governance practices:
Competitiveness
Acceptability to shareholders
Performance linkage
Capital management
Directors’ fees
A director may be paid fees or other amounts as the directors determine where a director performs
special duties or otherwise performs services outside the scope of the ordinary duties of a director. A
director may also be reimbursed for out of pocket expenses incurred as a result of their directorship or
any special duties.
Bonuses
No bonuses were given to key management personnel during the 2018 and 2019 years.
Performance based remuneration
The Company currently offers eligible Directors and Key Executives participation in the Company
Performance Rights Plan and/or Incentive Option Scheme. This is in addition to cash remuneration.
9
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2019
REMUNERATION REPORT – AUDITED (con’t)
Company performance, shareholder wealth and director’s and executive’s remuneration
The remuneration policy has been tailored to increase goal congruence between shareholders and
directors and executives. Currently, this is facilitated through the issue of options or Performance
Rights to eligible directors and executives to encourage the alignment of personal and shareholder
interests. The Company believes the policy will be effective in increasing shareholder wealth. For
details of directors and executives interests in options and performance rights at year end, refer below
for details.
All directors are entitled to participate in the Performance Rights Plan and/or Incentive Option
Scheme.
2018 Annual General Meeting
The Company received no specific feedback on its Remuneration Report at the Annual General
Meeting.
Performance on shareholder wealth
In considering the Group’s performance and benefits for shareholder wealth, the Board have regarded
the following indices in respect of the current and previous four financial years:
EPS (cents)
Dividends (cents per share)
Net profit / (loss) ($)
Share price ($)
2019
(0.41)
-
(1,733,262)
0.009
2018
(0.17)
-
(636,758)
0.063
2017
0.06
-
142,568
0.011
2016
0.34
-
704,101
0.016
2015
(0.54)
-
(794,639)
0.007
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in service
agreements. Details of these agreements are as follows:
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Grant Mooney (Appointed 31 October 2018)
Non-executive Chairman
20 November 2018
3 years (Subject to re-election every 3 years from 31 October 2018)
Director’s fees of $30,000 per annum plus superannuation.
Alexander Sutherland (Appointed 26 July 2017)
Non-executive Director
26 July 2017
3 years (Subject to re-election every 3 years from 26 July 2017)
Director’s fees of $30,000 per annum exclusive of superannuation (if
applicable).
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Scott Cuomo (Appointed 26 July 2017)
Non-executive Director
26 July 2017
3 years (Subject to re-election every 3 years from 26 July 2017)
Director’s fees of $30,000 per annum plus superannuation.
10
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2019
REMUNERATION REPORT – AUDITED (con’t)
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Jeffrey Moore (Appointed 30 September 2010; Resigned 15 January
2019)
Executive Director
18 January 2016
3 years (Subject to re-election every 3 years from 18 January 2016)
Director’s fees of $100,000 per annum plus superannuation (effective 1
September 2017
to $150,000 per annum plus
superannuation). The Executive was entitled to Performance Rights.
increased
Remuneration of Key Management Personnel
For the year ended 30 June 2019
Short-Term
Benefits
Salaries
& Fees
$
Consulting
Fees
$
Post-
Employment
Benefits
Equity-
Settled
Share-Based
Payments2
Value of equity
as proportion
of
remuneration
Superannuation
$
$
Total
$
%
20,000
Directors
Grant Mooney¹
Alexander
30,000
Sutherland
Scott Cuomo
30,000
Jeffrey Moore3 106,250
Total
186,250
-
-
-
-
-
1,900
-
2,850
7,719
-
21,900
0.0%
17,400
17,400
47,400
50,250
- 113,969
36.7%
34.6%
0.0%
12,469
34,800
233,519
¹ Appointed 31 October 2018.
2 The Company issued 5,000,000 unlisted options each to Mr Sutherland and Mr Cuomo following shareholder approval at the
AGM held on 23 November 2018. The options are exercisable at $0.11 per option, expires 23 November 2021. The value
disclosed is the fair value at grant date of the options. See note 11 for further details.
3 Resigned 15 January 2019. Director’s fees includes unused annual leave entitlement of $25,000.
For the year ended 30 June 2018
Post-
Employment
Benefits
Equity-
Settled
Share-
Based
Payments
Value of
equity as
proportion of
remuneration
Superannuation
$
$
Total
$
%
Short-Term
Benefits
Salaries
& Fees
$
Consulting
Fees
$
Directors
Jeffrey Moore
Alexander
Sutherland1
Scott Cuomo 2
Luke Matthews3
Mark Skiffington3
141,667
27,984
27,984
-
-
-
-
-
-
-
13,458
-
155,125
0.0%
-
2,658
-
-
-
-
324,000
324,000
27,984
30,642
324,000
324,000
0.0%
0.0%
100.0%
100.0%
Total
197,635
-
16,116
648,000
861,751
¹ Appointed 26 July 2017. $27,984 represents directors fees accrued during the year but not yet paid as at 30 June 2018.
² Appointed 26 July 2017.
3 Resigned 26 July 2017. 4,000,000 shares each were issued to Mr Matthews and Mr Skiffington in December 2017 in lieu of
forgone remuneration. The value disclosed is the fair value at grant date of the shares.
11
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2019
REMUNERATION REPORT – AUDITED (con’t)
The overall level of key management personnel remuneration takes into account the performance of the
Company since the Company’s incorporation on 9 April 2010.
Options granted during the year
The following options were issued during the financial year to KMP and remained on issue as at
balance date and the date of this report:
Alexander Sutherland
Scott Cuomo
Granted
Number
5,000,000
5,000,000
Grant date
23 November 2018
23 November 2018
Value of options
at grant date
$
$17,400
$17,400
Expiry date
23 November 2021
23 November 2021
Options exercised
No options granted as compensation in the current or prior year were exercised.
Options lapsed during the year
Number lapsed
during the year
Financial year
granted
Jeffrey Moore1
5,000,000
2016
¹ Resigned 15 January 2019.
Other information
Ordinary shares held by Key Management Personnel
The number of shares in the Company held during the financial year by each director and other
members of key management personnel of the Group, including their personally related parties, is set
out below:
Ordinary shares held in Riedel Resources Limited (number)
2019
Grant Mooney¹
Alexander
Sutherland
Scott Cuomo
Jeffrey Moore²
Total
Balance at
beginning
of period
Granted as
remuneration
-
-
1,959,596
-
14,499,999
16,459,595
-
-
-
-
Exercise of
options/
performance
rights
Net change*
-
-
-
-
-
Balance at
end of
period
1,438,427
Other
1,438,427
-
-
(14,499,999)
(13,061,572)
1,959,596
-
-
3,398,023
-
-
-
-
-
¹ Appointed 31 October 2018. ‘Other’ represents opening balance at appointment date.
² Resigned 15 January 2019. ‘Other’ adjusted to reflect no further holdings as a KMP.
* Net change represent shares that were purchased or sold during the year
12
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2019
REMUNERATION REPORT – AUDITED (con’t)
Options held by Key Management Personnel
The number of options over ordinary shares in the Company held during the financial year by each
director and other members of key management personnel of the Group, including their personally
related parties, is set out below:
Options held in Riedel Resources Limited (number)
2019
Grant Mooney
Alexander
Sutherland
Scott Cuomo
Jeffrey Moore²
Total
Balance at
beginning
of period
-
Granted as
remuneration
-
Exercised Net change*
-
-
Other
Balance at
end of period
-
-
-
-
5,000,000
5,000,000
-
-
-
-
-
-
-
-
-
-
-
-
5,000,000¹
5,000,000¹
(5,000,000)
(5,000,000)
5,000,000
5,000,000
-
10,000,000
¹ The Company issued 5,000,000 unlisted options each to Mr Sutherland and Mr Cuomo following shareholder
approval at the AGM held on 23 November 2018. The options are exercisable at $0.11 per option, expires 23
November 2021. See note 11 for further details.
² Resigned 15 January 2019. ‘Other’ adjusted to reflect no further holdings as a KMP.
All equity transactions with key management personnel other than those arising from the exercise of
remuneration options have been entered into under terms and conditions no more favourable than
those the Group would have adopted if dealing at arm's length.
The fair value of the equity-settled share options granted is estimated as at the date of grant using a
Black Scholes or Binomial Option Pricing Models taking into account the terms and conditions upon
which the options were granted.
Other transactions with Key Management Personnel
During the year, the Company paid $20,000 to Mr Grant Mooney and $1,500 to Mooney & Partners, a
company associated with Mr Mooney, for the rental of office space. The rental lease is settled on a
monthly basis. As at 30 June 2019, $500 remained outstanding.
From July 2018 till January 2019, the Company subleased its office at Suite 1, 6 Richardson Street,
West Perth, WA 6005 to Virtual Curtain Limited, a company associated with Mr Moore. Virtual Curtain
Limited paid $6,088, which was 25% of Riedel’s monthly rental and outgoings till January 2019.
Pursuant to Resolutions 3 and 4 approved by the shareholders at the 2018 AGM, 5,000,000 unlisted
options each were issued during the year to Mr Alexander Sutherland and Mr Scott Cuomo, as an
incentive to provide dedicated and ongoing commitment to the Company. The options were valued at a
total of $34,800.
This concludes the remuneration report, which has been audited.
Signed in accordance with a resolution of the Board of Directors.
Grant Mooney
Non-Executive Chairman
Date: 27 September 2019
13
PKF Perth
AUDITOR’S INDEPENDENCE DECLARATION
TO THE DIRECTORS OF RIEDEL RESOURCES LIMITED
In relation to our audit of the financial report of Riedel Resources Limited for the year ended 30 June 2019, to
the best of my knowledge and belief, there have been no contraventions of the auditor independence
requirements of the Corporations Act 2001 or any applicable code of professional conduct.
PKF PERTH
SHANE CROSS
PARTNER
27 SEPTEMBER 2019
WEST PERTH,
WESTERN AUSTRALIA
Level 4, 35 Havelock Street, West Perth, WA 6005
PO Box 609, West Perth, WA 6872
T: +61 8 9426 8999 F: +61 8 9426 8900 www.pkfperth.com.au
PKF Perth is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions
or inactions of any individual member or correspondent firm or firms.
Liability limited by a scheme approved under Professional Standards Legislation.
14
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2019
NOTES
2019
$
2018
$
Interest income
Other revenue
Reversal of impairment of exploration and
evaluation due to sale of tenement
Total revenue
Administration expenses
Depreciation
Employee benefits expense
Impairment of exploration expenditure
Exploration and evaluation expenditure incurred
Finance costs
Profit/(Loss) before income tax expense
Income tax expense
2(a)
2(b)
3
6,053
16,088
-
22,141
(230,466)
(1,052)
(196,670)
(1,288,621)
(38,594)
-
15,533
219,467
210,305
445,305
(253,916)
(807)
(766,610)
(2,208)
(58,515)
(7)
(1,733,262)
(636,758)
-
-
Profit/(Loss) for the year
(1,733,262)
(636,758)
Other comprehensive loss
Items that may be reclassified subsequently to
profit or loss
Exchange difference on translation of foreign
operation
(899)
(1,116)
Total comprehensive profit/(loss) for the year
(1,734,161)
(637,874)
Basic and diluted earnings per share (cents)
15
(0.41)
(0.17)
The accompanying notes form part of these financial statements.
15
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2019
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
TOTAL CURRENT ASSETS
NON CURRENT ASSETS
Plant and equipment
Exploration and evaluation expenditure
TOTAL NON CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Share based payment reserve
Foreign currency translation reserve
Accumulated losses
NOTES
2019
$
2018
$
5
6
7
8
9
1,152,720
229,752
2,339,803
136,974
1,382,472
2,476,777
1,290
1,669,485
2,342
2,408,180
1,670,775
2,410,522
3,053,247
4,887,299
23,948
23,948
23,948
158,639
158,639
158,639
3,029,299
4,728,660
10
11
12
13
19,237,097
34,800
(2,015)
(16,240,583)
19,237,097
214,200
(1,116)
(14,721,521)
TOTAL EQUITY
3,029,299
4,728,660
The accompanying notes form part of these financial statements.
16
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2019
Issued
Capital
$
Foreign
Currency
Translation
Reserve
$
Share
Based
Payments
Reserve
$
Accumulated
Losses
Total
$
$
Balance at 1 July 2018
19,237,097
(1,116)
214,200
(14,721,521)
4,728,660
Profit/(Loss) for the period
Other comprehensive loss
Total comprehensive loss for the
period
Transactions with owners, recorded
directly in equity
Issue of options
Expiry of options
-
-
-
-
-
-
-
(899)
(899)
-
-
-
(1,733,262)
-
(1,733,262)
(899)
(1,733,262)
(1,734,161)
-
-
-
34,800
(214,200)
(179,400)
-
214,200
214,200
34,800
-
34,800
Balance at 30 June 2019
19,237,097
(2,015)
34,800
(16,240,583)
3,029,299
Balance at 1 July 2017
Profit/(Loss) for the period
Other comprehensive loss
Total comprehensive loss for the
period
Transactions with owners, recorded
directly in equity
Issue of share capital
Expiry of options
Less: Cost of capital raising
Conversion of options
16,091,432
-
-
-
-
(1,116)
597,158
-
-
(14,149,763) 2,538,827
(636,758)
(1,116)
(636,758)
-
-
(1,116)
-
(636,758)
(637,874)
3,027,927
-
(200,220)
317,958
3,145,665
-
-
-
-
-
-
(65,000)
-
(317,958)
(382,958)
-
65,000
-
-
65,000
3,027,927
-
(200,220)
-
2,827,707
Balance at 30 June 2018
19,237,097
(1,116)
214,200
(14,721,521)
4,728,660
The accompanying notes form part of their financial statements.
17
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2019
Cash Flows from Operating Activities
Interest received
Finance costs
Other revenue
Payments to suppliers and employees
Release of bank guarantee
NOTES
2019
$
6,053
-
6,088
(551,719)
20,000
2018
$
15,533
(7)
18,442
(437,833)
-
Net cash used in operating activities
14
(519,578)
(403,865)
Cash Flows from Investing Activities
Payment for plant and equipment
Payment for exploration and evaluation
Proceeds from sale of tenements
-
(676,063)
9,456
(1,557)
(802,975)
500,000
Net cash used in investing activities
(666,607)
(304,532)
Cash Flows from Financing Activities
Payments for share issue costs
Proceeds from issued capital
Net cash provided in financing activities
Net increase/(decrease) in cash and cash
equivalents held
-
-
-
(63,525)
2,213,807
2,150,282
(1,186,185)
1,441,885
Cash and cash equivalents at 1 July
Effects of foreign exchange
2,339,803
(898)
899,219
(1,301)
Cash and cash equivalents at 30 June
5
1,152,720
2,339,803
The accompanying notes form part of these financial statements
18
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
NOTES TO AND FORMING PART OF THE ACCOUNTS
Riedel Resources Limited (the "Company") is a listed public company limited by shares, incorporated and
domiciled in Australia.
The consolidated financial statements of the Company as at and for the year ended 30 June 2019 comprise
the Company and its subsidiaries (together referred to as the "Group" and individually as "Group entities").
The Group primarily is involved in mining and exploration activity.
New, revised or amending Accounting Standards and Interpretations adopted
From 1 July 2018 the following standards and amendments are effective in the Group’s financial statements:
AASB 9 Financial Instruments; and
AASB 15 Revenue from Contracts with Customers.
The impact of adoption of these standards and the key changes to the accounting policies are disclosed
below. Other amendments to AIFRS that became effective for the period beginning on 1 July 2018 did not
have any impact on the Group’s accounting policies.
AASB 9: Financial Instruments
Classification of financial assets
AASB 9 requires the use of two criteria to determine the classification of financial assets: the entity’s
business model for the financial assets and the contractual cash flow characteristics of the financial assets.
The Standard goes on to identify three categories of financial assets - amortised cost; fair value through
profit or loss (FVTPL); and fair value through other comprehensive income (FVOCI).
There have been no changes to the categorisation of financial assets following the adoption of AASB 9 and
all of the Group’s financial assets remain classified at amortised cost.
Impairment AASB 9 mandates the use of an expected credit loss model to calculate impairment losses
rather than an incurred loss model, and therefore it is not necessary for a credit event to have occurred
before credit losses are recognised. The new impairment model applies to the Group’s financial assets. No
changes to the impairment provisions were made on transition to AASB 9. Trade and other receivables are
generally settled on a short time frame and the Group’s other financial assets are due from counterparties
without material credit risk concerns at the time of transition.
The Group adopted AASB 9 and related amending Standards from 1 July 2018. The adoption of AASB 9 and
related amending Standards did not give rise to any material transitional adjustments. In accordance with the
transitional provisions in AASB 9 (paragraphs 7.2.15 and 7.2.26), comparative figures have not been
restated.
AASB 15: Revenue from Contracts with Customers
AASB 15 replaced AASB 118 Revenue which covered revenue arising from the sale of goods and the
rendering of services and AASB 111 Construction Contracts which covered construction contracts. AASB 15
is based on the principle that revenue is recognised when control of a good or service transfers to a
customer. The standard permits either a full retrospective or a modified retrospective approach for the
adoption.
The Group adopted AASB 15 from 1 July 2018. The implementation of AASB 15 has not had a material impact
on the Group’s financial statements as it is currently a pre-revenue business.
19
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (con’t)
New and Revised Accounting Standards and Interpretations on Issue but not yet adopted
AASB 16 replaces the current AASB 117 Leases standard. AASB 16 removes the classification of leases as
either operating leases or finance leases – for the lessee – effectively treating all leases as finance leases.
Most leases will be capitalised on the balance sheet by recognising a 'right-of-use' asset and a lease liability
for the present value obligation. This will result in an increase in the recognised assets and liabilities in the
statement of financial position as well as a change in expense recognition, with interest and deprecation
replacing operating lease expense. The only exceptions are short-term and low-value leases.
Lessor accounting remains similar to current practice, i.e. lessors continue to classify leases as finance and
operating leases.
The Group has reviewed all of the Group’s leasing arrangements in light of the new lease accounting rules in
AASB 16. The standard will affect primarily the accounting for the Group’s operating leases.
At reporting date, the Group had no material non-cancellable operating lease commitments. The Group does
not have any activities as a lessor either and hence there will not be any impact on the financial statements
in this regard.
The changes in the Group's accounting policies from the adoption of AASB 16 will be applied from 1 July
2019 onwards.
There are no other standards that are not yet effective and that would be expected to have a material impact
on the Group in the current or future reporting periods and on foreseeable future transactions.
Basis of Preparation
The accounting policies set out below have been consistently applied to all years presented.
Statement of Compliance
These general purpose financial statements have been prepared in accordance with Australian Accounting
Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the
Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply
with International Financial Reporting Standards as issued by the International Accounting Standards Board
('IASB').
The consolidated financial statements were authorised for issue by the Board of Directors on 27 September
2019. The Directors have the power to amend and revise the financial statements.
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where
applicable, the revaluation of financial assets and liabilities at fair value through profit or loss, investment
properties, certain classes of property, plant and equipment and derivative financial instruments.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of applying the Group's accounting policies.
The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates
are significant to the financial statements are disclosed in note 17.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the Group
only. Supplementary information about the parent entity is disclosed in note 25.
20
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (con’t)
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Riedel
Resources Limited ('Company' or 'parent entity') as at 30 June 2019 and the results of all subsidiaries for the
year then ended. Riedel Resources Limited and its subsidiaries together are referred to in these financial
statements as the 'Group'.
Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the
Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability
to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully
consolidated from the date on which control is transferred to the Group. They are de-consolidated from the
date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the Group are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment
of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the Group.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in
ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference
between the consideration transferred and the book value of the share of the non-controlling interest
acquired is recognised directly in equity attributable to the parent.
Where the Group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and
non-controlling interest in the subsidiary together with any cumulative translation differences recognised in
equity. The Group recognises the fair value of the consideration received and the fair value of any
investment retained together with any gain or loss in profit or loss.
Operating segments
Operating segments are presented using the “management approach”, where the information presented is
on the same basis as the internal reports provided to the directors. The directors are responsible for the
allocation of resources to operating segments and assessing their performance.
Foreign currency translation
The financial statements are presented in Australian dollars, which is Riedel Resources Limited's functional
and presentation currency.
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at
the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation at financial year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in profit or loss.
21
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (con’t)
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates
at the reporting date. The revenues and expenses of foreign operations are translated into Australian dollars
using the average exchange rates, which approximate the rate at the date of the transaction, for the period.
All resulting foreign exchange differences are recognised in other comprehensive income through the foreign
currency reserve in equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is
disposed of.
Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts in the financial statements. Management continually evaluates
its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses.
Management bases its judgements, estimates and assumptions on historical experience and on other
various factors, including expectations of future events, management believes to be reasonable under the
circumstances. The resulting accounting judgements and estimates will seldom equal the related actual
results. The judgements, estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next
financial year are discussed below.
Share Based Payment Transactions
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of
the equity instruments at the date at which they are granted. The fair value is determined by an independent
external valuation using Black-Scholes or Binomial Option Pricing models, using the assumptions detailed in
Note 11.
Exploration and Evaluation Costs
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of
interest. These costs are carried forward in respect of an area that has not at reporting date reached a stage
which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves,
and active and significant operations in, or relating to, the area of interest are continuing.
Impairment of Exploration and Evaluation Assets and Investments in and Loans to Subsidiaries
The ultimate recoupment of the value of exploration and evaluation assets, the Company’s investment in
subsidiaries, and loans to subsidiaries is dependent on the successful development and commercial
exploitation, or alternatively, sale, of the exploration and evaluation assets.
Impairment tests are carried out on a regular basis to identify whether the asset carrying values exceed their
recoverable amounts. There is significant estimation and judgement in determining the inputs and
assumptions used in determining the recoverable amounts.
The key areas of judgement and estimation include:
Recent exploration and evaluation results and resource estimates;
Environmental issues that may impact on the underlying tenements;
Fundamental economic factors that have an impact on the operations and carrying values of assets
and liabilities.
Income tax expenses
Judgement is required in assessing whether deferred tax assets and liabilities are recognised on the
statement of financial position. Deferred tax assets, including those arising from temporary differences, are
recognised only when it is considered more likely than not that they will be recovered, which is dependent on
the generation of future assessable income of a nature and of an amount sufficient to enable the benefits to
be utilised.
22
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (con’t)
Income Tax
The charge for current income tax expense is based on the loss for the year adjusted for any non-assessable
or disallowed items. It is calculated using the tax rates that have been enacted or are substantially enacted by
the reporting date.
Deferred tax is accounted for using the liability method in respect of temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the financial statements. 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 is calculated at the tax rates that are expected to apply to the period when the asset is realised or
liability is settled. Deferred tax is credited in the statement of profit or loss and other comprehensive income
except where it relates to items that may be credited directly to equity, in which case the deferred tax is
adjusted directly against equity.
Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be
available against which deductible temporary differences can be utilised.
The amount of benefits brought to account or which may be realised in the future is based on the assumption
that no adverse change will occur in income taxation legislation and the anticipation that the Group will derive
sufficient future assessable income to enable the benefit to be realised and comply with the conditions of
deductibility imposed by the law.
Exploration and Evaluation Expenditure
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of
interest. These costs are carried forward only if they relate to an area of interest for which rights of tenure
are current and in respect of which:
such costs are expected to be recouped through successful development and exploitation or from
sale of the area; or
exploration and evaluation activities in the area have not, at reporting date, reached a stage which
permit a reasonable assessment of the existence or otherwise of economically recoverable reserves,
and active operations in, or relating to, the area are continuing.
Accumulated costs in respect of areas of interest which are abandoned are written off in full against loss in
the year in which the decision to abandon the area is made.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to
carry forward costs in relation to that area of interest.
The recoverability of the carrying amount of the exploration and development assets is dependent on the
successful development and commercial exploitation or alternatively sale of the respective areas of interest.
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as
part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are
subsequently measured at either amortised cost or fair value depending on their classification. Classification
is determined based on both the business model within which such assets are held and the contractual cash
flow characteristics of the financial asset unless, an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been
transferred and the Group has transferred substantially all the risks and rewards of ownership. When there is
no reasonable expectation of recovering part or all of a financial asset, its carrying value is written off.
23
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (con’t)
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are
classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either:
(i) held for trading, where they are acquired for the purpose of selling in the short-term with an intention of
making a profit, or a derivative; or (ii) designated as such upon initial recognition where permitted. Fair value
movements are recognised in profit or loss.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the
Group intends to hold for the foreseeable future and has irrevocably elected to classify them as such upon
initial recognition.
Impairment of financial assets
The Group recognises a loss allowance for expected credit losses on financial assets which are either
measured at amortised cost or fair value through other comprehensive income. The measurement of the loss
allowance depends upon the Group's assessment at the end of each reporting period as to whether the
financial instrument's credit risk has increased significantly since initial recognition, based on reasonable and
supportable information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-
month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected
credit losses that is attributable to a default event that is possible within the next 12 months. Where a
financial asset has become credit impaired or where it is determined that credit risk has increased
significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of
expected credit loss recognised is measured on the basis of the probability weighted present value of
anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate.
Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure
purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date; and assumes that the
transaction will take place either: in the principle market; or in the absence of a principal market, in the most
advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or
liability, assuming they act in their economic best interest. For non-financial assets, the fair value
measurement is based on its highest and best use. Valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to measure fair value, are used, maximising the use
of relevant observable inputs and minimising the use of unobservable inputs.
Assets and liabilities measured at fair value are classified, into three levels, using a fair value hierarchy that
reflects the significance of the inputs used in making the measurements. Classifications are reviewed each
reporting date and transfers between levels are determined based on a reassessment of the lowest level input
that is significant to the fair value measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when internal
expertise is either not available or when the valuation is deemed to be significant. External valuers are
selected based on market knowledge and reputation. Where there is a significant change in fair value of an
asset or liability from one period to another, an analysis is undertaken, which includes a verification of the
major inputs applied in the latest valuation and a comparison, where applicable, with external sources of data.
24
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (con’t)
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current
classification.
An asset is current when: it is expected to be realised or intended to be sold or consumed in normal
operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within twelve
months after the reporting period; or the asset is cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets
are classified as non-current.
A liability is current when: it is expected to be settled in normal operating cycle; it is held primarily for the
purpose of trading; it is due to be settled within twelve months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
All other liabilities are classified as non-current.
Cash and Cash Equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly
liquid investments with original maturities of three months or less, that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value.
Revenue recognition
The Group recognises revenue as follows:
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the Group is expected to be
entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the
Group: identifies the contract with a customer; identifies the performance obligations in the contract;
determines the transaction price which takes into account estimates of variable consideration and the time
value of money; allocates the transaction price to the separate performance obligations on the basis of the
relative stand-alone selling price of each distinct good or service to be delivered; and recognises revenue
when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of
the goods or services promised.
Variable consideration within the transaction price, if any, reflects concessions provided to the customer
such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other
contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount'
method. The measurement of variable consideration is subject to a constraining principle whereby revenue
will only be recognised to the extent that it is highly probable that a significant reversal in the amount of
cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty
associated with the variable consideration is subsequently resolved. Amounts received that are subject to
the constraining principle are recognised as a refund liability.
Rendering of services
Revenue from a contract to provide services is recognised over time as the services are rendered based on
either a fixed price or an hourly rate.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of
calculating the amortised cost of a financial asset and allocating the interest income over the relevant period
using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial asset to the net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
25
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (con’t)
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 flow on a gross basis, except for the GST component of
investing and financing activities, which are disclosed as operating cash flows.
Impairment
(i) Financial Assets
The Group recognises a loss allowance for expected credit losses on financial assets which are either
measured at amortised cost or fair value through other comprehensive income. The measurement of the loss
allowance depends upon the Group's assessment at the end of each reporting period as to whether the
financial instrument's credit risk has increased significantly since initial recognition, based on reasonable and
supportable information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-
month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected
credit losses that is attributable to a default event that is possible within the next 12 months. Where a
financial asset has become credit impaired or where it is determined that credit risk has increased
significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of
expected credit loss recognised is measured on the basis of the probability weighted present value of
anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate.
For financial assets measured at fair value through other comprehensive income, the loss allowance is
recognised within other comprehensive income. In all other cases, the loss allowance is recognised in profit
or loss.
(ii) Exploration and Evaluation Assets
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that
the carrying amount of the asset may exceed its recoverable amount at the reporting date.
Exploration and evaluation assets are tested for impairment in respect of cash generating units, which are no
larger than the area of interest to which the assets relate.
(iii) Non-Financial Assets Other Than Exploration and Evaluation Assets
The carrying amounts of the Group’s non-financial assets, are reviewed at each reporting date to determine
whether there is any indication of impairment. If any such indication exists then the asset’s recoverable
amount is estimated. For goodwill and intangible assets that have indefinite lives or that are not yet available
for use, the recoverable amount is estimated at each reporting date.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair
value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset.
An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its
recoverable amount. Impairment losses are recognised in the income statement. Impairment losses
recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any
goodwill allocated to the units, then to reduce the carrying amount of the other assets in the unit on a pro
rata basis.
26
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (con’t)
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses
recognised in prior periods are assessed at each reporting date for any indications that the loss has
decreased or no longer exits. An impairment loss is reversed if there has been a change in the estimates
used to determine the recoverable amount. An impairment loss is reversed only to the extent that the
asset’s carrying amount does not exceed the carrying amount that would have been determined, net of
depreciation or amortisation, if no impairment loss has been recognised.
Joint operations
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have
rights to the assets, and obligations for the liabilities, relating to the arrangement. The Group has recognised
its share of jointly held assets, liabilities, revenues and expenses of joint operations. These have been
incorporated in the financial statements under the appropriate classifications.
Trade and other payables
Liabilities for trade creditors and other amounts are carried at cost which is the fair value of consideration to
be paid in the future for goods and services received, whether or not billed to the Group. Due to their short-
term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and
are usually paid within 30 days of recognition.
Share-based payment transactions
The Group provides benefits to employees (including Directors) of the Group in the form of share-based
payment transactions, whereby employees render services in exchange for shares or rights over shares
(“equity-settled transaction”).
The cost of these equity-settled transactions with employees is measured by reference to the fair value at
the date at which they are granted. The fair value is determined by an independent external valuation using
a Black-Scholes and Binomial Option Pricing models that takes into account the exercise price, the term of
the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying
share, the expected dividend yield and the risk free interest rate for the term of the option, together with non-
vesting conditions that do not determine whether the Group receives services that entitle the employees to
receive payment.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over
the period in which the performance conditions are fulfilled, ending on the date on which the relevant
employees become fully entitled to the award (“vesting date”).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date
reflects (i) the extent to which the vesting period has expired and (ii) the number of awards that, in the
opinion of the Directors of the Company, will ultimately vest. This opinion is formed based on the best
available information at reporting date. No adjustment is made for the likelihood of market performance
conditions being met as the effect of these conditions is included in the determination of fair value at grant
date.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is
conditional upon a market condition.
Where the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the
terms had not been modified. In addition, an expense is recognised for any increase in the value of the
transaction as a result of the modification, as measured at the date of modification.
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and
any expense not yet recognised for the award is recognised immediately. However, if a new award is
substituted for the cancelled award, and designated as a replacement award on the date that it is granted,
the cancelled and new award are treated as if they were a modification of the original award, as described in
the previous paragraph.
27
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (con’t)
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using
the effective interest method, less any provision for impairment. Trade receivables are generally due for
settlement within 30 days.
Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be
uncollectable are written off by reducing the carrying amount directly. A provision for impairment of trade
receivables is raised when there is objective evidence that the Group will not be able to collect all amounts
due according to the original terms of the receivables. Significant financial difficulties of the debtor,
probability that the debtor will enter bankruptcy or financial reorganisation and default or delinquency in
payments (more than 60 days overdue) are considered indicators that the trade receivable may be impaired.
The amount of the impairment allowance is the difference between the asset’s carrying amount and the
present value of estimated future cash flows, discounted at the original effective interest rate. Cash flows
relating to short-term receivables are not discounted if the effect of discounting is immaterial.
Other receivables are recognised at amortised cost, less any provision for impairment.
Issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds. Incremental costs directly attributable to the issue of new shares or
options, or for the acquisition of a business, are included in the cost of the acquisition as part of the purchase
consideration.
Plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost
includes expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and
equipment (excluding land) over their expected useful lives as follows:
Office equipment
Exploration equipment
2 years
5 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each
reporting date.
An item of property, plant and equipment is recognised upon disposal or when there is no future economic
benefit to the Group. Gains and losses between the carrying amount and the disposal proceeds are taken to
profit or loss.
Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave
expected to be settled within 12 months of the reporting date are recognised in current liabilities in respect of
employees’ services up to the reporting date and are measured at the amounts expected to be paid when the
liabilities are settled.
28
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (con’t)
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the
reporting date are recognized in non-current liabilities, provided there is an unconditional right to defer
settlement of the liability. The liability is measured as the present value of expected future payments to be
made in respect of services provided by employees up to the reporting date using the projected unit credit
method. Consideration is given to expect future wage and salary levels, experience of employee departures
and periods of service. Expected future payments are discounted using market yields at the reporting date on
national corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated
future cash outflows.
Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are
incurred.
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit/loss attributable to the owners of Riedel Resources
Limited, excluding any costs of servicing equity other than ordinary shares, by the weighted average number
of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued
during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
into account the after income tax effect of interest and other financing costs associated with dilutive potential
ordinary shares and the weighted average number of shares assumed to have been issued for no
consideration in relation to dilutive potential ordinary shares.
Comparative figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current financial year.
29
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 2: GAIN FROM ORDINARY ACTIVITIES
2019
$
2018
$
(a) Revenue
Bank interest
Revenue from office sublease
Net gain on sale of tenement1
Reversal of impairment of exploration and evaluation expenditure
Profit on sale of fixed asset
(b) Expenses
Loss for the year includes the following expenses:
Depreciation
Exploration and evaluation expenditure incurred
Equity-settled share based payments expense
Superannuation – defined contribution
Impairment of exploration expenditure
Rental expense – operating lease
6,053
6,088
-
-
10,000
22,141
1,052
38,594
34,800
16,847
1,288,621
28,174
15,533
18,853
200,614
210,305
-
445,305
807
58,515
648,000
21,048
2,207
45,021
1 In November 2017, LMTD Wits Pty Ltd exercised its option to purchase the Riedel’s Charteris Creek Project (E45/2763)
for $500,000 exclusive of GST. Pursuant to the Sale Agreement, all instalments have been received in full by the
Company.
NOTE 3: INCOME TAX EXPENSE
Income tax expense/(benefit):
Current tax
Prior year under provision
Deferred tax
2019
$
2018
$
-
-
-
-
-
-
-
-
30
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 3: INCOME TAX EXPENSE (con’t)
The prima facie income tax expense/(benefit) on pre-
tax accounting loss from operations reconciles to the
income tax expense/ (benefit) in the financial
statements as follows:
Prima facie income tax benefit on profit/(loss) at 30%.
(2018: 30%)
(519,979)
(191,027)
Add:
Tax effect of:
Other non-allowable items
Share based payment
Impairment of exploration expenditure
Write off exploration expenditure
Superannuation payable
Derecognition of foreign subsidiary
Less:
Tax effect of:
Exploration and evaluation expenditure
Impairment on sale
Capital raising costs
Revenue losses not recognised
Provisions and accruals
Income tax expense/(benefit)
The applicable average weighted tax rates are as
follows:
72
10,440
-
-
(1,556)
391,073
400,029
6,157
3,000
14,717
(144,049)
225
(119,950)
-
0%
35
194,400
662
17,555
986
2,844
216,482
3,901
63,091
15,084
(56,321)
(300)
25,455
-
0%
The tax rate used in the above reconciliation is the corporate tax rate of 30% (2018: 30%) payable by
Australian corporate entities on taxable profits under Australian tax law. The full company tax rate of
30% applies to all companies that are not eligible for the lower company tax rate.
The following deferred tax balances have not been
recognised:
Deferred Tax Assets:
At 30% (2018:30%)
Carry forward revenue losses
Capital raising cost
Provisions and accruals
Exploration and evaluation expenditure
Impairment of exploration expenditure
1,711,141
38,744
2,895
17,555
662
1,770,997
1,567,093
53,461
4,676
17,555
662
1,643,447
31
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 3: INCOME TAX EXPENSE (con’t)
The tax benefits of the above Deferred Tax Assets will only be obtained if:
(a) the Company derives future assessable income of a nature and of an amount sufficient to enable the
benefits to be utilised;
(b) the Company continues to comply with the conditions for deductibility imposed by law; and
(c) no changes in income tax legislation adversely affect the Company in utilising the benefits.
Deferred Tax Liabilities:
At 30% (2018:30%)
Exploration and evaluation expenditure
500,846
494,689
The above Deferred Tax Liabilities have not been recognised as they have given rise to the carry forward
revenue losses for which the Deferred Tax Asset has not been recognised.
NOTE 4: AUDITORS’ REMUNERATION
Remuneration of the auditor of the parent entity for:
- Auditing or reviewing the financial report
- Other non-audit services
NOTE 5: CASH AND CASH EQUIVALENTS
Cash on hand
Cash at bank
Refer to note 17 for further information on financial instruments.
NOTE 6: TRADE AND OTHER RECEIVABLES
Current
Trade debtors
Term deposit1
Prepayments
GST/VAT paid
Other debtors
2019
$
26,760
-
26,760
2019
$
314
1,152,406
1,152,720
2019
$
3,185
-
7,740
218,741
86
229,752
2018
$
26,145
950
27,095
2018
$
2,102
2,337,701
2,339,803
2018
$
2,222
20,000
7,128
107,624
-
136,974
1 The $20,000 term deposit expired on 20 May 2019 and funds were released back into the Company’s bank account.
Refer to note 17 for further information on financial instruments.
32
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 7: PLANT & EQUIPMENT
Office Equipment
At cost
Accumulated amortisation
Total office equipment
Exploration Equipment
At cost
Additions/(disposals)
Accumulated amortisation
Total exploration equipment
Total plant and equipment
2019
$
2018
$
37,697
(36,407)
1,290
55,304
(52,445)
(2,859)
-
1,290
37,697
(35,355)
2,342
55,304
-
(55,304)
-
2,342
Reconciliations
Reconciliations of the carrying amounts of each class of plant & equipment at the beginning and end of the
current and previous financial year are set out below:
Office Equipment
Carrying amount at beginning of period
Additions/(disposals)
Depreciation
Carrying amount at end of period
Exploration Equipment
Carrying amount at beginning of period
Additions/(disposals)
Depreciation
Carrying amount at end of period
NOTE 8: EXPLORATION AND EVALUATION EXPENDITURE
Exploration and evaluation expenditure
Gross capitalised exploration and evaluation expenditure
Less: Provision for impairment
Net amount
Exploration and evaluation expenditure reconciliation
Opening balance
Exploration and development expenditure incurred
Exploration and evaluation written off
Impairment
Tenement sold
Closing balance
2019
$
2,342
-
(1,052)
1,290
2018
$
1,592
1,557
(807)
2,342
-
-
-
-
-
-
-
-
2,960,643
(1,291,158)
1,669,485
2,408,180
588,520
(38,594)
(1,288,621)
-
1,669,485
2,410,717
(2,537)
2,408,180
1,638,167
915,175
(58,515)
(2,208)
(84,439)
2,408,180
33
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 9: TRADE AND OTHER PAYABLES
Trade creditors
Accruals
Payroll liabilities
Refer to note 17 for further information on financial instruments.
NOTE 10: ISSUED CAPITAL
(a)
Share capital
Ordinary shares
Issued and paid up capital – consisting of ordinary shares
Less: Cost of issue
Closing balance at 30 June 2018
2019
$
12,137
7,750
4,061
23,948
2018
$
102,475
8,500
47,664
158,639
2018
Shares
2018
$
418,069,699
-
418,069,699
20,200,609
(963,512)
19,237,097
2019
Shares
2019
$
Ordinary shares
Issued and paid up capital – consisting of ordinary shares
Less: Cost of issue
Closing balance at 30 June 2019
418,069,699
-
418,069,699
20,200,609
(963,512)
19,237,097
(b) Movement in ordinary shares capital
Date
Details
No of Shares
$
1 July 2017
1 August 2017
30 August 2017
6 December 2017
6 December 2017
Opening balance
Issue of shares to sophisticated investors
through Placement
Issue of shares pursuant to Rights issue
Issue of shares for payment of underwriting
fees (pursuant to Resolution 6 approved by
shareholders at the Company’s 2017 AGM)
Issue of shares in lieu of forgone remuneration
(pursuant to Resolution 7 approved by
Shareholders at the Company’s
2017 AGM)
6 December 2017 Shares issued in lieu of cash payment to a
21 December 2017 Issue of shares upon the conversion of
consultant
unlisted options exp. 31 December 2017 ex
price of $0.011
21 December 2017 Transfer from reserve
30 June 2018
Less: capital issue costs
Closing balance
244,099,553
16,091,432
36,614,932
93,571,495
549,224
1,403,572
9,113,049
136,696
8,000,000
2,942,475
23,728,195
-
418,069,699
648,000
29,425
261,010
317,958
(200,220)
19,237,097
1 July 2018
Opening balance
418,069,699
19,237,097
30 June 2019
Closing balance
418,069,699
19,237,097
34
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 10: ISSUED CAPITAL (con’t)
Terms and conditions of contributed equity
Ordinary shares have the right to receive dividends as declared and, in the event of winding up the Company,
to participate in proceeds from the sale of all surplus assets in proportion to the number of and amounts paid
up on shares held. The fully paid ordinary shares have no par value.
Ordinary shares entitle their holder to one vote, either in person or by proxy, at a meeting of the Company.
(c) Capital management
Management controls the capital of the Group by monitoring performance against budget to provide the
shareholders with adequate returns and ensure that the Group can fund its operations and continue as a going
concern.
The Group’s liabilities and capital includes ordinary share capital, options and financial liabilities, supported by
financial assets.
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.
NOTE 11: SHARE BASED PAYMENT RESERVE
Share based payments reserve (a)
2019
$
34,800
34,800
2018
$
214,200
214,200
(a) Refers to fair value of options issued in accordance with AASB 2 Share Based Payment.
Share based payment reserve
Options
Total share based payments reserve
Options
Total share based payments reserve
2018
Quantity
18,000,000
18,000,000
2019
Quantity
10,000,000
10,000,000
2018
$
214,200
214,200
2019
$
34,800
34,800
35
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 11: SHARE BASED PAYMENT RESERVE (con’t)
Movements in options (share based payments reserve):
Weighted
Average
Exercise
Price
2018
2018
Opening balance at 1 July 2017
Conversion of options on 21 December 2017
Options lapsed unexercised on 31 January 2018
Closing balance at 30 June 2018
Options
0.018
0.006
0.004
0.018
42,978,195
(23,728,195)
(1,250,000)
18,000,000
Weighted
Average
Exercise
Price
Opening balance at 1 July 2018
Issue of unlisted options to Directors on 23
November 2018
Options lapsed unexercised on 11 March 2019
Closing balance at 30 June 2019
0.018
0.11
0.018
0.11
2019
Options
18,000,000
10,000,000
(18,000,000)
10,000,000
$
597,158
(317,958)
(65,000)
214,200
2019
$
214,200
34,800
(214,200)
34,800
The weighted average remaining contractual life of options outstanding at the end of the financial year was
2.40 years (2018: 0.70 years).
36
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 11: SHARE BASED PAYMENT RESERVE (con’t)
The value of 10,000,000 options was calculated using Black-Scholes Option Pricing Model and totalled
$34,800. The values and inputs are as follows:
Options issued
Underlying share value
Exercise price
Risk free interest rate
Share price volatility
Expiration period
Valuation per option
Options
10,000,000
$0.016
$0.11
2.11%
95%
23 November 2021
$0.00348
The value of 18,000,000 options was calculated using the Black-Scholes Option Pricing Model and totalled
$214,200. The values and inputs are as follows;
Options issued
Underlying share value
Exercise price
Risk free interest rate
Share price volatility
Expiration period
Valuation per option
NOTE 12: FOREIGN CURRENCY TRANSLATION RESERVE
Opening balance
Foreign exchange reserve
Closing balance
Options
18,000,000
$0.015
$0.018
2.045%
150%
11/03/2019
$0.0119
2019
$
(1,116)
(899)
(2,015)
2018
$
-
(1,116)
(1,116)
The foreign currency translation reserve is used to record exchange differences arising from the translation
of the financial statements of foreign subsidiaries.
37
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 13: ACCUMULATED LOSSES
Accumulated losses at the beginning of the year
Net profit/(loss) for the year
Expired options
Accumulated losses at the end of the year
2019
$
2018
$
(14,721,521)
(1,733,262)
214,200
(16,240,583)
(14,149,763)
(636,758)
65,000
(14,721,521)
NOTE 14: NOTES TO THE STATEMENT OF CASH FLOWS
Reconciliation of cash flow from operating activities to profit/(loss)
Profit/(loss) from ordinary activities after income tax
(1,733,262)
(636,758)
2019
$
2018
$
Add: non-cash items:
Foreign exchange loss
Share based payments
Depreciation
Gain on sale of tenements
Impairment of exploration expenditure
Exploration and evaluation expenditure written off
Reversal of impairment
Gain on sale of asset
Changes in assets and liabilities:
Decrease/(increase) in receivables
Increase/(decrease) in payables
-
34,800
1,052
-
1,288,621
38,594
-
(10,000)
(92,233)
(47,150)
(519,578)
185
648,000
807
(200,614)
2,208
58,515
(210,305)
-
(102,904)
37,001
(403,865)
Non-cash investing and financing activities.
(a)
There were no other non-cash investing and financing activities, except the options issued detailed in notes 10
and 11.
38
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 15: EARNINGS PER SHARE
Basic earnings per share
Profit/(Loss) from operations attributable to ordinary equity
holders of Riedel Resources Limited used to calculate basic
loss per share
Weighted average number of ordinary shares used as the
denominator in calculating basic earnings per share
2019
$
Cents
(0.41)
2018
$
Cents
(0.17)
(1,733,262)
(636,758)
2019
Number
2018
Number
418,069,699
379,173,608
The Company has not disclosed diluted earnings per share as the effect of potential ordinary shares is to
increase/(decrease) the profit/(loss) per share.
NOTE 16: SEGMENT REPORTING
The Company has identified its operating segments based on the internal reports that are reviewed and used
by the chief operating decision maker to make decisions about resources to be allocated to the segments and
assess their performance.
Operating segments are identified by Management based on the mineral resource and exploration activities in
Australia and Spain. Discrete financial information about each project is reported to the chief operating
decision maker on a regular basis.
The reportable segments are based on aggregated operating segments determined by the similarity of the
economic characteristics, the nature of the activities and the regulatory environment in which those segments
operate.
Operating segments are identified by management based on exploration activities in Australia and Spain.
2019
Revenue
Australia
$
Spain
$
Unallocated
$
Total
$
22,141
-
-
22,141
Net profit/(loss) before tax
(2,013,086)
246,253
33,571
(1,733,262)
Reportable segment assets
1,952,912
236,518
863,817
3,053,247
Reportable segment liabilities
22,188
1,760
-
23,948
2018
Revenue
Australia
$
Spain
$
Unallocated
$
Total
$
445,305
-
-
445,305
Net profit/(loss) before tax
(217,979)
(9,481)
(409,298)
(636,758)
Reportable segment assets
3,979,114
931,033
(22,848)
4,887,299
Reportable segment liabilities
70,106
941,629
(853,095)
158,640
39
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 17: FINANCIAL INSTRUMENTS
The Group’s principal financial instruments comprise cash and short term deposits. The main purpose of the
financial instruments is to earn the maximum amount of interest at a low risk to the Group. The Group also
has other financial instruments such as trade debtors and creditors which arise directly from its operations.
For the period under review, it has been the Group’s policy not to trade in financial instruments
The main risks arising from the Group’s financial instruments are interest rate risk, foreign exchange risk and
credit risk. The board reviews and agrees policies for managing each of these risks and they are summarised
below:
(a)
(b)
Interest Rate Risk
The Group is exposed to movements in market interest rates on short term deposits. The policy
is to monitor the interest rate yield curve out to 180 days to ensure a balance is maintained
between the liquidity of cash assets and the interest rate return. The Group does not have any
other short or long term debt, and therefore this risk is minimal.
Foreign exchange risk
The Group undertakes certain transactions in foreign currencies, hence exposure to exchange
rate fluctuations arise. Payments made by the Group are made at the prevailing exchange rate at
the time of payment. Loans advanced from the ultimate holding Company to subsidiary
companies are denominated in Australian dollars. The Group does not utilise derivative
instruments to hedge the exchange rate risk.
(c) Credit Risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in
financial loss to the Group. The Group has adopted the policy of only dealing with credit worthy
counterparties and obtaining sufficient collateral or other security where appropriate, as a means
of mitigating the risk of financial loss from defaults.
The Group does not have any significant credit risk exposure to any single counterparty or any Group of
counterparties having similar characteristics. The carrying amount of financial assets recorded in the financial
statements, net of any provisions for losses, represents the Group’s maximum exposure to credit risk.
(a) Exposure to credit risk
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The Group’s
maximum exposure to credit risk at the reporting date was:
Financial assets
Cash and cash equivalents
Other receivables
Carrying Amount
2019
$
1,152,720
222,012
1,374,732
Carrying Amount
2018
$
2,339,803
129,845
2,469,648
Impairment losses
(b)
None of the Group’s other receivables are past due hence no impairment were provided for.
(c) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The
Group's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Group's reputation.
40
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 17: FINANCIAL INSTRUMENTS (con’t)
The Group manages liquidity risk by maintaining adequate reserves by continuously monitoring forecast and
actual cash flows. The Group does not have any external borrowings.
The Company does anticipate a need to raise additional capital in the next 12 months to meet forecasted
operational and exploration activities.
The contractual maturities of financial liabilities, including estimated interest payments and excluding the
impact of netting agreements are shown (e) below.
(d) Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and
equity prices will affect the Group’s income or the value of its holdings of financial instruments.
The objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimising the return.
Interest rate risk
(e)
The Group is exposed to interest rate risk (primarily on its cash and cash equivalents), which is the risk that
a financial instrument's value will fluctuate as a result of changes in the market interest rates on interest-
bearing financial instruments. The Group does not use derivatives to mitigate these exposures.
The Group adopts a policy of ensuring that as far as possible it maintains excess cash and cash
equivalents in short terms deposit at interest rates maturing over 30-180 day rolling periods.
Interest Rate Risk Exposure Analysis
Weighted
Average
Effective
Interest
Rate
2019
FINANCIAL ASSETS
Cash and cash equivalents
Trade and other receivables
Total Financial Assets
%
0.15%
0.00%
FINANCIAL LIABILITIES
Trade and other payables
Total Financial Liabilities
0.00%
Floating
Interest
Rate
$
1,121,646
-
1,121,646
-
-
$
Fixed Interest Rate
Maturing
Within 1
year
Over 1
year
$
-
-
-
-
-
$
-
Total
Non
Interest
Bearing
$
31,074
222,010
253,084
$
1,152,720
222,010
1,374,730
19,887
19,887
19,887
19,887
$
-
-
-
-
-
$
$
$
-
-
-
-
68,120
2,339,803
109,845
177,965
129,845
2,469,648
123,569
123,569
123,569
123,569
2018
FINANCIAL ASSETS
Cash and cash
equivalents
Trade and other
receivables
Total Financial Assets
FINANCIAL LIABILITIES
Trade and other payables
Total Financial Liabilities
%
0.39%
2,271,683
0.36%
-
2,271,683
20,000
20,000
0.00%
-
-
41
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 17: FINANCIAL INSTRUMENTS (con’t)
Cash flow sensitivity analysis for variable rate instruments
(f)
A change of 100 basis points in interest rates at the reporting date would have increased (decreased) profit or
loss by the amounts shown below. The analysis is performed on the same basis for 2019.
Change in profit
Increase in interest rate by 1%
(100 basis points)
Decrease in interest rate by 1%
(100 basis points)
Change in equity
Increase in interest rate by 1%
(100 basis points)
Decrease in interest rate by 1%
(100 basis points)
2019
$
11,216
(11,216)
11,216
(11,216)
2018
$
22,917
(22,917)
22,917
(22,917)
NOTE 18: COMMITMENTS AND CONTINGENCIES
Operating lease commitments
Future minimum rentals payable under non-cancellable operating leases as at 30 June are as follows:
Within one year
After one year but not more than five years
More than five years
2019
$
-
-
-
-
2018
$
7,500
-
-
7,500
The lease of Company offices at Suite 4, 6 Richardson Street, West Perth is settled on a monthly basis from
February 2019 onwards.
Exploration commitments
Future minimum commitments in relation to exploration and mining tenements as at 30 June are as follows:
Within one year
After one year but not more than five years
More than five years
2019
$
342,434
1,620,483
-
1,962,917
2018
$
861,511
1,576,830
-
2,438,341
On 22 July 2019, the Company announced that it has decided not to proceed with further exploration activities
at the Cármenes Project following an extensive review and assessment and that it has given formal notice to
SIEMCALSA of the Company’s termination of the Joint Venture Agreement, thus reducing its future
exploration commitments to nil from 22 July 2019 onwards.
42
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 19: INTERESTS IN CONTROLLED ENTITIES
The consolidated financial statements include the financial statements of Riedel Resources Limited and the
subsidiaries listed in the following table:
Name
AuDAX Minerals Pty Ltd
Riedel Resources (Spain) Pty Ltd
Country of
Equity Interest %
Incorporation
2019
Australia
Australia
100
100
2018
100
100
Riedel Resources Limited is the ultimate Australian parent entity and ultimate parent of the Group.
NOTE 20: RELATED PARTY DISCLOSURE
Terms and conditions of transactions with related parties
Sales to and purchases from related parties are made in arm's length transactions both at normal market
prices and on normal commercial terms.
During the year, the Company paid $20,000 to Mr Grant Mooney and $1,500 to Mooney & Partners, a
company associated with Mr Mooney, for the rental of office space. The rental lease is settled on a monthly
basis. As at 30 June 2019, $500 remained outstanding.
From July 2018 till January 2019, the Company subleased its office at Suite 1, 6 Richardson Street, West
Perth, WA 6005 to Virtual Curtain Limited, a company associated with Mr Moore. Virtual Curtain Limited paid
$6,088 which was 25% of Riedel’s monthly rental and outgoings till January 2019.
Pursuant to Resolutions 3 and 4 approved by the shareholders at the 2018 AGM, 5,000,000 unlisted options
each were issued during the year to Mr Alexander Sutherland and Mr Scott Cuomo, as an incentive to provide
dedicated and ongoing commitment to the Company. The options were valued at a total of $34,800.
Outstanding balances at year-end are unsecured, interest free and settlement occurs in cash. The following
balances were outstanding at the reporting date in relation to transactions with related parties:
Loans to related parties:
Audax Minerals Pty Ltd
2019
$
863,817
863,817
2018
$
830,246
830,246
43
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 20: RELATED PARTY DISCLOSURE (con’t)
Key management personnel compensation
Detailed remuneration disclosures are provided in the Remuneration Report on pages 8 to 13.
Compensation
The aggregate compensation made to directors and other members of key management personnel of the
Group is set out below:
Short term employee benefits
Post-employment benefits
Share-based payments
Total
NOTE 21: EVENTS AFTER THE REPORTING DATE
2019
$
186,250
12,469
34,800
233,519
2018
$
197,635
16,116
648,000
861,751
On 22 July 2019 the Company announced that following an extensive review and assessment of the project, it
has decided not to proceed with further exploration activities at the Cármenes Project and that it has given
formal notice to SIEMCALSA of the Company’s termination of the Joint Venture Agreement.
There are no other matters or circumstances that have arisen since the end of the financial year that have
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 years.
NOTE 22: CONTINGENT ASSETS AND LIABILITIES
The Company is not aware of any contingent assets or liabilities.
NOTE 23: DIVIDENDS
No dividends were paid or declared during the year.
NOTE 24: COMPANY DETAILS
The Company relocated its registered office and principal place of business to Suite 4, 6 Richardson Street,
West Perth, WA 6005 effective 1 March 2019.
44
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 25: PARENT ENTITY DISCLOSURES
Financial Position
Assets
Current Assets
Non-Current Assets
Total Assets
Liabilities
Current Liabilities
Total Liabilities
Equity
Issued Capital
Reserves
Accumulated Losses
Financial Performance
Profit/(Loss) for the year
Total comprehensive profit/(loss)
Commitments
For details see note 18.
Contingent Liabilities/Guarantees
For details see note 22.
NOTE 26: FAIR VALUE MEASUREMENT
2019
$
1,144,660
1,290
1,145,950
2018
$
2,308,606
855,437
3,164,043
22,024
22,024
62,045
62,045
19,237,097
34,800
(18,147,972)
1,123,925
19,237,097
214,200
(16,349,299)
3,101,998
2019
$
(2,012,872)
(2,012,872)
2018
$
(625,988)
(625,988)
The carrying amounts of trade and other receivables and trade and other payables are assumed to be
approximately the fair value due to their short term nature.
45
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
DIRECTORS’ DECLARATION
The directors of the Company declare that:
1.
The attached financial statements and notes are in accordance with the Corporations Act 2001:
(a)
(b)
(c)
comply with Australian Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements; and
give a true and fair view of the Group’s financial position as at 30 June 2019 and of its
performance for the year ended on that date.
comply with International Financial Reporting Standards as issued by the International
Accounting Standards Board as described in note 1 to the financial statements.
2.
In the directors’ opinion there are reasonable grounds to believe that the Company will be able to pay its
debts as and when they become due and payable.
3.
The directors have been given the declaration required by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors.
Grant Mooney
Non-Executive Chairman
Date: 27 September 2019
46
PKF Perth
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
RIEDEL RESOURCES LIMITED
Report on the Financial Report
Opinion
We have audited the accompanying financial report of Riedel Resources Limited (the “Company”), which
comprises the consolidated statement of financial position as at 30 June 2019, the consolidated statement of
profit or loss and other comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, notes comprising a summary of significant
accounting policies and other explanatory information, and the Directors’ Declaration of the Company and the
consolidated entity comprising the Company and the entities it controlled at the year’s end or from time to time
during the financial year.
In our opinion the accompanying financial report of Riedel Resources Limited is in accordance with the
Corporations Act 2001, including:
i) Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2019 and of its
performance for the year ended on that date; and
ii) Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we
comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to
obtain reasonable assurance about whether the financial report is free from material misstatement. Our
responsibilities under those standards are further described in the Auditor’s Responsibility section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Independence
We are independent of the consolidated entity in accordance with the Corporations Act 2001 and the ethical
requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (the code) that are relevant to our audit of the financial report in Australia. We have
also fulfilled our other ethical responsibilities in accordance with the Code.
Level 4, 35 Havelock Street, West Perth, WA 6005
PO Box 609, West Perth, WA 6872
T: +61 8 9426 8999 F: +61 8 9426 8900 www.pkfperth.com.au
PKF Perth is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions
or inactions of any individual member or correspondent firm or firms.
Liability limited by a scheme approved under Professional Standards Legislation.
47
PKF Perth
Key Audit Matter
A key audit matter is a matter that, in our professional judgement, was of most significance in our audit of the
financial report of the current year. This matter was 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 this matter. For
each matter below, our description of how our audit addressed the matter is provided in that context
Carrying value of capitalised exploration expenditure
Why significant
How our audit addressed the key audit
matter
As at 30 June 2019
the carrying value of
exploration and evaluation assets was $1,669,485
(2018:$ 2,408,180), as disclosed in Note 8.
The consolidated entity’s accounting policy
in
respect of exploration and evaluation expenditure
is outlined in Note 1.
Significant judgement is required:
facts
whether
determining
in
and
circumstances indicate that the exploration
and evaluation assets should be tested for
impairment
in accordance with Australian
Accounting Standard AASB 6 Exploration for
and Evaluation of Mineral Resources (“AASB
6”); and
in determining the treatment of exploration and
evaluation expenditure in accordance with
AASB 6, and
the consolidated entity’s
accounting policy. In particular:
o whether the particular areas of interest
meet the recognition conditions for an
asset; and
o which elements of exploration and
for
expenditures
evaluation
capitalisation for each area of interest.
qualify
Our work included, but was not limited to, the
following procedures:
to assess whether
impairment:
there are
indicators of
o assessing whether the rights to tenure of
the areas of interest remained current at
reporting date as well as confirming that
rights to tenure are expected to be renewed
for tenements that will expire in the near
future;
o
o
holding discussions with the Directors and
management as to the status of ongoing
exploration programmes for the areas of
interest, as well as assessing if there was
evidence that a decision had been made to
discontinue activities in any specific areas
of interest; and
obtaining and assessing evidence of the
consolidated entity’s future intention for the
areas of interest, including reviewing future
budgeted expenditure and related work
programmes;
considering whether exploration activities for the
areas of interest had reached a stage where a
economically
reasonable
recoverable reserves existed;
assessment
of
testing, on a sample basis, exploration and
evaluation expenditure incurred during the year
for compliance with AASB 6 and the consolidated
entity’s accounting policy; and
assessing the appropriateness of the related
disclosures in Note 1 and 8.
48
PKF Perth
Other Information
Those charged with governance are responsible for the other information. The other information comprises the
information included in the consolidated entity’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, with the exception of the Remuneration Report.
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 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 Note 1, the Directors also
state, in accordance with Australian Accounting Standard AASB 101 Presentation of Financial Statements, that
the financial report complies with International Financial Reporting Standards.
In preparing the financial report, the Directors are responsible for assessing the consolidated entity’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using a going
concern basis of accounting unless the Directors either intend to liquidate the consolidated entity or to cease
operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our responsibility is to express an opinion on the financial report based on our audit. 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 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 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.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial report.
The procedures selected depend on the auditor’s judgement, including assessment of the risks of material
misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the entity’s preparation of the financial report that gives a true and
fair view 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 entity’s internal control.
49
PKF Perth
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.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial
report.
We 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 consolidated entity’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 consolidated entity to cease to continue as a going concern.
We 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.
We obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the consolidated entity to express an opinion on the financial report. We are responsible for the
direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.
The Auditing Standards require that we comply with relevant ethical requirements relating to audit
engagements. 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 key audit matters. We describe these
matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of
such communication.
Report on the Remuneration Report
Opinion
We have audited the Remuneration Report included in the Directors’ Report for the year ended 30 June 2019.
In our opinion, the Remuneration Report of Riedel Resources Limited for the year ended 30 June 2019,
complies with section 300A of the Corporations Act 2001.
50
PKF Perth
Responsibilities
The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
PKF PERTH
SHANE CROSS
PARTNER
27 SEPTEMBER 2019
WEST PERTH,
WESTERN AUSTRALIA
51
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
SHAREHOLDER INFORMATION
Additional information required by the Australian Securities Exchange Limited Listing Rules and not disclosed
elsewhere in this report is set out below. The information is as at 9 September 2019.
Shareholdings as at 9 September 2019
Substantial shareholders
The names of substantial shareholders listed on the Company’s register are:
Shareholder Name
SATORI INTERNATIONAL PTY LTD
SKIFFINGTON SUPER PTY LTD
FLOURISH SUPER PTY LTD
MR JAMES WALLACE HOPE
QUINLYNTON PTY LTD
Number of
Shares
51,513,316
42,298,000
30,494,093
29,469,924
21,200,000
Percentage
12.32
10.12
7.29
7.05
5.07
Unmarketable parcels
The number of shareholders holding less than a marketable parcel at 9 September 2019 is 167. There is only
one class of share and all ordinary shareholders have equal voting rights.
Voting rights
All ordinary shares carry one vote per share without restriction.
Options over ordinary shares do not carry voting rights.
Unquoted securities
Securities
Options exercisable $0.11 on or before
23 November 2021
Number of
Options Number of Holders Holders with more than 20%
10,000,000
2
Note 1
Note 1 – Mr Alexander Sutherland and Mr Scott Cuomo each holds 5,000,000 options (representing a 50%
holding each).
On-market buyback
There is no current on-market buy-back.
Securities Exchange listing
Quotation has been granted for all ordinary shares of the Company on the Australian Securities Exchange.
Securities subject to escrow
There are no securities that are subject to escrow.
Distribution of security holders
Category
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Number of Holders
26
7
51
152
166
402
Number of Shares
3,623
23,012
469,171
6,928,383
410,645,510
418,069,699
52
RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
SHAREHOLDER INFORMATION (con’t)
Twenty largest shareholders – Ordinary Shares
Name
Number of ordinary
shares held
Percentage of
capital held
SATORI INTERNATIONAL PTY LTD
SKIFFINGTON SUPER PTY LTD
FLOURISH SUPER PTY LTD
MR JAMES WALLACE HOPE
QUINLYNTON PTY LTD
ALMESH PTY LTD
MR JEFFREY JOHN MOORE
CAMPEON PTY LTD
PROVISTA HOLDINGS PTY LTD
MR GARY TATASCIORE
ORITOR PTY LTD
MR PAUL GABRIEL SHARBANEE
SHAH NOMINEES PTY LTD
ORACLE SECURITIES PTY LTD
TILLY INVESTMENTS (ACT) PTY LTD
MR JAYDEN MATTHEW WALLIS
WILKS SUPER PTY LTD
BOND STREET CUSTODIANS LIMITED
MR CAMERON STEWART MCPHIE
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
51,513,316
42,298,000
30,494,093
29,469,924
21,200,000
11,714,607
11,000,000
10,545,825
9,857,589
9,857,589
9,502,027
9,300,000
8,995,532
7,460,070
6,689,884
6,538,653
4,444,444
4,151,339
4,099,555
3,738,706
12.32
10.12
7.29
7.05
5.07
2.80
2.63
2.52
2.36
2.36
2.27
2.22
2.15
1.78
1.60
1.56
1.06
0.99
0.98
0.89
TOTAL
292,871,153
70.05
SCHEDULE OF MINING TENEMENTS AS AT 9 SEPTEMBER 2019
Area of Interest
Tenement reference
Nature of interest
Interest
Australia
Marymia
Marymia
West Yandal
Porphyry
E52/2394
E52/2395
M36/615
M31/157
Direct
Direct
Royalty
Royalty
18.93%
18.93%
0%
0%
MINERAL RESOURCE STATEMENT
At 30 June 2019, the Company does not have any mineral resource.
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