S H R E E M I N E R A L S L I M I T E D
ACN 130 618 683
2019 ANNUAL REPORT
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S H R E E M I N E R A L S L T D
TABLE OF CONTENTS
Corporate Directory
Directors’ Report
Auditor’s Independence Declaration
Statement of Profit or Loss and other Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
Corporate Governance Statement
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C O R P O R A T E D I R E C T O R Y
DIRECTORS
Sanjay Loyalka
Davide Bosio ( appointed 4th October 2018)
Andy Lau
Amu Shah
COMPANY SECRETARY
Sanjay Loyalka
REGISTERED OFFICE
Unit 38
18 Stirling Highway
Nedlands
WA 6009
Ph:
Fax:
info@shreeminerals.com
www.shreeminerals.com
(08) 61507565
(08) 93891199
AUDITORS
Stantons International
Level 2, 1 Walker Avenue
West Perth WA 6005
Ph: (08) 94813188
Fax: (08) 9321 1204
SHARE REGISTRY
Boardroom Pty Limited
Level 12
225 George Street
Sydney NSW 2000
Ph: +61 (02) 9290 9600
Fax: +61 (02) 9279 0664
.
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D I R E C T O R S ’ R E P O R T
The Directors present this report together with the financial report of Shree Minerals Ltd (“SHH” and/or ‘the
Company’) for the year ended 30th June 2019 and the auditor’s report thereon.
DIRECTORS
The names of the Directors in office during the financial year and until the date of this report are as follows.
Directors were in office for this entire period unless otherwise stated.
Mr Sanjay Loyalka, Director and Company Secretary
Mr Andy Lau, Non-Executive Director
Mr Amu Shah, Non-Executive Director
Davide Bosio , Non-Executive Director (appointed 4th October 2018)
COMPANY SECRETARY
Mr Sanjay Loyalka
PRINCIPAL ACTIVITIES
The principal activities of the Company during the financial year consisted of mineral exploration, development
and mining.
OPERATING RESULTS
The net loss of the Company after providing for income tax amounted to $33,581. The reduced loss is mainly
arising due to Debt forgiveness of $610,000 by Directors towards unpaid remuneration of earlier years (2018:
net loss $1,854,708).
DIVIDENDS PAID OR RECOMMENDED
The Directors do not recommend the payment of a dividend and no amount has been paid or declared by way
of a dividend to the date of this report.
REVIEW OF OPERATIONS AND ACTIVITIES
Highlights:
Completed capital raising of $1,421,842 (before costs) through Rights issue and $14,218 through issue of
Options.
Acquisition of Golden Chimney Project (Leonora Tenement Assets) from Carmichael Prospecting Company
Pty Limited (Vendor, CPC) via a share-based payment of 9,000,000 ordinary shares to nominees of CPC
(Acquisition).
Favourable iron ore market conditions supportive for restart of Nelson Bay River Iron Project (“NBR”)
o Actively pursuing re-permitting activities forming part of the development process of the Direct
Shipping Ore (“DSO”) project at Nelson Bay River Iron Project (“NBR”) in North West Tasmania.
o Advanced working draft of Development Proposal and Environment Management Plan (“DPEMP”)
submitted to the EPA for the DSO operations, following completion of various technical studies.
Successful auger sampling confirms strong gold anomalism at the Golden Chimney Project:
o Detailed auger soil sampling has confirmed anomalous gold geochemistry at the Golden Chimney
and Golden Chimney West Prospects located 40 kilometres south of Leonora in the Eastern
Goldfields of WA.
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D I R E C T O R S ’ R E P O R T
o
Strong gold anomalism in several auger holes with grades up to 74.5 ppb Au is supported by multi –
element (Cu, As, Bi, Zn) geochemistry.
o Results extend, and upgrade known anomalies interpreted from widely spaced historical soil
sampling surveys.
o New coincident Au and As anomalies in previously unsampled areas have also been identified.
o Additional auger work to continue and SHH commences planning of near term drilling program.
Directors waive off $610,000 and accept $150,000 in shares and $100,000 in cash, towards settlement of the
unpaid remuneration for previous years.
Further steps taken to conserve costs
o Application to rationalise old Tasmanian Environmental Permit to reduce permit fees
o Mining Lease area rationalised by partial surrender of the mining lease area
Business Development efforts stepped up.
Shree Minerals Limited completed capital raising during the period to raise $1,421,842 (less costs) by Rights issue and
$14,218 by Options placement. Additionally, reduction in liabilities was achieved by settlement as approved in AGM
held during the period, wherein the Directors waived off $610,000 and accepted a part of the unpaid amount in
shares for $150,000 and cash payment of $100,000. Consequently the “Net Assets” position has improved sizeably,
thereby enabling the Company to be in a position to pursue its growth objectives.
The Company has significantly stepped up efforts towards sourcing and evaluation of new potential opportunities
suited for SHH and its shareholders in the resources sector. While the focus to-date has been on development
projects, the Company has recently expanded the scope to include exploration (both early stage and advanced) to
create shareholder value. As part of that strategy, the Company has conducted detailed technical evaluation on
several opportunities during the year and continues evaluation on other opportunities and having preliminary
discussions with the respective counterparties. These efforts have resulted in successful acquisition of Golden
Chimney Project which is located in a world class Gold mineral province within Western Australia.
Favorable iron ore market conditions
The iron ore price has continued to improve and has risen to a range around US$90/t to US$120/t (CFR China) for the
common benchmark (62% Fe), due to recent supply disruptions and improving sentiment in the sector. Consensus
Analyst forecasts estimate that it may take a few years to normalise supply back to the levels produced before these
disruptions occurred. Any near-term supply response is expected to be limited, particularly with little latent capacity
left at major Iron Ore exporting ports and railways in Australia.
There has also been a substantial reduction in discounts for medium grades Iron Ore such as the 58% Fe that the
Company produces.
There has been further improvement in premiums for material with lower impurities like low alumina (as per the NBR
ore produced previously) as Chinese authorities continue emphasis on environment control.
The Iron Ore Prices in Australian Dollar terms have further improved due to the exchange rate of AUD with USD at a
range around $0.68.5 levels compared to around $0.95 levels when the NBR project was last operating in 2014.
Effectively, the market prices have more than doubled for the Company’s DSO Iron Ore products in the last one year,
due to improving fundamentals in the sector.
Nelson Bay River Iron Ore Project (“NBR Project”)
Shree’s wholly owned Nelson Bay River Project (“NBR” or the “Project”) including Mining Lease 3M/2011 is engaged
in the mining and shipment of iron ore. The location of the Mining Lease 3M/2011 is shown in Figure 1.
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D I R E C T O R S ’ R E P O R T
Figure 1: Location Plan – NW Tasmania
The Project is within an established mineral province in the region. Operating mines include Grange Resources’ (ASX:
GRR) Savage River Iron Ore and MMG’s Roseberry Mine.
The project has three types of resources: Direct Shipping Ore (“DSO”), Beneficiable low-grade resource (“BFO”) and a
Magnetite Resource.
The NBR occurrence is a 4km long magnetic feature (anomaly). The iron mineralisation is hosted by a steeply SW
dipping mafic dyke, intruded into siliciclastic country rocks. The magnetic feature has been divided into two parts,
northern and southern.
NBR was previously producing direct shipping Iron Ore (Fines and Lump) products until being placed on care and
maintenance since June 2014 following sharp iron ore price falls.
Resource and Reserves
Mineral Resources and Reserves Estimates, summarised by JORC classification are as follows:
The in situ DSO Mineral Resource Estimates, September 2015
Category
Tonnes
Measured
Indicated
Inferred
Total
300,000
190,000
150,000
640,000
Fe %
57.6
57.5
57.3
57.5
Al2O3 %
P ppm
S ppm
SiO2 %
LOI %
1.3
1.4
1.2
1.3
947
919
945
938
362
377
421
380
9.2
9.3
10.0
9.4
6.4
6.3
6.2
6.4
(Nominal 54% Fe cut off; average density 3t/m3; minor rounding errors)
BFO Resource Estimates 2012
Category
Inferred
Total
Tonnes
730,000
730,000
Fe %
46.8
46.8
Al2O3 %
2.7
2.7
P ppm
180
180
S ppm
680
680
SiO2 %
23.7
23.7
LOI %
4.7
4.7
(30% Fe cut off; average density 3t/m3; minor rounding errors)
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D I R E C T O R S ’ R E P O R T
“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.”
Skarn Dyke Global Iron Resource Estimates
(Includes Magnetite Resource)
Category
Indicated
Inferred
Total
M Tonnes
1.8
9.5
11.3
Iron %
38.6
35.9
36.3
(30% Fe cut off; fresh rock material; minor rounding errors)
“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.”
Skarn Dyke Recoverable Magnetite Resource Estimates
Category
Indicated
Inferred
Total
M Tonnes
1.7
6.1
7.8
DTR Mag % Magnetite Kt
38.5
38.2
38.3
667
2,324
2,991
(20% DTR cut off; average density 3.71t/m3; fresh rock material; minor rounding errors)
“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.”
Magnetite Resource Estimate Concentrate Grades
Category
Indicated
Inferred
Fe %
66.4
64.3
Al2O3 %
0.16
0.31
S %
0.21
0.42
SiO2 %
4.6
6.0
Total
0.22
“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.”
65.5
0.30
5.2
The in situ DSO Ore Reserve Estimates for the Southern DSO pit, September 2015
Category
M tonnes
Fe %
Al2O3 %
P %
S %
SiO2 %
LOI %
Proved
Probable
Total
0.27
0.19
0.46
56.5
56.5
56.5
1.4
1.5
1.4
0.091
0.035
0.092
0.036
0.091
0.035
8.7
8.8
8.7
6.5
6.5
6.5
(Minor rounding errors; cut off based on a nominal 54% Fe; default density of 3t/m3)
The information in this report that relates to Mineral Resources is based on information evaluated by Mr Simon
Tear, who is a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM). And who has
sufficient experience 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’ (“the JORC
Code”). Mr Tear is a Director of HandS Consultants Pty Ltd and he consents to the inclusion in the report of the
Mineral Resources in the form and context in which they appear.
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D I R E C T O R S ’ R E P O R T
The information in this report that relates to Ore Reserve Estimates for the Nelson Bay deposit is based on
information evaluated by Mr Richard Beazley who is a Member of The Australasian Institute of Mining and
Metallurgy and a Chartered Professional (MAusIMM CP(Min)) and who has sufficient experience 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 (the “JORC Code”). Mr Richard Beazley is the Principal
of Altair Mining Consultancy Pty Ltd and consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears.
Development and Production
Following the recent improvement in Iron Ore Prices, the Company has commenced actively pursuing re-permitting
activities forming part of development process of DSO project at NBR.
Shree is seeking approval to re-open the mine that would allow the company to complete the existing DSO pit by
extraction, processing and shipment of the remaining hematite ore. The revised project will utilise associated
infrastructure including the existing Waste Rock Dump (WRD), Run of Mine pad, roads, water and other
infrastructure, all located within the current mine footprint.
The DSO requires no major processing beyond crushing and screening. It is then trucked to the port and shipped. The
south DSO pit (“SDSO”) was developed in 2013 with production commencement in November 2013 and first
shipment in January 2014. The operation has been developed as an all contract mining, processing and haulage
operation with local contractors in the region. The iron ore shipments totalled 181,000 tonnes historically. The NBR
product (DSO Lump and Fines) has been very well received and is in demand by customers due to its low impurities
like alumina (Al2O3) at only 1.3%.
Development Approvals for Mine
The Company applied to the Circular Head Council for a permit under the Tasmanian Land Use Planning and
Approvals Act for the Direct Shipping Iron operations in August 2018. This was referred by the Council to the
Tasmanian EPA who issued draft guidelines for public consultation and comment for preparation of a DPEMP
(Development Proposal and Environment Management Plan). These Guidelines have now been finalized and final
guidelines were issued during November 2018.
Consequently, Shree has actively worked on the requisite technical studies. During the year further follow up field
surveys and studies have been completed and the Company has significantly advanced the draft DPEMP which is
nearing completion for submittal to the EPA. Some of the detailed technical studies include the following as per the
table1.
Table 1:
Item
Waste Rock and Ore Characterisation: Geochemical sampling, test work, analysis and reporting
Waste Rock Characterisation: Geological modelling and estimation
Hydrogeology Modelling
Water Quality: Test work, analysis and reporting
Water balance (surface and ground water) modelling
Ecology studies: Flora and fauna surveys
DPEMP study management and reporting
Water Quality Assessment including receiving waters
Traffic impact studies
Mine planning
Pit Stability study
Greenhouse Emissions impact
Hazard Risk Analysis
Fire Risk Analysis and Management plans
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D I R E C T O R S ’ R E P O R T
These studies are now complete and the Company has submitted a working draft of DPEMP to the EPA. In
consultation with the EPA and after finalisation of the draft over the next few months, it is expected that draft
DPEMP will be put up for public display for review by concerned stakeholders as part of the assessment process.
All proposed mining operations will be within the existing pit boundaries. The SDSO pit is approximately 25%
completed to a depth of 15 m (Figure 2).
Figure 2: Mine Site (Google Image 2015)
The SDSO pit is proposed to be deepened to mine the remains of the near-surface oxidised ore body, comprising DSO
hematite, to a depth of approximately 80 m. Figure 3 shows the proposed SDSO pit development.
Figure 3: Mine Development - SDSO operations
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D I R E C T O R S ’ R E P O R T
Meanwhile, the Company continues to place emphasis on steps to contain costs and preserve value. Further steps
taken recently include:
reduction in salaries effective beginning of FY 2018-19 ;
application by the Company to rationalise the old Environmental permit to reduce annual permit fees
e.g.: nature of activity and the regulatory limit being the maximum trucking capacity in view of
restriction on the road to use HPV vehicles coupled with permit condition of daylight trucking only.
partial surrender of the mining lease (3M/2011) :
The retained area after surrender is 366ha.
The area retained contains all known mineral resources in the lease.
All our plans (current and future) for mining at the lease and all associated infrastructure
(including waste dumps, tailings dam, processing areas, administration areas) are within the
retained area.
The surrendered portion of the land was surplus to its needs and was initially taken within
the lease as buffer / contingency.
Golden Chimney Project
The project occupies an area of 65.4km² and is located 40km south of Leonora (Figure 4). The world class deposit
known as the Sons of Gwalia Gold mine occurs within this geological terrain (1.9 Moz Au in reserve at a grade of 7.5
g/t Au and past production of 4 Moz Au). Other significant and economic deposits include King of the Hills Mine
(resources of 380,000oz Au), Tower Hill (625,000oz Au in resources), and Kallis – Trump and Ulysses (760,000oz Au in
resources).
Figure 4. Regional Location of the Golden Chimney Project.
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The prolifically mineralised Mount George Shear zone, host to several of the above deposits and which broadly
follows the Raeside Batholith contact, strikes southward and transects E40/378 (Figure 5). East of the Mount George
Shear zone, within the project area (Figures 5 and 6), the rocks are dominated by greenstones that comprise a
bimodal volcanic rock association, exhibiting an interfingering sequence of felsic and mafic lavas. Several dolerite sills
and dykes are Fe rich, magnetite bearing and form prominent aeromagnetic high linears in aeromagnetic images
(Figure 4).
Mafic rocks, mainly dolerites, are the most common host rocks to mineralisation in the Leonora area and in many
deposits including Golden Chimney, the mafic rocks appear to be Fe rich and occurring within fractionated zones that
become gabbroic and containing more feldspar and quartz.
Gold mineralisation in fractionated dolerite units such as Mt Charlotte in Kalgoorlie have considerable depth / plunge
extents. Further drilling at Golden Chimney will be directed towards possible depth and down dip extensions.
Several comparisons exist between the Golden Chimney Project and the Gold Deposits in the region, illustrated in
Figure 5. The projects in the area comprise a sequence dominated by bimodal volcanics, including basalts, magnetic
dolerites and felsic volcanics. The projects are located proximal to local axial planes of regional synclinal structures, a
favourable focal point for structural extension and shearing. The bulk of the gold mineralisation at some of these
projects coincides with strong potassic alteration within the strongly sheared and altered mafic schist units, as well
as within the sheared basalt, within an anastomosing shear zone that cross-cuts the locally northwest (magnetic)
striking mafic sequence.
Figure 5. Regional Geology of the Golden Chimney Project.
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Figure 6. Local Geology of the Golden Chimney Project.
Tenements
The mining tenements held at the end of the reporting period and their locations are as following:
Mine Lease/
Exploration License
3M/2011
E40/378
Locality
Remarks
Nelson Bay
River
Golden
Chimney
100% Shree Minerals Ltd
100% Shree Minerals Ltd
The mining tenements acquired and disposed of during the period and their location.
Acquisition of Golden Chimney Gold project.
Partial surrender of Mining Lease 3M/2011 done during the period.
The beneficial percentage interests held in farm-in or farm-out agreements at the end of the period.
NIL
The beneficial percentage interests in farm-in or farm-out agreements acquired or disposed of during
the period.
NIL
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EXPLORATION
Following detailed desktop studies and the approval of a Program of Work (POW) from the Dept Mines, Industry
Regulation and Safety, Shree Minerals Ltd (“Shree” or the “Company”) has completed auger soil Geochem program
at its Golden Chimney project, exploration licence E40/378.
The historical 500m spaced regional soil traverses identified anomalous gold in soil geochemistry at the Golden
Chimney Project (Figure 7). This sample spacing was interpreted to be too wide to identify the mineralised haloes
typical of existing gold deposits seen in the Leonora area. Geochemical anomalies less than 500m long such as the
geochemical haloe overlaying the Golden Chimney mineralisation were not identified. Additionally, the historical
work did not assay for multi-elements.
Shree’s recently completed auger exploration program consisted of 1072 shallow, vertical auger holes drilled on a
200m x 50m spaced grid and completed using a 4WD mounted auger drill rig. The preferred sample horizon was
either a carbonate rich layer (tested by hydrochloric acid) or, where absent, a soil colour change representing a redox
soil horizon. At the end of each hole a sieved (-240 µ) sample was collected for analysis by a multi element assay
method. Elements analysed included Au, As, Cu, Pb, Zn, Bi, Mo, Sn, Li, Rb, Ti, Ni and Co. Strong Au anomalism in
several auger holes with grades up to 74.5 ppb Au is supported by multi – element (Cu, As, Bi, Zn) geochemistry.
Figure 7. Gold in soil geochemical anomalies generated from the historical 500 m spaced soil traverses. The
underlying image is the processed first vertical derivative of the regional aeromagnetics, with white colours
representing the more magnetic rocks, probably dolerite lenses.
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D I R E C T O R S ’ R E P O R T
Figure 8 illustrates the coverage of Shree’s detailed geochemical survey and the historical Au in soil anomalies. Figure
9 illustrates the resultant geochemical contours derived from the assays received. Widespread, coherent near-
surface gold anomalism is located over mostly mafic rocks as interpreted from aeromagnetics and geological
mapping. Several prospect areas have been defined but only the Golden Chimney prospect has been drilled by
previous workers.
Figure 8. Coverage of Shree’s detailed geochemical survey and the historical Au in soil anomalies within the
Golden Chimney Project. The underlying image is the processed first vertical derivative of the regional
aeromagnetics, with white colours representing the more magnetic rocks, probably dolerite lenses.
Figure 9. Multi-element soil contours derived from Shree’s auger program.
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Golden Chimney Prospect.
At Golden Chimney, a north easterly orientated 10 ppb Au contour is coincident with a 500m long north easterly
orientated 10 ppm As contour (Figure 10). The anomalies are supported by a north easterly orientated aeromagnetic
anomaly suggesting lithological or structural controls on the geochemistry. These geochemical contours suggest the
mineralisation identified in the historical drilling (see Figure 5 for location) may extend further to the north east and
south west of the drilling.
Figure 11 illustrates the character and style of mineralisation intersected by historical drilling at the Golden Chimney
prospect.
Rock chip assays up to 201 ppm Au have been recorded near the drill holes at Golden Chimney, illustrated in Figures
10 and 11.
Figure 10. Multi-element geochemical contours over the Golden Chimney and Golden Chimney West Prospects. The
underlying image is the processed first vertical derivative of the regional aeromagnetics.
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Figure 11. RC drilling cross section for several historical drill holes at the Golden Chimney Prospect. See Figure 10 for
location.
Modelling of the mineralisation at Golden Chimney into a 3D software package was completed by Shree. Work
consisted of migrating historical drill hole data from paper into a drill hole database suitable for exporting to 3D
drilling software packages. The generation of a wireframe model was completed in Geovia Surpac and a nominal 0.2
ppm gold and 1000 ppm arsenic cut-off in the drilling was used.
A 3D image of the drilling at Golden Chimney is shown in Figure 12. The figure is looking to the north west and
orthogonal to the NE -SW line of drill holes illustrated in Figure 10. Modelled shells of gold (red, 0.2 ppm cut-off) and
arsenic (pink, 500 ppm cut-off) suggest a potential plunge of mineralisation exists to the SW. RC drilling is
recommended to test the indicated target area.
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Figure 12. Geovia Surpac generated 3D model of the Golden Chimney Prospect. The figure is looking to the north
west and orthogonal to the NE -SW line of drill holes illustrated in Figure 10. A new drill target is proposed to test the
potential down plunge direction of the mineralisation as suggested by the gold (red) and arsenic (pink) modelled
shells of drilling assays.
At the Golden Chimney West Prospect (see Figure 10), the main north westerly orientated 10 ppb Au contour is
900m long and is coincident with anomalous multi element geochemistry including Cu and Bi. Rock chip assays up to
15 ppm Au have been recorded at Golden Chimney west. The contours are again supported by north westerly
orientated aeromagnetic anomalies. Anomalism extends to the east around the fold closure into a north easterly
orientation.
A new coincident Au and As geochemical anomaly (Golden Chimney East) has been identified 700 m east of the
Golden Chimney Prospect (Figure 9 and 10). Very anomalous Au and As geochemistry of 28.5 ppb and 12.2 ppm
respectively was recorded. The anomaly remains open to the east where auger sampling was not conducted.
References
Hallberg, J. A, and Giles, C. W., 1986. Archaean felsic volcanism in the north eastern Yilgarn Block, Western Australia:
Australian Journal of Earth Sciences, v. 33, p. 413-428.
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Morris, P.A., 1998. Archaean Felsic Volcanism in parts of the Eastern Goldfields Region Western Australia. Geol.
Survey Western Australia. Report 55.
Witt, W.K., 1994. Geology of the Melita 1:100,000 Sheet. Explanatory Notes.
Specific References
The list of references to relevant historic open file exploration reports for the Golden Chimney Project is provided
below. These References are available from the online system for open file reporting of historical exploration results
through the West Australian Department of Mines, Industry Regulation and Safety (Department).
Competent Person Statement
The review of historical exploration activities and results contained in this report is based on information compiled by
Michael Busbridge, a Member of the Australian Institute of Geoscientists and a Member of the Society of Economic
Geologists. He is a consultant to Shree Minerals Ltd. He has sufficient experience which is relevant to the style of
mineralisation and types of deposits 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 (the JORC Code).
Michael Busbridge has consented to the inclusion in the report of the matters based on his information in the form
and context in which it appears.
Cautionary Statement
the historical Exploration Results have not been reported in accordance with the JORC Code 2012;
a Competent Person has not done sufficient work to disclose the historical Exploration Results in accordance
with the JORC Code 2012;
it is possible that following further evaluation and/or exploration work that the confidence in the prior
reported Exploration Results may be reduced when reported under the JORC Code 2012;
that nothing has come to the attention of the acquirer that causes it to question the accuracy or reliability of
the historical Exploration Results; but
Shree has not independently validated the historical Exploration Results and therefore is not to be regarded
as reporting, adopting or endorsing those results
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D I R E C T O R S ’ R E P O R T
OTHER TENEMENTS
Shree Minerals’ exploration activities for the year in review were confined to those referred to in this report.
However, the Company can report that all other tenements remain in good standing and meet statutory
requirements.
OUTLOOK
As per Company estimates, the current iron ore price environment is supportive for restart of NBR operations. The
Company is currently pursuing the new environmental permit prior to making any assessment on restart of
operations.
The NBR project is being developed in a phased philosophy with the initial plan to mine the goethitic-hematite
resource to export iron ore over the first couple of years at low capital expenditure to be followed by the magnetite
resource to produce dense media magnetite (DMM) used for the coal washery industry.
Studies to-date have reflected a stable market and pricing for DMM as an industrial mineral in Eastern Seaboard of
Australia with domestic production not being adequate to meet demand resorting to imports, thereby confirming the
long-term value potential of the NBR project. The recent structural shift towards higher grade iron ore bodes well for
NBR as the test results have shown that the NBR magnetite ore is amenable to a simple processing to produce a very
high grade concentrate.
At the Golden Chimney Project , the gold anomalies identified by the auger sampling have a scale and continuity that
may indicate the presence of significant gold mineralisation. Some gold anomalies are reinforced by multi-element
signatures which may confirm the presence of gold mineralisation. Also, new, previously untested areas, including
Golden Chimney East, have exciting geochemical anomalies that are not closed off and require extensional auger
sampling. The Golden Chimney West Prospect is a significant gold and multi-element geochemical anomaly that is
untested by drilling. In-fill sampling on a 100m x 25m spaced grid is required to upgrade the anomaly to ‘drill ready’
status. All anomalies will be prioritised by field checking, rock chip sampling and mapping. The Company expects to
followed up the current exploration work by the drilling phase of higher priority targets which will begin with RC
drilling of up to 200 m deep holes at Golden Chimney. This is expected to commence in the coming months once the
necessary approvals are obtained and the Company will update shareholders as the program timetable is finalised.
The “Net Assets” position has improved sizeably, thereby enabling the Company to be in a position to pursue its
growth objectives. The Company has significantly stepped up efforts towards sourcing and evaluation of new
potential opportunities suited for SHH and its shareholders in the resources sector. While the focus to-date has been
on development projects, the Company has recently expanded the scope to include exploration (both early stage and
advanced) to create shareholder value.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
In the opinion of the Directors, there were no other significant changes in the state of affairs of the Company
that occurred during the financial year under review other than those disclosed in this report.
FINANCIAL POSITION
The net assets of the Company at 30th June 2019 are $1,580,148 (2018: $166,086)
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D I R E C T O R S ’ R E P O R T
AFTER BALANCE DATE EVENTS
There has not arisen in the interval between the end of the financial year and the date of this report any other
item, transaction or event of a material or unusual nature likely, in the opinion of the Directors of the
Company to affect substantially the operations of the Company, the results of those operations or the state of
affairs of the Company in subsequent financial years.
FUTURE DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGIES
The Company intends to continue to pursue its goals to acquire and explore mineral deposits and pursue
development and mining operations of these deposits.
ENVIRONMENTAL REGULATIONS
The Company holds exploration and mining licences to regulate its activities in the States of Tasmania and
Western Australia, Australia. These licences include conditions and regulations with respect to the
rehabilitation of areas disturbed during the course of its activities. As far as the Directors are aware, there has
been no known breach of the Company’s licence conditions other than those disclosed in this report.
DIRECTORS’ INTERESTS
Mr S Loyalka
Mr A Lau
Mr A Shah
Mr D Bosio
Total
ORDINARY SHARES
FULLY PAID
47,840,358
2,877,907
8,121,367
2,618,048
61,457,680
OPTIONS
0
0
0
0
0
INFORMATION ON DIRECTORS
Mr Sanjay Loyalka, Director and Company Secretary, FAIM, MAICD, ACA, B Com (Hons)
Director of Shree Minerals Ltd since April 2008
Mr Sanjay Loyalka has experience in various functional roles including CEO, General Management, and
Corporate finance experience in mining and metals, manufacturing, and logistics based industries in a
multinational environment.
Mr Loyalka is the founder of Investment advisory firm IACG Pty Ltd in Australia which has been engaged in
cross border MandA, strategic consulting as well as a mineral commodity trading business.
As the founding CEO and Managing Director, he was instrumental in the development of the Aditya Birla
Group’s operations within Australia. He led the acquisition of Nifty and Mount Gordon Copper mines,
successful development of the Nifty Sulphide project (a remote site, 2.5 million TPA underground mine,
concentrator plant and associated infrastructure) and operational restructure of Mount Gordon Copper
Operations. These led to a successful listing of the Company on the Australian Securities Exchange under an
IPO raising $300 million and inclusion in the ASX SandP 300 index.
Mr Loyalka has been a member of the Executive Council of Chamber of Minerals and Energy (Western
Australia) in 2005 and 2006.
Directorship in other listed companies in last 3 years: N/A
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D I R E C T O R S ’ R E P O R T
Mr Andy Lau, Independent Non-Executive Director, MBA
Director of Shree Minerals Ltd since Nov 2009
Mr Andy Lau is a professional engineer and held senior management responsibilities for over 10 years in
computer information and financing industry.
Mr Lau holds a MBA and graduate majoring in Computer Technology and held the certificates of MCSE,
MCDBA, MCP, and CCNA. He worked for a number of large international companies in securities, venture
capital, and high-tech industries.
Directorship in other listed companies in last 3 years: N/A
Mr Amu Shah, Non-Executive Director
Director of Shree Minerals Ltd since March 2011
Mr Amu Shah is a director and shareholder in various businesses ranging from retail trade, distribution of
office and stationery products, services to the mining industry, manufacturing, and property development and
ownership.
Mr Amu Shah is the Honorary Consul for Kenya in Perth.
Mr Amu Shah has extensive international and local business experience.
Directorship in other listed companies in last 3 years: N/A
Mr Davide Bosio, Non-Executive Director , BComm, FFin, GAICD
Director of Shree Minerals Ltd since October 2018
Mr Davide is the WA State Manager and Director, Corporate Finance at Shaw and Partners Limited.
Davide has over 18 years' experience in the stockbroking industry with a focus on corporate services
to listed companies, specifically in relation to capital raisings and MandA advice.
Directorship in other listed companies in last 3 years: Connected IO Limited (ASX:CIO), March 2019 –
Present ; Spectrum Metals Limited (ASX:SPX), Dec 2017 – November 2018 ; De Grey Mining Limited,
Dec 2015 – November 2017.
REMUNERATION REPORT (AUDITED)
The full Board fulfils the roles of remuneration committee and is governed by the Company’s adopted
remuneration policy. The information provided in this remuneration report has been audited as required by
Section 308 (3c) of the Corporations Act 2001.
Remuneration Policy
This policy governs the operations of the Remuneration Committee. The Committee shall review and reassess
the policy at least annually and obtain the approval of the Board.
General Director Remuneration
Shareholder approval must be obtained in relation to the overall limit set for non-executive directors’ fees. The
Directors shall set individual Board fees within the limit approved by shareholders.
Shareholders must also approve the framework for any broad based equity based compensation schemes and
if a recommendation is made for a director to participate in an equity scheme, that participation must be
approved by the shareholders.
Executive remuneration
The Company’s remuneration policy for executive directors and senior management is designed to promote
superior performance and long-term commitment to the Company. Executives receive a base remuneration
which is market related, and may be entitled to performance based remuneration at the ultimate discretion of
the Board.
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D I R E C T O R S ’ R E P O R T
Overall remuneration policies are subject to the discretion of the Board and can be changed to reflect
competitive market and business conditions where it is in the interests of the Company and shareholders to do
so.
Executive remuneration and other terms of employment are reviewed annually by the Remuneration
Committee having regard to performance, relevant comparative information, and expert advice.
The Committee’s reward policy reflects its obligation to align executive’s remuneration with shareholders’
interests and to retain appropriately qualified executive talent for the benefit of the Company. The main
principles of the policy are:
a.
b.
reward reflects the competitive market in which the Company operates;
individual reward should be linked to performance criteria; and
c. Directors and executives should be rewarded for both financial and non-financial performance.
The total remuneration of executives and other senior managers consists of the following:
a.
salary - directors, executives and senior manager receive a fixed sum payable monthly in cash;
b. bonus - directors, executives and nominated senior managers are eligible to participate in a profit
participation plan if deemed appropriate;
c.
Long-term incentives - directors, executives, and nominated senior managers may also participate in
employee share-option schemes, with any option issues generally being made in accordance with
thresholds set in plans approved by shareholders. The Board however, considers it appropriate to retain
the flexibility to issue options to executives outside of approved employee option plans in exceptional
circumstances; and
d. Other benefits - directors, executives and senior managers are eligible to participate in superannuation
schemes and other appropriate additional benefits.
Remuneration of other executives consists of the following:
a.
salary - senior executive receives a fixed sum payable monthly in cash;
b. bonus - each executive is eligible to participate in a profit participation plan if deemed appropriate;
c.
long term incentives - each senior executive may, where appropriate, participate in share option schemes
which have been approved by shareholders; and
d. Other benefits – senior executives are eligible to participate in superannuation schemes and other
appropriate additional benefits.
Non-executive remuneratio n
Shareholders approve the maximum aggregate remuneration for non-executive directors. The Remuneration
Committee recommends the actual payments to directors and the Board is responsible for ratifying any
recommendations, if appropriate. The maximum aggregate remuneration approved for non-executive
directors is currently $200,000.
It is recognised that non-executive directors’ remuneration is ideally structured to exclude equity-based
remuneration. However, whilst the Company remains small and the full Board, including the non-executive
directors, are included in the operations of the Company more intimately than may be the case with larger
companies the non-executive directors are entitled to participate in equity based remuneration schemes.
All directors are entitled to have their indemnity insurance paid by the Company.
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D I R E C T O R S ’ R E P O R T
Profit participation plan
Performance incentives may be offered to directors, executives, and senior management of the Company
through the operation of a profit participation plan at the ultimate discretion of the Board. Currently, there is
no such plan in practice for last 5 years.
Details of remuneration
Key Management Personnel (KMP) comprises the executive and non- executive directors only during FY2019.
The Company has paid insurance premiums in respect of directors’ and officers’ liability and legal expenses
insurance contracts for current and former directors, executive officers and secretary. The directors have not
included details of the premium paid in respect of the directors’ and officers’ liability; as such disclosure is
prohibited under the terms of the contract.
The remuneration for Key Management Personnel of the Company during the year and the previous year was
as follows:
2019
Mr S
Loyalka
Mr Andy
Lau
Mr
Davide
Bosio
Mr Amu
Shah
Short-term Employee Benefits
Post-
employment
Benefits
Cash,
salary,
Directors
Fees
109,589
Cash
profit
share,
bonuses
0
15,000
20,548
13,699
158,836
0
0
0
0
Non-cash
benefits Allowances
0
0
0
0
0
0
0
0
0
0
Other
Long-
term
Benefits
0
Share
Based
Payments
0
Super-
annuation
10,411
Total
120,000
0
1,952
1,301
13,664
0
0
0
0
0
0
15,000
22,500
0
15,000
0
172,500
%
Performance
Based
0
0
0
0
0
NB: The remuneration report has been prepared on an accruals basis and this table above reflects accruals for
the financial year 2018-19 , which have been paid in full during the financial year. These do not include
payments on account of settlement of earlier year’s outstanding remuneration, as per detailed below in this
note .
To conserve cash resources of the company during the period the operations are under suspension, the key
managerial personnel had voluntarily elected to take reduced drawings of their remuneration. The undrawn
amount of remuneration has been accrued each month as a liability, as per the details in previous published
financial reports. The Directors have agreed to waive any further accruals effective 1st January 2018 so that
the Company’s total liability on this account does not increase. The total liability on this account was $860,000
as at 30th June 2018. The directors agreed to settlement (as approved in AGM) of the amount of $860,000
outstanding for their remuneration as at 30th June 2018 as following:
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D I R E C T O R S ’ R E P O R T
Waive off $610,000
$150,000 payment by way of issue of 30,000,000 fully paid ordinary shares at $0.005 per share
$100,000 cash payment
Consequently, the total amount payable to directors for remuneration at 30 June 2019 amounted to $0 (2018:
$ 860,000) for outstanding director remuneration.
2018
Mr S
Loyalka
Mr Andy
Lau
Mr
Rajesh
Bothra
Mr Amu
Shah
Short-term Employee Benefits
Post-
employment
Benefits
Cash,
salary,
Directors
Fees
182,191
Cash
profit
share,
bonuses
0
15,000
15,000
15,000
227,191
0
0
0
0
Non-cash
benefits Allowances
0
0
0
0
0
0
0
0
0
0
Other
Long-
term
Benefits
0
Share
Based
Payments
0
Super-
annuation
7,809
Total
190,000
0
0
0
7,809
0
0
0
0
0
0
15,000
15,000
0
15,000
0
235,000
%
Performance
Based
0
0
0
0
0
NB: The remuneration report has been prepared on an accruals basis and this table above reflects payments
and accruals for the financial year 2017-18.
To conserve cash resources of the company during the period the operations are under suspension, the key
managerial personnel have voluntarily elected to take reduced drawings of their remuneration. The undrawn
amount of remuneration has been accrued each month as a liability, as per the details in published financial
reports. The Directors have agreed to waive any further accruals effective 1st January 2018 so that the
Company’s total liability on this account does not increase. Consequently, the total amount payable to
directors for remuneration at 30 June 2018 amounted to $860,000 (2017: $ 715,000) for outstanding director
remuneration.
NB: For financial years ended June 2019 and 2018 the KMPs held the positions and dates of change in
responsibilities as following:
Mr. Rajesh Bothra: Non-Executive Director, appointed as Non-Executive Chairman 27/7/2016.
Resigned as Non-Executive Director and Non-Executive Chairman, effective 25/6/2018.
Mr. S Loyalka: Executive Chairman up to 27/7/2016. Continuing as Director and Company Secretary.
Mr. Andy Lau: Non-Executive Director
Mr. Amu Shah: Non-Executive Director
Mr. Davide Bosio : appointed as Non-Executive Director , effective 4th October 2018
Options, Performance shares and Shares issued as part of remuneration fo r the year ended
30 June 2019
There were no Options, Performance shares and Shares issued as part of remuneration for the year ended 30
June 2019. Please refer to Note 19 for further information.
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D I R E C T O R S ’ R E P O R T
Shares Issued on Exercise of Compen sation Options
No options granted as compensation in prior periods were exercised during the year or in the previous year.
Number of Shares Held by Key Management Personnel
30 June 2019
Key Management Person
Balance
1 July 2018
Received as
Compensation
Options
Exercised
Mr Sanjay Loyalka
26,474,078
Mr Andy Lau
Mr Amu Shah
Mr Davide Bosio *
0
4,884,230
0
0
0
0
0
31,358,308
* Mr. Davide Bosio appointed on 4th October 2018
0
0
0
0
0
0
Net Change
Other
21,366,280
2,877,907
3,237,137
2,618,048
30,099,372
Balance on
Resignation
Balance
30 June 2019
0
0
0
0
0
47,840,358
2,877,907
8,121,367
2,618,048
61,457,680
Number of Options Held by Key Management Personnel
Key Management Personnel did not hold any options at the beginning of the year and no options were issued
to them during the year.
Number of Share Performance Rights Held by Key Managem ent Personnel
Key Management Personnel did not hold any Share Performance Rights (“SPR”) at the beginning of the year
and no SPRs were issued to them during the year.
Employment contracts of directors and senior executives
The employment arrangements for Davide Bosio are as follows:
Term: to retire by rotation at least once every 3 years.
Remuneration: comprising salary and superannuation totalling $30,000 per annum.
Termination: Mr. Bosio may resign from the office by notice in writing to the Company. He may also
cease to be a director if any of the disqualifying events prescribed in the Constitution occur. In
addition, Mr. Bosio’s appointment is subject to re-election by shareholders at least every 3 years
The employment arrangements for Sanjay Loyalka are as follows:
Term: renewed for a further two-year tenure that commenced in May 2018.
Remuneration: comprising salary and superannuation totalling $320,000 per annum.
Termination: Mr. Loyalka may resign from the office by notice in writing to the Company. He may also
cease to be a director if any of the disqualifying events prescribed in the Constitution occur.
Mr. Loyalka has voluntarily decided to a reduced remuneration of $120,000 per annum until further
notice and Board approval of any change.
The employment arrangements for Amu Shah are as follows:
Term: to retire by rotation at least once every 3 years.
Remuneration: comprising salary and superannuation totalling $30,000 per annum.
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D I R E C T O R S ’ R E P O R T
Termination: Mr. Shah may resign from the office by notice in writing to the Company. He may also
cease to be a director if any of the disqualifying events prescribed in the Constitution occur. In
addition, Mr. Shah’s appointment is subject to re-election by shareholders at least every 3 years.
Mr. Shah has voluntarily decided to a reduced remuneration of $15,000 per annum until further
notice and Board approval of any change.
The employment arrangements for Andy Lau are as follows:
Term: to retire by rotation at least once every 3 years.
Remuneration: comprising Fees of $30,000 per annum (not subject to GST).
Termination: Mr. Lau may resign from the office by notice in writing to the Company. He may also
cease to be a director if any of the disqualifying events prescribed in the Constitution occur. In
addition, Mr. Lau’s appointment is subject to re-election by shareholders at least every 3 years.
Mr. Lau has voluntarily decided to a reduced remuneration of $15,000 per annum until further notice
and Board approval of any change.
The changes to remuneration of Directors over the years are Board approved and there is no formal
agreement between the Company and Directors in this regard.
There have been no remuneration consultants used during the year.
END OF REMUNERATION REPORT
Meetings of Directors
During the financial year, 6 formal meeting of Directors (including committees of directors) was held.
Attendances by each Director during the year were as follows:
Director
Sanjay Loyalka
Andy Lau
Amu Shah
Davide Bosio
Board Meetings
Meetings
attended
6
0
5
4
Meetings held
whilst in office
6
6
6
4
The full Board fulfils the role of remuneration, nomination, and audit committees.
Indemnifying Officers or Auditor
The Company has paid insurance premiums in respect of directors’ and officers’ liability and legal expenses
insurance contracts for current and former directors, executive officers and secretary. The directors have not
included details of the premium paid in respect of the directors’ and officers’ liability; as such disclosure is
prohibited under the terms of the contract.
Options
At the date of this report, the unissued ordinary shares of Shree Minerals Limited under option are
142,184,223 Unlisted Options exercisable at $0.01 Expiring 29 November 2019.
Proceedings on Behalf of Company
No person has applied for leave of Court to bring any proceedings on behalf of the Company or intervene in
any proceedings to which the Company is a party for taking responsibility on behalf of the Company for all or
any part of these proceedings.
The Company is not a party to any other proceedings as at date of this report.
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D I R E C T O R S ’ R E P O R T
Non-audit Services
There was no non-audit service provided by the external auditors during the year.
Auditor’s Independence Declarat ion
The lead auditor’s independence declaration for the year ended 30 June 2019 has been received and can be
found on page 26 of annual report.
Signed in accordance with a resolution of the Board of Directors.
Sanjay Loyalka
Director
Signed in Perth the 17th day of September 2019.
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PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
Stantons International Audit and Consulting Pty Ltd
trading as
Chartered Accountants and Consultants
17 September 2019
Board of Directors
Shree Minerals Limited
Unit 38
18 Stirling Highway
NEDLANDS WA 6009
Dear Directors
RE:
SHREE MINERALS LIMITED
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following
declaration of independence to the directors of Shree Minerals Limited.
As Audit Director for the audit of the financial statements of Shree Minerals Limited for the year ended
30 June 2019, I declare that to the best of my knowledge and belief, there have been no
contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit;
and
(ii)
any applicable code of professional conduct in relation to the audit.
Yours faithfully
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(Trading as Stantons International)
(An Authorised Audit Company)
Samir Tirodkar
Director
West Perth, Western Australia
Liability limited by a scheme approved
under Professional Standards Legislation
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S H R E E M I N E R A L S L T D
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2019
Revenue from continuing operations
Interest
47,028
42,390
Note
30-Jun-19
$
30-Jun-18
$
Expenses from continuing operations
Care and maintenance expenses of mine
Finance charges
Employee and consulting fees
Debt Forgiveness(Directors unpaid remuneration of earlier years)
Regulatory costs
Occupancy and communication
Foreign exchange gain / (-) loss
Accounting and legal fees
Prov for impairment of mine development
Prov for impairment of plant and equipment
Other expenses
Loss before income tax
Income tax benefit
Loss for the year
Other comprehensive income
Comprehensive loss for the year
9A
(175,934)
(13,314)
(199,066)
610,000
(26,505)
(11,947)
24
(50,668)
(171,624)
0
(41,575)
(33,581)
(577,601)
(13,082)
(249,277)
0
(21,343)
(12,656)
13,744
(37,224)
(911,347)
(28,819)
(59,493)
(1,854,708)
0
0
(33,581)
(1,854,708)
0
0
(33,581)
(1,854,708)
Earnings per share for (loss) attributable to ordinary equity holders
of the company:
Basic and diluted (loss) cents per share
5
(0.01)
(0.65)
The accompanying notes form part of these financial statements.
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S H R E E M I N E R A L S L T D
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2019
Assets
Current Assets
Cash and cash equivalents
Receivables
Inventory
Total Current Assets
Non-Current Assets
Exploration and evaluation
Mine Development
Other Assets
Plant and equipment
Total Non-Current Assets
Total Assets
Liabilities
Current Liabilities
Trade and other payables
Provisions
Total Current Liabilities
Non-Current Liabilities
Rehabilitation Provision
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Contributed equity
Reserves
Retained profits (losses)
Total Equity
Note
6
7
7A
9
9A
6A
8
10
10A
30-Jun-19
$
1,524,849
50,843
0
1,575,692
121,492
0
838,700
0
960,192
30-Jun-18
$
1,101,614
24,089
0
1,125,703
0
0
838,700
0
838,700
2,535,884
1,964,403
116,967
11,769
128,736
827,000
827,000
955,736
962,779
8,538
971,317
827,000
827,000
1,798,317
1,580,148
166,086
11
12
19,049,690
580,108
(18,049,650)
17,897,568
284,587
(18,016,069)
1,580,148
166,086
The accompanying notes form part of these financial statements.
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S H R E E M I N E R A L S L T D
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2019
Issued
Share
Retained
Note
Capital
Applications
Losses
$
$
$
Share
based
option
reserve
$
Total
$
BALANCE AT 1 JULY 2017
17,897,568
0
(16,161,361)
284,587
2,020,794
Total comprehensive loss for the
period
Shares issued during the year
Capital raising costs
0
0
0
0
(1,854,708)
0
(1,854,708)
0
0
0
0
0
0
0
0
BALANCE AT 30 JUNE 2018
17,897,568
0
(18,016,069)
284,587
166,086
BALANCE AT 1 JULY 2018
17,897,568
0
(18,016,069)
284,587
166,086
Total comprehensive loss for the
period
0
Shares issued during the year
1,616,843
Options issued during the year
0
Capital raising costs
(464,721)
0
0
0
0
(33,581)
0
0
0
0
0
(33,581)
1,616,843
14,218
14,218
281,303
(183,418)
BALANCE AT 30 JUNE 2019
19,049,690
0
(18,049,650)
580,108
1,580,148
The accompanying notes form part of these financial statements.
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S H R E E M I N E R A L S L T D
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2019
Cash flows from operating activities (including exploration)
Sales receipts
Payments to suppliers and employees (inclusive of GST)
Interest received
Note
30-Jun-19
$
0
(638,546)
38,597
30-Jun-18
$
0
(512,796)
48,424
Net cash inflow from operating activities (including exploration)
(599,949)
(464,372)
Cash flows from investing activities
Payment for plant and equipment
Payment for mineral exploration
Security Deposits
Payment for mine development
Net cash inflow/(outflow) from investing activities
Cash flows from financing activities
Proceeds from issues of shares and other equity securities
Payments for share issue costs
Net cash inflow from financing activities
Net increase /(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial period
0
(57,835)
0
(171,624)
(229,459)
1,436,061
(183,418)
1,252,643
423,235
1,101,614
(3,498)
0
19,000
0
15,502
0
0
0
(448,870)
1,550,484
Cash and cash equivalents at the end of the financial period
1,524,849
1,101,614
The accompanying notes form part of these financial statements.
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S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
This financial report includes the financial statements and notes of Shree Minerals Limited, a Company
domiciled and incorporated in Australia.
Statement of Compliance
The financial report is a general purpose financial report that has been prepared in accordance with Australian
Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the
Australian Accounting Standards Board and the Corporations Act 2001.
Accounting standards include Australian equivalents to International Financial Reporting Standards (“AIFRS”).
Compliance with AIFRS ensures that the financial statements and notes thereto comply with International
Financial Reporting Standards (“IFRS”). Shree Minerals Limited is a for-profit entity for the purpose of
preparing the financial statements.
The financial report is presented in Australian currency.
Basis of Preparation
Historical cost convention
The financial report has been prepared on an accruals basis and is based on historical costs, modified, where
applicable, by the measurement at fair value of selected non-current assets, financial assets and financial
liabilities.
Going concern
These financial statements have been prepared on a going concern basis and, as a result, the financial report
for the year ended 30 June 2019 does not include any adjustments relating to the recoverability and
classification of the recorded asset amounts or to the amounts and classification of liabilities that might be
necessary should the company not continue as a going concern.
Significant efforts have been made to preserve cash and reduce costs and secure additional finance, however
material uncertainties over the future cash flows exist.
The Company continues to engage with its stakeholders and continues to monitor opportunities from
interested investors to raise additional equity for the business. In addition, the Company continues to focus
efforts on improving liquidity through:
the implementation of further cost improvement initiatives;
continuation of voluntary payroll reductions ; and
Raising share capital or debt as and when required.
The Company also carefully manages discretionary expenditure in line with the Company’s cash flow.
The financial report has therefore been prepared on a going concern basis, which assumes continuity of
normal business activities and the realisation of assets and the settlement of liabilities in the ordinary course
of business. Should the Company be unable to continue as a going concern, it may be required to realise assets
and extinguish liabilities other than in the ordinary course of business, and at amounts that differ from those
stated in the financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
The significant accounting policies set out below have been applied in the preparation and presentation of the
financial report for the year ended 30 June 2019 and comparative information.
New and amended standards adopted by the Company for these financial
statements
A number of new or amended standards became applicable for the current reporting period, however, the
Company did not have to make retrospective adjustments as a result of adopting these standards.
The Company has adopted AASB 15 Revenue from Contracts with Customers and AASB 9 Financial Instruments
which became effective for financial reporting periods commencing on or after 1 January 2018
AASB 15 Revenue from contracts with customers
AASB 15 replaces AASB 118 Revenue, AASB 111 Construction Contracts and several revenue-related
Interpretations. AASB 15 establishes a five-step model to account for revenue arising from contracts with
customers and requires that revenue to be recognised at an amount that reflects the consideration to which
an entity expects to be entitled in exchange for transferring goods or services to a customer.
The Company has applied the new Standard effective from 1 July 2018 using the modified retrospective
approach. Under this method, the cumulative effect of initial application is recognised as an adjustment to the
opening balance of retained earnings at 1 July 2018 and comparatives are not restated.
The adoption of AASB 15 does not have a significant impact on the Company as the Company does not
currently have any revenue from customers.
AASB 9 Financial Instruments
AASB 9 Financial Instruments replaces AASB 139 Financial Instruments: Recognition and Measurement for
annual periods beginning on or after 1 January 2018, bringing together all three aspects of the accounting for
financial instruments: classification and measurement, impairment, and hedge accounting.
As a result of adopting AASB 9 Financial Instruments, the Company has amended its financial instruments
accounting policies to align with AASB 9. AASB 9 makes major changes to the previous guidance on the
classification and measurement of financial assets and introduces an ‘expected credit loss’ model for
impairment of financial assets.
There were no financial instruments which the Company designated at fair value through profit or loss under
AASB 139 that were subject to reclassification. The Board assessed the Company’s financial assets and
determined the application of AASB 9 does not result in a change in the classification of the Company’s
financial instruments.
The adoption of AASB 9 does not have a significant impact on the financial report.
a.
Income Tax
The income tax expense (benefit) for the year comprises current income tax expense (income) and deferred
tax expense (income).
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using
applicable income tax rates enacted, or substantially enacted, as at reporting date. Current tax liabilities
(assets) are therefore measured at the amounts expected to be paid to (recovered from) the relevant taxation
authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances
during the year as well unused tax losses.
Current and deferred income tax expense (income) is charged or credited directly to equity instead of the
profit or loss when the tax relates to items that are credited or charged directly to equity.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also
result where amounts have been fully expensed but future tax deductions are available. No deferred income
tax will be recognised from the initial recognition of an asset or liability, excluding a business combination,
where there is no effect on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when
the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at reporting
date. Their measurement also reflects the manner in which management expects to recover or settle the
carrying amount of the related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent
that it is probable that future taxable profit will be available against which the benefits of the deferred tax
asset can be utilised.
RandD tax credits are accounted for when received.
b. Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated
depreciation and impairment losses.
Plant and equipment
Plant and equipment are measured on the cost basis.
The carrying amount of plant and equipment is reviewed by directors first when indicators of impairment exist
and thereafter annually 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 that will be received from the
asset’s employment and subsequent disposal. The expected net cash flows have been discounted to their
present values in determining recoverable amounts.
The cost of fixed assets constructed within the company includes the cost of materials, direct labour,
borrowing costs and an appropriate proportion of fixed and variable overheads.
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 economic benefits associated with the item will flow to the group and the
cost of the item can be measured reliably. All other repairs and maintenance are charged to the profit or loss
statement during the financial period in which they are incurred.
Depreciation
The depreciable amount of all fixed assets including building and capitalised lease assets, but excluding
freehold land, is depreciated on a straight-line basis over their useful lives to the consolidated group
commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the
shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.
The depreciation rates used for each class of depreciable assets are:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
Class of Fixed Asset
Plant and equipment
Office equipment
Depreciation Rate
20%
20%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet
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 profit or loss. When revalued assets are sold, amounts included in the
revaluation reserve relating to that asset are transferred to retained earnings.
c. Exploration, Evaluation and Development Expenditure
Exploration and evaluation costs
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest.
These costs are only carried forward to the extent that they are expected to be recouped through the
successful development of the area or where activities in the area have not yet reached a stage that permits
reasonable assessment of the existence of economically recoverable resources.
Accumulated costs in relation to an abandoned area are written off in full against profit or loss in the year in
which the decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are transferred to Mine
Development and amortised over the life of the area according to the rate of depletion of the economically
recoverable resources (refer to Mine Development below).
A regular review for impairment is undertaken of each area of interest to determine the appropriateness of
continuing to carry forward costs in relation to that area of interest.
Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of
site restoration, there is uncertainty regarding the nature and extent of the restoration due to community
expectations and future legislation. Accordingly the costs have been determined on the basis that the
restoration will be completed within one year of abandoning the site.
d. Mine Development
Mine development represent the accumulation of all exploration, evaluation and development expenditure
incurred in respect of a project in which mining has commenced or in the process of commencing. When
further development expenditure is incurred in respect of mine property after the commencement of
production, such expenditure is carried forward as part of the mine property only when substantial future
economic benefits are thereby established, otherwise such expenditure is classified as part of the cost of
production.
Amortisation is provided on a unit of production basis (other than restoration and rehabilitation expenditure
detailed below) which results in a write off of the cost proportional to the depletion of the proven and
probable mineral reserves.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
The Company defers waste stripping costs for matching costs with the related economic benefits. Stripping
costs incurred in the period are deferred to the extent that the current period ratio exceeds the life of mine or
pit ratio. Such deferred costs are then charged in subsequent periods, the ratio falls short of the life of mine or
pit ratio. The life of mine or pit ratio is obtained by dividing the volume of waste mined either by the volume of
ore mined. The life of mine or pit waste-to-ore ratio is a function of an individual mine's pit design and
therefore changes to that design will generally result in changes to the ratio. Changes to the life of mine or pit
ratio are accounted for prospectively. Deferred stripping costs are included in Mine development costs.
The net carrying value is reviewed regularly and to the extent to which this value exceeds its recoverable
amount, the excess is either fully provided against or written off in the financial year in which this is
determined.
The Company provides for environmental restoration and rehabilitation at site which includes any costs to
dismantle and remove certain items of plant and equipment. The cost of an item includes the initial estimate
of the costs of dismantling and removing the item and restoring the site on which it is located, the obligation
for which an entity incurs when an item is acquired or as a consequence of having used the item during that
period. This asset is depreciated on the basis of the current estimate of the useful life of the asset.
In accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets an entity is also required
to recognise as a provision the best estimate of the present value of expenditure required to settle the
obligation. The present value of estimated future cash flows is measured using a current market discount rate.
e. Leases
Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset,
but not the legal ownership that is transferred to the company, are classified as finance leases.
Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair
value of the leased property or the present value of the minimum lease payments, including any guaranteed
residual values. Lease payments are allocated between the reduction of the lease liability and the lease
interest expense for the period.
Leased assets are depreciated on a straight-line basis over the shorter of their estimated useful lives or the
lease term.
Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are
charged as expenses in the periods in which they are incurred.
Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over
the life of the lease term.
f. Financial Instruments
Recognition, initial measu rement and derecognition
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual
provisions of the financial instrument. Financial instruments (except for trade receivables) are measured
initially at fair value adjusted by transactions costs, except for those carried “at fair value through profit or
loss”, in which case transaction costs are expensed to profit or loss. Where available, quoted prices in an active
market are used to determine the fair value. In other circumstances, valuation techniques are adopted.
Subsequent measurement of financial assets and financial liabilities are described below.
Trade receivables are initially measured at the transaction price if the receivables do not contain a significant
financing component in accordance with AASB 15.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire,
or when the financial asset and all substantial risks and rewards are transferred. A financial liability is
derecognised when it is extinguished, discharged, cancelled or expires.
Classification and sub sequent measurement
Financial assets
Except for those trade receivables that do not contain a significant financing component and are measured at
the transaction price in accordance with AASB 15, all financial assets are initially measured at fair value
adjusted for transaction costs (where applicable).
For the purpose of subsequent measurement, financial assets other than those designated and effective as
hedging instruments, are classified into the following categories upon initial recognition:
–
–
–
amortised cost;
fair value through other comprehensive income (FVOCI); and
fair value through profit or loss (FVPL).
Classifications are determined by both:
–
–
the contractual cash flow characteristics of the financial assets; and
the entities business model for managing the financial asset.
i.
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following conditions (and are not
designated as FVPL):
–
–
they are held within a business model whose objective is to hold the financial assets and collect its
contractual cash flows; and
the contractual terms of the financial assets give rise to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
After initial recognition, these are measured at amortised cost using the effective interest method. Discounting
is omitted where the effect of discounting is immaterial. The Company’s cash and cash equivalents, trade and
most other receivables fall into this category of financial instruments.
ii.
Financial assets at fair value through other comprehensive income
The Company measures debt instruments at fair value through OCI if both of the following conditions are met:
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding; and
The financial asset is held within a business model with the objective of both holding to collect contractual
cash flows and selling the financial asset.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment
losses or reversals are recognised in the statement of profit or loss and computed in the same manner as for
financial assets measured at amortised cost. The remaining fair value changes are recognised in OCI.
Upon initial recognition, the Company can elect to classify irrevocably its equity investments as equity
instruments designated at fair value through OCI when they meet the definition of equity under AASB 132
Financial Instruments: Presentation and are not held for trading.
iii.
Financial assets at fair value through profit or loss (FVPL)
Financial assets at fair value through profit or loss include financial assets held for trading, financial assets
designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required
to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the
purpose of selling or repurchasing in the near term.
Financial liabilities
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss,
loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as
appropriate.
Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs
unless the Company designated a financial liability at fair value through profit or loss.
Subsequently, financial liabilities are measured at amortised cost using the effective interest method except
for derivatives and financial liabilities designated at FVPL, which are carried subsequently at fair value with
gains or losses recognised in profit or loss.
All interest-related charges and, if applicable, gains and losses arising on changes in fair value are recognised in
profit or loss.
Impairment
From 1 July 2018, the Company assesses on a forward looking basis the expected credit losses associated with
its debt instruments carried at amortised cost and FVOCI. The impairment methodology applied depends on
whether there has been a significant increase in credit risk. For trade receivables, the Company applies the
simplified approach permitted by AASB, which requires expected lifetime losses to be recognised from initial
recognition of the receivables.
Comparative information
The Company has applied AASB 9 Financial Instruments retrospectively, but has elected not to restate
comparative information. As a result, the comparative information provided continues to be accounted for in
accordance with the Company’s previous accounting policy.
Classification
Until 30 June 2018, the Company classified its financial assets in the following categories:
–
–
financial assets at fair value through profit or loss;
loans and receivables;
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
– held-to-maturity investments; and
–
available-for-sale financial assets.
The classification depended on the purpose for which the investments were acquired. Management
determined the classification of its investments at initial recognition and, in the case of assets classified as
held-to-maturity, re-evaluated this designation at the end of each reporting period.
g.
Impairment of Non-Financial Assets
At each reporting date, the Company reviews the carrying values of its tangible and intangible assets to
determine whether there is any indication that those assets have been impaired. If such an indication exists,
the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in
use, is compared to the asset’s carrying value. In assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount rate that reflects current market assessments of the
time value of money and the risks specific to the asset for which the estimates of future cash flows have not
been adjusted.
Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.
Where it is not possible to estimate the recoverable amount of an individual asset, the group estimates the
recoverable amount of the cash-generating unit to which the asset belongs.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of
the asset is reduced to its recoverable amount.
An impairment loss is recognised in profit or loss immediately, unless the relevant asset is carried at fair
value, in which case the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised
estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed
the carrying amount that would have been determined had no impairment loss been recognised for the asset
(cash-generating unit) in prior years. A reversal of an impairment loss is recognised in profit or loss
immediately, unless the relevant asset is carried at fair value, in which case the reversal of the impairment loss
is treated as a revaluation increase.
Interests in Joint Operations
h.
The Company’s share of the assets, liabilities, revenue and expenses of joint operations are included in the
appropriate items of the financial statements.
i. Employee Benefits
Provision is made for the Company’s liability for employee benefits arising from services rendered by
employees to balance date. Employee benefits that are expected to be settled within one year have been
measured at the amounts expected to be paid when the liability is settled. Employee benefits payable later
than one year have been measured at the present value of the estimated future cash outflows to be made for
those benefits. Those cash flows are discounted using market yields on national government bonds with terms
to maturity that match the expected timing of cash flows.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
Equity-settled compensation
The Company operates equity-settled share-based payment employee share and option schemes. The fair
value of the equity to which employees become entitled is measured at grant date and recognised as an
expense over the vesting period, with a corresponding increase to an equity account. The fair value of shares is
ascertained as the market bid price. The fair value of options is ascertained using a Black–Scholes pricing
model which incorporates all market vesting conditions. The number of shares and options expected to vest is
reviewed and adjusted at each reporting date such that the amount recognised for services received as
consideration for the equity instruments granted shall be based on the number of equity instruments that
eventually vest.
j. Provisions
Provisions are recognised when the Company has a legal or constructive obligation, as a result of past events,
for which it is probable that an outflow of economic benefits will result and that outflow can be reliably
measured.
k. Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid
investments with original maturities of 3 months or less, and bank overdrafts. Bank overdrafts are shown
within short-term borrowings in current liabilities on the balance sheet.
l. Revenue
AASB 15 Revenue from contracts with customers
AASB 15 replaces AASB 118 Revenue, AASB 111 Construction Contracts and several revenue-related
Interpretations. AASB 15 establishes a five-step model to account for revenue arising from contracts with
customers and requires that revenue to be recognised at an amount that reflects the consideration to which
an entity expects to be entitled in exchange for transferring goods or services to a customer.
The Company has applied the new Standard effective from 1 July 2018 using the modified retrospective
approach. Under this method, the cumulative effect of initial application is recognised as an adjustment to the
opening balance of retained earnings at 1 July 2018 and comparatives are not restated.
The adoption of AASB 15 does not have a significant impact on the Company as the Company does not
currently have any revenue from customers.
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the
financial assets.
All revenue is stated net of the amount of goods and services tax (GST).
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
m. Inventories
Crushed Ore at site and port and run of mine ore stockpiles are physically measured or estimated and valued
at the lower of cost or net realisable value. Net realisable value is the estimated selling price (in the ordinary
course of business assuming sales are made at the end of the reporting period such that applicable price for
the next month to coincide with time it reaches customer’s discharge port), less estimated costs of completion
and costs of selling final product.
Cost is determined using the weighted average method and comprises direct purchase costs and an
appropriate portion of fixed and variable overhead costs, including depreciation and amortisation, incurred in
converting materials into finished goods.
n. Goods and Services Ta x (“GST”)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST
incurred is not recoverable from the Australian Tax Office (“ATO”). In these circumstances the GST is
recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and
payables in the statement of financial position are shown inclusive of GST.
The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the
statement of financial position.
Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows
arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified
as operating cash flows.
o. Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current financial year.
p. Critical Accounting Estimates and Judgments
The directors evaluate estimates and judgments incorporated into the financial report based on historical
knowledge and best available current information. Estimates assume a reasonable expectation of future
events and are based on current trends and economic data, obtained both externally and within the Company.
The Company’s mining and exploration activities are subject to various laws and regulations governing the
protection of the environment. The Company recognises management’s best estimate for asset retirement
obligations in the period in which they are incurred. Actual costs incurred in the future periods could differ
materially from the estimates. Additionally, future changes to environmental laws and regulations, life of mine
estimates and discount rates could affect the carrying amount of this provision.
Key Judgements – Ore reserve and resource estimates
The Company estimates its ore reserves and mineral resources based on information compiled by Competent
Persons (as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Resources (the JORC Code). These are taken into account in the calculation of depreciation,
amortisation, impairment, deferred mining costs, rehabilitation and environmental expenditure.
In estimating the remaining life of the mine for the purposes of amortisation and depreciation calculations,
due regard is given, not only to remaining recoverable ore contained in reserves and resources , but also to
limitations which could arise from the potential for changes in technology, demand, and other issues which are
inherently difficult to estimate over a lengthy time frame.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
Where a change in estimated recoverable ore over the remaining life of the mine is made, depreciation and
amortisation is accounted for prospectively.
The determination of ore reserves and remaining mine life affects the carrying value of a number of the
Company’s assets and liabilities including deferred mining costs and the provision for rehabilitation.
Key Judgements – Units-of-production deprec iation
Estimated recoverable ore over the remaining life of the mine are used in determining the depreciation and /
or amortisation of mine specific assets. This results in a depreciation / amortisation charge proportional to the
depletion of the anticipated remaining life of mine production. Each item’s life, which is assessed annually, has
regard to both its physical life limitations and to present assessments of economically recoverable ore over the
remaining life of the mine of the mine property at which the asset is located. These calculations require the
use of estimates and assumptions, including the amount of recoverable ore over the remaining life of the mine
and estimates of future capital expenditure.
Key Judgements – Inventories
Costs incurred in or benefits of the productive process are accumulated as Crushed Ore at site and port and
run of mine ore stockpiles. Net realisable value tests are performed at least annually and represent the
estimated future sales price of the product based, less estimated costs to complete production and bring the
product to sale. Stockpiles are measured by estimating the number of tonnes added and removed from the
Stockpile. Stockpile tonnages are verified by periodic surveys.
Key Judgements – Deferred exploration and evaluation expenditure
Exploration and evaluation costs are carried forward where right of tenure of the area of interest is current.
These costs are carried forward in respect of an area that has not at balance sheet date reached a stage that
permits reasonable assessment of the existence of economically recoverable reserves, refer to the accounting
policy stated in note 1(c). The application of the Company’s accounting policy for exploration and evaluation
expenditure requires judgment in determining whether it is likely that future economic benefits are likely
either from future exploitation or sale or where activities have not reached a stage which permits a reasonable
assessment of the existence of reserves. The determination of a Joint Ore Reserves Committee (JORC)
resource is itself an estimation process that requires varying degrees of uncertainty depending on sub-
classification and these estimates directly impact the point of deferral of exploration and evaluation
expenditure. The deferral policy requires management to make certain estimates and assumptions about
future events or circumstances, in particular whether an economically viable extraction operation can be
established. Estimates and assumptions made may change if new information becomes available.
Key Judgements – Mine Development expenditure
Mine Development expenditure are carried forward in respect of each identifiable area of interest where a
mineable resource has been established and published as per JORC guidelines and has reached a stage that
permits reasonable assessment that necessary steps to commence a mining development for that area have
been commenced. Refer to the accounting policy stated in note 1(d). The net carrying value of each area of
interest is reviewed using long term commodity price forecasts from within the range of forecasts by Industry
analysts as per note 1(d).
Key Judgements Impairment of Property, P lant and Equipment
The Company assesses each asset at the end of each reporting period to determine whether any indication of
impairment exists. Where an indicator of impairment exists, an estimate of the recoverable amount is made,
which is considered to be the higher of the fair value less costs to sell and Value in Use (VIU).
Future cash flows
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
VIU calculation use pre-tax free cash flows based on projections approved by the Company. The key operating
assumptions and their basis of estimation are:
Future production based on latest mine plan available
Commodity price forecast derived from public available information and a range of external global
commodity forecasters; and
Future cost of production and future capital expenditure
Discount rate
The discount rate applied to the cash flow projections has been assessed to reflect the time value of money
and the perceived risk profile of the industry. These estimates and assumptions are subject to risk and
uncertainty. Therefore, there is a possibility that changes in circumstances will impact these projections, which
may impact the recoverable amount of assets.
Key Judgements Rehabilitation Provision
The Company’s mining and exploration activities are subject to various laws and regulations governing the
protection of the environment.
The Company makes a provision for restoration, rehabilitation and environmental costs as soon as the
obligation arises. Cost estimates at the start of each project / stage are capitalised and charged to the income
statement over the life of the project through depreciation and amortisation of the asset.
Costs are estimated using either the work of external consultants or internal experts. Management uses its
judgement and experience to provide for these estimated costs at higher of the estimated costs or the security
for rehabilitation costs provided to the Government authorities.
Significant estimates and assumptions are made in determining the provision for mine rehabilitation as there
are numerous factors that will affect the ultimate costs incurred. These factors include estimates of the extent
and costs of rehabilitation activities, technological changes, regulatory changes etc. These uncertainties may
result in future actual expenditure differing from the amounts currently provided.
q. Operating segments
Identification and measurement of segments – AASB 8 requires the ‘management approach’ to the
identification measurement and disclosure of operating segments. The ‘management approach’ requires that
operating segments be identified on the basis of internal reports that are regularly reviewed by the entity’s
chief operating decision maker, for the purpose of allocating resources and assessing performance. This could
also include the identification of operating segments which sell primarily or exclusively to other internal
operating segments.
r. Accounting standards not yet effective
Refer to note 20 for accounting standards not yet effective.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 2: KEY MANAGEMENT PERSONNEL COMPENSATION
Key management personnel remuneration has been included in the Remuneration Report section of the
Directors’ Report. Total amount payable was as following:
Short term employee benefits
Salaries including bonuses and fees
Total short term employee benefits
Long service leave
Total other long-term benefits
Superannuation
Total post-employment benefits
Total remuneration
2019
$
158,836
158,836
0
0
13,664
13,664
172,500
2018
$
227,191
227,191
0
0
7,809
7,809
235,000
The remuneration report has been prepared on an accruals basis and this table above reflects accruals for the
financial year 2018-19 , which have been paid in full during the financial year. These do not include payments
on account of settlement of earlier year’s outstanding remuneration, as per detailed below in this note.
To conserve cash resources of the company during the period the operations are under suspension, the key
managerial personnel had voluntarily elected to take reduced drawings of their remuneration. The undrawn
amount of remuneration has been accrued each month as a liability, as per the details in previous published
financial reports. The Directors have agreed to waive any further accruals effective 1st January 2018 so that
the Company’s total liability on this account does not increase. The total liability on this account was $860,000
as at 30th June 2018. The directors agreed to settlement (as approved in AGM) of the amount of $860,000
outstanding for their remuneration as following:
Waive off $610,000
$150,000 payment by way of issue of 30,000,000 fully paid ordinary shares at $0.005 per share
$100,000 cash payment
Consequently, the total payment made during the year ended 30 June 2018 and 30 June 2019 was $90,000
and $422,500 respectively and the amount payable to directors for remuneration at 30 June 2019 amounted
to $0 (2018: $ 860,000) for outstanding director remuneration.
NOTE 3: SALES INCOME
Sales during the financial year ended 30th June 2019 was NIL (2018: NIL).
NOTE 3A: EXPENSES INCLUDED IN INCOME STATEMENT
Depreciation of plant and equipment and
amortisation
Employee benefit expenses ( including writeback
of $610,000 being debt forgivness of earlier year’s
outstanding remuneration)
Operating lease rental expenses
30-June-19
$
0
30-June-18
$
8,109
(483,308)
71,632
9,646
9,829
Page 43
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S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 3B: AUDITOR’S REMUNERATION
Remuneration paid or payable to the auditor for:
– Auditing or reviewing the financial report
NOTE 4: INCOME TAX
a. Income tax expense
Current tax
Deferred tax
Deferred income tax expense included in income tax expense
comprises:
(Increase) / decrease in deferred tax assets
Increase / (decrease) in deferred tax liabilities
b. Reconciliation of income tax expense to prima facie tax
payable
The prima facie tax benefit on loss from ordinary activities before
income tax is reconciled to the income tax expense as follows:
Prima facie tax expense/(benefit) on operating profit/(loss) at
27.5% (2018: 27.5%)
Add / (Less)
Tax effect of:
Non-deductible expenses
Deferred tax asset not brought to account
Income tax attributable to operating loss
The applicable weighted average effective tax rates are as follows:
Balance of franking account at year end
c. Deferred tax assets (used to offset deferred tax liabilities)
Tax Losses
Provisions
Other
Set-off deferred tax liabilities
Net deferred tax assets
Page 44
30 June 2019
30 June 2018
$
$
23,236
23,236
19,000
19,000
30 June 2019
30 June 2018
-
-
-
-
-
-
(106,864)
106,864
-
(73,417)
73,417
-
9,235
(510,045)
1,852
(11,087)
-
Nil
Nil
-
1,586,196
104,987
(1,691,183)
-
239
509,806
-
Nil
Nil
-
1,572,689
11,629
(1,584,318)
-
For personal use only
S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
d. Deferred tax liabilities
Exploration expenditure
Mine development costs
Set-off deferred tax assets
Net deferred tax liabilities
30 June 2019
30 June 2018
33,410
1,657,772
(1,691,182)
-
-
1,584,318
(1,584,318)
-
e. Deferred Tax Assets
Provisions (balance of DTA)
Tax Effect of Unused tax losses for which no deferred tax asset has
been recognised
Total
806,157
770,994
3,548,644
4,354,801
3,467,096
4,238,090
NOTE 5: EARNINGS PER SHARE
a. Earnings/(loss) used to calculate basic EPS
b. Weighted average number of ordinary shares outstanding
during the year used in calculating basic and diluted EPS
30 June 2019
30 June 2018
$
$
(33,581)
(1,854,708)
Number of
Shares
Number of
Shares
471,722,463
284,368,446
Options totalling 142,184,223 (2018: NIL) and Share Performance Rights totalling NIL (2018: NIL) are anti –
dilutive and not included in the calculation of diluted earnings per share.
NOTE 6: CASH AND CASH EQUIVALENTS
Cash at bank / on deposits and in hand
30 June 2019
30 June 2018
$
$
1,524,849
1,101,614
NOTE 6A: OTHER ASSETS
Cash deposits supporting Guarantees for Rehabilitation Bonds
30 June 2019
30 June 2018
$
838,700
$
838,700
Page 45
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S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 7: RECEIVABLES
Interest receivable
Other receivables
GST and ABN withholding tax receivables
NB: At the reporting date, none of the trade and other receivables were
past due or impaired.
30 June 2019
30 June 2018
$
24,313
210
26,320
50,843
$
15,882
210
7,997
24,089
NOTE 7A: INVENTORIES
Iron ore (crushed and uncrushed) at lower of cost and net
realisable value
Provision for Impairment
Iron ore (crushed and uncrushed) at lower of cost and net
realisable value
30 June 2019
30 June 2018
$
$
255,630
255,630
(255,630)
(255,630)
0
0
Inventory comprises iron ore stocks are sub grade material of 27,470 tonnes of uncrushed ROM stocks and
15,007 of crushed ore. The accounting policy in this regard is Crushed Ore at site and port and run of mine ore
stockpiles are physically measured or estimated and valued at the lower of cost or net realisable value. Net
realisable value is the estimated selling price (in the ordinary course of business assuming sales are made at
the end of the reporting period such that applicable price for the next month to coincide with time it reaches
customer’s discharge port), less estimated costs of completion and costs of selling final product less
impairment. Cost is determined using the weighted average method and comprises direct purchase costs and
an appropriate portion of fixed and variable overhead costs, including depreciation and amortisation, incurred
in converting materials into finished goods.
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S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 8: PLANT AND EQUIPMENT
a. Movements in Carrying Amounts
Movement in the carrying amounts for each class of plant and equipment between the beginning and the end
of the current financial year
Opening balance at 1 July 2017
Additions
Disposals
Depreciation
Impairment
Balance at 30 June 2018
At Cost
Accumulated depreciation/impairment Losses
Balance at 30 June 2018
Additions
Disposals
Depreciation
Impairment
Balance at 30 June 2019
At Cost
Accumulated depreciation/impairment Losses
Balance at 30 June 2019
Plant and
Equipment
Motor
Vehicles
Total
$
33,430
3,498
0
(8,109)
(28,819)
0
387,374
(387,374)
0
0
0
0
0
0
$
0
0
0
0
0
0
$
33,430
3,498
0
(8,109)
(28,819)
0
30,067
(30,067)
417,441
(417,441)
0
0
0
0
0
0
0
0
0
0
0
0
387,374
(387,374)
0
30,067
(30,067)
0
417,441
(417,441)
0
NOTE 9: EXPLORATION EXPENDITURE
Exploration and evaluation phase expenditure capitalised
Movements
Opening balance
Exploration capitalised
Impairment / relinquishment
Balance
30 June 2019
$
121,492
0
121,492
0
121,492
30 June 2018
$
0
0
0
0
0
The value of the Company’s interest in exploration expenditure is dependent upon the:
the continuance of the economic entity rights to tenure of the areas of interest;
the results of future exploration; and
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S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
The recoupment of costs through successful development and exploitation of the areas of
interest, or alternatively, by their sale.
The exploration properties may be subjected to claim(s) under native title, or contain sacred sites, or sites
of significance to Aboriginal people. As a result, exploration properties or areas within the tenements may
be subject to exploration restrictions, mining restrictions and/or claims for compensation. At this time, it
is not possible to quantify whether such claims exist, or the quantum of such claims.
NOTE 9A: MINE DEVELOPMENT
Opening Balance
Mine Development capitalised
Write back of Rehabilitation Provision
Provision for Impairment
NOTE 10: TRADE AND OTHER PAYABLES
Current
Trade creditors
Other creditors and accruals
Voluntary deferred employee payments (i)
30 June 19
$
0
171,624
0
(171,624)
0
30 June 18
$
1,583,647
0
(672,300)
(911,347)
0
30-Jun-19
$
62,731
54,236
0
116,967
30-Jun-18
$
72,211
30,568
860,000
962,779
Note (i): To conserve cash resources of the Company during the period the operations are under suspension,
the directors had voluntarily elected to take reduced drawings of their remuneration and the balance is
deferred till the cash flow situation of the company improves. Consequently, as at 30 June 2018, the amount
of $860,000 remains outstanding for remuneration. This has been settled during the year as per Note 2.
NOTE 10A: REHABILITATION PROVISION
Opening Balance
Arising during the year
Write back of unused provisions
Unwinding of Discount
Utilisation
Closing Balance
Page 48
30 June 2019
30 June 2018
$
$
827,000
1,499,300
0
0
0
0
0
(672,300)
0
0
827,000
827,000
For personal use only
S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
There are security deposits/Bond with Mineral Resources Tasmania for $827,000 and this amount is included
in the Other Assets as per note 6A.
NOTE 11: CONTRIBUTED EQUITY
607,736,893 (2018: 284,368,446) Fully paid ordinary shares
Movements
Opening balance
Shares issued (for acquisition of Golden Chimney)
Shares issued (for settlement of unpaid Remuneration)
Shares issued (Non-Renounceable Rights issue)
Capital raising costs
Closing balance
(a) Ordinary Shares
At the beginning of the reporting year
Shares issued (for acquisition of Golden Chimney)
Shares issued (for settlement of unpaid Remuneration)
Shares issued (Non-Renounceable Rights issue)
At reporting date (on 30th June)
(b) Options
30 June 2019
$
19,049,690
30 June 2018
$
17,897,568
17,897,568
17,897,568
45,000
150,000
1,421,843
(464,721)
19,049,690
0
0
0
0
17,897,568
Number of
Shares
Number of
Shares
30 June 2019
30 June 2018
284,368,446
284,368,446
9,000,000
30,000,001
284,368,446
607,736,893
0
0
0
284,368,446
Number of
Options
Number of
Options
30 June 2019
30 June 2018
Opening balance
Issued during the year (unlisted , exercisable at $0.01 Expiring
29 November 2019)
Expired during the year
Closing balance
0
142,184,223
0
142,184,223
0
0
0
0
(c) Share Performance Rights (“SPR”)
There were no Share Performance Rights (“SPR”) at the beginning of the year and no SPRs were issued during
the year.
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S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
(d) Capital risk management
The Company’s objectives when managing capital are to safeguard their ability to continue as a going concern, so
that they may continue to provide returns for shareholders and benefits for other stakeholders.
Due to the nature of the Company’s activities, being mineral exploration, the Company does not have ready access
to credit facilities, with the primary source of funding being equity raisings. Therefore, the focus of the Company’s
capital risk management is the current working capital position against the requirements of the Company to meet
exploration programmes and corporate overheads. The Company’s strategy is to ensure appropriate liquidity is
maintained to meet anticipated operating requirements, with a view to initiating appropriate capital raisings as
required. The working capital position of the Company at 30 June 2019 and 30 June 2018 are as follows:
Cash and cash equivalents
Trade and other receivables
Inventories
Trade and other payables and provisions
Working capital position
NOTE 12: ACCUMULATED LOSSES AND RESERVES
a. Accumulated Losses
At the beginning of the year
Net loss for the year
At reporting date
b. Option Reserve
30 June 2019
30 June 2018
$
1,524,849
50,843
0
(128,736)
1,446,956
$
1,101,614
24,089
0
(971,317)
154,386
30 June 2019
30 June 2018
$
$
(18,016,069)
(16,161,361)
(33,581)
(1,854,708)
(18,049,650)
(18,016,069)
The option reserve records items recognised as expenses on valuation of share based payments including
employee options. Please refer note 19 for more information.
During the year 142,184,223 (2018: nil) options and nil (2018: nil) Share Performance Rights were issued.
NOTE 13: COMMITMENTS
30 June 2019
30 June 2018
a. The Company has tenements rental and expenditure
commitments of:
Payable:
– not later than 12 months
– between 12 months and 5 years
– greater than 5 years
Page 50
$
25,036
122,144
100,108
$
0
0
0
For personal use only
S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
b. The Company has other rental and expenditure commitments of $7,214 within the next 12 months, NIL between
12 months and 5 years and NIL beyond 5 years. This pertains to office lease. The rental expenditure incurred
during the year was $9,646 ( 2018: $9,829 )
NOTE 14: CONTINGENT LIABILITIES AND CONTINGENT ASSETS
The Directors are not aware of any other contingent liabilities or contingent assets other than mentioned elsewhere
in the financial report.
NOTE 15: CASH FLOW INFORMATION
(a) Reconciliation of Cash
30-Jun-19
$
30-Jun-18
$
Cash at Bank and in Hand
1,524,849
1,101,614
(b) Reconciliation of Cash Flow from Operations
with Operating Loss after Income Tax
Operating loss after income tax
Non-cash flows:
Debt Forgiveness (income)
Depreciation and amortisation
Prov for impairment of plant and equipment
Prov Impairment Mine Development
Changes in assets and liabilities
(Increase)/decrease in trade and other receivables
(Increase)/decrease in other assets
Increase/(decrease) in liabilities
Net outflow from operations
(33,581)
(610,000)
0
0
171,624
(26,753)
0
(101,239)
(599,949)
(1,854,708)
0
8,109
28,819
911,347
23,726
255,630
162,705
(464,372)
During the year, there were no non-cash financing or investing activities other than 9,000,000 Fully paid shares
issued for acquisition of Golden Chimney Project to Carmichael Prospecting Company Pty Limited , valued at
$0.005 per share totalling $45,000.
The Company also issued 142,184,223 Unlisted Options for a consideration of $0.0001 per option for
corporate advisory and lead manager services to DJ Carmichael Pty Limited and their nominees. The options
are exercisable at $0.01 per option expiring on 29/11/2019.
NOTE 16: RELATED PARTY TRANSACTIONS
There are no related party transactions except for payments in normal course of business at arm’s length.
Rashmi Loyalka, Chartered Accountant is wife of Director Sanjay Loyalka, is employed on a part time basis as
Manager Finance and Commercial and is paid remuneration in the capacity of suitably qualified employee of
Page 51
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S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NIL (2018: $8,333). Disclosures relating to key management personnel compensation are set out in Note 2 to
the financial statements, and in the Remuneration Report contained within the Directors’ Report.
Davide Bosio was appointed as Director of the company on 4th October 2018. He is a Director of DJ Carmichael
Pty Limited (ABN 26 003 058 857) and Carmichael Prospecting Company Pty Limited (ACN 627 934 025).
A “Corporate advisory services mandate” agreement was entered in normal course of Business for capital
raising on 28th September, 2018 with DJ Carmichael Pty Limited (DJC). Consequently, the Company paid $5000
per month to DJC, beginning October 2018 towards corporate advisory and 6% as Lead Manager and
underwriting Fees for the Rights issue completed in November 2018.
The Company also issued 142,184,223 Unlisted Options for a consideration of $0.0001 per option for
corporate advisory and lead manager services to DJC and their nominees as per “Corporate advisory services
mandate” agreement dated 28th September, 2018 and Shareholder’s approval in Nov 2018 AGM. The options
are exercisable at $0.01 per option expiring on 29/11/2019.
The “Corporate advisory services mandate” agreement with DJC terminated in August 2019.
An option fee of $10,000 was paid to Carmichael Prospecting Company Pty Limited for the option to acquire
Western Australian Exploration Licence application for Golden Chimney (E40/378) and Coolgardie (E15/1671)
pursuant to “Binding terms sheet” dated 3rd October 2018 entered in normal course of business.
Consequently, 9,000,000 Fully paid shares were issued for acquisition of Golden Chimney Project to
Carmichael Prospecting Company Pty Limited, valued at $0.005 per share totalling $45,000 as per
Shareholder’s approval in Nov 2018 AGM.
NOTE 17: FINANCIAL INSTRUMENTS
a. Financial Risk Management
The Company’s financial instruments consist mainly of deposits with banks and accounts receivable and
payable.
The main purpose of non-derivative financial instruments is to raise finance for the Company’s operations.
Derivatives are not currently used by the Company for hedging purposes. The Company does not speculate in
the trading of derivative instruments.
i. Treasury Risk Management
The senior executives of the Company meet on a regular basis to analyse currency and interest rate exposure
and to evaluate treasury management strategies in the context of the most recent economic conditions and
forecasts.
ii. Financial Risks
The main risks the Company is exposed to through its financial instruments are interest rate risk, liquidity risk
and credit risk.
Interest rate risk
The Company does not have any debt that may be affected by interest rate risk.
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S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
Sensitivity analysis
At 30 June 2019, if interest rates had changed by -/+ 25 basis points from the weighted average rate for the
year with all other variables held constant, post-tax loss for the Company would have been $6,000
lower/higher (2018 $5,026 lower/higher) as a result of lower/higher interest income from cash and cash
equivalents.
Liquidity risk
The Company 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 to
recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as
disclosed in the Statement of financial position and notes to the financial statements.
The Company does not have any material credit risk exposure to any single receivable or group of receivables
under financial instruments entered into by the economic entity.
b. Fair value estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or
for disclosure purposes. All financial assets and financial liabilities of the Company at the balance date are
recorded at amounts approximating their carrying amount.
The carrying value less impairment provision of trade receivables and payables are assumed to approximate
their fair values due to their short-term nature.
c. Interest Rate Risk-
The Company’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate
as a result of changes in market interest rates and the effective weighted average interest rate for each class of
financial assets and financial liabilities comprises:
Floating Interest
Rate
Fixed Interest Rate
1 Year or Less
1 to 5 Years
Non Interest
Bearing
Total
Weight Effective
Interest Rate
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
$
$
$
$
$
$
$
$
$
$
%
%
Cash
516,320
165,790
1,003,555
928,108
Other Assets
(Security Deposits)
Trade and other
receivables
Total Financial
Assets
Financial Liabilities
Trade and other
payables
Total Financial
Liabilities
0
0
0
0
735,000
735,000
0
0
516,320
165,790
1,738,555
1,663,108
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
4,974
7,716
1,524,849
1,101,614
1.71%
1.92%
103,700
103,700
838,700
838,700
2.20%
2.13%
50,843
24,089
50,843
24,089
N/A
N/A
0
159,517
135,505
2,414,392
1,964,403
0
0
116,967
962,779
116,967
962,779
N/A
N/A
116,967
962,779
116,967
962,779
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S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 18: OPERATING SEGMENTS
The Company operates predominately in one segment involved in mineral exploration and development.
Geographically, the entity is domiciled and operates in one segment being Australia. In accordance with AASB
8 Operating Segments, a management approach to reporting has been applied. The information presented in
the Statement of Profit or Loss and other Comprehensive Income and the Statement of Financial Position
reflects the sole operating segment.
NOTE 19: SHARE-BASED PAYMENTS
Share based payments were made for $45,000 towards acquisition of Golden Chimney as per Note 15.
Issue of Options:
On 29 September 2018 the Company and DJ Carmichael Pty Ltd (DJC) entered into a mandate agreement
pursuant to which DJ Carmichael is to provide corporate advisory services (including Lead Manger and
Underwriting services) to the Company (Mandate). Pursuant to the Mandate the Company agreed to offer
142,184,223 unlisted Options to DJ Carmichael (and/or its nominees) which DJ Carmichael can subscribe for at
an issue price of $0.0001 per Option to raise approximately $14,218. The expiry date of the option is 29
November 2019. The exercise price of options is $0.01 per option.
As the options to DJC are share based payments, they have been valued using Black Scholes Model for a fair
value of $295,521 with credit to share based payment reserve in Equity.
The consideration of $14,218 received from DJC has been reduced from the Fair value arrived at using the
Black Scholes Mode and the balance of $281,303 has been expensed as capital raising cost.
Details of Fair valuation:
P= Current Price of share
X=Strike price
r=Risk free rate
t=expiry period
ό=volatility
$ 0.0080 On Grant date 23/11/2018 - AGM date
$ 0.0100
2.030% 1 year Australian Govt. Bond rate
371 Days
100.00%
Value of call option
$ 0.002598 per option
OPTIONS:
Number of options
Valuation of options:
Less: Discount since unlisted
142,184,223
$ 369,401
$ 73,880
$ 295,521
No share based payments were made in the prior financial year.
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S H R E E M I N E R A L S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 20: ACCOUNTING STANDARDS NOT YET EFFECTIVE
AASB 16: Leases applies to annual reporting periods beginning on or after 1 January 2019.
This Standard supersedes AASB 117 Leases, Interpretation 4 Determining whether an Arrangement contains a
Lease, AASB intrpretation 115 Operating Leases-Incentives and AASB intrpretation 127 Evaluating the
Substance of Transactions Involving the Legal Form of lease. AASB 16 sets out the principles for the
recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases
under a single on-balance sheet model similar to the accounting for finance leases under AASB 117.
The key features of AASB 16 are as follows:
Lessees are required to recognise assets and liabilities for all leases with a term of more than 12 months,
unless the underlying asset is of low value.
A lessee measures right-of-use assets similarly to other non-financial assets and lease liabilities similarly to
other financial liabilities.
Assets and Liabilities arising from the lease are initially measured on a present value basis. The measurement
includes non-cancellable lease payments (including inflation-linked payments), and also includes payments to
be made in optional periods if the lessee is reasonably certain to exercise an option to extend to lease, or not
to exercise an option to terminate the lease.
AASB 16 contains disclosure requirements for leases.
For Operating lease commitments, the Company expects to recognise right-of-use assets of approximately
$31,917 on 1 July 2019, lease liabilities of $32,135. The net current assets will be $24,797 lower due to the
presentation of a portion of the liability as a current liability. The Company expects that net profit after tax will
decrease by approximately $1,277 for 2020 as a result of adopting the new rules.
Other standards not yet applicable
There are no other standards that are not yet effective and that would be expected to have a material impact
on the Company in the current or future reporting periods and on foreseeable future transactions.
NOTE 21: AFTER BALANCE SHEET DATE EVENTS
There has not arisen in the interval between the end of the financial year and the date of this report any item,
transaction or event of a material or unusual nature likely, in the opinion of the Directors of the Company to
affect substantially the operations of the Company, the results of those operations or the state of affairs of the
Company in subsequent financial years.
NOTE 22: SUBSIDIARIES
The Company has 100% interest in SHH Prospecting Pty Ltd. incorporated in Australia during the year for $1.
The subsidiary has been dormant since incorporation. As the subsidiary has no assets or liabilities,
consolidated financial statements have not been prepared.
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S H R E E M I N E R A L S L T D
DIRECTORS’ DECLARATION
1. in the opinion of the directors of Shree Minerals Limited (‘the Company’):
(a) The financial statements and notes as set out on pages 27 to 55 are in accordance with the Corporations
Act 2001, including:
(i) giving a true and fair view of the financial position of the Company as at 30 June 2019 and of
its performance, as represented by the results of its operations and its cash flows, for the
financial year ended on that date; and
(ii) complying with Australian Accounting Standards, the Corporations Regulations 2001, and
other mandatory professional reporting requirements; and
(b) The audited remuneration disclosures included in the Directors’ report for the year ended 30 June 2019,
comply with section 300A of the Corporations Act 2001.
(c) Having regard to matters as set forth in Note 1, there are reasonable grounds to believe that the Company
will be able to pay its debts as and when they become due and payable.
(d) The Company has included in the notes to the financial statements an explicit and unreserved statement of
compliance with International Financial Reporting Standards.
2. The directors have been given the declarations required by Section 295A of the Corporations Act from the
chief executive officer and chief financial officer for the financial year ended 30 June 2019.
Dated at Unit 38, 18 Stirling Highway, Nedlands, WA 6009 this 17th day of September 2019.
Signed in accordance with a resolution of the directors:
_______________________
Sanjay Loyalka
Director
Page 56
For personal use only
Stantons International Audit and Consulting Pty Ltd
trading as
Chartered Accountants and Consultants
PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
SHREE MINERALS LIMITED
Report on the Audit of the Financial Report
Our Opinion
We have audited the financial report of Shree Minerals Limited (the Company), which comprises the statement of
financial position as at 30 June 2019, the statement of profit or loss and other comprehensive income, the
statement of changes in equity and the statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies, and the directors' declaration.
In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act
2001, including:
(i)
giving a true and fair view of the Company’s financial position as at 30 June 2019 and of its
financial performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Company in accordance with the auditor independence requirements of
the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards
Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters
We have determined that there are no key audit matters to communicate in our report.
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Company's annual report for the year ended 30 June 2019 but does not include the financial report and our
auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
Liability limited by a scheme approved
under Professional Standards Legislation
Page 57
For personal use only
Stantons International Audit and Consulting Pty Ltd
trading as
Chartered Accountants and Consultants
PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the Company’s ability to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the financial report.
The procedures selected depend on the auditor's judgement, including the assessment of the risks of material
misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation of the financial report that gives a true and fair view
in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity's internal control.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial report.
We conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the
financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
Liability limited by a scheme approved
under Professional Standards Legislation
Page 58
For personal use only
Stantons International Audit and Consulting Pty Ltd
trading as
Chartered Accountants and Consultants
PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause
the company to cease to continue as a going concern.
We evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in Internal control that we identify during our
audit.
The Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements.
We also provide the Directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, related safeguards.
Report on the Remuneration Report
We have audited the Remuneration Report included in pages 19 to 24 of the directors’ report for the year ended
30 June 2019. The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to
express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian
Auditing Standards.
Opinion on the Remuneration Report
In our opinion, the Remuneration Report of Shree Minerals Limited for the year ended 30 June 2019 complies
with section 300A of the Corporations Act 2001.
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(Trading as Stantons International)
(An Authorised Audit Company)
Samir Tirodkar
Director
West Perth, Western Australia
17 September 2019
Liability limited by a scheme approved
under Professional Standards Legislation
Page 59
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S H R E E M I N E R A L S L T D
SHAREHOLDER INFORMATION
ADDITIONAL INFORMATION
The following additional information not shown elsewhere in the report is required by the Australian Securities
Exchange Ltd in respect of listed public companies only. This information is current as at 17th September 2019.
SUBSTANTIAL SHAREHOLDERS
The company has received substantial shareholder notices from;
– Mr Sanjay Loyalka (47,840,358 ordinary shares)
– Rajesh Bothra (175,499,630 ordinary shares)
– DJ Carmichael Pty Ltd (36,114,006 ordinary shares)
ISSUED SECURITIES
Refer note 11 of the financial statements.
VOTING RIGHTS
The voting rights attached to the Fully Paid Ordinary shares of the Company are:
1. At a meeting of members or classes of members each member entitled to vote may vote in person or by
proxy or by attorney; and
2. On a show of hands every person present who is a member has one vote, and on a poll every person
present in person or by proxy or attorney has one vote for each ordinary share held.
DISTRIBUTION SCHEDULE – SHAREHOLDINGS AS AT 10th September 2019
Securities
Fully Paid Ordinary Shares
Holdings Ranges
1-1,000
1,001-5,000
5,001-10,000
10,001-100,000
100,001-99,999,999,999
Totals
Holders
Total Units
%
10
15
163
189
233
610
2,547
51,744
1,591,244
8,750,625
597,340,733
607,736,893
0.000
0.009
0.262
1.440
98.289
100.000
UNMARKETABLE PARCELS
There are 336 unmarketable parcels as at 10th September 2019 totalling 6,357,153 ordinary shares.
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S H R E E M I N E R A L S L T D
SHAREHOLDER INFORMATION
20 LARGEST SHAREHOLDERS AS AT 10th September 2019
Holder Name
RB INVESTMENTS PTE LTD
DJ CARMICHAEL PTY LTD
IACG PTY LTD
CHINA ALLIANCE INTERNATIONAL
MR SANJAY KUMAR LOYALKA
TALLTREE HOLDINGS PTY LTD
OCEANIA COAL RESOURCES NL
REPLAY HOLDINGS PTY LTD
WIMALEX PTY LTD
GROUP SEVENTY THREE PTY LTD
PERSHING AUSTRALIA NOMINEES
MEGAWILD ENTERPRISES PTY LTD
MRS JUDITH SUZANNE PIGGIN and
MR SUKHDEEP SINGH
MR WAYNE JEFFERY MARCH and
SCINTILLA STRATEGIC
AYMON PACIFIC PTY LTD
KOOMBA HOLDINGS PTY LTD
ULLAPOOL INVESTMENTS PTY LTD
ROSECLIFF HOLDINGS PTY LTD
Total Securities of Top 20 Holdings
Total of Securities
Balance
172,621,723
36,114,006
25,809,078
23,223,632
21,931,280
17,000,000
15,000,000
10,498,004
10,000,000
8,000,000
7,825,392
7,402,907
6,878,185
5,818,014
5,000,000
4,912,989
4,912,989
4,800,000
4,400,000
4,375,000
396,523,199
607,736,893
%
28.404%
5.942%
4.247%
3.821%
3.609%
2.797%
2.468%
1.727%
1.645%
1.316%
1.288%
1.218%
1.132%
0.957%
0.823%
0.808%
0.808%
0.790%
0.724%
0.720%
65.246%
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S H R E E M I N E R A L S L T D
CORPORATE GOVERNANCE STATEMENT
This statement outlines the main corporate governance practices in place during the financial year.
The Directors on behalf of the shareholders monitor the business affairs of the Company. For this, they
formally have adopted a Corporate Governance Charter, which is designed to encourage Directors and other
Shree personnel to focus their attention on accountability, risk management, and ethical conduct. The
Company has adopted the following policies, protocols, and corporate governance structures:
Structure of Board and Committees
Nominations and Remuneration Committee Charter
Audit and Risk Management Committee Charter
Board Members’ Code of Conduct
Conflict of Interest Protocol
Group Code of Conduct/Values
Risk Management Policy
Policy on the Trading of Company’s Shares
Release of Price Sensitive Information
Board Calendar (Strategic Governance Issues)
Board and Management Performance Enhancement Policy
This statement describes Shree Minerals Ltd’s position in relation to each of the recommendations set by the
ASX Corporate Governance Council (“Recommendations”). The Recommendations are set out
in the
ASX Corporate Governance Council’s Corporate Governance Principles and recommendations (3rd Edition) so
as to ensure that its practices are largely consistent with those Recommendations from time to time. The
Corporate Governance Charter will be reviewed and adjusted, as required, on an on-going basis including in
line with the ASX Corporate Governance Council amendments to the Recommendations.
The Company is committed to implementing high standards of corporate governance. In determining what
those high standards should involve the Company has turned to the ASX Corporate Governance Council’s
Principles of Good Corporate Governance and Best Practice Recommendations. The Company is pleased to
advise that the Company’s practices are largely consistent with those ASX guidelines.
Unless disclosed below, all the best practice recommendations of the ASX Corporate Governance Council have
been applied for the entire financial year ended 30 June 2019.
Board Composition
The skills, experience, and expertise relevant to the position of each director who is in office at the date of the
annual report and their term of office are detailed in the director’s report.
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S H R E E M I N E R A L S L T D
CORPORATE GOVERNANCE STATEMENT
The Board sets out below its “if not why not” report in relation to those matters of corporate governance
where the Company’s practices depart from the Recommendations
RECOMMENDATION
SHREE MINERALS LIMITED CURRENT PRACTICE
1.1
The role of the Board and Management.
1.2
Appointment and re-election of Board members.
1.3 Written agreements.
1.4
Company Secretary
1.5
Diversity
1.6
Board Evaluation
1.7
Performance evaluation of senior executives
2.1
Nomination Committee
2.2
Board and skills matrix
Board
Satisfied.
at
Charter
www.shreeminerals.com in the Corporate Governance
Statement.
available
is
Satisfied. Procedures For Selection And Appointment Of
Directors is available at www.shreeminerals.com in the
Corporate Governance Statement.
Satisfied. All directors and senior executives are provided
with formal letter of appointment which sets out the
terms and conditions of appointment including their
duties, rights, responsibilities and expectations.
Satisfied. The company secretary is accountable directly
to the board on all matters to do with the proper
functioning of the board.
Not satisfied. The company considers that given the
current small size of the company’s operations where
there are very few employees, this objective is not
practical to be achieved till such time that the company’s
operations are increased. Accordingly, the company has
not established a policy concerning diversity.
It is the policy of the Board to conduct annual evaluations
of its effectiveness and that of individual Directors.
Whilst the performance of the Board is appraised on an
ongoing basis, during the year no formal appraisal was
conducted.
Whilst the performance of management is appraised on
an ongoing basis.
During the year no formal appraisal of management was
conducted.
Not satisfied. The Board consider that given the current
size of the board, this function is efficiently achieved with
full board participation. Accordingly, the Board has not
established a nomination committee.
Satisfied. The Board has been formed so that it has
effective
to
adequately discharge its responsibilities and duties given
its current size and scale of operations.
composition,
commitment
size and
Please also refer to the Procedures For Selection And
is available at
Appointment Of Directors which
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S H R E E M I N E R A L S L T D
CORPORATE GOVERNANCE STATEMENT
RECOMMENDATION
SHREE MINERALS LIMITED CURRENT PRACTICE
www.shreeminerals.com in the Corporate Governance
Statement.
2.3
2.4
Size and Composition of the Board
Disclosed in the Directors report.
A majority of the board should be
directors.
independent
Not Satisfied. Due to the size of the company and its
operations the Board has determined increasing the size
of the Board to achieve this would not be efficient.
2.5
The chair should be an independent director.
Not Satisfied. Due to the size of the company and its
operations.
2.6
Induction Program.
3.1
Companies should have a code of conduct and disclose
the code or a summary of the code
.
4.1
The board should establish an audit committee.
4.2
The board should receive assurance from the chief
executive officer (or equivalent) and the chief financial
officer (or equivalent) that the declaration provided in
accordance with section 295A of the corporations Act
is founded on a sound system of risk management and
internal control and that the system is operating
effectively
in relation to
financial reporting risks.
in all material respects
4.3
External Auditor at AGM
5.1 Make timely and balanced disclosure
informal
Non
induction process exists. The process
includes the new Directors meeting with the other Board
members and the senior management in order to gain an
insight into the key issues and culture of the Company.
Satisfied. The Code of conduct is available at
www.shreeminerals.com in the Corporate Governance
Statement.
Not satisfied. The Board consider that given the current
size of the board, this function is efficiently achieved with
full board participation. Accordingly, the Board has not
established an audit committee.
Satisfied.
declaration pursuant to the 2019 financial period.
The Board has received a section 295A
The Company has ensured that its external auditor
attends its AGM and is available to answer questions from
security holders relevant to the audit.
Satisfied. Continuous disclosure policy is available at
www.shreeminerals.com in the Corporate Governance
statement.
6.1
Information on website
The company has provided information about itself and
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S H R E E M I N E R A L S L T D
CORPORATE GOVERNANCE STATEMENT
RECOMMENDATION
SHREE MINERALS LIMITED CURRENT PRACTICE
6.2
Investor relations
6.3
Security holders meetings
6.4
Electronic communication
7.1
Companies should establish policies for the oversight
and management of material business risks and
disclose a summary of those policies.
7.2
Implementation of risk management systems and risk
review.
7.3
Internal Audit function
7.4
Sustainability risks.
Page 65
its governance to investors via its website.
Shareholders communication strategy
Satisfied.
is
available at www.shreeminerals.com in the Corporate
Governance statement.
The Company has adopted the ASX Guidelines for Notice
of Meetings.
Shareholders communication strategy
is available at
www.shreeminerals.com in the Corporate Governance
statement.
The Board consider that given the current size of the
board, this function is efficiently achieved with full board
participation. Accordingly, the Board has not established
a Risk committee.
at
program
Risk management
www.shreeminerals.comin the Corporate Governance
statement.
available
is
The Board is responsible for reviewing annually its risk
management system. The review for this year is yet to be
completed.
Given the size of the current operations, currently there is
no internal audit activity undertaken.
The Company manages its exposure to economic risk and
environmental risk while it does not consider that it
currently has any material exposure
social
sustainability risks, however will monitor the exposure.
to
External Risk factors that materially have an impact
include :
1. Fluctuations in commodity prices and impacts of
ongoing global economic volatility may
negatively affect our results, including cash flows
and asset values.
2. Currency exchange rate fluctuations
3. Financial : Liquidity and cash flow risks
4.
5. Unexpected natural and operational
Increased costs
catastrophes
EPA Tasmania has notified the company that that the
variation of the Environment permit in Nov’13 to allow a
temporary PAF rock dump for DSO south pit has been
rendered invalid in a judicial review by the Court in
Dec’14. As a consequence, the current PAF storage
temporary dump is not compliant. To resolve the issue,
the Company is in discussions with the EPA and the
For personal use only
S H R E E M I N E R A L S L T D
CORPORATE GOVERNANCE STATEMENT
RECOMMENDATION
SHREE MINERALS LIMITED CURRENT PRACTICE
Circular Head Council to finalise application for a new
permit.
All other government approvals for the project remain
include the Mining Lease and Federal
valid. These
Government Environmental Approval.
licences
The Company holds various exploration and mining
licences to regulate its activities in the State of Tasmania,
Australia. These
conditions and
regulations with respect to the rehabilitation of areas
disturbed during the course of its activities. As far as the
Directors are aware, there has been no known breach of
the Company’s
licence conditions other than those
disclosed in the Directors report.
include
implementation of best practice
social and
The
environmental practices, well beyond simple compliance,
has been an integral part of Company's philosophy. Shree
Minerals also recognises the opportunities that the
presence of our project creates to support Devil Facial
Tumour research. Hence, Devil numbers around the mine
site are monitored as part of the mine’s operational
monitoring of the effectiveness of its devil (and quoll)
impact mitigation measures, and these observations will
be valuable data for the Save the Tasmanian Devil
Program (STDP).
The Company recognises the importance of identifying
and managing risks and ensuring appropriate control
measures are in place.
8.1
The board should establish a remuneration committee. Not Satisfied. The Board consider that given the current
size of the board, this function is efficiently achieved with
full board participation. Accordingly, the Board has not
established a remuneration committee.
8.2
Executive versus non- executive remuneration.
Current Remuneration policies are set out
Company’s Remuneration Report.
in the
8.3
Equity based remuneration.
Securities
The
at
www.shreeminerals.com in the Corporate Governance
statement.
available
Policy
is
Other Information
Further information relating to the company’s corporate governance practices and policies has been made
publicly available on the company’s web site at www.shreeminerals.com.
Page 66
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