United Uranium Limited
(ACN123 920 990)
Annual Report
For the Financial Year Ended 30 June 2010
Annual Report 2010
United Uranium Limited
CONTENTS
Corporate Directory
Directors’ Report
Auditor’s Independence Declaration
Statement of Comprehensive Income
Statement of Financial Position
Statement of Cash flow
Statement of Changes in Equity
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report To The Members
of United Uranium Limited
Corporate Governance Statement
Additional Shareholder Information
Schedule of Mineral Tenements
3
4
15
16
17
18
19
20
48
49
51
58
60
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Annual Report 2010
United Uranium Limited
CORPORATE DIRECTORY
EXECUTIVE CHAIRMAN
Xing Yan (Simon)
EXECUTIVE DIRECTOR
George Lazarou
NON-EXECUTIVE DIRECTOR
Eric Kong
COMPANY SECRETARY
Cecilia Chiu
PRINCIPAL & REGISTERED OFFICE
Suite 1, 23 Richardson Street
SOUTH PERTH WA 6151
Telephone: (08) 6436 1888
Facsimile: (08) 6436 1899
AUDITORS
Bentleys
Level 1, 12 Kings Park Road
WEST PERTH WA 6005
SHARE REGISTRAR
Advanced Share Registry Services
150 Stirling Highway
NEDLANDS WA 6009
Telephone: (08) 9389 8033
Facsimile: (08) 9389 7371
STOCK EXCHANGE LISTING
Australian Securities Exchange
(Home Exchange: Perth, Western Australia)
Codes: UUL; UULOA
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Annual Report 2010
United Uranium Limited
DIRECTORS' REPORT
The directors of United Uranium Limited submit herewith the financial report of the company for the financial
year ended 30 June 2010. In order to comply with the provisions of the Corporations Act 2001, the directors
report as follows:
1.
DIRECTORS
The names and details of the Company’s directors in office during and since the financial year end
until the date of the report are as follows. Directors were in office for the entire period unless
otherwise stated.
Mr Xing Yan (Simon)
Mr George Lazarou
Mr Eric Kong
Executive Chairman
Executive Director
Non-Executive Director
INFORMATION ON DIRECTORS
Xing Yan (Simon)
Executive Chairman
Experience
Mr Yan has over 30 years of senior level management experience in
international mining trade. He was part of the management team of China
National Minerals and Metals Import & Export Corporation (MINMETALS).
He settled down in Western Australia and established a number of
successful private enterprises. The contact and knowledge about the two
country’s business systems, remains him widely sought as a consultant for
international trade issues.
Interest in Shares
Interest in Options
3,650,000 Fully paid Ordinary Shares
1,825,000 20 cent options exercisable on or before 30 June 2012
George Lazarou
Executive Director
Qualifications
BCom, CA
Experience
Mr Lazarou is a qualified Chartered Accountant who has over 16 years
experience, including 5 years as a Partner with second tier firm Bentleys,
specialising in the areas of Audit, Advisory and Corporate Services. Mr
Lazarou has extensive skills in the areas of audit, corporate services, due
diligence, independent expert reports, merger & acquisitions and valuations.
Mr Lazarou also brings with him a high level of commercial skills having
worked closely with publicly listed companies in the mining, building,
engineering, environmental and construction industries. Mr Lazarou is also a
non-executive director of Cortona Resources Ltd.
Interest in Shares
Interest in Options
350,000 Fully paid Ordinary Shares
175,000 20 cent options exercisable on or before 30 June 2012
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Annual Report 2010
United Uranium Limited
DIRECTORS' REPORT (Continued)
INFORMATION ON DIRECTORS (Continued)
Eric Kong
Non-Executive Director
Qualifications
MBA
Experience
Mr Kong holds an MBA from University of Western Australia and has
extensive corporate experience in Fortune 500 companies in the United
States and Asia where he is responsible for strategic planning and business
development in Asia Pacific. Mr Kong is an experienced international player
with intricate knowledge of global business models, trends and high-level
expertise in both eastern and western management styles.
Interest in Shares
Interest in Options
79,500 Fully paid Ordinary Shares
39,750 20 cent options exercisable on or before 30 June 2012
Directorships of other listed companies
Directorships of other listed companies held by directors in the 3 years immediately before the end
of the financial year are as follows:
Name
Xing Yan (Simon)
George Lazarou
Eric Kong
Company
-
Cortona Resources Limited
Coziron Resources Limited
-
Period of directorship
-
Appointed 12 January 2006
22 May 2006 – 15 August 2007
-
COMPANY SECRETARY
The following person has held the position of company secretary during or at the end of the financial
year:
Cecilia Chiu
Ms Chiu is a Certified Practising Accountant and holds a Bachelor of Commerce degree from the
University of Western Australia. She has more than 8 years accountancy experience. Ms Chiu has
previously worked as an auditor at Ernst & Young, and for 5 years at Ord Partners in West Perth
specialising in mining industry audit and assurance services.
5
Annual Report 2010
United Uranium Limited
DIRECTORS' REPORT (Continued)
2.
PRINCIPAL ACTIVITIES
The principal activity of the Company during the financial year was uranium exploration. There were
no significant changes in the nature of the Company’s principal activities during the financial year.
3.
OPERATING RESULTS
The loss of the Company after providing for income tax amounted to $486,220 (2009: loss of
$240,255)
4.
DIVIDENDS PAID OR RECOMMENDED
The directors do not recommend the payment of a dividend and no amount has been paid or
declared by way of a dividend to the date of this report.
5.
REVIEW OF OPERATIONS
Review of Operations
1.1 Projects
McArthur River Project (EL25839)
The Company received the final processed data for the airborne electromagnetic survey (VTEM)
flown in conjunction with Geoscience Australia over the McArthur River Project. The VTEM survey
consisted of east west flight lines on 250m spacing for a total of 981 flight line kilometres.
Processing and initial interpretation of the final data by the Company’s consultant geophysicist,
Mapitt Geosolutions identified four target areas; T1 to T4. T1 and T4 represent deep conductors that
may represent massive sulphide targets beneath flat lying sandstone sequences. T2 and T3 are
broad shallow conductive zones that possibly represent uranium targets. The top of the T1
conductor has been interpreted from the airborne EM survey data to be about 90m below ground
within the basement rocks.
Field based exploration completed over the T1 to T3 targets consisted of soil sampling (T1 only),
prospecting, scintillometer and XRF surveys for a total of 154 scintillometer and XRF points, 22 soil
samples and 2 rock chip samples. The flat lying fine grained sandstone beds overlying the T1
coincident deep airborne EM conductor and magnetic anomaly appear to have masked any potential
geochemical anomalism associated with the target zone, with no visible signs of mineralisation or
alteration observed. Wide spaced scintillometer and XRF traverses were completed across the T2
and T3 broad conductive zones, with results indicating that potential for significant near surface
uranium and / or base metal mineralisation is limited.
A program of ground EM commenced during the June quarter to follow up on the T1 and T4 targets
defined from the previously completed airborne EM survey, however, due to problems with the
ground conditions the ground EM was unable to be completed.
As a result of not being able to complete the ground EM, the Company commissioned a Gradient
Array IP survey over the T1 target, which commenced in July 2010. Target zones defined from the
Gradient Array IP will be followed up with a Dipole – Dipole IP traverse to assist in defining target
depth and thickness. Planning of potential follow up drilling of the T1 target is contingent on the
results of the IP surveys, with scope to conduct initial drill testing before the end of the 2010 field
season.
A successful outcome from the work program on the T1 target is likely to result in the completion of
further ground based geophysics over T4 and other second order airborne EM targets within the
project area, with scope that this work could be completed later in the year.
6
Annual Report 2010
United Uranium Limited
DIRECTORS' REPORT (Continued)
5.
REVIEW OF OPERATIONS (Continued)
Figure 1: McArthur River VTEM Airborne Electromagnetic Survey
Pine Creek Project (EL24815)
The Company received the preliminary processed data for the airborne electromagnetic survey
(TEMPEST) flown in conjunction with Geoscience Australia over the Pine Creek Project (EL24815).
The TEMPEST survey consisted of east west flight lines on 555m spacing for a total of 794 flight line
kilometres.
Processing and interpretation of the preliminary data by the Company’s consultant geophysicist has
identified two target areas in the southern portion of the project: Stray Creek West and The Pines
South. Both targets are adjacent to previously defined radiometric anomalies.
Stray Creek West is adjacent to the Stray Creek radiometric anomaly and consists of a deep
conductive zone coincident with an aeromagnetic anomaly interpreted to represent a palaeochannel.
Previous exploration completed by the Company at Stray Creek has consisted of wide spaced
ground spectrometer traverses and a soil sampling program, which have in part extended in to the
Stray Creek West target area. The soil sampling has returned some weak to moderately anomalous
uranium-in-soil results in the northern portion of the target area.
A field program in late 2009 was designed to ground truth the interpreted palaeochannel in the Stray
Creek West target area, with work undertaken consisting of an XRF survey on four east – west
trending traverses across the target area, for a total of 364 XRF data points.
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Annual Report 2010
United Uranium Limited
DIRECTORS' REPORT (Continued)
5.
REVIEW OF OPERATIONS (Continued)
Field observations of the geology identified outcropping limestone in the majority of the target area
and there was no field evidence to support the presence of the interpreted palaeochannel. The XRF
survey identified a coincident Pb – Zn zone mid way along the second traverse, with values up to 251
ppm Pb and 546 ppm Zn. A number of sporadic anomalous uranium values, peaking at 26ppm,
were also returned.
The Company completed infill XRF traverses and soil samples on the Pb – Zn zone during the June
quarter, completing a total of 124 XRF readings and soil samples, and collecting three rock chip
samples. The soil samples and rock chip samples were assayed for a suite of elements consisting of
Au, Ag, Pt, Pd, Cu, Pb, Zn, Ni, Co, As, Mn, Bi and Mo. The work has defined a coherent low order
Pb – Zn anomaly, with maximum assays of 267ppb Pb and 218ppm Zn, located in an apparent
demagnetised zone.
A Gradient Array IP survey to cover the anomalous Pb – Zn zone has been commissioned and is
planned to commence in July 2010. A positive outcome from the Gradient Array IP survey will result
in the completion of follow up Dipole – Dipole IP.
This work is intended to provide enhanced definition of the potential Pb – Zn mineralised zone to
enable the planning of potential follow up drilling.
A low level detailed aeromagnetic (radiometric) survey was completed in the southern portion of the
Pine Creek project area during June 2010 with the data currently being interpreted. It is expected
that this data will assist in the targeting of potential drilling to test the uranium prospectivity of the
Stray Creek target area.
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Annual Report 2010
United Uranium Limited
DIRECTORS' REPORT (Continued)
5.
REVIEW OF OPERATIONS (Continued)
Figure 2: Pine Creek TEMPEST Airborne Electromagnetic Survey
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Annual Report 2010
United Uranium Limited
5.
REVIEW OF OPERATIONS (Continued)
DIRECTORS' REPORT (Continued)
Dunmarra Basin (EL25838) and Wiso (EL25835)
The field exploration programs completed at Dunmarra and Wiso were both designed to complete
reconnaissance prospecting over regional radiometric anomalies defined from the reprocessing of
the NTGS regional radiometric data. Work completed consisted of soil sampling, prospecting,
scintillometer and XRF surveys for a total of 25 soil samples, XRF and scintillometer data points at
Dunmarra and a total of 57 scintillometer points, 91 XRF points, 38 soil samples and 7 rock chip
samples at Wiso. The results from both programs indicate that there is limited potential for the
definition of significant near surface uranium, gold or base metal mineralisation. The Board is
currently reviewing its options in regards to both tenements.
1.2 Corporate
In October the Company raised $18,718 through a one for two non-renounceable option entitlements
issue to its shareholders at 0.1 cents per option through the issuing of 18,717,895 new options to
subscribe for fully paid ordinary shares in the Company, and are exercisable at 20 cents each on or
before 30 June 2012.
6.
SIGNFICANT CHANGES IN STATE OF AFFAIRS
There were no significant changes in the state of affairs of the Company during the financial year.
7.
AFTER BALANCE DATE EVENTS
Except for the below, the Directors are not aware of any other matters or circumstances that have
arisen since the end of the financial year which significantly affected or may significantly affect the
operations of the Company, the results of those operations, or the state of affairs of the Company in
future financial years.
• On 9 August 2010, the Company relinquished its interest in ELA 25837; and
• On 13 August 2010, as part of its application for a drilling permit on EL 25839, the Company
provided the Department of Resources with a Bank Guarantee amounting to $6,569 as
security.
8.
MEETINGS OF DIRECTORS
The number of directors' meetings held during the financial year each director held office and the
number of meetings attended by each director was:
Director
Xing Yan
George Lazarou
Eric Kong
Directors Meetings
Number
Eligible to
Attend
2
2
2
Meetings
Attended
2
2
2
The Company does not have a formally constituted audit committee as the board considers that the
company’s size and type of operation do not warrant such a committee.
9.
FUTURE DEVELOPMENTS
The Company will continue its mineral exploration activity at and around its exploration projects with
the object of identifying commercial resources.
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Annual Report 2010
United Uranium Limited
10. ENVIRONMENTAL ISSUES
DIRECTORS' REPORT (Continued)
The Company is aware of its environmental obligations with regards to its exploration activities and
ensures that it complies with all regulations when carrying out any exploration work. The directors of
the Company are not aware of any breach of environmental regulations for the year under review.
The directors have considered the National Greenhouse and Energy Reporting Act 2007 (the NGER
Act) which introduces a single national reporting framework for the reporting and dissemination of
information about the greenhouse gas emissions, greenhouse gas projects, and energy use and
production of corporations. At the current stage of development, the directors have determined that
the NGER Act will have no effect on the company for the current nor subsequent financial year. The
directors will reassess this position as and when the need arises.
11. REMUNERATION REPORT
Remuneration Policy
The remuneration policy of the Company has been designed to align director and executive
objectives with shareholder and business objectives by providing a fixed remuneration component
which is assessed on an annual basis in line with market rates and offering specific long-term
incentives based on key performance areas affecting the Company’s financial results. The board
believes the remuneration policy to be appropriate and effective in its ability to attract and retain the
best directors and executives to run and manage the Company.
The board’s policy for determining the nature and amount of remuneration for board members and
senior executives of the Company is as follows:
The remuneration policy, setting the terms and conditions for the executive directors and other senior
executives, was developed by the board. All executives receive a base salary (which is based on
factors such as length of service and experience) and superannuation. The board reviews executive
packages annually by reference to the Company’s performance, executive performance and
comparable information from industry sectors and other listed companies in similar industries.
The board may exercise discretion in relation to approving incentives, bonuses and options. The
policy is to attract the highest calibre of executives and reward them for performance that results in
long-term growth in shareholder wealth.
Executives are also entitled to participate in the employee share and option arrangements.
The executive directors receive a superannuation guarantee contribution required by
government, which is currently 9%, and do not receive any other retirement benefits.
the
All remuneration paid to directors and executives is valued at the cost to the Company and
expensed. Shares given to directors and executives are valued as the difference between the market
price of those shares and the amount paid by the director or executive. Options are valued using the
Black-Scholes method.
The board policy is to remunerate non-executive directors at market rates for comparable companies
for time, commitment and responsibilities. The board determines payments to the non-executive
directors and reviews their remuneration annually, based on market practice, duties and
accountability. Independent external advice is sought when required. The maximum aggregate
amount of fees that can be paid to non-executive directors is subject to approval by shareholders at
the Annual General Meeting, (currently $250,000). Fees for non-executive directors are not linked to
the performance of the Company. However, to align directors’ interests with shareholder interests,
the directors are encouraged to hold shares in the company and are able to participate in the
employee option plan.
Performance based remuneration
The Company has no performance based remuneration component built into director and executive
remuneration packages.
11
Annual Report 2010
United Uranium Limited
11. REMUNERATION REPORT (Continued)
DIRECTORS' REPORT (Continued)
Company performance, shareholder wealth and director’s and executive’s remuneration
The remuneration policy has been tailored to increase goal congruence between shareholders and
directors and executives. Currently, this is facilitated through the issue of options to the majority of
directors and executives to encourage the alignment of personal and shareholder interests. The
company believes the policy will be effective in increasing shareholder wealth. For details of directors
and executives interests in options at year end, refer note 15 (f) of the financial statements.
Employment contracts of key management personnel
For details of service agreements between key management personnel and the Company, refer note
15 of the financial statements.
Compensation of directors and executive for the year ended 30 June 2010
SHORT-TERM BENEFITS
POST EMPLOYMENT
SHARE-BASED PAYMENT
TOTAL
Salary
& Fees
Cash
Bonus
Non-
Monetary
Superannuation
Retirement
Benefits
Equity
Options
$
-
-
-
-
62,000
60,000
Directors
(Simon) Xing Yan – Executive Chairman
-
2010 100,000
2009
-
58,333
George Lazarou – Executive Director
-
2010
2009
-
Eric Kong – Non-Executive Director
2010
2009
Executive
Cecilia Chiu – Company Secretary *
2010
2009
Total Remuneration
2010 250,000
2009 203,933
45,600
45,600
42,400
40,000
-
-
-
-
-
-
-
-
-
-
-
-
9,000
5,250
5,580
5,400
3,600
3,600
-
-
18,180
14,250
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 109,000
63,583
-
-
-
67,580
65,400
-
-
-
-
46,000
43,600
45,600
45,600
- 268,180
- 218,183
* Athena Corporate Pty Ltd, a company Ms Chiu has an interest in, receives fees from United Uranium
Limited for corporate, accounting and secretarial services on commercial terms.
Compensation options granted during the year ended 30 June 2010
No compensation options were granted to directors and executive during the financial year.
Performance income as a proportion of total income
No performance based bonuses have been paid to directors and executives during the financial year.
12. OPTIONS
At the date of this report unissued ordinary shares of the Company under option are:
Expiry Date
Exercise Price
Number of Shares
30 June 2012
$0.20
18,712,576
5,319 ordinary shares have been issued as a result of the exercise of options during or since the end
of the financial year.
12
Annual Report 2010
United Uranium Limited
DIRECTORS' REPORT (Continued)
13.
INDEMNIFYING OFFICERS OR AUDITOR
During or since the end of the financial year the Company has given an indemnity or entered into an
agreement to indemnify, or paid or agreed to pay insurance premiums as follows:
The Company has entered into agreements to indemnify all Directors and provide access to
documents, against any liability arising from a claim brought by a third party against the Company.
The agreement provides for the company to pay all damages and costs which may be awarded
against the Directors.
The Company has paid premiums to insure each of the directors against liabilities for costs and
expenses incurred by them in defending any legal proceedings arising out of their conduct while
acting in the capacity of director of the company, other than conduct involving a willful breach of duty
in relation to the Company. The amount of the premium was $7,645. No indemnity has been paid to
auditors.
14. PROCEEDINGS ON BEHALF OF COMPANY
No person has applied for leave of Court to bring proceedings on behalf of the company or 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 any part of these proceedings.
The Company was not a party to any such proceedings during the year.
15. AUDITORS INDEPENDENCE DECLARATION
The lead auditor’s independence declaration for the year ended 30 June 2010 has been received
and can be found on page 14 of annual report.
16. NON-AUDIT SERVICES
The board of directors is satisfied that the provision of non-audit services performed during the year
by the Company’s auditors is compatible with the general standard of independence for auditors
imposed by the Corporations Act 2001. The directors are satisfied that the services disclosed below
did not compromise the external auditor’s independence for the following reason:
• The nature of the services provided do not compromise the general principles relating to
auditors independence as set out in the APES 110 (Code of Ethics for Professional
Accountants)
• No fees were paid or payable to the auditors for non-audit services performed during the
year ended 30 June 2010.
The board of directors is satisfied that no non-audit services were performed during the year by the
Company’s auditors.
Signed in accordance with a resolution of the Board of Directors.
George Lazarou
Executive Director
Dated this 26th day of August 2010
13
Annual Report 2010
United Uranium Limited
The review of exploration activities contained in this report is based on information
compiled by Ian Prentice, a Director of independent consultants Zephyr Consulting Group
Pty Ltd, and a member of the Australian Institute of Mining and Metallurgists. He has
sufficient experience which is relevant to the style of mineralisation under consideration
and to the activity which he is undertaking to qualify as a Competent Person as defined in
the December 2004 edition of the Australian Code for reporting of Exploration Results,
Mineral Resources and Ore Reserves (JORC Code). Ian Prentice has consented to the
inclusion in this report of the matters based on his information in the form and context in
which it appears.
14
To The Board of Directors
Auditor’s Independence Declaration under Section 307C of the Corporations
Act 2001
This declaration is made in connection with our audit of the financial report of United Uranium Limited for
the year ended 30 June 2010 and in accordance with the provisions of the Corporations Act 2001.
We declare that, to the best of our knowledge and belief, there have been:
no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit;
no contraventions of the Code of Professional Conduct of the Institute of Chartered Accountants in
Australia in relation to the audit.
Yours faithfully
BENTLEYS
Chartered Accountants
CHRIS WATTS CA
Director
DATED at PERTH this 26th day of August 2010
Annual Report 2010
United Uranium Limited
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2010
Interest Revenue
Employee benefit expenses
Occupancy expenses
Depreciation expense
Consultancy expenses
Legal and compliance
Exploration expenses incurred
Impairment provision financial assets at fair value
Impairment provision capitalised exploration
expenditure
Administration expenses
Year ended
30 June 2010
Year ended
30 June 2009
Note
$
163,250
(231,600)
(27,025)
(1,251)
(49,099)
(57,549)
-
(150,728)
(94,562)
(37,656)
$
262,321
(177,583)
(27,000)
(706)
(49,011)
(59,285)
(7,777)
(161,618)
-
(19,596)
Loss before income tax expense
Income tax expense
Net loss for the year
2
4
(486,220)
(240,255)
-
-
(486,220)
(240,255)
Other comprehensive income
-
-
Total comprehensive income
(486,220)
(240,255)
Basic loss per share (cents per share)
18
(1.3)
(0.6)
The accompanying notes form part of these financial statements.
16
Annual Report 2010
United Uranium Limited
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2010
Note
2010
$
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
TOTAL CURRENT ASSETS
NON CURRENT ASSETS
Exploration and evaluation assets
Financial assets
Plant and equipment
TOTAL NON CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Provision
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued Capital
Reserves
Accumulated Losses
TOTAL EQUITY
5
6
7
8
9
10
11
12
13
14
2009
$
4,467,452
34,993
4,502,445
549,486
196,558
6,261
752,305
3,970,186
63,635
4,033,821
683,183
45,829
5,010
734,022
4,767,843
5,254,750
84,570
20,937
105,507
105,507
96,562
10,411
106,973
106,973
4,662,336
5,147,777
5,443,324
18,713
(799,701)
4,662,336
5,274,615
186,643
(313,481)
5,147,777
The accompanying notes form part of these financial statements.
17
Annual Report 2010
United Uranium Limited
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2010
Year ended
30 June 2010
$
Note
Year ended
30 June 2009
$
Cash Flows from Operating Activities
- Interest received
- Payments to suppliers and employees
- Payments for exploration and evaluation
125,679
(380,067)
(251,717)
Net cash used in operating activities
19 (i)
(506,105)
Cash Flows from Investing Activities
- Purchase of available for sale investment
- Purchase of plant and equipment
- Refund from share allocation
Net cash provided by/(used in) investing
activities
Cash Flows from Financing Activities
- Proceeds from issue of shares and options
- (Payment)/Recovery for share issue costs
Net cash provided by financing activities
Net decrease in cash held
Cash at beginning of financial year
Cash at end of financial year
5
5
-
-
8,060
8,060
19,782
(19,003)
779
(497,266)
4,467,452
3,970,186
282,197
(314,831)
(177,658)
(210,292)
(15,000)
(3,085)
-
(18,085)
4,000
5,665
9,665
(218,712)
4,686,164
4,467,452
The accompanying notes form part of these financial statements
18
Annual Report 2010
United Uranium Limited
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2010
Issued
Capital
$
Balance at 1 July 2008
5,264,750
Loss for the year
Other comprehensive
income
Total comprehensive
income for the year
Options converted
Capital raising refund
-
-
-
4,200
5,665
Asset revaluation reserve
-
Option
Reserve
$
186,843
Financial
Asset
Reserves
$
65,765
-
-
-
(200)
-
-
-
-
-
-
-
(65,765)
Accumulated
Losses
Total
$
(73,226)
$
5,444,132
(240,255)
(240,255)
-
-
(240,255)
(240,255)
-
-
-
4,000
5,665
(65,765)
Balance at 30 June 2009
5,274,615
186,643
-
(313,481)
5,147,777
Issued
Capital
Option
Reserve
Balance at 1 July 2009
5,274,615
$
$
186,643
Loss for the year
Other comprehensive
income
Total comprehensive
income for the year
-
-
-
-
-
-
Options converted
1,069
18,713
Transfer of option reserves
to issued capital
186,643
(186,643)
Capital raising costs
(19,003)
-
Balance at 30 June 2010
5,443,324
18,713
Financial
Asset
Reserves
$
-
-
-
-
-
-
-
-
Accumulated
Losses
Total
$
(313,481)
$
5,147,777
(486,220)
(486,220)
-
-
(486,220)
(486,220)
-
-
-
19,782
-
(19,003)
(799,701)
4,662,336
.
The accompanying notes form part of these financial statements
19
Annual Report 2010
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The financial report is a general purpose financial report that has been prepared in accordance with
Australian Accounting Standards including Australian Accounting Interpretations, other authoritative
pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.
The financial report covers the Company of United Uranium Limited and has been prepared in
Australian dollars. United Uranium Limited is a listed public company, incorporated and domiciled in
Australia.
Australian Accounting Standards set out accounting policies that the AASB has concluded would
result in a financial report containing relevant and reliable information about transactions, events
and conditions to which they apply. Compliance with Australian Accounting Standards ensures that
the financial statements and notes also comply with International Financial Reporting Standards.
The following is a summary of the material accounting policies adopted by the entity in the
preparation of the financial report. The accounting policies have been consistently applied, unless
otherwise stated.
The financial report has been prepared on an accruals basis and is based on historical costs
modified by the revaluation of selected non-current assets, financial assets and financial liabilities
for which the fair value basis of accounting has been applied.
(a) Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other
short-term highly liquid investments with original maturities of three months or less, and bank
overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the
balance sheet.
For the purposes Statement of the Cash Flow, cash and cash equivalents consist of cashand
cash equivalents as defined above, net of outstanding bank overdrafts.
(b) Critical Accounting Judgements, Estimates and Assumptions
The carrying amounts of certain assets and liabilities are often determined based on estimates
and assumptions of future events. The key estimates and assumptions that have a significant
risk of causing a material adjustment to the carrying amounts of certain assets and liabilities
within the next annual reporting period are:
Share based payment transactions
The Company measures the cost of equity-settled transactions with employees by reference
to the fair value of the equity instruments at the date at which they are granted. The fair value
is determined by an internal valuation using Black-Scholes option pricing model.
Exploration and evaluation costs
Acquisition, exploration and evaluation expenditure incurred is accumulated in respect of each
identifiable area of interest. These costs are carried forward in respect of an area that has not
at balance sheet date reached a stage which permits a reasonable assessment of the
existence or otherwise of economically recoverable reserves, and active and significant
operations in, or relating to, the area of interest are continuing.
Impairment
The Company assesses impairment at the end of each reporting period by evaluating
conditions and events specific to the Company that may be indicative of impairment triggers.
Recoverable amounts of relevant assets are reassessed using value-in-use calculations which
incorporate various key assumptions.
20
Annual Report 2010
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(b) Critical Accounting Judgements, Estimates and Assumptions (Continued)
Environmental Issues
Balances disclosed in the financial statements and notes thereto are not adjusted for any
pending or enacted environmental legislation, and the directors understanding thereof. At the
current stage of the Company’s development and its current environmental impact the
directors believe such treatment is reasonable and appropriate.
Taxation
Balances disclosed in the financial statements and the notes thereto, related to taxation, and
are based on the best estimates of directors. These estimates take into account both the
financial performance and position of the company as they pertain to current income taxation
legislation, and the directors understanding thereof. No adjustment has been made for
pending or future taxation legislation. The current income tax position represents that
directors’ best estimate, pending an assessment by the Australian Taxation Office.
(c) Earnings Per Share
The Company presents basic and diluted earnings per share (“EPS”) data for its ordinary
shares. Basic EPS is calculated by dividing the net profit attributable to members for the
reporting period, after excluding any costs of servicing equity, by the weighted average
number of ordinary shares of the Company, adjusted for any bonus issue. Diluted EPS is
determined by adjusting the profit or loss attributable to ordinary shareholders and the
weighted average number of ordinary shares outstanding.
(d) Exploration, Evaluation and Development Expenditure
Exploration, evaluation and development expenditure incurred is accumulated in respect of
each identifiable area of interest. These costs are carried forward only if they relate to an area
of interest for which rights of tenure are current and in respect of which:
(i)
(ii)
such costs are expected to be recouped through successful development and
exploitation or from sale of the area; or
exploration and evaluation activities in the area have not, at balance date, reached a
stage which permit a reasonable assessment of the existence or otherwise of
economically recoverable reserves, and active operations in, or relating to, the area are
continuing.
Accumulated costs in respect of areas of interest which are abandoned are written off in full
against profit in the year in which the decision to abandon the area is made.
A regular review is undertaken of each area of interest to determine the appropriateness of
continuing to carry forward costs in relation to that area of interest.
The recoverability of the carrying amount of the exploration and evaluation assets is
dependent on the successful development and commercial exploitation, or alternatively, sale
of the respective areas of interest.
21
Annual Report 2010
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(e) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the
amount of GST incurred is not recoverable from the Australian Tax Office (“ATO”). In these
circumstances the GST is recognised as part of the cost of acquisition of the asset or as part
of an item of the expense. Receivables and payables in the Statement of Financial Position
are shown inclusive of GST.
The net amount of GST recoverable from, or payable to, the ATO is included as a current
asset or liability in the Statement of Financial Position.
Cash flows are included in the Statement of Cash Flow on a gross basis. The GST
components of cash flows arising from investing and financing activities which are recoverable
from, or payable to, the ATO are classified as operating cash flows.
(f)
Impairment of Assets
At each reporting date the Company assesses whether there is any indication whether there is
any indication that an asset may be impaired. Where an indication of impairment exists, the
Company makes a formal estimate of recoverable amount. Where carrying amount of an
asset exceeds its recoverable amount the asset is considered impaired and is written down to
its recoverable amount.
Recoverable amount is the greater of fair value less costs to sell and value in use. It is
determined for an individual asset, unless the asset’s value in use cannot be estimated to be
close to its fair value less costs to sell and it does not generate cash inflows that are largely
independent of those from other assets or Company assets, in which case, the recoverable
amount is determined for the cash-generating unit to which the asset belongs.
In assessing value in use, the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessments of the time value
of money and the risks specific to the asset.
(g) Income Tax
Deferred income tax is provided on all temporary differences at the balance sheet date
between the tax bases of assets and liabilities and their carrying amounts for financial
reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences:
•
•
except where the deferred income tax liability arises from the initial recognition of an
asset or liability in a transaction that is not a business combination and, at the time of
the transaction, affects neither that accounting profit nor taxable profit or loss; and
in
in respect of
subsidiaries, associates and interests in joint ventures, except where the timing of the
reversal of the temporary differences will not reverse in the foreseeable future.
temporary differences associated with
investments
taxable
22
Annual Report 2010
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(g)
Income Tax (Continued)
Deferred income tax assets are recognised for all deductible temporary differences, carry-
forward of unused tax assets and unused tax losses, to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences, and the
carry-forward of unused tax assets and unused tax losses can be utilised:
•
•
except where the deferred income tax asset relating to the deductible temporary
difference arises from the initial recognition of an asset or liability in a transaction that
is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss; and
in respect of deductible temporary differences with investments in subsidiaries,
associates and interests in joint ventures, deferred tax assets are only recognised to
the extent that it is probable that the temporary differences will reverse in the
foreseeable future and taxable profit will be available against which the temporary
differences can be utilised.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date
and reduced to the extent that it is no longer probable that sufficient taxable profit will be
available to allow all or part of the deferred income tax asset to be utilised.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to
apply to the year when the asset is realised or the liability is settled, based on tax rates (and
tax laws) that have been enacted or substantively enacted at the balance sheet date.
Income taxes relating to items recognised directly in equity are recognised in equity are not in
the income statement.
(h) Issued Capital
Ordinary shares are classified as equity.
Any transaction costs arising on the issue of ordinary shares are recognised directly in equity
as a reduction of the share proceeds received.
(i) Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to
the Company and the revenue can be reliably measured. The following specific recognition
criteria must also be met before revenue is recognised:
Interest
Revenue is recognised as the interest accrues.
(j) Trade and Other Payables
Liabilities for trade creditors and other amounts are carried at cost which is the fair value of
consideration to be paid in the future for goods and services received, whether or not billed to
the Company.
Payables to related parties are carried at the principal amount. Interest, when charged by the
lender, is recognised as an expense on an accrual basis.
23
Annual Report 2010
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(k) Trade and Other Receivables
Trade receivables, which generally have 30-90 day terms, are recognised and carried at
original invoice amount less an allowance for any uncollectible amounts. An allowance for
doubtful debts is made when there is objective evidence that the Company will not be able to
collect the debts. Bad debts are written off when identified.
Receivables from related parties are recognised and carried at the nominal amount due.
Interest is taken up as income on an accrual basis.
(l) Financial Instruments
Recognition and initial measurement
Financial assets and financial liabilities are recognised when the entity becomes a party to the
contractual provisions to the instrument. For financial assets, this is equivalent to the date that
the company commits itself to either the purchase or sale of the asset (ie trade date
accounting is adopted).
Financial instruments are initially measured at fair value plus transaction costs, except where
the instrument is classified ‘at fair value through profit or loss’, in which case transaction costs
are expensed to profit or loss immediately.
Classification and subsequent measurement
Finance instruments are subsequently measured at either of fair value, amortised cost using
the effective interest rate method, or cost. Fair value represents the amount for which an
asset could be exchanged or a liability settled, between knowledgeable, willing parties. Where
available, quoted prices in an active market are used to determine fair value. In other
circumstances, valuation techniques are adopted.
Amortised cost is calculated as:
a.
the amount at which the financial asset or financial liability is measured at initial
recognition;
less principal repayments;
plus or minus the cumulative amortisation of the difference, if any, between the amount
initially recognised and the maturity amount calculated using the effective interest
method; and
less any reduction for impairment.
b.
c.
d.
The effective interest method is used to allocate interest income or interest expense over the
relevant period and is equivalent to the rate that exactly discounts estimated future cash
payments or receipts (including fees, transaction costs and other premiums or discounts)
through the expected life (or when this cannot be reliably predicted, the contractual term) of
the financial instrument to the net carrying amount of the financial asset or financial liability.
Revisions to expected future net cash flows will necessitate an adjustment to the carrying
value with a consequential recognition of an income or expense in profit or loss.
The Company does not designate any interests in subsidiaries, associates or joint venture
entities as being subject to the requirements of accounting standards specifically applicable to
financial instruments.
24
Annual Report 2010
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(l) Financial Instruments (continued)
i.
ii.
Financial assets at fair value through profit or loss
Financial assets are classified at ‘fair value through profit or loss’ when they are
either held for trading for the purpose of short-term profit taking, derivatives not held
for hedging purposes, or when they are designated as such to avoid an accounting
mismatch or to enable performance evaluation where a group of financial assets is
managed by key management personnel on a fair value basis in accordance with a
documented
investment strategy. Such assets are
subsequently measured at fair value with changes in carrying value being included
in profit or loss.
risk management or
Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets that have fixed
maturities and fixed or determinable payments, and it is the Company’s intention to
hold these investments to maturity. They are subsequently measured at amortised
cost.
Held-to-maturity investments are included in non-current assets, except for those
which are expected to mature within 12 months after the end of the reporting
period. (All other investments are classified as current assets.)
If during the period the Company sold or reclassified more than an insignificant
amount of the held-to-maturity investments before maturity, the entire held-to-
maturity investments category would be tainted and reclassified as available-for-
sale.
iii.
Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are either
not suitable to be classified into other categories of financial assets due to their
nature, or they are designated as such by management. They comprise
investments in the equity of other entities where there is neither a fixed maturity nor
fixed or determinable payments.
Available-for-sale financial assets are included in non-current assets, except for
those which are expected to mature within 12 months after the end of the reporting
period. (All other financial assets are classified as current assets.)
iv.
Financial liabilities
Non-derivative financial liabilities (excluding financial guarantees) are subsequently
measured at amortised cost.
Fair value
Fair value is determined based on current bid prices for all quoted investments.
Valuation techniques are applied to determine the fair value for all unlisted securities,
including recent arm’s length transactions, reference to similar instruments and option
pricing models.
Impairment
At the end of each reporting period, the Company assesses whether there is objective
evidence that a financial instrument has been impaired. In the case of available-for-sale
financial instruments, a prolonged decline in the value of the instrument is considered
to determine whether an impairment has arisen. Impairment losses are recognised in
the statement of comprehensive income.
25
Annual Report 2010
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(l) Financial Instruments (continued)
De-recognition
Financial assets are de-recognised where the contractual rights to receipt of cash flows
expires or the asset is transferred to another party whereby the entity no longer has any
significant continuing involvement in the risks and benefits associated with the asset.
Financial liabilities are de-recognised where the related obligations are discharged,
cancelled or expired. The difference between the carrying value of the financial liability
extinguished or transferred to another party and the fair value of consideration paid,
including the transfer of non-cash assets or liabilities assumed, is recognised in profit or
loss.
Impairment of Assets
At each the end of each reporting period, the Company assesses whether there is any
indication that an asset may be impaired. The assessment will include the consideration of
external and internal sources of information including dividends received from subsidiaries,
associates or jointly controlled entities deemed to be out of pre-acquisition profits. If such
an indication exists, an impairment test is carried out on the asset by comparing the
recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell
and value in use, to the asset’s carrying value. Any excess of the asset’s carrying value
over its recoverable amount is expensed to the statement of comprehensive income.
Where it is not possible to estimate the recoverable amount of an individual asset, the
Company estimates the recoverable amount of the cash-generating unit to which the asset
belongs.
Impairment testing is performed annually for goodwill and intangible assets with indefinite
lives.
(m) Plant and Equipment
Plant and equipment are measured on the cost basis. The carrying amount of plant and
equipment is reviewed annually by directors to ensure it is not in excess of the recoverable
amount from these assets. The recoverable amount is assessed on the basis of the
expected net cash flows that will be received from the asset’s employment and subsequent
disposal. The expected net cash flows have been discounted to their present values in
determining recoverable amounts.
Depreciation
The depreciable amount of plant and equipment is depreciated on a diminishing value
basis over the asset’s useful life to the Company commencing from the time the asset is
held ready for use.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Plant and equipment
Furniture and Fittings
Software
Depreciation Rate
33.00%
11.25%
33.00%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at
each balance sheet date. An asset’s carrying amount is written down immediately to its
recoverable amount if the asset’s carrying amount is greater than its estimated recoverable
amount. Gains and losses on disposals are determined by comparing proceeds with the
carrying amount. These gains and losses are included in the income statement. When
revalued assets are sold, amounts included in the revaluation reserve relating to that asset
are transferred to retained earnings.
(n) Comparatives
When required by Accounting Standards, comparative figures have been adjusted to
conform to changes in presentation for the current financial year.
26
Annual Report 2010
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(o) Employee Benefits
Provision is made for the company’s liability for employee benefits arising from services
rendered by employees to balance date. Employee benefits that are expected to be settled
within 1 year have been measured at the amounts expected to be paid when the liability is
settled. Employee benefits payable later than 1 year have been measured at the present
value of the estimated future cash outflows to be made for those benefits. Those cashflows
are discounted using market yields on national government bonds with terms to maturity
that match the expected timing of cashflows.
(p) Accounting Standards not Previously Applied
The Company has adopted the following new and revised Australian Accounting Standard
issued by the AASB which is mandatory to apply to the current interim period. Disclosures
required by this Standard that are deemed material have been included in this financial
report on the basis that they represent a significant change in information from that previously
made available.
AASB 101: Presentation of Financial Statements
In September 2007 the Australian Accounting Standards Board revised AASB 101 and as a
result, there have been changes to the presentation and disclosure of certain information
within the financial statements. Below is an overview of the key changes and the impact on
the Company’s financial statements.
Disclosure impact
Terminology changes — the revised version of AASB 101 contains a number of terminology
changes, including the amendment of the names of the primary financial statements.
Reporting changes in equity — the revised AASB 101 requires all changes in equity arising
from transactions with owners, in their capacity as owners, to be presented separately from
non-owner changes in equity. Owner changes in equity are to be presented in the statement
of changes in equity, with non-owner changes in equity presented in the statement of
comprehensive income. The previous version of AASB 101 required that owner changes in
equity and other comprehensive income be presented in the statement of changes in equity.
Statement of comprehensive income — the revised AASB 101 requires all income and
expenses to be presented in either one statement, the statement of comprehensive income, or
two statements, a separate income statement and a statement of comprehensive income. The
previous version of AASB 101 required only the presentation of a single income statement.
The Company’s financial statements now contain a statement of comprehensive income.
Other comprehensive income— The revised version of AASB 101 introduces the concept of
‘other comprehensive income’ which comprises of income and expenses that are not
recognised in profit or loss as required by other Australian Accounting Standards. Items of
other comprehensive income are to be disclosed in the statement of comprehensive income.
Entities are required to disclose the income tax relating to each component of other
comprehensive income. The previous version of AASB 101 did not contain an equivalent
concept.
AASB 8: Operating Segments
In February 2007 the Australian Accounting Standards Board issued AASB 8 which replaced
AASB 114: Segment Reporting. As a result, some of the required operating segment
disclosures have changed with the addition of a possible impact on the impairment testing of
goodwill allocated to the cash generating units (CGUs) of the entity. Below is an overview of
the key changes and the impact on the Company’s financial statements.
27
Annual Report 2010
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(p) Accounting Standards not Previously Applied (continued)
Measurement impact
Identification and measurement of segments — AASB 8 requires the ‘management approach’ to
the identification measurement and disclosure of operating segments. The ‘management
approach’ requires that operating segments be identified on the basis of internal reports that are
regularly reviewed by the entity’s chief operating decision maker, for the purpose of allocating
resources and assessing performance. This could also include the identification of operating
segments which sell primarily or exclusively to other internal operating segments. Under
AASB 114, segments were identified by business and geographical areas, and only segments
deriving revenue from external sources were considered.
The adoption of the ‘management approach’ to segment reporting has resulted in the
identification of reportable segments largely consistent with the prior year.
Under AASB 8, operating segments are determined based on management reports using the
‘management approach’, whereas under AASB 114 financial results of such segments were
recognised and measured in accordance with Australian Accounting Standards. This has
resulted in changes to the presentation of segment results, with inter-segment sales and
expenses such as depreciation and impairment now being reported for each segment rather than
in aggregate for total group operations, as this is how they are reviewed by the chief operating
decision maker.
Impairment testing of the segment’s goodwill
AASB 136: Impairment of Assets, para 80 requires that goodwill acquired in a business
combination shall be allocated to each of the acquirer’s CGUs, or group of CGUs that are
expected to benefit from the synergies of the combination. Each cash generating unit (CGU)
which the goodwill is allocated to must represent the lowest level within the entity at which
goodwill is monitored, however it cannot be larger than an operating segment. Therefore, due to
the changes in the identification of segments, there is a risk that goodwill previously allocated to a
CGU which was part of a larger segment could now be allocated across multiple segments if a
segment had to be split as a result of changes to AASB 8.
Management have considered the requirements of AASB 136 and determined the implementation
of AASB 8 has not impacted the CGUs of each operating segment.
Disclosure impact
AASB 8 requires a number of additional quantitative and qualitative disclosures, not previously
required under AASB 114, where such information is utilised by the chief operating decision
maker. This information is now disclosed as part of the financial statements.
(q) New Accounting Standards for Application in Future Periods
The AASB has issued new and amended accounting standards and interpretations that have
mandatory application dates for future reporting periods. The Company has decided against early
adoption of these standards. A discussion of those future requirements and their impact on the
Company follows:
• AASB 9: Financial Instruments and AASB 2009–11: Amendments to Australian Accounting
Standards arising from AASB 9 [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128,
131, 132, 136, 139, 1023 & 1038 and Interpretations 10 & 12] (applicable for annual reporting
periods commencing on or after 1 January 2013).
28
Annual Report 2010
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(q) New Accounting Standards for Application in Future Periods (Continued)
These standards are applicable
the classification and
measurement of financial assets. The Company has not yet determined the potential impact
on the financial statements.
retrospectively and amend
The changes made to accounting requirements include:
—
—
—
—
—
—
simplifying the classifications of financial assets into those carried at amortised cost
and those carried at fair value;
simplifying the requirements for embedded derivatives;
removing the tainting rules associated with held-to-maturity assets;
removing the requirements to separate and fair value embedded derivatives for
financial assets carried at amortised cost;
allowing an irrevocable election on initial recognition to present gains and losses on
investments in equity instruments that are not held for trading in other comprehensive
income. Dividends in respect of these investments that are a return on investment can
be recognised in profit or loss and there is no impairment or recycling on disposal of
the instrument; and
reclassifying financial assets where there is a change in an entity’s business model as
they are initially classified based on:
a.
the objective of the entity’s business model for managing the financial assets;
and
the characteristics of the contractual cash flows.
b.
• AASB 124: Related Party Disclosures (applicable for annual reporting periods
commencing on or after 1 January 2011).
This standard removes the requirement for government related entities to disclose
details of all transactions with the government and other government related entities
and clarifies the definition of a related party to remove inconsistencies and simplify the
structure of the standard. No changes are expected to materially affect the Company.
• AASB 2009–4: Amendments to Australian Accounting Standards arising from the
Annual Improvements Project [AASB 2 and AASB 138 and AASB Interpretations 9 &
16] (applicable for annual reporting periods commencing from 1 July 2009) and AASB
2009-5: Further Amendments to Australian Accounting Standards arising from the
Annual Improvements Project [AASB 5, 8, 101, 107, 117, 118, 136 & 139] (applicable
for annual reporting periods commencing from 1 January 2010).
These standards detail numerous non-urgent but necessary changes to accounting
standards arising from the IASB’s annual improvements project. No changes are
expected to materially affect the Company.
• AASB 2009–8: Amendments to Australian Accounting Standards — Company Cash-
settled Share-based Payment Transactions [AASB 2] (applicable for annual reporting
periods commencing on or after 1 January 2010).
These amendments clarify the accounting for Company cash-settled share-based
payment transactions in the separate or individual financial statements of the entity
receiving the goods or services when the entity has no obligation to settle the share-
based payment transaction. The amendments incorporate the requirements previously
included in Interpretation 8 and Interpretation 11 and as a consequence, these two
Interpretations are superseded by the amendments. These amendments are not
expected to impact the Company.
29
Annual Report 2010
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(q) New Accounting Standards for Application in Future Periods (Continued)
• AASB 2009–9: Amendments to Australian Accounting Standards — Additional
Exemptions for First-time Adopters [AASB 1] (applicable for annual reporting periods
commencing on or after 1 January 2010).
These amendments specify requirements for entities using the full cost method in place
of the retrospective application of Australian Accounting Standards for oil and gas
assets, and exempt entities with existing leasing contracts from reassessing the
classification of those contracts in accordance with Interpretation 4 when the
application of their previous accounting policies would have given the same outcome.
These amendments are not expected to impact the Company.
• AASB 2009–10: Amendments to Australian Accounting Standards — Classification of
Rights Issues [AASB 132] (applicable for annual reporting periods commencing on or
after 1 February 2010).
These amendments clarify that rights, options or warrants to acquire a fixed number of
an entity’s own equity instruments for a fixed amount in any currency are equity
instruments if the entity offers the rights, options or warrants pro-rata to all existing
owners of the same class of its own non-derivative equity instruments. These
amendments are not expected to impact the Company.
• AASB 2009–12: Amendments to Australian Accounting Standards [AASBs 5, 8, 108,
110, 112, 119, 133, 137, 139, 1023 & 1031 and Interpretations 2, 4, 16, 1039 & 1052]
(applicable for annual reporting periods commencing on or after 1 January 2011).
This standard makes a number of editorial amendments to a range of Australian
Accounting Standards and Interpretations, including amendments to reflect changes
made to the text of International Financial Reporting Standards by the IASB.
The standard also amends AASB 8 to require entities to exercise judgment in
assessing whether a government and entities known to be under the control of that
government are considered a single customer for the purposes of certain operating
segment disclosures. These amendments are not expected to impact the Company.
• AASB 2009–13: Amendments to Australian Accounting Standards arising from
Interpretation 19 [AASB 1] (applicable for annual reporting periods commencing on or
after 1 July 2010).
This standard makes amendments to AASB 1 arising from the issue of Interpretation
19. The amendments allow a first-time adopter to apply the transitional provisions in
Interpretation 19. This standard is not expected to impact the Company.
• AASB 2009–14: Amendments to Australian Interpretation — Prepayments of a
Minimum Funding Requirement [AASB Interpretation 14] (applicable for annual
reporting periods commencing on or after 1 January 2011).
This standard amends Interpretation 14 to address unintended consequences that can
arise from the previous accounting requirements when an entity prepays future
contributions into a defined benefit pension plan.
30
Annual Report 2010
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(q) New Accounting Standards for Application in Future Periods (Continued)
•
AASB Interpretation 19: Extinguishing Financial Liabilities with Equity Instruments
(applicable for annual reporting periods commencing on or after 1 July 2010).
This Interpretation deals with how a debtor would account for the extinguishment of a
liability through the issue of equity instruments. The Interpretation states that the issue
of equity should be treated as the consideration paid to extinguish the liability, and the
equity instruments issued should be recognised at their fair value unless fair value
cannot be measured reliably in which case they shall be measured at the fair value of
the liability extinguished. The Interpretation deals with situations where either partial or
full settlement of the liability has occurred. This Interpretation is not expected to impact
the Company.
The Company does not anticipate the early adoption of any of the above Australian
Accounting Standards.
The financial report was authorised for issue on 25th August 2010 by the board of directors.
31
Annual Report 2010
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
2.
LOSS FOR THE YEAR
Loss before income tax has been determined after
following specific expenses:
Employee benefits expense
- Salary
- Impairment Financial assets at fair value
- Impairment capitalised exploration expenditure
3.
AUDITORS’ REMUNERATION
Remuneration of the auditor for:
- Auditing or reviewing the financial report
4.
INCOME TAX
a.
The components of tax expense comprise:
Current tax
Deferred tax
2010
$
231,600
150,728
95,562
2009
$
177,583
161,618
-
21,850
21,850
27,570
27,570
-
-
-
-
-
-
b.
The prima facie tax expense/(benefit) on profit/(loss)
before income tax is reconciled to the income tax as
follows:
Prima facie tax expense/(benefit) on profit/(loss) before
income tax at 30%
(145,866)
(72,077)
Add:
Tax effect of:
- Revenue losses not recognised
- Other deferred tax balances not recognised
116,520
29,346
- Other non-allowable
Less:
Tax effect of:
- Other allowable items
Income tax
-
-
-
-
39,753
30,946
1,800
422
422
-
The applicable weighted average effective tax rates are
as follows:
0%
0%
32
Annual Report 2010
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
4.
INCOME TAX (Continued)
c.
Deferred tax liabilities:
Exploration expenditure
Other
Deferred tax assets:
Carry forward revenue losses
d.
Unrecognised deferred tax assets:
Carry forward revenue losses
Capital raising costs
Financial assets
Provision and accruals
Other
2010
$
2009
$
(204,955)
(164,846)
(14,569)
(3,135)
219,524
167,981
-
-
177,446
24,690
108,104
11,885
117
60,926
36,163
62,885
9,011
251
322,242
169,236
The tax benefits of the above Deferred Tax Assets will only be obtained if:
(a)
the Company derives future assessable income of a nature and of an amount sufficient to
enable the benefits to be utilised;
the Company continues to comply with the conditions for deductibility imposed by law; and
(b)
(c) no changes in income tax legislation adversely affect the Company in utilising benefits.
5. CASH AND CASH EQUIVALENTS
Current
Cash at Bank
6. TRADE AND OTHER RECEIVABLES
Current
GST Receivable
Other Debtors
Prepayments
19(i)
3,970,186
4,467,452
8,398
46,864
8,373
63,635
9,809
17,354
7,830
34,993
33
Annual Report 2010
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
7. EXPLORATION AND EVALUATION ASSETS
Costs carried forward in respect of areas of
interest in:
Exploration and evaluation phases – at cost
Balance at beginning of the year
Exploration expenditure capitalised during the year
Exploration expenditure impaired
At reporting date
8. FINANCIAL ASSETS
2010
$
2009
$
683,183
549,486
228,259
(94,562)
683,183
549,486
317,632
231,854
-
549,486
Non Current
Financial assets at fair value through profit or loss
45,829
196,558
Unlisted Shares, at recoverable amount
At cost
Provision for impairment
Listed Shares at fair value
50,000
(50,000)
-
45,829
50,000
(48,000)
2,000
194,558
Total Financial assets at fair value through
profit or loss
45,829
196,558
9. PLANT AND EQUIPMENT
Plant and equipment at cost
Accumulated depreciation
(a) Movements in carrying amounts
Plant and Equipment
At beginning of reporting period
Additions
Depreciation expense
At end of reporting period
10. TRADE AND OTHER PAYABLES
Current
Trade creditors
Other creditors and accruals
7,175
(2,165)
5,010
6,261
-
(1,251)
5,010
31,371
53,199
84,570
7,175
(914)
6,261
3,882
3,085
(706)
6,261
71,556
25,006
96,562
Trade creditors are non-interest bearing and are normally settled on 30 day terms
34
Annual Report 2010
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
11. PROVISIONS
Current
Employee benefits
12.
ISSUED CAPITAL
2010
$
2009
$
20,937
10,411
37,441,108 (2009:37,435,789) fully paid ordinary
shares of no par value
5,443,324
5,274,415
(a) Movements in fully paid ordinary shares on issue:
At the beginning of the reporting year
Shares issued during the year:
Option conversions 2 December 2009
Transfer from option reserve
Capital raising (costs)/ refund
At reporting date
(b) Terms of Ordinary Shares
2010
2009
$
Number
5,274,615 37,435,789
$
Number
5,264,750 37,415,789
1,069
186,643
(19,003)
5,319
-
-
5,443,324 37,441,108
4,200
-
5,665
20,000
-
-
5,274,615 37,435,789
Ordinary shares participate in dividends and the proceeds on winding up of the Company in
proportion to the number of shares held and in proportion to the amount paid up on the shares held.
At shareholders meetings each ordinary share is entitled to one vote in proportion to the paid up
amount of the share when a poll is called, otherwise each shareholder has one vote on a show of
hands.
(c) Capital risk management
The Company’s objectives when managing capital are to safeguard its ability to continue as a going
concern, so that it may continue to provide returns for shareholders and benefits for other
stakeholders.
Due to the nature of the Company’s activities, being mineral exploration, it does not have ready
access to credit facilities, with the primary source of funding being equity raisings. Accordingly, the
objective of the Company’s capital risk management is to balance the current working capital position
against the requirements of the Company to meet exploration programmes and overheads. This is
achieved by maintaining appropriate liquidity to meet anticipated operating requirements, with a view
to initiating appropriate capital raisings as required.
The working capital position of the Company at 30 June 2010 and 30 June 2009 are as follows:
Cash and cash equivalents
Trade and other receivables
Financial assets at fair value through Profit and
Loss
Trade and other payables
Working capital position
2010
$
3,970,186
63,635
45,829
(84,570)
3,995,080
2009
$
4,467,452
34,993
196,558
(96,562)
4,602,441
35
Annual Report 2010
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
13. RESERVES
Option reserve
Movements in options on issue:
2010
$
2009
$
18,713
186,643
2010
$
Number
$
Number
2009
At the beginning of the reporting year
186,643
3,000,000
186,843
21,684,215
Options issued during the year:
Options issued at $0.01 each,
exercisable at $0.20 on or before 30
June 2012
Transfer to issued capital
Options converted
Options expired
At reporting date
Terms of Options
18,718
(186,643)
(5)
-
18,713
18,717,895
-
(5,319)
(3,000,000)
18,712,576
-
-
(200)
-
186,643
-
-
(20,000)
(18,664,215)
3,000,000
At the end of reporting year, there were 18,712,576 options over unissued shares exercisable at
$0.20 on or before 30 June 2012.
14. ACCUMULATED LOSSES
Accumulated losses at the beginning of the
reporting year
Net loss attributable to members
Accumulated losses at the end of the reporting
year
2010
$
(313,481)
(486,220)
2009
$
(73,226)
(240,255)
(799,701)
(313,481)
15. KEY MANAGEMENT PERSONNEL DISCLOSURES
(a) Details of key management personnel
The following persons are key management personnel of the Company during the financial year:-
Directors
Xing Yan (Simon)
George Lazarou
Eric Kong
Executive Chairman
Executive Director
Non-Executive Director
(b) Remuneration policy of key management personnel
The objective of the Company’s executive reward framework is set to attract and retain the most
qualified and experienced directors and senior executives. The board ensures that executive
reward satisfies the following key criteria for good reward governance practices:
• Competitiveness
• Acceptability to shareholders
• Performance linkage
• Capital management
36
Annual Report 2010
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
15.
KEY MANAGEMENT PERSONNEL DISCLOSURES (Continued)
Directors’ fees
A director may be paid fees or other amounts as the directors determine where a director performs
special duties or otherwise performs services outside the scope of the ordinary duties of a director.
A director may also be reimbursed for out of pocket expenses incurred as a result of their
directorship or any special duties.
Service agreements
Pursuant to an agreement executed on 26 March 2010, George Lazarou will be paid $136,000 per
annum on a full time basis plus superannuation, for providing services to the Company as an
Executive Director. Currently Mr Lazarou devotes 50% of his time on United Uranium, resulting in a
pro-rata salary of $68,000 per annum plus superannuation. The agreement may be terminated by
either party by providing 3 months written notice and upon payment of any outstanding fees for
services rendered.
Pursuant to an agreement executed on 1 May 2009, Xing Yan (Simon) will be paid $100,000 per
annum plus superannuation, for providing services to the Company as an Executive Chairman. The
agreement may be terminated by either party by providing 3 months written notice and upon
payment of any outstanding fees for services rendered.
Pursuant to an agreement executed on 15 May 2008, Eric Kong will be paid $40,000 per annum
plus superannuation, for providing services to the Company as a Non-executive Director. Any
consulting services are charged at a rate of $800 per day. The agreement may be terminated by
either party by providing 3 months written notice and upon payment of any outstanding fees for
services rendered.
(c) Compensation of key management personnel by individual
Compensation details of key management personnel have been disclosed in the Directors’ Report.
The totals of remuneration paid to directors of the Company during the year are as follows:
Salary and fees
Superannuation
Other long-term benefits
Termination benefits
Share-based payments
2010
$
2009
$
250,000
158,333
18,180
14,250
-
-
-
-
-
-
268,180
172,583
(d) Compensation options: Granted and vested during the year
There were no compensation options granted to key management personnel of the Company
during the year.
(e) Shares issued on exercise of compensation options
There were no shares issued on exercise of compensation options during the year.
37
Annual Report 2010
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
15.
KEY MANAGEMENT PERSONNEL DISCLOSURES (Continued)
(f) Option holdings of key management personnel
2010
Balance
at
01.07.09
Granted as
Remuneration
Exercised/
Expired
Bought &
(Sold)
Balance
at
30.06.10
Total
Vested at
30.06.10
Total
Exercisable
at 30.06.10
Total
Unexercisable
at 30.06.10
Xing Yan (Simon)
1,000,000
George Lazarou
1,000,000
Eric Kong
2009
-
2,000,000
Balance
at
01.07.08
-
-
-
-
(1,000,000) 1,825,000 1,825,000 1,825,000
1,825,000
(1,000,000)
175,000
175,000
175,000
-
39,750
39,750
39,750
175,000
39,750
(2,000,000) 2,039,750 2,039,750 2,039,750
2,039,750
-
-
-
-
Granted as
Remuneration
Exercised/
Expired
Bought
& (Sold)
Balance at
30.06.09
Total
Vested at
30.06.09
Total
Exercisable
at 30.06.09
Total
Unexercisable
at 30.06.09 (i)
Xing Yan (Simon)
2,825,000
George Lazarou
1,175,000
Eric Kong
39,750
4,039,750
-
-
-
-
(1,825,000)
(175,000)
(39,750)
(2,039,750)
-
-
-
-
1,000,000 1,000,000
1,000,000 1,000,000
-
-
2,000,000 2,000,000
-
-
-
-
1,000,000
1,000,000
-
2,000,000
(i) These options were issued to directors as promoters of the Company. Promoter options are escrowed for
24 months from date of listing of the Company on the ASX.
(g) Shareholdings of key management personnel
2010
Balance at
01.07.09
Granted as
Remuneration
On Exercise of
Options
Bought &
(Sold)
Balance at
30.06.10
Xing Yan (Simon)
3,650,000
George Lazarou
Eric Kong
2009
350,000
79,500
4,079,500
-
-
-
-
-
-
-
-
-
-
-
-
3,650,000
350,000
79,500
4,079,500
Balance at
01.07.08
Granted as
Remuneration
On Exercise of
Options
Bought &
(Sold)
Balance at
30.06.09
Xing Yan (Simon)
3,650,000
George Lazarou
Eric Kong
350,000
79,500
4,079,500
-
-
-
-
(h) Loans to key management personnel
-
-
-
-
-
-
-
-
3,650,000
350,000
79,500
4,079,500
No loans were made to key management personnel of the company during the financial year.
(i) Other transactions and balances with key management personnel
During the year Eric Kong received $2,400 in consulting fees on normal commercial terms and
conditions no more favourable than those available to other parties.
These costs have not been included in Directors’ remuneration as these fees were not paid in relation
to the normal Non-Executive Director duties. All transactions have been entered into on normal
commercial terms.
38
Annual Report 2010
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
16. RELATED PARTY DISCLOSURES
Key management personnel
Disclosures relating to key management personnel are set out in note 15and the Directors’ Report.
17. FINANCIAL INSTRUMENTS
(i)
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Company’s principal financial instruments comprise cash and short term deposits. The main
purpose of the financial instruments is to earn the maximum amount of interest at a low risk to the
Company. The Company also has other financial instruments such as trade debtors and creditors
which arise directly from its operations. For the year under review, it has been the Company’s policy
not to trade in financial instruments
The directors’ overall risk management strategy seeks to assist the Company in meeting its financial
targets, whilst minimising potential adverse effects on financial performance.
Risk management policies are approved and reviewed by the Board of Directors on a regular basis.
These include the credit risk policies and future cash flow requirements
Financial Risk Exposures and Management
The main risks arising from the Company’s financial instruments are interest rate risk and credit risk.
The board reviews and agrees policies for managing each of these risks and they are summarised
below:
(a)
(b)
Foreign Currency Risk
The Company is not exposed to fluctuations in foreign currencies.
Interest Rate Risk
The Company is exposed to movements in market interest rates on short term deposits.
The policy is to monitor the interest rate yield curve out to 120 days to ensure a balance is
maintained between the liquidity of cash assets and the interest rate return. The Company
does not have short or long term debt, and therefore this risk is minimal.
(c) Credit Risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations
resulting in financial loss to the Company. The Company has adopted the policy of only
dealing with credit worthy counterparties and obtaining sufficient collateral or other security
where appropriate, as a means of mitigating the risk of financial loss from defaults.
The Company does not have any significant credit risk exposure to any single counterparty
or any Company of counterparties having similar characteristics. The carrying amount of
financial assets recorded in the financial statements, net of any provisions for losses,
represents the Company’s maximum exposure to credit risk.
(d)
Liquidity Risk
The Company manages liquidity risk by monitoring forecast cash flows. The Company
does not have any significant liquidity risk as the Company does not have any collateral
debts.
(e) Market Risk
Market risk is the risk that changes in market prices, such as foreign exchange rates,
interest rates and equity prices will affect the Company’s income or the value of its
holdings of financial instruments. The objective of market risk management is to manage
and control market risk exposures within acceptable parameters, while optimising the
return.
39
Annual Report 2010
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
17. FINANCIAL INSTRUMENTS (Continued)
(ii)
FINANCIAL INSTRUMENT COMPOSITION AND MATURITY ANALYSIS
The table below reflects the undiscounted contractual settlement terms for financial instruments of
a fixed period of maturity, as well as management’s expectations of the settlement period for all
other financial instruments. As such, the amounts might not reconcile to the balance sheet.
Non-
Interest
bearing
$
Total
$
-
3,970,186
63,635
63,635
45,829
109,464
45,829
4,079,650
84,570
84,570
84,570
84,570
Non-
Interest
bearing
$
Total
$
-
4,467,452
34,993
34,993
196,558
231,551
196,558
4,699,003
96,562
96,562
96,562
96,562
2010
Floating
interest
rate
$
Fixed interest maturing in
over 1
year
less
than 5
$
more
than 5
years
$
1 year or
less
$
Financial Assets
Cash at bank
Trade & other
receivables
Financial asset at
fair value through
profit or loss
Weighted Average
Interest Rate
Financial Liabilities
Trade & other
creditors
2009
Financial Assets
Cash at bank
Trade & other
receivables
Financial asset at
fair value through
profit or loss
Weighted Average
Interest Rate
Financial Liabilities
Trade & other
creditors
91,592
3,878,594
-
-
-
91,592
-
3,878,594
4.5%
3.55%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Floating
interest
rate
$
Fixed interest maturing in
over 1
year
less
than 5
$
more
than 5
years
$
1 year or
less
$
33,054
4,434,398
-
-
-
33,054
-
4,434,398
2.84%
3.06%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
40
Annual Report 2010
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
17. FINANCIAL INSTRUMENTS (Continued)
Trade and sundry payables are expected to be paid as
follows:
Less than 6 months
2010
$
84,570
84,570
2009
$
96,562
96,562
(iii)
NET FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
The carrying amount of cash and cash equivalents approximates fair value because of their short-
term maturity.
Listed investments have been valued at the quoted market bid price at balance date, adjusted for
transaction costs expected to be incurred. For unlisted investments where there is no organised
financial market, the net fair value has been based on a reasonable estimation of the underlying net
assets or discounted cash flows of the investment.
Net fair value of financial assets:
African United Limited (Unlisted)
Bannerman Resources Limited
2010
$
-
45,829
45,829
2009
$
2,000
194,558
196,558
(iv)
INTEREST RATE SENSITIVITY ANALYSIS
At 30 June 2010, the effect on loss and equity as a result of changes in the interest rate, with all other
variable remaining constant would be as follows:
CHANGE IN PROFIT/(LOSS)
Increase in interest rate by 2%
Decrease in interest rate by 2%
CHANGE IN EQUITY
Increase in interest rate by 2%
Decrease in interest rate by 2%
2010
$
(459,009)
(491,736)
2009
$
(151,567)
(328,943)
4,656,819
4,689,547
5,236,465
5,059,089
The above interest rate sensitivity analysis has been performed on the assumption that all other
variables remain unchanged.
41
Annual Report 2010
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
17. FINANCIAL INSTRUMENTS (Continued)
(v)
PRICE SENSITIVITY ANALYSIS
Management believes the estimated fair values resulting from the valuation of listed investments and
recorded in the statement of financial position and the related changes in fair values recorded in the
statement of comprehensive income are reasonable and the most appropriate at Statement of Financial
Position date. At 30 June 2010, the effect on loss as a result of changes in the share price of listed
investment, with all other variables remaining constant would be as follows:
CHANGE IN PROFIT/(LOSS)
Increase in fair value of investment by 10%
Decrease in fair value of investment by 10%
2010
Financial assets:
Financial assets at fair value through profit
or loss:
—
—
listed investments
unlisted investments
2009
Financial assets:
Financial assets at fair value through profit
or loss:
—
—
listed investments
unlisted investments
2010
$
2009
$
(470,790)
(479,956)
(220,799)
(259,711)
Level 1
Level 2
Level 3
$
$
$
Total
$
45,829
-
45,829
-
-
-
Level 1
$
Level 2
$
Level 3
$
194,558
-
194,558
-
2,000
2,000
-
-
-
-
-
-
45,829
-
45,829
Total
$
194,558
2,000
196,558
Included within Level 1 of the hierarchy are listed investments. The fair values of these financial assets have
been based on the closing quoted bid prices at reporting date, excluding transaction costs.
In valuing unlisted investments, included in Level 2 of the hierarchy, valuation techniques such as those using
comparisons to similar investments for which market observable prices are available have been adopted to
determine the fair values of these investments.
Derivative instruments are included in Level 3 of the hierarchy with the fair values being determined using
valuation techniques incorporating observable market data relevant to the hedged position.
18.
EARNINGS PER SHARE
2010
$
2009
$
(a) Loss used in the calculation of basic earnings per
(486,220)
(240,255)
share
(b) Weighted average number of ordinary shares
outstanding during the reporting period used in
calculation of basic earnings per share:
Number of
shares
Number of
shares
37,441,108
37,435,789
42
Annual Report 2010
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
19. CASH FLOW INFORMATION
(i) Reconciliation of cash and cash equivalent:-
2010
$
2009
$
Cash at Bank
3,970,186
4,467,452
(ii) Reconciliation of cash flows from operating activities
with loss after income tax
Loss after income tax
Depreciation expense
Impairment financial assets at fair value
Impairment capitalised exploration expenditure
(486,220)
1,251
150,728
94,562
(240,255)
706
161,618
-
Cash flows not included in loss after income tax for the year
- Payments for exploration and evaluation
(236,318)
(223,794)
Changes in assets and liabilities:
- (Increase)/ Decrease in trade and other receivables
- (Decrease)/ Increase in trade and other payables
- Increase in provisions
(28,642)
(11,992)
10,526
9,572
76,860
5,001
Net cash (outflows) from Operating Activities
(506,105)
(210,292)
(iii) Non-cash financing and investing activities
No non-cash financing and investing activities have occurred during the year ended 30 June 2010.
20. SEGMENT INFORMATION
Identification of reportable segments
The Company has identified its operating segments based on the internal reports that are reviewed and used
by the Board of Directors in assessing performance and determining the allocation of resources.
The Company is managed primarily on the basis of its uranium exploration and corporate activities. Operating
segments are therefore determined on the same basis.
Reportable segments disclosed are based on aggregating operating segments where the segments are
considered to have similar economic characteristics.
Types of reportable segments
(i) Uranium exploration
Segment assets, including acquisition cost of exploration licences and all expenses related to the tenements
in Northern Territory are reported on in this segment.
(ii) Corporate
Corporate, including treasury, corporate and regulatory expenses arising from operating an ASX listed
entity. Segment assets, including cash and cash equivalents, and investments in financial assets are
reported in this segment.
43
Annual Report 2010
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
20. SEGMENT INFORMATION (Continued)
Basis of accounting for purposes of reporting by operating segments
Accounting policies adopted
Unless stated otherwise, all amounts reported to the Board of Directors as the chief decision maker with
respect to operating segments are determined in accordance with accounting policies that are consistent to
those adopted in the annual financial statements of the Company.
Segment assets
Where an asset is used across multiple segments, the asset is allocated to the segment that receives the
majority of economic value from the asset. In the majority of instances, segment assets are clearly identifiable
on the basis of their nature and physical location.
Unless indicated otherwise in the segment assets note, deferred tax assets and intangible assets have not
been allocated to operating segments.
Segment liabilities
Liabilities are allocated to segments where there is direct nexus between the incurrence of the liability and the
operations of the segment. Borrowings and tax liabilities are generally considered to relate to the Company as
a whole and are not allocated. Segment liabilities include trade and other payables.
Unallocated items
The following items of revenue, expense, assets and liabilities are not allocated to operating segments as they
are not considered part of the core operations of any segment:
•
•
•
•
•
•
net gains on disposal of available-for-sale investments;
impairment of assets and other non-recurring items of revenue or expense;
income tax expense;
deferred tax assets and liabilities;
intangible assets; and
discontinuing operations.
Comparative information
This is the first reporting period in which AASB 8: Operating Segments has been adopted. Comparative
information has been stated to conform to the requirements of the Standard.
44
Annual Report 2010
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
20. SEGMENT INFORMATION (Continued)
(i) Segment performance
30 June 2010
Revenue
Interest revenue
Total segment revenue
Reconciliation of segment result to company net (loss) before
tax
Amounts not included in segment result but reviewed by the
Board:
•
•
Depreciation
Impairment provision
Unallocated items:
• Other
Net loss before tax from continuing operations
30 June 2009
Revenue
Interest revenue
Total segment revenue
Reconciliation of segment result to net profit/(loss) before tax
Amounts not included in segment result but reviewed by the
Board:
•
•
Depreciation
Impairment provision
Unallocated items:
• Other
Net loss before tax from continuing operations
Corporate
Uranium
Exploration
Total
$
$
$
163,250
163,250
-
-
163,250
163,250
(1,251)
-
(1,251)
(150,728)
(94,562)
(245,290)
262,321
262,321
(706)
(161,618)
-
-
-
-
(402,929)
(486,220)
262,321
262,321
(706)
(161,618)
(340,252)
(240,255)
45
Annual Report 2010
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
20. SEGMENT INFORMATION (Continued)
(ii) Segment assets
30 June 2010
Segment assets
Segment asset increases for the period:
•
•
Capital expenditure
Acquisitions
Reconciliation of segment assets to total assets
Inter-segment eliminations
Unallocated assets:
• Other assets
Total assets from continuing operations
30 June 2009
Segment assets
Segment asset increases for the period:
•
Capital expenditure
Reconciliation of segment assets to total assets
Inter-segment eliminations
Unallocated assets:
• Other assets
Total assets from continuing operations
(iii) Segment liabilities
30 June 2010
Segment liabilities
Reconciliation of segment liabilities to liabilities
Inter-segment eliminations
Unallocated liabilities:
• Other liabilities
Total liabilities from continuing operations
46
Corporate
Uranium
Exploration
Total
$
$
$
4,016,016
683,183
4,699,199
-
-
-
133,697
133,697
-
-
-
-
68,644
4,767,843
4,664,009
549,486
5,213,495
-
-
231,853
231,853
-
-
41,255
5,254,750
74,864
-
-
-
74,864
-
30,643
105,507
Annual Report 2010
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
20. SEGMENT INFORMATION (Continued)
30 June 2009
Segment liabilities
Reconciliation of segment liabilities to liabilities
Inter-segment eliminations
Unallocated liabilities:
• Other liabilities
Total liabilities from continuing operations
(iv) Revenue by geographical region
Corporate Uranium
Total
Exploration
$
$
71,556
-
-
-
$
71,556
-
35,417
106,973
There is no revenue attributable to external customers for the years ended 30 June 2010and 2009.
(v) Assets by geographical region
All reportable segment assets are located in one location, Australia.
21. EVENTS SUBSEQUENT TO REPORTING DATE
Except for the below, the Directors are not aware of any other matters or circumstances that have
arisen since the end of the financial year which significantly affected or may significantly affect the
operations of the Company, the results of those operations, or the state of affairs of the Company in
future financial years.
• On 9 August 2010, the Company relinquished its interest in ELA 25837; and
• On 13 August 2010, as part of its application for a drilling permit on EL 25839, the Company
provided the Department of Resources with a Bank Guarantee amounting to $6,569 as
security.
22. CONTINGENT LIABILITIES
In the opinion of the directors there were no contingent liabilities at 30 June 2010, and the interval
between 30 June 2010 and the date of this report.
23. COMMITMENTS
(a) Exploration commitments
The Company will have minimum obligations pursuant to the terms and conditions of prospective
tenement licenses in the forthcoming year of exploration and rental commitments as detailed below.
These obligations are capable of being varied from time to time, in order to maintain current rights to
tenure to mining tenements.
Within 1 year
367,300
12,960
Exploration Commitment
Rental Commitment
(b) Lease expenditure commitments
There is one operating lease being a rental lease on the Company’s premises. The rental lease is on
a monthly tenancy and anounts to $2,425 plus GST per month.
47
Annual Report 2010
United Uranium Limited
DIRECTORS' DECLARATION
The directors of the company declare that:
1. the financial statements and notes, as set out on pages 16 to 47 are in accordance with the
Corporations Act 2001:
(a) comply with Accounting Standards and the Corporations Regulations 2001;
(b) are in accordance with International Financial Reporting Standards issued by the
International Accounting Standards Board, as noted in note 1 to the financial statements;
and
(c) give a true and fair view of the financial position as at 30 June 2010 and of the
performance for the year ended on that date of the Company;
2.
the Chief Executive Officer and Chief Financial Officer have each declared that:
(a)
the financial records of the Company for the financial year have been properly maintained
in accordance with section 286 of the Corporations Act 2001;
(b)
the financial statements and notes for the financial year comply with the Accounting
Standards Board; and
(c)
the financial statements and notes for the financial year give a true and fair view.
3. in the directors’ opinion there are reasonable grounds to believe that the Company will be able to
pay its debts as and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors and is signed
for and on behalf of the directors by:
George Lazarou
Executive Director
Dated this 26th day of August 2010
48
Independent Auditor's Report
To the Members of United Uranium Limited
We have audited the accompanying financial report of United Uranium Limited (“the Company”), which
comprises the statement of financial position as at 30 June 2010, and the statement of comprehensive
income, statement of changes in equity and statement of cash flow for the year ended on that date, a
statement of accounting policies, other selected explanatory notes and the directors’ declaration of the
Company.
Directors Responsibility for the Financial Report
The directors of United Uranium Limited are responsible for the preparation and fair presentation of the
financial report in accordance with Australian Accounting Standards (including the Australian Accounting
Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining
internal control relevant to the preparation and fair presentation of the financial report that is free from
material misstatement, whether due to fraud or error; selecting and applying appropriate accounting
policies; and making accounting estimates that are reasonable in the circumstances. In Note 1, the
directors also state, in accordance with Accounting Standards AASB 101: Presentation of Financial
Statements, that compliance with the Australian equivalents to International Financial Reporting
Standards (IFRS) ensures that the financial report, comprising the financial statements and notes,
complies with IFRS.
Auditor’s Responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted our
audit in accordance with Australian Auditing Standards. These Auditing Standards require that we
comply with relevant ethical requirements relating to audit engagements and plan and perform the audit
to obtain reasonable assurance whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial report. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In
making those risk assessments, the auditor considers internal control relevant to the entity’s preparation
and fair presentation of the financial report in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s
internal control. An audit also includes evaluating the appropriateness of accounting policies used and
the reasonableness of accounting estimates made by the directors, as well as evaluating the overall
presentation of the financial report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
Independence
In conducting our audit, we followed applicable independence requirements of Australian professional
ethical pronouncements and the Corporations Act 2001.
Independent Auditor’s Report
To the Members of United Uranium Limited (Continued)
Auditor's Opinion
In our opinion:
a. The financial report of United Uranium Limited is in accordance with the Corporations Act 2001, including:
i.
ii.
giving a true and fair view of the company’sfinancial position as at 30 June 2010 and of its performance for the year
ended on that date; and
complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the
Corporations Regulations 2001; and
b. The financial report also complies with International Financial Reporting Standards as disclosed in Note 1.
Report on the Remuneration Report
We have audited the Remuneration Report included within the report of the directors for the year ended 30 June 2010. The
directors of United Uranium Limited 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.
Auditor’s Opinion
In our opinion the Remuneration Report of United Uranium Limited for the year ended 30 June 2010, complies with section
300A of the Corporations Act 2001.
BENTLEYS
Chartered Accountants
CHRIS WATTS CA
Director
DATED at PERTH this 26th day of August 2010
Annual Report 2010
United Uranium Limited
CORPORATE GOVERNANCE
The Company is committed to implementing the highest standards of corporate governance. In determining
what those high standards should involve the Company has turned to the ASX Corporate Governance
Council’s Corporate Governance Principles and Recommendations. The Company is pleased to advise
that the Company’s practices are largely consistent with those ASX guidelines. As consistency with the
guidelines has been a gradual process, where the Company did not have certain policies or committees
recommended by the ASX Corporate Governance Council (the Council) in place during the reporting year,
we have identified such policies or committees.
Where the Company’s corporate governance practices do not correlate with the practices recommended by
the Council, the Company is working towards compliance however it does not consider that all the practices
are appropriate for the Company due to the size and scale of Company operations.A checklist summarising
the Company’s compliance with the Recommendations is also set out at the end of this statement.
Details of all of the recommendations can be found on the ASX Corporate Governance Council’s website at
http://www.asx.com.au/supervision/governance/index.htm.
PRINCIPLE 1: LAY SOLID FOUNDATIONS FOR MANAGEMENT AND OVERSIGHT
Board Charter
The Board is accountable to shareholders for the performance of the Company. The Board operates under
the Board Charter that details its functions, responsibilities and powers and those delegated to
management.
On appointment, non-executive directors receive formal letters of appointment setting out the terms and
conditions of appointment. The formal letter of appointment covers the matters referred to in the guidance
and commentary for Recommendation 1.1. Executive directors are employed pursuant to employment
agreements.
To assist the Board carry out its functions, it has developed a Code of Conduct to guide the Directors, the
Chief Executive Officer, the Chief Financial Officer and other key executives in the performance of their
roles.
PRINCIPLE 2: STRUCTURE THE BOARD TO ADD VALUE
Composition of the Board
The Board consists of an executive chairman, an executive director, and one non-executive director. Details
of their skills, experience and expertise and the period of office held by each director have been included in
the Directors’ Report. The number of board meetings and the attendance of the directors are set out in the
Directors’ Report.
The roles of Chairman and the Managing Director are not exercised by the same individual. The role of
Managing Director is carried out by Executive Director, Mr Lazarou. The Board Charter summarises the
roles and responsibilities of the Chairman, Mr Yan and the Managing Director, Mr Lazarou.
Independence of non-executive directors and the Chairman of the Board
The Board has assessed the independence of the non-executive director and the Chairman using defined
criteria of independence and materiality consistent with the guidance and commentary for Recommendation
the
2.1. The Chairman, Mr Yan does not satisfy
Recommendations.
independence as detailed
tests of
the
in
Although Mr Kong holds 79,500 fully paid ordinary shares in the Company, the Board considers this
immaterial. He is regarded as independent as Mr Kong is not a substantial shareholder as defined by the
Corporations Act.
The Company is at variance with Recommendations 2.1 and 2.2 in that the majority of directors are not
independent and the Chairman is not independent. The Board has determined that the composition of the
current Board represents the best mix of directors that have an appropriate range of qualifications and
expertise, can understand and competently deal with current and emerging business issues and can
effectively review and challenge the performance of the company. Furthermore, each individual member of
the Board is satisfied that whilst the Company may not comply with Recommendations 2.1 and 2.2, all
directors bring an independent judgment to bear on Board decisions.
51
Annual Report 2010
United Uranium Limited
Nomination and Remuneration Committee
The Company does not have an existing Nomination and Remuneration Committee as recommended in
Recommendation 2.4. As the whole Board only consists of three (3) members, it would not be a more
efficient mechanism than the full Board for focusing the Company on specific issues.
The responsibilities of a Nomination and Remuneration Committee would include devising criteria for Board
membership, regularly reviewing the need for various skills and experience on the Board and identifying
specific individuals for nomination as Directors for review by the Board. Currently the Board as a whole
performs this role.
Board renewal and succession planning
The appointment of directors is governed by the Company’s Constitution and the Appointment and
Selection of New Directors policy. In accordance with the Constitution of the Company, no director except a
Managing Director shall hold office for a continuous period in excess of three years or past the third annual
general meeting following the director's appointment, whichever is the longer, without submitting for re-
election. The Company has not adopted a policy in relation to the retirement or tenure of directors.
The appointment of the Company Secretary is a matter for the Board. Information on the skills, experience
and qualifications of the Company Secretary can be found in the Directors’ Report.
Evaluation of the performance of the Board, its committees and individual directors
The performance of the Board and individual directors are evaluated in accordance with the Performance
Evaluation Policies introduced via Board Charter on 1 March 2007. The objective of this evaluation will be to
provide best practice corporate governance to the Company. Board Performance Evaluation Policy is
available at the Company’s website.
Induction and education
When appointed to the Board, a new director will receive an induction appropriate to their experience.
Directors may participate in continuing education to update and enhance their skills and knowledge from
time to time, as considered appropriate.
Access to information and advice
Directors are entitled to request and receive such additional information as they consider necessary to
support informed decision-making. The Board also has a policy under which individual directors and Board
committees may obtain independent professional advice at the Company’s expense in relation to the
execution of their duties, after consultation with the Chairman.
PRINCIPLE 3: PROMOTE ETHICAL AND RESPONSIBLE DECISION MAKING
Code of Conduct
The Board has adopted a Code of Conduct which applies to all directors and officers of the Company. It
sets out United Uranium’s commitment to successfully conducting the business in accordance with all
applicable laws and regulations while demonstrating and promoting the highest ethical standards. The Code
of Conduct reflects the matters set out in the commentary and guidance for Recommendation 3.1.
Diversity Policy
Due to its size and scale of operations, the Company does not have an existing diversity policy as
recommended in Recommendation 3.2. The Company does not currently have permanent employees.
Details of each of the Board members and Company Secretary are disclosed in the Directors’ Report. The
Company Secretary,
The Board has determined that the composition of the current Board represents the best mix of directors
that have an appropriate range of qualifications and expertise, can understand and competently deal with
current and emerging business issues and can effectively review and challenge the performance of the
company.
The Code of Conduct is available on United Uranium’s website.
52
Annual Report 2010
United Uranium Limited
PRINCIPLE 4: SAFEGUARD INTEGRITY IN FINANCIAL REPORTING
Audit Committee
Due to the size and scale of operations of the Company the full Board undertakes the role of the Audit
Committee. Below is a summary of the role and responsibilities of an Audit Committee.
The Audit Committee is responsible for reviewing the integrity of the Company’s financial reporting and
overseeing the independence of the external auditors.
As the whole Board only consists of three (3) members, the Company does not have an audit committee
because it would not be a more efficient mechanism than the full Board for focusing the Company on
specific issues and an audit committee cannot be justified based on a cost-benefit analysis. However, in
accordance with the ASX Listing Rules, the Company is moving towards establishing an audit committee
consisting primarily of Independent Directors.
In the absence of an audit committee, the Board sets aside time to deal with issues and responsibilities
usually delegated to the audit committee to ensure the integrity of the financial statements of the Company
and the independence of the external auditor.
The Audit Committee or as at the date of this report the full Board of the Company reviews the audited
annual and half-yearly financial statements and any reports which accompany published financial
statements and recommends their approval to the members.
The Audit Committee or as at the date of this report the full Board of the Company is also responsible for
establishing policies on risk oversight and management.
External auditor
The Audit and Risk Committee or as at the date of this report the full Board of the company reviews the
external auditor’s terms of engagement and audit plan, and assesses the independence of the external
auditor. The current practice, subject to amendment in the event of legislative change, is for the rotation of
the engagement partner to occur every five years.
The Company’s independent external auditor is Bentley’s Audit and Corporate Advisory (WA) Pty Ltd
(“Bentley’s”). The appointment of Bentley’s was ratified by members at the Annual General Meeting held on
26 November 2008.
PRINCIPLE 5: MAKE TIMELY AND BALANCED DISCLOSURE
The Continuous Disclosure Policy sets out the key obligations of the directors and employees in relation to
continuous disclosure as well as the Company’s obligations under the Listing Rules and the Corporations
Act. The Policy also provides procedures for internal notification and external disclosure, as well as
procedures for promoting understanding of compliance with the disclosure requirements for monitoring
compliance. The Board has designated the Company Secretary as the person responsible for overseeing
and coordinating disclosure of information to the ASX as well as communicating with the ASX.
The Policy reflects the matters set out in the commentary and guidance for Recommendation 5.1.
The Continuous Disclosure Policy is available on United Uranium’s website.
PRINCIPLE 6: RESPECT THE RIGHTS OF SHAREHOLDERS
The Shareholder Communications Policy sets out the Company’s aims and practices in respect of
communicating with both current and prospective shareholders. The Policy reinforces the Company’s
commitment to promoting investor confidence by requiring:
(a) compliance with the continuous disclosure obligations;
(b) compliance with insider trading laws;
(c) compliance with financial reporting obligations;
(d) compliance with shareholder meeting requirements, including the provision of an opportunity
for shareholders and other stakeholders to hear from and put questions to the Board,
management and auditor of the Company;
(e) communication with shareholders in a clear, regular, timely and transparent manner; and
(f)
response to shareholder queries in a prompt and courteous manner.
The Policy reflects the matters set out in the commentary and guidance for Recommendation 6.1..
The Shareholder Communications Policy is available on United Uranium’s website.
53
Annual Report 2010
United Uranium Limited
PRINCIPLE 7: RECOGNISE AND MANAGE RISK
Risk Management Policy
United Uranium recognises that risk is inherent to any business activity and that managing risk effectively is
critical to the immediate and future success of the Company. As a result, the Board has adopted a Risk
Management Policy which sets out the Company’s system of risk oversight, management of material
business risks and internal control.
Risk oversight
The Board’s Charter clearly establishes that it is responsible for ensuring there is a sound system for
overseeing and managing risk. As the whole Board only consists of three (3) members, the Company does
not have a Risk Management Committee because it would not be a more efficient mechanism than the full
Board for focusing the Company on specific issues. At the date of this report the full Board of the Company
is responsible for establishing policies on risk oversight and management.
Reporting and assurance
In the absence of an audit committee, the Board sets aside time to deal with issues and responsibilities
usually delegated to the audit committee to ensure the integrity of the financial statements of the Company
and the independence of the external auditor.
As detailed in responsibilities of the Audit Committee the full Board of the Company reviews the audited
annual and half-yearly financial statements and any reports which accompany published financial
statements and recommends their approval to the members.
The Audit Committee or as at the date of this report the full Board of the Company is also responsible for
establishing policies on risk oversight and management.
The Risk Management Policy is available on the United Uranium website.
PRINCIPLE 8: REMUNERATE FAIRLY AND RESPONSIBLY
Nomination and Remuneration Committee
The Nomination and Remuneration Committee has delegated responsibilities in relation to the Company’s
remuneration policies as set out in the Nomination and Remuneration Committee Charter. The Charter
reflects the matters set out in the commentary and guidance for Recommendation 8.1.
As the whole Board only consists of three (3) members, the Company does not have a Nomination and
Remuneration Committee because it would not be a more efficient mechanism than the full Board for
focusing the Company on specific issues. The responsibilities of a Nomination and Remuneration
Committee are currently carried out by the board.
Non-executive directors’ remuneration policy
The structure of non-executive directors’ remuneration is clearly distinguished from that of executives.
Remuneration for non-executive directors is fixed. Non-Executive Directors are to be paid their fees out of
the maximum aggregate amount approved by shareholders for the remuneration of Non-Executive
Directors. Non-Executive Directors do not receive performance based bonuses and do not participate in
equity schemes of the Company.
Non-Executive Directors are entitled to but not necessarily paid statutory superannuation.
Executive directors’ remuneration policy
As noted previously, executive directors are employed pursuant to employment agreements. Summaries of
these employment agreements are set out in the Remuneration Report.
Further details regarding the remuneration arrangements of the Company are set out in the Remuneration
Report.
The checklist below summarises the Company’s compliance with the Recommendations.
54
Annual Report 2010
United Uranium Limited
Principles Recommendations
Compliance
Reference/
Explanation
Yes/No
Pr 1
Lay solid foundations for management and oversight
Rec 1.1
Companies should establish the functions reserved to the board
and those delegated to senior executives and disclose the
functions.
Rec 1.2
Companies should disclose the process for evaluation the
performance of senior executives.
Rec 1.3
Companies should provide the information indicated in the Guide
to reporting to Principle 1.
Pr 2
Structure the board to add value
Rec 2.1
A majority of the board should be independent directors.
Rec 2.2
The Chairman should be an independent director.
Rec 2.3
The roles of chairman and chief executive officer should not be
exercised by the same individual.
Rec 2.4
The board should establish a nomination committee
Rec 2.5
Companies should disclose
the
performance of the board, its committees and individual directors.
the process of evaluating
Rec 2.6
Companies should provide the information indicated in the Guide
to reporting to Principle 2
Pr 3
Promote ethical and responsible decision making
Yes
Yes
Yes
No
No
Yes
No
Yes
Yes
Website and
Page 54
Website and
Page 54
Website and
Page 54
Website and
Page 54
Website and
Page 54
Website and
Page 54
Website and
Page 55
Website and
Page 55
Website and
Page 55
Rec 3.1
Companies should establish a code of conduct and disclose the
code or a summary of the code as to:
Yes
Website and
Page 55
-
-
-
the practices necessary
company’s integrity
to maintain confidence
in
the
the practices necessary to take account of their legal
obligations and reasonable expectations of their stakeholders;
and
responsibility and accountability of
individuals
the
reporting and investigating reports of unethical practices.
for
Rec 3.2
Companies should establish a policy concerning diversity and
disclose the policy or a summary of that policy. The policy should
include requirements for the board to establish measurable
objectives for achieving gender diversity and for the board to
assess annually both the objectives and progress in achieving
them.
Rec 3.3
Companies should disclose in each annual report the measurable
objectives for achieving gender diversity set by the board in
accordance with the diversity policy and progress towards
achieving them.
No
Page 55
No
Page 55
55
Annual Report 2010
United Uranium Limited
Principles Recommendations
Rec 3.4
Companies should disclose in each annual report the proportion
of women employees in the whole organisation, women in senior
executive positions and women on the board
Compliance
Reference/
Explanation
Yes/No
No
Page 55
Rec 3.5
Companies should provide the information indicated in the Guide
to reporting on Principle 3.
Yes
Website and
Page 55
Pr 4
Safeguard integrity in financial reporting
Rec 4.1
The board should establish an audit committee.
Rec 4.2
The audit committee should be structured so that it:
No
No
Website and
Page 56
Website and
Page 56
- consists only of non-executive directors;
- consists of a majority of independent directors;
- is chaired by an independent chair, who is not the chair of the
board; and
- has at least three members.
Rec 4.3
The audit committee should have a formal charter.
Rec 4.4
Companies should provide the information indicated in the Guide
to reporting on Principle 4.
Pr 5
Make timely and balanced disclosure
Yes
Yes
Website and
Page 56
Website and
Page 56
Rec 5.1
Companies should establish written policies designed to ensure
compliance with ASX Listing Rule disclosure requirements and to
ensure accountability at a senior level for that compliance and
disclose those policies or a summary of those policies.
Yes
Website and
Page 56
Rec 5.2
Companies should provide the information indicated in the Guide
to reporting on Principle 5.
Yes
Website and
Page 56
Pr 6
Respect the rights of shareholders
Rec 6.1
Companies should design a communications policy for promoting
effective communication with shareholders and encouraging their
participation at general meetings and disclose their policy or a
summary of that policy.
Yes
Website and
Page 56
Rec 6.2
Company should provide the information indicated in the Guide to
reporting on Principle 6.
Yes
Website and
Page 56
56
Annual Report 2010
United Uranium Limited
Principles Recommendations
Pr 7
Recognise and manage risk
the oversight and
Companies should establish policies
management of material business risks and disclose a summary
of those policies.
for
The board should require management to design and implement
the risk management and internal control system to manage the
company’s material business risks and report to it on whether
those risks are being managed effectively. The board should
disclose
the
effectiveness of the company’s management of its material
business risks.
that management has reported
it as
to
to
Rec 7.1
Rec 7.2
Rec 7.3
Compliance
Reference/
Explanation
Yes/No
Yes
Yes
Website and
Page 57
Website and
Page 57
The board should disclose whether it has received assurance
from the chief executive officer (or equivalent) and the chief
financial officer (or equivalent) that the declaration provided in
accordance with section 295A of the Corporations Act is founded
on a sound system of risk management and internal control and
that the system is operating effectively in all material respects in
relation to financial reporting risks.
Yes
Website and
Page 57
Rec 7.4
Companies should provide the information indicated in the Guide
to reporting on Principle 7.
Yes
Website and
Page 57
Pr 8
Remunerate fairly and responsibly
Rec 8.1
The board should establish a remuneration committee.
Rec 8.2
The remuneration committee should be structured so that it:
-
-
-
consists of a majority of independent directors
is chaired by an independent director
has at least three members
Rec 8.3
Companies should clearly distinguish the structure of non-
executive directors’ remuneration from that of executive directors
and senior executives.
Rec 8.4
Companies should provide the information indicated in the Guide
to reporting on Principle 8.
No
No
Yes
Yes
Website and
Page 57
Website and
Page 57
Website and
Page 57
Website and
Page 57
57
Annual Report 2010
United Uranium Limited
ADDITIONAL SHAREHOLDER INFORMATION
Shareholding
The distribution of members and their holdings of equity securities in the company as at 12 August 2010 were
as follows:
Number Held as at 30 July 2010
Fully Paid Ordinary Shares
Class of Equity Securities
1-1,000
1,001 - 5,000
5,001 – 10,000
10,001 - 100,000
100,001 and over
Totals
23
202
208
305
39
778
Holders of less than a marketable parcel:- fully paid shares 178
Substantial Shareholders
The names of the substantial shareholders listed in the Company’s register as at 12 August 2010:
Shareholder
Cheng Rong Wang
Xibo Ma
Xing Yan
Unquoted Securities
The Company has no unquoted securities:
Voting Rights
Ordinary Shares
Number
4,510,500
3,340,000
2,650,000
In accordance with the Company's Constitution, on a show of hands every member present in person or by
proxy or attorney or duly authorised representative has one vote. On a poll every member present in
person or by proxy or attorney or duly authorised representative has one vote for every fully paid ordinary
share held.
58
Annual Report 2010
United Uranium Limited
ADDITIONAL SHAREHOLDER INFORMATION (Continued)
Twenty Largest Shareholders
The names of the twenty largest ordinary fully paid shareholders as at 12 August 2010 are as follows:
Name
Cheng Rong Wang
Xibo Ma
Xing Yan
Kam Lan Choo
You Lian Zheng
Austhong International Group Pty Ltd
United Mining Resources Pty Ltd
Western Investment Holding Pty Ltd
Kelmine Pty Ltd
You Lian Zheng
Hartnell Nominees Pty Ltd
FM104.9 Network Pty Ltd
Xiuzhen Liu
Xiuzhen Liu
Bessarlie Pty Ltd
Jian Luo Sun
Mr Christopher Kennedy
Juan Sheng Yan
Sari Nominees
Miss Dan Li and Mr Jian Jun Liu
TOTAL
Number of Ordinary Fully
Paid Shares Held
4,510,500
3,340,000
2,650,000
1,450,000
1,321,541
1,000,000
1,000,000
1,000,000
990,000
900,000
776,940
650,000
650,000
416,704
350,000
275,000
264,138
240,000
200,000
190,000
22,174,823
Held of Issued
Ordinary Capital (%)
12.05
8.92
7.08
3.87
3.53
2.67
2.67
2.67
2.64
2.40
2.08
1.74
1.74
1.11
0.93
0.73
0.71
0.64
0.53
0.51
59.23%
The names of the twenty largest holders of 20c options expiring 30 June 2012 as at 12 August 2010 are as
follows:
Name
Cheng Rong Wang
Xibo Ma
Kam Lan Choo
You Lian Zheng
Western Investment Holding Pty Ltd
Xing Yan
T Van Schilfgaarde & A Boland
M & K Korkidas Pty Ltd
United Mining Resources Pty Ltd
Austhong International Group Pty Ltd
You Lian Zheng
Xiuzhen Liu
FM104.9 Network Pty Ltd
Sook Foon Lee
Xiuzhen Liu
A Brien & M Brien
Bessarlie Pty Ltd
Teck Peow Lee
Jian Luo Sun
R Gemelli
TOTAL
Number of Ordinary Fully
Paid Shares Held
2,375,000
1,670,000
1,625,000
1,573,817
1,367,895
1,325,000
Held of Issued
Ordinary Capital (%)
12.69
8.92
8.68
8.41
7.31
7.08
1,000,000
924,400
500,000
500,000
450,000
325,000
325,000
225,000
208,352
184,908
175,000
166,803
137,500
130,500
15,189,175
5.34
4.94
2.67
2.67
2.41
1.74
1.74
1.20
1.11
0.99
0.94
0.89
0.74
0.70
81.17%
59
Annual Report 2010
United Uranium Limited
SCHEDULE OF MINERAL TENEMENTS
Project
Pine Creek
McArthur
Wiso
Wiso
Wiso
Dunmarra
Tenement
EL 24815
EL 25839
EL 25835
ELA 25836
ELA 25840
EL 25838
Equity
80%
80%
80%
80%
80%
80%
60