Stoneridge
Annual Report 2015

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SIPA RESOURCES LIMITED ANNUAL REPORT 2015 Sipa Resources Limited (ASX:SRI) Sipa Resources Limited Listing on the Australian Stock Exchange in 1987, Sipa Resources Limited is a Perth-based Australian gold, base metals and nickel exploration company with a proven track record. Contents 1 3 Chairman’s Address Review of Operations 14 Board of Directors 16 Corporate Governance Statement 24 Financial Report 25 Directors’ Report 37 Auditor’s Independence Declaration 38 Consolidated Statement of Comprehensive Income 39 Consolidated Statement of Financial Position 40 Consolidated Statement of Cash Flows 41 Consolidated Statement of Changes in Equity 42 Notes to the Financial Statements 73 Directors’ Declaration 74 Independent Auditor’s Report 76 Additional Statutory Information 79 Corporate Directory www.sipa.com.au Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information Chairman’s Address The exploration activities have significantly advanced our knowledge of the Ugandan projects enabling a greater focus on certain parts of the 7,300 square kilometre area. My fellow shareholders It is with considerable pleasure that I write to you having been Chairman of your company for just under seven months(cid:84) in what has (cid:35)een a ver(cid:64) even(cid:292)(cid:60)l period(cid:84) which I have summarised below: – Announcing some stellar early stage exploration results from diamond drilling at its Akelikongo and Akelikongo West projects in Uganda – Completing a $6.1m capital raising in July 2015, by way of share purchase plan and placement in what has been an extremely challenging and volatile equity market. My thanks go to the many shareholders who participated in this raising which will be used in ongoing exploration. – Acquisition of the 20% minority interest in the Kitgum-Pader Projects in Uganda previously held by Geocrust Pty Ltd, a company owned by the late Nick Archibald’s family. – The sale of the Thaduna project for $2M of shares in Sandfire Resources which now results in your company’s sole focus being on its Ugandan projects (cid:26)he e(cid:63)ploration activities have si(cid:43)ni(cid:41)cantl(cid:64) advanced o(cid:60)r knowledge of the Ugandan projects enabling a greater focus on certain parts of the 7300 square kilometre area. While nickel and copper are the primary mineral targets at the Akelikongo/Akelikongo West projects, the Pamwa (cid:32)inc(cid:102)(cid:16)ead pro(cid:47)ect remains interestin(cid:43)(cid:84) as well as the opportunity for base and precious metals in a region which has to date e(cid:63)hi(cid:35)ited si(cid:43)ni(cid:41)cant mineral endowment(cid:87) In this regard sampling for gold is also being undertaken. Our approach is to ensure technical excellence is combined with commercial rigour in order to achieve commercial success and enhance shareholder value. There are many people who have contributed to your compan(cid:64)’s s(cid:60)ccess(cid:87) (cid:26)hese people are (cid:16)(cid:64)nda (cid:5)(cid:60)rne(cid:295)(cid:84) (cid:64)o(cid:60)r hi(cid:43)hl(cid:64) commi(cid:295)ed and ver(cid:64) capa(cid:35)le (cid:17)ana(cid:43)in(cid:43) (cid:8)irector(cid:84) who has spent four of the last twelve months in Uganda. Lynda is ably assisted by Tara Robson, your CFO and (cid:6)ompan(cid:64) Secretar(cid:64) in (cid:22)erth(cid:84) and (cid:5)ill (cid:29)illmo(cid:295) who is a most competent co(cid:60)ntr(cid:64) mana(cid:43)er and in(cid:102)co(cid:60)ntr(cid:64) (cid:8)irector(cid:87) I would also like to thank Joshua Tuhumwire our Ugandan (cid:6)hairman(cid:87) (cid:29)hen I visited the e(cid:63)ploration pro(cid:47)ect (cid:35)ased in Kitgum in late July, I was extremely impressed by the commitment of all our employees. I would also like to thank my fellow board members whose contri(cid:35)(cid:60)tion and assistance to me have made m(cid:64) (cid:47)oinin(cid:43) the (cid:35)oard a smooth transition(cid:87) I wo(cid:60)ld also li(cid:48)e to than(cid:48) (cid:64)o(cid:60)r o(cid:60)t(cid:43)oin(cid:43) (cid:6)hairman(cid:84) Ian (cid:22)earce(cid:84) for his contri(cid:35)(cid:60)tion to your company’s board over 14 years, 12 of which were as Chairman. On behalf of the Board I would also like to thank the various stakeholders in your company for their contri(cid:35)(cid:60)tion(cid:84) not the least of which are (cid:64)o(cid:60) as the shareholders, the government of Uganda and the (cid:8)irectorate of Geolo(cid:43)ical S(cid:60)rve(cid:64) and (cid:17)ines(cid:84) the Northern Ugandan Acholi people in whose region we operate, and our team of very capable geological and geophysical consultants. Craig Ian McGown Chairman 30 September 2015 Annual Report 2015 1 Review of Operations 2 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information Uganda: Kitgum-Pader Base Metals & Gold Project Review of Operations The Kitgum-Pader Base and Precious Metals Project covers 7,300 square kilometres in central northern Uganda, East Africa. Sipa 100% East Africa UGANDA Kampala Background The Kitgum-Pader Base and Precious Metals Project was generated following the acquisition in 2011 of relatively new airborne magnetic/radiometric data sets over East Africa, and the subsequent geological/ metallogenic interpretation of the data sets. (cid:8)(cid:60)rin(cid:43) (cid:41)eld reconnaissance in (cid:8)ecem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:136)(cid:84) roc(cid:48)s were recognised as being strikingly similar to the host ‘Mine Series’ sequence at the giant Broken Hill Lead-Zinc-Silver (cid:8)eposit in (cid:18)S(cid:29)(cid:84) (cid:3)(cid:60)stralia(cid:84) to the northwest of Kitgum, Uganda. It was this o(cid:35)servation(cid:84) co(cid:60)pled with the compilation of (cid:9)ast (cid:3)frican (cid:43)eolo(cid:43)ical(cid:84) geochemical, and geophysical data which was the catalyst for embarking on the Kitgum-Pader project. Since that time(cid:84) the compan(cid:64) has collected over 60,000 soil samples, along with geological mapping by the late (cid:18)ic(cid:48) (cid:3)rchi(cid:35)ald(cid:84) (cid:5)re(cid:295) (cid:8)avies and Russell Mason. The results of the (cid:41)eld wor(cid:48) and s(cid:60)(cid:35)se(cid:55)(cid:60)ent drilling of soil targets has led to the discover(cid:64) of (cid:138) potentiall(cid:64) economic mineral systems. – The Intrusive hosted Nickel- Copper sulphide mineralisation at Akelikongo and Akelikongo West; and – The Broken Hill-style Lead-Zinc- Silver, at Pamwa. Akelikongo is one of the standout (cid:18)ic(cid:48)el(cid:102)(cid:6)opper(cid:102)(cid:22)latin(cid:60)m Gro(cid:60)p (cid:9)lement soil anomalies identi(cid:41)ed to date(cid:87) (cid:26)he element association and shape of the anomal(cid:64) led (cid:8)r (cid:14)on Hronsky to interpret this as a possible (cid:91)chonolith(cid:92) (cid:35)ein(cid:43) a fertile host for nic(cid:48)el s(cid:60)lphides within a ma(cid:41)c(cid:102) (cid:60)ltrama(cid:41)c intr(cid:60)sive comple(cid:63)(cid:87) At Akelikongo a high Magnesium Oxide intrusion hosts a zone of disseminated nickel and copper s(cid:60)lphide mineralisation a(cid:35)ove a (cid:65)one of brecciated more massive nickel and copper s(cid:60)lphides(cid:87) (cid:26)he mineralisation extends into the country rock felsic (cid:43)neiss indicatin(cid:43) f(cid:60)rther remo(cid:35)ilisation(cid:87) At Akelikongo West a second high Magnesium Oxide intrusion hosts disseminated nickel and copper s(cid:60)lphide mineralisation with (cid:139)(cid:136)m at 0.5% Ni and 0.1% Cu returned from (cid:138)(cid:165)m in (cid:3)(cid:15)(cid:8)(cid:135)(cid:135)(cid:142)(cid:87) (cid:3)t the date of this report, follow up drilling to test strike and dip extents is currently underway. The Pamwa Zinc, Lead, Silver and (cid:6)admi(cid:60)m soil anomal(cid:64) was (cid:41)rst pass drilled using RAB during July 2014 and resulted in the discovery of a Broken Hill Type Zinc, Lead, Silver and Cadmium mineralised system. (cid:8)iamond drillin(cid:43) con(cid:41)rmed thin (cid:65)ones of base metal sulphides (sphalerite and galena) in all three holes. These intercepts are located within a wider Zinc, Lead, Silver and (cid:6)admi(cid:60)m anomalo(cid:60)s (cid:65)one de(cid:41)ned by a 1000ppm Zinc contour and an even larger 1000ppm Manganese anomalo(cid:60)s (cid:65)one de(cid:41)ned as the “geological host sequence”. (cid:8)iamond drillin(cid:43) indicates the orientation of the mineralisation is (cid:35)roadl(cid:64) parallel to the foliation and can be correlated to the detailed soil data. The geochemistry shows a stron(cid:43) association (cid:35)etween (cid:32)inc(cid:84) (cid:16)ead(cid:84) Cadmium, Manganese, and Silver a characteristic element s(cid:60)ite of (cid:5)ro(cid:48)en (cid:12)ill st(cid:64)le of mineralisation(cid:87) Nickel Copper Akelikongo Following the discovery of disseminated nickel copper sulphide mineralisation in (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:139) (cid:60)sin(cid:43) shallow R(cid:3)(cid:5) drillin(cid:43)(cid:84) an a(cid:295)empt to use geophysics to look more widely in three dimensions was made. The initial R(cid:3)(cid:5) pro(cid:43)ram had intersected a number of mineralized intercepts from surface like: – – – – – – – LMR002: 38m at 0.40% Ni (0.1% cut off) from surface to end of hole (cid:108)(cid:9)O(cid:12)(cid:109)(cid:87) LMR003: 46m at 0.65% Ni from s(cid:60)rface to (cid:9)O(cid:12) (cid:123) (cid:138)(cid:138)m at (cid:135)(cid:87)(cid:136)(cid:142)(cid:166) Cu (0.1% cut off) from 2 metres (cid:16)(cid:17)R(cid:135)(cid:135)(cid:139)(cid:86) (cid:137)(cid:142)m at (cid:135)(cid:87)(cid:140)(cid:135)(cid:166) (cid:18)i from 4m (cid:16)(cid:17)R(cid:135)(cid:135)(cid:142)(cid:86) (cid:140)m at (cid:135)(cid:87)(cid:139)(cid:141)(cid:166) (cid:18)i (cid:108)(cid:135)(cid:87)(cid:136)(cid:166) cut off) and 0.13% Cu from 2m and 3m at 0.66% Ni and 0.18% Cu from 22m (cid:16)(cid:17)R(cid:135)(cid:137)(cid:137)(cid:86) (cid:140)(cid:140)m at (cid:135)(cid:87)(cid:164)(cid:137)(cid:166) (cid:18)i (cid:9)O(cid:12) including 20m at 1.00% Ni and 0.25% Cu from 1m. (cid:16)(cid:17)R(cid:135)(cid:137)(cid:138)(cid:86) (cid:138)(cid:138)m at (cid:135)(cid:87)(cid:138)(cid:139)(cid:166) (cid:18)i (cid:9)O(cid:12) LMR036: 27m at 0.46% Ni Annual Report 2015 3 Review of Operations Uganda: Kitgum-Pader Base Metals & Gold Project contin(cid:60)ed Following the RAB drilling a number of (cid:41)(cid:63)ed loop electro(cid:102)ma(cid:43)netic (cid:108)(cid:9)(cid:17)(cid:109) surveys were undertaken over the Akelikongo area. The surveys identi(cid:41)ed some stron(cid:43) late time (cid:9)(cid:17) conductors which were drilled in early 2015. These surveys highlighted some (cid:65)ones of a(cid:35)(cid:60)ndant p(cid:64)rrhotite in upper amphibolite to granulite facies para(cid:102)(cid:43)neisses which are spatiall(cid:64) related to the (cid:48)nown mineralisation in (cid:60)ltrama(cid:41)c intr(cid:60)sive roc(cid:48)s(cid:87) (cid:26)he (cid:65)ones lie immediately in the footwall to the (cid:48)nown mineralisation at (cid:3)(cid:48)eli(cid:48)on(cid:43)o and as such may have masked the mineralisation(cid:87) (cid:26)he initial diamond core drill tests in February 2015 returned results from (cid:3)(cid:15)(cid:8)(cid:135)(cid:135)(cid:137) and (cid:3)(cid:15)(cid:8)(cid:135)(cid:135)(cid:139) con(cid:41)rmin(cid:43) the presence of a nickel copper sulphide (cid:35)earin(cid:43) ma(cid:41)c(cid:99)(cid:60)ltrama(cid:41)c se(cid:55)(cid:60)ence(cid:87) (cid:3) hi(cid:43)h (cid:17)a(cid:43)nesi(cid:60)m O(cid:63)ide (cid:60)ltrama(cid:41)c sequence was intersected around 50 to 80m wide with the lower 30m containing disseminated nickel-copper- sulphides generally in the order of >0.3% Ni. Intercepts such as 33m @ 0.36% Ni and 0.21% Cu from 103m from (cid:3)(cid:15)(cid:8)(cid:135)(cid:135)(cid:137) and (cid:137)(cid:139)m (cid:124) (cid:135)(cid:87)(cid:138)(cid:135)(cid:166) (cid:18)i and (cid:135)(cid:87)(cid:135)(cid:165)(cid:166) (cid:6)(cid:60) from (cid:140)(cid:165)m in (cid:3)(cid:15)(cid:8)(cid:135)(cid:135)(cid:139) are e(cid:63)amples of this mineralisation(cid:87) This high Magnesium Oxide (cid:60)ltrama(cid:41)c is overlain (cid:35)(cid:64) a p(cid:64)ro(cid:63)enite with a brecciated footwall of felsic granulite gneiss. The base of the nickel copper sulphide sequence includes breccia fragments (typically <0.5m) containing high grade massive nickel and copper sulphides including: – (cid:3)(cid:15)(cid:8)(cid:135)(cid:135)(cid:137) (cid:135)(cid:87)(cid:140)m (cid:124) (cid:136)(cid:87)(cid:141)(cid:141)(cid:166) (cid:18)i and 0.06% Cu, 0.3m @ 0.23% Ni and 3.43% Cu, 0.24m @ 1.15% Ni and 0.02% Cu – (cid:3)(cid:15)(cid:8)(cid:135)(cid:135)(cid:139) (cid:138)(cid:87)(cid:139)m (cid:124) (cid:135)(cid:87)(cid:142)(cid:138)(cid:166) (cid:18)i and (cid:135)(cid:87)(cid:136)(cid:135)(cid:166) (cid:6)(cid:60)(cid:84) (cid:136)(cid:87)(cid:138)m (cid:124) (cid:136)(cid:87)(cid:139)(cid:142)(cid:166) (cid:18)i and (cid:135)(cid:87)(cid:136)(cid:136)(cid:166) (cid:6)(cid:60) and (cid:135)(cid:87)(cid:139)m (cid:124) (cid:136)(cid:87)(cid:140)(cid:142)(cid:166) (cid:18)i and 0.2% Cu These breccia fragments are interpreted to have been remobilised s(cid:60)(cid:43)(cid:43)estin(cid:43) the potential for a lar(cid:43)er(cid:84) more massive source zone nearby. 4 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information Following a detailed gravity survey in early 2015, a second drilling program was conducted. Results from the second drilling program conducted in (cid:17)a(cid:64) to (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:140) con(cid:41)rm other mineralised intercepts along this prospective hori(cid:65)on which now extends 500m and is open in all directions with intercepts s(cid:60)ch as(cid:86) – 25m at 0.4%Ni and 0.1% Cu from (cid:142)(cid:140)m ret(cid:60)rned from (cid:3)(cid:15)(cid:6)(cid:135)(cid:135)(cid:136) within 126m averaging 0.25% Ni and 0.07% Cu from 0 to 126m – 115m averaging 0.31% Ni and (cid:135)(cid:87)(cid:135)(cid:142)(cid:166) (cid:6)(cid:60) from (cid:3)(cid:15)(cid:8)(cid:135)(cid:135)(cid:140) from 116m to 231m including: – (cid:140)m at (cid:135)(cid:87)(cid:164)(cid:142)(cid:166) (cid:18)i and (cid:135)(cid:87)(cid:136)(cid:137)(cid:166) (cid:6)(cid:60) from 202m including – 1m at 1.15% Ni and 0.3% Cu from 202m – 23m at 0.48% Ni and 0.13% Cu from 208m including Figure 1: Geological Section B – B’ of Akelikongo – 1m at 1.86% Ni and 0.11% Cu from 214m – 141m averaging 0.28% Ni from (cid:3)(cid:15)(cid:8)(cid:135)(cid:135)(cid:164) from (cid:136)(cid:136)(cid:135)m incl(cid:60)din(cid:43) – 22m at 0.4% Ni and 0.15% Cu from 173m – 7m at 0.48% Ni and 0.18% Cu from (cid:137)(cid:137)(cid:142)m – 14m at 0.45% Ni and 0.23% Cu from 241m. – 12m at 0.42 % Ni and 0.12% Cu was ret(cid:60)rned from (cid:3)(cid:15)(cid:8)(cid:135)(cid:135)(cid:141) from 275m Section (cid:5) (cid:103)(cid:5)’ (cid:108)Fi(cid:43)(cid:60)re (cid:136)(cid:109) shows the contin(cid:60)it(cid:64) of (cid:35)oth the disseminated and also the higher grade semi to massive sulphide zones. Annual Report 2015 5 Review of Operations Uganda: Kitgum-Pader Base Metals & Gold Project contin(cid:60)ed Figure 2: Drill Hole Locations and Residual Gravity Image Inset at Akelikongo (cid:26)he orientation of the dip of the footwall varies from 45 degrees to the north east(cid:84) as o(cid:35)served from (cid:3)(cid:15)(cid:8)(cid:135)(cid:135)(cid:139) in the so(cid:60)th to vertical as interpreted from (cid:3)(cid:15)(cid:8)(cid:135)(cid:135)(cid:137) and (cid:3)(cid:15)(cid:8)(cid:135)(cid:135)(cid:140) to steepl(cid:64) dippin(cid:43) to the west from (cid:3)(cid:15)(cid:8)(cid:135)(cid:135)(cid:164)(cid:87) O(cid:60)r interpretation from the drillin(cid:43)(cid:84) coupled with the gravity modelling, is that the host intrusion has a moderate plunge of the body to the north west under gneissic rocks. The detailed ground gravity survey over a local area at Akelikongo in (cid:17)arch (cid:137)(cid:135)(cid:136)(cid:140) was s(cid:60)ccessf(cid:60)l in spatiall(cid:64) de(cid:41)nin(cid:43) the (cid:48)nown occ(cid:60)rrences of (cid:60)ltrama(cid:41)c intr(cid:60)sive and the fault/contact controlled footwall stringer, massive and breccia hosted mineralisation to the disseminated s(cid:60)lphide mineralisation(cid:87) Figure 3: Akelikongo and Akelikongo West drill hole locations showing location of inset located at Figure 2. Akelikongo West In July 2015, shallow RAB drilling 800m South West of Akelikongo tested a detailed 25m by 25m soil anomaly. The drilling resulted in a second discovery of nickel and copper s(cid:60)lphides(cid:87) (cid:8)iamond drillin(cid:43) of (cid:3)(cid:15)(cid:8)(cid:135)(cid:135)(cid:142) ret(cid:60)rned a wide interval of coarse disseminated p(cid:64)rrhotite chalcopyrite and pentlandite mineralisation ret(cid:60)rnin(cid:43) (cid:139)(cid:136)m at 0.5% Ni and 0.1% Cu. 6 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information Figure 4: Section through Akelikongo West Nickel and Copper Sulphide System which shows the section through the mineralisation drilled to date. Figure 5: Polished NQ Core from 45.5m AKD009 showing pyrrhotite mineralisation and minor pentlandite Annual Report 2015 7 In s(cid:60)mmar(cid:64)(cid:84) the com(cid:35)ination of detailed 25m by 25m soil sampling, drilling and the ground gravity modelling has assisted us to locate o(cid:60)tcroppin(cid:43) mineralisation at Akelikongo and Akelikongo West and potentiall(cid:64) other prospective (cid:60)ltrama(cid:41)c mineralised host (cid:35)odies(cid:87) To date both mineralised systems identi(cid:41)ed are open alon(cid:43) stri(cid:48)e and down dip. Follow up diamond drilling is currently underway to determine the nature and shape of this newly discovered system at Akelikongo West and to further understand and vector towards high grade nickel at Akelikongo. Review of Operations Uganda: Kitgum-Pader Base Metals & Gold Project contin(cid:60)ed Regional Nickel Potential Figure 6: Location of key drilling targets named in text (cid:3)s part of the on(cid:43)oin(cid:43) screenin(cid:43) of e(cid:63)ploration tenements (cid:60)sin(cid:43) soils anal(cid:64)sed (cid:35)(cid:64) p(cid:30)RF(cid:84) a n(cid:60)m(cid:35)er of additional nic(cid:48)el anomalies have (cid:35)een de(cid:41)ned in the (cid:3)(cid:48)eli(cid:48)on(cid:43)o Re(cid:43)ion and f(cid:60)rther a(cid:41)eld(cid:87) (cid:26)ar(cid:43)ets s(cid:60)ch as Katunguru, Awach, Bidota and Akelikongo Regional were de(cid:41)ned and initial R(cid:3)(cid:5) testin(cid:43) of these tar(cid:43)ets cond(cid:60)cted(cid:87) Other tar(cid:43)ets have had in(cid:41)ll soil samplin(cid:43) to closer spacin(cid:43) s(cid:60)ch as (cid:17)t Goma to help (cid:41)nesse drill tar(cid:43)etin(cid:43)(cid:87) 8 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information Mt Goma Soil sampling, mapping and rock chip sampling in the Mt Goma area has delineated a ma(cid:41)c (cid:60)ltrama(cid:41)c comple(cid:63)(cid:87) Within this complex a strongly weathered zone of approximately 700m by 200m shown in red on Fi(cid:43)(cid:60)res (cid:141) and (cid:165) has (cid:35)een de(cid:41)ned with p(cid:30)RF soil samplin(cid:43) ret(cid:60)rnin(cid:43) (cid:35)etween (cid:135)(cid:87)(cid:140)(cid:166) and (cid:136)(cid:87)(cid:142)(cid:166) nic(cid:48)el(cid:87) Figures 7 and 8 show the nickel and copper soil data and the location of the rock chip samples with the geological mapping. One rock chip was assayed at the laboratory in addition to the man(cid:64) of anomalo(cid:60)s roc(cid:48)s assa(cid:64)ed (cid:35)(cid:64) spot (cid:30)RF(cid:87) (cid:26)he rock chip returned a result of 2.64% nickel with the presence of garnierite (a common oxidised nic(cid:48)elifero(cid:60)s mineral(cid:109) identi(cid:41)ed(cid:87) Shallow RAB drilling is planned once environmental approval has been obtained to push an access track to facilitate the drilling in the second half of 2015. Figure 7: Nickel in soil anomaly Mt Goma. Figure 8: Copper in soil anomaly Mt Goma. Annual Report 2015 9 Review of Operations Uganda: Kitgum-Pader Base Metals & Gold Project contin(cid:60)ed Lead Zinc Pamwa (cid:8)iamond drillin(cid:43) of three shallow holes for (cid:140)(cid:165)(cid:136)m at the Pamwa (cid:16)ead (cid:32)inc tar(cid:43)et de(cid:41)ned previo(cid:60)sl(cid:64) (cid:35)(cid:64) soils and R(cid:3)(cid:5) drillin(cid:43) was completed in (cid:17)arch (cid:137)(cid:135)(cid:136)(cid:140)(cid:87) (cid:26)he res(cid:60)lts con(cid:41)rm that there are thin (cid:35)(cid:60)t correlata(cid:35)le (cid:65)ones of (cid:32)inc and (cid:16)ead in all holes with best intercepts as follows: – (cid:22)(cid:3)(cid:8)(cid:135)(cid:135)(cid:136)(cid:86) (cid:136)(cid:87)(cid:136)m (cid:124) (cid:140)(cid:87)(cid:141)(cid:164)(cid:166) (cid:32)inc (cid:108)(cid:32)n(cid:109) and (cid:136)(cid:87)(cid:140)(cid:165)(cid:166) (cid:16)ead (cid:108)(cid:22)(cid:35)(cid:109) with associated Silver (cid:108)(cid:3)(cid:43)(cid:109) and (cid:6)admi(cid:60)m (cid:108)(cid:6)d(cid:109) of (cid:136)(cid:139)(cid:87)(cid:141)(cid:43)(cid:99)t (cid:3)(cid:43) and 256ppm Cd from 80-81.1m; – (cid:22)(cid:3)(cid:8)(cid:135)(cid:135)(cid:137)(cid:86) (cid:137)(cid:87)(cid:137)m (cid:124) (cid:138)(cid:87)(cid:142)(cid:166) (cid:32)n and (cid:135)(cid:87)(cid:165)(cid:164)(cid:166) (cid:22)(cid:35) with (cid:136)(cid:164)(cid:87)(cid:140)(cid:43)(cid:99)t (cid:3)(cid:43) and (cid:136)(cid:140)(cid:137)ppm (cid:6)d from (cid:136)(cid:135)(cid:142)(cid:102)(cid:136)(cid:136)(cid:136)(cid:87)(cid:137)m(cid:85) and – (cid:22)(cid:3)(cid:8)(cid:135)(cid:135)(cid:138)(cid:86) (cid:135)(cid:87)(cid:139)m (cid:124) (cid:135)(cid:87)(cid:142)(cid:164)(cid:166) (cid:32)n from (cid:136)(cid:135)(cid:164)(cid:87)(cid:164)m (cid:103) (cid:136)(cid:135)(cid:141)m and (cid:135)(cid:87)(cid:140)m (cid:124)(cid:135)(cid:87)(cid:165)(cid:141)(cid:166) (cid:32)n and (cid:135)(cid:87)(cid:137)(cid:166) (cid:22)(cid:35)(cid:87) from (cid:136)(cid:138)(cid:141)(cid:87)(cid:136)(cid:102)(cid:136)(cid:138)(cid:141)(cid:87)(cid:164)m (cid:3)nomalo(cid:60)s (cid:6)admi(cid:60)m and Silver res(cid:60)lts in the core associated with the mineralisation are also consistent with the soil anomalism(cid:87) (cid:26)he association contin(cid:60)es to point to a (cid:5)ro(cid:48)en (cid:12)ill t(cid:64)pe mineralisation st(cid:64)le(cid:87) For this st(cid:64)le of mineralisation to (cid:35)e economic it is considered that (cid:65)ones of str(cid:60)ct(cid:60)ral comple(cid:63)it(cid:64) s(cid:60)ch as (cid:42)e(cid:63)(cid:60)res or fold hin(cid:43)es are li(cid:48)el(cid:64) positions where wider acc(cid:60)m(cid:60)lations of s(cid:60)lphides ma(cid:64) occ(cid:60)r(cid:87) In(cid:41)ll (cid:137)(cid:140)m (cid:35)(cid:64) (cid:137)(cid:140)m soil samplin(cid:43) and (cid:30)RF assa(cid:64)in(cid:43) at Pamwa indicates that the original soil anomaly has resolved into two (cid:65)ones orientated parallel to the re(cid:43)ional foliation as mapped in the area(cid:87) (cid:26)he soils also o(cid:60)tline a n(cid:60)m(cid:35)er of discreet (cid:16)ead(cid:102)(cid:32)inc anomalous zones completely untested by drilling. Figure 9: Image of 25m by 25m Lead and Zinc soil data with RAB drill hole locations. 10 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information (cid:26)he drillin(cid:43) res(cid:60)lts show a n(cid:60)m(cid:35)er of mineralised (cid:35)ands mar(cid:48)ed in red on the section (cid:108)Fi(cid:43)(cid:60)re (cid:136)(cid:135)(cid:109) which r(cid:60)n parallel to the foliation and can (cid:35)e correlated from the s(cid:60)rface soil data and down dip in the diamond holes(cid:87) (cid:26)hese (cid:65)ones dip aro(cid:60)nd (cid:102)(cid:140)(cid:135)(cid:1359) to the north east. The photo shown as Figure 11 is an example of one such mineralised shear band containing sphalerite and trace (cid:43)alena from (cid:22)(cid:3)(cid:8)(cid:135)(cid:135)(cid:136) (cid:165)(cid:135)(cid:102)(cid:165)(cid:136)m(cid:87) Figure 10: Drillhole section PAD 001 and PAD003 showing location of parallel soil anomaly bands Re(cid:43)ionall(cid:64) the tectono strati(cid:43)raphic pac(cid:48)a(cid:43)e hostin(cid:43) Pamwa can be followed in the m(cid:60)lti(cid:102)element soil geochemistry to the south for around 70km. Figure 12 shows this zone and the location of the Lagwagi Zinc Lead in soil anomaly. The Lagwagi soil anomaly was drilled with shallow RAB in July but did not return any anomalous results. Figure 11: 5cm band of sphalerite with minor galena in PAD001 80-81 Annual Report 2015 11 Review of Operations Uganda: Kitgum-Pader Base Metals & Gold Project contin(cid:60)ed Other prospective (cid:65)ones tar(cid:43)eted (cid:35)(cid:64) RAB drilling are located to the north of Akelikongo known as Akek North and Akek South. Figure 13 shows the Nickel, Copper, Lead and Zinc values for (cid:137)(cid:135)(cid:135)m (cid:35)(cid:64) (cid:140)(cid:135)m in(cid:41)ll soil data to the north of Akelikongo. At Akek North, 4km north northwest of Akelikongo, ten shallow RAB holes were drilled to test anomalous Zinc and Lead in soils up to 400ppm Zinc and (cid:136)(cid:137)(cid:140)ppm (cid:16)ead(cid:87) (cid:8)rill holes (cid:16)(cid:17)R(cid:136)(cid:140)(cid:135) and 151 returned strongly anomalous zinc, averaging 443 and 752ppm respectivel(cid:64)(cid:84) with a pea(cid:48) res(cid:60)lt of 1230ppm Zinc at the base of LMR151. LMR123 and LMR152 2.3km north west of Akelikongo at Akek South intersected 6m at 1410ppm Lead from 10m and 20m at 450ppm Zinc from (cid:135)m(cid:84) respectivel(cid:64)(cid:87) Figure 12: Location of prospective gneissic lithostructural units over regional Zinc XRF soil geochemistry Figure 13: Nickel, Copper, Lead and Zinc values for 200m by 50m infill soil data to the north of Akelikongo 12 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information Gold (cid:26)he potential of (cid:43)old mineralisation in these tenements is considered hi(cid:43)h as the interpreted (cid:3)rchean and (cid:22)rotero(cid:65)oic (cid:43)eolo(cid:43)ical a(cid:43)es and str(cid:60)ct(cid:60)ral se(cid:2487)n(cid:43) is similar to man(cid:64) oro(cid:43)enic (cid:35)elts containin(cid:43) (cid:43)old deposits elsewhere in the world(cid:87) (cid:26)o f(cid:60)rther o(cid:60)r aim of (cid:60)nderstandin(cid:43) this potential(cid:84) two phases of selected soil samples (cid:108)one in ei(cid:43)ht of ever(cid:64) re(cid:43)ional soil(cid:109) collected for (cid:30)RF (cid:35)ase metal anal(cid:64)sis were sent to (cid:3)(cid:6)(cid:17)(cid:9) la(cid:35)s in (cid:28)anco(cid:60)ver for Gold and other path(cid:41)nder element anal(cid:64)ses(cid:87) The Oguk Gold and (cid:3)rsenic anomal(cid:64) was identi(cid:41)ed via the (cid:41)rst phase of (cid:136) in (cid:165) la(cid:35) testin(cid:43) in in (cid:137)(cid:135)(cid:136)(cid:138) and drilled with shallow RAB in 2014. The drilling did not extend far enough to test the peak of the gold anomaly. (cid:140) stron(cid:43) new anomalies (cid:60)p to (cid:140)(cid:135)(cid:135)pp(cid:35) Gold have now (cid:35)een identi(cid:41)ed which will (cid:35)e in(cid:41)lled (cid:60)sin(cid:43) more of the e(cid:63)istin(cid:43) (cid:30)RF soil samples to determine their robustness. In(cid:41)ll soil reassa(cid:64)in(cid:43) within these new anomal(cid:64) areas is (cid:60)nderwa(cid:64) and once completed a new R(cid:3)(cid:5) pro(cid:43)ram to test these anomalies if the(cid:64) are con(cid:41)rmed is planned(cid:87) (cid:26)he information in this report that relates to e(cid:63)ploration res(cid:60)lts was previo(cid:60)sl(cid:64) reported in the (cid:3)S(cid:30) (cid:3)nno(cid:60)ncements dated (cid:137)(cid:141) (cid:3)(cid:60)(cid:43)(cid:60)st (cid:137)(cid:135)(cid:136)(cid:140)(cid:84) (cid:137)(cid:139) (cid:3)(cid:60)(cid:43)(cid:60)st (cid:137)(cid:135)(cid:136)(cid:140)(cid:84) (cid:137)(cid:141) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:140)(cid:84) (cid:136)(cid:164) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:140)(cid:84) (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140)(cid:84) (cid:137)(cid:140) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140)(cid:84) (cid:137)(cid:165) (cid:17)a(cid:64) (cid:137)(cid:135)(cid:136)(cid:140)(cid:84) (cid:136)(cid:142) (cid:17)a(cid:64) (cid:137)(cid:135)(cid:136)(cid:140)(cid:84) (cid:136) (cid:17)a(cid:64) (cid:137)(cid:135)(cid:136)(cid:140)(cid:84) (cid:137)(cid:137) (cid:3)pril (cid:137)(cid:135)(cid:136)(cid:140)(cid:84) and (cid:136)(cid:164) (cid:17)arch (cid:137)(cid:135)(cid:136)(cid:140)(cid:87) (cid:26)he (cid:6)ompan(cid:64) is not aware of an(cid:64) new information or data that materiall(cid:64) a(cid:248)ects the information incl(cid:60)ded in those relevant market announcements. Annual Report 2015 13 Board Profiles Board of Directors A strong Board with a solid cross section of skills and experience. The names and details of the Company’s directors in office during the financial year and until the date of this report are as follows. Directors were in office for this entire period unless otherwise stated. 14 Sipa Resources Limited Lynda Margaret Burnett Managing Director Qualifications (cid:5)Sc (cid:108)(cid:12)ons(cid:109) G(cid:3)I(cid:6)(cid:8)(cid:84) (cid:17)(cid:3)(cid:60)sI(cid:17)(cid:17)(cid:84) (cid:17)S(cid:9)G Tenure Appointed 24 July 2014 Experience (cid:17)rs (cid:5)(cid:60)rne(cid:295)(cid:84) formerl(cid:64) (cid:17)s (cid:8)ale(cid:64)(cid:84) is a geologist with over 25 years experience in the mineral e(cid:63)ploration ind(cid:60)str(cid:64)(cid:84) incl(cid:60)din(cid:43) most recentl(cid:64) as (cid:8)irector (cid:103) (cid:9)(cid:63)ploration (cid:3)(cid:60)stralia for (cid:18)ewmont (cid:3)sia (cid:22)aci(cid:41)c(cid:87) (cid:8)(cid:60)rin(cid:43) her nine year tenure with Newmont, Lynda was responsible for the strategic planning management and oversight of all Newmont’s (cid:43)enerative e(cid:63)ploration pro(cid:47)ects(cid:84) as well as business development, in the (cid:3)sia (cid:22)aci(cid:41)c re(cid:43)ion(cid:87) (cid:22)rior to her roles at Newmont, Lynda has worked for a number of minin(cid:43) and e(cid:63)ploration companies incl(cid:60)din(cid:43) e(cid:63)ec(cid:60)tive director of Summit Resources Ltd, and for Newmont Pty Ltd at the Telfer Gold Mine and Worsley, Alumina at the Boddington gold mine at its commencement. (cid:8)(cid:60)rin(cid:43) the past three (cid:64)ears (cid:17)rs (cid:5)(cid:60)rne(cid:295) has not (cid:35)een a director of any other listed company. Craig Ian McGown Chairman Qualifications BComm, FCA, ASIA Tenure Appointed 11 March 2015 Experience Mr McGown is an investment banker with over 35 years of e(cid:63)perience cons(cid:60)ltin(cid:43) to companies in Australia and internationall(cid:64)(cid:84) partic(cid:60)larl(cid:64) in the natural resources sector. He holds a Bachelor of Commerce de(cid:43)ree(cid:84) is a Fellow of the Instit(cid:60)te of Chartered Accountants and an (cid:3)(cid:259)liate of the Financial Services Instit(cid:60)te of (cid:3)(cid:60)stralasia(cid:87) (cid:17)r (cid:17)cGown is an e(cid:63)ec(cid:60)tive director of the corporate advisory business New Holland Capital Pty Ltd and prior to that appointment was the chairman of (cid:8)(cid:14) (cid:6)armichael Pty Limited. Mr McGown has had extensive experience in the corporate (cid:41)nance sector(cid:84) incl(cid:60)din(cid:43) mer(cid:43)ers and ac(cid:55)(cid:60)isitions(cid:84) capital raisin(cid:43)s in (cid:35)oth domestic and international (cid:41)nancial mar(cid:48)ets(cid:84) asset ac(cid:55)(cid:60)isitions and asset disposals(cid:84) initial p(cid:60)(cid:35)lic o(cid:248)erin(cid:43)s and corporate restructurings. Mr McGown is also the Non- (cid:9)(cid:63)ec(cid:60)tive (cid:6)hairman for (cid:22)ioneer Resources Limited and in the past three years has held directorships in Bass Metals Ltd (7 July 2004 to 4 October 2014), and Peel Mining Limited (1 February 2008 to (cid:142) (cid:3)pril (cid:137)(cid:135)(cid:136)(cid:138)(cid:109) Review of Operations | Governance | Financial Report | Shareholders’ Information Dalton Leslie Gooding Independent Non-Executive Director Paul Gerard Kiley Independent Non-Executive Director Karen Lesley Field Independent Non-Executive Director Tara Ann Robson Chief Financial Officer and Company Secretary Qualifications B.BUS, FCA Tenure Appointed 1 May 2003 Qualifications (cid:5) (cid:9)c(cid:87) (cid:6)(cid:22)(cid:3) Tenure Appointed 23 September 2014 Qualifications (cid:5) (cid:9)c(cid:84) F(cid:3)I(cid:6)(cid:8) Tenure Appointed 16 September 2004 Experience Mr Kiley has over three decade of experience in the mining, oil and gas industries, most recently Normandy/Newmont, the last six years of which was as the (cid:8)irector for (cid:6)orporate (cid:8)evelopment for (cid:18)ewmont’s (cid:3)sia (cid:22)aci(cid:41)c region. Upon leaving Newmont, Mr Kiley esta(cid:35)lished a cons(cid:60)ltin(cid:43) business which has principally been involved in managing commercial infrastructure aspects of projects through the prefeasibility and feasibility phases. Mr Kiley is a member of the Audit and Risk (cid:6)ommi(cid:295)ee(cid:87) (cid:8)(cid:60)rin(cid:43) the past three years he has not been a director of any other listed companies. Experience Mrs Field has over three decades experience in the mining industry and has held e(cid:63)ec(cid:60)tive roles in a variety of industry sectors in Australia and South America. She has a strong background in strategy, human resources and project management. Mrs Field is a member of the (cid:18)omination and (cid:6)ompensation (cid:6)ommi(cid:295)ee (chair since 11 March 2015). (cid:8)(cid:60)rin(cid:43) the past three (cid:64)ears Mrs Field has also served as a director of the following other listed companies: – Aurizon Holdings Limited (director from (cid:136)(cid:142) (cid:3)pril (cid:137)(cid:135)(cid:136)(cid:137)(cid:109) – Mining and Civil Australia Limited (director from 11 June (cid:137)(cid:135)(cid:136)(cid:136)(cid:103)(cid:138)(cid:135) (cid:3)pril (cid:137)(cid:135)(cid:136)(cid:137)(cid:109) Experience Mr Gooding is a chartered accountant with over 30 years experience within the corporate and business sector including 14 years as a partner of (cid:9)rnst (cid:123) (cid:31)o(cid:60)n(cid:43) (cid:35)efore startin(cid:43) his own practice of Gooding Partners (formerly Gooding Pervan) in (cid:136)(cid:142)(cid:142)(cid:165)(cid:87) (cid:17)r Goodin(cid:43) is the Chairman of the Audit and Ris(cid:48) (cid:6)ommi(cid:295)ee and serves as the Senior Independent (cid:8)irector(cid:87) (cid:8)(cid:60)rin(cid:43) the past 3 years Mr Gooding has also served as a director of the following other listed companies: – TFS Corporation Ltd (director since October 2014, Chairman since November 2014) – Avita Medical Limited (director November (cid:137)(cid:135)(cid:135)(cid:137)(cid:103)(cid:136) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:139)(cid:109) – Katana Capital Limited (director since November 2005) – Brierty Limited (director since October 2007) Qualifications (cid:5)(cid:87)(cid:3)(cid:87) (cid:3)cco(cid:60)ntin(cid:43) (cid:108)(cid:6)(cid:22)(cid:3) (cid:103) (cid:27)S(cid:3)(cid:109) Tenure Appointed 8 April 2004 Experience Before joining Sipa Resources Limited, she served as consultant to the Company. She has held a similar role with listed entities since (cid:136)(cid:142)(cid:142)(cid:141) including Anvil Mining Limited and Brookman Resourcses Limited. Prior to that Ms Robson was a senior audit manager with a ma(cid:47)or acco(cid:60)ntin(cid:43) practice(cid:87) Annual Report 2015 15 Corporate Governance Statement Corporate Governance Statement Sipa’s Corporate Governance policies have been formulated to ensure that it is a responsible corporate citi(cid:65)en(cid:87) (cid:27)nless otherwise noted(cid:84) Sipa complies with all aspects of the (cid:3)S(cid:30) (cid:6)orporate Governance (cid:6)o(cid:60)ncil’s (cid:91)(cid:6)orporate Governance (cid:22)rinciples and Recommendations (cid:138)rd (cid:9)dition(cid:92) (cid:108)(cid:91)(cid:26)he (cid:3)S(cid:30) (cid:22)rinciples(cid:92)(cid:109)(cid:87) (cid:3) description of the (cid:6)ompan(cid:64)’s main corporate (cid:43)overnance practices is set o(cid:60)t (cid:35)elow(cid:87) (cid:3)ll of these practices were in place for the whole of the (cid:41)nancial (cid:64)ear (cid:60)nless otherwise noted(cid:87) 1 The Board of Directors The Board is responsible to shareholders for the overall Corporate Governance of the Sipa Group including its strate(cid:43)ic direction(cid:84) esta(cid:35)lishin(cid:43) (cid:15)(cid:22)I’s for mana(cid:43)ement and monitoring the achievement of those KPI’s in a way which ensures that the interest of shareholders and stakeholders are promoted and protected. The Board operates in accordance with the broad principles set out in its charter which is availa(cid:35)le in the corporate (cid:43)overnance information section of the (cid:6)ompan(cid:64)’s we(cid:35)site at www(cid:87)sipa(cid:87)com(cid:87)a(cid:60)(cid:87) 1.1 Composition of the Board (cid:26)he composition of the (cid:5)oard is determined in accordance with the following principles and guidelines: – – – – the Board should comprise at least four directors and should maintain a majority of independent non- executive directors; the Chairperson of the Board should be an independent non-executive director. In the event, this independence is impaired, the Board shall appoint a senior independent director, to manage conflicts of interest should they arise; the Board should comprise directors with an appropriate range of qualifications and expertise which is reviewed annually through the use of a skills matrix; the Board should meet at least 8 times per year and follow meeting guidelines set down to ensure all directors are made aware of, and have available all necessary information, to participate in an informed discussion of all agenda items. 1.2 Names, qualifications, experience and special responsibilities Craig Ian McGown, BComm, FCA, ASIA Non-Executive Director (Chairman since 11 March 2015) Mr McGown is an investment banker with over 35 years of e(cid:63)perience cons(cid:60)ltin(cid:43) to companies in (cid:3)(cid:60)stralia and internationall(cid:64)(cid:84) partic(cid:60)larl(cid:64) in the nat(cid:60)ral reso(cid:60)rces sector(cid:87) He holds a Bachelor of Commerce degree, is a Fellow of the Instit(cid:60)te of (cid:6)hartered (cid:3)cco(cid:60)ntants and an (cid:3)(cid:259)liate of the Financial Services Instit(cid:60)te of (cid:3)(cid:60)stralasia(cid:87) 16 Sipa Resources Limited (cid:17)r (cid:17)cGown is an e(cid:63)ec(cid:60)tive director of the corporate advisory business New Holland Capital Pty Ltd (New Holland) and prior to that appointment was the chairman of (cid:8)(cid:14) (cid:6)armichael (cid:22)t(cid:64) (cid:16)imited(cid:87) (cid:17)r (cid:17)cGown has had e(cid:63)tensive e(cid:63)perience in the corporate (cid:41)nance sector(cid:84) incl(cid:60)din(cid:43) mer(cid:43)ers and ac(cid:55)(cid:60)isitions(cid:84) capital raisin(cid:43)s in (cid:35)oth domestic and international (cid:41)nancial mar(cid:48)ets(cid:84) asset ac(cid:55)(cid:60)isitions and asset disposals(cid:84) initial p(cid:60)(cid:35)lic o(cid:248)erin(cid:43)s and corporate restructurings. (cid:17)r (cid:17)cGown is also the (cid:18)on(cid:102)(cid:9)(cid:63)ec(cid:60)tive (cid:6)hairman for Pioneer Resources Limited and in the past three years has held directorships in Bass Metals Ltd (7 July 2004 to 4 October 2014), and Peel Mining Limited (1 February (cid:137)(cid:135)(cid:135)(cid:165) to (cid:142) (cid:3)pril (cid:137)(cid:135)(cid:136)(cid:138)(cid:109)(cid:87) (cid:26)hro(cid:60)(cid:43)h his role as e(cid:63)ec(cid:60)tive director of (cid:18)ew (cid:12)olland(cid:84) (cid:17)r (cid:17)cGown has (cid:35)een cons(cid:60)ltin(cid:43) to the (cid:6)ompan(cid:64) since October 2014. In accordance with the Company’s policy on assessing the independence of directors, Mr McGown is not considered to be an independent director by virtue of this cons(cid:60)ltin(cid:43) arran(cid:43)ement(cid:87) (cid:3)s a res(cid:60)lt(cid:84) the (cid:5)oard has appointed (cid:17)r (cid:8)alton Goodin(cid:43) as Senior Independent (cid:8)irector to f(cid:60)l(cid:41)l the role of (cid:6)hair(cid:84) in sit(cid:60)ations where (cid:17)r (cid:17)cGown ma(cid:64) (cid:35)e con(cid:42)icted(cid:87) (cid:17)r (cid:17)cGown is a mem(cid:35)er of the (cid:18)omination and (cid:6)ompensation (cid:6)ommi(cid:295)ee since his appointment on 11 March 2015. Lynda Margaret Burnett, BSc (Hons) GAICD, MAusIMM, MSEG (Managing Director since 24 July 2014, Exploration Manager 5 June 2014 to 24 July 2014) (cid:17)rs (cid:5)(cid:60)rne(cid:295) is a (cid:43)eolo(cid:43)ist with over (cid:137)(cid:140) (cid:64)ears e(cid:63)perience in the mineral e(cid:63)ploration ind(cid:60)str(cid:64)(cid:84) incl(cid:60)din(cid:43) most recentl(cid:64) as (cid:8)irector (cid:103) (cid:9)(cid:63)ploration (cid:3)(cid:60)stralia for (cid:18)ewmont (cid:3)sia (cid:22)aci(cid:41)c(cid:87) (cid:8)(cid:60)rin(cid:43) her nine (cid:64)ear ten(cid:60)re with (cid:18)ewmont(cid:84) (cid:17)rs (cid:5)(cid:60)rne(cid:295) was responsible for the strategic planning management and oversi(cid:43)ht of all (cid:18)ewmont’s (cid:43)enerative e(cid:63)ploration projects, as well as business development, in the Asia (cid:22)aci(cid:41)c re(cid:43)ion(cid:87) (cid:22)rior to her roles at (cid:18)ewmont(cid:84) (cid:17)rs (cid:5)(cid:60)rne(cid:295) has wor(cid:48)ed for a n(cid:60)m(cid:35)er of minin(cid:43) and e(cid:63)ploration companies incl(cid:60)din(cid:43) e(cid:63)ec(cid:60)tive director of S(cid:60)mmit Resources Ltd, and for Newmont Pty Ltd at the Telfer Gold Mine and Worsley Alumina at the Boddington gold mine at its commencement. (cid:8)(cid:60)rin(cid:43) the past three (cid:64)ears (cid:17)rs (cid:5)(cid:60)rne(cid:295) has not (cid:35)een a director of any other listed company. Dalton Leslie Gooding, B.BUS, FCA – Independent Non- Executive Director (Appointed 1 May 2003) Mr Gooding is a chartered accountant with over 30 years experience within the corporate and business sector incl(cid:60)din(cid:43) (cid:136)(cid:139) (cid:64)ears as a partner of (cid:9)rnst (cid:123) (cid:31)o(cid:60)n(cid:43) (cid:35)efore startin(cid:43) his own practice of Goodin(cid:43) (cid:22)artners (cid:108)formerl(cid:64) Goodin(cid:43) (cid:22)ervan(cid:109) in (cid:136)(cid:142)(cid:142)(cid:165)(cid:87) Review of Operations | Governance | Financial Report | Shareholders’ Information (cid:17)r Goodin(cid:43) is the (cid:6)hairman of the (cid:3)(cid:60)dit (cid:123) Ris(cid:48) (cid:6)ommi(cid:295)ee and serves as the Senior Independent (cid:8)irector(cid:87) (cid:8)(cid:60)rin(cid:43) the past three (cid:64)ears (cid:17)r(cid:87) Goodin(cid:43) has also served as a director of the following other listed companies: (cid:17)rs Field is a mem(cid:35)er of the (cid:18)omination and (cid:6)ompensation (cid:6)ommi(cid:295)ee (cid:108)(cid:6)hair since (cid:136)(cid:136) (cid:17)arch (cid:137)(cid:135)(cid:136)(cid:140)(cid:109)(cid:87) (cid:8)(cid:60)rin(cid:43) the past three (cid:64)ears (cid:17)rs Field has also served as a director of the following other listed companies: – TFS Corporation Ltd (director since October 2014, chairman since November 2014) – (cid:3)(cid:60)ri(cid:65)on (cid:12)oldin(cid:43)s (cid:16)imited (cid:108)director since (cid:136)(cid:142) (cid:3)pril (cid:137)(cid:135)(cid:136)(cid:137)(cid:109) – Mining and Civil Australia Limited (director from – Avita Medical Limited (director from November 2002 (cid:136)(cid:136) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:136) (cid:103) (cid:138)(cid:135) (cid:3)pril (cid:137)(cid:135)(cid:136)(cid:137)(cid:109) (cid:103) (cid:136) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:139)(cid:109) – Katana Capital Limited (director since November 2005) – Brierty Limited (director since October 2007) Karen Lesley Field, B Ec, FAICD – Independent Non- Executive Director (Appointed 16 September 2004) Mrs Field has over three decades experience in the minin(cid:43) ind(cid:60)str(cid:64) and has held e(cid:63)ec(cid:60)tive roles in a variet(cid:64) of industry sectors in Australia and South America. She has a strong background in strategy, human resources and project management. Paul Gerard Kiley, B Ec. CPA – Independent Non-Executive Director (Appointed 23 September 2014) Mr Kiley has over three decade of experience in the mining, oil and gas industries, most recently Normandy/ (cid:18)ewmont(cid:84) the last si(cid:63) (cid:64)ears of which was as the (cid:8)irector for (cid:6)orporate (cid:8)evelopment for (cid:18)ewmont’s (cid:3)sia (cid:22)aci(cid:41)c region. Upon leaving Newmont, Mr Kiley established a cons(cid:60)ltin(cid:43) (cid:35)(cid:60)siness which has principall(cid:64) (cid:35)een involved in managing commercial infrastructure aspects of projects through the prefeasibility and feasibility phases. (cid:17)r (cid:15)ile(cid:64) has (cid:35)een a mem(cid:35)er of the (cid:3)(cid:60)dit (cid:123) Ris(cid:48) (cid:6)ommi(cid:295)ee since his appointment(cid:87) (cid:8)(cid:60)rin(cid:43) the past three years Mr Kiley has not been a director of any other listed companies. 1.3 Board Experience, Skills and Attributes Matrix (cid:26)he followin(cid:43) ta(cid:35)le s(cid:60)mmarises the s(cid:48)ills(cid:84) a(cid:295)ri(cid:35)(cid:60)tes and e(cid:63)perience of the directors servin(cid:43) on the (cid:5)oard at (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140)(cid:87) (cid:26)he (cid:5)oard collectivel(cid:64) has the s(cid:48)ills to complete the followin(cid:43)(cid:86) Skill area/specific skill 1. RISK & COMPLIANCE 1.1. Operational Risk & Compliance 1.2. Legal Risk & Compliance 1.3. Financial & Audit 1.4. Technology 2. STRATEGY & POLICY 2.1. Strategy 2.2. Policy Development 1.3. Crisis Management 3. INDUSTRY 3.1. Industry Specific Skills Requirements overview Identify key risks to the organisation related to each key area of operations. Monitor risk and compliance and knowledge of legal and regulatory requirements. (cid:9)(cid:63)perience in acco(cid:60)ntin(cid:43) and finance to anal(cid:64)se statements(cid:84) assess financial viability, contribute to financial planning, oversee budgets and oversee funding arrangements. Knowledge of IT governance and systems including privacy, data management and security. Identify and critically assess strategic opportunities and threats to the or(cid:43)anisation(cid:87) (cid:8)evelop strate(cid:43)ies in conte(cid:63)t to o(cid:60)r policies and business objectives. Identify key issues for the organisation and develop appropriate policy parameters within which the organization should operate. Constructively manage crisis, provide leadership around solutions and contribute to communications strategy with stakeholders. (cid:9)(cid:63)perience and (cid:48)nowled(cid:43)e with respect to the ind(cid:60)str(cid:64) in which the Company operates. Annual Report 2015 17 Corporate Governance Statement Corporate Governance Statement contin(cid:60)ed 4. MANAGEMENT & LEADERSHIP 4.1. Executive Management 4.2. Leadership 4.3. Negotiation 5. BOARD CONDUCT 5.1. Ethics and Integrity 5.2. Contribution 6. PERSONAL 6.1. Diversity 6.2. Previous Board Experience 6.3. Board Training (cid:9)(cid:63)perience in eval(cid:60)atin(cid:43) performance of senior mana(cid:43)ement(cid:84) and oversee strate(cid:43)ic h(cid:60)man capital plannin(cid:43)(cid:87) (cid:9)(cid:63)perience in ind(cid:60)strial relations and organisational change management programmes. Make decisions and take necessary actions in the best interest of the organisation, and represent the organisation favourably. Analyse issues and contribute at board level to solutions. Possess excellent negotiation skills, with the ability to drive stakeholder support for board decisions. Understand role as director and continue to self-educate on legal responsibility, ability to maintain board confidentiality, declare any conflicts. Constructively contribute to board discussions and communicate effectively with management and other directors. Acknowledge diversity can lead to better board outcomes. Has director experience (past or present) on other public company or private company Boards. Has completed formal training in director role and duties including training in governance and risk. – (cid:9)ns(cid:60)rin(cid:43) that appropriate (cid:12)ealth Safet(cid:64) and (cid:9)nvironment policies are implemented and effective(cid:87) – Approving operational budgets and monitoring performance against those budgets, monitoring financial reporting, and capital management; – Approving and monitoring the progress of business – objectives; Identifying areas of significant business risk and ensuring that arrangements are in place to adequately manage those risks and reviewing the business risk matrix on a regular basis. – (cid:9)ns(cid:60)rin(cid:43) that the Sipa Gro(cid:60)p has appropriate corporate governance structures in place including standards of ethical behaviour and a culture of corporate and social responsibility; and monitoring the effectiveness of those practices. The Company Secretary is accountable directly to the (cid:5)oard(cid:84) thro(cid:60)(cid:43)h the (cid:6)hairman(cid:84) on all ma(cid:295)ers to do with the proper f(cid:60)nctionin(cid:43) of the (cid:5)oard(cid:87) 1.4 Board Responsibilities (cid:26)he responsi(cid:35)ilit(cid:64) for the operation and administration of the Sipa Group is delegated by the Board to the Managing (cid:8)irector and the e(cid:63)ec(cid:60)tive team(cid:87) Speci(cid:41)call(cid:64)(cid:84) the (cid:5)oard is responsi(cid:35)le for(cid:86) – Identifying the expectation of the shareholders, as well as other regulatory and ethical expectations and obligations. – (cid:9)ns(cid:60)rin(cid:43) that the (cid:5)oard maintains an appropriate ran(cid:43)e of qualifications and expertise. – Appointing the Chair of the Board. – Appointing and removing the managing director/ (cid:6)(cid:9)O and overseein(cid:43) s(cid:60)ccession plans for the senior executive team. – (cid:9)ns(cid:60)rin(cid:43) that the e(cid:63)ec(cid:60)tive team is appropriatel(cid:64) qualified and experienced to discharge their responsibilities and has in place procedures to assess the performance of the (cid:17)ana(cid:43)in(cid:43) (cid:8)irector and the Company Secretary. – Approving the entity’s remuneration framework. Setting strategic direction of the Sipa Group and – monitorin(cid:43) the performance of the (cid:17)(cid:8) within that framework; – (cid:9)ns(cid:60)rin(cid:43) there are ade(cid:55)(cid:60)ate reso(cid:60)rces availa(cid:35)le to meet Sipa’s objectives; 18 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information 1.5 Independence of Directors The Company considers that an independent director is a non(cid:102)e(cid:63)ec(cid:60)tive director who is a not a mem(cid:35)er of management and who is free of any business or other relationship that co(cid:60)ld materiall(cid:64) interfere with (cid:103) or could reasonably be perceived to materially interfere with (cid:103) the independent e(cid:63)ercise of their (cid:47)(cid:60)d(cid:43)ement(cid:87) (cid:26)his independence is assessed contin(cid:60)all(cid:64) thro(cid:60)(cid:43)ho(cid:60)t the (cid:64)ear(cid:87) (cid:5)roadl(cid:64)(cid:84) independent directors are non(cid:102)e(cid:63)ec(cid:60)tives(cid:84) who(cid:86) – Are not a substantial shareholder of the Company or otherwise associated with a substantial shareholder of the Company; – Have not been employed, or previously been employed in an executive capacity by the Company, and there has not been a period of at least three years between ceasing such employment and serving on the Board; – Have not within the last three years been a principal – of a material professional advisor or a material consultant to the Company; Is not a material supplier or customer of the Company or an officer of otherwise associated directly or indirectly with a material supplier or customer; – (cid:8)oes not have a material contract(cid:60)al relationship with the Company or another Group member other than as a director. Materiality for these purposes is determined on both (cid:55)(cid:60)antitative and (cid:55)(cid:60)alitative (cid:35)ases(cid:87) (cid:3)n amo(cid:60)nt of over 5% of the Company’s expenditure or 10% of the advisor’s turnover is considered material. There are procedures in place, agreed by the Board, to ena(cid:35)le directors in f(cid:60)rtherance of their d(cid:60)ties to seek independent professional advice at the Company’s expense. 2 Nomination and Compensation Committee (cid:26)he (cid:5)oard has esta(cid:35)lished a (cid:18)omination and (cid:6)ompensation commi(cid:295)ee(cid:84) which operates (cid:60)nder a charter approved by the Board. A copy of the charter can be found in the corporate (cid:43)overnance information section of the Company’s website at www.sipa.com.au. The Board recognises that corporate performance is enhanced when there is a Board with the appropriate competencies to enable it to discharge its mandate e(cid:248)ectivel(cid:64)(cid:87) (cid:26)he (cid:6)ommi(cid:295)ee’s primar(cid:64) f(cid:60)nctions are to(cid:86) – Identify and evaluate the particular skills, experience and expertise that will best complement the Board’s effectiveness; – Review Board succession plans; – (cid:9)val(cid:60)ate the (cid:5)oard’s performance(cid:85) – Make recommendations for the appointment and removal of directors to the Board; – Periodically review performance and succession plannin(cid:43) for the (cid:17)ana(cid:43)in(cid:43) (cid:8)irector(cid:84) senior e(cid:63)ec(cid:60)tives and other key staff; and – Review and make recommendations to the Board on remuneration packages and policies applicable to the senior executives and directors. 2.1 Composition of the Nomination and Compensation Committee (cid:26)he mem(cid:35)ers of the (cid:18)omination and (cid:6)ompensation (cid:6)ommi(cid:295)ee d(cid:60)rin(cid:43) the period to (cid:136)(cid:136) (cid:17)arch (cid:137)(cid:135)(cid:136)(cid:140) were Mr P Pearce (Chairman) and Mrs K Field, both of whom are independent. Since that date the members were Mrs K Field (Chairman) and C McGown. Mr McGown does not meet the (cid:5)oard’s de(cid:41)nition of independent d(cid:60)e to a mandate for advisory services entered into prior to his appointment as Chairman of the Company. The Board has determined that two mem(cid:35)ers are s(cid:60)(cid:259)cient (cid:43)iven the si(cid:65)e of the compan(cid:64) and its activities(cid:87) (cid:26)his is one fewer than the minim(cid:60)m of (cid:138) o(cid:60)tlined in the (cid:3)S(cid:30) (cid:22)rinciples(cid:87) (cid:26)he (cid:55)(cid:60)ali(cid:41)cations of (cid:18)omination and (cid:6)ompensation commi(cid:295)ee mem(cid:35)ers and their a(cid:295)endance at meetin(cid:43)s are detailed in the (cid:8)irectors’ Report(cid:87) 2.2 Appointment and Re-election of Directors (cid:29)hen appointin(cid:43) new (cid:8)irectors and re(cid:102)electin(cid:43) (cid:8)irectors(cid:84) the (cid:5)oard and the (cid:18)omination and (cid:6)ompensation commi(cid:295)ee loo(cid:48) to ens(cid:60)re that an appropriate (cid:35)alance of skills, knowledge, experience, independence and diversity is maintained. Appropriate background checks commensurate with the knowledge of the nominated director are cond(cid:60)cted prior to appointin(cid:43) an(cid:64) new (cid:8)irector and each (cid:5)oard mem(cid:35)er has an opport(cid:60)nit(cid:64) to meet with the nominated (cid:8)irector(cid:87) (cid:8)(cid:60)rin(cid:43) the c(cid:60)rrent year, there were two new appointments, both of whom were known to the Company. In each case the background chec(cid:48)s were limited to reference chec(cid:48)s(cid:84) con(cid:41)rmation of (cid:55)(cid:60)ali(cid:41)cations and personal (cid:48)nowled(cid:43)e of the individ(cid:60)als(cid:87) (cid:29)hen the candidate’s nomination for election is (cid:35)ein(cid:43) put forward for approval by shareholders at the AGM, all material information in the (cid:6)ompan(cid:64)’s possession that the (cid:5)oard considers relevant to the candidate’s election as a (cid:8)irector will (cid:35)e provided to shareholders in the relevant notice of meetin(cid:43)(cid:87) (cid:8)irector appointments are con(cid:41)rmed with formal le(cid:295)ers of appointment se(cid:2487)n(cid:43) o(cid:60)t the (cid:48)e(cid:64) terms(cid:84) conditions and e(cid:63)pectations of their appointment(cid:87) (cid:8)irectors s(cid:60)(cid:35)mi(cid:2487)n(cid:43) themselves for re(cid:102)election at an ann(cid:60)al (cid:43)eneral meetin(cid:43) are reviewed (cid:35)(cid:64) the (cid:18)ominations and (cid:6)ompensation commi(cid:295)ee in accordance with the (cid:6)onstit(cid:60)tion and the (cid:3)ppointment and Re(cid:102)election of (cid:8)irectors (cid:22)olic(cid:64)(cid:84) a cop(cid:64) of which is fo(cid:60)nd on the we(cid:35)site(cid:87) Annual Report 2015 19 Corporate Governance Statement Corporate Governance Statement contin(cid:60)ed 2.3 Induction and Continuing Development of Directors Sipa does not have a formal ind(cid:60)ction pro(cid:43)ram(cid:87) (cid:26)he (cid:5)oard in con(cid:47)(cid:60)nction with the (cid:18)omination and (cid:6)ompensation (cid:6)ommi(cid:295)ee re(cid:43)(cid:60)larl(cid:64) reviews the s(cid:48)ills(cid:84) (cid:48)nowled(cid:43)e and familiarit(cid:64) with the (cid:6)ompan(cid:64)’s operations to ascertain (cid:43)aps and the appropriate development opport(cid:60)nities to (cid:41)ll those (cid:43)aps(cid:87) In addition(cid:84) the compan(cid:64) secretar(cid:64) re(cid:43)(cid:60)larl(cid:64) circulates professional updates. 3 Audit & Risk Committee (cid:26)he (cid:5)oard has esta(cid:35)lished an (cid:3)(cid:60)dit (cid:123) Ris(cid:48) (cid:6)ommi(cid:295)ee(cid:84) which operates under a charter approved by the Board. A copy of the charter can be found in the corporate (cid:43)overnance information section of the (cid:6)ompan(cid:64)’s we(cid:35)site at www.sipa.com.au. It is the Board’s responsibility to ens(cid:60)re that an e(cid:248)ective internal control framewor(cid:48) e(cid:63)ists within the entit(cid:64)(cid:87) (cid:26)his incl(cid:60)des internal controls to deal with (cid:35)oth the e(cid:248)ectiveness and e(cid:259)cienc(cid:64) of si(cid:43)ni(cid:41)cant business processes. This includes the safeguarding of assets(cid:84) and partic(cid:60)larl(cid:64) the (cid:6)ompan(cid:64)’s mineral properties and cash at (cid:35)an(cid:48)(cid:84) the maintenance of proper acco(cid:60)ntin(cid:43) records(cid:84) and the relia(cid:35)ilit(cid:64) of (cid:41)nancial information as well as non(cid:102)(cid:41)nancial considerations s(cid:60)ch as the (cid:35)enchmar(cid:48)in(cid:43) of operational (cid:48)e(cid:64) performance indicators(cid:87) (cid:26)he (cid:5)oard has delegated the responsibility of the establishment and maintenance of a framework of internal control and ethical standards for the mana(cid:43)ement of the consolidated entit(cid:64) to the (cid:3)(cid:60)dit (cid:123) Ris(cid:48) (cid:6)ommi(cid:295)ee(cid:87) 3.1 Composition of the Audit & Risk Committee (cid:26)he mem(cid:35)ers of the (cid:3)(cid:60)dit (cid:123) Ris(cid:48) (cid:6)ommi(cid:295)ee are (cid:17)essrs (cid:8) Goodin(cid:43) (cid:108)(cid:6)hairman(cid:109) and (cid:22) (cid:15)ile(cid:64)(cid:84) (cid:35)oth of whom are independent(cid:84) non(cid:102)e(cid:63)ec(cid:60)tive (cid:8)irectors and (cid:55)(cid:60)ali(cid:41)ed accountants. The Board has determined that two members are s(cid:60)(cid:259)cient (cid:43)iven the si(cid:65)e of the (cid:6)ompan(cid:64)’s operations(cid:87) This is one fewer than the minimum of 3 outlined in the (cid:3)S(cid:30) (cid:22)rinciples(cid:87) (cid:26)he (cid:55)(cid:60)ali(cid:41)cations of the (cid:3)(cid:60)dit (cid:123) Ris(cid:48) (cid:6)ommi(cid:295)ee mem(cid:35)ers and their a(cid:295)endance at meetin(cid:43)s are detailed in the (cid:8)irectors’ Report(cid:87) 3.2 Annual Certification (cid:29)hen considerin(cid:43) the (cid:3)(cid:60)dit (cid:123) Ris(cid:48) (cid:6)ommi(cid:295)ee’s review of (cid:41)nancial reports(cid:84) the (cid:5)oard receives a wri(cid:295)en statement(cid:84) si(cid:43)ned (cid:35)(cid:64) the (cid:17)ana(cid:43)in(cid:43) (cid:8)irector(cid:84) and the (cid:6)hief Financial O(cid:259)cer(cid:84) that in their opinion(cid:84) the (cid:41)nancial records of the Company have been properly maintained and that the (cid:41)nancial statements compl(cid:64) with the appropriate acco(cid:60)ntin(cid:43) standards and (cid:43)ive a tr(cid:60)e and fair view of the (cid:41)nancial position and performance of the (cid:6)ompan(cid:64) and that the opinion has been formed on the basis of a sound system of risk management, and internal control which is operatin(cid:43) e(cid:248)ectivel(cid:64)(cid:87) 4 Policies 4.1 Continuous Disclosure Policy (cid:26)he (cid:5)oard no lon(cid:43)er has a (cid:6)ontin(cid:60)o(cid:60)s (cid:8)isclos(cid:60)re (cid:6)ommi(cid:295)ee(cid:84) (cid:35)(cid:60)t rather it is the (cid:5)oard as a whole which has responsi(cid:35)ilit(cid:64) to ens(cid:60)re that an e(cid:248)ective (cid:6)ontin(cid:60)o(cid:60)s (cid:8)isclos(cid:60)re polic(cid:64) e(cid:63)ists within the (cid:43)overnance str(cid:60)ct(cid:60)re of Sipa and that an on(cid:43)oin(cid:43) e(cid:248)ective compliance re(cid:43)ime is maintained(cid:87) Speci(cid:41)call(cid:64) the polic(cid:64) is desi(cid:43)ned to(cid:86) – (cid:9)ns(cid:60)re compliance with contin(cid:60)o(cid:60)s disclos(cid:60)re re(cid:55)(cid:60)irements of the (cid:3)S(cid:30) (cid:16)istin(cid:43) R(cid:60)les(cid:84) the Corporations Act 2001 and the procedures set down by the Board of Sipa including review and verification of the acc(cid:60)rac(cid:64) of all p(cid:60)(cid:35)lic releases to the (cid:3)S(cid:30) of material consequence, prior to release to the market; – Prevent selective or inadvertent disclosure and: – (cid:9)sta(cid:35)lish (cid:43)(cid:60)idelines for the review of all p(cid:60)(cid:35)lic relations materials including briefings and communications in general. A copy of the Policy can be found at the website www.sipa.com.au. 4.2 Diversity (cid:26)he (cid:5)oard is commi(cid:295)ed to wor(cid:48)place diversit(cid:64)(cid:84) with a partic(cid:60)lar foc(cid:60)s on s(cid:60)pportin(cid:43) the representation of women at the senior level of the Company and on the (cid:5)oard(cid:84) as evidenced (cid:35)(cid:64) the composition of the (cid:5)oard(cid:84) the e(cid:63)ec(cid:60)tive team and sta(cid:248)(cid:87) (cid:8)espite s(cid:60)ch clear commitment, the Board does not currently have a policy or measurable targets to document that commitment, as the size of Company does not warrant such. The Company (cid:35)elieves its practices are self evident with (cid:137)(cid:99)(cid:140)ths of the (cid:5)oard female(cid:84) incl(cid:60)din(cid:43) the (cid:17)ana(cid:43)in(cid:43) (cid:8)irector(cid:84) as well as (cid:137)(cid:99)(cid:138)rds of the e(cid:63)ec(cid:60)tives(cid:87) (cid:26)he overall commitment is demonstrated below: (cid:9)mplo(cid:64)ees (cid:9)(cid:63)ec(cid:60)tives (cid:108)incl(cid:60)din(cid:43) (cid:17)(cid:8)(cid:109) (cid:8)irectors Total 11 3 5 % of Women 64% 67% 40% 4.3 Code of Conduct The Company has developed a Code of Conduct which applies to all directors, employees and consultants. In s(cid:60)mmar(cid:64)(cid:84) the code re(cid:55)(cid:60)ires that at all times all compan(cid:64) personnel act with the (cid:60)tmost inte(cid:43)rit(cid:64)(cid:84) o(cid:35)(cid:47)ectivit(cid:64) and in compliance with the le(cid:295)er and the spirit of the law and company policies. A copy of the Code can be found at www.sipa.com.au. 20 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information 4.4 Communication with Shareholders Sipa has established a structured investor engagement pro(cid:43)ramme to develop and maintain e(cid:248)ective two(cid:102)wa(cid:64) comm(cid:60)nication (cid:35)etween the (cid:6)ompan(cid:64) and the mar(cid:48)et(cid:87) (cid:26)he (cid:6)ompan(cid:64) is commi(cid:295)ed to providin(cid:43) the mar(cid:48)et with clear(cid:84) meanin(cid:43)f(cid:60)l and timel(cid:64) information on the activities and (cid:41)nancial performance of the (cid:6)ompan(cid:64)(cid:84) to enhance the market’s understanding and trust in the Company. (cid:26)he processes to facilitate shareholder comm(cid:60)nication are contained within the Shareholder (cid:6)omm(cid:60)nication (cid:22)olic(cid:64) found at www.sipa.com.au. 4.5 Risk Management Policy (cid:26)he identi(cid:41)cation and e(cid:248)ective mana(cid:43)ement of material (cid:35)(cid:60)siness ris(cid:48)s is viewed as an essential part of the (cid:6)ompan(cid:64)’s approach to creatin(cid:43) lon(cid:43)(cid:102)term shareholder val(cid:60)e(cid:87) (cid:17)ana(cid:43)ement(cid:84) thro(cid:60)(cid:43)h the (cid:17)ana(cid:43)in(cid:43) (cid:8)irector(cid:84) is responsi(cid:35)le for desi(cid:43)nin(cid:43)(cid:84) implementin(cid:43) and reportin(cid:43) on the adequacy of the Company’s risk management and internal control system. Sipa does not have an internal a(cid:60)dit f(cid:60)nction (cid:35)(cid:60)t instead relies on the processes set o(cid:60)t in the Risk Management Policy, a copy of which can be found at www.sipa.com.au. (cid:26)he (cid:6)ompan(cid:64) carries o(cid:60)t ris(cid:48) speci(cid:41)c mana(cid:43)ement activities in fo(cid:60)r speci(cid:41)c areas(cid:86) strate(cid:43)ic ris(cid:48)(cid:84) operational ris(cid:48)(cid:84) (cid:41)nancial reportin(cid:43) ris(cid:48) and compliance ris(cid:48)(cid:87) (cid:26)hese risks are reviewed at least annually by the board as part of annual strategy session. Management reports quarterly to the Board on the Company’s key risks and the extent to which it believes these risks are being managed. The Board is responsible for determining the company’s ris(cid:48) tolerance(cid:84) identif(cid:64)in(cid:43) areas of si(cid:43)ni(cid:41)cant (cid:35)(cid:60)siness ris(cid:48)s(cid:84) and ensuring that arrangements are in place to adequately mana(cid:43)e those ris(cid:48)s(cid:87) (cid:26)he (cid:5)oard(cid:84) in con(cid:47)(cid:60)nction with the (cid:3)(cid:60)dit (cid:123) Ris(cid:48) (cid:6)ommi(cid:295)ee(cid:84) is responsi(cid:35)le for satisf(cid:64)in(cid:43) itself annually that the system of risk management and internal controls is so(cid:60)nd and is operatin(cid:43) ade(cid:55)(cid:60)atel(cid:64)(cid:87) (cid:26)he ann(cid:60)al review was done in con(cid:47)(cid:60)nction with the approval of the ann(cid:60)al (cid:41)nancial report(cid:87) (cid:17)ana(cid:43)ement is responsi(cid:35)le for identif(cid:64)in(cid:43) speci(cid:41)c ris(cid:48)s and the implementation of miti(cid:43)atin(cid:43) controls over those ris(cid:48)s(cid:87) (cid:26)he (cid:17)ana(cid:43)in(cid:43) (cid:8)irector is responsi(cid:35)le to the board for ensuring that the risk management system is maintained in accordance with this polic(cid:64)(cid:87) In con(cid:47)(cid:60)nction with the (cid:17)ana(cid:43)in(cid:43) (cid:8)irector(cid:84) the (cid:6)ompan(cid:64) Secretar(cid:64) is responsi(cid:35)le for the implementation and contin(cid:60)o(cid:60)s program of risk assessment including those procedures necessary to provide assurance to the board that the ris(cid:48) mana(cid:43)ement and internal control s(cid:64)stem is operatin(cid:43) e(cid:248)ectivel(cid:64) to red(cid:60)ce (cid:41)nancial reportin(cid:43) ris(cid:48)s(cid:87) (cid:26)he (cid:5)oard also receives a wri(cid:295)en ass(cid:60)rance from the (cid:6)hief (cid:9)(cid:63)ec(cid:60)tive O(cid:259)cer and (cid:6)ompan(cid:64) Secretar(cid:64) that to the (cid:35)est of their (cid:48)nowled(cid:43)e and (cid:35)elief(cid:84) the declaration provided (cid:35)(cid:64) them in accordance with section (cid:137)(cid:142)(cid:140)(cid:3) of the (cid:6)orporations Act is founded on a sound system of risk management and internal control and that the s(cid:64)stem is operatin(cid:43) e(cid:248)ectivel(cid:64) in relation to (cid:41)nancial reportin(cid:43) ris(cid:48)s(cid:87) (cid:26)he (cid:5)oard notes that d(cid:60)e to its nat(cid:60)re(cid:84) internal control ass(cid:60)rance from the (cid:6)(cid:9)O and Company Secretary can only be reasonable rather than absolute. A copy of the policy can be found at www.sipa.com.au. 4.6 Share Trading Policy The Company has implemented a share trading policy to o(cid:60)tline permi(cid:295)ed tradin(cid:43) in (cid:6)ompan(cid:64) sec(cid:60)rities by directors, employees and consultants. The policy does not presentl(cid:64) impose restrictions on tradin(cid:43) in derivatives or on en(cid:43)a(cid:43)in(cid:43) in short(cid:102)term tradin(cid:43) and short(cid:102) sellin(cid:43)(cid:84) however all tradin(cid:43) in compan(cid:64) sec(cid:60)rities re(cid:55)(cid:60)ires pre-clearance which enables the Company to monitor this behaviour. A copy of the policy can be found at www.sipa.com.au. 5 Board remuneration and performance 5.1 Non-executive director compensation Fees and pa(cid:64)ments to non(cid:102)e(cid:63)ec(cid:60)tive directors re(cid:42)ect the demands which are made on(cid:84) and the responsi(cid:35)ilities of the directors(cid:87) (cid:18)on(cid:102)e(cid:63)ec(cid:60)tive directors’ fees and payments are determined within an aggregate directors’ fee pool limit, which is periodically recommended by the (cid:18)omination and (cid:6)ompensation (cid:6)ommi(cid:295)ee for approval by shareholders. The maximum currently stands at $300,000 as approved in November 2014. It is the discretion of the (cid:35)oard to distri(cid:35)(cid:60)te this pool amon(cid:43)st the non(cid:102)e(cid:63)ec(cid:60)tive directors (cid:35)ased on the responsi(cid:35)ilities ass(cid:60)med(cid:87) F(cid:60)rther details of the compensation of non(cid:102) e(cid:63)ec(cid:60)tive directors for the period endin(cid:43) (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140) is detailed in the Rem(cid:60)neration Report(cid:87) 5.2 Performance review (cid:8)(cid:60)rin(cid:43) the (cid:64)ear(cid:84) there was no speci(cid:41)c performance review conducted. Instead the Board considered its composition in relation to the s(cid:48)ills re(cid:55)(cid:60)ired to meet Sipa’s strate(cid:43)ic o(cid:35)(cid:47)ectives and s(cid:60)ccession plannin(cid:43) which resulted in the appointment of three new members who replaced three retirin(cid:43) directors(cid:87) S(cid:60)(cid:35)se(cid:55)(cid:60)ent to (cid:138)(cid:135) (cid:14)(cid:60)ne 2015, the Board has completed an internal review of its performance and its (cid:6)ommi(cid:295)ees thro(cid:60)(cid:43)h the (cid:60)se of con(cid:41)dential (cid:55)(cid:60)estionnaires(cid:87) (cid:26)hese (cid:55)(cid:60)estionnaires were subsequently discussed by the Board which res(cid:60)lted in a n(cid:60)m(cid:35)er of recommendations which will be progressively implemented. Annual Report 2015 21 Corporate Governance Statement Corporate Governance Statement contin(cid:60)ed Long Term Incentive Plan Followin(cid:43) a comprehensive review of rem(cid:60)neration practices d(cid:60)rin(cid:43) the (cid:64)ear(cid:84) the (cid:5)oard has introd(cid:60)ced a more str(cid:60)ct(cid:60)red approach to (cid:16)on(cid:43) (cid:26)erm Incentives (cid:108)(cid:16)(cid:26)I’s(cid:109) for (cid:9)(cid:63)ec(cid:60)tives(cid:87) (cid:12)istoricall(cid:64)(cid:84) lon(cid:43) term rem(cid:60)neration consisted of the iss(cid:60)ance of options a(cid:35)o(cid:60)t ever(cid:64) (cid:138) (cid:64)ears with performance criteria linked largely to share price and years of service(cid:87) (cid:26)he last option (cid:43)rant was in (cid:137)(cid:135)(cid:136)(cid:135) and e(cid:63)pired during the current year. Under the new framework, LTI (cid:43)rants will (cid:35)e made to e(cid:63)ec(cid:60)tives on an ann(cid:60)al (cid:35)asis to ali(cid:43)n with t(cid:64)pical mar(cid:48)et practice(cid:84) and to ali(cid:43)n e(cid:63)ec(cid:60)tives’ interests with those of shareholders and the (cid:43)eneration of long-term sustainable value. Consistent with previous polic(cid:64)(cid:84) there is no Short (cid:26)erm Incentive component within Sipa’s Rem(cid:60)neration str(cid:60)ct(cid:60)re(cid:87) (cid:26)he (cid:16)(cid:26)I (cid:43)rants will (cid:35)e delivered thro(cid:60)(cid:43)h participation in the Sipa (cid:9)mplo(cid:64)ee Share Option (cid:22)lan (cid:137)(cid:135)(cid:136)(cid:140)(cid:87) (cid:26)he val(cid:60)e of the LTI grants made under the plan will be made with reference to a set percentage of Base Salary with (cid:9)(cid:63)ec(cid:60)tives’ performance assessed a(cid:43)ainst pre(cid:102)determined performance hurdles. The performance hurdles are a com(cid:35)ination of mar(cid:48)et (cid:108)share price (cid:35)ased(cid:109) and non(cid:102) mar(cid:48)et (cid:108)internal(cid:109) h(cid:60)rdles to optimise share performance a(cid:43)ainst e(cid:63)ploration tar(cid:43)ets(cid:84) the ann(cid:60)al operatin(cid:43) (cid:35)(cid:60)d(cid:43)et(cid:84) s(cid:60)ccessf(cid:60)l comm(cid:60)nication with sta(cid:48)eholders(cid:84) improved access to capital markets, stock liquidity and register pro(cid:41)le(cid:87) (cid:26)he threshold levels are s(cid:60)ita(cid:35)l(cid:64) stretched to (cid:35)e consistent with the o(cid:35)(cid:47)ectives of the (cid:16)(cid:26)I plan(cid:87) The LTI as a percentage of Base Salary is 75% for the (cid:17)ana(cid:43)in(cid:43) (cid:8)irector and (cid:137)(cid:135)(cid:102)(cid:140)(cid:135)(cid:166) for other (cid:15)e(cid:64) (cid:17)ana(cid:43)ement Personnel. Performance hurdles are measured at the end of the (cid:41)nancial (cid:64)ear with vestin(cid:43) occ(cid:60)rrin(cid:43) at the end of 3 years and expiry of the grants at the end of 5 years. 5.3 Executive compensation (cid:26)he (cid:18)omination and (cid:6)ompensation (cid:6)ommi(cid:295)ee of the (cid:5)oard of (cid:8)irectors of the (cid:6)ompan(cid:64) is responsi(cid:35)le for determinin(cid:43) and reviewin(cid:43) compensation arran(cid:43)ements for the directors(cid:84) the mana(cid:43)in(cid:43) director (cid:108)(cid:6)(cid:9)O(cid:109) and the compan(cid:64) secretar(cid:64)(cid:87) (cid:26)he commi(cid:295)ee meets as and when re(cid:55)(cid:60)ired to review and ma(cid:48)e recommendations to the (cid:5)oard re(cid:43)ardin(cid:43) the compensation arran(cid:43)ements and performance eval(cid:60)ations for the (cid:17)ana(cid:43)in(cid:43) (cid:8)irector and other senior e(cid:63)ec(cid:60)tives(cid:87) (cid:26)hese eval(cid:60)ations ta(cid:48)e into acco(cid:60)nt speci(cid:41)c criteria o(cid:60)tlined in the position descriptions and meas(cid:60)rement of performance towards the (cid:6)ompan(cid:64)’s o(cid:35)(cid:47)ectives and the achievement of individ(cid:60)al performance o(cid:35)(cid:47)ectives(cid:87) (cid:22)erformance eval(cid:60)ations were (cid:60)nderta(cid:48)en d(cid:60)rin(cid:43) the period for the managing director and company secretary. Followin(cid:43) the (cid:137)(cid:135)(cid:136)(cid:140) review of c(cid:60)rrent rem(cid:60)neration practices(cid:84) the (cid:5)oard has (cid:41)nalised a new e(cid:63)ec(cid:60)tive rem(cid:60)neration str(cid:60)ct(cid:60)re to (cid:35)e e(cid:248)ective from (cid:136) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:140)(cid:87) Rem(cid:60)neration at Sipa sho(cid:60)ld(cid:86) – Align and contribute to delivering strategic projects on time and on budget; – Assist Sipa in attracting and retaining the right people to execute the business strategy; – Align the interests of executives with the interest of shareholders; – Be contingent on both individual and Company performance; and – Be simple and easy to administer. (cid:26)he two components of the new Rem(cid:60)neration (cid:22)olic(cid:64) are described as follows: Fixed Remuneration (cid:8)(cid:60)rin(cid:43) the (cid:64)ear ended (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140)(cid:84) (cid:35)enchmar(cid:48)in(cid:43) of the Fi(cid:63)ed Rem(cid:60)neration component of (cid:9)(cid:63)ec(cid:60)tive salaries was conducted against a custom peer group of similar si(cid:65)e (cid:108)(cid:35)(cid:64) mar(cid:48)et capitalisation(cid:109)(cid:84) and (cid:3)S(cid:30)(cid:102)listed mineral e(cid:63)ploration companies with overseas pro(cid:47)ects(cid:84) in order to ens(cid:60)re that the rem(cid:60)neration levels set meet the o(cid:35)(cid:47)ectives of ena(cid:35)lin(cid:43) the (cid:6)ompan(cid:64) to a(cid:295)ract and retain key talent and are aligned to broader market trends in the minerals ind(cid:60)str(cid:64)(cid:87) Fi(cid:63)ed Rem(cid:60)neration t(cid:64)picall(cid:64) includes base salary, (structured as a total employment cost package which may be delivered as a mix of cash and other (cid:35)ene(cid:41)ts at the (cid:9)(cid:63)ec(cid:60)tives’ discretion(cid:109)(cid:84) and s(cid:60)perann(cid:60)ation at the prescri(cid:35)ed le(cid:43)islative rates(cid:87) Fi(cid:63)ed Rem(cid:60)neration is to (cid:35)e reviewed ann(cid:60)all(cid:64) (cid:35)(cid:64) the (cid:17)ana(cid:43)in(cid:43) (cid:8)irector(cid:84) within parameters esta(cid:35)lished (cid:35)(cid:64) the (cid:5)oard(cid:84) or in the case of the (cid:17)ana(cid:43)in(cid:43) (cid:8)irector(cid:84) (cid:35)(cid:64) the (cid:5)oard (cid:35)ased on the recommendation of the (cid:18)omination and (cid:6)ompensation (cid:6)ommi(cid:295)ee(cid:87) 22 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information (cid:26)he plan r(cid:60)les do not provide for a(cid:60)tomatic vestin(cid:43) in the event of a chan(cid:43)e of control(cid:87) (cid:26)he (cid:35)oard ma(cid:64) in its discretion determine the manner in which the (cid:60)nvested incentives will (cid:35)e dealt with in the event of a chan(cid:43)e of control(cid:87) The performance hurdles are outlined below. 2015 Strategic objectives Performance measure (cid:22)erformance h(cid:60)rdle (cid:103) (cid:26)otal Shareholder Return (TSR) Comparison of TSR with a group of peer companies: (cid:5)elow (cid:140)(cid:135)th percentile (cid:103) (cid:135)(cid:166) vest (cid:5)etween (cid:140)(cid:135)th (cid:103) (cid:141)(cid:135)(cid:166) percentile (cid:103) (cid:136)(cid:140)(cid:166) vest (cid:3)(cid:35)ove (cid:141)(cid:135)th percentile (cid:103) entire (cid:138)(cid:140)(cid:166) vest (cid:22)erformance h(cid:60)rdle (cid:103) (cid:9)(cid:63)ploration (cid:8)iscover(cid:64) Substantially advance one or more company exploration projects via ore grade intersections of mineable width in a geologically compelling environment thus leading towards an initial mineral resource. (cid:22)erformance h(cid:60)rdle (cid:103) (cid:6)apital Management and Financial Strength (cid:22)erformance h(cid:60)rdle (cid:103) (cid:6)orporate and Social Responsibility, incorporating metrics under environmental, safety, and community Company adequately funded to achieve exploration objectives Successful management of all stakeholders including government, community, and shareholders to achieve targeted outcomes whilst maintaining a safe working environment. (cid:22)erformance h(cid:60)rdle (cid:103) (cid:9)nhanced Company profile Successful management of public relations to achieve targeted outcomes with respect to liquidity and register profile F(cid:60)rther information on directors’ and e(cid:63)ec(cid:60)tives’ rem(cid:60)neration is set o(cid:60)t in the directors’ report(cid:87) (cid:26)here are no depart(cid:60)res from the (cid:6)orporate Governance (cid:22)rinciples and Recommendations (cid:138)rd (cid:9)dition(cid:92) other than noted above. Weight 35% 35% 10% 10% 10% Annual Report 2015 23 Financial Report Financial Report Your Directors submit their report on the consolidated entity (referred to hereafter as the Group) consisting of Sipa Resources Limited and the entities it controlled at the end of, or during, the year ended 30 June 2015. Contents 25 Directors’ Report 37 Auditor’s Independence Declaration Contents 38 Consolidated Statement of Comprehensive Income 39 Consolidated Statement of Financial Position 18. Directors’ Report 40 Consolidated Statement of Cash Flows 33. Auditor’s Independence Declaration 41 Consolidated Statement of Changes in Equity 34. Consolidated Statement of Comprehensive Income 42 Notes to the Financial Statements 35. Consolidated Statement of Financial Position 73 Directors’ Declaration 36. Consolidated Statement of Changes in Equity 74 38. Consolidated Statement of Cash Flows Independent Auditor’s Report 76 Additional Statutory Information 39. Notes to the Financial Statements 79 Corporate Directory 99. Directors’ Declaration 100. Independent Auditor’s Report 102. Corporate Governance Statement 110. Additional Stock Exchange Information 24 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information Directors’ Report for the year ended 30 June 2015 (cid:31)o(cid:60)r (cid:8)irectors s(cid:60)(cid:35)mit their report on the consolidated entit(cid:64) (cid:108)referred to herea(cid:273)er as the Gro(cid:60)p(cid:109) consistin(cid:43) of Sipa Reso(cid:60)rces (cid:16)imited and the entities it controlled at the end of(cid:84) or d(cid:60)rin(cid:43)(cid:84) the (cid:64)ear ended (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140)(cid:87) Directors (cid:26)he names and details of the (cid:6)ompan(cid:64)’s directors in o(cid:259)ce d(cid:60)rin(cid:43) the (cid:41)nancial (cid:64)ear and (cid:60)p to the date of this report are as follows(cid:87) (cid:8)irectors were in o(cid:259)ce for this entire period (cid:60)nless otherwise stated(cid:87) Names(cid:84) (cid:23)ua(cid:163)i(cid:41)cations(cid:84) (cid:9)(cid:63)perience and (cid:25)pecia(cid:163) Responsi(cid:35)i(cid:163)ities Craig Ian McGown, BComm, FCA, ASIA Non-Executive Director (Chairman since 11 March 2015) (cid:17)r (cid:17)cGown is an investment (cid:35)an(cid:48)er with over (cid:138)(cid:140) (cid:64)ears of e(cid:63)perience cons(cid:60)ltin(cid:43) to companies in (cid:3)(cid:60)stralia and internationall(cid:64)(cid:84) partic(cid:60)larl(cid:64) in the nat(cid:60)ral reso(cid:60)rces sector(cid:87) (cid:12)e holds a (cid:5)achelor of (cid:6)ommerce de(cid:43)ree(cid:84) is a Fellow of the Instit(cid:60)te of (cid:6)hartered (cid:3)cco(cid:60)ntants and an (cid:3)(cid:259)liate of the Financial Services Instit(cid:60)te of (cid:3)(cid:60)stralasia(cid:87) (cid:17)r (cid:17)cGown is an e(cid:63)ec(cid:60)tive director of the corporate advisor(cid:64) (cid:35)(cid:60)siness (cid:18)ew (cid:12)olland (cid:6)apital (cid:22)t(cid:64) (cid:16)td (cid:108)(cid:18)ew (cid:12)olland(cid:109) and prior to that appointment was the chairman of (cid:8)(cid:14) (cid:6)armichael (cid:22)t(cid:64) (cid:16)imited(cid:87) (cid:17)r (cid:17)cGown has had e(cid:63)tensive e(cid:63)perience in the corporate (cid:41)nance sector(cid:84) incl(cid:60)din(cid:43) mer(cid:43)ers and ac(cid:55)(cid:60)isitions(cid:84) capital raisin(cid:43)s in (cid:35)oth domestic and international (cid:41)nancial mar(cid:48)ets(cid:84) asset ac(cid:55)(cid:60)isitions and asset disposals(cid:84) initial p(cid:60)(cid:35)lic o(cid:248)erin(cid:43)s and corporate restr(cid:60)ct(cid:60)rin(cid:43)s(cid:87) (cid:17)r (cid:17)cGown is also the (cid:18)on(cid:102)(cid:9)(cid:63)ec(cid:60)tive (cid:6)hairman for (cid:22)ioneer Reso(cid:60)rces (cid:16)imited (cid:108)(cid:136)(cid:138) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:135)(cid:165) (cid:102) present(cid:109) and in the past three (cid:64)ears has held directorships in (cid:5)ass (cid:17)etals (cid:16)td (cid:108)(cid:141) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:135)(cid:139) to (cid:139) Octo(cid:35)er (cid:137)(cid:135)(cid:136)(cid:139)(cid:109)(cid:84) and (cid:22)eel (cid:17)inin(cid:43) (cid:16)imited (cid:108)(cid:136) Fe(cid:35)r(cid:60)ar(cid:64) (cid:137)(cid:135)(cid:135)(cid:165) to (cid:142) (cid:3)pril (cid:137)(cid:135)(cid:136)(cid:138)(cid:109)(cid:87) (cid:26)hro(cid:60)(cid:43)h his role as e(cid:63)ec(cid:60)tive director of (cid:18)ew (cid:12)olland(cid:84) (cid:17)r (cid:17)cGown has (cid:35)een cons(cid:60)ltin(cid:43) to the (cid:6)ompan(cid:64) since Octo(cid:35)er (cid:137)(cid:135)(cid:136)(cid:139)(cid:87) In accordance with the (cid:6)ompan(cid:64)’s polic(cid:64) on assessin(cid:43) the independence of directors(cid:84) (cid:17)r (cid:17)cGown is not considered to (cid:35)e an independent director (cid:35)(cid:64) virt(cid:60)e of this cons(cid:60)ltin(cid:43) arran(cid:43)ement(cid:87) (cid:3)s a res(cid:60)lt(cid:84) the (cid:5)oard has appointed (cid:17)r Goodin(cid:43) as Senior Independent (cid:8)irector to f(cid:60)l(cid:41)l the role of (cid:6)hair(cid:84) in sit(cid:60)ations where (cid:17)r (cid:17)cGown ma(cid:64) (cid:35)e con(cid:42)icted(cid:87) (cid:17)r (cid:17)cGown is a mem(cid:35)er of the (cid:18)omination and (cid:6)ompensation (cid:6)ommi(cid:295)ee since his appointment on (cid:136)(cid:136) (cid:17)arch (cid:137)(cid:135)(cid:136)(cid:140)(cid:87) Lynda Margaret Burnett, BSc (Hons) GAICD, MAusIMM, MSEG (Managing Director since 24 July 2014, Exploration Manager 5 June 2014 to 24 July 2014) (cid:17)rs (cid:5)(cid:60)rne(cid:295)(cid:84) formerl(cid:64) (cid:17)rs (cid:8)ale(cid:64)(cid:84) is a (cid:43)eolo(cid:43)ist with over (cid:137)(cid:140) (cid:64)ears e(cid:63)perience in the mineral e(cid:63)ploration ind(cid:60)str(cid:64)(cid:84) incl(cid:60)din(cid:43) most recentl(cid:64) as (cid:8)irector (cid:102) (cid:9)(cid:63)ploration (cid:3)(cid:60)stralia for (cid:18)ewmont (cid:3)sia (cid:22)aci(cid:41)c(cid:87) (cid:8)(cid:60)rin(cid:43) her nine (cid:64)ear ten(cid:60)re with (cid:18)ewmont(cid:84) (cid:16)(cid:64)nda was responsi(cid:35)le for the strate(cid:43)ic plannin(cid:43) mana(cid:43)ement and oversi(cid:43)ht of all (cid:18)ewmont’s (cid:43)enerative e(cid:63)ploration pro(cid:47)ects(cid:84) as well as (cid:35)(cid:60)siness development(cid:84) in the (cid:3)sia (cid:22)aci(cid:41)c re(cid:43)ion(cid:87) (cid:22)rior to her roles at (cid:18)ewmont(cid:84) (cid:16)(cid:64)nda has wor(cid:48)ed for a n(cid:60)m(cid:35)er of minin(cid:43) and e(cid:63)ploration companies incl(cid:60)din(cid:43) e(cid:63)ec(cid:60)tive director of S(cid:60)mmit Reso(cid:60)rces (cid:16)td(cid:84) and for (cid:18)ewmont (cid:22)t(cid:64) (cid:16)td at the (cid:26)elfer Gold (cid:17)ine and (cid:29)orsle(cid:64) (cid:3)l(cid:60)mina at the (cid:5)oddin(cid:43)ton (cid:43)old mine at its commencement(cid:87) (cid:8)(cid:60)rin(cid:43) the past three (cid:64)ears (cid:17)rs (cid:5)(cid:60)rne(cid:295) has not (cid:35)een a director of an(cid:64) other listed compan(cid:64)(cid:87) Dalton Leslie Gooding, B.BUS, FCA – Independent Non-Executive Director (Appointed 1 May 2003) (cid:17)r Goodin(cid:43) is a chartered acco(cid:60)ntant with over (cid:138)(cid:135) (cid:64)ears e(cid:63)perience within the corporate and (cid:35)(cid:60)siness sector incl(cid:60)din(cid:43) (cid:136)(cid:139) (cid:64)ears as a partner of (cid:9)rnst (cid:123) (cid:31)o(cid:60)n(cid:43) (cid:35)efore startin(cid:43) his own practice of Goodin(cid:43) (cid:22)artners (cid:108)formerl(cid:64) Goodin(cid:43) (cid:22)ervan(cid:109) in (cid:136)(cid:142)(cid:142)(cid:165)(cid:87) (cid:17)r Goodin(cid:43) is the (cid:6)hairman of the (cid:3)(cid:60)dit (cid:123) Ris(cid:48) (cid:6)ommi(cid:295)ee and serves as the Senior Independent (cid:8)irector(cid:87) (cid:8)(cid:60)rin(cid:43) the past three (cid:64)ears (cid:17)r Goodin(cid:43) has also served as a director of the followin(cid:43) other listed companies(cid:86) – (cid:26)FS (cid:6)orporation (cid:16)td (cid:108)director since Octo(cid:35)er (cid:137)(cid:135)(cid:136)(cid:139)(cid:84) chairman since (cid:18)ovem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:139)(cid:109) – (cid:3)vita (cid:17)edical (cid:16)imited (cid:108)director since (cid:18)ovem(cid:35)er (cid:137)(cid:135)(cid:135)(cid:137) (cid:102) (cid:136) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:139)(cid:109) – (cid:15)atana (cid:6)apital (cid:16)imited (cid:108)director since (cid:18)ovem(cid:35)er (cid:137)(cid:135)(cid:135)(cid:140)(cid:109) – (cid:5)riert(cid:64) (cid:16)imited (cid:108)director since Octo(cid:35)er (cid:137)(cid:135)(cid:135)(cid:141)(cid:109) Karen Lesley Field, B Ec, FAICD – Independent Non-Executive Director (Appointed 16 September 2004) (cid:17)rs Field has over three decades e(cid:63)perience in the minin(cid:43) ind(cid:60)str(cid:64) and has held e(cid:63)ec(cid:60)tive roles in a variet(cid:64) of ind(cid:60)str(cid:64) sectors in (cid:3)(cid:60)stralia and So(cid:60)th (cid:3)merica(cid:87) She has a stron(cid:43) (cid:35)ac(cid:48)(cid:43)ro(cid:60)nd in strate(cid:43)(cid:64)(cid:84) h(cid:60)man reso(cid:60)rces and pro(cid:47)ect mana(cid:43)ement(cid:87) (cid:17)rs Field is a mem(cid:35)er of the (cid:18)omination and (cid:6)ompensation (cid:6)ommi(cid:295)ee (cid:108)(cid:6)hair since (cid:136)(cid:136) (cid:17)arch (cid:137)(cid:135)(cid:136)(cid:140)(cid:109)(cid:87) (cid:8)(cid:60)rin(cid:43) the past three (cid:64)ears (cid:17)rs Field has also served as a director of the followin(cid:43) other listed companies(cid:86) – (cid:3)(cid:60)ri(cid:65)on (cid:12)oldin(cid:43)s (cid:16)imited (cid:108)director from (cid:136)(cid:142) (cid:3)pril (cid:137)(cid:135)(cid:136)(cid:137)(cid:109) – (cid:17)inin(cid:43) and (cid:6)ivil (cid:3)(cid:60)stralia (cid:16)imited (cid:108)director from (cid:136)(cid:136) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:136) (cid:102) (cid:138)(cid:135) (cid:3)pril (cid:137)(cid:135)(cid:136)(cid:137)(cid:109) Annual Report 2015 25 Financial Report Directors’ Report continued Paul Kiley, B Ec. CPA – Independent Non-Executive Director (Appointed 23 September 2014) (cid:17)r (cid:15)ile(cid:64) has over three decade of e(cid:63)perience in the minin(cid:43)(cid:84) oil and (cid:43)as ind(cid:60)stries(cid:84) most recentl(cid:64) (cid:18)ormand(cid:64)(cid:99)(cid:18)ewmont(cid:84) the last si(cid:63) (cid:64)ears of which was as the (cid:8)irector for (cid:6)orporate (cid:8)evelopment for (cid:18)ewmont’s (cid:3)sia (cid:22)aci(cid:41)c re(cid:43)ion(cid:87) (cid:27)pon leavin(cid:43) (cid:18)ewmont(cid:84) (cid:17)r (cid:15)ile(cid:64) esta(cid:35)lished a cons(cid:60)ltin(cid:43) (cid:35)(cid:60)siness which has principall(cid:64) (cid:35)een involved in mana(cid:43)in(cid:43) commercial infrastr(cid:60)ct(cid:60)re aspects of pro(cid:47)ects thro(cid:60)(cid:43)h the prefeasi(cid:35)ilit(cid:64) and feasi(cid:35)ilit(cid:64) phases(cid:87) (cid:17)r (cid:15)ile(cid:64) is a mem(cid:35)er of the (cid:3)(cid:60)dit (cid:123) Ris(cid:48) (cid:6)ommi(cid:295)ee since his appointment(cid:87) (cid:8)(cid:60)rin(cid:43) the past three (cid:64)ears (cid:17)r (cid:15)ile(cid:64) has not (cid:35)een a director of an(cid:64) other listed companies(cid:87) Peter Ian Blair Pearce, ACSM F AusIMM – Independent Non-Executive Director (Chairman until retirement on 11 March 2015) (cid:17)r (cid:22)earce is a minin(cid:43) en(cid:43)ineer with some (cid:138)(cid:140) (cid:64)ears of e(cid:63)perience in (cid:43)old and (cid:35)ase metals pro(cid:47)ect eval(cid:60)ation(cid:84) development and mana(cid:43)ement(cid:87) In addition to (cid:6)hairman of the (cid:5)oard(cid:84) (cid:17)r (cid:22)earce was (cid:6)hairman of the (cid:18)omination and (cid:6)ompensation (cid:6)ommi(cid:295)ee (cid:60)ntil his retirement on (cid:136)(cid:136) (cid:17)arch (cid:137)(cid:135)(cid:136)(cid:140)(cid:87) (cid:8)(cid:60)rin(cid:43) the past three (cid:64)ears (cid:17)r (cid:22)earce has not (cid:35)een a director of an(cid:64) other listed compan(cid:64)(cid:87) Michael Glen Doepel, MSc DIC M AusIMM – Non-Executive Director (Appointed 24 July 2015, Resigned 12 September 2015), Managing Director, Executive Director (Retired from position 24 July 2015) (cid:17)r (cid:8)oepel is a (cid:43)eolo(cid:43)ist with over thirt(cid:64) (cid:64)ears involvement in mineral e(cid:63)ploration(cid:87) (cid:17)r (cid:8)oepel was a mem(cid:35)er of the (cid:6)ontin(cid:60)o(cid:60)s (cid:8)isclos(cid:60)re (cid:6)ommi(cid:295)ee(cid:87) (cid:17)r (cid:8)oepel retired from the position of (cid:17)ana(cid:43)in(cid:43) (cid:8)irector on (cid:137)(cid:139) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:139)(cid:87) On that same date (cid:17)r (cid:8)oepel was appointed a (cid:18)on(cid:102)(cid:9)(cid:63)ec(cid:60)tive (cid:8)irector of the (cid:6)ompan(cid:64)(cid:87) On (cid:136)(cid:137) Septem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:139)(cid:84) (cid:17)r (cid:8)oepel resi(cid:43)ned from the position of (cid:18)on(cid:102)(cid:9)(cid:63)ec(cid:60)tive (cid:8)irector(cid:87) (cid:8)(cid:60)rin(cid:43) the past three (cid:64)ears (cid:17)r (cid:8)oepel has not (cid:35)een a director of an(cid:64) other listed compan(cid:64)(cid:87) David John Williams, LL.B, FAICD – Independent Non-Executive Director (Resigned on 23 September 2014) (cid:17)r (cid:29)illiams is a commercial law(cid:64)er with (cid:138)(cid:135) (cid:64)ears e(cid:63)perience advisin(cid:43) in reso(cid:60)rces(cid:84) corporate and (cid:35)(cid:60)siness ma(cid:295)ers(cid:87) (cid:12)e is the commercial co(cid:60)nsel of the (cid:29)est (cid:22)erth law practice of (cid:29)illiams (cid:123) (cid:12)(cid:60)(cid:43)hes (cid:22)t(cid:64) (cid:16)td(cid:87) (cid:17)r (cid:29)illiams was a mem(cid:35)er of the (cid:3)(cid:60)dit (cid:6)ommi(cid:295)ee (cid:60)ntil his resi(cid:43)nation on (cid:137)(cid:138) Septem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:139)(cid:87) (cid:8)(cid:60)rin(cid:43) the past three (cid:64)ears (cid:17)r (cid:29)illiams has not served as a director for an(cid:64) other listed companies(cid:87) Company (cid:25)ecretary (cid:26)he compan(cid:64) secretar(cid:64) is (cid:17)s (cid:26)ara Ro(cid:35)son(cid:84) (cid:5)(cid:87)(cid:3)(cid:87) (cid:3)cco(cid:60)ntin(cid:43)(cid:87) (cid:17)s Ro(cid:35)son was appointed compan(cid:64) secretar(cid:64) on (cid:165) (cid:3)pril (cid:137)(cid:135)(cid:135)(cid:139)(cid:87) (cid:5)efore (cid:47)oinin(cid:43) Sipa Reso(cid:60)rces (cid:16)imited(cid:84) she served as cons(cid:60)ltant to the (cid:6)ompan(cid:64)(cid:87) She has held a similar role with other listed entities since (cid:136)(cid:142)(cid:142)(cid:141)(cid:84) incl(cid:60)din(cid:43) (cid:3)nvil (cid:17)inin(cid:43) (cid:16)imited and (cid:5)roc(cid:48)man Reso(cid:60)rces (cid:16)imited(cid:87) (cid:22)rior to that (cid:17)s Ro(cid:35)son was a senior a(cid:60)dit mana(cid:43)er with a ma(cid:47)or acco(cid:60)ntin(cid:43) practice(cid:87) (cid:13)nterests in t(cid:44)e (cid:25)(cid:44)ares and (cid:19)ptions of t(cid:44)e Company (cid:3)s at the date of this report(cid:84) the interests of the directors in the shares and options of Sipa Reso(cid:60)rces (cid:16)imited were(cid:86) (cid:10)u(cid:163)(cid:163)y (cid:22)aid (cid:19)rdinary (cid:25)(cid:44)ares (cid:25)(cid:44)are (cid:19)ptions (cid:136)(cid:84)(cid:135)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) – (cid:136)(cid:84)(cid:135)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:138)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:138)(cid:142)(cid:164)(cid:84)(cid:164)(cid:137)(cid:136) (cid:164)(cid:139)(cid:84)(cid:164)(cid:141)(cid:138) (cid:136)(cid:84)(cid:135)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:141)(cid:140)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:136)(cid:84)(cid:135)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) – Directors (cid:6) (cid:17)cGown (cid:16) (cid:5)(cid:60)rne(cid:295) (cid:8) Goodin(cid:43) (cid:15) Field (cid:22) (cid:15)ile(cid:64) (cid:26)here were no options iss(cid:60)ed d(cid:60)rin(cid:43) the (cid:64)ear(cid:87) 26 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information (cid:22)rincipa(cid:163) Acti(cid:61)ities (cid:26)he principal activities of the companies in the Gro(cid:60)p d(cid:60)rin(cid:43) the period were the e(cid:63)ploration of mineral tenements in (cid:3)(cid:60)stralia and (cid:27)(cid:43)anda(cid:87) (cid:26)he Gro(cid:60)p disposed of its mineral tenements in (cid:3)(cid:60)stralia d(cid:60)rin(cid:43) the period and does not presentl(cid:64) hold tenements in (cid:3)(cid:60)stralia(cid:87) (cid:8)i(cid:61)idends (cid:18)o dividend has (cid:35)een paid or declared (cid:35)(cid:64) the Gro(cid:60)p in respect of the (cid:41)nancial (cid:64)ear ended (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140) (cid:108)(cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:139)(cid:86) nil(cid:109) and the directors do not recommend the pa(cid:64)ment of a dividend in respect of the (cid:41)nancial (cid:64)ear(cid:87) Re(cid:61)ie(cid:62) and Resu(cid:163)ts of (cid:19)perations (cid:26)he Gro(cid:60)p contin(cid:60)ed with e(cid:63)ploration activities on its mineral tenements d(cid:60)rin(cid:43) the period(cid:87) (cid:26)he Gro(cid:60)p disposed of its (cid:3)(cid:60)stralian tenements d(cid:60)rin(cid:43) the c(cid:60)rrent period(cid:84) to foc(cid:60)s on the e(cid:63)ploration of its (cid:27)(cid:43)andan (cid:35)ased tenements(cid:87) (cid:26)he consolidated entit(cid:64)’s loss a(cid:273)er ta(cid:63) for the (cid:41)nancial (cid:64)ear ended (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140) was (cid:130)(cid:138)(cid:84)(cid:140)(cid:137)(cid:164)(cid:84)(cid:165)(cid:135)(cid:141) (cid:108)(cid:137)(cid:135)(cid:136)(cid:139)(cid:86) (cid:16)oss (cid:130)(cid:139)(cid:84)(cid:140)(cid:135)(cid:139)(cid:84)(cid:165)(cid:138)(cid:135)(cid:109)(cid:87) Continuing (cid:19)perations Reven(cid:60)e Other income Gain on sale of (cid:26)had(cid:60)na pro(cid:47)ect (cid:16)oss on disposal of propert(cid:64)(cid:84) plant and e(cid:55)(cid:60)ipment (cid:9)(cid:63)ploration e(cid:63)pendit(cid:60)re (cid:3)dministrative e(cid:63)penses Impairment loss on availa(cid:35)le for sale assets Share of net loss of (cid:47)ointl(cid:64) controlled entit(cid:64) Net (cid:163)oss for t(cid:44)e year Consolidated 2015 $ 2014 $ (cid:140)(cid:165)(cid:84)(cid:140)(cid:141)(cid:135) (cid:136)(cid:137)(cid:135)(cid:84)(cid:165)(cid:137)(cid:142) (cid:137)(cid:135)(cid:136)(cid:84)(cid:141)(cid:164)(cid:137) (cid:165)(cid:84)(cid:136)(cid:135)(cid:141) (cid:137)(cid:84)(cid:137)(cid:137)(cid:136)(cid:84)(cid:164)(cid:139)(cid:137) (cid:108)(cid:137)(cid:142)(cid:84)(cid:135)(cid:140)(cid:138)(cid:109) – – (cid:108)(cid:138)(cid:84)(cid:138)(cid:164)(cid:138)(cid:84)(cid:136)(cid:135)(cid:141)(cid:109) (cid:108)(cid:136)(cid:84)(cid:142)(cid:138)(cid:141)(cid:84)(cid:140)(cid:137)(cid:140)(cid:109) (cid:108)(cid:136)(cid:84)(cid:164)(cid:165)(cid:165)(cid:84)(cid:141)(cid:135)(cid:136)(cid:109) (cid:108)(cid:136)(cid:84)(cid:164)(cid:164)(cid:137)(cid:84)(cid:140)(cid:135)(cid:135)(cid:109) (cid:108)(cid:137)(cid:84)(cid:165)(cid:135)(cid:135)(cid:109) – (cid:108)(cid:142)(cid:137)(cid:140)(cid:84)(cid:136)(cid:137)(cid:135)(cid:109) (cid:108)(cid:136)(cid:84)(cid:135)(cid:138)(cid:138)(cid:84)(cid:141)(cid:139)(cid:136)(cid:109) (3,526,807) (4,504,830) (cid:3)t (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140) the Gro(cid:60)p’s cash and cash e(cid:55)(cid:60)ivalents (cid:35)alance was (cid:130)(cid:164)(cid:84)(cid:137)(cid:138)(cid:138)(cid:84)(cid:138)(cid:138)(cid:164) and there was no de(cid:35)t(cid:87) (cid:19)perating and (cid:10)inancia(cid:163) Re(cid:61)ie(cid:62) (cid:8)(cid:60)rin(cid:43) the period(cid:84) the Gro(cid:60)p increased e(cid:63)ploration e(cid:63)pendit(cid:60)re (cid:35)(cid:64) (cid:130)(cid:136)(cid:87)(cid:139)m as R(cid:3)(cid:5) and diamond drillin(cid:43) was cond(cid:60)cted on the (cid:6)ompan(cid:64)’s (cid:15)it(cid:43)(cid:60)m (cid:22)ader (cid:35)ase metals pro(cid:47)ect for the (cid:41)rst time(cid:87) (cid:26)he increase in e(cid:63)ploration e(cid:63)pendit(cid:60)re was o(cid:248)set (cid:35)(cid:64) the (cid:43)ain on sale of the (cid:26)had(cid:60)na pro(cid:47)ect(cid:87) (cid:8)(cid:60)rin(cid:43) the (cid:41)nancial period(cid:84) the Gro(cid:60)p completed the sale of the (cid:26)had(cid:60)na pro(cid:47)ect to Sand(cid:41)re Reso(cid:60)rces (cid:16)td (cid:108)Sand(cid:41)re(cid:109) for (cid:130)(cid:137) million worth of Sand(cid:41)re shares and a (cid:136)(cid:166) (cid:18)et Smelter Ro(cid:64)alt(cid:64)(cid:87) (cid:26)he total income realised from the transaction was (cid:130)(cid:137)(cid:87)(cid:137)(cid:137) million which incl(cid:60)ded the (cid:43)ain on sale of the Sand(cid:41)re shares and a pro(cid:102)rata entitlement of rents and rates previo(cid:60)sl(cid:64) paid (cid:35)(cid:64) the (cid:6)ompan(cid:64)(cid:87) In addition there was a (cid:130)(cid:136)(cid:164)(cid:165)(cid:48) (cid:43)ain on e(cid:63)tin(cid:43)(cid:60)ishment of the retirement provision which provided a positive contri(cid:35)(cid:60)tion to the c(cid:60)rrent (cid:64)ear loss(cid:87) (cid:25)igni(cid:41)cant C(cid:44)anges in (cid:25)tate of A(cid:248)airs (cid:8)(cid:60)rin(cid:43) the (cid:41)nancial (cid:64)ear there was no si(cid:43)ni(cid:41)cant chan(cid:43)e in the state of a(cid:248)airs of the consolidated entit(cid:64) other than as follows(cid:86) In (cid:14)an(cid:60)ar(cid:64) (cid:137)(cid:135)(cid:136)(cid:140)(cid:84) a wholl(cid:64) owned s(cid:60)(cid:35)sidiar(cid:64) of Sipa completed the ac(cid:55)(cid:60)isition of the remainin(cid:43) (cid:137)(cid:135)(cid:166) of shares in SiGe (cid:9)ast (cid:3)frica (cid:22)t(cid:64) (cid:16)td(cid:84) from Geocr(cid:60)st (cid:22)t(cid:64) (cid:16)td to (cid:35)ecome the (cid:136)(cid:135)(cid:135)(cid:166) holder of the (cid:15)it(cid:43)(cid:60)m(cid:102)(cid:22)ader (cid:35)ase and precio(cid:60)s metals pro(cid:47)ect in (cid:27)(cid:43)anda(cid:84) (cid:9)ast (cid:3)frica in e(cid:63)chan(cid:43)e for ordinar(cid:64) f(cid:60)ll(cid:64) paid Sipa shares to the val(cid:60)e of (cid:3)(cid:130)(cid:139)(cid:142)(cid:142)(cid:48)(cid:87) (cid:26)he n(cid:60)m(cid:35)er of Sipa shares iss(cid:60)ed was determined (cid:35)(cid:64) reference to the vol(cid:60)me wei(cid:43)hted avera(cid:43)e price of Sipa shares in the (cid:138)(cid:135) tradin(cid:43) da(cid:64)s immediatel(cid:64) prior to a(cid:43)reement(cid:87) (cid:5)ased on vol(cid:60)me wei(cid:43)hted avera(cid:43)e price(cid:84) (cid:136)(cid:137)(cid:84)(cid:165)(cid:135)(cid:138)(cid:84)(cid:139)(cid:139)(cid:141) f(cid:60)ll(cid:64) paid shares were iss(cid:60)ed on (cid:136)(cid:140) (cid:14)an(cid:60)ar(cid:64) (cid:137)(cid:135)(cid:136)(cid:140)(cid:87) Geocr(cid:60)st has a(cid:43)reed not to dispose of an(cid:64) Sipa shares iss(cid:60)ed p(cid:60)rs(cid:60)ant to the transaction for a period of (cid:136)(cid:137) months from the date the(cid:64) were iss(cid:60)ed(cid:87) In Fe(cid:35)r(cid:60)ar(cid:64) (cid:137)(cid:135)(cid:136)(cid:140)(cid:84) the Gro(cid:60)p completed the sale of the (cid:26)had(cid:60)na pro(cid:47)ect to Sand(cid:41)re Reso(cid:60)rces (cid:16)td (cid:108)Sand(cid:41)re(cid:109) for (cid:130)(cid:137) million worth of Sand(cid:41)re shares and a (cid:136)(cid:166) (cid:18)et Smelter Ro(cid:64)alt(cid:64)(cid:87) (cid:27)nder the terms of the (cid:3)(cid:43)reement(cid:84) Sand(cid:41)re ac(cid:55)(cid:60)ired the entire le(cid:43)al and (cid:35)ene(cid:41)cial interest in (cid:9)(cid:140)(cid:137)(cid:99)(cid:136)(cid:164)(cid:141)(cid:138)(cid:84) (cid:9)(cid:140)(cid:137)(cid:99)(cid:136)(cid:164)(cid:141)(cid:139)(cid:84) (cid:9)(cid:140)(cid:137)(cid:99)(cid:136)(cid:165)(cid:140)(cid:165)(cid:84) (cid:9)(cid:140)(cid:137)(cid:99)(cid:137)(cid:138)(cid:140)(cid:164)(cid:84) (cid:9)(cid:140)(cid:137)(cid:99)(cid:137)(cid:138)(cid:140)(cid:141)(cid:84) and (cid:9)(cid:140)(cid:137)(cid:99)(cid:137)(cid:139)(cid:135)(cid:140) incl(cid:60)din(cid:43) the ri(cid:43)hts and (cid:35)ene(cid:41)ts which Sipa is entitled to (cid:60)nder herita(cid:43)e a(cid:43)reements and native title contracts(cid:84) and all minin(cid:43) information which is relevant to the (cid:26)enements(cid:87) Annual Report 2015 27 Financial Report Directors’ Report continued In (cid:17)a(cid:64) (cid:137)(cid:135)(cid:136)(cid:140)(cid:84) Sipa anno(cid:60)nced a placement to e(cid:63)empt investors and a Share (cid:22)(cid:60)rchase (cid:22)lan (cid:108)S(cid:22)(cid:22)(cid:109) for eli(cid:43)i(cid:35)le shareholders at a price of (cid:130)(cid:135)(cid:87)(cid:135)(cid:141)(cid:137)(cid:140) per share(cid:87) (cid:26)o(cid:43)ether the placement and S(cid:22)(cid:22) raised (cid:130)(cid:164)(cid:87)(cid:135)m (cid:35)efore costs and was comprised as follows(cid:86) (cid:22)lacement S(cid:22)(cid:22) (cid:22)lacement to (cid:8)irectors(cid:114) $’000 (cid:25)(cid:44)ares (cid:13)ssued (cid:164)(cid:164)(cid:141) (cid:142)(cid:84)(cid:137)(cid:135)(cid:140)(cid:84)(cid:137)(cid:142)(cid:136) (cid:140)(cid:84)(cid:137)(cid:139)(cid:141) (cid:141)(cid:137)(cid:84)(cid:138)(cid:164)(cid:142)(cid:84)(cid:137)(cid:138)(cid:142) (cid:136)(cid:138)(cid:139) (cid:136)(cid:84)(cid:165)(cid:140)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:164)(cid:84)(cid:135)(cid:139)(cid:165) (cid:165)(cid:138)(cid:84)(cid:139)(cid:137)(cid:139)(cid:84)(cid:140)(cid:138)(cid:135) (cid:114) (cid:26)he (cid:22)lacement to (cid:8)irectors re(cid:55)(cid:60)ired shareholder approval which was o(cid:35)tained (cid:137) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:140) and the shares were iss(cid:60)ed s(cid:60)(cid:35)se(cid:55)(cid:60)ent to the end of the period(cid:87) (cid:9)(cid:61)ents (cid:25)u(cid:35)se(cid:55)uent to Ba(cid:163)ance (cid:8)ate (cid:26)here has not (cid:35)een an(cid:64) ma(cid:295)er or circ(cid:60)mstance(cid:84) other than that referred to in the (cid:41)nancial statements or notes thereto(cid:84) that has arisen since the end of the (cid:41)nancial (cid:64)ear(cid:84) that has si(cid:43)ni(cid:41)cantl(cid:64) a(cid:248)ected(cid:84) or ma(cid:64) si(cid:43)ni(cid:41)cantl(cid:64) a(cid:248)ect(cid:84) the operations of the consolidated entit(cid:64)(cid:84) the res(cid:60)lts of those operations(cid:84) or the state of a(cid:248)airs of the consolidated entit(cid:64) in f(cid:60)t(cid:60)re (cid:41)nancial (cid:64)ears(cid:84) e(cid:63)cept for the followin(cid:43)(cid:86) Shareholder approval was o(cid:35)tained on (cid:137) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:140) for the (cid:22)lacement to (cid:8)irectors and (cid:136)(cid:84)(cid:165)(cid:140)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) Shares were iss(cid:60)ed(cid:87) (cid:3) f(cid:60)rther (cid:165)(cid:138)(cid:139) Shares were iss(cid:60)ed s(cid:60)(cid:35)se(cid:55)(cid:60)ent to (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140) (cid:60)pon the e(cid:63)ercise of options e(cid:63)pirin(cid:43) (cid:140) (cid:18)ovem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:140)(cid:87) (cid:10)uture (cid:8)e(cid:61)e(cid:163)opments (cid:26)he consolidated entit(cid:64) intends to contin(cid:60)e its c(cid:60)rrent operations of tenement ac(cid:55)(cid:60)isition and mineral e(cid:63)ploration with a view to commercial development(cid:87) (cid:16)i(cid:48)el(cid:64) developments that are incl(cid:60)ded elsewhere in this report or the (cid:41)nancial statements will(cid:84) amon(cid:43)st other thin(cid:43)s(cid:84) depend (cid:60)pon the s(cid:60)ccess of the e(cid:63)ploration and development pro(cid:43)rams(cid:87) (cid:9)n(cid:61)ironmenta(cid:163) Regu(cid:163)ations In the co(cid:60)rse of its normal minin(cid:43) and e(cid:63)ploration activities the consolidated entit(cid:64) promotes an environmentall(cid:64) responsi(cid:35)le c(cid:60)lt(cid:60)re and adheres to environmental re(cid:43)(cid:60)lations of the (cid:8)epartment of (cid:17)inerals and (cid:22)etrole(cid:60)m for (cid:3)(cid:60)stralian operations and to the (cid:8)epartment of Geolo(cid:43)ical S(cid:60)rve(cid:64) and (cid:17)inerals for (cid:27)(cid:43)andan operations(cid:84) partic(cid:60)larl(cid:64) those re(cid:43)(cid:60)lations relatin(cid:43) to (cid:43)ro(cid:60)nd dist(cid:60)r(cid:35)ance and the protection of rare and endan(cid:43)ered (cid:42)ora and fa(cid:60)na(cid:87) (cid:26)he consolidated entit(cid:64) has complied with all material environmental re(cid:55)(cid:60)irements (cid:60)p to the date of this report(cid:87) (cid:25)(cid:44)are (cid:19)ptions Unissued Shares (cid:3)s at the date of this report(cid:84) there were (cid:136)(cid:138)(cid:138)(cid:84)(cid:142)(cid:142)(cid:165)(cid:84)(cid:140)(cid:165)(cid:135) (cid:60)niss(cid:60)ed ordinar(cid:64) shares (cid:60)nder options (cid:108)(cid:136)(cid:138)(cid:138)(cid:84)(cid:142)(cid:142)(cid:142)(cid:84)(cid:139)(cid:136)(cid:139) at reportin(cid:43) date(cid:109)(cid:87) (cid:3)ll of the o(cid:60)tstandin(cid:43) options are listed options with an e(cid:63)pir(cid:64) of (cid:140) (cid:18)ovem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:140) and have an e(cid:63)ercise price of (cid:130)(cid:135)(cid:87)(cid:135)(cid:141)(cid:140) per option(cid:87) Refer also to (cid:18)ote (cid:136)(cid:138) of the (cid:41)nancial statements for f(cid:60)rther details of the options o(cid:60)tstandin(cid:43)(cid:87) Option holders do not have an(cid:64) ri(cid:43)ht(cid:84) (cid:35)(cid:64) virt(cid:60)e of the option(cid:84) to participate in an(cid:64) share iss(cid:60)e of the compan(cid:64) or an(cid:64) related (cid:35)od(cid:64) corporate(cid:87) Shares Issued as a Result of the Exercise of Options (cid:26)here were (cid:141)(cid:84)(cid:139)(cid:136)(cid:137) f(cid:60)ll(cid:64) paid ordinar(cid:64) shares iss(cid:60)ed p(cid:60)rs(cid:60)ant to the e(cid:63)ercise of options d(cid:60)rin(cid:43) and (cid:165)(cid:138)(cid:139) since the end of the (cid:41)nancial (cid:64)ear(cid:87) (cid:13)ndemnifying (cid:19)(cid:259)cer (cid:5)(cid:64) wa(cid:64) of (cid:8)eed(cid:84) the (cid:6)ompan(cid:64) has a(cid:43)reed to indemnif(cid:64) each of the (cid:8)irectors from lia(cid:35)ilities inc(cid:60)rred while actin(cid:43) as a director and to (cid:43)rant certain ri(cid:43)hts and privile(cid:43)es to the (cid:8)irector to the e(cid:63)tent permi(cid:295)ed (cid:35)(cid:64) law(cid:87) (cid:26)he (cid:6)ompan(cid:64) has not(cid:84) d(cid:60)rin(cid:43) or since the end of the (cid:41)nancial (cid:64)ear(cid:84) in respect of an(cid:64) person who is or has (cid:35)een an o(cid:259)cer of the (cid:6)ompan(cid:64) or a related (cid:35)od(cid:64) corporate inc(cid:60)rred an(cid:64) e(cid:63)pense in relation to the indemni(cid:41)cation(cid:87) (cid:26)he (cid:6)ompan(cid:64) has also paid premi(cid:60)ms to ins(cid:60)re each of the (cid:8)irectors and o(cid:259)cers a(cid:43)ainst lia(cid:35)ilities for costs and e(cid:63)penses inc(cid:60)rred (cid:35)(cid:64) them in defendin(cid:43) an(cid:64) le(cid:43)al proceedin(cid:43)s arisin(cid:43) o(cid:60)t of their cond(cid:60)ct while actin(cid:43) in the capacit(cid:64) of (cid:8)irector of the (cid:6)ompan(cid:64) or a controlled entit(cid:64) in the consolidated entit(cid:64)(cid:84) other than cond(cid:60)ct involvin(cid:43) a wilf(cid:60)l (cid:35)reach of d(cid:60)t(cid:64) in relation to the consolidated entit(cid:64)(cid:87) (cid:26)he contract of ins(cid:60)rance prohi(cid:35)its disclos(cid:60)re of the nat(cid:60)re of the lia(cid:35)ilit(cid:64) and the amo(cid:60)nt of the premi(cid:60)m(cid:87) 28 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information (cid:13)ndemni(cid:41)cation of Auditors (cid:26)o the e(cid:63)tent permi(cid:295)ed (cid:35)(cid:64) law(cid:84) the (cid:6)ompan(cid:64) has a(cid:43)reed to indemnif(cid:64) its a(cid:60)ditors(cid:84) (cid:9)rnst (cid:123) (cid:31)o(cid:60)n(cid:43)(cid:84) as part of the terms of its a(cid:60)dit en(cid:43)a(cid:43)ement a(cid:43)reement a(cid:43)ainst claims (cid:35)(cid:64) third parties arisin(cid:43) from the a(cid:60)dit (cid:108)for an (cid:60)nspeci(cid:41)ed amo(cid:60)nt(cid:109)(cid:87) (cid:18)o pa(cid:64)ment has (cid:35)een made to indemnif(cid:64) (cid:9)rnst (cid:123) (cid:31)o(cid:60)n(cid:43) d(cid:60)rin(cid:43) or since the (cid:41)nancial (cid:64)ear(cid:87) Remuneration Report (cid:108)Audited(cid:109) (cid:26)he information in this section of the (cid:8)irectors’ Report has (cid:35)een a(cid:60)dited(cid:87) Introduction (cid:26)his report o(cid:60)tlines the rem(cid:60)neration arran(cid:43)ements in place for (cid:15)e(cid:64) (cid:17)ana(cid:43)ement (cid:22)ersonnel of Sipa Reso(cid:60)rces (cid:16)imited (cid:108)the (cid:6)ompan(cid:64)(cid:109) in accordance with the re(cid:55)(cid:60)irements of the (cid:6)orporations (cid:3)ct (cid:137)(cid:135)(cid:135)(cid:136) and its Re(cid:43)(cid:60)lations(cid:87) For the p(cid:60)rposes of this report (cid:15)e(cid:64) (cid:17)ana(cid:43)ement (cid:22)ersonnel of the Gro(cid:60)p incl(cid:60)des (cid:18)on(cid:102)(cid:9)(cid:63)ec(cid:60)tive (cid:8)irectors and those (cid:9)(cid:63)ec(cid:60)tives havin(cid:43) a(cid:60)thorit(cid:64) and responsi(cid:35)ilit(cid:64) for plannin(cid:43)(cid:84) directin(cid:43) and controllin(cid:43) the ma(cid:47)or activities of the (cid:6)ompan(cid:64) and the Gro(cid:60)p(cid:87) (cid:26)he details of the (cid:48)e(cid:64) mana(cid:43)ement personnel d(cid:60)rin(cid:43) the (cid:64)ear are as follows(cid:86) (cid:6) (cid:17)cGown (cid:16) (cid:5)(cid:60)rne(cid:295) (cid:8) Goodin(cid:43) (cid:15) Field (cid:22) (cid:15)ile(cid:64) (cid:22) I (cid:22)earce M Doepel (cid:8) (cid:29)illiams T Robson (cid:8)irector(cid:84) non(cid:102)e(cid:63)ec(cid:60)tive (cid:6)hairman (cid:108)(cid:3)ppointed (cid:136)(cid:136) (cid:17)ar (cid:137)(cid:135)(cid:136)(cid:140)(cid:109) (cid:17)ana(cid:43)in(cid:43) (cid:8)irector (cid:108)(cid:3)ppointed (cid:137)(cid:139) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:139)(cid:109)(cid:85) (cid:9)(cid:63)ploration (cid:17)ana(cid:43)er (cid:108)(cid:27)ntil (cid:137)(cid:139) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:139)(cid:109) (cid:8)irector(cid:84) non(cid:102)e(cid:63)ec(cid:60)tive (cid:8)irector(cid:84) non(cid:102)e(cid:63)ec(cid:60)tive (cid:8)irector(cid:84) non(cid:102)e(cid:63)ec(cid:60)tive (cid:108)(cid:3)ppointed (cid:137)(cid:138) Sept (cid:137)(cid:135)(cid:136)(cid:139)(cid:109) (cid:8)irector(cid:84) non(cid:102)e(cid:63)ec(cid:60)tive (cid:6)hairman (cid:108)Retired (cid:136)(cid:136) (cid:17)ar (cid:137)(cid:135)(cid:136)(cid:140)(cid:109) (cid:17)ana(cid:43)in(cid:43) (cid:8)irector (cid:108)(cid:27)ntil (cid:137)(cid:139) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:139)(cid:109)(cid:85) (cid:8)irector(cid:84) non(cid:102)e(cid:63)ec(cid:60)tive (cid:108)(cid:137)(cid:139) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:139)(cid:102) (cid:136)(cid:137) Sept (cid:137)(cid:135)(cid:136)(cid:139)(cid:109) (cid:8)irector(cid:84) non(cid:102)e(cid:63)ec(cid:60)tive (cid:108)Resi(cid:43)ned (cid:137)(cid:138) Sept (cid:137)(cid:135)(cid:136)(cid:139)(cid:109) (cid:6)hief Financial O(cid:259)cer and (cid:6)ompan(cid:64) Secretar(cid:64) Background (cid:3)t the (cid:3)nn(cid:60)al General (cid:17)eetin(cid:43) in (cid:18)ovem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:139)(cid:84) the (cid:6)ompan(cid:64) received (cid:164)(cid:141)(cid:166) of the total voted shares in favo(cid:60)r of the Rem(cid:60)neration Report(cid:87) (cid:12)owever(cid:84) this was (cid:35)elow the (cid:141)(cid:140)(cid:166) threshold re(cid:55)(cid:60)ired and therefore constit(cid:60)ted a (cid:91)(cid:41)rst stri(cid:48)e(cid:92) a(cid:43)ainst the Rem(cid:60)neration Report as de(cid:41)ned (cid:60)nder the (cid:6)orporations (cid:3)ct (cid:137)(cid:135)(cid:135)(cid:136)(cid:87) Sipa’s response to the First Stri(cid:48)e was to en(cid:43)a(cid:43)e with ma(cid:47)or shareholders to ascertain the reason wh(cid:64) Sipa received the vote a(cid:43)ainst the Rem(cid:60)neration Report(cid:87) (cid:8)isc(cid:60)ssions were held with s(cid:60)(cid:35)stantial shareholders and pro(cid:63)(cid:64) adviser reports reviewed(cid:87) (cid:26)he (cid:60)nderl(cid:64)in(cid:43) concerns from the shareholders and pro(cid:63)(cid:64) advisers was mar(cid:48)edl(cid:64) di(cid:248)erent with shareholders concerned primaril(cid:64) with the si(cid:65)e of the (cid:35)oard(cid:84) ten(cid:60)re of the (cid:35)oard and the (cid:60)nderperformance of the share price(cid:84) whereas the concern of the pro(cid:63)(cid:64) advisors(cid:84) who did not recommend a(cid:43)ainst the Rem(cid:60)neration Report(cid:84) was the lac(cid:48) of a s(cid:60)staina(cid:35)le lon(cid:43)(cid:102)term strate(cid:43)(cid:64) for rem(cid:60)neratin(cid:43) e(cid:63)ec(cid:60)tives(cid:84) speci(cid:41)call(cid:64) the lac(cid:48) of a tailored lon(cid:43)(cid:102)term incentive plan with performance h(cid:60)rdles(cid:87) (cid:29)ith feed(cid:35)ac(cid:48) received since the (cid:137)(cid:135)(cid:136)(cid:139) (cid:3)G(cid:17)(cid:84) Sipa has (cid:60)nderta(cid:48)en a comprehensive review of its Rem(cid:60)neration practices and has implemented a new (cid:9)(cid:63)ec(cid:60)tive Rem(cid:60)neration (cid:22)olic(cid:64) which comprises a more str(cid:60)ct(cid:60)red approach (cid:35)ased on components of Fi(cid:63)ed Rem(cid:60)neration and a (cid:16)on(cid:43) (cid:26)erm Incentive (cid:22)lan(cid:84) each of which is descri(cid:35)ed in more detail elsewhere in this report(cid:87) (cid:26)he review(cid:84) which was (cid:60)nderta(cid:48)en (cid:35)(cid:64) the (cid:18)omination and (cid:6)ompensation (cid:6)ommi(cid:295)ee on (cid:35)ehalf of the (cid:5)oard(cid:84) was (cid:35)ased lar(cid:43)el(cid:64) on a review of o(cid:60)r peers and a (cid:35)as(cid:48)et of compara(cid:35)le companies(cid:87) Given the amo(cid:60)nt of third part(cid:64) information availa(cid:35)le(cid:84) no rem(cid:60)neration cons(cid:60)ltants were (cid:60)sed in the process(cid:87) (cid:26)his review has res(cid:60)lted in si(cid:43)ni(cid:41)cant chan(cid:43)es to o(cid:60)r rem(cid:60)neration framewor(cid:48)(cid:84) with the new rem(cid:60)neration str(cid:60)ct(cid:60)re to ta(cid:48)e e(cid:248)ect from (cid:136) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:140)(cid:87) (cid:26)he (cid:48)e(cid:64) initiatives arisin(cid:43) from the review were(cid:86) – (cid:8)evelopin(cid:43) a rem(cid:60)neration framewor(cid:48) to formalise incentive str(cid:60)ct(cid:60)res to (cid:43)(cid:60)ide rem(cid:60)neration practices (cid:43)oin(cid:43) forward(cid:85) – (cid:5)enchmar(cid:48)in(cid:43) e(cid:63)ec(cid:60)tive and non(cid:102)e(cid:63)ec(cid:60)tive rem(cid:60)neration with peer companies to determine the competitiveness of c(cid:60)rrent rem(cid:60)neration arran(cid:43)ements(cid:85) – (cid:8)esi(cid:43)nin(cid:43) a new e(cid:55)(cid:60)it(cid:64) (cid:35)ased lon(cid:43) term incentive (cid:108)(cid:16)(cid:26)I(cid:109) plan for e(cid:63)ec(cid:60)tives to enco(cid:60)ra(cid:43)e lon(cid:43)(cid:102)term s(cid:60)staina(cid:35)le performance(cid:87) (cid:26)he (cid:5)oard also considered the si(cid:65)e of the e(cid:63)istin(cid:43) (cid:5)oard and ten(cid:60)re of its mem(cid:35)ers(cid:87) It is the view of the (cid:5)oard that the c(cid:60)rrent si(cid:65)e of the (cid:5)oard of (cid:140) (cid:8)irectors is important to the overall depth of e(cid:63)perience and independence of the (cid:35)oard and that the s(cid:60)ccession which occ(cid:60)rred d(cid:60)rin(cid:43) the (cid:64)ear is s(cid:60)(cid:259)cient to satisf(cid:64) the concerns of si(cid:65)e and ten(cid:60)re(cid:87) Annual Report 2015 29 Financial Report Directors’ Report continued Overview of the Approach to Executive Remuneration 2015 and Beyond Followin(cid:43) the (cid:137)(cid:135)(cid:136)(cid:140) review of c(cid:60)rrent rem(cid:60)neration practices(cid:84) the (cid:5)oard has (cid:41)nalised a new e(cid:63)ec(cid:60)tive rem(cid:60)neration str(cid:60)ct(cid:60)re to (cid:35)e e(cid:248)ective from (cid:136) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:140)(cid:87) Rem(cid:60)neration at Sipa sho(cid:60)ld(cid:86) – (cid:3)li(cid:43)n and contri(cid:35)(cid:60)te to deliverin(cid:43) strate(cid:43)ic pro(cid:47)ects on time and on (cid:35)(cid:60)d(cid:43)et(cid:85) – (cid:3)ssist Sipa in a(cid:295)ractin(cid:43) and retainin(cid:43) the ri(cid:43)ht people to e(cid:63)ec(cid:60)te the (cid:35)(cid:60)siness strate(cid:43)(cid:64)(cid:85) – (cid:3)li(cid:43)n the interests of e(cid:63)ec(cid:60)tives with the interest of shareholders(cid:85) – (cid:5)e contin(cid:43)ent on (cid:35)oth individ(cid:60)al and (cid:6)ompan(cid:64) performance(cid:85) and – (cid:5)e simple and eas(cid:64) to administer(cid:87) (cid:26)he two components of the new Rem(cid:60)neration (cid:22)olic(cid:64) are descri(cid:35)ed as follows(cid:86) Fixed Remuneration (cid:8)(cid:60)rin(cid:43) the (cid:64)ear ended (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140)(cid:84) (cid:35)enchmar(cid:48)in(cid:43) of the Fi(cid:63)ed Rem(cid:60)neration component of (cid:9)(cid:63)ec(cid:60)tive salaries was cond(cid:60)cted a(cid:43)ainst a c(cid:60)stom peer (cid:43)ro(cid:60)p of similar si(cid:65)e (cid:108)(cid:35)(cid:64) mar(cid:48)et capitalisation(cid:109)(cid:84) and (cid:3)S(cid:30)(cid:102)listed mineral e(cid:63)ploration companies with overseas pro(cid:47)ects(cid:84) in order to ens(cid:60)re that the rem(cid:60)neration levels set meet the o(cid:35)(cid:47)ectives of ena(cid:35)lin(cid:43) the (cid:6)ompan(cid:64) to a(cid:295)ract and retain (cid:48)e(cid:64) talent and are ali(cid:43)ned to (cid:35)roader mar(cid:48)et trends in the minerals ind(cid:60)str(cid:64)(cid:87) Fi(cid:63)ed Rem(cid:60)neration t(cid:64)picall(cid:64) incl(cid:60)des (cid:35)ase salar(cid:64)(cid:84) (cid:108)str(cid:60)ct(cid:60)red as a total emplo(cid:64)ment cost pac(cid:48)a(cid:43)e which ma(cid:64) (cid:35)e delivered as a mi(cid:63) of cash and other (cid:35)ene(cid:41)ts at the (cid:9)(cid:63)ec(cid:60)tives’ discretion(cid:109)(cid:84) and s(cid:60)perann(cid:60)ation at the prescri(cid:35)ed le(cid:43)islative rates(cid:87) Fi(cid:63)ed Rem(cid:60)neration is to (cid:35)e reviewed ann(cid:60)all(cid:64) (cid:35)(cid:64) the (cid:17)ana(cid:43)in(cid:43) (cid:8)irector(cid:84) within parameters esta(cid:35)lished (cid:35)(cid:64) the (cid:5)oard(cid:84) or in the case of the (cid:17)ana(cid:43)in(cid:43) (cid:8)irector(cid:84) (cid:35)(cid:64) the (cid:5)oard (cid:35)ased on the recommendation of the (cid:18)omination and (cid:6)ompensation (cid:6)ommi(cid:295)ee(cid:87) Long Term Incentive Plan Followin(cid:43) a comprehensive review of rem(cid:60)neration practices d(cid:60)rin(cid:43) the (cid:64)ear(cid:84) the (cid:5)oard has introd(cid:60)ced a more str(cid:60)ct(cid:60)red approach to (cid:16)on(cid:43) (cid:26)erm Incentives (cid:108)(cid:16)(cid:26)I’s(cid:109) for (cid:9)(cid:63)ec(cid:60)tives(cid:87) (cid:12)istoricall(cid:64)(cid:84) lon(cid:43) term rem(cid:60)neration consisted of the iss(cid:60)ance of options a(cid:35)o(cid:60)t ever(cid:64) (cid:138) (cid:64)ears with performance criteria lin(cid:48)ed lar(cid:43)el(cid:64) to share price and (cid:64)ears of service(cid:87) (cid:26)he last option (cid:43)rant was in (cid:137)(cid:135)(cid:136)(cid:135) and e(cid:63)pired d(cid:60)rin(cid:43) the c(cid:60)rrent (cid:64)ear(cid:87) (cid:27)nder the new framewor(cid:48)(cid:84) (cid:16)(cid:26)I (cid:43)rants will (cid:35)e made to e(cid:63)ec(cid:60)tives on an ann(cid:60)al (cid:35)asis to ali(cid:43)n with t(cid:64)pical mar(cid:48)et practice(cid:84) and to ali(cid:43)n e(cid:63)ec(cid:60)tives’ interests with those of shareholders and the (cid:43)eneration of lon(cid:43)(cid:102)term s(cid:60)staina(cid:35)le val(cid:60)e(cid:87) (cid:6)onsistent with previo(cid:60)s polic(cid:64)(cid:84) there is no Short (cid:26)erm Incentive component within Sipa’s Rem(cid:60)neration str(cid:60)ct(cid:60)re(cid:87) (cid:26)he (cid:16)(cid:26)I (cid:43)rants will (cid:35)e delivered thro(cid:60)(cid:43)h participation in the Sipa (cid:9)mplo(cid:64)ee Share Option (cid:22)lan (cid:137)(cid:135)(cid:136)(cid:140)(cid:87) (cid:26)he val(cid:60)e of the (cid:16)(cid:26)I (cid:43)rants made (cid:60)nder the plan will (cid:35)e made with reference to a set percenta(cid:43)e of (cid:5)ase Salar(cid:64) with (cid:9)(cid:63)ec(cid:60)tives’ performance assessed a(cid:43)ainst pre(cid:102)determined performance h(cid:60)rdles(cid:87) (cid:26)he performance h(cid:60)rdles are a com(cid:35)ination of mar(cid:48)et (cid:108)share price (cid:35)ased(cid:109) and non(cid:102)mar(cid:48)et (cid:108)internal(cid:109) h(cid:60)rdles to optimise share performance a(cid:43)ainst e(cid:63)ploration tar(cid:43)ets(cid:84) the ann(cid:60)al operatin(cid:43) (cid:35)(cid:60)d(cid:43)et(cid:84) s(cid:60)ccessf(cid:60)l comm(cid:60)nication with sta(cid:48)eholders(cid:84) improved access to capital mar(cid:48)ets(cid:84) stoc(cid:48) li(cid:55)(cid:60)idit(cid:64) and re(cid:43)ister pro(cid:41)le(cid:87) (cid:26)he threshold levels are s(cid:60)ita(cid:35)l(cid:64) stretched to (cid:35)e consistent with the o(cid:35)(cid:47)ectives of the (cid:16)(cid:26)I plan(cid:87) (cid:26)he (cid:16)(cid:26)I as a percenta(cid:43)e of (cid:5)ase Salar(cid:64) is (cid:141)(cid:140)(cid:166) for the (cid:17)ana(cid:43)in(cid:43) (cid:8)irector and (cid:137)(cid:135)(cid:102)(cid:140)(cid:135)(cid:166) for other (cid:15)e(cid:64) (cid:17)ana(cid:43)ement (cid:22)ersonnel(cid:84) e(cid:63)cl(cid:60)din(cid:43) non(cid:102)e(cid:63)ec(cid:60)tive directors(cid:87) (cid:22)erformance h(cid:60)rdles are meas(cid:60)red at the end of the (cid:41)nancial (cid:64)ear with vestin(cid:43) occ(cid:60)rrin(cid:43) at the end of (cid:138) (cid:64)ears and e(cid:63)pir(cid:64) of the (cid:43)rants at the end of (cid:140) (cid:64)ears(cid:87) (cid:26)he plan r(cid:60)les do not provide for a(cid:60)tomatic vestin(cid:43) in the event of a chan(cid:43)e of control(cid:87) (cid:26)he (cid:35)oard ma(cid:64) in its discretion determine the manner in which the (cid:60)nvested incentives will (cid:35)e dealt with in the event of a chan(cid:43)e of control(cid:87) 30 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information (cid:26)he performance h(cid:60)rdles are o(cid:60)tlined (cid:35)elow(cid:87) 2(cid:135)(cid:136)5 (cid:25)trategic (cid:19)(cid:35)(cid:47)ecti(cid:61)es (cid:22)erformance Measure (cid:22)erformance h(cid:60)rdle (cid:102) (cid:26)otal Shareholder Ret(cid:60)rn (cid:108)(cid:26)SR(cid:109) (cid:6)omparison of (cid:26)SR with a (cid:43)ro(cid:60)p of peer companies(cid:86) (cid:22)erformance h(cid:60)rdle (cid:102) (cid:9)(cid:63)ploration (cid:8)iscover(cid:64) (cid:5)elow (cid:140)(cid:135)th percentile (cid:102) (cid:135)(cid:166) vest (cid:5)etween (cid:140)(cid:135)th (cid:102) (cid:141)(cid:135)(cid:166) percentile (cid:102) (cid:136)(cid:140)(cid:166) vest (cid:3)(cid:35)ove (cid:141)(cid:135)th percentile (cid:102) entire (cid:138)(cid:140)(cid:166) vest S(cid:60)(cid:35)stantiall(cid:64) advance one or more compan(cid:64) e(cid:63)ploration pro(cid:47)ects via ore (cid:43)rade intersections of minea(cid:35)le width in a (cid:43)eolo(cid:43)icall(cid:64) compellin(cid:43) environment th(cid:60)s leadin(cid:43) towards an initial mineral resource (cid:22)erformance h(cid:60)rdle (cid:102) (cid:6)apital (cid:17)ana(cid:43)ement and Financial Stren(cid:43)th (cid:6)ompan(cid:64) ade(cid:55)(cid:60)atel(cid:64) f(cid:60)nded to achieve e(cid:63)ploration o(cid:35)(cid:47)ectives (cid:22)erformance h(cid:60)rdle (cid:102) (cid:6)orporate and Social Responsi(cid:35)ilit(cid:64)(cid:84) incorporatin(cid:43) metrics (cid:60)nder environmental(cid:84) safet(cid:64)(cid:84) and comm(cid:60)nit(cid:64) (cid:22)erformance h(cid:60)rdle (cid:102) (cid:9)nhanced (cid:6)ompan(cid:64) profile S(cid:60)ccessf(cid:60)l mana(cid:43)ement of all sta(cid:48)eholders incl(cid:60)din(cid:43) (cid:43)overnment(cid:84) comm(cid:60)nit(cid:64)(cid:84) and shareholders to achieve tar(cid:43)eted o(cid:60)tcomes whilst maintainin(cid:43) a safe wor(cid:48)in(cid:43) environment S(cid:60)ccessf(cid:60)l mana(cid:43)ement of p(cid:60)(cid:35)lic relations to achieve tar(cid:43)eted o(cid:60)tcomes with respect to li(cid:55)(cid:60)idit(cid:64) and re(cid:43)ister profile (cid:29)eig(cid:44)t (cid:138)(cid:140)(cid:166) (cid:138)(cid:140)(cid:166) (cid:136)(cid:135)(cid:166) (cid:136)(cid:135)(cid:166) (cid:136)(cid:135)(cid:166) In considerin(cid:43) the relationship (cid:35)etween the consolidated entit(cid:64)’s performance and the (cid:35)ene(cid:41)ts for shareholder wealth(cid:84) the (cid:5)oard (cid:35)elieves that(cid:84) at this sta(cid:43)e of development(cid:84) there is no relevant direct lin(cid:48) (cid:35)etween reven(cid:60)e and pro(cid:41)ta(cid:35)ilit(cid:64) and the advancement of shareholder wealth as demonstrated in the ta(cid:35)le (cid:35)elow which shows the share price is not directl(cid:64) lin(cid:48)ed to the (cid:18)et (cid:16)oss for the (cid:64)ear(cid:84) (cid:35)(cid:60)t moves independentl(cid:64) of it(cid:87) As at 3(cid:135) (cid:14)une 2015 2014 2(cid:135)(cid:136)3 2012 2011 Share price (cid:108)cents per share(cid:109) (cid:18)et loss per (cid:64)ear ended (cid:130)(cid:135)(cid:87)(cid:135)(cid:164)(cid:142) (cid:130)(cid:135)(cid:87)(cid:135)(cid:139)(cid:142) (cid:130)(cid:135)(cid:87)(cid:135)(cid:140)(cid:165) (cid:130)(cid:135)(cid:87)(cid:135)(cid:165)(cid:141) (cid:130)(cid:135)(cid:87)(cid:135)(cid:140)(cid:141) (cid:130)(cid:138)(cid:84)(cid:140)(cid:137)(cid:164)(cid:84)(cid:165)(cid:135)(cid:141) (cid:130)(cid:139)(cid:84)(cid:140)(cid:135)(cid:139)(cid:84)(cid:165)(cid:138)(cid:135) (cid:130)(cid:140)(cid:84)(cid:141)(cid:136)(cid:141)(cid:84)(cid:164)(cid:141)(cid:165) (cid:130)(cid:140)(cid:84)(cid:136)(cid:140)(cid:136)(cid:84)(cid:140)(cid:142)(cid:136) (cid:130)(cid:140)(cid:84)(cid:141)(cid:136)(cid:139)(cid:84)(cid:140)(cid:165)(cid:140) Nomination and Compensation Committee (cid:26)he (cid:18)omination and (cid:6)ompensation (cid:6)ommittee of the (cid:5)oard of (cid:8)irectors of the (cid:6)ompan(cid:64) is responsi(cid:35)le for reviewin(cid:43) rem(cid:60)neration arran(cid:43)ements for the (cid:8)irectors(cid:84) the (cid:17)ana(cid:43)in(cid:43) (cid:8)irector (cid:108)(cid:6)(cid:9)O(cid:109) and the (cid:6)ompan(cid:64) Secretar(cid:64)(cid:87) (cid:26)he (cid:18)omination and (cid:6)ompensation (cid:6)ommittee assesses the appropriateness of the philosoph(cid:64)(cid:84) nat(cid:60)re and amo(cid:60)nt of rem(cid:60)neration of (cid:8)irectors and Senior (cid:9)(cid:63)ec(cid:60)tives on an ann(cid:60)al (cid:35)asis (cid:35)(cid:64) reference to relevant emplo(cid:64)ment mar(cid:48)et conditions with the overall o(cid:35)(cid:47)ective of ens(cid:60)rin(cid:43) ma(cid:63)im(cid:60)m sta(cid:48)eholder (cid:35)enefit from the retention of a hi(cid:43)h (cid:55)(cid:60)alit(cid:64) (cid:5)oard and (cid:9)(cid:63)ec(cid:60)tive team(cid:87) Non-executive Director Compensation Fees and pa(cid:64)ments to non(cid:102)e(cid:63)ec(cid:60)tive directors re(cid:42)ect the demands which are made on(cid:84) and the responsi(cid:35)ilities of(cid:84) the directors and have the o(cid:35)(cid:47)ective of ens(cid:60)rin(cid:43) ma(cid:63)im(cid:60)m (cid:35)ene(cid:41)t for Sipa (cid:35)(cid:64) the retention of a hi(cid:43)h (cid:55)(cid:60)alit(cid:64) (cid:5)oard with the relevant s(cid:48)ills mi(cid:63) to optimise overall performance(cid:87) (cid:18)on(cid:102)e(cid:63)ec(cid:60)tive directors’ fees and pa(cid:64)ments are determined within an a(cid:43)(cid:43)re(cid:43)ate (cid:8)irectors’ fee pool limit(cid:84) which is periodicall(cid:64) recommended (cid:35)(cid:64) the (cid:18)omination and (cid:6)ompensation (cid:6)ommi(cid:295)ee for approval (cid:35)(cid:64) shareholders(cid:87) (cid:26)he pool limit ma(cid:63)im(cid:60)m c(cid:60)rrentl(cid:64) stands at (cid:130)(cid:138)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135)(cid:84) as approved (cid:35)(cid:64) shareholders in (cid:18)ovem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:139)(cid:87) It is at the discretion of the (cid:5)oard to distri(cid:35)(cid:60)te this pool amon(cid:43)st the (cid:18)on(cid:102)e(cid:63)ec(cid:60)tive (cid:8)irectors (cid:35)ased on the responsi(cid:35)ilities ass(cid:60)med(cid:87) (cid:8)(cid:60)rin(cid:43) the (cid:64)ear (cid:130)(cid:137)(cid:137)(cid:135)(cid:84)(cid:136)(cid:164)(cid:136) of the pool was (cid:60)tilised(cid:87) (cid:18)o performance (cid:35)ased fees are paid to (cid:18)on(cid:102)(cid:9)(cid:63)ec(cid:60)tive (cid:8)irectors(cid:84) nor are (cid:18)on(cid:102)(cid:9)(cid:63)ec(cid:60)tive (cid:8)irectors entitled to participate in Sipa’s (cid:9)mplo(cid:64)ee Share Option (cid:22)lan(cid:87) Retirement (cid:35)enefits are limited to stat(cid:60)tor(cid:64) s(cid:60)perann(cid:60)ation at the rate prescri(cid:35)ed (cid:60)nder the S(cid:60)perann(cid:60)ation G(cid:60)arantee le(cid:43)islation and entitlements earned (cid:60)nder the (cid:8)irectors Retirement Scheme prior to (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:135)(cid:165)(cid:87) Annual Report 2015 31 Financial Report Directors’ Report continued (cid:26)he compensation of (cid:18)on(cid:102)e(cid:63)ec(cid:60)tive (cid:8)irectors for the period endin(cid:43) (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140) is detailed in (cid:26)a(cid:35)le (cid:136) of this report(cid:87) (cid:26)he (cid:41)(cid:63)ed compensation of the (cid:48)e(cid:64) mana(cid:43)ement personnel is detailed in (cid:26)a(cid:35)le (cid:136) (cid:35)elow(cid:87) Table 1: Remuneration of Key Management Personnel for the year ended 30 June 2015 and 30 June 2014 Short-term benefits Post-employment Cas(cid:44) (cid:25)a(cid:163)ary and (cid:10)ees (cid:25)uper(cid:102) annuation Retirement (cid:22)ro(cid:61)ision# Other long-term benefits Long (cid:25)er(cid:61)ice Lea(cid:61)e Share-based payment (cid:19)ptions Total % (cid:22)erformance Re(cid:163)ated % (cid:19)ptions Name Non-executive directors (cid:6) (cid:17)cGown (cid:108)(cid:3)ppointed (cid:136)(cid:136) (cid:17)arch (cid:137)(cid:135)(cid:136)(cid:140)(cid:109) (cid:22) (cid:22)earce (cid:108)Retired (cid:136)(cid:136) (cid:17)arch (cid:137)(cid:135)(cid:136)(cid:140)(cid:109) (cid:8) Goodin(cid:43) (cid:15) Field (cid:22) (cid:15)ile(cid:64) (cid:108)(cid:3)ppointed (cid:137)(cid:138) Septem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:139)(cid:109) (cid:8) (cid:29)illiams (cid:108)Resi(cid:43)ned (cid:137)(cid:138) Septem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:139)(cid:109) Executive director (cid:137)(cid:135)(cid:136)(cid:140) (cid:137)(cid:139)(cid:84)(cid:138)(cid:135)(cid:135) (cid:137)(cid:84)(cid:138)(cid:135)(cid:142) – – (cid:140)(cid:164)(cid:84)(cid:141)(cid:140)(cid:136) (cid:140)(cid:84)(cid:138)(cid:142)(cid:136) (cid:108)(cid:136)(cid:135)(cid:139)(cid:84)(cid:135)(cid:139)(cid:165)(cid:109) (cid:137)(cid:135)(cid:136)(cid:139) (cid:137)(cid:135)(cid:136)(cid:140) (cid:137)(cid:135)(cid:136)(cid:139) (cid:137)(cid:135)(cid:136)(cid:140) (cid:140)(cid:141)(cid:84)(cid:164)(cid:140)(cid:164) (cid:138)(cid:164)(cid:84)(cid:140)(cid:136)(cid:142) (cid:137)(cid:135)(cid:136)(cid:139)(cid:114) (cid:137)(cid:140)(cid:84)(cid:141)(cid:136)(cid:136) (cid:137)(cid:135)(cid:136)(cid:140) (cid:138)(cid:164)(cid:84)(cid:140)(cid:136)(cid:142) (cid:137)(cid:135)(cid:136)(cid:139)(cid:114) (cid:137)(cid:140)(cid:84)(cid:141)(cid:136)(cid:136) (cid:137)(cid:135)(cid:136)(cid:140) (cid:137)(cid:165)(cid:84)(cid:164)(cid:139)(cid:139) (cid:140)(cid:84)(cid:138)(cid:138)(cid:165) (cid:138)(cid:84)(cid:139)(cid:164)(cid:142) (cid:137)(cid:84)(cid:139)(cid:141)(cid:164) (cid:138)(cid:84)(cid:139)(cid:164)(cid:142) (cid:137)(cid:84)(cid:139)(cid:141)(cid:164) (cid:137)(cid:84)(cid:141)(cid:137)(cid:136) (cid:137)(cid:135)(cid:136)(cid:139) (cid:137)(cid:135)(cid:136)(cid:140) – – (cid:165)(cid:84)(cid:165)(cid:165)(cid:140) (cid:165)(cid:139)(cid:139) (cid:108)(cid:164)(cid:139)(cid:84)(cid:136)(cid:164)(cid:141)(cid:109) (cid:137)(cid:135)(cid:136)(cid:139)(cid:114) (cid:137)(cid:140)(cid:84)(cid:141)(cid:136)(cid:136) (cid:137)(cid:84)(cid:139)(cid:141)(cid:164) (cid:16) (cid:5)(cid:60)rnett(cid:136) (cid:137)(cid:135)(cid:136)(cid:140) (cid:137)(cid:141)(cid:140)(cid:84)(cid:135)(cid:135)(cid:135) (cid:137)(cid:164)(cid:84)(cid:136)(cid:137)(cid:140) M Doepel(cid:137) (cid:108)Resi(cid:43)ned (cid:136)(cid:137) Septem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:139)(cid:109) (cid:137)(cid:135)(cid:136)(cid:139) (cid:137)(cid:135)(cid:136)(cid:140) (cid:136)(cid:165)(cid:84)(cid:165)(cid:138)(cid:164) (cid:137)(cid:141)(cid:84)(cid:140)(cid:137)(cid:140) (cid:136)(cid:84)(cid:141)(cid:165)(cid:142) (cid:137)(cid:84)(cid:164)(cid:136)(cid:140) (cid:137)(cid:135)(cid:136)(cid:139) (cid:137)(cid:141)(cid:140)(cid:84)(cid:135)(cid:135)(cid:135) (cid:137)(cid:140)(cid:84)(cid:139)(cid:138)(cid:165) Other key management personnel T Robson (cid:137)(cid:135)(cid:136)(cid:140) (cid:136)(cid:141)(cid:140)(cid:84)(cid:142)(cid:136)(cid:137) (cid:137)(cid:135)(cid:136)(cid:139) (cid:136)(cid:135)(cid:164)(cid:84)(cid:141)(cid:164)(cid:139) – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – (cid:164)(cid:84)(cid:136)(cid:164)(cid:137) – – – – – – – – – – – – – – – – – – – – (cid:137)(cid:164)(cid:84)(cid:164)(cid:135)(cid:142) – (cid:108)(cid:139)(cid:136)(cid:84)(cid:142)(cid:135)(cid:164)(cid:109) (cid:164)(cid:137)(cid:84)(cid:142)(cid:142)(cid:139) (cid:138)(cid:142)(cid:84)(cid:142)(cid:165)(cid:165) (cid:137)(cid:165)(cid:84)(cid:136)(cid:165)(cid:141) (cid:138)(cid:142)(cid:84)(cid:142)(cid:165)(cid:165) (cid:137)(cid:165)(cid:84)(cid:136)(cid:165)(cid:141) (cid:138)(cid:136)(cid:84)(cid:138)(cid:164)(cid:140) – (cid:108)(cid:140)(cid:139)(cid:84)(cid:139)(cid:138)(cid:165)(cid:109) (cid:137)(cid:165)(cid:84)(cid:136)(cid:165)(cid:141) (cid:138)(cid:135)(cid:136)(cid:84)(cid:136)(cid:137)(cid:140) (cid:137)(cid:135)(cid:84)(cid:164)(cid:137)(cid:140) (cid:138)(cid:135)(cid:84)(cid:136)(cid:139)(cid:135) (cid:138)(cid:135)(cid:164)(cid:84)(cid:164)(cid:135)(cid:135) (cid:136)(cid:141)(cid:140)(cid:84)(cid:142)(cid:136)(cid:137) (cid:136)(cid:135)(cid:164)(cid:84)(cid:141)(cid:164)(cid:139) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:135)(cid:166) (cid:114) (cid:134) (cid:136) (cid:137) (cid:26)he non(cid:102)e(cid:63)ec(cid:60)tive directors waived a portion of their fees for a period d(cid:60)rin(cid:43) the (cid:64)ear ended (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:139) whilst f(cid:60)ndin(cid:43) opport(cid:60)nities were considered(cid:87) (cid:26)he (cid:8)irectors’ Retirement Scheme(cid:84) approved (cid:35)(cid:64) a meetin(cid:43) of shareholders(cid:84) was fro(cid:65)en in the (cid:64)ear ended (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:135)(cid:165) with no f(cid:60)rther provision (cid:35)ein(cid:43) made a(cid:273)er that date(cid:87) (cid:8)(cid:60)rin(cid:43) the period(cid:84) an amo(cid:60)nt of (cid:130)(cid:139)(cid:137)(cid:84)(cid:164)(cid:136)(cid:165) was paid to (cid:17)r (cid:22)earce for a (cid:35)ene(cid:41)t earned prior to (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:135)(cid:165)(cid:84) with a f(cid:60)rther (cid:130)(cid:136)(cid:135)(cid:139)(cid:84)(cid:135)(cid:139)(cid:165) (cid:35)ein(cid:43) waived (cid:35)(cid:64) (cid:17)r (cid:22)earce at retirement(cid:87) (cid:17)r (cid:29)illiams waived his entire entitlement of (cid:130)(cid:164)(cid:139)(cid:84)(cid:136)(cid:164)(cid:141) at retirement in Septem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:139)(cid:87) On (cid:137)(cid:139) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:139)(cid:84) (cid:17)s (cid:16)(cid:64)nda (cid:5)(cid:60)rne(cid:295) was appointed as (cid:17)ana(cid:43)in(cid:43) (cid:8)irector(cid:87) (cid:22)rior to that date she held the position of (cid:9)(cid:63)ploration (cid:17)ana(cid:43)er and was incl(cid:60)ded in Sipa’s (cid:15)e(cid:64) (cid:17)ana(cid:43)ement (cid:22)ersonnel (cid:43)ro(cid:60)pin(cid:43)(cid:87) On (cid:137)(cid:139) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:139)(cid:84) (cid:17)r (cid:8)oepel retired from the position of (cid:17)ana(cid:43)in(cid:43) (cid:8)irector and on that same date was appointed a (cid:18)on(cid:102)(cid:9)(cid:63)ec(cid:60)tive (cid:8)irector of the (cid:6)ompan(cid:64)(cid:87) (cid:17)r (cid:8)oepel resi(cid:43)ned from the position of (cid:18)on(cid:102)(cid:9)(cid:63)ec(cid:60)tive (cid:8)irector on (cid:136)(cid:137) Septem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:139)(cid:87) 32 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information Table 2: Compensation options: Granted and vested during the year (cid:12)istoricall(cid:64)(cid:84) lon(cid:43) term incentives were administered thro(cid:60)(cid:43)h participation in the Sipa Reso(cid:60)rces (cid:9)mplo(cid:64)ee Share Option (cid:22)lan (cid:108)the (cid:91)(cid:9)SO(cid:22)(cid:92)(cid:109)(cid:87) (cid:26)he (cid:9)SO(cid:22) was last approved (cid:35)(cid:64) mem(cid:35)ers at the (cid:137)(cid:140) (cid:18)ovem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:135) (cid:3)G(cid:17) in an e(cid:248)ort to meet the conditions of the (cid:3)SI(cid:6) class order for an eli(cid:43)i(cid:35)le scheme and for p(cid:60)rposes of (cid:16)istin(cid:43) R(cid:60)le (cid:141)(cid:87)(cid:136)(cid:87) (cid:18)o Options have vested or were (cid:43)ranted d(cid:60)rin(cid:43) the period or the previo(cid:60)s (cid:41)nancial (cid:64)ear and all lon(cid:43) term incentives had e(cid:63)pired witho(cid:60)t e(cid:63)ercise d(cid:60)rin(cid:43) the (cid:64)ear(cid:87) Table 3: (cid:28)alue of Compensation Options Awarded, Exercised and Lapsed During the (cid:31)ear (cid:26)here were no options awarded or e(cid:63)ercised d(cid:60)rin(cid:43) the c(cid:60)rrent or previo(cid:60)s (cid:64)ear(cid:87) (cid:26)here were no alterations to the terms and conditions of options awarded as rem(cid:60)neration since their award date(cid:87) Shares Provided on Exercise of Remuneration Options (cid:26)here were no shares provided on e(cid:63)ercise of rem(cid:60)neration options d(cid:60)rin(cid:43) the (cid:41)nancial (cid:64)ear ended (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140)(cid:87) Lapsed Options (cid:26)here were (cid:142)(cid:84)(cid:137)(cid:140)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) options which lapsed d(cid:60)rin(cid:43) the (cid:64)ear(cid:87) (cid:26)he(cid:64) had a nil val(cid:60)e at lapse date(cid:87) (cid:26)he followin(cid:43) options held (cid:35)(cid:64) (cid:15)e(cid:64) (cid:17)ana(cid:43)ement (cid:22)ersonnel lapsed d(cid:60)rin(cid:43) the period(cid:87) 3(cid:135) (cid:14)une 2(cid:135)(cid:136)5 Key Management Personnel T Robson M Doepel# Num(cid:35)er of options (cid:62)(cid:44)ic(cid:44) (cid:163)apsed Date of (cid:11)rant Date of (cid:9)(cid:63)piry (cid:9)(cid:63)ercise (cid:22)rice (cid:136)(cid:84)(cid:135)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:138)(cid:135)(cid:99)(cid:142)(cid:99)(cid:136)(cid:135) (cid:137)(cid:142)(cid:99)(cid:142)(cid:99)(cid:136)(cid:139) (cid:137)(cid:84)(cid:135)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:137)(cid:140)(cid:99)(cid:136)(cid:136)(cid:99)(cid:136)(cid:135) (cid:137)(cid:139)(cid:99)(cid:136)(cid:136)(cid:99)(cid:136)(cid:139) (cid:130)(cid:135)(cid:87)(cid:136)(cid:141)(cid:140) (cid:130)(cid:135)(cid:87)(cid:137)(cid:136) (cid:134) (cid:6)eased to (cid:35)e a (cid:15)e(cid:64) (cid:17)ana(cid:43)ement (cid:22)ersonnel prior to lapse of the options(cid:87) Other (cid:26)he (cid:6)ompan(cid:64) prohi(cid:35)its (cid:15)e(cid:64) (cid:17)ana(cid:43)ement (cid:22)ersonnel from enterin(cid:43) into an(cid:64) arran(cid:43)ement which has the e(cid:248)ect of limitin(cid:43) their e(cid:63)pos(cid:60)re in relation to the ris(cid:48) inherent in iss(cid:60)ed options(cid:87) (cid:26)he (cid:6)ompan(cid:64)’s Share (cid:26)radin(cid:43) (cid:22)olic(cid:64) (cid:43)overns when Sipa emplo(cid:64)ees(cid:84) directors(cid:84) contractors(cid:84) and cons(cid:60)ltants ma(cid:64) deal in the (cid:6)ompan(cid:64)’s sec(cid:60)rities and the proced(cid:60)res that m(cid:60)st (cid:35)e followed for s(cid:60)ch dealin(cid:43)s(cid:87) (cid:3) cop(cid:64) of the polic(cid:64) is located at sipa(cid:87)com(cid:87)a(cid:60)(cid:87) Service Agreements (cid:6)ompensation and other terms of emplo(cid:64)ment for the (cid:17)ana(cid:43)in(cid:43) (cid:8)irector and (cid:15)e(cid:64) (cid:17)ana(cid:43)ement (cid:22)ersonnel are formalised in service a(cid:43)reements(cid:87) (cid:9)ach of these a(cid:43)reements provide for the provision of cash salar(cid:64) and participation(cid:84) when eli(cid:43)i(cid:35)le(cid:84) in the Sipa Reso(cid:60)rces (cid:16)imited (cid:9)mplo(cid:64)ee Option (cid:22)lan(cid:87) Other ma(cid:47)or provisions are set o(cid:60)t (cid:35)elow(cid:87) L M Burnett, Exploration Manager (5/6/14 – 24/7/14), Managing Director (24/7/14 – Present) – (cid:26)erm of a(cid:43)reement is contin(cid:60)in(cid:43)(cid:87) – (cid:5)ase salar(cid:64) of (cid:130)(cid:137)(cid:141)(cid:140)(cid:84)(cid:135)(cid:135)(cid:135) and (cid:130)(cid:137)(cid:164)(cid:84)(cid:136)(cid:137)(cid:140) s(cid:60)perann(cid:60)ation(cid:87) (cid:3) res(cid:60)lt of a performance review cond(cid:60)cted in (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:140) has led to an increase in the (cid:35)ase salar(cid:64) and s(cid:60)perann(cid:60)ation to (cid:130)(cid:138)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) and (cid:130)(cid:137)(cid:165)(cid:84)(cid:140)(cid:135)(cid:135) respectivel(cid:64)(cid:84) e(cid:248)ective (cid:137)(cid:139) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:140)(cid:87) – (cid:26)ermination notice of (cid:164) months (cid:35)(cid:64) the compan(cid:64) or (cid:138) months (cid:35)(cid:64) the (cid:17)ana(cid:43)in(cid:43) (cid:8)irector(cid:87) – (cid:22)a(cid:64)ment of termination (cid:35)ene(cid:41)t on earl(cid:64) termination (cid:35)(cid:64) the emplo(cid:64)er other than for (cid:43)ross miscond(cid:60)ct e(cid:55)(cid:60)al to (cid:164) months the ann(cid:60)al rem(cid:60)neration pac(cid:48)a(cid:43)e(cid:87) – (cid:17)rs (cid:5)(cid:60)rne(cid:295) ma(cid:64) terminate the a(cid:43)reement (cid:35)(cid:64) (cid:136) months notice in the event she is demoted from her position witho(cid:60)t (cid:43)ood ca(cid:60)se(cid:84) or is re(cid:55)(cid:60)ested(cid:84) witho(cid:60)t (cid:43)ood ca(cid:60)se to ass(cid:60)me responsi(cid:35)ilities or perform tas(cid:48)s not reasona(cid:35)l(cid:64) consistent with her position(cid:87) In this instance(cid:84) she will(cid:84) s(cid:60)(cid:35)(cid:47)ect to shareholder approval if necessar(cid:64)(cid:84) (cid:35)e entitled to a pa(cid:64)o(cid:60)t of (cid:136) (cid:64)ear (cid:35)ase salar(cid:64)(cid:87) Annual Report 2015 33 Financial Report Directors’ Report continued T A Robson, Chief Financial Officer and Company Secretary (cid:8)(cid:60)rin(cid:43) the period (cid:17)s Ro(cid:35)son cons(cid:60)lted to the (cid:6)ompan(cid:64) for an ho(cid:60)rl(cid:64) rate(cid:87) On (cid:136) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:140)(cid:84) (cid:17)s Ro(cid:35)son entered into an emplo(cid:64)ment a(cid:43)reement with the (cid:6)ompan(cid:64)(cid:84) the si(cid:43)ni(cid:41)cant terms of which are follows(cid:86) – (cid:26)erm of a(cid:43)reement is contin(cid:60)in(cid:43) and is (cid:35)ased on (cid:87)(cid:165) of a f(cid:60)ll time e(cid:55)(cid:60)ivalent emplo(cid:64)ee(cid:87) – (cid:5)ase salar(cid:64) of (cid:130)(cid:136)(cid:165)(cid:165)(cid:84)(cid:135)(cid:135)(cid:135) and (cid:130)(cid:136)(cid:141)(cid:84)(cid:165)(cid:164)(cid:135) s(cid:60)perann(cid:60)ation(cid:87) – (cid:26)ermination notice of (cid:138) months (cid:35)(cid:64) either the compan(cid:64) or (cid:17)s Ro(cid:35)son(cid:87) – (cid:17)s Ro(cid:35)son ma(cid:64) terminate the a(cid:43)reement (cid:35)(cid:64) (cid:136) months notice in the event she is demoted from her position witho(cid:60)t (cid:43)ood ca(cid:60)se(cid:84) or is re(cid:55)(cid:60)ested(cid:84) witho(cid:60)t (cid:43)ood ca(cid:60)se to ass(cid:60)me responsi(cid:35)ilities or perform tas(cid:48)s not reasona(cid:35)l(cid:64) consistent with her position(cid:87) In this instance(cid:84) she will(cid:84) s(cid:60)(cid:35)(cid:47)ect to shareholder approval if necessar(cid:64)(cid:84) (cid:35)e entitled to a pa(cid:64)o(cid:60)t of (cid:164) months (cid:35)ase salar(cid:64)(cid:87) M G Doepel, Managing Director (Until retirement on 24 July 2014) – (cid:26)erm of a(cid:43)reement(cid:84) (cid:136)(cid:99)(cid:136)(cid:137)(cid:99)(cid:136)(cid:135) (cid:103) (cid:136)(cid:99)(cid:136)(cid:137)(cid:99)(cid:136)(cid:138)(cid:84) and contin(cid:60)in(cid:43) monthl(cid:64) (cid:60)ntil retirement on (cid:137)(cid:139) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:139)(cid:87) – (cid:5)ase salar(cid:64) of (cid:130)(cid:137)(cid:141)(cid:140)(cid:84)(cid:135)(cid:135)(cid:135) and (cid:130)(cid:137)(cid:140)(cid:84)(cid:139)(cid:138)(cid:141) s(cid:60)perann(cid:60)ation(cid:87) – (cid:26)ermination notice of (cid:138) months (cid:35)(cid:64) either the compan(cid:64) or the (cid:17)ana(cid:43)in(cid:43) (cid:8)irector(cid:87) – (cid:22)a(cid:64)ment of termination (cid:35)ene(cid:41)t on earl(cid:64) termination (cid:35)(cid:64) the emplo(cid:64)er other than for (cid:43)ross miscond(cid:60)ct e(cid:55)(cid:60)al to the ann(cid:60)al rem(cid:60)neration pac(cid:48)a(cid:43)e(cid:87) Table 4: Share Holdings of Key Management Personnel (Including Nominees) (cid:26)he n(cid:60)m(cid:35)ers of shares in the compan(cid:64) held d(cid:60)rin(cid:43) the (cid:41)nancial (cid:64)ear (cid:35)(cid:64) each director of Sipa Reso(cid:60)rces (cid:16)imited and other (cid:48)e(cid:64) mana(cid:43)ement personnel of the Gro(cid:60)p(cid:84) incl(cid:60)din(cid:43) their personall(cid:64) related parties(cid:84) are set o(cid:60)t (cid:35)elow(cid:87) (cid:26)here were no shares (cid:43)ranted d(cid:60)rin(cid:43) the reportin(cid:43) period as compensation(cid:87) 2015 Directors (cid:6) (cid:17)cGown (cid:8) Goodin(cid:43) (cid:15) Field (cid:22) (cid:15)ile(cid:64) (cid:16) (cid:5)(cid:60)rnett Key Management Personnel T Robson Former Directors and Key Management Personnel (cid:22) (cid:22)earce M Doepel (cid:8) (cid:29)illiams Ba(cid:163)ance at t(cid:44)e start of t(cid:44)e year – (cid:137)(cid:140)(cid:165)(cid:84)(cid:164)(cid:142)(cid:135) (cid:141)(cid:140)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) – (cid:138)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:138)(cid:84)(cid:135)(cid:142)(cid:164)(cid:84)(cid:136)(cid:136)(cid:165) (cid:136)(cid:84)(cid:141)(cid:139)(cid:137)(cid:84)(cid:135)(cid:165)(cid:137) (cid:136)(cid:135)(cid:84)(cid:165)(cid:165)(cid:165)(cid:84)(cid:165)(cid:135)(cid:135) (cid:136)(cid:84)(cid:135)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) Recei(cid:61)ed during t(cid:44)e year on e(cid:63)ercise of options Ac(cid:55)uisition pursuant to (cid:22)(cid:163)acement and (cid:25)(cid:44)are (cid:22)urc(cid:44)ase (cid:22)(cid:163)an^ (cid:19)t(cid:44)er c(cid:44)anges during t(cid:44)e year Ba(cid:163)ance at t(cid:44)e end of t(cid:44)e year – – – – – – – – – – (cid:136)(cid:138)(cid:141)(cid:84)(cid:142)(cid:138)(cid:136) – – – – – (cid:138)(cid:142)(cid:164)(cid:84)(cid:164)(cid:137)(cid:136) (cid:141)(cid:140)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) – – (cid:141)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135)(cid:114) (cid:141)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) – (cid:138)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:138)(cid:84)(cid:135)(cid:142)(cid:164)(cid:84)(cid:136)(cid:136)(cid:165) – (cid:108)(cid:136)(cid:84)(cid:141)(cid:139)(cid:137)(cid:84)(cid:135)(cid:165)(cid:137)(cid:109)# – (cid:108)(cid:136)(cid:135)(cid:84)(cid:165)(cid:165)(cid:165)(cid:84)(cid:165)(cid:135)(cid:135)(cid:109)# – (cid:108)(cid:136)(cid:84)(cid:135)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135)(cid:109)# – – – (cid:114) (cid:119) Incl(cid:60)des Shares held (cid:35)(cid:64) (cid:17)r (cid:15)ile(cid:64) at the date of his appointment and shares p(cid:60)rchased on mar(cid:48)et d(cid:60)rin(cid:43) the period(cid:87) Relates to shares p(cid:60)rchased (cid:35)(cid:64) (cid:8)irectors at fair val(cid:60)e thro(cid:60)(cid:43)h the placement and share p(cid:60)rchase plan o(cid:248)er (cid:60)nderta(cid:48)en d(cid:60)rin(cid:43) the period(cid:87) (cid:8)irectors were actin(cid:43) as shareholders and no shares were iss(cid:60)ed as compensation for services provided(cid:87) (cid:18)ote the ac(cid:55)(cid:60)isition (cid:60)nder the placement and share p(cid:60)rchase plan o(cid:248)er was made on (cid:137) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:140) and therefore is not incl(cid:60)ded in the a(cid:35)ove ta(cid:35)le(cid:87) (cid:134) (cid:6)eased to (cid:35)e a director d(cid:60)rin(cid:43) the period and as s(cid:60)ch no f(cid:60)rther reportin(cid:43) is re(cid:55)(cid:60)ired for these holdin(cid:43)s(cid:87) 34 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information Table 5: Option holdings of Key Management Personnel (including nominees) 3(cid:135) (cid:14)une 2(cid:135)(cid:136)5 Directors (cid:6) (cid:17)cGown (cid:8) Goodin(cid:43) (cid:15) Field (cid:22) (cid:15)ile(cid:64) (cid:16) (cid:5)(cid:60)rnett Ba(cid:163)ance at start of t(cid:44)e year – (cid:164)(cid:139)(cid:84)(cid:164)(cid:141)(cid:138) (cid:141)(cid:140)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) – (cid:138)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) Key Management Personnel T Robson (cid:136)(cid:84)(cid:135)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) Former Directors and Key Management Personnel (cid:22) (cid:22)earce# M Doepel# (cid:8) (cid:29)illiams# (cid:139)(cid:138)(cid:140)(cid:84)(cid:140)(cid:137)(cid:136) (cid:141)(cid:84)(cid:141)(cid:136)(cid:139)(cid:84)(cid:137)(cid:165)(cid:164) (cid:136)(cid:84)(cid:135)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:11)ranted as remuneration (cid:19)ptions e(cid:63)ercised Lapsed (cid:62)it(cid:44)out e(cid:63)ercise Ba(cid:163)ance at t(cid:44)e end of t(cid:44)e year (cid:28)ested (cid:108)(cid:9)(cid:63)ercisa(cid:35)(cid:163)e(cid:109) (cid:27)n(cid:61)ested (cid:108)Non(cid:102) e(cid:63)ercisa(cid:35)(cid:163)e(cid:109) – – – – – – – – – – – – – – – – – – – (cid:164)(cid:139)(cid:84)(cid:164)(cid:141)(cid:138) (cid:164)(cid:139)(cid:84)(cid:164)(cid:141)(cid:138) (cid:141)(cid:140)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:141)(cid:140)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:138)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:138)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) – (cid:108)(cid:136)(cid:84)(cid:135)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135)(cid:109) – – – (cid:108)(cid:139)(cid:138)(cid:140)(cid:84)(cid:140)(cid:137)(cid:136)(cid:109)# (cid:108)(cid:141)(cid:84)(cid:141)(cid:136)(cid:139)(cid:84)(cid:137)(cid:165)(cid:164)(cid:109)# (cid:108)(cid:136)(cid:84)(cid:135)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135)(cid:109)# – – – – – – – – – – – – – – – – – # (cid:6)eased to (cid:35)e a director d(cid:60)rin(cid:43) the period and as s(cid:60)ch nor f(cid:60)rther reportin(cid:43) is re(cid:55)(cid:60)ired for these holdin(cid:43)s(cid:87) Other Transactions with Key Management Personnel (cid:17)r (cid:22)a(cid:60)l (cid:15)ile(cid:64)(cid:84) a director of the compan(cid:64)(cid:84) is principal of (cid:30)a(cid:43)(cid:60)s (cid:22)t(cid:64) (cid:16)td which provided cons(cid:60)ltin(cid:43) to the (cid:6)ompan(cid:64)(cid:87) (cid:3)ll fees paid to (cid:30)a(cid:43)(cid:60)s are at competitive mar(cid:48)et rates(cid:87) (cid:26)he total services reco(cid:43)nised as an e(cid:63)pense for the (cid:64)ear amo(cid:60)nted to (cid:130)(cid:164)(cid:84)(cid:135)(cid:135)(cid:135) (cid:108)(cid:137)(cid:135)(cid:136)(cid:139)(cid:86) (cid:18)il(cid:109)(cid:87) (cid:3)s at (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140) a (cid:35)alance of (cid:130)(cid:137)(cid:84)(cid:138)(cid:136)(cid:136) remained o(cid:60)tstandin(cid:43) (cid:108)(cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:139)(cid:86) (cid:18)il(cid:109)(cid:87) (cid:17)r (cid:8) (cid:14) (cid:29)illiams(cid:84) a former director of the compan(cid:64)(cid:84) is a commercial co(cid:60)nsel with the le(cid:43)al practice (cid:29)illiams and (cid:12)(cid:60)(cid:43)hes (cid:22)t(cid:64) (cid:16)td which provides le(cid:43)al advice to the compan(cid:64)(cid:87) (cid:3)ll transactions with (cid:29)illiams and (cid:12)(cid:60)(cid:43)hes are at competitive mar(cid:48)et rates and performed primaril(cid:64) (cid:35)(cid:64) sta(cid:248) of (cid:29)illiams and (cid:12)(cid:60)(cid:43)hes (cid:22)t(cid:64) (cid:16)td(cid:87) (cid:26)he total services reco(cid:43)nised as an e(cid:63)pense for the (cid:64)ear amo(cid:60)nted to (cid:130)(cid:137)(cid:84)(cid:139)(cid:165)(cid:137) (cid:108)(cid:137)(cid:135)(cid:136)(cid:139)(cid:86) (cid:130)(cid:140)(cid:84)(cid:142)(cid:142)(cid:165)(cid:109)(cid:87) (cid:3)s at (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140) a (cid:35)alance of (cid:130)(cid:18)il remained o(cid:60)tstandin(cid:43) (cid:108)(cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:139)(cid:86) (cid:18)il(cid:109)(cid:87) (cid:17)r (cid:17)cGown(cid:84) the (cid:6)hairman and a director of the compan(cid:64)(cid:84) is an e(cid:63)ec(cid:60)tive director of the corporate advisor(cid:64) (cid:35)(cid:60)siness (cid:18)ew (cid:12)olland (cid:6)apital (cid:22)t(cid:64) (cid:16)td(cid:87) (cid:26)hro(cid:60)(cid:43)h his role as e(cid:63)ec(cid:60)tive director of (cid:18)ew (cid:12)olland (cid:6)apital (cid:22)t(cid:64) (cid:16)td(cid:84) (cid:17)r (cid:17)cGown has (cid:35)een cons(cid:60)ltin(cid:43) to the (cid:6)ompan(cid:64) since Octo(cid:35)er (cid:137)(cid:135)(cid:136)(cid:139)(cid:87) (cid:8)(cid:60)rin(cid:43) the period(cid:84) he was paid (cid:130)(cid:138)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) for those services (cid:108)(cid:137)(cid:135)(cid:136)(cid:139)(cid:86) (cid:18)il(cid:109)(cid:84) all of which were earned prior to his appointment(cid:87) (cid:18)o fees have (cid:35)een paid in accordance with the mandate since appointment in (cid:17)arch (cid:137)(cid:135)(cid:136)(cid:140)(cid:87) (cid:3)s at (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140) a (cid:35)alance of (cid:130)(cid:18)il remained o(cid:60)tstandin(cid:43) (cid:108)(cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:139)(cid:86) (cid:18)il(cid:109)(cid:87) This is the end of the Remuneration Report Annual Report 2015 35 Financial Report Directors’ Report continued (cid:8)irectors(cid:90) Attendance at Meetings Number of meetings held Number of meetings attended (cid:6) (cid:17)cGown (cid:108)(cid:3)ppointed (cid:136)(cid:136) (cid:17)arch (cid:137)(cid:135)(cid:136)(cid:140)(cid:109) (cid:16) (cid:5)(cid:60)rnett (cid:108)(cid:3)ppointed (cid:137)(cid:140) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:139)(cid:109) (cid:8) Goodin(cid:43) (cid:15) Field (cid:22) (cid:15)ile(cid:64) (cid:108)(cid:3)ppointed (cid:136)(cid:141) Septem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:139)(cid:109) (cid:22) (cid:22)earce (cid:108)Retired (cid:136)(cid:136) (cid:17)arch (cid:137)(cid:135)(cid:136)(cid:140)(cid:109) (cid:17) (cid:8)oepel (cid:108)Resi(cid:43)ned (cid:136)(cid:137) Septem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:139)(cid:109) (cid:8) (cid:29)illiams (cid:108)Resi(cid:43)ned (cid:136)(cid:141) Septem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:139)(cid:109) Directors’ Meetings (cid:9)(cid:163)igi(cid:35)(cid:163)e to Attend Directors’ Meetings Audit Committee Nomination and Compensation Committee (cid:136)(cid:137) (cid:137) (cid:136)(cid:136) (cid:136)(cid:135) (cid:136)(cid:137) (cid:142) (cid:142) (cid:136) (cid:138) (cid:137) (cid:18)(cid:99)(cid:3) (cid:18)(cid:99)(cid:3) (cid:137) (cid:18)(cid:99)(cid:3) (cid:136)(cid:99)(cid:136) (cid:18)(cid:99)(cid:3) (cid:18)(cid:99)(cid:3) (cid:136)(cid:99)(cid:136) (cid:136) (cid:136)(cid:99)(cid:136) (cid:18)(cid:99)(cid:3) (cid:18)(cid:99)(cid:3) (cid:136)(cid:99)(cid:136) – – (cid:18)(cid:99)(cid:3) (cid:18)(cid:99)(cid:3) (cid:137) (cid:136)(cid:136) (cid:136)(cid:137) (cid:136)(cid:137) (cid:142) (cid:142) (cid:137) (cid:138) Lead Auditor(cid:90)s (cid:13)ndependence (cid:8)ec(cid:163)aration (cid:27)nder (cid:25)ection 3(cid:135)(cid:141)C of t(cid:44)e Corporations Act 2(cid:135)(cid:135)(cid:136) (cid:26)he lead a(cid:60)ditor’s independence declaration (cid:60)nder Section (cid:138)(cid:135)(cid:141)c of the (cid:6)orporations (cid:3)ct (cid:137)(cid:135)(cid:135)(cid:136) forms part of the (cid:8)irectors’ Report and is set o(cid:60)t on the followin(cid:43) pa(cid:43)e(cid:87) Non-Audit Services (cid:26)here were no non(cid:102)a(cid:60)dit services provided (cid:35)(cid:64) the entit(cid:64)’s a(cid:60)ditor(cid:84) (cid:9)rnst (cid:123) (cid:31)o(cid:60)n(cid:43)(cid:87) (cid:26)he directors are satis(cid:41)ed that the provision of non(cid:102)a(cid:60)dit services is compati(cid:35)le with the (cid:43)eneral standard of independence for a(cid:60)ditors imposed (cid:35)(cid:64) the (cid:6)orporations (cid:3)ct(cid:87) (cid:26)he nat(cid:60)re and scope of each t(cid:64)pe of non(cid:102)a(cid:60)dit service provided means that a(cid:60)ditor independence was not compromised(cid:87) Si(cid:43)ned in accordance with a resol(cid:60)tion of the directors(cid:87) (cid:16) (cid:17) (cid:5)(cid:60)rne(cid:295) Managing (cid:8)irector (cid:8)ated (cid:137)(cid:137) Septem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:140) 36 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information Auditor’s Independence Declaration Ernst & Young 11 Mounts Bay Road Perth WA 6000 Australia GPO Box M939 Perth WA 6843 Tel: +61 8 9429 2222 Fax: +61 8 9429 2436 ey.com/au Auditor’s Independence Declaration to the Directors of Sipa Resources Limited In relation to our audit of the financial report of Sipa Resources Limited for the financial year ended 30 June 2015, to the best of my knowledge and belief, there have been no contraventions of the auditor independence requirements of the Corporations Act 2001 or any applicable code of professional conduct. Ernst & Young G Lotter Partner 22 September 2015 A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation GL:ET:SIPA:007 Annual Report 2015 37 Financial Report Consolidated Statement of Comprehensive Income for the year ended 30 June 2015 Reven(cid:60)e Other income Gain on sale of (cid:26)had(cid:60)na pro(cid:47)ect (cid:16)oss on disposal of propert(cid:64)(cid:84) plant and e(cid:55)(cid:60)ipment (cid:9)(cid:63)ploration e(cid:63)pendit(cid:60)re (cid:3)dministrative e(cid:63)penses Impairment loss on availa(cid:35)le for sale assets Share of net loss of (cid:47)ointl(cid:64) controlled entit(cid:64) Loss (cid:35)efore income ta(cid:63) Income ta(cid:63) e(cid:63)pense Net (cid:163)oss for t(cid:44)e year Items that may subsequently be classified through profit and loss (cid:9)(cid:63)chan(cid:43)e differences arisin(cid:43) on translation of forei(cid:43)n operations (cid:26)ota(cid:163) compre(cid:44)ensi(cid:61)e (cid:163)oss for t(cid:44)e year Loss per s(cid:44)are (cid:108)cents per s(cid:44)are(cid:109) (cid:103) (cid:5)asic loss per share for the (cid:64)ear (cid:103) (cid:8)il(cid:60)ted loss per share for the (cid:64)ear Note (cid:138) (cid:138) (cid:138) (cid:138) Consolidated 2015 $ 2014 $ (cid:140)(cid:165)(cid:84)(cid:140)(cid:141)(cid:135) (cid:136)(cid:137)(cid:135)(cid:84)(cid:165)(cid:137)(cid:142) (cid:137)(cid:135)(cid:136)(cid:84)(cid:141)(cid:164)(cid:137) (cid:165)(cid:84)(cid:136)(cid:135)(cid:141) (cid:137)(cid:84)(cid:137)(cid:137)(cid:136)(cid:84)(cid:164)(cid:139)(cid:137) (cid:108)(cid:137)(cid:142)(cid:84)(cid:135)(cid:140)(cid:138)(cid:109) – – (cid:108)(cid:138)(cid:84)(cid:138)(cid:164)(cid:138)(cid:84)(cid:136)(cid:135)(cid:141)(cid:109) (cid:108)(cid:136)(cid:84)(cid:142)(cid:138)(cid:141)(cid:84)(cid:140)(cid:137)(cid:140)(cid:109) (cid:108)(cid:136)(cid:84)(cid:164)(cid:165)(cid:165)(cid:84)(cid:141)(cid:135)(cid:136)(cid:109) (cid:108)(cid:136)(cid:84)(cid:164)(cid:164)(cid:137)(cid:84)(cid:140)(cid:135)(cid:135)(cid:109) (cid:108)(cid:137)(cid:84)(cid:165)(cid:135)(cid:135)(cid:109) – (cid:137)(cid:137) (cid:108)(cid:142)(cid:137)(cid:140)(cid:84)(cid:136)(cid:137)(cid:135)(cid:109) (cid:108)(cid:136)(cid:84)(cid:135)(cid:138)(cid:138)(cid:84)(cid:141)(cid:139)(cid:136)(cid:109) (3,526,807) (4,504,830) (cid:139) – – (3,526,807) (4,504,830) 15,103 30,285 (3,511,704) (4,474,545) (cid:136)(cid:164) (cid:136)(cid:164) (cid:108)(cid:135)(cid:87)(cid:140)(cid:141)(cid:109) (cid:108)(cid:135)(cid:87)(cid:140)(cid:141)(cid:109) (cid:108)(cid:135)(cid:87)(cid:165)(cid:135)(cid:109) (cid:108)(cid:135)(cid:87)(cid:165)(cid:135)(cid:109) (cid:26)he a(cid:35)ove (cid:6)onsolidated Statement of (cid:6)omprehensive Income sho(cid:60)ld (cid:35)e read in con(cid:47)(cid:60)nction with the accompan(cid:64)in(cid:43) notes(cid:87) 38 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information Consolidated Statement of Financial Position as at 30 June 2015 ASSETS Current Assets (cid:6)ash and cash e(cid:55)(cid:60)ivalents (cid:26)erm deposits reserved for reha(cid:35)ilitation (cid:26)rade and other receiva(cid:35)les (cid:22)repa(cid:64)ments (cid:26)ota(cid:163) Current Assets Non(cid:102)Current Assets (cid:3)vaila(cid:35)le(cid:102)for(cid:102)sale financial assets Investment in (cid:47)ointl(cid:64) controlled entit(cid:64) (cid:9)(cid:63)ploration and eval(cid:60)ation Other financial assets (cid:22)ropert(cid:64)(cid:84) plant and e(cid:55)(cid:60)ipment (cid:26)ota(cid:163) Non(cid:102)Current Assets (cid:26)(cid:19)(cid:26)AL A(cid:25)(cid:25)(cid:9)(cid:26)(cid:25) LIABILITIES Current Lia(cid:35)i(cid:163)ities (cid:26)rade and other pa(cid:64)a(cid:35)les (cid:22)rovisions (cid:26)ota(cid:163) Current Lia(cid:35)i(cid:163)ities Non(cid:102)Current Lia(cid:35)i(cid:163)ities (cid:22)rovisions (cid:26)ota(cid:163) Non(cid:102)Current Lia(cid:35)i(cid:163)ities (cid:26)(cid:19)(cid:26)AL L(cid:13)AB(cid:13)L(cid:13)(cid:26)(cid:13)(cid:9)(cid:25) N(cid:9)(cid:26) A(cid:25)(cid:25)(cid:9)(cid:26)(cid:25) EQUITY (cid:6)ontri(cid:35)(cid:60)ted e(cid:55)(cid:60)it(cid:64) (cid:9)(cid:55)(cid:60)it(cid:64) (cid:35)enefits reserve Forei(cid:43)n c(cid:60)rrenc(cid:64) translation reserve (cid:3)cc(cid:60)m(cid:60)lated losses (cid:26)(cid:19)(cid:26)AL (cid:9)(cid:23)(cid:27)(cid:13)(cid:26)(cid:31) Note Consolidated 2015 $ 2014 $ (cid:140) (cid:164) (cid:141) (cid:165) (cid:137)(cid:136) (cid:136)(cid:136) (cid:142) (cid:136)(cid:135) (cid:136)(cid:137) (cid:136)(cid:138) (cid:136)(cid:138) (cid:164)(cid:84)(cid:137)(cid:138)(cid:138)(cid:84)(cid:138)(cid:138)(cid:164) (cid:139)(cid:84)(cid:135)(cid:136)(cid:138)(cid:84)(cid:165)(cid:136)(cid:139) (cid:139)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:137)(cid:137)(cid:84)(cid:164)(cid:139)(cid:139) (cid:136)(cid:135)(cid:84)(cid:164)(cid:142)(cid:141) (cid:136)(cid:164)(cid:137)(cid:84)(cid:138)(cid:164)(cid:165) (cid:165)(cid:135)(cid:84)(cid:136)(cid:142)(cid:136) (cid:138)(cid:140)(cid:84)(cid:137)(cid:139)(cid:164) (cid:164)(cid:84)(cid:138)(cid:135)(cid:164)(cid:84)(cid:164)(cid:141)(cid:141) (cid:139)(cid:84)(cid:137)(cid:142)(cid:136)(cid:84)(cid:164)(cid:136)(cid:142) (cid:140)(cid:84)(cid:137)(cid:135)(cid:135) (cid:165)(cid:84)(cid:135)(cid:135)(cid:135) – (cid:136)(cid:136)(cid:137)(cid:84)(cid:165)(cid:164)(cid:140) (cid:140)(cid:165)(cid:136)(cid:84)(cid:135)(cid:138)(cid:141) – (cid:139)(cid:139)(cid:84)(cid:137)(cid:139)(cid:140) (cid:139)(cid:139)(cid:84)(cid:137)(cid:139)(cid:140) (cid:137)(cid:138)(cid:138)(cid:84)(cid:137)(cid:140)(cid:140) (cid:137)(cid:142)(cid:140)(cid:84)(cid:135)(cid:138)(cid:165) (cid:165)(cid:164)(cid:138)(cid:84)(cid:141)(cid:138)(cid:141) (cid:139)(cid:164)(cid:135)(cid:84)(cid:136)(cid:139)(cid:165) (cid:141)(cid:84)(cid:136)(cid:141)(cid:135)(cid:84)(cid:139)(cid:136)(cid:139) (cid:139)(cid:84)(cid:141)(cid:140)(cid:136)(cid:84)(cid:141)(cid:164)(cid:141) (cid:138)(cid:136)(cid:139)(cid:84)(cid:135)(cid:139)(cid:138) (cid:138)(cid:142)(cid:140)(cid:84)(cid:140)(cid:135)(cid:140) (cid:137)(cid:140)(cid:142)(cid:84)(cid:142)(cid:164)(cid:142) (cid:140)(cid:141)(cid:136)(cid:84)(cid:136)(cid:165)(cid:139) (cid:140)(cid:141)(cid:139)(cid:84)(cid:135)(cid:136)(cid:137) (cid:142)(cid:164)(cid:164)(cid:84)(cid:164)(cid:165)(cid:142) (cid:139)(cid:138)(cid:84)(cid:137)(cid:136)(cid:141) (cid:139)(cid:138)(cid:84)(cid:137)(cid:136)(cid:141) (cid:139)(cid:140)(cid:84)(cid:135)(cid:136)(cid:137) (cid:139)(cid:140)(cid:84)(cid:135)(cid:136)(cid:137) (cid:164)(cid:136)(cid:141)(cid:84)(cid:137)(cid:137)(cid:142) (cid:136)(cid:84)(cid:135)(cid:136)(cid:136)(cid:84)(cid:141)(cid:135)(cid:136) (cid:164)(cid:84)(cid:140)(cid:140)(cid:138)(cid:84)(cid:136)(cid:165)(cid:140) (cid:138)(cid:84)(cid:141)(cid:139)(cid:135)(cid:84)(cid:135)(cid:164)(cid:164) (cid:136)(cid:139) (cid:142)(cid:142)(cid:84)(cid:139)(cid:142)(cid:139)(cid:84)(cid:164)(cid:140)(cid:137) (cid:142)(cid:138)(cid:84)(cid:136)(cid:164)(cid:142)(cid:84)(cid:165)(cid:137)(cid:142) (cid:136)(cid:84)(cid:137)(cid:135)(cid:138)(cid:84)(cid:135)(cid:138)(cid:139) (cid:136)(cid:84)(cid:137)(cid:135)(cid:138)(cid:84)(cid:135)(cid:138)(cid:139) (cid:108)(cid:136)(cid:137)(cid:84)(cid:141)(cid:165)(cid:141)(cid:109) (cid:108)(cid:137)(cid:141)(cid:84)(cid:165)(cid:142)(cid:135)(cid:109) (cid:108)(cid:142)(cid:139)(cid:84)(cid:136)(cid:138)(cid:136)(cid:84)(cid:141)(cid:136)(cid:139)(cid:109) (cid:108)(cid:142)(cid:135)(cid:84)(cid:164)(cid:135)(cid:139)(cid:84)(cid:142)(cid:135)(cid:141)(cid:109) (cid:164)(cid:84)(cid:140)(cid:140)(cid:138)(cid:84)(cid:136)(cid:165)(cid:140) (cid:138)(cid:84)(cid:141)(cid:139)(cid:135)(cid:84)(cid:135)(cid:164)(cid:164) (cid:26)he a(cid:35)ove (cid:6)onsolidated Statement of Financial (cid:22)osition sho(cid:60)ld (cid:35)e read in con(cid:47)(cid:60)nction with the accompan(cid:64)in(cid:43) notes(cid:87) Annual Report 2015 39 Financial Report Consolidated Statement of Cash Flows for the year ended 30 June 2015 Cash Flows From Operating Activities (cid:22)a(cid:64)ments to s(cid:60)ppliers and emplo(cid:64)ees (cid:9)(cid:63)pendit(cid:60)re on e(cid:63)ploration interests Reim(cid:35)(cid:60)rsement of e(cid:63)ploration from other parties Receipts from technical service reven(cid:60)e Interest received Receipt of other miscellaneo(cid:60)s Net Cas(cid:44) used in operating acti(cid:61)ities Cash Flows From Investing Activities (cid:22)roceeds from sale of e(cid:63)ploration tenements (cid:22)a(cid:64)ment for p(cid:60)rchases of propert(cid:64)(cid:84) plant and e(cid:55)(cid:60)ipment (cid:22)roceeds received for sale of propert(cid:64)(cid:84) plant and e(cid:55)(cid:60)ipment (cid:6)ash released from term deposits reserved for reha(cid:35)ilitation (cid:8)is(cid:35)(cid:60)rsement to (cid:47)ointl(cid:64) controlled entit(cid:64) Net cas(cid:44) pro(cid:61)ided (cid:35)y(cid:99)(cid:108)used in(cid:109) in(cid:61)esting acti(cid:61)ities Cash Flows From Financing Activities (cid:22)roceeds from iss(cid:60)ance of shares Share iss(cid:60)e e(cid:63)penses Net cas(cid:44) pro(cid:61)ided (cid:35)y financing acti(cid:61)ities Note Consolidated 2015 $ 2014 $ (cid:108)(cid:136)(cid:84)(cid:141)(cid:141)(cid:136)(cid:84)(cid:136)(cid:142)(cid:142)(cid:109) (cid:108)(cid:136)(cid:84)(cid:140)(cid:142)(cid:140)(cid:84)(cid:137)(cid:140)(cid:141)(cid:109) (cid:108)(cid:138)(cid:84)(cid:138)(cid:141)(cid:138)(cid:84)(cid:137)(cid:141)(cid:136)(cid:109) (cid:108)(cid:137)(cid:84)(cid:135)(cid:135)(cid:137)(cid:84)(cid:164)(cid:142)(cid:164)(cid:109) – – (cid:164)(cid:137)(cid:84)(cid:142)(cid:141)(cid:140) (cid:165)(cid:142)(cid:84)(cid:135)(cid:141)(cid:138) (cid:137)(cid:141)(cid:139)(cid:84)(cid:139)(cid:140)(cid:135) (cid:137)(cid:141)(cid:84)(cid:135)(cid:139)(cid:138) (cid:142)(cid:138)(cid:84)(cid:141)(cid:165)(cid:164) (cid:138)(cid:140)(cid:84)(cid:139)(cid:164)(cid:138) (cid:136)(cid:141) (cid:108)(cid:139)(cid:84)(cid:142)(cid:142)(cid:137)(cid:84)(cid:139)(cid:137)(cid:137)(cid:109) (cid:108)(cid:138)(cid:84)(cid:136)(cid:164)(cid:141)(cid:84)(cid:137)(cid:136)(cid:136)(cid:109) (cid:137)(cid:84)(cid:136)(cid:164)(cid:136)(cid:84)(cid:136)(cid:136)(cid:142) – (cid:108)(cid:138)(cid:138)(cid:84)(cid:138)(cid:138)(cid:138)(cid:109) (cid:108)(cid:136)(cid:135)(cid:84)(cid:139)(cid:142)(cid:136)(cid:109) (cid:137)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:136)(cid:137)(cid:137)(cid:84)(cid:138)(cid:164)(cid:165) (cid:138)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:138)(cid:165)(cid:84)(cid:135)(cid:135)(cid:135) (cid:108)(cid:165)(cid:165)(cid:138)(cid:84)(cid:164)(cid:142)(cid:165)(cid:109) (cid:108)(cid:136)(cid:84)(cid:135)(cid:139)(cid:141)(cid:84)(cid:142)(cid:136)(cid:164)(cid:109) (cid:136)(cid:84)(cid:138)(cid:165)(cid:164)(cid:84)(cid:139)(cid:140)(cid:164) (cid:108)(cid:142)(cid:142)(cid:135)(cid:84)(cid:139)(cid:135)(cid:141)(cid:109) (cid:140)(cid:84)(cid:142)(cid:136)(cid:139)(cid:84)(cid:164)(cid:165)(cid:135) (cid:139)(cid:84)(cid:139)(cid:139)(cid:140)(cid:84)(cid:164)(cid:135)(cid:165) (cid:108)(cid:165)(cid:142)(cid:84)(cid:136)(cid:142)(cid:136)(cid:109) (cid:108)(cid:165)(cid:140)(cid:84)(cid:140)(cid:135)(cid:138)(cid:109) (cid:140)(cid:84)(cid:165)(cid:137)(cid:140)(cid:84)(cid:139)(cid:165)(cid:142) (cid:139)(cid:84)(cid:138)(cid:164)(cid:135)(cid:84)(cid:136)(cid:135)(cid:140) Net (cid:13)ncrease(cid:99)(cid:108)(cid:8)ecrease(cid:109) in Cas(cid:44) and Cas(cid:44) (cid:9)(cid:55)ui(cid:61)a(cid:163)ents Cas(cid:44) and Cas(cid:44) (cid:9)(cid:55)ui(cid:61)a(cid:163)ents at Beginning of (cid:31)ear Cas(cid:44) and Cas(cid:44) (cid:9)(cid:55)ui(cid:61)a(cid:163)ents at t(cid:44)e (cid:9)nd of t(cid:44)e (cid:31)ear (cid:137)(cid:84)(cid:137)(cid:136)(cid:142)(cid:84)(cid:140)(cid:137)(cid:138) (cid:137)(cid:135)(cid:137)(cid:84)(cid:139)(cid:165)(cid:141) (cid:139)(cid:84)(cid:135)(cid:136)(cid:138)(cid:84)(cid:165)(cid:136)(cid:139) (cid:138)(cid:84)(cid:165)(cid:136)(cid:136)(cid:84)(cid:138)(cid:137)(cid:141) (cid:140) (cid:164)(cid:84)(cid:137)(cid:138)(cid:138)(cid:84)(cid:138)(cid:138)(cid:164) (cid:139)(cid:84)(cid:135)(cid:136)(cid:138)(cid:84)(cid:165)(cid:136)(cid:139) (cid:26)he a(cid:35)ove (cid:6)onsolidated Statement of (cid:6)ash Flow sho(cid:60)ld (cid:35)e read in con(cid:47)(cid:60)nction with the accompan(cid:64)in(cid:43) notes(cid:87) 40 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information Consolidated Statement of Changes in Equity for the year ended 30 June 2015 Conso(cid:163)idated At 3(cid:135) (cid:14)une 2(cid:135)(cid:136)3 (cid:16)oss for the (cid:64)ear Other comprehensive profit(cid:99)(cid:108)loss(cid:109) (cid:26)otal comprehensive loss for the (cid:64)ear Shares iss(cid:60)ed (cid:6)ost of iss(cid:60)in(cid:43) shares At 3(cid:135) (cid:14)une 2(cid:135)(cid:136)(cid:139) (cid:16)oss for the (cid:64)ear Other comprehensive profit(cid:99)(cid:108)loss(cid:109) (cid:26)otal comprehensive loss for the (cid:64)ear Shares iss(cid:60)ed (cid:6)ost of iss(cid:60)in(cid:43) shares At 3(cid:135) (cid:14)une 2(cid:135)(cid:136)5 (cid:13)ssued capita(cid:163) $ Accumu(cid:163)ated losses $ Note (cid:9)(cid:55)uity (cid:35)enefits reser(cid:61)e $ (cid:10)oreign Currency (cid:26)rans(cid:163)ation Reser(cid:61)e $ Total $ 88,839,221 (86,100,079) 1,173,538 (58,175) 3,854,505 – – – (cid:108)(cid:139)(cid:84)(cid:140)(cid:135)(cid:139)(cid:84)(cid:165)(cid:138)(cid:135)(cid:109) – (cid:108)(cid:139)(cid:84)(cid:140)(cid:135)(cid:139)(cid:84)(cid:165)(cid:138)(cid:135)(cid:109) (cid:136)(cid:139) (cid:136)(cid:139) (cid:139)(cid:84)(cid:139)(cid:139)(cid:140)(cid:84)(cid:164)(cid:135)(cid:164) (cid:108)(cid:136)(cid:136)(cid:139)(cid:84)(cid:142)(cid:142)(cid:165)(cid:109) – – – – – – (cid:137)(cid:142)(cid:84)(cid:139)(cid:142)(cid:164) – (cid:108)(cid:139)(cid:84)(cid:140)(cid:135)(cid:139)(cid:84)(cid:165)(cid:138)(cid:135)(cid:109) (cid:138)(cid:135)(cid:84)(cid:137)(cid:165)(cid:140) (cid:138)(cid:135)(cid:84)(cid:137)(cid:165)(cid:140) (cid:138)(cid:135)(cid:84)(cid:137)(cid:165)(cid:140) (cid:108)(cid:139)(cid:84)(cid:139)(cid:141)(cid:139)(cid:84)(cid:140)(cid:139)(cid:140)(cid:109) – – (cid:139)(cid:84)(cid:139)(cid:139)(cid:140)(cid:84)(cid:164)(cid:135)(cid:164) (cid:108)(cid:165)(cid:140)(cid:84)(cid:140)(cid:135)(cid:137)(cid:109) 93,169,829 (90,604,907) 1,203,034 (27,890) 3,740,066 – – (cid:108)(cid:138)(cid:84)(cid:140)(cid:137)(cid:164)(cid:84)(cid:165)(cid:135)(cid:141)(cid:109) – (cid:108)(cid:138)(cid:84)(cid:140)(cid:137)(cid:164)(cid:84)(cid:165)(cid:135)(cid:141)(cid:109) (cid:136)(cid:139) (cid:136)(cid:139) (cid:164)(cid:84)(cid:139)(cid:136)(cid:139)(cid:84)(cid:135)(cid:136)(cid:139) (cid:108)(cid:165)(cid:142)(cid:84)(cid:136)(cid:142)(cid:136)(cid:109) – – – – – – – – (cid:108)(cid:138)(cid:84)(cid:140)(cid:137)(cid:164)(cid:84)(cid:165)(cid:135)(cid:141)(cid:109) (cid:136)(cid:140)(cid:84)(cid:136)(cid:135)(cid:138) (cid:136)(cid:140)(cid:84)(cid:136)(cid:135)(cid:138) (cid:136)(cid:140)(cid:84)(cid:136)(cid:135)(cid:138) (cid:108)(cid:138)(cid:84)(cid:140)(cid:136)(cid:136)(cid:84)(cid:141)(cid:135)(cid:139)(cid:109) – – (cid:164)(cid:84)(cid:139)(cid:136)(cid:139)(cid:84)(cid:135)(cid:136)(cid:139) (cid:108)(cid:165)(cid:142)(cid:84)(cid:136)(cid:142)(cid:136)(cid:109) 99,494,652 (94,131,714) 1,203,034 (12,787) 6,553,185 (cid:26)he a(cid:35)ove (cid:6)onsolidated Statement of (cid:6)han(cid:43)es in (cid:9)(cid:55)(cid:60)it(cid:64) sho(cid:60)ld (cid:35)e read in con(cid:47)(cid:60)nction with the accompan(cid:64)in(cid:43) notes(cid:87) Annual Report 2015 41 Financial Report Notes to the Financial Statements for the year ended 30 June 2015 (cid:136)(cid:87) Corporate (cid:13)nformation (cid:26)he consolidated (cid:41)nancial report of Sipa Reso(cid:60)rces (cid:16)imited and its s(cid:60)(cid:35)sidiaries (cid:108)collectivel(cid:64)(cid:84) the Gro(cid:60)p(cid:109) for the (cid:64)ear ended (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140) was a(cid:60)thorised for iss(cid:60)e in accordance with a resol(cid:60)tion of the directors on (cid:137)(cid:137) Septem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:140)(cid:87) Sipa Reso(cid:60)rces (cid:16)imited (cid:108)the (cid:6)ompan(cid:64) or the parent(cid:109) is a for pro(cid:41)t compan(cid:64) limited (cid:35)(cid:64) shares incorporated and domiciled in (cid:3)(cid:60)stralia whose shares are p(cid:60)(cid:35)licl(cid:64) traded on the (cid:3)(cid:60)stralian Sec(cid:60)rities (cid:9)(cid:63)chan(cid:43)e(cid:87) (cid:26)he nat(cid:60)re of the operations and principal activities of the compan(cid:64) are descri(cid:35)ed in the (cid:8)irectors’ report(cid:87) 2(cid:87) (cid:25)ummary of (cid:25)igni(cid:41)cant Accounting (cid:22)o(cid:163)icies 2.1 Basis of Preparation (cid:26)he (cid:41)nancial report is a (cid:43)eneral(cid:102)p(cid:60)rpose (cid:41)nancial report(cid:84) which has (cid:35)een prepared in accordance with the re(cid:55)(cid:60)irements of the (cid:6)orporations (cid:3)ct (cid:137)(cid:135)(cid:135)(cid:136)(cid:84) (cid:3)(cid:60)stralian (cid:3)cco(cid:60)ntin(cid:43) Standards and other a(cid:60)thoritative prono(cid:60)ncements of the (cid:3)(cid:60)stralian (cid:3)cco(cid:60)ntin(cid:43) Standards (cid:5)oard(cid:87) (cid:26)he (cid:41)nancial report has (cid:35)een prepared on a historical cost (cid:35)asis(cid:84) e(cid:63)cept for availa(cid:35)le for sale (cid:41)nancial assets that have (cid:35)een meas(cid:60)red at fair val(cid:60)e(cid:87) 2.2 Compliance Statement (cid:26)he (cid:41)nancial report complies with (cid:3)(cid:60)stralian (cid:3)cco(cid:60)ntin(cid:43) Standards and International Financial Reportin(cid:43) Standards (cid:108)IFRS(cid:109) as iss(cid:60)ed (cid:35)(cid:64) the International (cid:3)cco(cid:60)ntin(cid:43) Standards (cid:5)oard(cid:87) 2.3 Changes in Accounting Policies, Disclosures, Standards and Interpretations Changes in Accounting Policies, New and Amended Standards and Interpretations (cid:26)he acco(cid:60)ntin(cid:43) policies adopted are consistent with those of the previo(cid:60)s (cid:41)nancial (cid:64)ear(cid:87) From (cid:136) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:139) the Gro(cid:60)p has adopted all acco(cid:60)ntin(cid:43) Standards and Interpretations(cid:84) mandator(cid:64) for ann(cid:60)al periods (cid:35)e(cid:43)innin(cid:43) on or (cid:35)efore (cid:136) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:139)(cid:84) incl(cid:60)din(cid:43)(cid:86) Reference Title (cid:3)(cid:3)S(cid:5) (cid:136)(cid:135)(cid:138)(cid:136) Materiality (cid:26)he revised (cid:3)(cid:3)S(cid:5) (cid:136)(cid:135)(cid:138)(cid:136) is an interim standard that cross(cid:102)references to other Standards and the Framework (cid:108)iss(cid:60)ed (cid:8)ecem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:138)(cid:109) that contain (cid:43)(cid:60)idance on materialit(cid:64)(cid:87) (cid:3)(cid:3)S(cid:5) (cid:136)(cid:135)(cid:138)(cid:136) will (cid:35)e withdrawn when references to (cid:3)(cid:3)S(cid:5) (cid:136)(cid:135)(cid:138)(cid:136) in all Standards and Interpretations have (cid:35)een removed(cid:87) (cid:3)(cid:3)S(cid:5) (cid:137)(cid:135)(cid:136)(cid:139)(cid:102)(cid:136) (cid:22)art (cid:6) iss(cid:60)ed in (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:139) ma(cid:48)es amendments to ei(cid:43)ht (cid:3)(cid:60)stralian (cid:3)cco(cid:60)ntin(cid:43) Standards to delete their references to (cid:3)(cid:3)S(cid:5) (cid:136)(cid:135)(cid:138)(cid:136)(cid:87) (cid:26)he amendments are effective from (cid:136) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:139)(cid:114)(cid:87) (cid:3)(cid:3)S(cid:5) (cid:137)(cid:135)(cid:136)(cid:138)(cid:102)(cid:142) Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and Financial Instruments (cid:26)he Standard contains three main parts and ma(cid:48)es amendments to a n(cid:60)m(cid:35)er Standards and Interpretations(cid:87) (cid:22)art (cid:3) of (cid:3)(cid:3)S(cid:5) (cid:137)(cid:135)(cid:136)(cid:138)(cid:102)(cid:142) ma(cid:48)es conse(cid:55)(cid:60)ential amendments arisin(cid:43) from the iss(cid:60)ance of (cid:3)(cid:3)S(cid:5) (cid:6)F (cid:137)(cid:135)(cid:136)(cid:138)(cid:102)(cid:136)(cid:87) (cid:22)art (cid:5) ma(cid:48)es amendments to partic(cid:60)lar (cid:3)(cid:60)stralian (cid:3)cco(cid:60)ntin(cid:43) Standards to delete references to (cid:3)(cid:3)S(cid:5) (cid:136)(cid:135)(cid:138)(cid:136) and also ma(cid:48)es minor editorial amendments to vario(cid:60)s other standards(cid:87) (cid:22)art (cid:6) ma(cid:48)es amendments to a n(cid:60)m(cid:35)er of (cid:3)(cid:60)stralian (cid:3)cco(cid:60)ntin(cid:43) Standards(cid:84) incl(cid:60)din(cid:43) incorporatin(cid:43) (cid:6)hapter (cid:164) Hedge Accounting into (cid:3)(cid:3)S(cid:5) (cid:142) Financial Instruments(cid:87) 42 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information 2(cid:87) (cid:25)ummary of (cid:25)igni(cid:41)cant Accounting (cid:22)o(cid:163)icies (cid:108)continued(cid:109) Reference Title (cid:3)(cid:3)S(cid:5) (cid:137)(cid:135)(cid:136)(cid:139)(cid:102)(cid:136) (cid:22)art (cid:3)(cid:102)(cid:3)nn(cid:60)al Improvements (cid:137)(cid:135)(cid:136)(cid:135)(cid:103)(cid:137)(cid:135)(cid:136)(cid:137) (cid:6)(cid:64)cle (cid:3)(cid:3)S(cid:5) (cid:137)(cid:135)(cid:136)(cid:139)(cid:102)(cid:136) (cid:22)art (cid:3)(cid:86) (cid:26)his standard sets o(cid:60)t amendments to (cid:3)(cid:60)stralian (cid:3)cco(cid:60)ntin(cid:43) Standards arisin(cid:43) from the iss(cid:60)ance (cid:35)(cid:64) the International (cid:3)cco(cid:60)ntin(cid:43) Standards (cid:5)oard (cid:108)I(cid:3)S(cid:5)(cid:109) of International Financial Reportin(cid:43) Standards (cid:108)IFRSs(cid:109) Annual Improvements to IFRSs 2010–2012 Cycle and Annual Improvements to IFRSs 2011–2013 Cycle(cid:87) (cid:3)nn(cid:60)al Improvements to IFRSs (cid:137)(cid:135)(cid:136)(cid:135)(cid:103)(cid:137)(cid:135)(cid:136)(cid:137) (cid:6)(cid:64)cle addresses the followin(cid:43) items(cid:86) – (cid:3)(cid:3)S(cid:5) (cid:137) (cid:102) (cid:6)lari(cid:41)es the de(cid:41)nition of (cid:89)vestin(cid:43) conditions’ and (cid:89)mar(cid:48)et condition’ and introd(cid:60)ces the de(cid:41)nition of (cid:89)performance condition’ and (cid:89)service condition’(cid:87) – (cid:3)(cid:3)S(cid:5) (cid:138) (cid:102) (cid:6)lari(cid:41)es the classi(cid:41)cation re(cid:55)(cid:60)irements for contin(cid:43)ent consideration in a (cid:35)(cid:60)siness com(cid:35)ination (cid:35)(cid:64) removin(cid:43) all references to (cid:3)(cid:3)S(cid:5) (cid:136)(cid:138)(cid:141)(cid:87) – (cid:3)(cid:3)S(cid:5) (cid:165) (cid:102) Re(cid:55)(cid:60)ires entities to disclose factors (cid:60)sed to identif(cid:64) the entit(cid:64)’s reporta(cid:35)le se(cid:43)ments when operatin(cid:43) se(cid:43)ments have (cid:35)een a(cid:43)(cid:43)re(cid:43)ated(cid:87) (cid:3)n entit(cid:64) is also re(cid:55)(cid:60)ired to provide a reconciliation of total reporta(cid:35)le se(cid:43)ments’ asset to the entit(cid:64)’s total assets(cid:87) – (cid:3)(cid:3)S(cid:5) (cid:136)(cid:136)(cid:164) (cid:123) (cid:3)(cid:3)S(cid:5) (cid:136)(cid:138)(cid:165) (cid:102) (cid:6)lari(cid:41)es that the determination of acc(cid:60)m(cid:60)lated depreciation does not depend on the selection of the val(cid:60)ation techni(cid:55)(cid:60)e and that it is calc(cid:60)lated as the di(cid:248)erence (cid:35)etween the (cid:43)ross and net carr(cid:64)in(cid:43) amo(cid:60)nts(cid:87) (cid:3)(cid:3)S(cid:5) (cid:136)(cid:137)(cid:139) (cid:102) (cid:8)efines a mana(cid:43)ement entit(cid:64) providin(cid:43) (cid:15)(cid:17)(cid:22) services as a related part(cid:64) of the reportin(cid:43) entit(cid:64)(cid:87) (cid:26)he amendments added an e(cid:63)emption from the detailed disclos(cid:60)re re(cid:55)(cid:60)irements in para(cid:43)raph (cid:136)(cid:141) of (cid:3)(cid:3)S(cid:5) (cid:136)(cid:137)(cid:139) for (cid:15)(cid:17)(cid:22) services provided (cid:35)(cid:64) a mana(cid:43)ement entit(cid:64)(cid:87) (cid:22)a(cid:64)ments made to a mana(cid:43)ement entit(cid:64) in respect of (cid:15)(cid:17)(cid:22) services sho(cid:60)ld (cid:35)e separatel(cid:64) disclosed(cid:87) (cid:3)(cid:3)S(cid:5) (cid:137)(cid:135)(cid:136)(cid:138)(cid:102)(cid:138) Amendments to AASB 136 – Recoverable Amount Disclosures for Non-Financial Assets (cid:3)(cid:3)S(cid:5) (cid:137)(cid:135)(cid:136)(cid:138)(cid:102)(cid:138) amends the disclos(cid:60)re re(cid:55)(cid:60)irements in (cid:3)(cid:3)S(cid:5) (cid:136)(cid:138)(cid:164) Impairment of Assets(cid:87) (cid:26)he amendments incl(cid:60)de the re(cid:55)(cid:60)irement to disclose additional information a(cid:35)o(cid:60)t the fair val(cid:60)e meas(cid:60)rement when the recovera(cid:35)le amo(cid:60)nt of impaired assets is (cid:35)ased on fair val(cid:60)e less costs of disposal(cid:87) (cid:3)doption of these standards and interpretations did not have an(cid:64) material e(cid:248)ect on the (cid:41)nancial position or performance of the Gro(cid:60)p(cid:87) (cid:26)he Gro(cid:60)p has not elected to earl(cid:64) adopt an(cid:64) new standards or amendments(cid:87) Accounting Standards and Interpretations issued but not yet effective. (cid:3)(cid:60)stralian (cid:3)cco(cid:60)ntin(cid:43) Standards and interpretations that have recentl(cid:64) (cid:35)een iss(cid:60)ed or amended (cid:35)(cid:60)t are not (cid:64)et e(cid:248)ective have not (cid:35)een adopted (cid:35)(cid:64) the Gro(cid:60)p for the ann(cid:60)al reportin(cid:43) period ended (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140)(cid:87) (cid:26)he Gro(cid:60)p have not (cid:64)et determined the impact of new and amended acco(cid:60)ntin(cid:43) standards and interpretations(cid:87) (cid:26)hese are o(cid:60)tlined in the ta(cid:35)le (cid:35)elow(cid:86) App(cid:163)ication date of standard(cid:114) App(cid:163)ication date for (cid:11)roup(cid:114) (cid:136) (cid:14)an(cid:60)ar(cid:64) (cid:137)(cid:135)(cid:136)(cid:164) (cid:136) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:164) Reference Title (cid:25)ummary (cid:3)(cid:3)S(cid:5) (cid:137)(cid:135)(cid:136)(cid:139)(cid:102)(cid:138) (cid:3)mendments to (cid:3)(cid:60)stralian (cid:3)cco(cid:60)ntin(cid:43) Standards (cid:103) (cid:3)cco(cid:60)ntin(cid:43) for (cid:3)c(cid:55)(cid:60)isitions of Interests in (cid:14)oint Operations (cid:110)(cid:3)(cid:3)S(cid:5) (cid:136) (cid:123) (cid:3)(cid:3)S(cid:5) (cid:136)(cid:136)(cid:111) (cid:3)(cid:3)S(cid:5) (cid:137)(cid:135)(cid:136)(cid:139)(cid:102)(cid:138) amends (cid:3)(cid:3)S(cid:5) (cid:136)(cid:136) to provide (cid:43)(cid:60)idance on the acco(cid:60)ntin(cid:43) for ac(cid:55)(cid:60)isitions of interests in (cid:47)oint operations in which the activit(cid:64) constit(cid:60)tes a (cid:35)(cid:60)siness(cid:87) (cid:26)he amendments re(cid:55)(cid:60)ire(cid:86) a(cid:87) the ac(cid:55)(cid:60)irer of an interest in a (cid:47)oint operation in which the activit(cid:64) constit(cid:60)tes a (cid:35)(cid:60)siness(cid:84) as de(cid:41)ned in (cid:3)(cid:3)S(cid:5) (cid:138) Business Combinations(cid:84) to appl(cid:64) all of the principles on (cid:35)(cid:60)siness com(cid:35)inations acco(cid:60)ntin(cid:43) in (cid:3)(cid:3)S(cid:5) (cid:138) and other (cid:3)(cid:60)stralian (cid:3)cco(cid:60)ntin(cid:43) Standards e(cid:63)cept for those principles that con(cid:42)ict with the (cid:43)(cid:60)idance in (cid:3)(cid:3)S(cid:5) (cid:136)(cid:136)(cid:85) and (cid:35)(cid:87) the ac(cid:55)(cid:60)irer to disclose the information re(cid:55)(cid:60)ired (cid:35)(cid:64) (cid:3)(cid:3)S(cid:5) (cid:138) and other (cid:3)(cid:60)stralian (cid:3)cco(cid:60)ntin(cid:43) Standards for (cid:35)(cid:60)siness com(cid:35)inations(cid:87) (cid:26)his Standard also ma(cid:48)es an editorial correction to (cid:3)(cid:3)S(cid:5) (cid:136)(cid:136) Annual Report 2015 43 Financial Report Notes to the Financial Statements continued 2(cid:87) (cid:25)ummary of (cid:25)igni(cid:41)cant Accounting (cid:22)o(cid:163)icies (cid:108)continued(cid:109) Reference Title (cid:25)ummary App(cid:163)ication date of standard(cid:114) App(cid:163)ication date for (cid:11)roup(cid:114) (cid:136) (cid:14)an(cid:60)ar(cid:64) (cid:137)(cid:135)(cid:136)(cid:164) (cid:136) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:164) (cid:3)(cid:3)S(cid:5) (cid:136)(cid:136)(cid:164) and (cid:3)(cid:3)S(cid:5) (cid:136)(cid:138)(cid:165) (cid:35)oth esta(cid:35)lish the principle for the (cid:35)asis of depreciation and amortisation as (cid:35)ein(cid:43) the e(cid:63)pected pattern of cons(cid:60)mption of the f(cid:60)t(cid:60)re economic (cid:35)enefits of an asset(cid:87) (cid:26)he I(cid:3)S(cid:5) has clarified that the (cid:60)se of reven(cid:60)e(cid:102)(cid:35)ased methods to calc(cid:60)late the depreciation of an asset is not appropriate (cid:35)eca(cid:60)se reven(cid:60)e (cid:43)enerated (cid:35)(cid:64) an activit(cid:64) that incl(cid:60)des the (cid:60)se of an asset (cid:43)enerall(cid:64) reflects factors other than the cons(cid:60)mption of the economic (cid:35)enefits em(cid:35)odied in the asset(cid:87) (cid:26)he amendment also clarified that reven(cid:60)e is (cid:43)enerall(cid:64) pres(cid:60)med to (cid:35)e an inappropriate (cid:35)asis for meas(cid:60)rin(cid:43) the cons(cid:60)mption of the economic (cid:35)enefits em(cid:35)odied in an intan(cid:43)i(cid:35)le asset(cid:87) (cid:26)his pres(cid:60)mption(cid:84) however(cid:84) can (cid:35)e re(cid:35)(cid:60)tted in certain limited circ(cid:60)mstances(cid:87) (cid:136) (cid:14)an(cid:60)ar(cid:64) (cid:137)(cid:135)(cid:136)(cid:164) (cid:136) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:164) (cid:3)(cid:3)S(cid:5) (cid:137)(cid:135)(cid:136)(cid:139)(cid:102)(cid:136)(cid:135) amends (cid:3)(cid:3)S(cid:5) (cid:136)(cid:135) Consolidated Financial Statements and (cid:3)(cid:3)S(cid:5) (cid:136)(cid:137)(cid:165) to address an inconsistenc(cid:64) (cid:35)etween the re(cid:55)(cid:60)irements in (cid:3)(cid:3)S(cid:5) (cid:136)(cid:135) and those in (cid:3)(cid:3)S(cid:5) (cid:136)(cid:137)(cid:165) (cid:108)(cid:3)(cid:60)(cid:43)(cid:60)st (cid:137)(cid:135)(cid:136)(cid:136)(cid:109)(cid:84) in dealin(cid:43) with the sale or contri(cid:35)(cid:60)tion of assets (cid:35)etween an investor and its associate or (cid:47)oint vent(cid:60)re(cid:87) (cid:26)he amendments re(cid:55)(cid:60)ire(cid:86) a(cid:87) a f(cid:60)ll (cid:43)ain or loss to (cid:35)e reco(cid:43)nised when a transaction involves a (cid:35)(cid:60)siness (cid:108)whether it is ho(cid:60)sed in a s(cid:60)(cid:35)sidiar(cid:64) or not(cid:109)(cid:85) and (cid:35)(cid:87) a partial (cid:43)ain or loss to (cid:35)e reco(cid:43)nised when a transaction involves assets that do not constit(cid:60)te a (cid:35)(cid:60)siness(cid:84) even if these assets are ho(cid:60)sed in a s(cid:60)(cid:35)sidiar(cid:64)(cid:87) (cid:3)(cid:3)S(cid:5) (cid:137)(cid:135)(cid:136)(cid:139)(cid:102)(cid:136)(cid:135) also ma(cid:48)es an editorial correction to (cid:3)(cid:3)S(cid:5) (cid:136)(cid:135)(cid:87) (cid:3)(cid:3)S(cid:5) (cid:137)(cid:135)(cid:136)(cid:139)(cid:102)(cid:136)(cid:135) applies to ann(cid:60)al reportin(cid:43) periods (cid:35)e(cid:43)innin(cid:43) on or after (cid:136) (cid:14)an(cid:60)ar(cid:64) (cid:137)(cid:135)(cid:136)(cid:164)(cid:87) (cid:9)arl(cid:64) adoption permitted(cid:87) (cid:3)(cid:3)S(cid:5) (cid:137)(cid:135)(cid:136)(cid:139)(cid:102)(cid:139) (cid:6)larification of (cid:3)ccepta(cid:35)le (cid:17)ethods of Depreciation and (cid:3)mortisation (cid:108)(cid:3)mendments to (cid:3)(cid:3)S(cid:5) (cid:136)(cid:136)(cid:164) and (cid:3)(cid:3)S(cid:5) (cid:136)(cid:138)(cid:165)(cid:109) (cid:3)(cid:3)S(cid:5) (cid:137)(cid:135)(cid:136)(cid:139)(cid:102)(cid:136)(cid:135) (cid:3)mendments to (cid:3)(cid:60)stralian (cid:3)cco(cid:60)ntin(cid:43) Standards (cid:103) Sale or (cid:6)ontri(cid:35)(cid:60)tion of (cid:3)ssets (cid:35)etween an Investor and its (cid:3)ssociate or (cid:14)oint (cid:28)ent(cid:60)re 44 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information App(cid:163)ication date of standard(cid:114) App(cid:163)ication date for (cid:11)roup(cid:114) (cid:136) (cid:14)an(cid:60)ar(cid:64) (cid:137)(cid:135)(cid:136)(cid:164) (cid:136) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:164) Reference Title (cid:25)ummary (cid:3)(cid:3)S(cid:5) (cid:137)(cid:135)(cid:136)(cid:140)(cid:102)(cid:136) (cid:3)mendments to (cid:3)(cid:60)stralian (cid:3)cco(cid:60)ntin(cid:43) Standards (cid:103) (cid:3)nn(cid:60)al Improvements to (cid:3)(cid:60)stralian (cid:3)cco(cid:60)ntin(cid:43) Standards (cid:137)(cid:135)(cid:136)(cid:137)(cid:103)(cid:137)(cid:135)(cid:136)(cid:139) (cid:6)(cid:64)cle (cid:26)he s(cid:60)(cid:35)(cid:47)ects of the principal amendments to the Standards are set o(cid:60)t (cid:35)elow(cid:86) (cid:3)(cid:3)S(cid:5) (cid:140) Non-current Assets Held for Sale and Discontinued Operations: – (cid:6)han(cid:43)es in methods of disposal (cid:103) where an entit(cid:64) reclassi(cid:41)es an asset (cid:108)or disposal (cid:43)ro(cid:60)p(cid:109) directl(cid:64) from (cid:35)ein(cid:43) held for distri(cid:35)(cid:60)tion to (cid:35)ein(cid:43) held for sale (cid:108)or vice versa(cid:109)(cid:84) an entit(cid:64) shall not follow the (cid:43)(cid:60)idance in para(cid:43)raphs (cid:137)(cid:141)(cid:103)(cid:137)(cid:142) to acco(cid:60)nt for this chan(cid:43)e(cid:87) (cid:3)(cid:3)S(cid:5) (cid:141) Financial Instr(cid:60)ments(cid:86) (cid:8)isclos(cid:60)res(cid:86) – Servicin(cid:43) contracts (cid:102) clari(cid:41)es how an entit(cid:64) sho(cid:60)ld appl(cid:64) the (cid:43)(cid:60)idance in para(cid:43)raph (cid:139)(cid:137)(cid:6) of (cid:3)(cid:3)S(cid:5) (cid:141) to a servicin(cid:43) contract to decide whether a servicin(cid:43) contract is (cid:89)contin(cid:60)in(cid:43) involvement’ for the p(cid:60)rposes of appl(cid:64)in(cid:43) the disclos(cid:60)re re(cid:55)(cid:60)irements in para(cid:43)raphs (cid:139)(cid:137)(cid:9)(cid:103)(cid:139)(cid:137)(cid:12) of (cid:3)(cid:3)S(cid:5) (cid:141)(cid:87) – (cid:3)pplica(cid:35)ilit(cid:64) of the amendments to (cid:3)(cid:3)S(cid:5) (cid:141) to condensed interim (cid:41)nancial statements (cid:102) clarif(cid:64) that the additional disclos(cid:60)re re(cid:55)(cid:60)ired (cid:35)(cid:64) the amendments to (cid:3)(cid:3)S(cid:5) (cid:141) (cid:8)isclos(cid:60)re(cid:103)O(cid:248)se(cid:2487)n(cid:43) Financial (cid:3)ssets and Financial (cid:16)ia(cid:35)ilities is not speci(cid:41)call(cid:64) re(cid:55)(cid:60)ired for all interim periods(cid:87) (cid:12)owever(cid:84) the additional disclos(cid:60)re is re(cid:55)(cid:60)ired to (cid:35)e (cid:43)iven in condensed interim (cid:41)nancial statements that are prepared in accordance with (cid:3)(cid:3)S(cid:5) (cid:136)(cid:138)(cid:139) Interim Financial Reportin(cid:43) when its incl(cid:60)sion wo(cid:60)ld (cid:35)e re(cid:55)(cid:60)ired (cid:35)(cid:64) the re(cid:55)(cid:60)irements of (cid:3)(cid:3)S(cid:5) (cid:136)(cid:138)(cid:139)(cid:87) (cid:3)(cid:3)S(cid:5) (cid:136)(cid:136)(cid:142) (cid:9)mplo(cid:64)ee (cid:5)enefits(cid:86) – (cid:8)isco(cid:60)nt rate(cid:86) re(cid:43)ional mar(cid:48)et iss(cid:60)e (cid:102) clari(cid:41)es that the hi(cid:43)h (cid:55)(cid:60)alit(cid:64) corporate (cid:35)onds (cid:60)sed to estimate the disco(cid:60)nt rate for post(cid:102)emplo(cid:64)ment (cid:35)ene(cid:41)t o(cid:35)li(cid:43)ations sho(cid:60)ld (cid:35)e denominated in the same c(cid:60)rrenc(cid:64) as the lia(cid:35)ilit(cid:64)(cid:87) F(cid:60)rther it clari(cid:41)es that the depth of the mar(cid:48)et for hi(cid:43)h (cid:55)(cid:60)alit(cid:64) corporate (cid:35)onds sho(cid:60)ld (cid:35)e assessed at the c(cid:60)rrenc(cid:64) level(cid:87) (cid:3)(cid:3)S(cid:5) (cid:136)(cid:138)(cid:139) Interim Financial Reportin(cid:43)(cid:86) – (cid:8)isclos(cid:60)re of information (cid:89)elsewhere in the interim (cid:41)nancial report’ (cid:102)amends (cid:3)(cid:3)S(cid:5) (cid:136)(cid:138)(cid:139) to clarif(cid:64) the meanin(cid:43) of disclos(cid:60)re of information (cid:89)elsewhere in the interim (cid:41)nancial report’ and to re(cid:55)(cid:60)ire the incl(cid:60)sion of a cross(cid:102)reference from the interim (cid:41)nancial statements to the location of this information(cid:87) Annual Report 2015 45 Financial Report Notes to the Financial Statements continued 2(cid:87) (cid:25)ummary of (cid:25)igni(cid:41)cant Accounting (cid:22)o(cid:163)icies (cid:108)continued(cid:109) Reference Title (cid:25)ummary (cid:26)he Standard ma(cid:48)es amendments to (cid:3)(cid:3)S(cid:5) (cid:136)(cid:135)(cid:136) Presentation of Financial Statements arisin(cid:43) from the I(cid:3)S(cid:5)’s (cid:8)isclos(cid:60)re Initiative pro(cid:47)ect(cid:87) (cid:26)he amendments are desi(cid:43)ned to f(cid:60)rther enco(cid:60)ra(cid:43)e companies to appl(cid:64) professional (cid:47)(cid:60)d(cid:43)ment in determinin(cid:43) what information to disclose in the financial statements(cid:87) For e(cid:63)ample(cid:84) the amendments ma(cid:48)e clear that materialit(cid:64) applies to the whole of financial statements and that the incl(cid:60)sion of immaterial information can inhi(cid:35)it the (cid:60)sef(cid:60)lness of financial disclos(cid:60)res(cid:87) (cid:26)he amendments also clarif(cid:64) that companies sho(cid:60)ld (cid:60)se professional (cid:47)(cid:60)d(cid:43)ment in determinin(cid:43) where and in what order information is presented in the financial disclos(cid:60)res(cid:87) (cid:26)he Standard completes the (cid:3)(cid:3)S(cid:5)’s pro(cid:47)ect to remove (cid:3)(cid:60)stralian (cid:43)(cid:60)idance on materialit(cid:64) from (cid:3)(cid:60)stralian (cid:3)cco(cid:60)ntin(cid:43) Standards(cid:87) App(cid:163)ication date of standard(cid:114) App(cid:163)ication date for (cid:11)roup(cid:114) (cid:136) (cid:14)an(cid:60)ar(cid:64) (cid:137)(cid:135)(cid:136)(cid:164) (cid:136) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:164) (cid:136) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:140) (cid:136) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:140) (cid:136) (cid:14)an(cid:60)ar(cid:64) (cid:137)(cid:135)(cid:136)(cid:165) (cid:136) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:165) (cid:3)(cid:3)S(cid:5) (cid:142) (cid:108)(cid:8)ecem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:139)(cid:109) is a new (cid:22)rincipal standard which replaces (cid:3)(cid:3)S(cid:5) (cid:136)(cid:138)(cid:142)(cid:87) (cid:26)his new (cid:22)rincipal version s(cid:60)persedes (cid:3)(cid:3)S(cid:5) (cid:142) iss(cid:60)ed in (cid:8)ecem(cid:35)er (cid:137)(cid:135)(cid:135)(cid:142) (cid:108)as amended(cid:109) and (cid:3)(cid:3)S(cid:5) (cid:142) (cid:108)iss(cid:60)ed in (cid:8)ecem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:135)(cid:109) and incl(cid:60)des a model for classification and meas(cid:60)rement(cid:84) a sin(cid:43)le(cid:84) forward(cid:102)loo(cid:48)in(cid:43) (cid:89)e(cid:63)pected loss’ impairment model and a s(cid:60)(cid:35)stantiall(cid:64)(cid:102)reformed approach to hed(cid:43)e acco(cid:60)ntin(cid:43)(cid:87) (cid:3)(cid:3)S(cid:5) (cid:142) is effective for ann(cid:60)al periods (cid:35)e(cid:43)innin(cid:43) on or after (cid:136) (cid:14)an(cid:60)ar(cid:64) (cid:137)(cid:135)(cid:136)(cid:165)(cid:87) (cid:12)owever(cid:84) the Standard is availa(cid:35)le for earl(cid:64) application(cid:87) (cid:26)he own credit chan(cid:43)es can (cid:35)e earl(cid:64) applied in isolation witho(cid:60)t otherwise chan(cid:43)in(cid:43) the acco(cid:60)ntin(cid:43) for financial instr(cid:60)ments(cid:87) (cid:26)he final version of (cid:3)(cid:3)S(cid:5) (cid:142) introd(cid:60)ces a new e(cid:63)pected(cid:102)loss impairment model that will re(cid:55)(cid:60)ire more timel(cid:64) reco(cid:43)nition of e(cid:63)pected credit losses(cid:87) Specificall(cid:64)(cid:84) the new Standard re(cid:55)(cid:60)ires entities to acco(cid:60)nt for e(cid:63)pected credit losses from when financial instr(cid:60)ments are first reco(cid:43)nised and to reco(cid:43)nise f(cid:60)ll lifetime e(cid:63)pected losses on a more timel(cid:64) (cid:35)asis(cid:87) (cid:3)mendments to (cid:3)(cid:3)S(cid:5) (cid:142) (cid:108)(cid:8)ecem(cid:35)er (cid:137)(cid:135)(cid:135)(cid:142) (cid:123) (cid:137)(cid:135)(cid:136)(cid:135) editions and (cid:3)(cid:3)S(cid:5) (cid:137)(cid:135)(cid:136)(cid:138)(cid:102)(cid:142)(cid:109) iss(cid:60)ed in (cid:8)ecem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:138) incl(cid:60)ded the new hed(cid:43)e acco(cid:60)ntin(cid:43) re(cid:55)(cid:60)irements(cid:84) incl(cid:60)din(cid:43) chan(cid:43)es to hed(cid:43)e effectiveness testin(cid:43)(cid:84) treatment of hed(cid:43)in(cid:43) costs(cid:84) ris(cid:48) components that can (cid:35)e hed(cid:43)ed and disclos(cid:60)res(cid:87) (cid:3)(cid:3)S(cid:5) (cid:137)(cid:135)(cid:136)(cid:140)(cid:102)(cid:137) (cid:3)mendments to (cid:3)(cid:60)stralian (cid:3)cco(cid:60)ntin(cid:43) Standards (cid:103) Disclosure Initiative(cid:86) (cid:3)mendments to (cid:3)(cid:3)S(cid:5) (cid:136)(cid:135)(cid:136) (cid:3)(cid:3)S(cid:5) (cid:137)(cid:135)(cid:136)(cid:140)(cid:102)(cid:138) (cid:3)(cid:3)S(cid:5) (cid:142) (cid:3)mendments to (cid:3)(cid:60)stralian (cid:3)cco(cid:60)ntin(cid:43) Standards arisin(cid:43) from the (cid:29)ithdrawal of (cid:3)(cid:3)S(cid:5) (cid:136)(cid:135)(cid:138)(cid:136) (cid:17)aterialit(cid:64) Financial Instruments 46 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information Reference Title (cid:25)ummary App(cid:163)ication date of standard(cid:114) App(cid:163)ication date for (cid:11)roup(cid:114) (cid:3)(cid:3)S(cid:5) (cid:142) incl(cid:60)des re(cid:55)(cid:60)irements for a simpler approach for classification and meas(cid:60)rement of financial assets compared with the re(cid:55)(cid:60)irements of (cid:3)(cid:3)S(cid:5) (cid:136)(cid:138)(cid:142)(cid:87) (cid:26)he main chan(cid:43)es are descri(cid:35)ed (cid:35)elow(cid:87) a(cid:87) Financial assets that are de(cid:35)t instr(cid:60)ments will (cid:35)e classi(cid:41)ed (cid:35)ased on (cid:108)(cid:136)(cid:109) the o(cid:35)(cid:47)ective of the entit(cid:64)’s (cid:35)(cid:60)siness model for mana(cid:43)in(cid:43) the (cid:41)nancial assets(cid:85) (cid:108)(cid:137)(cid:109) the characteristics of the contract(cid:60)al cash (cid:42)ows(cid:87) (cid:35)(cid:87) (cid:3)llows an irrevoca(cid:35)le election on initial reco(cid:43)nition to present (cid:43)ains and losses on investments in e(cid:55)(cid:60)it(cid:64) instr(cid:60)ments that are not held for tradin(cid:43) in other comprehensive income(cid:87) (cid:8)ividends in respect of these investments that are a ret(cid:60)rn on investment can (cid:35)e reco(cid:43)nised in pro(cid:41)t or loss and there is no impairment or rec(cid:64)clin(cid:43) on disposal of the instr(cid:60)ment(cid:87) c(cid:87) Financial assets can (cid:35)e desi(cid:43)nated and meas(cid:60)red at fair val(cid:60)e thro(cid:60)(cid:43)h pro(cid:41)t or loss at initial reco(cid:43)nition if doin(cid:43) so eliminates or si(cid:43)ni(cid:41)cantl(cid:64) red(cid:60)ces a meas(cid:60)rement or reco(cid:43)nition inconsistenc(cid:64) that wo(cid:60)ld arise from meas(cid:60)rin(cid:43) assets or lia(cid:35)ilities(cid:84) or reco(cid:43)nisin(cid:43) the (cid:43)ains and losses on them(cid:84) on di(cid:248)erent (cid:35)ases(cid:87) d(cid:87) (cid:29)here the fair val(cid:60)e option is (cid:60)sed for (cid:41)nancial lia(cid:35)ilities the chan(cid:43)e in fair val(cid:60)e is to (cid:35)e acco(cid:60)nted for as follows(cid:86) – (cid:26)he chan(cid:43)e a(cid:295)ri(cid:35)(cid:60)ta(cid:35)le to chan(cid:43)es in credit ris(cid:48) are presented in other comprehensive income (cid:108)O(cid:6)I(cid:109)(cid:87) – (cid:26)he remainin(cid:43) chan(cid:43)e is presented in pro(cid:41)t or loss(cid:87) (cid:3)(cid:3)S(cid:5) (cid:142) also removes the volatilit(cid:64) in profit or loss that was ca(cid:60)sed (cid:35)(cid:64) chan(cid:43)es in the credit ris(cid:48) of lia(cid:35)ilities elected to (cid:35)e meas(cid:60)red at fair val(cid:60)e(cid:87) (cid:26)his chan(cid:43)e in acco(cid:60)ntin(cid:43) means that (cid:43)ains ca(cid:60)sed (cid:35)(cid:64) the deterioration of an entit(cid:64)’s own credit ris(cid:48) on s(cid:60)ch lia(cid:35)ilities are no lon(cid:43)er reco(cid:43)nised in profit or loss(cid:87) (cid:6)onse(cid:55)(cid:60)ential amendments were also made to other standards as a res(cid:60)lt of (cid:3)(cid:3)S(cid:5) (cid:142)(cid:84) introd(cid:60)ced (cid:35)(cid:64) (cid:3)(cid:3)S(cid:5) (cid:137)(cid:135)(cid:135)(cid:142)(cid:102)(cid:136)(cid:136) and s(cid:60)perseded (cid:35)(cid:64) (cid:3)(cid:3)S(cid:5) (cid:137)(cid:135)(cid:136)(cid:135)(cid:102)(cid:141)(cid:84) (cid:3)(cid:3)S(cid:5) (cid:137)(cid:135)(cid:136)(cid:135)(cid:102)(cid:136)(cid:135) and (cid:3)(cid:3)S(cid:5) (cid:137)(cid:135)(cid:136)(cid:139)(cid:102)(cid:136) (cid:103) (cid:22)art (cid:9)(cid:87) (cid:3)(cid:3)S(cid:5) (cid:137)(cid:135)(cid:136)(cid:139)(cid:102)(cid:141) incorporates the conse(cid:55)(cid:60)ential amendments arisin(cid:43) from the iss(cid:60)ance of (cid:3)(cid:3)S(cid:5) (cid:142) in (cid:8)ec (cid:137)(cid:135)(cid:136)(cid:139)(cid:87) (cid:3)(cid:3)S(cid:5) (cid:137)(cid:135)(cid:136)(cid:139)(cid:102)(cid:165) limits the application of the e(cid:63)istin(cid:43) versions of (cid:3)(cid:3)S(cid:5) (cid:142) (cid:108)(cid:3)(cid:3)S(cid:5) (cid:142) (cid:108)(cid:8)ecem(cid:35)er (cid:137)(cid:135)(cid:135)(cid:142)(cid:109) and (cid:3)(cid:3)S(cid:5) (cid:142) (cid:108)(cid:8)ecem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:135)(cid:109)(cid:109) from (cid:136) Fe(cid:35)r(cid:60)ar(cid:64) (cid:137)(cid:135)(cid:136)(cid:140) and applies to ann(cid:60)al reportin(cid:43) periods (cid:35)e(cid:43)innin(cid:43) on after (cid:136) (cid:14)an(cid:60)ar(cid:64) (cid:137)(cid:135)(cid:136)(cid:140)(cid:87) Annual Report 2015 47 Financial Report Notes to the Financial Statements continued 2(cid:87) (cid:25)ummary of (cid:25)igni(cid:41)cant Accounting (cid:22)o(cid:163)icies (cid:108)continued(cid:109) Reference Title (cid:25)ummary App(cid:163)ication date of standard(cid:114) App(cid:163)ication date for (cid:11)roup(cid:114) (cid:3)(cid:3)S(cid:5) (cid:136)(cid:140) Reven(cid:60)e from (cid:6)ontracts with (cid:6)(cid:60)stomers (cid:136) (cid:14)an(cid:60)ar(cid:64) (cid:137)(cid:135)(cid:136)(cid:141) (cid:136) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:141) In (cid:17)a(cid:64) (cid:137)(cid:135)(cid:136)(cid:139)(cid:84) the I(cid:3)S(cid:5) iss(cid:60)ed IFRS (cid:136)(cid:140) Revenue from Contracts with Customers(cid:84) which replaces I(cid:3)S (cid:136)(cid:136) Construction Contracts(cid:84) I(cid:3)S (cid:136)(cid:165) Revenue and related Interpretations (cid:108)IFRI(cid:6) (cid:136)(cid:138) Customer Loyalty Programmes(cid:84) IFRI(cid:6) (cid:136)(cid:140) Agreements for the Construction of Real Estate(cid:84) IFRI(cid:6) (cid:136)(cid:165) Transfers of Assets from Customers and SI(cid:6)(cid:102)(cid:138)(cid:136) Revenue—Barter Transactions Involving Advertising Services(cid:109)(cid:87) (cid:26)he core principle of IFRS (cid:136)(cid:140) is that an entit(cid:64) reco(cid:43)nises reven(cid:60)e to depict the transfer of promised (cid:43)oods or services to c(cid:60)stomers in an amo(cid:60)nt that reflects the consideration to which the entit(cid:64) e(cid:63)pects to (cid:35)e entitled in e(cid:63)chan(cid:43)e for those (cid:43)oods or services(cid:87) (cid:3)n entit(cid:64) reco(cid:43)nises reven(cid:60)e in accordance with that core principle (cid:35)(cid:64) appl(cid:64)in(cid:43) the followin(cid:43) steps(cid:86) a(cid:87) Step (cid:136)(cid:86) Identif(cid:64) the contract(cid:108)s(cid:109) with a c(cid:60)stomer (cid:35)(cid:87) Step (cid:137)(cid:86) Identif(cid:64) the performance o(cid:35)li(cid:43)ations in the contract c(cid:87) Step (cid:138)(cid:86) (cid:8)etermine the transaction price d(cid:87) Step (cid:139)(cid:86) (cid:3)llocate the transaction price to the performance o(cid:35)li(cid:43)ations in the contract e(cid:87) Step (cid:140)(cid:86) Reco(cid:43)nise reven(cid:60)e when (cid:108)or as(cid:109) the entit(cid:64) satis(cid:41)es a performance o(cid:35)li(cid:43)ation (cid:9)arl(cid:64) application of this standard is permitted(cid:87) (cid:3)(cid:3)S(cid:5) (cid:137)(cid:135)(cid:136)(cid:139)(cid:102)(cid:140) incorporates the conse(cid:55)(cid:60)ential amendments to a n(cid:60)m(cid:35)er (cid:3)(cid:60)stralian (cid:3)cco(cid:60)ntin(cid:43) Standards (cid:108)incl(cid:60)din(cid:43) Interpretations(cid:109) arisin(cid:43) from the iss(cid:60)ance of (cid:3)(cid:3)S(cid:5) (cid:136)(cid:140)(cid:87) (cid:26)he International (cid:3)cco(cid:60)ntin(cid:43) Standards (cid:5)oard (cid:108)I(cid:3)S(cid:5)(cid:109) in its (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:140) meetin(cid:43) decided to confirm its proposal to defer the effective date of IFRS (cid:136)(cid:140) (cid:108)the international e(cid:55)(cid:60)ivalent of (cid:3)(cid:3)S(cid:5) (cid:136)(cid:140)(cid:109) from (cid:136) (cid:14)an(cid:60)ar(cid:64) (cid:137)(cid:135)(cid:136)(cid:141) to (cid:136) (cid:14)an(cid:60)ar(cid:64) (cid:137)(cid:135)(cid:136)(cid:165)(cid:87) (cid:26)he amendment to (cid:43)ive effect to the new effective date for IFRS (cid:136)(cid:140) is e(cid:63)pected to (cid:35)e iss(cid:60)ed in Septem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:140)(cid:87) (cid:3)t this time(cid:84) it is e(cid:63)pected that the (cid:3)(cid:3)S(cid:5) will ma(cid:48)e a correspondin(cid:43) amendment to (cid:3)(cid:3)S(cid:5) (cid:136)(cid:140)(cid:84) which will mean that the application date of this standard for the Gro(cid:60)p will move from (cid:136) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:141) to (cid:136) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:165)(cid:87) 48 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information 2.4 Basis of Consolidation (cid:26)he consolidated (cid:41)nancial statements comprise the (cid:41)nancial statements of Sipa Reso(cid:60)rces (cid:16)imited (cid:108)the (cid:91)(cid:6)ompan(cid:64)(cid:92) or (cid:91)parent entit(cid:64)(cid:92)(cid:109) and its s(cid:60)(cid:35)sidiaries (cid:108)(cid:91)the Gro(cid:60)p(cid:92) or (cid:91)Sipa(cid:92)(cid:109) as at (cid:138)(cid:135) (cid:14)(cid:60)ne each (cid:64)ear(cid:87) (cid:6)ontrol is achieved when the Gro(cid:60)p is e(cid:63)posed(cid:84) or has ri(cid:43)hts(cid:84) to varia(cid:35)le ret(cid:60)rns from its involvement with the investee and has the a(cid:35)ilit(cid:64) to a(cid:248)ect those ret(cid:60)rns thro(cid:60)(cid:43)h its power over the investee(cid:87) Speci(cid:41)call(cid:64)(cid:84) the Gro(cid:60)p controls an investee if and onl(cid:64) if the Gro(cid:60)p has(cid:86) – (cid:22)ower over the investee (cid:108)i(cid:87)e(cid:87) e(cid:63)istin(cid:43) ri(cid:43)hts that (cid:43)ive it the c(cid:60)rrent a(cid:35)ilit(cid:64) to direct the relevant activities of the investee(cid:109) – (cid:9)(cid:63)pos(cid:60)re(cid:84) or ri(cid:43)hts(cid:84) to varia(cid:35)le ret(cid:60)rns from its involvement with the investee(cid:84) and – (cid:26)he a(cid:35)ilit(cid:64) to (cid:60)se its power over the investee to a(cid:248)ect its returns (cid:29)hen the Gro(cid:60)p has less than a ma(cid:47)orit(cid:64) of the votin(cid:43) or similar ri(cid:43)hts of an investee(cid:84) the Gro(cid:60)p considers all relevant facts and circ(cid:60)mstances in assessin(cid:43) whether it has power over an investee(cid:84) incl(cid:60)din(cid:43)(cid:86) – (cid:26)he contract(cid:60)al arran(cid:43)ement with the other vote holders of the investee – Ri(cid:43)hts arisin(cid:43) from other contract(cid:60)al arran(cid:43)ements – (cid:26)he (cid:6)onsolidated (cid:9)ntit(cid:64)’s votin(cid:43) ri(cid:43)hts and potential votin(cid:43) ri(cid:43)hts (cid:26)he Gro(cid:60)p re(cid:102)assesses whether or not it controls an investee if facts and circ(cid:60)mstances indicate that there are chan(cid:43)es to one or more of the three elements of control(cid:87) (cid:6)onsolidation of a s(cid:60)(cid:35)sidiar(cid:64) (cid:35)e(cid:43)ins when the Gro(cid:60)p o(cid:35)tains control over the s(cid:60)(cid:35)sidiar(cid:64) and ceases when the Gro(cid:60)p loses control of the s(cid:60)(cid:35)sidiar(cid:64)(cid:87) (cid:3)ssets(cid:84) lia(cid:35)ilities(cid:84) income and e(cid:63)penses of a s(cid:60)(cid:35)sidiar(cid:64) ac(cid:55)(cid:60)ired or disposed of d(cid:60)rin(cid:43) the (cid:64)ear are incl(cid:60)ded in the statement of comprehensive income from the date the Gro(cid:60)p (cid:43)ains control (cid:60)ntil the date the Gro(cid:60)p ceases to control the s(cid:60)(cid:35)sidiar(cid:64)(cid:87) (cid:22)ro(cid:41)t or loss and each component of other comprehensive income are a(cid:295)ri(cid:35)(cid:60)ted to the e(cid:55)(cid:60)it(cid:64) holders of the parent of the Gro(cid:60)p and to the non(cid:102)controllin(cid:43) interests(cid:84) even if this res(cid:60)lts in the non(cid:102)controllin(cid:43) interests havin(cid:43) a de(cid:41)cit (cid:35)alance(cid:87) (cid:29)hen necessar(cid:64)(cid:84) ad(cid:47)(cid:60)stments are made to the (cid:41)nancial statements of s(cid:60)(cid:35)sidiaries to (cid:35)rin(cid:43) their acco(cid:60)ntin(cid:43) policies into line with the Gro(cid:60)p’s acco(cid:60)ntin(cid:43) policies(cid:87) (cid:3)ll intra(cid:102)Gro(cid:60)p assets and lia(cid:35)ilities(cid:84) e(cid:55)(cid:60)it(cid:64)(cid:84) income(cid:84) e(cid:63)penses and cash (cid:42)ows relatin(cid:43) to transactions (cid:35)etween mem(cid:35)ers of the Gro(cid:60)p are eliminated in f(cid:60)ll on consolidation(cid:87) 2.5 Significant Accounting Judgements, Estimates and Assumptions (i) Significant Accounting Judgements In the process of appl(cid:64)in(cid:43) the Gro(cid:60)p’s acco(cid:60)ntin(cid:43) policies(cid:84) mana(cid:43)ement has made no (cid:47)(cid:60)d(cid:43)ements(cid:84) apart from those involvin(cid:43) estimations(cid:84) which have a si(cid:43)ni(cid:41)cant e(cid:248)ect on the amo(cid:60)nts reco(cid:43)nised in the (cid:41)nancial statements e(cid:63)cept as follows(cid:86) Impairment of available-for-sale-investments In determinin(cid:43) the amo(cid:60)nt of impairment of (cid:41)nancial assets(cid:84) the Gro(cid:60)p has made (cid:47)(cid:60)d(cid:43)ments in identif(cid:64)in(cid:43) (cid:41)nancial assets whose decline in fair val(cid:60)e (cid:35)elow cost is considered (cid:91)si(cid:43)ni(cid:41)cant(cid:92) or (cid:91)prolon(cid:43)ed(cid:92)(cid:87) (cid:3) si(cid:43)ni(cid:41)cant decline is assessed (cid:35)ased on the historical volatilit(cid:64) of the share price(cid:87) (cid:26)he hi(cid:43)her the historical volatilit(cid:64)(cid:84) the (cid:43)reater the decline in fair val(cid:60)e re(cid:55)(cid:60)ired (cid:35)efore it is li(cid:48)el(cid:64) to (cid:35)e re(cid:43)arded as si(cid:43)ni(cid:41)cant(cid:87) (cid:3) prolon(cid:43)ed decline is (cid:35)ased on the len(cid:43)th of time over which the share price has (cid:35)een depressed (cid:35)elow cost(cid:87) (cid:3) s(cid:60)dden decline followed (cid:35)(cid:64) immediate recover(cid:64) is less li(cid:48)el(cid:64) to (cid:35)e considered prolon(cid:43)ed compared to a s(cid:60)stained fall of the same ma(cid:43)nit(cid:60)de over a lon(cid:43)er period(cid:87) (cid:26)he Gro(cid:60)p considers a less than a (cid:136)(cid:135)(cid:166) decline in fair val(cid:60)e is (cid:60)nli(cid:48)el(cid:64) to (cid:35)e considered si(cid:43)ni(cid:41)cant for investments activel(cid:64) traded in a li(cid:55)(cid:60)id mar(cid:48)et(cid:84) whereas a decline in fair val(cid:60)e of (cid:43)reater than (cid:137)(cid:135)(cid:166) will o(cid:273)en (cid:35)e considered si(cid:43)ni(cid:41)cant(cid:87) For less li(cid:55)(cid:60)id investments that have historicall(cid:64) (cid:35)een volatile (cid:108)standard deviation (cid:43)reater than (cid:137)(cid:140)(cid:166)(cid:109)(cid:84) a decline of (cid:43)reater than (cid:138)(cid:135)(cid:166) is (cid:60)s(cid:60)all(cid:64) considered si(cid:43)ni(cid:41)cant(cid:87) Generall(cid:64)(cid:84) the Gro(cid:60)p does not consider a decline over a period of less than three months to (cid:35)e prolon(cid:43)ed(cid:87) (cid:12)owever(cid:84) where the decline in fair val(cid:60)e is (cid:43)reater than si(cid:63) months for li(cid:55)(cid:60)id investments and (cid:136)(cid:137) months for illi(cid:55)(cid:60)id investments(cid:84) it is (cid:60)s(cid:60)all(cid:64) considered prolon(cid:43)ed(cid:87) (ii) Significant Accounting Estimates and Assumptions (cid:26)he carr(cid:64)in(cid:43) amo(cid:60)nts of certain assets and lia(cid:35)ilities are o(cid:273)en determined (cid:35)ased on estimates and ass(cid:60)mptions of f(cid:60)t(cid:60)re events(cid:87) (cid:26)he (cid:48)e(cid:64) estimates and ass(cid:60)mptions that have a si(cid:43)ni(cid:41)cant ris(cid:48) of ca(cid:60)sin(cid:43) a material ad(cid:47)(cid:60)stment to the carr(cid:64)in(cid:43) amo(cid:60)nts of certain assets and lia(cid:35)ilities within the ne(cid:63)t ann(cid:60)al reportin(cid:43) period are(cid:86) Share-based payment transactions (cid:26)he Gro(cid:60)p meas(cid:60)res the cost of e(cid:55)(cid:60)it(cid:64)(cid:102)se(cid:295)led transactions (cid:35)(cid:64) reference to the fair val(cid:60)e of the e(cid:55)(cid:60)it(cid:64) instr(cid:60)ments at the date at which the(cid:64) are (cid:43)ranted(cid:87) (cid:26)he fair val(cid:60)e is determined (cid:60)sin(cid:43) a (cid:35)inomial model(cid:84) (cid:60)sin(cid:43) the ass(cid:60)mptions detailed in (cid:18)ote (cid:136)(cid:139)(cid:87) Annual Report 2015 49 Financial Report Notes to the Financial Statements continued 2(cid:87) (cid:25)ummary of (cid:25)igni(cid:41)cant Accounting (cid:22)o(cid:163)icies (cid:108)continued(cid:109) Impairment of acquired exploration and evaluation assets (cid:26)he (cid:60)ltimate reco(cid:60)pment of the val(cid:60)e of e(cid:63)ploration and eval(cid:60)ation assets which is ac(cid:55)(cid:60)ired (cid:60)pon ac(cid:55)(cid:60)isition is dependent on the s(cid:60)ccessf(cid:60)l development and commercial e(cid:63)ploitation(cid:84) or alternativel(cid:64)(cid:84) sale(cid:84) of the e(cid:63)ploration and eval(cid:60)ation assets(cid:87) Impairment tests are carried o(cid:60)t on a re(cid:43)(cid:60)lar (cid:35)asis to identif(cid:64) whether the asset carr(cid:64)in(cid:43) val(cid:60)es e(cid:63)ceed their recovera(cid:35)le amo(cid:60)nts(cid:87) (cid:26)here is si(cid:43)ni(cid:41)cant estimation and (cid:47)(cid:60)d(cid:43)ement in determinin(cid:43) the inp(cid:60)ts and ass(cid:60)mptions (cid:60)sed in determinin(cid:43) the recovera(cid:35)le amo(cid:60)nts(cid:87) (cid:26)he (cid:48)e(cid:64) areas of (cid:47)(cid:60)d(cid:43)ement and estimation incl(cid:60)de(cid:86) – Recent e(cid:63)ploration and eval(cid:60)ation res(cid:60)lts and reso(cid:60)rce estimates(cid:85) – (cid:9)nvironmental iss(cid:60)es that ma(cid:64) impact on the (cid:60)nderl(cid:64)in(cid:43) tenements(cid:85) – F(cid:60)ndamental economic factors that have an impact on the operations and carr(cid:64)in(cid:43) val(cid:60)es of assets and lia(cid:35)ilities(cid:87) 2.6 Revenue Recognition Reven(cid:60)e is reco(cid:43)nised and meas(cid:60)red at the fair val(cid:60)e of the consideration received or receiva(cid:35)le to the e(cid:63)tent that it is pro(cid:35)a(cid:35)le that the economic (cid:35)ene(cid:41)ts will (cid:42)ow to the Gro(cid:60)p and the reven(cid:60)e can (cid:35)e relia(cid:35)l(cid:64) meas(cid:60)red(cid:87) (cid:26)he followin(cid:43) speci(cid:41)c reco(cid:43)nition criteria m(cid:60)st also (cid:35)e met (cid:35)efore reven(cid:60)e is reco(cid:43)nised(cid:86) Interest income Reven(cid:60)e is reco(cid:43)nised as the interest accr(cid:60)es (cid:108)(cid:60)sin(cid:43) the e(cid:248)ective interest method(cid:84) which is the method that e(cid:63)actl(cid:64) disco(cid:60)nts estimated f(cid:60)t(cid:60)re cash receipts thro(cid:60)(cid:43)h the life of the (cid:41)nancial asset(cid:109) to the net carr(cid:64)in(cid:43) amo(cid:60)nt of the (cid:41)nancial asset(cid:87) Technical services revenue Reven(cid:60)e from the provision of la(cid:35)o(cid:60)r services is reco(cid:43)nised in the month the service is provided(cid:87) 2.7 Leases (cid:26)he determination of whether an arran(cid:43)ement is or contains a lease is (cid:35)ased on the s(cid:60)(cid:35)stance of the arran(cid:43)ement and re(cid:55)(cid:60)ires an assessment of whether the f(cid:60)l(cid:41)lment of the arran(cid:43)ement is dependent on the (cid:60)se of a speci(cid:41)c asset or assets and the arran(cid:43)ement conve(cid:64)s a ri(cid:43)ht to (cid:60)se the asset(cid:87) Group as a lessee Finance leases(cid:84) which transfer to the Gro(cid:60)p s(cid:60)(cid:35)stantiall(cid:64) all the ris(cid:48)s and (cid:35)ene(cid:41)ts incidental to ownership of the leased item(cid:84) are capitalised at the inception of the lease at the fair val(cid:60)e of the leased propert(cid:64) or(cid:84) if lower(cid:84) at the present val(cid:60)e of the minim(cid:60)m lease pa(cid:64)ments(cid:87) 50 Sipa Resources Limited (cid:16)ease pa(cid:64)ments are apportioned (cid:35)etween the (cid:41)nance char(cid:43)es and red(cid:60)ction of the lease lia(cid:35)ilit(cid:64) so as to achieve a constant rate of interest on the remainin(cid:43) (cid:35)alance of the lia(cid:35)ilit(cid:64)(cid:87) Finance char(cid:43)es are reco(cid:43)nised as an e(cid:63)pense in the income statement(cid:87) (cid:6)apitalised leased assets are depreciated over the shorter of the estimated (cid:60)sef(cid:60)l life of the asset or the lease term(cid:84) if there is no reasona(cid:35)le certaint(cid:64) that the Gro(cid:60)p will o(cid:35)tain ownership (cid:35)(cid:64) the end of the lease term(cid:87) Operatin(cid:43) lease pa(cid:64)ments are reco(cid:43)nised as an e(cid:63)pense in the income statement on a strai(cid:43)ht(cid:102)line (cid:35)asis over the lease term(cid:87) (cid:16)ease incentives are reco(cid:43)nised in the income statement as an inte(cid:43)ral part of total lease e(cid:63)pense(cid:87) 2.8 Cash and Cash Equivalents (cid:6)ash and cash e(cid:55)(cid:60)ivalents in the (cid:6)onsolidated Statement of Financial (cid:22)osition comprise cash at (cid:35)an(cid:48) and in hand and short(cid:102)term deposits with an ori(cid:43)inal mat(cid:60)rit(cid:64) of three months or less(cid:87) For p(cid:60)rposes of the (cid:6)ash Flow Statement(cid:84) cash and cash e(cid:55)(cid:60)ivalents consist of cash and cash e(cid:55)(cid:60)ivalents as de(cid:41)ned a(cid:35)ove(cid:87) 2.9 Term Deposits Reserved for Rehabilitation (cid:26)erm deposits reserved for reha(cid:35)ilitation are classi(cid:41)ed as other receiva(cid:35)les with an ori(cid:43)inal mat(cid:60)rit(cid:64) of three to twelve months or less(cid:87) (cid:5)an(cid:48)west has (cid:43)iven a (cid:43)(cid:60)arantee to the (cid:8)epartment of (cid:17)inerals and (cid:9)ner(cid:43)(cid:64) in respect of performance (cid:35)onds totallin(cid:43) (cid:130)(cid:137)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) for which the (cid:35)an(cid:48) has a lien on an e(cid:55)(cid:60)ivalent amo(cid:60)nt of the compan(cid:64)’s term deposits(cid:87) 2.10 Trade and Other Receivables (cid:26)rade receiva(cid:35)les(cid:84) which (cid:43)enerall(cid:64) have (cid:138)(cid:135)(cid:102)(cid:142)(cid:135) da(cid:64) terms(cid:84) are reco(cid:43)nised and carried at ori(cid:43)inal invoice amo(cid:60)nt less an(cid:64) allowance for (cid:60)ncollecti(cid:35)le amo(cid:60)nts(cid:87) (cid:3)n allowance for do(cid:60)(cid:35)(cid:292)(cid:60)l de(cid:35)ts is made when there is o(cid:35)(cid:47)ective evidence that the Gro(cid:60)p will not (cid:35)e a(cid:35)le to collect the de(cid:35)ts(cid:87) Financial di(cid:259)c(cid:60)lties of the de(cid:35)tor(cid:84) defa(cid:60)lt pa(cid:64)ments or de(cid:35)ts more than (cid:164)(cid:135) da(cid:64)s overd(cid:60)e are considered o(cid:35)(cid:47)ective evidence of impairment(cid:87) (cid:5)ad de(cid:35)ts are wri(cid:295)en o(cid:248) when identi(cid:41)ed(cid:87) 2.11 Derecognition of Financial Instruments (cid:26)he dereco(cid:43)nition of a (cid:41)nancial instr(cid:60)ment ta(cid:48)es place when the Gro(cid:60)p no lon(cid:43)er controls the contract(cid:60)al ri(cid:43)hts that comprise the (cid:41)nancial instr(cid:60)ment(cid:84) which is normall(cid:64) the case when the instr(cid:60)ment is sold(cid:84) or all the cash (cid:42)ows a(cid:295)ri(cid:35)(cid:60)ta(cid:35)le to the instr(cid:60)ment are passed thro(cid:60)(cid:43)h to an independent third part(cid:64)(cid:87) Review of Operations | Governance | Financial Report | Shareholders’ Information 2.12 Impairment of Assets (cid:26)he Gro(cid:60)p assesses at each reportin(cid:43) date whether there is an indication that an asset ma(cid:64) (cid:35)e impaired(cid:87) If an(cid:64) s(cid:60)ch indication e(cid:63)ists(cid:84) or when ann(cid:60)al impairment testin(cid:43) for an asset is re(cid:55)(cid:60)ired(cid:84) the Gro(cid:60)p ma(cid:48)es an estimate of the asset’s recovera(cid:35)le amo(cid:60)nt(cid:87) (cid:3)n asset’s recovera(cid:35)le amo(cid:60)nt is the hi(cid:43)her of its fair val(cid:60)e less costs to dispose and its val(cid:60)e in (cid:60)se and is determined for an individ(cid:60)al asset(cid:84) (cid:60)nless that asset does not (cid:43)enerate cash in(cid:42)ows that are lar(cid:43)el(cid:64) independent of those from other assets or (cid:43)ro(cid:60)ps of assets and the asset’s val(cid:60)e in (cid:60)se cannot (cid:35)e estimated to (cid:35)e close to its fair val(cid:60)e(cid:87) In s(cid:60)ch cases the asset is tested for impairment as part of the (cid:6)ash(cid:102)Generatin(cid:43) (cid:27)nit (cid:108)(cid:6)G(cid:27)(cid:109) to which it (cid:35)elon(cid:43)s(cid:87) (cid:29)hen the carr(cid:64)in(cid:43) amo(cid:60)nt of an asset or cash(cid:102)(cid:43)eneratin(cid:43) (cid:60)nit e(cid:63)ceeds its recovera(cid:35)le amo(cid:60)nt(cid:84) the asset or cash (cid:43)eneratin(cid:43) (cid:60)nit is considered impaired and is wri(cid:295)en down to its recovera(cid:35)le amo(cid:60)nt(cid:87) In assessin(cid:43) val(cid:60)e in (cid:60)se(cid:84) the estimated f(cid:60)t(cid:60)re cash (cid:42)ows are disco(cid:60)nted to their present val(cid:60)e (cid:60)sin(cid:43) a pre(cid:102)ta(cid:63) disco(cid:60)nt rate that re(cid:42)ects c(cid:60)rrent mar(cid:48)et assessments of the time val(cid:60)e of mone(cid:64) and the ris(cid:48)s speci(cid:41)c to the asset or (cid:6)G(cid:27)(cid:87) In determinin(cid:43) fair val(cid:60)e less costs of disposal(cid:84) recent mar(cid:48)et transactions are ta(cid:48)en into acco(cid:60)nt(cid:87) If no s(cid:60)ch transactions can (cid:35)e identi(cid:41)ed(cid:84) an appropriate val(cid:60)ation model is (cid:60)sed(cid:87) (cid:26)hese calc(cid:60)lations are corro(cid:35)orated (cid:35)(cid:64) val(cid:60)ation m(cid:60)ltiples or other availa(cid:35)le fair val(cid:60)e indicators(cid:87) (cid:3)n assessment is also made at each reportin(cid:43) date as to whether there is an(cid:64) indication that previo(cid:60)sl(cid:64) reco(cid:43)nised impairment losses ma(cid:64) no lon(cid:43)er e(cid:63)ist or ma(cid:64) have decreased(cid:87) If s(cid:60)ch indication e(cid:63)ists(cid:84) the recovera(cid:35)le amo(cid:60)nt is estimated(cid:87) (cid:3) previo(cid:60)sl(cid:64) reco(cid:43)nised impairment loss is reversed onl(cid:64) if there has (cid:35)een a chan(cid:43)e in the estimates (cid:60)sed to determine the asset’s recovera(cid:35)le amo(cid:60)nt since the last impairment loss was reco(cid:43)nised(cid:87) If that is the case the carr(cid:64)in(cid:43) amo(cid:60)nt of the asset is increased to its recovera(cid:35)le amo(cid:60)nt(cid:87) (cid:26)hat increased amo(cid:60)nt cannot e(cid:63)ceed the carr(cid:64)in(cid:43) amo(cid:60)nt that wo(cid:60)ld have (cid:35)een determined(cid:84) net of depreciation(cid:84) had no impairment loss (cid:35)een reco(cid:43)nised for the asset in prior (cid:64)ears(cid:87) S(cid:60)ch reversal is reco(cid:43)nised in pro(cid:41)t or loss (cid:60)nless the asset is carried at reval(cid:60)ed amo(cid:60)nt(cid:84) in which case the reversal is treated as a reval(cid:60)ation increase(cid:87) (cid:3)(cid:273)er s(cid:60)ch a reversal the depreciation char(cid:43)e is ad(cid:47)(cid:60)sted in f(cid:60)t(cid:60)re periods to allocate the asset’s revised carr(cid:64)in(cid:43) amo(cid:60)nt(cid:84) less an(cid:64) resid(cid:60)al val(cid:60)e(cid:84) on a s(cid:64)stematic (cid:35)asis over its remainin(cid:43) (cid:60)sef(cid:60)l life(cid:87) 2.13 Interest in a Joint (cid:28)enture (cid:3) (cid:47)oint vent(cid:60)re is a t(cid:64)pe of (cid:47)oint arran(cid:43)ement where(cid:35)(cid:64) the parties that have (cid:47)oint control of the arran(cid:43)ement have ri(cid:43)hts to the net assets of the (cid:47)oint vent(cid:60)re(cid:87) (cid:14)oint control is the contract(cid:60)all(cid:64) a(cid:43)reed sharin(cid:43) of control of an arran(cid:43)ement(cid:84) which e(cid:63)ists onl(cid:64) when decisions a(cid:35)o(cid:60)t the relevant activities re(cid:55)(cid:60)ire (cid:60)nanimo(cid:60)s consent of the parties sharin(cid:43) control(cid:87) (cid:26)he considerations made in determinin(cid:43) (cid:47)oint control are similar to those necessar(cid:64) to determine control over s(cid:60)(cid:35)sidiaries(cid:87) (cid:26)he Gro(cid:60)p’s investments in its (cid:47)oint vent(cid:60)re is acco(cid:60)nted for (cid:60)sin(cid:43) the e(cid:55)(cid:60)it(cid:64) method(cid:87) (cid:27)nder the e(cid:55)(cid:60)it(cid:64) method(cid:84) the investment in a (cid:47)oint vent(cid:60)re is initiall(cid:64) reco(cid:43)nised at cost(cid:87) (cid:26)he carr(cid:64)in(cid:43) amo(cid:60)nt of the investment is ad(cid:47)(cid:60)sted to reco(cid:43)nise chan(cid:43)es in the Gro(cid:60)p’s share of net assets of the (cid:47)oint vent(cid:60)re since the ac(cid:55)(cid:60)isition date(cid:87) (cid:26)he statement of pro(cid:41)t or loss re(cid:42)ects the Gro(cid:60)p’s share of the res(cid:60)lts of operations of the (cid:47)oint vent(cid:60)re(cid:87) (cid:3)n(cid:64) chan(cid:43)e in O(cid:6)I of those investees is presented as part of the Gro(cid:60)p’s O(cid:6)I(cid:87) In addition(cid:84) when there has (cid:35)een a chan(cid:43)e reco(cid:43)nised directl(cid:64) in the e(cid:55)(cid:60)it(cid:64) of the (cid:47)oint vent(cid:60)re(cid:84) the Gro(cid:60)p reco(cid:43)nises its share of an(cid:64) chan(cid:43)es(cid:84) when applica(cid:35)le(cid:84) in the statement of chan(cid:43)es in e(cid:55)(cid:60)it(cid:64)(cid:87) (cid:27)nrealised (cid:43)ains and losses res(cid:60)ltin(cid:43) from transactions (cid:35)etween the Gro(cid:60)p and the (cid:47)oint vent(cid:60)re are eliminated to the e(cid:63)tent of the interest in the (cid:47)oint vent(cid:60)re(cid:87) (cid:26)he a(cid:43)(cid:43)re(cid:43)ate of the Gro(cid:60)p’s share of pro(cid:41)t or loss of a (cid:47)oint vent(cid:60)re is shown on the face of the statement of pro(cid:41)t or loss o(cid:60)tside operatin(cid:43) pro(cid:41)t and represents pro(cid:41)t or loss a(cid:273)er ta(cid:63)(cid:87) (cid:26)he (cid:41)nancial statements of the (cid:47)oint vent(cid:60)re are prepared for the same reportin(cid:43) period as the Gro(cid:60)p(cid:87) (cid:29)hen necessar(cid:64)(cid:84) ad(cid:47)(cid:60)stments are made to (cid:35)rin(cid:43) the acco(cid:60)ntin(cid:43) policies in line with those of the Gro(cid:60)p(cid:87) (cid:3)(cid:273)er application of the e(cid:55)(cid:60)it(cid:64) method(cid:84) the Gro(cid:60)p determines whether it is necessar(cid:64) to reco(cid:43)nise an impairment loss on its investment in its (cid:47)oint vent(cid:60)re(cid:87) (cid:3)t each reportin(cid:43) date(cid:84) the Gro(cid:60)p determines whether there is o(cid:35)(cid:47)ective evidence that the investment in the (cid:47)oint vent(cid:60)re is impaired(cid:87) If there is s(cid:60)ch evidence(cid:84) the Gro(cid:60)p calc(cid:60)lates the amo(cid:60)nt of impairment as the di(cid:248)erence (cid:35)etween the recovera(cid:35)le amo(cid:60)nt of the (cid:47)oint vent(cid:60)re and its carr(cid:64)in(cid:43) val(cid:60)e(cid:84) then reco(cid:43)nises the loss as (cid:89)Share of pro(cid:41)t of a (cid:47)oint vent(cid:60)re’ in the statement of pro(cid:41)t or loss(cid:87) (cid:27)pon loss of (cid:47)oint control over the (cid:47)oint vent(cid:60)re(cid:84) the Gro(cid:60)p meas(cid:60)res and reco(cid:43)nises an(cid:64) retained investment at its fair val(cid:60)e(cid:87) (cid:3)n(cid:64) di(cid:248)erence (cid:35)etween the carr(cid:64)in(cid:43) amo(cid:60)nt of the (cid:47)oint vent(cid:60)re (cid:60)pon loss of (cid:47)oint control and the fair val(cid:60)e of the retained investment and proceeds from disposal is reco(cid:43)nised in pro(cid:41)t or loss(cid:87) Annual Report 2015 51 Financial Report Notes to the Financial Statements continued 2(cid:87) (cid:25)ummary of (cid:25)igni(cid:41)cant Accounting (cid:22)o(cid:163)icies (cid:108)continued(cid:109) 2.14 Foreign Currency Translation (cid:26)he Gro(cid:60)p’s consolidated (cid:41)nancial report is presented in (cid:3)(cid:60)stralian (cid:8)ollars(cid:84) which is also the parent compan(cid:64)’s f(cid:60)nctional c(cid:60)rrenc(cid:64)(cid:87) (cid:9)ach entit(cid:64) in the Gro(cid:60)p and its (cid:47)oint vent(cid:60)re determines its own f(cid:60)nctional c(cid:60)rrenc(cid:64) and items incl(cid:60)ded in the (cid:41)nancial statements of each entit(cid:64) is meas(cid:60)red (cid:60)sin(cid:43) that f(cid:60)nctional c(cid:60)rrenc(cid:64)(cid:87) (cid:26)he assets and lia(cid:35)ilities of forei(cid:43)n operations are translated into (cid:3)(cid:60)stralian (cid:8)ollars at the rate of e(cid:63)chan(cid:43)e prevailin(cid:43) at the reportin(cid:43) date and their income statements are translated at e(cid:63)chan(cid:43)e rates prevailin(cid:43) at the dates of the transactions(cid:87) (cid:26)he e(cid:63)chan(cid:43)e di(cid:248)erences arisin(cid:43) on translation for consolidation are reco(cid:43)nised in other comprehensive income(cid:87) On disposal of a forei(cid:43)n operation(cid:84) the component of other comprehensive income relatin(cid:43) to that partic(cid:60)lar forei(cid:43)n operation is reco(cid:43)nised in the income statement(cid:87) 2.15 Income Tax (cid:6)(cid:60)rrent ta(cid:63) assets and lia(cid:35)ilities for the c(cid:60)rrent and prior periods are meas(cid:60)red at the amo(cid:60)nt e(cid:63)pected to (cid:35)e recovered from or paid to the ta(cid:63)ation a(cid:60)thorities(cid:87) (cid:26)he ta(cid:63) rates and ta(cid:63) laws (cid:60)sed to comp(cid:60)te the amo(cid:60)nt are those that are enacted or s(cid:60)(cid:35)stantivel(cid:64) enacted (cid:35)(cid:64) the reportin(cid:43) date(cid:87) (cid:8)eferred income ta(cid:63) is provided on all temporar(cid:64) di(cid:248)erences at the reportin(cid:43) date (cid:35)etween the ta(cid:63) (cid:35)ases of assets and lia(cid:35)ilities and their carr(cid:64)in(cid:43) amo(cid:60)nts for (cid:41)nancial reportin(cid:43) p(cid:60)rposes(cid:87) (cid:8)eferred income ta(cid:63) lia(cid:35)ilities are reco(cid:43)nised for all ta(cid:63)a(cid:35)le temporar(cid:64) di(cid:248)erences e(cid:63)cept(cid:86) – when the deferred income ta(cid:63) lia(cid:35)ilit(cid:64) arises from the initial reco(cid:43)nition of (cid:43)oodwill or of an asset or lia(cid:35)ilit(cid:64) in a transaction that is not a (cid:35)(cid:60)siness com(cid:35)ination and(cid:84) at the time of the transaction(cid:84) a(cid:248)ects neither the acco(cid:60)ntin(cid:43) pro(cid:41)t nor ta(cid:63)a(cid:35)le pro(cid:41)t or loss(cid:85) or – when the ta(cid:63)a(cid:35)le temporar(cid:64) di(cid:248)erence is associated with investments in s(cid:60)(cid:35)sidiaries(cid:84) or interest in (cid:47)oint vent(cid:60)res and the timin(cid:43) of the reversal of the temporar(cid:64) di(cid:248)erence can (cid:35)e controlled and it is pro(cid:35)a(cid:35)le that the temporar(cid:64) di(cid:248)erences will not reverse in the foreseea(cid:35)le f(cid:60)t(cid:60)re(cid:87) (cid:8)eferred income ta(cid:63) assets are reco(cid:43)nised for all ded(cid:60)cti(cid:35)le temporar(cid:64) di(cid:248)erences(cid:84) carr(cid:64)(cid:102)forward of (cid:60)n(cid:60)sed ta(cid:63) assets and (cid:60)n(cid:60)sed ta(cid:63) losses(cid:84) to the e(cid:63)tent that it is pro(cid:35)a(cid:35)le that ta(cid:63)a(cid:35)le pro(cid:41)t will (cid:35)e availa(cid:35)le a(cid:43)ainst which the ded(cid:60)cti(cid:35)le temporar(cid:64) di(cid:248)erences and the carr(cid:64)(cid:102) forward of (cid:60)n(cid:60)sed ta(cid:63) assets and (cid:60)n(cid:60)sed ta(cid:63) losses can (cid:35)e (cid:60)tilised e(cid:63)cept(cid:86) – when the deferred income ta(cid:63) asset relatin(cid:43) to the ded(cid:60)cti(cid:35)le temporar(cid:64) di(cid:248)erence arises from the initial reco(cid:43)nition of an asset or lia(cid:35)ilit(cid:64) in a transaction that 52 Sipa Resources Limited is not a (cid:35)(cid:60)siness com(cid:35)ination and(cid:84) at the time of the transaction(cid:84) a(cid:248)ects neither the acco(cid:60)ntin(cid:43) pro(cid:41)t nor ta(cid:63)a(cid:35)le pro(cid:41)t or loss(cid:85) or – when the ded(cid:60)cti(cid:35)le temporar(cid:64) di(cid:248)erence is associated with investments in s(cid:60)(cid:35)sidiaries or interest in (cid:47)oint vent(cid:60)re(cid:84) in which case a deferred ta(cid:63) asset is onl(cid:64) reco(cid:43)nised to the e(cid:63)tent that it is pro(cid:35)a(cid:35)le that the temporar(cid:64) di(cid:248)erences will reverse in the foreseea(cid:35)le f(cid:60)t(cid:60)re and ta(cid:63)a(cid:35)le pro(cid:41)t will (cid:35)e availa(cid:35)le a(cid:43)ainst which the temporar(cid:64) di(cid:248)erences can (cid:35)e (cid:60)tilised(cid:87) (cid:27)nreco(cid:43)nised deferred income ta(cid:63) assets are reassessed at each reportin(cid:43) date and are reco(cid:43)nised to the e(cid:63)tent that it has (cid:35)ecome pro(cid:35)a(cid:35)le that f(cid:60)t(cid:60)re ta(cid:63)a(cid:35)le pro(cid:41)t will allow the deferred ta(cid:63) asset to (cid:35)e recovered(cid:87) (cid:26)he carr(cid:64)in(cid:43) amo(cid:60)nt of deferred income ta(cid:63) assets is reviewed at each reportin(cid:43) date and red(cid:60)ced to the e(cid:63)tent that it is no lon(cid:43)er pro(cid:35)a(cid:35)le that s(cid:60)(cid:259)cient ta(cid:63)a(cid:35)le pro(cid:41)t will (cid:35)e availa(cid:35)le to allow all or part of the deferred income ta(cid:63) asset to (cid:35)e (cid:60)tilised(cid:87) (cid:8)eferred income ta(cid:63) assets and lia(cid:35)ilities are meas(cid:60)red at the ta(cid:63) rates that are e(cid:63)pected to appl(cid:64) to the (cid:64)ear when the asset is realised or the lia(cid:35)ilit(cid:64) is se(cid:295)led(cid:84) (cid:35)ased on ta(cid:63) rates (cid:108)and ta(cid:63) laws(cid:109) that have (cid:35)een enacted or s(cid:60)(cid:35)stantivel(cid:64) enacted at the reportin(cid:43) date(cid:87) Income ta(cid:63)es relatin(cid:43) to items reco(cid:43)nised directl(cid:64) in e(cid:55)(cid:60)it(cid:64) are reco(cid:43)nised in e(cid:55)(cid:60)it(cid:64) and not in the income statement(cid:87) (cid:8)eferred ta(cid:63) assets and deferred ta(cid:63) lia(cid:35)ilities are o(cid:248)set onl(cid:64) if a le(cid:43)all(cid:64) enforcea(cid:35)le ri(cid:43)ht e(cid:63)ists to set o(cid:248) c(cid:60)rrent ta(cid:63) assets a(cid:43)ainst c(cid:60)rrent ta(cid:63) lia(cid:35)ilities and the deferred ta(cid:63) lia(cid:35)ilities relate to the same ta(cid:63)a(cid:35)le entit(cid:64) and the same ta(cid:63)ation a(cid:60)thorit(cid:64)(cid:87) 2.16 GST Reven(cid:60)es(cid:84) e(cid:63)penses and assets are reco(cid:43)nised net of the amo(cid:60)nt of GS(cid:26) e(cid:63)cept(cid:86) – when the GS(cid:26) inc(cid:60)rred on a p(cid:60)rchase of (cid:43)oods and services is not recovera(cid:35)le from the ta(cid:63)ation a(cid:60)thorit(cid:64)(cid:84) in which case the GS(cid:26) is reco(cid:43)nised as part of the cost of ac(cid:55)(cid:60)isition of the asset or as part of the e(cid:63)pense item as applica(cid:35)le(cid:85) and – receiva(cid:35)les and pa(cid:64)a(cid:35)les are stated with the amo(cid:60)nt of GS(cid:26) incl(cid:60)ded(cid:87) (cid:26)he net amo(cid:60)nt of GS(cid:26) recovera(cid:35)le from(cid:84) or pa(cid:64)a(cid:35)le to(cid:84) the ta(cid:63)ation a(cid:60)thorit(cid:64) is incl(cid:60)ded as part of receiva(cid:35)les or pa(cid:64)a(cid:35)les in the (cid:6)onsolidated Statement of Financial (cid:22)osition(cid:87) (cid:6)ash (cid:42)ows are incl(cid:60)ded in the (cid:6)ash Flow Statement on a (cid:43)ross (cid:35)asis and the GS(cid:26) component of cash (cid:42)ows arisin(cid:43) from investin(cid:43) and (cid:41)nancin(cid:43) activities(cid:84) which is recovera(cid:35)le from(cid:84) or pa(cid:64)a(cid:35)le to(cid:84) the ta(cid:63)ation a(cid:60)thorit(cid:64) are classi(cid:41)ed as operatin(cid:43) cash (cid:42)ows(cid:87) (cid:6)ommitments and contin(cid:43)encies are disclosed net of the amo(cid:60)nt of GS(cid:26) recovera(cid:35)le from(cid:84) or pa(cid:64)a(cid:35)le to(cid:84) the ta(cid:63)ation a(cid:60)thorit(cid:64)(cid:87) Review of Operations | Governance | Financial Report | Shareholders’ Information 2.17 Plant and Equipment (cid:22)lant and e(cid:55)(cid:60)ipment is carried at cost less acc(cid:60)m(cid:60)lated depreciation and an(cid:64) acc(cid:60)m(cid:60)lated impairment losses(cid:87) (cid:8)epreciation is calc(cid:60)lated on a strai(cid:43)ht(cid:102)line (cid:35)asis over the estimated (cid:60)sef(cid:60)l life of the asset as follows(cid:86) – (cid:22)lant and e(cid:55)(cid:60)ipment (cid:137) (cid:103) (cid:136)(cid:140) (cid:64)ears (cid:26)he assets resid(cid:60)al val(cid:60)es(cid:84) (cid:60)sef(cid:60)l lives and depreciation methods are reviewed(cid:84) and ad(cid:47)(cid:60)sted if appropriate(cid:84) at each (cid:41)nancial (cid:64)ear end(cid:87) Derecognition (cid:3)n item of plant and e(cid:55)(cid:60)ipment is dereco(cid:43)nised (cid:60)pon disposal or when no f(cid:60)t(cid:60)re economic (cid:35)ene(cid:41)ts are e(cid:63)pected to arise from the contin(cid:60)ed (cid:60)se of the asset(cid:87) (cid:3)n(cid:64) (cid:43)ain or loss arisin(cid:43) on dereco(cid:43)nition of the asset (cid:108)calc(cid:60)lated as the di(cid:248)erence (cid:35)etween the net disposal proceeds and the carr(cid:64)in(cid:43) amo(cid:60)nt of the item(cid:109) is included in the income statement in the period the item is dereco(cid:43)nised(cid:87) 2.18 Exploration and Evaluation (cid:9)(cid:63)ploration and eval(cid:60)ation e(cid:63)pendit(cid:60)re inc(cid:60)rred (cid:35)(cid:64) or on (cid:35)ehalf of the consolidated entit(cid:64) is acc(cid:60)m(cid:60)lated separatel(cid:64) for each prospect area(cid:87) (cid:26)he consolidated entit(cid:64) has a polic(cid:64) of writin(cid:43) o(cid:248) all e(cid:63)ploration e(cid:63)pendit(cid:60)re in the (cid:41)nancial (cid:64)ear in which it is inc(cid:60)rred(cid:84) (cid:60)nless its reco(cid:60)pment o(cid:60)t of reven(cid:60)e to (cid:35)e derived from the s(cid:60)ccessf(cid:60)l development of the prospect(cid:84) or from sale of that prospect(cid:84) is ass(cid:60)red (cid:35)e(cid:64)ond reasona(cid:35)le do(cid:60)(cid:35)t(cid:87) 2.19 Investments and Other Financial Assets Financial assets in the scope of (cid:3)(cid:3)S(cid:5) (cid:136)(cid:138)(cid:142) Financial Instr(cid:60)ments(cid:86) Reco(cid:43)nition and (cid:17)eas(cid:60)rement are classi(cid:41)ed as either (cid:41)nancial assets at fair val(cid:60)e thro(cid:60)(cid:43)h pro(cid:41)t or loss(cid:84) loans and receiva(cid:35)les(cid:84) held(cid:102)to(cid:102)mat(cid:60)rit(cid:64) investments(cid:84) and availa(cid:35)le(cid:102)for(cid:102)sale (cid:41)nancial assets(cid:84) as appropriate(cid:87) (cid:26)he classi(cid:41)cation depends on the p(cid:60)rpose for which the (cid:41)nancial assets were ac(cid:55)(cid:60)ired(cid:87) (cid:17)ana(cid:43)ement determines the classi(cid:41)cation of its (cid:41)nancial assets at initial reco(cid:43)nition(cid:87) Financial assets at fair value through profit or loss (cid:26)his cate(cid:43)or(cid:64) has two s(cid:60)(cid:35)(cid:102)cate(cid:43)ories(cid:86) (cid:41)nancial assets held for tradin(cid:43)(cid:84) and those desi(cid:43)nated at fair val(cid:60)e thro(cid:60)(cid:43)h pro(cid:41)t or loss on initial reco(cid:43)nition(cid:87) (cid:3) (cid:41)nancial asset is classi(cid:41)ed in this cate(cid:43)or(cid:64) if ac(cid:55)(cid:60)ired principall(cid:64) for the p(cid:60)rpose of sellin(cid:43) in the short term or if so desi(cid:43)nated (cid:35)(cid:64) mana(cid:43)ement(cid:87) Gains or losses on investments held for tradin(cid:43) are reco(cid:43)nised in the income statement(cid:87) Loans and receivables (cid:16)oans and receiva(cid:35)les are non(cid:102)derivative (cid:41)nancial assets with (cid:41)(cid:63)ed or determina(cid:35)le pa(cid:64)ments that are not (cid:55)(cid:60)oted in an active mar(cid:48)et(cid:87) S(cid:60)ch assets are carried at amortised cost (cid:60)sin(cid:43) the e(cid:248)ective interest method(cid:87) Gains and losses are reco(cid:43)nised in the income statement when the loans and receiva(cid:35)les are dereco(cid:43)nised or impaired(cid:84) as well as thro(cid:60)(cid:43)h the amortisation process(cid:87) Available-for-sale financial assets (cid:3)vaila(cid:35)le(cid:102)for(cid:102)sale (cid:41)nancial assets(cid:84) comprisin(cid:43) principall(cid:64) mar(cid:48)eta(cid:35)le e(cid:55)(cid:60)it(cid:64) sec(cid:60)rities(cid:84) are non(cid:102)derivatives that are either desi(cid:43)nated in this cate(cid:43)or(cid:64) or not classi(cid:41)ed in an(cid:64) of the three precedin(cid:43) cate(cid:43)ories(cid:87) (cid:3)(cid:273)er initial reco(cid:43)nition availa(cid:35)le(cid:102)for(cid:102)sale investments are meas(cid:60)red at fair val(cid:60)e with (cid:43)ains or losses (cid:35)ein(cid:43) reco(cid:43)nised as a separate component of e(cid:55)(cid:60)it(cid:64) (cid:60)ntil the investment is dereco(cid:43)nised or (cid:60)ntil the investment is determined to (cid:35)e impaired(cid:84) at which time the c(cid:60)m(cid:60)lative (cid:43)ain or loss previo(cid:60)sl(cid:64) reported in e(cid:55)(cid:60)it(cid:64) is reco(cid:43)nised in the income statement(cid:87) (cid:26)he fair val(cid:60)e of investments that are activel(cid:64) traded in or(cid:43)anised (cid:41)nancial mar(cid:48)ets is determined (cid:35)(cid:64) reference to (cid:55)(cid:60)oted mar(cid:48)et (cid:35)id prices at the close of (cid:35)(cid:60)siness on the reportin(cid:43) date(cid:87) For investments with no active mar(cid:48)et(cid:84) fair val(cid:60)e is determined (cid:60)sin(cid:43) val(cid:60)ation techni(cid:55)(cid:60)es(cid:87) S(cid:60)ch techni(cid:55)(cid:60)es incl(cid:60)de (cid:60)sin(cid:43) recent arm’s len(cid:43)th mar(cid:48)et transactions(cid:84) reference to the c(cid:60)rrent mar(cid:48)et val(cid:60)e of another instr(cid:60)ment that is s(cid:60)(cid:35)stantiall(cid:64) the same(cid:84) and disco(cid:60)nted cash (cid:42)ow anal(cid:64)sis(cid:87) Annual Report 2015 53 Financial Report Notes to the Financial Statements continued 2(cid:87) (cid:25)ummary of (cid:25)igni(cid:41)cant Accounting (cid:22)o(cid:163)icies (cid:108)continued(cid:109) 2.20 Impairment of financial assets (cid:26)he Gro(cid:60)p assesses at each reportin(cid:43) date whether a (cid:41)nancial asset or (cid:43)ro(cid:60)p of (cid:41)nancial assets is impaired(cid:87) (i) Financial assets carried at amortised cost If there is o(cid:35)(cid:47)ective evidence that an impairment loss on held(cid:102)to(cid:102)mat(cid:60)rit(cid:64) investments or loans and receiva(cid:35)les carried at amortised cost has (cid:35)een inc(cid:60)rred(cid:84) the amo(cid:60)nt of the loss is meas(cid:60)red as the di(cid:248)erence (cid:35)etween the asset’s carr(cid:64)in(cid:43) amo(cid:60)nt and the present val(cid:60)e of estimated f(cid:60)t(cid:60)re cash (cid:42)ows (cid:108)e(cid:63)cl(cid:60)din(cid:43) f(cid:60)t(cid:60)re credit losses that have not (cid:35)een inc(cid:60)rred(cid:109) disco(cid:60)nted at the (cid:41)nancial asset’s ori(cid:43)inal e(cid:248)ective interest rate (cid:108)ie the e(cid:248)ective interest rate comp(cid:60)ted at initial reco(cid:43)nition(cid:109)(cid:87) (cid:26)he carr(cid:64)in(cid:43) amo(cid:60)nt of the asset is red(cid:60)ced either directl(cid:64) or thro(cid:60)(cid:43)h (cid:60)se of an allowance acco(cid:60)nt(cid:87) (cid:26)he amo(cid:60)nt of the loss is reco(cid:43)nised in income statement(cid:87) (cid:26)he Gro(cid:60)p (cid:41)rst assesses whether o(cid:35)(cid:47)ective evidence of impairment e(cid:63)ists individ(cid:60)all(cid:64) for (cid:41)nancial assets that are individ(cid:60)all(cid:64) si(cid:43)ni(cid:41)cant(cid:84) and individ(cid:60)all(cid:64) or collectivel(cid:64) for (cid:41)nancial assets that are not individ(cid:60)all(cid:64) si(cid:43)ni(cid:41)cant(cid:87) If it is determined that no o(cid:35)(cid:47)ective evidence of impairment e(cid:63)ists for an individ(cid:60)all(cid:64) assessed (cid:41)nancial asset(cid:84) whether si(cid:43)ni(cid:41)cant or not(cid:84) the asset is incl(cid:60)ded in a (cid:43)ro(cid:60)p of (cid:41)nancial assets with similar credit ris(cid:48) characteristics and that (cid:43)ro(cid:60)p of (cid:41)nancial assets is collectivel(cid:64) assessed for impairment(cid:87) (cid:3)ssets that are individ(cid:60)all(cid:64) assessed for impairment and for which an impairment loss is or contin(cid:60)es to (cid:35)e reco(cid:43)nised are not incl(cid:60)ded in a collective assessment of impairment(cid:87) If(cid:84) in a s(cid:60)(cid:35)se(cid:55)(cid:60)ent period(cid:84) the amo(cid:60)nt of the impairment loss decreases and the decrease can (cid:35)e related o(cid:35)(cid:47)ectivel(cid:64) to an event occ(cid:60)rrin(cid:43) a(cid:273)er the impairment was reco(cid:43)nised(cid:84) the previo(cid:60)sl(cid:64) reco(cid:43)nised impairment loss is reversed(cid:87) (cid:3)n(cid:64) s(cid:60)(cid:35)se(cid:55)(cid:60)ent reversal of an impairment loss is reco(cid:43)nised in income statement(cid:84) to the e(cid:63)tent that the carr(cid:64)in(cid:43) val(cid:60)e of the asset does not e(cid:63)ceed its amortised cost at the reversal date(cid:87) (ii) Financial assets carried at cost If there is o(cid:35)(cid:47)ective evidence that an impairment loss has (cid:35)een inc(cid:60)rred on an (cid:60)n(cid:55)(cid:60)oted e(cid:55)(cid:60)it(cid:64) instr(cid:60)ment that is not carried at fair val(cid:60)e (cid:108)(cid:35)eca(cid:60)se its fair val(cid:60)e cannot (cid:35)e relia(cid:35)l(cid:64) meas(cid:60)red(cid:109)(cid:84) or on a derivative asset that is lin(cid:48)ed to and m(cid:60)st (cid:35)e se(cid:295)led (cid:35)(cid:64) deliver(cid:64) of s(cid:60)ch an (cid:60)n(cid:55)(cid:60)oted e(cid:55)(cid:60)it(cid:64) instr(cid:60)ment(cid:84) the amo(cid:60)nt of the loss is meas(cid:60)red as the di(cid:248)erence (cid:35)etween the asset’s carr(cid:64)in(cid:43) amo(cid:60)nt and the present val(cid:60)e of estimated f(cid:60)t(cid:60)re cash (cid:42)ows(cid:84) disco(cid:60)nted at the c(cid:60)rrent mar(cid:48)et rate of ret(cid:60)rn for a similar (cid:41)nancial asset(cid:87) (iii) Available-for-sale investments If there is o(cid:35)(cid:47)ective evidence that an availa(cid:35)le(cid:102)for(cid:102) sale investment is impaired(cid:84) an amo(cid:60)nt comprisin(cid:43) the di(cid:248)erence (cid:35)etween its cost and its c(cid:60)rrent fair val(cid:60)e(cid:84) less 54 Sipa Resources Limited an(cid:64) impairment loss previo(cid:60)sl(cid:64) reco(cid:43)nised in pro(cid:41)t or loss(cid:84) is transferred from e(cid:55)(cid:60)it(cid:64) to the income statement(cid:87) Reversals of impairment losses for e(cid:55)(cid:60)it(cid:64) instr(cid:60)ments classi(cid:41)ed as availa(cid:35)le(cid:102)for(cid:102)sale are not reco(cid:43)nised in pro(cid:41)t(cid:87) (cid:3) si(cid:43)ni(cid:41)cant or prolon(cid:43) decline in mar(cid:48)et val(cid:60)e is considered as o(cid:35)(cid:47)ective evidence(cid:87) Reversals of impairment losses for de(cid:35)t instr(cid:60)ments are reversed thro(cid:60)(cid:43)h the income statement if the increase in an instr(cid:60)ment’s fair val(cid:60)e can (cid:35)e o(cid:35)(cid:47)ectivel(cid:64) related to an event occ(cid:60)rrin(cid:43) a(cid:273)er the impairment loss was reco(cid:43)nised in pro(cid:41)t or loss(cid:87) 2.21 Trade and Other Payables (cid:26)rade pa(cid:64)a(cid:35)les and other pa(cid:64)a(cid:35)les are carried at amortised costs and represent lia(cid:35)ilities for (cid:43)oods and services provided to the Gro(cid:60)p prior to the end of the (cid:41)nancial (cid:64)ear that are (cid:60)npaid and arise when the Gro(cid:60)p (cid:35)ecomes o(cid:35)li(cid:43)ed to ma(cid:48)e f(cid:60)t(cid:60)re pa(cid:64)ments in respect of the p(cid:60)rchase of these (cid:43)oods and services(cid:87) 2.22 Provisions (cid:22)rovisions are reco(cid:43)nised when the Gro(cid:60)p has a present o(cid:35)li(cid:43)ation (cid:108)le(cid:43)al or constr(cid:60)ctive(cid:109) as a res(cid:60)lt of a past event(cid:84) it is pro(cid:35)a(cid:35)le that an o(cid:60)(cid:292)low of reso(cid:60)rces em(cid:35)od(cid:64)in(cid:43) economic (cid:35)ene(cid:41)ts will (cid:35)e re(cid:55)(cid:60)ired to se(cid:295)le the o(cid:35)li(cid:43)ation and a relia(cid:35)le estimate can (cid:35)e made of the amo(cid:60)nt of the o(cid:35)li(cid:43)ation(cid:87) If the e(cid:248)ect of the time val(cid:60)e of mone(cid:64) is material(cid:84) provisions are determined (cid:35)(cid:64) disco(cid:60)ntin(cid:43) the e(cid:63)pected f(cid:60)t(cid:60)re cash (cid:42)ows at a pre(cid:102)ta(cid:63) rate that re(cid:42)ects c(cid:60)rrent mar(cid:48)et assessments of the time val(cid:60)e of mone(cid:64) and(cid:84) where appropriate(cid:84) the ris(cid:48)s speci(cid:41)c to the lia(cid:35)ilit(cid:64)(cid:87) (cid:29)hen disco(cid:60)ntin(cid:43) is (cid:60)sed(cid:84) the increase in the provision d(cid:60)e to the passa(cid:43)e of time is reco(cid:43)nised as a (cid:41)nance cost(cid:87) 2.23 Employee Benefits (cid:22)rovision is made for amo(cid:60)nts e(cid:63)pected to (cid:35)e paid to emplo(cid:64)ees of the Gro(cid:60)p in respect of their entitlement to ann(cid:60)al leave and lon(cid:43) service leave arisin(cid:43) from services rendered (cid:35)(cid:64) emplo(cid:64)ees to the reportin(cid:43) date(cid:87) (cid:9)mplo(cid:64)ee (cid:35)ene(cid:41)ts d(cid:60)e to (cid:35)e se(cid:295)led within one (cid:64)ear arisin(cid:43) from wa(cid:43)e and salaries and ann(cid:60)al leave have (cid:35)een meas(cid:60)red at the amo(cid:60)nts d(cid:60)e to (cid:35)e paid when the lia(cid:35)ilities are e(cid:63)pected to (cid:35)e se(cid:295)led and incl(cid:60)ded in provisions(cid:87) (cid:16)on(cid:43) service leave entitlements pa(cid:64)a(cid:35)le later than one (cid:64)ear have (cid:35)een meas(cid:60)red at the present val(cid:60)e of the estimated f(cid:60)t(cid:60)re cash o(cid:60)(cid:292)lows to (cid:35)e made in respect of services provided (cid:35)(cid:64) emplo(cid:64)ees (cid:60)p to the reportin(cid:43) date(cid:87) (cid:27)nder the terms of the (cid:8)irectors’ Retirement Scheme (cid:108)applica(cid:35)le to non(cid:102)e(cid:63)ec(cid:60)tive directors onl(cid:64)(cid:109)(cid:84) approved (cid:35)(cid:64) a meetin(cid:43) of shareholders(cid:84) provision has (cid:35)een made for the retirement or loss of o(cid:259)ce of eli(cid:43)i(cid:35)le non(cid:102)e(cid:63)ec(cid:60)tive (cid:8)irectors of Sipa Reso(cid:60)rces (cid:16)imited(cid:87) (cid:26)he amo(cid:60)nt pa(cid:64)a(cid:35)le (cid:60)nder the Scheme is e(cid:55)(cid:60)al to one (cid:64)ear’s rem(cid:60)neration for each three (cid:64)ears of completed service as a director of the (cid:6)ompan(cid:64) (cid:60)p to a ma(cid:63)im(cid:60)m (cid:35)ene(cid:41)t of (cid:138) (cid:64)ears rem(cid:60)neration(cid:87) Review of Operations | Governance | Financial Report | Shareholders’ Information 2.24 Share-Based Payment Transactions (cid:26)he Gro(cid:60)p provides (cid:35)ene(cid:41)ts to emplo(cid:64)ees (cid:108)incl(cid:60)din(cid:43) directors(cid:109) of the Gro(cid:60)p in the form of share(cid:102)(cid:35)ased pa(cid:64)ments(cid:84) where(cid:35)(cid:64) emplo(cid:64)ees render services in e(cid:63)chan(cid:43)e for shares or ri(cid:43)hts over shares (cid:108)(cid:89)e(cid:55)(cid:60)it(cid:64)(cid:102)se(cid:295)led transactions’(cid:109)(cid:87) (cid:9)(cid:55)(cid:60)it(cid:64)(cid:102)se(cid:295)led transactions with emplo(cid:64)ees and directors are administered thro(cid:60)(cid:43)h the Sipa Reso(cid:60)rces (cid:9)mplo(cid:64)ee Share Option (cid:22)lan which was approved (cid:35)(cid:64) shareholders(cid:87) (cid:26)he cost of these e(cid:55)(cid:60)it(cid:64)(cid:102)se(cid:295)led transactions with participants is meas(cid:60)red (cid:35)(cid:64) reference to the fair val(cid:60)e of the e(cid:55)(cid:60)it(cid:64) instr(cid:60)ments at the date at which the(cid:64) are (cid:43)ranted(cid:87) (cid:26)he fair val(cid:60)e is determined (cid:60)sin(cid:43) a (cid:35)inomial model(cid:87) In val(cid:60)in(cid:43) e(cid:55)(cid:60)it(cid:64)(cid:102)se(cid:295)led transactions(cid:84) no acco(cid:60)nt is ta(cid:48)en of an(cid:64) performance conditions(cid:84) other than conditions lin(cid:48)ed to the price of the shares of Sipa Reso(cid:60)rces (cid:16)imited (cid:108)(cid:89)mar(cid:48)et conditions’(cid:109)(cid:87) (cid:26)he cost of e(cid:55)(cid:60)it(cid:64)(cid:102)se(cid:295)led transactions is reco(cid:43)nised(cid:84) to(cid:43)ether with a correspondin(cid:43) increase in e(cid:55)(cid:60)it(cid:64)(cid:84) over the period in which the performance conditions are f(cid:60)l(cid:41)lled(cid:84) endin(cid:43) on the date on which the relevant emplo(cid:64)ees (cid:35)ecome f(cid:60)ll(cid:64) entitled to the award (cid:108)(cid:89)vestin(cid:43) date’(cid:109)(cid:87) (cid:26)he c(cid:60)m(cid:60)lative e(cid:63)pense reco(cid:43)nised for e(cid:55)(cid:60)it(cid:64)(cid:102)se(cid:295)led transactions at each reportin(cid:43) date (cid:60)ntil vestin(cid:43) date re(cid:42)ects (cid:108)i(cid:109) the e(cid:63)tent to which the vestin(cid:43) period has e(cid:63)pired and (cid:108)ii(cid:109) the Gro(cid:60)p’s (cid:35)est estimate of the n(cid:60)m(cid:35)er of e(cid:55)(cid:60)it(cid:64) instr(cid:60)ments that will (cid:60)ltimatel(cid:64) vest(cid:87) (cid:26)his opinion is formed (cid:35)ased on the (cid:35)est availa(cid:35)le information at (cid:35)alance date(cid:87) (cid:18)o ad(cid:47)(cid:60)stment is made for the li(cid:48)elihood of mar(cid:48)et performance conditions (cid:35)ein(cid:43) met as the e(cid:248)ect of these conditions is incl(cid:60)ded in the determination of fair val(cid:60)e at (cid:43)rant date(cid:87) (cid:26)he income statement char(cid:43)e or credit for a period represents the movement in c(cid:60)m(cid:60)lative e(cid:63)pense reco(cid:43)nised at the (cid:35)e(cid:43)innin(cid:43) and end of that period(cid:87) (cid:18)o e(cid:63)pense is reco(cid:43)nised for awards that do not (cid:60)ltimatel(cid:64) vest(cid:84) e(cid:63)cept for awards where vestin(cid:43) is onl(cid:64) conditional (cid:60)pon a mar(cid:48)et condition(cid:87) If the terms of an e(cid:55)(cid:60)it(cid:64)(cid:102)se(cid:295)led award are modi(cid:41)ed(cid:84) as a minim(cid:60)m an e(cid:63)pense is reco(cid:43)nised as if the terms had not (cid:35)een modi(cid:41)ed(cid:87) In addition(cid:84) an e(cid:63)pense is reco(cid:43)nised for an(cid:64) modi(cid:41)cation that increases the total fair val(cid:60)e of the share(cid:102)(cid:35)ased pa(cid:64)ment arran(cid:43)ement or is otherwise (cid:35)ene(cid:41)cial to the emplo(cid:64)ee(cid:84) as meas(cid:60)red at the date of modi(cid:41)cation(cid:87) If an e(cid:55)(cid:60)it(cid:64)(cid:102)se(cid:295)led award is cancelled (cid:108)other than for reason of forfeit(cid:60)re(cid:109)(cid:84) it is treated as if it had vested on the date of cancellation(cid:84) and an(cid:64) e(cid:63)pense not (cid:64)et reco(cid:43)nised for the award is reco(cid:43)nised immediatel(cid:64)(cid:87) (cid:12)owever(cid:84) if a new award is s(cid:60)(cid:35)stit(cid:60)ted for the cancelled award(cid:84) and desi(cid:43)nated as a replacement award on the date that it is (cid:43)ranted(cid:84) the cancelled and new award are treated as if the(cid:64) were a modi(cid:41)cation of the ori(cid:43)inal award(cid:84) as descri(cid:35)ed in the previo(cid:60)s para(cid:43)raph(cid:87) (cid:26)he dil(cid:60)tive e(cid:248)ect(cid:84) if an(cid:64)(cid:84) of o(cid:60)tstandin(cid:43) options is re(cid:42)ected as additional share dil(cid:60)tion in the comp(cid:60)tation of earnin(cid:43)s per share(cid:87) 2.25 Contributed Equity Ordinar(cid:64) shares are classi(cid:41)ed as e(cid:55)(cid:60)it(cid:64)(cid:87) Incremental costs directl(cid:64) a(cid:295)ri(cid:35)(cid:60)ta(cid:35)le to the iss(cid:60)e of new shares or options are shown in e(cid:55)(cid:60)it(cid:64) as a ded(cid:60)ction(cid:84) net of ta(cid:63)(cid:84) from the proceeds(cid:87) 2.26 Earnings Per Share (cid:5)asic (cid:9)(cid:22)S is calc(cid:60)lated as net pro(cid:41)t(cid:99)loss a(cid:295)ri(cid:35)(cid:60)ta(cid:35)le to mem(cid:35)ers(cid:84) ad(cid:47)(cid:60)sted to e(cid:63)cl(cid:60)de costs of servicin(cid:43) e(cid:55)(cid:60)it(cid:64) (cid:108)other than dividends(cid:109)(cid:84) divided (cid:35)(cid:64) the wei(cid:43)hted avera(cid:43)e n(cid:60)m(cid:35)er of ordinar(cid:64) shares(cid:84) ad(cid:47)(cid:60)sted for an(cid:64) (cid:35)on(cid:60)s element(cid:87) (cid:8)il(cid:60)ted (cid:9)(cid:22)S is calc(cid:60)lated as net pro(cid:41)t(cid:99)loss a(cid:295)ri(cid:35)(cid:60)ta(cid:35)le to mem(cid:35)ers(cid:84) ad(cid:47)(cid:60)sted for(cid:86) – costs of servicin(cid:43) e(cid:55)(cid:60)it(cid:64) (cid:108)other than dividends(cid:109)(cid:85) – the a(cid:273)er ta(cid:63) e(cid:248)ect of dividends and interest associated with dil(cid:60)tive potential ordinar(cid:64) shares that have (cid:35)een reco(cid:43)nised as e(cid:63)penses(cid:85) and – other non(cid:102)discretionar(cid:64) chan(cid:43)es in reven(cid:60)es or e(cid:63)penses d(cid:60)rin(cid:43) the period that wo(cid:60)ld res(cid:60)lt from the dil(cid:60)tion of potential ordinar(cid:64) shares(cid:85) divided (cid:35)(cid:64) the wei(cid:43)hted avera(cid:43)e n(cid:60)m(cid:35)er of ordinar(cid:64) shares and dil(cid:60)tive potential ordinar(cid:64) shares(cid:84) ad(cid:47)(cid:60)sted for an(cid:64) (cid:35)on(cid:60)s element(cid:87) Annual Report 2015 55 Financial Report Notes to the Financial Statements continued 3(cid:87) Re(cid:61)enues and (cid:9)(cid:63)penses Revenue and Expenses (a) Revenue (cid:26)echnical services reven(cid:60)e Interest reven(cid:60)e (b) Other income Gain on e(cid:63)tin(cid:43)(cid:60)ishment of provision(cid:136) Other Consolidated 2015 $ 2014 $ – (cid:140)(cid:165)(cid:84)(cid:140)(cid:141)(cid:135) (cid:140)(cid:165)(cid:84)(cid:140)(cid:141)(cid:135) (cid:137)(cid:141)(cid:84)(cid:135)(cid:139)(cid:138) (cid:142)(cid:138)(cid:84)(cid:141)(cid:165)(cid:164) (cid:136)(cid:137)(cid:135)(cid:84)(cid:165)(cid:137)(cid:142) (cid:136)(cid:164)(cid:165)(cid:84)(cid:137)(cid:136)(cid:140) (cid:138)(cid:138)(cid:84)(cid:140)(cid:139)(cid:141) (cid:137)(cid:135)(cid:136)(cid:84)(cid:141)(cid:164)(cid:137) – (cid:165)(cid:84)(cid:136)(cid:135)(cid:141) (cid:165)(cid:84)(cid:136)(cid:135)(cid:141) (cid:136) Gain on e(cid:63)tin(cid:43)(cid:60)ishment of provision relates to the reversal of the previo(cid:60)sl(cid:64) provided for directors retirement (cid:35)ene(cid:41)t that was waived (cid:35)(cid:64) retirin(cid:43) directors d(cid:60)rin(cid:43) the (cid:64)ear(cid:87) (c) Gain on Sale of Thaduna Project In Fe(cid:35)r(cid:60)ar(cid:64) (cid:137)(cid:135)(cid:136)(cid:140)(cid:84) the Gro(cid:60)p completed the sale of the (cid:26)had(cid:60)na pro(cid:47)ect to Sandfire Reso(cid:60)rces (cid:16)td (cid:108)Sandfire(cid:109) for (cid:130)(cid:137) million worth of Sandfire shares and a (cid:136)(cid:166) (cid:18)et Smelter Ro(cid:64)alt(cid:64)(cid:87) (cid:27)nder the terms of the (cid:3)(cid:43)reement(cid:84) Sandfire ac(cid:55)(cid:60)ired the entire le(cid:43)al and (cid:35)eneficial interest in (cid:9)(cid:140)(cid:137)(cid:99)(cid:136)(cid:164)(cid:141)(cid:138)(cid:84) (cid:9)(cid:140)(cid:137)(cid:99)(cid:136)(cid:164)(cid:141)(cid:139)(cid:84) (cid:9)(cid:140)(cid:137)(cid:99)(cid:136)(cid:165)(cid:140)(cid:165)(cid:84) (cid:9)(cid:140)(cid:137)(cid:99)(cid:137)(cid:138)(cid:140)(cid:164)(cid:84) (cid:9)(cid:140)(cid:137)(cid:99)(cid:137)(cid:138)(cid:140)(cid:141)(cid:84) and (cid:9)(cid:140)(cid:137)(cid:99)(cid:137)(cid:139)(cid:135)(cid:140) incl(cid:60)din(cid:43) the ri(cid:43)hts and (cid:35)enefits which Sipa is entitled to (cid:60)nder herita(cid:43)e a(cid:43)reements and native title contracts(cid:84) and all minin(cid:43) information which is relevant to the (cid:26)enements(cid:87) (cid:26)he Gro(cid:60)p s(cid:60)(cid:35)se(cid:55)(cid:60)entl(cid:64) sold the Sandfire shares on mar(cid:48)et for (cid:130)(cid:137)(cid:87)(cid:136)(cid:164) million(cid:87) (d) Other Expenses Exploration expenditure Gross e(cid:63)ploration e(cid:63)pendit(cid:60)re (cid:16)ess(cid:86) e(cid:63)ploration reco(cid:60)ped from other parties Employee benefits expense (cid:29)a(cid:43)es and salaries S(cid:60)perann(cid:60)ation (cid:22)rovision for ann(cid:60)al leave (cid:22)rovision for lon(cid:43) service leave (cid:29)or(cid:48)ers compensation ins(cid:60)rance Employee benefits expense included in: (cid:9)(cid:63)ploration e(cid:63)pendit(cid:60)re (cid:3)dministrative e(cid:63)penses (cid:8)epreciation of plant and e(cid:55)(cid:60)ipment Rental e(cid:63)penses on operatin(cid:43) lease (cid:16)oss on disposal of fi(cid:63)ed assets 56 Sipa Resources Limited (cid:138)(cid:84)(cid:138)(cid:164)(cid:138)(cid:84)(cid:136)(cid:135)(cid:141) (cid:137)(cid:84)(cid:136)(cid:165)(cid:165)(cid:84)(cid:137)(cid:135)(cid:142) – (cid:108)(cid:137)(cid:140)(cid:135)(cid:84)(cid:164)(cid:165)(cid:139)(cid:109) (cid:138)(cid:84)(cid:138)(cid:164)(cid:138)(cid:84)(cid:136)(cid:135)(cid:141) (cid:136)(cid:84)(cid:142)(cid:138)(cid:141)(cid:84)(cid:140)(cid:137)(cid:140) (cid:136)(cid:84)(cid:139)(cid:137)(cid:164)(cid:84)(cid:142)(cid:164)(cid:138) (cid:136)(cid:84)(cid:139)(cid:137)(cid:136)(cid:84)(cid:137)(cid:135)(cid:139) (cid:136)(cid:137)(cid:140)(cid:84)(cid:141)(cid:140)(cid:141) (cid:136)(cid:138)(cid:137)(cid:84)(cid:136)(cid:139)(cid:164) (cid:141)(cid:142)(cid:84)(cid:140)(cid:164)(cid:135) (cid:136)(cid:140)(cid:84)(cid:140)(cid:141)(cid:136) (cid:140)(cid:84)(cid:136)(cid:136)(cid:137) (cid:164)(cid:165)(cid:84)(cid:142)(cid:142)(cid:140) (cid:108)(cid:136)(cid:138)(cid:84)(cid:139)(cid:165)(cid:138)(cid:109) (cid:164)(cid:84)(cid:136)(cid:138)(cid:141) (cid:136)(cid:84)(cid:164)(cid:140)(cid:137)(cid:84)(cid:142)(cid:164)(cid:138) (cid:136)(cid:84)(cid:164)(cid:136)(cid:139)(cid:84)(cid:142)(cid:142)(cid:142) (cid:136)(cid:84)(cid:135)(cid:141)(cid:165)(cid:84)(cid:136)(cid:137)(cid:165) (cid:142)(cid:142)(cid:140)(cid:84)(cid:140)(cid:164)(cid:140) (cid:140)(cid:141)(cid:139)(cid:84)(cid:165)(cid:138)(cid:140) (cid:164)(cid:136)(cid:142)(cid:84)(cid:139)(cid:138)(cid:139) (cid:136)(cid:84)(cid:164)(cid:140)(cid:137)(cid:84)(cid:142)(cid:164)(cid:138) (cid:136)(cid:84)(cid:164)(cid:136)(cid:139)(cid:84)(cid:142)(cid:142)(cid:142) (cid:139)(cid:164)(cid:84)(cid:135)(cid:164)(cid:138) (cid:164)(cid:136)(cid:84)(cid:137)(cid:165)(cid:137) (cid:136)(cid:141)(cid:135)(cid:84)(cid:138)(cid:140)(cid:142) (cid:136)(cid:141)(cid:138)(cid:84)(cid:138)(cid:138)(cid:165) (cid:137)(cid:142)(cid:84)(cid:135)(cid:140)(cid:138) – Review of Operations | Governance | Financial Report | Shareholders’ Information (cid:139)(cid:87) (cid:13)ncome (cid:26)a(cid:63) (cid:108)a(cid:109) Ma(cid:47)or components of income ta(cid:63) e(cid:63)pense for t(cid:44)e years ended 3(cid:135) (cid:14)une 2(cid:135)(cid:136)5 and 2(cid:135)(cid:136)(cid:139) are(cid:86) (cid:13)ncome (cid:25)tatement Current income tax (cid:6)(cid:60)rrent income ta(cid:63) (cid:35)enefit (cid:27)nder(cid:99)over provision Deferred income tax Relatin(cid:43) to ori(cid:43)ination and reversal of temporar(cid:64) differences (cid:8)eferred ta(cid:63) assets not reco(cid:43)nised Income ta(cid:63) e(cid:63)pense reported in income statement (cid:108)(cid:35)(cid:109) A reconci(cid:163)iation of income ta(cid:63) e(cid:63)pense app(cid:163)ica(cid:35)(cid:163)e to accounting (cid:163)oss (cid:35)efore income ta(cid:63) at t(cid:44)e statutory income ta(cid:63) rate to income ta(cid:63) e(cid:63)pense at t(cid:44)e (cid:11)roup(cid:90)s effecti(cid:61)e income ta(cid:63) rate for t(cid:44)e years ended 3(cid:135) (cid:14)une 2(cid:135)(cid:136)5 and 2(cid:135)(cid:136)(cid:139) is as fo(cid:163)(cid:163)o(cid:62)s(cid:86) (cid:3)cco(cid:60)ntin(cid:43) loss (cid:35)efore ta(cid:63) (cid:3)t stat(cid:60)tor(cid:64) income ta(cid:63) rate of (cid:138)(cid:135)(cid:166) (cid:108)(cid:137)(cid:135)(cid:136)(cid:139)(cid:86) (cid:138)(cid:135)(cid:166)(cid:109) (cid:18)on(cid:102)ded(cid:60)cti(cid:35)le items Other ded(cid:60)cti(cid:35)le amo(cid:60)nts not reco(cid:43)nised (cid:27)nder(cid:99)overprovision in prior (cid:64)ear (cid:27)nreco(cid:43)nised(cid:99)(cid:108)reco(cid:43)nised(cid:109) deferred ta(cid:63) assets Income ta(cid:63) e(cid:63)pense reported in income statement (c) Deferred Income Tax (cid:8)eferred income ta(cid:63) at (cid:138)(cid:135) (cid:14)(cid:60)ne relates to the followin(cid:43)(cid:86) Consolidated Deferred tax liabilities Other Deferred tax assets Consolidated 2015 $ 2014 $ – – – – – – – – – – (cid:108)(cid:138)(cid:84)(cid:140)(cid:137)(cid:164)(cid:84)(cid:165)(cid:135)(cid:141)(cid:109) (cid:108)(cid:139)(cid:84)(cid:140)(cid:135)(cid:139)(cid:84)(cid:165)(cid:138)(cid:135)(cid:109) (cid:108)(cid:136)(cid:84)(cid:135)(cid:140)(cid:165)(cid:84)(cid:135)(cid:139)(cid:137)(cid:109) (cid:108)(cid:136)(cid:84)(cid:138)(cid:140)(cid:136)(cid:84)(cid:139)(cid:139)(cid:142)(cid:109) (cid:141)(cid:165)(cid:164)(cid:84)(cid:138)(cid:137)(cid:135) (cid:140)(cid:141)(cid:139)(cid:84)(cid:164)(cid:142)(cid:140) (cid:108)(cid:138)(cid:140)(cid:84)(cid:142)(cid:140)(cid:138)(cid:109) (cid:108)(cid:138)(cid:140)(cid:84)(cid:139)(cid:138)(cid:140)(cid:109) (cid:138)(cid:139)(cid:142) (cid:108)(cid:136)(cid:165)(cid:142)(cid:84)(cid:140)(cid:140)(cid:139)(cid:109) (cid:138)(cid:135)(cid:141)(cid:84)(cid:138)(cid:137)(cid:164) (cid:136)(cid:84)(cid:135)(cid:135)(cid:136)(cid:84)(cid:141)(cid:139)(cid:138) – – Statement of Financial Position 2015 $ 2014 $ Profit or Loss 2015 $ 2014 $ (cid:108)(cid:137)(cid:84)(cid:140)(cid:164)(cid:136)(cid:109) (cid:108)(cid:137)(cid:84)(cid:140)(cid:164)(cid:136)(cid:109) (cid:108)(cid:138)(cid:84)(cid:165)(cid:165)(cid:137)(cid:109) (cid:108)(cid:138)(cid:84)(cid:165)(cid:165)(cid:137)(cid:109) (cid:136)(cid:84)(cid:138)(cid:137)(cid:136) (cid:136)(cid:165)(cid:165) (cid:22)rovision for emplo(cid:64)ee entitlements (cid:138)(cid:139)(cid:84)(cid:164)(cid:164)(cid:139) (cid:136)(cid:137)(cid:165)(cid:84)(cid:140)(cid:164)(cid:141) (cid:108)(cid:142)(cid:138)(cid:84)(cid:142)(cid:135)(cid:138)(cid:109) (cid:108)(cid:137)(cid:135)(cid:84)(cid:141)(cid:140)(cid:136)(cid:109) S(cid:60)perann(cid:60)ation provision (cid:3)ccr(cid:60)als (cid:6)arried forward losses (cid:138)(cid:84)(cid:140)(cid:137)(cid:135) (cid:136)(cid:135)(cid:84)(cid:165)(cid:135)(cid:135) (cid:140)(cid:84)(cid:140)(cid:140)(cid:165) (cid:136)(cid:135)(cid:84)(cid:140)(cid:135)(cid:135) (cid:108)(cid:137)(cid:84)(cid:135)(cid:138)(cid:165)(cid:109) (cid:108)(cid:140)(cid:84)(cid:135)(cid:140)(cid:135)(cid:109) (cid:138)(cid:135)(cid:135) – (cid:136)(cid:136)(cid:84)(cid:164)(cid:136)(cid:138)(cid:84)(cid:140)(cid:135)(cid:142) (cid:136)(cid:136)(cid:84)(cid:137)(cid:136)(cid:136)(cid:84)(cid:165)(cid:164)(cid:139) (cid:139)(cid:135)(cid:136)(cid:84)(cid:164)(cid:139)(cid:140) (cid:136)(cid:84)(cid:135)(cid:137)(cid:141)(cid:84)(cid:138)(cid:140)(cid:164) (cid:136)(cid:136)(cid:84)(cid:164)(cid:164)(cid:137)(cid:84)(cid:139)(cid:142)(cid:138) (cid:136)(cid:136)(cid:84)(cid:138)(cid:140)(cid:164)(cid:84)(cid:139)(cid:165)(cid:142) (cid:27)nreco(cid:43)nised deferred ta(cid:63) assets (cid:108)(cid:136)(cid:136)(cid:84)(cid:164)(cid:140)(cid:142)(cid:84)(cid:142)(cid:138)(cid:137)(cid:109) (cid:108)(cid:136)(cid:136)(cid:84)(cid:138)(cid:140)(cid:137)(cid:84)(cid:164)(cid:135)(cid:141)(cid:109) (cid:108)(cid:138)(cid:135)(cid:141)(cid:84)(cid:138)(cid:137)(cid:140)(cid:109) (cid:108)(cid:136)(cid:84)(cid:135)(cid:135)(cid:136)(cid:84)(cid:141)(cid:139)(cid:138)(cid:109) (cid:18)et deferred ta(cid:63) asset (cid:8)eferred ta(cid:63) e(cid:63)pense (cid:137)(cid:84)(cid:140)(cid:164)(cid:136) (cid:138)(cid:84)(cid:165)(cid:165)(cid:137) – – – – Annual Report 2015 57 Financial Report Notes to the Financial Statements continued (cid:139)(cid:87) (cid:13)ncome (cid:26)a(cid:63) (cid:108)continued(cid:109) Consolidated 2015 $ 2014 $ (cid:8)eferred (cid:26)a(cid:63) (cid:3)ssets on the (cid:26)a(cid:63) losses not reco(cid:43)nised (cid:136)(cid:136)(cid:84)(cid:164)(cid:136)(cid:138)(cid:84)(cid:140)(cid:135)(cid:142) (cid:136)(cid:136)(cid:84)(cid:137)(cid:136)(cid:136)(cid:84)(cid:165)(cid:164)(cid:139) (cid:8)irectors do not (cid:35)elieve it is appropriate to re(cid:43)ard realisation of the deferred ta(cid:63) asset as pro(cid:35)a(cid:35)le as at (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140)(cid:87) (cid:26)hese (cid:35)ene(cid:41)ts will onl(cid:64) (cid:35)e o(cid:35)tained if(cid:86) (cid:108)i(cid:109) the (cid:6)onsolidated (cid:9)ntit(cid:64) derives f(cid:60)t(cid:60)re assessa(cid:35)le income of a nat(cid:60)re and of an amo(cid:60)nt s(cid:60)(cid:259)cient to ena(cid:35)le the (cid:35)ene(cid:41)t from the ded(cid:60)ction for the loss to (cid:35)e realised(cid:85) (cid:108)ii(cid:109) the (cid:6)onsolidated (cid:9)ntit(cid:64) contin(cid:60)es to compl(cid:64) with the conditions for the ded(cid:60)cti(cid:35)ilit(cid:64) imposed (cid:35)(cid:64) law(cid:85) and (cid:108)iii(cid:109) no chan(cid:43)es in ta(cid:63) le(cid:43)islation adversel(cid:64) a(cid:248)ect the (cid:6)onsolidated (cid:9)ntit(cid:64) in realisin(cid:43) the (cid:35)ene(cid:41)t from the ded(cid:60)ction for the loss(cid:87) (d) Tax Consolidation (cid:26)he (cid:6)ompan(cid:64) and its (cid:136)(cid:135)(cid:135)(cid:166) owned s(cid:60)(cid:35)sidiaries formed a ta(cid:63) consolidated (cid:43)ro(cid:60)p e(cid:248)ective (cid:136) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:135)(cid:138)(cid:87) (cid:26)he head entit(cid:64) of the ta(cid:63) consolidated (cid:43)ro(cid:60)p is Sipa Reso(cid:60)rces (cid:16)imited(cid:87) (cid:26)he Sipa (cid:43)ro(cid:60)p c(cid:60)rrentl(cid:64) does not intend to enter into a (cid:26)a(cid:63) Sharin(cid:43) or (cid:26)a(cid:63) F(cid:60)ndin(cid:43) (cid:3)(cid:43)reement(cid:87) (cid:26)he (cid:43)ro(cid:60)p allocation method is (cid:60)sed to allocate an(cid:64) ta(cid:63) e(cid:63)pense inc(cid:60)rred(cid:87) 5(cid:87) Cas(cid:44) and Cas(cid:44) (cid:9)(cid:55)ui(cid:61)a(cid:163)ents (cid:6)ash at (cid:35)an(cid:48) and in hand Short(cid:102)term deposits (cid:136)(cid:138)(cid:138)(cid:84)(cid:138)(cid:138)(cid:164) (cid:140)(cid:137)(cid:164)(cid:84)(cid:136)(cid:165)(cid:137) (cid:164)(cid:84)(cid:136)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:138)(cid:84)(cid:139)(cid:165)(cid:141)(cid:84)(cid:164)(cid:138)(cid:137) (cid:164)(cid:84)(cid:137)(cid:138)(cid:138)(cid:84)(cid:138)(cid:138)(cid:164) (cid:139)(cid:84)(cid:135)(cid:136)(cid:138)(cid:84)(cid:165)(cid:136)(cid:139) (cid:6)ash at (cid:35)an(cid:48)s earns interest at (cid:42)oatin(cid:43) rates (cid:35)ased on dail(cid:64) (cid:35)an(cid:48) deposit rates(cid:87) Short(cid:102)term deposits are made for var(cid:64)in(cid:43) periods of (cid:35)etween one da(cid:64) and three months(cid:84) dependin(cid:43) on the immediate cash re(cid:55)(cid:60)irements of the Gro(cid:60)p(cid:84) and earn interest at the respective short(cid:102)term deposit rates(cid:87) (cid:26)he carr(cid:64)in(cid:43) val(cid:60)e appro(cid:63)imates fair val(cid:60)e(cid:87) (cid:164)(cid:87) (cid:26)erm (cid:8)eposits Reser(cid:61)ed for Re(cid:44)a(cid:35)i(cid:163)iation (cid:26)erm deposits reserved for reha(cid:35)ilitation (cid:139)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:136)(cid:164)(cid:137)(cid:84)(cid:138)(cid:164)(cid:165) (cid:139)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:136)(cid:164)(cid:137)(cid:84)(cid:138)(cid:164)(cid:165) (cid:5)an(cid:48)west has (cid:43)iven a (cid:43)(cid:60)arantee to the (cid:8)epartment of (cid:17)inerals and (cid:9)ner(cid:43)(cid:64) in respect of performance (cid:35)onds totallin(cid:43) (cid:130)(cid:137)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:108)(cid:137)(cid:135)(cid:136)(cid:139)(cid:86) (cid:136)(cid:164)(cid:137)(cid:84)(cid:138)(cid:164)(cid:165)(cid:109) for which the (cid:35)an(cid:48) has a lien on an e(cid:55)(cid:60)ivalent amo(cid:60)nt of the compan(cid:64)’s term deposits(cid:87) (cid:26)he amo(cid:60)nt represents (cid:43)(cid:60)arantees provided (cid:35)(cid:64) (cid:5)an(cid:48)west in s(cid:60)pport of e(cid:63)ploration pro(cid:43)ram of wor(cid:48)s and a f(cid:60)rther (cid:130)(cid:137)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) to sec(cid:60)re the compan(cid:64)’s credit card facilit(cid:64)(cid:87) (cid:141)(cid:87) (cid:26)rade and (cid:19)t(cid:44)er Recei(cid:61)a(cid:35)(cid:163)es Interest receiva(cid:35)le (cid:108)a(cid:109) Other receiva(cid:35)les (cid:108)(cid:35)(cid:109) (cid:165)(cid:84)(cid:140)(cid:138)(cid:164) (cid:136)(cid:139)(cid:84)(cid:136)(cid:135)(cid:165) (cid:137)(cid:137)(cid:84)(cid:164)(cid:139)(cid:139) (cid:136)(cid:137)(cid:84)(cid:142)(cid:139)(cid:136) (cid:164)(cid:141)(cid:84)(cid:137)(cid:140)(cid:135) (cid:165)(cid:135)(cid:84)(cid:136)(cid:142)(cid:136) (cid:108)a(cid:109) Interest receiva(cid:35)le represents interest d(cid:60)e on the Gro(cid:60)p’s term deposits(cid:87) (cid:108)(cid:35)(cid:109) Other receiva(cid:35)les are non(cid:102)interest (cid:35)earin(cid:43) and d(cid:60)e in (cid:138)(cid:135) da(cid:64)s (cid:43)enerall(cid:64)(cid:87) (cid:3)n allowance for do(cid:60)(cid:35)(cid:292)(cid:60)l de(cid:35)ts is made when there is o(cid:35)(cid:47)ective evidence that a receiva(cid:35)le is impaired(cid:87) (cid:18)o s(cid:60)ch allowance has (cid:35)een reco(cid:43)nised as an e(cid:63)pense for the c(cid:60)rrent or previo(cid:60)s (cid:64)ear(cid:87) 58 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information (cid:165)(cid:87) A(cid:61)ai(cid:163)a(cid:35)(cid:163)e(cid:102)(cid:10)or(cid:102)(cid:25)a(cid:163)e (cid:10)inancia(cid:163) (cid:13)n(cid:61)estments At fair (cid:61)a(cid:163)ue Shares in listed entities (cid:108)a(cid:109)(cid:84)(cid:108)(cid:35)(cid:109) Consolidated 2015 $ 2014 $ (cid:140)(cid:84)(cid:137)(cid:135)(cid:135) (cid:140)(cid:84)(cid:137)(cid:135)(cid:135) (cid:165)(cid:84)(cid:135)(cid:135)(cid:135) (cid:165)(cid:84)(cid:135)(cid:135)(cid:135) (cid:108)a(cid:109) (cid:26)he fair val(cid:60)e of listed availa(cid:35)le for sale investments has (cid:35)een determined directl(cid:64) (cid:35)(cid:64) reference to p(cid:60)(cid:35)lished price (cid:55)(cid:60)otations in an active mar(cid:48)et and classi(cid:41)ed as (cid:16)evel (cid:136)(cid:87) (cid:108)(cid:35)(cid:109) (cid:8)(cid:60)rin(cid:43) the c(cid:60)rrent (cid:64)ear(cid:84) (cid:130)(cid:137)(cid:84)(cid:165)(cid:135)(cid:135) was reco(cid:43)nised in the pro(cid:41)t and loss d(cid:60)e to decrease in share price(cid:87) (cid:142)(cid:87) (cid:19)t(cid:44)er (cid:10)inancia(cid:163) Assets Sec(cid:60)rit(cid:64) deposits (cid:108)a(cid:109) (cid:139)(cid:139)(cid:84)(cid:137)(cid:139)(cid:140) (cid:139)(cid:139)(cid:84)(cid:137)(cid:139)(cid:140) (cid:139)(cid:139)(cid:84)(cid:137)(cid:139)(cid:140) (cid:139)(cid:139)(cid:84)(cid:137)(cid:139)(cid:140) (cid:108)a(cid:109) (cid:26)he terms and conditions of the sec(cid:60)rit(cid:64) deposits are non(cid:102)interest (cid:35)earin(cid:43) and ref(cid:60)nda(cid:35)le (cid:60)pon completion of performance o(cid:35)li(cid:43)ations associated with completion of the lease term(cid:87) (cid:136)(cid:135)(cid:87) (cid:22)(cid:163)ant and (cid:9)(cid:55)uipment (cid:3)t (cid:35)e(cid:43)innin(cid:43) of the (cid:64)ear(cid:84) net of acc(cid:60)m(cid:60)lated depreciation (cid:3)dditions Disposals (cid:8)epreciation e(cid:63)pense (cid:3)t end of the (cid:64)ear(cid:84) net of acc(cid:60)m(cid:60)lated depreciation At end of year (cid:6)ost (cid:3)cc(cid:60)m(cid:60)lated depreciation (cid:18)et (cid:35)oo(cid:48) val(cid:60)e at end of (cid:64)ear (cid:136)(cid:136)(cid:87) (cid:9)(cid:63)p(cid:163)oration and (cid:9)(cid:61)a(cid:163)uation (cid:9)(cid:63)ploration and eval(cid:60)ation ac(cid:55)(cid:60)ired (cid:137)(cid:142)(cid:140)(cid:84)(cid:135)(cid:138)(cid:165) (cid:138)(cid:141)(cid:164)(cid:84)(cid:136)(cid:139)(cid:137) (cid:138)(cid:138)(cid:84)(cid:138)(cid:138)(cid:138) (cid:136)(cid:135)(cid:84)(cid:139)(cid:142)(cid:136) (cid:108)(cid:139)(cid:142)(cid:84)(cid:135)(cid:140)(cid:138)(cid:109) (cid:108)(cid:138)(cid:135)(cid:84)(cid:138)(cid:136)(cid:138)(cid:109) (cid:108)(cid:139)(cid:164)(cid:84)(cid:135)(cid:164)(cid:138)(cid:109) (cid:108)(cid:164)(cid:136)(cid:84)(cid:137)(cid:165)(cid:137)(cid:109) (cid:137)(cid:138)(cid:138)(cid:84)(cid:137)(cid:140)(cid:140) (cid:137)(cid:142)(cid:140)(cid:84)(cid:135)(cid:138)(cid:165) (cid:142)(cid:138)(cid:136)(cid:84)(cid:141)(cid:140)(cid:165) (cid:142)(cid:140)(cid:140)(cid:84)(cid:139)(cid:165)(cid:142) (cid:108)(cid:164)(cid:142)(cid:165)(cid:84)(cid:140)(cid:135)(cid:138)(cid:109) (cid:108)(cid:164)(cid:164)(cid:135)(cid:84)(cid:139)(cid:140)(cid:136)(cid:109) (cid:137)(cid:138)(cid:138)(cid:84)(cid:137)(cid:140)(cid:140) (cid:137)(cid:142)(cid:140)(cid:84)(cid:135)(cid:138)(cid:165) (cid:140)(cid:165)(cid:136)(cid:84)(cid:135)(cid:138)(cid:141) (cid:140)(cid:165)(cid:136)(cid:84)(cid:135)(cid:138)(cid:141) – – In (cid:14)an(cid:60)ar(cid:64) (cid:137)(cid:135)(cid:136)(cid:140)(cid:84) a wholl(cid:64) owned s(cid:60)(cid:35)sidiar(cid:64) of Sipa completed the ac(cid:55)(cid:60)isition of the remainin(cid:43) (cid:137)(cid:135)(cid:166) of shares in SiGe (cid:9)ast (cid:3)frica (cid:22)t(cid:64) (cid:16)td(cid:84) from Geocr(cid:60)st (cid:22)t(cid:64) (cid:16)td to (cid:35)ecome the (cid:136)(cid:135)(cid:135)(cid:166) holder of the (cid:15)it(cid:43)(cid:60)m(cid:102)(cid:22)ader (cid:35)ase and precio(cid:60)s metals pro(cid:47)ect in (cid:27)(cid:43)anda(cid:84) (cid:9)ast (cid:3)frica in e(cid:63)chan(cid:43)e for ordinar(cid:64) f(cid:60)ll(cid:64) paid Sipa shares to the val(cid:60)e of (cid:3)(cid:130)(cid:139)(cid:142)(cid:142)(cid:48)(cid:87) (cid:26)he n(cid:60)m(cid:35)er of Sipa shares iss(cid:60)ed was determined (cid:35)(cid:64) reference to the vol(cid:60)me wei(cid:43)hted avera(cid:43)e price of Sipa shares in the (cid:138)(cid:135) tradin(cid:43) da(cid:64)s immediatel(cid:64) prior to a(cid:43)reement(cid:87) (cid:26)he e(cid:63)ploration and eval(cid:60)ation ac(cid:55)(cid:60)ired represents the val(cid:60)e of the ac(cid:55)(cid:60)isition at that date(cid:87) (cid:136)2(cid:87) (cid:26)rade and ot(cid:44)er (cid:22)aya(cid:35)(cid:163)es (cid:108)Current(cid:109) (cid:26)rade pa(cid:64)a(cid:35)les (cid:103) (cid:60)nsec(cid:60)red (cid:3)ccr(cid:60)ed e(cid:63)penses (cid:136)(cid:140)(cid:140)(cid:84)(cid:139)(cid:142)(cid:136) (cid:137)(cid:137)(cid:164)(cid:84)(cid:135)(cid:135)(cid:139) (cid:136)(cid:140)(cid:165)(cid:84)(cid:140)(cid:140)(cid:137) (cid:136)(cid:164)(cid:142)(cid:84)(cid:140)(cid:135)(cid:136) (cid:138)(cid:136)(cid:139)(cid:84)(cid:135)(cid:139)(cid:138) (cid:138)(cid:142)(cid:140)(cid:84)(cid:140)(cid:135)(cid:140) (cid:26)rade and other pa(cid:64)a(cid:35)les and accr(cid:60)ed e(cid:63)penses are non(cid:102)interest (cid:35)earin(cid:43) and are (cid:60)s(cid:60)all(cid:64) se(cid:295)led in (cid:138)(cid:135) da(cid:64)s(cid:87) Annual Report 2015 59 Financial Report Notes to the Financial Statements continued (cid:136)3(cid:87) (cid:22)ro(cid:61)isions Consolidated (cid:3)t (cid:136) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:139) (cid:3)risin(cid:43) d(cid:60)rin(cid:43) the (cid:64)ear (cid:27)tilised d(cid:60)rin(cid:43) the (cid:64)ear (cid:9)(cid:63)tin(cid:43)(cid:60)ishment of provision(cid:108)(cid:35)(cid:109) (cid:5)alance at (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140) (cid:6)(cid:60)rrent (cid:137)(cid:135)(cid:136)(cid:140) (cid:18)on(cid:102)(cid:6)(cid:60)rrent (cid:137)(cid:135)(cid:136)(cid:140) (cid:6)(cid:60)rrent (cid:137)(cid:135)(cid:136)(cid:139) (cid:18)on(cid:102)(cid:6)(cid:60)rrent (cid:137)(cid:135)(cid:136)(cid:139) Annua(cid:163) Lea(cid:61)e Long (cid:25)er(cid:61)ice Lea(cid:61)e Directors Retirement Benefit(cid:108)a(cid:109) Total (cid:136)(cid:135)(cid:142)(cid:84)(cid:140)(cid:141)(cid:165) (cid:137)(cid:135)(cid:165)(cid:84)(cid:137)(cid:165)(cid:140) (cid:137)(cid:142)(cid:165)(cid:84)(cid:138)(cid:138)(cid:138) (cid:164)(cid:136)(cid:164)(cid:84)(cid:136)(cid:142)(cid:164) (cid:141)(cid:142)(cid:84)(cid:140)(cid:164)(cid:135) (cid:136)(cid:140)(cid:84)(cid:140)(cid:141)(cid:136) – (cid:142)(cid:140)(cid:84)(cid:136)(cid:138)(cid:136) (cid:108)(cid:165)(cid:135)(cid:84)(cid:164)(cid:141)(cid:140)(cid:109) (cid:108)(cid:136)(cid:136)(cid:164)(cid:84)(cid:164)(cid:138)(cid:138)(cid:109) (cid:108)(cid:139)(cid:137)(cid:84)(cid:164)(cid:136)(cid:165)(cid:109) (cid:108)(cid:137)(cid:138)(cid:142)(cid:84)(cid:142)(cid:137)(cid:164)(cid:109) – – (cid:108)(cid:136)(cid:164)(cid:165)(cid:84)(cid:137)(cid:136)(cid:140)(cid:109) (cid:108)(cid:136)(cid:164)(cid:165)(cid:84)(cid:137)(cid:136)(cid:140)(cid:109) (cid:136)(cid:135)(cid:165)(cid:84)(cid:139)(cid:164)(cid:138) (cid:136)(cid:135)(cid:141)(cid:84)(cid:137)(cid:137)(cid:138) (cid:165)(cid:141)(cid:84)(cid:140)(cid:135)(cid:135) (cid:138)(cid:135)(cid:138)(cid:84)(cid:136)(cid:165)(cid:164) (cid:136)(cid:135)(cid:165)(cid:84)(cid:139)(cid:164)(cid:138) – (cid:164)(cid:139)(cid:84)(cid:135)(cid:135)(cid:164) (cid:139)(cid:138)(cid:84)(cid:137)(cid:136)(cid:141) (cid:165)(cid:141)(cid:84)(cid:140)(cid:135)(cid:135) (cid:137)(cid:140)(cid:142)(cid:84)(cid:142)(cid:164)(cid:142) – (cid:139)(cid:138)(cid:84)(cid:137)(cid:136)(cid:141) (cid:136)(cid:135)(cid:165)(cid:84)(cid:139)(cid:164)(cid:138) (cid:136)(cid:135)(cid:141)(cid:84)(cid:137)(cid:137)(cid:138) (cid:165)(cid:141)(cid:84)(cid:140)(cid:135)(cid:135) (cid:138)(cid:135)(cid:138)(cid:84)(cid:136)(cid:165)(cid:164) (cid:136)(cid:135)(cid:142)(cid:84)(cid:140)(cid:141)(cid:165) (cid:136)(cid:164)(cid:138)(cid:84)(cid:137)(cid:141)(cid:138) (cid:137)(cid:142)(cid:165)(cid:84)(cid:138)(cid:138)(cid:138) (cid:140)(cid:141)(cid:136)(cid:84)(cid:136)(cid:165)(cid:139) – (cid:139)(cid:140)(cid:84)(cid:135)(cid:136)(cid:137) – (cid:139)(cid:140)(cid:84)(cid:135)(cid:136)(cid:137) (cid:136)(cid:135)(cid:142)(cid:84)(cid:140)(cid:141)(cid:165) (cid:137)(cid:135)(cid:165)(cid:84)(cid:137)(cid:165)(cid:140) (cid:137)(cid:142)(cid:165)(cid:84)(cid:138)(cid:138)(cid:138) (cid:164)(cid:136)(cid:164)(cid:84)(cid:136)(cid:142)(cid:164) (cid:108)a(cid:109) (cid:27)nder the terms of the (cid:8)irectors’ Retirement Scheme(cid:84) approved (cid:35)(cid:64) a meetin(cid:43) of shareholders(cid:84) provision has (cid:35)een made for the retirement or loss of o(cid:259)ce of eli(cid:43)i(cid:35)le non(cid:102)e(cid:63)ec(cid:60)tive (cid:8)irectors of Sipa Reso(cid:60)rces (cid:16)imited(cid:87) (cid:26)he (cid:8)irectors resolved to free(cid:65)e the scheme with no f(cid:60)rther provisions (cid:35)ein(cid:43) made(cid:84) in the (cid:41)nancial (cid:64)ear ended (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:135)(cid:165)(cid:84) or s(cid:60)(cid:35)se(cid:55)(cid:60)entl(cid:64)(cid:87) (cid:8)(cid:60)rin(cid:43) the period and amo(cid:60)nt of (cid:130)(cid:139)(cid:137)(cid:84)(cid:164)(cid:136)(cid:165) was made to (cid:22) (cid:22)earce (cid:60)pon his retirement(cid:87) (cid:26)here is c(cid:60)rrentl(cid:64) no anticipated date for pa(cid:64)ment of the remainin(cid:43) provision (cid:35)(cid:60)t a constr(cid:60)ctive o(cid:35)li(cid:43)ation e(cid:63)ists(cid:87) (cid:108)(cid:35)(cid:109) Gain on e(cid:63)tin(cid:43)(cid:60)ishment of provision relates to the reversal of the previo(cid:60)sl(cid:64) provided for directors retirement (cid:35)ene(cid:41)t that was waived (cid:35)(cid:64) (cid:8)avid (cid:29)illiams and Ian (cid:22)earce on their resi(cid:43)nation(cid:84) e(cid:248)ective (cid:137)(cid:138) Septem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:139) and (cid:136)(cid:136) (cid:17)arch (cid:137)(cid:135)(cid:136)(cid:140) respectivel(cid:64)(cid:87) (cid:136)(cid:139)(cid:87) Contri(cid:35)uted (cid:9)(cid:55)uity and Reser(cid:61)es (a) Ordinary Shares Iss(cid:60)ed and f(cid:60)ll(cid:64) paid shares Movements in shares on issue (cid:5)alance at (cid:35)e(cid:43)innin(cid:43) of (cid:64)ear Consolidated 2015 $ 2014 $ 2015 No (cid:142)(cid:142)(cid:84)(cid:139)(cid:142)(cid:139)(cid:84)(cid:164)(cid:140)(cid:137) (cid:142)(cid:138)(cid:84)(cid:136)(cid:164)(cid:142)(cid:84)(cid:165)(cid:137)(cid:142) 2014 $ No $ (cid:164)(cid:135)(cid:165)(cid:84)(cid:140)(cid:141)(cid:165)(cid:84)(cid:140)(cid:135)(cid:142) (cid:142)(cid:138)(cid:84)(cid:136)(cid:164)(cid:142)(cid:84)(cid:165)(cid:137)(cid:142) (cid:139)(cid:165)(cid:136)(cid:84)(cid:140)(cid:164)(cid:140)(cid:84)(cid:135)(cid:136)(cid:140) (cid:165)(cid:165)(cid:84)(cid:165)(cid:138)(cid:142)(cid:84)(cid:137)(cid:137)(cid:136) (cid:22)lacement for the ac(cid:55)(cid:60)isition of SiGe (cid:9)ast (cid:3)frica (cid:22)t(cid:64) (cid:16)td (cid:136)(cid:137)(cid:84)(cid:165)(cid:135)(cid:138)(cid:84)(cid:139)(cid:139)(cid:141) (cid:139)(cid:142)(cid:142)(cid:84)(cid:138)(cid:138)(cid:139) (cid:22)lacement to e(cid:63)empt investors Share p(cid:60)rchase plan (cid:142)(cid:84)(cid:137)(cid:135)(cid:140)(cid:84)(cid:137)(cid:142)(cid:136) (cid:164)(cid:164)(cid:141)(cid:84)(cid:138)(cid:165)(cid:139) (cid:141)(cid:137)(cid:84)(cid:138)(cid:164)(cid:142)(cid:84)(cid:137)(cid:138)(cid:142) (cid:140)(cid:84)(cid:137)(cid:139)(cid:164)(cid:84)(cid:141)(cid:139)(cid:135) – – – – – – (cid:22)lacement p(cid:60)rs(cid:60)ant to (cid:9)ntitlement Offer and Shortfall (cid:22)(cid:60)rs(cid:60)ant to e(cid:63)ercise of listed options Less transaction costs (cid:5)alance at end of financial (cid:64)ear – (cid:141)(cid:84)(cid:139)(cid:136)(cid:137) – (cid:136)(cid:137)(cid:141)(cid:84)(cid:135)(cid:136)(cid:135)(cid:84)(cid:136)(cid:164)(cid:135) (cid:139)(cid:84)(cid:139)(cid:139)(cid:140)(cid:84)(cid:138)(cid:140)(cid:164) (cid:140)(cid:140)(cid:164) (cid:138)(cid:84)(cid:138)(cid:138)(cid:139) (cid:137)(cid:140)(cid:135) – (cid:108)(cid:165)(cid:142)(cid:84)(cid:136)(cid:142)(cid:136)(cid:109) – (cid:108)(cid:136)(cid:136)(cid:139)(cid:84)(cid:142)(cid:142)(cid:165)(cid:109) (cid:141)(cid:135)(cid:137)(cid:84)(cid:142)(cid:164)(cid:138)(cid:84)(cid:165)(cid:142)(cid:165) (cid:142)(cid:142)(cid:84)(cid:139)(cid:142)(cid:139)(cid:84)(cid:164)(cid:140)(cid:137) (cid:164)(cid:135)(cid:165)(cid:84)(cid:140)(cid:141)(cid:165)(cid:84)(cid:140)(cid:135)(cid:142) (cid:142)(cid:138)(cid:84)(cid:136)(cid:164)(cid:142)(cid:84)(cid:165)(cid:137)(cid:142) 60 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information Dividends (cid:26)here were no dividends paid or proposed d(cid:60)rin(cid:43) the (cid:64)ear ended (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140) (cid:108)(cid:137)(cid:135)(cid:136)(cid:139)(cid:86) (cid:18)il(cid:109)(cid:87) (cid:26)he amo(cid:60)nt of fran(cid:48)in(cid:43) credits availa(cid:35)le to the (cid:6)ompan(cid:64) at (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140) is (cid:18)il (cid:108)(cid:137)(cid:135)(cid:136)(cid:139)(cid:86) (cid:18)il(cid:109)(cid:87) (b) Equity Benefits Reserve (cid:26)his reserve is (cid:60)sed to record the val(cid:60)e of e(cid:55)(cid:60)it(cid:64) (cid:35)ene(cid:41)ts provided to emplo(cid:64)ees and directors as part of their rem(cid:60)neration(cid:87) Refer to (cid:18)ote (cid:136)(cid:139) for f(cid:60)rther detail of the plan(cid:87) (c) Foreign Currency Translation Reserve (cid:26)he forei(cid:43)n c(cid:60)rrenc(cid:64) translation reserve is (cid:60)sed to record e(cid:63)chan(cid:43)e di(cid:248)erences arisin(cid:43) from the translation of (cid:41)nancial statements of forei(cid:43)n controlled entities(cid:87) Capital Management (cid:26)he Gro(cid:60)p’s o(cid:35)(cid:47)ectives when mana(cid:43)in(cid:43) capital are to safe(cid:43)(cid:60)ard the Gro(cid:60)p’s a(cid:35)ilit(cid:64) to contin(cid:60)e as a (cid:43)oin(cid:43) concern(cid:84) so as to maintain a stron(cid:43) capital (cid:35)ase s(cid:60)(cid:259)cient to maintain f(cid:60)t(cid:60)re e(cid:63)ploration and development of its pro(cid:47)ects(cid:87) In order to maintain or ad(cid:47)(cid:60)st the capital str(cid:60)ct(cid:60)re(cid:84) the Gro(cid:60)p ma(cid:64) ret(cid:60)rn capital to shareholders(cid:84) iss(cid:60)e new shares or sell assets to increase cash(cid:87) (cid:26)he Gro(cid:60)p’s foc(cid:60)s has (cid:35)een to raise s(cid:60)(cid:259)cient f(cid:60)nds thro(cid:60)(cid:43)h e(cid:55)(cid:60)it(cid:64) to f(cid:60)nd e(cid:63)ploration and eval(cid:60)ation activities(cid:87) (cid:26)he Gro(cid:60)p monitors capital on the (cid:35)asis of the (cid:43)earin(cid:43) ratio(cid:84) however there are no e(cid:63)ternal (cid:35)orrowin(cid:43)s as at (cid:35)alance date(cid:87) (cid:17)ana(cid:43)ement mana(cid:43)es shareholder e(cid:55)(cid:60)it(cid:64) (cid:130)(cid:164)(cid:84)(cid:140)(cid:140)(cid:138)(cid:84)(cid:136)(cid:165)(cid:140) (cid:108)(cid:137)(cid:135)(cid:136)(cid:139)(cid:86) (cid:130)(cid:138)(cid:84)(cid:141)(cid:139)(cid:135)(cid:84)(cid:135)(cid:164)(cid:164)(cid:109) as capital(cid:87) (cid:26)here were no chan(cid:43)es in the Gro(cid:60)p’s approach to capital mana(cid:43)ement d(cid:60)rin(cid:43) the (cid:64)ear(cid:87) Ris(cid:48) mana(cid:43)ement policies and proced(cid:60)res are esta(cid:35)lished with re(cid:43)(cid:60)lar monitorin(cid:43) and reportin(cid:43)(cid:87) (cid:18)either the (cid:6)ompan(cid:64) nor an(cid:64) of its s(cid:60)(cid:35)sidiaries are s(cid:60)(cid:35)(cid:47)ect to e(cid:63)ternall(cid:64) imposed capital re(cid:55)(cid:60)irements(cid:87) (cid:136)(cid:139)(cid:87) Contri(cid:35)uted (cid:9)(cid:55)uity and Reser(cid:61)es (cid:108)continued(cid:109) In (cid:17)a(cid:64) (cid:137)(cid:135)(cid:136)(cid:140)(cid:84) Sipa anno(cid:60)nced a placement to e(cid:63)empt investors and a Share (cid:22)(cid:60)rchase (cid:22)lan (cid:108)S(cid:22)(cid:22)(cid:109) for eli(cid:43)i(cid:35)le shareholders at a price of (cid:130)(cid:135)(cid:87)(cid:135)(cid:141)(cid:137)(cid:140) per share(cid:87) On (cid:137)(cid:139) (cid:17)arch (cid:137)(cid:135)(cid:136)(cid:139) the (cid:6)ompan(cid:64) lod(cid:43)ed a prospect(cid:60)s to (cid:60)nderta(cid:48)e a non(cid:102)reno(cid:60)ncea(cid:35)le entitlement iss(cid:60)e to eli(cid:43)i(cid:35)le shareholders of (cid:60)p to appro(cid:63)imatel(cid:64) (cid:136)(cid:164)(cid:135)(cid:84)(cid:140)(cid:137)(cid:136)(cid:84)(cid:164)(cid:141)(cid:136) f(cid:60)ll(cid:64) paid ordinar(cid:64) shares (cid:108)Shares(cid:109) at an iss(cid:60)e price of (cid:130)(cid:135)(cid:87)(cid:135)(cid:138)(cid:140) per Share on the (cid:35)asis of (cid:136) Share for ever(cid:64) (cid:138) Shares held on the record date of (cid:137) (cid:3)pril (cid:137)(cid:135)(cid:136)(cid:139) and (cid:136)(cid:164)(cid:135)(cid:84)(cid:140)(cid:137)(cid:136)(cid:84)(cid:164)(cid:141)(cid:136) options (cid:108)Options(cid:109) on the (cid:35)asis of (cid:136) free a(cid:295)achin(cid:43) Option for ever(cid:64) Share iss(cid:60)ed with each Option havin(cid:43) an e(cid:63)ercise price of (cid:130)(cid:135)(cid:87)(cid:135)(cid:141)(cid:140) and e(cid:63)pirin(cid:43) on (cid:140) (cid:18)ovem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:140) to raise f(cid:60)nds to (cid:60)nderta(cid:48)e e(cid:63)ploration pro(cid:43)rams over the (cid:6)ompan(cid:64)’s (cid:165)(cid:135)(cid:166) interest in the (cid:15)it(cid:43)(cid:60)m (cid:103) (cid:22)ader precio(cid:60)s and (cid:35)ase metals pro(cid:47)ect in (cid:27)(cid:43)anda(cid:84) (cid:60)nderta(cid:48)e e(cid:63)ploration activities associated with the (cid:6)ompan(cid:64)’s (cid:26)had(cid:60)na copper pro(cid:47)ect(cid:84) to meet the e(cid:63)penses of the entitlement iss(cid:60)e(cid:84) and (cid:43)eneral wor(cid:48)in(cid:43) capital(cid:87) (cid:26)hro(cid:60)(cid:43)h the ta(cid:48)e(cid:102)(cid:60)p of the entitlement iss(cid:60)e and shor(cid:292)all(cid:84) (cid:136)(cid:137)(cid:141)(cid:84)(cid:135)(cid:136)(cid:135)(cid:84)(cid:136)(cid:164)(cid:135) Shares and (cid:136)(cid:137)(cid:141)(cid:84)(cid:135)(cid:136)(cid:135)(cid:84)(cid:136)(cid:164)(cid:135) Options were iss(cid:60)ed to raise total proceeds of (cid:130)(cid:139)(cid:84)(cid:139)(cid:139)(cid:140)(cid:84)(cid:138)(cid:140)(cid:164)(cid:87) In addition (cid:141)(cid:84)(cid:135)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) Options were iss(cid:60)ed to (cid:5)l(cid:60)e Ocean (cid:9)(cid:55)(cid:60)ities (cid:22)t(cid:64) (cid:16)imited for service related to the mana(cid:43)ement of the shor(cid:292)all (cid:60)nder the (cid:9)ntitlement Iss(cid:60)e(cid:87) Ordinary Shares Ordinar(cid:64) shares have the ri(cid:43)ht to receive dividends as declared and(cid:84) in the event of windin(cid:43) (cid:60)p of the compan(cid:64)(cid:84) to participate in the proceeds from the sale of all s(cid:60)rpl(cid:60)s assets in proportion to the n(cid:60)m(cid:35)er and amo(cid:60)nts paid (cid:60)p on shares held(cid:87) On a show of hands one vote for ever(cid:64) re(cid:43)istered shareholder and on a poll(cid:84) one vote for each share held (cid:35)(cid:64) a re(cid:43)istered shareholder(cid:87) Share Options Options Issued (cid:31)ear ended 30 June 2015 (cid:26)here were no options iss(cid:60)ed d(cid:60)rin(cid:43) the (cid:64)ear ended (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140)(cid:87) Options Issued (cid:31)ear ended 30 June 2014 (cid:26)hro(cid:60)(cid:43)h the ta(cid:48)e(cid:102)(cid:60)p of the entitlement iss(cid:60)e and shor(cid:292)all o(cid:60)tlined in (cid:18)ote (cid:136)(cid:138)(cid:108)a(cid:109)(cid:84) (cid:136)(cid:138)(cid:139)(cid:84)(cid:135)(cid:136)(cid:135)(cid:84)(cid:136)(cid:164)(cid:135) Options were iss(cid:60)ed with each Option havin(cid:43) an e(cid:63)ercise price of (cid:130)(cid:135)(cid:87)(cid:135)(cid:141)(cid:140) and e(cid:63)pirin(cid:43) on (cid:140) (cid:18)ovem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:140)(cid:87) Annual Report 2015 61 Financial Report Notes to the Financial Statements continued (cid:136)5(cid:87) (cid:25)(cid:44)are Based (cid:22)ayment (cid:22)(cid:163)ans Sipa Resources Employee Share Option Plan (cid:16)on(cid:43) term incentives are administered thro(cid:60)(cid:43)h the Sipa Reso(cid:60)rces (cid:9)mplo(cid:64)ee Share Option (cid:22)lan(cid:87) (cid:26)he (cid:9)SO(cid:22) provides for free options to (cid:35)e iss(cid:60)ed to (cid:22)articipants(cid:84) as determined (cid:35)(cid:64) the directors in their a(cid:35)sol(cid:60)te discretion (cid:35)ased on vario(cid:60)s factors incl(cid:60)din(cid:43) len(cid:43)th of service and the contri(cid:35)(cid:60)tion that the participant will have to the lon(cid:43) term performance of the (cid:6)ompan(cid:64)(cid:87) In the event of an emplo(cid:64)ee or (cid:48)e(cid:64) mana(cid:43)ement personnel leavin(cid:43) the (cid:6)ompan(cid:64)(cid:84) the options held are forfeited(cid:84) (cid:60)nless otherwise a(cid:43)reed (cid:35)(cid:64) the (cid:5)oard(cid:87) (cid:26)he e(cid:63)penses reco(cid:43)nised in the income statement in relation to share(cid:102)(cid:35)ased pa(cid:64)ments is disclosed in (cid:18)ote (cid:138)(cid:108)c(cid:109)(cid:87) (cid:26)here have (cid:35)een no lon(cid:43)(cid:102)term incentives iss(cid:60)ed since (cid:18)ovem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:135)(cid:87) (i) Options Outstanding and Movements in Share Options During the (cid:31)ear 2015 (cid:11)rant date (cid:138)(cid:135)(cid:99)(cid:142)(cid:99)(cid:136)(cid:135) (cid:137)(cid:140)(cid:99)(cid:136)(cid:136)(cid:99)(cid:136)(cid:135) 2014 (cid:11)rant date (cid:138)(cid:135)(cid:99)(cid:142)(cid:99)(cid:136)(cid:135) (cid:137)(cid:140)(cid:99)(cid:136)(cid:136)(cid:99)(cid:136)(cid:135) (cid:136)(cid:136)(cid:99)(cid:136)(cid:136)(cid:99)(cid:136)(cid:136) (cid:9)(cid:63)piry date (cid:9)(cid:63)ercise price Ba(cid:163)ance at start of year (cid:13)ssued during year Lapsed(cid:99) cance(cid:163)(cid:163)ed during year Ba(cid:163)ance at end of year (cid:9)(cid:63)ercisa(cid:35)(cid:163)e at end of year (cid:137)(cid:142)(cid:99)(cid:142)(cid:99)(cid:136)(cid:139) (cid:136)(cid:141)(cid:87)(cid:140) cents (cid:141)(cid:84)(cid:137)(cid:140)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:137)(cid:139)(cid:99)(cid:136)(cid:136)(cid:99)(cid:136)(cid:139) (cid:137)(cid:136) cents (cid:137)(cid:84)(cid:135)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:142)(cid:84)(cid:137)(cid:140)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) – – – (cid:108)(cid:141)(cid:84)(cid:137)(cid:140)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135)(cid:109) (cid:108)(cid:137)(cid:84)(cid:135)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135)(cid:109) (cid:108)(cid:142)(cid:84)(cid:137)(cid:140)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135)(cid:109) – – – – – – (cid:9)(cid:63)piry date (cid:9)(cid:63)ercise price Ba(cid:163)ance at start of year (cid:13)ssued during year Lapsed(cid:99) cance(cid:163)(cid:163)ed during year Ba(cid:163)ance at end of year (cid:9)(cid:63)ercisa(cid:35)(cid:163)e at end of year (cid:137)(cid:142)(cid:99)(cid:142)(cid:99)(cid:136)(cid:139) (cid:136)(cid:141)(cid:87)(cid:140) cents (cid:141)(cid:84)(cid:137)(cid:140)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:137)(cid:139)(cid:99)(cid:136)(cid:136)(cid:99)(cid:136)(cid:139) (cid:137)(cid:136) cents (cid:137)(cid:84)(cid:135)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:136)(cid:135)(cid:99)(cid:136)(cid:136)(cid:99)(cid:136)(cid:138) (cid:137)(cid:135) cents (cid:136)(cid:84)(cid:135)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:136)(cid:135)(cid:84)(cid:137)(cid:140)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) – – – – – – (cid:141)(cid:84)(cid:137)(cid:140)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:141)(cid:84)(cid:137)(cid:140)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:137)(cid:84)(cid:135)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:137)(cid:84)(cid:135)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:108)(cid:136)(cid:84)(cid:135)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135)(cid:109) – – (cid:108)(cid:136)(cid:84)(cid:135)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135)(cid:109) (cid:142)(cid:84)(cid:137)(cid:140)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:142)(cid:84)(cid:137)(cid:140)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (ii) Options Exercised (cid:18)o options were e(cid:63)ercised d(cid:60)rin(cid:43) the (cid:41)nancial (cid:64)ears ended (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140) and (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:139)(cid:87) (iii) Weighted Average Remaining Contractual Life (cid:26)he wei(cid:43)hted avera(cid:43)e remainin(cid:43) contract(cid:60)al life for the share options o(cid:60)tstandin(cid:43) as at (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140) is nil (cid:64)ears (cid:108)(cid:137)(cid:135)(cid:136)(cid:139)(cid:86) (cid:135)(cid:87)(cid:138)(cid:135) (cid:64)ears(cid:109)(cid:87) 62 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information (cid:136)(cid:164)(cid:87) Loss (cid:22)er (cid:25)(cid:44)are (cid:5)asic loss per share amo(cid:60)nts are calc(cid:60)lated (cid:35)(cid:64) dividin(cid:43) the net loss for the (cid:64)ear a(cid:295)ri(cid:35)(cid:60)ta(cid:35)le to ordinar(cid:64) e(cid:55)(cid:60)it(cid:64) holders of the (cid:6)ompan(cid:64) (cid:35)(cid:64) the wei(cid:43)hted avera(cid:43)e n(cid:60)m(cid:35)er of ordinar(cid:64) shares o(cid:60)tstandin(cid:43) d(cid:60)rin(cid:43) the (cid:64)ear(cid:87) (cid:8)il(cid:60)ted loss per share amo(cid:60)nts are calc(cid:60)lated (cid:35)(cid:64) dividin(cid:43) the net loss a(cid:295)ri(cid:35)(cid:60)ta(cid:35)le to ordinar(cid:64) e(cid:55)(cid:60)it(cid:64) holders of the (cid:6)ompan(cid:64) ad(cid:47)(cid:60)sted for the wei(cid:43)hted avera(cid:43)e n(cid:60)m(cid:35)er of ordinar(cid:64) shares o(cid:60)tstandin(cid:43) d(cid:60)rin(cid:43) the (cid:64)ear pl(cid:60)s the wei(cid:43)hted avera(cid:43)e n(cid:60)m(cid:35)er of ordinar(cid:64) shares that wo(cid:60)ld (cid:35)e iss(cid:60)ed on the conversion of all the dil(cid:60)tive potential ordinar(cid:64) shares into ordinar(cid:64) shares(cid:87) (cid:26)he followin(cid:43) re(cid:42)ects the income and share data (cid:60)sed in the (cid:35)asic and dil(cid:60)ted loss per share comp(cid:60)tations(cid:86) Consolidated 2015 $ 2014 $ (cid:18)et loss attri(cid:35)(cid:60)ta(cid:35)le to the ordinar(cid:64) e(cid:55)(cid:60)it(cid:64) holders of the (cid:6)ompan(cid:64) (cid:108)(cid:138)(cid:84)(cid:140)(cid:136)(cid:136)(cid:84)(cid:141)(cid:135)(cid:139)(cid:109) (cid:108)(cid:139)(cid:84)(cid:139)(cid:141)(cid:139)(cid:84)(cid:140)(cid:139)(cid:140)(cid:109) (cid:29)ei(cid:43)hted avera(cid:43)e n(cid:60)m(cid:35)er of ordinar(cid:64) shares (cid:35)efore the (cid:22)lacement (cid:164)(cid:135)(cid:165)(cid:84)(cid:140)(cid:141)(cid:165)(cid:84)(cid:140)(cid:135)(cid:142) (cid:139)(cid:142)(cid:138)(cid:84)(cid:165)(cid:165)(cid:139)(cid:84)(cid:138)(cid:140)(cid:137) (cid:3)d(cid:47)(cid:60)stment for dil(cid:60)tive effect of (cid:22)lacement to Geocr(cid:60)st (cid:3)d(cid:47)(cid:60)stment for dil(cid:60)tive effects of (cid:9)ntitlement Offer (cid:9)ffect of dil(cid:60)tion(cid:86) Share Options (cid:140)(cid:84)(cid:165)(cid:137)(cid:137)(cid:84)(cid:142)(cid:138)(cid:165) (cid:140)(cid:84)(cid:135)(cid:135)(cid:140)(cid:84)(cid:136)(cid:141)(cid:165) (cid:164)(cid:140)(cid:84)(cid:142)(cid:136)(cid:138)(cid:84)(cid:140)(cid:140)(cid:138) – – (cid:29)ei(cid:43)hted avera(cid:43)e n(cid:60)m(cid:35)er of ordinar(cid:64) shares ad(cid:47)(cid:60)sted for dil(cid:60)tion (cid:164)(cid:136)(cid:142)(cid:84)(cid:139)(cid:135)(cid:164)(cid:84)(cid:164)(cid:137)(cid:140) (cid:140)(cid:140)(cid:142)(cid:84)(cid:141)(cid:142)(cid:141)(cid:84)(cid:142)(cid:135)(cid:140) (cid:26)he (cid:136)(cid:138)(cid:138)(cid:84)(cid:142)(cid:142)(cid:142)(cid:84)(cid:139)(cid:136)(cid:139) options (cid:108)(cid:137)(cid:135)(cid:136)(cid:139)(cid:86) (cid:136)(cid:140)(cid:164)(cid:84)(cid:139)(cid:164)(cid:165)(cid:84)(cid:139)(cid:142)(cid:164)(cid:109) are considered to (cid:35)e potential ordinar(cid:64) shares and have not (cid:35)een incl(cid:60)ded in the determination of dil(cid:60)ted earnin(cid:43)s per share as the(cid:64) are anti(cid:102) dil(cid:60)tive for the periods presented(cid:87) (cid:8)etails relatin(cid:43) to the options are set o(cid:60)t in (cid:18)otes (cid:136)(cid:138) and (cid:136)(cid:139)(cid:87) (cid:136)(cid:141)(cid:87) Reconci(cid:163)iation of Loss to Net Cas(cid:44) (cid:10)(cid:163)o(cid:62)s from (cid:19)perations Net Loss (cid:8)epreciation of plant and e(cid:55)(cid:60)ipment (cid:16)oss on disposal of fi(cid:63)ed assets (cid:16)oss on write(cid:102)down of availa(cid:35)le for sale financial assets Gain on e(cid:63)tin(cid:43)(cid:60)ishment of provision (cid:22)rofit on disposal of non(cid:102)c(cid:60)rrent assets Forei(cid:43)n e(cid:63)chan(cid:43)e loss Share of net loss of (cid:47)ointl(cid:64) controlled entit(cid:64) Changes in Assets and Liabilities (cid:8)ecrease in trade and other receiva(cid:35)les (cid:8)ecrease in prepa(cid:64)ments (cid:108)(cid:8)ecrease(cid:109)(cid:99)increase in provisions (cid:108)(cid:8)ecrease(cid:109)(cid:99)increase in trade and other pa(cid:64)a(cid:35)les (cid:18)et cash flow (cid:60)sed in operatin(cid:43) activities (cid:108)(cid:138)(cid:84)(cid:140)(cid:137)(cid:164)(cid:84)(cid:165)(cid:135)(cid:141)(cid:109) (cid:108)(cid:139)(cid:84)(cid:140)(cid:135)(cid:139)(cid:84)(cid:165)(cid:138)(cid:135)(cid:109) (cid:139)(cid:164)(cid:84)(cid:135)(cid:164)(cid:138) (cid:137)(cid:142)(cid:84)(cid:135)(cid:140)(cid:138) (cid:137)(cid:84)(cid:165)(cid:135)(cid:135) (cid:108)(cid:136)(cid:164)(cid:165)(cid:84)(cid:137)(cid:136)(cid:140)(cid:109) (cid:108)(cid:137)(cid:84)(cid:136)(cid:164)(cid:136)(cid:84)(cid:136)(cid:136)(cid:142)(cid:109) (cid:139)(cid:84)(cid:165)(cid:139)(cid:138) (cid:164)(cid:136)(cid:84)(cid:137)(cid:165)(cid:137) (cid:138)(cid:136)(cid:138) – – – – (cid:142)(cid:137)(cid:140)(cid:84)(cid:136)(cid:137)(cid:135) (cid:136)(cid:84)(cid:135)(cid:138)(cid:138)(cid:84)(cid:141)(cid:139)(cid:136) (cid:140)(cid:141)(cid:84)(cid:140)(cid:139)(cid:141) (cid:137)(cid:139)(cid:84)(cid:140)(cid:139)(cid:142) (cid:108)(cid:136)(cid:139)(cid:139)(cid:84)(cid:141)(cid:142)(cid:139)(cid:109) (cid:108)(cid:165)(cid:136)(cid:84)(cid:139)(cid:164)(cid:137)(cid:109) (cid:136)(cid:137)(cid:137)(cid:84)(cid:140)(cid:142)(cid:138) (cid:136)(cid:135)(cid:137)(cid:84)(cid:140)(cid:140)(cid:139) (cid:108)(cid:164)(cid:142)(cid:84)(cid:136)(cid:164)(cid:142)(cid:109) (cid:165)(cid:164)(cid:84)(cid:138)(cid:135)(cid:140) (cid:108)(cid:139)(cid:84)(cid:142)(cid:142)(cid:137)(cid:84)(cid:139)(cid:137)(cid:137)(cid:109) (cid:108)(cid:138)(cid:84)(cid:136)(cid:164)(cid:141)(cid:84)(cid:137)(cid:136)(cid:136)(cid:109) Annual Report 2015 63 Financial Report Notes to the Financial Statements continued (cid:136)(cid:165)(cid:87) Re(cid:163)ated (cid:22)arty (cid:8)isc(cid:163)osure (cid:26)he consolidated (cid:41)nancial statements incl(cid:60)de the (cid:41)nancial statements of Sipa Reso(cid:60)rces (cid:16)imited and the s(cid:60)(cid:35)sidiaries listed in the followin(cid:43) ta(cid:35)le(cid:86) Name Sipa Gold (cid:16)imited Sipa Reso(cid:60)rces (cid:108)(cid:136)(cid:142)(cid:165)(cid:141)(cid:109) (cid:16)imited Sipa (cid:9)(cid:63)ploration (cid:18)(cid:16) Sipa (cid:17)ana(cid:43)ement (cid:22)t(cid:64) (cid:16)td Sipa (cid:103) Gaia (cid:18)(cid:16) (cid:3)shlin(cid:43) Reso(cid:60)rces (cid:18)(cid:16) (cid:26)op(cid:47)est (cid:22)t(cid:64) (cid:16)imited Sipa (cid:103) (cid:29)(cid:64)sol (cid:22)t(cid:64) (cid:16)td Sipa (cid:9)ast (cid:3)frica (cid:22)t(cid:64) (cid:16)td SiGe (cid:9)ast (cid:3)frica (cid:22)t(cid:64) (cid:16)td# Sipa (cid:9)(cid:63)ploration (cid:27)(cid:43)anda (cid:16)imited# Sipa Reso(cid:60)rces (cid:26)an(cid:65)ania (cid:16)imited# Equity Interest Country of (cid:13)ncorporation 2015 % 2014 % (cid:3)(cid:60)stralia (cid:3)(cid:60)stralia (cid:3)(cid:60)stralia (cid:3)(cid:60)stralia (cid:3)(cid:60)stralia (cid:3)(cid:60)stralia (cid:3)(cid:60)stralia (cid:3)(cid:60)stralia (cid:3)(cid:60)stralia (cid:3)(cid:60)stralia (cid:27)(cid:43)anda (cid:26)an(cid:65)ania (cid:136)(cid:135)(cid:135) (cid:136)(cid:135)(cid:135) (cid:136)(cid:135)(cid:135) (cid:136)(cid:135)(cid:135) (cid:136)(cid:135)(cid:135) (cid:136)(cid:135)(cid:135) (cid:136)(cid:135)(cid:135) (cid:136)(cid:135)(cid:135) (cid:136)(cid:135)(cid:135) (cid:136)(cid:135)(cid:135) (cid:136)(cid:135)(cid:135) (cid:136)(cid:135)(cid:135) (cid:136)(cid:135)(cid:135) (cid:136)(cid:135)(cid:135) (cid:136)(cid:135)(cid:135) (cid:136)(cid:135)(cid:135) (cid:136)(cid:135)(cid:135) (cid:136)(cid:135)(cid:135) (cid:136)(cid:135)(cid:135) (cid:136)(cid:135)(cid:135) (cid:136)(cid:135)(cid:135) (cid:165)(cid:135) (cid:165)(cid:135) (cid:165)(cid:135) (cid:134) (cid:9)ntities were acco(cid:60)nted for as a (cid:47)oint vent(cid:60)re prior to ac(cid:55)(cid:60)isition of remainin(cid:43) interest on (cid:136)(cid:140) (cid:14)an(cid:60)ar(cid:64) (cid:137)(cid:135)(cid:136)(cid:140)(cid:87) (cid:26)he wholl(cid:64)(cid:102)owned (cid:43)ro(cid:60)p incl(cid:60)des the (cid:60)ltimate parent entit(cid:64) in the wholl(cid:64)(cid:102)owned (cid:43)ro(cid:60)p(cid:84) Sipa Reso(cid:60)rces (cid:16)imited and wholl(cid:64) owned controlled entities(cid:87) 64 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information (cid:136)(cid:142)(cid:87) (cid:15)ey Managagement (cid:22)ersonne(cid:163) (cid:8)isc(cid:163)osures Directors (cid:6) (cid:17)cGown (cid:8)irector(cid:84) non(cid:102)e(cid:63)ec(cid:60)tive (cid:6)hairman (cid:108)(cid:3)ppointed (cid:136)(cid:136) (cid:17)ar (cid:137)(cid:135)(cid:136)(cid:140)(cid:109) (cid:16) (cid:5)(cid:60)rnett (cid:17)ana(cid:43)in(cid:43) (cid:8)irector (cid:108)(cid:3)ppointed (cid:137)(cid:139) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:139)(cid:109)(cid:85) (cid:9)(cid:63)ploration (cid:17)ana(cid:43)er (cid:108)(cid:27)ntil (cid:137)(cid:139) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:139)(cid:109) (cid:8) Goodin(cid:43) (cid:8)irector(cid:84) non(cid:102)e(cid:63)ec(cid:60)tive (cid:15) Field (cid:22) (cid:15)ile(cid:64) (cid:8)irector(cid:84) non(cid:102)e(cid:63)ec(cid:60)tive (cid:8)irector(cid:84) non(cid:102)e(cid:63)ec(cid:60)tive (cid:108)(cid:3)ppointed (cid:137)(cid:138) Sept (cid:137)(cid:135)(cid:136)(cid:139)(cid:109) (cid:22) I (cid:22)earce (cid:8)irector(cid:84) non(cid:102)e(cid:63)ec(cid:60)tive (cid:6)hairman (cid:108)Retired (cid:136)(cid:136) (cid:17)ar (cid:137)(cid:135)(cid:136)(cid:140)(cid:109) M Doepel (cid:17)ana(cid:43)in(cid:43) (cid:8)irector (cid:108)(cid:27)ntil (cid:137)(cid:139) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:139)(cid:109)(cid:85) (cid:8)irector(cid:84) non(cid:102)e(cid:63)ec(cid:60)tive (cid:108)(cid:137)(cid:139) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:139)(cid:102)(cid:136)(cid:137) Sept (cid:137)(cid:135)(cid:136)(cid:139)(cid:109) (cid:8) (cid:29)illiams (cid:8)irector(cid:84) non(cid:102)e(cid:63)ec(cid:60)tive (cid:108)Resi(cid:43)ned (cid:137)(cid:138) Sept (cid:137)(cid:135)(cid:136)(cid:139)(cid:109) Executives T Robson (cid:6)hief Financial Officer and (cid:6)ompan(cid:64) Secretar(cid:64) Compensation (cid:35)y Category(cid:86) (cid:15)ey Management (cid:22)ersonne(cid:163) Short(cid:102)term emplo(cid:64)ee (cid:35)enefits (cid:22)ost emplo(cid:64)ment (cid:35)enefits Other lon(cid:43) term (cid:35)enefits Consolidated 2015 $ 2014 $ (cid:164)(cid:141)(cid:135)(cid:84)(cid:135)(cid:140)(cid:140) (cid:140)(cid:138)(cid:140)(cid:84)(cid:138)(cid:165)(cid:142) (cid:108)(cid:136)(cid:137)(cid:136)(cid:84)(cid:137)(cid:141)(cid:137)(cid:109) – (cid:138)(cid:142)(cid:84)(cid:142)(cid:142)(cid:138) (cid:164)(cid:84)(cid:136)(cid:164)(cid:137) (cid:140)(cid:139)(cid:165)(cid:84)(cid:141)(cid:165)(cid:138) (cid:140)(cid:165)(cid:136)(cid:84)(cid:140)(cid:139)(cid:139) Other Transactions with Key Management Personnel (cid:17)r (cid:22)a(cid:60)l (cid:15)ile(cid:64)(cid:84) a director of the compan(cid:64)(cid:84) is principal of (cid:30)a(cid:43)(cid:60)s (cid:22)t(cid:64) (cid:16)td which provided cons(cid:60)ltin(cid:43) to the (cid:6)ompan(cid:64)(cid:87) (cid:3)ll fees paid to (cid:30)a(cid:43)(cid:60)s are at competitive mar(cid:48)et rates(cid:87) (cid:26)he total services reco(cid:43)nised as an e(cid:63)pense for the (cid:64)ear amo(cid:60)nted to (cid:130)(cid:164)(cid:84)(cid:135)(cid:135)(cid:135) (cid:108)(cid:137)(cid:135)(cid:136)(cid:139)(cid:86) (cid:18)il(cid:109)(cid:87) (cid:3)s at (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140) a (cid:35)alance of (cid:130)(cid:137)(cid:84)(cid:138)(cid:136)(cid:136) remained o(cid:60)tstandin(cid:43) (cid:108)(cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:139)(cid:86) (cid:18)il(cid:109)(cid:87) (cid:17)r (cid:8) (cid:14) (cid:29)illiams(cid:84) a former director of the compan(cid:64)(cid:84) is a commercial co(cid:60)nsel with the le(cid:43)al practice (cid:29)illiams and (cid:12)(cid:60)(cid:43)hes (cid:22)t(cid:64) (cid:16)td which provides le(cid:43)al advice to the compan(cid:64)(cid:87) (cid:3)ll transactions with (cid:29)illiams and (cid:12)(cid:60)(cid:43)hes are at competitive mar(cid:48)et rates and performed primaril(cid:64) (cid:35)(cid:64) sta(cid:248) of (cid:29)illiams and (cid:12)(cid:60)(cid:43)hes (cid:22)t(cid:64) (cid:16)td(cid:87) (cid:26)he total services reco(cid:43)nised as an e(cid:63)pense for the (cid:64)ear amo(cid:60)nted to (cid:130)(cid:137)(cid:84)(cid:139)(cid:165)(cid:137) (cid:108)(cid:137)(cid:135)(cid:136)(cid:139)(cid:86) (cid:130)(cid:140)(cid:84)(cid:142)(cid:142)(cid:165)(cid:109)(cid:87) (cid:3)s at (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140) a (cid:35)alance of (cid:130)(cid:18)il remained o(cid:60)tstandin(cid:43) (cid:108)(cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:139)(cid:86) (cid:18)il(cid:109)(cid:87) (cid:17)r (cid:17)cGown(cid:84) the (cid:6)hairman and a director of the compan(cid:64)(cid:84) is an e(cid:63)ec(cid:60)tive director of the corporate advisor(cid:64) (cid:35)(cid:60)siness (cid:18)ew (cid:12)olland (cid:6)apital (cid:22)t(cid:64) (cid:16)td(cid:87) (cid:26)hro(cid:60)(cid:43)h his role as e(cid:63)ec(cid:60)tive director of (cid:18)ew (cid:12)olland (cid:6)apital (cid:22)t(cid:64) (cid:16)td(cid:84) (cid:17)r (cid:17)cGown has (cid:35)een cons(cid:60)ltin(cid:43) to the (cid:6)ompan(cid:64) since Octo(cid:35)er (cid:137)(cid:135)(cid:136)(cid:139)(cid:87) (cid:8)(cid:60)rin(cid:43) the period(cid:84) he was paid (cid:130)(cid:138)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) for those services (cid:108)(cid:137)(cid:135)(cid:136)(cid:139)(cid:86) (cid:18)il(cid:109)(cid:87) all of which were earned prior to his appointment(cid:87) (cid:18)o fees have (cid:35)een paid in accordance with the mandate since appointment in (cid:17)arch (cid:137)(cid:135)(cid:136)(cid:140)(cid:87) (cid:3)s at (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140) a (cid:35)alance of (cid:130)(cid:18)il remained o(cid:60)tstandin(cid:43) (cid:108)(cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:139)(cid:86) (cid:18)il(cid:109)(cid:87) Annual Report 2015 65 Financial Report Notes to the Financial Statements continued 2(cid:135)(cid:87) Commitments for (cid:9)(cid:63)penditure (a) Operating Lease – Group as Lessee (cid:26)he (cid:6)ompan(cid:64) has o(cid:35)li(cid:43)ations (cid:60)nder the terms of the lease of its o(cid:259)ce premises for a term of (cid:140) (cid:64)ears(cid:84) pl(cid:60)s a f(cid:60)rther (cid:140) (cid:64)ear option(cid:84) from and incl(cid:60)din(cid:43) (cid:136)st da(cid:64) of (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:135)(cid:164)(cid:87) (cid:26)he option was e(cid:63)ercised in (cid:17)a(cid:64) (cid:137)(cid:135)(cid:136)(cid:136) and e(cid:63)pires in (cid:17)a(cid:64) (cid:137)(cid:135)(cid:136)(cid:164)(cid:87) (cid:16)ease pa(cid:64)ments are pa(cid:64)a(cid:35)le in advance (cid:35)(cid:64) (cid:136)(cid:137) e(cid:55)(cid:60)al monthl(cid:64) instalments d(cid:60)e on the (cid:136)st da(cid:64) of each month(cid:87) (cid:27)nder the lease a(cid:43)reement the lessee provides for a rent review (cid:35)ased on (cid:6)(cid:22)I each anniversar(cid:64) date(cid:87) (cid:8)(cid:60)e not later than one (cid:64)ear (cid:8)(cid:60)e later than one (cid:64)ear and not later than five (cid:64)ears Consolidated 2015 $ 2014 $ (cid:137)(cid:136)(cid:164)(cid:84)(cid:138)(cid:136)(cid:164) (cid:136)(cid:164)(cid:165)(cid:84)(cid:140)(cid:135)(cid:138) – (cid:136)(cid:140)(cid:165)(cid:84)(cid:138)(cid:137)(cid:138) (cid:137)(cid:136)(cid:164)(cid:84)(cid:138)(cid:136)(cid:164) (cid:138)(cid:137)(cid:164)(cid:84)(cid:165)(cid:137)(cid:164) (b) Exploration Expenditure Commitments (cid:26)he consolidated entit(cid:64) has minim(cid:60)m stat(cid:60)tor(cid:64) commitments as conditions of ten(cid:60)re of certain minin(cid:43) tenements(cid:87) In addition it has commitments to perform and e(cid:63)pend f(cid:60)nds towards retainin(cid:43) an interest in formalised a(cid:43)reements with partners(cid:87) If all e(cid:63)istin(cid:43) areas of interest were maintained on the terms in place at (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140)(cid:84) the (cid:8)irectors estimate the minim(cid:60)m e(cid:63)pendit(cid:60)re commitment for the ens(cid:60)in(cid:43) twelve months to (cid:35)e (cid:130)(cid:139)(cid:84)(cid:136)(cid:140)(cid:137)(cid:84)(cid:135)(cid:135)(cid:135) (cid:108)(cid:137)(cid:135)(cid:136)(cid:139)(cid:86) (cid:130)(cid:139)(cid:84)(cid:139)(cid:142)(cid:142)(cid:84)(cid:165)(cid:135)(cid:135)(cid:109)(cid:87) (cid:12)owever the (cid:8)irectors consider that the act(cid:60)al commitment is li(cid:48)el(cid:64) to (cid:35)e less as these commitments are red(cid:60)ced contin(cid:60)o(cid:60)sl(cid:64) for s(cid:60)ch items as e(cid:63)emption applications to the (cid:8)epartment of Geolo(cid:43)ical S(cid:60)rve(cid:64) and (cid:17)ines(cid:84) (cid:27)(cid:43)anda(cid:84) withdrawal from tenements(cid:84) and other farm(cid:102)o(cid:60)t transactions(cid:87) In an(cid:64) event these e(cid:63)pendit(cid:60)res do not represent (cid:43)en(cid:60)ine commitments as the (cid:43)ro(cid:60)nd can alwa(cid:64)s (cid:35)e s(cid:60)rrendered in lie(cid:60) of pa(cid:64)ment of commitments(cid:87) (cid:26)his estimate ma(cid:64) (cid:35)e varied as a res(cid:60)lt of the (cid:43)rantin(cid:43) of applications for e(cid:63)emption(cid:87) (c) Commitment to Controlled Entities (cid:26)he (cid:6)ompan(cid:64) has advised its controlled entities that it will contin(cid:60)e to provide f(cid:60)nds to meet those entities’ wor(cid:48)in(cid:43) capital re(cid:55)(cid:60)irements for at least the ne(cid:63)t twelve months(cid:87) (d) Remuneration Commitments (cid:3) rem(cid:60)neration commitment arises for (cid:17)s (cid:5)(cid:60)rne(cid:295) in the event of earl(cid:64) termination of her emplo(cid:64)ment contract other than for (cid:43)ross miscond(cid:60)ct e(cid:55)(cid:60)al to (cid:164) months total rem(cid:60)neration pac(cid:48)a(cid:43)e(cid:87) (cid:17)s (cid:5)(cid:60)rne(cid:295) ma(cid:64) terminate the a(cid:43)reement (cid:35)(cid:64) (cid:136) months notice in the event she is demoted from her position witho(cid:60)t (cid:43)ood ca(cid:60)se(cid:84) or is re(cid:55)(cid:60)ested(cid:84) witho(cid:60)t (cid:43)ood ca(cid:60)se to ass(cid:60)me responsi(cid:35)ilities or perform tas(cid:48)s not reasona(cid:35)l(cid:64) consistent with her position(cid:87) In this instance(cid:84) she will(cid:84) s(cid:60)(cid:35)(cid:47)ect to shareholder approval if necessar(cid:64)(cid:84) (cid:35)e entitled to a pa(cid:64)o(cid:60)t of (cid:136) (cid:64)ear (cid:35)ase salar(cid:64)(cid:87) (cid:17)s (cid:5)(cid:60)rne(cid:295)’s total ann(cid:60)al rem(cid:60)neration pac(cid:48)a(cid:43)e is (cid:35)ase salar(cid:64) of (cid:130)(cid:137)(cid:141)(cid:140)(cid:84)(cid:135)(cid:135)(cid:135)(cid:84) pl(cid:60)s s(cid:60)perann(cid:60)ation of (cid:130)(cid:137)(cid:164)(cid:84)(cid:136)(cid:137)(cid:140)(cid:87) 66 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information 2(cid:136)(cid:87) (cid:13)nterests in (cid:14)oint (cid:19)perations The consolidated entity has an interest in the following Jointly Operations: Arrangement (cid:22)rincipa(cid:163) Acti(cid:61)ities (cid:17)ortloc(cid:48) River (cid:14)(cid:28) Gold(cid:99)(cid:6)opper (cid:9)(cid:63)ploration SiGe (cid:9)ast (cid:3)frica (cid:22)t(cid:64) (cid:16)td (cid:108)(cid:136)(cid:109) (cid:5)ase (cid:17)etal (cid:9)(cid:63)ploration Percentage Interest 2015 (cid:139)(cid:142)(cid:166) (cid:136)(cid:135)(cid:135)(cid:166) 2014 (cid:139)(cid:142)(cid:166) (cid:165)(cid:135)(cid:166) (cid:3)ll of the a(cid:35)ove (cid:47)oint operations are for the p(cid:60)rposes of e(cid:63)ploration activities and holdin(cid:43) of tenement interests(cid:87) (cid:108)(cid:136)(cid:109) Refer (cid:18)ote (cid:137)(cid:137)(cid:87) 22(cid:87) (cid:13)n(cid:61)estment in (cid:14)oint (cid:28)enture (cid:26)he Gro(cid:60)p held an (cid:165)(cid:135)(cid:166) interest in the iss(cid:60)ed share capital of SIG(cid:9) (cid:9)ast (cid:3)frica (cid:22)t(cid:64) (cid:16)td (cid:108)SiGe(cid:109)(cid:84) a compan(cid:64) involved in e(cid:63)ploration activities in (cid:27)(cid:43)anda(cid:84) which it (cid:47)ointl(cid:64) controlled and acco(cid:60)nted for as a (cid:47)oint vent(cid:60)re(cid:87) In (cid:14)an(cid:60)ar(cid:64) (cid:137)(cid:135)(cid:136)(cid:140)(cid:84) Sipa completed the ac(cid:55)(cid:60)isition of the remainin(cid:43) (cid:137)(cid:135)(cid:166) of shares in SiGe from Geocr(cid:60)st (cid:22)t(cid:64) (cid:16)td to (cid:35)ecome the (cid:136)(cid:135)(cid:135)(cid:166) holder of the (cid:15)it(cid:43)(cid:60)m(cid:102)(cid:22)ader (cid:35)ase and precio(cid:60)s metals pro(cid:47)ect in (cid:27)(cid:43)anda(cid:84) (cid:9)ast (cid:3)frica in e(cid:63)chan(cid:43)e for ordinar(cid:64) f(cid:60)ll(cid:64) paid Sipa shares to the val(cid:60)e of (cid:3)(cid:130)(cid:139)(cid:142)(cid:142)(cid:84)(cid:138)(cid:138)(cid:139)(cid:87) From this date(cid:84) this entit(cid:64) was acco(cid:60)nted for as a s(cid:60)(cid:35)sidiar(cid:64)(cid:87) 23(cid:87) (cid:25)egment (cid:13)nformation For mana(cid:43)ement p(cid:60)rposes(cid:84) the (cid:6)ompan(cid:64) is or(cid:43)anised into one main operatin(cid:43) se(cid:43)ment(cid:84) which involves minin(cid:43) e(cid:63)ploration for (cid:43)old and other minerals(cid:87) (cid:3)ll of the (cid:6)ompan(cid:64)’s activities are interrelated(cid:84) and discrete (cid:41)nancial information is reported to the (cid:5)oard (cid:108)(cid:6)hief Operatin(cid:43) (cid:8)ecision (cid:17)a(cid:48)ers(cid:109) as a sin(cid:43)le se(cid:43)ment(cid:87) (cid:3)ccordin(cid:43)l(cid:64)(cid:84) all si(cid:43)ni(cid:41)cant operatin(cid:43) decisions are (cid:35)ased (cid:60)pon anal(cid:64)sis of the (cid:6)ompan(cid:64) as one se(cid:43)ment(cid:87) (cid:26)he (cid:41)nancial res(cid:60)lts from this se(cid:43)ment are e(cid:55)(cid:60)ivalent to the (cid:41)nancial statements of the (cid:6)ompan(cid:64) as a whole(cid:87) (cid:3)ll of the (cid:6)ompan(cid:64)’s reven(cid:60)es are derived in (cid:3)(cid:60)stralia(cid:87) (cid:26)he (cid:6)ompan(cid:64)’s non c(cid:60)rrent assets are located in (cid:3)(cid:60)stralia and (cid:3)frica(cid:87) Non(cid:102)current (cid:19)perating Assets (cid:3)(cid:60)stralia (cid:3)frica Total 2015 $ 2014 $ (cid:137)(cid:135)(cid:140)(cid:84)(cid:136)(cid:165)(cid:138) (cid:137)(cid:142)(cid:140)(cid:84)(cid:135)(cid:138)(cid:165) (cid:164)(cid:135)(cid:142)(cid:84)(cid:136)(cid:135)(cid:142) – (cid:165)(cid:136)(cid:139)(cid:84)(cid:137)(cid:142)(cid:137) (cid:137)(cid:142)(cid:140)(cid:84)(cid:135)(cid:138)(cid:165) (cid:18)on(cid:102)c(cid:60)rrent assets for this p(cid:60)rpose consist of propert(cid:64)(cid:84) plant and e(cid:55)(cid:60)ipment(cid:84) and e(cid:63)ploration and eval(cid:60)ation(cid:87) Annual Report 2015 67 Financial Report Notes to the Financial Statements continued 2(cid:139)(cid:87) (cid:10)inancia(cid:163) Risk Management Overview (cid:26)his note presents information a(cid:35)o(cid:60)t the (cid:6)ompan(cid:64)’s and Gro(cid:60)p’s e(cid:63)pos(cid:60)re to credit(cid:84) li(cid:55)(cid:60)idit(cid:64) and mar(cid:48)et ris(cid:48)s(cid:84) their o(cid:35)(cid:47)ectives(cid:84) policies and processes for meas(cid:60)rin(cid:43) and mana(cid:43)in(cid:43) ris(cid:48)(cid:84) and the mana(cid:43)ement of capital(cid:87) (cid:26)he (cid:6)ompan(cid:64) and the Gro(cid:60)p does not (cid:60)se an(cid:64) form of derivatives as it is not at a level of e(cid:63)pos(cid:60)re that re(cid:55)(cid:60)ires the (cid:60)se of derivatives to hed(cid:43)e its e(cid:63)pos(cid:60)re(cid:87) (cid:9)(cid:63)pos(cid:60)re limits are reviewed (cid:35)(cid:64) mana(cid:43)ement on a contin(cid:60)o(cid:60)s (cid:35)asis(cid:87) (cid:26)he (cid:43)ro(cid:60)p does not enter into or trade (cid:41)nancial instr(cid:60)ments(cid:84) incl(cid:60)din(cid:43) derivative (cid:41)nancial instr(cid:60)ments(cid:84) for spec(cid:60)lative p(cid:60)rposes(cid:87) (cid:26)he (cid:5)oard of (cid:8)irectors has overall responsi(cid:35)ilit(cid:64) for the esta(cid:35)lishment and oversi(cid:43)ht of the ris(cid:48) mana(cid:43)ement framewor(cid:48)(cid:87) (cid:17)ana(cid:43)ement monitors and mana(cid:43)es the (cid:41)nancial ris(cid:48)s relatin(cid:43) to the operations of the (cid:43)ro(cid:60)p thro(cid:60)(cid:43)h re(cid:43)(cid:60)lar reviews of the ris(cid:48)s(cid:87) Credit Risk (cid:6)redit ris(cid:48) is the ris(cid:48) of (cid:41)nancial loss to the Gro(cid:60)p if a c(cid:60)stomer or co(cid:60)nterpart(cid:64) to a (cid:41)nancial instr(cid:60)ment fails to meet its contract(cid:60)al o(cid:35)li(cid:43)ations(cid:84) and arises principall(cid:64) from the Gro(cid:60)p’s cash and cash e(cid:55)(cid:60)ivalents and trade and other receiva(cid:35)les(cid:87) Cash and cash equivalents (including term deposits reserved for rehabilitation) (cid:26)he Gro(cid:60)p limits its e(cid:63)pos(cid:60)re to credit ris(cid:48) (cid:35)(cid:64) onl(cid:64) investin(cid:43) in li(cid:55)(cid:60)id sec(cid:60)rities and onl(cid:64) with co(cid:60)nterparties that have an accepta(cid:35)le credit ratin(cid:43)(cid:87) (cid:6)ash is held with reco(cid:43)nised (cid:41)nancial instit(cid:60)tions with (cid:3)(cid:3) credit ratin(cid:43)(cid:87) Trade and other receivables (cid:3)s the Gro(cid:60)p operates primaril(cid:64) in e(cid:63)ploration activities(cid:84) its trade receiva(cid:35)les are limited to interest receiva(cid:35)le and other minor advances therefore red(cid:60)ces the e(cid:63)pos(cid:60)re to credit ris(cid:48) in relation to trade receiva(cid:35)les(cid:87) (cid:3)t the reportin(cid:43) date there were no si(cid:43)ni(cid:41)cant concentrations of credit ris(cid:48)(cid:87) Other receiva(cid:35)les consist primaril(cid:64) of GS(cid:26) ref(cid:60)nda(cid:35)le from the (cid:3)(cid:26)O and interest d(cid:60)e on the Gro(cid:60)p’s term deposits(cid:87) Given the accepta(cid:35)le credit ratin(cid:43)s of (cid:35)oth parties(cid:84) mana(cid:43)ement does not e(cid:63)pect an(cid:64) either part(cid:64) to fail to meet its o(cid:35)li(cid:43)ations(cid:87) Exposure to Credit Risk (cid:26)he carr(cid:64)in(cid:43) amo(cid:60)nt of the Gro(cid:60)p’s (cid:41)nancial assets represents the ma(cid:63)im(cid:60)m credit e(cid:63)pos(cid:60)re(cid:87) (cid:26)he Gro(cid:60)p’s ma(cid:63)im(cid:60)m e(cid:63)pos(cid:60)re to credit ris(cid:48) at the reportin(cid:43) date was(cid:86) (cid:6)ash and cash e(cid:55)(cid:60)ivalents (cid:26)erm deposits reserved for reha(cid:35)ilitation (cid:26)rade and other receiva(cid:35)les Other financial assets Consolidated 2015 $ 2014 $ (cid:164)(cid:84)(cid:137)(cid:138)(cid:138)(cid:84)(cid:138)(cid:138)(cid:164) (cid:139)(cid:84)(cid:135)(cid:136)(cid:138)(cid:84)(cid:165)(cid:136)(cid:139) (cid:139)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:136)(cid:164)(cid:137)(cid:84)(cid:138)(cid:164)(cid:165) (cid:137)(cid:137)(cid:84)(cid:164)(cid:139)(cid:139) (cid:139)(cid:139)(cid:84)(cid:137)(cid:139)(cid:140) (cid:165)(cid:135)(cid:84)(cid:136)(cid:142)(cid:136) (cid:139)(cid:139)(cid:84)(cid:137)(cid:139)(cid:140) (cid:164)(cid:84)(cid:138)(cid:139)(cid:135)(cid:84)(cid:137)(cid:137)(cid:140) (cid:139)(cid:84)(cid:138)(cid:135)(cid:135)(cid:84)(cid:164)(cid:136)(cid:165) Impairment losses (cid:18)one of the Gro(cid:60)p’s other receiva(cid:35)les are past d(cid:60)e (cid:108)(cid:137)(cid:135)(cid:136)(cid:139)(cid:86) nil(cid:109)(cid:87) Liquidity Risk (cid:16)i(cid:55)(cid:60)idit(cid:64) ris(cid:48) is the ris(cid:48) that the Gro(cid:60)p will not (cid:35)e a(cid:35)le to meet its (cid:41)nancial o(cid:35)li(cid:43)ations as the(cid:64) fall d(cid:60)e(cid:87) (cid:26)he Gro(cid:60)p’s approach to mana(cid:43)in(cid:43) li(cid:55)(cid:60)idit(cid:64) is to ens(cid:60)re(cid:84) as far as possi(cid:35)le(cid:84) that it will alwa(cid:64)s have s(cid:60)(cid:259)cient li(cid:55)(cid:60)idit(cid:64) to meet its lia(cid:35)ilities when d(cid:60)e(cid:84) (cid:60)nder (cid:35)oth normal and stressed conditions(cid:84) witho(cid:60)t inc(cid:60)rrin(cid:43) (cid:60)naccepta(cid:35)le losses or ris(cid:48)in(cid:43) dama(cid:43)e to the Gro(cid:60)p’s rep(cid:60)tation(cid:87) (cid:26)he Gro(cid:60)p mana(cid:43)es li(cid:55)(cid:60)idit(cid:64) ris(cid:48) (cid:35)(cid:64) maintainin(cid:43) ade(cid:55)(cid:60)ate cash reserves from f(cid:60)nds raised in the mar(cid:48)et and (cid:35)(cid:64) contin(cid:60)o(cid:60)sl(cid:64) monitorin(cid:43) forecast and act(cid:60)al cash (cid:42)ows(cid:87) (cid:26)he Gro(cid:60)p does not have an(cid:64) e(cid:63)ternal (cid:35)orrowin(cid:43)s(cid:87) (cid:26)he (cid:6)ompan(cid:64) does anticipate a need to raise additional capital in the ne(cid:63)t (cid:136)(cid:137) months to meet forecast operational and e(cid:63)ploration activities(cid:87) (cid:26)he decision on how the (cid:6)ompan(cid:64) will raise f(cid:60)t(cid:60)re capital will depend on mar(cid:48)et conditions e(cid:63)istin(cid:43) at that time(cid:87) 68 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information (cid:26)he followin(cid:43) are the contract(cid:60)al mat(cid:60)rities of (cid:41)nancial lia(cid:35)ilities(cid:84) incl(cid:60)din(cid:43) estimated interest pa(cid:64)ments (cid:108)(cid:60)ndisco(cid:60)nted(cid:109) and e(cid:63)cl(cid:60)din(cid:43) the impact of ne(cid:2487)n(cid:43) a(cid:43)reements(cid:86) Conso(cid:163)idated 3(cid:135) (cid:14)une 2(cid:135)(cid:136)5 (cid:26)rade and other pa(cid:64)a(cid:35)les Conso(cid:163)idated 3(cid:135) (cid:14)une 2(cid:135)(cid:136)(cid:139) (cid:26)rade and other pa(cid:64)a(cid:35)les Carrying amount Contractua(cid:163) cas(cid:44) f(cid:163)o(cid:62)s (cid:164) mt(cid:44)s or (cid:163)ess (cid:138)(cid:136)(cid:139)(cid:84)(cid:135)(cid:139)(cid:138) (cid:138)(cid:136)(cid:139)(cid:84)(cid:135)(cid:139)(cid:138) (cid:138)(cid:136)(cid:139)(cid:84)(cid:135)(cid:139)(cid:138) (cid:138)(cid:136)(cid:139)(cid:84)(cid:135)(cid:139)(cid:138) (cid:138)(cid:136)(cid:139)(cid:84)(cid:135)(cid:139)(cid:138) (cid:138)(cid:136)(cid:139)(cid:84)(cid:135)(cid:139)(cid:138) (cid:138)(cid:142)(cid:140)(cid:84)(cid:140)(cid:135)(cid:140) (cid:138)(cid:142)(cid:140)(cid:84)(cid:140)(cid:135)(cid:140) (cid:138)(cid:142)(cid:140)(cid:84)(cid:140)(cid:135)(cid:140) (cid:138)(cid:142)(cid:140)(cid:84)(cid:140)(cid:135)(cid:140) (cid:138)(cid:142)(cid:140)(cid:84)(cid:140)(cid:135)(cid:140) (cid:138)(cid:142)(cid:140)(cid:84)(cid:140)(cid:135)(cid:140) Market Risk (cid:17)ar(cid:48)et ris(cid:48) is the ris(cid:48) that chan(cid:43)es in mar(cid:48)et prices(cid:84) s(cid:60)ch as forei(cid:43)n e(cid:63)chan(cid:43)e rates(cid:84) interest rates and e(cid:55)(cid:60)it(cid:64) prices will a(cid:248)ect the Gro(cid:60)p’s income or the val(cid:60)e of its holdin(cid:43)s of (cid:41)nancial instr(cid:60)ments(cid:87) (cid:26)he o(cid:35)(cid:47)ective of mar(cid:48)et ris(cid:48) mana(cid:43)ement is to mana(cid:43)e and control mar(cid:48)et ris(cid:48) e(cid:63)pos(cid:60)res within accepta(cid:35)le parameters(cid:84) while optimisin(cid:43) the ret(cid:60)rn(cid:87) Foreign Currency Risk Forei(cid:43)n c(cid:60)rrenc(cid:64) ris(cid:48) is the ris(cid:48) that the fair val(cid:60)e or f(cid:60)t(cid:60)re cash (cid:42)ows of an e(cid:63)pos(cid:60)re will (cid:42)(cid:60)ct(cid:60)ate (cid:35)eca(cid:60)se of chan(cid:43)es in forei(cid:43)n e(cid:63)chan(cid:43)e rates(cid:87) (cid:26)he Gro(cid:60)p’s e(cid:63)pos(cid:60)re to the ris(cid:48) of chan(cid:43)es in forei(cid:43)n e(cid:63)chan(cid:43)e rates relates primaril(cid:64) to the Gro(cid:60)p’s e(cid:63)ploration activities (cid:108)when e(cid:63)ploration and administration e(cid:63)pense is denominated in a forei(cid:43)n c(cid:60)rrenc(cid:64)(cid:84) namel(cid:64) (cid:27)S (cid:8)ollars and (cid:27)(cid:43)andan Shillin(cid:43)s(cid:109) and the Gro(cid:60)p’s net investments in forei(cid:43)n s(cid:60)(cid:35)sidiaries(cid:87) S(cid:60)rpl(cid:60)s f(cid:60)nds are held primaril(cid:64) in (cid:3)(cid:60)stralian (cid:8)ollars with the Gro(cid:60)p ens(cid:60)rin(cid:43) that its net e(cid:63)pos(cid:60)re is (cid:48)ept to an accepta(cid:35)le level (cid:35)(cid:64) (cid:35)(cid:60)(cid:64)in(cid:43) or sellin(cid:43) forei(cid:43)n c(cid:60)rrencies at spot rates when necessar(cid:64) to address short(cid:102)term re(cid:55)(cid:60)irements(cid:87) Interest Rate Risk (cid:26)he Gro(cid:60)p is e(cid:63)posed to interest rate ris(cid:48) (cid:108)primaril(cid:64) on its cash and cash e(cid:55)(cid:60)ivalents(cid:109)(cid:84) which is the ris(cid:48) that a (cid:41)nancial instr(cid:60)ment’s val(cid:60)e will (cid:42)(cid:60)ct(cid:60)ate as a res(cid:60)lt of chan(cid:43)es in the mar(cid:48)et interest rates on interest(cid:102)(cid:35)earin(cid:43) (cid:41)nancial instr(cid:60)ments(cid:87) (cid:26)he Gro(cid:60)p does not (cid:60)se derivatives to miti(cid:43)ate these e(cid:63)pos(cid:60)res(cid:87) (cid:26)he Gro(cid:60)p adopts a polic(cid:64) of ens(cid:60)rin(cid:43) that as far as possi(cid:35)le it maintains e(cid:63)cess cash and cash e(cid:55)(cid:60)ivalents in short term deposit at interest rates mat(cid:60)rin(cid:43) over (cid:142)(cid:135) da(cid:64) rollin(cid:43) periods(cid:87) Profile (cid:3)t the reportin(cid:43) date the Gro(cid:60)p had the followin(cid:43) mi(cid:63) of (cid:41)nancial assets held at (cid:3)(cid:60)stralian Fi(cid:63)ed and Floatin(cid:43) interest rates(cid:87) (cid:26)here were no (cid:41)nancial lia(cid:35)ilities e(cid:63)posed to interest rate ris(cid:48)(cid:87) Floating rate instruments (cid:6)ash and cash e(cid:55)(cid:60)ivalents Fixed rate instruments – No interest rate risk (cid:26)erm deposits reserved for reha(cid:35)ilitation Consolidated 2015 $ 2014 $ (cid:164)(cid:84)(cid:137)(cid:138)(cid:138)(cid:84)(cid:138)(cid:138)(cid:164) (cid:139)(cid:84)(cid:135)(cid:136)(cid:138)(cid:84)(cid:165)(cid:136)(cid:139) (cid:164)(cid:84)(cid:137)(cid:138)(cid:138)(cid:84)(cid:138)(cid:138)(cid:164) (cid:139)(cid:84)(cid:135)(cid:136)(cid:138)(cid:84)(cid:165)(cid:136)(cid:139) (cid:139)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:136)(cid:164)(cid:137)(cid:84)(cid:138)(cid:164)(cid:165) (cid:139)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:136)(cid:164)(cid:137)(cid:84)(cid:138)(cid:164)(cid:165) Annual Report 2015 69 Financial Report Notes to the Financial Statements continued 2(cid:139)(cid:87) (cid:10)inancia(cid:163) Risk Management (cid:108)continued(cid:109) Fair (cid:28)alue Sensitivity Analysis for Fixed Rate Instruments (cid:26)he Gro(cid:60)p does not acco(cid:60)nt for an(cid:64) (cid:41)(cid:63)ed rate (cid:41)nancial assets and lia(cid:35)ilities at fair val(cid:60)e thro(cid:60)(cid:43)h pro(cid:41)t or loss(cid:84) (cid:26)herefore a chan(cid:43)e in interest rates for (cid:41)nancial instr(cid:60)ments with short term mat(cid:60)rit(cid:64) at the reportin(cid:43) date wo(cid:60)ld not a(cid:248)ect the carr(cid:64)in(cid:43) amo(cid:60)nt or pro(cid:41)t or loss(cid:87) Cash Flow Sensitivity Analysis for (cid:28)ariable Rate Instruments (cid:26)he Gro(cid:60)p’s e(cid:63)pos(cid:60)re to varia(cid:35)le rate instr(cid:60)ments is in cash and cash e(cid:55)(cid:60)ivalents(cid:87) (cid:3) (cid:136)(cid:135)(cid:135) (cid:35)asis point favo(cid:60)ra(cid:35)le and (cid:60)nfavo(cid:60)ra(cid:35)le chan(cid:43)e in interest rates will a(cid:248)ect comprehensive income (cid:35)(cid:64) (cid:130)(cid:164)(cid:137)(cid:84)(cid:138)(cid:138)(cid:138) and (cid:130)(cid:108)(cid:164)(cid:137)(cid:84)(cid:138)(cid:138)(cid:138)(cid:109) (cid:108)(cid:137)(cid:135)(cid:136)(cid:139) (cid:130)(cid:137)(cid:84)(cid:139)(cid:137)(cid:164) and (cid:130)(cid:108)(cid:137)(cid:84)(cid:139)(cid:137)(cid:164)(cid:109)(cid:109) respectivel(cid:64)(cid:87) Fair (cid:28)alues Fair (cid:28)alues (cid:28)ersus Carrying Amounts (cid:8)(cid:60)e to their short term nat(cid:60)re(cid:84) the carr(cid:64)in(cid:43) amo(cid:60)nts of (cid:41)nancial assets and lia(cid:35)ilities appro(cid:63)imate fair val(cid:60)e(cid:87) Other Market Price Risk Other (cid:9)(cid:55)(cid:60)it(cid:64) price ris(cid:48) is the ris(cid:48) that the val(cid:60)e of the instr(cid:60)ment will (cid:42)(cid:60)ct(cid:60)ate as a res(cid:60)lt of chan(cid:43)es in mar(cid:48)et prices (cid:108)other than those arisin(cid:43) from interest rate ris(cid:48) or c(cid:60)rrenc(cid:64) ris(cid:48)(cid:109)(cid:84) whether ca(cid:60)sed (cid:35)(cid:64) factors speci(cid:41)c to an individ(cid:60)al investment(cid:84) its iss(cid:60)er or all factors a(cid:248)ectin(cid:43) all instr(cid:60)ments traded in the mar(cid:48)et(cid:87) Investments are mana(cid:43)ed on an individ(cid:60)al (cid:35)asis and material (cid:35)(cid:60)(cid:64) and sell decisions are approved (cid:35)(cid:64) the (cid:5)oard of (cid:8)irectors(cid:87) (cid:26)he primar(cid:64) (cid:43)oal of the Gro(cid:60)p’s investment strate(cid:43)(cid:64) is to ma(cid:63)imise investment ret(cid:60)rns(cid:87) (cid:26)he Gro(cid:60)p’s investments are solel(cid:64) in e(cid:55)(cid:60)it(cid:64) instr(cid:60)ments(cid:87) (cid:26)hese instr(cid:60)ments are classi(cid:41)ed as availa(cid:35)le(cid:102)for(cid:102)sale and carried at fair val(cid:60)e with fair val(cid:60)e chan(cid:43)es reco(cid:43)nised directl(cid:64) in e(cid:55)(cid:60)it(cid:64)(cid:84) (cid:60)nless the(cid:64) are impaired(cid:84) (cid:60)ntil dereco(cid:43)nised(cid:87) (cid:26)he followin(cid:43) ta(cid:35)le details the (cid:35)rea(cid:48)down of the investment assets and lia(cid:35)ilities held (cid:35)(cid:64) the Gro(cid:60)p(cid:86) Shares in listed entities Consolidated 2015 $ (cid:140)(cid:84)(cid:137)(cid:135)(cid:135) (cid:140)(cid:84)(cid:137)(cid:135)(cid:135) 2014 $ (cid:165)(cid:84)(cid:135)(cid:135)(cid:135) (cid:165)(cid:84)(cid:135)(cid:135)(cid:135) Sensitivity Analysis (cid:26)he Gro(cid:60)p’s (cid:3)vaila(cid:35)le(cid:102)For(cid:102)Sale investments are listed on the (cid:3)(cid:60)stralian Stoc(cid:48) (cid:9)(cid:63)chan(cid:43)e(cid:87) (cid:3) (cid:136)(cid:87)(cid:137)(cid:142)(cid:166) increase in stoc(cid:48) prices at (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140) wo(cid:60)ld have increased e(cid:55)(cid:60)it(cid:64) (cid:35)(cid:64) (cid:130)(cid:164)(cid:141) (cid:108)(cid:137)(cid:135)(cid:136)(cid:139)(cid:86) (cid:130)(cid:136)(cid:84)(cid:135)(cid:136)(cid:164)(cid:109)(cid:85) an e(cid:55)(cid:60)al chan(cid:43)e in the opposite direction wo(cid:60)ld have increased the net loss (cid:35)(cid:64) the same amo(cid:60)nt(cid:87) (cid:136)(cid:87)(cid:137)(cid:142)(cid:166) is representative of the (cid:42)(cid:60)ct(cid:60)ation of the (cid:3)S(cid:30) (cid:3)ll Ordinaries Inde(cid:63) for the period (cid:136) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:139) to (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140) (cid:108)(cid:137)(cid:135)(cid:136)(cid:139)(cid:86) (cid:136)(cid:137)(cid:87)(cid:141)(cid:166)(cid:109)(cid:87) Commodity Price Risk (cid:26)he Gro(cid:60)p operates primaril(cid:64) in the e(cid:63)ploration and eval(cid:60)ation phase and accordin(cid:43)l(cid:64) the Gro(cid:60)p’s (cid:41)nancial assets and lia(cid:35)ilities are s(cid:60)(cid:35)(cid:47)ect to minimal commodit(cid:64) price ris(cid:48)(cid:87) 70 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information 25(cid:87) Auditors(cid:90) Remuneration (cid:26)he a(cid:60)ditor of Sipa Reso(cid:60)rces (cid:16)imited is (cid:9)rnst (cid:123) (cid:31)o(cid:60)n(cid:43)(cid:87) Amounts received or due and receivable by Ernst & Young for: – an a(cid:60)dit or review of the (cid:41)nancial report of the entit(cid:64) and an(cid:64) other entit(cid:64) in the consolidated entit(cid:64) – other services in relation to the entit(cid:64) and an(cid:64) other entit(cid:64) in the consolidated entit(cid:64) – ta(cid:63) compliance Consolidated 2015 $ 2014 $ (cid:140)(cid:165)(cid:84)(cid:137)(cid:137)(cid:164) (cid:140)(cid:138)(cid:84)(cid:140)(cid:164)(cid:135) – (cid:140)(cid:165)(cid:84)(cid:137)(cid:137)(cid:164) (cid:136)(cid:142)(cid:84)(cid:142)(cid:165)(cid:142) (cid:141)(cid:138)(cid:84)(cid:140)(cid:139)(cid:142) (cid:26)here were no pa(cid:64)ments made or d(cid:60)e to an(cid:64) other a(cid:60)dit (cid:41)rms other than (cid:9)rnst (cid:123) (cid:31)o(cid:60)n(cid:43) for an(cid:64) a(cid:60)dit or other acco(cid:60)ntin(cid:43) service(cid:87) 2(cid:164)(cid:87) Contingent Assets and Lia(cid:35)i(cid:163)ities In Fe(cid:35)r(cid:60)ar(cid:64) (cid:137)(cid:135)(cid:136)(cid:140)(cid:84) the (cid:6)ompan(cid:64) completed the sale of the (cid:26)had(cid:60)na pro(cid:47)ect to Sand(cid:41)re Reso(cid:60)rces (cid:16)td (cid:108)Sand(cid:41)re(cid:109) for (cid:130)(cid:137) million worth of Sand(cid:41)re shares and a (cid:136)(cid:166) (cid:18)et Smelter Ro(cid:64)alt(cid:64)(cid:87) (cid:27)nder the terms of the (cid:3)(cid:43)reement(cid:84) Sand(cid:41)re ac(cid:55)(cid:60)ired the entire le(cid:43)al and (cid:35)ene(cid:41)cial interest in (cid:9)(cid:140)(cid:137)(cid:99)(cid:136)(cid:164)(cid:141)(cid:138)(cid:84) (cid:9)(cid:140)(cid:137)(cid:99)(cid:136)(cid:164)(cid:141)(cid:139)(cid:84) (cid:9)(cid:140)(cid:137)(cid:99)(cid:136)(cid:165)(cid:140)(cid:165)(cid:84) (cid:9)(cid:140)(cid:137)(cid:99)(cid:137)(cid:138)(cid:140)(cid:164)(cid:84) (cid:9)(cid:140)(cid:137)(cid:99)(cid:137)(cid:138)(cid:140)(cid:141)(cid:84) and (cid:9)(cid:140)(cid:137)(cid:99)(cid:137)(cid:139)(cid:135)(cid:140) incl(cid:60)din(cid:43) the ri(cid:43)hts and (cid:35)ene(cid:41)ts which Sipa is entitled to (cid:60)nder herita(cid:43)e a(cid:43)reements and native title contracts(cid:84) and all minin(cid:43) information which is relevant to the (cid:26)enements(cid:87) (cid:18)o contin(cid:43)ent asset has (cid:35)een reco(cid:43)nised as it is not pro(cid:35)a(cid:35)l(cid:64) at (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140)(cid:84) economic (cid:35)ene(cid:41)ts will (cid:35)e received (cid:35)(cid:64) the compan(cid:64)(cid:87) (cid:8)(cid:60)rin(cid:43) the (cid:64)ear ended (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:138) the (cid:22)anorama (cid:9)(cid:63)ploration (cid:22)ro(cid:47)ect (cid:14)oint Operation partners (cid:108)Sipa (cid:139)(cid:135)(cid:166) (cid:102) (cid:6)(cid:5)(cid:12) Reso(cid:60)rces (cid:16)imited (cid:164)(cid:135)(cid:166)(cid:109) sold the (cid:15)an(cid:43)aroo (cid:6)aves (cid:17)inin(cid:43) (cid:16)ease (cid:108)(cid:17)(cid:16)(cid:139)(cid:140)(cid:99)(cid:140)(cid:165)(cid:141)(cid:109) and re(cid:43)ional e(cid:63)ploration tenements (cid:108)(cid:22)(cid:139)(cid:140)(cid:99)(cid:137)(cid:164)(cid:135)(cid:141)(cid:84) (cid:22)(cid:139)(cid:140)(cid:99)(cid:137)(cid:164)(cid:135)(cid:142)(cid:102) (cid:137)(cid:164)(cid:136)(cid:139)(cid:84) and (cid:22)(cid:139)(cid:140)(cid:99)(cid:137)(cid:164)(cid:136)(cid:164)(cid:109) to (cid:28)ent(cid:60)re(cid:63) Reso(cid:60)rces (cid:16)imited (cid:108)(cid:28)ent(cid:60)re(cid:63)(cid:109)(cid:84) for the consideration of (cid:130)(cid:137) per dr(cid:64) tonne of all ore mined and treated (cid:35)(cid:64) (cid:28)ent(cid:60)re(cid:63)(cid:87) (cid:18)o contin(cid:43)ent asset has (cid:35)een reco(cid:43)nised as it is not pro(cid:35)a(cid:35)le at (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140) economic (cid:35)ene(cid:41)ts will (cid:35)e received (cid:35)(cid:64) the compan(cid:64)(cid:87) (cid:8)(cid:60)rin(cid:43) the (cid:64)ear ended (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:136)(cid:84) Sipa sold its (cid:136)(cid:135)(cid:135)(cid:166) interest in the (cid:3)sh(cid:35)(cid:60)rton Gold (cid:22)ro(cid:47)ect to (cid:18)orthern Star Reso(cid:60)rces (cid:16)imited(cid:87) (cid:27)nder the terms of the a(cid:43)reement(cid:84) (cid:18)orthern Star will pa(cid:64) Sipa a (cid:136)(cid:87)(cid:141)(cid:140)(cid:166) (cid:43)ross ro(cid:64)alt(cid:64) on all (cid:43)old prod(cid:60)ction from the tenements(cid:84) e(cid:63)cept the (cid:17)erlin tenements(cid:84) which will earn a (cid:135)(cid:87)(cid:141)(cid:140)(cid:166) (cid:43)ross ro(cid:64)alt(cid:64) on all (cid:43)old prod(cid:60)ction from the (cid:17)erlin tenements(cid:87) (cid:18)o contin(cid:43)ent asset has (cid:35)een reco(cid:43)nised as it is not pro(cid:35)a(cid:35)le at (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140) economic (cid:35)ene(cid:41)ts will (cid:35)e received (cid:35)(cid:64) the compan(cid:64)(cid:87) (cid:8)(cid:60)rin(cid:43) the (cid:64)ear ended (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:135)(cid:140)(cid:84) Sipa sold its interest in the S(cid:60)lph(cid:60)r Sprin(cid:43)s (cid:26)enements (cid:108)(cid:17)(cid:139)(cid:140)(cid:99)(cid:135)(cid:139)(cid:142)(cid:139)(cid:84) (cid:17)(cid:139)(cid:140)(cid:99)(cid:135)(cid:164)(cid:140)(cid:138)(cid:84) (cid:17)(cid:139)(cid:140)(cid:99)(cid:136)(cid:135)(cid:135)(cid:135)(cid:109) to (cid:6)(cid:5)(cid:12) S(cid:60)lph(cid:60)r Sprin(cid:43)s (cid:22)t(cid:64) (cid:16)td(cid:87) (cid:27)nder the terms of the a(cid:43)reement(cid:84) S(cid:60)lph(cid:60)r Sprin(cid:43)s (cid:22)t(cid:64) (cid:16)td will pa(cid:64) Sipa (cid:130)(cid:137) per tonne of ore processed from the S(cid:60)lph(cid:60)r Sprin(cid:43)s (cid:26)enements(cid:87) (cid:6)(cid:5)(cid:12) S(cid:60)lph(cid:60)r Sprin(cid:43)s was sold in (cid:137)(cid:135)(cid:136)(cid:136) to (cid:28)ent(cid:60)re(cid:63) (cid:16)imited and chan(cid:43)ed its name to (cid:28)ent(cid:60)re(cid:63) S(cid:60)lph(cid:60)r Sprin(cid:43)s (cid:22)t(cid:64) (cid:16)td(cid:87) (cid:18)o contin(cid:43)ent asset has (cid:35)een reco(cid:43)nised as it is not pro(cid:35)a(cid:35)l(cid:64) at (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140)(cid:84) economic (cid:35)ene(cid:41)ts will (cid:35)e received (cid:35)(cid:64) the compan(cid:64)(cid:87) Annual Report 2015 71 Financial Report Notes to the Financial Statements continued 2(cid:141)(cid:87) (cid:13)nformation Re(cid:163)ating to (cid:25)ipa Resources Limited (cid:6)(cid:60)rrent assets Total assets (cid:6)(cid:60)rrent lia(cid:35)ilities Total liabilities Retained earnin(cid:43)s (cid:26)otal e(cid:55)(cid:60)it(cid:64) (cid:16)oss of the parent entit(cid:64) (cid:26)otal comprehensive loss of the parent entit(cid:64) (cid:8)etails of an(cid:64) (cid:43)(cid:60)arantees entered into (cid:35)(cid:64) the parent entit(cid:64) in relation to the de(cid:35)ts of its subsidiaries (cid:8)etails of an(cid:64) contin(cid:43)ent lia(cid:35)ilities of the parent entit(cid:64) (cid:8)etails of an(cid:64) contract(cid:60)al commitments (cid:35)(cid:64) the parent entit(cid:64) for the ac(cid:55)(cid:60)isition of propert(cid:64)(cid:84) plant or e(cid:55)(cid:60)ipment 2015 $ 2014 $ (cid:164)(cid:84)(cid:136)(cid:135)(cid:165)(cid:84)(cid:140)(cid:136)(cid:138) (cid:138)(cid:84)(cid:139)(cid:136)(cid:136)(cid:84)(cid:137)(cid:136)(cid:164) (cid:164)(cid:84)(cid:136)(cid:136)(cid:138)(cid:84)(cid:141)(cid:137)(cid:139) (cid:138)(cid:84)(cid:139)(cid:136)(cid:142)(cid:84)(cid:137)(cid:137)(cid:141) – – – – (cid:108)(cid:142)(cid:139)(cid:84)(cid:140)(cid:138)(cid:141)(cid:84)(cid:165)(cid:141)(cid:135)(cid:109) (cid:108)(cid:142)(cid:135)(cid:84)(cid:142)(cid:140)(cid:138)(cid:84)(cid:164)(cid:138)(cid:141)(cid:109) (cid:164)(cid:84)(cid:136)(cid:136)(cid:138)(cid:84)(cid:141)(cid:137)(cid:139) (cid:138)(cid:84)(cid:139)(cid:136)(cid:142)(cid:84)(cid:137)(cid:137)(cid:141) (cid:138)(cid:84)(cid:140)(cid:165)(cid:139)(cid:84)(cid:137)(cid:138)(cid:138) (cid:139)(cid:84)(cid:137)(cid:164)(cid:135)(cid:84)(cid:138)(cid:142)(cid:140) (cid:138)(cid:84)(cid:140)(cid:165)(cid:139)(cid:84)(cid:137)(cid:138)(cid:138) (cid:139)(cid:84)(cid:137)(cid:164)(cid:135)(cid:84)(cid:138)(cid:142)(cid:140) (cid:18)I(cid:16) (cid:18)I(cid:16) (cid:18)I(cid:16) (cid:18)I(cid:16) (cid:18)I(cid:16) (cid:18)I(cid:16) 2(cid:165)(cid:87) (cid:9)(cid:61)ents (cid:25)u(cid:35)se(cid:55)uent to Ba(cid:163)ance (cid:8)ate (cid:26)here has not (cid:35)een an(cid:64) ma(cid:295)er or circ(cid:60)mstance(cid:84) other than that referred to in the (cid:41)nancial statements or notes thereto(cid:84) that has arisen since the end of the (cid:41)nancial (cid:64)ear(cid:84) that has si(cid:43)ni(cid:41)cantl(cid:64) a(cid:248)ected(cid:84) or ma(cid:64) si(cid:43)ni(cid:41)cantl(cid:64) a(cid:248)ect(cid:84) the operations of the consolidated entit(cid:64)(cid:84) the res(cid:60)lts of those operations(cid:84) or the state of a(cid:248)airs of the consolidated entit(cid:64) in f(cid:60)t(cid:60)re (cid:41)nancial (cid:64)ears(cid:84) e(cid:63)cept for as follows(cid:86) Shareholder approval was o(cid:35)tained on (cid:137) (cid:14)(cid:60)l(cid:64) (cid:137)(cid:135)(cid:136)(cid:140) for the (cid:22)lacement to (cid:8)irectors and (cid:136)(cid:84)(cid:165)(cid:140)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) Shares were iss(cid:60)ed(cid:87) (cid:3) f(cid:60)rther (cid:165)(cid:138)(cid:139) Shares were iss(cid:60)ed s(cid:60)(cid:35)se(cid:55)(cid:60)ent to (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140) (cid:60)pon the e(cid:63)ercise of options e(cid:63)pirin(cid:43) (cid:140) (cid:18)ovem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:140)(cid:87) 72 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information Directors’ Declaration In accordance with a resol(cid:60)tion of the directors of Sipa Reso(cid:60)rces (cid:16)imited(cid:84) I state that(cid:86) In the opinion of the directors(cid:86) a(cid:87) the (cid:41)nancial statements and notes of the consolidated entit(cid:64) for the (cid:41)nancial (cid:64)ear ended (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140) are in accordance with the Corporations Act 2001, incl(cid:60)din(cid:43)(cid:86) i(cid:87) (cid:43)ivin(cid:43) a tr(cid:60)e and fair view of the consolidated entit(cid:64)’s (cid:41)nancial position as at (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140) and of its performance for the (cid:64)ear ended on that date(cid:85) and ii(cid:87) compl(cid:64)in(cid:43) with (cid:3)(cid:60)stralian (cid:3)cco(cid:60)ntin(cid:43) Standards (cid:108)incl(cid:60)din(cid:43) the (cid:3)(cid:60)stralian (cid:3)cco(cid:60)ntin(cid:43) Interpretations(cid:109) and the Corporations Regulations 2001(cid:85) (cid:35)(cid:87) the (cid:41)nancial statements and notes also compl(cid:64) with International Financial Reportin(cid:43) Standards as disclosed in (cid:18)ote (cid:137)(cid:85) and c(cid:87) there are reasona(cid:35)le (cid:43)ro(cid:60)nds to (cid:35)elieve that the (cid:6)ompan(cid:64) will (cid:35)e a(cid:35)le to pa(cid:64) its de(cid:35)ts as and when the(cid:64) (cid:35)ecome d(cid:60)e and pa(cid:64)a(cid:35)le(cid:87) d(cid:87) this declaration has (cid:35)een made a(cid:273)er receivin(cid:43) the declarations re(cid:55)(cid:60)ired to (cid:35)e made to the (cid:8)irectors in accordance with section (cid:137)(cid:142)(cid:140)(cid:3) of the Corporations Act 2001 for the (cid:41)nancial (cid:64)ear endin(cid:43) (cid:138)(cid:135) (cid:14)(cid:60)ne (cid:137)(cid:135)(cid:136)(cid:140)(cid:87) On (cid:35)ehalf of the (cid:5)oard (cid:16) (cid:17) (cid:5)(cid:60)rne(cid:295) Managing (cid:8)irector (cid:22)erth(cid:84) (cid:29)estern (cid:3)(cid:60)stralia (cid:8)ated (cid:137)(cid:137) Septem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:140) Annual Report 2015 73 Financial Report Independent Auditor’s Report Ernst & Young 11 Mounts Bay Road Perth WA 6000 Australia GPO Box M939 Perth WA 6843 Tel: +61 8 9429 2222 Fax: +61 8 9429 2436 ey.com/au Independent auditor's report to the members of Sipa Resources Limited Report on the financial report We have audited the accompanying financial report of Sipa Resources Limited, which comprises the consolidated statement of financial position as at 30 June 2015, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors' declaration of the consolidated entity comprising the company and the entities it controlled at the year's end or from time to time during the financial year. Directors' responsibility 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 controls as the directors determine are necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. In Note 2, the directors also state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that the financial statements comply with International Financial Reporting Standards. Auditor's responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the entity's preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit we have complied with the independence requirements of the Corporations Act 2001. We have given to the directors of the company a written Auditor’s Independence Declaration, a copy of which is included in the directors’ report. A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation GL:ET:SIPA:006 74 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information Opinion In our opinion: a. the financial report of Sipa Resources Limited is in accordance with the Corporations Act 2001, including: i. ii. giving a true and fair view of the consolidated entity's financial position as at 30 June 2015 and of its performance for the year ended on that date; and complying with Australian Accounting Standards and the Corporations Regulations 2001; and b. the financial report also complies with International Financial Reporting Standards as disclosed in Note 2. Report on the remuneration report We have audited the Remuneration Report included in the directors' report for the year ended 30 June 2015. The directors of the company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. Opinion In our opinion, the Remuneration Report of Sipa Resources Limited for the year ended 30 June 2015, complies with section 300A of the Corporations Act 2001. Ernst & Young G Lotter Partner Perth 22 September 2015 A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation GL:ET:SIPA:006 Annual Report 2015 75 Financial Report Additional Statutory Information for the year ended 30 June 2015 (cid:26)he followin(cid:43) information is provided in accordance with the listin(cid:43) re(cid:55)(cid:60)irements of the (cid:3)S(cid:30) (cid:16)imited(cid:87) (cid:3)ll information is c(cid:60)rrent as of (cid:136)(cid:165) Septem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:140) (cid:60)nless otherwise noted(cid:87) (cid:136)(cid:87) (cid:25)u(cid:35)stantia(cid:163) (cid:12)o(cid:163)ders (cid:26)he names of s(cid:60)(cid:35)stantial shareholders who have noti(cid:41)ed the compan(cid:64) in accordance with section (cid:164)(cid:141)(cid:136)(cid:5) of the (cid:6)orporations (cid:3)ct (cid:137)(cid:135)(cid:135)(cid:136) are(cid:86) Name (cid:17)r (cid:26)errence (cid:29)illiam (cid:15)ahler (cid:144) (cid:17)rs S(cid:60)(cid:65)anne (cid:15)ahler (cid:149)(cid:15)ahler S(cid:60)per F(cid:60)nd (cid:3)(cid:99)(cid:6)(cid:150) (cid:3)corn (cid:6)apital (cid:16)imited 2(cid:87) (cid:26)op 2(cid:135) (cid:25)(cid:44)are(cid:44)o(cid:163)ders Rank Name (cid:136)(cid:87) (cid:137)(cid:87) (cid:138)(cid:87) (cid:139)(cid:87) (cid:140)(cid:87) (cid:164)(cid:87) (cid:141)(cid:87) (cid:165)(cid:87) (cid:142)(cid:87) (cid:136)(cid:135)(cid:87) (cid:136)(cid:136)(cid:87) (cid:136)(cid:137)(cid:87) (cid:136)(cid:138)(cid:87) (cid:136)(cid:139)(cid:87) (cid:136)(cid:140)(cid:87) (cid:136)(cid:164)(cid:87) (cid:136)(cid:141)(cid:87) (cid:136)(cid:165)(cid:87) (cid:136)(cid:142)(cid:87) (cid:137)(cid:135)(cid:87) Rodiv (cid:18)sw (cid:22)(cid:99)(cid:16) (cid:149)Rodiv (cid:22)ension F(cid:60)nd (cid:3)(cid:99)(cid:6)(cid:150) (cid:17)r (cid:26)errence (cid:29)illiam (cid:15)ahler (cid:144) (cid:17)rs S(cid:60)(cid:65)anne (cid:15)ahler (cid:149)(cid:15)ahler S(cid:60)per 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(cid:12)o(cid:163)ders Ba(cid:163)ance (cid:26)ota(cid:163) (cid:25)(cid:44)ares on (cid:13)ssue (cid:27)nits (cid:138)(cid:165)(cid:84)(cid:164)(cid:142)(cid:164)(cid:84)(cid:164)(cid:164)(cid:165) (cid:138)(cid:164)(cid:84)(cid:142)(cid:138)(cid:165)(cid:84)(cid:137)(cid:137)(cid:164) (cid:27)nits (cid:138)(cid:136)(cid:84)(cid:135)(cid:135)(cid:135)(cid:84)(cid:137)(cid:142)(cid:141) (cid:137)(cid:136)(cid:84)(cid:137)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:136) (cid:136)(cid:164)(cid:84)(cid:139)(cid:142)(cid:137)(cid:84)(cid:140)(cid:137)(cid:165) (cid:136)(cid:164)(cid:84)(cid:137)(cid:165)(cid:135)(cid:84)(cid:138)(cid:141)(cid:164) (cid:136)(cid:137)(cid:84)(cid:165)(cid:135)(cid:138)(cid:84)(cid:139)(cid:139)(cid:141) (cid:136)(cid:136)(cid:84)(cid:139)(cid:142)(cid:164)(cid:84)(cid:141)(cid:136)(cid:140) (cid:142)(cid:84)(cid:139)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:141)(cid:84)(cid:165)(cid:141)(cid:136)(cid:84)(cid:135)(cid:164)(cid:141) 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S(cid:60)(cid:65)anne (cid:15)ahler (cid:149)(cid:15)ahler Famil(cid:64) S(cid:60)per F(cid:60)nd (cid:3)(cid:99)(cid:6)(cid:150) (cid:140)(cid:84)(cid:135)(cid:142)(cid:142)(cid:84)(cid:142)(cid:142)(cid:142) (cid:166) of (cid:27)nits (cid:140)(cid:87)(cid:140) (cid:140)(cid:87)(cid:137)(cid:140) (cid:166) of (cid:27)nits (cid:139)(cid:87)(cid:139)(cid:135) (cid:138)(cid:87)(cid:135)(cid:136) (cid:137)(cid:87)(cid:138)(cid:139) (cid:137)(cid:87)(cid:138)(cid:136) (cid:136)(cid:87)(cid:165)(cid:137) (cid:136)(cid:87)(cid:164)(cid:138) (cid:136)(cid:87)(cid:138)(cid:138) (cid:136)(cid:87)(cid:136)(cid:137) (cid:135)(cid:87)(cid:142)(cid:165) (cid:135)(cid:87)(cid:142)(cid:135) (cid:135)(cid:87)(cid:141)(cid:137) (cid:135)(cid:87)(cid:141)(cid:136) (cid:135)(cid:87)(cid:141)(cid:135) (cid:135)(cid:87)(cid:164)(cid:140) (cid:135)(cid:87)(cid:140)(cid:142) (cid:135)(cid:87)(cid:140)(cid:141) (cid:135)(cid:87)(cid:140)(cid:141) (cid:135)(cid:87)(cid:140)(cid:141) (cid:135)(cid:87)(cid:140)(cid:137) (cid:135)(cid:87)(cid:140)(cid:135) 25.93 74.07 3(cid:87) (cid:9)scro(cid:62)ed (cid:25)ecurities (cid:26)here are (cid:136)(cid:137)(cid:84)(cid:165)(cid:135)(cid:138)(cid:84)(cid:139)(cid:139)(cid:141) sec(cid:60)rities held (cid:35)(cid:64) Geocr(cid:60)st (cid:22)t(cid:64) (cid:16)td which are vol(cid:60)ntaril(cid:64) s(cid:60)(cid:35)(cid:47)ect to escrow(cid:87) (cid:26)he escrow period ends on (cid:136)(cid:139) (cid:14)an(cid:60)ar(cid:64) (cid:137)(cid:135)(cid:136)(cid:164)(cid:87) 76 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information (cid:139)(cid:87) (cid:26)op 2(cid:135) (cid:19)ption(cid:44)o(cid:163)ders (cid:108)(cid:9)(cid:63)piring 5 No(cid:61)em(cid:35)er 2(cid:135)(cid:136)5(cid:109) Rank Name (cid:136)(cid:87) (cid:137)(cid:87) (cid:138)(cid:87) (cid:139)(cid:87) (cid:140)(cid:87) (cid:164)(cid:87) (cid:141)(cid:87) (cid:165)(cid:87) (cid:142)(cid:87) (cid:136)(cid:135)(cid:87) (cid:136)(cid:136)(cid:87) (cid:136)(cid:137)(cid:87) (cid:136)(cid:138)(cid:87) (cid:136)(cid:139)(cid:87) (cid:136)(cid:140)(cid:87) (cid:136)(cid:164)(cid:87) (cid:136)(cid:141)(cid:87) (cid:136)(cid:165)(cid:87) (cid:136)(cid:142)(cid:87) (cid:137)(cid:135)(cid:87) (cid:6)iticorp (cid:18)ominees (cid:22)t(cid:64) (cid:16)imited (cid:149)(cid:6)olonial First State Inv (cid:3)(cid:99)(cid:6)(cid:150) (cid:14) (cid:22) (cid:17)or(cid:43)an (cid:18)ominees (cid:3)(cid:60)stralia (cid:16)imited (cid:18)ational (cid:18)ominees (cid:16)imited (cid:16)(cid:60)maroo (cid:22)t(cid:64) (cid:16)td (cid:149)(cid:16)a(cid:60)rence (cid:15)ir(cid:48) S(cid:99)F (cid:3)(cid:99)(cid:6)(cid:150) Rodiv (cid:18)sw (cid:22)(cid:99)(cid:16) (cid:149)Rodiv (cid:22)ension F(cid:60)nd (cid:3)(cid:99)(cid:6)(cid:150) (cid:17)r (cid:16)a(cid:60)rence (cid:6)harles (cid:15)ir(cid:48) (cid:17)r (cid:17)ichael Glen (cid:8)oepel (cid:144) (cid:17)rs (cid:8)eirdre (cid:3)nn (cid:8)oepel (cid:149)(cid:8)oepel S(cid:60)per F(cid:60)nd (cid:3)(cid:99)(cid:6)(cid:150) (cid:17)r (cid:8)avid (cid:8)avidson (cid:26) S (cid:123) (cid:14) (cid:8) (cid:18)ominees (cid:22)t(cid:64) (cid:16)td (cid:8)ean (cid:22)ropert(cid:64) (cid:26)eam (cid:3)sset (cid:22)t(cid:64) (cid:16)td (cid:26) S (cid:123) (cid:14) (cid:8) (cid:18)ominees (cid:22)t(cid:64) (cid:16)td (cid:18)ordana (cid:22)t(cid:64) (cid:16)td Fnl Investments (cid:22)t(cid:64) (cid:16)td (cid:149)S(cid:60)perann(cid:60)ation F(cid:60)nd (cid:3)(cid:99)(cid:6)(cid:150) (cid:17)elselina (cid:22)t(cid:64) (cid:16)td (cid:149)(cid:17)elselina S(cid:60)per F(cid:60)nd (cid:3)(cid:99)(cid:6)(cid:150) (cid:14)ac(cid:55)(cid:60)eline (cid:15)a(cid:64) (cid:22)t(cid:64) (cid:16)td (cid:149)(cid:22)a(cid:60)l (cid:6)halmers S(cid:60)per F(cid:60)nd (cid:3)(cid:99)(cid:6)(cid:150) (cid:17)ichael Glen (cid:8)oepel (cid:17)r (cid:17)ichael (cid:14)erem(cid:64) (cid:26)homas Sto(cid:48)es (cid:17)r (cid:6)ecil Gar(cid:64) (cid:14)ohn (cid:15)in(cid:43) (cid:144) (cid:17)rs S(cid:60)san (cid:16)orraine (cid:15)in(cid:43) (cid:149)(cid:26)he (cid:6)(cid:43)(cid:47) (cid:123) Sl (cid:15)in(cid:43) S(cid:99)F (cid:3)(cid:99)(cid:6)(cid:150) (cid:5)i(cid:43) Island Research (cid:22)t(cid:64) (cid:16)td (cid:26)ota(cid:163)s(cid:86) (cid:26)op 2(cid:135) (cid:44)o(cid:163)ders of Listed (cid:19)ptions (cid:9)(cid:63)piring on (cid:135)5(cid:99)(cid:136)(cid:136)(cid:99)2(cid:135)(cid:136)5 (cid:124) (cid:130)(cid:135)(cid:87)(cid:135)(cid:141)5 (cid:26)ota(cid:163) Remaining (cid:12)o(cid:163)ders Ba(cid:163)ance (cid:26)ota(cid:163) (cid:19)ptions on (cid:13)ssue 5(cid:87) (cid:8)istri(cid:35)ution of (cid:25)(cid:44)are(cid:44)o(cid:163)der(cid:90)s (cid:12)o(cid:163)dings at 3(cid:136) August 2(cid:135)(cid:136)5 (cid:19)rdinary (cid:25)(cid:44)ares (cid:12)e(cid:163)d Shareholders (cid:136) (cid:102) (cid:136)(cid:84)(cid:135)(cid:135)(cid:135) (cid:136)(cid:84)(cid:135)(cid:135)(cid:136) (cid:102) (cid:140)(cid:84)(cid:135)(cid:135)(cid:135) (cid:140)(cid:84)(cid:135)(cid:135)(cid:136) (cid:102) (cid:136)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:136)(cid:135)(cid:84)(cid:135)(cid:135)(cid:136) (cid:102) (cid:136)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:136)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:136) (cid:102) and over (cid:137)(cid:142)(cid:137) (cid:137)(cid:140)(cid:140) (cid:142)(cid:140)(cid:138) (cid:137)(cid:84)(cid:142)(cid:138)(cid:164) (cid:136)(cid:84)(cid:135)(cid:164)(cid:137) (cid:140)(cid:84)(cid:139)(cid:142)(cid:165) (cid:26)here are (cid:136)(cid:84)(cid:136)(cid:135)(cid:141) Shareholders who hold less than a mar(cid:48)eta(cid:35)le price(cid:87) (cid:17)r Shane (cid:3)nthon(cid:64) (cid:17)atchett (cid:144) (cid:17)rs (cid:17)elita (cid:3)n(cid:43)ela (cid:17)atchett (cid:149)Sa (cid:17)a (cid:17)atchett S(cid:99)F (cid:3)(cid:99)(cid:6)(cid:150) (cid:137)(cid:84)(cid:135)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:27)nits (cid:136)(cid:164)(cid:84)(cid:137)(cid:140)(cid:141)(cid:84)(cid:137)(cid:138)(cid:138) (cid:136)(cid:140)(cid:84)(cid:136)(cid:138)(cid:139)(cid:84)(cid:136)(cid:165)(cid:140) (cid:141)(cid:84)(cid:137)(cid:139)(cid:137)(cid:84)(cid:141)(cid:140)(cid:141) (cid:140)(cid:84)(cid:135)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:140)(cid:84)(cid:135)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:139)(cid:84)(cid:140)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:138)(cid:84)(cid:142)(cid:165)(cid:142)(cid:84)(cid:139)(cid:139)(cid:165) (cid:138)(cid:84)(cid:140)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:138)(cid:84)(cid:138)(cid:139)(cid:164)(cid:84)(cid:164)(cid:164)(cid:141) (cid:138)(cid:84)(cid:136)(cid:137)(cid:140)(cid:84)(cid:135)(cid:135)(cid:135) (cid:138)(cid:84)(cid:135)(cid:165)(cid:138)(cid:84)(cid:164)(cid:136)(cid:141) (cid:138)(cid:84)(cid:135)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:137)(cid:84)(cid:139)(cid:136)(cid:141)(cid:84)(cid:164)(cid:135)(cid:138) (cid:136)(cid:84)(cid:142)(cid:136)(cid:164)(cid:84)(cid:164)(cid:164)(cid:141) (cid:136)(cid:84)(cid:165)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:136)(cid:84)(cid:141)(cid:137)(cid:139)(cid:84)(cid:165)(cid:138)(cid:165) (cid:136)(cid:84)(cid:138)(cid:135)(cid:142)(cid:84)(cid:138)(cid:164)(cid:142) (cid:136)(cid:84)(cid:138)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) (cid:136)(cid:84)(cid:135)(cid:135)(cid:135)(cid:84)(cid:135)(cid:135)(cid:135) 86,647,384 47,351,196 133,998,580 (cid:166) of (cid:27)nits (cid:136)(cid:137)(cid:87)(cid:136)(cid:138) (cid:136)(cid:136)(cid:87)(cid:137)(cid:142) (cid:140)(cid:87)(cid:139)(cid:136) (cid:138)(cid:87)(cid:141)(cid:138) (cid:138)(cid:87)(cid:141)(cid:138) (cid:138)(cid:87)(cid:138)(cid:164) (cid:137)(cid:87)(cid:142)(cid:165) (cid:137)(cid:87)(cid:164)(cid:136) (cid:137)(cid:87)(cid:140)(cid:135) (cid:137)(cid:87)(cid:138)(cid:138) (cid:137)(cid:87)(cid:138)(cid:135) (cid:137)(cid:87)(cid:137)(cid:139) (cid:136)(cid:87)(cid:165)(cid:135) (cid:136)(cid:87)(cid:139)(cid:142) (cid:136)(cid:87)(cid:139)(cid:138) (cid:136)(cid:87)(cid:138)(cid:139) (cid:136)(cid:87)(cid:137)(cid:142) (cid:135)(cid:87)(cid:142)(cid:165) (cid:135)(cid:87)(cid:142)(cid:141) (cid:135)(cid:87)(cid:141)(cid:140) 64.66 35.34 Annual Report 2015 77 Financial Report Additional Statutory Information continued (cid:164)(cid:87) (cid:25)tock (cid:9)(cid:63)c(cid:44)ange Listing (cid:23)(cid:60)otation has (cid:35)een (cid:43)ranted for all the ordinar(cid:64) shares of the (cid:6)ompan(cid:64) on all (cid:17)em(cid:35)er (cid:9)(cid:63)chan(cid:43)es of the (cid:3)S(cid:30) (cid:16)imited(cid:87) (cid:141)(cid:87) (cid:13)ncome (cid:26)a(cid:63) Sipa Reso(cid:60)rces (cid:16)imited is ta(cid:63)ed as a p(cid:60)(cid:35)lic compan(cid:64)(cid:87) (cid:165)(cid:87) (cid:28)oting Rig(cid:44)ts On show of hands one vote for ever(cid:64) re(cid:43)istered shareholder and on a poll(cid:84) one vote for each share held (cid:35)(cid:64) a re(cid:43)istered shareholder(cid:87) (cid:142)(cid:87) (cid:25)c(cid:44)edu(cid:163)e of (cid:26)enements (cid:22)ro(cid:47)ects Location (cid:26)enements (cid:15)I(cid:26)G(cid:27)(cid:17)(cid:102)(cid:22)(cid:3)(cid:8)(cid:9)R (cid:27)G(cid:3)(cid:18)(cid:8)(cid:3) (cid:136)(cid:135)(cid:139)(cid:165)(cid:84) (cid:136)(cid:135)(cid:139)(cid:142)(cid:84)(cid:136)(cid:135)(cid:140)(cid:135)(cid:84)(cid:136)(cid:135)(cid:140)(cid:136)(cid:84)(cid:136)(cid:135)(cid:140)(cid:137)(cid:84) (cid:136)(cid:135)(cid:140)(cid:138)(cid:84) (cid:136)(cid:137)(cid:137)(cid:135)(cid:84) (cid:136)(cid:137)(cid:137)(cid:136)(cid:84) (cid:136)(cid:137)(cid:137)(cid:142)(cid:84) (cid:136)(cid:137)(cid:141)(cid:135)(cid:84) (cid:136)(cid:137)(cid:141)(cid:136)(cid:84) (cid:136)(cid:137)(cid:141)(cid:137)(cid:84) (cid:136)(cid:137)(cid:141)(cid:138)(cid:84) (cid:136)(cid:138)(cid:137)(cid:136)(cid:84) (cid:136)(cid:138)(cid:137)(cid:137)(cid:84) (cid:136)(cid:138)(cid:165)(cid:142)(cid:84) (cid:136)(cid:139)(cid:165)(cid:141) and application (cid:26)(cid:18) (cid:137)(cid:136)(cid:139)(cid:164) (cid:13)nterest (cid:136)(cid:135)(cid:135)(cid:166) 78 Sipa Resources Limited Review of Operations | Governance | Financial Report | Shareholders’ Information Corporate Directory Directors Craig Mc(cid:11)o(cid:62)n Non-Executive Chairman (cid:5)(cid:6)omm(cid:84) F(cid:6)(cid:3)(cid:84) (cid:3)SI(cid:3) Lynda Burnett Managing Director (cid:5)Sc (cid:108)(cid:12)ons(cid:109) G(cid:3)I(cid:6)(cid:8)(cid:84) (cid:17)(cid:3)(cid:60)sI(cid:17)(cid:17)(cid:84) (cid:17)S(cid:9)G (cid:8)a(cid:163)ton (cid:11)ooding Non-Executive Director (cid:5)(cid:87)(cid:5)(cid:27)S(cid:84) F(cid:6)(cid:3) (cid:15)aren (cid:10)ie(cid:163)d Non-Executive Director (cid:5) (cid:9)c(cid:84) F(cid:3)I(cid:6)(cid:8) (cid:22)au(cid:163) (cid:15)i(cid:163)ey Non-Executive Director (cid:108)since appointment (cid:137)(cid:138) Septem(cid:35)er (cid:137)(cid:135)(cid:136)(cid:139)(cid:109) (cid:5) (cid:9)c(cid:87) (cid:6)(cid:22)(cid:3) Company Secretary (cid:26)ara Ro(cid:35)son (cid:5)(cid:3) (cid:3)cco(cid:60)ntin(cid:43) (cid:6)(cid:22)(cid:3) (cid:108)(cid:27)S(cid:3)(cid:109) Registered Office Gro(cid:60)nd Floor (cid:164) (cid:26)helma Street (cid:29)(cid:9)S(cid:26) (cid:22)(cid:9)R(cid:26)(cid:12) (cid:29)(cid:3) (cid:164)(cid:135)(cid:135)(cid:140) (cid:26)elephone Facsimile (cid:108)(cid:135)(cid:165)(cid:109) (cid:142)(cid:139)(cid:165)(cid:136) (cid:164)(cid:137)(cid:140)(cid:142) (cid:108)(cid:135)(cid:165)(cid:109) (cid:142)(cid:138)(cid:137)(cid:137) (cid:138)(cid:135)(cid:139)(cid:141) Bankers (cid:5)an(cid:48) of (cid:29)estern (cid:3)(cid:60)stralia (cid:16)td (cid:16)evel (cid:136)(cid:136)(cid:84) (cid:5)an(cid:48)west (cid:22)lace (cid:138)(cid:135)(cid:135) (cid:17)(cid:60)rra(cid:64) Street (cid:22)(cid:9)R(cid:26)(cid:12) (cid:29)(cid:3) (cid:164)(cid:135)(cid:135)(cid:135) Auditors (cid:9)rnst (cid:123) (cid:31)o(cid:60)n(cid:43) (cid:136)(cid:136) (cid:17)o(cid:60)nts (cid:5)a(cid:64) Road (cid:22)(cid:9)R(cid:26)(cid:12) (cid:29)(cid:3) (cid:164)(cid:135)(cid:135)(cid:135) Tax Advisors Staloest (cid:22)t(cid:64) (cid:16)td (cid:16)evel (cid:139)(cid:84) (cid:139)(cid:139) (cid:22)arliament (cid:22)lace (cid:29)est (cid:22)erth (cid:29)(cid:3) (cid:164)(cid:135)(cid:135)(cid:140) Share Registry (cid:6)omp(cid:60)tershare (cid:16)evel (cid:136)(cid:136)(cid:84) (cid:136)(cid:141)(cid:137) St Geor(cid:43)es (cid:26)errace (cid:22)(cid:9)R(cid:26)(cid:12) (cid:29)(cid:3) (cid:164)(cid:135)(cid:135)(cid:135) (cid:9)n(cid:55)(cid:60)iries (cid:136)(cid:138)(cid:135)(cid:135) (cid:165)(cid:140)(cid:135) (cid:140)(cid:135)(cid:140) (cid:108)within (cid:3)(cid:60)stralia(cid:109) (cid:164)(cid:136) (cid:138) (cid:142)(cid:139)(cid:136)(cid:140) (cid:139)(cid:135)(cid:135)(cid:135) (cid:108)o(cid:60)tside (cid:3)(cid:60)stralia(cid:109) www(cid:87)investorcentre(cid:87)com(cid:99)contact Solicitors Gil(cid:35)ert (cid:123) (cid:26)o(cid:35)in (cid:136)(cid:137)(cid:135)(cid:137) (cid:12)a(cid:64) Street (cid:29)(cid:9)S(cid:26) (cid:22)(cid:9)R(cid:26)(cid:12) (cid:29)(cid:3) (cid:164)(cid:135)(cid:135)(cid:140) Website www(cid:87)sipa(cid:87)com(cid:87)a(cid:60) Annual Report 2015 79 6 Thelma Street, West Perth WA 6005 (cid:144)61 (0)8 9481 6259 (cid:62)(cid:62)(cid:62)(cid:87)sipa(cid:87)com(cid:87)au

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