United Uranium Limited
(ACN 123 920 990)
Annual Report
For the Financial Year Ended 30 June 2011
Annual Report 2011
United Uranium Limited
CONTENTS
Corporate Directory
Directors’ Report
Auditor’s Independence Declaration
Statement of Comprehensive Income
Statement of Financial Position
Statement of Cash Flows
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
13
14
15
16
17
18
42
43
45
53
56
2
Annual Report 2011
United Uranium Limited
CORPORATE DIRECTORY
EXECUTIVE CHAIRMAN
Xing Yan (Simon)
EXECUTIVE DIRECTOR
George Lazarou
NON-EXECUTIVE DIRECTORS
Eric Kong
Feng Ding
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
3
Annual Report 2011
United Uranium Limited
DIRECTORS' REPORT
The directors of United Uranium Limited (the “Company”) submit herewith the financial report of the company
for the financial year ended 30 June 2011. 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
Mr Feng Ding
Executive Chairman
Executive Director
Non-Executive Director
Non-Executive Director (appointed 1 April 2011)
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
2,000,000 14.15 cent options exercisable on or before 30 April 2014
George Lazarou
Executive Director
Qualifications
BCom, CA
Experience
Mr Lazarou is a qualified Chartered Accountant who has over 17 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
2,000,000 14.15 cent options exercisable on or before 30 April 2014
4
Annual Report 2011
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
2,000,000 14.15 cent options exercisable on or before 30 April 2011
Feng Ding
Non-Executive Director
Qualifications
BSc, MBM
Experience
Mr Ding is a long standing employee of
the Institute of Geology and
Minerals. His education achievements include a Degree in Geophysical
Exploration and a Postgraduate Degree in Business Management. As
Managing Director of a very profitable mining operation (in excess of
$250million AUD profit in 2010) in Shandong Province, Mr Ding has a strong
blend of technical, commercial and business skills. He has had involvement
in all aspects of prospect
identification, exploration, appraisal and
development in the mining industry.
Interest in Shares
Interest in Options
Nil
Nil
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
Feng Ding
Company
-
Cortona Resources Limited
-
-
Period of directorship
-
Appointed 12 January 2006
-
-
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 9 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 2011
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 $652,340 (2010: loss of $486,220).
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)
During the 3rd quarter of 2010 a gradient array induced polarization (IP) / resistivity was undertaken over
the T1 target, with eight 800m long east west lines on 100m line spacing completed across the target
The gradient array survey defined a broad heart shaped chargeable zone (peak response
zone.
less well defined moderately conductive zone
15mV/V in a 2mV/V background) with a coincident
(resistivity low of 50 ohm-metres in a background of 100 ohm-metres) (see Figure 1).
Figure 1: T1 Target – Gradient Array Chargeability Image
A dipole – dipole induced polarization (IP) / resistivity traverse was completed on an east – west
orientation across the anomalous zone using a combination of 50m and 100m dipoles to define the
depth and thickness of the source. This work clearly identified a chargeable zone at about 100m depth
with a thickness of about 30m (see Figure 2).
6
Annual Report 2011
United Uranium Limited
DIRECTORS' REPORT (Continued)
5.
REVIEW OF OPERATIONS (Continued)
Figure 2: T1 Target – Dipole-Dipole Traverse Image
Interpretation of the data by consultant geophysicist Graham J. Elliott defined the target zone at T1 as a
flat lying semi-circular body about 100m below surface, 30m thick and at least 300m long by 300m wide.
The strongly chargeable and moderately conductive response suggests a disseminated sulphide or
graphitic body. There is also a magnetic response of a similar geometry immediately to the north west
of the chargeable / conductive zone.
An initial drill program consisting of up to four vertical RC holes designed to test the T1 chargeable /
conductive zone and associated magnetic response was completed between 18 and 22 July 2011. The
Company is currently awaiting the assay results from this program.
Subject to the outcome of the initial drilling program at T1 it is proposed to conduct ground based
electrical geophysical surveys across the T4 target and potentially two other lower order airborne EM
anomalies.
Pine Creek Project (EL24815)
All necessary drilling approvals have been received, however, the availability of a suitable drill rig to
date, due to a shortage of supply, has hindered the Company’s ability to commence its drilling program
at Pine Creek. The Company is hopeful it will be able to secure a drill rig shortly.
Dunmarra Basin (EL25838) and Wiso (EL25835)
The Board is currently reviewing its options in regards to both tenements.
1.2 Corporate
In March 2011, the Company raised $1.176 million through a placement of 5.6 million shares at
21 cents each to a controlled entity of the No.1 Institute of Geology and Minerals of Shandong
Province (“SDGM”).
The Company announced in March 2011 that
it has signed a Definitive Joint Venture
Agreement, which allows SDGM to earn up to a 50% interest in the tenements EL24815,
EL25835, EL25838, EL25839, ELA25836 and ELA25840 by spending a total of $3 million.
In April 2011, Mr Feng Ding a long standing General Manager of SDGM was appointed non-
executive Director of the Company.
In April 2011, the Company adopted a new Constitution pursuant to shareholder approval at its
General Meeting held on 27th April 2011.
Pursuant to shareholder approval at the Company’s General Meeting held on 27th April 2011,
the Company issued a total of 6.5 million 14.15 cents incentive options exercisable on or before
30 April 2014 to Directors and Consultant.
7
Annual Report 2011
United Uranium Limited
DIRECTORS' REPORT (Continued)
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 18 July 2011 the Company announced the commencement of a drilling program at the
McArthur Project.
8.
MEETINGS OF DIRECTORS
During the financial year, one meeting of directors was held. Attendances by each director during the
year is as follows:
Director
Xing Yan
George Lazarou
Eric Kong
Feng Ding
Directors Meetings
Number
Eligible to
Attend
1
1
1
-
Meetings
Attended
1
1
1
-
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.
10.
ENVIRONMENTAL ISSUES
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:
8
Annual Report 2011
United Uranium Limited
11.
REMUNERATION REPORT (Continued)
DIRECTORS' REPORT (Continued)
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 the government,
which is currently 9%, and do not receive any other retirement benefits.
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
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.
linked to the performance of
Performance based remuneration
The Company has no performance based remuneration component built into director and executive
remuneration packages.
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.
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Annual Report 2011
United Uranium Limited
11.
REMUNERATION REPORT (Continued)
DIRECTORS' REPORT (Continued)
Compensation of directors and executive for the year ended 30 June 2011
SHORT-TERM BENEFITS
POST EMPLOYMENT
SHARE-BASED PAYMENT
TOTAL
Salary
& Fees
Cash
Bonus
Non-
Monetary
Superannuation
Retirement
Benefits
Equity
Options
$
Directors
(Simon) Xing Yan – Executive Chairman
-
-
125,000
100,000
2011
2010
-
-
George Lazarou – Executive Director
2011
2010
84,334
62,000
-
-
Eric Kong – Non-Executive Director
2011
2010
43,335
42,400
-
-
Feng Ding- Non-Executive Director
-
-
2011
2010
Executive
Cecilia Chiu – Company Secretary *
-
-
2011
2010
46,400
45,600
Total Remuneration
2011
2010
299,069
250,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10,500
9,000
7,080
5,580
3,900
3,600
-
-
-
-
21,480
18,180
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
142,632
-
278,132
109,000
142,632
-
234,046
67,580
142,632
-
189,867
46,000
-
-
-
-
35,658
-
82,058
45,600
463,554
-
784,103
268,180
* 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 2011
A total of 6,500,000 compensation options were granted to directors and executive during the financial
year.
Share-based compensation to directors and executives during the current financial year
Fair
Value
per
option
at grant
date
% of
grant
vested
% of
grant
forfeited
No. vested
%
compensation
for year
consisting of
options
No.
granted
Date
granted
Name
(Simon)
Xing Yan
George
Lazarou
2,000,000
2,000,000
Eric Kong
2,000,000
27 April
2011
27 April
2011
27 April
2011
0.0499
2,000,000
100%
0.0499
2,000,000
100%
0.0499
2,000,000
100%
Feng Ding
-
-
-
-
-
(Appointed
1 April
2011)
Cecilia
Chiu
500,000
27 April
2011
0.0499
500,000
100%
10
-
-
-
-
-
51%
61%
75%
-
43%
Expiry
date
30 April
2014
30 April
2014
30 April
2014
First
exercise
date
Last
exercise
date
27 April
2011
27 April
2011
27 April
2011
30 April
2014
30 April
2014
30 April
2014
-
-
-
30 April
2014
27 April
2011
30 April
2014
Annual Report 2011
United Uranium Limited
11.
REMUNERATION REPORT (Continued)
DIRECTORS' REPORT (Continued)
For details on the valuation of the options, including models and assumptions used, please refer to Note
15. There were no alterations to the terms and conditions of options granted as remuneration since their
grant date.
No compensation options have been exercised or lapsed 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
30 April 2014
$0.20
$0.1415
18,712,576
6,500,000
Nil ordinary shares have been issued as a result of the exercise of options during or since the end of the
financial year.
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 $6,950. 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 2011 has been received and
can be found on page 13 of annual report.
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Annual Report 2011
United Uranium Limited
16.
NON-AUDIT SERVICES
DIRECTORS' REPORT (Continued)
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
auditors independence as set out
Accountants)
the services provided do not compromise the general principles relating to
in the APES 110 (Code of Ethics for Professional
No fees were paid or payable to the auditors for non-audit services performed during the year
ended 30 June 2011.
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 7th day of September 2011
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.
12
To The Board of Directors
Auditor’s
Corporations Act 2001
Independence Declaration under Section 307C of
the
This declaration is made in connection with our audit of the financial report of United Uranium
Limited for the year ended 30 June 2011 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 7th day of September 2011
Annual Report 2011
United Uranium Limited
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2011
Interest Revenue
Other Income
30 June 2011
30 June 2010
Note
$
237,522
100,000
$
163,250
-
Employee benefit expenses
(289,374)
(231,600)
Occupancy expenses
Depreciation expense
Consultancy expenses
Legal and compliance
Exploration expenses incurred
Impairment provision financial assets at fair value
Impairment provision capitalised exploration
expenditure
Share based payments
Administration expenses
(37,700)
(1,659)
(90,541)
(70,094)
(31,866)
-
(247)
(427,897)
(40,484)
(27,025)
(1,251)
(49,099)
(57,549)
-
(150,728)
(94,562)
-
(37,656)
Loss before income tax expense
Income tax expense
Net loss for the year
2
4
(652,340)
(486,220)
-
-
(652,340)
(486,220)
Other comprehensive income
-
-
Total comprehensive income
(652,340)
(486,220)
Basic loss per share (cents per share)
18
(1.7)
(1.3)
The accompanying notes form part of these financial statements.
14
Annual Report 2011
United Uranium Limited
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2011
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
Note
30 June 2011
$
30 June 2010
$
5
6
7
8
9
10
11
12
13
14
4,716,891
79,658
4,796,549
881,964
45,829
6,753
934,546
3,970,186
63,635
4,033,821
683,183
45,829
5,010
734,022
5,731,095
4,767,843
37,567
48,990
86,557
86,557
84,570
20,937
105,507
105,507
5,644,538
4,662,336
6,614,312
482,267
(1,452,041)
5,644,538
5,443,324
18,713
(799,701)
4,662,336
The accompanying notes form part of these financial statements.
15
Annual Report 2011
United Uranium Limited
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2011
Note
30 June 2011
$
30 June 2010
$
Cash Flows from Operating Activities
- Interest and other income
- Payments to suppliers and employees
- Payments for exploration and evaluation
316,954
(464,561)
(273,274)
Net cash used in operating activities
19 (ii)
(420,881)
Cash Flows from Investing Activities
- 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 increase/(decrease) in cash held
Cash at beginning of financial year
Cash at end of financial year
5
5
(3,402)
-
(3,402)
1,176,000
(5,012)
1,170,988
746,705
3,970,186
4,716,891
125,679
(380,067)
(251,717)
(506,105)
-
8,060
8,060
19,782
(19,003)
779
(497,266)
4,467,452
3,970,186
The accompanying notes form part of these financial statements
16
Annual Report 2011
United Uranium Limited
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2011
Balance at 1 July 2009
Loss for the year
Other comprehensive
income
Total comprehensive
income for the year
Issued
Capital
$
5,274,615
Option
Reserve
$
186,643
Accumulated
Losses
$
(313,481)
Total
$
5,147,777
-
-
-
-
-
-
(486,220)
(486,220)
-
-
(486,220)
(486,220)
Options converted
1,069
18,713
Transfer of option reserve to
issued capital
186,643
(186,643)
Asset revaluation reserve
(19,003)
-
-
-
-
19,782
-
(19,003)
Balance at 30 June 2010
5,443,324
18,713
(799,701)
4,662,336
Balance at 1 July 2010
Loss for the year
Other comprehensive
income
Total comprehensive
income for the year
Options Issued
Shares Issued
Capital raising costs
Issued
Capital
$
5,443,324
Option
Reserve
$
18,713
Accumulated
Losses
$
(799,701)
Total
$
4,662,336
-
-
-
-
1,176,000
(5,012)
-
-
-
463,554
-
-
(652,340)
(652,340)
-
-
(652,340)
(652,340)
-
-
-
463,554
1,176,000
(5,012)
Balance at 30 June 2011
6,614,312
482,267
(1,452,041)
5,644,538
.
The accompanying notes form part of these financial statements
17
Annual Report 2011
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
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
transactions, events and
in a financial report containing relevant and reliable information about
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
the financial report. The accounting policies have been consistently applied, unless otherwise
of
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
Statement of Financial Position.
(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.
18
Annual Report 2011
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
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.
(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.
19
Annual Report 2011
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(e) Goods and Services Tax (GST) (Continued)
Cash flows are included in the Statement of Cash Flows 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 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.
is the greater of
Recoverable amount
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.
fair value less costs to sell and value in use.
It
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 respect of taxable temporary differences associated with investments in 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.
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 transaction, affects neither the
the time of
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.
20
Annual Report 2011
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(g)
Income Tax (Continued)
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.
(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.
(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.
21
Annual Report 2011
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(l) Financial Instruments (Continued)
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
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.
liability is measured at
initial
b.
c.
d.
The effective interest method is used to allocate interest income or interest expense over the
to the rate that exactly discounts estimated future cash
relevant period and is equivalent
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
liability. Revisions to
instrument to the net carrying amount of the financial asset or financial
to the carrying value with a
expected future net cash flows will necessitate an adjustment
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.
i.
ii.
iii.
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 risk
management or investment strategy. Such assets are subsequently measured at fair value
with changes in carrying value being included in profit or loss.
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.
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.)
22
Annual Report 2011
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(l) Financial Instruments (Continued)
iv.
Financial liabilities
Non-derivative financial
measured at amortised cost.
liabilities (excluding financial guarantees) are subsequently
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.
the end of each reporting period,
Impairment
At
evidence that a financial
financial
determine whether an impairment has arisen.
statement of comprehensive income.
the Company assesses whether there is objective
instrument has been impaired. In the case of available-for-sale
instruments, a prolonged decline in the value of the instrument is considered to
losses are recognised in the
Impairment
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
liability extinguished or
expired. The difference between the carrying value of the financial
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,
the asset’s carrying value over its
recoverable amount is expensed to the statement of comprehensive income.
to the asset’s carrying value. Any excess of
is not possible to estimate the recoverable amount of an individual asset,
the
Where it
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.
23
Annual Report 2011
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(m) Plant and Equipment (continued)
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 Statement of Comprehensive Income. 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.
(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) 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).
These standards are applicable retrospectively and amend the classification and measurement of
financial assets. The Company has not yet determined the potential
impact on the financial
statements.
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;
24
Annual Report 2011
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(p) New Accounting Standards for Application in Future Periods (continued)
— 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
the
recognised in profit or loss and there is no impairment or recycling on disposal of
instrument; and
— reclassifying financial assets where there is a change in an entity’s business model as they
are initially classified based on:
the objective of the entity’s business model for managing the financial assets; and
the characteristics of the contractual cash flows.
a.
b.
AASB 1053: Application of Tiers of Australian Accounting Standards and AASB 2010–2:
Amendments to Australian Accounting Standards arising from Reduced Disclosure
Requirements [AASB 1, 2, 3, 5, 7, 8, 101, 102, 107, 108, 110, 111, 112, 116, 117, 119, 121,
123, 124, 127, 128, 131, 133, 134, 136, 137, 138, 140, 141, 1050 & 1052 and Interpretations
2, 4, 5, 15, 17, 127, 129 & 1052] (applicable for annual reporting periods commencing on or
after 1 July 2013).
AASB 1053 establishes a revised differential financial reporting framework consisting of two
tiers of financial reporting requirements for those entities preparing general purpose financial
statements:
-
-
Tier 1: Australian Accounting Standards; and
Tier 2: Australian Accounting Standards – Reduced Disclosure Requirements.
Tier 2 of
requirements of Tier 1, but contains significantly fewer disclosure requirements.
the framework comprises the recognition, measurement and presentation
for-profit private sector entities that have public accountability; and
the Australian Government and state, territory and local governments.
The following entities are required to apply Tier 1 reporting requirements (ie full IFRS):
-
-
Since the Company is a for-profit private sector entity that has public accountability, it does
not qualify for the reduced disclosure requirements for Tier 2 entities.
AASB 2010–2 makes amendments to Australian Accounting Standards and Interpretations
to give effect to the reduced disclosure requirements for Tier 2 entities.
It achieves this by
specifying the disclosure paragraphs that a Tier 2 entity need not comply with as well as
adding specific “RDR” disclosures.
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
IFRSs 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. The amendments are not expected to impact the Company.
AASB 2010–4: Further Amendments to Australian Accounting Standards arising from the
Annual Improvements Project [AASB 1, AASB 7, AASB 101 & AASB 134 and Interpretation
13] (applicable for annual reporting periods commencing on or after 1 January 2011).
This Standard details numerous non-urgent but necessary changes to Accounting Standards
arising from the IASB’s annual improvements project. Key changes include:
25
Annual Report 2011
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(p) New Accounting Standards for Application in Future Periods (continued)
-
-
-
-
-
clarifying the application of AASB 108 prior to an entity’s first Australian-Accounting-
Standards financial statements;
adding an explicit statement to AASB 7 that qualitative disclosures should be made in
the context of the quantitative disclosures to better enable users to evaluate an entity’s
exposure to risks arising from financial instruments;
amending AASB 101 to the effect that disaggregation of changes in each component of
equity arising from transactions recognised in other comprehensive income is required
to be presented, but is permitted to be presented in the statement of changes in equity
or in the notes;
adding a number of examples to the list of events or transactions that require disclosure
under AASB 134; and
making sundry editorial amendments to various Standards and Interpretations.
AASB 2010–5: Amendments to Australian Accounting Standards [AASB 1, 3, 4, 5, 101, 107,
112, 118, 119, 121, 132, 133, 134, 137, 139, 140, 1023 & 1038 and Interpretations 112, 115,
127, 132 & 1042] (applicable for annual reporting periods beginning on or after 1 January
2011).
This Standard makes numerous editorial amendments to a range of Australian Accounting
Standards and Interpretations, including amendments to reflect changes made to the text of
IFRSs by the IASB. However, these editorial amendments have no major impact on the
requirements of the respective amended pronouncements.
AASB 2010–6: Amendments to Australian Accounting Standards – Disclosures on Transfers
of Financial Assets [AASB 1 & AASB 7] (applicable for annual reporting periods beginning
on or after 1 July 2011).
This Standard adds and amends disclosure requirements about transfers of financial assets,
especially those in respect of the nature of the financial assets involved and the risks
associated with them. Accordingly, this Standard makes amendments to AASB 1: First-time
Instruments:
Adoption of Australian Accounting Standards, and AASB 7: Financial
Disclosures, establishing additional disclosure requirements in relation to transfers of
financial assets.
This Standard is not expected to impact the Company.
AASB 2010–7: Amendments to Australian Accounting Standards arising from AASB 9
(December 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132,
136, 137, 139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127] (applies to periods
beginning on or after 1 January 2013).
This Standard makes amendments to a range of Australian Accounting Standards and
Interpretations as a consequence of
the issuance of AASB 9: Financial Instruments in
December 2010. Accordingly, these amendments will only apply when the entity adopts
AASB 9.
As noted above, the Company has not yet determined any potential impact on the financial
statements from adopting AASB 9.
AASB 2010–8: Amendments to Australian Accounting Standards – Deferred Tax: Recovery
of Underlying Assets [AASB 112] (applies to periods beginning on or after 1 January 2012).
This Standard makes amendments to AASB 112: Income Taxes.
26
Annual Report 2011
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(p) New Accounting Standards for Application in Future Periods (continued)
The amendments brought
in by this Standard introduce a more practical approach for
measuring deferred tax liabilities and deferred tax assets when investment property is
measured using the fair value model under AASB 140: Investment Property.
Under the current AASB 112, the measurement of deferred tax liabilities and deferred tax
assets depends on whether an entity expects to recover an asset by using it or by selling it.
The amendments introduce a presumption that an investment property is recovered entirely
the investment property is held within a
through sale. This presumption is rebutted if
business model whose objective is to consume substantially all of the economic benefits
embodied in the investment property over time, rather than through sale.
The amendments brought
AASB 112.
in by this Standard also incorporate Interpretation 121 into
The amendments are not expected to impact the Company.
The financial report was authorised for issue on 7th September 2011 by the board of directors.
2.
LOSS FOR THE YEAR
Loss before income tax has been determined after
following specific expenses:
Employee benefits expense
- Salaries and entitlements
- 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
The components of tax expense comprise:
Current tax
Deferred tax
a.
b.
2011
$
289,374
-
247
2010
$
231,600
150,728
95,562
26,015
26,015
21,850
21,850
-
-
-
-
-
-
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%
(195,702)
(145,866)
27
Annual Report 2011
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
4.
INCOME TAX (Continued)
Add:
Tax effect of:
- Revenue losses not recognised
- Other deferred tax balances not recognised
- Other non-allowable
Less:
Tax effect of:
- Other allowable items
Income tax
2011
$
2010
$
65,085
-
138,790
8,173
8,173
-
116,520
29,346
-
-
-
-
The applicable weighted average effective tax rates
are as follows:
0%
0%
c.
Deferred tax recognized:
Deferred tax liabilities:
Exploration expenditure
Other
Deferred tax assets:
Carry forward revenue losses
Net deferred tax
d.
Unrecognised deferred tax assets:
Carry forward revenue losses
Capital raising costs
Financial assets
Provision and accruals
Other
(264,589)
(19,455)
(204,955)
(14,569)
284,034
-
242,891
108,104
7,996
21,987
39
381,017
219,524
-
177,446
24,690
108,104
11,885
117
322,242
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;
(b)
the Company continues to comply with the conditions for deductibility imposed by law; and
(c) no changes in income tax legislation adversely affect the Company in utilising the benefits.
28
Annual Report 2011
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
5. CASH AND CASH EQUIVALENTS
Current
Cash at Bank
6.
TRADE AND OTHER RECEIVABLES
Current
GST Receivable
Other Debtors
Prepayments
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
Non Current
Financial assets at fair value through profit or loss
Unlisted Shares, at recoverable amount
At cost
Provision for impairment
Listed Shares at fair value
Total Financial assets at
profit or loss
fair value through
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
29
2011
$
2010
$
19(i)
4,716,891
3,970,186
4,668
67,432
7,558
79,658
881,964
683,183
199,028
(247)
881,964
8,398
46,864
8,373
63,635
683,183
549,486
228,259
(94,562)
683,183
45,829
45,829
50,000
(50,000)
-
45,829
50,000
(50,000)
-
45,829
45,829
45,829
10,577
(3,824)
6,753
7,175
(2,165)
5,010
5,010
3,402
(1,659)
6,753
6,261
-
(1,251)
5,010
Annual Report 2011
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
10. TRADE AND OTHER PAYABLES
Current
Trade creditors
Other creditors and accruals
2011
$
3,979
33,588
37,567
2010
$
31,371
53,199
84,570
Trade creditors are non-interest bearing and are normally settled on 30 day terms.
11. PROVISIONS
Current
Employee benefits
12.
ISSUED CAPITAL
48,990
20,937
43,041,108 (2010: 37,441,108) fully paid ordinary
shares of no par value
6,614,312
5,443,324
(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
Placement
Capital raising (costs)/ refund
At reporting date
(b) Terms of Ordinary Shares
2011
2010
$
5,443,324
Number
37,441,108
$
5,274,615
Number
37,435,789
-
-
1,176,000
(5,012)
6,614,312
-
-
5,600,000
-
43,041,108
1,069
186,643
-
(19,003)
5,443,324
5,319
-
-
-
37,441,108
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.
30
Annual Report 2011
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
12.
ISSUED CAPITAL (Continued)
The working capital position of the Company at 30 June 2011 and 30 June 2010 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
13. RESERVES
Option reserve
Movements in options on issue:
2011
$
4,716,891
79,658
45,829
(37,567)
4,804,811
2010
$
3,970,186
63,635
45,829
(84,570)
3,995,080
482,267
18,713
At the beginning of the reporting year
18,713
18,712,576
186,643
3,000,000
2011
2010
$
Number
$
Number
Options issued during the year:
Options issued at $0.01 each,
exercisable at $0.20 on or before 30
June 2012
Directors and Consultants Options,
exercisable at $0.1415 on or before 30
April 2014
Transfer to issued capital
Options converted
Options expired
At reporting date
Terms of Options
-
-
18,718
18,717,895
463,554
-
-
-
482,267
6,500,000
-
-
-
25,212,576
-
(186,643)
(5)
-
18,713
-
-
(5,319)
(3,000,000)
18,712,576
At the end of reporting year, there were18,712,576 options over unissued shares exercisable at $0.20
on or before 30 June 2012 and 6,500,000 options over unissued shares exercisable at $0.1415 on or
before 30 April 2014.
14. ACCUMULATED LOSSES
Accumulated losses at the beginning of the reporting
year
Net loss attributable to members
2011
$
(799,701)
(652,340)
Accumulated losses at the end of the reporting year
(1,452,041)
2010
$
(313,481)
(486,220)
(799,701)
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
Feng Ding
Executive Chairman
Executive Director
Non-Executive Director
Non-Executive Director (Appointed 1 April 2011)
31
Annual Report 2011
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
15. KEY MANAGEMENT PERSONNEL DISCLOSURES (Continued)
(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
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 $100,000 per
annum on a full
for providing services to the Company as an
Executive Director. The agreement may be terminated by either party by providing 3 months written
notice and upon payment of any outstanding fees for services rendered.
time basis plus superannuation,
Pursuant to an extension letter dated 31 October 2010 the Board have agreed to extend Xing Yan’s
(Simon) current agreement by an additional year (until 30 April 2012), 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. On 4 March
2011, a resolution was passed by board of directors to increase Mr Yan’s salary to $150,000 per
annum, effective 1 March 2011.
On 4 March 2011, a resolution was passed by board of directors to increase Mr Kong’s salary to
$50,000 per annum.
It was also resolved to pay Mr Kong $30,000 per annum for consultancy work in
addition to his director’s salary, effective 1 March 2011. Mr Kong’s appointment will automatically
cease in the event that he gives notice to the board of his resignation as a director, or he resigns by
rotation and is not re-elected as a director by the shareholders of the Company.
Pursuant to a letter of appointment executed on 7 April 2011, Mr Ding will be paid $2,000 per Board
meeting attended as a Non-executive Director. Mr Ding’s appointment will automatically cease in the
event that he gives notice to the board of his resignation as a director, or he resigns by rotation and is
not re-elected as a director by the shareholders of the Company.
(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:
2011
$
252,668
21,480
427,897
702,045
2010
$
250,000
18,180
-
268,180
Salary and fees
Superannuation
Share-based payments
32
Annual Report 2011
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
15. KEY MANAGEMENT PERSONNEL DISCLOSURES (Continued)
(d) Compensation options: Granted and vested during the year
There were 6,500,000 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.
(f) Option holdings of key management personnel
2011
Balance
at
01.07.10
Granted as
Remuneration
Exercised/
Expired
Bought &
(Sold)
Balance
at
30.06.11
Total
Vested at
30.06.11
Total
Exercisable
at 30.06.11
Total
Unexercisable
at 30.06.11
Xing Yan (Simon)
1,825,000
2,000,000
George Lazarou
175,000
2,000,000
Eric Kong
39,750
2,000,000
Feng Ding
(appointed 1 April 2011)
-
-
2,039,750
6,000,000
-
-
-
-
-
-
-
-
-
-
3,825,000
3,825,000
3,825,000
2,175,000
2,175,000
2,039,750
2,039,750
-
-
2,175,000
2,039,750
-
8,039,750
8,039,750
8,039,750
-
-
-
-
-
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
-
2,000,000
-
-
-
-
(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
-
-
-
-
(g) Shareholdings of key management personnel
2011
Balance at
01.07.10
Granted as
Remuneration
On Exercise of
Options
Bought &
(Sold)
Balance at
30.06.11
Xing Yan (Simon)
George Lazarou
Eric Kong
Feng Ding (appointed
1 April 2011)
3,650,000
350,000
79,500
-
4,079,500
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,650,000
350,000
79,500
-
4,079,500
2010
Xing Yan (Simon)
George Lazarou
Eric Kong
Balance at
01.07.09
Granted as
Remuneration
On Exercise of
Options
Bought &
(Sold)
Balance at
30.06.10
3,650,000
350,000
79,500
4,079,500
-
-
-
-
-
-
-
-
-
-
-
-
3,650,000
350,000
79,500
4,079,500
33
Annual Report 2011
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
15. KEY MANAGEMENT PERSONNEL DISCLOSURES (Continued)
(h) Loans to key management personnel
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 there has been nil transactions with key management personnel.
16.
RELATED PARTY DISCLOSURES
Key management personnel
Disclosures relating to key management personnel are set out in note 15 and the Directors’ Report.
17. FINANCIAL INSTRUMENTS
(i)
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
financial
term deposits. The main
The Company’s principal
instruments is to earn the maximum amount of interest at a low risk to the
purpose of the financial
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.
instruments comprise cash and short
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)
(c)
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.
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.
34
Annual Report 2011
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
17. FINANCIAL INSTRUMENTS (Continued)
(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.
(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 Statement of Financial Position.
2011
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
2010
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
47,226
-
4,669,665
-
-
-
47,226
4,669,665
2.48%
5.88%
-
-
-
-
-
-
-
-
-
-
Floating
interest
rate
$
Fixed interest maturing in
over 1
year
less
than 5
$
more
than 5
years
$
1 year or
less
$
91,592
3,878,594
-
-
-
91,592
-
3,878,594
4.5%
3.55%
-
-
-
-
-
-
-
-
-
-
Trade and sundry payables are expected to be paid as follows:
Less than 6 months
35
-
-
-
-
-
-
-
-
-
-
-
-
Non-
Interest
bearing
$
Total
$
-
79,658
4,716,891
79,658
45,829
45,829
125,487
4,842,378
37,567
37,567
37,567
37,567
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
2011
$
37,567
37,567
2010
$
84,570
84,570
Annual Report 2011
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
17. FINANCIAL INSTRUMENTS (Continued)
(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:
Bannerman Resources Limited
2011
$
45,829
45,829
2010
$
45,829
45,829
(iv)
INTEREST RATE SENSITIVITY ANALYSIS
At 30 June 2011, 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%
2011
$
2010
$
(537,937)
(766,743)
(459,009)
(491,736)
5,758,941
5,530,735
4,689,547
4,656,819
The above interest rate sensitivity analysis has been performed on the assumption that all other
variables remain unchanged.
(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 2011, 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%
2011
Financial assets:
Financial assets at fair value through profit or loss:
—
—
listed investments
unlisted investments
2011
$
2010
$
(647,757)
(656,923)
(470,790)
(479,956)
Level 1
Level 2
Level 3
$
$
$
Total
$
45,829
-
45,829
-
-
-
-
-
-
45,829
-
45,829
36
Annual Report 2011
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
17. FINANCIAL INSTRUMENTS (Continued)
(v)PRICE SENSITIVITY ANALYSIS (Continued)
2010
Financial assets:
Financial assets at fair value through profit or loss:
—
—
listed investments
unlisted investments
Level 1
$
Level 2
$
Level 3
$
Total
$
45,829
-
45,829
-
-
-
-
-
-
45,829
-
45,829
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
2011
$
2010
$
(a) Loss used in the calculation of basic earnings per
(652,340)
(486,220)
share
(b) Weighted average number of ordinary shares
outstanding during the reporting period used in
calculation of basic earnings per share:
19.
CASH FLOW INFORMATION
(i) Reconciliation of cash and cash equivalent:-
Number of
shares
Number of
shares
39,328,231
37,441,108
2011
$
2010
$
Cash at Bank
4,716,891
3,970,186
(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
Share-based payments
(652,340)
1,659
-
247
463,554
(486,220)
1,251
150,728
94,562
-
Cash flows not included in loss after income tax for the year
- Payments for exploration and evaluation
(199,028)
(236,318)
Changes in assets and liabilities:
- (Increase)/ Decrease in trade and other receivables
- (Decrease)/ Increase in trade and other payables
- (Decrease)/ Increase in provisions
(16,023)
(47,002)
28,052
(28,642)
(11,992)
10,526
Net cash (outflows) from Operating Activities
(420,881)
(506,105)
37
Annual Report 2011
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
19.
CASH FLOW INFORMATION (Continued)
(iii) Non-cash financing and investing activities
No non-cash financing and investing activities have occurred during the year ended 30 June 2011.
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.
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.
38
Annual Report 2011
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
20.
SEGMENT INFORMATION (Continued)
Comparative information
This is the first
Comparative information has been stated to conform to the requirements of the Standard.
reporting period in which AASB 8: Operating Segments has been adopted.
(i) Segment performance
30 June 2011
Revenue
Interest and other revenue
Total segment revenue
Corporate
Uranium
Exploration
$
$
Total
$
237,522
100,000
237,522
100,000
337,522
337,522
Reconciliation of segment result to company net (loss)
before tax
Amounts not included in segment result but reviewed by the
Board:
•
•
Depreciation
Impairment provision
(1,659)
-
-
(247)
(1,659)
(247)
Unallocated items:
•
Other
Net loss before tax from continuing operations
30 June 2010
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
(987,956)
(652,340)
163,250
163,250
(1,251)
-
-
-
163,250
163,250
(1,251)
(150,728)
(94,562)
(245,290)
(402,929)
(486,220)
39
Annual Report 2011
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
20.
SEGMENT INFORMATION (Continued)
(ii) Segment assets
30 June 2011
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 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
(iii) Segment liabilities
30 June 2011
Segment liabilities
Reconciliation of segment liabilities to liabilities
Inter-segment eliminations
Unallocated liabilities:
•
Other liabilities
Total liabilities from continuing operations
40
Corporate
Uranium
Exploration
Total
$
$
$
4,762,720
881,964
5,644,684
-
-
198,781
198,781
-
-
86,411
5,731,095
4,016,016
683,183
4,699,199
-
-
-
133,697
133,697
-
-
-
-
68,644
4,767,843
22,940
-
22,940
63,617
86,557
Annual Report 2011
United Uranium Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
20.
SEGMENT INFORMATION (Continued)
30 June 2010
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
$
74,864
-
Uranium
Exploration
$
-
-
Total
$
74,864
-
30,643
105,507
There is no revenue attributable to external customers for the years ended 30 June 2011 and 2010.
(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 18 July 2011 the Company announced the commencement of a drilling program at the
McArthur Project.
22.
CONTINGENT LIABILITIES
In the opinion of the directors there were no contingent liabilities at 30 June 2011, and the interval
between 30 June 2011 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
1 to 5 years
5+ years
Exploration Commitment
Rental Commitment
371,000
-
-
15,600
-
-
(b) Lease expenditure commitments
There is one operating lease being a rental lease on the Company’s premises. The rental lease is for a 12
month period at $3,500 plus GST per month and expires on 31 October 2011.
41
Annual Report 2011
United Uranium Limited
DIRECTORS' DECLARATION
The directors of the company declare that:
1.
the financial statements and notes, as set out on pages 14 to 41 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 2011 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)
(b)
the financial records of the Company for the financial year have been properly maintained in
2001;
of
accordance
Corporations
section
with
286
Act
the
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 7th of September 2011
42
We have audited the accompanying financial report of United Uranium Limited, which
comprises the statement of financial position as at 30 June 2011, and the statement of
comprehensive income, statement of changes in equity and statement of cash flows for the
year then ended, notes comprising a summary of significant accounting policies and other
explanatory information, and the directors’ declaration of the Company at year end or from
time to time during the financial year.
The directors of the Company are responsible for the preparation and fair presentation of the
financial report in accordance with Australian Accounting Standards and the Corporations Act
2001 and for such internal control as the directors determine is necessary to enable the
preparation of the financial report that is free from material misstatement, whether due to fraud
or error. In Note 1, the directors also state, in accordance with Accounting Standards AASB
101: Presentation of Financial Statements, that the financial statements comply with
International Financial Reporting Standards.
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.
In conducting our audit, we followed applicable independence requirements of Australian professional ethical
pronouncements and the Corporations Act 2001.
In our opinion:
a. The financial report of United Uranium Limited is in accordance with the Corporations Act 2001, including:
i.
giving a true and fair view of the Company’s financial position as at 30 June 2011 and of its performance
for the year ended on that date; and
ii.
complying with Australian Accounting Standards and the Corporations Regulations 2001;
b. The financial report also complies with International Financial Reporting Standards as disclosed in Note 1.
We have audited the Remuneration Report included in directors’ report of the year ended 30 June 2011. The
directors of the Company are responsible for the preparation and presentation of the Remuneration Report in
accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
In our opinion, the Remuneration Report of United Uranium Limited for the year ended 30 June 2011, complies
with section 300A of the Corporations Act 2001.
BENTLEYS
Chartered Accountants
CHRIS WATTS CA
Director
DATED at PERTH this 7th day of September 2011
Annual Report 2011
United Uranium Limited
CORPORATE GOVERNANCE
In determining
The Company is committed to implementing the highest standards of corporate governance.
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 two non-executive directors. 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
2.1. The Chairman, Mr Yan does not satisfy the tests of independence as detailed in the Recommendations.
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.
Mr Ding is not an independent Non-Executive Director, as he has a substantial shareholding in the Company
through HD Mining & Investment Pty Ltd.
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.
45
Annual Report 2011
United Uranium Limited
PRINCIPLE 2: STRUCTURE THE BOARD TO ADD VALUE (Continued)
CORPORATE GOVERNANCE (Continued)
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 four (4) 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.
Trading in company shares
The share trading policy sets out the Company’s policy regarding the trading in Company securities, which
includes shares, options, warrants, debentures and any other security on issue from time to time. This policy is
separate from and additional to the legal constraints imposed by the common law, the Corporations Act and
ASX Listing Rules.
This policy applies to all Directors and employees of the Company and their associates (including spouses,
children, family trusts and family companies) as well as contractors, consultants, advisers and auditors of the
Company (“designated officers”).
The Share Trading Policy is available on United Uranium’s website.
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.
The Code of Conduct is available on United Uranium’s website.
46
Annual Report 2011
United Uranium Limited
CORPORATE GOVERNANCE (Continued)
PRINCIPLE 3: PROMOTE ETHICAL AND RESPONSIBLE DECISION MAKING (Continued)
Diversity Policy
The board has adopted a diversity policy which applies to all directors and officers of the Company. The
Company is committed to gender diversity across the organisation. Subject to current size and operations of
the company, the Board is strongly committed to a long term goal of achieving an equal representation of
female and male employees or consultants across the organisation over the next 5 years.
The board is primarily responsible for setting achievable objectives on gender diversity and monitoring the
progress of the Company towards them on an annual basis. The Company currently has no employees. During
2011 financial year, the Company had 2 female consultants providing corporate secretarial and accounting
services to the Company.
The Diversity Policy is available on United Uranium’s website.
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
overseeing the independence of the external auditors.
the Company’s financial reporting and
As the whole Board only consists of four (4) 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.
47
Annual Report 2011
United Uranium Limited
CORPORATE GOVERNANCE (Continued)
PRINCIPLE 5: MAKE TIMELY AND BALANCED DISCLOSURE (Continued)
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.
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
is responsible for ensuring there is a sound system for
The Board’s Charter clearly establishes that
overseeing and managing risk. As the whole Board only consists of four (4) 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.
it
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 four (4) 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.
48
Annual Report 2011
United Uranium Limited
CORPORATE GOVERNANCE (Continued)
PRINCIPLE 8: REMUNERATE FAIRLY AND RESPONSIBLY (Continued)
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 receive long term incentives in the form of shares or options in 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.
Principles
Recommendations
Compliance
Yes/No
Reference/
Explanation
Pr 1
Lay solid foundations for management and oversight
Rec 1.1
Rec 1.2
Rec 1.3
Companies should establish the functions reserved to the board
and those delegated to senior executives and disclose the
functions.
Companies should disclose the process for evaluation the
performance of senior executives.
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
Rec 2.6
Companies should disclose the process of evaluating the
performance of the board, its committees and individual directors.
Companies should provide the information indicated in the Guide
to reporting to Principle 2
Yes
Yes
Yes
No
No
Yes
No
Yes
Yes
Website and
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Website and
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Website and
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Website and
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Website and
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Website and
Page 45
Website and
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Website and
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Website and
Page 46
49
Annual Report 2011
United Uranium Limited
Principles
Recommendations
Compliance
Yes/No
Reference/
Explanation
Pr 3
Promote ethical and responsible decision making
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 46
-
-
-
the practices necessary to maintain confidence in the
company’s integrity
the practices necessary to take account of
legal
obligations and reasonable expectations of their stakeholders;
and
their
the responsibility and accountability of
reporting and investigating reports of unethical practices.
individuals 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.
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
Rec 3.5
Companies should provide the information indicated in the Guide
to reporting on Principle 3.
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:
- 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.
Yes
Website and
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Yes
Yes
Yes
No
No
Yes
Yes
Website and
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Website and
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Website and
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Website and
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Website and
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Website and
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Website and
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Annual Report 2011
United Uranium Limited
Principles
Recommendations
Compliance
Yes/No
Reference/
Explanation
Pr 5
Make timely and balanced disclosure
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.
Rec 5.2
Companies should provide the information indicated in the Guide
to reporting on Principle 5.
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.
Rec 6.2
Company should provide the information indicated in the Guide to
reporting on Principle 6.
Pr 7
Recognise and manage risk
Companies should establish policies for
the oversight and
management of material business risks and disclose a summary
of those policies.
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 that management has reported to it as to the
effectiveness of
its material
business risks.
the company’s management of
Rec 7.1
Rec 7.2
Rec 7.3
Yes
Yes
Yes
Yes
Yes
Yes
Website and
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Website and
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Website and
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Website and
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Website and
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Website and
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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
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Rec 7.4
Companies should provide the information indicated in the Guide
to reporting on Principle 7.
Yes
Website and
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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
-
-
-
-
No
No
Website and
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Website and
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Annual Report 2011
United Uranium Limited
Principles
Recommendations
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.
Compliance
Yes/No
Reference/
Explanation
Yes
Yes
Website and
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Website and
Page 49
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Annual Report 2011
United Uranium Limited
Shareholding
ADDITIONAL SHAREHOLDER INFORMATION
The distribution of members and their holdings of equity securities in the company as at 29 August 2011 were as
follows:
Number Held as at 29 August 2011
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
24
169
182
250
34
659
Holders of less than a marketable parcel: fully paid shares 204
Substantial Shareholders
The names of the substantial shareholders listed in the Company’s register as at 29 August 2011:
Shareholder
HD Mining & Investment Pty Ltd
Cheng Rong Wang
Xibo Ma
Xing Yan
Unquoted Securities
The Company has no unquoted securities.
Voting Rights
Ordinary Shares
Number
5,600,000
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.
53
Annual Report 2011
United Uranium Limited
ADDITIONAL SHAREHOLDER INFORMATION (Continued)
Twenty Largest Shareholders
The names of the twenty largest ordinary fully paid shareholders as at 29 August 2011 are as follows:
Name
HD Mining & Investment Pty Ltd
Cheng Rong Wang
Xibo Ma
Xing Yan
You Lian Zheng
You Lian Zheng
Kam Lan Choo
Western Investment Holding Pty Ltd
United Mining Resources Pty Ltd
Austhong International Group Pty Ltd
Kelmine Pty Ltd
Mr Lanchun Wu
Fonomes Pty Ltd
Paso Holdings Pty Ltd
FM104.9 Network Pty Ltd
Mrs Xiu Zhen Liu
Mrs Xiuzhen Liu
Bessarlie Pty Ltd
Mr Christopher Kennedy
Sari Nominees
TOTAL
Number of Ordinary Fully
Paid Shares Held
5,600,000
4,510,500
3,340,000
2,650,000
2,050,963
1,540,000
1,450,000
1,000,000
1,000,000
1,000,000
990,000
960,000
760,463
650,000
650,000
650,000
416,704
350,000
341,138
200,000
30,109,768
Held of Issued
Ordinary Capital (%)
13.01
10.48
7.76
6.16
4.77
3.58
3.67
2.32
2.32
2.32
2.30
2.23
1.77
1.51
1.51
1.51
0.97
0.81
0.79
0.47
69.96%
The names of the twenty largest holders of 20c options expiring 30 June 2012 as at 29 August 2011 are as
follows:
Name
Cheng Rong Wang
Xibo Ma
Kam Lan Choo
You Lian Zheng
M & K Korkidas Pty Ltd
Western Investment Holding Pty Ltd
Xing Yan
T Van Schilfgaarde & A Boland
You Lian Zheng
United Mining Resources Pty Ltd
Austhong International Group Pty Ltd
FM104.9 Network Pty Ltd
Mrs Xiu Zhen Liu
Sook Foon Lee
Mrs Karen Adele Wagner
Xiuzhen Liu
Bessarlie Pty Ltd
Stoneham Holdings Aus Pty Ltd
Stephen Brockhurst
Daniel Marshall
TOTAL
Number of Options
Held
2,375,000
1,670,000
1,625,000
1,573,817
1,376,950
1,367,895
1,325,000
Held of Issued
Ordinary Capital (%)
12.69
8.93
8.68
8.41
7.36
7.31
7.08
1,000,000
770,000
500,000
500,000
325,000
325,000
225,000
216,803
208,352
175,000
125,000
100,001
100,000
15,883,818
5.34
4.11
2.67
2.67
1.74
1.74
1.20
1.16
1.11
0.94
0.67
0.54
0.54
84.89%
54
Annual Report 2011
United Uranium Limited
The names of the twenty largest holders of 14.15c options expiring 30 April 2014 as at 29 August 2011 are as
follows:
Name
Bessarlie Pty Ltd
United Mining Resources Pty Ltd
Atlis West Pty Ltd
Cecilia Chiu
TOTAL
Number of Options
Held
2,000,000
2,000,000
2,000,000
500,000
6,500,000
Held of Issued
Ordinary Capital (%)
30.77
30.77
30.77
7.69
100.00%
55
Annual Report 2011
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%
56