ACN 122 995 073
ANNUAL REPORT
30 JUNE 2019
CONTENTS
ANNUAL REPORT
FOR THE YEAR ENDED 30 JUNE 2019
CORPORATE DIRECTORY
DIRECTORS’ REPORT
AUDITOR’S INDEPENDENCE DECLARATION
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED STATEMENT OF CASH FLOWS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DIRECTORS’ DECLARATION
INDEPENDENT AUDITOR’S REPORT
CORPORATE GOVERNANCE STATEMENT
ASX ADDITIONAL INFORMATION
2
3
14
15
16
17
18
19
44
45
48
48
1
CORPORATE DIRECTORY
CORPORATE DIRECTORY
Directors:
Mr Eddie King
Mr Steven Russell Groves
Mr Joshua Alan Letcher
Company Secretary:
Mr Mauro Piccini
Registered Office:
Suite 2, Level 1
1 Altona Street
West Perth WA 6005
Share Registry:
Advanced Share Registry Services Limited
110 Stirling Highway
NEDLANDS WA 6009
Telephone (08) 9389 8033
Facsimile (08) 9262 3723
Banker:
Westpac Banking Corporation
Level 13, 109 St Georges Terrace
Perth WA 6000
Auditor:
BDO Audit (WA) Pty Ltd
38 Station Street
Subiaco WA 6008
Securities Exchange:
Listed on the Australian Securities Exchange ASX Code: SI6
2
DIRECTORS’ REPORT
DIRECTORS’ REPORT
The Directors present their report on the consolidated entity consisting of Six Sigma Metals Limited and its controlled entity
(“the Group”) for the year ended 30 June 2019. Directors held office for this entire period unless otherwise stated.
DIRECTORS
The following persons were Directors of the Company during the whole of the financial year and up to the date of this Report:
Mr Eddie King
Mr Steven Russell Groves
Mr Joshua Alan Letcher
Mr Edwin Edward Bulseco (resigned 31 July 2018)
COMPANY SECRETARY
Mr Mauro Piccini
Mr Piccini is a Chartered Accountant (CA) and a member of the Governance Institute of Australia (GIA). He specialises in
corporate advisory, company secretarial and financial management services. Mauro spent 7 years at the ASX and possesses
core competencies in publicly listed and unlisted company secretarial, administration and governance disciplines.
PRINCIPAL ACTIVITIES
The Group’s principal activities during the year have been the continuing exploration in Botswana. The main business activities
in recent years have been focused on the exploration development for base metals and in particular for nickel and copper and
PGEs within the Group’s tenement portfolio located over the Limpopo belt on the eastern side of Botswana.
OPERATING RESULTS
The consolidated loss for the year attributable to the members of the Company was:
Operating loss after income tax
2019
$
Restated(i)
2018
$
(1,196,239)
(1,871,186)
Net consolidated loss attributable to members of the Company
(1,871,186)
refer to note 1(b) & 13 for details regarding the restatement as a result of a change in accounting policy.
(1,196,239)
(i)
DIVIDENDS
As the Group’s principal activities are minerals exploration it has not as yet paid any dividends and does not see any short–
term return to shareholders via dividend payments.
3
DIRECTORS’ REPORT
REVIEW OF OPERATIONS
BOTSWANA ASSETS
The Group is the holder of exploration licences covering approximately 1,500km2 of terrain prospective for Ni-Cu-Co-PGE-Au-
Ag and lithium and tantalum in eastern Botswana.
LITHIUM AND TANTALUM EXPLORATION
The Group continues to assess the Lithium and Tantalum exploration potential of the Company’s portfolio in Botswana.
BCL JOINT VENTURE
Three of the Group’s licences Licences (PL 110/94, PL 111/94 and PL 54/98), covering 185km2, have been in Joint Venture with
BCL Limited (a major Ni-Cu miner in Botswana) since 2014. In October 2016, BCL was placed into Liquidation and all work on
the JV assets ceased. The Ministry of Minerals Resources, Green Technology and Energy Security has subsequently suspended
(put on hold) the renewal date of the three Prospecting Licences (see ASX Announcement 25 September 2017). This suspension
means that the current renewal date of 31 March 2018 has been frozen for an indefinite period pending completion of the
Liquidation process.
This decision does not affect SI6’s right to continue exploring these licences. SI6, via its African subsidiary AML, will apply for
renewals for all three licences as stipulated in the Mines and Minerals Act when advised by the Ministry of the new renewal
dates for the licenses.
The liquidation process is ongoing as of the date of this report.
Six Sigma Metals focus was on assessing new opportunities for potential involvement by the Company, reviewing the
exploration potential of the Company’s portfolio of assets in Botswana and continuing to monitor the BCL Limited liquidation
process concerning the Company’s affected Botswana assets.
The Company continued desktop assessments of its Botswana portfolio and constructed fieldwork programs for
implementation once the liquidation of BCL is resolved. In particular, the recently granted licence PL389/2018 is under review
where very strong historic nickel and copper targets show highly elevated base metal soil anomalism coincident with ultramafic
rocks and EM conductors are present. Fieldwork aimed at confirming the historic results with a view to defining drill targets is
proposed.
The Company is also reviewing the Dibete and Airstrip copper prospects where previous drilling has provided encouragement
for the presence of significant copper mineralisation at both prospects. Fieldwork programs, including deep-looking
geophysics, are being assessed, with a view to locating deep, massive-sulphide copper drill targets.
CORPORATE ACTIVITY
Financial Position
The financial results of the Company for the year ended 30 June 2019 are:
Cash and cash equivalents
Net Assets/ (Net Liabilities)
Revenue
Net loss after tax
30-Jun-19
$
1,230,860
1,090,131
18,547
(1,196,239)
Restated(i)
30-Jun-18
$
1,772,169
1,904,644
5,896
(1,871,186)
(i) refer to note 1(b) & 13 for details regarding the restatement as a result of a change in accounting policy.
4
DIRECTORS’ REPORT
Dividends
No dividends have been paid or declared by the Company since the end of the previous financial year. No dividend is
recommended in respect of the current financial year.
Significant Changes in the State of Affairs
Significant changes in the state of affairs of the Group during the financial year were as follows:
Board Changes
On 31 July 2018 Mr Edwin Bulseco resigned as Chairman, Non-Executive Director of the Company and Mr Eddie King was
appointed to chairman in his place.
Share Placements
The Company undertook a capital raising initiative via a combination of share placement and a share Purchase Plan. The
Company received $417,500 by the way of the issue of 104,375,00 ordinary shares at $0.004.
After Balance Date Events
On 16 August 2019 the Company issued 62,500,000 shares raising $250,000 at $0.004, through the share purchase plan. As a
part of the share purchase plan (SPP) 31,250,000 unquoted options were issued for nil cash consideration to the subscribers
in the SPP on the basis of 1 option for every 2 shares held.
On 22 August 2019 the Company 20,625,000 ordinary fully paid shares were issued at an issue price of $0.004 per share
under Tranche 2 of the placement.
On the same day 62,500,000 attaching unquoted options (exercise price of $0.008 expiring 1 July 2022) were issued as a part
of the placement on a 2 for 1 basis for both tranche 1 and 2.
20,000,000 lead manager options were also issued (exercise price of $0.008 expiring 1 July 2022) for nil cash consideration as
remuneration for their services.
Other than the matters discussed above, 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 and unusual nature likely, in the opinion of the Directors of the
Company to affect the operations of the Group, the results of these operations or the state of affairs of the Group in
subsequent years.
Future Developments
The Group will be focused on continuing to develop value from exploration across its tenement package in Botswana.
INFORMATION ON DIRECTORS
Steven Groves – Non- Executive Director
Mr Groves has a Bachelor of Applied Geology (Honours) and completed a Master’s of Economic Geology from CODES-SRC at
the University of Tasmania.
Mr Groves is currently a non-executive director of Six Sigma Metals Ltd (ASX: SI6) and brings 25 years of geological experience
in the mining industry including exploration and management roles with BHP Billiton (ASX: BHP), Newmont Mining, Newcrest
Mining (ASX: NCM), A-Cap Resources (ASX: ACB) and Botswana Metals.
During the past three years, Mr Groves held the following directorship in another ASX listed company:
• Managing Director of Sultan Resources Ltd (current)
5
DIRECTORS’ REPORT
Eddie King– Non-Executive Chairman
Mr King is a qualified Mining Engineer. He holds a Bachelor of Commerce and Bachelor of Engineering from the University of
Western Australia. His past experience includes being a manager for an investment banking firm, where he specialised in the
analysis of technical and financial requirements of bulk commodity and other resources projects.
During the past three years, Mr King held the following directorships in other ASX listed companies:
Pure Minerals Limited (current);
European Cobalt Limited (current);
Easter Iron Limited (current),
•
•
•
• Ragnar Metals Limited (formerly, Drake Resources Limited) (current);
•
Sultan Resources Limited (resigned March 2019);
• Axxis Technology Limited (resigned March 2019);
• Bowen Coking Coal Limited (resigned December 2018); and
•
Lindian Resources Limited (resigned January 2018).
Mr Joshua Alan Letcher – Non- Executive director
Mr Letcher has experience working in various operational and technical roles within the African and Australian mining industry.
He was the founder of Allotropes Diamonds Pty Ltd and was responsible for its acquisition by Newfield Resources Ltd (ASX:
NWF) which provided the company with A$4M in working capital. As CEO of Allotropes, Mr Letcher was responsible for the
development of the project from exploration to trial mining. The roles in that capacity included project management, plant
construction and commissioning, exploration management and asset acquisition. Mr Letcher served in the Royal Australian
Navy and trained as a Mechanical Engineer.
During the past three years, Mr Letcher held the following directorships in other ASX listed companies:
• Non-executive Director of Aldoro Resources Limited (current); and
•
Executive Director of Newfield Resources Ltd (from 31 March 2014 to 16 November 2015).
Edwin Bulseco – Non-Executive Chairman (resigned 31 July 2018)
Mr Bulseco has a wealth of experience in capital markets and corporate strategic planning. From 2010 to 2015, Mr Bulseco
has served as a senior equity research analyst at two of Australia’s oldest stockbrokers.
Edwin has more recently worked in corporate finance for numerous boutique East Coast based corporate advisories. During
this period, Mr Bulseco gained considerable capital markets and corporate experience.
During the past three years, Mr Bulseco held the following directorships in other ASX listed companies:
• Non-executive Director of Greenpower Energy Ltd (Resigned);
• Non-Executive Director of Transcendence Technologies Ltd (Resigned 28 September 2018);
•
Chairman and Non-Executive Director of Sultan Resources Ltd (Resigned May 18); and
• Non-executive Director of Red Gum Resources Ltd now known as MCS Services Ltd (2 March 2014 to 18 December
2015).
6
Interests in Shares and Options of the Group and Related Bodies Corporate
The following table sets out each current Director’s relevant interest in shares, options and performance rights of the Group
or a related body corporate as at the date of this report.
DIRECTORS’ REPORT
Director
Steven Groves
Eddie King
Joshua Letcher
Total
Directors' Meetings
Ordinary
Shares
Unlisted Share
Options
438,492
750,000
-
1,188,492
6,666,667
-
6,666,667
13,333,334
The number of meetings of the Group’s Board of Directors held during the year ended 30 June 2019, and the numbers of
meetings attended by each director were:
Name
E King
S Groves
E Bulseco
J Letcher
Board of Directors
Number eligible to
attend
5
5
-
5
Number attended
5
5
-
5
In addition to the scheduled Board meetings, Directors regularly communicate by telephone, email or other electronic means,
and where necessary, circular resolutions are executed to effect decisions.
Due to the size and scale of the Group, there is no Remuneration and Nomination Committee or Audit Committee at present.
Matters typically dealt with by these Committees are, for the time being, managed by the Board. For details of the function of
the Board, refer to the Corporate Governance Statement.
REMUNERATION REPORT (AUDITED)
Remuneration Policy
KMP have authority and responsibility for planning, directing and controlling the activities of the Group. KMP of the Group
comprise of the Board of Directors.
The Group’s broad remuneration policy is to ensure the remuneration package properly reflects the person’s duties and
responsibilities and that remuneration is competitive in attracting, retaining and motivating people of the highest quality.
No remuneration consultants were employed during the financial year.
Voting and comments made at the Company's Annual General Meeting
At the 2018 Annual General Meeting, the resolution to adopt the Remuneration Report for the year ended 30 June 2018 was
passed without amendment by 97.08% of the vote on the resolution to adopt the Remuneration Report.
The Company did not receive any specific feedback at the Annual General Meeting regarding its remuneration practices.
Remuneration Governance, Structure and Approvals
Remuneration of Directors is currently set by the Board of Directors. The Board has not established a separate Remuneration
Committee at this point in the Group’s development, nor has the Board engaged the services of an external remuneration
7
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
consultant. It is considered that the size of the Board along with the level of activity of the Group renders this impractical. The
Board is primarily responsible for:
•
The over-arching executive remuneration framework;
• Operation of the incentive plans which apply to executive directors and senior executives, including key performance
indicators and performance hurdles;
• Remuneration levels of executives; and
• Non-Executive Director fees.
Their objective is to ensure that remuneration policies and structures are fair and competitive and aligned with the long-term
interests of the Company.
Non-Executive Remuneration Structure
The remuneration of Non-Executive Directors consists of Directors’ fees, payable in arrears. The total aggregate fixed sum per
annum to be paid to Non-Executive Directors in accordance with the Company’s Constitution shall be no more than A$250,000
and may be varied by ordinary resolution of the Shareholders in a General Meeting.
Remuneration of Non-Executive Directors is based on fees approved by the Board of Directors and is set at levels to reflect
market conditions and encourage the continued services of the Directors. The chair’s fees are determined independently to
the fees of the Non-Executive Director’s based on comparative roles in the external market. In accordance with the Company’s
Constitution, the Directors may at any time, subject to the Listing Rules, adopt any scheme or plan which they consider to be
in the interests of the Company and which is designed to provide superannuation benefits for both present and future Non-
Executive Directors, and they may from time to time vary this scheme or plan.
The remuneration of Non-Executive Directors is detailed in KMP Remuneration table and their contractual arrangements are
disclosed below.
Remuneration may also include an invitation to participate in share-based incentive programmes in accordance with Company
policy.
The nature and amount of remuneration is collectively considered by the Board of Directors with reference to relevant
employment conditions and fees commensurate to a company of similar size and level of activity, with the overall objective of
ensuring maximum stakeholder benefit from the retention of high performing Directors.
Remuneration and Performance
The following table shows the gross revenue, losses, earnings per share (“EPS”) of the Company as at 30 June 2019.
Revenue ($)
Net profit/(loss) after tax ($)
EPS ($)
30-Jun-19
18,547
(1,196,239)
(0.26)
Restated(i)
30-Jun-18
5,896
(1,871,186)
(0.61)
(i) refer to note 1(b) & 13 for details regarding the restatement as a result of a change in accounting policy.
Relationship between Remuneration and Company Performance
Given the current phase of the Company’s development, the Board does not consider earnings during the current and previous
financial year when determining, and in relation to, the nature and amount of remuneration of KMP.
Executive Remuneration
The pay and reward framework for key management personnel may consist of the following areas:
a) Fixed Remuneration – base salary
b) Variable Short-Term Incentives
c) Variable Long-Term Incentives
The combination of these would comprise the key management personnel’s total remuneration.
8
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
a)
Fixed Remuneration – Base Salary
The fixed remuneration for each senior executive is influenced by the nature and responsibilities of each role and
knowledge, skills and experience required for each position. Fixed remuneration provides a base level of remuneration
which is market competitive and comprises a base salary inclusive of statutory superannuation. It is structured as a total
employment cost package.
Key management personnel are offered a competitive base salary that comprises the fixed component of pay and
rewards. External remuneration consultants may provide analysis and advice to ensure base pay is set to reflect the
market for a comparable role. No external advice was taken this year. Base salary for key management personnel is
reviewed annually to ensure the executives’ pay is competitive with the market. The pay of key management personnel
is also reviewed on promotion. There is no guaranteed pay increase included in any key management personnel’s
contract.
b)
c)
Variable Remuneration – Short -Term Incentives (STI)
Discretionary cash bonuses may be paid to senior executives annually, subject to the requisite Board and shareholder
approvals where applicable. No bonus payments were made during the financial year.
Variable Remuneration – Long-Term Incentives (LTI)
Options are issued at the Board’s discretion. Other than options disclosed in the Remuneration Report there have been
no options issued to employees at the date of this financial report.
KMP Remuneration for the year ended 30 June 2019
Details of the nature and amount of each major element of the remuneration of each KMP of Six Sigma Metals Limited for the
year ended 30 June 2019 are:
Name
Mr S R Groves
Mr E King
Mr J Letcher
Mr E Bulseco
Total
Short-term
Benefits
Cash Salary &
Fees
$
70,000
60,000
48,000
5,000
183,000
Short-term
Benefits
Other
-
18,000
-
-
18,000
Post-
employment
Benefits
Share-Based
Payments
Superannuation
$
-
-
-
-
-
$
-
-
-
-
-
Total
$
70,000
78,000
48,000
5,000
201,000
The following table shows the relative proportions of remuneration that are linked to performance and those that are fixed,
based on the amounts disclosed as statutory remuneration expense in the tables above.
Relative proportion of fixed vs variable remuneration expense
Name
Key Management Personal
Mr S R Groves
Mr E King
Mr J Letcher
Mr E Bulseco
Mr R Jimenez
Mr P J Volpe
Mr M J Hudson
Fixed Remuneration
2018
2019
At Risk – STI (%)
At Risk – LTI (%)
2019
2018
2019
2018
-
23%
-
-
-
-
-
34%
-
53%
51%
-
44%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
100%
77%
100%
100%
-
-
-
66%
100%
47%
49%
100%
56%
100%
9
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
KMP Remuneration for the year ended 30 June 2018
Details of the nature and amount of each major element of the remuneration of each KMP of Six Sigma Metals Limited for the
year ended 30 June 2018 are:
Short-term
Benefits
Post-employment
Benefits
Share-Based
Payments
Name
Mr S R Groves
Mr E King
Mr J Letcher
Mr E Bulseco
Mr R Jimenez (Co. Secretary)
(resigned 22 Dec 2017)
Mr P J Volpe (resigned 11 Dec 2017)
Mr M J Hudson (resigned 21 Aug 2017)
Total
Cash Salary &
Fees
$
84,888
3,500
37,000
41,000
25,000
300,636
2,500
494,524
Superannuation
$
-
-
-
-
-
-
-
-
Number of Options Held directly or indirectly by Key Management Personnel
$
42,000
-
42,000
42,000
-
230,162
-
356,162
Total
$
126,888
3,500
79,000
83,000
25,000
530,798
2,500
850,686
2019
Balance
1.7.2018
Mr S R
Groves
Mr E King
Mr J Letcher
Mr E Bulseco
Total
6,666,667
-
6,666,667
6,666,667
20,000,001
Granted as
Compensati
on
Exercised
Expired
Net Change
Other*
Balance
30.6.2019
Vested and
exercisable
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(6,666,667)
(6,666,667)
6,666,667
-
6,666,667
-
13,333,334
6,666,667
-
6,666,667
-
13,333,334
*Edwin Bulseco resigned 31 July 2018
Number of Shares held directly or indirectly by Key Management Personnel
Issued on
Exercise of
Options /
Performance
Rights
-
-
-
-
-
Net Change
Other*
-
-
-
(8,414,635)
(8,414,635)
Balance
30.6.2019
438,492
750,000
-
-
1,188,492
Balance
1.7.2018
Received as
Compensation
2019
Mr S R Groves
Mr E King
Mr J Letcher
Mr E Bulseco
Total
438,492
750,000
-
8,414,635
9,603,127
*Edwin Bulseco resigned 31 July 2018
-
-
-
-
-
10
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
Employment Contracts of Directors and Senior Executives
Eddie King – Chairman, Non-Executive Director
-
-
-
Contract: Commenced on 12 June 2018
Director’s Fee: $60,000 per annum
Term: No fixed term.
Joshua Letcher – Non-Executive Director
-
-
-
Contract: Commenced on 21 August 2017
Director’s Fee: $48,000 per annum
Term: No fixed term
Steven Groves – Non-Executive Director
-
-
-
-
Contract: Commenced on 1 August 2017
Director’s Fee: $60,000 per annum
Consultants Fee: $60,000 per annum (ceased August 2019)
Term: No fixed term
Edwin Bulseco – Chairman, Non-Executive Director
-
-
-
Contract: Commenced on 1 August 2017-31 July 2018
Director’s Fee: $60,000 per annum
Term: No fixed term.
Equity Instruments Issued on Exercise of Remuneration Options
No remuneration options were exercised during the financial year.
Other transactions with Directors and related parties
There were no transactions between related parties.
Loans with KMP
There were no loans made to any KMP during the year ended 30 June 2019 (2018 nil).
This is the end of the audited remuneration report
ADDITIONAL INFORMATION
Revenue
EBITDA
EBIT
Loss after income tax
Share Price
Basic EPS ($)
2019
$
18,547
(1,158,895)
(1,196,239)
(1,196,239)
0.005
(0.26)
Restated(i)
2018
$
5,896
(1,865,883)
(1,871,186)
(1,871,186)
0.013
(0.61)
Restated(i)
2017
$
47,468
(2,296,741)
(2,302,811)
(2,302,811)
0.012
(0.02)
Restated(i)
2016
$
37,561
(1,779,045)
(1,792,533)
(1,792,533
0.048
(0.02)
Restated(i)
2015
$
71,842
(7,721,785)
(7,756,621)
(7,756,621)
0.090
(0.16)
(i) refer to note 13 for details regarding the restatement as a result of a change in accounting policy.
The Company has not yet set measurable objectives for achieving gender diversity. The Company is currently not of a size that
justifies the establishment of measurable diversity objectives. As the Company develops, the Board will seek to develop a
reporting framework in the future to report the Company’s progress against the objectives and strategies for achieving a
diverse workplace which can be used as a guide to be used by the Company to identify new Directors, senior executives and
employees. The Company intends to appoint additional female Directors and employees should a vacancy arise, and
appropriately qualified and experienced individuals are available.
Full details of the Company’s Diversity Policy can be found on the Corporate Governance page of the Company’s website.
This concludes the Remuneration Report, which has been audited.
11
DIRECTORS’ REPORT
SHARES UNDER OPTION
At the date of this report, the unissued ordinary shares of the Company under option are as follows:
•
•
•
•
18,000,000 options expiring 23 March 2021, exercisable at $0.022 each;
132,436,366 options expiring July 2021, exercisable at $0.015 each;
12,500,000 options expiring 16 April 2021, exercisable at $0.022 each; and
113,750,000 options expiring 1 July 2022, exercisable at $0.008 each.
SHARES ISSUED ON EXERCISE OF OPTIONS
There were no ordinary shares of the Company issued on the exercise of options during the year ended 30 June 2019 and up
to the date of this report.
INDEMNIFICATION AND INSURANCE OF OFFICERS AND AUDITORS
The Company has indemnified the Directors and Executives of the Company for costs incurred, in their capacity as a Director
or Executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract to insure the Directors and Executives of the
Company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure
of the nature of the liability and the amount of the premium.
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the
Company or any related entity against a liability incurred by the auditor.
During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the Company
or any related entity.
ENVIRONMENTAL REGULATIONS
The company is not currently subject to any specific environmental regulation. There have not been any known significant
breaches of any environmental regulations during the year under review and up until the date of this report.
AUDITOR
BDO Audit (WA) Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001.
OFFICERS OF THE COMPANY WHO ARE FORMER PARTNERS OF BDO AUDIT (WA) PTY LTD
There are no officers of the company who are former partners BDO Audit (WA) Pty Ltd.
AUDITOR’S INDEPENDENCE DECLARATION
The lead auditor’s independence declaration for the year ended 30 June 2019 has been received and included within these
financial statements.
12
DIRECTORS’ REPORT
NON-AUDIT SERVICES
The Company may decide to employ the auditor on assignments additional to their statutory audit duties where the auditor’s
expertise and experience with the Company and/or the Company are important.
Details of the amounts paid or payable to the auditor for non-audit services provided during the year by the auditor amounted
to $7,140.
The Board of Directors has considered the position and is satisfied that the provision of the non-audit services is compatible
with the general standard of independence for auditors imposed by the Corporations Act 2001. The Directors are satisfied that
the provision of non-audit services by the auditors, as set out below, did not compromise the auditor independent
requirements of the Corporations Act 2001 for the following reasons:
•
all non-audit services have been reviewed by the Board of Directors to ensure they do not impact the impartiality and
objectivity of the auditor; and
• None of the services undermine the general principles relating to the auditor independence as set out in APES 110
Code of Ethics for Professional Accountants.
This report is signed in accordance with a resolution of Board of Directors.
Mr Eddie King
Director
27 September 2019
13
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY JARRAD PRUE TO THE DIRECTORS OF SIX SIGMA METALS
LIMITED
As lead auditor of Six Sigma Metals Limited for the year ended 30 June 2019, I declare that, to the best
of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Six Sigma Metals Limited and the entity it controlled during the period.
Jarrad Prue
Director
BDO Audit (WA) Pty Ltd
Perth, 27 September 2019
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
14
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30 June 2019
Revenue and other income
Expenses
Employment and consultancy
Administration and corporate expenses
Other expenses
Directors remuneration and fees
Professional fees
Marketing
Depreciation
Exploration Expenses
Share-based payment expense
Loss before Income Tax Expense
Income Tax Expense
Loss for the year attributable to owners of Six Sigma Metals Limited
Other Comprehensive Income for the year that may be subsequently
reclassified to the profit or loss
Exchange differences on translating foreign controlled operation
Total Comprehensive Loss attributable to owners of Six Sigma Metals
Limited
Consolidated Group
Notes
2019
Restated(i)
2018
4
5a
5b
6
$
18,547
(69,403)
(197,201)
(120,345)
(172,983)
(288,002)
(49,800)
(37,344)
(279,707)
-
$
5,896
(76,561)
(175,269)
(229,835)
(161,738)
(628,070)
(50,794)
(11,199)
(401,608)
(142,008)
(1,196,239)
-
(1,196,239)
(1,871,186)
-
(1,871,186)
15,527
88,551
(1,180,712)
(1,782,635)
Basic Loss per Share (cents per share) & Diluted Loss per Share (cents
per share)
9
(0.26)
(0.61)
(i) refer to note 1(b) & 13 for details regarding the restatement as a result of a change in accounting policy.
The accompanying notes form part of these financial statements.
15
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 June 2019
Current Assets
Cash and cash equivalents
Trade and other receivables
Total Current Assets
Non-Current Assets
Other assets
Plant and equipment
Total Non-Current Assets
TOTAL ASSETS
Current Liabilities
Trade and other payables
Provisions
Total Current Liabilities
TOTAL LIABILITIES
Net Assets (Liabilities)
Notes
10
11
14
Consolidated Group
Restated(i)
2018
$
2019
$
Restated(i)
2017
1,230,860
30,885
1,261,745
-
-
-
1,261,745
147,013
24,601
171,614
171,614
1,772,169
92,719
1,864,888
228,014
36,812
264,826
2,129,714
182,211
42,859
225,070
225,070
1,090,131
1,904,644
147,039
62,374
209,413
-
29,785
29,785
239,198
428,489
37,557
466,046
466,046
(226,848)
17,535,843
(361,769)
(17,400,922)
(226,848)
Equity
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY/(DEFICIENCY IN
EQUITY)
(i) refer to note 1(b) & 13 for details regarding the restatement as a result of a change in accounting policy.
21,402,070
156,406
(20,468,345)
21,035,871
140,879
(19,272,106)
1,090,131
1,904,644
15
16
The accompanying notes form part of these financial statements.
16
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For year ended 30 June 2019
Issued
Share
Capital
Share
Based
Payments
Reserve
Foreign
Currency
Translation
Reserve
Accumulated
Losses
Total
Equity
Balance at 1 July 2018 as previously
reported
$
$
$
$
$
21,035,871
414,097
(2,232,651)
(10,115,163)
9,102,154
Change in accounting policy
-
-
1,959,433
(9,156,943)
(7,197,510)
Balance at 1 July 2018 restated
Loss after income tax for the year
Other Comprehensive income
Total comprehensive income/(loss)
Transactions with owners in their
capacity as owners
Shares issued during the year
Share issue costs
Options issued during the year
Balance at 30 June 2019
Balance at 1 July 2017 as previously
reported
Change in accounting policy
Balance at 1 July 2017 restated
Loss after income tax for the year
Other Comprehensive income
Total comprehensive income/(loss)
Transactions with owners in their
capacity as owners
Shares issued during the year
Share issue costs
Options issued during the year
Balance at 30 June 2018(i)
21,035,871
414,097
(273,218)
(19,272,106)
1,904,644
-)
-)
-
417,500
(51,301)
-
-)
-)
-
-
-
-
-)
(1,196,239)
(1,196,239)
15,527
15,527
-)
15,527
(1,196,239)
(1,180,712)
-
-
-
-
-
-
417,500
(51,301)
-
21,402,070
414,097
(257,691)
(20,468,345)
1,090,131
17,535,843
-
17,535,843
-)
-)
-)
3,918,282
(418,254)
-
21,035,871
-
-
-
-)
-)
-)
-
-
414,097
414,097
(2,321,202)
(8,645,587)
6,569,054
1,959,433
(8,755,335)
(6,795,902)
(361,769)
(17,400,922)
(226,848)
-)
(1,871,184)
(1,871,184)
88,551
88,551
-)
88,551
(1,871,184)
(1,782,633)
-
-
-
-
-
-
3,918,282
(418,254)
414,097
(273,218)
(19,272,106)
1,904,644
(i) refer to note 1(b) & 13 for details regarding the restatement as a result of a change in accounting policy.
The accompanying notes form part of these financial statements.
17
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2019
Cash Flows from Operating Activities
Payments to suppliers and employees
Interest received
Exploration expenditure
Net Cash Used in Operating Activities
Cash Flows from Investing Activities
Purchase of plant and equipment
Net Cash Used in Investing Activities
Cash Flows from Financing Activities
Issue of share capital
Payments of share capital issue costs
Net Cash Received From Financing Activities
Consolidated Group
Notes
2019
$
Restated(i)
2018
$
(668,843)
18,547
(272,739)
(923,035)
(1,564,099)
4,505
(297,077)
(1,856,671)
19b
-
-
(18,226)
(18,226)
417,500
(51,301)
366,199
(556,836)
1,772,169
15,527
1,230,860
3,918,282
(418,254)
3,500,028
1,625,131
147,039
-
1,772,169
Net Increase/(Decrease) in Cash and cash equivalents held
Cash and cash equivalents at the Beginning of the Financial Year
Foreign currency effect on cash held
Cash and cash equivalents at the End of the Financial Year
19a
(i) refer to note 1(b) & 13 for details regarding the restatement as a result of a change in accounting policy.
The accompanying notes form part of these financial statements.
18
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a)
Reporting Entity
Six Sigma Metals Limited (referred to as “Company” or “parent entity”) is a company domiciled in Australia. The address
of the Company’s registered office and principal place of business is disclosed in the Corporate Directory of the Annual
Report. The consolidated financial statements of the Company as at and for the year ended 30 June 2019 comprise the
Company and its subsidiaries (together referred to as the “Consolidated Entity” or the “Group”).
(b)
Basis of Preparation
Statement of compliance
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards
and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as
appropriate for for-profit oriented entities. These financial statements also comply with International Financial
Reporting Standards as issued by the International Accounting Standards Board ('IASB').
Basis of measurement
The consolidated financial statements have been prepared on a going concern basis in accordance with the historical
cost convention, unless otherwise stated.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity
only. Supplementary information about the parent entity is disclosed in Note 24.
Adoption of new and revised accounting standards
A number of new or amended standards became applicable for the current reporting period for which the Company
has adopted
• AASB 15 Revenue from Contracts with Customers; and
• AASB 9 Financial Instruments.
There is no impact on the Company for the year ended 30 June 2019.
Changes to the Group’s accounting policies
Exploration and Evaluation Asset
The financial report has been prepared on the basis of retrospective application of a voluntary change in accounting
policy in accordance with AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors.
The Group previously capitalised these expenditures, accumulated exploration and evaluation expenditure and
carried forward to the extent that they were expected to be recouped through the successful development of the
area or where activities in the area have not yet reached a stage which permits reasonable assessment of the
existence of economically recoverable reserves.
The result of this accounting change means that the Group will expense exploration and evaluation expenditure as
incurred in respect of each identifiable area of interest until a time where an asset is in development.
The Board determined that the change in accounting policy will result in more relevant and no less reliable
information as the policy is more transparent and less subjective. Recognition criteria of exploration and evaluation
assets are inherently uncertain and expensing as incurred results in a more transparent Consolidated Statement of
Financial Position and Consolidated Statement of Profit or Loss and Other Comprehensive Income. Furthermore, the
change in policy aids in accountability of line management’s expenditures and the newly adopted policy is consistent
with industry practice.
The impact of the adoption of the accounting policy change has been summarised in Note 13.
19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
AASB 15 Revenue from Contracts with Customers
AASB 15 Revenue from Contracts with Customers replaces AASB 118 Revenue. AASB 15 was adopted by the Group on
1 July 2018. AASB 15 provides a single, principles-based five-step model to be applied to all contracts with customers.
The Company has considered AASB 15 in detail and determined that the impact on the Company’s sales revenue from
contracts under AASB 15 is insignificant for the year.
Impact of adoption
AASB 15 was adopted using the modified retrospective approach and such comparatives have not been restated.
There is no material impact for the Group in the current reporting year as no revenue with customers has been
recognised. There was no impact of adoption on opening retained profits as at 1 July 2018.
AASB 9 Financial Instruments
AASB 9 Financial Instruments replaces the provisions of AASB 139 Financial Instruments: Recognition and Measurement
that relate to the recognition, classification and measurement of financial assets and financial liabilities, derecognition
of financial instruments, impairment of financial assets and hedge accounting.
The adoption of AASB 9 Financial Instruments from 1 July 2018 did not give rise to any material transitional adjustments.
The new accounting policies (applicable from 1 July 2018) are set out below.
In accordance with the transitional provisions in AASB 9 (7.2.15) and (7.2.26), comparative figures have not been
restated.
Classification and measurement
The Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value
through profit or loss, transaction costs.
Under AASB 9 financial assets are subsequently measured at fair value through profit or loss (FVPL), amortised cost, or
fair value through other comprehensive income (FVOCI). The classification is based on two criteria: the Company’s
business model for managing the assets; and whether the instruments’ contractual cash flows represent ‘solely
payments of principal and interest’ on the principal amount outstanding (the ‘SPPI criterion’).
Impairment
From 1 July 2018 the Company assesses on a forward looking basis the expected credit losses (ECLs) associated with its
debt instruments carried at amortised cost and FVOCI. ECLs are based on the difference between the contractual cash
flows due in accordance with the contract and all the cash flows that the Company expects to receive. The shortfall is
then discounted at an approximation to the asset’s original effective interest rate.
The Company assesses at each reporting period end whether there is objective evidence that a financial asset or group
of financial assets is impaired.
Due to the nature of the Group’s receivables, the impacted of the expected loss allowance under AASB 9 against the
loss incurred under AASB 139 was not material to the Group.
20
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Significant Judgements and Estimates
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving
a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial
statements are disclosed in Note 2.
(c) Principles of Consolidation
Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Six Sigma Metals Limited
(‘Company’ or ‘parent entity’) as at 30 June 2019 and the results of all subsidiaries for the year then ended. Six Sigma
Metals Limited and its subsidiaries together are referred to in this financial report as the consolidated entity.
Subsidiaries are all entities (including special purpose entities) over which the consolidated entity has the power to
govern the financial and operating policies, generally accompanying a shareholding of more than one-half of the voting
rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered
when assessing whether the consolidated entity controls another entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the consolidated entity. They are
de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between consolidated entity companies are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the
asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with
the policies adopted by the consolidated entity.
The acquisition method of accounting is used to account for business combinations by the consolidated entity.
(d) Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the Board.
(e) Foreign Currency Translation
Functional and presentation currency
Items included in the financial statements of each of the consolidated entity’s entities are measured using the currency
of the primary economic environment in which the entity operates (“functional currency”). The consolidated financial
statements are presented in Australian dollars, which is Six Sigma Metals Limited’s functional and presentation currency.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and
from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are
recognised in profit or loss.
21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(e) Foreign Currency Translation (continued)
Consolidated entity companies
The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy)
that have a functional currency different from the presentation currency are translated into the presentation currency
as follows:
• Assets and liabilities for each statement of financial position account presented are translated at the closing rate at
•
the date of that statement of financial position;
Income and expenses for each statement of profit or loss and other comprehensive income account are translated
at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates
prevailing on the transaction dates, in which case income and expenses are translated at the dates of the
transactions); and
• All resulting exchange differences are recognised in other comprehensive income and included in the foreign
currency translation reserve in the statement of financial position.
On consolidation, exchange differences arising from the translation of any net investment in foreign entities, and of
borrowings and other financial instruments designated as hedges of such investments, are recognised in other
comprehensive income. When a foreign operation is sold or any borrowings forming part of the net investment are
repaid, the associated exchange differences are reclassified to profit or loss, as part of the gain or loss on sale.
(f) Revenue Recognition and other Income
The consolidated entity recognises revenue and other income as follows:
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the consolidated entity is expected to be
entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the
consolidated entity: identifies the contract with a customer; identifies the performance obligations in the contract;
determines the transaction price which takes into account estimates of variable consideration and the time value of
money; allocates the transaction price to the separate performance obligations on the basis of the relative stand-alone
selling price of each distinct good or service to be delivered; and recognises revenue when or as each performance
obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised.
Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as
discounts, rebates and refunds, any potential bonuses receivable from the customer and any other contingent events.
Such estimates are determined using either the 'expected value' or 'most likely amount' method. The measurement of
variable consideration is subject to a constraining principle whereby revenue will only be recognised to the extent that
it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. The
measurement constraint continues until the uncertainty associated with the variable consideration is subsequently
resolved. Amounts received that are subject to the constraining principle are initially recognised as deferred revenue in
the form of a separate refund liability.
Interest
Interest revenue is recognised as interest accrues using the effective interest method.
Other income
Other income is recognised when it is received or when the right to receive payment is established.
22
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(g)
Income Tax
The income tax expense or revenue for the period is the tax payable on the current period’s taxable income based on
the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable
to temporary differences and to unused tax losses.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred
tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not
accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination
that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is
determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting
period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax
liability is settled.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax
bases of investments in foreign operations where the Company is able to control the timing of the reversal of the
temporary differences and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities
are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to
realise the asset and settle the liability simultaneously.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or
directly in equity, respectively.
(i) Exploration and evaluation expenditure
The Group expenses exploration and evaluation expenditure as incurred in respect of each identifiable area of
interest until a time where an asset is in development.
(j) Cash and Cash Equivalents
Cash on hand and in bank and short-term deposits are stated at nominal value. For the purpose of the statement of
cash flows, cash includes cash on hand and in bank, and bank securities readily convertible to cash, net of outstanding
bank overdrafts.
(k) Trade and Other Receivables
Trade and other receivables include amounts due from customers for goods sold and services performed in the
ordinary course of business. Receivables expected to be collected within 12 months of the end of the reporting period
are classified as current assets. All other receivables are classified as non-current assets.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses (ECL). The ECL is
based on either the 12-month or lifetime ECL. The 12-month ECL is the portion of lifetime ECLs that results from
default events on a financial instrument that are possible within 12 months after the reporting date. When there has
been a significant increase in credit risk since origination, the allowance will be based on the lifetime ECL.
23
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(l)
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the
initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently
measured at either amortised cost or fair value depending on their classification. Classification is determined based on
both the business model within which such assets are held and the contractual cash flow characteristics of the financial
asset, unless an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the
consolidated entity has transferred substantially all the risks and rewards of ownership. When there is no reasonable
expectation of recovering part or all of a financial asset, it's carrying value is written off.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified as
financial assets at fair value through profit or loss. Typically, such financial assets will be either:
(i) held for trading, where they are acquired for the purpose of selling in the short-term with an intention of making a
profit, or a derivative; or
(ii) designated as such upon initial recognition where permitted. Fair value movements are recognised in profit or loss.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the consolidated
entity intends to hold for the foreseeable future and has irrevocably elected to classify them as such upon initial
recognition.
Impairment of financial assets
The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are either
measured at amortised cost or fair value through other comprehensive income. The measurement of the loss allowance
depends upon the consolidated entity's assessment at the end of each reporting period as to whether the financial
instrument's credit risk has increased significantly since initial recognition, based on reasonable and supportable
information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected
credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is
attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit
impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset's
lifetime expected credit losses. The amount of expected credit loss recognised is measured on the basis of the
probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the
original effective interest rate.
For financial assets measured at fair value through other comprehensive income, the loss allowance is recognised within
other comprehensive income. In all other cases, the loss allowance is recognised in profit or loss.
24
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(m) Impairment of Assets
Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets
that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's
carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs
to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which
there are separately identifiable cash flows. Where an impairment loss subsequently reverses, the carrying amount of
the asset, other than goodwill, is increased to the revised estimate of its recoverable amount, but only to the extent
the increased carrying amount does not exceed the carrying amount that would have been determined had no
impairment loss been recognised in prior years. A reversal of an impairment loss is recognised immediately in profit or
loss.
(n) Trade and Other Payables
Liabilities are recognised for amounts to be paid in the future for goods and services received whether or not billed to
the Group. Trade payables are usually settled within 30 days of recognition.
(o) Employee Benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be
settled within 12 months of the reporting date are recognised in current liabilities in respect of employees' services up
to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled.
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date
are recognised in non-current liabilities, provided there is an unconditional right to defer settlement of the liability.
The liability is measured as the present value of expected future payments to be made in respect of services provided
by employees up to the reporting date using the projected unit credit method. Consideration is given to the expected
future wage and salary levels, experience of employee departures and periods of service. Expected future payments
are discounted using market yields at the reporting date on national government bonds with terms to maturity and
currency that match, as closely as possible, the estimated future cash outflows.
(p) Share-based Payments
Equity-settled share-based compensation benefits are provided to Key Management Personnel and employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange
for the rendering of services.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined
using an appropriate valuation model that takes into account the exercise price, the term of the option, the impact of
dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield
and the risk free interest rate for the term of the option, together with non-vesting conditions that do not determine
whether the consolidated entity receives the services that entitle the employees to receive payment. No account is
taken of any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the
vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the
25
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(p)
Share-based Payments (continued)
best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount
recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts
already recognised in previous periods.
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market
conditions are considered to vest irrespective of whether or not that market condition has been met, provided all other
conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made.
An additional expense is recognised, over the remaining vesting period, for any modification that increases the total
fair value of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the
condition is treated as a cancellation. If the condition is not within the control of the consolidated entity or employee
and is not satisfied during the vesting period, any remaining expense for the award is recognised over the remaining
vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining
expense is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled
and new award is treated as if they were a modification.
(q)
Contributed equity
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of
tax, from the proceeds.
If the entity reacquires its own equity instruments, for example as a result of a share buy-back, those instruments are
deducted from equity and the associated shares are cancelled. No gain or loss is recognised in the profit or loss and
the consideration paid including any directly attributable incremental costs (net of income taxes) is recognised directly
in equity.
(r) Earnings Per Share
Basic earnings per share
Basic earnings per share are calculated by dividing:
The profit attributable to owners of the Company, excluding any costs of servicing equity other than ordinary shares
•
• By the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus
elements in ordinary shares issued during the year and excluding treasury shares.
Diluted earnings per share
Diluted earnings per share adjust the figures used in the determination of basic earnings per share to take into account:
•
•
The after-income tax effect of interest and other financing costs associated with dilutive potential ordinary shares,
and
The weighted average number of additional ordinary shares that would have been outstanding assuming the
conversion of all dilutive potential ordinary shares.
26
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(s) Goods and Services Tax (“GST”)
Revenue, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as
part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the taxation authority is included as a current asset or liability in the statement of
financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing and financing
activities which are recoverable from, or payable to, the taxation authority are presented as operating cash flows.
Commitments and contingencies are disclosed net of amount of GST recoverable from, or payable to, the tax
authorities.
(t) Current and Non-Current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current
classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised
within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as
non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating
cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period;
or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period.
All other liabilities are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
(u) Dividends
Dividends are recognised when declared during the financial year and are no longer at the discretion of the Company.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory, have not been early adopted by the Company for the annual reporting period ended 30 June 2019.
The consolidated entity's assessment of the impact of these new or amended Accounting Standards and
Interpretations, most relevant to the Company, are set out below.
27
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
AASB 16 Leases
This standard is applicable to annual reporting periods beginning on or after 1 January 2019. The standard replaces
AASB 117 'Leases' and for lessees will eliminate the classifications of operating leases and finance leases. Subject to
exceptions, a 'right-of-use' asset will be capitalised in the statement of financial position, measured at the present value
of the unavoidable future lease payments to be made over the lease term adjusted for lease prepayments, lease
incentives received, initial direct costs incurred and an estimate of any future restoration, removal or dismantling costs.
The exceptions relate to short-term leases of 12 months or less and leases of low-value assets (such as personal
computers and small office furniture) where an accounting policy choice exists whereby either a 'right-of-use' asset is
recognised or lease payments are expensed to profit or loss as incurred. A liability corresponding to the present value
of the unavoidable future lease payments to be made over the lease term will also be recognised. Straight-line operating
lease expense recognition will be replaced with a depreciation charge for the leased asset (included in operating costs)
and an interest expense on the recognised lease liability (included in finance costs). In the earlier periods of the lease,
the expenses associated with the lease under AASB 16 will be higher when compared to lease expenses under AASB
117. However EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) results will be improved as the
operating expense is replaced by interest expense and depreciation in profit or loss under AASB 16. For classification
within the statement of cash flows, the lease payments will be separated into both a principal (financing activities) and
interest (either operating or financing activities) component. For lessor accounting, the standard does not substantially
change how a lessor accounts for leases.
Impact of adoption
The Company will adopt this standard from 1 July 2019 and its impact on adoption is not expected to have a material
impact on transactions and balances recognized in the financial statements as currently there is no lease contract in the
Company.
NOTE 2
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS AND ASSUMPTIONS
The preparation of the financial statements requires management to make judgements, estimates and assumptions
that affect the reported amounts in the financial statements. Management continually evaluates its judgements and
estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its
judgements, estimates and assumptions on historical experience and on other various factors, including expectations
of future events management believes to be reasonable under the circumstances. The resulting accounting judgements
and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year are discussed below.
Share based payments
The consolidated entity measures the cost of equity-settled transactions with employees by reference to the fair value
of the equity instruments at the date at which they are granted. The fair value is determined by using an appropriate
valuation model taking into account the terms and conditions upon which the instruments were granted. The
accounting estimates and assumptions relating to equity-settled share-based payments would have no impact on the
carrying amounts of assets and liabilities within the next annual reporting period but may impact profit or loss and
equity.
28
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
SEGMENT INFORMATION
NOTE 3
The consolidated entity operates within two geographical segments within mineral exploration being Australia and Botswana.
The segment information provided to the chief operating decision maker is as follows:
Australia
$
18,547
(1,018,257)
1,259,194
(139,873)
Year Ended 30 June 2019
Revenue and other income
Result (loss)
Total assets
Total liabilities
Year Ended 30 June 2018(i)Restated
Revenue and other income
Result (loss)
Total assets
Total liabilities
(i) refer to note 1(b) & 13 for details regarding the restatement as a result of a change in accounting policy.
5,896
(1,315,476)
2,045,619
(132,160)
-
(555,710)
84,095
(92,910)
Botswana
$
-
(177,982)
2,551
(31,741)
Total
$
18,547
(1,196,239)
1,261,745
(171,614)
5,896
(1,871,186)
2,129,714
(225,070)
NOTE 4
REVENUE AND OTHER INCOME
Income from Ordinary Activities
Revenue
Interest revenue
Sundry income
NOTE 5
EXPENDITURE
5(a) Professional Fees
Legal Fees
Corporate advisory
Accounting and audit fees
Consulting fees
5(b) Exploration Expenditure
Exploration Expenditure
Consolidated Group
2019
$
2018
$
18,547
-
18,547
4,505
1,391
5,896
Consolidated Group
2019
$
49,495
175,000
56,041
7,466
288,002
2019
$
2018
$
57,315
276,590
31,110
263,055
628,070
Restated(i)
2018
$
297,707
297,707
401,608
401,608
(i) refer to note 13 for details regarding the restatement as a result of a change in accounting policy.
29
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTE 6 INCOME TAX EXPENSE
Consolidated Group
Restated
2019
$
2018(i)
$
The prima facie tax on loss from ordinary activities before income tax is reconciled
to income tax as follows:
(Loss) before income tax expense
Prima facie (tax benefit) on (loss) from ordinary activities before income tax at
30% (2018: 30%)
(1,196,239)
(1,871,186)
(358,872)
(561,356)
Add:
Tax effect of:
- Accrued expenses
- Accrued remuneration to directors and management
- Non-deductible expenses
-Foreign tax rate differential
Less
Tax effect of:
- Accrued remuneration paid during the year
- Other deductible items
- Prepayments
Tax losses for the year
21,845
-
99,735
14,239
-
(50,566)
562
(273,057)
3,061
-
137,355
44,457
(50,250)
(49,387)
(4,201)
(480,321)
Prior year tax losses not previously brought to account
(2,560,517)
(2,035,739)
The Directors estimate that the potential deferred income tax assets at 30 June in
respect of tax losses not brought to account is:
Tax benefits not recognised during the year
Income Tax Expense for the year
(2,833,574)
(2,516,059)
2,833,574
2,516,059
-
-)
Tax benefits are not brought to account for the year ended 30 June 2019 (2018: nil) as the certainty of recovery cannot yet
be reliably determined at this stage of the Group’s development.
(i) refer to note 1(b) & 13 for details regarding the restatement as a result of a change in accounting policy.
NOTE 7 KEY MANAGEMENT PERSONNEL
(a) Names and positions held of economic and parent entity key management in office at any time during the financial
year are:
Key Management Person
Mr E King
Mr E Bulseco
Mr S R Groves
Mr J Letcher
Position
Chairman, Non-executive Director
Chairman, Non-executive Director (Resigned 31 July 18)
Non-executive Director
Non-executive Director
30
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTE 7 KEY MANAGEMENT PERSONNEL (CONTINUED)
(b) Remuneration paid to Key Management Personnel
Short-term employee benefits
Share based payments
Total
NOTE 8 REMUNERATION OF AUDITORS
Amounts received or due and receivable by BDO Audit (WA) Pty Ltd for:
Audit or review of the financial statements
Other services - BDO Corporate Tax (WA) Pty Ltd
Tax compliance
Amounts received or due and receivable by William Buck Audit (Vic) Pty Ltd for:
Audit or review of the financial statements
NOTE 9 LOSS PER SHARE (“LPS”)
a) Reconciliation of losses to profit or loss
Loss used to calculate basic and diluted loss per share(i)
Consolidated Group
2019
$
201,000
-
201,000
2018
$
494,524
356,162
850,686
Consolidated Group
2019
$
2018
$
26,329
7,140
-
-
-
25,000
Consolidated Group
2019
$
Restated
2018(i)
$
(1,196,239)
(1,871,186)
b) Weighted average number of ordinary shares used in the calculation of basic
and diluted loss per share(ii)
461,220,619
307,007,662
(i) Refer to note 1(b) & 13 for details regarding the restatement as a result of a change in accounting policy.
(ii) The weighted average number of shares used in the calculation of basic and diluted loss per share for 2018 has been
adjusted to correctly reflect the impact of the share consolidation during that year.
NOTE 10 CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Term deposits held
31
Consolidated Group
2018
2019
$
829,722
401,138
1,230,860
$
972,169
800,000
1,772,169
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTE 11 TRADE AND OTHER RECEIVABLES
Current
Trade and other receivables
NOTE 12 CONTROLLED ENTITY
Consolidated Group
2018
2019
$
$
30,885
92,719
Country of
Incorporation
Principal Activity
Class of
Share
African Metals (Pty) Ltd
Botswana
Mineral Exploration
Ordinary
NOTE 13 EXPLORATION AND EVALUATION EXPENDITURE
Equity Holding
2019
%
100
2018
%
100
The following table summarises the adjustments made to the Consolidated Statement of Profit or Loss and Other
Comprehensive Income, to the Consolidated Statement of Financial Position and Consolidated Statement of Cash Flows on
implementation of the new accounting policy.
Balances as at 1 July 2017, as previously
reported
Impact of the change in accounting policy
Restated balances at 1 July 2017
Balances at 30 June 2018, as previously
reported
Impact of the change in accounting policy at
1 July 2017
Impact of the change in accounting policy
during 2018
Restated balance at 30 June 2018
Exploration
expenditure
$
Foreign exchange
reserve
$
Retained Earnings
$
6,795,902
(6,795,902)
-
(2,321,202)
1,959,433
(361,769)
(8,645,587)
(8,755,335)
(17,400,922)
7,197,510
(2,232,651)
(10,115,163)
(6,795,902)
1,959,433
(8,755,335)
(401,608)
-
-
(273,218)
(401,608)
(19,272,106)
In the year ending 30 June 2019, the Group changed its accounting treatment of exploration and evaluation expenditure in
accordance with standard AASB 6: Exploration for and Evaluation of Mineral Resources. Previously, the Group capitalised
accumulated exploration and evaluation expenditure and carried forward to the extent that they were expected to be
recouped through the successful development. The result of this accounting change means that the Group will expense
exploration and evaluation expenditure as incurred in respect of each identifiable are of interest until a time where an asset is
in development.
The effects on the Consolidation Statement of Profit or Loss and Other Comprehensive Income were as follows:
Increase in loss for the year
For the year ended 30 June 2018
$
401,608
32
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTE 13 EXPLORATION AND EVALUATION EXPENDITURE (CONTINUED)
The table below summarises the impact on the earnings per share for the comparative period:
Previously reported – basic and diluted earnings per share
Restated – basic and diluted earnings per share
30 June 2018 (cents)
(0.19)
(0.61)*
*The weighted average number of shares used in the calculation of basic and diluted loss per share for 2018 has been
adjusted to correctly reflect the impact of the share consolidation during that year.
NOTE 14 TRADE AND OTHER PAYABLES
Current
Trade payables
Accrued remuneration owing to Directors
Accrued professional fees & operating expenses
NOTE 15 ISSUED CAPITAL
561,878,153 (2018: 457,503,153) fully paid ordinary shares
(a)
Ordinary Shares
Consolidated Group
2019
$
35,624
11,543
99,846
147,013
2018
$
170,711
11,500
-
182,211
Consolidated Group
2019
$
2018
$
21,402,070
21,035,871
Date
Number of Shares
2019
2018
Issue Price ($)
2019
2018
$
2019
2018
At the beginning of
the reporting
period
Tranche 1
placement
Costs associated
with capital raising
- Placement
- SPP
- Placement
-Share
consolidation 1 for
12
- Tranche 1
Placement
- SPP
Costs associated
with capital raisings
At reporting date
17/6/19
18/08/17
4/12/17
5/12/17
6/12/17
3/01/18
23/3/18
457,503,153
1,462,315,814
21,035,871
17,535,843
104,375,000
0.004
417,500
(51,301)
362,000,000
547,294,744
1,838,414,592
(3,859,188,663)
75,333,333
31,333,333
0.001
0.0008
0.0008
0.015
0.015
362,000
448,782
1,507,500
1,130,000
470,000
(418,254)
561,878,153
457,503,153
21,402,070
21,035,871
33
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTE 16 RESERVES
Share-based payments reserve (a)(i)
Foreign currency translation reserve (b)
Movement reconciliation
Share-based payments reserve (a) (i)
Balance at the beginning of the year
Equity settled share-based payment transactions (Note 20) (1)
Options issued to Directors (2)
Balance at the end of the year
2019
$
Restated
2018(i)
$
414,097
(257,691)
156,406
414,097
(273,218)
140,879
414,097
-
-
414,097
-
272,089
142,008
414,097
(361,769)
88,551
(273,218)
Movement reconciliation
Foreign currency translation reserve (b)
Balance at the beginning of the year
Other comprehensive income
Balance at the end of the year
(i) refer to note 1(b) & 13 for details regarding the restatement as a result of a change in accounting policy.
(273,218)
15,527
(257,691)
(1) Equity settled share-based payment transactions
•
•
•
•
26,250,000 options were issued to Xcel Capital as part consideration for lead manager services provided to the
Company in relation to the SPP, Placement and advisory services;
6,250,000 options were issued to Foxfire Capital in consideration for services provided to the company in relation to
the placement;
833,335 options were issued to a contractor for services provided to the Company; and
666,667 options were issued to Trayburn Pty Ltd, as part consideration for services provided to the Company.
(2) Options issued to Directors
•
20,000,000 options were issued to Directors in consideration for services provided to the Company.
Share-based payment reserve
The share-based payment reserve is used to record the value of share-based payments provided to outside parties, and
share-based remuneration provided to employees and directors.
Foreign Currency Translation reserve
The foreign currency translation reserve records exchange differences arising on translation of a foreign controlled subsidiary
as described in Note 1.
34
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTE 17 CAPITAL AND LEASING COMMITMENTS
Planned Exploration Expenditure
Payable
- not later than 12 months
- between 12 months and 5 years
-
greater than 5 years
Consolidated Group
2019
$
2018
$
227,361
1,511,284
-
29,250
-
-
1,738,645
29,250
The figures above are extracted from the Prospecting licences issued to African Metals (Pty) Ltd by the Department of Mines
in Botswana. Expenditures are required to maintain the right of tenure to exploration until the expiry of the licences. These
obligations are subject to renegotiation upon expiry of the leases and are not provided for in the financial statements.
The Group anticipates future expenditure on its current rights of tenure to exploration and mining tenements up until the
expiry of its current Prospecting licences and on tenement renewals and extensions that have been applied for but not yet
granted, which are included in the above table. In the event the Group does not meet the minimum exploration expenditure
the licences may be cancelled or not renewed.
NOTE 18 CONTINGENT LIABILITIES
Broker Options
20 million unquoted options exercisable at $0.008 with an expiry of 1 July 2022, are to be issued for corporate advisory services
on the tranche 1 and 2 placements, upon the successful raising of capital and the approval by shareholders.
The options were subsequently issued (refer to note 21).
Magogaphate Tenement
Although the Group acquired a 100% interest in the Magogaphate group of tenements in Botswana from A-Cap Resources
Limited in 2007, Mineral Holdings Botswana (Pty) Ltd (“MHB”) has retained a right to a 5% net profits share. The Group
therefore, has a contingent liability to MHB should it establish a profitable mining operation on those tenements. The 5%
net profits share interest is limited to the three tenements subject to joint venture with BCL, namely PL 110/94, PL 111/94
and PL 54/98. A profitable mining operation has not yet been established and accordingly there have been no payments to
MHB.
35
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTE 19 CASH FLOW INFORMATION
(a) Reconciliation of cash
For the purposes of the statement of cash flows, cash includes cash on hand and at
bank and short term deposits at call, net of outstanding bank overdrafts. Cash as at
the end of the financial year as shown in the statement of cash flows is reconciled to
the related items in the statement of financial position.
Cash at bank and on hand
(b) Reconciliation of cash
Operating Loss after income tax
Non–cash flows in loss:
- Depreciation
- Non cash variance in capitalised expenditure
-
-
Foreign currency translation
Share-based payments
Working capital:
-
-
-
-
(Increase)/decrease in trade and other receivables
(Increase)/decrease in other assets
Increase/(decrease) in trade and other payables
Increase/(decrease) in provisions
Consolidated Group
Restated
2019
$
2018(i)
$
1,230,860
1,772,169
(1,196,239)
(1,871,186)
36,812
-
-
-
61,834
228,014
(35,198)
(18,258)
11,119
(5,299)
88,551
414,097
(30,345)
(228,014)
(240,976)
5,302
Net cash (outflow) from operating activities
(923,035)
(1,856,671)
(i) refer to note 13 for details regarding the restatement as a result of a change in accounting policy.
36
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTE 20 SHARE-BASED PAYMENTS
Recognised share-based payment transactions
(a)
Options issued to Directors (i)
Quoted options Issued to consultants (i)
Unlisted options issued to Directors in consideration for services provided
Unlisted options issued to Xcel Capital Pty Ltd in consideration for
corporate advisory services provided
2019
$
2018
$
-
-
-
-
-
16,008
172,090
126,000
100,000
414,098
(i) Options were issued to creditors being current or past Directors and their related companies that accepted shares
in part satisfaction of accrued remuneration.
There was no movement for share based payment transactions in the current year.
(b)
Summary of options granted during the 2018 year, there was no movement in the 2019 year.
Options
Issue Date
Date of
Expiry
Exercise
Price
Balance at
the start
of the
year
Granted
during the
year
Exercised
during the
year
Expired
during the
year
Balance at
the end of
the year
Free
attaching
options
Free
attaching
options
issued to
creditor
Quoted
options
Issued to
consultants
Options
placement
Director
options
Options
issued to Xcel
Capital Pty
Ltd
27/11/17
1/07/21
0.013
-
60,087,446
27/11/17
1/07/21
0.013
27/11/17
1/07/21
0.013
16/03/18
16/04/21
0.015
16/03/18
16/04/21
0.022
16/03/18
16/04/21
0.022
-
-
-
-
-
-
6,182,251
23,500,002
42,666,667
18,000,000
12,500,000
162,936,366
37
-
-
-
-
-
-
-
-
60,087,446
-
-
-
-
-
-
6,182,251
23,500,002
42,666,667
18,000,000
12,500,000
162,936,366
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTE 20 SHARE-BASED PAYMENTS
The Company has used an independent expert to measure the fair value of the quoted options granted by the Company to
Directors and consultants:
Underlying asset price
Exercise price
Expected volatility
Time to Maturity of underlying option (Years)
Dividend yield
Interest rate
Value per option
Total value of options
$0.01
$0.025
106.49%
3.62
0.00%
1.89%
$0.07
$188,098
The unlisted options issued to the Directors of the Company, have been valued using the Black-Scholes model. The model and
assumptions are shown in the table below:
Black-Scholes Option Pricing Model
Grant Date
Vesting Date
Strike (Exercise) Price
Underlying Share Price (at date of issue)
Risk-free Rate (at date of issue)
Volatility
Number of Options Issued
Dividend Yield
Probability
Black-Scholes Valuation
Total Fair Value of Options
16/03/18
23/03/21
0.022
0.013
2.06%
100%
18,000,000
0%
100%
$0.007
$126,000
The unlisted options issued to Xcel Capital Pty Ltd for corporate advisory services, have been valued using the Black-Scholes
model. The model and assumptions are shown in the table below:
Black-Scholes Option Pricing Model
Grant Date
Vesting Date
Strike (Exercise) Price
Underlying Share Price (at date of issue)
Risk-free Rate (at date of issue)
Volatility
Number of Options Issued
Dividend Yield
Probability
Black-Scholes Valuation
Total Fair Value of Options
16/03/18
23/03/21
0.022
0.013
2.06%
100%
18,000,000
0%
100%
$0.008
$100,000
38
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTE 21 EVENTS AFTER THE END OF THE REPORTING PERIOD
After Balance Date Events
On 16 August 2019 the Company issued 62,500,000 shares raising $250,000 at $0.004, through the share purchase plan. As a
part of the share purchase plan (SPP) 31,250,000 unquoted options were issued for nil cash consideration to the subscribers
in the SPP on the basis of 1 option for every 2 shares held.
On 22 August 2019 the Company 20,625,000 ordinary fully, paid shares were issued at an issue price of $0.004 per share under
Tranche 2 of the placement.
On the same day 62,500,000 attaching unquoted options (exercise price of $0.008 expiring 1 July 2022) were issued as a part
of the placement on a 2 for 1 basis for both tranche 1 and 2.
20,000,000 lead manager options were also issued (exercise price of $0.008 expiring 1 July 2022) for nil cash consideration as
remuneration for their services.
Other than the matters discussed above, 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 and unusual nature likely, in the opinion of the Directors of the
Company to affect the operations of the Group, the results of these operations or the state of affairs of the Group in
subsequent years.
NOTE 22 RELATED PARTY INFORMATION
Transactions between related parties are on normal commercial terms and conditions no
more favourable than those available to other parties unless otherwise stated.
2019
2018
$
$
Key Management Personnel
Kalcon Investments Pty Ltd, of which Edwin Bulseco is a Director and shareholder, was paid
Director fees of $41,000.
Xcel Capital Pty Ltd, of which Edwin Bulseco is a Director was paid $413,183, in relation to
Corporate advisory work undertaken in relation to the placement and share purchase plan.
Xcel was issued 13,750,000 listed options to the value of $110,057 and issued 12,500,000
unquoted options to the value of $100,000 for Corporate advisory services.
Bohr Industries Pty Ltd, of which Joshua Alan Letcher is a Director was paid $37,000 in
relation to Director fees for the period.
Foxfire Capital, of which Mr P J Volpe is a director was issued 6,250,000 listed options, fully
vested to the value of $50,026 for Corporate advisory services.
Trayburn Pty Ltd, of which Mr P J Volpe is a Director, payment of unpaid fees for the years
ended 30 June 2015, 2016 & 2017 amounting to $190,691. Shares to the value of $174,800
and 666,667 listed options fully vested at $5,336.
King Corporate Pty Ltd, of which Mr Eddie King is a Director, has unpaid Director and rental
fees as at 30 June 2018.
Transactions with CAP Holdings Pty Ltd (“CAP”), a company of which close family members
of Mr P J Volpe are Directors and shareholders for administration and clerical costs.
Total
-
-
-
-
-
-
-
-
41,000
623,240
37,000
50,026
370,827
4,850
9,600
1,136,543
39
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
NOTE 22 RELATED PARTY INFORMATION (CONTINUED)
As at 30 June 2018 $4,850 was owed to King Corporate Pty Ltd, of which Eddie King is a director for Director ($3,500) and office
rental fees ($1,350). $8,000 was owed to Kalcon Investments Pty Ltd, of which Edwin Bulseco is a director for Director fees.
All amounts above are exclusive of GST.
Expenses paid by, or for, Directors and related entity were, or will be, reimbursed at cost.
The Company has provided at call interest free unsecured loans to its wholly owned subsidiary African Metals (Pty) Ltd to pay
operational and exploration costs.
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
The Company has provided at call interest free unsecured loans to its wholly owned subsidiary African Metals (Pty) Ltd to pay
operational and exploration costs.
NOTE 23 FINANCIAL RISK MANAGEMENT
The Group’s financial instruments consist mainly of deposits with banks and accounts receivable and payable.
Treasury Risk Management
The Board of Directors meets on a regular basis to analyse financial risk exposure and to evaluate treasury management
strategies in the context of the most recent economic conditions and forecasts. The Board’s overall risk management
strategy seeks to assist the Group in meeting its financial targets, whilst minimising potential adverse effects on financial
performance.
Financial Risk Exposures and Management
The main risk the group is exposed to through its financial instruments is liquidity risk.
Liquidity Risk
Liquidity risk arises from the possibility that the group might encounter difficulty in settling its debts or otherwise meeting its
obligations related to financial liabilities. The group manages liquidity risk by monitoring forecast cash flows and only
investing surplus cash with major financial institutions.
Maturity analysis:
Consolidated
2019
Financial liabilities
Trade and other payables
<6 months
$
6-12 months
$
1-5 years
$
>5 years
$
Total
$
147,013
-
-)
-)
147,013
40
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTE 23 FINANCIAL RISK MANAGEMENT (CONTINUED)
Consolidated
2018
<6 months
$
6-12 months
$
1-5 years
$
>5 years
$
Total
$
Financial liabilities
Trade and other payables
182,211
-
-)
-)
182,211
Interest rate risk
The Group is exposed to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of
changes in the market interest rates on interest bearing financial instruments. The Group’s exposure to this risk relates
primarily to the Group’s cash and any cash on deposit. The Group does not use derivatives to mitigate these exposures.
The Group manages its exposure to interest rate risk by holding certain amounts of cash in fixed and floating interest rate
facilities. At the reporting date, the interest rate profile of the Group’s interest-bearing financial instruments was:
Cash and cash equivalents
2019
2018
Weighted
average
interest rate (i)
1.24%
Balance
$
1,230,860
Weighted
average interest
rate (i)
1.28%
Balance
$
1,772,169
(i) This interest rate represents the average interest rate for the period.
Sensitivity
Within the analysis, consideration is given to potential renewals of existing positions and the mix of fixed and variable
interest rates. The following sensitivity analysis is based on the interest rate risk exposures in existence at the reporting
date. The 1% increase and 1% decrease in rates is based on reasonably expected possible changes over a financial year,
using the observed range of historical rates for the preceding five-year period.
At 30 June 2019, if interest rates had moved, as illustrated in the table below, with all other variables held constant,
post-tax losses and equity would have been affected as follows:
Judgements of reasonably possible
movements:
+ 1.0% (100 basis points)
- 1.0% (100 basis points)
Profit higher/(lower)
2018
2019
$
$
12,309
(12,309)
17,722
(17,722)
Foreign Currency Risk
The Group undertakes certain transactions denominated in foreign currency and is exposed to foreign currency risk
through foreign exchange rate fluctuations. The Group also has exposure to foreign exchange risk due to the currency cash
reserves and other balances denominated in foreign currencies. The Group does not actively manage foreign currency risk
and does not make use of derivative financial instruments.
41
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTE 23 FINANCIAL RISK MANAGEMENT (CONTINUED)
The following sensitivity is based on the foreign currency risk exposures in existence at the reporting date.
At 30 June 2019, had the Australian Dollar/Botswana Pula exchange rate moved, as illustrated in the table below with all
other variables held constant, post-tax profit would have been affected as shown.
Judgments of
reasonable
possible
movements
Other Comprehensive
Income
Higher/(Lower)
Post-tax Loss
Higher/(Lower)
Equity
Higher/(Lower)
2019(i)
$
9,675
(9,675)
(i) refer to note 1(b) & 13 for details regarding the restatement as a result of a change in accounting policy.
2019
$
18,575
(18,575)
2019
$
8,899
(8,899)
AUD/BWP +5%
AUD/BWP -5%
19,838
(19,838)
Restated
2018(i)
$
7,705
(7,705)
Restated
2018(i)
$
12,133
(12,133)
Restated
2018(i)
$
Management believes the reporting date risk exposures are representative of the risk exposure inherent in the financial
instruments.
The net fair values of financial assets and liabilities approximate their carrying values due to their short-term nature.
Capital Risk Management
The Group manages its capital to ensure that Companies in the Group will be able to continue as a going concern while
maximising the return to stakeholders through the optimisation of the debt to equity balance. The Group’s focus has been to
raise sufficient funds through equity to fund exploration and resource development activities.
The Group’s overall strategy remains unchanged from 2018. Risk management policies and procedures are established with
regular monitoring and reporting.
The capital structure of the Group consists of cash and cash equivalents and equity attributable to equity holders of the parent,
comprising of issued capital, reserves and accumulated losses as disclosed in Notes 15 and 16 respectively.
The Group operates in Australia and Botswana. None of the Group’s companies are subject to externally imposed capital
requirements.
42
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTE 24 PARENT ENTITY DISCLOSURES
Financial Position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Total liabilities
Issued capital
Reserves
Accumulated losses
Total equity
Financial Performance
Loss for the year
Other comprehensive income
Total comprehensive loss
2019
$
2018
$
1,230,004
-
1,230,004
2,045,619
13,038,615
15,084,234
139,873
139,873
132,160
132,160
21,402,070
21,035,871
414,098
(20,726,037)
1,090,131
414,098
(6,497,896)
14,952,073
(14,228,141)
(1,315,476)
-
-
(14,228,141)
(1,315,476)
Guarantees, contingent liabilities and contractual commitments
The subsidiary company has expenditure commitments to maintain its current rights of tenure to exploration and mining
tenements up until the expiry of the leases including its joint venture commitments. These obligations are subject to
renegotiation upon expiry of the leases and are not provided for in the financial statements. The parent entity may provide
funds to ensure the subsidiary company can fulfil these commitments as well as any other operating commitments.
43
DIRECTORS’ DECLARATION
In the Directors’ opinion:
a)
The financial statements and accompanying notes are in accordance with the Corporations Act 2001, including:
i) complying with Australian Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements; and
ii) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2019 and of its performance
for the year ended on that date.
b)
c)
The financial statements and notes comply with International Financial Reporting Standards as described in Note 1 to
the financial statements.
There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become
due and payable.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the
Directors by:
Mr Eddie King
Director
27 September 2019
44
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of Six Sigma Metals Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Six Sigma Metals Limited (the Company) and its subsidiary
(the Group), which comprises the consolidated statement of financial position as at 30 June 2019, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including a summary of significant accounting policies and the directors’
declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2019 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the 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 confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Other matter
The financial report of Six Sigma Metals Limited, for the year ended 30 June 2018 was audited by
another auditor who expressed an unmodified opinion on that report on 28 September 2018.
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.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
45
Change of Accounting Policy – Exploration and Evaluation Expenditure
Key audit matter
How the matter was addressed in our audit
During the year the Group changed its accounting
Our procedures included, but were not limited to the
policy in relation to exploration and evaluation
following:
expenditure as disclosed in Note 1 (b) and 13 of the
financial report.
We consider management’s change of accounting
policy for exploration and evaluation expenditure to be
a key audit matter given the significant impact on the
financial report and the judgment involved in assessing
the change in accordance with AASB 108: Accounting
Policies, Changes in Accounting Estimates and Errors
(“AASB 108”).
(cid:127)
(cid:127)
(cid:127)
Obtaining and reviewing management’s
workings relating to the change in accounting
policy in accordance with AASB 108;
Reviewing management’s basis for the
change in accounting policy in accordance
with AASB 108; and
Assessing the adequacy of the related
disclosures in notes 1 (b) and 13 of the
financial report.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2019, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
46
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.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 7 to 11 of the directors’ report for the
year ended 30 June 2019.
In our opinion, the Remuneration Report of Six Sigma Metals Limited, for the year ended 30 June 2019,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit (WA) Pty Ltd
Jarrad Prue
Director
Perth, 27 September 2019
47
CORPORATE GOVERNANCE STATEMENT
The Company has elected to publish its Corporate Governance Statement on its website in accordance with ASX Listing Rule
4.10.3.
ASX ADDITIONAL INFORMATION
A copy of the Corporate Governance Statement can be found at:
https://www.sixsigmametals.com/about-us/corporate-governance/
ASX ADDITIONAL INFORMATION
Additional information required by the Australian Securities Exchange and not shown elsewhere in this Annual Report is as
follows. The information is current as of 24 September 2019.
DISTRIBUTION OF EQUITY SECURITIES
Ordinary share capital
•
645,003,153 fully paid shares held by 599 individual shareholders. All issued ordinary shares carry one vote per share
and carry the rights to dividends.
The number of shareholders, by size of holding, is:
Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Listed options
Holders
56
39
18
127
359
599
Units
8,661
110,674
133,319
5,906,163
638,844,336
645,003,153
Percentage
0
0.02
0.02
0.92
99.005
100
•
132,436,366 quoted options expiring 1 July 2021, exercisable at $0.015 held by 124 individual option holders.
The number of Option holders, by size of holding, is:
Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Holders
4
0
0
40
80
124
Units
104
0
0
1,342,792
131,093,470
132,436,366
Percentage
0
0
0
1.01
98.99
100
48
TWENTY LARGEST SHAREHOLDERS
CAP HOLDINGS PTY LTD
KITARA INVESTMENTS PTY LTD
SACCO DEVELOPMENTS AUSTRALIA PTY LIMITED
MRS ANGELA MAREE ROWE
VERMAR PTY LTD
RIMOYNE PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
ELSTREE CAPITAL PTY LTD
V7 INVESTMENT & DEVELOPMENT
METECH SUPER PTY LTD
TELL CORPORATION PTY LTD
MR GAVIN JEREMY DUNHILL
BUSHWOOD NOMINEES PTY LTD
LIGHTSTORM PTY LTD
POLARITY B PTY LTD
DC & PC HOLDINGS PTY LTD
MR NATHAN DAVID TAYLOR + MRS THERESE-MARIE TAYLOR
NIGHTFALL PTY LTD
MS ANGELA MARIA GIUSTI
KALCON INVESTMENTS PTY LTD
Total
TWENTY LARGEST OPTION HOLDERS
TANGO88 PTY LTD
XCEL CAPITAL PTY LTD
CAP HOLDINGS PTY LTD
SACCO DEVELOPMENTS AUSTRALIA PTY LIMITED
LIGHTSTORM PTY LTD
MRS VANESSA RUBEN
MR VINCENZO BRIZZI + MRS RITA LUCIA BRIZZI
MR MATTHEW DEAN QUINN
PATH HOLDINGS PTY LTD
FINNIAN GROUP PTY LTD
BUSHWOOD NOMINEES PTY LTD
BULL BREEDER PTY LTD
MS ANGELA MARIA GIUSTI
MR JEREMY DAVID RUBEN + MRS VANESSA RUBEN
BARROSEVEN PTY LIMITED
QUID CAPITAL PTY LTD
POLARITY B PTY LTD
MR EDWIN EDWARD BULSECO + MRS ALLISON BULSECO
INFO AND PROJECTS PTY LTD
NIGHTFALL PTY LTD
Total
49
ASX ADDITIONAL INFORMATION
Ordinary Shares
Number
38,825,879
30,000,000
Percentage
6.02
4.65
29,017,187
24,250,000
21,846,291
20,948,915
19,598,336
18,750,000
17,000,000
14,000,000
13,223,996
12,000,000
11,260,651
10,731,707
10,387,653
10,000,000
10,000,000
9,247,968
8,495,935
8,333,333
4.5
3.76
3.39
3.25
3.04
2.91
2.64
2.17
2.05
1.86
1.75
1.66
1.61
1.55
1.55
1.43
1.32
1.29
337,917,851
52.39
Ordinary Shares
Number
22,055,000
13,750,000
12,071,410
8,124,125
4,021,680
3,778,754
3,518,317
3,370,000
3,000,000
2,518,970
2,046,884
2,000,000
1,998,645
1,984,146
1,761,030
1,718,970
1,693,767
1,682,928
1,500,000
1,500,000
94,094,626
Percentage
16.65
10.38
9.11
6.13
3.04
2.85
2.66
2.54
2.27
1.9
1.55
1.51
1.51
1.5
1.33
1.3
1.28
1.27
1.13
1.13
71.05
Unlisted Options
18,000,000 unquoted options with an exercise price of $0.022 and an expiry date of 23/03/21.
12,500,000 unquoted options with an exercise price of $0.022 and an expiry date of 16/04/21.
113,750,000 unquoted options with an exercise price of $0.008 and an expiry date of 1/07/22.
ASX ADDITIONAL INFORMATION
SUBSTANTIAL SHAREHOLDERS
Substantial shareholders in the Company are:
CAP HOLDINGS PTY LTD
Voting Rights
Ordinary Shares
Number
Percentage
38,825,879
6.02
The voting rights attaching to each class of equity security are set out below:
Ordinary Shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share
shall have one vote.
Options
Options carry no voting rights.
UNMARKETABLE PARCELS
There were 251 holders of less than a marketable parcel of ordinary shares, which as at 24 September 2019 was 7,368,762.
RESTRICTED / UNQUOTED SECURITIES
There are no restricted or unquoted securities on issue.
ON-MARKET BUY-BACK
There is currently no on-market buyback program for any of ‘SI6 Metals’ listed securities.
SECURITIES EXCHANGE
The Company is listed on the Australian Securities Exchange under the code SI6.
ACQUISITION OF VOTING SHARES
No issues of securities have been approved for the purposes of Item 7 of Section 611 of the Corporations Act 2001.
TAX STATUS
The Company is treated as a public company for taxation purposes.
FRANKING CREDITS
The Company has no franking credits.
50
ASX ADDITIONAL INFORMATION
SCHEDULE OF INTERESTS IN MINING TENEMENTS
Exploration areas held in Botswana
The Company holds the following prospecting licences in Botswana:
Tenement
Magogaphate
PL 110/94
Mokoswane
PL 111/94
Takane
PL 54/98
Shashe South
PL 059/2008
Renewal /
Expiry Date
Percentage
Holding
Title Holder
Comment
31/03/2018
100
African Metals (Pty) Ltd
31/03/2018
100
African Metals (Pty) Ltd
31/03/2018
100
African Metals (Pty) Ltd
30/09/2016
100
African Metals (Pty) Ltd
Farm-in agreement
with BCL Ltd
Farm-in agreement
with BCL Ltd.
Farm-in agreement
with BCL Ltd
Renewal application
submitted 30/06/16
PL 193/2016
30/09/2019
PL 194/2016
30/09/2019
PL 195/2016
30/09/2019
100
100
100
African Metals (Pty) Ltd
African Metals (Pty) Ltd
African Metals (Pty) Ltd
51