PELICAN RESOURCES LIMITED
A.B.N. 12 063 388 821
ANNUAL FINANCIAL REPORT
30 JUNE 2020
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
CORPORATE DIRECTORY
BOARD OF DIRECTORS
Antonio Torresan (Executive Director)
Colin Chenu (Non-Executive Director)
Alec Pismiris (Non-Executive Director)
COMPANY SECRETARY
Alec Pismiris
CONTENTS
Directors’ Report
PAGE
1
Statement of Profit or Loss and Other
Comprehensive Income 12
Statement of Financial Position 13
Statement of Changes in Equity 14
15
16
41
42
45
46
48
REGISTERED OFFICE AND PRINCIPAL
BUSINESS OFFICE
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Auditor’s Independence Declaration
ASX Additional Information
Corporate Governance Statement
Level 11, BGC Centre,
28 The Esplanade
Perth WA 6000
Postal Address:
Level 11, BGC Centre,
28 The Esplanade
Perth WA 6000
Telephone: (+61 8) 6424 9299
SHARE REGISTRY
Automic Registry Services
Level 2
267 St Georges Terrace
Perth, Western Australia, 6000
Investor Enquiries: 1300 288 664
AUDITOR
HLB Mann Judd
Level 4
130 Stirling Street
Perth, Western Australia, 6000
Telephone: (+61 8) 9227 7500
(+61 8) 9227 7533
Facsimile:
SECURITIES EXCHANGE LISTING
ASX Limited (Australian Securities Exchange)
ASX Codes: PEL
0
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
DIRECTORS’ REPORT
The directors present their report together with the financial statements of the Group consisting of Pelican
Resources Limited (“Pelican” or “the Company”) and its controlled entities for the financial year ended 30
June 2020 (“Balance Date”), the notes to the financial statements and the auditor’s report thereon.
DIRECTORS
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 the entire period unless otherwise stated.
Colin Edward Chenu
Antonio Alessio Torresan
Alec Christopher Pismiris
PARTICULARS OF DIRECTORS
Colin Edward Chenu, B. Juris, LLB
Non-Executive Director
Mr Chenu is a graduate of the University of Western Australia, with a Bachelor of Laws, and is admitted to
practice in the Supreme Court of Western Australia and the High Court of Australia. He has practised law in
Western Australia for more than 30 years, as both a barrister and solicitor, in a wide range of commercial,
litigious and non litigious work. Mr Chenu has gained extensive experience in the law of corporations, trade
practices, contracts, equity and trusts and tort.
Other current directorships: The Market Herald Limited.
Former directorships (last 3 years): None
Antonio Alessio Torresan
Executive Director
Mr Torresan is a businessman with significant experience in capital markets. Mr Torresan has been actively
involved in arranging capital raisings for ASX listed companies as well as unlisted public companies, providing
investor relation services and assisting boards with development of strategic plans. Mr Torresan has also played
a significant role in negotiating mergers and acquisitions, especially in the mining exploration sector where he
has been pivotable in the recapitalisation and growth of ASX listed companies. Mr Torresan has held numerous
executive positions where his responsibilities have included strategy, operational management and business
development.
Other current directorships: None
Former directorships (last 3 years): None
1
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
DIRECTORS’ REPORT (CONTINUED)
PARTICULARS OF DIRECTORS (CONTINUED)
Alec Pismiris, B.Comm, MAICD, FGIA, FCIS
Non-Executive Director
Mr Pismiris is currently a director and company secretary for several ASX listed companies as well as a number
of unlisted public and private companies. Mr Pismiris is a director of Pacton Gold Inc., a company listed on
the TSX Venture Exchange, where he is engaged as Interim President and Chief Executive Officer. Mr
Pismiris completed a Bachelor of Commerce degree at the University of Western Australia, is a member of the
Australian Institute of Company Directors and a Fellow of The Governance Institute of Australia. Mr Pismiris
has over 30 years’ experience in the securities, finance and mining industries and has participated numerous
times in the processes by which boards have assessed the acquisition and financing of a diverse range of assets
and has participated in and become familiar with the range of evaluation criteria used and the due diligence
processes commonly adopted in the commercial assessment of corporate opportunities.
Other current directorships: Agrimin Limited, Frontier Resources Limited, The Market Herald Limited, Pacton
Gold Inc. and Victory Mines Limited.
Former directorships (last 3 years): Aguia Resources Limited.
COMPANY SECRETARY
Alec Pismiris, B.Comm, MAICD, FGIA, FCIS
Mr Pismiris has over 30 years’ experience in the securities, finance and mining industries and has held a
number of company secretary positions secretary for various ASX listed companies as well as a number of
unlisted public and private companies over the years.
DIRECTORS’ MEETINGS
The following table sets out the number of meetings of the Company’s directors, including directors’ circular
resolutions, held during the year ended 30 June 2020 by each director:
Antonio Torresan
Colin Chenu
Alec Pismiris
PRINCIPAL ACTIVITIES
Number
Eligible to Attend
7
7
7
Number
Attended
7
7
7
The principal activities of the Group during the course of the financial year were to complete the sale of the
Company’s interest in Sibuyan Nickel Properties Development Corporation and the continued search for new
opportunities in the resources sector which could demonstrate capacity to add long term shareholder value.
2
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
DIRECTORS’ REPORT (CONTINUED)
OPERATING AND FINANCIAL REVIEW
The Company made a profit/(loss) after tax of $21,556 for the year ended 30 June 2020 (2019: Loss
$1,913,882).
REPUBLIC OF THE PHILIPPINES
SALE OF SIBUYAN NICKEL PROPERTIES DEVELOPMENT CORPORATION
In June 2015 Pelican entered into a Memorandum of Understanding (“MOU”) with Dynamo Atlantic Limited,
a BVI registered company (“Dynamo”) for the sale of 100% ownership of Sibuyan Nickel Properties
Development Corporation (“SNPDC”) which is owned by Pelican in conjunction with its 25% venture partner
All-Acacia Resources Inc. (“All Acacia”). SNPDC is the beneficial owner of the Romblon Project located on
Sibuyan Island in the Romblon Province in the Philippines.
During the first half of the financial year, the Philippines Bureau of Internal Revenue issued the final
outstanding Certificate Authorizing Registration (“CAR”) to a shareholder of SNPDC relating to the transfer
of their shares. On receipt of the final CAR, the shareholders of SNPDC (“Vendor Parties”) through their
appointed agent delivered to Dynamo Atlantic Limited (“Dynamo”) and Dynamo Atlantic Holdings
Philippines, Inc. (“DHAP”) all corporate records and other relevant documents (“Settlement Documents”) as
specified by the revised Share Sale and Assignment of Debt Agreement (“SSADA”).
Following an extensive review, the Vendor Parties’ agent received confirmation from Dynamo and DAHP that
they were satisfied with the Settlement Documents. Dynamo and DAHP subsequently took possession of the
Settlement Documents, facilitating the transfer of the SNPDC shares.
In accordance with the terms of the SSADA, Dynamo and DAHP deposited the final payment of
AUD$2,190,000 into the Vendor Parties’ agent trust account. The final payment along with the second
payment of AUD$940,000 held in escrow by Pelican were subsequently distributed following a final
reconciliation of costs attributable to the Vendor parties.
The sale of SNPDC is now complete.
WESTERN AUSTRALIA
COCKATOO IRON NL
Pelican holds 5,000,000 fully paid ordinary shares in Cockatoo Iron NL (“Cockatoo Iron”) as a consequence
of the sale of its interests in the Cockatoo Island Project.
Pelican and Cockatoo Iron have further executed a Revenue Sharing Agreement (“RSA”), whereby Pelican
will be entitled to receive up to a maximum of $500,000 per annum of gross revenue received by Cockatoo
Iron and Pearl Gull from certain non-mining activities that may be conducted by third parties within mining
lease 04/235-I and miscellaneous licence applications 04/102 and 04/103. Cockatoo Iron have the right of pre-
emption in respect of a sale by Pelican of its rights under the RSA.
On 19 February 2020, the Company entered into an agreement with Carbine Resources Limited (“Carbine”)
to sell its’ shareholding of 5,000,000 shares in Cockatoo Iron NL to Carbine, subject to certain conditions
precedent. Consideration for the sale is 6,666,667 fully paid ordinary shares in Carbine. The conditions
precedent to the sale remaining outstanding.
3
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
DIRECTORS’ REPORT (CONTINUED)
OPERATING AND FINANCIAL REVIEW (CONTINUED)
CORPORATE
Following settlement on the sale of SNPDC, the board of Pelican resolved to implement a reduction in fees
paid to directors and consultants by approximately one third with effect from 1 January 2020.
The Company’s securities remain suspended from official quotation until it can demonstrate to ASX that the
requirements of Listing Rule 12.1 are satisfied.
APPLICATIONS/RELINQUISHMENTS
Following the sale of the Romblon Project, the Company holds no tenement interests as at 30 June 2020.
BUSINESS DEVELOPMENT
During the financial year the Company commenced due diligence investigations on a potential investment
opportunity in the resources sector.
The Company continued to search for new opportunities in the resources sector which could demonstrate
capacity to add long term shareholder value and support the re-quotation of the Company’s securities on the
ASX. The directors believe that existing cash reserves leave the Company well positioned to fund new
opportunities in the resources sector.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Other than what has been disclosed in the review of operations section, there has been no change in the state
of affairs during the financial year.
DIVIDENDS
No dividends were paid or recommended for the year ended 30 June 2020.
EVENTS SUBSEQUENT TO REPORTING DATE
Pelican and Cockatoo Iron are parties to a RSA, whereby Pelican is entitled to receive the first $500,000
revenue per annum which Cockatoo Iron generates from any third party use of the infrastructure on Mining
Lease 04/235-I. The parties have agreed to terminate the RSA for the payment of $225,000 and subject to
execution of Deed of Settlement and Termination (Deed). Execution of the Deed is anticipated prior to 31
August 2020 with payment to be received prior to 31 December 2020.
No other matters or circumstances have arisen subsequent to the balance date which would significantly affect
the operations of the Company, its operating results or its state of affair in the subsequent financial years.
4
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
DIRECTORS’ REPORT (CONTINUED)
SHARE OPTIONS
The Company has the following securities on issue as at the date of the Directors’ Report.
Security Description
Fully paid shares
Number of Securities
408,591,140
Unissued shares
As at the date of this report, there were no unissued ordinary shares under options (30 June 2019: 35,000,000).
Option holders do not have any right, by virtue of the options, to participate in any share issue of the Company
or any related body corporate.
Shares issued as a result of the exercise of options
During the financial year there were 46,667,600 ordinary shares issued as a result of the exercise of options
(2019: Nil).
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
The Group will continue to focus on its search for further opportunities. Given that the nature of the Group’s
activities is exploration focused, no further information can be provided as to likely developments as such
developments will depend on exploration success at the Group’s various project interests, and the nature of
any new acquisitions going forward.
ENVIRONMENTAL REGULATION
The Group has assessed whether there are any particular or significant environmental regulations which apply.
It has determined that the risk of non-compliance is low, and has not identified any compliance breaches during
the year.
DIRECTORS’ INTERESTS IN SHARES OF THE COMPANY
At the date of this report, the directors’ interests in shares of Pelican Resources Limited were:
Number of Ordinary
Shares
Antonio Torresan
Colin Chenu
Alec Pismiris
77,429,877
Nil
18,000,000
5
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
DIRECTORS’ REPORT (CONTINUED)
CORPORATE GOVERNANCE
In recognising the need for the highest standards of corporate behavior and accountability, the directors of
Pelican Resources Limited support and have substantially adhered to the best practice recommendations set
by the ASX Corporate Governance Council. The Company’s corporate governance statement is contained in
the annual report.
INDEMNIFICATION AND INSURANCE OF DIRECTORS
The Company has, during or since the financial year, in respect of any person who is or has been an officer of
the Company or a related body corporate:
-
-
indemnified or made any relevant agreement for indemnifying against a liability incurred as an officer,
including costs and expenses in successfully defending legal proceedings; or
paid or agreed to pay a premium in respect of a contract insuring against a liability incurred as an
officer for the costs or expenses to defend legal proceedings.
Insurance of Officers
Since the end of the previous financial year, the Company has paid insurance premiums in respect of directors
and officers liability and corporate reimbursement, for directors and officers of the Company. The insurance
premiums relate to:
-
-
any loss for which the directors and officers may not be legally indemnified by the Company arising
out of any claim, by reason of any wrongful act committed by them in their capacity as a director or
officer, first made against them jointly or severally during the period of insurance; and
indemnifying the Company against any payment which it has made and was legally permitted to make
arising out of any claim, by reason of any wrongful act, committed by any director or officer in their
capacity as a director or officer, first made against the director or officer during the period of insurance.
The insurance policy outlined above does not allocate the premium paid to each individual officer of the
Company and does not allow disclosure of the premium.
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the Auditor’s Independence Declaration as required under Section 307C of the Corporations Act
2001 is set out on page 45.
NON-AUDIT SERVICES
HLB Mann Judd has not provided any non-audit services to the entity as shown at Note 14.
6
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
DIRECTORS’ REPORT (CONTINUED)
REMUNERATION REPORT (AUDITED)
This report outlines the remuneration arrangements in place for directors and executives of the Group.
Remuneration policy
The remuneration policy of Pelican Resources Limited has been designed to align director and executive
objectives with shareholder and business objectives by providing a fixed remuneration component and offering
specific long-term incentives based on key performance areas affecting the Group’s ability to attract and retain
the best executives and directors to run and manage the Group.
The Board’s policy for determining the nature and amount of remuneration for board members and senior
executives of the Group is as follows:
The remuneration policy setting out the terms and conditions for the executive directors and other senior
executives was developed by the Board.
Executive remuneration and other terms of employment are reviewed annually by the Board having regard to
performance against goals set at the start of the year, relevant comparative information and independent expert
advice.
As well as a base salary, remuneration packages include superannuation, retirement and termination
entitlements, performance-related bonuses and fringe benefits.
Remuneration packages are set at levels that are intended to attract and retain executives capable of managing
the Company’s diverse operations.
Remuneration and other terms of employment for the executive director and certain other senior executives
have been formalised in service agreements as follows:
The Company has entered into an executive service agreement with executive director, Mr Antonio Torresan.
The terms of the service agreement are set out as follows:
- Commencement date: 24 March 2015
- Term: one year with a one year extension at the sole discretion of the Board
- Fixed remuneration: $120,000 per annum (reduced to $84,000 per annum from January 2020)
- Termination for cause: no notice period
- Termination without cause: three month notice period
The Company has entered into an agreement with non-executive director, Mr Alec Pismiris. The terms of the
agreement are set out as follows:
- Commencement date: 24 March 2015
- Term: no fixed term
- Fixed remuneration: $36,000 per annum (reduced to $24,000 per annum from January 2020)
- Termination for cause: no notice period
- Termination without cause: no notice period
7
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
DIRECTORS’ REPORT (CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
Remuneration policy (continued)
The Company has entered into an agreement with non-executive director, Mr Colin Chenu. The terms of the
agreement are set out as follows:
- Commencement date: 29 June 2015
- Term: no fixed term
- Fixed remuneration: $36,000 per annum (reduced to $24,000 per annum from January 2020)
- Termination for cause: no notice period
- Termination without cause: no notice period
Remuneration of non-executive directors is determined by the Board within the maximum amount approved
by the shareholders from time to time and which currently stands at $250,000 per annum.
The Board undertakes an annual review of its performance against goals set at the start of the year. The Board
may exercise discretion in relation to approving incentives, bonuses and options. The policy is designed to
attract the highest calibre of executives and reward them for performance that results in long-term growth in
shareholder wealth.
All remuneration paid to directors and executives is valued at the cost to the Company and expensed.
Performance-based remuneration
The Company currently has no performance-based remuneration component built into director and executive
remuneration packages.
The Company will be seeking approval for the establishment of a Employee Securities Incentive Plan (“Plan)
that provides greater flexibility by allowing for the issuance of Performance Securities upon a determination
by the Board that an eligible employee may participate in the Plan. Performance Securities can include a Plan
Share, Option, Performance Right or other Convertible Security.
The Company received 100% “yes” votes on its remuneration report for the 30 June 2019 financial year.
8
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
DIRECTORS’ REPORT (CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
Key management personnel compensation
Details of the nature and amount of emoluments paid for each director and executive of Pelican Resources
Limited are set out below:
Primary
Benefits
Salary
& Fees
$
Post
Employment
Super-
annuation
$
Share Based
Payments
Shares/
Options
$
TOTAL
Performance
Based
$
%
Directors
A Torresan - Executive Director
2020
2019
C Chenu - Non-Executive Director
2020
2019
A Pismiris - Non-Executive Director
2020
2019
Total Remuneration:
2020
2019
102,000
120,000
30,000
36,000
60,0001
72,0002
192,000
228,000
Notes:
(1) Includes $30,000 paid as fees for company secretarial services
(2) Includes $36,000 paid as fees for company secretarial services
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
102,000
120,000
30,000
36,000
60,000
72,000
192,000
228,000
-
-
-
-
-
-
-
-
Other related party transactions of key management personnel are disclosed in Note 13.
Remuneration Options
During the year ended 30 June 2020, no options were issued as part of director remuneration (30 June 2019:
Nil).
During the year ended 30 June 2020, 20,000,000 director remuneration options expired.
9
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
DIRECTORS’ REPORT (CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
Shareholdings by Directors
2020
Balance
01/07/19
(No. of Shares)
Received
Remuneration
(No. of Shares)
No. of Options
Exercised
Net Other
Change
(No. of Shares)
Balance
30/06/20
(No. of Shares)
A Torresan
C Chenu
A Pismiris
Total
2019
59,193,981
-
12,000,000
71,193,981
-
-
-
-
18,235,896(1)
-
6,000,000(2)
24,235,896
-
-
-
-
77,429,877
-
18,000,000
95,429,877
Balance
01/07/18
(No. of Shares)
Received
Remuneration
(No. of Shares)
No. of Options
Exercised
Net Other
Change
(No. of Shares)
Balance
30/06/19
(No. of Shares)
59,193,981
-
12,000,000
71,193,981
A Torresan
C Chenu
A Pismiris
Total
(1) On 30/06/19, A Torresan exercised 18,235,896 options exercisable at $0.01 into fully paid ordinary shares that were issued on 2/7/19. Total
holding post exercised is 77,429,877 ordinary shares.
(2) On 30/06/19, A Pismiris exercised 6,000,000 options exercisable at $0.01 into fully paid ordinary shares that were issued on 2/7/19. Total
holding post exercised is 18,000,000 ordinary shares.
59,193,981
-
12,000,000
71,193,981
-(1)
-
-(2)
-
-
-
-
-
-
-
-
-
Options Holdings by Directors
2020
A Torresan
C Chenu
A Pismiris
Total
2019
Balance
01/07/19
(No. Options)
Granted as
Remuneration
(No. Options)
No. of
Options
Acquired
No. of
Options
Exercised
Net
Change Other
(No. Options)
Balance
30/06/20
(No. Options)
10,500,000
2,000,000
7,500,000
20,000,000
-
-
-
-
-
-
-
-
-
-
-
-
(10,500,000)
(2,000,000)
(7,500,000)
(20,000,000)(3)
-
-
-
-
Balance
01/07/18
(No. Options)
Granted as
Remuneration
(No. Options)
No. of
Options
Acquired
No. of
Options
Exercised
Net
Change Other
(No. Options)
Balance
30/06/19
(No. Options)
28,735,896
2,000,000
13,500,000
44,235,896
A Torresan
C Chenu
A Pismiris
Total
10,500,000
2,000,000
7,500,000
20,000,000
(1) On 30/06/19, A Torresan exercised 18,235,896 options exercisable at $0.01 into fully paid ordinary shares that were issued on 2/7/19.
(2) On 30/06/19, A Pismiris exercised 6,000,000 options exercisable at $0.01 into fully paid ordinary shares that were issued on 2/7/19.
(3) These options expired on 31/12/19.
(18,235,896)(1)
-
(6,000,000)(2)
(24,235,896)
-
-
-
-
-
-
-
-
-
-
-
-
End of remuneration report (audited).
10
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
DIRECTORS’ REPORT (CONTINUED)
Signed in accordance with a resolution of the board of directors.
Dated at Perth this 13th day of August, 2020
Alec Pismiris
Director
11
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
Other income
Administration expenses
Exploration expenditure written-off
Fair value loss of investments
Other expenses
Profit/(Loss) before income tax
Income tax benefit
Profit/(Loss) for the year
Other comprehensive income/(loss)
Item that may subsequently be reclassified to profit or loss:
Currency translation differences
Other comprehensive income/(loss) for the year
Consolidated
Note
2020
$
2019
$
2
3
7
601,317
52,539
(565,641)
(14,120)
-
-
(646,169)
-
(1,300,000)
(105,775)
21,556
(1,999,405)
4
-
85,523
21,556
(1,913,882)
(88,250)
29,440
(88,250)
29,440
Total comprehensive income/(loss) for the year
66,694
(1,884,442)
Profit/(Loss) attributable to:
Members of the parent entity
Non-controlling interest
Total comprehensive profit/(loss) attributable to:
Members of the parent entity
Non-controlling interest
21,556
-
21,556
(1,909,870)
(4,012)
(1,913,882)
66,694
-
66,694
(1,887,662)
3,220
(1,884,442)
Basic earning/(loss) per share (cents per share)
Diluted earning/(loss) loss per share (cents per share)
16
16
0.01
0.01
(0.53)
(0.53)
The above consolidated statement of profit or loss and other comprehensive income
should be read in conjunction with the accompanying notes.
12
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020
Current Assets
Cash and cash equivalents
Term deposit
Restricted cash
Security deposits
Trade and other receivables
Prepayments
Assets held for sale
Total Current Assets
Non-Current Assets
Other financial assets
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Deferred revenue
Liabilities associated with assets held for sale
Total Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total parent entity interest
Non-controlling interest
Total Equity
Consolidated
Note
2020
$
2019
$
5
9
6
24
2,094,411
1,200,000
-
114,000
12,897
18,288
-
2,033,527
-
940,000
114,000
11,852
25,798
2,309,779
3,439,596
5,434,956
7
200,000
200,000
200,000
200,000
3,639,596
5,634,956
8
9
24
74,186
-
-
221,705
1,410,000
1,205,219
74,186
2,836,924
74,186
2,836,924
3,565,410
2,798,032
10
11
14,096,796
1,937,083
14,096,796
2,025,333
(12,468,469) (12,490,025)
3,565,410
-
3,632,104
(834,072)
3,565,410
2,798,032
The above consolidated statement of financial position
should be read in conjunction with the accompanying notes.
13
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
Issued
Capital
Options
Reserve
Consolidated
$
$
Foreign
Currency
Translation
Reserve
$
Accumulated
Losses
Non-
Controlling
Interest
Total
Equity
$
$
$
Balance at 01/07/2018
Total comprehensive income
for the year
Loss for the year
Other comprehensive income
Foreign currency translation
differences
Total comprehensive income / (loss)
for the year
Transactions with owners
recorded directly into equity
Share capital to be issued(1)
13,630,120
1,937,083
66,042
(10,580,155)
(837,292)
4,215,798
-
-
-
466,676
-
-
-
-
-
(1,909,870)
(4,012)
(1,913,882)
22,208
-
7,232
29,440
22,208
(1,909,870)
3,220
(1,884,442)
-
-
-
466,676
Balance at 30/06/2019
14,096,796
1,937,083
88,250
(12,490,025)
(834,072)
2,798,032
14,096,796
1,937,083
88,250
(12,490,025)
(834,072)
2,798,032
Balance at 01/07/2019
Total comprehensive income
for the year
Profit for the year
Other comprehensive income
Items that will not be reclassified
subsequently to profit or loss
Exchange differences on disposal of
subsidiary
Total comprehensive income / (loss)
for the year
Transactions with owners
recorded directly into equity
Disposal of subsidiary
-
-
-
-
-
-
-
-
-
21,556
(88,250)
-
(88,250)
21,556
-
-
-
21,556
(88,250)
(66,694)
-
-
-
834,072
834,072
(12,468,469)
-
3,565,410
Balance at 30/06/2020
14,096,796
1,937,083
(1) 46,667,600 options were exercised at 30 June 2020. New shares relating to the exercise of these options were
issued on 2 July 2019.
The above consolidated statement of changes in equity
should be read in conjunction with the accompanying notes.
14
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
Cash Flows from Operating Activities
Payments to suppliers and employees
Interest received
Consolidated
Note
2020
$
2019
$
(728,240)
47,244
(613,147)
52,539
Net Cash Used in Operating Activities
12(b)
(680,996)
(560,608)
Cash Flows from Investing Activities
Payments for exploration expenditure
Proceeds from sale of project
Transaction costs relating to sale
Transfers to term deposits
Net Cash Provided by Investing Activities
Cash Flows from Financing Activities
Gross proceeds from exercise of options
Net Cash Provided by Financing Activities
(14,120)
2,230,000
(274,000)
(1,200,000)
741,880
-
-
-
-
-
-
-
466,676
466,676
Net increase / (decrease) in cash and cash equivalents held
60,884
(93,932)
Cash and cash equivalents at the beginning of the financial year
2,033,527
2,127,459
Cash and cash equivalents at the end of the financial year
12(a)
2,094,411
2,033,527
The above consolidated statement of cash flows
should be read in conjunction with the accompanying notes
15
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Pelican Resources Limited is a company domiciled in Australia. The consolidated financial statements of the
Company as at and for the year ended 30 June 2020 comprise the Company and its subsidiaries (referred to as
the Group).
The significant policies, which have been adopted in the preparation of this financial report, have been applied
consistently unless otherwise stated and are as follows:
(a)
Basis of Preparation
The financial report is a general purpose financial report which has been prepared in accordance with
Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations
Act 2001.
The financial report was authorised for issue by the Board on 13th August 2020.
The financial report has been prepared on an accruals basis and is based on historical costs except for certain
assets which are carried at fair value. Cost is based on the fair values of the consideration given in exchange
for assets.
For the purpose of preparing the consolidated financial statements, the Company is a for-profit entity.
(b)
Statement of Compliance
The financial report complies with Australian Accounting Standards, which include Australian equivalents to
International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial
statements and notes comply with International Financial Reporting Standards (IFRS).
(c)
New and Revised Accounting Standards and Interpretations adopted by the Group
The accounting policies have been consistently applied by the Group and are consistent with those in the
June 2019 annual financial report except for the impact (if any) of new and revised standards and
interpretations outlined below.
The Group has adopted all of the new and revised Standards and Interpretations issued by the Australian
Accounting Standards Board (the AASB) that are relevant to its operations and effective for the current
year.
Standards and Interpretations applicable to 30 June 2020
In the year ended 30 June 2020, the Directors have reviewed all of the new and revised Standards and
Interpretations issued by the AASB that are relevant to the Group and effective for the current reporting
period. As a result of this review, the Directors have determined that there is no material impact of the
new and revised Standards and Interpretations on the Group and, therefore, no material change is
necessary to Group accounting policies.
16
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(d)
Principles of Consolidation
The consolidated financial statements incorporate all of the assets, liabilities and results of the parent, Pelican
Resources Limited and all of the subsidiaries. Subsidiaries are entities the parent controls. The parent controls
an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has
the ability to affect those returns through its power over the entity. A list of the subsidiaries is provided in
Note 15.
The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements of the
Group from the date on which control is obtained by the Group. The consolidation of a subsidiary is
discontinued from the date that control ceases. Intercompany transactions, balances and unrealised gains or
losses on transactions between Group entities are fully eliminated on consolidation. Accounting policies of
subsidiaries have been changed and adjustments made where necessary to ensure uniformity of the accounting
policies adopted by the Group.
Equity interests in a subsidiary not attributable, directly or indirectly, to the Group are presented as “non-
controlling interests”. The Group initially recognises non-controlling interests that are present ownership
interests in subsidiaries and are entitled to a proportionate share of the subsidiary's net assets on liquidation at
either fair value or at the non-controlling interests' proportionate share of the subsidiary's net assets. Subsequent
to initial recognition, non-controlling interests are attributed their share of profit or loss and each component
of other comprehensive income. Non-controlling interests are shown separately within the equity section of
the statement of financial position and statement of profit or loss and other comprehensive income.
(e)
Income Tax
The charge for current income tax is based on the profit for the year adjusted for any non-assessable or
disallowed items. It is calculated using the rates that have been enacted or are substantively enacted by the
balance date.
Deferred tax is accounted for using the statement of financial position liability method in respect of temporary
differences arising between the tax base of assets and liabilities and their carrying amounts in the financial
statements. No deferred income tax will be recognised from the initial recognition of an asset or liability,
excluding a business combination, where there is no effect on accounting or taxable profit or loss.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or
liability is settled. Deferred tax is credited in the statement of profit or loss and other comprehensive income
except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted
directly against equity.
Deferred income tax assets are recognised to the extent that it is probable that future profit will be available
against which deductible temporary differences can be utilised.
The amount of benefits brought to account or which may be realised in the future is based on the assumption
that no adverse change will occur in income taxation legislation and the anticipation that the Group will derive
sufficient future assessable income to enable the benefit to be realised and comply with the conditions of
deductibility imposed by the law.
17
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(f)
Exploration and Evaluation Expenditure
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest.
These costs are only carried forward to the extent that they are expected to be recouped through the successful
development of the area or where activities in the area have not yet reached a stage that permits reasonable
assessment of the existence of economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which
the decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are amortised over the
life of the area according to the rate of depletion of the economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry
forward costs in relation to that area of interest.
Costs of site restoration are provided over the life of the facility from when exploration commences and are
included in the costs of that stage. Site restoration costs include the dismantling and removal of mining plant,
equipment and building structures, waste removal, and rehabilitation of the site in accordance with clauses of
the mining permits. Such costs have been determined using estimates of future costs, current legal
requirements and technology on an undiscounted basis.
Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of
site restoration, there is uncertainty regarding the nature and extent of the restoration due to community
expectations and future legislation. Accordingly, the costs have been determined on the basis that the
restoration will be completed within one year of abandoning the site.
(g)
Share Based Payments
The fair value at grant date is independently determined using a Black-Scholes option pricing model that takes
into account the exercise price, the term of the option, the vesting and performance criteria, the impact of
dilution, the non-tradable nature of the option, the share price at grant date and expected price volatility of the
underlying share, the expected dividend yield and risk free interest rate for the term of the option.
The fair value of the options granted excluded the impact of any non-market vesting condition (for example,
exploration related targets). Non-market vesting conditions are included in assumption about the number of
options that are expected to become exercisable. The employee benefit expense recognised each period takes
into account the most recent estimate.
Upon the exercise of options, the balance of the share-based payments reserve relating to these options is
transferred to share capital.
The market value of shares issued to employees for no cash consideration under the employee share scheme is
recognised as an employee benefits expense with a corresponding increase in equity when the employees
become entitled to the shares.
18
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(h) Investments and other financial assets
Financial assets and are recognised when the Group becomes a party to the contractual provisions of the
financial instrument. Financial assets are derecognised when the contractual rights to the cash flows from the
financial asset expire, or when the financial asset and substantially all the risks and rewards are transferred.
Classification and initial measurement of financial assets
Except for those trade receivables that do not contain a significant financing component and are measured at
the transaction price in accordance with AASB 15, all financial assets are initially measured at fair value
adjusted for transaction costs (where applicable). For the purpose of subsequent measurement, financial assets,
other than those designated and effective as hedging instruments, are classified into the following categories:
-
-
-
-
amortised cost
fair value through profit or loss (FVTPL)
equity instruments at fair value through other comprehensive income (FVOCI)
debt instruments at fair value through other comprehensive income (FVOCI).
All income and expenses relating to financial assets that are recognised in profit or loss are presented within
finance costs, finance income or other financial items, except for impairment of trade receivables which is
presented within other expenses.
The classification is determined by both:
-
-
the entity’s business model for managing the financial asset
the contractual cash flow characteristics of the financial asset.
All income and expenses relating to financial assets that are recognised in profit or loss are presented within
finance costs, finance income or other financial items, except for impairment of trade receivables which is
presented within other expenses.
Subsequent measurement of financial assets
Financial assets that are held within a different business model other than ‘hold to collect’ or ‘hold to collect
and sell’ are categorised at fair value through profit and loss. Further, irrespective of business model financial
assets whose contractual cash flows are not solely payments of principal and interest are accounted for at
FVTPL. All derivative financial instruments fall into this category, except for those designated and effective
as hedging instruments, for which the hedge accounting requirements apply.
The category also contains an equity investment. The Group accounts for the investment at FVTPL and did
not make the irrevocable election to account for the investment in unlisted equity securities at fair value through
other comprehensive income (FVOCI). The fair value was determined in line with the requirements of AASB
9, which does not allow for measurement at cost.
Assets in this category are measured at fair value with gains or losses recognised in profit or loss.
The fair values of financial assets in this category are determined by reference to active market transactions or
using a valuation technique where no active market exists.
19
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Impairment of financial assets
AASB 9’s impairment requirements use more forward-looking information to recognise expected credit losses
– the ‘expected credit loss (ECL) model’. This replaced AASB 139’s ‘incurred loss model’. Instruments within
the scope of the new requirements included loans and other debt-type financial assets measured at amortised
cost and FVOCI, trade receivables, contract assets recognised and measured under AASB 15 and loan
commitments and some financial guarantee contracts (for the issuer) that are not measured at fair value through
profit or loss.
Recognition of credit losses is no longer dependent on the Group first identifying a credit loss event. Instead
the Group considers a broader range of information when assessing credit risk and measuring expected credit
losses, including past events, current conditions, reasonable and supportable forecasts that affect the expected
collectability of the future cash flows of the instrument.
12-month expected credit losses’ are recognised for financial instruments that have not deteriorated
significantly in credit quality since initial recognition or that have low credit risk while ‘lifetime expected
credit losses’ are recognised for financial instruments that have deteriorated significantly in credit quality since
initial recognition and whose credit risk is not low.
Measurement of the expected credit losses is determined by a probability-weighted estimate of credit losses
over the expected life of the financial instrument.
(i)
Impairment of Assets
At each reporting date, the directors review the carrying values of its tangible and intangible assets to determine
whether there is any indication that those assets have been impaired. If such an indication exists, the
recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is
compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount
is expensed to the statement of profit or loss and other comprehensive income.
Where it is not possible to estimate the recoverable amount of an individual asset, the directors estimate the
recoverable amount of the cash-generating unit to which the asset belongs.
(j)
Fair Value of Assets and Liabilities
The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis,
depending on the requirements of the applicable Accounting Standard.
Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability in an
orderly (ie unforced) transaction between independent, knowledgeable and willing market participants at the
measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing information is used
to determine fair value. Adjustments to market values may be made having regard to the characteristics of the
specific asset or liability. The fair values of assets and liabilities that are not traded in an active market are
determined using one or more valuation techniques. These valuation techniques maximise, to the extent
possible, the use of observable market data.
20
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(j)
Fair Value of Assets and Liabilities (continued)
To the extent possible, market information is extracted from either the principal market for the asset or liability
(ie the market with the greatest volume and level of activity for the asset or liability) or, in the absence of such
a market, the most advantageous market available to the entity at the end of the reporting period (ie the market
that maximises the receipts from the sale of the asset or minimises the payments made to transfer the liability,
after taking into account transaction costs and transport costs).
For non-financial assets, the fair value measurement also takes into account a market participant's ability to
use the asset in its highest and best use or to sell it to another market participant that would use the asset in its
highest and best use.
The fair value of liabilities and the entity's own equity instruments (excluding those related to share-based
payment arrangements) may be valued, where there is no observable market price in relation to the transfer of
such financial instruments, by reference to observable market information where such instruments are held as
assets. Where this information is not available, other valuation techniques are adopted and, where significant,
are detailed in the respective note to the financial statements.
Valuation Techniques
In the absence of an active market for an identical asset or liability, the Group selects and uses one or more
valuation techniques to measure the fair value of the asset or liability. The Group selects a valuation technique
that is appropriate in the circumstances and for which sufficient data is available to measure fair value. The
availability of sufficient and relevant data primarily depends on the specific characteristics of the asset or
liability being measured. The valuation techniques selected by the Group are consistent with one or more of
the following valuation approaches:
Market approach: valuation techniques that use prices and other relevant information generated by market
transactions for identical or similar assets or liabilities;
Income approach: valuation techniques that convert estimated future cash flows or income and expenses
into a single discounted present value; and
Cost approach: valuation techniques that reflect the current replacement cost of an asset at its current
service capacity.
Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use when
pricing the asset or liability, including assumptions about risks. When selecting a valuation technique, the
Group gives priority to those techniques that maximise the use of observable inputs and minimise the use of
unobservable inputs. Inputs that are developed using market data (such as publicly available information on
actual transactions) and reflect the assumptions that buyers and sellers would generally use when pricing the
asset or liability are considered observable, whereas inputs for which market data is not available and therefore
are developed using the best information available about such assumptions are considered unobservable.
21
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(j)
Fair Value of Assets and Liabilities (continued)
Fair Value Hierarchy
AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which
categorises fair value measurements into one of three possible levels based on the lowest level that an input
that is significant to the measurement can be categorised into as follows:
Level 1
Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the
entity can access at the measurement date.
Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset
or liability, either directly or indirectly.
Level 2
Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset
or liability, either directly or indirectly
Level 3
Measurements based on unobservable inputs for the asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one or more
valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable
market data. If all significant inputs required to measure fair value are observable, the asset or liability is
included in Level 2. If one or more significant inputs are not based on observable market data, the asset or
liability is included in Level 3.
The Group would change the categorisation within the fair value hierarchy only in the following circumstances:
(i) if a market that was previously considered active (Level 1) became inactive (Level 2 or Level 3) or vice
versa; or
(ii) if significant inputs that were previously unobservable (Level 3) became observable (Level 2) or vice
versa.
When a change in the categorisation occurs, the Group recognises transfers between levels of the fair value
hierarchy (i.e. transfers into and out of each level of the fair value hierarchy) on the date the event or change
in circumstances occurred.
22
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(k)
Investments in Associates
Investments in associate companies are recognised in the financial statements by applying the equity method
of accounting where significant influence is exercised over an investee. Significant influence exists where the
investor has the power to participate in the financial and operating policy decisions of the investees but does
not have control or joint control over those policies. The equity method of accounting recognises the Group’s
share of post-acquisition reserves of its associates.
(l)
Foreign Currency Transactions and Balances
Functional and presentation currency
The functional currency of each of the Group’s entities is measured using the currency of the primary economic
environment in which that entity operates. The consolidated financial statements are presented in Australian
dollars which is the parent entity’s functional and presentation currency. All figures presented in the financial
report have been rounded to the nearest dollar.
Transaction and balances
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the
date of the transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-
monetary items measured at historical cost continue to be carried at the exchange rate at the date of the
transaction. Non-monetary items measured at fair value are reported at the exchange rate at the date when fair
values were determined.
Exchange differences arising on the translation of monetary items are recognised in the statement of profit or
loss and other comprehensive income, except where deferred in equity as a qualifying cash flow or net
investment hedge.
Exchange differences arising on the translation of non-monetary items are recognised directly in equity to the
extent that the gain or loss is directly recognised in equity, otherwise the exchange difference is recognised in
the statement of profit or loss and other comprehensive income.
Controlled entities
The financial results and position of foreign operations whose functional currency is different from the Group’s
presentation currency are translated as follows:
Assets and liabilities are translated at year-end exchange rates prevailing at that reporting date.
Retained earnings are translated at the exchange rates prevailing at the date of the transaction.
Income and expenses are translated at average exchange rates for the period.
Exchange differences arising on translation of foreign operations are transferred directly to the Group’s foreign
currency translation reserve in the statement of financial position. These differences are recognised in the
statement of profit or loss and other comprehensive income in the period in which the operation is disposed.
The functional currency of the subsidiaries incorporated in the Philippines (refer Note 15) is the Philippine
PESO.
23
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(m)
Cash and Cash Equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly
liquid investments with original maturities of three months or less, net of outstanding bank overdrafts.
(n)
Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and
the revenue can be reliably measured.
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the
financial assets.
All revenue is stated net of the amount of goods and service tax (GST).
(o)
Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST
incurred is not recoverable from the Australian Tax Office. In these circumstances, the GST is recognised as
part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the
statement of financial position are shown inclusive of GST.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of
investing and financing activities, which are disclosed as operating cash flows.
(p)
Earnings/(Loss) per share
(i) Basic Earnings/(Loss) per share
Basic earnings/(loss) per share is determined by dividing the operating profit/(loss) after income tax
attributable to members of Pelican Resources Limited by the weighted average number of ordinary
shares outstanding during the financial year.
(ii) Diluted Earnings/(Loss) per share
Diluted earnings/(loss) per share adjusts the amounts used in the determination of basic earnings/(loss)
per share by taking into account unpaid amounts on ordinary shares and any reduction in earnings per
share that will probably arise from the exercise of options outstanding during the financial year.
(q)
Issued Capital
Issued and paid up capital is recognised at the fair value of the consideration received by the Company.
Any transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction of
the share proceeds received.
24
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(r)
Adoption of new and revised standards
Standards and Interpretations issued not yet adopted
The Directors have also reviewed all Standards and Interpretations in issue not yet adopted for the year ended
30 June 2020. As a result of this review the Directors have determined that there is no material impact of the
Standards and Interpretations in issue not yet adopted by the Group and, therefore, no change is necessary to
Group accounting policies.
(s) Critical Accounting Estimates and Judgments
The preparation of financial statements requires management to make judgments, estimates and assumptions
that affect the application of accounting policies and the reported amounts of assets, liabilities, income and
expenses. The directors evaluate estimates and judgments incorporated into the financial statements based on
historical knowledge and best available current information. Estimates assume a reasonable expectation of
future events and are based on current trends and economic data, obtained both externally and within the
Group. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is
revised and in any future periods affected.
In particular, information about significant areas of estimation uncertainty and critical judgments in applying
accounting policies that have the most significant effect on the amount recognised in the financial statements
are described in the following notes:
Note 4 - Income Tax
Note 6 - Trade and Other Receivables
Note 19 - Risk Management Objectives and Policies
Note 22 - Share Based Payments
25
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 2: OTHER INCOME
Interest earned
Gain on sale of SNPDC
Total
Consolidated
2020
$
47,244
554,073
601,317
2019
$
52,539
-
52,539
NOTE 3: EXPENSES AND GAINS/(LOSSES)
Significant Items
Profit/(Loss) before income tax includes the following expenses whose disclosure is relevant in explaining
the financial performance of the Group:
Included in corporate expenses
Accounting and administration fees
Consulting
NOTE 4: INCOME TAX
The prima facie tax on profit/(loss) before income tax
is reconciled to the income tax as follows:
Profit/(Loss) before income tax
Income tax calculated at 30% (2019: 30%)
Add back:
Fair value loss of investment
Provisions
Capital raising costs
Foreign losses movement
Future income tax (charge)/benefits not brought to account
Income tax expense/(benefit)
Deferred tax assets:
Capital raising costs
Provisions
Carried forward tax losses (including foreign tax losses)
Deferred tax liabilities:
Capitalised exploration costs
Accrued income
26
63,521
256,942
86,011
297,186
Consolidated
2020
$
2019
$
21,556
(1,999,405)
6,467
(599,822)
-
(7,565)
(239)
(25,408)
390,000
13,558
(5,196)
(13,772)
26,745
129,709
-
(85,523)
239
7,383
1,521,822
239
18,508
1,495,077
1,529,444
1,513,824
-
1,756
1,756
(690,773)
-
(690,773)
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 4: INCOME TAX (continued)
The deductible temporary differences and tax losses do not expire under current tax legislation. Deferred tax assets
have not been recognised in respect of these items because it is not probable that future taxable profit will be
available against which the Group can utilise the benefits thereof.
NOTE 5: CASH AND CASH EQUIVALENTS
Cash at bank
NOTE 6: TRADE AND OTHER RECEIVABLES
Current
Goods and services tax
Accrued interest
NOTE 7: OTHER FINANCIAL ASSETS
Non Current
Unlisted investments at fair value:
Shares in other entities(i) (fair value through profit or loss)
Consolidated
2020
$
2019
$
2,094,411
2,033,527
2,094,411
2,033,527
7,045
5,852
12,897
11,852
-
11,852
200,000
200,000
200,000
200,000
(i) As at 30 June 2020, the Group held 5,000,000 shares in Cockatoo Iron NL as a result of the sale of the Cockatoo
Island Project. Refer to Note 19.
(ii) On 19 February 2020, the Company entered into an agreement with Carbine Resources Limited (“Carbine”) to
sell its’ shareholding of 5,000,000 shares in Cockatoo Iron NL to Carbine, subject to certain conditions
precedent. Consideration for the sale is 6,666,667 fully paid ordinary shares in Carbine. The conditions
precedent to the sale remaining outstanding.
NOTE 8: TRADE AND OTHER PAYABLES
Trade payables and accrued expenses
Advances/loans – other parties
72,907
1,279
220,426
1,279
74,186
221,705
27
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 9: DEFERRED REVENUE
Deposit on sale of subsidiary
Consolidated
2020
$
2019
$
-
1,410,000
On 25 June 2015, the Company entered into a Memorandum of Understanding with Dynamo Atlantic Limited, a
BVI registered company to sell 100% ownership of Sibuyan Nickel Properties Development Corporation and
received an initial payment of $470,000 and a subsequent payment of $940,000 on completion of due diligence
representing 30% of the purchase price agreed of $4.70 million. On or around 16 October 2018, the parties executed
a revised Share Sale and Assignment of Debt Agreement for a total purchase price of $3.6 million. A portion of the
purchase price is owed to the Company’s joint venture partner All-Acacia Resources Limited. The sale completed
in December 2019 and the full proceeds were recognized upon completion of the sale.
NOTE 10: ISSUED CAPITAL
(a) Issued Capital
408,591,140 Ordinary shares fully paid (2019: 361,923,540)
14,096,796
14,096,796
Consolidated
2020
$
2019
$
(b) Movements in ordinary share capital of the Company:
Date
Details
01/07/2018
30/06/2019
Opening balance
Exercise of options(1)
No. of Shares
$
361,923,540
-
13,630,120
466,676
30/06/2019
Closing balance
361,923,540
14,096,796
01/07/2019
02/07/2019
Opening balance
Exercise of options(1)
361,923,540
46,667,600
14,096,796
-
30/06/2020
Closing balance
408,591,140
14,096,796
(1) On 2 July 2019, the Company issued 46,667,600 shares as a result of the exercise of options at $0.01 expiring
30 June 2020. Funds were received pre-30 June 2020 however the shares were not issued until post-30 June
2020.
28
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 10: ISSUED CAPITAL (continued)
(c) Capital Risk Management
When managing capital, management’s objective is to ensure the Group continues as a going concern as well
as to maintain optimal returns to shareholders and benefits for other stakeholders. Management also aims to
maintain a capital structure that ensures the lowest cost of capital available to the Group.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares, enter into joint ventures or sell assets.
The Group does not have a defined share buy-back plan.
No dividends were paid in 2019 and no dividends will be paid in 2020.
There is no current intention to incur further debt funding on behalf of the Group as on-going expenditure will
be funded via cash reserves or equity.
The Group is not subject to any externally imposed capital requirements.
NOTE 11: RESERVES
(a) Composition
Options reserve
Foreign currency translation reserve
Consolidated
2020
$
2019
$
1,937,083
-
1,937,083
88,250
1,937,083
2,025,333
(b) Movements in options on issue during the last two years were as follows:
Date
Details
No. of
Unlisted Options
Exercise
Price
Expiry
Date
01/07/2018 Opening balance
30/06/2019
Exercised
Expired
85,000,000
(46,667,600)
(3,332,400)
$0.01
$0.01
30/06/2019
30/06/2019
30/06/2019 Closing balance
35,000,000
Date
Details
No. of
Unlisted Options
Exercise
Price
Expiry
Date
01/07/2019 Opening balance
31/12/2019
Expired
35,000,000
(35,000,000)
$0.02
31/12/2019
30/06/2020 Closing balance
-
29
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 11: RESERVES (continued)
(c) Nature and Purpose of Reserves
Options reserve
The options reserve is the value of equity benefits provided to directors, employees and consultants by the
Group as part of their remuneration.
Foreign currency translation reserve
The foreign currency translation reserve represents the foreign exchange gain/loss on the translation of the
subsidiaries from their functional current to the presentation currency.
NOTE 12: NOTES TO THE STATEMENT OF CASH FLOWS
a) Cash and cash equivalents at the end of the financial year as shown in the
Statement of Cash Flows is reconciled to items in the Statement of Financial
Position as follows:
Consolidated
2020
$
2019
$
Cash and cash equivalents (Note 5)
2,094,411
2,033,527
b) Reconciliation of net cash and cash equivalents used in operating activities
to profit/(loss) for the year:
Profit/(Loss) for the year
Exploration and evaluation expenditure written off / impaired
Gain on sale of SNPDC
Fair value loss on equity investment
Movements in assets and liabilities:
(Increase)/Decrease in trade and other receivables
(Increase)/Decrease in other assets
Increase/(Decrease) in trade and other payables
Net cash used in operating activities
21,556
(1,913,882)
14,120
(554,073)
-
-
-
1,300,000
(1,045)
7,510
(169,064)
6,942
(3,857)
50,189
(680,996)
(560,608)
c) Non-cash investing and financing activities
2020
There were no non-cash investing and financing activities during the year ended 30 June 2020.
2019
There were no non-cash investing and financing activities during the year ended 30 June 2019.
30
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 13: KEY MANAGEMENT PERSONNEL
This note is to be read in conjunction with the Remuneration Report which is included in the Directors’ Report.
(a) Compensation of Key Management Personnel
Consolidated
Compensation by category:
Short-term
Post employment
Termination benefit
Share based payment
2020
$
192,000
-
-
-
2019
$
228,000
-
-
-
192,000
228,000
(b) Transactions with Key Management Personnel
There were no transactions with Key Management Personnel for the year ended 30 June 2020.
NOTE 14: REMUNERATION OF AUDITORS
Audit services – HLB Mann Judd
– Overseas auditors
Consolidated
2020
$
24,353
2,739
27,092
2019
$
26,240
2,738
28,978
31
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 15: INTEREST IN SUBSIDIARIES
(a)
Information about Principal Subsidiaries
The consolidated financial statements include the financial statements of Pelican Resources Limited and the
subsidiaries listed in the following table:
Country of
Incorporation
Equity Interest
2020
%
2019
%
Sunrise Exploration Pty Ltd
Sunshine Gold Pty Ltd
Sunpacific Resources Philippines, Inc.
Sunrom Philippines Holdings Corp’n.
Sibuyan Nickel Properties Dev. Corp’n.
AUS
AUS
PHP
PHP
PHP
100
100
100
100
-
100
100
100
100
75
NOTE 16: EARNINGS/(LOSS) PER SHARE
The following reflects the income and data used in the calculations of basic and diluted earnings/(loss) per share:
Consolidated
2020
$
2019
$
21,556
(1,909,870)
-
(4,012)
21,556
(1,913,882)
2020
Number of
Shares
2019
Number of
Shares
408,591,140
408,591,140
361,923,540
361,923,540
Profit/(Loss) before income tax – Group
Adjustments:
Profit/(Loss) attributable to non-controlling interest
Profit/(Loss) used in calculating basic and diluted earnings/(loss) per
share
Weighted average number of ordinary shares used in calculating:
Basic earnings/(loss) per share
Diluted earnings/(loss) per share
NOTE 17: COMMITMENTS FOR EXPENDITURE
The Group has no commitments for expenditure (2019: $nil).
32
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 18: SEGMENT INFORMATION
Business Segments
The directors have considered the requirements of AASB 8 – Operating Segments and the internal reports that are reviewed by the chief operating decision maker (the
Board) in allocating resources and have concluded that at this time there are no separate identifiable business segments.
The operations and assets of Pelican Resources Limited and its controlled entities are employed in exploration activities relating to minerals in Australia and the
Philippines.
Australia
Philippines
Eliminations
Consolidated
2020
$
2019
$
2020
$
2019
$
2020
$
2019
$
2020
$
2019
$
Geographical Segments
Revenue
Other revenues from customers
outside the Group
Total segment revenue
47,244
52,532
554,073
47,244
52,532
554,073
7
7
-
-
-
-
601,317
52,539
601,317
52,539
Results
Segment result
Assets
Segment assets
Liabilities
Segment liabilities
(2,461,586)
(1,667,048)
550,947
(121,814)
1,932,195
(125,020)
21,556
(1,913,882)
4,589,452
4,275,178
145
2,309,779
(950,001)
(950,001)
3,639,596
5,634,956
5,417,362
3,025,777
3,794,391
7,400,793
(9,137,567)
(7,589,646)
74,186
2,836,924
33
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 19: RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group’s principal financial instruments comprise cash and short-term deposits, short-term loans and
investments in unlisted entities.
The main purpose of these financial instruments is to finance the Group’s operations. The Group has various
other financial assets and liabilities such as other receivables and trade payables, which arise directly from its
operations. It is, and has been throughout the entire period under review, the Group’s policy that trading in
financial instruments may be undertaken.
The main risks arising from the Group’s financial instruments is cash flow interest rate risk, foreign exchange
risk and market price risk. Other minor risks are either summarised below or disclosed at Note 10 in the case
of capital risk management. The Board reviews and agrees policies for managing each of these risks.
Cash Flow Interest Rate Risk
The Group’s exposure to the risks of changes in market interest rates relates primarily to the Group’s short-
term deposits with a floating interest rate. These financial assets with variable rates expose the Group to cash
flow interest rate risk. All other financial assets and liabilities in the form of receivables and payables are non-
interest bearing. The Group does not engage in any hedging or derivative transactions to manage interest rate
risk.
The Group has not entered into any hedging activities to cover interest rate risk. In regard to its interest rate
risk, the Group does not have a formal policy in place to mitigate such risks.
The following tables set out the carrying amount by maturity of the Group’s exposure to interest rate risk and
the effective weighted average interest rate for each class of these financial instruments. There were no fixed
interest rate financial assets or liabilities held by the Group (2019: nil).
Non Interest
Bearing
$
Weighted
Average Effective
Interest Rate %
Floating
Interest Rate
$
Total
$
2020
2019
2020
2019
2020
2019
2020
2019
154,411
-
12,897
200,000
367,308
1,033,527
-
11,852
200,000
1,245,379
1.50
1.50
-
-
-
1.75
-
-
1,940,000
1,314,000
-
-
3,254,000
1,000,000
1,054,000
-
-
2,054,000
2,094,411
1,314,000
12,897
200,000
3,621,308
2,033,527
1,054,000
11,852
200,000
3,299,379
74,186
-
74,186
221,705
1,205,219
1,426,924
-
-
-
-
-
-
-
-
-
-
74,186
-
74,186
221,705
1,205,219
1,426,924
Financial Assets
- Cash and cash equivalents
- Deposits held
- Other receivables
- Unlisted investments
Total Financial Assets
Financial Liabilities
- Trade creditors
- Loan – other parties
Total Financial Liabilities
Net Financial Assets / (Liabilities)
293,122
(181,545)
3,254,000
2,054,000
3,547,122
1,872,455
34
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 19: RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Interest Rate Sensitivity
At 30 June 2020, if interest rates had changed by 10% during the entire year with all other variables held constant,
profit/(loss) for the year and equity would have been $4,724 lower/higher, mainly as a result of lower/higher interest
income from cash and cash equivalents.
A sensitivity of 10% has been selected as this is considered reasonable given the current level of both short term
and long term Australian dollar interest rates. A 10% decrease sensitivity would move short term interest rates at
30 June 2020 from around 1.15% to 1.04% (10% increase: 1.26%) representing an 11 basis points shift. This would
represent one increase which is reasonably possible in the current environment with the bias coming from the
Reserve Bank of Australia and confirmed by market expectations that interest rates in Australia are more likely to
move down than up in the coming period.
Based on the sensitivity analysis, only interest revenue from variable rate deposits and cash balances are impacted
resulting in a decrease or increase in overall income.
Liquidity Risk
The Group manages liquidity risk by maintaining sufficient cash reserves and marketable securities and through the
continuous monitoring of budgeted and actual cash flows.
Contracted maturities of liabilities at 30 June
Payables
- less than 30 days
- less than 12 months
Loans other parties
- less than 12 months
- greater than 12 months
Consolidated
2020
$
2019
$
72,907
-
1,279
-
74,186
222,371
-
7,892
1,196,661
1,426,924
In 2019, the amount of $1,196,661 are liabilities associated with assets held for sale which have been disclosed
under current liabilities as the disposal of Sibuyan Nickel Properties Development Corporation was expected within
12 months (note 24).
35
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 19: RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Foreign Exchange Risk
The Group is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to
the Philippine PESO. No sensitivity analysis has been completed as the directors believe any impact would be
immaterial.
Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial
liabilities denominated in a currency that is not the Company’s and subsidiaries’ functional currencies. The risk is
measured using sensitivity analysis.
Market Price Risk
The Group is exposed to equity price risk which arises from equity securities at fair value through profit or loss
(FVTPL).
The Group is exposed to market price risk arising from investments in other companies carried at fair value. At 30
June 2020, if the fair value of investments in other companies had changed by 10% during the entire year with all
other variables held constant, profit/(loss) for the year and equity would have been $20,000 lower/higher. The Group
holds shares in Cockatoo Iron NL which is held at fair value and has provided in full for the investment in Pluton
Resources Limited.
Net Fair Values
For assets and other liabilities the net fair value approximates their carrying value. The Group has no financial
liabilities but does have financial assets that are classified as level 3 under the fair value hierarchy and has no
financial assets where the carrying amount exceeds net fair values at balance date.
The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in the
statement of financial position and in the notes to and forming part of the financial statements.
Financial Instruments
The following table presents the Group’s assets and liabilities measured and recognised at fair value:
30 June 2020
Assets
Equity investments at FVTPL
30 June 2019
Assets
Equity investments at FVTPL
Level 1
$
Level 2
$
Level 3
$
Total
$
-
-
-
-
200,000
200,000
200,000
200,000
Level 1
$
Level 2
$
Level 3
$
Total
$
-
-
200,000
200,000
200,000
200,000
-
-
36
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 19: RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Financial Instruments (continued)
Valuation techniques
The methods and valuation techniques used for the purpose of measuring fair value are unchanged compared to the
previous reporting period.
Fair Value Hierarchy
Level 3
Fair value through FVTPL
Fair value is based on unobservable inputs for the asset or liability.
NOTE 20: EVENTS SUBSEQUENT TO REPORTING PERIOD
Pelican and Cockatoo Iron are parties to a RSA, whereby Pelican is entitled to receive the first $500,000 revenue
per annum which Cockatoo Iron generates from any third party use of the infrastructure on Mining Lease 04/235-I.
The parties have agreed to terminate the RSA for the payment of $225,000 and subject to execution of Deed of
Settlement and Termination (Deed). Execution of the Deed is anticipated prior to 31 August 2020 with payment to
be received prior to 31 December 2020.
No other matters or circumstances have arisen subsequent to the balance date which would significantly affect the
operations of the Group, its operating results or its state of affair in the subsequent financial years.
NOTE 21: CONTINGENT LIABILITIES
As part of its acquisition of Nugold Hill Mines in 2002, the Company has an obligation to rehabilitate the Xanadu
tenements area. The Company has a security bond in place with the Department of Mines, Industry, Regulation and
Safety which is expected to cover the majority of the cost. The Department of Mines, Industry, Regulation and
Safety has not currently insisted on rehabilitating the site as there is the potential for future operations.
Other than as stated above, Pelican Resources Limited has no known material contingent liabilities at the end of the
financial year.
37
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 21: CONTINGENT LIABILITIES
As part of its acquisition of Nugold Hill Mines in 2002, the Company has an obligation to rehabilitate the Xanadu
tenements area. The Company has a security bond in place with the Department of Mines, Industry, Regulation and
Safety which is expected to cover the majority of the cost. The Department of Mines, Industry, Regulation and
Safety has not currently insisted on rehabilitating the site as there is the potential for future operations.
Other than as stated above, Pelican Resources Limited has no known material contingent liabilities at the end of the
financial year.
NOTE 22: SHARE BASED PAYMENTS
The number and weighted average exercise prices of share options are as follows:
Weighted
average exercise
price
2020
$0.02
-
-
$0.02
-
-
-
-
Number of
Options
2020
35,000,000
-
-
(35,000,000)
-
-
-
-
Weighted
average exercise
price
2019
$0.02
-
$0.01
$0.01
-
-
$0.02
$0.02
Number of
Options
2019
85,000,000
-
(46,667,600)
(3,332,400)
-
-
35,000,000
35,000,000
Outstanding at 1 July
Forfeited during the year
Exercised during the year
Expired during the year
Granted during the year
Issued during the year
Outstanding at 30 June
Exercisable at 30 June
38
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 23: PARENT ENTITY DISCLOSURES
(a) Financial Position
Current Assets
Total Assets
Current Liabilities
Total Liabilities
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
(b) Financial Performance
Profit/(Loss) for the year
Other comprehensive income
Total Comprehensive Profit/(Loss)
(c) Guarantees
2020
$
3,439,451
4,589,452
72,908
72,908
2019
$
3,125,177
4,275,178
1,161,705
1,161,705
14,096,796
1,937,083
(11,517,334)
14,096,796
1,937,083
(12,920,405)
4,516,545
3,113,474
1,403,071
-
(1,912,813)
-
1,403,071
(1,913,813)
The parent entity has not entered into any guarantees, in relation to the debts of subsidiaries.
(d) Contingent liabilities
As part of its acquisition of Nugold Hill Mines in 2002, the Company has an obligation to rehabilitate the
Xanadu tenements area. The Company has a security bond in place with the Department of Mines, Industry,
Regulation and Safety which is expected to cover the majority of the cost. The Department of Mines, Industry,
Regulation and Safety has not currently insisted on rehabilitating the site as there is the potential for future
operations.
Other than as stated above, the parent entity has no known material contingent liabilities at the end of the financial
year.
(e) Commitments for expenditure
The parent entity has not entered into any commitments for expenditure as at the end of the financial year.
39
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 24: ASSETS AND LIABILITIES HELD FOR SALE
In June 2015, the Group entered into a Memorandum of Understanding (“MOU”) with Dynamo Atlantic Limited
to sell 100% ownership of Sibuyan Nickel Properties Development Corporation (“SNPDC”) for a purchase price of
$4.7 million. In October 2018, the parties executed a revised Share Sale and Assignment of Debt Agreement for a
total purchase price of $3.6 million. On the 6 December 2019 Pelican Resources Limited (ASX: PEL) (“Pelican” or
“the Company”) announced that settlement on the sale of Sibuyan Nickel Properties Development Corporation
(“SNPDC”), the beneficial owner of the Romblon Project located on Sibuyan Island in the Romblon Province in the
Philippines had been completed (refer Directors’ Report for further detail).
Assets and liabilities held for sale
The major classes of assets and liabilities comprising the operations classified as held for sale at balance date are as
follows:
Cash
Trade and other receivables
Mineral exploration and evaluation expenditure (i)
Assets held for sale
Trade payables
Other payables
Liabilities associated with assets held for sale
(i) Mineral exploration and evaluation expenditure
2019
$
952
6,248
2,302,579
2,309,779
666
1,204,553
1,205,219
The value of the exploration tenements carried forward is dependent upon:
(a) The continuance of the Group’s rights to tenure of the area of interest;
(b) The results of future exploration; and
(c) The recoupment of costs through successful development and exploitation of the areas of interest or
alternatively by their sale.
The carrying value of the exploration expenditure as at 30 June 2019 relates to the Romblon Project. The Group has
entered into a Share Sale and Assignment of Debt Agreement for the sale of the Romblon project for $3.6 million
which exceeds the carrying value at 30 June 2019. (refer to the Directors’ Report - Review of Operations for further
details).
40
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
DIRECTORS’ DECLARATION
1.
In the opinion of the Directors:
a.
the accompanying financial statements, notes and additional disclosures are in accordance with the
Corporations Act 2001 including:
i.
giving a true and fair view of the Group’s financial position as at 30 June 2020 and of its
performance for the year then ended; and
ii.
complying with Accounting Standards and Corporations Regulations 2001; and
b.
the financial statements and notes thereto are in accordance with International Financial Reporting
Standards issued by the International Accounting Standards Board.
2.
This declaration has been made after receiving the declarations required to be made to the Directors in
accordance with Section 295A of the Corporations Act 2001 for the financial year ended 30 June 2020.
This declaration is signed in accordance with a resolution of the Board of Directors.
Alec Pismiris
Director
Dated this 13th day of August, 2020
41
INDEPENDENT AUDITOR’S REPORT
To the members of Pelican Resources Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Pelican Resources Limited (“the Company”) and its
controlled entities (“the Group”), which comprises the consolidated statement of financial position
as at 30 June 2020, the consolidated statement of profit or loss and other comprehensive income,
the consolidated statement of changes in equity and the consolidated statement of cash flows for
the year then ended, and notes to the financial statements, including a summary of significant
accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the
Corporations Act 2001, including:
a) giving a true and fair view of the Group’s financial position as at 30 June 2020 and of its
financial performance for the year then ended; and
b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report. We are independent of the Group in accordance with the
auditor independence requirements of the Corporations Act 2001 and the ethical requirements of
the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (“the Code”) that are relevant to our audit of the financial report in
Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the financial report of the current period. We have determined that there are no
matters to be communicated in our report.
Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the
information included in the Group’s annual report for the year ended 30 June 2020 but does not
include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.
42
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives
a true and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001 and for such internal control as the directors determine is necessary to enable the preparation
of the financial report that gives a true and fair view and is free from material misstatement, whether
due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group
to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the directors either intend to liquidate the Group
or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with Australian Auditing Standards will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
-
Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
- Obtain an understanding of internal control relevant to the audit 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 Group’s internal control.
-
-
-
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial report or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and
events in a manner that achieves fair presentation.
43
We communicate with the directors regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included within the directors’ report for the year ended
30 June 2020.
In our opinion, the Remuneration Report of Pelican Resources Limited for the year ended 30 June
2020 complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted
in accordance with Australian Auditing Standards
HLB Mann Judd
Chartered Accountants
Perth, Western Australia
13 August 2020
N G Neill
Partner
44
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the consolidated financial report of Pelican Resources Limited for
the year ended 30 June 2020, I declare that, to the best of my knowledge and belief, there have
been no contraventions of:
(a)
the auditor independence requirements as set out in the Corporations Act 2001 in relation to
the audit; and
(b)
any applicable code of professional conduct in relation to the audit.
Perth, Western Australia
13 August 2020
N G Neill
Partner
45
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
ASX ADDITIONAL INFORMATION
QUOTED SECURITIES
ORDINARY FULLY PAID SHARES
(i)
DISTRIBUTION OF SHAREHOLDERS AS AT 5 AUGUST 2020:
SPREAD
OF HOLDINGS
NO. OF
HOLDERS
1 – 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001+
33
33
24
84
164
338
NO. OF
SHARES
11,524
80,012
172,461
3,982,123
404,345,020
408,591,140
PERCENTAGE OF
ISSUED CAPITAL %
0.00
0.02
0.04
0.97
98.96
100.00
The number of shareholdings held in less than marketable parcels is 123 (based on the last sale price
of $0.017 on 30 October 2018).
(ii)
TOP 20 HOLDERS OF ORDINARY FULLY PAID SHARES:
The names of the twenty largest shareholders of ordinary fully paid shares are listed below:
NAME
1
2
3
4
5
6
7
Snowball 3 Pty Ltd
Mr Kenneth Gatchalian
Topaze Enterprises Pty Ltd
Zero Nominees Pty Ltd
Monslit Pty Ltd
Mr Joe Leuzzi & Mrs Sally Leuzzi
DF Lynton-Brown Pty Ltd
Alitime Nominees Pty Ltd
Gallant (WA) Pty Ltd
ACP Investments Pty Ltd
Darlot Investments Pty Ltd
8
9
10
11
12 Mr Geoffrey John Fennell & Mrs Carmel Ann Fennell
GAB Superannuation Fund Pty Ltd
GAB Superannuation Fund Pty Ltd
13
14
15 Mr Jose Mari Moraza & Mr Antonio Moraza
16
17
18
19
20
ACP Investments Pty Ltd
Citicorp Nominees Pty Limited
Energy-Saving Technology Pty Ltd
RFID Systems Pty Ltd
Cityscan Pty Ltd
Total
46
NO. OF
ORDINARY
SHARES
HELD
PERCENTAGE
OF ISSUED
SHARES %
59,193,981
25,699,591
21,026,696
19,593,650
18,235,896
16,000,000
15,932,885
13,033,565
12,094,137
12,000,000
10,007,809
8,257,806
7,873,785
7,683,233
7,272,445
6,000,000
5,366,603
5,313,513
5,313,512
5,177,757
281,076,864
14.49%
6.29%
5.15%
4.80%
4.46%
3.92%
3.90%
3.19%
2.96%
2.94%
2.45%
2.02%
1.93%
1.88%
1.78%
1.47%
1.31%
1.30%
1.30%
1.27%
68.79%
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
ASX ADDITIONAL INFORMATION (continued)
QUOTED SECURITIES (continued)
(a)
ORDINARY FULLY PAID SHARES (continued)
(iii)
VOTING RIGHTS
Article 15 of the Constitution specify that on a show of hands every member present in person, by
attorney or by proxy shall have:
(a)
(b)
for every fully paid share held by him one vote; and
for every share which is not fully paid a fraction of the vote equal to the amount paid up on
the share over the nominal value of the shares.
(iv)
SUBSTANTIAL SHAREHOLDERS
Name
Antonio Torresan Group
Mr Kenneth Gatchalian
Topaze Enterprises Pty Ltd
Ordinary Shares
No.
77,429,877
25,699,591
21,026,696
124,156,164
%
18.95
6.29
5.15
30.39
(b)
UNQUOTED SECURITIES
(i)
UNLISTED OPTIONS ON ISSUE
The Company has no options on issue.
(ii)
PERFORMANCE RIGHTS
The Company has no performance rights on issue.
47
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
CORPORATE GOVERNANCE STATEMENT
Pelican Resources Limited and the Board are committed to achieving and demonstrating the highest standard of
corporate governance. Pelican Resources Limited has modelled its corporate governance policies against the
Corporate Governance Principles and Recommendations (4th edition) published by the ASX Corporate Governance
Council.
The 2020 corporate governance statement was approved by the board on 11 August 2020 and is current as at 11
August 2020. A description of the Group’s current corporate governance practices is set out in the Group’s
Corporate Governance Statement which can be viewed at www.pelicanresources.com.au/investor-centre/corporate-
governance/.
48