ANNUAL REPORT 2016
ABN 98 117 085 748
CORPORATE DIRECTORY
DIRECTORS
Mr Ian Middlemas – Chairman
Mr Matthew Syme
Mr Jason Baverstock
Mr Mark Hohnen
Mr Mark Pearce
COMPANY SECRETARY
Mr Sam Cordin
REGISTERED OFFICE
Level 9, BGC Centre
28 The Esplanade
Perth WA 6000
Australia
Telephone: +61 8 9322 6322
Facsimile: +61 8 9322 6558
LONDON OFFICE
Unit 1, 38 Jermyn Street
London SW1Y 6DN
United Kingdom
Telephone: +44 207 478 3900
Facsimile: +44 207 434 4450
WEBSITE
www.saltlakepotash.com.au
SECURITIES EXCHANGE LISTING
Australian Securities Exchange
ASX Code: SO4 – Ordinary Shares
London Stock Exchange (AIM)
AIM Code: SO4 – Ordinary Shares
NOMINATED ADVISER
Grant Thornton UK LLP
30 Finsbury Square
London EC2P 2YU
SHARE REGISTRY
Australia
Link Market Services Limited
Level 12, 680 George Street
Sydney NSW 2000
Telephone: +61 1300 554 474
Facsimile: +61 2 9287 0303
United Kingdom
Computershare Investor Services Plc
PO Box 82
The Pavillions
Bridgwater Road
Bristol BS99 7NH
Telephone: +44 870 889 3105
AUDITOR
Ernst & Young
11 Mounts Bay Road
Perth WA 6000
BANKERS
Australia and New Zealand Banking Group Limited
CONTENTS
Directors’ Report ...................................................................................................................................................1
Auditor’s Independence Declaration .....................................................................................................................19
Consolidated Statement of Profit or Loss and other Comprehensive Income ......................................................20
Consolidated Statement of Financial Position ......................................................................................................21
Consolidated Statement of Changes in Equity .....................................................................................................22
Consolidated Statement of Cash Flows ................................................................................................................24
Notes to and Forming Part of the Financial Statements .......................................................................................25
Directors’ Declaration ............................................................................................................................................59
Independent Auditor’s Report ...............................................................................................................................60
Corporate Governance ..........................................................................................................................................62
ASX Additional Information ...................................................................................................................................63
Disclaimers and Disclosure ....................................................................................................................................68
DIRECTORS’ REPORT
The Directors of Salt Lake Potash Limited present their report on the Consolidated Entity consisting of Salt Lake
Potash Limited (Company or Salt Lake) and the entities it controlled at the end of, or during, the year ended 30
June 2016 (Consolidated Entity or Group).
DIRECTORS
The names and details of the Group's Directors in office at any time during the financial year or since the end of the
financial year are:
Mr Ian Middlemas
Mr Matthew Syme
Mr Jason Baverstock
Mr Mark Hohnen
Mr Mark Pearce
Chairman
Chief Executive Officer (CEO) (appointed CEO 29 April 2016)
Executive Director
Non-Executive Director
Non-Executive Director
Unless otherwise stated, Directors held their office from 1 July 2015 until the date of this report.
CURRENT DIRECTORS AND OFFICERS
Mr Ian Middlemas B.Com, CA
Chairman
Mr Middlemas is a Chartered Accountant, a member of the Financial Services Institute of Australasia and holds a
Bachelor of Commerce degree. He worked for a large international Chartered Accounting firm before joining the
Normandy Mining Group where he was a senior group executive for approximately 10 years. He has had extensive
corporate and management experience, and is currently a Director with a number of publicly listed companies in
the resources sector.
Mr Middlemas was appointed a Director of the Company on 21 January 2010 and Chairman on 29 August 2014.
During the three year period to the end of the financial year, Mr Middlemas has held directorships in Apollo Minerals
Limited (July 2016 – present), Cradle Resources Limited (May 2016 – present), Paringa Resources Limited
(October 2013 – present), Berkeley Energia Limited (April 2012 – present), Prairie Mining Limited (August 2011 –
present), Syntonic Limited (April 2010 – present), Equatorial Resources Limited (November 2009 – present), WCP
Resources Limited (September 2009 – present), Sovereign Metals Limited (July 2006 – present), Odyssey Energy
Limited (September 2005 – present), Papillon Resources Limited (May 2011 – October 2014), Sierra Mining Limited
(January 2006 – June 2014) and Decimal Software Limited (July 2013 – April 2014).
Mr Matthew Syme B.Com, CA
Chief Executive Officer
Mr Syme is a Chartered Accountant and an accomplished mining executive with over 26 years experience in senior
management roles in Australia and overseas. He was a Manager in a major international Chartered Accounting firm
before spending 3 years as an equities analyst in a large stockbroking firm. He was then Chief Financial Officer of
Pacmin Mining Limited, a successful Australian gold mining company.
Mr Syme has considerable experience in managing mining projects in a wide range of commodities and countries.
He most recently held the position of Managing Director of copper-gold developer Sierra Mining Limited, which
merged with RTG Mining Inc in early June 2014. Mr Syme was responsible for the acquisition of Sierra’s key Mabilo
Project in late 2011.
Prior to joining Sierra in 2010 he was Managing Director of Berkeley Resources Limited where he successfully
guided the acquisition and scoping studies of Berkeley’s Salamanca Uranium Project in Spain.
Mr Syme was appointed a director of Salt Lake Potash Limited on 9 April 2015 and CEO on 29 April 2016. During
the three year period to the end of the financial year, Mr Syme was a director of Sovereign Metals Limited (June
2014 – June 2016), RTG Mining Inc. (June 2014 – September 2014) and Sierra Mining Limited (July 2010 – June
2014).
Salt Lake Potash Limited ANNUAL REPORT 2016
1
DIRECTORS’ REPORT
(Continued)
CURRENT DIRECTORS AND OFFICERS (Continued)
Mr Jason Baverstock B.Com,
Executive Director
Mr Baverstock founded Australia Salt Lake Potash Pty Ltd and secured each of that company’s potash projects.
He brings to the Company over 10 years of financial, business and research expertise. He began his career with
the Australian government as Researcher and Mandarin Translator in the Australian Embassy in Beijing. He then
worked in commerce and finance in Greater China in roles such as Strategy Analyst at Credit Suisse, Hong Kong
and Analyst at BNP Paribas, Hong Kong. His role at BNP Paribas focused on identifying new investment ideas in
the agricultural and alternative energy sectors and also analysis of the leading Chinese grain processing and
fertiliser companies.
Mr Baverstock was appointed a Director on 15 June 2015. He has not held any other directorships in listed
companies in the previous three years to the end of the financial year.
Mr Mark Hohnen
Non-Executive Director
Mr Hohnen has been involved in the mineral business since the late 1970s and has held a number of directorships
in both public and private companies. He was founding Chairman of Cape Mentelle and Cloudy Bay wines, as well
as the oil and coal company Anglo Pacific Resources Plc and was a director of AIM listed Kalahari Minerals Plc.
Mr Hohnen was appointed a Director of the Company on 19 February 2010. During the three year period to the end
of the financial year, Mr Hohnen has held directorships in Bacanora Minerals Limited (April 2016 – present), Boss
Resources Limited (April 2016 – present), Mawson West Limited (March 2014 – January 2015), Praetorian
Resources Ltd (April 2012 – June 2014) and Mtemi Resources Ltd (September 2012 – August 2014).
Mr Mark Pearce B.Bus, CA, FCIS, FFin
Non-Executive Director
Mr Pearce is a Chartered Accountant and is currently a director of several listed companies that operate in the
resources sector. He has had considerable experience in the formation and development of listed resource
companies. Mr Pearce is also a Fellow of the Institute of Chartered Secretaries and Administrators and a Fellow
of the Financial Services Institute of Australasia.
.
Mr Pearce was appointed a Director of the Company on 29 August 2014. During the three year period to the end
of the financial year, Mr Pearce has held directorships in Apollo Minerals Limited (July 2016 – present), Prairie
Mining Limited (August 2011 – present), Syntonic Limited (April 2010 – present), WCP Resources Limited
(September 2009 – present), Equatorial Resources Limited (November 2009 – present), Sovereign Metals Limited
(July 2006 – present), Odyssey Energy Limited (September 2005 – present) and Decimal Software Limited (July
2013 - April 2014).
2
Salt Lake Potash Limited ANNUAL REPORT 2016
PRINCIPAL ACTIVITIES
The principal activities of the Group during the financial year consisted of the exploration and development of
resource projects. No significant change in nature of these activities occurred during the year.
OPERATING AND FINANCIAL REVIEW
Operations
The Company’s primary focus during the period continued to be the advancement of the Lake Wells’ Project,
located in the Northern Goldfields of Western Australia approximately 200km north of Laverton. The Project
comprises 1,126 km2 of Exploration Licences, substantially covering the Lake Wells Playa and the area
immediately contiguous to the Lake. The Project has potential to host a large, high grade salt lake brine project
to produce highly sought after Sulphate of Potash (SOP) for domestic and international fertiliser markets.
Figure 1: Location of Lake Wells
Salt Lake Potash Limited ANNUAL REPORT 2016
3
DIRECTORS’ REPORT
(Continued)
OPERATING AND FINANCIAL REVIEW (Continued)
Operations (Continued)
Highlights
Highlights during, and subsequent to the end of, the financial year include:
Initial Shallow Core Drilling Program: a program of 32 shallow hollow auger core holes was completed over
the entire surface of the Lake, forming the basis of the maiden resource estimate.
Maiden Mineral Resource Estimate for Lake Wells: the Company completed its maiden JORC Mineral
Resource estimate for the Lake Wells Project, totalling 29 million tonnes (Mt) of Sulphate of Potash (SOP)
with approximately 80% in the ‘Measured’ category with excellent brine chemistry of 4,009 mg/L Potassium
(K), 19,175 mg/L (SO4). The resource was calculated only on the upper 16 metres of the Lake, with
mineralisation remaining open at depth across most of the Lake.
Completion of Deeper Air Core Drill Program: A program of 27 air core drill holes for a total of 1,697m
were drilled over the Lake. An average drill depth of 63m (ranging from 15m-126m) was achieved, confirming
continuation of the brine pool at depth. The majority of holes ended in high grade brine, and the brine pool
remains open at depth. The successful air core program identified permeable rock units (aquifers) at the base
of the brine saturated sedimentary sequence, potentially representing a productive aquifer for brine extraction
by pumping from bores.
Deeper Resource Estimate: Based on the aircore drilling, an expanded Mineral Resource Estimate (MRE)
was calculated at Lake Wells totaling 80-85 million tonnes of SOP. This represents an additional 51-56 Mt of
Inferred Resource calculated in the strata below the previously reported shallow Resource of 29 Mt.
Geophysical Survey and Modelling: An extensive geophysical survey was completed, including gravity and
passive seismic programs focused on paleochannel mapping and aquifer modelling.
Initial Test Pumping: the Company competed initial test pumping of the paleochannel and surface aquifers
at Lake Wells, returning very encouraging results. The test pumping provided aquifer permeability
measurements within or exceeding the expected range for the paleochannel and surface aquifers,
demonstrating the potential to draw very substantial brine flows from both the paleochannel and surface
aquifers.
Completion of a positive Scoping Study: which confirmed the potential of the Lake Wells Project to produce
low cost SOP by solar evaporation of lake brines for domestic and international fertiliser markets. The Scoping
Study (accuracy ±30%) prepared by global engineering firm, Amec Foster Wheeler, and other international
experts, demonstrates excellent project fundamentals based on well-established solar evaporation and salt
processing techniques. Based on the positive results of the Scoping Study, the Company will now proceed to
a Pre-Feasibility Study (PFS).
Lake Wells has the potential to be one of only five large scale salt lake SOP producers around the world and
the Project’s estimated cash production costs of A$185 per tonne (Stage 2) would be amongst the lowest in
the world.
The Scoping Study is based on a two stage development plan for Lake Wells:
-
-
Stage 1 is based on shallow trenching and bore production with 100% of brine feed drawn from the near
surface Measured Resource.
Stage 2 also includes pumping additional brine from the deeper Inferred Resource, to increase
production to 400,000 tpa of SOP.
All-in capital costs total A$268 million for the 400,000 tpa production scenario, amongst the lowest capital
intensity for any proposed potash project worldwide.
4
Salt Lake Potash Limited ANNUAL REPORT 2016
Next Steps
Commencement of a Pre-Feasibility Study (PFS): based on the positive results of the Scoping Study, the
Company has commenced a PFS. During the PFS phase, the Company will undertake more detailed
hydrological testwork and modelling, brine extraction optimisation and further infrastructure assessment
aimed at identifying opportunities to enhance the Project economics through capital and operating cost
reductions.
Continued Exploration activities: including drilling, test pumping and other testwork are already underway,
to upgrade the resource classification and increase the overall resource base. The targeted outcomes include
an improved hydrogeological understanding of the performance of basal sand (deep bores) bores including
draw down rates, productivity rates and bore and trench positions, as well as improved understanding of the
potential productivity of the fractured siltstone aquifer.
Field Evaporation Trial: A comprehensive field evaporation trial has commenced with the objective to
optimise evaporation pond design from a flow, halite storage, and hydraulic perspective. The field trial will
also produce large samples of product salts which can be used for marketing and testing purposes.
Regional Lakes and Opportunities: The Company will also continue to investigate potential additional
revenue streams for the Project and other opportunities for enhancement, including the benefits of an
integrated Lake Wells-Lake Irwin operation.
Corporate
Successful Placement Raising $8.9 million: the Company completed a placement of 27,775,000 ordinary
shares to strategic and institutional investors in Australia and overseas, raising gross proceeds of $8.9 million.
Appointment of Chief Executive Officer: Mr Matthew Syme, a Non-Executive Director of the Company, and
accomplished mining executive, has been appointed as Chief Executive Officer (CEO) of the Company after
effectively acting as CEO.
Scoping Study
The Scoping Study (accuracy ±30%) prepared by global engineering firm, Amec Foster Wheeler, and other
international experts, demonstrates excellent project fundamentals based on well-established solar evaporation
and salt processing techniques. Based on the positive results of the Scoping Study, the Company will now proceed
to a Pre-Feasibility Study (PFS).
Lake Wells has the potential to be one of only five large scale salt lake SOP producers around the world and the
Project’s estimated cash production costs of A$185 per tonne (Stage 2) would be amongst the lowest in the world.
The Project will produce SOP from hypersaline brine extracted from Lake Wells via trenches and a combination of
shallow and deep production bores. The extracted brine will be transported to a series of solar evaporation ponds
built on the Lake where selective evapo-concentration will precipitate potassium double salts in the final evaporation
stage. These potassium-rich salts will be mechanically harvested and processed into SOP in a crystallisation plant.
The final product will then be transported for sale to the domestic and international markets.
The Scoping Study is based on a two stage development plan for Lake Wells:
‐ Stage 1 is based on shallow trenching and bore production with 100% of brine feed drawn from the near surface
Measured Resource.
‐ Stage 2 also includes pumping additional brine from the deeper Inferred Resource, to increase production to
400,000 tpa of SOP.
Key Scoping Study results for Stage 1 and Stage 2:
Annual Production (tpa) – steady state
Capital Cost *
Operating Costs **
Stage 1
200,000
A$191m
A$241/t
Stage 2
400,000
A$39m
A$185/t
* Capital Costs based on an accuracy of -10%/+30% before contingencies and growth allowance but including EPCM.
** Operating Costs based on an accuracy of ±30% including transportation & handling (FOB Esperance) but before royalties
and depreciation.
Salt Lake Potash Limited ANNUAL REPORT 2016
5
DIRECTORS’ REPORT
(Continued)
OPERATING AND FINANCIAL REVIEW (Continued)
Operations (Continued)
The Scoping Study is based on the Project’s Mineral Resource Estimate of 80-85 Mt of SOP in 9,691 GL of brine
at an average of 8.7 kg/m3 of K2SO4. The Mineral Resource Estimate includes Measured and Indicated Resources
of 26 Mt of SOP in the shallowest 20m of the Lake.
The Study has established the indicative costs of a two stage production operation, initially producing
200,000 tonnes per annum (tpa) and then 400,000 tpa of dried organic SOP. Stage 1 produces 200,000 tpa but
includes most of the capital works required for a 400,000 tpa operation. Stage 2 will commence after initial capex
is repaid by cashflow generated from the shallow Measured and Indicated Resource.
Key Assumptions and Inputs
Maximum Study Accuracy Variation
Stage
Life of Mine (LOM)
Annual Production (steady state) tonnes
Portion of Production Target – Measured & Indicated
Portion of Production Target – Inferred
+/- 30%
Stage 1
20 years
200,000
100%
0%
+/- 30%
Stage 2
400,000
70%
30%
Mining Method (Extraction)
Trenches (km)
Shallow Bores (number)
Deep Bores (number)
Mining Method (Extraction (volume))
Trenches (m3/h)
Shallow Bores (m3/h)
Deep Bores (m3/h)
Total Volume
Evaporation Ponds
Area (ha)
Recovery of Potassium from feed brine
Recovery of Sulphate from feed brine
Plant
Operating time (h/a)
Operating Costs * (±30%)
Minegate (A$/t)
Transport (A$/t)
Total (A$/t)
Capital Costs (-10%/+30%)
Direct
Indirect
Growth Allowance
Total Capital
* Before Royalties and Depreciation
6
Salt Lake Potash Limited ANNUAL REPORT 2016
107
4
-
3,074
576
-
3,650
2,990
70%
18%
157
4
34
4,521
576
2,203
7,300
3,170
70%
18%
7,600
7,600
$165.74
$75.10
$240.84
A$160.7m
A$30.5m
A$32.5m
A$223.7m
$110.00
$75.10
$185.10
A$32.0m
A$6.8m
A$5.1m
A$43.9m
The Scoping Study results highlight the benefits of Lake Wells’ location in the Northern Goldfields, with excellent
access to gas and transportation infrastructure. Total Capex of A$268 million for 400,000 tpa of SOP is amongst
the lowest capital intensity of any proposed potash project worldwide.
Opportunities have been identified to further optimise capital and operating costs through equipment lease
financing, further operational refinements and partnerships. The Company will also continue to investigate potential
additional revenue streams for the project.
Results of Operations
The net loss of the Consolidated Entity for the year ended 30 June 2016 was $4,645,028 (2015 restated: net loss
of $1,348,856). This loss is mainly attributable to:
(i)
(ii)
(iii)
Exploration and evaluation expenses of $3,191,159 (2015 restated: $191,882) which is attributable to the
Group’s accounting policy of expensing exploration and evaluation expenditure incurred by the Group
subsequent to the acquisition of the rights to explore and up to the successful completion of definitive
feasibility studies for each separate area of interest;
Non-cash share-based payment expenses of $163,448 (2015: nil) which is attributable to the Group’s
accounting policy of expensing the value (estimated using an option pricing model) of Incentive Options to
key employees and consultants. The value is measured at grant date and recognised over the period during
which the option holders become unconditionally entitled to the options and/or rights; and
Business development expenses of $365,354 (2015: $85,432) which is attributable to additional business
development and investor relations activities required to support the growth and development of the Lake
Wells Project, including travel costs associated with representing the Company at international conferences
and investor meetings.
Financial Position
As at the date of this report, the Company had working capital in excess of $7 million which includes cash and cash
equivalents.
At 30 June 2016, the Company had cash reserves of $7,498,285 (2015: $3,172,363), and no debt.
At 30 June 2016, the Company had net assets of $9,397,552 (restated 2015: $5,542,742), an increase of 70%
compared with the previous year. This increase is consistent with the increase in cash reserves following the
completion of the placement raising $8.9 million, which is offset by the comprehensive loss for the year of $4.6
million.
Business Strategies and Prospects for Future Financial Years
The objective of the Group is to create long-term shareholder value through the discovery, exploration and
development of its projects.
To date, the Group has not commenced production of any minerals. To achieve its objective, the Group currently
has the following business strategies and prospects:
(i)
(ii)
Complete a PFS on the Lake Wells Project;
Complete additional exploration activites including drilling,test pumping and other testwork; and
(iii)
Complete a comprehensive field evaporation trial to optimise the definition of evaporation ponds and design.
All of these activities are inherently risky and the Board is unable to provide certainty of the expected results of
these activities, or that any or all of these likely activities will be achieved. The material business risks faced by the
Group that could have an effect on the Group’s future prospects, and how the Group manages these risks, include:
Salt Lake Potash Limited ANNUAL REPORT 2016
7
DIRECTORS’ REPORT
(Continued)
OPERATING AND FINANCIAL REVIEW (Continued)
Business Strategies and Prospects for Future Financial Years (Continued)
The Company’s exploration properties may never be brought into production – The exploration for, and
development of, mineral deposits involves a high degree of risk. Few properties which are explored are ultimately
developed into producing mines. To mitigate this risk, the Company will undertake systematic and staged
exploration and testing programs on its mineral properties and, subject to the results of these exploration programs,
the Company will then progressively undertake a number of technical and economic studies with respect to its
projects prior to making a decision to mine. However there can be no guarantee that the studies will confirm the
technical and economic viability of the Company’s mineral properties or that the properties will be successfully
brought into production;
The Company’s activities will require further capital – The exploration and any development of the Company’s
exploration properties will require substantial additional financing. Failure to obtain sufficient financing may result
in delaying or indefinite postponement of exploration and any development of the Company’s properties or even a
loss of property interest. There can be no assurance that additional capital or other types of financing will be
available if needed or that, if available, the terms of such financing will be favourable to the Company;
The Company’s exploration licence may be subject to Native title and Aboriginal Heritage - There may be
areas over which legitimate common law and/or statutory Native Title rights of Aboriginal Australians exist. If Native
Title rights do exist, the ability of the Company to gain access to the Projects (through obtaining consent of any
relevant landowner), or to progress from the exploration phase to the development and mining phases of operations
may be adversely affected;
The Company may be adversely affected by fluctuations in commodity prices – The price of potash and other
commodities fluctuates widely and is affected by numerous factors beyond the control of the Company. Future
production, if any, from the Company’s mineral properties will be dependent upon the price of potash and other
commodities being adequate to make these properties economic. The Company currently does not engage in any
hedging or derivative transactions to manage commodity price risk. As the Company’s operations change, this
policy will be reviewed periodically going forward; and
Global financial conditions may adversely affect the Company’s growth and profitability – Many industries,
including the mineral resource industry, are impacted by these market conditions. Some of the key impacts of the
current financial market turmoil include contraction in credit markets resulting in a widening of credit risk,
devaluations and high volatility in global equity, commodity, foreign exchange and precious metal markets, and a
lack of market liquidity. Due to the current nature of the Company’s activities, a slowdown in the financial markets
or other economic conditions may adversely affect the Company’s growth and ability to finance its activities. If these
increased levels of volatility and market turmoil continue, the Company’s activities could be adversely impacted and
the trading price of the Company’s shares could be adversely affected.
EARNINGS PER SHARE
Basic and diluted loss per share
2016
Cents
2015
Cents
(4.13)
(3.34)
ENVIRONMENTAL REGULATION AND PERFORMANCE
The Group's operations are subject to various environmental laws and regulations under the relevant government's
legislation. Full compliance with these laws and regulations is regarded as a minimum standard for all operations
to achieve.
Instances of environmental non-compliance by an operation are identified either by external compliance audits or
inspections by relevant government authorities.
There have been no significant known breaches by the Group during the financial year.
8
Salt Lake Potash Limited ANNUAL REPORT 2016
DIVIDENDS
No dividends were paid or declared since the start of the financial year. No recommendation for payment of
dividends has been made.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Significant changes in the state of affairs of the Consolidated Entity during the financial year were as follows:
On 11 November 2015, the Company announced a maiden Mineral Resource Estimation (MRE) at the Lake
Wells Project, totalling 29 million tonnes (Mt) of Sulphate of Potash (SOP).
On 2 December 2015, The Company changed its name ASX and AIM code has changed to Salt Lake Potash
Limited (formerly Wildhorse Energy Limited) and ASX/AIM code “SO4” (formerly WHE).
On 22 February 2016, the Company announced an expanded Mineral Resource Estimate (MRE) at the Lake
Wells Project, totalling 80-85 million tonnes of SOP.
On 29 April 2016, Mr Matthew Syme was appointed CEO of the Company.
In June 2016, the Company completed a placement of 27.78 million ordinary shares to sophisticated investors,
to raise $8.9 million before costs.
SIGNIFICANT EVENTS AFTER BALANCE DATE
(i) On 9 September 2016, the Company issued 180,000 shares to a consultant in lieu of fees.
As at the date of this report there are no matters or circumstances which have arisen since 30 June 2016 that have
significantly affected or may significantly affect:
the operations, in financial years subsequent to 30 June 2016, of the Consolidated Entity;
the results of those operations, in financial years subsequent to 30 June 2016, of the Consolidated Entity;
or
the state of affairs, in financial years subsequent to 30 June 2016, of the Consolidated Entity.
DIRECTORS' INTERESTS
As at the date of this report, the Directors' interests in the securities of the Company are as follows:
Mr Ian Middlemas
Mr Mark Hohnen
Mr Jason Baverstock
Mr Matthew Syme
Mr Mark Pearce
Interest in securities at the date of this report
Ordinary Shares1
Incentive Options 2
Performance Shares 3
11,000,000
5,033,218
5,100,000
4,500,000
4,000,000
-
-
-
2,500,000
-
-
-
7,650,000
-
-
Notes:
1 Ordinary Shares means fully paid Ordinary Shares in the capital of the Company.
2 Incentive Options means an unlisted share option to subscribe for one Ordinary Share in the capital of the Company.
3 Performance Shares means Performance Shares issued by the Company that convert to one Ordinary Share in the capital
of the Company upon vesting of various performance conditions.
Salt Lake Potash Limited ANNUAL REPORT 2016
9
DIRECTORS’ REPORT
(Continued)
SHARE OPTIONS AND PERFORMANCE SHARES
At the date of this report the following options and performance shares have been issued over unissued Ordinary
Shares of the Company:
57,370 Unlisted Options exercisable at $3.60 each on or before 30 November 2016;
57,370 Unlisted Options exercisable at $4.80 each on or before 30 November 2016;
57,370 Unlisted Options exercisable at $6.00 each on or before 30 November 2016;
33,333 Unlisted Options exercisable at $2.73 each on or before 30 November 2016;
750,000 Unlisted Options exercisable at $0.40 each on or before 29 April 2019;
750,000 Unlisted Options exercisable at $0.50 each on or before 29 April 2020;
1,000,000 Unlisted Options exercisable at $0.60 each on or before 29 April 2021;
5,000,000 ‘Class A’ Performance Shares on or before 12 June 2018;
7,500,000 ‘Class B’ Performance Shares on or before 12 June 2019; and
10,000,000 ‘Class C’ Performance Shares on or before 12 June 2020.
During the year ended 30 June 2016 no Ordinary Shares have been issued as a result of the exercise of Unlisted
Options, and no Ordinary Shares have been issued as a result of the conversion of Performance Shares.
Subsequent to year end and up until the date of this report, no Ordinary Shares have been issued as a result of the
exercise of no Unlisted Options.
REMUNERATION REPORT (AUDITED)
This Remuneration Report, which forms part of the Directors’ Report, sets out information about the remuneration
of Key Management Personnel (KMP) of the Group.
Details of Key Management Personnel
Details of the KMP of the Group during or since the end of the financial year are set out below:
Directors
Mr Ian Middlemas
Mr Matthew Syme
Mr Jason Baverstock
Mr Mark Hohnen
Mr Mark Pearce
Other KMP
Mr Sam Cordin
Chairman
Chief Executive Officer (CEO) (appointed CEO 29 April 2016)
Executive Director
Non-Executive Director
Non-Executive Director
Chief Financial Officer and Company Secretary
Unless otherwise disclosed, the KMP held their position from 1 July 2015 until the date of this report.
Remuneration Policy
The Group’s remuneration policy for its KMP has been developed by the Board taking into account the size of the
Group, the size of the management team for the Group, the nature and stage of development of the Group’s current
operations, and market conditions and comparable salary levels for companies of a similar size and operating in
similar sectors. In addition to considering the above general factors, the Board has also placed emphasis on the
following specific issues in determining the remuneration policy for KMP:
(a)
the Group is currently focused on undertaking exploration, appraisal and development activities;
(b)
risks associated with small cap resource companies whilst exploring and developing projects; and
(c) other than profit which may be generated from asset sales, the Company does not expect to be undertaking
profitable operations until sometime after the commencement of commercial production on any of its projects.
10
Salt Lake Potash Limited ANNUAL REPORT 2016
Executive Remuneration
The Group’s remuneration policy is to provide a fixed remuneration component and a performance based
component (short term incentive and long term incentive). The Board believes that this remuneration policy is
appropriate given the considerations discussed in the section above and is appropriate in aligning executives’
objectives with shareholder and business objectives.
Fixed Remuneration
Fixed remuneration consists of base salaries, as well as employer contributions to superannuation funds and other
non-cash benefits. Non-cash benefits may include provision of car parking and health care benefits.
Fixed remuneration is reviewed annually by the Board. The process consists of a review of company and individual
performance, relevant comparative remuneration externally and internally and, where appropriate, external advice
on policies and practices.
Performance Based Remuneration – Short Term Incentive (STI)
Some executives are entitled to an annual cash incentive payment upon achieving various key performance
indicators (“KPI’s”), as set by the Board. Having regard to the current size, nature and opportunities of the Company,
the Board has determined that these KPI’s will include measures such as successful commencement and/or
completion of exploration activities (e.g. commencement/completion of exploration programs within budgeted
timeframes and costs), establishment of government relationship (e.g. establish and maintain sound working
relationships with government and officialdom), development activities (e.g. completion of infrastructure studies and
commercial agreements), corporate activities (e.g. recruitment of key personnel and representation of the company
at international conferences) and business development activities (e.g. corporate transactions and capital raisings).
These measures were chosen as the Board believes they represent the key drivers in the short and medium term
success of the Project’s development. On an annual basis, subsequent to year end, the Board assesses
performance against each individual executive’s KPI criteria. During the 2016 financial year, no bonuses were
approved, paid, or are payable.
Performance Based Remuneration – Long Term Incentive
The Board has chosen to issue incentive securities (either options or rights) where appropriate to some executives
as a key component of the incentive portion of their remuneration, in order to attract and retain the services of the
executives and to provide an incentive linked to the performance of the Company. The Board considers that each
executive’s experience in the resources industry will greatly assist the Company in progressing its projects to the
next stage of development and the identification of new projects. As such, the Board believes that the number of
incentive securities (either options or rights) granted to executives is commensurate to their value to the Company.
Incentive options granted to executives generally have exercise prices at or above the market share price at the
time of agreement. As such, incentive options granted to executives will generally only be of benefit if the executives
perform to the level whereby the value of the Company increases sufficiently to warrant exercising the incentive
options granted. Other than service-based vesting conditions, there are generally no additional performance criteria
on the incentive options granted to executives, as given the speculative nature of the Company’s activities and the
small management team responsible for its running, it is considered the performance of the executives and the
performance and value of the Company are closely related. During the 2016 financial year, the Company issued
incentive options to Mr Matthew Syme as part of his remuneration as CEO.
The Company prohibits executives from entering into arrangements to limit their exposure to Incentive Options
granted as part of their remuneration package.
The Company plans to adopt a long-term incentive plan (“LTIP”) comprising the “Salt Lake Performance Rights
Plan” (the “Plan”) to reward KMP and key employees for long-term performance. The Company will put the plan to
Shareholders’ vote in November 2016 at the Annual General Meeting of Shareholders.
The Plan provides for the issuance of unlisted performance share rights (Performance Rights) which, upon
satisfaction of the relevant performance conditions attached to the Performance Rights, will result in the issue of an
Ordinary Share for each Performance Right. Performance Rights are issued for no consideration and no amount is
payable upon conversion thereof.
Salt Lake Potash Limited ANNUAL REPORT 2016
11
DIRECTORS’ REPORT
(Continued)
REMUNERATION REPORT (AUDITED) (Continued)
Executive Remuneration (Continued)
Performance Based Remuneration – Long Term Incentive (Continued)
To achieve its corporate objectives, the Company needs to attract and retain its key staff, whether employees or
contractors. The Board believes that grants made to eligible participants under the Plan will provide a powerful tool
to underpin the Company's employment and engagement strategy, and that the implementation of the Plan will:
(a)
(b)
(c)
(d)
(e)
enable the Company to incentivise and retain existing key management personnel and other eligible
employees and contractors needed to achieve the Company's business objectives;
enable the Company to recruit, incentivise and retain additional key management personnel and other
eligible employees and contractors needed to achieve the Company's business objectives;
link the reward of key staff with the achievements of strategic goals and the long term performance of the
Company;
align the financial interest of participants of the Plan with those of Shareholders; and
provide incentives to participants of the Plan to focus on superior performance that creates Shareholder
value.
Performance Rights granted under the Plan to eligible participants will be linked to the achievement by the Company
of certain performance conditions as determined by the Board from time to time. These performance conditions
must be satisfied in order for the Performance Rights to vest. Upon Performance Rights vesting, Ordinary Shares
are automatically issued for no consideration. If a performance condition of a Performance Right is not achieved by
the expiry date then the Performance Right will lapse.
Non-Executive Director Remuneration
The Board’s policy is for fees to Non-Executive Directors to be no greater than market rates for comparable
companies for time, commitment and responsibilities. Given the current size, nature and risks of the Company,
Unlisted Options may also be used to attract and retain Non-Executive Directors. 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 amount of fees that can be paid to Non-Executive Directors is subject to approval by
shareholders at a General Meeting. Director’s fees paid to Non-Executive Directors accrue on a daily basis. Fees
for Non-Executive Directors are not linked to the performance of the economic entity. However, to align Directors’
interests with shareholder interests, the Directors are encouraged to hold shares in the Company and given the
current size, nature and opportunities of the Company, Non-Executive Directors may receive Unlisted Options in
order to secure and retain their services.
Fees for the Chairman are presently $36,000 per annum (2015: $36,000) and fees for Non-Executive Directors’ are
presently set at $20,000 per annum (2015: $20,000). These fees cover main board activities only. Only Non-
Executive Directors may receive additional remuneration for other services provided to the Company, including but
not limited to, membership of committees. The Company prohibits executives entering into arrangements to limit
their exposure to Unlisted Options granted as part of their remuneration package.
Relationship between Remuneration of KMP and Shareholder Wealth
During the Company’s exploration and development phases of its business, the Board anticipates that the Company
will retain earnings (if any) and other cash resources for the exploration and development of its resource projects.
Accordingly, the Company does not currently have a policy with respect to the payment of dividends and returns of
capital. Therefore there was no relationship between the Board’s policy for determining, or in relation to, the nature
and amount of remuneration of KMP and dividends paid and returns of capital by the Company during the current
and previous four financial years.
The Board did not determine, and in relation to, the nature and amount of remuneration of the KMP by reference to
changes in the price at which shares in the Company traded between the beginning and end of the current and the
previous four financial years. Discretionary annual cash incentive payments are based upon achieving various non-
financial key performance indicators as detailed under “Performance Based Remuneration – Short Term Incentive”
and are not based on share price or earnings. However, as noted above, certain KMP may receive Unlisted Options
in the future which generally will be of greater value to KMP if the value of the Company’s shares increases
sufficiently to warrant exercising the Unlisted Options.
12
Salt Lake Potash Limited ANNUAL REPORT 2016
Relationship between Remuneration of KMP and Earnings
As discussed above, the Company is currently undertaking exploration and development activities, and does not
expect to be undertaking profitable operations (other than by way of material asset sales, none of which is currently
planned) until sometime after the successful commercialisation, production and sales of commodities from one or
more of its projects. Accordingly the Board does not consider earnings during the current and previous four financial
years when determining, and in relation to, the nature and amount of remuneration of KMP.
Emoluments of Directors and Executives
Details of the nature and amount of each element of the emoluments of each Director and KMP of Salt Lake
Potash Limited are as follows:
Short-term Incentives
2016
Current Directors
Mr Ian Middlemas
Mr Matthew Syme 1
Mr Jason Baverstock
Mr Mark Hohnen
Mr Mark Pearce
Current Other KMP
Mr Sam Cordin 2
Total
Salary &
fees
$
36,000
194,834
125,000
20,000
20,000
-
395,834
Cash
Incentive
Payments
$
Living
Allow-
ance
$
Post-
employment
benefits
$
Share-
based
payments
$
Perfor-
mance
related
%
Total
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,420
5,542
11,875
-
1,900
-
-
39,420
-
163,448
363,824
45%
-
-
-
-
136,875
20,000
21,900
-
-
-
-
-
22,737
163,448
582,019
Notes:
1 Mr Syme was appointed as CEO on 29 April 2016. Prior to Mr Syme’s appointment as CEO, Mr Syme acted as a Non-Executive Director receiving
Directors fees of $16,667 and consulting fees of $135,500 for additional services provided to the Company.
2 Mr Cordin provides services as the Company Secretary through a services agreement with Apollo Group Pty Ltd (‘Apollo’). During the year, Apollo
was paid, or was payable, $210,000 for the provision of a fully serviced office and administrative, accounting and company secretarial services to
the Group.
Salt Lake Potash Limited ANNUAL REPORT 2016
13
DIRECTORS’ REPORT
(Continued)
REMUNERATION REPORT (AUDITED) (Continued)
Emoluments of Directors and Executives (Continued)
Short-term Incentives
Salary &
fees
$
Cash
Incentive
Payments
$
Living
Allow-
ance
$
Post-
employment
benefits
$
Share-
based
payments
$
-
6,667
10,000
36,667
6,667
-
-
-
-
-
-
15,750
75,751
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
950
396
633
-
-
-
-
-
-
-
1,979
-
-
-
-
-
-
-
-
-
-
-
-
-
Perfor-
mance
related
%
-
-
-
-
-
-
-
-
-
-
-
-
Total
$
-
6,667
10,950
37,063
7,300
-
-
-
-
-
-
15,750
77,730
2015
Current Directors 1
Mr Ian Middlemas 2
Mr Mark Hohnen
Mr Jason Baverstock 3
Mr Matthew Syme 4
Mr Mark Pearce 5
Former Directors
Mr Matthew Swinney 6
Mr Brett Mitchell 7
Mr James Strauss 8
Mr Johan Brand 9
Dr Konrad Wetzker 10
Current Other KMP
Mr Sam Cordin 11
Former Other KMP
Ms Sophie Raven 12
Total
Notes:
1 Directors’ fees effective 1 July 2014 to 1 March 2015 were set at nil for the period the Company completed the recapitalisation process.
2 Mr Middlemas elected not to receive any Chairman fees for this financial year.
3 Mr Baverstock was appointed 15 June 2015.
4 Mr Syme was appointed 9 April 2015. Mr Syme received Directors fees of $4,167 and consulting fees of $32,500 for additional services provided
to the Company.
5 Mr Pearce was appointed 29 August 2014.
6 Mr Swinney resigned effective from 29 August 2014.
7 Mr Mitchell resigned effective from 29 August 2014.
8 Mr Strauss resigned effective from 29 August 2014.
9 Mr Brand resigned effective from 25 July 2014.
10 Dr Wetzker resigned effective from 29 August 2014.
11 Mr Cordin was appointed 13 November 2014. Mr Cordin provides services as the Company Secretary through a services agreement with Apollo
Group Pty Ltd (‘Apollo’). During the year, Apollo was paid, or was payable, $64,000 for the provision of a fully serviced office and administrative,
accounting and company secretarial services to the Group.
12 Ms Raven ceased her role effective 13 November 2014.
14
Salt Lake Potash Limited ANNUAL REPORT 2016
Options Granted to KMP
Details of Incentive Options granted by the Company to each KMP of the Group during the financial year are as
follows:
Options/
Rights(i)
Grant Date
Vesting
Date(iii) Expiry Date
Exercise
Price
$
Grant Date
Fair
Value(i)
$
No. Vested
No.
Granted(ii)
At 30 June
2016
2016
Director
Matthew Syme Options
03-Jun-16 29-Apr-16 29-Apr-19
$0.40
$0.190
750,000
750,000
Matthew Syme Options
03-Jun-16 29-Apr-17 29-Apr-20
$0.50
$0.204
750,000
Matthew Syme Options
03-Jun-16 29-Apr-18 29-Apr-21
$0.60
$0.217 1,000,000
-
-
Notes:
(i)
(ii)
(iii)
For details on the valuation of the options, including models and assumptions used, please refer to Note 21 to the financial
statements;
Each unlisted Incentive Option converts into one Ordinary Share of Salt Lake Potash Limited; and
The vesting conditions are service conditions.
No options were granted to KMPs during the 2015 financial year.
Details of the values of Incentive Options granted, exercised or lapsed for each KMP of the Group during the 2016
financial year are as follows:
Options
Granted
Value at
Grant Date
Options
Exercised
Value at
Exercise
Date
Options
Lapsed
Value at
Time of
Lapse
$
$
$
Total
Value of
Options
Granted,
Exercised
and
Lapsed
$
Value of
Options
Percentage of
Remuneration
included in
Remuneration
for the Period
for the Period
that Consists of
Options
$
%
2016
Directors
Matthew Syme
512,500
-
-
512,500
163,448
45%
Equity instruments held by KMP
Options and Performance Shares holdings of Key Management Personnel
Held at
1 July
2015
Granted as
Remuner-
ation
Options
Exercised/Rights
Converted
Net Other
Change
Held at
30 June
2016
Vested
and
exercise-
able at 30
June 2016
2016
Directors
Mr Ian Middlemas
Mr Matthew Syme
-
-
-
2,500,000
Mr Jason Baverstock
7,650,000
Mr Mark Hohnen
Mr Mark Pearce
Other KMP
Mr Sam Cordin
-
-
-
-
-
-
-
7,650,000
2,500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,500,000
750,000
7,650,000
-
-
-
-
-
-
-
- 10,150,000
750,000
Salt Lake Potash Limited ANNUAL REPORT 2016
15
DIRECTORS’ REPORT
(Continued)
REMUNERATION REPORT (AUDITED) (Continued)
Equity instruments held by KMP (Continued)
Ordinary Shareholdings of Key Management Personnel
Held at
1 July 2015
Granted as
Remuneration
Options
Exercised/
Rights
Converted
Net Other
Change
Held at
30 June 2016
2016
Directors
Mr Ian Middlemas
11,000,000
Mr Matthew Syme
Mr Jason Baverstock
Mr Mark Hohnen
Mr Mark Pearce
Other KMP
Mr Sam Cordin
4,500,000
5,100,000
5,033,218
4,000,000
400,000
30,033,218
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11,000,000
4,500,000
5,100,000
5,033,218
4,000,000
400,000
30,033,218
Employment Contracts with Directors and KMP
Mr Matthew Syme, Chief Executive Officer, has a letter of appointment with the Company dated 29 April 2016. The
contract specifies the duties and obligations to be fulfilled by the Chief Executive Officer. The contract has a rolling
annual term and may be terminated by the Company by giving 3 months notice. No amount is payable in the event
of termination for neglect or incompetence in regards to the performance of duties. The contract provides for an
annual salary of $250,000 plus superannuation and insurance benefits.
For the period 1 July 2015 to 29 April 2016, Mr Matthew Syme had a consulting agreement with the Company dated
1 March 2015, which provided for a consultancy fee at the rate of $1,000 per day for business development services
provided by Mr Syme. Either party could terminate with three months written notice. In addition, Mr Syme also
received the fixed remuneration component of $20,000 per annum plus superannuation as previously set by the
Board for Non-Executive Directors.
Mr Jason Baverstock, Executive Director, has a letter of appointment with the Company dated 31 May 2016 and
effective 1 May 2016. The contract specifies the duties and obligations to be fulfilled by the Executive Director. The
contract has a rolling annual term and may be terminated by the Company by giving 3 months notice. No amount
is payable in the event of termination for neglect or incompetence in regards to the performance of duties. The
contract provides for an annual salary of $150,000 plus superannuation and insurance benefits.
For the period 1 July 2015 to 30 April 2016, Mr Jason Baverstock, Executive Director, had an employment
agreement with the Company which specified the duties and obligations to be fulfilled by an Executive Director. Mr
Baverstock is entitled to a fee of $10,000 per month plus any required superannuation. The contract had a 12 month
term which may be terminated by the Company at any time for any reason and by Mr Baverstock by giving at least
1 months’ notice. No amount was payable in the event of termination by the Company for cause, including wilful or
negligent failure to perform duties. In the event of termination by the Company without cause, then the Company
was required to pay Mr Baverstock $5,000 per month for the period from the effective date of that notice until the
end date of the 12 month term.
Loans from Key Management Personnel
No loans were provided to or received from Key Management Personnel during the year ended 30 June 2016
(2015: Nil).
Other Transactions
Apollo Group Pty Ltd, a Company of which Mr Mark Pearce is a Director and beneficial shareholder, was paid or is
payable $210,000 (2015: $64,000) for the provision of serviced office facilities, company secretarial, corporate and
administration services for the year ended 30 June 2016. The amount is based on a monthly retainer due and
payable in advance, with no fixed term, and is able to be terminated by either party with one month’s notice. At 30
June 2016, $20,000 (2015: $64,000) was included as a current liability in the Statement of Financial Position.
End of Remuneration Report
16
Salt Lake Potash Limited ANNUAL REPORT 2016
DIRECTORS' MEETINGS
The number of meetings of Directors held during the year and the number of meetings attended by each Director
was as follows (there were no Board committees during the financial year):
Mr Ian Middlemas
Mr Mark Hohnen
Mr Jason Baverstock
Mr Matthew Syme
Mr Mark Pearce
Board Meetings
Number eligible to attend
Number attended
1
1
1
1
1
1
1
1
1
1
INSURANCE OF OFFICERS
During the financial year, the Company has paid a premium in respect of insuring the directors and officers of the
Company and the Group. The insurance contract prohibits disclosure of the premium or the nature of liabilities
insured against under the policy.
The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be
brought against the officers in their capacity as officers of entities in the Consolidated Group and any other payments
arising from liabilities incurred by the officers in connection with such proceedings. This does not include such
liabilities that arise from conduct involving a wilful breach of duty by the officers or improper use by the officers of
their position or of information to gain advantage for themselves or someone else or to cause detriment to the
Company. It is not possible to apportion the premium between amounts relating to the insurance against legal
costs and those relating to other liabilities.
INDEMNIFICATION AND INSURANCE OF AUDITORS
To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young, as part of the
terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified
amount). No payment has been made to indemnify Ernst & Young during or since the financial year.
NON-AUDIT SERVICES
Non-audit services provided by our auditors, Ernst and Young (2015: KPMG) and related entities, are set out below.
The Directors are satisfied that the provision of non-audit services is compatible with the general standard of
independence for auditors imposed by the Corporations Act. The nature and scope of each type of non-audit service
provided means that auditor independence was not compromised. No non-audit services were provided by KPMG
during the year ended 30 June 2015.
Tax and other advisory services
2016
$
21,773
21,773
2015
$
-
-
PROCEEDINGS ON BEHALF OF THE COMPANY
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section
237 of the Corporations Act 2001.
CORPORATE GOVERNANCE
The Statement of Corporate Governance Practices is set out in a separate section of the Company’s 2016 Annual
Report and discloses the Company’s main corporate governance practices throughout the financial year.
Salt Lake Potash Limited ANNUAL REPORT 2016
17
DIRECTORS’ REPORT
(Continued)
AUDITOR'S INDEPENDENCE DECLARATION
The lead auditor's independence declaration for the year ended 30 June 2016 has been received and can be found
on page 19 of the Directors' Report.
Signed in accordance with a resolution of the Directors.
MATTHEW SYME
CEO
23 September 2016
18
Salt Lake Potash Limited ANNUAL REPORT 2016
AUDITOR'S INDEPENDENCE DECLARATION
Salt Lake Potash Limited ANNUAL REPORT 2016
19
CONSOLIDATED STATEMENT OF PROFIT OR
LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2016
Continuing operations
Finance income
Exploration and evaluation expenses
Corporate and administrative expenses
Business development expenses
Impairment of exploration and evaluation assets
Loss before tax
Income tax expense
Loss from continuing operations
Discontinued operations
Net loss from discontinued operations (net of income tax)
Loss for the year
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Exchange differences arising during the year – continuing
operations
Exchange differences arising during the year – discontinued
operations
Other comprehensive income for the year, net of tax
Total comprehensive loss for the year
30 June
2016
Restated*
30 June
2015
Notes
$
$
4
72,946
28,337
(3,191,159)
(191,882)
(867,999)
(480,537)
(365,354)
(85,432)
(293,462)
-
(4,645,028)
(729,514)
-
-
(4,645,028)
(729,514)
-
(619,342)
(4,645,028)
(1,348,856)
6
3
14,873
151,466
-
(133,553)
14,873
17,913
(4,630,155)
(1,330,943)
Basic and diluted loss per share attributable to the ordinary equity
holders of the company (cents per share)
Basic and diluted loss per share – continuing operations (cents per
share)
16
16
(4.13)
(3.34)
(4.13)
(1.81)
Notes:
* Refer to note 1(d) for details of the restatement due to the change in Exploration and Evaluation accounting policy.
The above Consolidated Statement of Profit or Loss and other Comprehensive Income should be read in conjunction with the
accompanying notes.
20
Salt Lake Potash Limited ANNUAL REPORT 2016
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
AS AT 30 JUNE 2016
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Total Current Assets
Non-Current Assets
Exploration and evaluation expenditure
Property, plant and equipment
Total Non-Current Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Trade and other payables
Provisions
Total Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
Notes
30 June 2016
$
Restated*
30 June 2015
$
7
8
10
9
11
12
13
14
7,498,285
126,583
7,624,868
2,276,736
115,275
2,392,011
10,016,879
607,615
11,712
619,327
619,327
3,172,363
55,372
3,227,735
2,555,915
10,288
2,566,203
5,793,938
251,196
-
251,196
251,196
9,397,552
5,542,742
106,761,669
695,316
98,440,152
516,995
(98,059,433)
(93,414,405)
9,397,552
5,542,742
Notes:
* Refer to note 1(d) for details of the restatement due to the change in Exploration and Evaluation accounting policy.
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
Salt Lake Potash Limited ANNUAL REPORT 2016
21
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2016
$
2
4
7
,
2
4
5
,
5
)
8
2
0
,
5
4
6
,
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(
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7
8
,
4
1
)
5
5
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,
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3
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,
4
(
4
2
1
,
5
3
0
0
0
,
8
8
8
,
8
)
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0
6
,
1
0
6
(
8
4
4
,
3
6
1
2
5
5
,
7
9
3
,
9
$
-
-
-
-
-
-
-
-
-
-
)
8
2
0
,
5
4
6
,
4
(
-
$
$
)
5
0
4
,
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(
5
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Salt Lake Potash Limited ANNUAL REPORT 2016
23
CONSOLIDATED STATEMENT OF
CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2016
Cash flows from operating activities
Payments to suppliers and employees
Interest received
Note
30 June
2016
$
(3,906,492)
66,335
Net cash outflow from operating activities
15(a)
(3,840,157)
Cash flows from investing activities
Payments for property, plant and equipment
Proceeds from the sale of property, plant and equipment
Net cash acquired on acquisition of controlled entity
17
(120,456)
-
-
Net cash (outflow) from investing activities
(120,456)
Cash flows from financing activities
Proceeds from issue of shares
Transaction costs from issue of shares
Net cash inflow from financing activities
8,888,000
(601,607)
8,286,393
*Restated
30 June
2015
$
(944,236)
21,888
(922,348)
-
52,627
(53,546)
(919)
3,783,441
(89,512)
3,693,929
Net increase in cash and cash equivalents held
4,325,780
2,770,662
Net foreign exchange differences
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
15(b)
142
3,172,363
7,498,285
(2,442)
404,143
3,172,363
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
24
Salt Lake Potash Limited ANNUAL REPORT 2016
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies adopted in preparing the financial report of Salt Lake Potash Limited (Salt Lake
or Company) and its consolidated entities (Consolidated Entity or Group) for the year ended 30 June 2016 are
stated to assist in a general understanding of the financial report.
Salt Lake is a Company limited by shares incorporated and domiciled in Australia whose shares are publicly traded
on the Australian Securities Exchange (ASX), and the Alternative Investment Market (AIM) on the London Stock
Exchange.
The financial report of the Group for the year ended 30 June 2016 was authorised for issue in accordance with a
resolution of the Directors on 22 September 2016.
(a) Basis of Preparation
The financial report is a general purpose financial report, which has been prepared in accordance with Australian
Accounting Standards (“AASBs”) and other authoritative pronouncements of the Australian Accounting Standards
Board (“AASB”) and the Corporations Act 2001. The Group is a for-profit entity for the purposes of preparing the
consolidated financial statements.
The financial report has been prepared on a historical cost basis. The financial report is presented in Australian
dollars.
The consolidated financial statements have been prepared on a going concern basis which assumes the continuity
of normal business activity and the realisation of assets and the settlement of liabilities in the ordinary course of
business.
The Group has updated the classification of expenses to make the Statement of Profit or Loss and other
Comprehensive Income more relevant to users of the financial report. This has resulted in the reclassification of
some items in the prior year, however, has not impacted the reported loss for the year or earnings per share.
Discontinued operation
A discontinued operation is a component of the Group’s business that represents a separate major line of business
or geographical area of operations that has been disposed of or held for sale, or is a subsidiary acquired exclusively
with a view of resale. Classification as a discontinued operation occurs upon disposal or when the operation meets
the criteria to be classified as held for sale, if earlier. When an operation is classified as a discontinued operation,
the comparative statement is restated as if the operation had been discontinued from the start of the comparative
period.
Reclassification of comparative information
Certain comparatives have been reclassified to conform with the presentation and classification of the current
financial year. Refer to note 1(d) for re-presentations made.
(b) Statement of Compliance
The financial report complies with Australian Accounting Standards and International Financial Reporting Standards
(“IFRS”) as issued by the International Accounting Standards Board.
In the current year, the Group has adopted all of the new and revised Standards and Interpretations issued by the
AASB that are relevant to its operations and effective for the current annual reporting period.
New and revised standards and amendments thereof and interpretations effective for the current reporting period
that are relevant to the Group include:
(i)
AASB 2015-3 Amendments to Australian Accounting Standards arising from the Withdrawal of AASB 1031
Materiality which completes the withdrawal of references to AASB 1031 in all Australian Accounting
Standards and Interpretations, allowing that standard to be effectively withdrawn.
The adoption of these new and revised standards has not resulted in any significant changes to the Group's
accounting policies or to the amounts reported for the current or prior periods. The Group has not early adopted
any other standard, interpretation or amendment that has been issued but is not yet effective.
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
effective have not been adopted by the Group for the annual reporting period ended 30 June 2016. Those which
may be relevant to the Group are set out in the table below, but these are not expected to have any significant
impact on the Group's financial statements.
Salt Lake Potash Limited ANNUAL REPORT 2016
25
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(Continued)
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(b) Statement of Compliance (Continued)
Application
Date of
Standard
Application
Date for
Group
1 January
2018
1 July 2018
1 January
2018
1 July 2018
1 January
2019
1 July 2019
1 January
2016
1 July 2016
1 January
2016
1 July 2016
1 January
2017
1 July 2017
1 January
2017
1 July 2017
1 January
2016
1 July 2016
1 January
2018
1 July 2018
Title
Summary
AASB 9 Financial Instruments
AASB 15 Revenue from
Contracts with Customers
AASB 16 Leases
AASB 9 is a new standard which replaces AASB 139
Financial Instruments: Recognition and Measurement.
AASB 9 incorporates a simplified model for classifying and
recognising financial instruments, a new impairment
model, and a substantially-reformed approach to hedge
accounting.
AASB 15 is a new standard which replace AASB 118
(which covers contracts for goods and services) and AASB
111 (which covers construction contracts). AASB 15 is
based on the principle that revenue is recognised when
control of a good or service transfers to a customer – so
the notion of control replaces the existing notion of risks
and rewards.
AASB 16 is a new standard which replaces AASB 117
Leases. AASB 16 will primarily affect the accounting by
lessees and will result in the recognition of almost all
leases on the balance sheet. The standard removes the
current distinction between operating and financing leases
and requires recognition of an asset (the right to use the
leased item) and a financial liability to pay rentals for
almost all lease contracts.
AASB 2015-1 Annual
Improvements to Australian
Accounting Standards 2012–
2014 Cycle
Amendments to clarify minor points in various accounting
standards, including AASB 5 Non-Current Assets Held for
Sale and Discontinued Operations, AASB 7 Financial
Instruments: Disclosures, AASB 119 Employee Benefits
and AASB 134 Interim Financial Reporting.
AASB 2015-2 Disclosure
Initiative: Amendments to
AASB 101
Amends AASB 101 Presentation of Financial Statements
to clarify a number of presentation issues and highlight
that preparers are permitted to tailor the format and
presentation of the financial statements to their
circumstances and the needs of users.
AASB 2016-1 Recognition of
Deferred Tax Assets for
Unrealised Losses
Amends AASB 112 Income Taxes to clarify the
requirements on recognition of deferred tax assets for
unrealised losses on debt instruments measured at fair
value.
AASB 2016-2 Disclosure
Initiative: Amendments to
AASB 107
AASB 1057 Application of
Australian Accounting
Standards (as amended by
AASB 2015-9 Scope and
Application Paragraphs)
AASB 2 Classification and
Measurement of Share-based
Payment Transactions
Amends AASB 107 Statement of Cash Flows to introduce
additional disclosures that enable users of financial
statements to evaluate changes in liabilities arising from
financing activities, including both changes arising from
cash flows and non-cash changes.
This Standard effectively moves Australian specific
application paragraphs from each Standard into a
combined Standard. The Standard has no impact on the
application of individual standards.
This standard amends AASB 2 Share-based Payment,
clarifying how to account for certain types of share-based
payment transactions. The amendments provide
requirements on the accounting for:
- The effects of vesting and non-vesting conditions on the
measurement of cash-settled share-based payments
- Share-based payment transactions with a net settlement
feature for withholding tax obligations
A modification to the terms and conditions of a share-
based payment that changes the classification of the
transaction from cash-settled to equity-settled
26
Salt Lake Potash Limited ANNUAL REPORT 2016
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(c) Principles of Consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of the Company as at
30 June 2016 and the results of all subsidiaries for the year then ended.
Subsidiaries are all entities (including structured 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.
The financial statements of the subsidiaries are prepared for the same reporting period as the Company, using
consistent accounting policies. Accounting policies of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the Company.
Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are de-
consolidated from the date that control ceases. Intercompany transactions and balances, income and expenses
and profits and losses between Group companies, are eliminated.
(d) Change in Accounting Policy
The policy for accounting for exploration and evaluation expenditure has changed from the policy applied in previous
reporting periods.
In previous reporting periods, all costs incurred in connection with the exploration and evaluation of areas with
current rights of tenure were capitalised and recognised as an exploration and evaluation asset. Costs carried
forward in respect of an area of interest that was abandoned were written off in the year in which the decision to
abandon was made.
The policy has now changed, and the new policy has been applied retrospectively (with comparative information
restated accordingly). Under the new policy:
‐
‐
exploration and evaluation expenditure incurred in the acquisition of the rights to explore (including payments
to landowners required under the Group’s mineral leases) is capitalised and recognised as an exploration
and evaluation asset; and
exploration and evaluation expenditure incurred subsequent to the acquisition of the rights to explore will
now be expensed as incurred, up to and until the final investment decision to commence construction.
The Directors are of the opinion that the change in accounting policy provides users with more relevant and no less
reliable information as the policy is more transparent and less subjective. The policy is common of exploration
focussed companies where exploration and evaluation expenditure is viewed as an ongoing expense of discovery,
until a technical feasibility study has been completed. The impact of this change in accounting policy is reflected
below.
For comparative purposes the accounts within the Consolidated Statement of Financial Position have changed by:
Decrease in exploration and evaluation assets
Net decrease in equity
1 July
2014
$
(280,164)
(280,164)
30 June
2015
$
(472,046)
(472,046)
Salt Lake Potash Limited ANNUAL REPORT 2016
27
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(Continued)
For comparative purposes the loss after tax has changed by:
Recognised exploration expenditure
Increase in loss
30 June
2015
$
(191,882)
(191,882)
Basic and diluted loss per share have also been restated. The amount of the impact on basic and diluted loss per
share for the restated result for the year ended 30 June 2015 due to the change in accounting policy is an increase
in loss per share of 0.47 cents.
(e) Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid
investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within
short-term borrowings in current liabilities on the statement of financial position.
(f)
Trade and Other Receivables
Trade receivables are recognised and carried at the original invoice amount less a provision for any uncollectable
debts. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts
are written-off as incurred.
Receivables from related parties are recognised and carried at the nominal amount due and are interest free.
(g)
Investments and Other Financial Assets
(i)
Classification
Financial assets in the scope of AASB 139 Financial Instruments: Recognition and Measurement are classified as
either financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments, or
available-for-sale investments, as appropriate. When financial assets are recognised initially they are measured at
fair value, plus, in the case of investments not at fair value through profit or loss, directly attributable transaction
costs. The Group determines the classification of its financial assets after initial recognition and, when allowed and
appropriate, re-evaluates this designation at each financial year-end.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted
in an active market. They arise when the Group provides money, goods or services directly to a debtor with no
intention of selling the receivable. They are included in current assets, except for those with maturities greater than
twelve months after the reporting date which are classified as non-current assets. Loans and receivables are
included in receivables in the statement of financial position.
(ii)
Recognition and derecognition
Purchases and sales of investments are recognised on trade-date – the date on which the Group commits to
purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial
assets not carried at fair value through profit or loss. Financial assets are derecognised when the rights to receive
cash flows from the financial assets have expired or have been transferred and the Group has transferred
substantially all the risks and rewards of ownership.
(iii)
Subsequent measurement
Available-for-sale financial assets and financial assets at fair value through profit or loss are subsequently carried
at fair value. Loans and receivables and held-to-maturity investments are carried at amortised cost using the
effective interest rate method. Realised and unrealised gains and losses arising from changes in the fair value of
the 'financial assets at fair value through profit or loss' category are included in the Statement of Profit or Loss and
other Comprehensive Income in the period in which they arise. Unrealised gains and losses arising from changes
in the fair value of non-monetary securities classified as available-for-sale are recognised in equity in the
investments available-for-sale reserve. When securities classified as available-for-sale are sold or impaired, the
accumulated fair value adjustments previously reported in equity are included in the Statement of Profit or Loss and
other Comprehensive Income as gains and losses on disposal of investment securities.
28
Salt Lake Potash Limited ANNUAL REPORT 2016
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Loans and receivables (Continued)
(iv)
Impairment
The Group assesses at each balance date whether there is objective evidence that a financial asset or group of
financial assets is impaired. In the case of equity securities classified as available-for-sale, a significant or prolonged
decline in the fair value of a security below its cost is considered in determining whether the security is impaired. If
any such evidence exists for available-for-sale financial assets, the cumulative loss – measured as the difference
between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously
recognised in Profit or loss – is transferred from equity to the Statement of Profit or Loss and other Comprehensive
Income. Impairment losses recognised in the Statement of Profit or Loss and other Comprehensive Income on
equity instruments classified as held for sale are not reversed through the Statement of Profit or Loss and other
Comprehensive Income.
(h) Property, Plant and Equipment
(i)
Cost and valuation
All classes of property, plant and equipment are measured at historical cost.
Plant and equipment is stated at historical cost less accumulated depreciation and any accumulated impairment
losses. Such cost includes the cost of replacing parts that are eligible for capitalisation when the cost of replacing
the parts is incurred. Similarly, when each major inspection is performed, its cost is recognised in the carrying
amount of the plant and equipment as a replacement only if it is eligible for capitalisation. All other repairs and
maintenance are recognised in the Statement of Profit or Loss and other Comprehensive Income as incurred.
(ii)
Depreciation and Amortisation
Depreciation is provided on a straight line basis on all property, plant and equipment.
Major depreciation and amortisation periods are:
Leasehold Land:
Buildings:
Plant and equipment:
2016
2015
7% - 20%
7% - 20%
22%- 40%
22%- 40%
22%- 40%
22%- 40%
The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at
each financial year end.
(iii) Derecognition
An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits
are expected from its use or disposal.
(i)
Exploration and Development Expenditure
Expenditure on exploration and evaluation is accounted for in accordance with the 'area of interest' method and
with AASB 6 Exploration for and Evaluation of Mineral Resources.
Exploration and evaluation expenditure encompasses expenditures incurred by the Group in connection with the
exploration for and evaluation of mineral resources before the technical feasibility and commercial viability of
extracting a mineral resource are demonstrable.
For each area of interest, expenditure incurred in the acquisition of rights to explore is capitalised, classified as
tangible or intangible, and recognised as an exploration and evaluation asset. Exploration and evaluation assets
are measured at cost at recognition and are recorded as an asset if:
(i)
the rights to tenure of the area of interest are current; and
(ii)
at least one of the following conditions is also met:
Salt Lake Potash Limited ANNUAL REPORT 2016
29
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(Continued)
the exploration and evaluation expenditures are expected to be recouped through successful development
and exploitation of the area of interest, or alternatively, by its sale; and
exploration and evaluation activities in the area of interest have not at the reporting date reached a stage
which permits a reasonable assessment of the existence or otherwise of economically recoverable
reserves, and active and significant operations in, or in relation to, the area of interest are continuing.
Exploration and evaluation expenditure incurred by the Group subsequent to acquisition of the rights to explore is
expensed as incurred, up to costs associated with the preparation of a feasibility study.
(i)
Impairment
Capitalised exploration costs are reviewed each reporting date to establish whether an indication of impairment
exists. If any such indication exists, the recoverable amount of the capitalised exploration costs is estimated to
determine the extent of the impairment loss (if any). Where an impairment loss subsequently reverses, the carrying
amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the
increased carrying amount does not exceed the carrying amount that would have been determined had no
impairment loss been recognised for the asset in previous years.
Where a decision is made to proceed with development, accumulated expenditure is tested for impairment and
transferred to development properties, and then amortised over the life of the reserves associated with the area of
interest once mining operations have commenced. Recoverability of the carrying amount of the exploration and
evaluation assets is dependent on successful development and commercial exploitation, or alternatively, sale of
the respective areas of interest.
(j)
Payables
Liabilities are recognised for amounts to be paid in the future for goods and services received. Trade accounts
payable are normally settled within 60 days.
(k) Provisions
Provisions are recognised when the group has a legal or constructive obligation, as a result of past events, for
which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.
(l)
Revenue Recognition
Interest income
Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the
financial assets.
(m)
Income Tax
The income tax expense for the period is the tax payable on the current period's taxable income based on the
national income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable
to temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial
statements, and to unused tax losses.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when
the assets are recovered or liabilities are settled, based on those tax rates which are enacted or substantively
enacted for each jurisdiction. The relevant tax rates are applied to the cumulative amounts of deductible and taxable
temporary differences to measure the deferred tax asset or liability. An exception is made for certain temporary
differences arising from the initial recognition of an asset or a liability. No deferred tax asset or liability is recognised
in relation to these temporary differences if they arose on goodwill or in a transaction, other than a business
combination, that at the time of the transaction did not affect either accounting profit or taxable profit or loss.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and
tax bases of investments in controlled entities where the Company is able to control the timing of the reversal of the
temporary differences and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable
that future taxable amounts will be available to utilise those temporary differences and losses.
30
Salt Lake Potash Limited ANNUAL REPORT 2016
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(m)
Income Tax (Continued)
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income
tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each balance date and are recognised to the extent
that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly
in equity.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current
tax assets against tax liabilities and the deferred tax liabilities relate to the same taxable entity and the same taxation
authority.
Tax consolidation
Salt Lake Potash Limited and its wholly-owned Australian subsidiaries have formed an income tax consolidated
group under the tax consolidation regime. Each entity in the group recognises its own current and deferred tax
liabilities, except for any deferred tax assets resulting from unused tax losses and tax credits, which are immediately
assumed by the Company. The current tax liability of each group entity is then subsequently assumed by the
Company. The tax consolidated group has entered a tax sharing agreement whereby each company in the Group
contributes to the income tax payable in proportion to their contribution to the net profit before tax of the tax
consolidated group.
(n) Employee Entitlements
Provision is made for the Group's liability for employee benefits arising from services rendered by employees to
balance date. Employee benefits that are expected to be settled within 12 months have been measured at the
amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later
than 12 months have been measured at the present value of the estimated future cash outflows to be made for
those benefits.
(o) Earnings per Share
Basic earnings per share (EPS) is calculated by dividing the net profit attributable to members of the Company for
the reporting period, after excluding any costs of servicing equity, by the weighted average number of Ordinary
Shares of the Company, adjusted for any bonus issue.
Diluted EPS is calculated by dividing the basic EPS earnings, adjusted by the after tax effect of financing costs
associated with dilutive potential Ordinary Shares and the effect on revenues and expenses of conversion to
Ordinary Shares associated with dilutive potential Ordinary Shares, by the weighted average number of Ordinary
Shares and dilutive Ordinary Shares adjusted for any bonus issue.
(p) Goods and Services Tax
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 the expense. Receivables and payables in the statement of financial
position are shown inclusive of GST.
Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing
and financing activities, which are disclosed as operating cash flows.
(q) Segment Reporting
An operating segment is a component of an entity that engages in business activities from which it may earn
revenues and incur expenses (including revenues and expenses relating to transactions with other components of
the same entity), whose operating results are regularly reviewed by the entity's chief operating decision maker to
make decisions about resources to be allocated to the segment and assess its performance and for which discrete
financial information is available. This includes start-up operations which are yet to earn revenues. Management
Salt Lake Potash Limited ANNUAL REPORT 2016
31
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(Continued)
will also consider other factors in determining operating segments such as the existence of a line manager and the
level of segment information presented to the Board of Directors.
Operating segments have been identified based on the information provided to the chief operating decision makers
– being the executive management team.
Operating segments that meet the quantitative criteria as prescribed by AASB 8 are reported separately. However,
an operating segment that does not meet the quantitative criteria is still reported separately where information about
the segment would be useful to users of the financial statements.
Information about other business activities and operating segments that are below the quantitative criteria are
combined and disclosed in a separate category for “all other segments”.
(r)
Acquisition of Assets
A group of assets may be acquired in a transaction which is not a business combination. In such cases the cost of
the group is allocated to the individual identifiable assets (including intangible assets that meet the definition of and
recognition criteria for intangible assets in AASB 138) acquired and liabilities assumed on the basis of their relative
fair values at the date of purchase.
(s)
Impairment of Assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any
such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of
the asset's recoverable amount. An asset's recoverable amount is the higher of its fair value less costs to sell and
its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are
largely independent of those from other assets or groups of assets and the asset's value in use cannot be estimated
to be close to its fair value. In such cases the asset is tested for impairment as part of the cash-generating unit to
which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount,
the asset or cash-generating unit is considered impaired and is written down to its recoverable amount.
In assessing the 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 assessment is also made at each reporting date as to whether there is any indication that previously recognised
impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is
estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates
used to determine the asset's recoverable amount since the last impairment loss was recognised. If that is the case
the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the
carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised
for the asset in prior years. Such reversal is recognised in profit or loss unless the asset is carried at a revalued
amount, in which case the reversal is treated as a revaluation increase. After such a reversal the depreciation
charge is adjusted in future periods to allocate the asset's revised carrying amount, less any residual value, on a
systematic basis over its remaining useful life.
(t)
Fair Value Estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for
disclosure purposes.
The fair value of financial instruments traded in active markets (such as available-for-sale securities) is based on
quoted market prices at the reporting date. The quoted market price used for financial assets held by the Group is
the current bid price; the appropriate quoted market price for financial liabilities is the current ask price.
The nominal value less estimated credit adjustments of trade receivables and payables are assumed to
approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting
the future contractual cash flows at the current market interest rate that is available to the Group for similar financial
instruments.
(u)
Issued and Unissued Capital
Ordinary Shares are classified as equity. Issued and paid up capital is recognised at the fair value of the
consideration received by the Company.
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.
32
Salt Lake Potash Limited ANNUAL REPORT 2016
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(v)
Foreign Currencies
(i)
Functional and presentation currency
The functional currency of each of the Group's entities is measured using the currency of the primary economic
environment in which that entity operates. The consolidated financial statements are presented in Australian dollars
which is the Company's functional and presentation currency.
(ii)
Transactions and balances
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the
date of the transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-
monetary items measured at historical cost continue to be carried at the exchange rate at the date of the transaction.
Non-monetary items measured at fair value are reported at the exchange rate at the date when fair values were
determined.
Exchange differences arising on the translation of monetary items are recognised in the Statement Profit or Loss
and other Comprehensive Income, except where deferred in equity as a qualifying cash flow or net investment
hedge.
Exchange differences arising on the translation of non-monetary items are recognised directly in equity to the extent
that the gain or loss is directly recognised in equity, otherwise the exchange difference is recognised in the other
Comprehensive Income.
(iii)
Group companies
The financial results and position of foreign operations whose functional currency is different from the Group's
presentation currency are translated as follows:
assets and liabilities are translated at year-end exchange rates prevailing at that reporting date;
income and expenses are translated at average exchange rates for the period; and
items of equity are translated at the historical exchange rates prevailing at the date of the transaction.
Exchange differences arising on translation of foreign operations are transferred directly to the group's foreign
currency translation reserve in the statement of financial position. These differences are recognised in the
Statement of Profit or Loss and other Comprehensive Income in the period in which the operation is disposed.
(w) Share-Based Payments
Equity-settled share-based payments are provided to officers, employees, consultants and other advisors. These
share-based payments are measured at the fair value of the equity instrument at the grant date. Fair value is
determined using the Binomial option pricing model. Further details on how the fair value of equity-settled share
based payments has been determined can be found in Note 21.
The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on
the Company's estimate of equity instruments that will eventually vest. At each reporting date, the Company revises
its estimate of the number of equity instruments expected to vest. The impact of the revision of the original
estimates, if any, is recognised in profit or loss over the remaining vesting period, with a corresponding adjustment
to the share based payments reserve.
Equity-settled share-based payments may also be provided as consideration for the acquisition of assets. Where
Ordinary Shares are issued, the transaction is recorded at fair value based on the quoted price of the Ordinary
Shares at the date of issue. The acquisition is then recorded as an asset or expensed in accordance with accounting
standards.
Salt Lake Potash Limited ANNUAL REPORT 2016
33
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(Continued)
(x) Use and Revision of Accounting Estimates, Judgements and Assumptions
The preparation of the financial report requires management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.
Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if
the revision affects only that period, or in the period of the revision and future periods if the revision affects both
current and future periods.
In particular, information about significant areas of estimation uncertainty and critical judgements in applying
accounting policies that have the most significant effect on the amounts recognised in the financial statements are
described in the following notes:
Exploration and Evaluation Expenditure (Note 10)
Share-Based Payments (Note 21)
34
Salt Lake Potash Limited ANNUAL REPORT 2016
2.
SEGMENT INFORMATION
Management has determined that the operating segments are based on reports reviewed by the chief operating
decision maker, the Chief Executive Officer, which are used to monitor performance and make strategic decisions.
The business is considered from a geographic perspective.
Management assesses the performance of the operating segments based on a measure of contribution. This
measure excludes items such as the effects of equity settled share based payments, unrealised gains and losses
on financial instruments, interest income, corporate expenses, and other centralised expenses, which are not
attributable to segments.
For the year ended 30 June 2016
United
States of
America
Australia
Potash
Total
Segment
Unallocated/
Elimination1
Consolidated
$
$
$
$
$
Results
Segment Result
(323,748)
(3,539,522)
(3,863,270)
(781,758)
(4,645,028)
Loss before tax for the year
(323,748)
(3,539,522)
(3,863,270)
(781,758)
(4,645,028)
Comprehensive loss for the year
(308,875)
(3,539,522)
(3,848,397)
(781,758)
(4,630,155)
Segment assets 1
15,661
2,396,261
2,411,922
7,604,957
10,016,879
Segment liabilities
3,150
616,177
619,327
Other Segment Information
Depreciation and amortisation
Impairment of exploration and
evaluation asset
-
-
Impairment of asset held for sale
(293,462)
15,469
-
-
-
-
-
Note:
1 Cash and cash equivalents held by the Parent entity is classified in Unallocated/Elimination.
-
-
-
-
619,327
15,469
-
(293,462)
Salt Lake Potash Limited ANNUAL REPORT 2016
35
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36
Salt Lake Potash Limited ANNUAL REPORT 2016
I
I
S
T
N
E
M
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T
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A
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(
2.
SEGMENT INFORMATION (Continued)
Reconciliation of reportable segment loss
Total loss for reportable segments
(3,762,981)
(630,890)
30 June 2016
$
30 June 2015
$
Less corporate revenues/ (expenses)
Eliminate inter segment income/(expenses)
Consolidated loss before income tax
Elimination of discontinued operations before income tax
Total loss from continuing operations
3.
DISCONTINUED OPERATIONS
Loss attributable to the discontinued operation
Income
Expenses
Loss on disposal of assets
Write off of non-recoverable deposits and other receivables
Loss of non-controlling interest
Impairment of exploration expense
Result from discontinued operations before tax
Income tax (expense)/benefit
Result from discontinued operations, net of tax
Basic and diluted loss per share – discontinued operations (cents
per share)1
Cash flows from discontinued operations
Net cash from (used) in operating activities
Net cash from (used) in investing activities
Net cash from (used) in discontinued operations
(882,047)
(526,084)
-
-
(4,645,028)
(1,348,856)
-
(4,645,028)
619,342
(729,514)
30 June 2016
$
30 June 2015
$
-
-
-
-
-
-
-
-
-
-
-
(294,772)
(32,872)
(215,732)
(75,966)
-
(619,342)
-
(619,342)
(1.53)
30 June 2016
$
30 June 2015
$
-
-
-
(405,439)
52,627
(352,812)
Salt Lake Potash Limited ANNUAL REPORT 2016
37
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(Continued)
4.
FINANCE INCOME
Interest income
5.
EXPENSES
Note
2016
$
72,946
72,946
2015
$
28,337
28,337
Note
2016
$
2015
$
(a)
Depreciation included in statement of comprehensive
income
Depreciation of plant and equipment
9
15,469
-
(b)
Employee benefits expense (including KMP)
Salaries and wages
Superannuation expense
Share-based payment expense
Total employment expenses included in profit or loss
21
504,684
45,057
163,448
713,189
139,960
9,372
-
149,332
38
Salt Lake Potash Limited ANNUAL REPORT 2016
6.
INCOME TAX
(a)
Recognised in the statement of comprehensive income
Current income tax
Current income tax benefit in respect of the current year
Deferred income tax
Deferred income tax on discontinued operations
Income tax expense reported in the statement of Profit or Loss and other
Comprehensive income
2016
$
-
-
-
*Restated
2015
$
-
-
-
(b)
Reconciliation between tax expense and accounting loss
before income tax
Accounting loss before income tax
(4,645,028)
(1,348,856)
At the domestic income tax rate of 30% (2015: 30%)
Expenditure not allowable for income tax purposes
Deferred tax assets not brought to account
Effect of different tax rates of subsidiaries operating in other
jurisdictions
Income tax expense/(benefit) reported in the statement of Profit or Loss
and other Comprehensive income
(1,393,509)
(404,657)
60,959
1,332,550
61,062
343,595
-
-
-
-
Note:
1 Relates to the discontinued operations and has been included in the net loss from discontinued operations per note 3.
Salt Lake Potash Limited ANNUAL REPORT 2016
39
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(Continued)
(c)
Deferred Tax Assets and Liabilities
Deferred income tax at 30 June relates to the following:
Deferred Tax Liabilities
Accrued income
Exploration and evaluation assets
Deferred tax assets used to offset deferred tax liabilities
Deferred Tax Assets
Accrued expenditure
Capital allowances
Tax losses available for offset against future taxable income
Deferred tax assets used to offset deferred tax liabilities
Deferred tax assets not brought to account
2016
$
2015
$
3,949
-
(3,949)
-
1,966
-
(1,966)
-
32,613
167,121
15,744
128,102
4,525,636
3,547,951
(3,949)
(1,966)
(4,721,421)
(3,689,832)
-
-
The benefit of deferred tax assets not brought to account will only be brought to account if:
future assessable income is derived of a nature and of an amount sufficient to enable the benefit to be
realised;
the conditions for deductibility imposed by tax legislation continue to be complied with; and
no changes in tax legislation adversely affect the Group in realising the benefit.
Deferred tax assets have not been recognised in respect to tax losses because it is not probable that future taxable
profit will be available against which the Group can utilise the benefits there from.
(d)
Tax Consolidation
The Company and its wholly-owned Australian resident entities have formed a tax consolidated group and are
therefore taxed as a single entity. The head entity within the tax consolidated group is Salt Lake Potash Limited.
40
Salt Lake Potash Limited ANNUAL REPORT 2016
7.
CASH AND CASH EQUIVALENTS
Cash on hand
Deposit on call
8.
TRADE AND OTHER RECEIVABLES
Accrued interest
GST and other receivables
Other assets
9.
PROPERTY, PLANT AND EQUIPMENT
(a)
Plant and Equipment
At cost
Accumulated depreciation and impairment
Carrying amount at end of year, net of accumulated
depreciation and impairment
(b)
Reconciliation
Carrying amount at beginning of year, net of accumulated
depreciation and impairment
Additions
Acquired on acquisition of controlled entity (note 17)
Disposals/write-offs during the year
Depreciation charge
Carrying amount at end of year, net of accumulated
depreciation and impairment
2016
$
2015
$
1,478,285
6,020,000
7,498,285
3,172,363
-
3,172,363
2016
$
13,162
99,713
13,708
126,583
2016
$
130,744
(15,469)
2015
$
6,551
31,896
16,925
55,372
2015
$
10,288
-
115,275
10,288
10,288
120,456
-
-
(15,469)
46,305
-
10,288
(46,305)
-
115,275
10,288
Salt Lake Potash Limited ANNUAL REPORT 2016
41
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(Continued)
10.
EXPLORATION AND EVALUATION EXPENDITURE
(a)
Areas of Interest
SOP Project
Golden Eagle Uranium Project
Carrying amount at end of year, net of impairment1
(b)
Reconciliation
Carrying amount at start of year
Acquisition of SOP Project
Impairment losses 2
Exchange differences on translation of foreign operations
Carrying amount at end of year net of impairment 1
Note
17
2016
$
Restated
2015
$
2,276,736
-
2,276,736
279,179
2,276,736
2,555,915
2,555,915
-
(293,462)
14,283
226,655
2,276,736
-
52,524
2,276,736
2,555,915
Notes:
1 The ultimate recoupment of costs carried forward for exploration and evaluation is dependent on the successful development
and commercial exploitation or sale of the respective areas of interest.
2 Impairment of the carrying value of Golden Eagle Uranium. The Company has completed its initial review of the project. Based
on the available information, current economic conditions and the price of uranium it is not viable for the Company to undertake
any further exploration activities at this time and accordingly, the project has been impaired to nil.
SOP Project
Salt Lake holds a number of large salt lake brine projects (Projects) in Western Australia, South Australia and the
Northern Territory, each having potential to produce highly sought after Sulphate of Potash (SOP) for domestic and
international fertiliser markets.
Golden Eagle Uranium Project
The Golden Eagle Uranium and Vanadium Project holds nine U.S. Department of Energy (DOE) Uranium/Vanadium
Mining Leases, covering 22.7 km2 located in the Uravan Mineral Belt, Colorado USA.
11.
TRADE AND OTHER PAYABLES
Trade creditors
Accrued expenses
12.
PROVISIONS
Statutory employee benefits
42
Salt Lake Potash Limited ANNUAL REPORT 2016
2016
$
377,775
229,840
607,615
2016
$
11,712
11,712
2015
$
198,719
52,477
251,196
2015
$
-
-
13. CONTRIBUTED EQUITY
Share Capital
133,827,596 (30 June 2015: 105,802,596) Ordinary Shares
30 June 2016
$
30 June 2015
$
106,761,669
106,761,669
98,440,152
98,440,152
(a) Movements in Ordinary Shares During the Past Two Years Were as Follows:
01-Jul-15
09-Jul-15
31-Mar-16
4-Apr-16
7-Jun-16
Opening Balance
Share issue 1
Share placement
Share placement
Share placement
Jul-15 to Jun-16
Share issue costs
30-Jun-16
Closing balance
01-Jul-14
1-Oct-14
8-Dec-14
9-Dec-14
11-Feb-15
27-Feb-15
19-Mar-15
12-Jun-15
Opening Balance
Share issue 1
Consolidation of Capital 2
Share issue to creditors 3
Entitlement issue
Entitlement issue
Entitlement issue
Acquisition of SOP Project (note 17) 4
Jul-14 to Jun-15
Share issue costs
30-Jun-15
Closing balance
Number of
Ordinary
Shares
Issue
Price
$
$
105,802,596
-
98,440,152
250,000
0.1405
35,124
16,250,000
9,925,000
1,600,000
-
133,827,596
0.32
0.32
0.32
5,200,000
3,176,000
512,000
-
(601,607)
- 106,761,669
410,240,284
-
92,500,223
3,000,000
0.006
18,000
(399,466,518)
1,360,000
19,158,525
28,500,000
28,010,305
-
0.05
0.05
0.05
0.05
-
68,000
957,926
1,425,000
1,400,515
15,000,000
0.144
2,160,000
-
105,802,596
-
-
(89,512)
98,440,152
Notes:
1 Shares issued to GMP Securities Europe LLP in lieu of fees for broking services provided.
2 The Company completed a 1 for 30 Consolidation of capital.
3 As approved by Shareholders at the Company’s Annual General Meeting on 25 November 2014, shares were issued to non-
related party creditors at $0.05 per Share.
4 The issue price was determined as $0.144 which was the 10 day volume weighted average price of the Company’s shares
prior to the date of issue, 12 June 2015.
Salt Lake Potash Limited ANNUAL REPORT 2016
43
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(Continued)
(b)
Rights Attaching to Ordinary Shares:
The rights attaching to fully paid Ordinary Shares (Ordinary Shares) arise from a combination of the Company's
Constitution, statute and general law.
Ordinary Shares issued following the exercise of Unlisted Options in accordance with Note 14(c) or Performance
Shares in accordance with Note 14(e) will rank equally in all respects with the Company's existing Ordinary Shares.
Copies of the Company's Constitution are available for inspection during business hours at the Company's
registered office. The clauses of the Constitution contain the internal rules of the Company and define matters such
as the rights, duties and powers of its shareholders and directors, including provisions to the following effect (when
read in conjunction with the Corporations Act 2001 or Listing Rules).
(i)
Shares
The issue of shares in the capital of the Company and options over unissued shares by the Company is under the
control of the Directors, subject to the Corporations Act 2001, ASX Listing Rules and any rights attached to any
special class of shares.
(ii) Meetings of Members
Directors may call a meeting of members whenever they think fit. Members may call a meeting as provided by the
Corporations Act 2001. The Constitution contains provisions prescribing the content requirements of notices of
meetings of members and all members are entitled to a notice of meeting. A meeting may be held in two or more
places linked together by audio-visual communication devices. A quorum for a meeting of members is two
shareholders.
The Company holds annual general meetings in accordance with the Corporations Act 2001 and the Listing Rules.
(iii)
Voting
Subject to any rights or restrictions at the time being attached to any shares or class of shares of the Company,
each member of the Company is entitled to receive notice of, attend and vote at a general meeting. Resolutions of
members will be decided by a show of hands unless a poll is demanded. On a show of hands each eligible voter
present has one vote. However, where a person present at a general meeting represents personally or by proxy,
attorney or representative more than one member, on a show of hands the person is entitled to one vote only
despite the number of members the person represents.
On a poll each eligible member has one vote for each fully paid share held and a fraction of a vote for each partly
paid share determined by the amount paid up on that share.
(iv) Changes to the Constitution
The Company's Constitution can only be amended by a special resolution passed by at least three quarters of the
members present and voting at a general meeting of the Company. At least 28 days' written notice specifying the
intention to propose the resolution as a special resolution must be given.
(v)
Listing Rules
Provided the Company remains admitted to the Official List, then despite anything in its Constitution, no act may
be done that is prohibited by the Listing Rules, and authority is given for acts required to be done by the Listing
Rules. The Company's Constitution will be deemed to comply with the Listing Rules as amended from time to time.
44
Salt Lake Potash Limited ANNUAL REPORT 2016
14. RESERVES
Share-based payments reserve
Foreign currency translation reserve
(a)
(i)
Nature and Purpose of Reserves
Share-based payments reserve
Note
14(b)
2016
$
240,848
454,468
695,316
2015
$
77,400
439,595
516,995
The share-based payments reserve is used to record the fair value of Unlisted Options, Performance Rights and
Performance Shares issued by the Group.
(ii)
Foreign Currency Translation Reserve
Exchange differences arising on translation of foreign controlled entities are taken to the foreign currency translation
reserve, as described in Note 1(v). The reserve is recognised in the Statement of Profit or Loss and other
Comprehensive Income when the net investment is disposed of.
(b) Movements in the share-based payments reserve during the past two years were as follows:
01-Jul-15
03-Jun-16
Opening Balance
Issue of Incentive Options
Jul-15 to Jun-16 Share based payments expense
30-Jun-16
Closing balance
22,500,000
2,705,443
Number of
Performance
Shares
Number of
Unlisted
Options
$
22,500,000
205,443
77,400
-
-
2,500,000
-
-
163,448
240,848
01-Jul-14
22-Nov-14
8-Dec-14
12-Jun-15
30-Jun-15
30-Jun-15
Opening Balance
Unlisted Options expired
Consolidation of Capital1
-
-
-
12,963,514
1,284,248
(4,800,000)
(934,931)
(7,891,405)
-
Issue of Performance Shares (note 14 (d))
22,500,000
-
77,400
Unlisted Options expired
Closing balance
-
(66,666)
(349,317)
22,500,000
205,443
77,400
Notes:
1 As part of the Company’s 1 for 30 consolidation of capital, the numbers of Options on issue were consolidated on a 1 for 30
basis, with the exercise price of the Options increasing in inverse proportion to the consolidation ratio.
Salt Lake Potash Limited ANNUAL REPORT 2016
45
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(Continued)
(c)
Terms and Conditions of Unlisted Options
The Unlisted Options are granted based upon the following terms and conditions:
Each Unlisted Option entitles the holder to the right to subscribe for one Ordinary Share upon the exercise of
each Unlisted Option;
The Unlisted Options outstanding at the end of the financial year have the following exercise prices and expiry
dates:
57,370 Unlisted Options exercisable at $3.60 each on or before 30 November 2016;
57,370 Unlisted Options exercisable at $4.80 each on or before 30 November 2016;
57,370 Unlisted Options exercisable at $6.00 each on or before 30 November 2016;
33,333 Unlisted Options exercisable at $2.73 each on or before 30 November 2016;
750,000 Unlisted Options exercisable at $0.40 each on or before 29 April 2019;
750,000 Unlisted Options exercisable at $0.50 each on or before 29 April 2020; and
1,000,000 Unlisted Options exercisable at $0.60 each on or before 29 April 2021.
The Unlisted Options are exercisable at any time prior to the Expiry Date, subject to vesting conditions being
satisfied (if applicable);
Ordinary Shares issued on exercise of the Unlisted Options rank equally with the then Ordinary Shares of the
Company;
Application will be made by the Company to ASX for official quotation of the Ordinary Shares issued upon the
exercise of the Unlisted Options;
If there is any reconstruction of the issued share capital of the Company, the rights of the Unlisted Option
holders may be varied to comply with the ASX Listing Rules which apply to the reconstruction at the time of
the reconstruction; and
No application for quotation of the Unlisted Options will be made by the Company.
(d)
Fair Value of Performance Shares
Date
1 Jul 15
30 Jun 16
Details
Opening Balance
Closing Balance
1 Jul 14
12 Jun 15
12 Jun 15
12 Jun 15
30 Jun 15
Opening Balance
Issue of Performance
Shares 2
Issue of Performance
Shares 3
Issue of Performance
Shares 4
Closing Balance
Number of
‘Class A’
Performance
Shares
5,000,000
5,000,000
Number of
‘Class B’
Performance
Shares
7,500,000
7,500,000
Number of
‘Class C’
Performance
Shares
10,000,000
10,000,000
-
5,000,000
-
-
-
-
7,500,000
-
-
-
Fair
Value 1
$
-
-
-
0.0072
$
77,400
77,400
-
36,000
0.0036
27,000
-
10,000,000
0.0014
14,400
5,000,000
7,500,000
10,000,000
-
77,400
Notes:
1. The grant date fair value of the Performance Shares has been determined with reference to the share price of Salt Lake
Potash Limited at the date of acquisition of ASLP adjusted for the probability of achieving the milestones for the Class A, B
and C Performance Shares.
2. The fair value of the milestone shares at the acquisition date has been determined to be $36,000, based on Management’s
assessment of the probability that the milestone for the Class A shares (refer to Note 14(e) for terms) will be met.
3. The fair value of the milestone shares at the acquisition date has been determined to be $27,000, based on Management’s
assessment of the probability that the milestone for the Class B shares (refer to Note 14(e) for terms) will be met.
4. The fair value of the milestone shares at the acquisition date has been determined to be $14,400, based on Management’s
assessment of the probability that the milestone for the Class C shares (refer to Note 14(e) for terms) will be met.
46
Salt Lake Potash Limited ANNUAL REPORT 2016
(e)
Terms and Conditions of Performance Shares
The Convertible Performance Shares (Performance Shares) are granted as part of the consideration to acquire
Australia Salt Lake Potash Pty Ltd were granted on the following terms and conditions:
Each Convertible Performance Share will convert into one ordinary Share upon the satisfaction, prior to the
Expiry Date, of the respective Milestone;
‐ Class A Milestone: The announcement by the Company to ASX of the results of a positive Pre-feasibility
Study on all or part of the Project Licences, within three years from the date of issue;
‐ Class B Milestone: The announcement by the Company to ASX of the results of a positive Definitive
Feasibility Study on all or part of the Project Licences, within four years from the date of issue; and
‐ Class C Milestone: The commencement of construction activities for a mining operation on all or part of
the Project Licences (including the commencement of ground breaking for the construction of infrastructure
and/or processing facilities) following a final investment decision by the Board as per the project
development schedule and budget in accordance with the Definitive Feasibility Study, within five years
from the date of issue.
Expiry Date means:
‐
‐
‐
in relation to the Class A Convertible Performance Shares, 3 years from the date of issue;
in relation to the Class B Convertible Performance Shares, 4 years from the date of issue; and
in relation to the Class C Convertible Performance Shares, 5 years from the date of issue;
If the Milestone for a Performance Share is not met by the Expiry Date, the total number of the relevant class
of Performance Shares will convert into one Ordinary Share per holder;
The Company shall allot and issue Ordinary Shares immediately upon conversion of the Performance Shares
for no consideration;
Ordinary Shares issued on conversion of the Performance Shares rank equally with the then Ordinary Shares
of the Company;
In the event of any reconstruction, consolidation or division into (respectively) a lesser or greater number of
securities of the Ordinary Shares, the Performance Shares shall be reconstructed, consolidated or divided in
the same proportion as the Ordinary Shares are reconstructed, consolidated or divided and, in any event, in
a manner which will not result in any additional benefits being conferred on the Performance Shareholders
which are not conferred on the Ordinary Shareholders;
The Performance Shareholders shall have no right to vote, subject to the Corporations Act;
No application for quotation of the Performance Shares will be made by the Company; and
The Performance Shares are not transferable.
Salt Lake Potash Limited ANNUAL REPORT 2016
47
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(Continued)
15.
STATEMENT OF CASH FLOWS
(a)
Reconciliation of the Loss after Tax to the Net Cash Flows from Operations
Net loss for the year
Adjustment for non-cash income and expense items
Depreciation of plant and equipment
Share based payment expense
Unrealised foreign exchange (loss)/ gain
Impairment losses
Net (gain)/loss on disposal of property, plant and equipment, prospects
Shares issued in lieu
Change in operating assets and liabilities
(Increase)/Decrease in trade and other receivables
Increase in trade and other payables
Increase/(Decrease) in provisions
2016
$
*Restated
2015
$
(4,645,028)
(1,348,856)
15,469
163,448
448
293,462
-
35,124
(71,211)
356,419
11,712
-
-
(63,164)
32,872
215,732
‐
92,655
87,507
(16,519)
Net cash outflow from operating activities
(3,840,157)
(922,348)
(b)
Reconciliation of Cash
Cash at bank and on hand
Deposits on call
(c)
Non-cash Financing and Investing Activities
Exploration and evaluation assets (with shares)
17
1,478,285
6,020,000
7,498,285
3,172,363
-
3,172,363
2016
$
-
-
2015
$
2,237,400
2,237,400
30 June 2016
During the year ended 30 June 2016, the Company issued 250,000 ordinary shares to GMP Securities Europe LLP
in lieu of fees. The fair value of the issued ordinary shares was $35,124 at issue date.
30 June 2015
During the year ended 30 June 2015, the Company issued 3,000,000 ordinary shares (pre-Consolidation basis) to
GMP Securities Europe LLP in lieu of fees for the period 01 April 2014 to 31 December 2014 and 1,360,000
ordinary shares (post- Consolidation basis) to trade creditors, as approved by Shareholders at an issue price of
A$0.05. The fair value of the issued ordinary shares was $86,000 at issue date.
48
Salt Lake Potash Limited ANNUAL REPORT 2016
16.
EARNINGS PER SHARE
The weighted average number of ordinary shares used in calculating basic and diluted earnings per share has been
retrospectively adjusted in the prior period to reflect the impact of the Consolidation.
The following reflects the income and share data used in the
calculations of basic and diluted earnings per share:
Loss from continuing operations attributable to the owners of
the Company used in calculating basic and diluted earnings
per share – continuing operations
Net loss attributable to the owners of the Company from
discontinued operations (net of income tax)
Net loss attributable to the owners of the Company used in
calculating basic and diluted earnings per share
30 June 2016
$
Re-presented
30 June 2015
$
(4,645,028)
(729,514)
-
(619,342)
(4,645,028)
(1,348,856)
Number of Shares
2016
Number of Shares
2015
Weighted average number of ordinary shares used in
calculating basic and diluted earnings per share
112,565,903
40,361,103
(a)
Non-Dilutive Securities
As at balance date, 2,705,443 Unlisted Options (which represent 2,705,443 potential Ordinary Shares) and
22,500,000 Performance Shares (which represent 22,500,000 potential Ordinary Shares) were considered non-
dilutive as they would decrease the loss per share.
(b)
Conversions, Calls, Subscriptions or Issues after 30 June 2016
Since 30 June 2016, the Company has issued the following securities:
180,000 Ordinary Shares were issued, refer to note 26.
Other than as outlined above, there have been no other conversions to, calls of, or subscriptions for Ordinary Shares
or issues of potential Ordinary Shares since the reporting date and before the completion of this financial report.
Salt Lake Potash Limited ANNUAL REPORT 2016
49
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(Continued)
17. ACQUISITION OF CONTROLLED ENTITY
On 12 June 2015, the Company completed the acquisition of Australia Salt Lake Potash Pty Ltd (ASLP) which
holds a number of sulphate of potash (SOP) brine projects. The transaction was not deemed to be a Business
Combination in accordance with AASB 3 Business Combinations, thus it has been accounted for as an asset
acquisition. The consideration for the acquisition meets the definition of, and has been accounted for as a share
based payment transaction.
The total cost of the acquisition was $2,237,400 and was comprised of an issue of equity instruments as follows:
Exploration and Evaluation Assets
Cash & Cash Equivalents
Trade and Other Receivables
Property, Plant & Equipment
Trade & Other Payables
Net assets acquired
Costs of the acquisition:
Fully Paid Ordinary Shares (15,000,000)
Performance Shares: Class A (5,000,000)
Performance Shares: Class B (7,500,000)
Performance Shares: Class C (10,000,000)
Net cash outflow on acquisition:
Loan provided pre-acquisition
Cash acquired on acquisition
Fair values on
acquisition
$
2,276,736
46,454
3,922
10,288
(100,000)
2,237,400
2,160,000
36,000
27,000
14,400
2,237,400
(100,000)
46,454
(53,546)
14(d)
14(d)
14(d)
50
Salt Lake Potash Limited ANNUAL REPORT 2016
18. RELATED PARTIES
(a)
Subsidiaries
Name
Ultimate parent entity:
Salt Lake Potash Limited
Subsidiaries of Salt Lake Potash Limited
Australia Salt Lake Potash Pty Ltd (ASLP)(i)
Subsidiary of ASLP
Piper Preston Pty Ltd (i)
Peak Coal Pty Ltd
Wildhorse UCG Kft
Wildhorse Energy Hungary Kft
Wildhorse Resources Kft
Mecsek Alternatív Szén Energia Kft
Wildhorse GE Holding Inc
Subsidiary of Salt Lake GE Holdings Inc
Golden Eagle Uranium LLC
Subsidiary of Wildhorse Energy Hungary Kft
Magyar Urán Zrt
(i) Refer to note 17.
Country of
Incorporation
% Equity Interest
2016
%
2015
%
Australia
Australia
Australia
Australia
Hungary
Hungary
Hungary
Hungary
USA
USA
Hungary
100
100
100
-
-
-
-
100
100
-
100
100
100
100
100
100
100
100
100
97
(ii) During the year, the Company disposed of its Hungarian operation. The holding companies were dominant
and were fully impaired.
(b)
Ultimate Parent
Salt Lake Potash Limited is the ultimate parent of the Group.
(c)
Transactions with Related Parties
Balances and transactions between the Company and its subsidiaries, which are related parties of the Company,
have been eliminated on consolidation and are not disclosed in this note.
Transactions with Key Management Personnel, including remuneration, are included at Note 19.
Salt Lake Potash Limited ANNUAL REPORT 2016
51
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(Continued)
19. KEY MANAGEMENT PERSONNEL
(a)
Details of Key Management Personnel
The KMP of the Group during or since the end of the financial year were as follows:
Directors
Mr Ian Middlemas
Mr Matthew Syme
Mr Jason Baverstock
Mr Mark Hohnen
Mr Mark Pearce
Other Current KMP
Mr Sam Cordin
Chairman
Chief Executive Officer (CEO) (appointed CEO 29 April 2016)
Executive Director
Non-Executive Director
Non-Executive Director
Chief Financial Officer and Company Secretary
Unless otherwise disclosed, the KMP held their position from 1 July 2015 until the date of this report.
Short-term employee benefits
Post-employment benefits
Share-based payments
Total compensation
(b)
Loans from Key Management Personnel
2016
$
395,834
22,737
163,448
582,019
2015
$
75,751
1,979
-
77,730
No loans were provided to or received from Key Management Personnel during the year ended 30 June 2016
(2015: Nil).
(c)
Other Transactions
Apollo Group Pty Ltd, a Company of which Mr Mark Pearce is a Director and beneficial shareholder, was paid or is
payable $210,000 (2015: $64,000) for the provision of serviced office facilities, company secretarial, corporate and
administration services for the period. The amount is based on a monthly retainer due and payable in advance, with
no fixed term, and is able to be terminated by either party with one month’s notice. At 30 June 2016, $20,000 (2015:
$64,000) was included as a current liability in the Statement of Financial Position.
52
Salt Lake Potash Limited ANNUAL REPORT 2016
20.
PARENT ENTITY DISCLOSURES
(a)
Financial Position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Total liabilities
Equity
Contributed equity
Accumulated losses
Reserves
Total equity
(b)
Financial Performance
Profit/(loss) for the year
Other comprehensive income/(loss)
Total comprehensive income/(loss)
(c)
Other information
2016
$
*Restated
2015
$
7,607,069
2,406,661
10,013,730
3,193,145
2,591,009
5,784,154
616,178
616,178
241,412
241,412
106,761,669
98,440,152
(97,604,964)
(92,974,810)
240,847
9,397,552
77,400
5,542,742
(4,956,874)
(1,186,779)
-
-
(4,956,874)
(1,186,779)
The Company has not entered into any guarantees in relation to its subsidiaries.
Refer to Note 24 for details of contingent assets and liabilities.
21.
SHARE-BASED PAYMENTS
(a)
Recognised Share-based Payment Expense
From time to time, the Group provides incentive Unlisted Options and Performance Rights to officers, employees,
consultants and other key advisors as part of remuneration and incentive arrangements. The number of options or
rights granted, and the terms of the options or rights granted are determined by the Board. Shareholder approval is
sought where required.
In the current year, the Company has also granted shares in lieu of payments to trade creditors for outstanding
balances.
Salt Lake Potash Limited ANNUAL REPORT 2016
53
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(Continued)
During the past two years, the following equity-settled share-based payments have been recognised:
Expenses/ (benefit) arising from equity-settled share-based payment
transactions relating incentive options
Expenses/ (benefit) arising from equity-settled share-based payment
transactions to creditors and consultants
Share issue costs settled by equity-settled share-based payment
transactions
Total share-based payments recognised during the year
2016
$
2015
$
163,448
-
35,124
86,000
-
198,572
(3,551)
82,449
(b)
Summary of Unlisted Options and Performance Rights Granted as Share-based Payments
The following Incentive Options were granted as share-based payments during the past two years:
Option
Series
Issuing Entity
Security
Type
Number
Grant
Date
Expiry
Date
Exercise
Price
Grant Date
Fair Value
Series 1
Salt Lake Potash Limited
Options
750,000
03-Jun-16
29-Apr-19
Series 2
Salt Lake Potash Limited
Options
750,000
03-Jun-16
29-Apr-20
Series 3
Salt Lake Potash Limited
Options
1,000,000
03-Jun-16
29-Apr-21
$
0.40
0.50
0.60
$
0.190
0.204
0.217
The following table illustrates the number and weighted average exercise prices (WAEP) of Unlisted Options
granted as share-based payments at the beginning and end of the financial year:
Unlisted Options
Outstanding at beginning of year
2016
Number
205,443
Granted by the Company during the year
2,500,000
2016
WAEP
$4.46
$0.51
2015
Number
432,117
-
2015
WAEP
$9.90
-
Forfeited/cancelled/lapsed/expired
-
-
(226,674)
$15.06
Outstanding at end of year
Exercisable at end of year
2,705,443
955,443
$0.81
$0.81
205,443
205,443
$4.46
$4.46
Notes:
As part of the Company’s 1 for 30 consolidation of capital in December 2015, the numbers of Options on issue were consolidated
on a 1 for 30 basis, with the exercise price of the Options increasing in inverse proportion to the consolidation ratio.
The outstanding balance of options as at 30 June 2016 is represented by:
57,370 Unlisted Options exercisable at $3.60 each on or before 30 November 2016;
57,370 Unlisted Options exercisable at $4.80 each on or before 30 November 2016;
57,370 Unlisted Options exercisable at $6.00 each on or before 30 November 2016;
33,333 Unlisted Options exercisable at $2.73 each on or before 30 November 2016;
750,000 Unlisted Options exercisable at $0.40 each on or before 29 April 2019;
750,000 Unlisted Options exercisable at $0.50 each on or before 29 April 2020; and
1,000,000 Unlisted Options exercisable at $0.60 each on or before 29 April 2021.
54
Salt Lake Potash Limited ANNUAL REPORT 2016
21.
SHARE-BASED PAYMENTS (Continued)
(c) Weighted Average Remaining Contractual Life
At 30 June 2016, the weighted average remaining contractual life of Unlisted Options on issue that had been granted
as share-based payments was 3.66 years (2015: 1.42 years).
(d)
Range of Exercise Prices
At 30 June 2016, the range of exercise prices of Unlisted Options on issue that had been granted as share-based
payments was $0.40 to $6.00 (2015: $$2.73 to $6.00 (post Consolidation basis)).
(e) Weighted Average Fair Value
The weighted average fair value of Incentive Options granted as share-based payments by the Group during the
year ended 30 June 2016 was $0.205 (2015: Nil).
(f)
Option Pricing Models
The fair value of the equity-settled share options and performance rights granted is estimated as at the date of grant
using the Binomial option valuation model taking into account the terms and conditions upon which the options were
granted.
The table below lists the inputs to the valuation model used for share options granted by the Group in the current
year:
Inputs
Exercise price
Grant date share price
Dividend yield 1
Volatility 2
Risk-free interest rate
Grant date
Expiry date
Expected life of option 3
Fair value at grant date
Series 1
Series 2
Series 3
0.40
0.330
-
100%
1.59%
03-Jun-16
29-Apr-19
2.90
0.190
0.50
0.330
-
100%
1.59%
03-Jun-16
29-Apr-20
3.91
0.204
0.60
0.330
-
100%
1.77%
03-Jun-16
29-Apr-21
4.91
0.217
Notes:
1 The dividend yield reflects the assumption that the current dividend payout will remain unchanged.
2 The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may not
necessarily be the actual outcome.
3 The expected life of the options is based on the expiry date of the options as there is limited track record of the early exercise
of options.
22. AUDITORS’ REMUNERATION
The auditor of Salt Lake Potash Limited is Ernst and Young (2015:KPMG).
Amounts received or due and receivable by Ernst and Young (2015:KPMG)
for:
an audit or review of the financial report of the entity and any other
entity in the consolidated group
tax and other advisory services
2016
$
2015
$
25,000
21,773
46,773
27,290
-
27,290
Salt Lake Potash Limited ANNUAL REPORT 2016
55
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(Continued)
23.
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
(a)
Overview
The Group's principal financial instruments comprise receivables, payables, cash and short-term deposits. The
main risks arising from the Group's financial instruments are credit risk, liquidity risk, interest rate risk, equity price
risk and foreign currency risk.
This note presents information about the Group's exposure to each of the above risks, its objectives, policies and
processes for measuring and managing risk, and the management of capital. Other than as disclosed, there have
been no significant changes since the previous financial year to the exposure or management of these risks.
The Group manages its exposure to key financial risks in accordance with the Group's financial risk management
policy. Key risks are monitored and reviewed as circumstances change (e.g. acquisition of a new project) and
policies are revised as required. The overall objective of the Group's financial risk management policy is to support
the delivery of the Group's financial targets whilst protecting future financial security.
Given the nature and size of the business and uncertainty as to the timing and amount of cash inflows and outflows,
the Group does not enter into derivative transactions to mitigate the financial risks. In addition, the Group's policy
is that no trading in financial instruments shall be undertaken for the purposes of making speculative gains. As the
Group's operations change, the Directors will review this policy periodically going forward.
The Board of Directors has overall responsibility for the establishment and oversight of the risk management
framework. The Board reviews and agrees policies for managing the Group's financial risks as summarised below.
(b)
Credit Risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to
meet its contractual obligations. This arises principally from cash and cash equivalents and trade and other
receivables.
There are no significant concentrations of credit risk within the Group. The carrying amount of the Group's financial
assets represents the maximum credit risk exposure, as represented below:
Financial assets
Cash and cash equivalents
Trade and other receivables (excluding VAT, GST and prepayments)
Deposits held
2016
$
1,478,285
126,583
6,020,000
7,624,868
2015
$
3,172,363
23,476
-
3,195,839
With respect to credit risk arising from cash and cash equivalents, the Group's exposure to credit risk arises from
default of the counter party, with a maximum exposure equal to the carrying amount of these instruments. Where
possible, the Group invests its cash and cash equivalents with banks that are rated the equivalent of investment
grade and above. The Group’s exposure and the credit ratings of its counterparties are continuously monitored and
the aggregate value of transactions concluded is spread amongst approved counterparties.
The Group does not have any significant customers and accordingly does not have significant exposure to bad or
doubtful debts.
Trade and other receivables comprise trade receivables, interest accrued and GST refunds due. Where possible
the Consolidated Entity trades only with recognised, creditworthy third parties. It is the Group’s policy that, where
possible, customers who wish to trade on credit terms are subject to credit verification procedures. In addition,
receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts is
not significant. At 30 June 2016, none (2015: none) of the Group’s receivables are past due.
56
Salt Lake Potash Limited ANNUAL REPORT 2016
23.
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Continued)
(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 Board's
approach to managing liquidity is to ensure, as far as possible, that the Group will always have sufficient liquidity to
meet its liabilities when due. At 30 June 2016 and 2015, the Group had sufficient liquid assets to meet its financial
obligations.
The contractual maturities of financial liabilities, including estimated interest payments, are provided below. There
are no netting arrangements in respect of financial liabilities.
≤6 Months
$
6-12
Months
$
1-5 Years
≥5 Years
Total
$
$
$
2016
Group
Financial Liabilities
Trade and other payables
2015
Group
Financial Liabilities
Trade and other payables
(d)
Interest Rate Risk
607,615
607,615
251,196
251,196
-
-
-
-
-
-
-
-
-
-
-
-
607,615
607,615
251,196
251,196
The Group does not have any long-term borrowing or long term deposits, which would expose it to significant cash
flow interest rate risk.
The Group currently does not engage in any hedging or derivative transactions to manage interest rate risk.
(f)
Capital Management
The Group defines its Capital as total equity of the Group, being $9,397,552 as at 30 June 2016 (2015 restated:
$5,542,742). The Group manages its capital to ensure that entities in the Group will be able to continue as a going
concern while financing the development of its projects through primarily equity based financing. The Board's policy
is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future
development of the business. Given the stage of development of the Group, the Board's objective is to minimise
debt and to raise funds as required through the issue of new shares.
The Group is not subject to externally imposed capital requirements.
There were no changes in the Group's approach to capital management during the year. During the next 12 months,
the Group will continue to explore project financing opportunities, primarily consisting of additional issues of equity.
(g)
Fair Value
The Group uses various methods in estimating the fair value of a financial instrument. The methods comprise:
Level 1 – the fair value is calculated using quoted prices in active markets.
Level 2 – the fair value is estimated using inputs other than quoted prices included in Level 1 that are observable
for the asset or liability, either directly (as prices) or indirectly (derived from prices).
Level 3 – the fair value is estimated using inputs for the asset or liability that are not based on observable
market data.
At 30 June 2016 and 30 June 2015, the carrying value of the Group’s financial assets and liabilities approximate
their fair value.
Quoted market price represents the fair value determined based on quoted prices on active markets as at the
reporting date without any deduction for transaction costs.
Salt Lake Potash Limited ANNUAL REPORT 2016
57
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(Continued)
24. CONTINGENT ASSETS AND LIABILITIES
(i)
Contingent Assets
As at the date of this report, no contingent assets had been identified in relation to the 30 June 2016 financial year.
(ii)
Contingent Liability
As at the date of this report, no contingent liabilities had been identified in relation to the 30 June 2016 financial
year.
25. COMMITMENTS
Management have identified the following material commitments for the consolidated group as at 30 June 2016 and
30 June 2015:
Exploration commitments
Within one year
Later than one year but not later than five years
2016
$
2015
$
890,000
454,000
-
-
890,000
454,000
26.
EVENTS SUBSEQUENT TO BALANCE DATE
On 9 September 2016, the Company issued 180,000 shares to a consultant in lieu of fees.
As at the date of this report there are no matters or circumstances which have arisen since 30 June 2016 that have
significantly affected or may significantly affect:
the operations, in financial years subsequent to 30 June 2016, of the Consolidated Entity;
the results of those operations, in financial years subsequent to 30 June 2016, of the Consolidated Entity;
or
the state of affairs, in financial years subsequent to 30 June 2016, of the Consolidated Entity.
58
Salt Lake Potash Limited ANNUAL REPORT 2016
DIRECTORS’ DECLARATION
In accordance with a resolution of the Directors of Salt Lake Potash Limited:
1.
In the opinion of the Directors:
(a)
the attached financial statements, notes and the additional disclosures included in the Directors'
report designated as audited, are in accordance with the Corporations Act 2001, including:
(i)
(ii)
section 296 (compliance with accounting standards and Corporations Regulations 2001); and
section 297 (gives a true and fair view of the financial position as at 30 June 2016 and of the
performance for the year ended on that date of the consolidated group); and
(b)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable.
2.
3.
The attached financial statements are in compliance with International Financial Reporting Standards, as
stated in note 1(b) to the financial statements.
The Directors have been given a declaration required by section 295A of the Corporations Act 2001 for the
financial year ended 30 June 2016.
On behalf of the Board
MATTHEW SYME
CEO
23 September 2016
Salt Lake Potash Limited ANNUAL FINANCIAL REPORT 2016
59
INDEPENDENT AUDITORS REPORT
60
Salt Lake Potash Limited ANNUAL FINANCIAL REPORT 2016
INDEPENDENT AUDITORS REPORT (Continued)
Salt Lake Potash Limited ANNUAL REPORT 2016
61
CORPORATE GOVERANCE
The Company believes corporate governance is a critical pillar on which business objectives and, in turn,
shareholder value must be built. The Board of Salt Lake has adopted a suite of charters and key corporate
governance documents which articulate the policies and procedures followed by the Company.
These documents are available
the Company’s website,
www.saltlakepotash.com.au/corporate/corporate-governance/.These documents are reviewed at least annually to
address any changes in governance practices and the law.
the Corporate Governance section of
in
The Company’s 2016 Corporate Governance Statement, which is current as at 30 June 2016 and has been
approved by the Company’s Board, explains how Salt Lake complies with the ASX Corporate Governance Council’s
‘Corporate Governance Principles and Recommendations – 3rd Edition’ in relation to the year ended 30 June 2016.
The Corporate Governance Statement is available in the Corporate Governance section of the Company’s website,
www.saltlakepotash.com.au/corporate/corporate-governance/ and will be lodged with ASX (and other exchanges
the Company has a listing on) together with an Appendix 4G at the same time that this Annual Report is lodged.
In addition to the ASX Corporate Governance Council’s ‘Corporate Governance Principles and Recommendations
– 3rd Edition’ the Board has taken into account a number of important factors in determining its corporate
governance policies and procedures; including the:
relatively simple operations of the Company, which currently only undertakes mineral exploration and
development activities;
cost verses benefit of additional corporate governance requirements or processes;
size of the Board;
Board’s experience in the resources sector;
organisational reporting structure and number of reporting functions, operational divisions and
employees;
relatively simple financial affairs with limited complexity and quantum;
relatively small market capitalisation and economic value of the entity; and
direct shareholder feedback.
Salt Lake Potash Limited ANNUAL REPORT 2016
62
ASX ADDITIONAL INFORMATION
1.
TWENTY LARGEST HOLDERS OF LISTED SECURITIES
The names of the twenty largest holders of listed securities as at 30 September 2016 are listed below:
Name
Computershare Clearing Pty Ltd
Arredo Pty Ltd
JBJF Management Pty Ltd
Vynben Pty Ltd
Mr Aharon Arakel & Mrs Ida Arakel
Howitt Mgmt Pty Ltd
Hopetoun Consulting Pty Ltd
NEFCO Nominees Pty Ltd
Mr Mark Savage
Pershing Australia Nominees Pty Ltd
Aegean Capital Pty Ltd
D Gray & Co Pty Ltd
HSBC Custody Nominees (Australia) Limited
Roseberry Holdings Pty Ltd
Mr Jason Peterson & Mrs Lisa Peterson
Apollo Group Pty Ltd
Mr Terry Patrick Coffey & Hawkes Bay Nominees Limited
Cantori Pty Ltd
Ellison (Wa) Pty Ltd
Bouchi Pty Ltd
Total Top 20
Others
Total Ordinary Shares on Issue
Number of
Ordinary Shares
15,046,538
11,000,000
5,100,000
5,025,498
4,950,000
4,620,000
4,500,000
4,140,000
4,000,000
3,305,298
3,067,749
2,522,169
2,021,222
2,000,000
2,000,000
2,000,000
1,697,504
1,656,085
1,600,000
1,500,000
84,644,661
49,362,935
134,007,596
Percentage of
Ordinary Shares
11.23
8.21
3.81
3.75
3.69
3.45
3.36
3.09
2.98
2.47
2.29
1.88
1.51
1.49
1.49
1.49
1.27
1.24
1.19
1.12
63.16
36.84
100.00
2.
DISTRIBUTION OF EQUITY SECURITIES
An analysis of numbers of holders of listed securities by size of holding as at 30 September 2015 is listed below:
Distribution
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
More than 100,000
Totals
Ordinary Shares
Number of
Shareholders
Number of
Ordinary Shares
1,189
378
122
272
136
2,097
321,063
921,697
927,447
10,426,823
121,410,566
134,007,596
There were 1,251 holders of less than a marketable parcel of Ordinary Shares.
3.
VOTING RIGHTS
See Note 14(b) of the Notes to the Financial Statements.
Salt Lake Potash Limited ANNUAL REPORT 2016
63
ASX ADDITIONAL INFORMATION (Continued)
4.
SUBSTANTIAL SHAREHOLDERS
Substantial holders who have notified the Company in accordance with section 671B of the Corporations Act 2001
are as follows:
Distribution
Arredo Pty Ltd
5.
UNQUOTED SECURITIES
Number of
Ordinary Shares
11,000,000
The names of the security holders holding 20% or more of an unlisted class of security are listed below:
Holder
Mr Chris Dinsdale
Mr Tim Hogan
Others (less than 20%)
Total
Total holders
$3.60
Unlisted Options
$4.80
Unlisted Options
$6.00
Unlisted Options
$2.73
Unlisted Options
30-Nov-16
30-Nov-16
30-Nov-16
30-Nov-16
22,222
15,555
19,593
57,370
6
22,222
15,555
19,593
57,370
6
22,222
15,555
19,593
57,370
6
33,333
-
-
33,333
1
Performance Shares
Subject to Pre-Feasibility
Study Milestone (Class A)
expiring
12-Jun-18
Performance Shares
Subject to Definitive
Feasibility Study
Milestone (Class B)
expiring
12-Jun-19
Performance Shares
Subject to Construction
Milestone (Class C)
expiring
12-Jun-20
1,700,000
1,650,000
1,540,000
110,000
5,000,000
4
2,550,000
2,475,000
2,310,000
165,000
7,500,000
4
3,400,000
3,300,000
3,080,000
220,000
10,000,000
4
Holder
JBJF Management Pty Ltd
Mr Aharon Arakel & Mrs Ida Arakel
Howitt MGMT Pty Ltd
Others (less than 20%)
Total
Total holders
6.
ON-MARKET BUY BACK
There is currently no on-market buyback program for any of Salt Lake Potash Limited's listed securities.
64
Salt Lake Potash Limited ANNUAL REPORT 2016
7.
EXPLORATION INTERESTS
Summary of Exploration and Mining Tenements
As at 30 September 2016, the Company holds the following interests in the listed tenements:
Australian Projects:
Project
Status
License
Number
Area
(km2)
Term
Grant Date
Date of
First
Relinquish-
ment
Interest
(%)
30-Sept-16
Western Australia
Lake Wells
Central
South
North
Outer East
Single Block
Outer West
North West
Lake Ballard
West
East
North
South
Lake Irwin
West
Central
East
North West
North
Central East
South
South West
Lake Minigwal
West
East
Central
Central East
South
South West
Lake Way
Central
South
Lake Marmion
North
Central
South
South Australia
Granted
Granted
Granted
Granted
Granted
Granted
Application
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Application
Application
Application
Application
Application
Granted
Granted
Application
Application
Application
Application
E38/2710
E38/2821
E38/2824
E38/3055
E38/3056
E38/3057
E38/3124
E29/912
E29/913
E29/948
E29/958
E37/1233
E39/1892
E38/3087
E37/1260
E37/1261
E38/3113
E39/1955
E39/1956
E39/1893
E39/1894
E39/1962
E39/1963
E39/1964
E39/1965
Application
Application
E53/1878
E53/1897
Application
Application
Application
E29/1000
E29/1001
E29/1002
192.2
131.5
198.2
298.8
3.0
301.9
39.0
607.0
73.2
94.5
30.0
203.0
203.0
139.2
203.0
107.3
203.0
118.9
110.2
246.2
158.1
369.0
93.0
99.0
89.9
217.0
77.5
167.4
204.6
186.0
5 years
5 years
5 years
5 years
5 years
5 years
-
5 years
5 years
5 years
5 years
5 years
5 years
5 years
-
-
-
-
-
5 years
5 years
-
-
-
-
-
-
-
-
-
05-Sep-12
19-Nov-13
04-Nov-13
16-Oct-15
16-Oct-15
16-Oct-15
-
10-Apr-15
10-Apr-15
22-Sep-15
20-Jan-16
08-Mar-16
23-Mar-16
23-Mar-16
-
-
-
-
-
01-Apr-16
01-Apr-16
-
-
-
-
-
-
-
-
-
4-Sep-17
18-Nov-18
3-Nov-18
16-Oct-20
16-Oct-20
16-Oct-20
-
10-Apr-20
10-Apr-20
21-Sep-20
19-Jan-21
07-Mar-21
22-Mar-21
22-Mar-21
-
-
-
-
-
31-Mar-21
31-Mar-21
-
-
-
-
-
-
-
-
-
Lake Macfarlane
Island Lagoon
Granted
Granted
EL5702
EL5726
816
978
5 years
5 years
20-Jan-16
08-Feb-16
19-Jan-21
07-Feb-21
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Northern Territory
Lake Lewis
South
North
Granted
Granted
EL 29787
EL 29903
146.4
125.1
6 year
6 year
08-Jul-13
21-Feb-14
7-Jul-19
20-Feb-19
100%
100%
Salt Lake Potash Limited ANNUAL REPORT 2016
65
ASX ADDITIONAL INFORMATION (Continued)
7.
EXPLORATION INTERESTS (Continued)
Other Projects:
Location
USA - Colorado
USA - Colorado
USA - Colorado
USA - Colorado
USA - Colorado
USA - Colorado
USA - Colorado
USA - Colorado
Name
C-SR-10
C-JD-5A
C-SR-11A
C-SR-15A
C-SR-16
C-WM-17
C-LP-22A
C-LP-23
Resolution Number
Percentage Interest
C-SR-10
C-JD-5A
C-SR-11A
C-SR-15A
C-SR-16
C-WM-17
C-LP-22A
C-LP-23
80%
80%
80%
80%
80%
80%
80%
80%
8.
MINERAL RESOURCES STATEMENT
Mineral Resource Statement as at 30 June 2016 is grouped by deposit, all of which form part of the Lake Wells
SOP in Western Australia. To date, no Ore Reserves have been reported for these deposits.
Governance
The Company engages external consultants and Competent Persons (as determined pursuant to the JORC Code
2012) to prepare and estimate the Mineral Resources. Management and the Board review these estimates and
underlying assumptions for reasonableness and accuracy. The results of the Mineral Resource estimates are then
reported in accordance with the requirements of the JORC Code 2012 and other applicable rules (including ASX
Listing Rules).
Where material changes occur during the year to the project, including the project’s size, title, exploration results or
other technical information, previous resource estimates and market disclosures are reviewed for completeness.
The Company reviews its Mineral Resources as at 30 June each year. A revised Mineral Resource estimate will be
prepared as part of the annual review process where a material change has occurred in the assumptions or data
used in previously reported Mineral Resources. However, there are circumstances where this may not be possible
(e.g. an ongoing drilling programme), in which case a revised Mineral Resource estimate will be prepared and
reported as soon as practicable.
Results of Annual Review
During the year, the Company completed its maiden JORC Mineral Resource estimate for the Lake Wells Project,
totalling 29 million tonnes (Mt) of Sulphate of Potash (SOP) with approximately 80% in the ‘Measured’ category
with excellent brine chemistry of 4,009 mg/L Potassium (K), 19,175 mg/L (SO4). The resource was calculated only
on the upper 16 metres of the Lake, with mineralisation remaining open at depth across most of the Lake.
In February 2016, an expanded Mineral Resource Estimate (MRE) was calculated at Lake Wells totaling 80-85
million tonnes of SOP. This represents an additional 51-56 Mt of Inferred Resource calculated in the strata below
the previously reported shallow Resource of 29 Mt
As a result of the annual review of the Company’s Mineral Resources, there has been no change to the Mineral
Resources reported for the Lake Wells Project in February 2016.
66
Salt Lake Potash Limited ANNUAL REPORT 2016
Total Mineral Resource Estimate
Classification
Geological Unit
Measured
Playa Lake Sediments
Indicated
Playa Lake Sediments
Inferred
Playa Lake Sediments
(Islands)
Bulk
Volume
(Million m3)
5,427
775
1,204
Porosity
Brine Volume
(Million m3)
Average SOP1
(K2SO4)
Concentration
(kg/m3)
K2SO4
Tonnage
(Mt)
0.464
0.464
0.464
2,518
359
558
8.94
8.49
5.34
9.07
8.79
8.74
23
3
3
38
13-18
80-85
Inferred
Paleovalley Sediment
10,600
0.40
4,240
Inferred
Fractured Siltstone Aquifer
6,717
0.22-.30
1,478 - 2,015
Total
24,723
9,691
Note: 1) Conversion factor to K to SOP (K2SO4 equivalent) is 2.23
Lake Wells Project – Mineral Resource Estimate (JORC 2012)
Competent Person Statement – Mineral Resource Statement
The information in this Mineral Resource Statement that relates to Mineral Resources is based on, and fairly
represents, information compiled by Mr Ben Jeuken, a Competent Person, who is a member Australian Institute of
Mining and Metallurgy. Mr Jeuken is employed by Groundwater Science Pty Ltd, an independent consulting
company. Mr Jeuken has sufficient experience, which is relevant to the style of mineralisation and type of deposit
under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the
2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.
Mr Jeuken has approved the Mineral Resource Statement as a whole and consents to its inclusion in the form and
context in which it appears.
Salt Lake Potash Limited ANNUAL REPORT 2016
67
DISCLAIMERS AND DISCLOSURES
Cautionary Statement and Important Information
The information in the Report that relates to the Scoping Study is extracted from the report entitled ‘Scoping Study
Confirms Potential Confirms Lake Wells Potential’ dated 29 August 2016 (Scoping Study Announcement). The
announcement is available to view on www.saltlakepotash.com.au. The Scoping Study has been prepared and
reported in accordance with the requirements of the JORC Code (2012) and relevant ASX Listing Rules.
The primary purpose of the Scoping Study is to establish whether or not to proceed to a Pre-Feasibility Study
(“PFS”) and has been prepared to an accuracy level of ±30%, the Scoping Study results should not be considered
a profit forecast or production forecast. As defined by the JORC Code, a “Scoping Study is an order of magnitude
technical and economic study of the potential viability of Mineral Resources. It includes appropriate assessments
of realistic assumed Modifying Factors together with any other relevant operational factors that are necessary to
demonstrate at the time of reporting that progress to a Pre-Feasibility Study can be justified.” (Emphasis added)
The Modifying Factors included in the JORC Code have been assessed as part of the Scoping Study, including
mining (brine extraction), processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social
and government factors. The Company has received advice from appropriate experts when assessing each
Modifying Factor.
Following an assessment of the results of the Scoping Study, the Company has formed the view that a PFS is
justified for the Lake Wells project, which it will now commence. The PFS will provide the Company with a more
comprehensive assessment of a range of options for the technical and economic viability of the Lake Wells project.
The Company has concluded it has a reasonable basis for providing any of the forward looking statements included
in this announcement and believes that it has a reasonable basis to expect that the Company will be able to fund
its stated objective of completing a PFS for the Lake Wells project. All material assumptions on which the forecast
financial information is based are set out in the Scoping Study Announcement.
In accordance with the ASX listing rules, the Company advises the Scoping Study referred to in the Scoping Study
Announcement is based on lower-level technical and preliminary economic assessments, and is insufficient to
support estimation of Ore Reserves or to provide assurance of an economic development case at this stage, or to
provide certainty that the conclusions of the Scoping Study will be realised.
Production Target
The Production Target stated in this Report is based on the Company’s Scoping Study for the Lake Wells Project
as released to the ASX on 29 August 2016. The information in relation to the Production Target that the Company
is required to include in a public report in accordance with ASX Listing Rule 5.16 was included in the Company’s
ASX Announcement released on 29 August 2016. The Company confirms that the material assumptions
underpinning the Production Target referenced in the 29 August 2016 release continue to apply and have not
materially changed.
The Production Target referred to in this Report and the Scoping Study Announcement is based on 100% Measured
Mineral Resources for Stage 1 and 70% Measured Mineral Resources and 30% Inferred Mineral Resources for
Stage 2. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no
certainty that further exploration work will result in the determination of Measured or Indicated Mineral Resources
or that the production target or preliminary economic assessment will be realised.
Forward Looking Statements
This Report contains ‘forward-looking information’ that is based on the Company’s expectations, estimates and
projections as of the date on which the statements were made. This forward-looking information includes,
among other things, statements with respect to pre-feasibility and definitive feasibility studies, the Company’s
business strategy, plans, development, objectives, performance, outlook, growth, cash flow, projections, targets
and expectations, mineral reserves and resources, results of exploration and related expenses. Generally, this
forward-looking information can be identified by the use of forward-looking terminology such as ‘outlook’,
‘anticipate’, ‘project’, ‘target’, ‘potential’, ‘likely’, ‘believe’, ‘estimate’, ‘expect’, ‘intend’, ‘may’, ‘would’, ‘could’, ‘should’,
‘scheduled’, ‘will’, ‘plan’, ‘forecast’, ‘evolve’ and similar expressions. Persons reading this news release are
cautioned that such statements are only predictions, and that the Company’s actual future results or performance
may be materially different. Forward-looking information is subject to known and unknown risks, uncertainties and
other factors that may cause the Company’s actual results, level of activity, performance or achievements to be
materially different from those expressed or implied by such forward-looking information. Forward-looking
information is developed based on assumptions about such risks, uncertainties and other factors set out herein,
including but not limited to the risk factors set out in Schedule 2 of the Company’s Notice of General Meeting and
Explanatory Memorandum dated 8 May 2015.
68
Salt Lake Potash Limited ANNUAL REPORT 2016
Competent Persons Statement
The information in the Report that relates to the Scoping Study is extracted from the report entitled ‘Scoping Study
Confirms Potential Confirms Lake Wells Potential’ dated 29 August 2016. The announcement is available to view
on www.saltlakepotash.com.au. The information in the original announcement that relates to processing,
infrastructure and cost estimation are based on and fairly represents information compiled or reviewed by Mr Zeyad
El-Ansary, who is a Competent Person as a member of the Australasian Institute of Mining and Metallurgy. Mr
Zeyad El-Ansary has 9 years’ experience relevant to the activities undertaken for preparation of these report
sections and is a employed by Amec Foster Wheeler. Mr Zeyad El-Ansary consents to the inclusion in the
report/press release of the matters based on their information in the form and context in which it appears. The
Company confirms that it is not aware of any new information or data that materially affects the information included
in the original market announcement. The Company confirms that the form and context in which the Competent
Person’s findings are presented have not been materially modified from the original market announcement.
The information in this Report that relates to Mineral Resources for Lake Wells, is extracted from the reports entitled
‘Lake Wells Resource Increased By 193 Percent to 85Mt of SOP’ dated 22 February 2016 and ‘Significant Maiden
SOP Resource of 29Mt at Lake Wells’ dated 11 November 2015 and is available to view on the Company’s website
www.saltlakepotash.com.au. The information in the original ASX Announcement that related to Exploration Results
for Lake Wells based on information compiled by Mr Ben Jeuken, who is a member Australian Institute of Mining
and Metallurgy. Mr Jeuken is employed by Groundwater Science Pty Ltd, an independent consulting company. Mr
Jeuken has sufficient experience, which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012
Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr
Jeuken consents to the inclusion in the report of the matters based on his information in the form and context in
which it appears. The Company confirms that it is not aware of any new information or data that materially affects
the information included in the original market announcement. The Company confirms that the form and context in
which the Competent Person’s findings are presented have not been materially modified from the original market
announcement.
The information in this Report that relates to Exploration Results, not including geophysical and test pumping results
for Lake Wells, is extracted from the reports entitled ‘Aircore Drilling Confirms Deeper Potential At Lake Wells’
dated 23 November 2015, ‘Successful Shallow Core Drilling Completed at Lake Wells’ dated 22 September 2015
and ‘Wildhorse Acquires Two Large Scale High Grade Sulphate Of Potash Brine Projects’ dated 9 April 2015 and
is available to view on the Company’s website www.saltlakepotash.com.au. The information in the original ASX
Announcement that related to Exploration Results, not including geophysical and test pumping results for Lake
Wells based on information compiled by Mr Ben Jeuken, who is a member Australian Institute of Mining and
Metallurgy. Mr Jeuken is employed by Groundwater Science Pty Ltd, an independent consulting company. Mr
Jeuken has sufficient experience, which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012
Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr
Jeuken consents to the inclusion in the report of the matters based on his information in the form and context in
which it appears. The Company confirms that it is not aware of any new information or data that materially affects
the information included in the original market announcement. The Company confirms that the form and context in
which the Competent Person’s findings are presented have not been materially modified from the original market
announcement.
The information in this Report that relates to Exploration Results on geophysical and test pumping results for Lake
Wells, is extracted from the reports entitled Geophysics and Test Pumping Reinforce Lake Wells Potential ’ dated
10 August 2016 and ‘Excellent Initial Pump Test Results at Lake Wells ’ dated 12 May 2016 and is available to view
on the Company’s website www.saltlakepotash.com.au. The information in the original ASX Announcement that
related to Exploration Results on geophysical and test pumping results for Lake Wells based on information
compiled by Mr Adam Lloyd, who is a member of the Australian Institute of Geoscientists and International
Association of Hydrogeology. Mr Lloyd was an employee of Salt Lake Potash Limited. Mr Lloyd has sufficient
experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity,
which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Lloyd consents to the inclusion in
the report of the matters based on his information in the form and context in which it appears. The Company confirms
that it is not aware of any new information or data that materially affects the information included in the original
market announcement. The Company confirms that the form and context in which the Competent Person’s findings
are presented have not been materially modified from the original market announcement.
Salt Lake Potash Limited ANNUAL REPORT 2016
69
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Salt Lake Potash Limited | ASX/AIM: SO4 | Level 9, BGC Centre 28 The Esplanade, Perth WA 6000, Australia
Tel. +61 8 9322 6322 | Email: info@saltlakepotash.com.au | saltlakepotash.com.au | ABN 98 117 085 748