Tribune Resources Limited
Annual Report 2020

Plain-text annual report

Tribune Resources Limited ABN 11 009 341 539 Annual Report - 30 June 2020 Tribune Resources Limited Contents 30 June 2020 Corporate directory Directors' report Auditor's independence declaration Statement of profit or loss and other comprehensive income Statement of financial position Statement of changes in equity Statement of cash flows Notes to the financial statements Directors' declaration Independent auditor's report to the members of Tribune Resources Limited Shareholder information 2 3 33 34 36 37 38 39 81 82 86 1 Tribune Resources Limited Corporate directory 30 June 2020 Directors Otakar Demis - Non-Executive Chairman Anthony Billis - Executive Director, Managing Director and Chief Executive Officer Gordon Sklenka - Non-Executive Director Company secretaries Otakar Demis Stephen Buckley Notice of annual general meeting The annual general meeting of Tribune Resources Limited will be held at: IBIS Styles Hotel 45 Egan Street Kalgoorlie WA 6430 on 27 November 2020 at 9.00am Registered office Principal place of business Share register Auditor Bankers Suite G1, 49 Melville Parade South Perth WA 6151 Tel: +61 (8) 9474 2113 Fax: +61 (8) 9367 9386 Suite G1, 49 Melville Parade South Perth WA 6151 Correspondence address: PO Box 307 West Perth WA 6872 Advanced Share Registry Services Limited 110 Stirling Highway Nedlands WA 6009 Tel: +61 (8) 9389 8033 Fax: +61 (8) 9262 3723 RSM Australia Partners Level 32, Exchange Tower 2 The Esplanade Perth WA 6000 Australia and New Zealand Banking Group Limited ('ANZ') 77 St George's Terrace Perth WA 6000 Stock exchange listing Tribune Resources Limited shares are listed on the Australian Securities Exchange (ASX code: TBR) Website www.tribune.com.au Corporate Governance Statement The Company’s directors and management are committed to conducting the Group’s business in an ethical manner and in accordance with the highest standards of corporate governance. The Company has adopted and substantially complies with the ASX Corporate Governance Principles and Recommendations (3rd Edition) (‘Recommendations’) to the extent appropriate to the size and nature of the Group’s operations. The Company has prepared a Corporate Governance Statement which sets out the corporate governance practices that were in operation throughout the financial year for the Company, identifies any Recommendations that have not been followed, and provides reasons for not following such Recommendations. The Company’s Corporate Governance Statement and policies, approved at the same time as the Annual Report, can be found on the Company's website: http://www.tribune.com.au/Corporate-Governance 2 Tribune Resources Limited Directors' report 30 June 2020 The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group') consisting of Tribune Resources Limited (referred to hereafter as the 'Company', 'parent entity' or 'Tribune') and the entities it controlled at the end of, or during, the year ended 30 June 2020. Directors The following persons were directors of Tribune Resources Limited during the whole of the financial year and up to the date of this report, unless otherwise stated: Otakar Demis - Non-Executive Chairman Anthony Billis - Executive Director, Managing Director and Chief Executive Officer Gordon Sklenka - Non-Executive Director Principal activities The principal activities of the Group during the year were exploration, development and production activities at the Group’s East Kundana Joint Venture tenements ('EKJV'). Exploration projects that were advanced during the year include the Diwalwal Gold Project, Philippines and Japa Gold Project, Ghana. Dividends Dividends paid during the financial year were as follows: Dividend of 20 cents per ordinary share paid to shareholders on 14 September 2018. Dividend of 10 cents per ordinary share by controlled entity Rand Mining Limited and paid to Rand shareholders on 14 September 2018. Special dividend of $3.50 per ordinary share paid to shareholders on 10 October 2018. Special dividend of $1.25 per ordinary share by controlled entity Rand Mining Limited and paid to Rand shareholders on 12 October 2018. Dividend of 20 cents per ordinary share paid to shareholders on 25 October 2019. Dividend of 10 cents per ordinary share by controlled entity Rand Mining Limited and paid to shareholders on 22 October 2019. Consolidated 2020 $ 2019 $ - 10,000,605 - 6,014,848 - 175,010,580 - 11,100,604 75,185,594 - 6,014,848 - 17,115,452 266,211,627 Other than the above, there were no dividends recommended or declared during the current financial year. Review of operations The profit for the Group after providing for income tax and non-controlling interest amounted to $48,211,437 (30 June 2019: $34,651,424). The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has not significantly impacted the Group up to 30 June 2020, it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided. East Kundana Joint Venture The East Kundana Joint Venture ('EKJV') is located 25km west north west of Kalgoorlie and 47km north east of Coolgardie. The EKJV is between Rand Mining Limited ('Rand') (12.25%), Tribune Resources Limited ('Tribune') (36.75%) and Gilt- Edged Mining Pty. Limited ('GEM') (51%). On 1 March 2014, GEM became a wholly owned subsidiary of Northern Star Resources Ltd ('Northern Star'). 3 Tribune Resources Limited Directors' report 30 June 2020 Note: The Joint Venture deposits are located within the red shaded area. Other deposits as indicated on this map do not belong to either Tribune Resources or the Joint Venture. KUNDANA PROJECT Location Map 4 Tribune Resources Limited Directors' report 30 June 2020 EAST KUNDANA JOINT VENTURE Deposit Locations Note: The Joint Venture deposits are located within the red shaded area. Other deposits as indicated on this map do not belong to either Tribune Resources or the Joint Venture. Mining Raleigh During the year ended 30 June 2020, 127,931 tonnes of ore were mined from Raleigh at 5.79 grammes per tonne ('g/t') and containing 23,814 ounces ('oz') of gold. The majority of production was from ore extracted from stopes 123,267 tonnes at 5.94g/t for 23,527oz, with very little ore from development. Tribune’s entitlement to the ore extracted was 47,974 tonnes and 8,930oz, compared to 97,842 tonnes and 27,504oz the previous year. 5 Tribune Resources Limited Directors' report 30 June 2020 Raleigh mine production for the year was seriously affected by a large seismic event that occurred on 14 January 2020 following the firing of stoping panels. The seismic event caused substantial damage to the 6000 to 5949 levels of the mine with significant rehabilitation required to re-establish access. The southern mining area was deemed unsafe and has been excluded from all future mining activity. The event caused no injury as there were no personnel underground at the time of firing. As a result mining operations were suspended in April 2020 with the mine placed on care and maintenance. A detailed study to assess the economics of mining recommencement at Raleigh will be conducted after the life of mine ('LOM') mine planning process is completed by EKJV Management ('EKJVM') in October 2020. Year on year Raleigh mine production is summarised in the following table: Mine Claimed Production Year 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 Tribune's entitlement Mined (t) Raleigh Grade (g/t) Gold (oz) 239,700 234,400 308,512 339,660 323,182 244,799 179,553 87,948 58,362 155,560 182,860 278,478 260,911 127,931 47,974 16.6 11.9 12.6 13.4 13.4 14.8 14.2 15.7 11.5 9.5 8.7 7.7 8.7 5.7 5.7 127,700 89,800 124,962 146,670 139,060 116,921 81,930 44,313 21,706 47,302 50,957 68,822 73,344 23,814 8,930 The sequence of stoping and mine development in the FY2020 Raleigh LOM plan is shown in the long section below, where grey represents all stoping and development completed at 30 June 2019. The areas outlined in red were removed from the production schedule after the seismic event in January. The green stopes within the gold borders represent the stopes mined up until the mine was placed on care and maintenance in April 2020. The extension of mining beyond 2020 depends on the results of the detailed study into the economics of a new Raleigh LOM Plan. 6 Tribune Resources Limited Directors' report 30 June 2020 Fig – Raleigh LOM Long Section Showing 2020 Stopes mined and Areas excluded Rubicon/Hornet/Pegasus ('RHP') During the year ended 30 June 2020, a total of 954,188 tonnes of ore at 5.09 g/t containing 156,158oz of gold were mined from the Rubicon, Hornet and Pegasus ('RHP') ore bodies. Stoping accounted for 604,058 tonnes at 6.02g/t for 116,983oz, whilst ore drive development contributed 350,130 tonnes at 3.48g/t for 39,175oz. Tribune’s entitlement to the ore extracted was 350,664 tonnes and 57,388oz, compared to 394,118 tonnes and 76,537oz the previous year. Year on year RHP Mine production is summarised in the following table: Mine Claimed Production Year 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 Tribune's entitlement Rubicon/Hornet/Pegasus Grade (g/t) Mined (t) Gold (oz) 78,229 266,113 314,685 605,988 761,483 843,340 996,445 1,072,429 954,188 350,664 9.6 10.3 11.3 9.5 7.3 7.1 6.2 6.0 5.1 5.1 24,103 88,666 114,454 184,302 178,931 192,487 198,276 208,264 156,158 57,388 The sequence of stoping and mine development in the current RHP 2020 LOM plan is shown in the figure below, where grey represents all stoping and development completed at 30 June 2019. The extension of mining at RHP beyond mid 2027 depends on the results of the current exploration programme. 7 Tribune Resources Limited Directors' report 30 June 2020 Figure – RHP LOM Long Section showing yearly stoping and development schedule. Ore stockpiles As of 30 June 2020, Tribune had 276,327 tonnes of ore stockpiled at a grade of 4.49 g/t which contained 39,859oz of gold. Stockpile Raleigh HG Raleigh LG RHP HG RHP LG Tribune Stockpiles Tribune Ore Stockpiles Grade Ounces Tonnes 16,682 5,990 215,342 38,313 6.10 1.71 4.92 1.77 3,272 329 34,081 2,177 276,327 4.49 39,859 Tribune ore stockpiles grew by 107,131 tonnes and 18,862oz in the 12 months since 30 June 2019. Processing Tribune share of ore processed in FY2020 was 276,532 tonnes at 5.04 g/t with 94.35% gold recovery for production of 42,264 fine oz. Since January 2013, the majority of EKJV ore was processed at the Kanowna Belle Plant located near Kalgoorlie under an Ore Treatment Agreement ('OTA'). Excess ore was periodically processed by local Toll Milling providers in campaigns managed by EKJV Management. In October 2019, Northern Star Resources ('NST') issued notice that it would treat only 35,000 tonnes of EKJV ore for the four quarters post 1 January 2020. NST maintained that this met their minimum obligation under the OTA. NST also advised that EKJV mined ore was to be split to allow processing in proportion to the EKJV partners interest, 51% GEM (an NST subsidiary) and 49% (Rand and Tribune Group ('R&T group')). As a result of the above Tribune Ore Stockpiles grew by 107,131 tonnes and 18,862 oz as the R&T group were unable to secure suitable toll milling arrangements to treat its’ share of the EKJV mined ore. The search for toll milling capacity to handle the EKJV mine production and the Tribune stockpile inventory continued at year end. As at 30 June 2020 Tribune has in place toll milling contracts for 386,000 tonnes. During FY2020 ore processing was carried out in 8 campaigns at Kanowna Belle and 3 campaigns at Greenfields, managed by EKJVM. The R&T group managed 2 campaigns at Golden Mile Milling's ('GMM') Lakewood Mill during the year. 8 Tribune Resources Limited Directors' report 30 June 2020 Tribune's share of ore processed is outlined in the table below: Campaign Location NST Kanowna Belle FMR Greenfields GMM Lakewood Total Tonnes Milled Tribune Share of Ore Processed Head Grade Au (g/t) Recovery (%) Fine Au Produced (oz) 197,384 33,113 46,035 276,532 5.66 5.08 2.33 5.04 94.70 94.32 90.72 34,040 5,097 3,127 94.35 42,264 The shortfall in available processing capacity saw a considerable reduction in Tribune’s share of the gold bullion produced compared to the 89,875 ounces produced the previous year. Historical gold production from the EKJV is summarised below: FY2020 FY2019 FY2018 FY2017 FY2016 FY2015 FY2014 FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 Total Exploration Rand and Tribune Group Bullion Gold (oz) Silver (oz) Tribune Share Gold (oz) 56,352 119,834 94,751 109,451 103,747 97,420 79,907 95,554 61,864 64,716 77,624 32,478 59,638 49,335 25,599 8,335 20,567 14,690 20,728 20,647 21,027 18,854 17,248 15,841 8,639 12,019 4,649 8,048 6,640 3,951 42,264 89,875 71,063 82,088 77,810 73,065 59,930 71,665 46,398 48,537 58,218 24,358 44,728 37,001 19,199 1,128,270 201,883 846,199 EKJV Exploration within the EKJV mining complex during the reporting period was focussed on the Falcon Corridor, Startrek Prospect and Golden Hind Resource. Diamond core drilling from underground platforms targeting Falcon and Startrek totalled 107 holes for 42,155 metres. A program of 14 reverse circulation percussion holes for 516 metres was completed at Golden Hind. 9 Tribune Resources Limited Directors' report 30 June 2020 Overview of EKJV Projects showing main mineralisation corridors The Falcon Corridor is located mid-way between the Raleigh-Golden Hind trend and the Hornet-Rubicon-Pegasus trend of gold deposits. Gold mineralisation occurs within laminated and brecciated quartz veins of varied orientation constrained within a sheared metasedimentary sequence. Falcon has to date been defined within a 1,500 metre strike length corridor down to a maximum depth of 750 metres below surface and modelled as a series of eleven stacked lodes. Current Inferred Mineral Resource for Falcon is 1.87 million tonnes grading 4.5g/t for 0.27 million ounces of gold. Future work will focus on infill and extensional drilling of this Resource. Plan view of Falcon Lodes 10 Tribune Resources Limited Directors' report 30 June 2020 Falcon long section looking east showing modelled lodes and drill hole pierce points. Startrek is located to the east of the Hornet-Rubicon-Pegasus trend. Moderate grade mineralisation contained within narrow, irregular quartz veins has been intersected over one kilometre of strike in broad spaced diamond drilling from platforms within the HRP mine. Future work will focus on infill drilling around more robust intersections and testing for extensions to the system in the area adjacent to Hornet. Golden Hind is located approximately two kilometres south of the Raleigh Pit. Mineralisation is analogous to Raleigh with a well-developed Raleigh Main Vein equivalent within a lower grade halo. RC drilling of 14 holes for 516 metres at Golden Hind was completed to upgrade the mineralisation model for a section of the Resource for which open pit mining is being considered. Current open pit Inferred Mineral Resource for Golden Hind is 0.12 million tonnes grading 6g/t for 23,000 ounces with underground Inferred Mineral Resource of 0.44 million tonnes grading 4.5g/t for 64,000 ounces gold. Golden Hind Resource Model Long Projection Details for EKJV drilling have been reported in the EKJV Quarterly Exploration Reports released to ASX on 22 October 2019, 30 January 2020, 30 April 2020 and 23 July 2020. West Kundana Joint Venture (Tribune's interest 24.5%) There has been minimal activity as the bulk of the Exploration Budget is committed to approved and proposed EKJV exploration programmes. 11 Tribune Resources Limited Directors' report 30 June 2020 Seven Mile Hill (Tribune's interest 50%) A campaign of Aircore and Reverse Circulation drilling was conducted at the Seven Mile Hill project during the reporting period. A total of 338 aircore holes for 16,356 metres and six RC holes for 910 metres were completed. The aircore program tested conceptual gold targets along the eastern and western margins of the Kurrawang Formation. As reported in the Tribune Resources ASX Announcement of 30 October 2019 a number of holes returned narrow intersections greater than 0.5g/t within the Kurrawang Formation but no significant mineralisation was intersected within the adjacent target sequence. The RC drilling tested depth extensions of the gold mineralisation at the White Lake and Kopai Ridge prospects towards the southern end of the project area. Mineralisation at White Lake and Kopai Ridge is similar to that encountered in the Binduli mine camp to the north. Primary mineralisation is related to sheeted quartz-sulphide veins hosted within felsic volcanic and volcanoclastic units and in adjacent porphyritic intrusions. Secondary supergene mineralisation occurs within overlying palaeochannel sequences and in the weathered bedrock units. All holes drilled in the RC program intersected broad low tenor mineralisation from both supergene and primary zones beneath the palaeochannel, as reported in the Tribune Resources ASX Announcements of 30 October 2019 and 30 January 2020. High grade intersections are confirmed to be controlled by thin, shallow dipping, sheeted quartz-sulphide veins. Further reconnaissance work is proposed for these prospects testing extensions to this broad gold system. Tribune Resources Ghana Limited (Tribune's interest 100%) The Japa Project is located in the Western Region of Ghana, approximately 110 km South West of Kumasi and 50 km North of Tarkwa, centred about the village of Gyapa in the Wassa Amenfi East District. Mining Lease PL2/310 covers a 26.2 square kilometre area over part of the Akropong Belt, an offshoot of the highly endowed Ashanti Belt, within the Birimian Supergroup that hosts many of the most significant, multi-million-ounce Ashanti type orogenic lode-gold deposits of West Africa. Tribune Resources (Ghana) Limited acquired its interest in the Japa Project in 2005. Initial work by Tribune expanded on surface geochemical sampling conducted by previous explorers which was followed by drill testing of identified gold anomalies. Successive phases of drilling, amounting to over 98,000 metres completed to date, has defined extensive gold mineralisation within numerous prospects across the Mining Lease. During the reporting period Tribune completed a major Reverse Circulation and Diamond Core drilling program at Japa totalling 34,769 metres in 193 holes. This drilling campaign was focussed on the Adiembra deposit with a smaller program also conducted along the Japa-Dadieso Trend. 12 Tribune Resources Limited Directors' report 30 June 2020 Drilling operations at Adiembra, February 2020 Adiembra is a very broad mineralised system currently defined over 1400 metres long, up to 700 metres wide and to a maximum depth of 270 metres below surface. Within this large system, mineralisation is concentrated in two distinct lodes, Adiembra West and Adiembra Central. Adiembra West has a strike length of over 1250 metres and ranges from 40 to 80 metres in width whilst Adiembra Central has a strike length of over 1400 metres and ranges from 60 to 180 metres in width. Both lodes are open along strike and at depth. The recent drilling campaign saw a total of 189 holes drilled for 34,115 metres including 6,907 metres of diamond core and 27,208 metres of RC percussion. The purpose of this program was to infill the existing drill coverage, test for extensions to the mineralisation both laterally and to depth and confirm the structural controls, orientation and tenor of the gold mineralisation to enable a maiden Mineral Resource estimation to be undertaken. 13 Tribune Resources Limited Directors' report 30 June 2020 Oblique 3D view showing Adiembra modelled mineralisation and lode haloes Four diamond core holes totalling 654 metres were completed along the Japa-Dadieso trend. Gold mineralisation at Japa- Dadieso has been identified from broad spaced RC drilling along greater than three kilometres of strike, with the trend being open both along strike and at depth. This program was the first diamond core drilling testing the Japa-Dadieso mineralisation and confirmed that gold is predominantly hosted within a NE-SW trending, heavily quartz veined, strongly altered, porphyritic, felsic dyke. Full details of all drilling from this campaign have been reported in Tribune Resources ASX Announcements of 24 April 2020 and 28 July 2020. Subsequent to the end of the reporting period the Adiembra Mineral Resource estimation was completed and reported in the Tribune Resources ASX Announcement of 10 August 2020. The following table summarises the Resource Estimate. Type Open Pit Mineral Resource Estimate for the Adiembra Deposit - July 2020 Resource Classification Cut-Off Grade (g/t) Tonnes* Gold Grade (g/t) Ounces* Indicated Inferred 0.5 4,640,000 0.5 16,350,000 2.6 2.7 390,000 1,420,000 Total Adiembra 0.5 20,990,000 2.7 1,810,000 * Dry metric tonnes rounded to nearest 10,000. Ounces rounded to nearest 10,000. Discrepancies may occur due to rounding. Future work will involve further Resource definition and extension drilling at Adiembra and Japa-Dadieso Trend and exploration across high priority targets within the mining lease to advance the Japa Project towards a potential mining operation. 14 Tribune Resources Limited Directors' report 30 June 2020 Plan of Japa Mining Lease showing major gold deposits Adiembra and Japa-Dadieso Trend and priority exploration areas Diwalwal Gold Project (Philippines) The Diwalwal Gold Project is located approximately 120 km northeast of Davao City on Mindanao Island in the Philippines. Tribune has relevant interest in the 729 Area and Upper Ulip subdivisions of the Diwalwal Mineral Reservation. The region is located east of the Philippine fault system in the Southern Pacific Cordillera, which hosts a north striking band of epithermal gold deposits. The Diwalwal Project area geology is dominated by Cretaceous to Paleogene volcanics consisting of andesitic to basaltic lavas, pyroclastics and volcaniclastics. The volcanic units have been intruded by Miocene diorite. These units are unconformably overlain by a series of younger sediments. The gold mineralisation at Diwalwal is classified as low-sulphidation epithermal type with gold-bearing quartz veins hosted in extensional fractures developed predominantly within the lava sequences. The 729 Area and Upper Ulip contain mineralised veins with the most significant located to date being Balite and Buenas Tinago, located within 729 Area. Both of these veins have been exploited by small-scale mine operations via numerous access tunnels and adits for several decades. 15 Tribune Resources Limited Directors' report 30 June 2020 Topographic map of Diwalwal Mineral Reservation. Tribune has relevant interest in the 729 Area and Upper Ulip subdivisions. Tribune has the rights to the Balite mineralisation within 729 Area below an elevation of 600 metres above sea level. Access to Balite is by the Victory Tunnel and refurbishment of the tunnel to establish diamond drill positions and explore the vein system further has been the principal focus of activities since acquiring the project. Significant progress in access refurbishment has been made and drilling is scheduled to commence in August 2020. The Company plans to initially drill around 4,000 metres of diamond core through the Balite vein system to confirm past drilling results and close up the existing drill spacing which will then allow a Mineral Resource estimation to be undertaken. Step out diamond core drilling to explore the vein system to the east and at depth from new development drives will follow the initial drill phase. Image of Modelled Balite Vein showing Victory Tunnel access and existing drilling. 16 Tribune Resources Limited Directors' report 30 June 2020 Refurbishment of the Victory Tunnel Whilst refurbishment of the Victory Tunnel access continued, exploration work was focussed on the Paraiso Prospect within the Upper Ulip Area, as shown in the accompanying plan. The Upper Ulip Area contains several low sulphidation style epithermal veins hosted by porphyritic andesite volcanics in similar structural setting and orientation to the Buenas Tinago and Balite veins within the 729 Area immediately to the south. Figure 2. Oxidized quartz vein breccia in abandoned tunnel in Calabirahan 17 Tribune Resources Limited Directors' report 30 June 2020 Geology team mapping small scale miner tunnel in Upper Ulip 50cm quartz breccia vein dipping NE, perpendicular to Lantawan Vein Work during the year involved geological and structural mapping with a focus on orientation and characterisation of quartz vein exposures, grid soil sampling and rock chip sampling of outcrop and artisanal mine workings. The soil geochemistry grid extended the coverage of an historical but incomplete soil sampling program by previous operators with analyses of soil and rock samples focused on gold and an accompanying 36 element suite for pathfinder element correlation. This campaign has identified a strong, coherent gold and pathfinder element anomaly at Lantawan and a more subtle gold anomaly at Rockstar which are likely to be further evaluated by diamond core drilling. 18 Tribune Resources Limited Directors' report 30 June 2020 Geologic map of Paraiso showing soil and rock chip sampling locations and grade ranges Paraiso Prospect Grid Soil Gold Geochemistry. Warm colours indicate soil anomalies. Community development program at Diwalwal Social and livelihood development programs in the affected communities within the project area are supported through various projects determined in consultation with the community and local government units. An ambulance was donated to the local Diwalwal community as were upgrades, repairs and provision of medical supplies to the Barangay medical centre, schools and community halls. Livelihood projects that have been supported over the past year to enable self-sustaining benefits to the community included small engine skills training and supply of tool kits, hog raising project for the Diwalwal women’s group and donation of materials for the Upper Ulip youth tribal group for construction of a Tilapia fish farm to support education opportunities. With the onset of COVID-19 in 2020, at the request of the Philippines government, funds from the community development program were reallocated to supply foods and medical items to combat the spread of the virus and support community members affected by the quarantine restrictions. Food relief provisions were provided to over two thousand households including donation of over four tonnes of rice, mutli vitamins, hygiene kits including face masks, hand sanitizer, disinfectant and thermal scanners, food supplies and hand washing stations were donated to the community and front line medical personnel. 19 Tribune Resources Limited Directors' report 30 June 2020 Images – donation of Ambulance and distribution of food provisions for COVID-19 support program Corporate Share buy-back programme On 5 February 2020, the Company announced it would undertake an on-market buy-back of ordinary shares up to a maximum of 4,900,000 ordinary fully paid shares. During the year, the Company purchased and cancelled 3,034,946 shares for $18,615,615 excluding brokerage and GST under the buy-back facility. The issued capital at the end of the year was 52,468,077 ordinary fully paid shares. EKJV litigation The legal proceedings against the Northern Star Resources Group of Companies previously announced by the Company are continuing. The proceedings are being vigorously prosecuted by the Company and they have been listed for a trial of liability issues (i.e. excluding quantification of damages) in the Supreme Court of Western Australia in mid-October 2020. The Northern Star entities have discontinued their counterclaim for the payment of an increase to the fixed rate for processing ore under the Ore Treatment Agreement. Resources and Reserves At 30 June 2020, Tribune’s Mineral Resources amounted to 25.8 million tonnes grading 3.1g/t gold for 2.6 million ounces of gold. Comparison with the Mineral Resources as at 30 June 2019 shows a significant increase in Resource tonnes and contained ounces due principally to the addition of the 1.81 million ounce Adiembra Resource. 20 Tribune Resources Limited Directors' report 30 June 2020 The overall increase of approximately 1.78 million ounces is reflected by the following variations: ● ● ● ● ● ● ● ● Addition of 21 million tonne, 1.81 million ounce Adiembra Resource. Reduction of 29Koz from Australian assets (EKJV and stockpiles). Increase in EKJV Resource gold price from A$1,750/oz to A$2,250/oz. Decrease in EKJV Resource grade from 6g/t to 5.1g/t. Mining depletion at Rubicon, Hornet, Pegasus and Raleigh. Sterilisation of areas of Raleigh due to geotechnical instability. Reflects substantial drilling at Pegasus, Pode, Hera, Falcon. Increase in stockpile contained ounces from 13,000oz to 40,000oz. Deposit EKJV and Stockpiles Adiembra Total (Mt) 30 June 2020 Au (g/t) Au (Moz) (Mt) 30 June 2019 Au (g/t) Au (Moz) Mineral Resources Comparison 4.81 20.99 25.80 5.1 2.7 3.1 0.785 1.810 2.595 4.21 - 4.21 6.0 - 6.0 0.814 - 0.814 At 30 June 2020, Tribune’s Ore Reserves amounted to 2.0 million tonnes grading 4.8g/t gold for 309,000 ounces of gold. Comparison with the Ore Reserves as at 30 June 2019 shows a decrease of approximately 101,000 ounces in Ore Reserves reflected by the following variations: ● ● ● ● ● ● Increase in EKJV Reserve gold price from A$1,500/oz to A$1,750/oz. Decrease in EKJV Reserve grade from 5.5g/t to 4.8g/t. Revised cut-off grades to reflect current operational parameters. Mining depletion at Rubicon, Hornet, Pegasus and Raleigh. Sterilisation of areas of Raleigh due to geotechnical instability. Increase in stockpile contained ounces from 13,000oz to 40,000oz. Deposit (Mt) 30 June 2020 Au (g/t) Au (Moz) (Mt) 30 June 2019 Au (g/t) Au (Moz) Ore Reserves Comparison EKJV and Stockpiles 2.00 4.8 0.309 2.31 5.5 0.410 21 Tribune Resources Limited Directors' report 30 June 2020 Mineral Resources at 30 June 2020 EKJV SURFACE Hornet Golden Hind Pegasus Subtotal - EKJV Surface EKJV UNDERGROUND Drake Falcon Golden Hind Hornet Pegasus Pode Rubicon Raleigh Falcon North Subtotal - EKJV Underground STOCKPILES TOTAL AUSTRALIA ADIEMBRA, JAPA PROJECT, GHANA MEASURED INDICATED INFERRED Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces (000's) (000's) (000's) (000's) (000's) (000's) (g/t) (g/t) (g/t) 42 14 56 18 516 505 473 337 267 5.7 5.1 5.6 3.5 4.3 6.3 4.7 4.2 7.5 8 2 10 2 71 102 72 46 64 2115 5.2 357 6 44 1 51 60 686 163 110 62 184 93 160 44 1562 3.8 6.0 3.1 5.7 2.6 4.5 4.5 5.6 4.1 3.8 3.3 4.8 4.3 4.4 1 8 0.1 9 5 99 24 20 8 23 10 25 6 219 2171 5.3 367 1612 4.4 228 83 151 230 162 120 747 276 1023 4.3 6.8 6.2 4.7 9.1 6.2 4.5 5.8 11 33 46 24 35 150 40 190 TOTAL RESOURCES Tonnes Grade Ounces (000's) (g/t) (000's) 48 44 16 107 78 686 163 708 718 887 592 547 44 4424 276 4807 5.5 6.0 4.9 5.6 2.8 4.5 4.5 4.5 6.2 4.9 4.2 7.1 4.3 5.1 4.5 5.1 8 8 2 19 7 99 24 102 144 140 80 124 6 726 40 785 4640 2.6 390 16350 2.7 1420 20990 2.7 1810 TOTAL 1023 5.8 190 6811 3.5 757 17962 2.9 1648 25796 3.1 2595 22 Tribune Resources Limited Directors' report 30 June 2020 Ore Reserves at 30 June 2020 EKJV SURFACE Hornet Subtotal - EKJV Surface EKJV UNDERGROUND Hornet Pegasus Pode Rubicon Raleigh Subtotal - EKJV Underground STOCKPILES TOTAL Tonnes (000's) PROVED Grade (g/t) Ounces (000's) Tonnes (000's) PROBABLE Grade (g/t) Ounces (000's) TOTAL RESERVES Grade (g/t) Tonnes (000's) Ounces (000's) 27 149 229 52 22 480 276 756 4.6 5.8 4.8 5.7 6.2 5.2 4.5 5.0 4 28 35 10 4 81 40 121 54 54 131 350 271 234 206 1192 1246 4.4 4.4 3.6 5.8 4.1 3.7 5.5 4.7 4.7 8 8 15 66 35 28 36 180 188 54 54 159 499 500 285 228 1671 276 2002 4.4 4.4 3.8 5.8 4.4 4.1 5.5 4.9 4.5 4.8 8 8 19 93 71 37 41 261 40 309 Notes to tables: ● ● ● Resources and Reserves as reported are 100% Tribune Resources Ltd. Resources are inclusive of Reserves. EKJV Resources and Reserves are estimated by Northern Star Resources Ltd and were reported on 13 August 2020 in Tribune ASX Announcement “EKJV Summary Resources and Reserves Update”. Gold price used for the EKJV Resource Estimation is AUD$2,250/oz. Gold price used for the EKJV Reserve Estimation is AUD$1,750/oz. Adiembra Resource Estimate completed by Mining Plus Pty Ltd and reported on 10 August 2020 in Tribune ASX Announcement “Tribune Delivers Maiden Adiembra Gold Resource”. Gold price used for the Adiembra Resource Estimation is AUD$3,000/oz. Discrepancies may occur due to rounding. ● ● ● ● ● 23 Tribune Resources Limited Directors' report 30 June 2020 Mineral Resource and Ore Reserve Governance and Internal Controls The Manager of the EKJV prepares the EKJV Mineral Resources and Ore Reserves on an annual basis in accordance with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Competent Persons named by the EKJV Manager are Members or Fellows of the Australasian Institute of Mining and Metallurgy and/or the Australian Institute of Geoscientists and qualify as Competent Persons as defined in the JORC Code. The Company is represented on the EKJV Technical Committee which reviews the Mineral Resource and Ore Reserve estimates and procedures undertaken. The Company’s Competent Persons and consultants audit internal reviews by the EKJV Manager and external reviews by independent consultants of Mineral Resource and Ore Reserve estimates and procedures. These audits have not identified any material issues. Tribune Resources engaged independent mining consultancy Mining Plus Pty Ltd to conduct the Mineral Resource estimation for the Adiembra Gold Deposit. This estimate has been reviewed by the Company’s Competent Persons. Competent Person Statements The information in the Company’s 2020 Annual Report that relates to Mineral Resources and Ore Reserves is based on information and supporting documentation prepared by the Competent Persons referred to in the ASX announcements detailed in the footnotes to the Minerals Resources and Ore Reserves Tables (Tables) and fairly and accurately represents that information. The Mineral Resources and Ore Reserves statement included in this Annual Report, as well as the information provided by the Competent Persons referred to in the relevant ASX announcements detailed in the footnotes to the Tables, have been reviewed and approved by Mr Robert Henderson. Exploration results presented in this report have been prepared in accordance with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) by Mr Robert Henderson. Mr Henderson is a Member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists, is a self-employed consulting geologist to Tribune Resources and has sufficient relevant experience in the activities undertaken and styles of mineralisation being reported to qualify as a Competent Person under the JORC Code. Mr Henderson consents to the inclusion in this report of the information compiled by him in the form and context in which it appears. Significant changes in the state of affairs The Company announced an on market buy-back up to a maximum 4,900,000 shares. The full announcement can be found in the ASX announcement dated 5 February 2020. Rand disposed of its remaining interest in Tribune Resources Ltd in full accord with the Court Orders. Full receipt of the funds associated with the final settlement have been received. On 24 January 2020, an interlocutory injunction by the Company was sought in the Supreme Court of Western Australia in relation to the proceedings against Northern Star Resources Ltd. The Northern Star Group of Companies consented to the making of orders permitting Tribune to stockpile its share of surplus ore on the EKJV tenements and offered undertakings in relation to the mechanism for the construction of ore stockpiles. The full details can be found in the ASX announcement dated 28 January 2020. In February 2020 EKJVM recommended that Raleigh Underground Mine be placed on care and maintenance as a result of a significant seismic response following the firing of stoping panels. The full details can be found in the ASX announcement dated 3 February 2020. EKJVM is currently preparing an updated LOM. There were no other significant changes in the state of affairs of the Group during the financial year. Matters subsequent to the end of the financial year The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has not significantly impacted the Group up to 30 June 2020, it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided. On 20 August 2020, The Northern Star entities discontinued their counterclaim for the payment of an increase to the fixed rate for processing ore under the Ore Treatment Agreement. 24 Tribune Resources Limited Directors' report 30 June 2020 No other matter or circumstance has arisen since 30 June 2020 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years. Likely developments and expected results of operations The Group intends to continue its exploration, development and production activities on its existing projects and to acquire further suitable projects for exploration as opportunities arise. Environmental regulation The Group is subject to and compliant with all aspects of environmental regulation of its exploration and mining activities. The directors are not aware of any environmental law that is not being complied with. Greenhouse gas and energy data reporting requirements The Group is subject to the reporting requirements of both the Energy Efficiency Opportunities Act 2006 and the National Greenhouse and Energy Reporting Act 2007. The Energy Efficiency Opportunities Act 2006 requires the Group to assess its energy usages, including the identification, investigation and evaluation of energy saving opportunities, and to report publicly on the assessments undertaken, including what action the Group intends to take as a result. Due to this Act, the Group, via its participation in the EKJV has registered with the Department of Resources, Energy and Tourism as a participant entity and reports the results from its assessments. The National Greenhouse and Energy Reporting Act 2007 require the Group, via its participation in the EKJV, to report its annual greenhouse gas emissions and energy use. The Group has previously implemented systems and processes for the collection and calculation of data. Information on directors Name: Title: Experience and expertise: Otakar Demis Non-Executive Chairman and Joint Company Secretary Otakar is a private investor and businessman with several years’ experience as a director of the Company. Non-Executive Chairman and Joint Company Secretary of Rand Mining Limited (ASX: RND) Former directorships (last 3 years): None Interests in shares: Interests in options: 12,000 ordinary shares held directly None Other current directorships: Name: Title: Experience and expertise: Other current directorships: Former directorships (last 3 years): None Interests in shares: Interests in options: Name: Title: Qualifications: Experience and expertise: Other current directorships: Former directorships (last 3 years): None None Interests in shares: Interests in options: None Anthony Billis Executive Director and Managing Director Anthony has over 30 years’ experience in gold exploration within the mining industry in Western Australia. He has been involved in the exploration and development of the Kundana project for over 25 years. Executive Director of Rand Mining Limited (ASX: RND) 17,091,136 ordinary shares (17,351 held directly and 17,073,785 held indirectly) None Gordon Sklenka Non-Executive Director B.Comm Gordon has worked in Chartered Accounting, Stockbroking and Corporate Advisory in Perth, Sydney and Toronto and has in excess of 25 years’ experience in corporate finance in the resources and technology industries predominantly focusing on capital raisings, initial public offerings ('IPOs'), acquisitions and project finance. Non-Executive Director of Rand Mining Limited (ASX: RND) 'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships in all other types of entities, unless otherwise stated. 25 Tribune Resources Limited Directors' report 30 June 2020 'Former directorships (in the last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes directorships in all other types of entities, unless otherwise stated. Company secretaries Details of Mr Otakar Demis as company secretary can be found in the 'Information of directors' section above. Stephen Buckley (GAICD) is joint company secretary. Stephen has 37 years' experience in financial markets having worked in both Australia and New Zealand. He is the Managing Director of Company Secretary Solutions Pty Ltd, a company specialising in providing company secretarial, corporate governance and corporate advisory services. Meetings of directors The number of meetings of the Company's Board of Directors ('the Board') held during the year ended 30 June 2020, and the number of meetings attended by each director were: O Demis A Billis G Sklenka Full Board Attended Held 5 3 5 5 5 5 Held: represents the number of meetings held during the time the director held office. The function of the Nomination and Remuneration Committee was undertaken by the Full Board. Remuneration report (audited) The remuneration report, which has been audited, outlines the director and key management personnel remuneration arrangements for the Group and the Company, in accordance with the requirements of the Corporations Act 2001 and its Regulations. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including all directors. The remuneration report is set out under the following main headings: ● ● ● ● ● ● Principles used to determine the nature and amount of remuneration Details of remuneration Service agreements Share-based compensation Additional information Additional disclosures relating to key management personnel Principles used to determine the nature and amount of remuneration The objective of the Group and Company's executive reward framework is to ensure reward for performance is competitive and appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic objectives and the creation of value for shareholders, and conforms with the market best practice for delivery of reward. The Board of Directors ('the Board') ensures that executive reward satisfies the following key criteria for good reward governance practices: ● ● ● ● competitiveness and reasonableness; acceptability to shareholders; performance linkage / alignment of executive compensation; and transparency. The Board is responsible for determining and reviewing remuneration arrangements for its directors and executives. The performance of the Group and Company depends on the quality of its directors and executives. The remuneration philosophy is to attract, motivate and retain high performance and high quality personnel. The Board has structured an executive remuneration framework that is market competitive and complementary to the reward strategy of the Group and Company. 26 Tribune Resources Limited Directors' report 30 June 2020 The reward framework is designed to align executive reward to shareholders' interests. The Board has considered that it should seek to enhance shareholders' interests by: ● ● having economic profit as a core component of plan design; and attracting and retaining high calibre executives. Additionally, the reward framework should seek to enhance executives' interests by: ● ● ● rewarding capability and experience; reflecting competitive reward for contribution to growth in shareholder wealth; and providing a clear structure for earning rewards. In accordance with best practice corporate governance, the structure of non-executive directors and executive directors remuneration are separate. Non-executive directors remuneration Fees and payments to non-executive directors reflect the demands which are made on, and the responsibilities of, the directors. Non-executive directors' fees and payments are reviewed annually by the Board. The Board may seek the advice of independent remuneration consultants to ensure non-executive directors' fees and payments are appropriate and in line with the market (refer ‘use of remuneration consultants’ below). There are no termination or retirement benefits for non- executive directors other than statutory superannuation. ASX listing rules requires that the aggregate non-executive directors remuneration shall be determined periodically by a general meeting. The most recent determination was at the Annual General Meeting held on 30 November 2005, where the shareholders approved an aggregate remuneration of $320,000 for Tribune Resources Limited and Rand Mining Limited. Executive remuneration The Group and Company aims to reward executives with a level and mix of remuneration based on their position and responsibility, which is both fixed and variable. The executive remuneration and reward framework has four components: ● ● ● ● base pay and non-monetary benefits; short-term performance incentives; share-based payments; and other remuneration such as superannuation and long service leave. The combination of these comprises the executive's total remuneration. Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, are reviewed annually by the Board, based on individual and business unit performance, the overall performance of the Group and comparable market remunerations. Executives can receive their fixed remuneration in the form of cash or other fringe benefits (for example motor vehicle benefits) where it does not create any additional costs to the Group and adds additional value for the executive. The short-term incentives ('STI') program is designed to align the targets of the business units with the targets of those executives in charge of meeting those targets. STI payments are granted to executives based on specific annual targets and key performance indicators ('KPI') being achieved. KPI’s include profit contribution, customer satisfaction, leadership contribution and product management. The long-term incentives ('LTI') currently consists of long service leave. Group performance and link to remuneration The directors' remuneration levels are not directly dependent upon the Group and Company's performance or any other performance conditions. However, practically, whether shareholders vote for or against an increase in the aggregate director remuneration will depend upon, amongst other things, how the Group and Company have performed. Use of remuneration consultants During the financial year ended 30 June 2020, the Company did not engage remuneration consultants, to review its existing remuneration policies and provide recommendations on how to improve both the STI and LTI program. 27 Tribune Resources Limited Directors' report 30 June 2020 Voting and comments made at the Company's 2019 Annual General Meeting ('AGM') At the last AGM 99.85% of the shareholders voted to adopt the remuneration report for the year ended 30 June 2019. The Company did not receive any specific feedback at the AGM regarding its remuneration practices. Details of remuneration The key management personnel of the Group consisted of the following directors of Tribune Resources Limited: ● ● ● Otakar Demis - Non-Executive Chairman Anthony Billis - Executive Director, Managing Director and Chief Executive Officer Gordon Sklenka - Non-Executive Director And the following person: ● Rodney Johns - Chief Operating Officer Amounts of remuneration Details of the remuneration of the directors and other key management personnel (defined as those who have the authority and responsibility for planning, directing and controlling the major activities of the Group) of Tribune Resources Limited are set out in the following tables. Short-term benefits Post- employment benefits Long-term benefits Share- based payments Cash salary and fees $ Bonus $ Non- Leave Super- monetary* annuation benefits $ $ $ Equity- settled $ Total $ 80,000 60,000 - - - - 7,600 - 183,375 - 281,295 17,421 400,556 723,931 - - - 281,295 - 25,021 - - - - - - - 87,600 60,000 - 482,091 - 400,556 - 1,030,247 2020 Non-Executive Directors: O Demis G Sklenka Executive Directors: A Billis* Other Key Management Personnel: R Johns * Includes car and housing plus applicable fringe benefits tax payable on benefits 28 Tribune Resources Limited Directors' report 30 June 2020 2019 Non-Executive Directors: O Demis G Sklenka*** Executive Directors: A Billis* Other Key Management Personnel: J Andrews** Short-term benefits Post- employment benefits Long-term benefits Share- based payments Cash salary and fees $ Bonus $ Non- Leave Super- monetary* annuation benefits $ $ $ Equity- settled $ Total $ 80,000 231,016 - - - - 7,600 - 174,981 - 183,261 25,019 60,570 546,567 - - - 183,261 8,661 41,280 - - - - - - - 87,600 231,016 - 383,261 - - 69,231 771,108 Includes car and housing plus applicable fringe benefits tax payable on benefits Remuneration is from 1 July 2018 to date of resignation as key management personnel * ** *** Directors fees for the period were $60,000. Mr Sklenka was paid an additional $171,016 in consulting fees. The proportion of remuneration linked to performance and the fixed proportion are as follows: Name Non-Executive Directors: O Demis G Sklenka Executive Directors: A Billis Other Key Management Personnel: R Johns J Andrews Fixed remuneration 2019 2020 At risk - STI At risk - LTI 2020 2019 2020 2019 100% 100% 100% 100% 100% 100% 100% - - 100% - - - - - - - - - - - - - - - - - - - - Service agreements Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details of these agreements are as follows: Name: Title: Term of agreement: Details: Anthony Billis Executive Director, Managing Director and Chief Executive Officer Ongoing Base salary, inclusive of superannuation, for the year ended 30 June 2020 of $200,796 to be reviewed annually by the Board. During the year Mr Billis received an additional $281,295 in fringe benefits which was approved by the Board. Key management personnel have no entitlement to termination payments in the event of removal for misconduct. There is no provision for any other termination payments. Share-based compensation Issue of shares There were no shares issued to directors and other key management personnel as part of compensation during the year ended 30 June 2020. 29 Tribune Resources Limited Directors' report 30 June 2020 Options There were no options over ordinary shares issued to directors and other key management personnel as part of compensation that were outstanding as at 30 June 2020. There were no options over ordinary shares granted to or vested by directors and other key management personnel as part of compensation during the year ended 30 June 2020. Additional information The earnings of the Group for the five years to 30 June 2020 are summarised below: 2020 $ 2019 $ 2018 $ 2017 $ 2016 $ Sales revenue EBITDA EBIT Profit after income tax 179,367,328 364,248,049 179,690,800 136,238,700 117,680,175 94,031,327 155,490,176 95,640,396 79,775,760 74,614,105 75,107,334 135,000,505 79,691,440 63,824,925 57,882,049 47,353,849 72,264,057 54,424,492 43,688,873 39,233,490 The factors that are considered to affect total shareholders return ('TSR') are summarised below: 2020 2019 2018 2017 2016 Share price at financial year end ($) Total dividends declared (cents per share) Basic earnings per share (cents per share) Diluted earnings per share (cents per share) 7.29 30.00 87.19 87.19 5.45 505.00 65.23 65.23 6.35 - 84.17 84.17 7.28 20.00 68.93 68.93 7.52 - 61.40 61.40 Additional disclosures relating to key management personnel Shareholding The number of shares in the Company held during the financial year by each director and other members of key management personnel of the Group, including their personally related parties, is set out below: Balance at Received as part of the start of the year remuneration Additions Ordinary shares O Demis A Billis G Sklenka 12,000 17,091,136 - 17,103,136 - - - - Disposals/ other Balance at the end of the year - - - - - 12,000 - 17,091,136 - - - 17,103,136 Option holding There were no options over ordinary shares in the Company held during the financial year by any director and other members of key management personnel of the Group, including their personally related parties. Loans to key management personnel and their related parties There were no loans to or from key management personnel and their related parties at the current reporting date. 30 Tribune Resources Limited Directors' report 30 June 2020 Other transactions with key management personnel and their related parties The following transactions occurred with related parties: Payment for other expenses: Payment of royalties to Lake Grace Exploration Pty Ltd via the East Kundana Joint Venture* Payment for executive accommodation fees to Lake Grace Exploration Pty Ltd* Reimbursement of operating expenses to Iron Resources Liberia Ltd** Sale of wholly-owned subsidiary: Sale of Melville Parade Pty Ltd to Lake Grace Exploration Pty Ltd* * ** An entity in which Anthony Billis is a director From this total, $8,872 is still to be paid to Iron Resources Liberia Ltd. All transactions were made on normal commercial terms and conditions and at market rates. This concludes the remuneration report, which has been audited. Consolidated 2020 $ 62,451 54,000 413,973 4,000,000 Shares under option There were no unissued ordinary shares of Tribune Resources Limited under option outstanding at the date of this report. Shares issued on the exercise of options There were no ordinary shares of Tribune Resources Limited issued on the exercise of options during the year ended 30 June 2020 and up to the date of this report. Indemnity and insurance of officers The Company has indemnified the directors and executives of the Company for costs incurred, in their capacity as a director or executive, for which they may be held personally liable, except where there is a lack of good faith. During the financial year, the Company paid a premium in respect of a contract to insure the directors and executives of the Company against liabilities that may arise from an officers’ position with the exception of insolvency, conduct involving a wilful breach in relation to the Company, or a contravention of section 182 or 183 of the Corporations Act 2001, an entity that is involved in any joint venture or, partnership or enterprise carried on in common with the Company, outside directorships, any outside entity or non-profit outside entity or any vehicle or entity established to conduct such joint venture partnership or enterprise. The contract of insurance prohibits disclosure of the nature of liability and the amount of the premium. Indemnity and insurance of auditor The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the Company or any related entity against a liability incurred by the auditor. During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the Company or any related entity. Proceedings on behalf of the Company No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings. Non-audit services Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the auditor are outlined in note 34 to the financial statements. The directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another person or firm on the auditor's behalf), is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. 31 Tribune Resources Limited Directors' report 30 June 2020 ● The directors are of the opinion that the services as disclosed in note 34 to the financial statements do not compromise the external auditor's independence requirements of the Corporations Act 2001 for the following reasons: ● all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity of the auditor; and none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional and Ethical Standards Board, including reviewing or auditing the auditor's own work, acting in a management or decision-making capacity for the Company, acting as advocate for the Company or jointly sharing economic risks and rewards. Officers of the Company who are former partners of RSM Australia Partners There are no officers of the Company who are former partners of RSM Australia Partners. 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 immediately after this directors' report. This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001. On behalf of the directors ___________________________ Anthony Billis Director 29 September 2020 Perth 32 AUDITOR’S INDEPENDENCE DECLARATION As lead auditor for the audit of the financial report of Tribune 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: (i) (ii) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and any applicable code of professional conduct in relation to the audit. RSM AUSTRALIA PARTNERS Perth, WA Dated: 29 September 2020 ALASDAIR WHYTE Partner 33Tribune Resources Limited Statement of profit or loss and other comprehensive income For the year ended 30 June 2020 Revenue from continuing operations 5 180,414,449 364,539,813 Share of losses of associates accounted for using the equity method Interest revenue calculated using the effective interest method - 198,483 (647,299) 182,255 Consolidated Note 2020 $ 2019 $ Expenses Changes in inventories Employee benefits expense Management fees Depreciation and amortisation expense Gain on/(impairment of) assets Net loss on disposal of property, plant and equipment Administration expenses Exploration and evaluation expense Mining expenses Processing expenses Royalty expenses Foreign currency losses Finance costs 29,549,039 (2,454,111) (1,670,016) (18,739,015) 408,288 (877,702) (6,470,960) (14,394,247) (66,499,684) (19,409,128) (3,536,128) (275,264) (262,842) (62,834,352) (1,963,800) (1,947,029) (20,258,024) (2,210,052) (183,706) (6,837,090) (32,569,281) (66,972,288) (27,322,660) (5,419,387) (121,394) (283,923) 6 6 6 Profit before income tax expense from continuing operations 75,981,162 135,151,783 Income tax expense 7 (27,689,545) (62,687,779) Profit after income tax expense from continuing operations 48,291,617 72,464,004 Loss after income tax benefit from discontinued operations 8 (937,768) (199,947) Profit after income tax (expense)/benefit for the year 47,353,849 72,264,057 Other comprehensive income Items that will not be reclassified subsequently to profit or loss Gain/(loss) on revaluation of land and buildings, net of tax Items that may be reclassified subsequently to profit or loss Foreign currency translation Other comprehensive income for the year, net of tax 877,942 (97,797) (122,598) (209,855) 755,344 (307,652) Total comprehensive income for the year 48,109,193 71,956,405 Profit for the year is attributable to: Non-controlling interest Owners of Tribune Resources Limited 28 (857,588) 37,612,633 48,211,437 34,651,424 47,353,849 72,264,057 The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 34 Tribune Resources Limited Statement of profit or loss and other comprehensive income For the year ended 30 June 2020 Total comprehensive income for the year is attributable to: Continuing operations Discontinued operations Non-controlling interest Continuing operations Discontinued operations Owners of Tribune Resources Limited Consolidated Note 2020 $ 2019 $ (857,588) 37,567,440 - (857,588) 37,567,440 - 49,904,549 34,588,912 (199,947) 48,966,781 34,388,965 (937,768) 48,109,193 71,956,405 Cents Cents Earnings per share for profit from continuing operations attributable to the owners of Tribune Resources Limited Basic earnings per share Diluted earnings per share Earnings per share for loss from discontinued operations attributable to the owners of Tribune Resources Limited Basic earnings per share Diluted earnings per share 44 44 44 44 Earnings per share for profit attributable to the owners of Tribune Resources Limited Basic earnings per share Diluted earnings per share 44 44 88.89 88.89 65.61 65.61 (1.70) (1.70) (0.38) (0.38) 87.19 87.19 65.23 65.23 The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 35 Tribune Resources Limited Statement of financial position As at 30 June 2020 Assets Current assets Cash and cash equivalents Trade and other receivables Inventories Total current assets Consolidated Note 2020 $ 2019 $ 9 10 11 2,216,722 14,022,938 59,159,401 5,388,616 169,859,252 140,310,215 186,098,912 204,858,232 Non-current assets Financial assets at fair value through profit or loss Property, plant and equipment Right-of-use assets Exploration and evaluation Mine development Deferred tax Total non-current assets 12 13 14 15 16 17 670,958 9,748,226 4,159,222 395,486 48,162,060 55,952,730 - 4,836,259 47,824,345 44,128,064 7,362,261 118,614,806 112,674,800 8,049,995 Total assets Liabilities Current liabilities Trade and other payables Lease liabilities Income tax Provisions Total current liabilities Non-current liabilities Lease liabilities Deferred tax Provisions Total non-current liabilities Total liabilities Net assets Equity Contributed equity Treasury shares Reserves Retained profits Equity attributable to the owners of Tribune Resources Limited Non-controlling interest Total equity 304,713,718 317,533,032 18 19 20 21 12,620,071 19,127,919 4,464,748 3,649,621 5,799,889 36,796,507 111,974 23,066,418 59,686,021 181,710 22 23 24 3,095,369 2,033,656 12,227,858 10,835,635 1,093,183 16,495,230 13,962,474 1,172,003 39,561,648 73,648,495 265,152,070 243,884,537 25 26 27 28 29 58,200,026 73,080,910 (2,270,000) - (742,321) (954,065) 159,912,541 121,607,621 217,158,502 191,676,210 47,993,568 52,208,327 265,152,070 243,884,537 The above statement of financial position should be read in conjunction with the accompanying notes 36 Tribune Resources Limited Statement of changes in equity For the year ended 30 June 2020 Consolidated Contributed equity $ Treasury shares $ Reserves $ Retained profits $ Non- controlling interest $ Total equity $ Balance at 1 July 2018 11,059,778 (10,749,765) (479,862) 223,509,035 59,727,121 283,066,307 Profit after income tax expense for the year Other comprehensive income for the year, net of tax Total comprehensive income for the year Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs (note 25) Proceeds of sale of Tribune shares by Rand Sale of Tribune shares by Rand Transfers Dividends received Dividends paid (note 30) - - - 25,025,000 45,475,897 (8,479,765) - - - - - - - - 8,479,765 - - - - 34,651,424 37,612,633 72,264,057 (262,459) - (45,193) (307,652) (262,459) 34,651,424 37,567,440 71,956,405 - - - 25,025,000 - - - - - (235,576) - 84,572,555 - (220,889,817) - - 235,576 45,475,897 - - - 84,572,555 (45,321,810) (266,211,627) Balance at 30 June 2019 73,080,910 (2,270,000) (742,321) 121,607,621 52,208,327 243,884,537 Consolidated Contributed equity $ Treasury shares $ Reserves $ Retained profits $ Non- controlling interest $ Total equity $ Balance at 1 July 2019 73,080,910 (2,270,000) (742,321) 121,607,621 52,208,327 243,884,537 Profit/(loss) after income tax expense for the year Other comprehensive income for the year, net of tax Total comprehensive income for the year Transactions with owners in their capacity as owners: Proceeds of sale of Tribune shares by Rand Share buy-back (note 25) Sale of Tribune shares by Rand Transfers on sale of subsidiary Dividends received Dividends paid (note 30) - - - - - - - 48,211,437 (857,588) 47,353,849 755,344 - - 755,344 755,344 48,211,437 (857,588) 48,109,193 6,004,731 (18,615,615) (2,270,000) - - - - - 2,270,000 - - - - - - (967,088) - - - - - 967,088 2,884,676 (13,758,281) - - - - - (3,357,171) 6,004,731 (18,615,615) - - 2,884,676 (17,115,452) Balance at 30 June 2020 58,200,026 - (954,065) 159,912,541 47,993,568 265,152,070 The above statement of changes in equity should be read in conjunction with the accompanying notes 37 Tribune Resources Limited Statement of cash flows For the year ended 30 June 2020 Cash flows from operating activities Receipts from customers (inclusive of GST) Payments to suppliers and employees (inclusive of GST) Interest received Interest and other finance costs paid Income taxes paid Consolidated Note 2020 $ 2019 $ 180,003,426 364,769,724 (106,537,407) (112,854,814) 73,466,019 251,914,910 114,416 (293,398) (24,093,629) 167,698 (257,384) (58,637,636) Net cash from operating activities 43 14,738,697 227,642,299 Cash flows from investing activities Payments for property, plant and equipment Payments for exploration and evaluation Payments for mine development Proceeds from disposal of subsidiary, net of cash received Proceeds from disposal of property, plant and equipment Net cash used in investing activities Cash flows from financing activities Repayment of borrowings Net dividends paid Repayment of lease liabilities Proceeds from share sale Payments for share buy-backs Net cash used in financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Effects of exchange rate changes on cash and cash equivalents (6,883,901) (13,618,683) (14,752,357) 3,872,870 55,317 (11,782,677) (8,547,409) (18,426,636) - 233,239 (31,326,754) (38,523,483) - (3,932,700) (14,230,777) (181,639,072) (4,937,970) - 9,230,498 42,448,952 - (18,615,613) (28,553,862) (143,122,820) (45,141,919) 45,995,996 59,159,401 13,163,405 - 5,456 Cash and cash equivalents at the end of the financial year 9 14,022,938 59,159,401 The above statement of cash flows should be read in conjunction with the accompanying notes 38 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 1. General information The financial statements cover Tribune Resources Limited as a Group consisting of Tribune Resources Limited ('Company', 'parent entity' or 'Tribune') and the entities it controlled at the end of, or during, the year (referred to in these financial statements as the 'Group'). The financial statements are presented in Australian dollars, which is Tribune Resources Limited's functional and presentation currency. Tribune Resources Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is: Suite G1, 49 Melville Parade South Perth WA 6151 A description of the nature of the Group's operations and its principal activities are included in the directors' report, which is not part of the financial statements. The financial statements were authorised for issue, in accordance with a resolution of directors, on 29 September 2020. The directors have the power to amend and reissue the financial statements. Note 2. Significant accounting policies The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. New or amended Accounting Standards and Interpretations adopted The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the Group during the financial year ended 30 June 2020. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. The following Accounting Standards and Interpretations are most relevant to the Group: AASB 16 Leases The Group has adopted AASB 16 from 1 July 2019. The standard replaces AASB 117 'Leases' and for lessees eliminates the classifications of operating leases and finance leases. Except for short-term leases and leases of low-value assets, right-of-use assets and corresponding lease liabilities are recognised in the statement of financial position. Straight-line operating lease expense recognition is replaced with a depreciation charge for the right-of-use assets (included in operating costs) and an interest expense on the recognised lease liabilities (included in finance costs). In the earlier periods of the lease, the expenses associated with the lease under AASB 16 will be higher when compared to lease expenses under AASB 117. However, EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) results improve as the operating expense is now replaced by interest expense and depreciation in profit or loss. For classification within the statement of cash flows, the interest portion is disclosed in operating activities and the principal portion of the lease payments are separately disclosed in financing activities. For lessor accounting, the standard does not substantially change how a lessor accounts for leases. 39 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 2. Significant accounting policies (continued) Impact of adoption AASB 16 was adopted using the modified retrospective approach and as such the comparatives have not been restated. The impact of adoption on opening retained profits as at 1 July 2019 was as follows: Operating lease commitments as at 1 July 2019 (AASB 117) Finance lease commitments as at 1 July 2019 (AASB 117) Operating lease commitments discount based on the weighted average incremental borrowing rate of 5% (AASB 16) Tenement commitment not recognised as right-of-use asset Finance lease not re-assessed to be within scope of AASB 16 Right-of-use assets (AASB 16) Lease liabilities - current (AASB 16) Reduction in opening retained profits as at 1 July 2019 1 July 2019 $ 4,249,780 5,683,277 (6,240) (4,249,780) (5,478,869) 198,168 (198,168) - Practical expedients applied In adopting AASB 16, the Group has used the following practical expedients permitted by the standard: ● applied a single discount rate to a portfolio of leases with reasonably similar characteristics; ● accounted for operating leases with a remaining lease term of less than 12 months as at 1 July 2019 as short-term leases; excluded initial direct costs for the measurement of the right-of-use asset at the date of initial application; used hindsight in determining the lease term where the contract contains options to extend or terminate the lease; and for contracts entered into before the transition date, the Group chose not to reassess these arrangements that were previously identified as not containing a lease, under the requirements of AASB 16 (and therefore for those arrangements, the accounting has not changed). ● ● ● Basis of preparation These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board ('IASB'). Historical cost convention The financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation of financial assets at fair value through profit or loss, investment properties, certain classes of property, plant and equipment and derivative financial instruments. Critical accounting estimates The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 3. Parent entity information In accordance with the Corporations Act 2001, these financial statements present the results of the Group only. Supplementary information about the parent entity is disclosed in note 38. Principles of consolidation The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Tribune as at 30 June 2020 and the results of all subsidiaries for the year then ended. 40 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 2. Significant accounting policies (continued) Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the Group 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 to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. Intercompany transactions, balances and unrealised gains on transactions between entities in the Group are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent. Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit or loss and other comprehensive income, statement of financial position and statement of changes in equity of the Group. Losses incurred by the Group are attributed to the non-controlling interest in full, even if that results in a deficit balance. Where the Group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non- controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The Group recognises the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss. Operating segments Operating segments are presented using the 'management approach', where the information presented is on the same basis as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the allocation of resources to operating segments and assessing their performance. Foreign currency translation The financial statements are presented in Australian dollars, which is Tribune Resources Limited's functional and presentation currency. Foreign currency transactions Foreign currency transactions are translated into the Group's functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss. Foreign operations The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting date. The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences are recognised in other comprehensive income through the foreign currency reserve in equity. The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of. Revenue recognition The Group recognises revenue as follows: Revenue from contracts with customers Revenue is recognised at an amount that reflects the consideration to which the Group is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the Group: identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised. 41 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 2. Significant accounting policies (continued) Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount' method. The measurement of variable consideration is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty associated with the variable consideration is subsequently resolved. Amounts received that are subject to the constraining principle are recognised as a refund liability. Sale of gold Sale of gold revenue is recognised at the point of sale, which is where the customer has taken delivery of the goods, the risks and rewards are transferred to the customer and there is a valid sales contract. Interest Interest revenue is recognised as interest accrues using the effective interest method. Other revenue Other revenue is recognised when it is received or when the right to receive payment is established. Income tax The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary differences, unused tax losses and the adjustment recognised for prior periods, where applicable. Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for: ● When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor taxable profits; or When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. ● Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable that there are future taxable profits available to recover the asset. Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on either the same taxable entity or different taxable entities which intend to settle simultaneously. Current and non-current classification Assets and liabilities are presented in the statement of financial position based on current and non-current classification. An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the Group's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current. A liability is classified as current when: it is either expected to be settled in the Group's normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current. 42 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 2. Significant accounting policies (continued) Deferred tax assets and liabilities are always classified as non-current. Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Trade and other receivables Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30 days. The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue. Other receivables are recognised at amortised cost, less any allowance for expected credit losses. Inventories Gold bullion, gold in transit and ore stockpiles are physically measured or estimated and valued at the lower of cost and net realisable value. Net realisable value is the estimated future sales price of the product the Group expects to realise when the product is processed and sold, less costs to complete production. The costs of producing silver are not separately identifiable and are allocated between the products on a rational and consistent basis based on the relative sales value at the completion of production. Cost is determined using the average method and comprises direct purchase costs and an appropriate portion of fixed and variable costs including depreciation and amortisation, incurred in converting materials into finished goods. Consumables are valued at the lower of cost or net realisable value. Any provision for obsolescence is determined by reference to specific items of stock. A regular review is undertaken to determine the extent of any provision or obsolescence. Associates Associates are entities over which the Group has significant influence but not control or joint control. Investments in associates are accounted for using the equity method. Under the equity method, the share of the profits or losses of the associate is recognised in profit or loss and the share of the movements in equity is recognised in other comprehensive income. Investments in associates are carried in the statement of financial position at cost plus post-acquisition changes in the Group's share of net assets of the associate. Goodwill relating to the associate is included in the carrying amount of the investment and is neither amortised nor individually tested for impairment. Dividends received or receivable from associates reduce the carrying amount of the investment. When the Group's share of losses in an associate equals or exceeds its interest in the associate, including any unsecured long-term receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate. The Group discontinues the use of the equity method upon the loss of significant influence over the associate and recognises any retained investment at its fair value. Any difference between the associate's carrying amount, fair value of the retained investment and proceeds from disposal is recognised in profit or loss. Other entities Interest in entities that do not meet the classification as a joint venture or joint operations but has similar characteristics to a joint operation are recognised by the Group by bringing to account its share of the entity’s assets, liabilities, revenues and expenses under the relevant accounting standards for those assets, liabilities, revenues and expenses. 43 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 2. Significant accounting policies (continued) Investments and other financial assets Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either amortised cost or fair value depending on their classification. Classification is determined based on both the business model within which such assets are held and the contractual cash flow characteristics of the financial asset unless an accounting mismatch is being avoided. Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part or all of a financial asset, its carrying value is written off. Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income include equity investments which the Group intends to hold for the foreseeable future and has irrevocably elected to classify them as such upon initial recognition. Financial assets at amortised cost A financial asset is measured at amortised cost only if both of the following conditions are met: (i) it is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and (ii) the contractual terms of the financial asset represent contractual cash flows that are solely payments of principal and interest. Impairment of financial assets The Group recognises a loss allowance for expected credit losses on financial assets which are either measured at amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the Group's assessment at the end of each reporting period as to whether the financial instrument's credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain. Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate. For financial assets mandatorily measured at fair value through other comprehensive income, the loss allowance is recognised in other comprehensive income with a corresponding expense through profit or loss. In all other cases, the loss allowance reduces the asset's carrying value with a corresponding expense through profit or loss. Assets held at fair value through profit or loss ('FVTPL') Listed shares held by the Group that are traded in an active market are measured at FVTPL. The fair value of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are determined with reference to quoted market prices. Gains and losses arising from changes in fair value are recognised in profit or loss. Dividends are recognised in profit or loss when the Group’s right to receive the dividends is established. Property, plant and equipment Land and buildings are shown at fair value, based on periodic, at least every three years, valuations by external independent valuers, less subsequent depreciation and impairment for buildings. The valuations are undertaken more frequently if there is a material change in the fair value relative to the carrying amount. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Increases in the carrying amounts arising on revaluation of land and buildings are credited to the revaluation surplus reserve in equity. Any revaluation decrements are initially taken to the revaluation surplus reserve to the extent of any previous revaluation surplus of the same asset. Thereafter the decrements are taken to profit or loss. Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items. 44 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 2. Significant accounting policies (continued) Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment (excluding land) over their expected useful lives as follows: Buildings Plant and equipment Motor vehicles Mining plant and equipment 13 years 2.5 - 6.7 years 5 years 10 years The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date. Leasehold improvements are depreciated over the unexpired period of the lease or the estimated useful life of the assets, whichever is shorter. An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the Group. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss. Any revaluation surplus reserve relating to the item disposed of is transferred directly to retained profits. Mining plant and equipment and construction work in progress Mining plant and equipment and construction work in progress is carried at cost which includes acquisition, transportation, installation, and commissioning costs. Costs also include present value of decommissioning costs and finance charges capitalised during the construction period where such expenditure is financed by borrowings. Costs are not depreciated until such time as the asset has been completed ready for use. Subsequent costs are included in the asset’s carrying amount only when it is probable that future economic benefits associated with the item will flow to the Group, and the cost of the item can be measured reliably. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred. Right-of-use assets A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset. Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Where the Group expects to obtain ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities. The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred. Intangible assets Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are current is carried forward as an asset in the statement of financial position where it is expected that the expenditure will be recovered through the successful development and exploitation of an area of interest, or by its sale; or exploration activities are continuing in an area and activities have not reached a stage which permits a reasonable estimate of the existence or otherwise of economically recoverable reserves. Where a project or an area of interest has been abandoned, the expenditure incurred thereon is written off in the year in which the decision is made. Exploration and evaluation Exploration and evaluation expenditures are typically expensed, unless it can be demonstrated that the related expenditures will generate a future economic benefit, in which case these costs are capitalised. 45 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 2. Significant accounting policies (continued) Examples of common exploration and evaluation activities include, but are not limited to: Exploration activities which primarily consist of expenditures relating to drilling programs and include, but are not limited to: ● ● ● ● ● ● ● Researching and analysing existing exploration data; Conducting geological mapping studies; and Exploratory drilling and sampling including: • Taking core samples for analysis (assay work); • Sinking exploratory shafts; • Opening shallow pits; and • Drilling to determine volume and grade of deposits in an area known to contain mineral resources, or for the purpose of converting mineral resources into proven and probable reserves. Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying amount the asset exceeds its recoverable amount. Where the carrying amount is assessed as exceeding recoverable amount, the excess is recognised as an impairment expense in the profit or loss. Mine development assets Capitalised mine development costs include expenditures incurred to develop new ore bodies to define further mineralisation in existing ore bodies, to expand the capacity of a mine and to maintain production. Mining development also includes costs transferred from exploration and evaluation phase once production commences in the area of interest. Amortisation of mine development is computed by the units of production basis over the estimated proved and probable reserves and a predetermined percentage of the recoverable measured, indicated and inferred resource. The percentage is reviewed annually. Proved and probable mineral reserves reflect estimated quantities of economically recoverable reserves which can be recovered in the future from known mineral deposits. These reserves are amortised from the date on which production commences. The amortisation is calculated from recoverable proven and probable reserves and a predetermined percentage of the recoverable measured, indicated and inferred resource. This percentage is reviewed annually. Restoration costs expected to be incurred are provided for as part of development phase that give rise to the need for restoration. Impairment of non-financial assets Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit. Trade and other payables These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition. Lease liabilities A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred. 46 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 2. Significant accounting policies (continued) Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down. Provisions Provisions are recognised when the Group has a present (legal or constructive) obligation as a result of a past event, it is probable the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is recognised as a finance cost. Site rehabilitation Rehabilitation costs include the dismantling and removal of mining plant, equipment and building structures, waste removal and rehabilitation of the site in accordance with the requirements of the mining permits. Such costs are determined using estimates of future costs, current legal requirements and technology. Rehabilitation costs are recognised at present value as a non-current liability. An equivalent amount is capitalised as part of the cost of the asset when an obligation arises to decommission or restore a site to certain condition after abandonment as a result of bringing the assets to its present location. The capitalised cost is amortised over the life of the project and the provision is accreted periodically as the discounting of the liability unwinds. The unwinding of the discount is recorded as a finance cost. Employee benefits Short-term employee benefits Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled within 12 months of the reporting date are recognised in respect of employees' services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled. Other long-term employee benefits The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date is measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on high-quality corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. Defined contribution superannuation expense Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred. Fair value measurement When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market. Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the fair value measurement. 47 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 2. Significant accounting policies (continued) For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where applicable, with external sources of data. Contributed capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Dividends Dividends are recognised when declared during the financial year and no longer at the discretion of the Company. Earnings per share Basic earnings per share Basic earnings per share is calculated by dividing the profit attributable to the owners of Tribune Resources Limited, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year. Diluted earnings per share Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares. Goods and Services Tax ('GST') and other similar taxes Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority. New Accounting Standards and Interpretations not yet mandatory or early adopted Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the Group for the annual reporting period ended 30 June 2020. The Group's assessment of the impact of these new or amended Accounting Standards and Interpretations, most relevant to the Group, are set out below. Conceptual Framework for Financial Reporting The revised Conceptual Framework is applicable to annual reporting periods beginning on or after 1 January 2020 and early adoption is permitted. The Conceptual Framework contains new definition and recognition criteria as well as new guidance on measurement that affects several Accounting Standards. Where the Group has relied on the existing framework in determining its accounting policies for transactions, events or conditions that are not otherwise dealt with under the Australian Accounting Standards, the Group may need to review such policies under the revised framework. At this time, the application of the Conceptual Framework is not expected to have a material impact on the Group’s financial statements. 48 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 2. Significant accounting policies (continued) Other standards and interpretations The directors have also reviewed all other new Standards and Interpretations that have been issued but are not yet effective for the year ended 30 June 2021. As a result of this review the directors have determined that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on the Company and, therefore, no change is necessary to Group accounting policies. These accounting policies are consistent with Australian Accounting Standards and with International Reporting Standards. Note 3. Critical accounting judgements, estimates and assumptions The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below. Coronavirus (COVID-19) pandemic Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have, on the Group based on known information. This consideration extends to the nature of the products and services offered, customers, supply chain, staffing and geographic regions in which the Group operates. Other than as addressed in specific notes, there does not currently appear to be either any significant impact upon the financial statements. Inventories Ore stockpiles are measured by estimating the number of tonnes added and removed from the stockpile, the number of contained gold ounces based on assay data, and the estimated processing plant metal recovery percentage. Stockpile tonnages are verified by periodic surveys. Fair value measurement hierarchy The Group is required to classify all assets and liabilities, measured at fair value, using a three level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3: Unobservable inputs for the asset or liability. Considerable judgement is required to determine what is significant to fair value and therefore which category the asset or liability is placed in can be subjective. The fair value of assets and liabilities classified as level 3 is determined by the use of valuation models. These include discounted cash flow analysis or the use of observable inputs that require significant adjustments based on unobservable inputs. Lease term The lease term is a significant component in the measurement of both the right-of-use asset and lease liability. Judgement is exercised in determining whether there is reasonable certainty that an option to extend the lease or purchase the underlying asset will be exercised, or an option to terminate the lease will not be exercised, when ascertaining the periods to be included in the lease term. In determining the lease term, all facts and circumstances that create an economical incentive to exercise an extension option, or not to exercise a termination option, are considered at the lease commencement date. Factors considered may include the importance of the asset to the Group's operations; comparison of terms and conditions to prevailing market rates; incurrence of significant penalties; existence of significant leasehold improvements; and the costs and disruption to replace the asset. The Group reassesses whether it is reasonably certain to exercise an extension option, or not exercise a termination option, if there is a significant event or significant change in circumstances. Carrying value of mine development assets Mine development assets are amortised using the unit of production ('UOP') method where the mine operating plan calls for production from well-defined mineral reserves. 49 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 3. Critical accounting judgements, estimates and assumptions (continued) The calculation of UOP rate of amortisation could be impacted to the extent that actual production in the future is different from the current forecast production based on proved and probable mineral reserves. This would generally result to the extent that there are significant changes in any of the factors or assumptions used in estimating mineral reserves. These factors could include: ● ● ● ● ● ● Change in proved and probable reserves; The grade of mineral reserves may vary significantly from time to time; Differences between actual commodity prices and commodity prices assumption; Unforeseen operational issues at mine site; Changes in capital, operating, mining, processing and reclamation costs, discount rates; and Changes in mineral reserves could similarly impact the useful lives of the assets depreciated on a straight line basis, where those lives are limited to the life of the mine. The Group reviews and tests the carrying value of assets when events or changes in circumstances suggest that the carrying amount may not be recoverable. Assets are grouped at the lowest level for which identifiable cash flows are largely independent of cash flows of other assets and liabilities. If there are indications that impairment may have occurred, estimates are prepared for future cash flows the mining assets. Expected future cash flows used to determine the value-in- use of tangible assets are inherently uncertain and could materially change over time. They are significantly affected by a number of factors including reserves and production estimates, together with economic factors such as spot gold prices, discount rates, estimates of costs to produce reserves and future capital expenditure. In the opinion of the directors, there are no indicators of impairment at the reporting date. Note 4. Operating segments Identification of reportable operating segments The Group is organised into one operating segment, being mining and exploration operations. This operating segment is based on the internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of resources. Types of products and services The principal products and services of this operating segment are the mining and exploration operations in Australia, including the East Kundana and West Kundana Joint Ventures with Northern Star Resources Ltd, West Africa and Philippines. Major customers During the year ended 30 June 2020 approximately 100% (2019: 100%) of the Group's external revenue was derived from sales to one customer. Operating segment information As noted above, the Board only considers one segment to be a reportable segment for its reporting purposes. As such, the reportable information the CODM reviews is detailed throughout the financial statements. Note 5. Revenue From continuing operations Revenue from contracts with customers Sales of gold Other revenue Rent Other revenue Revenue from continuing operations 50 Consolidated 2020 $ 2019 $ 179,367,328 364,248,049 - 1,047,121 1,047,121 15,267 276,497 291,764 180,414,449 364,539,813 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 5. Revenue (continued) Disaggregation of revenue All sales of gold were made in Australia and recognised as point in time revenue. Note 6. Expenses Profit before income tax from continuing operations includes the following specific expenses: Consolidated 2020 $ 2019 $ 208,428 37,976 32,451 3,751,758 3,652,326 168,256 24,533 33,980 7,962,530 - 7,682,939 8,189,299 11,056,076 12,068,725 18,739,015 20,258,024 31,416 (439,704) 456,366 1,753,686 (408,288) 2,210,052 257,383 5,459 283,923 - 262,842 283,923 - 191,646 103,574 - 191,646 103,574 118,758 97,869 Depreciation Buildings Plant and equipment Motor vehicles Mining plant and equipment Plant and equipment - right-of-use assets Total depreciation Amortisation Mine development Total depreciation and amortisation Impairment of/(gain on) assets Trade and other receivables Impairment of/(gain on) financial assets Total impairment of/(gain on) assets Finance costs Interest and finance charges paid/payable on borrowings Interest and finance charges paid/payable on lease liabilities Finance costs expensed Leases Minimum lease payments Short-term lease payments Superannuation expense Defined contribution superannuation expense 51 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 7. Income tax expense Income tax expense Current tax Deferred tax - origination and reversal of temporary differences Current tax relating to prior periods Aggregate income tax expense Income tax expense is attributable to: Profit from continuing operations Loss from discontinued operations Aggregate income tax expense Deferred tax included in income tax expense comprises: Increase in deferred tax assets (note 17) Increase in deferred tax liabilities (note 23) Consolidated 2020 $ 2019 $ 26,931,663 60,933,717 2,469,663 (769,020) 704,489 53,393 27,689,545 62,634,360 27,689,545 62,687,779 (53,419) - 27,689,545 62,634,360 (687,734) 1,392,223 (535,914) 3,005,577 Deferred tax - origination and reversal of temporary differences 704,489 2,469,663 Numerical reconciliation of income tax expense and tax at the statutory rate Profit before income tax expense from continuing operations Loss before income tax benefit from discontinued operations Tax at the statutory tax rate of 30% Tax effect amounts which are not deductible/(taxable) in calculating taxable income: Non-deductible items Tax effect of other non-assessable amounts in calculating taxable income Tax offset - franking credit Sundry items Adjustment recognised for prior periods Tax benefit not brought to account Difference in foreign tax rate Income tax expense Tax losses not recognised Unused tax losses for which no deferred tax asset has been recognised Potential tax benefit at statutory tax rates 75,981,162 135,151,783 (253,366) (937,768) 75,043,394 134,898,417 22,513,018 40,469,525 6,377,552 7,534,289 (5,169,313) 348,009 (1,139,004) 12,870,457 - (46,366) 23,692,624 60,065,543 (96,679) 1,917,403 748,093 (9,882) 3,728,016 278,787 27,689,545 62,634,360 Consolidated 2020 $ 2019 $ 10,373,195 9,029,079 3,630,618 3,028,063 At 30 June 2020, the Group had a potential deferred tax asset of Ghanaian Cedi ('₵') ₵41,409,962 (AUD $10,373,195) (2019: ₵29,018,377 (AUD $8,086,881)). The above potential tax benefit for tax losses have not been recognised in the statement of financial position. 52 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 8. Discontinued operations Sale of Melville Parade Pty Ltd On 29 June 2020, the Company disposed of Melville Parade Pty Ltd, its wholly-owned subsidiary, for $4,000,000 to Lake Grace Exploration Pty Ltd, an entity controlled by Anthony Billis. Melville Parade Pty Ltd had been determined to be non- core to the Company and held no mining tenements or other mining assets. The transaction was conducted on arms length terms and considered to be in the best interests of the Company. Financial performance information Other income Interest revenue calculated using the effective interest method Total revenue Depreciation and amortisation expense Impairment of assets Administration expenses Finance costs Total expenses Loss before income tax benefit Income tax benefit Loss after income tax benefit Loss on sale before income tax Income tax expense Loss on disposal after income tax expense Consolidated 2020 $ 2019 $ 269,001 419 269,420 (184,978) - (141,578) - (326,556) 137,911 - 137,911 (231,647) (43,208) (116,002) (420) (391,277) (57,136) - (253,366) 53,419 (57,136) (199,947) (880,632) - (880,632) - - - Loss after income tax benefit from discontinued operations (937,768) (199,947) Cash flow information Net cash from operating activities Net cash used in investing activities Net cash from financing activities Consolidated 2020 $ 2019 $ 240,635 (142,212) 98,423 197,781 (185,570) 12,211 Net increase in cash and cash equivalents from discontinued operations 196,846 24,422 53 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 8. Discontinued operations (continued) Carrying amounts of assets and liabilities disposed Cash and cash equivalents Trade and other receivables Financial assets at fair value through profit or loss Property, plant and equipment Deferred tax assets Total assets Trade and other payables Total liabilities Net assets Details of the disposal Total sale consideration Carrying amount of net assets disposed Loss on disposal before income tax Income tax expense Loss on disposal after income tax Note 9. Current assets - cash and cash equivalents Cash on hand Cash at bank Cash on deposit Consolidated 2020 $ 2019 $ 127,130 467 2,443 4,555,030 196,562 4,881,632 1,000 1,000 4,880,632 Consolidated 2020 $ 2019 $ 4,000,000 (4,880,632) (880,632) - (880,632) Consolidated 2020 $ 2019 $ - - - - - - - - - - - - - - 25,460 23,620 13,947,478 59,085,781 50,000 50,000 Cash at bank bears fixed interest at 0.32% (2019: 1.25%) and cash on hand is non-interest bearing. Cash on deposit bears floating interest rates of 0.26% (2019: 1.61%). These deposits have an average maturity of 180 days. 14,022,938 59,159,401 54 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 10. Current assets - trade and other receivables Trade receivables Less: Allowance for expected credit losses Other receivables Prepayments Consolidated 2020 $ 2019 $ 554,273 (462,344) 91,929 431,971 (430,928) 1,043 2,054,756 70,037 5,282,623 104,950 2,216,722 5,388,616 Allowance for expected credit losses The ageing of the receivables and allowance for expected credit losses provided for above are as follows: Consolidated Not overdue 0 to 3 months overdue Over 12 months overdue Expected credit loss rate 2020 % 2019 % Carrying amount 2019 $ 2020 $ Allowance for expected credit losses 2020 $ 2019 $ - - 100% - 100% - 91,929 - 462,344 1,043 430,928 - - - 462,344 - 430,928 - 554,273 431,971 462,344 430,928 Movements in the allowance for expected credit losses are as follows: Opening balance Additional provisions recognised Closing balance Note 11. Current assets - inventories Ore stockpiles - at cost Gold in transit - at cost Gold on hand - at cost Silver on hand - at net realisable value Consumables - at cost Consolidated 2020 $ 2019 $ 430,928 31,416 400,016 30,912 462,344 430,928 Consolidated 2020 $ 2019 $ 260,849 60,167,686 27,958,059 4,038,975 103,290,045 102,965,848 3,462,110 1,885,223 4,307,464 1,833,208 169,859,252 140,310,215 55 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 12. Non-current assets - financial assets at fair value through profit or loss Listed securities - at fair value through profit or loss 670,958 395,486 Reconciliation Reconciliation of the carrying amounts at the beginning and end of the current and previous financial year are set out below: Consolidated 2020 $ 2019 $ Opening carrying amount Disposals Gain/(loss) on revaluation through profit or loss Closing carrying amount Note 13. Non-current assets - property, plant and equipment Land and buildings - at independent valuation Less: Accumulated depreciation Plant and equipment - at cost Less: Accumulated depreciation Motor vehicles - at cost Less: Accumulated depreciation Mining plant and equipment - at cost Less: Accumulated depreciation Construction work in progress - at cost 395,486 (11,129) 286,601 2,159,756 - (1,764,270) 670,958 395,486 Consolidated 2020 $ 2019 $ 2,799,625 (151,022) 2,648,603 6,076,509 (404,464) 5,672,045 361,276 (284,230) 77,046 1,486,414 (453,959) 1,032,455 236,865 (171,649) 65,216 799,703 (695,304) 104,399 77,492,457 87,287,508 (38,434,588) 45,019,007 48,852,920 (32,473,450) 352,188 290,911 48,162,060 55,952,730 56 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 13. Non-current assets - property, plant and equipment (continued) Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: Consolidated Balance at 1 July 2018 Additions Disposals Revaluations Exchange differences Transfers from exploration and evaluation (note 15) Transfers in/(out) Depreciation expense Balance at 30 June 2019 Additions Disposals Revaluations Exchange differences Transfers from exploration and evaluation (note 15) Transfers in/(out) Depreciation expense Reclassified to plant and equipment - right-of-use - prior year written down value (note 14) Reclassified to plant and equipment - right-of-use - current year (note 14) Land and buildings $ Plant and equipment $ Motor vehicles $ Mining plant and Construction equipment* WIP** $ $ Total $ 6,348,811 - - (139,710) (179,466) - - (357,590) 917,832 165,225 - - (1,822) - - (48,780) 71,354 40,527,251 4,854,374 85,253 (412,887) - - - (2,169) (162) 2,133,200 49,998,448 7,036,152 12,141,004 (412,887) (139,710) (183,619) - - - - - (52,046) 2,970,440 8,878,441 (7,962,530) - (8,878,441) - 2,970,440 - (8,420,946) 5,672,045 - (3,623,894) 877,940 (69,060) 1,032,455 65,610 (982,904) - (138) 104,399 48,852,920 2,678,234 (186,385) - 427 42,137 (49,083) - 215 290,911 55,952,730 8,826,490 11,612,471 (4,842,266) 877,940 (68,556) - - - - - (208,428) - - (37,977) - - (32,452) 2,614,377 8,765,213 (3,751,758) - (8,765,213) - 2,614,377 - (4,030,615) - - - - - - (6,531,158) (7,422,863) - - (6,531,158) (7,422,863) Balance at 30 June 2020 2,648,603 77,046 65,216 45,019,007 352,188 48,162,060 * ** Included in mining plant and equipment is $34,668,764 (2019: $29,379,560) of resource extension relating to drilling expenditure on Raleigh, Rubicon/Hornet and Pegasus. Construction work in progress related to Rubicon/Hornet and Pegasus mines. Valuations of land and buildings On 18 October 2019, the Company revalued its office building in East Legon. The fair value used represents the amount for which the asset could be exchanged between knowledgeable parties in an arm's length transaction, based on current prices in an active market for similar properties in the same location and condition. The valuation was performed by an independent valuation company which is also a member of the Ghana Institute of Surveyors. The directors do not believe that there has been a material movement in fair value since the revaluation date. Refer to note 32 for further information on fair value measurement. 57 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 14. Non-current assets - right-of-use assets Plant and equipment - right-of-use Less: Accumulated depreciation Consolidated 2020 $ 2019 $ 17,443,467 (7,695,241) 9,748,226 - - - The Group leases plant and equipment under agreements of between one to three years. Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: Consolidated Balance at 1 July 2018 Balance at 30 June 2019 Recognised as assets on adoption of AASB 16 (note 2) Disposals Depreciation expense Reclassified from mining plant and equipment - prior year written down value (note 13) Reclassified from mining plant and equipment - current year (note 13) Balance at 30 June 2020 Note 15. Non-current assets - exploration and evaluation Exploration and evaluation - at cost Plant and equipment - right-of-use $ - - 198,168 (751,637) (3,652,326) 6,531,158 7,422,863 9,748,226 Consolidated 2020 $ 2019 $ 4,159,222 4,836,259 58 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 15. Non-current assets - exploration and evaluation (continued) Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: Consolidated Balance at 1 July 2018 Additions Additions through asset acquisition (note 39) Transferred to exploration and evaluation expenses Transferred to mining plant and equipment (note 13) Balance at 30 June 2019 Additions Transferred to exploration and evaluation expenses Transferred to mining plant and equipment (note 13) Balance at 30 June 2020 Exploration and evaluation $ 4,167,497 11,325,273 24,883,210 (32,569,281) (2,970,440) 4,836,259 16,331,587 (14,394,247) (2,614,377) 4,159,222 Current year exploration focused on underground drilling from Hornet-Rubicon-Pegasus (‘RHP’) and Raleigh which continued to expand the resources associated with these mines which is feeding current mining. Impairment At each reporting date the Group undertakes an assessment of the carrying amount of its exploration and evaluation assets. During the year the Group identified indicators of impairment on certain exploration and evaluation assets under AASB 6 'Exploration for and Evaluation of Mineral Resources'. As a result of this review, an impairment loss of $14,394,247 (2019: $32,569,281) has been recognised in profit or loss in relation to areas of interest where no future exploration and evaluation activities are expected. An impairment of $902,309 (Tribune's share) was recognised in relation to Raleigh by the EKJV Managers. Drilling platforms from which future work was planned are no longer accessible due to seismic activity which occurred during the year. Note 16. Non-current assets - mine development Mine development - at cost Less: Accumulated amortisation Consolidated 2020 $ 2019 $ 214,075,942 200,154,455 (166,251,597) (156,026,391) 47,824,345 44,128,064 59 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 16. Non-current assets - mine development (continued) Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: Consolidated Balance at 1 July 2018 Additions Amortisation expense Balance at 30 June 2019 Additions Rehabilitation adjustment Amortisation expense Balance at 30 June 2020 Mine development $ 37,770,155 18,426,634 (12,068,725) 44,128,064 14,686,383 65,974 (11,056,076) 47,824,345 Mine development relates to Raleigh underground development, Rubicon development and Pegasus development. Note 17. Non-current assets - deferred tax Deferred tax asset comprises temporary differences attributable to: Amounts recognised in profit or loss: Property, plant and equipment Leases Rehabilitation provisions Capitalised mine development costs Blackhole expenditure Capital losses Sundry accruals and provisions Deferred tax asset Movements: Opening balance Credited to profit or loss (note 7) Closing balance Consolidated 2020 $ 2019 $ 1,384 15,210 87,900 6,971,937 37,501 584,097 351,966 196,931 - 81,989 6,732,010 18,952 2,250 330,129 8,049,995 7,362,261 7,362,261 687,734 6,826,347 535,914 8,049,995 7,362,261 60 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 18. Current liabilities - trade and other payables Trade payables Accrued expenses Other payables Refer to note 31 for further information on financial instruments. Note 19. Current liabilities - lease liabilities Lease liability Refer to note 31 for further information on financial instruments. Note 20. Current liabilities - income tax Provision for income tax Note 21. Current liabilities - provisions Employee benefits Note 22. Non-current liabilities - lease liabilities Lease liability Refer to note 31 for further information on financial instruments. 61 Consolidated 2020 $ 2019 $ 12,233,991 18,232,362 895,557 - 349,363 36,717 12,620,071 19,127,919 Consolidated 2020 $ 2019 $ 4,464,748 3,649,621 Consolidated 2020 $ 2019 $ 5,799,889 36,796,507 Consolidated 2020 $ 2019 $ 181,710 111,974 Consolidated 2020 $ 2019 $ 3,095,369 2,033,656 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 23. Non-current liabilities - deferred tax Deferred tax liability comprises temporary differences attributable to: Consolidated 2020 $ 2019 $ Amounts recognised in profit or loss: Right-of-use assets Capitalised exploration Consumables Provisions Other Deferred tax liability Movements: Opening balance Charged to profit or loss (note 7) Closing balance Note 24. Non-current liabilities - provisions Rehabilitation 14,863 - 11,648,396 10,263,316 414,290 14,949 143,080 592,146 25,201 (52,748) 12,227,858 10,835,635 10,835,635 1,392,223 7,830,058 3,005,577 12,227,858 10,835,635 Consolidated 2020 $ 2019 $ 1,172,003 1,093,183 Rehabilitation The provision for rehabilitation covers the following East Kundana joint venture ('EKJV') tenements - M16/309, M15/993, L16/28, L16/38, L16/39, L16/40, L16/54 and L16/69. The provision for rehabilitation also covers the following key long-lived assets: ● ● ● ● Raleigh: Pit, Raleigh Paleo channel WRD, ROM pad and backfill plant; Pope John Pit; White Foil - Moonbeam discharge pipeline; and Kurrawang Pipeline Corridor. During the financial year, EKJV management reassessed the rehabilitation cost estimate, noting no significant adjustments to the underlying cost estimate applied at 30 June 2020. Movements in provisions Movements in each class of provision during the current financial year, other than employee benefits, are set out below: Consolidated - 2020 Carrying amount at the start of the year Impact of revision to expected cash flows (net of accretion) Carrying amount at the end of the year Rehabilitation $ 1,093,183 78,820 1,172,003 62 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 25. Equity - contributed equity Consolidated 2020 Shares 2019 Shares 2020 $ 2019 $ Ordinary shares - fully paid 52,468,077 55,503,023 58,200,026 73,080,910 Movements in ordinary share capital Details Date Shares Issue price $ Balance Acquisition of Prometheus Developments Proceeds from sale of Tribune shares by Rand Mining Limited Sale of 12,025,519 Tribune shares by Rand Mining Limited Balance Share buy-back Share buy-back Share buy-back Proceeds from sale of Tribune shares by Rand Mining Limited Sale of 1,135,000 Tribune shares by Rand Mining Limited 1 July 2018 50,003,023 5,500,000 11,059,778 $4.55 25,025,000 45,475,897 (8,479,765) 30 June 2019 26 March 2020 16 April 2020 9 June 2020 55,503,023 (100,000) (50,000) (2,884,946) 73,080,910 (454,000) $4.54 $5.50 (274,950) $6.20 (17,886,665) 6,004,731 (2,270,000) Balance 30 June 2020 52,468,077 58,200,026 Ordinary shares Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the Company does not have a limited amount of authorised capital. On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote. Options The Company has no options on issue. Share buy-back On 5 February 2020, the Company announced it would undertake an on-market buy-back of ordinary shares up to a maximum of 4,900,000 ordinary fully paid shares. During the year, the Company purchased and cancelled 3,034,946 shares for $18,615,615 excluding brokerage and GST under the buy-back facility. The issued capital at the end of the year was 52,468,077 ordinary fully paid shares. Capital risk management The Group's objectives when managing capital are to safeguard its ability to continue as a going concern, so that it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to reduce the cost of capital. Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated as total borrowings less cash and cash equivalents. 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 or sell assets to reduce debt. 63 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 25. Equity - contributed equity (continued) The Group would look to raise capital when an opportunity to invest in a business or company was seen as value adding relative to the current parent entity's share price at the time of the investment. The Group is not actively pursuing additional investments in the short term as it continues to integrate and grow its existing businesses in order to maximise synergies. The capital risk management policy remains unchanged from the 30 June 2019 Annual Report. Note 26. Equity - treasury shares Treasury shares Consolidated 2020 $ 2019 $ - (2,270,000) Treasury shares represent re-acquired equity instruments on the acquisition of Rand Mining Limited in 2010. No additional treasury shares were acquired during the financial year. 1,135,000 (2019: 12,025,519) shares were sold in the year with cost value of $2,270,000 (2019: $8,479,765). Note 27. Equity - reserves Revaluation surplus reserve Foreign currency reserve Change in ownership interest reserve Consolidated 2020 $ 2019 $ 4,092,684 (1,878,368) (3,168,381) 4,181,830 (1,755,770) (3,168,381) (954,065) (742,321) Revaluation surplus reserve The reserve is used to recognise increments and decrements in the fair value of land and buildings, excluding investment properties. Foreign currency reserve The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign operations to Australian dollars. It is also used to recognise gains and losses on hedges of the net investments in foreign operations. Changes in ownership interest reserve This reserve is used to recognise the change in the share of the non-controlling interest. 64 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 27. Equity - reserves (continued) Movements in reserves Movements in each class of reserve during the current and previous financial year are set out below: Consolidated Revaluation surplus $ Foreign currency $ Change in ownership interest $ Total $ Balance at 1 July 2018 Revaluation - gross Foreign currency translation Adjustment for correction of error in Rand Mining Limited 4,265,254 (83,424) - - (1,576,735) - (179,035) - 560,124 - - (3,728,505) 3,248,643 (83,424) (179,035) (3,728,505) Balance at 30 June 2019 Revaluation - gross Foreign currency translation Transfer to retained earnings on sale of subsidiary 4,181,830 877,942 - (967,088) (1,755,770) - (122,598) - (3,168,381) - - - (742,321) 877,942 (122,598) (967,088) Balance at 30 June 2020 4,092,684 (1,878,368) (3,168,381) (954,065) Note 28. Equity - retained profits Retained profits at the beginning of the financial year Profit after income tax (expense)/benefit for the year Dividends paid (note 30) Transfers Transfer from revaluation surplus reserve Dividends received Retained profits at the end of the financial year Note 29. Equity - non-controlling interest Contributed equity Retained profits Consolidated 2020 $ 2019 $ 121,607,621 223,509,035 48,211,437 34,651,424 (13,758,281) (220,889,817) (235,576) - 2,884,676 84,572,555 - 967,088 159,912,541 121,607,621 Consolidated 2020 $ 2019 $ 9,317,815 9,317,815 38,675,753 42,890,512 47,993,568 52,208,327 65 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 30. Equity - dividends Dividends Dividends paid during the financial year were as follows: Dividend of 20 cents per ordinary share paid to shareholders on 14 September 2018. Dividend of 10 cents per ordinary share by controlled entity Rand Mining Limited and paid to Rand shareholders on 14 September 2018. Special dividend of $3.50 per ordinary share paid to shareholders on 10 October 2018. Special dividend of $1.25 per ordinary share by controlled entity Rand Mining Limited and paid to Rand shareholders on 12 October 2018. Dividend of 20 cents per ordinary share paid to shareholders on 25 October 2019. Dividend of 10 cents per ordinary share by controlled entity Rand Mining Limited and paid to shareholders on 22 October 2019. Consolidated 2020 $ 2019 $ - 10,000,605 - 6,014,848 - 175,010,580 - 11,100,604 75,185,594 - 6,014,848 - 17,115,452 266,211,627 Other than the above, there were no dividends recommended or declared during the current financial year. Franking credits Consolidated 2020 $ 2019 $ Franking credits available for subsequent financial years based on a tax rate of 30% 127,246,141 72,300,486 The above amounts represent the balance of the franking account as at the end of the financial year, adjusted for: ● ● ● franking credits that will arise from the payment of the amount of the provision for income tax at the reporting date franking debits that will arise from the payment of dividends recognised as a liability at the reporting date franking credits that will arise from the receipt of dividends recognised as receivables at the reporting date Note 31. Financial instruments Financial risk management objectives The Group's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price risk and interest rate risk), credit risk and liquidity risk. The Group uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate, foreign exchange and other price risks, and ageing analysis for credit risk. Risk management is carried out by senior finance executives ('finance') under policies approved by the Board of Directors ('the Board'). These policies include identification and analysis of the risk exposure of the Group and appropriate procedures, controls and risk limits. Finance identifies, evaluates and hedges financial risks within the Group's operating units. Finance reports to the Board on a monthly basis. Market risk Foreign currency risk The Group undertakes certain transactions denominated in foreign currency and is exposed to foreign currency risk through foreign exchange rate fluctuations. Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities denominated in a currency that is not the entity's functional currency. The risk is measured using sensitivity analysis and cash flow forecasting. 66 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 31. Financial instruments (continued) The average exchange rates and reporting date exchange rates applied were as follows: Australian dollars Ghanaian New Cedi Average exchange rates Reporting date exchange rates 2020 2019 2020 2019 0.2667 0.2787 0.2505 0.2611 The carrying amount of the Group's foreign currency denominated financial assets and financial liabilities at the reporting date were as follows: Consolidated Ghanaian New Cedi Assets 2020 $ 2019 $ Liabilities 2020 $ 2019 $ 3,463,338 2,276,374 144,185 43,395 The Group had net assets denominated in foreign currencies of $3,319,153 (assets $3,463,338 less liabilities $144,185) as at 30 June 2020 (2019: $2,232,979 (assets $2,276,374 less liabilities $43,395)). Had the Australian dollar weakened by 60%/strengthened by 60% (2019: weakened by 60%/strengthened by 60%) against this foreign currency with all other variables held constant, the Group's profit before tax for the year would have been as follows: Consolidated - 2020 % change profit before tax Effect on equity % change profit before tax Effect on equity AUD strengthened Effect on AUD weakened Effect on Ghanaian New Cedi 60% 1,991,492 1,991,492 60% (1,991,492) (1,991,492) Consolidated - 2019 % change profit before tax Effect on equity % change profit before tax Effect on equity AUD strengthened Effect on AUD weakened Effect on Ghanaian New Cedi 60% 1,339,787 1,339,787 60% (1,339,787) (1,339,787) The percentage change is the expected overall volatility of the significant currencies, which is based on management’s assessment of reasonable possible fluctuations taking into consideration movements over the last year and the spot rate at each reporting date. The actual foreign exchange loss for the year ended 30 June 2020 was $45,066 (2019: $121,394). Price risk The Group is exposed to equity securities price risks and bullion price risk. This arises from investments held by the Group and classified in the statement of financial position as financial assets at fair value through profit or loss and bullion held as inventory. The policy of the Group is to sell gold at the spot price and has not entered into any hedging contracts. The Group's revenues were exposed to fluctuation in the price of gold. If the average selling price of gold of $2,414.00 (2019: $1,807.10) for the financial year had increased/decreased by 10% the change in the profit before income tax for the Group would have been an increase /decrease of $18,593,434 (2019: $39,665,808). Interest rate risk The Group is not exposed to any significant interest rate risk. The Group's main interest rate risk arises from cash equivalents and loans with variable interest rates. 67 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 31. Financial instruments (continued) As at the reporting date, the Group had the following amounts outstanding: Consolidated Cash at bank Deposits at call 2020 2019 Weighted average interest rate % Weighted average interest rate % Balance $ Balance $ 0.32% 13,947,478 50,000 0.26% 1.25% 59,085,781 50,000 1.61% Net exposure to cash flow interest rate risk 13,997,478 59,135,781 An official increase/decrease in interest rates of one hundred (2019: one hundred) basis point would have a favourable/adverse effect on profit before tax of $139,975 (2019: favourable/adverse effect $591,358) per annum. The basis point change is based on the expected volatility of interest rates using market data and analysts forecasts. Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group has a strict code of credit, including obtaining agency credit information, confirming references and setting appropriate credit limits. The Group obtains guarantees where appropriate to mitigate credit risk. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements. The Group does not hold any collateral. The Group has adopted a lifetime expected loss allowance in estimating expected credit losses to trade receivables through the use of a provisions matrix using fixed rates of credit loss provisioning. These provisions are considered representative across all customers of the Group based on recent sales experience, historical collection rates and forward- looking information that is available. The Group has a credit risk exposure with the carrying amount of trade receivables. For some receivables the Group obtains agreements which can be called upon if the counterparty is in default under the terms of the agreement. The credit rating of cash required to obtain credit is AA. Generally, trade receivables are written off when there is no reasonable expectation of recovery. Indicators of this include the failure of a debtor to engage in a repayment plan, no active enforcement activity and a failure to make contractual payments for a period greater than 1 year. Liquidity risk Vigilant liquidity risk management requires the Group to maintain sufficient liquid assets (mainly cash and cash equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable. The Group manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities. 68 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 31. Financial instruments (continued) Remaining contractual maturities The following tables detail the Group's remaining contractual maturity for its financial instrument liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position. Consolidated - 2020 Non-derivatives Non-interest bearing Trade payables Other payables Interest-bearing - fixed rate Lease liability Total non-derivatives Consolidated - 2019 Non-derivatives Non-interest bearing Trade payables Interest-bearing - fixed rate Lease liability Total non-derivatives Weighted average interest rate % 1 year or less $ Between 1 and 2 years $ Between 2 and 5 years $ Over 5 years $ Remaining contractual maturities $ - - 12,233,991 36,717 - - - - - 12,233,991 36,717 - 3.73% 4,615,962 16,886,670 2,418,554 2,418,554 732,993 732,993 - 7,767,509 - 20,038,217 Weighted average interest rate % 1 year or less $ Between 1 and 2 years $ Between 2 and 5 years $ Over 5 years $ Remaining contractual maturities $ - 18,232,362 - 4.37% 3,808,130 22,040,492 2,067,676 2,067,676 - - - - 18,232,362 - 5,875,806 - 24,108,168 Note 32. Fair value measurement Fair value hierarchy The following tables detail the Group's assets and liabilities, measured or disclosed at fair value, using a three level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly Level 3: Unobservable inputs for the asset or liability Consolidated - 2020 Assets Listed securities - equity Land and buildings Total assets Level 1 $ Level 2 $ Level 3 $ Total $ 670,958 - 670,958 - - - - 2,648,603 2,648,603 670,958 2,648,603 3,319,561 69 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 32. Fair value measurement (continued) Consolidated - 2019 Assets Listed securities - equity Land and buildings Total assets Level 1 $ Level 2 $ Level 3 $ Total $ 395,486 - 395,486 - - - - 5,672,045 5,672,045 395,486 5,672,045 6,067,531 There were no transfers between levels during the financial year. Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value. The carrying amounts of trade receivables and trade payables are assumed to approximate their fair values due to their short-term nature. The fair value of financial liabilities is estimated by discounting the remaining contractual maturities at the current market interest rate that is available for similar financial instruments. Valuation techniques for fair value measurements categorised within level 2 and level 3 On 18 October 2019, the Company revalued its office building in East Legon. The fair value used represents the amount for which the asset could be exchanged between knowledgeable parties in an arm's length transaction, based on current prices in an active market for similar properties in the same location and condition. The valuation was performed by an independent valuation company which is also a member of the Ghana Institute of Surveyors. The directors do not believe that there has been a material movement in fair value since the revaluation date. Level 3 assets and liabilities Movements in level 3 assets and liabilities during the current and previous financial year are set out below: Consolidated Balance at 1 July 2018 Losses recognised in other comprehensive income Exchange differences Depreciation Balance at 30 June 2019 Gains recognised in other comprehensive income Sales Exchange differences Depreciation Balance at 30 June 2020 Note 33. Key management personnel disclosures Land and buildings $ 6,348,811 (139,710) (179,466) (357,590) 5,672,045 877,940 (3,623,894) (69,060) (208,428) 2,648,603 Compensation The aggregate compensation made to directors and other members of key management personnel of the Group is set out below: Short-term employee benefits Post-employment benefits 70 Consolidated 2020 $ 2019 $ 1,005,226 25,021 729,828 41,280 1,030,247 771,108 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 34. Remuneration of auditors During the financial year the following fees were paid or payable for services provided by RSM Australia Partners, the auditor of the Company, and unrelated firms: Audit services - RSM Australia Partners Audit or review of the financial statements Other services - RSM Australia Partners Tax compliance services Other compliance services Other services - unrelated firms IFRS accounting services Audit or review of the financial statements - PKF Audit or review of the financial statements - SCG Audits Audit or review of the financial statements - Grant Thornton Audit or review of the financial statements (EKJV) - Deloitte Tax compliance services - Grant Thornton Tax compliance services - SGC Ghana ASIC information - Grant Thornton Consolidated 2020 $ 2019 $ 160,000 134,000 79,450 10,000 72,219 - 89,450 72,219 249,450 206,219 77,262 74,000 30,172 - 22,197 725 67,430 4,710 64,100 - 30,218 99,640 21,216 22,869 27,024 - 276,496 265,067 Note 35. Contingent liabilities Native title claims have been made with respect to areas which include tenements in which the Group has interests. The Group is unable to determine the prospects for success or otherwise of the claims and, in any event, whether or not and to what extent the claims may significantly affect the Group or its projects. 71 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 36. Commitments Capital commitments Committed at the reporting date but not recognised as liabilities, payable: Property, plant and equipment Payments under the Pacominco Investment Agreement Lease commitments - tenements rent and rates Committed at the reporting date but not recognised as liabilities, payable: Within one year One to five years Lease commitments - finance* Committed at the reporting date and recognised as liabilities, payable: Within one year One to five years Total commitment Less: Future finance charges Net commitment recognised as liabilities Consolidated 2020 $ 2019 $ 3,491,875 9,380,618 13,766,640 13,526,480 983,384 3,266,396 983,384 3,266,396 4,249,780 4,249,780 - - - - - 3,808,130 2,067,676 5,875,806 (192,529) 5,683,277 * AASB 16 was adopted using the modified retrospective approach and as such the comparatives have not been restated. Current year leases are included on the face of the statement of financial position in accordance with AASB 16. Comparative year leases are disclosed above and not on the statement of financial position in accordance with AASB 117. Capital commitments relate to mining capital expenditure commitments relating to the East Kundana joint venture. Note 37. Related party transactions Parent entity Tribune Resources Limited is the parent entity. Subsidiaries Interests in subsidiaries are set out in note 40. Associates Interests in associates are set out in note 41. Joint operations Interests in joint operations are set out in note 42. Key management personnel Disclosures relating to key management personnel are set out in note 33 and the remuneration report included in the directors' report. 72 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 37. Related party transactions (continued) Transactions with related parties The following transactions occurred with related parties: Consolidated 2020 $ 2019 $ Payment for other expenses: Payment of royalties to Lake Grace Exploration Pty Ltd* via the East Kundana Joint Venture* Payment for consulting fees to Lake Grace Exploration Pty Ltd* Payment for executive accommodation fees to Lake Grace Exploration Pty Ltd* Reimbursement of operating expenses to Iron Resources Liberia Ltd** 62,451 - 54,000 413,973 121,861 19,852 81,000 473,410 Sale of wholly-owned subsidiary: Sale of Melville Parade Pty Ltd to Lake Grace Exploration Pty Ltd* 4,000,000 - * ** An entity in which Anthony Billis is a director From this total, $8,872 is still to be paid to Iron Resources Liberia Ltd. Receivable from and payable to related parties There were no trade receivables from or trade payables to related parties at the current and previous reporting date. Amounts to/from related parties There were no loans to or from related parties at the current and previous reporting date. Terms and conditions All transactions were made on normal commercial terms and conditions and at market rates. Note 38. Parent entity information Set out below is the supplementary information about the parent entity. Statement of profit or loss and other comprehensive income Profit after income tax Total comprehensive income Parent 2020 $ 2019 $ 45,083,082 128,371,640 45,083,082 128,371,640 73 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 38. Parent entity information (continued) Statement of financial position Total current assets Total assets Total current liabilities Total liabilities Equity Contributed equity Retained profits Total equity Parent 2020 $ 2019 $ 119,525,341 116,332,284 241,245,347 242,138,856 18,539,898 36,897,809 31,108,934 47,369,306 17,469,165 36,084,780 192,667,248 158,684,770 210,136,413 194,769,550 Guarantees entered into by the parent entity in relation to the debts of its subsidiaries The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2020 and 30 June 2019. Contingent liabilities The parent entity had no contingent liabilities as at 30 June 2020 and 30 June 2019 other than what is disclosed in note 35. Capital commitments Parent 2020 $ 2019 $ Committed at the reporting date but not recognised as liabilities, payable: Property, plant and equipment, as budgeted by the EKJV and payable in the next 5 years 2,618,906 7,035,464 Significant accounting policies The accounting policies of the parent entity are consistent with those of the Group, as disclosed in note 2, except for the following: ● ● ● Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity. Investments in associates are accounted for at cost, less any impairment, in the parent entity. Dividends received from subsidiaries are recognised as other income by the parent entity and its receipt may be an indicator of an impairment of the investment. Note 39. Acquisition of subsidiary 2020 There were no acquisitions in the year to 30 June 2020. 2019 Prometheus Developments Pte Ltd On 6 December 2018, Tribune Resources Limited acquired 100% of the issued capital of Singapore based Prometheus Developments Pte Ltd ('Prometheus') for a total consideration transferred of $25,025,000. This is a mining development company and it was acquired as Prometheus has the right to acquire an 80% economic interest and 40% legal interest in three mining tenements covering the Diwalwal Gold Project ('Project'). The acquisition was assessed as an asset acquisition rather than business combination. The deemed consideration was the issue of 5,500,000 shares with a deemed value of $25,025,000. 74 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 39. Acquisition of subsidiary (continued) On initial recognition, the fair value of shares issued has been determined by reference to the share price at date of acquisition of $4.55 per share. Details of the acquisition are as follows: Cash and cash equivalents Trade and other receivables Investment Plant and equipment Trade payables Net assets acquired Goodwill Acquisition-date fair value of the total consideration transferred Representing: Tribune Resources Limited shares issued to vendor Cash used to acquire business, net of cash acquired: Acquisition-date fair value of the total consideration transferred Less: cash and cash equivalents Less: shares issued by Company as part of consideration Net cash received Note 40. Interests in subsidiaries Fair value $ 21,478 47,497 647,299 4,259 (578,743) 141,790 24,883,210 25,025,000 25,025,000 25,025,000 (21,478) (25,025,000) (21,478) The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in note 2: Name Fort Accra Ltd (iv) Mount Manning Resources Pty Ltd (iii) Melville Parade Pty Ltd (v) Prometheus Developments Pte Ltd Prometheus Management Corporation (i) Rand Mining Limited Rand Exploration N.L. (ii) Tribune Resources (Ghana) Limited West African Drilling Ghana Ltd (iv) Principal place of business / Country of incorporation Ghana Australia Australia Singapore Philippines Australia Australia Ghana Ghana Ownership interest 2019 2020 % % 100.00% 100.00% - 100.00% 100.00% 44.19% 44.19% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 44.19% 44.19% 100.00% 100.00% 100% owned subsidiary of Prometheus Developments Pte Ltd (i) (ii) 100% owned subsidiary of Rand Mining Limited (iii) 50% owned subsidiary of Rand Mining Limited (iv) 100% owned subsidiary of Tribune Resources (Ghana) Limited (v) Sold on 29 June 2020 75 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 40. Interests in subsidiaries (continued) Summarised financial information Summarised financial information of the subsidiary with non-controlling interests that are material to the Group are set out below: Summarised statement of financial position Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities Net assets Summarised statement of profit or loss and other comprehensive income Revenue Expenses Profit/(loss) before income tax (expense)/benefit Income tax (expense)/benefit Profit/(loss) after income tax (expense)/benefit Other comprehensive income Total comprehensive income Statement of cash flows Net cash from/(used in) operating activities Net cash from investing activities Net cash used in financing activities Net increase/(decrease) in cash and cash equivalents Other financial information Profit/(loss) attributable to non-controlling interests Note 41. Interests in associates Rand Mining Limited 2019 2020 $ $ 65,426,490 94,454,355 28,859,748 26,451,328 94,286,238 120,905,683 4,372,754 22,728,597 4,638,458 3,926,194 8,298,948 27,367,055 85,987,290 93,538,628 3,229,014 123,521,963 (47,228,327) (5,767,140) (2,538,126) 76,293,636 (8,905,276) 1,001,636 (1,536,490) 67,388,360 - 340,534 (1,536,490) 67,728,894 (41,081,779) 47,738,209 3,210,375 82,832,719 (82,183,617) (7,249,340) (45,120,744) 48,387,311 (857,588) 37,612,633 Interests in associates are accounted for using the equity method of accounting. Information relating to associates that are material to the Group are set out below: Name Principal place of business / Country of incorporation Ownership interest 2019 2020 % % Paraiso Consolidated Mining Corporation Philippines 40.00% 40.00% 76 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 41. Interests in associates (continued) Summarised financial information Summarised statement of financial position Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities Net liabilities Summarised statement of profit or loss and other comprehensive income Revenue Expenses Loss before income tax Income tax (expense)/benefit Loss after income tax Other comprehensive income Total comprehensive income Reconciliation of the Group's carrying amount Opening carrying amount Additions Share of loss after income tax Closing carrying amount Paraiso Consolidated Mining Corporation 2019 2020 $ $ 175,501 244,507 5,179 2,948 420,008 8,127 (62,676) 14,567,818 41,995 6,507,448 14,505,142 6,549,443 (14,085,134) (6,541,316) 7,311 (8,037,409) - (6,969,219) (8,030,098) 200,947 (6,969,219) (190,511) (7,829,151) (7,159,730) 275,713 - (7,553,438) (7,159,730) - - - - - 647,299 (647,299) - During the previous financial year the Group held an investment in associate at a cost of $647,299. The associate had losses at 30 June 2019 greater than the investment amount. Given the losses were greater than the investment, under AASB 128 the Group's investment has been reduced to zero. The Group has losses of $5,237,968 (2019: $2,216,593) to offset against future profits. Note 42. Interests in joint operations The Group has recognised its share of jointly held assets, liabilities, revenues and expenses of joint operations. These have been incorporated in the financial statements under the appropriate classifications. Information relating to joint operations that are material to the Group are set out below: Name Principal place of business / Country of incorporation Ownership interest 2019 2020 % % East Kundana Joint Venture Australia 49.00% 49.00% 77 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 43. Cash flow information Reconciliation of profit after income tax to net cash from operating activities Profit after income tax (expense)/benefit for the year 47,353,849 72,264,057 Consolidated 2020 $ 2019 $ Adjustments for: Depreciation and amortisation Net loss on disposal of property, plant and equipment Share of loss - associates Foreign exchange differences Unwinding of interest Other non-operating items Sale of financial assets impairments Loss on disposal of subsidiary Impairment of receivables Impairment of financial assets Impairment of exploration and evaluation Other Change in operating assets and liabilities: Decrease/(increase) in trade and other receivables Decrease/(increase) in inventories Increase in deferred tax assets Decrease in trade and other payables Increase/(decrease) in provision for income tax Increase in deferred tax liabilities Increase in employee benefits Increase in other provisions 877,702 - 122,596 - - - 880,632 - (323,011) 18,739,016 20,489,671 - 647,299 121,394 25,679 (703,804) 488,990 - 30,915 1,764,270 14,394,247 32,569,281 - (168,414) 84,819 (884,296) (7,333,927) (62,297) (29,549,038) 62,834,354 (535,914) (964,844) (29,848,776) 35,565,501 3,005,577 - 102,170 244,742 69,736 78,820 Net cash from operating activities 14,738,697 227,642,299 Non-cash investing and financing activities Acquisition of plant and equipment by means of leases Additions to the right-of-use assets Shares issued on acquisition of subsidiary Consolidated 2020 $ 2019 $ - 7,422,863 3,328,768 - - 25,025,000 7,422,863 28,353,768 78 Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 43. Cash flow information (continued) Changes in liabilities arising from financing activities Consolidated Balance at 1 July 2018 Net cash used in financing activities Acquisition of assets by means of finance leases Balance at 30 June 2019 Net cash used in financing activities Recognised as assets on adoption of AASB 16 (note 2) Acquisition of leases Balance at 30 June 2020 Note 44. Earnings per share Earnings per share for profit from continuing operations Profit after income tax Non-controlling interest Lease liability $ 6,287,210 (3,932,700) 3,328,768 5,683,278 (5,744,190) 198,166 7,422,863 7,560,117 Consolidated 2020 $ 2019 $ 48,291,617 72,464,004 (37,612,633) 857,588 Profit after income tax attributable to the owners of Tribune Resources Limited 49,149,205 34,851,371 Weighted average number of ordinary shares used in calculating basic earnings per share 55,292,725 53,122,201 Weighted average number of ordinary shares used in calculating diluted earnings per share 55,292,725 53,122,201 Number Number Basic earnings per share Diluted earnings per share Earnings per share for loss from discontinued operations Loss after income tax attributable to the owners of Tribune Resources Limited Cents Cents 88.89 88.89 65.61 65.61 Consolidated 2020 $ 2019 $ (937,768) (199,947) Number Number Weighted average number of ordinary shares used in calculating basic earnings per share 55,292,725 53,122,201 Weighted average number of ordinary shares used in calculating diluted earnings per share 55,292,725 53,122,201 Basic earnings per share Diluted earnings per share 79 Cents Cents (1.70) (1.70) (0.38) (0.38) Tribune Resources Limited Notes to the financial statements 30 June 2020 Note 44. Earnings per share (continued) Earnings per share for profit Profit after income tax Non-controlling interest Consolidated 2020 $ 2019 $ 47,353,849 72,264,057 (37,612,633) 857,588 Profit after income tax attributable to the owners of Tribune Resources Limited 48,211,437 34,651,424 Weighted average number of ordinary shares used in calculating basic earnings per share 55,292,725 53,122,201 Weighted average number of ordinary shares used in calculating diluted earnings per share 55,292,725 53,122,201 Number Number Basic earnings per share Diluted earnings per share Note 45. Events after the reporting period Cents Cents 87.19 87.19 65.23 65.23 The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has not significantly impacted the Group up to 30 June 2020, it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided. On 20 August 2020, The Northern Star entities discontinued their counterclaim for the payment of an increase to the fixed rate for processing ore under the Ore Treatment Agreement. No other matter or circumstance has arisen since 30 June 2020 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years. 80 Tribune Resources Limited Directors' declaration 30 June 2020 In the directors' opinion: ● ● ● ● the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; the attached financial statements and notes comply with International Financial Reporting Standards as issued by the International Accounting Standards Board as described in note 2 to the financial statements; the attached financial statements and notes give a true and fair view of the Group's financial position as at 30 June 2020 and of its performance for the financial year ended on that date; and there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. The directors have been given the declarations required by section 295A of the Corporations Act 2001. Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001. On behalf of the directors ___________________________ Anthony Billis Director 29 September 2020 Perth 81 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF TRIBUNE RESOURCES LIMITED Opinion We have audited the financial report of Tribune Resources Limited (the Company) and its subsidiaries (the Group), which comprises the statement of financial position as at 30 June 2020, the statement of profit or loss and other comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors' declaration. In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: (i) Giving a true and fair view of the Group's financial position as at 30 June 2020 and of its financial performance for the year then ended; and (ii) Complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the 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 confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 82Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key Audit Matter How our audit addressed this matter Mine Development Assets Refer to Note 16 in the financial statements The Group has mine development assets with a carrying value of $47,824,345 as at 30 June 2020. Our audit procedures included: This is considered a key audit matter due to the significant to determine the appropriate carrying value at the reporting date. The significant judgements include: judgments made by management • Application of the units of production method in determining the amortisation charge for the year. This included determining the appropriate ore reserve estimate and the cost allocation attributable to each mine development asset; and • Assessing whether any impairment indicators existed at the reporting date in relation to the mine development assets. Inventory – Valuation and Existence Refer to Note 11 in the financial statements The Group’s inventories are mainly comprised of gold bullion and ore stockpiles with carrying values of $103,290,045 and $60,167,686 respectively as at 30 June 2020. The valuation and existence of inventories are considered a key audit matter as it is the most significant item on statement of financial position and the judgments made by management to determine the appropriate carrying value at the reporting date. The significant judgements include: • Valuation of inventories is based on an inventory costing model developed by management, which considers the direct costs (cash and non-cash) incurred at each stage of the production process; • Estimation of the quantity of ore stockpiles based on survey reports produced by a management expert; • Estimation of the processing costs of the ore stockpiles; and • Estimation of the gold quantity contained in the ore stockpiles. • • • • inputs Reviewing management’s amortisation models and agreeing key to supporting information. This included an assessment of the work performed by the management’s expert in respect of the ore reserve estimate, including the competency and objectivity of the expert; Critically management’s assessment of indicators and conclusion reached; Testing the mathematical accuracy of the rates applied for amortisation; and Reviewing component auditors’ audit working papers. evaluating impairment assessing and Our audit procedures included: • Reviewing and assessing the methodology and key assumptions in the Group’s inventory costing model and agreeing key inputs to supporting information. This included an assessment of the work performed by management’s expert in respect of the ore stockpiles quantity, including the competency and objectivity of the expert; • Obtaining third party confirmation on existence of gold bullion on hand; • Reviewing component auditors’ audit working paper; • Critically assessing and evaluating management’s assessment of net realisable value; • Performing analytical review on cost per ton and obtaining an explanation from management for any significant variance; and • Reviewing the appropriateness of disclosure in the financial statements. 83Other Information 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 the 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. 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 the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/auditors_responsibilities/ar1.pdf. This description forms part of our auditor's report. 84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 Tribune 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. RSM AUSTRALIA PARTNERS Perth, WA Dated: 29 September 2020 ALASDAIR WHYTE Partner 85Tribune Resources Limited Shareholder information 30 June 2020 The shareholder information set out below was applicable as at 8 September 2020. Distribution of equitable securities Analysis of number of equitable security holders by size of holding: 1 to 1,000 1,001 to 5,000 5,001 to 10,000 10,001 to 100,000 100,001 and over Holding less than a marketable parcel Equity security holders Twenty largest quoted equity security holders The names of the twenty largest security holders of quoted equity securities are listed below: Number of holders of ordinary shares 361 399 129 149 41 1,079 77 Ordinary shares % of total Number held 11,045,101 8,454,000 8,020,000 3,531,861 2,849,256 2,277,781 942,261 909,374 850,000 790,057 500,000 450,585 416,166 331,138 303,442 300,000 300,000 280,000 268,569 260,863 shares issued 21.05 16.11 15.29 6.73 5.43 4.34 1.80 1.73 1.62 1.51 0.95 0.86 0.79 0.63 0.58 0.57 0.57 0.53 0.51 0.50 43,080,454 82.10 EVOLUTION MINING LIMITED TRANS GLOBAL CAPITAL LTD SIERRA GOLD LTD J P MORGAN NOMINEES AUSTRALIAN PTY LTD HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED MARFORD GROUP PTY LTD HAVANNAH INVESTMENT PTY LTD BNP PARIBAS NOMINEES PTY LTD RAYPOINT PTY LTD CARSTOWE HOLDINGS PTE LTD VALUE NOMINEES PTY LTD CITICORP NOMINEES PTY LTD BELLVIEW INVESTMENTS PTE LTD NERO RESOURCE FUND PTY LTD MR MARK DAVID DELROY MR SHANE COLIN MARDON MRS JASMINE FANCES GREEN DALY SF TY LTD MR JOHN FRANCIS WYNNE HALKIN PTY LTD Unquoted equity securities There are no unquoted equity securities. 86 Tribune Resources Limited Shareholder information 30 June 2020 Substantial holders The names of the substantial shareholders disclosed in the Company as substantial shareholders at 8 September 2020 are: ANTON BILLIS AND RELATED PARTIES SIERRA GOLD LTD EVOLUTION MINING LIMITED TRANS GLOBAL CAPITAL LIMITED HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED MS PING CHEN (AND GENERAL ENERGY INTERNATIONAL HOLDINGS LIMITED) PROMETHEUS MINERALS LIMITED Ordinary shares % of total Number held 17,091,136 17,091,136 11,045,101 8,454,000 6,441,922 6,156,773 5,500,000 shares issued 32.57 32.57 21.05 16.11 12.28 11.73 10.48 On-market buy-back On 5 February 2020, the Company announced it would undertake an on-market buy-back of ordinary shares up to a maximum of 4,900,000 ordinary fully paid shares. During the financial year, the Company purchased and cancelled 3,034,946 shares. The remaining number of shares to be bought-back is 1,865,054. Voting rights The voting rights attached to ordinary shares are set out below: Ordinary shares On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote. There are no other classes of equity securities. 87 Tribune Resources Limited Shareholder information 30 June 2020 Tenements Description Western Australia, Australia Kundana Kundana Kundana Kundana Kundana Kundana Kundana Kundana Kundana Kundana Kundana West Kundana West Kundana West Kundana West Kundana Seven Mile Hill Seven Mile Hill Seven Mile Hill Seven Mile Hill Seven Mile Hill Seven Mile Hill Seven Mile Hill Seven Mile Hill Seven Mile Hill Seven Mile Hill West Kimberly*** Red Lake 1*** Red Lake 2*** Red Lake 3*** Blue Dam*** Yikari*** Yikari*** Ghana, West Africa Japa Concession. Mindanao, Philippines Diwalwal Gold Project Diwalwal Gold Project Diwalwal Gold Project Tenement number Interest owned* % M15/1413 M15/993 M16/181 M16/182 M16/308 M16/309 M16/325 M16/326 M16/421 M16/924 M16/428 M16/213 M16/214 M16/218 M16/310 M26/563 M15/1233 M15/1234 M15/1291 M15/1388 M15/1394 M15/1409 M15/1743 P26/4173 P15/6370 E04/2548 P15/6398 P15/6399 P15/6400 P15/6401 P26/4476 P26/4477 729 Area** 452 Area** Upper Ulip Area** 49.00 49.00 49.00 49.00 49.00 49.00 49.00 49.00 49.00 49.00 49.00 24.50 24.50 24.50 24.50 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 40.00 40.00 40.00 * ** Includes Rand Mining Ltd’s, Rand Exploration NL’s and Prometheus Developments Pte Ltd where applicable. Prometheus has entered an Investment Agreement with Paraiso Consolidated Mining Corporation ('Pacominco') and a Joint Venture agreement with JB Management Mining Corporation ('JB Management' or 'JBMMC'). These agreements allow Prometheus to acquire an 80% economic interest and 40% legal interest in three mining tenements covering the Diwalwal Gold Project. Through the JB Management Joint Venture Agreement, Tribune Resources Ltd (via its 100% owned subsidiary Prometheus Developments Pte Ltd) is earning a 40% legal interest and 80% economic interest in the 452 Area. To date Prometheus Developments is yet to earn any legal or economic interest in this JV as the JV company is yet to be incorporated. *** Under application. 88 

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