Annual
Report
2015
ACN 42 127 042 773
Contents
Company Information ������������������������������������������������������������������������������ 1
Review of Operations ������������������������������������������������������������������������������� 2
Directors’ Report ������������������������������������������������������������������������������������� 13
Auditor’s Independence Declaration �������������������������������������������� 22
Statement of Comprehensive Income ���������������������������������������� 24
Statement of Financial Position ������������������������������������������������������� 25
Statement of Changes in Equity ����������������������������������������������������� 26
Statement of Cash Flows ������������������������������������������������������������������� 27
Notes to Financial Statements �������������������������������������������������������� 28
Directors’ Declaration ��������������������������������������������������������������������������� 45
Independent Auditor’s Report ���������������������������������������������������������� 46
Shareholder Details �������������������������������������������������������������������������������� 48
Interest in Exploration Leases ���������������������������������������������������������� 50
Corporate Governance Statement ����������������������������������������������� 51
Company Information – Scotland �������������������������������������������������� 52
Photographs contained in this Annual Report are for illustration
purposes only and are not necessarily assets of the Company.
Company 01
Information
ABN
Directors
42 127 042 773
Nathaniel le Roux
Richard Gray
Non-Executive Chairman
Managing Director
Company Secretary
Registered Office
Share Registry
Auditor
Bankers
Chris Sangster
Phillip Jackson
Richard Harris
Peter Newcomb
24 Colin Street
Perth, WA 6005
Telephone:
Facsimile:
Email:
Non-Executive Director
Non-Executive Director
Non-Executive Director
+61 8 9222 5850
+61 8 9222 5810
sgz@scotgoldresources�com
Computershare Investor Services Pty Ltd
Level 11
172 St Georges Terrace
Perth, WA 6000
Telephone:
Facsimile:
+61 8 9323 2000
+61 8 9323 2033
HLB Mann Judd
Level 4, 130 Stirling Street
Perth, WA 6000
Telephone:
Facsimile:
+61 8 9227 7500
+61 8 9227 7533
Westpac Banking Corporation
116 James Street
Northbridge, WA 6000
Securities Exchange Listing
Scotgold Resources Limited shares are listed on the Australian Securities
Exchange and on the AIM board of the London Stock Exchange�
The home exchange is Perth, Western Australia�
ASX Code:
AIM Code:
Shares
Shares
SGZ
SGZ
Website
www�scotgoldresources�com
1
SCOTGOLD ANNUAL REPORT I 2015
of Operations
ABOUT SCOTGOLD
Scotgold Resources Limited was established in 2007 and listed on the Australian Securities Exchange (ASX:SGZ)
in January 2008� The company’s shares were admitted to trading on the AIM market of the London Stock
Exchange (AIM:SGZ) in February 2010�
The Company’s principal objective, since listing, has been the advancement of the Cononish Gold and Silver
Project in Scotland’s Grampian Highlands to a production decision and the ongoing exploration of the highly
prospective tenements comprising the Grampian Gold Project (which is described in greater detail below) with the
view of identifying further project opportunities�
Although the Company’s initial application for planning permission to develop the project in 2010 was rejected,
the Company submitted a revised application and on 25th October 2011, the Board of the Loch Lomond and the
Trossachs Parks (“the Parks Board”) unanimously approved the application subject to the conclusion of various legal
agreements and agreement on a number of outstanding conditions� These were successfully concluded and on 15th
February 2012, the Parks Board issued the Decision Letter granting planning permission for the development� The
Crown Estate Commissioners unconditional grant of the Crown Lease was confirmed in May 2012�
During 2014, the Company made an application to vary this planning permission (relating to hours of operation of
the processing plant and work on site) and on 24 January 2015, the Board of the Loch Lomond and the Trossachs
National Park again voted unanimously to approve the Company’s application� As a variation to a condition of the
existing consent, this approval also has the effect of extending the date by which development should commence
to January 2018�
The Company continues to examine financing options to bring the project to a development decision�
The Grampian Gold Project comprises Crown Option agreements covering some 4100 km2 in the south west
Grampians of Scotland and covers some of the most prospective areas of the Dalradian geological sequence in
the UK� This sequence extends westward from the UK to the eastern seaboard of Canada and the Appalachian
belt in the US, and eastward into Sweden and Norway, has been identified by the British Geological Survey as
being highly prospective for both significant gold and base metal deposits� On a more local scale, the Dalradian
sequence extends to the south west from Scotland into Northern Ireland where it hosts other gold resources at
Cavancaw (c� 0�8 Moz of gold) and Curraghinalt (c� 3�5M oz of gold)�
The Company is conducting a regional stream sediment sampling program over the wider Grampian Gold Project
area whilst continuing to evaluate a number of previously identified high grade outcrops in the vicinity of the
Cononish project�
OPERATIONAL REVIEW
CONONISH GOLD AND SILVER PROJECT
During the year, the Company focussed on the completion the Bankable Feasibility Study (“BFS”), following a
review and optimisation of the 2013 Cononish development plan� This BFS now forms the basis for discussions
with possible finance providers in order to advance the project to production�
The key inputs to the BFS included
• A revised Mineral Resource Estimate for the project completed by CSA Global (UK) Limited
• A gap analysis of the 2013 Cononish Development Plan to identify areas requiring further input to meet BFS
standards
• A trade off study examining alternative mining methods and means of access to optimise project returns
• A variation to the existing planning permission to facilitate 24 hour/6 day plant operations (as opposed to 16
hour/6 day)
Based on the results of the above studies, a Bankable Feasibility Study (BFS) was completed for the project by
Bara Consulting UK Ltd, highlights of which are shown in Table 1�
2
SCOTGOLD ANNUAL REPORT I 2015Review02 Review of Operations
02
Table 1: Cononish Gold and Silver Project BFS Highlights
PRODUCTION
Average Production
Average LoM Grade (Au Eq)
Average Metal Produced
Life of Mine
72,000 tonne per annum
11�8 gram/tonne
23,370 ounces equivalent gold* per annum
8 years
FINANCIAL (at Gold US$1,100/oz & Silver US$15/oz)
Peak Funding Requirement
Total LoM Capital Expenditure
£18�5M
£24M
Unit Operating Costs
EBITDA
NPV (10%) pre-tax
£327/ ounce equivalent gold (US$523/ ounce equivalent gold)
£67M
£23M
IRR pre-tax
45%
Payback Period
Note: This information was prepared and first disclosed under the JORC Code 2004. It has not been
updated since to comply with the JORC Code 2012 on the basis that the information has not
materially changed since it was last reported.
* Ounces equivalent gold = ounces gold + ounces silver*15/1100 – ratio calculated at base case prices of $1100/oz Au
19 months
and $15.00/oz Ag
SCOTGOLD ANNUAL REPORT I 2015
REVIEW OF OPERATIONS
3
3
The study demonstrates:
• Robust Project economics using a base case gold price of US$1,100/ounce (£688/ounce) with an EBITDA of
£67�4M, a pre-tax free cashflow of £43�4M, pre-tax NPV(10%) of £22�5M and a pre-tax IRR of 45%�
• Low operating costs with Life of Mine (‘LoM’) average of £327/ounce equivalent gold (US$523/ounce
equivalent gold) (including Royalties) and Project breakeven (0% IRR) at US$689/ ounce equivalent gold
• Peak Funding Requirement of £18�5M and all in LoM Capital including contingencies, replacements etc� of
£24�0M
• Average annual gold production of 23,370 ounce equivalent gold with peak production in Year 2 of 28,540
ounce equivalent gold�
• Average LoM grade of 11�8 grams equivalent gold / tonne and peak grade of 15�4 grams equivalent gold /
tonne in year 2�
• Rapid Implementation schedule of 16 months post contract and finance completion and short Payback Period
of 19 months from full production�
Details of the material assumptions considered in the derivation of the production target and forecast financial
information above and the BFS Study Executive Summary are provided on Scotgold’s website at
scotgoldresources.com – ASX releases – 05/08/2015 – Cononish Gold and Silver Project Bankable Feasibility
Study and Bankable Feasibility Study – Executive Summary�
Mineral Resources
The new Mineral Resource Estimate (‘MRE’) for the Cononish Gold and Silver Project was compiled by CSA Global
(UK) Limited (see ASX release: Resource Estimate Update – 22/01/2015) and utilised a detailed three dimensional
(3D) geological model (as opposed to the previous two dimensional polygonal estimate (JORC 2004))� This 3D
geological model more accurately estimated the volume of the vein deposit, as well as assisted in the interpretation
of other key geological features, such as faults and dykes� The new MRE also incorporated advances in geological
interpretation and geostatistical evaluation, including the use of local uniform conditioning to optimise the grade
tonnage distribution for the Selective Mining Unit (SMU) dimensions achievable with the planned underground
mining method�
The MRE is classified as Measured, Indicated and Inferred Resources, (based on guidelines recommended in the
JORC Code (2012)), is reported at a cut-off grade of 3�5 g/t gold and is presented in Table 2 below� Table 2 also
serves as the Company’s Annual Mineral Resource statement�
Table 2: Annual Mineral Resource Statement as at 30/06/2015
Cononish Main Vein Gold and Silver Mineral Resources (reported at a 3�5 g/t Au cut-off) compiled 12/01/2015�
Cononish Gold Project Mineral Resource Estimate as at 12/01/2015 Reported at a cut-off grade of 3.5 g/t gold
K Tonnes
Grade
Au g/t
Metal
AuKoz
Grade
Ag g/t
Metal
Ag Koz
In situ
Dry BD
Classification
Measured in situ
Indicated in situ
60
474
Indicated – Mined Stockpile
7
Sub- total M & I
Inferred –in situ
Total MRE
541
75
617
15�0
14�3
7�9
14�3
7�4
13�4
29
217
2
248
18
266
71�5
58�7
39�0
59�9
21�9
55�3
139
895
9
1,043
53
1,096
2�72
2�72
2�72
2�72
2�72
2�72
Reported from 3D block model with grades estimated by Ordinary kriging with 15 ml x 15 ml SMU Local Uniform
Conditioning Adjustment. Minimum vein width is 1.2m. Totals may not appear to add up due to appropriate rounding.
4
SCOTGOLD ANNUAL REPORT I 2015Review of Operations02 Mineral Resources reported as at 30/06/2014 totalled (including Measured, Indicated and Inferred categories)
460,600t @ 11�7g/t Au and 45g/t Ag at a 3�5g/t cut off� (This estimate was compiled in accordance with the JORC
(2004) Code and is superseded by the recent update)�
A comparison of key parameters between the two estimates is given below:
• Gold metal content of the Measured and Indicated Resource increased by 201% to 248 K oz;
• Average gold grade of the Measured and Indicated Resource increased by 9% to 14�3 g/t;
• Measured and Indicated Resource tonnes increased by 176% to 541 K tonnes;
• Total MRE tonnes increased by 34% to 617 K tonnes; and
• Average gold grade of the Total MRE increased by 18% to 13�4 g/t gold;
The Cononish mineralisation remains open at depth down plunge and to the west along strike� There is therefore
potential to add to the resource by further extensional drilling� In addition to the currently defined resources,
Scotgold believes that there is potential to define further resources close to the Cononish mine, subject to
appropriate further work� Extensive gold-in-soil anomalies, mineralisation associated with outcrops and trenching
and geophysical anomalies close to the current resource clearly warrant further follow up� In addition, there are
indications that other reefs are present in the area too� At this stage, such figures are highly conceptual and there is
no guarantee that further exploration will define additional resources�
Long section showing Mineral Resource by classification
Ore Reserves
As part of initial work towards developing the BFS, Bara Consulting UK Ltd completed a thorough review of
the 2013 Cononish Development plan in order to identify opportunities to not only improve on the plan but to
also improve the confidence in the plan� As a result of this review, further work was undertaken on the mining
methodology, access design, geotechnical evaluation and overall mine design� The outcome of this work was that
a revised Development plan was completed in all areas to at least a Prefeasibility Study level and consequently the
Company estimated an Ore Reserve in accordance with the JORC 2012 code based on the Mineral Resource
Estimate (MRE) issued in January 2015� The new Reserve Estimate is shown in table 3 below�Table 3 also serves
as the Company’s Annual Ore Reserve statement as at 30/06/2015�
5
SCOTGOLD ANNUAL REPORT I 2015Review of Operations02 Table 3 Annual Ore Reserve Statement as at 30/06/2015
Classification
As at 25 May 2015 (JORC 2012 Code)
Tonnes (‘000)
Au Grade (g/t)
Au Metal (k oz)
Ag Grade (g/t)
Ag Metal (k oz)
(Bara Consulting Limited Ore Reserve Statement dated May 2015)
As at 30 April 2013 (JORC 2004 Code)
Tonnes (‘000)
Au Grade (g/t)
Au Metal (k oz)
Ag Grade (g/t)
Ag Metal (k oz)
(Development Plan dated 30 April 2013)
Variance - Increase / (Decrease) 2013 to 2015
Tonnes (‘000)
Au Grade (g/t)
Au Metal (k oz)
Proven
65
11�5
24
51�5
108
Probable
490
11�1
174
47�2
743
Total
555
11�1
198
47�7
851
200
11
71
45
289
200
11
71
45
289
0
0
0
0
0
n/a
n/a
n/a
145%
1%
145%
177%
1%
179%
Note: the Ore Reserve estimates reported in the Development Plan dated 30/04/2013 under the JORC 2004 code are no
longer applicable (as discussed in the 2014 Annual Report) but are presented here for comparative purposes only.
For greater detail on the parameters derived from this work and used for the Ore Reserve estimation process, refer to
ASX release (26/05/2015 – Cononish Gold Project Study Update and Reserve Estimate) on the Company’s website�
The most significant factor underlying the increase in the 2015 Ore Reserve estimate is the Mineral Resource
Estimate (MRE) published in January 2015� The increased confidence in this MRE and the consequent increase
in material classified as Indicated, together with the work done to verify the modifying factors, has resulted in the
estimation of both Proven and Probable categories of Ore Reserve�
There were no Ore Reserves reported for the project as of 30/06/2014�
Bankable Feasibility Study
A summary of the key attributes of the project from the BFS are given below
• Mineralization occurs in a narrow (average width of about 2 m) near vertical quartz vein�
• The project has a resource estimate in Measured, Indicated and Inferred categories (see ASX release “Resource
Estimate Update” dated 22/01/2015) of 541,000 tonnes at a gold grade of 14�3 g/t and a silver grade of 59�7
g/t� The average Bulk Density is 2�72 tonne/m3�
• After taking into account various modifying factors, the proven and probable ore reserves (see ASX release
“Cononish Gold Project Study Update and Reserve Estimate” dated 26/05/2015), comprises 555,000 tonnes
at a gold grade of 11�1 g/t and a silver grade of 47�7 g/t�
• Proven and probable ore reserves represent 12% and 88% of the reported production target respectively� No
inferred resources are considered in the BFS�
• Access will be from the existing exploration adit and footwall ramps will provide access to ore drives at a 15m
vertical interval� A rock pass system has been included to improve ore handling and the transfer of waste�
• The mining method will be a retreat top down Long Hole Open Stoping method using conventional trackless
equipment� Shrinkage stoping was investigated but was only economically viable in the very narrowest (<1�4 m)
areas of the mine and was therefore not considered further�
6
SCOTGOLD ANNUAL REPORT I 2015Review of Operations02 • Full production will be at 72,000 tonnes per annum� The life of mine at full production based on the current
reserves in the Proven and Probable categories is approximately 8 years� The mining production schedule
adequately takes into account the constraints mentioned below� Average gold and silver production will
be approximately 22,208 ounces gold and 85,081 ounces silver per annum respectively or 23,370 ounce
equivalent gold
• Mining permission has been granted but with certain conditions which have been accommodated within the
mine plan� Approximately 129,000 tonnes of tailings (after taking into account the mass pull) is scheduled to
be stored in old stopes towards the end of the mine’s life, enabling the full capacity of the Tailings Management
Facility (‘TMF’) to be restricted to 400,000 tonnes and minimising surface impact�
• Waste is only trucked to surface when required for the building of the TMF and various screening berms
(73,000 tonnes)� All other waste will be stored in old stopes (163,000 tonnes)�
• Based on extensive testwork by Lakefield, Gekko and AMMTEC, the plant is designed as a conventional gravity
and flotation plant� 25% of the gold will be recovered on site, it is estimated, into a doré bar with the balance
produced as concentrate to be treated off site� Overall estimated recovery is 93% for gold and 90% for silver
The doré and concentrate will be sold “at the gate” to third party processors�
• The process plant will be housed in a single multi-use building which will also contain a workshop and office
area� This is designed to have minimal visual and noise impact on the surrounding area�
Views of 3D model showing mine access infrastructure and stope layout
7
SCOTGOLD ANNUAL REPORT I 2015Review of Operations02 Financial Results
The following costs have been estimated at an accuracy of between -5% and +15% and include appropriate
contingencies:
• Peak funding requirement (pre production expenditure): £18�5 million�
• Total LoM Capital Expenditure: £24 million�
• Average operating cost: £110 per tonne treated (including marketing, interest and royalty charges)� It should
be noted that transport, smelting and refining charges where reflected as cost of sales in the PFS� These costs
have been included as part of operating costs in the BFS�
• Average operating cost: £327 (US$ 523) per ounce equivalent gold (on the same basis as above)�
• All in cost including capital £455 (US$ 729) per ounce equivalent gold�
The following financial results were estimated using a gold price of US$ 1,100/ounce, a silver price of US$ 15/
ounce and a US$/£ exchange rate of 1�6:
• EBITDA
• Pre-tax NPV@10%
• Pre-tax IRR
• Post-tax NPV@10%
• Post-tax IRR
• Average profit margin
• Payback
* Note post-tax calculations are based on a hypothetical all equity funding scenario and as such are illustrative only.
£67�4 million
£22�9 million
45%
£18�5 million*
41%*
53%
19 months
Table 4 shows the pre-tax cashflow sensitivity to gold price�
Table 4 Pre Tax Cashflow Sensitivity
PRE-TAX CASHFLOW SENSITIVITY TO GOLD PRICE
Gold Price US$700/
ounce
£1�5M
Pre Tax
Cashflow
US$900/
ounce
US$1,000/
ounce
US$1,100/
ounce
US$1,200/
ounce
US$1,300/
ounce
US$1,500/
ounce
£22�5M
£32�9
£43�4M
£53�9
£64�3M
£85�3M
NPV (10%)
(£4M)
IRR
0%
£9M
25%
16�1
35%
£23M
45%
29�8
54%
£37M
64%
£50M
82%
Planning status
During 2014, the Company held discussions with the Planning Authority regarding the variation of condition 13 of
the Planning Consent relating to the hours of operation of the processing plant and subsequently submitted an
application to vary this condition� The application was unanimously approved at a meeting of the Planning Authority
Board and the relevant legal agreements were approved on 6 February 2015�
The variation provides for a change to the hours of work permitted for the operation of the processing plant to a
24/6 basis (excluding Sundays and public holidays) compared to the previously permitted 16/6 basis (excluding
Sundays and public holidays) and will facilitate smoother plant operations and possible capital expenditure
reductions in respect of the processing plant�
The decision notice granting planning permission to the project issued by the Planning Authority on 13 February
2012 (and subsequently re-issued on 6 February 2015) requires a number of ‘suspensive’ conditions to be
satisfied prior to the start of development� Written submissions for all these conditions have been made (excluding
those to be made immediately prior to the start of development) and 64% of the submissions have been accepted
by the Planning Authority and the conditions discharged� Finalisation of the discussions with the Planning Authority
relating to the discharge of the outstanding conditions will re-commence once further progress towards completing
finance for the project has been made�
8
SCOTGOLD ANNUAL REPORT I 2015Review of Operations02
As such, all necessary permitting has either been granted or can be completed within a short time frame and
engineering design work is at a stage where it can be rapidly finalised on securing finance, thus ensuring a rapid
start to development� Given the advanced state of project development, the Company believe Cononish could be
in production within 18 months of obtaining financing�
The Company continues in discussion with possible finance providers to examine financing options to bring the
project to a development decision�
GRAMPIAN GOLD PROJECT
The Company continues to actively pursue exploration activities on its substantial land position in the Dalradian
group of the south west Grampians, a terrain highly prospective for both gold and potential base metal
occurrences� The majority (85%) of the area currently under option to Scotgold is located outside the Loch
Lomond and the Trossachs National Park�
The Company’s strategy has been to advance the Cononish Gold and Silver Project to production whilst
conducting early stage regional exploration over the wider Grampian Gold Project area in conjunction with follow
up work on the more advanced prospects close to the Cononish project area�
The Grampian Gold Project encompasses a large area of the highly prospective Dalradian sequence� Basic
exploration data, including gravity and airborne magnetics, is available from government surveys carried out
between the 1950s and 1970s but is of a quality and spacing that does not adequately reflect the prospectivity of
the area� This and the general lack of previous exploration over the area (other than early stage exploration in the
vicinity of the Cononish project) has dictated the Company’s approach to exploration�
Regional geology showing ares under option within Dalradian Group
In order to advance its understanding of the regional setting, over the past four years, the Company has embarked
on a regional scale stream sediment sampling program�
In the initial wide spaced regional program, in excess of 750 stream sediment samples were taken over the area�
Initial interpretation of these results continues and this program is now being followed up by a more detailed
9
SCOTGOLD ANNUAL REPORT I 2015Review of Operations02 infill sampling program in the anomalous result areas in order to further target areas for detailed fieldwork and
prospecting� To date a further 450 samples have been taken in the infill program with the program expected to
be completed by year end� Interpretation of the stream sediment results is on-going, in conjunction with work
undertaken by Drs� Gumiel and Arias (see below)�
In parallel with this regional program, Scotgold continues to evaluate previously identified high grade outcrop
samples identified by previous exploration close to the Cononish project�
Principal anomalies identified in the vicinity of Cononish Gold and Silver Project
Initially, the Company conducted a re-sampling program to verify previously identified occurrences and the program
confirmed the presence of a large number of high grade gold / silver vein outcrops in an area located between two
major regional faults, the Tyndrum – Glen Fyne fault and the Ericht - Laidon fault and associated with the fractures
generated by movements along these faults�
Considerable follow up work has been carried out to examine the extent of these occurrences through further
fieldwork, detailed rock chip sampling, initial short surface drilling and (in some cases) deeper diamond drilling and
the Company believe that further significant exploration expenditure is justified on many of these prospects when
financing is available� The most advanced of these prospects include:
10
SCOTGOLD ANNUAL REPORT I 2015Review of Operations02 1 ) the River Vein area - diamond drilling below exceptionally high grade surface rock chip samples has proved
structural continuity of a vein structure to a depth of approximately 100m and a similar strike extent as defined
by current drilling and remains open along strike and at depth: this warrants further diamond drilling (see Press
Release – Exploration Progress at River Vein – 30/01/2012)�
2 ) the Sron Garbh mafic / ultramafic complex – short surface drilling intersected highly anomalous grades of
Gold, Platinum, Palladium, Copper Nickel and Cobalt, in and close to the ‘Gabbroic / Appinitic’ zone of the
complex� Mineralisation is seen to be contained in ‘sulphide blebs’ in a ‘leopard rock’ textured zone� These
characteristics are diagnostic of the worldwide ‘magmatic Cu – Ni – PGE – Au’ group of deposits associated
with mafic / ultramafic intrusives such as Aguablanca in Spain, certain parts of the Sudbury mines in Ontario,
Canada; Voisey’s Bay in Labrador Canada and Lac des Isles in Quebec, Canada� Such deposits occur as
sulphide concentrations (massive through to disseminated sulphides) associated with a variety of mafic and
ultramafic magmatic rocks (see Press Release – Highly Anomalous Platinum Group Metals Gold and Base
metals – 07/03/2012)�
3 ) the Auch / Beinn Odhar veins – shallow surface drilling below one of the identified high grade outcrops
confirmed its prospectivity and a considerable number of the other currently identified outcrops require initial
short surface drilling as a precursor to further more intensive drilling�
The Company recently engaged the services of Drs� Gumiel and Arias of Consulting de Geología y Minería, S�L�,
to conduct a structural study of the Cononish deposit and Tyndrum area� Dr� Gumiel is an expert in structural
geology and the structural control of mineral deposits with over 38 years’ experience in research and mining
exploration� Dr� Arias has over 15 years’ experience as a specialist in database management of geological-mining
data, Geographical Information Systems (GIS) and 3D geological modelling� The study aims to place structural
and geochemical controls on the distribution of gold across the Cononish/Tyndrum area� The structural and
geochemical criteria for the Tyndrum area are anticipated to be applicable across the Grampian Project region to
aid and focus regional exploration� In addition, significant work has been undertaken on the existing database to
develop 2D and 3D representations of data� The final results of this study are expected shortly�
Competent Persons Statement:
The information in this report that relates to Exploration Results is based on information compiled by Mr David
Catterall, Pr Sci Nat, who is a member of the South African Council for Natural Scientific Professions. Mr Catterall is
employed as a consultant to Scotgold Resources Ltd. Mr Catterall 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 Catterall consents to the inclusion in the report of the matters
based on his information in the form and context in which it appears.
Note: No new exploration results are presented in this report� All results have been previously notified under JORC
2004 and are contained in Scotgold Annual reports 2008 - 2014 and various corresponding ASX releases
The information in this report that relates to the 2015 Mineral Resources for Cononish Gold Project (refer ASX
release - Resource Estimate Update – 22/01/2015) is based on information compiled by Malcolm Titley, a
Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Titley is employed
by CSA Global (UK) Limited, an independent consulting company. Mr Titley 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 Titley consents to the inclusion in the
report of the matters based on his information in the form and context in which it appears.
The information in this report that relates to the 2015 Ore Reserves for Cononish Gold Project (refer ASX
announcement dated 26/05/2015) is based on information compiled by Pat Willis, a Competent Person who is
registered as a Professional Engineer (Pr.Eng.) with the Engineering Council for South Africa (ECSA) and a Fellow
in good standing and Past President of the Southern Africa Institute of Mining and Metallurgy (FSAIMM). Mr Willis
is employed by Bara Consulting Limited, an independent consulting company. Mr Willis 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 Willis consents to the inclusion in the
report of the matters based on his information in the form and context in which it appears.
11
SCOTGOLD ANNUAL REPORT I 2015Review of Operations02 Further, the Company confirms it is not aware of any new information or data that materially affects the information
contained in the original announcements and that all material assumptions and technical parameters underpinning
the estimate of Resources and Reserves continue to apply and have not materially changed.
Tenement details
The Company holds a Lease (100%) from the Crown Estate Commissioners over Cononish Farm, County of Perth,
Scotland UK�
The Company holds a Lease (100%) from the landowner over Cononish Farm, County of Perth, Scotland UK�
The Company holds five Mines Royal Option Agreements (100%) with the Crown Estate Commissioners as
detailed below:
Glen Orchy: Location – counties of Perth and Argyll, Scotland UK
Glen Lyon: Location – counties of Perth and Argyll, Scotland UK
Inverliever: Location – counties of Dunbarton, Argyll and Perth, Scotland UK
Knapdale: Location – county of Argyll, Scotland UK
Ochils: Location – county of Clackmannan, Perth, Kinross and Stirling, Scotland UK
No tenements were acquired or disposed of during the year 1 although as previously noted, the Inverliever option
area will reduce in size on finalization of matters with the Crown Estates
No other beneficial interests are held in any farm-in or farm-out agreements
No other beneficial interests in farm-in or farm out agreements were acquired or disposed of during the quarter
Note 1: The size of the Inverliever option agreement will be reduced from 864km2 to 660km2 on finalisation of agreements
with the Crown
During 2014, the Crown indicated it was undertaking a review of the grant and renewal of its Option
Agreements� The Crown indicated by letter of 21 January 2015, subject to the conclusion of the appropriate
legal agreements that it intended to re-grant all the Company’s existing Options subject to a reduction in area
in the Inverliever option area� By letter of 14 September 2015, the Crown have offered to renew the existing
Options (including the area reduction mentioned) under the existing process pending finalisation of the legal
agreements relating to the new regime�
12
SCOTGOLD ANNUAL REPORT I 2015Review of Operations02 Directors’ Report
03
for the year ended 30 June 2015
DIRECTORS’ REPORT
Your Directors submit their report on the consolidated entity consisting of Scotgold Resources Limited and its
controlled entities (“Scotgold”) for the financial year ended 30 June 2015�
DIRECTORS
The following persons were Directors of Scotgold Resources Limited during the whole of the financial year and up
to the date of this report unless otherwise stated:
John Bentley
Non Executive Chairman
Alexander Littlejohn
Non Executive Chairman
Nathanial le Roux
Non Executive Chairman
Chris Sangster
Richard Gray
Managing Director
Managing Director
Nathanial le Roux
Non Executive Director
Chris Sangster
Phillip Jackson
Richard Harris
Non Executive Director
Non Executive Director
Non Executive Director
In office from
17/02/2009
10/10/2014
18/03/2015
17/10/2007
10/10/2014
10/10/2014
10/10/2014
14/08/2007
10/10/2014
In office to
10/10/2014
14/12/2014
present
10/10/2014
present
18/03/2015
present
present
present
PARTICULARS OF CURRENT DIRECTORS AND COMPANY SECRETARY
Nathaniel le Roux
Non-Executive Chairman MSc (Hons)
Qualifications and experience
Mr Nathaniel “Nat” le Roux spent most of his career in financial markets and was Chief Executive of IG Group plc
between 2002 and 2006� He is an independent director of the London Metal Exchange and a trustee of various
charities� Nat was born in Scotland and went to school in Edinburgh� He holds an MA in Law from Cambridge
University and an MSc is Anthropology from University College London�
Interest in Shares and Options
Fully Paid Shares ������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 456,564,373
Special Responsibilities
None�
Directorships held in ASX listed entities
None�
13
SCOTGOLD ANNUAL REPORT I 2015 Richard Gray
Managing Director BSc (Hons) ARSM, MBA
Qualifications and experience
Mr Richard Gray most recently served as Head of Mining & Expansion at Avocet Mining PLC� He has extensive
international experience, in both underground and open pit mine operations, and brings considerable operational
knowledge and management experience and skills to the Company, particularly in the development and
implementation of gold mining projects� He has previously held various roles at both majors and juniors within the
gold mining sector and his successful career has included 15 years working in South Africa for Gencor Ltd and
10 years in West Africa for Golden Star Resources Ltd� Whilst at Golden Star he served as General Manager of
Bogoso Gold Limited, General Manager of Golden Star Wassa Limited and Senior Vice President Operations of
Golden Star Resources Ltd� He holds a BSc (Hons) Mining Engineering from the Royal School of Mines, Imperial
College and an MBA from the Graduate School of Business, Cape Town University�
Interest in Shares and Options
Fully Paid Shares ������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 2,912,946
Special Responsibilities
Mr Gray is the CEO / Managing Director and is responsible for the day to day running of the company�
Directorships held in ASX listed entities
None�
Christopher Sangster
Non-executive Director BSc (Hons), ARSM, GDE
Qualifications and experience
Mr Sangster is a mining engineer with over 30 years experience in the mining industry� He has a Bachelor of
Science (Honours) Degree in Mining Engineering from the Royal School of Mines, Imperial College in London
and a GDE in Mineral Economics from the University of Witwatersrand� He currently lives close to the Company’s
exploration licences at Comrie in Scotland�
Mr Sangster’s career covers extensive production and technical experience at senior levels in both junior and
multi-national companies in gold, diamonds and base metals in Africa, UK and Canada and covers a wide range of
mining applications�
Between 1996 and 1999 Mr Sangster was General Manager for Caledonia Mining Corporation for the Cononish
Gold Project and a Director of Fynegold Exploration, where he was responsible for all aspects of the project
including feasibility study preparation, project due diligence, finance negotiations, exploration initiatives and
planning permission applications�
After 1999, Mr Sangster moved to the Zambian Copperbelt with Anglo American Plc / KCM Plc where he attained
the position of Vice President of Mining Services and in 2005 joined Australian Mining Consultants as a Principal
Mining Engineer� More recently, Mr Sangster was employed as General Manager for AIM – listed company
European Diamonds Plc�
Interest in Shares and Options
Fully Paid Shares ����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 17,150,213
Special Responsibilities
None�
Directorships held in ASX listed entities
None�
14
Directors’ Reportfor the year ended ended 30 June 201503SCOTGOLD ANNUAL REPORT I 2015 Phillip Jackson
Non-executive Director BJuris LLB MBA FAICD
Qualifications and experience
Mr Jackson is a barrister and solicitor with over 25 years legal and international corporate experience, especially
in the areas of commercial and contract law, mining law and corporate structuring� He has worked extensively in
the Middle East, Asia and the United States of America� In Australia, he was formerly managing legal counsel for a
major international mining company, and in private practice specialised in small to medium resource companies�
Mr Jackson was managing region legal counsel Asia-Pacific for a leading oil services company for 13 years� He
is now General Counsel for a major international oil and gas company� He has been a Director of a number of
Australian public companies, particularly mining companies� He has been Chairman of Aurora Minerals Limited
since it listed in 2004 and Desert Energy Limited, since it listed in August 2007�
His experience includes management, finance, accounting and human resources�
Interest in Shares and Options
Fully Paid Shares ������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 4,331,250
Special Responsibilities
Mr Jackson is Chairman of the Audit Committee�
Directorships held in ASX listed entities
Company Name
Aurora Minerals Limited
Peninsula Mines Limited
Predictive Discovery Limited
Richard Harris
Non-Executive Director BSC (Hons)
Qualifications and experience
Appointed
24 September 2003
12 December 2006
4 December 2014
Mr Richard Harris is a mining engineer with over 30 years’ experience in the mining and finance industries as a
mining analyst and public company director� He has considerable experience evaluating mining projects, advising,
restructuring and raising capital for mining companies� Previously he was a director of Australian silver miner
Alcyone Resources Ltd in 2009 after organising a syndicate group which recapitalized and relisted the company�
In 2005 - 2008 as Managing Director (later Executive Chairman) he founded and listed as an IPO, Eleckra Mines
Limited on the ASX� He holds a BSc (Hons) degree in Mining Engineering from University of Wales�
Interest in Shares and Options
Fully Paid Shares �����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������42,999,999
Special Responsibilities
None�
Directorships held in ASX listed entities
None�
15
Directors’ Reportfor the year ended ended 30 June 201503SCOTGOLD ANNUAL REPORT I 2015 03
Directors’ Report
for the year ended ended 30 June 2015
16
SCOTGOLD ANNUAL REPORT I 2015
Peter Newcomb
Company Secretary FCA (ICAEW)
Qualifications and experience
Mr Newcomb is a Fellow of the Institute of Chartered Accountants in England and Wales and a member of the
Institute of Chartered Accountants Australia and New Zealand with forty years professional and commercial
experience�
He has worked in a number of industries and locations including London, Scotland, Singapore and Perth� The
majority of his experience over the last twenty years has been in the resources industry in Western Australia�
SHARES UNDER OPTION
At the date of this report unissued shares of the Company under option are:
Number of shares under option
Exercise price
Expiry date
3,000,000
153,161
7,111,111
30,000,000
$0�080
£0�031
£0�045
$0�0069
31 March 2022
7 December 2015
28 March 2016
22 September 2017
OPERATING AND FINANCIAL REVIEW
A review of the operations of the consolidated entity during the financial year is contained in the Review of
Operations section of this Financial Report� The Company’s strategy in Scotland continues to focus on advancing
the 100% owned Cononish Gold and Silver Project to production whilst continuing to explore its large, highly
prospective land position around Cononish and elsewhere in Scotland which extends to some 4,300 km2�
PRINCIPAL ACTIVITIES
The principal activity of the consolidated entity during the year was mineral exploration in Scotland�
Operating Results
The consolidated loss after income tax for the financial year was $2,112,965 (2014: $1,466,149)�
Financial Position
At 30 June 2015 the Company had cash reserves of $802,649 (2014: $640,857)�
Dividends
No dividends were paid during the year and no recommendation is made as to dividends�
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
In the opinion of the Directors, there were no significant changes in the state of affairs of the consolidated entity
that occurred during the financial year under review not otherwise disclosed in this report or in the consolidated
financial statements�
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
The Company intends to continue its exploration activities with a view to the commencement of mining operations
as soon as possible�
Further information on likely developments in the operations of the consolidated entity and the expected results
of operations have not been included in this report because the Directors believe it would be likely to result in
unreasonable prejudice to the Company�
17
Directors’ Reportfor the year ended ended 30 June 201503SCOTGOLD ANNUAL REPORT I 2015 MEETINGS OF DIRECTORS
The following table sets out the number of meetings of the Company’s Directors held during the year ended 30
June 2015, and the number of meetings attended by each Director� These meetings included matters relating to
the Remuneration and Nomination Committees of the Company�
Number eligible to attend
Number attended
John Bentley
Alexander Littlejohn
Nathaniel le Roux
Richard Gray
Richard Harris
Chris Sangster
Phillip Jackson
-
1
3
3
3
3
3
-
1
3
3
3
3
3
AUDIT COMMITTEE
The Audit Committee is comprised of Mr Jackson who chaired one meeting of the audit committee during the year
ended 30 June 2015�
REMUNERATION REPORT (audited)
This report details the nature and amount of remuneration for each director and executive of Scotgold Resources
Limited�
Remuneration policy
The board policy is to remunerate Directors at market rates for time, commitment and responsibilities� The Board
determines payments to the 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
Directors’ fees that can be paid is subject to approval by shareholders in general meeting, from time to time�
Fees for Non-Executive Directors are not linked to the performance of the consolidated entity� However, to align
Directors’ interests with shareholders’ interests, the Directors are encouraged to hold securities in the Company�
The Company’s aim is to remunerate at a level that will attract and retain high-calibre Directors and employees�
Company officers and Directors are remunerated to a level consistent with size of the Company�
All remuneration paid to key management personnel is valued at the cost to the company and expensed�
Performance-based remuneration
The company does not pay any performance-based component of salaries�
Details of remuneration for year ended 30 June 2015
Directors’ Remuneration
No salaries, commissions, bonuses or superannuation were paid or payable to Directors during the year�
Remuneration was by way of fees paid monthly in respect of invoices issued to the Company by the Directors
or companies associated with the Directors in accordance with agreements between the Company and those
entities�
Details of the agreements are set out below�
Agreements in respect of remuneration of Directors:
Executive Directors
Richard Gray is on a contract dated 23 March 2015 which provides for a fixed salary and benefits, with a
termination period of six months� The remuneration is reviewed annually� At the date of this report the annual
remuneration for Richard Gray is £100,000� In the event of a termination of contract giving less notice than
provided for in this contract, the remaining notice period will be paid in full�
18
Directors’ Reportfor the year ended ended 30 June 201503SCOTGOLD ANNUAL REPORT I 2015 Non-Executive Directors
The Company’s constitution provides that the Non-Executive Directors may collectively be paid as remuneration
for their services a fixed sum not exceeding the aggregate sum determined by a general meeting� The aggregate
remuneration has been set at an amount of $300,000 per annum� A Director may be paid fees or other amounts
as the Directors determine where a Director performs special duties or otherwise performs services outside the
scope of the ordinary duties of a Director� A Director may also be reimbursed for out of pocket expenses incurred
as a result of their directorship or any special duties� Executive Directors may be paid on commercial terms as the
Directors see fit�
The total remuneration paid to key management personnel is summarised below:
Director/Secretary
Associated Company
Fees
$
Consulting
$
Total
$
Year ended 30 June 2014
John Bentley
Chris Sangster
Phillip Jackson
Peter Newcomb
Holihox Pty Ltd
Symbios Pty Ltd
Ptarmigan Natural Resources Ltd
Ptarmigan Natural Resources Ltd
Year ended 30 June 2015
John Bentley
Sandy Littlejohn
Nat le Roux
Richard Gray
Richard Harris
Chris Sangster
Chris Sangster
Phillip Jackson
Peter Newcomb
Post-employment
Holihox Pty Ltd
Symbios Pty Ltd
Golden Matrix Holdings Pty Ltd
91,982
-
33,000
-
124,982
16,531
12,532
29,799
-
27,265
92,646
-
35,850
-
214,623
-
241,348
-
170,100
411,448
-
-
-
139,292
-
142,874
61,590
-
170,100
513,856
91,982
241,348
33,000
170,100
536,430
16,531
12,532
29,799
139,292
27,265
235,520
61,590
35,850
170,100
728,479
Key management personnel share holdings
Balance 30
June 2013
Date of
appointment
Purchase
and Sales
Date of
resignation
Balance 30
June 2014
Year ended 30 June 2014
John Bentley
Chris Sangster
Phillip Jackson
Peter Newcomb
1,962,500
6,438,250
750,000
2,787,968
11,938,718
-
-
-
-
-
1,471,875
4,828,688
562,500
7,466,545
14,329,608
-
-
-
-
-
3,434,375
11,266,938
1,312,500
10,254,513
26,268,326
Year ended 30 June 2015
John Bentley
Sandy Littlejohn
Nat le Roux
Richard Gray
Richard Harris
Chris Sangster
Phillip Jackson
Peter Newcomb
Balance 30
June 2014
Date of
appointment
Purchase
and Sales
Date of
resignation
Balance 30
June 2015
3,434,375
-
-
-
-
11,266,938
1,312,500
10,254,513
26,268,326
-
2,666,667
87,333,333
-
29,874,933
-
-
-
119,874,933
9,111,228
2,666,667
369,231,040
2,912,946
13,125,066
5,883,275
3,018,750
1,666,666
407,615,638
(12,545,603)
(5,333,334)
-
-
-
-
-
-
(17,878,937)
-
-
456,564,373
2,912,946
42,999,999
17,150,213
4,331,250
11,921,179
535,879,960
19
Directors’ Reportfor the year ended ended 30 June 201503SCOTGOLD ANNUAL REPORT I 2015 Directors’ option holdings
No options were held by Directors in the years ended June 2014 and June 2015� Related party transactions
now disclosed in remuneration report� The consolidated entity does not have any full time Executive officers,
other than the Managing Director as detailed above� Aggregate amounts payable to Directors and their
personally related entities�
Consolidated
Entity
2015
$
Consolidated
Entity
2014
$
Accounts payable
54,182
187,653
There were no performance related payments made during the year� End of remuneration report�
ENVIRONMENTAL ISSUES
The consolidated entity has conducted exploration activities on mineral tenements� The right to conduct these
activities is granted subject to environmental conditions and requirements� The consolidated entity aims to ensure
a high standard of environmental care is achieved and, as a minimum, to comply with relevant environmental
regulations� There have been no known breaches of any of the environmental conditions�
INDEMNIFICATION OF DIRECTORS
During the financial year, the Company has not given an indemnity or entered into an agreement to indemnify any
of the Directors�
AUDITOR
HLB Mann Judd continues in office in accordance with section 327 of the Corporations Act 2001�
NON-AUDIT SERVICES
There were no non-audit services provided during the current year by our auditors, HLB Mann Judd�
AUDITOR’S INDEPENDENCE DECLARATION
The auditor’s independence declaration has been received for the year ended 30 June 2015 and forms part of the
Directors’ report�
20
Directors’ Reportfor the year ended ended 30 June 201503SCOTGOLD ANNUAL REPORT I 2015
PROCEEDINGS ON BEHALF OF COMPANY
No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any
proceedings to which the company is a party for the purpose of taking responsibility on behalf of the Company for
all or any part of those proceedings�
The Company was not a party to any such proceedings during the year�
Signed in accordance with a resolution of the Directors�
Richard Gray
Managing Director
Dated at Tyndrum, Scotland, this 29th day of September 2015
21
Directors’ Reportfor the year ended ended 30 June 201503SCOTGOLD ANNUAL REPORT I 2015
22
SCOTGOLD ANNUAL REPORT I 2015
Auditor’s
Independence
Declaration
04
for the year ended 30 June 2015
SCOTGOLD ANNUAL REPORT I 2015
23
05
Statement of
comprehensive Income
for the year ended 30 June 2015
Revenue
Administration costs
Interest expense
Unwinding of convertible note discount
Depreciation and profit on disposal of property, plant and equipment
Exploration expensed as incurred
Employee and consultant costs
Listing and share registry costs
Legal fees
Borrowing costs
Share-based payments
Office and communication costs
Other expenses
CONSOLIDATED
2015
$
2014
$
10,607
20,413
Notes
2
11
3
19
(380,663)
(91,909)
(110,338)
(19,097)
(393,196)
(290,597)
(174,758)
(185,448)
(174,419)
(13,615)
(106,503)
(183,029)
(301,644)
(192,959)
-
(20,545)
-
(236,399)
(199,137)
(93,416)
(5,545)
(121,154)
(105,642)
(255,001)
LOSS BEFORE INCOME TAX BENEFIT
(2,112,965)
(1,511,029)
Income tax benefit
LOSS FOR THE YEAR
Other Comprehensive Income
Items that may be reclassified to Profit or Loss
4
-
44,880
(2,112,965)
(1,466,149)
Exchange difference on translation of foreign subsidiaries
25,466
(14,633)
Total comprehensive result for the year
(2,087,499)
(1,480,782)
Basic (loss) per share (cents per share)
23
(0�25)
(0�44)
These financial statements should be read in conjunction with the accompanying notes
24
SCOTGOLD ANNUAL REPORT I 2015 Statement
of financial
Position
06
as at 30 June 2015
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other current assets
Total Current Assets
NON-CURRENT ASSETS
Trade and other receivables
Plant and equipment
Mineral exploration and evaluation
Total Non Current assets
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Other current liabilities
Interest bearing liabilities
TOTAL LIABILITIES
Interest bearing liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Notes
5
6
7
6
8
9
10
10
11
11
12
13
13
CONSOLIDATED
2015
$
802,649
38,440
23,712
2014
$
640,857
169,989
13,026
864,801
823,872
102,649
104,605
90,335
121,301
14,794,913
13,894,769
15,002,167
14,106,405
15,866,968
14,930,277
343,853
71,920
-
415,773
1,353,783
1,353,783
353,598
69,060
3,031,286
3,453,944
-
-
1,769,556
3,453,944
14,097,412
11,476,333
22,711,529
18,463,121
1,463,805
978,169
(10,077,922)
(7,964,957)
14,097,412
11,476,333
These financial statements should be read in conjunction with the accompanying notes
25
SCOTGOLD ANNUAL REPORT I 2015 07 Statement of
changes in Equity
for the year ended 30 June 2015
CONSOLIDATED
Total Equity
Year Ended 30 June 2014
Balance 1 July 2013
Placements (Note 12)
Entitlements Issue
Options issued
Share issue expenses
Total comprehensive result for the year
As at 30 June 2014
Year Ended 30 June 2015
Balance 1 July 2014
Placements (Note 12)
Entitlements Issue (Note 12)
Options issued
Share issue expenses
Equity portion of notes issued (Note 11)
Total comprehensive result for the year
As at 30 June 2015
Reserves
Year Ended 30 June 2014
Balance 1 July 2013
Options issued
Total comprehensive result for the year
As at 30 June 2014
Year Ended 30 June 2015
Issued
Capital
$
Accumulated
Losses
$
Reserves
$
Total
Equity
$
16,766,418
925,270
830,872
-
(59,439)
-
18,463,121
18,463,121
1,586,215
2,861,177
-
(198,984)
-
-
22,711,529
Options
Reserve
$
917,000
121,154
-
1,038,154
(6,498,808)
-
-
-
-
(1,466,149)
(7,964,957)
(7,964,957)
-
-
-
-
-
(2,112,965)
(10,077,922)
871,648
-
-
121,154
-
(14,633)
978,169
978,169
-
-
103,615
-
356,555
25,466
1,463,805
Convertible
Note
Reserve
$
Foreign
Currency
Translation
Reserve
$
-
-
-
-
(45,352)
-
(14,633)
(59,985)
(59,985)
-
-
25,466
(34,519)
11,139,258
925,270
830,872
121,154
(59,439)
(1,480,782)
11,476,333
11,476,333
1,586,215
2,861,177
103,615
(198,984)
356,555
(2,087,499)
14,097,412
Total
Reserves
$
871,648
121,154
(14,633)
978,169
978,169
103,615
356�555
25,466
1,463,805
Balance 1 July 2014
Options issued
Equity portion of notes issued (Note 11)
Total comprehensive result for the year
As at 30 June 2015
1,038,154
103,615
-
-
1,141,769
-
-
356,555
-
356,555
These financial statements should be read in conjunction with the accompanying notes
26
SCOTGOLD ANNUAL REPORT I 2015 Statement
of
Cash Flows
08
for the year ended 30 June 2015
CONSOLIDATED
2015
$
2014
$
Notes
CASH FLOWS FROM OPERATING ACTIVITIES
Payment to suppliers
Interest income received
(1,106,066)
(1,044,010)
5,709
9,756
Net Cash Outflow From Operating Activities
19
(1,100,357)
(1,034,254)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for exploration expenditure
Purchase of property, plant and equipment
(1,274,409)
(596,402)
(2,400)
2,641
Net Cash Outflow From Investing Activities
(1,276,809)
(593,761)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares and options
Share and option issue transaction costs
Borrowings net of costs
Loan repayments
4,136,178
1,756,142
(198,984)
1,600,000
(3,031,286)
(59,439)
-
-
Net Cash Inflow From Financing Activities
2,505,908
1,696,703
Net increase in cash held
128,742
68,688
Effect of exchange rate fluctuations on cash and cash equivalents
33,050
1,916
Cash and cash equivalents at the beginning of this financial year
640,857
570,253
Cash and cash equivalents at the end of this financial year
5
802,649
640,857
These financial statements should be read in conjunction with the accompanying notes
27
SCOTGOLD ANNUAL REPORT I 2015 09
Notes
to and forming part of
the Financial Statements
for the year ended 30 June 2015
NOTE 1 – STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation
These financial statements are general purpose financial statements, which have been prepared in accordance
with the requirements of the Corporations Act 2001, Accounting Standards and Interpretations and comply with
other requirements of the law� Cost is based on the fair value of the consideration given in exchange for assets�
The financial statements have also been prepared on a historical cost basis� The financial statements are presented
in Australian dollars�
The company is a listed public company, incorporated in Australia and operating in Australia and Scotland� The
entity’s principal activity is mineral exploration�
The accounting policies detailed below have been consistently applied to all of the years presented unless
otherwise stated� The financial statements are for the consolidated entity consisting of Scotgold Resources and its
subsidiaries�
Reporting Basis and Conventions
The financial statements have been prepared on the basis of accounting principles applicable to a going concern,
which assumes the commercial realisation of the future potential of the consolidated entity’s assets and the
discharge of their liabilities in the normal course of business�
The Board considers that the consolidated entity is a going concern and recognises that additional funding is
required to ensure that the consolidated entity can continue to fund its operations and further develop their mineral
exploration and evaluation assets during the twelve month period from the date of this financial report� Such
additional funding as occurred during the year ended 30 June 2015 as disclosed in Note 12, can potentially be
derived from either one or a combination of the following:
• The placement of securities under the ASX Listing Rule 7�1 or otherwise;
• An excluded offer pursuant to the Corporations Act 2001; or
• The sale of assets�
Accordingly, the Directors believe the consolidated entity will obtain sufficient funding to enable it and the
consolidated entity to continue as going concerns and that it is appropriate to adopt that basis of accounting in the
preparation of the financial report�
However, the existence of the above conditions constitute a material uncertainty that may cast significant doubt
in relation to the consolidated entity’s ability to continue as a going concern and whether it will therefore realise its
assets and extinguish its liabilities in the normal course of business�
Statement of Compliance
The financial report was authorised for issue on 29 September 2015�
The financial report complies with Australian Accounting Standards, which include Australian equivalents to International
Financial Reporting Standards (AIFRS)� Compliance with AIFRS ensures that the financial report, comprising the financial
statements and notes thereto, complies with International Financial Reporting Standards (IFRS)�
Adoption of new and revised standards
Changes in accounting policies on initial application of Accounting Standards
In the year ended 30 June 2015, the Directors have reviewed all of the new and revised Standards and
Interpretations issued by the AASB that are relevant to the consolidated entity’s operations and effective for the
current annual reporting period�
It has been determined by the Directors that there is no impact, material or otherwise, of the new and revised
Standards and Interpretations on its business and, therefore, no change is necessary to consolidated entity
accounting policies�
28
SCOTGOLD ANNUAL REPORT I 2015 The Directors have also reviewed all new Standards and Interpretations that have been issued but are not yet
effective for the year ended 30 June 2015� As a result of this review the Directors have determined that there is no
impact, material or otherwise, of the new and revised Standards and Interpretations on the consolidated entity’s
business and, therefore, no change necessary to the consolidated entity’s accounting policies�
Accounting Policies
a ) Basis of Consolidation
A controlled entity is any entity controlled by Scotgold Resources Limited� Control exists where Scotgold
Resources Limited has the capacity to dominate the decision-making in relation to the financial and operating
policies of another entity so that the other entity operates with Scotgold Resources Limited to achieve the
objectives of Scotgold Resources Limited� All controlled entities have a 30 June financial year-end�
All intercompany balances and transactions between entities in the consolidated entity, including any unrealised profit
or losses, have been eliminated on consolidation� Accounting policies of subsidiaries have been changed where
necessary to ensure consistencies with those policies applied by the parent entity�
Where controlled entities have entered or left the consolidated entity during the year, their operating results have
been included from the date control was obtained or until the date control ceased�
b ) Income Tax
The charge for current income tax expenses is based on the profit for the year adjusted for any non-assessable
or disallowable items� It is calculated using tax rates that have been enacted or are substantively enacted by the
balance date�
Deferred tax is accounted for using the liability method in respect of temporary differences arising between the tax
bases of assets and liabilities and their carrying amount in the financial statements� No deferred income tax will be
recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no
effect on accounting or taxable profit or loss�
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or
liability is settled� Deferred tax is credited in the statement of comprehensive income except where it relates to
items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity�
Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available
against which deductible temporary difference can be utilised�
The amount of benefits brought to account or which may be realised in the future is based on the assumption that
no adverse change will occur in income taxation legislation and the anticipation that the consolidated entity will derive
sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility
imposed by the law�
c ) Plant and Equipment
Each class of plant and equipment is carried at cost less, where applicable, any accumulated depreciation�
Plant and equipment are measured on the cost basis less depreciation and impairment losses�
The carrying amount of plant and equipment is reviewed annually by Directors to ensure it is not in excess of the
recoverable amount from these assets� The recoverable amount is assessed on the basis of the expected net cash
flows which will be received from the assets employment and subsequent disposal� The expected net cash flows
have been discounted to their present values in determining recoverable amounts�
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future benefits associated with the item will flow to the consolidated entity and the
cost of the item can be measured reliably� All other repairs and maintenance are charged to the statement of
comprehensive income during the financial period in which they are incurred�
Depreciation
The depreciable amount of all fixed assets including capitalised lease assets, but excluding computers, is
depreciated on a reducing balance commencing from the time the asset is held ready for use� Computers are
depreciated on a straight line basis over their useful lives to the consolidated entity commencing from the time the
asset is held ready for use�
29
Notes to and forming part of the Financial Statements for the year ended ended 30 June 201509SCOTGOLD ANNUAL REPORT I 2015 The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset:
Plant and Equipment
Depreciation Rate:
15 – 50%
The assets residual values and useful lives are reviewed, and adjusted if appropriate, at each balance date�
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is
greater than its estimated recoverable amount�
Gains and losses on disposals are determined by comparing proceeds with the carrying amount� These gains and
losses are included in the statement of comprehensive income� When revalued assets are sold, amounts included
in the revaluation reserve relating to that asset are transferred to retained earnings / accumulated losses�
d ) Exploration and Evaluation Expenditure
Exploration and evaluation expenditure incurred is either written off as incurred or accumulated in respect of each
identifiable area of interest� Tenement acquisition costs are initially capitalised� Costs are only carried forward to
the extent that they are expected to be recouped through the successful development of the areas, sale of the
respective areas of interest or where activities in the area have not yet reached a stage which permits reasonable
assessment of the existence of economically recoverable reserves�
Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the
decision to abandon the areas is made�
When production commences, the accumulated costs for the relevant area of interest are amortised over the life of
the area according to the rate of depletion of the economically recoverable reserves�
Exploration and evaluation expenditure is reclassified to development expenditure once the technical feasibility and
commercial viability of extracting the related mineral reserve is demonstrable�
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry
forward costs in relation to that area of interest�
Restoration, rehabilitation and environmental costs necessitated by exploration and evaluation activities are
expensed as incurred and treated as exploration and evaluation expenditure�
e ) Impairment of Assets
At each reporting date, the Directors review the carrying values of its tangible and intangible assets to determine
whether there is any indication that those assets have been impaired� If such an indication exists, the recoverable
amount of the assets, being the higher of the asset’s fair value less costs to sell and value-in-use, is compared to
the asset’s carrying value� Any excess of the asset’s carrying value over its recoverable amount is expensed to the
statement of comprehensive income�
Where it is not possible to estimate the recoverable amount of an individual asset, the consolidated entity estimates
the recoverable amount of the cash-generating unit to which the asset belongs�
f ) Provisions
Provisions are recognised where there is 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�
g ) Cash and Cash Equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly liquid
investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of
change in value�
h ) Revenue
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the
financial assets�
30
Notes to and forming part of the Financial Statements for the year ended ended 30 June 201509SCOTGOLD ANNUAL REPORT I 2015 i )
Goods and Services Tax (GST) and Value Added Tax (VAT)
Revenues, expenses and assets are recognised net of the amount of GST or VAT, except where the amount
of GST or VAT incurred is not recoverable from the relevant authority� In these circumstances the GST or VAT
is recognised as part of the cost of acquisition of the asset or as part of an item in expenses� Receivables and
payables in the statement of financial position are shown inclusive of GST or VAT�
j )
Issued Capital
Issued and paid up capital is recognised at the fair value of the consideration received by the Company� Any
transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction of the share
proceeds received�
k ) Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current financial year�
l )
Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker� The chief operating decision maker, who is responsible for allocating resources and assessing
performance of the operating segments has been identified as the Board of Directors of Scotgold Resources
Limited�
m ) Share based payments – shares and options
The fair value of shares and share options granted is recognised as an expense with a corresponding increase in
equity� Fair value is measured at grant date and recognised over the period during which the grantees become
unconditionally entitled to the shares or share options�
The fair value of share grants at grant date is determined by reference to the share price at that time�
The fair value of share options at grant date is determined using a Black-Scholes option pricing model that takes
into account the exercise price, the term of the option, any vesting and performance criteria, the share price at
grant date, the expected price volatility of the underlying share, the expected dividend yield and the risk free rate
for the term of the option�
Upon the exercise of the option, the balance of the share-based payments reserve relating to the option is
transferred to share capital�
n ) Foreign currency translation
Both the functional and presentation currency of Scotgold Resources Limited and its subsidiaries is Australian
dollars� Each entity in the Group determines its own functional currency and items included in the financial
statements of each entity are measured using that functional currency�
Transactions in foreign currencies are initially recorded in the functional currency by applying the exchange
rates ruling at the date of the transaction� Monetary assets and liabilities denominated in foreign currencies are
retranslated at the rate of exchange ruling at the balance date�
All exchange differences in the consolidated financial report are taken to profit or loss with the exception of differences
on foreign currency borrowings that provide a hedge against a net investment in a foreign entity� These are taken
directly to equity until the disposal of the net investment, at which time they are recognised in profit or loss�
Tax charges and credits attributable to exchange differences on those borrowings are also recognised in equity�
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rate as at the date of the initial transaction�
Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the
date when the fair value was determined� Translation differences on assets and liabilities carried at fair value are
reported as part of the fair value gain or loss�
31
Notes to and forming part of the Financial Statements for the year ended ended 30 June 201509SCOTGOLD ANNUAL REPORT I 2015 The functional currency of the foreign operation, Scotgold Resources is Pounds Sterling (£)�
As at the balance date the assets and liabilities of these subsidiaries are translated into the presentation currency of
Scotgold Resources Limited at the rate of exchange ruling at the balance date and income and expense items are
translated at the average exchange rate for the period, unless exchange rates fluctuated significantly during that
period, in which case the exchange rates at the dates of the transactions are used�
The exchange differences arising on the translation are taken directly to a separate component of equity, being
recognised in the foreign currency translation reserve�
On disposal of a foreign entity, the deferred cumulative amount recognised in equity relating to that particular
foreign operation is recognised in profit or loss�
In addition, in relation to the partial disposal of a subsidiary that does not result in the Group losing control over
the subsidiary, the proportionate share of accumulated exchange differences are re-attributed to non-controlling
interests and are not recognised in profit or loss� For all other partial disposals (i�e� partial disposals of associates or
jointly controlled entities that do not result in the Group losing significant influence or joint control), the proportionate
share of the accumulated exchange differences is reclassified to profit or loss�
o ) Critical accounting estimates and judgements
The application of accounting policies requires the use of judgements, estimates and assumptions about carrying
values of assets and liabilities that are not readily apparent from other sources� The estimates and associated
assumptions are based on historical experience and other factors that are considered to be relevant� Actual results
may differ from these estimates�
Key Estimates – Impairment
The Directors assess impairment at each reporting date by evaluating conditions specific to the consolidated entity
that may lead to impairment of assets� Where an impairment trigger exists, the recoverable amount of the asset is
determined� Value-in-use calculations performed in assessing recoverable amounts incorporate a number of key
estimates�
Impairment of mineral exploration and evaluation
At 30 June 2015, the Group had capitalised mineral exploration and evaluation expenditure of $14,794,913 (2013:
$13,894,769)� The Company announced on ASX on 5 August 2015, a Bankable Feasibility Study on the Cononish
Gold and Silver Project which reported a base case (US$1,100 per ounce) net present value of the project of £23
million�
AASB 6 Exploration for and Evaluation of Mineral Resources requires an assessment of recoverable amount to be
completed whenever facts and circumstance suggest that the carrying amount of an exploration asset may exceed
its recoverable amount� Recoverable amount is defined within AASB 136 Impairment of Assets as the higher of fair
value less costs to sell and value-in-use� Value-in-use is determined on a pre-tax basis and is the present value of
the future cash flows expected to be derived from the asset or cash-generating unit�
As AASB 136 requires recoverable amount to be determined on the basis of the higher of value-in-use and fair
value less costs to sell, the directors have instructed the independent valuers to prepare the recoverable amount
calculation on the basis of value-in-use� The value determined by the independent valuers on this basis is £23
million� This is in excess of the carrying value of the associated exploration expenditures at 30 June 2015 and
therefore, in accordance with AASB 136, no impairment has been recorded�
NOTE 2 – REVENUE
Revenue
Interest received
Other income
Total revenue
32
2015
$
2014
$
5,709
4,898
10,607
9,758
10,655
20,413
Notes to and forming part of the Financial Statements for the year ended ended 30 June 201509SCOTGOLD ANNUAL REPORT I 2015 NOTE 3 - LOSS FROM ORDINARY ACTIVITIES BEFORE TAX EXPENSES
Expenses
Borrowing costs expensed
Total borrowing cost expensed
Depreciation of non-current assets
Plant and Equipment
Motor vehicles
Office furniture and equipment
Total depreciation of non-current assets
Profit on disposal of property, plant and equipment
NOTE 4 - INCOME TAX
2015
$
174,419
174,419
14,534
4,530
33
19,097
2014
$
5,545
5,545
17,589
5,562
35
23,186
-
2,641
2015
$
2014
$
The prima facie tax benefit at 30% on loss from ordinary activities is reconciled to the income tax benefit in the
financial statements as follows:
Loss from ordinary activities
Prima facie income tax benefit at 30%
Tax effect of permanent differences
Option based payments
Share issue costs amortised
R & D tax offset refund received
Other non-deductible expenses
2,112,965
1,466,149
633,890
439,845
(31,085)
24,389
-
(144)
(36,346)
48,772
(44,880)
(465)
Income tax benefit adjusted for permanent differences
627,050
406,926
Deferred tax asset not brought to account
(627,050)
(362,046)
Income tax benefit
INCOME TAX BENEFIT
-
44,880
The directors estimate the cumulative unrecognised deferred tax asset attributable to the company and its
controlled entity at 30% is as follows:
UNRECOGNISED DEFERRED TAX ASSETS
Revenue losses after permanent differences
Capital raising costs yet to be claimed
1,941,836
1,701,215
66,151
30,845
2,007,987
1,732,060
33
Notes to and forming part of the Financial Statements for the year ended ended 30 June 201509SCOTGOLD ANNUAL REPORT I 2015 The potential deferred tax asset has not been brought to account in the financial report at 30 June 2015 as the
Directors do not believe it is appropriate to regard the realisation of the asset as probable� This asset will only be
obtained if:
a) The company and its controlled entity derive future assessable income of an amount and type sufficient to
enable the benefit from the deductions for the tax losses and the unrecouped exploration expenditure to be
realised;
b) The company and its controlled entity continue to comply with the conditions for deductibility imposed by
tax legislation; and
c) No changes in tax legislation adversely affect the company and its controlled entity in realising the benefit
from the deductions for the tax losses and unrecouped exploration expenditure�
Franking Credits
No franking credits are available at balance date for the subsequent financial year�
NOTE 5 – CASH AND CASH EQUIVALENTS
Cash at bank and on hand
NOTE 6 – TRADE AND OTHER RECEIVABLES
Current
GST / VAT receivable
Other receivables
Non-current
Bond on Tenement
NOTE 7 – OTHER CURRENT ASSETS
Prepayments
NOTE 8 – PLANT AND EQUIPMENT
Plant and equipment
Cost
Accumulated Depreciation
Movement for the year
Opening balance
Additions
Disposals
Depreciation expensed
Closing balance
34
2015
$
2014
$
802,649
640,857
2015
$
2014
$
35,095
3,345
38,440
37,626
132,363
169,989
102,649
90,335
2015
$
2014
$
23,712
13,026
2015
$
2014
$
351,550
(246,945)
104,605
349,150
(227,849)
121,301
121,301
2,401
-
(19,097)
104,605
144,487
-
-
(23,186)
121,301
Notes to and forming part of the Financial Statements for the year ended ended 30 June 201509SCOTGOLD ANNUAL REPORT I 2015
NOTE 9 – MINERAL EXPLORATION AND EVALUATION
Opening balance
Total expenditure during the year
Expenditure expensed as incurred
Closing balance
2015
$
2014
$
13,894,769
13,348,454
1,293,340
(393,196)
546,315
-
14,794,913
13,894,769
The ultimate recoupment of exploration expenditure carried forward is dependent upon successful development
and commercial exploitation, or sale of the respective areas�
NOTE 10 – TRADE AND OTHER PAYABLES
Trade creditors
Other accruals
Trade creditors and accruals relating to exploration expenditure
Trade creditors and accruals relating to administration
2015
$
343,853
71,920
415,773
140,927
274,846
415,773
2014
$
353,598
69,060
422,658
106,246
316,412
422,658
Trade creditors are non-interest bearing and are normally settled on 30 day terms (2014: 30 days)�
NOTE 11 – INTEREST BEARING LIABILITIES
Convertible Notes
2015
$
2014
$
The Company has entered into Convertible Note Agreements (Convertible Notes) on the terms and conditions
set out in the Company’s Notice of Meeting dated 23 June 2014 (and approved by Shareholders at the General
Meeting on 30 July 2014)�
$1,000,000 has been advanced to the Company under the Convertible Note Agreements� The funds raised by the
Convertible Notes were used as part-repayment of the RMB Facility and for working capital�
The Convertible Notes have a repayment date of 24 months from their date of issue, with an interest rate of 1% per annum�
The holders of the Convertible Notes may elect to convert the Convertible Notes (in part or in full) into ordinary shares in the
Company at a conversion price of $0�006 per share� For every share issued on conversion of the Convertible Notes, one
free attaching option will be issued, exercisable at $0�012 on or before 31 March 2016� Full details of the Convertible Notes
and attaching options were set out in the Company’s Notice of Meeting dated 23 June 2014�
The Company has also entered into a Convertible Note Agreement on the terms and conditions set out in the
Company’s announcement on 30 March 2015�
$600,000 has been advanced to the Company under the Convertible Note Agreement� The funds raised by the
Convertible Note were used for working capital purposes�
The Convertible Note has a repayment date of 30 September 2016, with an interest rate of 1% per annum� The
holder of the Convertible Notes may elect to convert the Convertible Notes (in part or in full) into ordinary shares in
the Company at a conversion price of £0�005 per share�
The balance outstanding at 30 June 2015 is made up as follows:
Principal sum drawn
Equity component taken to reserves
Unwinding of discount
First draw
Second draw
1,000,000
(243,121)
91,708
848,587
600,000
(113,434)
18,630
505,196
Total
1,600,000
(356,555)
110,338
1,353,783
35
Notes to and forming part of the Financial Statements for the year ended ended 30 June 201509SCOTGOLD ANNUAL REPORT I 2015 NOTE 12 – ISSUED CAPITAL
a) Issued capital
2015
$
2014
$
1,135,392,472 ordinary shares fully paid (2014: 483,889,318)
22,711,529
18,463,121
(b) Movements in ordinary share capital of the Company were as follows:
Date
Details
Shares
Value
(cents)
$
Balance at 30 June 2013
211,565,739
16,766,418
20/09/2013
Placement
06/01/2014
Entitlements Issue
23/01/2014
Entitlements Issue Shortfall
05/03/2014
Placement
21/03/2014
Placement
Transaction costs arising on share issues
10,000,000
148,519,802
17,654,502
90,000,000
6,149,275
-
483,889,318
2�0000
0�5000
0�5000
0�7500
0�8175
200,000
742,599
88,273
675,000
50,270
(59,439)
18,463,121
Balance at 30 June 2014
483,889,318
18,463,121
06/08/2014
Placement
06/08/2014
Placement
24/09/2014
Placement
26/11/2014
Entitlements Issue
15/12/2014
Entitlements Issue Shortfall
06/05/2015
Placement
56,874,933
18,765,318
9,000,000
194,965,196
281,897,707
90,000,000
0�7500
1�0000
0�8000
0�6000
0�6000
1�0000
Transaction costs arising on share issues
Balance at 30 June 2015
-
1,135,392,472
Shares issued for non-cash consideration amounted to $311,215 during the year�
426,562
187,653
72,000
1,169,791
1,691,386
900,000
(198,984)
22,711,529
(c) Movements in options were as follows:
Balance at 30 June 2013
Options vesting – Incentive options
Options expiring 7 June 2014
Balance at 30 June 2014
Balance at 30 June 2014
Options vesting – Incentive options
Options expiring 30 September 2017
Balance at 30 June 2015
36
Number
$
51,802,604
-
(15,316,110)
917,000
121,154
-
36,486,494
1,038,154
36,486,494
1,038,154
-
30,000,000
13,615
90,000
66,486,494
1,141,769
Notes to and forming part of the Financial Statements for the year ended ended 30 June 201509SCOTGOLD ANNUAL REPORT I 2015
Option exercise dates and prices
Number
Exercise Price
Expiry Date
26,222,222
3,000,000
153,161
7,111,111
30,000,000
£0�0450
$0�0800
£0�0310
£0�0450
£0�0069
24 July 2015
31 March 2022
7 December 2015
28 March 2016
30 September 2017
(d) Voting and dividend rights
Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to the
number of shares held�
At shareholder’s meetings each ordinary share is entitled to one vote when a poll is called, otherwise each
shareholder has one vote on a show of hands�
NOTE 13 – RESERVES AND ACCUMULATED LOSSES
Accumulated Losses
Balance at beginning of the year
Net loss from ordinary activities
Balance at end of the year
Foreign Currency Translation Reserve
Balance at beginning of the year
Reserve arising on translation of foreign currency subsidiary
Balance at end of the year
Share Option Reserve
Balance at beginning of the year
Options vesting – Incentive options
Reserve arising on Black Scholes valuation of options
Balance at end of the year
Convertible Note Reserve
Balance at beginning of the year
Reserve arising on issue of convertible notes
Balance at end of the year
Nature and purpose of reserves
Foreign currency translation reserve
2015
$
2014
$
(7,964,957)
(6,498,808)
(2,112,965)
(1,466,149)
(10,077,922)
(7,964,957)
(59,985)
25,466
(34,519)
1,038,154
13,615
90,000
(45,352)
(14,633)
(59,985)
917,000
121,154
-
1,141,769
1,038,154
-
356,555
356,555
-
-
-
The foreign currency translation reserve is used to record exchange differences arising from the translation of the
financial statements of foreign subsidiaries�
Share Option Reserve
The share option reserve is used to record the assessed value of options issued�
Convertible Note Reserve
The convertible note reserve is used to account for the equity component of the convertible notes�
37
Notes to and forming part of the Financial Statements for the year ended ended 30 June 201509SCOTGOLD ANNUAL REPORT I 2015 NOTE 14 – SHARE BASED PAYMENTS
During the current and prior year share based payments in the form of shares and options were made as follows�
Grant Date
Purpose of issue
Options
8/10/2012
Consultants incentive options
24/9/2014
RMB Facility extension options
2015
Number
-
30,000,000
30,000,000
Shares
6/8/2014
Directors’ fees settled in shares
18,765,318
6/8/2014
Consultant’s fee settled in shares
24/9/2014
RMB Facility extension shares
6,874,933
9,000,000
2015
Value
each
(cents)
-
-
Total
($)
187,653
51,562
72,000
346,402,251
311,215
2014
Value
each
(cents)
8�0
-
Total
($)
-
-
-
2014
Number
3,000,000
-
3,000,000
-
-
-
-
Consultants’ incentive options vest as shown below and for the purposes of valuing the share based payment the
total value is prorated using the number of days in the vesting period to 30 June 2015�
Grant
date
Vesting
date
Number
Volatility
Value
date
Expiry
date
Price
(cents)
Non-
marketability
discount
8/10/12 31/03/13 1,000,000
111% 31/03/13 31/03/22
8/10/12 31/03/14 1,000,000
111% 31/03/14 31/03/22
8/10/12 31/03/15 1,000,000
111% 31/03/15 31/03/22
8�0
8�0
8�0
30%
30%
30%
3,000,000
Value
2014
$
44,923
44,923
31,308
Value
2015
$
-
-
13,615
121,154
13,615
RMB facility extension option values were derived using the Black Scholes model using the following parameters:
Grant
date
Vesting
date
Number
Volatility
Value
date
Expiry
date
Price
(cents)
Non-
marketability
discount
Value
2014
$
24/9/14
24/9/14 30,000,000 120% 24/9/14
22/9/17
1�3
30%
30,000,000
-
-
Value
2015
$
90,000
90,000
The share options outstanding at the end of the year had a weighted average exercise price of 1�9 cents per option
(2014: 6�9 cents per option)�
The weighted average fair value of options granted or vested during the year was 0�3 cents per option (2014: 4�0
cents per option)�
38
Notes to and forming part of the Financial Statements for the year ended ended 30 June 201509SCOTGOLD ANNUAL REPORT I 2015 NOTE 15 - COMMITMENTS FOR EXPENDITURE
(a) Mineral Tenement Leases
In order to maintain current rights of tenure to mining tenements, the consolidated entity will be required to outlay in
the year ending 30 June 2016 amounts of $58,250 in respect of minimum tenement expenditure requirements and
lease rentals� The obligations are not provided for in the financial report and are payable as follows:
Not later than one year
Later than 1 year but not later than 2 years
Later than 2 years but not later than 5 years
Minimum
expenditure
$
27,000
27,000
81,000
Licence
Fee
$
31,250
31,250
93,750
135,000
156,250
Total
$
58,250
58,250
174,750
291,250
The Company has a number of avenues available to continue the funding of its current exploration program and as
and when decisions are made, the Company will disclose this information to shareholders�
NOTE 16 - CONTINGENT LIABILITIES
The Company has entered into a donations agreement with the Strathfillan Community Development Trust
(”SCDT”) pursuant to which the Company will work with SCDT to provide additional facilities and opportunities
for the community served by SCDT and provide funding in respect of the same of up to £350,000� This liability is
contingent upon starting the development as defined under the Planning conditions and Decision letter�
Scotgold Resources Limited and its controlled entities have no other known material contingent liabilities as at 30
June 2015�
NOTE 17 - INVESTMENT IN CONTROLLED ENTITIES
Parent
Scotgold Resources Limited
42 127 042 773
Australia
100%
$
N/A
Registered
Number
Country of
Incorporation
Interest Held
Value of
investment
Subsidiary
Scotgold Resources Limited
SGZ France SAS
Scotgold Resources Portugal
Subsidiary of subsidiary
Fynegold Exploration Limited
SC 309525
804 686 582
513 303 057
Scotland
France
Portugal
100%
100%
100%
5,491,881
288,434
1,490
SC 084497
Scotland
100%
-
NOTE 18 - SEGMENT INFORMATION
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker� The chief operating decision maker, who is responsible for allocating resources and
assessing performance of the operating segments, has been identified as the Board of Directors of Scotgold
Resources Limited�
39
Notes to and forming part of the Financial Statements for the year ended ended 30 June 201509SCOTGOLD ANNUAL REPORT I 2015 NOTE 19 - NOTES TO THE STATEMENT OF CASH FLOWS
Reconciliation of loss after income tax to net operating cash flows
Loss from ordinary activities
Depreciation
Profit on sale of fixed assets
Exploration expenditure expensed
Share-based payments
Unwinding of convertible note discount
Non-cash movement on reserves
Movement in assets and liabilities
Receivables
Other current assets
Payables
Revaluation effect of foreign currency working capital
Net cash used in operating activities
NOTE 20 - KEY MANAGEMENT PERSONNEL
(a) Directors
The names and positions of Directors in office at any time during the financial year are:
2015
$
2014
$
(2,112,965)
(1,466,149)
19,097
-
393,196
311,215
110,338
103,615
23,186
(2,641)
-
423,832
121,154
(1,175,504)
(900,618)
119,236
(10,686)
(41,566)
8,164
(151,052)
11,592
22,374
(16,550)
(1,100,356)
(1,034,254)
John Bentley
Non Executive Chairman
Alexander Littlejohn
Non Executive Chairman
Nathanial le Roux
Non Executive Chairman
Chris Sangster
Richard Gray
Managing Director
Managing Director
Nathanial le Roux
Non Executive Director
Chris Sangster
Phillip Jackson
Richard Harris
Non Executive Director
Non Executive Director
Non Executive Director
(b) Remuneration Polices
In office from
17/02/2009
10/10/2014
18/03/2015
17/10/2007
10/10/2014
10/10/2014
10/10/2014
14/08/2007
10/10/2014
In office to
10/10/2014
14/12/2014
present
10/10/2014
present
18/03/2015
present
present
present
Remuneration policies are disclosed in the Remuneration Report which is contained in the Directors’ Report�
(c) Directors’ Remuneration
No salaries, commissions, bonuses or superannuation were paid or payable to Directors during the year�
Remuneration was by way of fees paid monthly in respect of invoices issued to the Company by the Directors or
Companies associated with the Directors in accordance with agreements between the Company and those entities�
The Directors are entitled to reimbursement of out-of-pocket expenses incurred whilst on company business�
40
Notes to and forming part of the Financial Statements for the year ended ended 30 June 201509SCOTGOLD ANNUAL REPORT I 2015 The aggregate compensation made to key management personnel of the group is set out below�
Short-term employee benefits
Post-employment benefits
Other long term benefits
Share-based payments
(e) Aggregate amounts payable to Directors and their personally related entities�
Consolidated
2015
$
479,236
61,590
-
187,653
728,479
2014
$
536,430
-
-
-
536,430
Accounts payable
NOTE 21 - RELATED PARTY INFORMATION
Consolidated Entity Consolidated Entity
2015
$
54,182
2014
$
187,653
Transactions within the Consolidated Entity
Aggregate amount receivable within the consolidated entities at balance date
Non-current receivables
NOTE 22 - REMUNERATION OF AUDITORS
Auditing and reviewing of the financial statements of Scotgold Resources Limited
and of its controlled entities�
NOTE 23 - LOSS PER SHARE
Earnings used in calculation of earnings per share
Weighted average number of ordinary shares outstanding during
the year used in the calculation of basic loss per share
There are no potential ordinary shares on issue at the date of this report�
Parent Entity
2015
$
Parent Entity
2014
$
16,546,972
14,765,935
Consolidated
2015
$
36,250
36,250
2014
$
33,100
33,100
Consolidated
2015
$
2014
$
(2,112,965)
(1,466,149)
Number
Number
840,098,450
328,829,995
41
Notes to and forming part of the Financial Statements for the year ended ended 30 June 201509SCOTGOLD ANNUAL REPORT I 2015 NOTE 24 - FINANCIAL INSTRUMENTS
(a) Financial Risk Management Policies
The consolidated entity’s financial instruments consist mainly of deposits with banks, accounts receivable,
accounts payable and hire purchase liabilities�
The Board’s overall risk management strategy seeks to assist the Group in meeting its financial targets, whilst
maintaining potential adverse effects on financial performance� The Group has developed a framework for a risk
management policy and internal compliance and control systems that covers the organisational, financial and
operational aspects of the group’s affairs� The Chairman is responsible for ensuring the maintenance of, and
compliance with, appropriate systems�
Financial Risk Exposures and Management
The main risks the group is exposed to through its financial instruments are interest rate risk, foreign currency risk
and liquidity risk�
Interest Rate Risk
The consolidated entity’s exposure to interest rate risk, which is the risk that a financial instrument’s value will
fluctuate as a result of change in the market, interest rate and the effective weighted average interest rate on these
financial assets, is as follows:
Financial Assets
Cash at Bank
Trade and other receivables
Total Financial Assets
Financial Liabilities
RMB Loan
Trade and other payables
Total Financial Liabilities
Weighted Average
Effective Interest Rate
2015
2014
Floating Interest Rate
2015
$
2014
$
1�03%
-
1�93%
-
802,649
141,089
943,738
640,857
260,324
901,181
4�68%
-
6�70%
-
-
3,031,286
343,853
343,853
353,598
3,384,884
The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in the
statement of financial position and in the notes to and forming part of the financial statements�
Interest Rate Sensitivity Analysis
The Group has performed a sensitivity analysis relating to its exposure to interest rate risk� This sensitivity analysis
demonstrates the effect on the current year results and equity which could result in a change in these risks�
At 30 June 2015 the effect on the loss and equity as a result of a change in the interest rate of 1% with all other
variables remaining constant is not material�
Foreign Currency Risk
The Group undertakes certain transactions denominated in foreign currencies, hence exposures to exchange rate
fluctuations arise�
42
Notes to and forming part of the Financial Statements for the year ended ended 30 June 201509SCOTGOLD ANNUAL REPORT I 2015 The carrying amount of the Group’s foreign currency denominated monetary assets and monetary liabilities at the
reporting date is as follows:
Currency
£ Sterling
€ Euro
Foreign currency
Liabilities
2015
$
223,847
81,757
305,604
Assets
2015
$
514,960
95,560
610,520
Liabilities
2014
$
Assets
2014
$
3,338,417
175,824
-
-
3,338,417
175,824
Other than translational risk the Group has no significant exposure to foreign currency risk at the balance date�
Liquidity Risk
The group manages liquidity risk by monitoring forecast cash flows�
Credit Risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date, is the
carrying amount net of any provisions for doubtful debts, as disclosed in the statement of financial position and
notes to the financial statement�
In the case of cash deposited, credit risk is minimised by depositing with recognised financial intermediaries such
as banks, subject to Australian Prudential Regulation Authority supervision�
The consolidated entity does not have any material risk exposure to any single debtor or group of debtors under
financial instruments entered into by it�
Capital Management Risk
Management controls the capital of the Group in order to maximise the return to shareholders and ensure that the
group can fund its operations and continue as a going concern�
Management effectively manages the Group’s capital by assessing the Group’s financial risks and adjusting
its capital structure in response to changes in these risks and in the market� These responses include the
management of expenditure and debt levels and share and option issues�
There have been no changes in the strategy adopted by management to control capital of the Group since the
prior year�
Net Fair Values
For financial assets and liabilities, the net fair value approximates their carrying value� The consolidated entity has
no financial assets or liabilities that are readily traded on organised markets at balance date and has no financial
assets where the carrying amount exceeds net fair values at balance date�
NOTE 25 - MATTERS SUBSEQUENT TO THE END OF FINANCIAL YEAR
Other than as set out below there are no other matters or circumstances that have arisen after the balance date
that have significantly affected, or may significantly affect, the operations of the consolidated entity, the results of
those operations, or the state of affairs of the consolidated entity in future periods�
43
Notes to and forming part of the Financial Statements for the year ended ended 30 June 201509SCOTGOLD ANNUAL REPORT I 2015 NOTE 26 - PARENT ENTITY DISCLOSURES
2015
$
2014
$
Financial Position
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Total Current Assets
NON CURRENT ASSETS
Plant and equipment
Investment in subsidiary
Loan to subsidiaries
Total Non Current assets
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Interest bearing loan
Total Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Financial Performance
Loss for the year attributable to the parent
Write down of loans attributable to losses of subsidiaries
Other comprehensive income
Total comprehensive loss
249,160
5,121
530,256
117,792
254,281
648,048
8,008
5,781,805
9,517,270
6,143
5,491,881
8,580,077
15,307,083
14,078,101
15,561,364
14,726,149
110,169
218,373
1,353,783
3,031,286
1,463,952
3,249,659
1,463,952
3,249,659
14,097,412
11,476,490
26,789,021
22,540,613
1,498,324
1,038,154
(14,189,933)
(12,102,277)
14,097,412
11,476,490
1,243,811
1,204,873
843,844
275,753
-
-
2,087,655
1,480,626
The parent entity has not entered into any guarantees in relation to debts of its subsidiaries, has no contingent
liabilities, and has no commitments for acquisition of property, plant and equipment�
44
Notes to and forming part of the Financial Statements for the year ended ended 30 June 201509SCOTGOLD ANNUAL REPORT I 2015 Director’s
Declaration
10
1� In the opinion of the Directors of Scotgold Resources Limited (the ‘Company’):
a� the accompanying financial statements and notes are in accordance with the Corporations Act 2001
including:
i�
giving a true and fair view of the consolidated entity’s financial position as at 30 June 2015 and of its
performance for the year then ended; and
ii� complying with Australian Accounting Standards, the Corporations Regulations 2001, professional
reporting requirements and other mandatory requirements�
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�
c� the financial statements and notes thereto are in accordance with International Financial Reporting
Standards issued by the International Accounting Standards Board�
This declaration has been made after receiving the declarations required to be made to the Directors in accordance
with Section 295A of the Corporations Act 2001 for the financial year ended 30 June 2015�
This declaration is made in accordance with a resolution of the Board of Directors�
Richard Gray
Managing Director
Dated at Tyndrum, Scotland, this 29th day of September 2015
45
SCOTGOLD ANNUAL REPORT I 2015
11
Independent
Auditor’s Report
46
SCOTGOLD ANNUAL REPORT I 2015 Independent Auditor’s Report
11
47
SCOTGOLD ANNUAL REPORT I 2015 12
Shareholder
Details
ANALYSIS OF SHAREHOLDING
Shareholding
1 -
1,001 -
5,001 -
1,000
5,000
10,000
10,001 -
100,000
100,001 -
or more
Shareholding
1 -
1,001 -
5,001 -
1,000
5,000
10,000
10,001 -
100,000
100,001 -
or more
Total on Issue
Voting Rights
Number of Shareholders
ASX
66
70
117
620
235
1,108
AIM
4
2
6
48
91
151
Total
70
72
123
668
326
1,259
Number of Shares
13,127
243,630
1,007,727
23,839,052
706,884,748
731,988,284
1,127
4,160
44,435
2,313,689
14,254
247,790
1,052,162
26,152,741
401,040,777
1,107,925,525
403,404,188
1,135,392,472
Article 16 of the Constitution specifies that on a show of hands every member present in person, by attorney or by
proxy shall have :
a� for every fully paid share held by him one vote
b� for every share which is not fully paid a fraction of the vote equal to the amount paid up on the share
over the nominal value of the shares
Substantial Shareholders
The following substantial shareholders have notified the Company in accordance with Corporations Act 2001�
Mr Nat le Roux
Mr Richard Milne Harris
Mr & Mrs Graham Donaldson
Directors’ Shareholding
456,564,373
42,999,999
34,111,775
40�2%
3�8%
3�0%
The interest of each director in the share capital of the Company is detailed in the Directors’ Report�
48
SCOTGOLD ANNUAL REPORT I 2015
Shareholder Details
12
Shares
%
Rank
456,564,373
40�2%
TOP TWENTY SHAREHOLDERS
Name
Mr Nat Le Roux
HSDL Nominees Limited
Barclayshare Nominees Limited
Golden Matrix Holdings Pty Ltd
42,599,800
36,195,163
32,999,999
Td Direct Investing Nominees (Europe) Limited
25,781,103
Hargreaves Lansdown (Nominees) Limited <15942>
Hargreaves Lansdown (Nominees) Limited
Mr Graham Donaldson + Mrs Christine Donaldson
Hsdl Nominees Limited
Investor Nominees Limited
HSBC Custody Nominees (Australia) Limited - A/C 2
Investor Nominees Limited
Jim Nominees Limited
Jim Nominees Limited
Share Nominees Ltd
Mr Richard Robin David Nairn
Mrs Dorita Maria Thomson
Hargreaves Lansdown (Nominees) Limited
Mr Richard Milne Harris
Secure Nominees Limited
23,791,793
23,600,834
23,366,937
23,284,820
21,862,373
21,055,480
18,167,453
17,042,341
14,878,328
13,474,628
13,000,000
12,611,832
10,196,438
10,000,000
9,995,000
3�8%
3�2%
2�9%
2�3%
2�1%
2�1%
2�1%
2�1%
1�9%
1�9%
1�6%
1�5%
1�3%
1�2%
1�1%
1�1%
0�9%
0�9%
0�9%
850,468,695
74�9%
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
AIM
ASX
ASX
AIM
ASX
ASX
ASX
AIM
ASX
ASX
AIM
ASX
ASX
ASX
ASX
AIM
AIM
ASX
AIM
ASX
49
SCOTGOLD ANNUAL REPORT I 2015 13
Interest
in Exploration Leases
Scotland
Location
Cononish Glen Orchy
Cononish Glen Orchy
Glen Lyon
Inverliever
Knapdale
Ochils
Agreement
Landholder Lease
Option Agreement
Option Agreement
Option Agreement
Option Agreement
Option Agreement
Grant Date
23 July 2009
5 November 2013
5 November 2013
5 November 2013
5 August 2013
5 August 2013
Area
20 km2
975 km2
1,369 km2
660 km2
676 km2
426 km2
Mining Leases in Scotland – general information
The mineral rights to gold and silver in most of Britain, including Scotland, are generally held by the Crown, In order
to explore for gold and silver, an option agreement is required to be concluded with the Crown which entitles the
holder to explore for gold and silver (subject to access agreements with the landowner (see below)) and on the
grant of planning permission (and other conditions), to take out a lease for exploitation of these metals�
Surface rights (and other minerals rights) are generally held by the landowner with whom access and lease
agreements must separately be obtained�
Mineral developments in Scotland are governed by the Town and Country Planning (Scotland) Act, with
responsibility for planning control exercised by the local Authority� Statutory designations inform as to the
appropriate levels of environmental assessment to be carried out�
50
SCOTGOLD ANNUAL REPORT I 2015 Corporate
Governance Statement
14
The Board of Directors of Scotgold Resources Limited is responsible for the corporate governance of the
Company� The Board guides and monitors the business and affairs of Scotgold Resources Limited on behalf
of the shareholders by whom they are elected and to whom they are accountable� The statement reports on
Scotgold Resources Limited’s key governance principles and practices�
Details of the Corporate Governance Statement can be found on the Scotgold Resources Limited’s website at
www�scotgoldresources�com�au/corporate/corporate-governance/
51
SCOTGOLD ANNUAL REPORT I 2015 15
Company
Information Scotland
Exploration Office
Upper Tyndrum Station
Tyndrum, Stirlingshire
Scotland
FK20 8RY
Phone +44(0) 183 840 0306
Nominated Adviser (NOMAD)
Westhouse Securities Limited
Beaufort House
15 St� Botolph Street
London
EC3A 7BB
Phone +44(0) 207 601 6114
Share Registry
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol
BS99 6ZZ
Phone +44(0) 870 703 6300
Auditor
Scott-Moncrieff
Exchange Place 3
Semple Street
Edinburgh
EH3 8BL
Phone +44(0) 131 473 3500
Solicitors
Harper McLeod LLP
The Ca’d’oro
Glasgow
G1 3PE
Phone +44(0) 141 221 8888
Bankers
Bank of Scotland
Shandwick Place
Edinburgh
EH11 1YH
Phone +44(0) 870 850 1671
Media
Bankside Consultants
6 Middle Street
London
EC1A
Phone +44(0) 207 367 8888
52
SCOTGOLD ANNUAL REPORT I 2015 24 Colin Street, West Perth, WA 6005
Telephone +61 8 9222 5850
Facsimile
+61 8 9222 5810
Email sgz@scotgoldresources�com
www.scotgoldresources.com