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
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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
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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').
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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
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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.
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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.
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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