Viking Mines Limited
ABN 38 126 200 280
Annual report
for the year ended 30 June 2017
Viking Mines Limited
ABN 38 126 200 280
CONTENTS
Corporate information
Chairman’s letter
Operations report
Directors’ report
Auditor’s independence declaration
Statement of comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Directors’ declaration
Independent auditor’s report to the members
ASX additional information
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12
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38
39
41
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Viking Mines Limited
ABN 38 126 200 280
CORPORATE INFORMATION
Directors
Executive Chairman:
Executive Director:
Non-Executive Deputy Chairman: Raymond Whitten
John (Jack) Gardner
Peter McMickan
Company secretary
Michael Langoulant
Registered office
Suite 2, Level 1, 47 Havelock Street
West Perth WA 6005
Website www.vikingmines.com Email: info@vikingmines.com
Ph: (61-8) 6313 5151
Fax (61-8) 9322 8892
Share registry
Computershare Investor Services Pty Limited
Level 11, 172 St Georges Terrace
Perth WA 6000
Email: web.queries@computershare.com.au
Ph: 1 300 787 272
Fax: (08) 9323 2033
Solicitor
Jackson MacDonald
Level 17, 225 St Georges Terrace
Perth WA 6000
Auditor
Rothsay Chartered Accountants
Level 1, Lincoln Building
4 Ventnor Avenue
West Perth WA 6005
Stock Exchange Listing
Australian Securities Exchange (ASX code: VKA)
3
Viking Mines Limited
ABN 38 126 200 280
CHAIRMANS LETTER
Dear fellow shareholders,
Your Board of Directors is pleased to present the eighth Viking Mines Limited (“Viking” or the “Company”) annual
report.
As we go to press, I am pleased to report that your company is in a strong cash position, for a junior exploration &
mining company. Of the USD 8 million cash component of the Akoase sale, USD 5 million has been received, with a
further USD 3 million expected by December.
Your directors operate with low overheads so that most funds are applied to projects. We have been actively searching
for mature projects rather than greenfields opportunities, as exploration can be a risky business.
Gold offers attractive opportunities when care is taken in selection. Your directors have concentrated on the
extraordinarily endowed Ashanti Gold Belt in Ghana. I am particularly pleased to note that Viking will shortly be
awarded the Tumentu lease, with its drill-ready targets. We are pursuing a number of other opportunities in the Ashanti
belt with the view of building a world class suite of mature gold properties.
Viking is investigating hard rock tin-lithium opportunities in the world class regional belt stretching from Myanmar
through Thailand into Malaysia, Hard rock tin associated with lithium rich micas is particularly attractive in Thailand
where the Government is supportive of lithium battery development.. Tin itself has become an attractive commodity
and lithium continues its strong growth.
As previously advised your company seeks particular minerals including gold, copper, zinc and manganese, in
jurisdictions where it expects to operate safely. We have searched in Australia but to date have not found a project of
value compared with going offshore, where we can bring the extensive experience of your directors to bear.
On behalf of the Board I also thank our new investors and existing shareholders for your continued support, and we
look forward to keeping you informed of our progress during 2018.
Yours faithfully
Jack Gardner
Executive Chairman
4
Viking Mines Limited
ABN 38 126 200 280
OPERATIONS REPORT
The focus of Viking Mines Ltd (Viking or the Company) activities over the past year was to crystallise receipt of the
sale proceeds from the sale of its Ghana located Akoase gold project, while seeking new projects to acquire.
As at the date of this report the Company has received USD5 million cash sales proceeds from the sale of the Akoase
gold project, and USD3 million due to be paid by 31 December 2017.
The Company’s search for a new project led to a transaction to acquire a lithium project in Thailand. After considerable
effort and early exploration promise this acquisition did not proceed as Viking formed the view that certain key
condition precedents could not be met.
Figure 1: Viking Mines Project Locations
Figure 2: Viking Mines Gold Project Locations, Southern Ghana
5
Viking Mines Limited
ABN 38 126 200 280
Ghana Projects
The Viking Mines mineral licences are located in southern Ghana, West Africa (Figure 2) in one of the most strongly
gold endowed and tightly held geological provinces in the world, the Ashanti Gold Belt. Numerous multi-million ounce
gold deposits are located within and on the margins of the Ashanti Gold Belt, including two of the largest gold deposits
in the world, Obuasi and Tarkwa.
Akoase Gold Project (Viking 100% - reducing to 0% upon completion of sale)
In June 2015 the Company announced that it is had executed a sale contract for the Akoase Gold Project for an overall
transaction value of US$10 million, of which USD 8.0 million was to be paid in cash.
At the date of this report Viking has been paid USD5 million in sales proceeds (USD3 million having been received
since the end of the financial year).
Securing and completing the necessary documentation to be granted government approval to this sale was a focus of the
Company during the first half of the financial year. Receipt of government approvals occurred in December 2016. . The
remaining USD 3 million is due in December 2017 and covered by a Guarantee of payment from BXC Ghana Ltd.
(Refer to ASX announcement re Deed of Acknowledgement May 2017).
Current Akoase sale and the Deed of Acknowledgement summary:
USD5 million – paid to date,
USD 3 million to be paid by 31 December 2017*, and
a further USD 2 million via royalties from production.
* This payment date is subject to a 30 day buffer before BXC Ghana is considered to be in default such that penalty
interest applies to the overdue amount.
The Board of Viking remains extremely confident that the balance of the Akoase sale proceeds will be received in a
timely manner.
An Inferred mineral resource estimate, classified in accordance with the JORC (2012) Code, of 20.6 Mt @ 1.2 g/t Au
for 790,000 ounces of contained gold, at a 0.5 g/t Au cut-off was completed for the Akoase East deposit in September
2013. The Akoase resource is reported in the Mineral Resources Statement below in Table 1.
Tumentu Gold Project (Viking 100%) [formerly part of West Star Joint Venture]
Viking previously held the hard rock rights to the West Star gold project, which is located approximately 185km west
of Accra (Figure 2), with sealed road access within 5km and grid power within 10km of the project area. The tenement
holder and Joint Venture partner held the alluvial rights on the project.
As a result of alleged non-compliance with the Mining Act by the Joint Venture partner the original joint venture
tenements have been rescinded/or will not be renewed.
Notwithstanding the above Viking’s Ghanaian subsidiary has, lodged a prospecting licence application (the Tumentu
licence application) over the majority of the area of the previous West Star prospecting licence. Viking is of the view
that the new Tumentu prospecting licence application contains the most prospective area from the previous joint
venture. Upon the Tumentu licence being granted Viking will proceed with a previously planned reconnaissance drill
program to test a strong gold in soil anomaly located adjacent to the Salman shear zone.
Thailand Lithium Project
In November 2016, Viking entered into an agreement with Argo Metals Group Limited (Argo) and its shareholders to
acquire a lithium project, and an option to acquire a tungsten project, both in southern Thailand. Early sample results
from the project areas were promising; however key conditions precedent to the acquisition remained outstanding more
than 6 months after entering into the agreement.
Thus in May 2017, Viking issued a formal Notice of Termination to Argo that it would not proceed with the acquisition
of Argo as Viking felt these key conditions precedent to the acquisition were no longer considered achievable.
Prior to terminating this acquisition Viking did undertake field sampling and other geological activities on the Thailand
projects. As Viking is not proceeding with the acquisition the results of these activities have not been reported.
Viking is actively considering other tin-lithium project opportunities in this region.
6
Viking Mines Limited
ABN 38 126 200 280
Mongolia Projects
Mongolia is a nation rich in mineral resources situated between two of the world’s largest economies. It has the
advantage of prospective geology and proximity to markets and, as a result, has attracted significant investment to the
country in recent years. Viking holds two advanced coal projects in Mongolia (Figure 3).
Berkh Uul
Ulaanbaatar
Khonkhor Zag
Berkh Uul Coal Project (Viking 100%)
Figure 3: Viking Mines Coal Project Locations, Mongolia
Berkh Uul is located 400 km north of Ulaanbaatar in northern Mongolia within the Orkhon-Selege coal district and
within 20km of the Russian border (Figure 3). The project is within 40km of rail access into Russian off-take markets,
in close proximity to water, infrastructure and transport.
The deposit consists of shallow, consistent coal seams of high quality bituminous coal amenable to open pit mining.
Discussions had confirmed a local industrial demand for unwashed Berkh Uul coal, due to its low ash and relatively
high calorific value. Four MOU’s have been signed with government entities in the Darkhan region. The MOU’s,
signed with Viking’s Mongolian subsidiary BRX LLC state the government entities intent to enter into future purchase
agreements for Berkh Uul project coal, and establishes testing of a bulk sample as a basis for technical evaluation of the
coal.
In 2015 a Mongolian Government review of the Law on Prohibiting Mineral Exploration and Extraction near Water
Sources, Protected Areas and Forests (commonly referred to as the “Long Name Law”) resulted in Viking being
advised that approximately 53% of the Berkh Uul prospecting licence falls within a headwaters of rivers zone and is
subject to a determination of an exclusion zone under the Long Name Law. This government determination impacts
upon the Company’s current coal resource.
During the year Viking continued its efforts to reverse/amend this ruling. A site visit with various federal and local
government officials was conducted and numerous submissions were made to the government on this matter. Viking
continues to seek a resolution relating to changes to boundaries of protected areas affecting the Berkh Uul prospecting
license. However with no guidance currently forthcoming from either the Ministry for Mines and Heavy Industry or
Environmental Ministry, the Company is considering its legal options.
The Berkh Uul deposit has a JORC (2012) coal resource of 38.3 Mt. Of this, 21.4Mt is classified as Indicated and
16.9Mt classified as Inferred. The coal is bituminous in rank (ASTM classification) with average in situ quality as
follows: Total Moisture 19.8%, Calorific Value 5,323 kcal/kg (air dried basis, adb), Ash 15.5% (adb), and Total
Sulphur 0.37% (adb).
The Berkh Uul resource is reported in the Mineral Resources Statement below in Tables 2and 3.
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Viking Mines Limited
ABN 38 126 200 280
Khonkhor Zag Coal Project (Viking 100%)
Khonkor Zag is an anthracitic coal project located 1,400km southwest of Ulaanbaatar in Western Mongolia (Figure 3).
It is strategically located within 40km of China’s Burgastai border port with an existing haul road adjoining the
tenement.
The current mining licence was granted in April 2013, for a period of 30 years.
Government approvals have already been received for the Khonkhor Zag Environmental Impact Assessment, and the
Feasibility Study Report, which provides a clear pathway for any future mining and coal production at Khonkhor Zag.
Excellent scope exists to develop Khonkhor Zag as a low cost, high margin premium coal project close to Chinese
markets.
No on-ground work was undertaken during the year. Joint venture partners are currently being sought to assist with
development of the project.
Corporate
In the 2017/2018 financial year the company will drill the Tumentu gold project in Ghana and continue to seek
development or sale opportunities for its Mongolian coal projects.
It remains your Company’s policy to give priority to more mature exploration opportunities over greenfields exploration
due to the inherent lower risk, and shorter lead time to production. We have the experience of management to take
mature projects forward.
Australia presents a very competitive market today for gold, base metals, lithium and other specialty mineral projects; to
date your Company has not found an advanced project out of many presented, to which it can add significant value. We
continue to seek a suitable Australian project.
Of the preferred overseas destinations, Ghana in particular presents advanced gold properties to the Company. This is
partly a consequence of your board’s long association there. The Company will continue to build a suite of advanced
gold exploration projects in one of the world’s most endowed gold provinces, where the Government is stable and
mining friendly.
The Company will carefully asses all projects presented to it with a view to exploiting its strong cash position for the
maximum benefit of all shareholders.
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Viking Mines Limited
ABN 38 126 200 280
Mineral Resources Statement
The Mineral Resources statement for the Company, as at 30 June 2017 is summarized below:
1. Akoase Gold Project, southern Ghana, Viking 100% ownership reducing to 0% upon completion of sale
The Akoase East resource has been independently estimated by internationally recognized and qualified resource
consultancy GHD Pty Ltd in accordance with the JORC (2012) Code. An Inferred mineral resource estimate of 20.6 Mt
@ 1.2 g/t Au for 790,000 ounces of contained gold, at a 0.5 g/t Au cut-off was completed for the Akoase East deposit in
September 2013 (Table 1).
The Akoase East resource estimate is based on geological, drilling and assay information up to the end of August 2013.
It includes approximately 10,000 metres of historical Reverse Circulation (RC) drilling data, plus data from
approximately 10,000 metres of RC and 3,000 metres of diamond drilling completed by Viking between 2010 and
2013.
Table 1: Akoase East JORC (2012) Inferred Resource Estimate (September 2013)
Au g/t
1.2
1.2
1.3
1.5
Million tonnes
21.6
20.6
16.9
12.0
Oz Au (x 1,000)
800
790
710
570
TOTAL
Cut off (g/t Au)
0.4
0.5
0.75
1.0
BY WEATHERING TYPE
Oxide
Cut off (g/t Au)
0.4
0.5
0.75
1.0
Fresh
Cut off (g/t Au)
0.4
0.5
0.75
1.0
Ordinary Kriging whole block estimates using 25mE x 25mN x 10mRL parent block dimensions. Reported using gold
(Au) lower cut-off grades (preferred cut-off is 0.5 g/t Au). Using rounded figures in accordance with the Australian
JORC Code (2012) guidance on Mineral Resource Reporting.
Oz Au (x 1,000)
220
217
194
156
Oz Au (x 1,000)
581
570
518
417
Million tonnes
5.9
5.7
4.6
3.2
Million tonnes
15.6
14.8
12.3
8.7
Au g/t
1.2
1.2
1.3
1.5
Au g/t
1.2
1.2
1.3
1.5
Viking is not aware of any new information or data that materially affects the above resource calculation, and that all
material assumptions and technical parameters underpinning the estimated resource continue to apply and have not
materially changed.
The Akoase East resource estimate and associated report was completed by internationally recognised resource
consultants GHD Pty Ltd in September 2013. The resource estimate has been reviewed by Viking’s Competent person,
Mr Peter McMickan, who is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM), member
number 105742.
Mr McMickan has approved to the Akoase East resource estimation as outlined in this report in accordance with the
requirements of the JORC Code (2012) and ASX Rules.
2. Berkh Uul Coal Project, northern Mongolia, Viking 100% ownership
An Indicated and Inferred coal resource estimate, classified in accordance with the JORC (2012) Code, for the Berkh
Uul coal project was completed in March 2014. The resource estimate was completed for Auminco Mines Ltd by
internationally recognized and qualified consultancy group, RungePincockMinarco Ltd, and totals 38.3 Mt. Of this,
21.4Mt is classified as Indicated and 16.9Mt classified as Inferred (Table 2). The coal is bituminous in rank (ASTM
classification) with average in situ quality as follows: Total Moisture 19.8%, Calorific Value 5,323 kcal/kg (air dried
basis, adb), Ash 15.5% (adb), and Total Sulphur 0.37% (adb) (Table 3).
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Viking Mines Limited
ABN 38 126 200 280
Tables 2and 3: Berkh Uul JORC (2012) Indicated and Inferred Resource Estimate (February 2014)
Table 2: Berkh Uul JORC (2012) Coal Resource Tonnage (million tonnes in situ)
Resource type
Seam
Open Cut
Underground
1
2
OC subtotal
1
2
UG subtotal
Grand Total
Measured
_
_
_
_
_
_
_
Indicated
Inferred
Total
4.4
2.6
7.0
8.2
6.2
14.4
21.4
3.5
0.3
3.9
8.3
4.8
13.1
16.9
7.9
3.0
10.9
16.5
10.9
27.4
38.3
Sum of columns may not equal the total due to rounding
Table 3: Berkh Uul JORC (2012) Coal Resource Quality
Resource
type
category
Seam
Open Cut
Ind
Inf
1
2
subtotal
1
2
subtotal
TM
(%)
20.8
21.0
20.9
18.9
20.9
19.1
IM
(%)
13.5
13.7
13.6
12.0
13.8
12.1
Ash
(%
adb)
14.4
9.8
12.7
20.1
10.0
19.2
VM
(%
adb)
32.6
34.9
33.4
30.9
34.5
31.2
FC
(%
adb)
39.5
41.6
40.3
37.1
41.7
37.5
TS (%
adb)
CV
(kcal/kg
adb)
0.34
0.35
0.34
0.37
0.37
0.37
5373
5693
5493
5011
5684
5066
Rdis
1.35
1.31
1.33
1.39
1.32
1.38
OC subtotal
20.3
13.1
15.0
32.6
39.3
0.35
5342
1.35
Underground
Ind
Inf
1
2
subtotal
1
2
18.9
20.9
19.7
18.7
21
subtotal
19.6
12.2
13.7
12.8
12.0
13.8
12.6
18.8
10.3
15.2
19.6
10.6
16.3
31.3
33.9
32.4
31.0
33.8
32.0
37.8
42.0
39.6
37.4
41.8
39.0
0.34
0.42
0.37
0.35
0.43
0.38
5110
5681
5355
5050
5657
5272
1.38
1.32
1.35
1.39
1.32
1.36
UG subtotal
19.6
12.7
15.7
32.2
39.3
0.38
5313
1.36
Grand Total
19.8
12.8
15.5
32.3
39.3
0.37
5323
1.35
Note: Air Dried Basis(adb); TM- total Moisture; IM-Inherent Moisture; VM-Volatile Matter; FC – Fixed Carbon; TS-
Total Sulphur; CV- Calorific Value; Rdis- in situ Relative Density. Sum of columns may not equal the total due to
rounding
The principal author of the Berkh Uul resource estimate and associated report is Mr Brendan Stats, who is a
professional geologist with over 10 years’ experience in mining and mineral resource estimation. Mr Stats is a Senior
Geologist of RungePincockMinarco Pty Ltd and a Member of the Australasian Institute of Mining and Metallurgy
member number 311313.
Mr Stats is responsible for the Berkh Uul resource estimation and has sufficient experience that is relevant to the style
of mineralisation and type of deposit under consideration and for the activity to report a mineral resource. Mr Stats has
approved the Berkh Uul resource estimation as outlined in this report in accordance with the requirements of the JORC
Code (2012) and ASX Rules.
10
Viking Mines Limited
ABN 38 126 200 280
Peter McMickan
Executive Director
Forward Looking Statements: This document may include forward looking statements. Forward looking statements may include,
but are not limited to statements concerning Viking Mines Limited’s planned exploration programs and other statements that are not
historical facts. When used in this document, words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”,
“should”, and similar expressions are forward looking statements. Although Viking Mines Limited believes that its expectations
reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be
given that actual results will be consistent with these forward looking statements.
11
Viking Mines Limited
ABN 38 126 200 280
DIRECTORS’ REPORT
Your Directors present their annual financial report on the consolidated entity (referred to hereafter as the “Group”) consisting
of Viking Mines Limited (the “Company” or “Parent”) and the entities it controlled at the end of, or during, the financial year
ended 30 June 2017. In order to comply with the Corporations Act, the Directors report as follows:
Directors
The following persons were Directors of the Company during the whole of the financial period and up to the date of this
report:
John William (Jack) Gardner (Executive Chairman)
Jack Gardner was appointed a Director on 27th July 2007. He graduated with Bachelor of Engineering from the University of
Melbourne in 1962 and has a Master of Business degree from Curtin University. He is a Fellow of The Institution of Engineers
Australia.
Mr Gardner has a long and distinguished career in servicing the mining industry in Australia as well as in West Africa. As a
Director and General Manager of Minproc Engineers he was responsible for design and construction of gold and base metal
plants. He established Minproc in Ghana where the company became that country’s leading mining project engineers.
In Ghana he also headed Ghana Manganese Company (GMC) as Executive Chairman after negotiating its purchase from the
Government of Ghana. Privately owned, GMC grew from 300,000 tpa to 1.7 million tpa of manganese carbonate shipments,
until it was acquired for cash. Mr Gardner has been a Director of Mincor Resources Limited since its inception and 1996 ASX
listing.
Mr Gardner was also associated with Guinor from 1993, overseeing a number of expansions of the Lero heap leach project,
and was pivotal in the development of the 350,000 oz pa LEFA Corridor gold Project. Guinor was acquired by Crew Gold
Corporation Inc.
Peter McMickan (Executive Director)
Peter McMickan was appointed a Director on 27th July 2007. He graduated with an Honours Degree in Geology from the
University of Melbourne, Australia in 1977 and has post-graduate qualifications in Mineral Economics from Macquarie
University and is a Member of the Australasian Institute of Mining and Metallurgy.
His professional career has spanned 34 years worldwide with a number of major, well respected international exploration and
mining companies including Newmont, Pancontinental Mining, BP Minerals, Kalgoorlie Consolidated Gold Mines and
Homestake. He is a highly regarded geologist and manager, with a proven track record of business and technical success
throughout his career.
His experience covers corporate, senior management and technical supervision of mining, development and exploration
projects throughout Australia, Africa and Europe. He managed the mine geology, exploration and successful resource
development of Guinor’s Lero gold project in Guinea, West Africa. During his four years with the company, the company’s
exploration spend increased to US$1 million per month, which sustained the existing heap leach operation and resulted in
expansion of the resource to over 4Moz of gold in the space of two years. This expanded resource base underpinned a major
re-development of the Lero project to a 6Mtpa CIP/CIL operation producing 350,000 ounces of gold per year.
Raymond Whitten (Non-Executive Director & Deputy Chairman)
Raymond Whitten was appointed a director on 29 October 2014. Mr Whitten is an admitted solicitor with over 40 years’
experience having previously acted as President of the City of Sydney Law Society.
Mr Whitten is an experienced investor with a wide range of investment interests and has served as a Director of many private
and public companies. In 2005 as Chairman of the National Stock Exchange of Australia Limited (NSX) he was responsible
for its successful IPO on the ASX in 2005.
His current roles include serving as Chairman of Whittens & McKeough, a boutique Sydney law firm specialising in mergers
and acquisitions and corporate law. Mr Whitten was formerly the Deputy Chairman of the Safety, Return to Work and Support
Board (a board formed under statute responsible for determining the general policies and direction for the following agencies:
Workcover NSW, Motor Accidents Authority NSW and Lifetime Care and support Authority NSW).
Mr Whitten holds a Bachelor of Arts and Bachelor of Laws from the University of Sydney, a Masters of Laws from the
University of Technology, Sydney, is an accredited specialist in business law and is a Notary Public.
12
Viking Mines Limited
ABN 38 126 200 280
DIRECTORS’ REPORT
Interests in the shares and options of the Company and related bodies corporate
The following relevant interests in shares and options of the Company or a related body corporate were held by the directors
and their associates as at the date of this report.
Directors
John Gardner
Raymond Whitten
Peter McMickan
Company Secretary
Number of fully paid
ordinary shares
29,150,413
42,095,782
4,046,837
Michael Langoulant
Mr Langoulant is a Chartered Accountant with almost 30 years' experience in corporate administration and fundraising for
public companies. Mr Langoulant had ten years with large international accounting firms, and has acted as chief financial
officer, company secretary and director for a number of publicly listed companies. Mr Langoulant established his own
corporate services consultancy firm in 1994.
Principal activity
The principal activity of the Group during the financial period was investment in mineral exploration projects.
Dividends
No dividend has been paid or declared since the start of the financial period and the Directors do not recommend the payment
of a dividend in respect of the financial period.
Review of operations
Information on the operations of the Group is set out in the review of Operations Report on pages 5 to 11 of this Annual
Report.
Significant changes in the state of affairs
Apart from as outlined in the Operations Report there have been no significant changes in the state of affairs of the Group to
the date of this report.
Matters subsequent to the end of the financial period
There has not been any matter or circumstance that has arisen after balance date that has significantly affected, or may
significantly affect, the operations of the Group, the results of those operations, or the state of affairs of the Group in future
financial periods other than the receipt of a further USD2 million in sales proceeds relating to the sale of the Akoase gold
project.
Likely developments and expected results
Additional comments on expected results of certain operations of the Group are included in the review of operations and
activities.
Environmental legislation
The Group is subject to significant environmental legal regulations in respect to its exploration and evaluation activities in
Ghana. There have been no known breaches of these regulations and principles.
Indemnification and insurance of Directors and officers
During the financial period the Company has paid premiums in respect of a contract insuring all Directors and officers of the
Company and its controlled entities against liabilities incurred as Directors or officers to the extent permitted by the
Corporations Act 2001. Due to a confidentiality clause in the contract the amount of the premium has not been disclosed.
Meetings of Directors
During the financial period there were 6 formal Directors’ meetings. All other matters that required formal Board resolutions
were dealt with via written circular resolutions. In addition, the Directors met on an informal basis at regular intervals during
the financial period to discuss the Group’s affairs.
13
Viking Mines Limited
ABN 38 126 200 280
DIRECTORS’ REPORT
The number of meetings of the Company’s board of Directors attended by each director were:
J Gardner
R Whitten
P McMickan
Shares under option
Directors’ meetings
held
6
6
6
Directors’
meetings attended
6
6
6
Outstanding share options at the date of this report are as follows:
Grant Date
April 2017
Date of expiry
Exercise price
Number of options
30 June 2020
$0.046
12,000,000
No option holder has any right under the options to participate in any other share issue of the Company or any other
controlled entity.
Shares issued on the exercise of options
During the current financial year there were no shares issued upon the exercise of options.
14
Viking Mines Limited
ABN 38 126 200 280
DIRECTORS’ REPORT
Remuneration Report
This report outlines the remuneration arrangements in place for the key management personnel of Viking Mines Limited (the
“Company”) for the financial year ended 30 June 2017. The information provided in this remuneration report in relation to the
current financial year has been audited as required by Section 308(3C) of the Corporations Act 2001.
The remuneration report details the remuneration arrangements for key management personnel (“KMP”) who are defined as
those persons having authority and responsibility for planning, directing and controlling the major activities of the Company
and the Group, directly or indirectly, including any Director (whether executive or otherwise) of the Company, and includes
all executives of the Company and the Group
Key Management Personnel
(i) Directors
J Gardner (Chairman)
R Whitten (Non-executive Deputy Chairman)
P McMickan (Executive Director)
(ii) Other executives
M Langoulant (Company Secretary)
Details of Directors’ and executives’ remuneration are set out under the following main headings:
A
B
C
D
Principles used to determine the nature and amount of remuneration
Details of remuneration
Employment contracts/Consultancy agreements
Share-based compensation
Principles used to determine the nature and amount of remuneration
A
The objective of the Company’s executive reward framework is to ensure reward for performance is competitive and
appropriate for the results delivered. The framework aims to align executive reward with the creation of value for
shareholders. The key criteria for good reward governance practices adopted by the Board are:
competitiveness and reasonableness
acceptability to shareholders
performance incentives
transparency
capital management
The framework provides a mix of fixed salary, consultancy agreement based remuneration, and share based incentives.
The broad remuneration policy for determining the nature and amount of emoluments of Board members and senior executives
of the Company is governed by the full Board. Although there is no separate remuneration committee the Board’s aim is to
ensure the remuneration packages properly reflect Directors and executives duties and responsibilities. The Board assesses the
appropriateness of the nature and amount of emoluments of such officers on a periodic basis by reference to relevant
employment market conditions with the overall objective of ensuring maximum stakeholder benefit from the retention and
motivation of a high quality Board and executive team.
The current remuneration policy adopted is that no element of any director/executive package be directly related to the
Company’s financial performance. Indeed there are no elements of any Director or executive remuneration that are dependent
upon the satisfaction of any specific condition. The overall remuneration policy framework however is structured in an
endeavour to advance/create shareholder wealth.
Non-executive Directors
Fees and payments to non-executive Directors reflect the demands which are made on, and the responsibilities of, the
Directors. Non-executive Directors’ fees and payments are reviewed annually by the Board and are intended to be in line with
the market.
15
Viking Mines Limited
ABN 38 126 200 280
Remuneration Report (cont)
Directors’ fees
Two of the Directors are executives with the one being non-executive. Non-executive Directors receive a separate fixed fee for
their services as directors. The current non-executive Director fee is set at $50,000 per non-executive deputy chairman and $25,000
per annum per non-executive director.
Retirement allowances for Directors
Apart from superannuation payments paid on salaries, there are no retirement allowances for Directors.
Executive pay
The executive pay and reward framework has the following components:
base pay and benefits such as superannuation
long-term incentives through participation in employee equity issues
Base pay
All executives are either full time employees or consultants that are paid on an agreed basis that have been formalised in
consultancy agreements.
Benefits
Apart from superannuation paid on executive salaries there are no additional benefits paid to executives.
Short-term incentives
There are no current short term incentive remuneration arrangements.
Employee/Consultant options
To ensure that the Company has appropriate mechanisms in place to continue to attract and retain the services of suitable
directors and employees, the Company has issued options to key personnel.
There have been no employee option issues during the financial period.
B
Details of remuneration
Amounts of remuneration
Details of the remuneration of the Directors and key management personnel (as defined in AASB 124 Related Party
Disclosures) of the Company and the Group for the year ended 30 June 2017 are set out in the following tables. There are no
elements of remuneration that are directly related to performance.
The key management personnel of the Group are the Directors of the Company and those executives that have authority and
responsibility for planning, directing and controlling the activities of the Group.
16
Viking Mines Limited
ABN 38 126 200 280
Remuneration of key management personnel
Year ended
30 June 2017
Name
Director
J Gardner
R Whitten
P McMickan
Key management personnel
M Langoulant*
Year ended
30 June 2016
Director
J Gardner
R Whitten
P McMickan
Key management personnel
M Langoulant*
Post-
employment –
Share-based
payment
TOTAL
Salary and/or
fees
$
Superannuation
$
Option issues
$
64,897
65,794
119,867
-
33,699
16,712
86,433
-
6,165
3,780
29,333
-
3,201
1,588
33,261
-
-
-
-
-
-
-
-
-
$
71,062
69,574
149,200
-
36,900
17,300
119,694
-
* Fees for bookkeeping, accounting and corporate administration services of $81,000 (2016:$72,000) were paid to a
company of which he is a director and shareholder.
C
Employment contracts/Consultancy agreements
On appointment to the Board, all non-executive Directors enter into a service agreement with the Company in the form of a
letter of appointment.
Share-based compensation
D
Options
Options are granted to employees and consultants as determined by the Board. There have been no options issued to key
management personnel during the last financial year.
17
Viking Mines Limited
ABN 38 126 200 280
DIRECTORS’ REPORT
Auditor independence and non-audit services
Section 307C of the Corporations Act 2001 requires our auditors, Rothsay Chartered Accountants, to provide the Directors of
the Company with an Independence Declaration in relation to the audit of the annual report. This Independence Declaration is
set out on the next page and forms part of this Directors’ report for the year ended 30 June 2017.
Non-audit services
The Company may decide to employ the auditor on assignments additional to their statutory audit duties where the auditor’s
expertise and experience with the Company and/or the consolidated entity are important. The Company has considered the
position and is satisfied that the provision of the non-audit services is compatible with the general standard of independence for
auditors imposed by the Corporations Act 2001. The auditor has not provided any material non-audit services meaning that
auditor independence was not compromised.
Proceedings on behalf of Company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of
the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility on
behalf of the Company for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section 237 of the
Corporations Act 2001.
This report is made in accordance with a resolution of the Directors.
Jack Gardner
Executive Chairman
Perth, Western Australia
28 August 2017
18
Viking Mines Limited
ABN 38 126 200 280
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2017
Note
2
2
2
Other income
Other expenses
Loss before income tax expense
Income tax expense
Loss after income tax expense
Net loss for the year
Other comprehensive income
Exchange differences on translation
of foreign operations
Income tax relating to components
of other comprehensive income
Other comprehensive income, net
of tax
Total comprehensive loss for the
year
Loss attributable to:
Owners of the Company
Non-Controlling Interest
Total comprehensive loss
attributable to:
Owners of the Company
Non-Controlling Interest
Basic loss per share
(cents per share)
4
Consolidated
2017
$
387,542
2016
$
6,905
(3,868,620)
(799,029)
(3,481,078)
(792,124)
-
-
(3,481,078)
(792,124)
(3,481,078)
(792,124)
(197,933)
(50,940)
-
-
(197,933)
(50,940)
(3,679,011)
(843,064)
(3,481,078)
-
(3,481,078)
(3,679,011)
-
(3,679,011)
Cents
(1.2)
(792,124)
-
(792,124)
(843,064)
-
(843,064)
Cents
(0.3)
The above statement of comprehensive income should be read in conjunction with the accompanying notes.
20
Viking Mines Limited
ABN 38 126 200 280
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2017
Current Assets
Cash and cash equivalents
Trade and other receivables
Total Current Assets
Non-Current Assets
Exploration project acquisition costs
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Total Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Outside equity interest
Total Equity
Note
Consolidated
2017
$
2016
$
6
7
8
9
10
11
2,063,442
24,650
1,306,449
16,502
2,088,092
1,322,951
250,000
3,320,328
250,000
3,320,328
2,338,092
4,643,279
335,295
335,295
335,295
152,846
152,846
152,846
2,002,797
4,490,433
22,537,072
27,038
(19,820,088)
(741,225)
21,345,697
224,971
(16,339,010)
(741,225)
2,002,797
4,490,433
The above statement of financial position should be read in conjunction with the accompanying notes.
21
Viking Mines Limited
ABN 38 126 200 280
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2017
Issued
capital
Accumulated
losses
Share based
payments
reserve
Consolidated
$
$
$
Foreign
currency
translation
reserve
$
Outside
Equity
Interest
$
Total equity
$
Balance at 1 July 2015
21,345,697
(15,546,886)
244,000
31,911
(741,225)
5,333,497
Loss for the period
Other comprehensive
income
Total comprehensive loss
for the year
Shares issues, net of capital
raising costs
-
-
-
-
(792,124)
-
(792,124)
-
-
-
-
-
-
(50,940)
(50,940)
-
-
-
-
-
(792,124)
(50,940)
(843,064)
-
Balance at 30 June 2016
21,345,697
(16,339,010)
244,000
(19,029)
(741,225)
4,490,433
Balance at 1 July 2016
21,345,697
(16,339,010)
244,000
(19,029)
(741,225)
4,490,433
Loss for the period
Other comprehensive
income
Total comprehensive loss
for the year
Shares issues, net of capital
raising costs
-
-
-
(3,481,078)
-
(3,481,078)
1,191,375
-
-
-
-
-
-
(197,933)
(197,933)
-
-
-
-
-
(3,4861,078)
(197,933)
(3,679,011)
-
Balance at 30 June 2017
22,537,072
(19,820,088)
244,000
(216,962)
(741,225)
2,002,797
The above statement of changes in equity should be read in conjunction with the accompanying notes.
22
Viking Mines Limited
ABN 38 126 200 280
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2017
Cash flows from operating activities
Payments to suppliers and employees
Interest received
Interest expense
Note
Consolidated
Inflows/
(Outflows)
2017
$
Inflows/
(Outflows)
2016
$
(860,790)
12,298
-
(698,337)
6,905
(7,600)
Net cash outflow from operating activities
18(a)
(848,492)
(699,032)
Cash flows from investing activities
Payments for exploration and evaluation
Proceeds from sale of mining properties
Net cash outflow from investing activities
Cash flows from financing activities
Proceeds from the issue of shares/options
Capital raising costs
Repayment of borrowings
Net cash inflow from financing activities
(521,121)
1,195,572
(264,370)
2,179,672
674,451
1,915,302
1,267,420
(76,045)
-
1,191,375
-
-
(120,000)
(120,000)
Net increase/(decrease) in cash held
1,017,334
1,096,270
Effect of exchange rate fluctuations on cash
(260,341)
(86,827)
Cash at the beginning of reporting period
1,306,449
297,006
Cash at the end of the reporting period
6
2,063,442
1,306,449
The above statement of cash flows should be read in conjunction with the accompanying notes.
23
Viking Mines Limited
ABN 38 126 200 280
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Note 1: Statement of significant accounting policies
(a)
(b)
(c)
(d)
Basis of preparation
The financial report is a general-purpose financial report, which has been prepared in accordance with the
requirements of the Corporations Act 2001, Accounting Standards and Interpretations and complies with other
requirements of the law. The financial report has also been prepared on a historical cost basis. The Company is
registered and domiciled in Australia.
Adoption of new and revised standards
Changes in accounting policies on initial application of Accounting Standards
In the year ended 30 June 2017, the Group has reviewed all of the new and revised Standards and Interpretations
issued by the AASB that are relevant to its operations and effective for the current annual reporting period. It has
been determined by the Group that there is no impact, material or otherwise, of the new and revised Standards and
Interpretations on its business and, therefore, no change is necessary to Group accounting policies.
The Group has however adopted “AASB 2015-2 Amendments to Australian Accounting Standards – Disclosure
Intiative: Amendments to AASB 101” such certain specific disclosures required by Australian Accounting Standards
have not been made on the basis that the information resulting from that disclosure is not material.
The Group has also reviewed all new Standards and Interpretations that have been issued but are not yet effective
for the year ended 30 June 2017. As a result of this review the Directors have determined that there is no impact,
material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no
change necessary to Group accounting policies.
Statement of compliance
The financial report was authorised by the Board of directors for issue on 28 August 2017.
The financial report complies with Australian Accounting Standards, which include Australian equivalents to
International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial report,
comprising the financial statements and notes thereto, complies with International Financial Reporting Standards
(IFRS).
Basis of consolidation
The consolidated financial statements comprise the financial statements of Viking Mines Limited and its controlled
entities as at 30 June (the Group).
The financial statements of the controlled entities are prepared for the same reporting period as the Parent, using
consistent accounting policies.
In preparing the consolidated financial statements, all intercompany balances and transactions, income and expenses
and profit and losses resulting from intra-group transactions have been eliminated in full. Controlled entities are fully
consolidated from the date on which control is transferred to the Group and cease to be consolidated from the date on
which control is transferred out of the Group. Control exists where the Company has the power to govern the
financial and operating policies of an entity so as to obtain benefits from its activities.
(e)
Significant 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:
Deferred exploration expenditure:
The Group’s main activity is exploration and evaluation for minerals. The nature of exploration activities are such
that it requires interpretation of complex and difficult geological models in order to make an assessment of the size,
shape, depth and quality of resources and their anticipated recoveries. The economic, geological and technical factors
used to estimate mining viability may change from period to period. In addition exploration activities by their nature
are inherently uncertain. Changes in all these factors can impact exploration asset carrying values.
24
Viking Mines Limited
ABN 38 126 200 280
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Note 1: Statement of significant accounting policies (continued)
(f)
(g)
Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the
revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is
recognised:
(i) Interest income
Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial
asset.
Cash and cash equivalents
Cash comprises cash at bank and in hand. Cash equivalents are short term, highly liquid investments that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Temporary
bank overdrafts are included in cash at bank and in hand. Permanent bank overdrafts are shown within borrowings in
current liabilities in the balance sheet.
For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as
defined above, net of outstanding bank overdrafts.
(h)
Other taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
when the GST incurred on a purchase of goods and services is not recoverable from the taxation authority,
in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense
item as applicable; and
receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or
payables in the balance sheet.
Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flows
arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority, are
classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the
taxation authority.
(i)
Impairment of assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such
indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the
asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs to sell and its
value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely
independent of those from other assets or groups of assets and the asset's value in use cannot be estimated to be close
to its fair value. In such cases the asset is tested for impairment as part of the cash-generating unit to which it
belongs. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or
cash-generating unit is considered impaired and is written down to its recoverable amount.
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.
Impairment losses relating to continuing operations are recognised in those expense categories consistent with the
function of the impaired asset unless the asset is carried at re-valued amount (in which case the impairment loss is
treated as a revaluation decrease).
25
Viking Mines Limited
ABN 38 126 200 280
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Note 1: Statement of significant accounting policies (continued)
(j)
(k)
(l)
(m)
An assessment is also made at each reporting date as to whether there is any indication that previously recognised
impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is
estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates
used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case
the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the
carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for
the asset in prior financial periods. Such reversal is recognised in profit or loss unless the asset is carried at revalued
amount, in which case the reversal is treated as a revaluation increase. After such a reversal the depreciation charge
is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic
basis over its remaining useful life.
Trade and other payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods and services
provided to the Group prior to the end of the financial period that are unpaid and arise when the Group becomes
obliged to make future payments in respect of the purchase of these goods and services.
Provisions
Where applicable, provisions are recognised when the Group has a present obligation (legal or constructive) as a
result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation and a reliable estimate can be made of the amount of the obligation.
When the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the
reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense
relating to any provision is presented in the statement of comprehensive income net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects the risks specific to the liability.
When discounting is used, the increase in the provision due to the passage of time is recognised as a borrowing
cost.
Employee leave benefits
Wages, salaries, annual leave and sick leave
Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave
expected to be settled within 12 months of the reporting date are recognised in other payables in respect of
employees’ services up to the reporting date. They are measured at the amounts expected to be paid when the
liabilities are settled. Liabilities for non-accumulating sick leave are recognised when the leave is taken and are
measured at the rates paid or payable.
Share-based payment transactions
Equity settled transactions:
The Group provides benefits to employees and consultants of the Group in the form of share-based payments,
whereby employees render services in exchange for shares or rights over shares (equity-settled transactions).
The cost of these equity-settled transactions with employees and consultants is measured by reference to the fair
value of the equity instruments at the date at which they are granted. The fair value is determined by using the
Black and Scholes model.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the
period in which any performance and/or service conditions are fulfilled, ending on the date on which the relevant
employees become fully entitled to the award (the vesting period).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects
(i) the extent to which the vesting period has expired, and
(ii) the Group’s best estimate of the number of equity instruments that will ultimately vest. No adjustment is made
for the likelihood of market performance conditions being met as the effect of these conditions is included in the
determination of fair value at grant date. The statement of comprehensive income charge or credit for a period
represents the movement in cumulative expense recognised as at the beginning and end of that period.
26
Viking Mines Limited
ABN 38 126 200 280
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Note 1: Statement of significant accounting policies (continued)
(n)
(o)
Issued capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options
are shown in equity as a deduction, net of tax, from the proceeds.
Earnings per share
Basic earnings per share is calculated as net profit attributable to members of the parent, adjusted to exclude any
costs of servicing equity (other than dividends) and preference share dividends, divided by the weighted average
number of ordinary shares.
Diluted earnings per share is calculated as net profit attributable to members of the parent, adjusted for:
costs of servicing equity (other than dividends) and preference share dividends;
the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been
recognised as expenses; and
other non-discretionary changes in revenues or expenses during the period that would result from the
dilution of potential ordinary shares, divided by the weighted average number of ordinary shares and
dilutive potential ordinary shares.
(p)
Exploration and evaluation expenditure
Exploration costs are expensed as incurred. Acquisition costs are accumulated in respect of each separate area of
interest. Acquisition costs are carried forward where right of tenure of the area of interest is current and they are
expected to be recouped through the sale or successful development and exploitation of the area of interest or,
where exploration and evaluation activities in the area of interest have not yet reached a stage that permits
reasonable assessment of the existence of economically recoverable reserves. When an area of interest is
abandoned or the Directors’ decide that it is not commercial, any accumulated acquisition costs in respect of that
area are written off in the financial period and accumulated acquisition costs written off to the extent that they will
not be recovered in the future. Amortisation is not charged on acquisition costs carried forward in respect of areas
of interest in the development phase until production commences.
27
Viking Mines Limited
ABN 38 126 200 280
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Note 2: Revenue and expenses
(a) Revenue from continuing operations
Other revenue
Interest received
Proceeds on sale of mining properties
(b) Expenses
Loss from ordinary activities before income tax
expense includes the following specific expenses:
Auditors’ fees
Consultants
Depreciation
Direct exploration and project evaluation
Employee costs
Foreign exchange loss
Impairment of exploration project acquisition costs
Interest expense
Consolidated
2017
$
2016
$
12,298
375,244
6,905
-
43,500
227,985
-
521,121
461,876
62,408
2,250,000
-
39,141
102,000
1,723
264,370
174,894
35,888
-
7,600
28
Viking Mines Limited
ABN 38 126 200 280
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Note 3: Income tax
Unrecognised deferred tax balances
Deferred tax assets:
Share issue costs
Tax revenue losses
Deferred tax liabilities:
Net unrecognised deferred tax assets
Note 4: Earnings per share
Total basic loss per share (cents)
Consolidated
2017
$
2016
$
32,791
3,642,038
3,674,829
27,832
3,090,186
3,118,018
-
-
3,674,829
3,118,018
(1.2)
(0.3)
The loss and weighted average number of ordinary shares used in the calculation of basic
loss per share is as follows:
Net loss for the period
The weighted average number of ordinary shares
(3,481,078)
(792,124)
288,276,627
250,974,285
The diluted loss per share is not reflected as the result is anti-dilutive.
Note 5: Segment information
The Group has adopted AASB 8 Operating Segments which requires operating segments to be identified on the basis of
internal reports about components of the Group that are reviewed by the chief operating decision-maker in order to
allocate resources to the segment and to assess its performance. For management purposes, the Board of Directors of
the Company has been defined as the Chief Operating Decision Maker.
The Board of Viking Mines Limited reviews internal reports prepared as consolidated financial statements and strategic
decisions of the Group are determined upon analysis of these internal reports. During the period the Group operated
predominately in one business and three geographical segments, being the resources sector in Ghana, Thailand and
Mongolia. Accordingly under the management approach outlined only one operating sector has been identified and no
further disclosures are required in the notes to the consolidated financial statements.
29
Viking Mines Limited
ABN 38 126 200 280
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Note 6: Cash and cash equivalents
Cash at bank and on hand
Short term deposits
Consolidated
2017
$
2016
$
1,599,976
463,466
2,063,442
581,512
724,937
1,306,449
(a) Reconciliation to Statement of Cash Flows
The above figures agree to cash at the end of the financial period as shown in the Statement of Cash Flows.
(b) Cash at bank
These are interest bearing accounts at a weighted average interest rate of 0.5% (2016: 0.5%).
(c) Cash balances not available for use
Total cash balances not available for use are nil (2016: Nil).
Note 7: Trade and other receivables
Current receivables
GST
Other receivables
Note 8: Exploration project acquisition costs
Opening balance
Impairment charge
Sale of tenement proceeds
Acquisition costs in respect of areas of interest in
the exploration phase
22,019
2,631
24,650
11,397
5,105
16,502
3,320,328
(2,250,000)
(770,328)
5,500,000
-
(2,179,672)
250,000
3,320,328
The recoupment of exploration project acquisition costs carried forward is dependent upon the recoupment of costs through
successful development and commercial exploitation, or alternatively by sale of the respective areas.
In June 2015 the Company executed a sale and purchase agreement with Akoase Resources Limited for the sale of the Akoase
gold project in Ghana. Due to the existence of significant uncertainty as to whether the sale would be completed the non-
refundable deposit funds received during the June 2015 financial year were taken directly to profit and loss. However for the
years ended 30 June 2016 and 30 June 2017 the sale proceeds received have been initially offset against the carrying value of
these tenements, reducing this value to zero. Additional sales proceeds received in excess of the previous carrying value are now
being recorded as a profit on sale of mining tenements.
In the year ended 30 June 2017 an impairment charge was raised against the carrying value of the Group’s coal tenements in
Mongolia. The Group has been unable to advance development of its main coal tenement asset, Berkh Uul due to post-
acquisition government determinations. As a result the Group has written down these assets to a carrying value of $250,000.
30
Viking Mines Limited
ABN 38 126 200 280
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Note 9: Trade and other payables
Trade payables *
Other payables
* Trade payables are non-interest bearing and are normally paid on 30 day terms.
Note 10: Issued capital
(a) Ordinary shares issued
Consolidated
2017
$
2016
$
278,970
56,325
335,295
129,123
23,723
152,846
313,717,856 (2016: 250,974,285) ordinary shares
22,537,072
21,345,697
Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share
at shareholders’ meetings. In the event of winding up of the parent entity, ordinary shareholders rank after all creditors and are
fully entitled to any proceeds on liquidation.
(b) Movements in ordinary share capital:
Date
Details
1 July 2015
Opening balance
30 June 2016
Closing balance
Placement
Share issue costs
25 Nov 2016
30 June 2017
(c) Share options
Listed options exercisable at $0.09 on or before 30 April 2017
Unlisted options exercisable at $0.20 on or before 15 November 2016
Unlisted options exercisable at $0.046 on or before 30 June 2020
Number of
shares
250,974,285
250,974,285
62,743,571
-
313,717,856
Issue
Price
$0.0202
$
21,345,697
21,345,697
1,267,420
(76,045)
22,537,072
Number of options
2017
2016
-
-
12,000,000
44,771,552
3,000,000
3,000,000
31
Viking Mines Limited
ABN 38 126 200 280
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Note 10: Issued capital (cont)
(d) Movements in options
Listed options exercisable at $0.09 on or before 30 April 2017
Opening balance
Issued/(expired)
Closing balance
Unlisted options exercisable at $0.20 on or before 15 November 2016
Opening balance
Issued/(expired)
Closing balance
Unlisted options exercisable at $0.046 on or before 30 June 2020
Opening balance
Issued/(expired)
Closing balance
Note 11: Reserves
Share compensation reserve
Foreign currency translation reserve
Number of options
2017
2016
44,771,552
(44,771,552)
44,771,552
-
-
44,771,552
3,000,000
(3,000,000)
3,000,000
-
-
3,000,000
-
12,000,000
12,000,000
-
-
-
Consolidated
2017
$
2016
$
244,000
(216,962)
244,000
(19,029)
27,038
224,971
(a) Share compensation reserve
The share compensation reserve is used to record the value of equity benefits provided to consultants and
directors as part of their remuneration. Refer Note 12.
(b)
Foreign currency translation reserve
The foreign currency translation reserve represents foreign exchange movements on the translation of financial
statements for controlled entities from the functional currency into the presentation currency of Australian
dollars.
Note 12: Share based payments
There have been no share based payments of shares and/or options issued to directors and consultants in any of the last
3 financial years.
32
Viking Mines Limited
ABN 38 126 200 280
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Note 13: Commitments and contingencies
Exploration expenditure commitments
Minimum exploration expenditure commitments do not apply in either Ghana or Mongolia as those governments do not
impose a minimum spend per licence. The exploration expenditure commitment is based on a work program system,
whereby at the time for each renewal of a licence, the Company provides an outline of work planned and expected
expenditure.
Note 14: Key management personnel disclosures
(a) Directors
At the date of this report the directors of the Company are:
JW Gardner – Executive Chairman
R Whitten – Non-executive Deputy Chairman
P McMickan – Executive director
(b) Key management personnel
M Langoulant – Company secretary
(c) Key management personnel compensation
Short-Term
Post-employment
Consolidated
2017
$
331,558
39,278
2016
$
208,844
38,050
370,836
246,894
Detailed remuneration disclosures of directors and key management personnel are contained on pages 13 to 15 of this report.
(d) Share based remuneration
No shares or options have been provided as remuneration for key management personnel in the last two years.
33
Viking Mines Limited
ABN 38 126 200 280
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Note 14: Key management personnel disclosures (cont)
(e) Equity holdings of key management personnel
The number of shares in the Company held during the financial period by each director of the Company and key
management personnel of the Group, including their personally related parties, are set out below
2017
Director -Ordinary shares
Balance at start of
year
Movement during
the year
Balance at the end of
the financial year
J Gardner
R Whitten
P McMickan
Key management personnel
M Langoulant
2016
Director - Ordinary shares
J Gardner
R Whitten
P McMickan
Key management personnel
M Langoulant
22,507,643
42,095,782
4,046,837
1,501,316
22,507,643
42,095,782
4,046,837
1,501,316
-
-
-
-
-
-
-
-
22,507,643
42,095,782
4,046,837
1,501,316
22,507,643
42,095,782
4,046,837
1,501,316
34
Viking Mines Limited
ABN 38 126 200 280
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Note 15: Related party disclosure
The ultimate parent entity in the wholly-owned group and the ultimate Australian parent entity is Viking Mines Limited. The
consolidated financial statements include the financial statements of Viking Mines Limited and the controlled entities listed in
the following table:
Name of entity
Country of
incorporation
Class of shares
Equity holding
2017
%
2016
%
Auminco Mines Ltd
Bold Resources Ltd
Auminco Coal Pty Ltd
Auminco Coal LLC
Khonkhor Zag Coal LLC
BRX LLC
Salkhit Altai LLC
Associated Goldfields Pty Ltd
Ghana Mining Investments Pty Ltd
Kiwi International Resources Pty Ltd
Abore Mining Company Ltd
Obenemase Gold Mines Ltd
Resolute Amansie Ltd
Kiwi Goldfields Ltd
Australia
Australia
Australia
Mongolia
Mongolia
Mongolia
Mongolia
Australia
Australia
Australia
Ghana
Ghana
Ghana
Ghana
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
100
100
100
100
100
100
100
100
100
100
90*
90*
90*
100
100
100
100
100
100
100
100
100
100
100
90*
90*
90*
100
The only transactions between Viking Mines Limited and its controlled entities during this financial year consisted of loans
between Viking Mines Limited and its controlled entities.
* 100% of rights to profits
35
Viking Mines Limited
ABN 38 126 200 280
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Note 16: Parent Entity Disclosures
Financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Total liabilities
Equity
Issued capital
Retained earnings
Reserves
Total equity
Financial performance
Loss for the year
Other comprehensive income
Total comprehensive profit /( loss)
Note 17: Events after the balance sheet date
30 June 2017
$
30 June 2016
$
493,403
1,797,945
770,278
3,320,328
2,291,348
4,090,606
288,551
288,551
149,024
149,024
22,537,072
(20,290,275)
244,000
21,345,697
(17,160,115)
244,000
2,002,797
3,941,582
30 June 2017
$
30 June 2016
$
(3,130,160)
-
(882,927)
-
(3,130,160)
(882,927)
There has not been any matter or circumstance that has arisen after balance date that has significantly affected, or may
significantly affect, the operations of the Group, the results of those operations, or the state of affairs of the Group in future
financial periods other than the receipt of a further USD2 million in gross sales proceeds in relation to the sale of the Akoase
gold project.
.
36
Viking Mines Limited
ABN 38 126 200 280
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Note 18: Reconciliation of loss after income tax to net cash outflow from operating activities
a) Reconciliation of loss from ordinary activities after income tax to
net cash outflow from operating activities
Net loss for the year
Depreciation
Foreign exchange movements
Proceeds from sale of financial assets
Exploration and evaluation
Impairment of project acquisition costs
Proceeds from sale of mining properties
(Increase) / decrease in trade and other receivables
Increase / (decrease) in trade payables and
provisions
Net cash outflow from operating activities
b) Non-cash financing and investing activities
Nil
Note 19: Auditors’ remuneration
The auditors of the Group are Rothsay Chartered Accountants.
Assurance services
Rothsay Chartered Accountants:
Audit and review of financial statements
Other firms
Audit and review of financial statements
Total remuneration for audit services
Other services
Rothsay Chartered Accountants:
Other firms:
Total remuneration for other services
Total auditors’ remuneration
Consolidated
2017
$
2016
$
(3,481,078)
(792,124)
-
62,408
-
521,121
2,250,000
(375,244)
(8,148)0
1,723
35,886
-
264,370
-
-
22,885
182,449
(231,772)
(848,492)
(699,032)
Consolidated
2017
$
23,500
20,000
43,500
-
-
-
2016
$
23,000
16,141
39,141
-
-
-
43,500
39,141
37
Viking Mines Limited
ABN 38 126 200 280
DIRECTORS’ DECLARATION
1.
In the opinion of the directors:
a.
the accompanying financial statements and notes are in accordance with the Corporations Act 2001 including:
i. giving a true and fair view of the consolidated entity’s financial position as at 30 June 2017 and of its
performance for the financial year then ended; and
ii. complying with Accounting Standards and Corporations Regulations 2001; and
b.
c.
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become
due and payable.
the financial statements and notes thereto are in accordance with International Financial Reporting Standards issued
by the International Accounting Standards Board.
2. This declaration has been made after receiving the declarations required to be made to the directors in accordance with
Section 295A of the Corporations Act 2001 for the year ended 30 June 2017.
This declaration is signed in accordance with a resolution of the Board of Directors.
Jack Gardner
Executive Chairman
Perth, Western Australia
28 August 2017
38
Viking Mines Limited
ABN 38 126 200 280
ADDITIONAL INFORMATION
The shareholder information set out below was applicable as at 31 July 2017.
A. Distribution of equity securities
Analysis of numbers of equity security holders by size of holding:
1
1,001
10,001
100,001
1,000
10,000
1,000,000
and over
There were 156 holders of less than a marketable parcel of ordinary shares.
B. Equity security holders
Twenty largest quoted equity security holders – ordinary shares
Name
GTT GLOBAL OPPORTUNTIES PTY LTD
BARBARY COAST INVESTMENTS PTY LTD
J P MORGAN NOMINEES AUSTRALIA LIMITED
GREENLINE INVESTMENTS PTY LTD
BARBARY COAST INVESTMENTS PTY LIMITED
RODBY HOLDINGS PTY LTD
TORONA PTY LIMITED
AET SFS PTY LTD
SYRACUSE CAPITAL PTY LTD
JAYTU PTY LTD
GILT NOMINEES PTY LTD
BARBARY COAST INVESTMENTS PTY LTD
MR JOHN WILLIAM GARDNER + MRS JANET LEIGH
GARDNER
PERSHING AUSTRALIANOMINEES PTY LTD
NATIONAL NOMINEES LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
NEWTON HOLDINGS PTY LTD
GILT NOMINEES PTY LTD
MR BUYANTOGTOKH DASHDELEG
BNP PARIBAS NOMINEES PTY LTD
Class of equity security
Ordinary shares
20
89
365
66
540
No. held % of issued
shares
15,627,822
14,060,908
13,524,835
12,000,000
8,244,737
6,796,296
6,867,887
6,521,503
5,835,821
5,507,643
5,504,517
5,499,549
5,000,000
5,000,000
4,779,990
4,754,658
4,325,570
4,284,000
4,132,358
4,074,031
4.98
4.48
4.31
3.83
2.63
2.17
2.13
2.08
1.86
1.76
1.75
1.75
1.59
1.59
1.52
1.52
1.38
1.37
1.32
1.30
142,162,125
45.32
41
Viking Mines Limited
ABN 38 126 200 280
ADDITIONAL INFORMATION
C. Substantial shareholders
Substantial shareholders in the Company are set out below:
Ordinary shares
R Whitten
Jaytu Pty Ltd ATF (John William Gardner Superannuation)
GTT Global Opportunities Pty Ltd and associates
Number
Held
Percentage
42,095,782
22,507,643
28,964,144
13.42
7.17
9.23
D. Voting rights
The voting rights attaching to each class of equity securities are set out below:
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll
each share shall have one vote.
E. Tenement schedule
Ghana
Licence name
Location
Licence type
Licence Holder/ JV
Partners*
Viking Mines Ownership
Akoase West
southern Ghana
Prospecting licence
Akoase East
southern Ghana
Prospecting licence
Akoase South-East
southern Ghana
Prospecting licence
RAL
RAL
RAL
100%(reducing to zero
upon sale completion)
100%(reducing to zero
upon sale completion)
100%(reducing to zero
upon sale completion)
West Star*
southern Ghana
Prospecting licence
WMCL/RAL
100% hardrock only*
Tumentu
southern Ghana
Prospecting licence
application
RAL
100%
RAL = Resolute Amansie Ltd is a 100% owned subsidiary of Viking Mines Ltd
WMCL = West Star Mining Company Ltd - joint venture partner in the West Star gold project
* Subject to revocation/renewal dispute with Minerals Commission
Mongolia
Licence name
Location
Licence type
Licence
Holder/JV
Partners*
Viking Mines
ownership
Berkh Uul
Selenge province, Mongolia
Exploration licence
BRX LLC
100%
Khonkhor Zag
Govi Altai province, Mongolia
Mining lease
Salkhit Altai
LLC
100%
* BRX LLC, and Salkhit Altai LLC are 100% owned subsidiaries of Viking Mines Ltd.
42