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Viking Mines Limited

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FY2018 Annual Report · Viking Mines Limited
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Viking Mines Limited 

ABN 38 126 200 280 

Annual Report - 30 June 2018 

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CONTENTS 

Corporate directory 
Chairman’s letter 
Operations report 
Annual mineral resources statement 
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 
Shareholder information 

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Directors 

 Raymond Whitten 
 Charles William Thomas (appointed 29 November 2017) 
 Michael Andrew Cox (appointed 29 November 2017) 
 John William (Jack) Gardner (resigned 29 November 2017) 
 Peter McMickan (ceased 29 November 2017) 

Company secretary 

 Dean Jagger 

Notice of annual general meeting 

 The details of the annual general meeting of Viking Mines Limited are: 
 Date of Meeting: Thursday 29 November 2018  

Registered office and principal 
place of business 

 Level 29, 201 Elizabeth Street 
Sydney NSW 2000 Australia 
Telephone: +61 2 8072 1400 
Facsimile: +61 2 8072 1440 
 Website: www.vikingmines.com 

Share register 

Auditor 

Solicitors 

 Automic Registry Services 
 Level 3, 50 Holt Street 
 Surry Hills NSW 2010 
 Telephone: 1300 288 664 (within Australia) 
 Telephone: +61 2 9698 5414 (outside Australia) 
 Email:  hello@automic.com.au 

 Rothsay Auditing 
 Level 1, Lincoln House, 4 Ventnor Avenue 
 West Perth WA 6005 

 Whittens & McKeough 
 Level 29, 201 Elizabeth Street 
 Sydney NSW 2000 

Stock exchange listing 

 Viking Mines Limited shares are listed on the Australian Securities Exchange 
(ASX code: VKA) 

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 CHAIRMAN’S LETTER 

Dear Fellow Shareholders, 

Your  Board  of  Directors  is  pleased  to  present  the  2018  Viking  Mines  Limited  (“Viking”  or  the  “Company”) 
annual report. 

I am pleased to report that your company is in a strong cash position. As you can see from the accounts, we 
held cash of $3.09 million at 30 June 2018. At the date of this letter, the USD3 million from the Akoase sale 
remains outstanding. I can assure you that it remains a priority of the Board to ensure this amount is received 
and  the  Board  expects  full  receipt  of  the  outstanding  payments.  Legal  action  is  being  considered  and,  if 
necessary, will be taken to ensure that payment is made. 

As we have previously announced, we are currently seeking suitable investment opportunities for Viking. We 
are  exploring  the  opportunity  to  sell  the  assets  the  Company  holds  in  Mongolia.  We  will  ensure  that  our 
shareholders are informed of any opportunity as soon as we are able to. 

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 the 2019 financial year. 

Yours faithfully 

Raymond Whitten 
Chairman 

4 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OPERATIONS REPORT 

The focus of Viking Mines Limited (“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. 

Ghana Projects 

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. 

The remaining USD 3 million was 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). 

The Board of Viking remains confident that the balance of the Akoase sale proceeds will be received. 

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, 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. 

Mongolia Projects 

The Company has two active projects in Mongolia.  

Berkh Uul Coal Project (Viking 100%) 

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 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. 

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.  

5 

 
 
 
 
 
 
 
 
 
 
 
Khonkhor Zag Coal Project (Viking 100%) 

Khonkor Zag is an anthracitic coal project located 1,400km southwest of Ulaanbaatar in Western 
Mongolia 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.  

No on-ground work was undertaken during the year. Joint venture partners are currently being sought to 
assist with development of the project.  

The board is currently reviewing this project, including whether it will opt to divest this asset.  

Corporate 

The Company has a strong cash position of $3.09 million as at 30 June 2018. In the 2018/2019 financial 
year the company intends to commence drilling on the Tumentu gold project in Ghana following the 
granting of the prospecting licence and will continue to seek 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. 

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 resource projects.  

The Company will carefully assess all projects presented to it with a view to exploiting its strong cash 
position for the maximum benefit of all shareholders. 

6 

 
 
 
 
 
 
 
 
 
 
ANNUAL MINERAL RESOURCES STATEMENT 

There has been no change to the Company’s mineral resource holdings compared to the previous financial year. 
The Mineral Resources statement for the Company, as at 30 June 2018 is summarised below. 

The Company confirms that it is not aware of any new information or data that materially affects the information 
included in the Mineral Resources statement released to the market in an announcement on 13 October 2017 and, 
in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning 
the  estimates  in  the  market  announcement  continue  to  apply  and  have  not  materially  changed.  The  Company 
confirms  that  the  form  and  context  in  which  the  Competent  Person’s  findings  are  presented  have  not  been 
materially modified from the original market announcement. 

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) 

TOTAL 

Cut off (g/t Au) 

Million tonnes 

Au g/t 

Oz Au (x 1,000) 

0.4 

0.5 

0.75 

1.0 

21.6 

20.6 

16.9 

12.0 

BY WEATHERING TYPE 

Oxide 

1.2 

1.2 

1.3 

1.5 

800 

790 

710 

570 

Cut off (g/t Au) 

Million tonnes 

Au g/t 

Oz Au (x 1,000) 

0.4 

0.5 

0.75 

1.0 

Fresh 

5.9 

5.7 

4.6 

3.2 

Cut off (g/t Au) 

Million tonnes 

0.4 

15.6 

1.2 

1.2 

1.3 

1.5 

Au g/t 

1.2 

7 

220 

217 

194 

156 

Oz Au (x 1,000) 

581 

 
 
 
 
 
0.5 

0.75 

1.0 

14.8 

12.3 

8.7 

1.2 

1.3 

1.5 

570 

518 

417 

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. 

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 was reviewed by Mr Peter McMickan. At the 
time of review, Mr McMickan was Viking’s Competent Person and was a full time employee of Viking and a Member 
of the Australasian Institute of Mining and Metallurgy, member number 105742. 

At the time of review, Mr McMickan was responsible for the Akoase East resource estimation and had 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. At the time of review, Mr McMickan approved the Akoase East resource estimation 
as outlined in this report in accordance with the requirements of the JORC Code (2012) and ASX Rules. 

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). 

Tables 2 and 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 

1 

2 

OC 
subtotal 
1 

Underground 

2 

UG 
subtotal 

Grand 
Total 

Measure
d 
_ 

Indicate
d 
4.4 

Inferre
d 
3.5 

_ 

_ 

_ 

_ 

_ 

_ 

2.6 

7.0 

8.2 

6.2 

14.4 

21.4 

0.3 

3.9 

8.3 

4.8 

13.1 

16.9 

Total 

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 

8 

 
 
 
 
 
 
 
 
 
 
 
Table 3: Berkh Uul JORC (2012) Coal Resource Quality 

Resource 
type 

category 

Seam 

Open Cut 

Ind 

1 

2 

IM (%) 

TM 
(%) 

Ash 
(% 
adb) 

VM (% 
adb) 

FC (% 
adb) 

TS (% 
adb) 

CV 
(kcal/k
g adb) 

Rdi
s 

20.8 

13.5 

14.4 

32.6 

39.5 

0.34 

5373 

1.35 

21.0 

13.7 

9.8 

34.9 

41.6 

0.35 

5693 

1.31 

subtotal 

20.9 

13.6 

12.7 

33.4 

40.3 

0.34 

5493 

1.33 

1 

2 

Inf 

18.9 

12.0 

20.1 

30.9 

37.1 

0.37 

5011 

1.39 

20.9 

13.8 

10.0 

34.5 

41.7 

0.37 

5684 

1.32 

subtotal 

19.1 

12.1 

19.2 

31.2 

37.5 

0.37 

5066 

1.38 

OC subtotal 

20.3 

13.1 

15.0 

32.6 

39.3 

0.35 

5342 

1.35 

Underground 

Ind 

1 

2 

18.9 

12.2 

18.8 

31.3 

37.8 

0.34 

5110 

1.38 

20.9 

13.7 

10.3 

33.9 

42.0 

0.42 

5681 

1.32 

subtotal 

19.7 

12.8 

15.2 

32.4 

39.6 

0.37 

5355 

1.35 

1 

2 

Inf 

18.7 

12.0 

19.6 

31.0 

37.4 

0.35 

5050 

1.39 

21 

13.8 

10.6 

33.8 

41.8 

0.43 

5657 

1.32 

subtotal 

19.6 

12.6 

16.3 

32.0 

39.0 

0.38 

5272 

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. 

9 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
A summary of the main governance arrangements and internal controls that Viking has put in place with respect to its 
estimates of mineral resources and the estimation process include use of industry standard drilling and sub-sampling 
techniques, a chain of custody for sample integrity, use of standards, blanks and duplicates in sample analysis, internal 
database validation and use of internationally recognised independent resource consultants with internal peer review 
of estimation assumptions and techniques. Should external review of the resource estimates be required, the Company 
will engage a Competent Person. 

The complete range of governance and internal controls for the resource estimates outlined above are included in Table 
1  of  ASX  announcement  dated  4  October  2013  for  the  Akoase  East  resource  estimate,  and  Table  1  of  ASX 
Announcement dated 17 March 2014 for the Berkh Uul resource estimate. 

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 

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Viking Mines Limited 
Directors' report 
30 June 2018 

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 2018. In order to comply with the Corporations Act, the Directors report as follows: 

Directors 
The following persons were directors of Viking Mines Limited during the whole of the financial year and up to the date of 
this report, unless otherwise stated: 

Raymond Whitten (Chairman) 
Charles William Thomas (appointed 29 November 2017) 
Michael Andrew Cox (appointed 29 November 2017) 
John William (Jack) Gardner (resigned 29 November 2017) 
Peter McMickan (ceased 29 November 2017) 

Principal activities 
The principal activity of the Group during the financial period was investment in mineral exploration projects. 

Dividends 
There were no dividends paid, recommended or declared during the current or previous financial year. 

Review of operations 
The profit for the consolidated entity after providing for income tax amounted to $1,686,868 (30 June 2017: loss of 
$3,481,078). 

Significant changes in the state of affairs 
There were no significant changes in the state of affairs of the consolidated entity during the financial year. 

Matters subsequent to the end of the financial year 
No matter or circumstance has arisen since 30 June 2018 that has significantly affected, or may significantly affect the 
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future 
financial years. 

Likely developments and expected results of operations 
The Company continues to identify and evaluate new value-creating opportunities in the mining sector. The Company 
continues its review of mineral project farm-in/acquisition opportunities with the objective of acquiring resource assets that 
have the potential of being world class. 

Tumentu Gold Project, Ghana 
The Company is continuing through the due process with the Minerals Commission to be granted the prospecting licence 
for Tumentu.  

Berkh Uul Coat Project, Mongolia 
The Company continues to seek resolution relating to changes to boundaries of protected areas affecting the Berkh Uul 
prospecting licence and the Company continues to investigate its legal options in relation to this matter. 

Khonkhor Zag Coal Project, Mongolia 
The Company is currently reviewing this project and are exploring options with regards to divesting this asset. 

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Viking Mines Limited 
Directors' report 
30 June 2018 

Environmental regulation 
The Group is subject to significant environmental legal regulations in respect to its exploration and evaluation activities in 
the countries where it holds tenements. There have been no known breaches of these regulations and principles.  

Information on directors 

Name: 
Title: 

 Raymond Whitten 
 Chairman and Non-Executive Director 

Experience and expertise: 

 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 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. 

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. 

Previously, Mr Whitten served as Chairman of Whittens & McKeough, a boutique 
Sydney law firm specialising in mergers and acquisitions and corporate law. Mr 
Whitten is now Special Counsel to that firm. 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). 

Other current directorships: 
 Nil 
Former directorships (last 3 years):   Nil 
Interests in shares: 

 45,926,307 

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Viking Mines Limited 
Directors' report 
30 June 2018 

Name: 
Title: 

 Charles William Thomas (appointed 29 November 2017) 
 Non-Executive Director 

Experience and expertise: 

 Mr Thomas holds a Bachelor of Commerce from UWA majoring in Corporate Finance. 
Mr Thomas is an Executive Director and Founding Partner of GTT a leading boutique 
corporate advisory firm based in Australia. 

Mr Thomas has worked in the financial service industry for more than a decade and 
has extensive experience in capital markets as well as the structuring of corporate 
transactions. Mr Thomas has significant experience sitting on numerous ASX boards 
spanning the mining, resources and technology space. Mr Thomas’s previous 
directorships include among others AVZ Minerals Ltd (ASX:AVZ), Liberty Resources 
Ltd (ASX:LBY), Force Commodities Limited (ASX:4CE) and Applabs Technologies 
Ltd (ASX:ALA) where he was responsible for the sourcing and funding of numerous 
projects. Mr Thomas is currently the Managing Director of Marquee Resources 
Limited (ASX:MQR) and Non-executive director of Toptung Ltd (ASX:TTW). 

Other current directorships: 

 Managing director of Marquee Resources Limited (ASX: MQR) since 2016 
Non-executive director of Toptung Ltd (ASX: TTW) since 2018 

Former directorships (last 3 years):   Non-executive director of AVZ Minerals Ltd (ASX: AVZ )  

Interests in shares: 

Non-executive director of Force Commodities Ltd (ASX: 4CE)  
Non-executive director of Search Party Group Ltd (ASX: SP1)  
Non-executive director of Liberty Resources Ltd (ASX: LBY)  
Non-executive director of XTV Networks Ltd (ASX: XTV) 
 9,000,000 

Name: 
Title: 

 Michael Andrew Cox (appointed 29 November 2017) 
 Non-Executive Director 

Experience and expertise: 

 Mr Cox holds both a B.Science (Geology) and a B.Law. He has run a private 
corporate advisory services firm since 2008. He commenced his career as a mining 
analyst for stockbroking firms followed by a role being responsible for the delineation 
and grade control of a developing bentonite deposit. He then moved into various 
board positions and corporate development roles with a number of listed and unlisted 
public companies including NSX Ltd, CEAL Ltd, Syngas Ltd, Benitec Ltd, Queensland 
Opals NL and MultiEmedia Ltd. 

Other current directorships: 
Former directorships (last 3 years):   Non-executive director of Syngas Limited (ASX: SYS) 
Interests in shares: 

 Non-executive Chairman of NSX Limited (ASX: NSX) since 2009 

 Nil 

'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all 
other types of entities, unless otherwise stated. 

'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes 
directorships of all other types of entities, unless otherwise stated. 

Company secretary 
Dean Jagger (appointed 1 March 2018). 
Michael Langoulant was Company secretary from the beginning of the period until 1 March 2018. 

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Viking Mines Limited 
Directors' report 
30 June 2018 

Meetings of directors 
The number of meetings of the company's Board of Directors ('the Board') held during the year ended 30 June 2018, and 
the number of meetings attended by each director were: 

Raymond Whitten 
Charles Thomas (appointed 29 November 2017 
Michael Cox (appointed 29 November 2017) 
John Gardner (resigned 29 November 2017) 
Peter McMickan (ceased 29 November 2017) 

Held: represents the number of meetings held during the time the director held office. 

  Directors’ 
meetings 
held 

  Directors’ 
meetings 
attended 

7 
4 
4 
4 
3 

7 
4 
4 
4 
3 

Remuneration report (audited) 
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 2018. 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. 

The remuneration report is set out under the following main headings: 
● 
● 
● 
● 
● 

 Principles used to determine the nature and amount of remuneration 
 Details of remuneration 
 Employment contracts/Consultancy agreements 
 Share-based compensation 
 Additional disclosures relating to key management personnel 

Principles used to determine the nature and amount of remuneration 
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. 

14 

 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
 
  
  
Viking Mines Limited 
Directors' report 
30 June 2018 

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. 

Directors’ fees 
Non-executive  Directors  receive  a  separate  fixed  fee  for  their  services  as  directors.  The  current  Directors’  fee  pool  is 
$200,000 per annum to be allocated at the discretion of the Board. 

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. 

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 2018 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. 

2018 

Non-Executive Directors: 
Raymond Whitten 
Charles Thomas * 
Michael Cox ** 
John Gardner *** 

Executive Directors: 
Peter McMickan **** 

Other Key Management 
Personnel: 
Michael Langoulant ***** 

Short-term benefits 

Post-
employment 
benefits 

Long-term 
benefits 

  Share-
based 
payments 

Cash salary 
  and fees   
$ 

Cash 
bonus 
$ 

Non- 

Super- 

  monetary    annuation   

$ 

$ 

Long 
service 
leave 
$ 

Equity- 
settled 
$ 

Total 
$ 

85,514   
35,514   
35,514   
68,458   

313,593   

60,000   
598,593   

-  
-  
-  
-  

-  

-  
-  

15 

-  
-  
-  
-  

8,124   
3,374   
3,374   
6,503   

-  

26,804   

-  
-  

-  
48,179   

-  
-  
-  
-  

-  

-  
-  

-  
-  
-  
-  

93,638  
38,888  
38,888  
74,961  

-  

340,397  

-  
-  

60,000  
646,772  

 
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
  
 
  
 
  
 
  
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
 
 
 
 
 
 
 
  
  
  
  
  
  
 
 
  
  
  
  
  
  
 
 
 
 
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
Viking Mines Limited 
Directors' report 
30 June 2018 

  C Thomas appointed 29 November 2017 
  M Cox appointed 29 November 2017 

* 
** 
***   
J Gardner resigned 29 November 2017 
****    P McMickan ceased 29 November 2017 
*****   M Langoulant resigned as Company Secretary on 1 March 2018. Fees for bookkeeping, accounting and corporate 
administration services of $60,000 (2017: $81,000) were paid to a company of which M Langoulant is a director and 
shareholder. 

Short-term benefits 

Post-
employment 
benefits 

Long-term 
benefits 

  Share-
based 
payments 

Cash salary 
  and fees   
$ 

Cash 
bonus 
$ 

Non- 

Super- 

  monetary    annuation   

$ 

$ 

Long 
service 
leave 
$ 

Equity- 
settled 
$ 

Total 
$ 

65,794   
64,897   
119,867   

81,000   
331,558   

-  
-  
-  

-  
-  

-  
-  
-  

-  
-  

3,780   
6,165   
29,333   

-  
39,278   

-  
-  
-  

-  
-  

-  
-  
-  

-  
-  

69,574  
71,062  
149,200  

81,000  
370,836  

2017 

Non-Executive Directors: 
Raymond Whitten 
John Gardner 
Peter McMickan 

Other Key Management 
Personnel: 
Michael  Langoulant * 

* 

 Fees for bookkeeping, accounting and corporate administration services $81,000 were paid to a company of which M 
Langoulant is a director and shareholder. 

Employment contracts/Consultancy agreements 
As at the date of this report, there are no current employment contracts/consultancy agreements with any of the Directors. 

Share-based compensation 

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. 

16 

 
  
  
 
 
 
   
  
 
 
 
 
 
 
 
 
  
 
  
 
  
 
  
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
 
 
 
 
 
 
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
  
Viking Mines Limited 
Directors' report 
30 June 2018 

Additional disclosures relating to key management personnel 

Shareholding 
The number of shares in the company held during the financial year by each director and other members of key management 
personnel of the consolidated entity, including their personally related parties, is set out below: 

  Balance at     Received    
as part of    

the start of    
the year 

  remuneration   Additions 

  Disposals/    
other 

  Balance at  
the end of  
the year 

Ordinary shares 
Raymond Whitten 
Charles Thomas (appointed 29 November 
4,200,000  
2017) * 
John Gardner (resigned 29 November 2017) **   22,507,643   
Peter McMickan (ceased 29 November 2017) 
** 
Michael Langoulant (resigned 1 March 2018) **  

  42,820,577   

4,046,837  
1,501,316   
  75,076,373   

-  

- 
-  

3,105,730   

-   45,926,307  

4,800,000  
6,642,770   

- 
(29,150,413)  

9,000,000  
-   

150,000  
- 
-  
-  
-   14,698,500   

(4,196,837) 
(1,501,316)  

-   
-   
(34,848,566)   54,926,307  

* 
** 

 The balance at the start of the year represents the balance at date of appointment 
 The amount in "other" represents the balance at date of resignation 

 Michael Cox (appointed 29 November 2017) does not hold any shares in the Company. 

This concludes the remuneration report, which has been audited. 

Shares under option 
Outstanding share options at the date of this report are as follows: 

Grant date 

7 April 2017 

 Expiry date 

  Exercise  

price 

  Number  
  under option 

 Exercisable on or before 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. 

Indemnity and insurance Directors of 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. 

Indemnity and insurance of auditor 
The company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the 
company or any related entity against a liability incurred by the auditor. 

During the financial year, the company has not paid a premium in respect of a contract to insure the auditor of the company 
or any related entity. 

17 

 
  
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
 
  
 
 
  
 
 
 
 
 
  
  
  
  
  
  
Viking Mines Limited 
Directors' report 
30 June 2018 

Proceedings on behalf of the company 
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf 
of the company, or to intervene in any proceedings to which the company is a party for the purpose of taking responsibility 
on behalf of the company for all or part of those proceedings. 

Non-audit services 
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. 

Auditor's 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 2018. 

This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001. 

On behalf of the directors 

___________________________ 

27 September 2018 

18 

 
  
  
  
  
  
  
  
  
  
 
 
 
 
  
  
Viking Mines Limited 
Contents 
30 June 2018 

 Statement of profit or loss and other comprehensive income 
Statement of financial position 
Statement of changes in equity 
Statement of cash flows 
Notes to the financial statements 
Directors' declaration 
Independent auditor's report to the members of Viking Mines Limited 
Shareholder information 

General information 

21 
22 
23 
24 
25 
43 
44 
47 

The financial statements cover Viking Mines Limited ('the Company') as a consolidated entity  consisting of Viking Mines 
Limited and the entities it controlled at the end of, or during, the year ('the Group'). The financial statements are presented 
in Australian dollars, which is Viking Mines Limited's functional and presentation currency. 

Viking Mines Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered 
office is: 

Level 29, 201 Elizabeth Street 
Sydney NSW 2000 

A description of the nature of the consolidated entity's operations and its principal activities are included in the directors' 
report, which is not part of the financial statements. 

The financial statements were authorised for issue, in accordance with a resolution of directors, on 27 September 2018. The 
directors have the power to amend and reissue the financial statements. 

Corporate Governance Statement 

The Company’s Corporate Governance Statement can be found on the company’s website: www.vikingmines.com/ 

20 

 
  
  
 
  
  
  
  
  
  
  
  
  
  
Viking Mines Limited 
Statement of profit or loss and other comprehensive income 
For the year ended 30 June 2018 

Revenue 

Expenses 
Auditors' fees 
Consultancy costs 
Employee benefits expense 
Direct exploration and project evaluation 
Foreign exchange loss 
Other expenses 
Impairment of exploration project acquisition costs 

Profit/(loss) before income tax expense 

  Note   

Consolidated 

2018 
$ 

2017 
$ 

4 

2,789,859   

387,542  

(23,442)  
(405,844)  
(444,393)  
(3,522)  
133,491   
(359,281)  
-    

(43,500) 
(227,985) 
(461,876) 
(521,121) 
(62,408) 
(301,730) 
(2,250,000) 

1,686,868   

(3,481,078) 

Income tax expense 

5 

-    

-   

Profit/(loss) after income tax expense for the year attributable to the owners of 
Viking Mines Limited 

12 

1,686,868  

(3,481,078) 

Other comprehensive income 

Items that may be reclassified subsequently to profit or loss 
Foreign currency translation 

Other comprehensive income for the year, net of tax 

Total comprehensive income for the year attributable to the owners of Viking 
Mines Limited 

(508,531)  

(197,933) 

(508,531)  

(197,933) 

1,178,337  

(3,679,011) 

Cents 

Cents 

Basic earnings per share 
Diluted earnings per share 

  25 
  25 

0.54   
0.54   

(1.21) 
(1.21) 

The above statement of profit or loss and other comprehensive income should be read in conjunction with the 
accompanying notes 
21 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
  
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
  
 
 
 
 
  
 
 
 
 
  
 
 
 
  
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
Viking Mines Limited 
Statement of financial position 
As at 30 June 2018 

Assets 

Current assets 
Cash and cash equivalents 
Trade and other receivables 
Total current assets 

Non-current assets 
Property, plant and equipment 
Exploration and evaluation 
Total non-current assets 

Total assets 

Liabilities 

Current liabilities 
Trade and other payables 
Total current liabilities 

Total liabilities 

Net assets 

Equity 
Issued capital 
Reserves 
Accumulated losses 
Equity attributable to the owners of Viking Mines Limited 
Non-controlling interest 

Total equity 

  Note   

Consolidated 

2018 
$ 

2017 
$ 

6 
7 

8 

9 

3,090,051   
20,145   
3,110,196   

2,063,442  
24,650  
2,088,092  

1,522   
277,289   
278,811   

-   
250,000  
250,000  

3,389,007   

2,338,092  

207,873   
207,873   

335,295  
335,295  

207,873   

335,295  

3,181,134   

2,002,797  

  10 
  11 
  12 

  22,537,072    22,537,072  
27,038  
(19,820,088) 
2,744,022  
(741,225) 

(481,493)  
(18,133,220)  
3,922,359   
(741,225)  

3,181,134   

2,002,797  

The above statement of financial position should be read in conjunction with the accompanying notes 
22 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
  
 
 
 
  
 
 
 
 
 
  
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
  
Viking Mines Limited 
Statement of changes in equity 
For the year ended 30 June 2018 

Consolidated 

Issued 
capital 
$ 

  Reserves 

$ 

Retained 
profits 
$ 

  Outside 
equity 
interest 
$ 

Total equity 
$ 

Balance at 1 July 2016 

  21,345,697   

224,971   

(16,339,010)  

(741,225)  

4,490,433  

Loss after income tax expense for the year 
Other comprehensive income for the year, net 
of tax 

Total comprehensive income for the year 

Transactions with owners in their capacity as 
owners: 
Contributions of equity, net of transaction costs 
(note 10) 

-  

- 

-  

-  

(3,481,078)  

-  

(3,481,078) 

(197,933) 

- 

- 

(197,933) 

(197,933)  

(3,481,078)  

-  

(3,679,011) 

1,191,375  

- 

- 

- 

1,191,375  

Balance at 30 June 2017 

  22,537,072   

27,038   

(19,820,088)  

(741,225)  

2,002,797  

Consolidated 

Issued 
capital 
$ 

  Reserves 

$ 

Accumulated 
losses 
$ 

  Outside 
equity 
interest 
$ 

Total equity 
$ 

Balance at 1 July 2017 

  22,537,072   

27,038   

(19,820,088)  

(741,225)  

2,002,797  

Profit after income tax expense for the year 
Other comprehensive income for the year, net 
of tax 

Total comprehensive income for the year 

-  

- 

-  

-  

1,686,868   

(508,531) 

- 

(508,531)  

1,686,868   

-  

- 

-  

1,686,868  

(508,531) 

1,178,337  

Balance at 30 June 2018 

  22,537,072   

(481,493)  

(18,133,220)  

(741,225)  

3,181,134  

The above statement of changes in equity should be read in conjunction with the accompanying notes 
23 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
 
 
 
 
 
 
 
 
 
  
  
  
  
 
 
 
 
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
 
 
 
 
 
 
 
 
 
  
  
  
  
 
 
 
 
  
  
  
  
 
  
Viking Mines Limited 
Statement of cash flows 
For the year ended 30 June 2018 

Cash flows from operating activities 
Payments to suppliers and employees 
Interest received 

  Note   

Consolidated 

2018 
$ 

2017 
$ 

(1,152,123)  
5,809   

(860,790) 
12,298  

Net cash used in operating activities 

  23 

(1,146,314)  

(848,492) 

Cash flows from investing activities 
Payments for property, plant and equipment 
Payments for exploration and evaluation 
Proceeds from sale of mining properties 

Net cash from investing activities 

Cash flows from financing activities 
Proceeds from issue of shares 
Share issue transaction costs 

Net cash from financing activities 

8 

(1,522)  
(104,315)  
2,509,552   

-   
(521,121) 
1,195,572  

2,403,715   

674,451  

  10 

-    
-    

1,267,420  
(76,045) 

-    

1,191,375  

Net increase in cash and cash equivalents 
Cash and cash equivalents at the beginning of the financial year 
Effects of exchange rate changes on cash and cash equivalents 

1,257,401   
2,063,442   
(230,792)  

1,017,334  
1,306,449  
(260,341) 

Cash and cash equivalents at the end of the financial year 

6 

3,090,051   

2,063,442  

The above statement of cash flows should be read in conjunction with the accompanying notes 
24 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
 
 
  
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
  
Viking Mines Limited 
Notes to the financial statements 
30 June 2018 

Note 1. Significant accounting policies 

The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies 
have been consistently applied to all the years presented, unless otherwise stated. 

New or amended Accounting Standards and Interpretations adopted 
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, 
have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2018. A discussion of 
those future requirements and their impact on the Group is as follows: 

25 

 
  
  
  
  
  
Viking Mines Limited 
Notes to the financial statements 
30 June 2018 

Note 1. Significant accounting policies (continued) 

New / revised pronouncement 

Nature of change 

AASB 9 Financial Instruments  AASB 9: 

 Mandatory and 
anticipated date 
of application for 
the group 

 1 July 2018 

- replaces AASB 139 Financial 
Instruments: Recognition and 
Measurement; 
- require entities to classify financial 
assets and liabilities using a new method. 
This is expected to result in changes in 
the way the value of financial instruments 
are recognised and forecasted. 
- Financial assets including trade 
receivables will be subject to a new 
impairment model based on the concept 
of ‘expected loss’. This new model will 
require entities to recognise losses related 
to doubtful debts earlier. The new 
standard also prescribes new hedging 
rules and guidance on recognition and 
derecognition of financial instruments.  
- The Group will apply the new standard 
for all accounting periods starting on and 
after 1 July 2018 to all applicable items 
recognised. The cumulative effect of the 
initial application will be recognised as an 
adjustment to the opening balance of 
retained earnings. 
 AASB 15: 
- replaces AASB 118 Revenue, AASB 111 
Construction Contracts and some 
revenue-related Interpretations; 
- establishes a new revenue recognition 
model;- changes the basis for deciding 
whether revenue is to be recognised over 
time or at a point in time; 
- provides new and more detailed 
guidance on specific topics (e.g., multiple 
element arrangements, variable pricing, 
rights of return, warranties and 
licensing);and 
- expands and improves disclosures about 
revenue. 
 AASB 16: 
- replaces AASB 117 Leases and some 
lease-related Interpretations 
- requires all leases to be accounted for 
‘on-balance sheet’ by lessees, other than 
short-term and low value asset leases 
- provides new guidance on the 
application of the definition of lease and 
on sale and lease back accounting 
- largely retains the existing lessor 
accounting requirements in AASB 117  
- requires new and different disclosures 
about leases. 

26 

 1 July 2018 

 1 July 2019 

AASB 15 Revenue from 
Contracts with Customers  

AASB 16 Leases 

Likely impact on initial 
application 

 The Group will adopt this 
standard from 1 July 2018. 
The directors have 
determined that the adoption 
of this standard is unlikely to 
have any material impact. 

 The Group will adopt this 
standard from 1 July 2018. 
The directors have 
determined that the adoption 
of this standard is unlikely to 
have any material impact. 

 Management has completed 
an assessment by reviewing 
all leases. Based on the work 
performed to date the findings 
indicate that the application of 
AASB16 will not have a 
material impact on the 
recognition of expenses for 
rent, depreciation or financing 
costs or on the recognition of 
leased assets or lease 
liabilities.  

 
  
  
  
 
 
 
  
  
  
  
Viking Mines Limited 
Notes to the financial statements 
30 June 2018 

Note 1. Significant accounting policies (continued) 

Basis of preparation 
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and 
Interpretations issued by the Australian Accounting Standards Board ("AASB") and the Corporations Act 2001, as appropriate 
for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as 
issued by the International Accounting Standards Board ("IASB"). 

The Company is registered and domiciled in Australia. 

The financial statements have been approved and authorised for issue on 27 September 2018 by the Board of Directors. 

Historical cost convention 
The  financial  statements  have  been  prepared  under  the  historical  cost  convention,  except  for,  where  applicable,  the 
revaluation of available-for-sale financial assets, financial assets and liabilities at fair value through profit or loss, investment 
properties, certain classes of property, plant and equipment and derivative financial instruments. 

Critical accounting estimates 
The  preparation  of  the  financial  statements  requires  the  use  of  certain  critical  accounting  estimates.  It  also  requires 
management to exercise its judgement in the process of applying the consolidated entity's accounting policies. The areas 
involving  a  higher  degree  of  judgement  or  complexity,  or  areas  where  assumptions  and  estimates  are  significant  to  the 
financial statements, are disclosed in note 2. 

Parent entity information 
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only. 
Supplementary information about the parent entity is disclosed in note 20. 

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. 

Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity 
when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the 
ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from 
the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases. 

Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are 
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset 
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies 
adopted by the consolidated entity. 

Foreign currency translation 
The  financial  statements are  presented  in  Australian  dollars,  which  is  Viking Mines  Limited's  functional  and  presentation 
currency. 

Foreign currency transactions 
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the 
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation 
at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in 
profit or loss. 

27 

 
  
  
  
  
 
  
  
  
  
 
 
  
  
  
  
  
Viking Mines Limited 
Notes to the financial statements 
30 June 2018 

Note 1. Significant accounting policies (continued) 

Foreign operations 
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting 
date. The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange 
rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences 
are recognised in other comprehensive income through the foreign currency reserve in equity. 

The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of. 

Revenue recognition 
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: 

Interest income 
Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial asset. 

Income tax 
The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable 
income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary 
differences, unused tax losses and the adjustment recognised for prior periods, where applicable. 

Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the 
assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for: 
 When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a 
● 
transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor 
taxable profits; or 
 When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the 
timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable 
future. 

● 

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that 
future taxable amounts will be available to utilise those temporary differences and losses. 

Current and non-current classification 
Assets and liabilities are presented in the statement of financial position based on current and non-current classification. 

An  asset  is  classified  as  current  when:  it  is  either  expected  to  be  realised  or  intended  to  be  sold  or  consumed  in  the 
consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 
12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used 
to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current. 

A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating cycle; 
it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no 
unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities 
are classified as non-current. 

Deferred tax assets and liabilities are always classified as non-current. 

Cash and cash equivalents 
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly 
liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and 
which are subject to an insignificant risk of changes in value. For the statement of cash flows presentation purposes, cash 
and cash equivalents also includes bank overdrafts, which are shown within borrowings in current liabilities on the statement 
of financial position. 

Trade and other receivables 
Other receivables are recognised at amortised cost, less any provision for impairment. 

28 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
Viking Mines Limited 
Notes to the financial statements 
30 June 2018 

Note 1. Significant accounting policies (continued) 

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). 

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 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. 

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. 

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Viking Mines Limited 
Notes to the financial statements 
30 June 2018 

Note 1. Significant accounting policies (continued) 

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. 

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. 

Goods and Services Tax ('GST') and other similar 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. 

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. 

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Viking Mines Limited 
Notes to the financial statements 
30 June 2018 

Note 2. 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: 

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. 

Note 3. Operating segments 

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 has been defined as the 
Chief Operating Decision Maker. 

The Board 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 
two  geographical  segments,  being  the  resources  sector  in  Ghana  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.  

Note 4. Revenue 

Interest 
Proceeds on sale of mining properties 

Revenue 

Note 5. Income tax expense 

Numerical reconciliation of income tax expense and tax at the statutory rate 
Profit/(loss) before income tax expense 

Tax at the statutory tax rate of 27.5% (2017: 30%) 

Tax effect amounts which are not deductible/(taxable) in calculating taxable income: 

Impairment of project acquisition costs 

Current year tax losses not recognised 
Prior year tax losses not recognised now recouped 

Income tax expense 

31 

Consolidated 

2018 
$ 

2017 
$ 

5,809   
2,784,050   

12,298  
375,244  

2,789,859   

387,542  

Consolidated 

2018 
$ 

2017 
$ 

1,686,868   

(3,481,078) 

463,889   

(1,044,323) 

-    

675,000  

463,889   
-    
(463,889)  

(369,323) 
369,323  
-   

-    

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Viking Mines Limited 
Notes to the financial statements 
30 June 2018 

Note 5. Income tax expense (continued) 

Deferred tax assets not recognised 
Deferred tax assets not recognised comprises temporary differences attributable to: 

Tax revenue losses 
Share issue costs 

Total deferred tax assets not recognised 

Consolidated 

2018 
$ 

2017 
$ 

2,844,588   
30,058   

3,642,038  
32,971  

2,874,646   

3,675,009  

The above potential tax benefit, which excludes tax losses, for deductible temporary differences has not been recognised in 
the statement of financial position as the recovery of this benefit is uncertain. 

Note 6. Current assets - cash and cash equivalents 

Cash at bank 
Short term deposits 

Consolidated 

2018 
$ 

2017 
$ 

591,661   
2,498,390   

1,599,976  
463,466  

3,090,051   

2,063,442  

(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% (2017: 0.5%). 

(c) Cash balances not available for use 
Total cash balances not available for use are nil (2017: Nil). 

Note 7. Current assets - trade and other receivables 

Other receivables 
GST 

Consolidated 

2018 
$ 

2017 
$ 

2,638   
17,507   

2,631  
22,019  

20,145   

24,650  

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Viking Mines Limited 
Notes to the financial statements 
30 June 2018 

Note 8. Non-current assets - exploration and evaluation 

Capitalised exploration costs 
Less: Accumulated amortisation 

Consolidated 

2018 
$ 

2017 
$ 

2,527,289   
(2,250,000)  

2,500,000  
(2,250,000) 

277,289   

250,000  

Reconciliations 
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out 
below: 

Consolidated 

Balance at 1 July 2016 
Sale of tenement proceeds 
Impairment charge 

Balance at 30 June 2017 
Additions 

Balance at 30 June 2018 

$ 

3,270,328  
(770,328) 
(2,250,000) 

250,000  
27,289  

277,289  

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. 

Additions during the year relate to licence costs in Berkh Uul and additional investment in Khonkhor Zag project. 

The Group has undertaken a review of the capitalised exploration costs and consider there to be no indication of impairment 
to the carrying value of these assets. In 2017, an impairment charge was raised against the carrying value of the Group’s 
coal tenements in Mongolia. The Group had been unable to advance development of its main coal tenement asset, Berkh 
Uul due to post-acquisition government determinations. As a result the Group had written down these assets to a carrying 
value of $250,000). 

Note 9. Current liabilities - trade and other payables 

Trade payables 
Other payables 

Refer to note 14 for further information on financial instruments. 

Trade payables are non-interest bearing and are normally paid on 30 day terms. 

Consolidated 

2018 
$ 

2017 
$ 

112,501   
95,372   

132,970  
202,325  

207,873   

335,295  

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Viking Mines Limited 
Notes to the financial statements 
30 June 2018 

Note 10. Equity - issued capital 

Ordinary shares - fully paid 

313,717,856   

313,717,856    22,537,072    22,537,072  

Movements in ordinary share capital 

Consolidated 

2018 
Shares 

2017 
Shares 

2018 
$ 

2017 
$ 

Details 

Balance 

Share placement 

Share issue costs 

Balance 

Balance 

Date 

  Number of 
Shares 

Issue price 

$ 

 1 July 2016 

250,974,285   

   21,345,697  

25 Nov 2016 

62,743,571  

$0.020  

1,267,420  

- 

$0.000 

(76,045) 

 30 June 2017 

313,717,856   

   22,537,072  

30 June 2018 

313,717,856  

22,537,072  

Movements in listed options exercisable at $0.09 on or before 30 April 2017 

Details 

Balance 

Issued/(expired) 

Balance 

Balance 

Date 

 1 July 2016 

 30 June 2017 

30 June 2018 

  Number of 
Options 

44,771,552  

(44,771,552) 

-  

- 

Movements in unlisted options exercisable at $0.20 on or before 15 November 2016 

Details 

Balance 

Issued/(expired) 

Balance 

Balance 

Date 

 1 July 2016 

 30 June 2017 

30 June 2018 

  Number of 
Options 

3,000,000   

(3,000,000) 

-  

- 

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Viking Mines Limited 
Notes to the financial statements 
30 June 2018 

Note 10. Equity - issued capital (continued) 

Movements in unlisted options exercisable at $0.046 on or before 30 June 2020 

Details 

Balance 

Issued/(expired) 

Balance 

Balance 

Date 

 1 July 2016 

  Number of 
Options 

-  

12,000,000  

 30 June 2017 

12,000,000   

30 June 2018 

12,000,000  

Ordinary shares 
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. 

Note 11. Equity - reserves 

Foreign currency reserve 
Share-based payments reserve 

Consolidated 

2018 
$ 

2017 
$ 

(725,493)  
244,000   

(216,962) 
244,000  

(481,493)  

27,038  

Foreign currency reserve 
The reserve is used to recognise exchange differences arising from the  translation of the financial statements of foreign 
operations to Australian dollars. It is also used to recognise gains and losses on hedges of the net investments in foreign 
operations. 

Share-based payments reserve 
The  reserve  is  used  to  recognise  the  value  of  equity  benefits  provided  to  employees  and  directors  as  part  of  their 
remuneration, and other parties as part of their compensation for services. 

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. 

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Viking Mines Limited 
Notes to the financial statements 
30 June 2018 

Note 11. Equity - reserves (continued) 

Movements in reserves 
Movements in each class of reserve during the current and previous financial year are set out below: 

Consolidated 

Balance at 1 July 2016 
Foreign currency translation 

Balance at 30 June 2017 
Foreign currency translation 

Balance at 30 June 2018 

Note 12. Equity - accumulated losses 

Accumulated losses at the beginning of the financial year 
Profit/(loss) after income tax expense for the year 

Accumulated losses at the end of the financial year 

Note 13. Equity - dividends 

Share based 

  payments 

$ 

Foreign 
currency 
translation 
$ 

Total 
$ 

244,000   
-  

(19,029)  
(197,933)  

224,971  
(197,933) 

244,000   
-  

(216,962)  
(508,531)  

27,038  
(508,531) 

244,000   

(725,493)  

(481,493) 

Consolidated 

2018 
$ 

2017 
$ 

(19,820,088)  
1,686,868   

(16,339,010) 
(3,481,078) 

(18,133,220)  

(19,820,088) 

There were no dividends paid, recommended or declared during the current or previous financial year. 

Note 14. Financial instruments 

Financial risk management objectives 
The consolidated entity's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price 
risk and interest rate risk), credit risk and liquidity risk. The consolidated entity's overall risk management program focuses 
on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of 
the  consolidated  entity.  The  consolidated  entity  uses  derivative  financial  instruments  such  as  forward  foreign  exchange 
contracts to hedge certain risk exposures. Derivatives are exclusively used for hedging purposes, i.e. not as trading or other 
speculative  instruments.  The  consolidated  entity  uses  different  methods  to  measure  different  types  of  risk  to  which  it  is 
exposed. These methods include sensitivity analysis in the case of interest rate, foreign exchange and other price risks, 
ageing analysis for credit risk and beta analysis in respect of investment portfolios to determine market risk. 

Risk management is carried out by senior finance executives ('finance') under policies approved by the Board of Directors 
('the Board'). These policies include identification and analysis of the risk exposure of the consolidated entity and appropriate 
procedures, controls and risk limits. Finance identifies, evaluates and hedges financial risks within the consolidated entity's 
operating units. Finance reports to the Board on a monthly basis. 

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Viking Mines Limited 
Notes to the financial statements 
30 June 2018 

Note 14. Financial instruments (continued) 

Market risk 

Foreign currency risk 
The consolidated entity undertakes certain transactions denominated in foreign currency and is exposed to foreign currency 
risk  through  foreign  exchange  rate  fluctuations.  Foreign  exchange  risk  arises  from  future  commercial  transactions  and 
recognised financial assets and financial liabilities denominated in a currency that is not the entity's functional currency. As 
each of the individual entity within the group primarily transact in their own respective functional currency, foreign currency 
risk is deemed to be minimal. 

Price risk 
The consolidated entity is not exposed to any significant price risk. 

Interest rate risk 
Interest rate risk is deemed to be minimal as the consolidated entity exposure on interest risk mainly on its cash at bank. 

Credit risk 
Credit  risk  refers  to  the  risk  that  a  counterparty  will  default  on  its contractual  obligations  resulting  in  financial  loss  to  the 
consolidated  entity.  The  consolidated  entity  has  a  strict  code  of  credit,  including  obtaining  agency  credit  information, 
confirming references and setting appropriate credit limits. The consolidated entity obtains guarantees where appropriate to 
mitigate credit risk. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying 
amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to 
the financial statements. The consolidated entity does not hold any collateral. 

The consolidated entity deemed its credit risk to be minimal as its financial assets are mainly cash held at financial institutions. 

Liquidity risk 
The consolidated entity manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by 
continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities. 

Remaining contractual maturities 
The following tables detail the consolidated entity's remaining contractual maturity for its financial instrument liabilities. The 
tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which 
the financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining 
contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position. 

Consolidated - 2018 

Non-derivatives 
Non-interest bearing 
Trade payables 
Other payables 
Total non-derivatives 

Consolidated - 2017 

Non-derivatives 
Non-interest bearing 
Trade payables 
Other payables 
Total non-derivatives 

  Weighted 
average 
interest rate 
% 

1 year or less 
$ 

Between 1 
and 2 years 
$ 

Between 2 
and 5 years 
$ 

Over 5 years 
$ 

  Remaining 
contractual 
maturities 
$ 

- 
- 

112,501   
95,372   
207,873   

-  
-  
-  

-  
-  
-  

-  
-  
-  

112,501  
95,372  
207,873  

  Weighted 
average 
interest rate 
% 

1 year or less 
$ 

Between 1 
and 2 years 
$ 

Between 2 
and 5 years 
$ 

Over 5 years 
$ 

  Remaining 
contractual 
maturities 
$ 

- 
- 

132,970   
202,325   
335,295   

-  
-  
-  

-  
-  
-  

-  
-  
-  

132,970  
202,325  
335,295  

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Viking Mines Limited 
Notes to the financial statements 
30 June 2018 

Note 14. Financial instruments (continued) 

The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed 
above. 

Fair value of financial instruments 
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value. 

Note 15. Key management personnel disclosures 

Directors 
The following persons were directors of Viking Mines Limited during the financial year: 

Raymond Whitten 
Charles William Thomas (appointed 29 November 2017) 
Michael Andrew Cox (appointed 29 November 2017) 
John (Jack) Gardner (resigned 29 November 2017) 
Peter McMickan (ceased 29 November 2017) 

Other key management personnel 
The following person also had the authority and responsibility for planning, directing and controlling the major activities of the 
consolidated entity, directly or indirectly, during the financial year: 

Michael Langoulant (resigned 1 March 2018) 

Compensation 
The aggregate compensation made to directors and other members of key management personnel of the consolidated entity 
is set out below: 

Short-term employee benefits 
Post-employment benefits 

Note 16. Remuneration of auditors 

Consolidated 

2018 
$ 

2017 
$ 

598,593   
48,179   

331,558  
39,278  

646,772   

370,836  

During the financial year the following fees were paid or payable for services provided by , the auditor of the company, and 
its network firms: 

Audit services - Rothsay Auditing 
Audit or review of the financial statements 

Audit services - Other firms 
Audit or review of the financial statements 

38 

Consolidated 

2018 
$ 

2017 
$ 

22,000   

23,500  

-    

20,000  

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
  
 
 
  
 
 
  
Viking Mines Limited 
Notes to the financial statements 
30 June 2018 

Note 17. Contingent assets 

The Company is expecting to receive USD 3 million in sales proceeds relating the June 2015 sale of Akoase gold project in 
Ghana. This is now overdue and the Company is still in the process of obtaining advice, including legal advice, regarding 
this outstanding payment. Although the money has not yet been received, the Company remains confident it will be received. 

Note 18. Commitments 

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 19. Related party transactions 

Parent entity 
Viking Mines Limited is the parent entity. 

Subsidiaries 
Interests in subsidiaries are set out in note 21. 

Key management personnel 
Disclosures  relating  to  key  management  personnel  are  set  out  in  note  15  and  the  remuneration  report  included  in  the 
directors' report. 

Transactions with related parties 

During the year, the company paid: 

* $28,043 to a company related to Raymond Whitten for legal services. 

* $5,000 to a company related to Raymond Whitten for travel services. 

* $60,000 to a company related to Michael Langoulant for fees relating to Mr Langoulant's professional services in subsidiary 
company Resolute Amansie Ltd. 

* $60,000 to a company related to Charles Thomas for general corporate, investor relations and project introduction services. 

Receivable from and payable to related parties 
The following balances are outstanding at the reporting date in relation to transactions with related parties: 

Current payables: 
Trade payables to other related party 

Loans to/from related parties 
There were no loans to or from related parties at the current and previous reporting date. 

Terms and conditions 
All transactions were made on normal commercial terms and conditions and at market rates. 

Consolidated 

2018 
$ 

2017 
$ 

9,302   

-   

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Viking Mines Limited 
Notes to the financial statements 
30 June 2018 

Note 20. Parent entity information 

Set out below is the supplementary information about the parent entity. 

Statement of profit or loss and other comprehensive income 

Profit/(Loss) after income tax 

Total comprehensive income 

Statement of financial position 

Total current assets 

Total assets 

Total current liabilities 

Total liabilities 

Equity 

Issued capital 
Share-based payments reserve 
Accumulated losses 

Total equity 

Parent 

2018 
$ 

2017 
$ 

628,781  

(3,130,160) 

628,781  

(3,130,160) 

Parent 

2018 
$ 

2017 
$ 

2,779,629   

493,403  

2,781,151   

2,291,348  

149,573   

288,551  

149,573   

288,551  

  22,537,072    22,537,072  
244,000  
(20,778,275) 

244,000   
(20,149,494)  

2,631,578   

2,002,797  

Guarantees entered into by the parent entity in relation to the debts of its subsidiaries 
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2018 and 30 June 2017. 

Contingent liabilities 
The parent entity had no contingent liabilities as at 30 June 2018 and 30 June 2017. 

Capital commitments - Property, plant and equipment 
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2018 and 30 June 2017. 

Significant accounting policies 
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 1, except 
for the following: 
● 
● 
● 

 Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity. 
 Investments in associates are accounted for at cost, less any impairment, in the parent entity. 
 Dividends received from subsidiaries are recognised as other income by the parent entity and its receipt may be an 
indicator of an impairment of the investment. 

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Viking Mines Limited 
Notes to the financial statements 
30 June 2018 

Note 21. Interests in subsidiaries 

The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance 
with the accounting policy described in note 1: 

Name 

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 

* 

 100% of rights to profits 

 Principal place of business / 
 Country of incorporation 

Ownership interest 
2017 
2018 
% 
% 

 Australia 
 Australia 
 Australia 
 Australia 
 Australia 
 Australia 
 Australia 
 Australia 
 Australia 
 Australia 
 Ghana 
 Ghana 
 Ghana 
 Ghana 

100.00%   
100.00%   
100.00%   
100.00%   
100.00%   
100.00%   
100.00%   
100.00%   
100.00%   
100.00%   
90.00%   
90.00%   
90.00%   
100.00%   

100.00%  
100.00%  
100.00%  
100.00%  
100.00%  
100.00%  
100.00%  
100.00%  
100.00%  
100.00%  
90.00%  
90.00%  
90.00%  
100.00%  

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. 

Note 22. Events after the reporting period 

No  matter  or  circumstance  has  arisen  since  30  June  2018  that  has  significantly  affected,  or  may  significantly  affect  the 
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial 
years. 

Note 23. Reconciliation of profit/(loss) after income tax to net cash used in operating activities 

Profit/(loss) after income tax expense for the year 

1,686,868   

(3,481,078) 

Consolidated 

2018 
$ 

2017 
$ 

Adjustments for: 
Foreign exchange differences 
Unwinding of the discount on provisions 
Impairment of project acquisition costs 
Proceeds from sale of mining properties 

Change in operating assets and liabilities: 

Decrease/(increase) in trade and other receivables 
Increase in trade and other payables 

Net cash used in operating activities 

(133,492)  
-    
-    
(2,783,800)  

62,408  
521,121  
2,250,000  
(375,244) 

4,505   
79,605   

(8,148) 
182,449  

(1,146,314)  

(848,492) 

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Viking Mines Limited 
Notes to the financial statements 
30 June 2018 

Note 24. Non-cash investing and financing activities 

There were no non-cash investing and financing activities during the year (2017: Nil) 

Note 25. Earnings per share 

Profit/(loss) after income tax attributable to the owners of Viking Mines Limited 

1,686,868   

(3,481,078) 

Consolidated 

2018 
$ 

2017 
$ 

Basic earnings per share 
Diluted earnings per share 

Cents 

Cents 

0.54   
0.54   

(1.21) 
(1.21) 

  Number 

  Number 

Weighted average number of ordinary shares used in calculating basic earnings per share 

313,717,856   

288,276,627  

Weighted average number of ordinary shares used in calculating diluted earnings per share   

313,717,856   

288,276,627  

The diluted loss per share is not reflected as the result is anti-dilutive. 

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Viking Mines Limited 
Directors' declaration 
30 June 2018 

In the directors' opinion: 

● 

● 

● 

● 

 the attached financial statements and notes  comply with the Corporations Act 2001, the Accounting Standards, the 
Corporations Regulations 2001 and other mandatory professional reporting requirements; 

 the attached financial statements and notes comply with International Financial Reporting Standards as issued by the 
International Accounting Standards Board as described in note 1 to the financial statements; 

 the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at 
30 June 2018 and of its performance for the financial year ended on that date; and 

 there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due 
and payable. 

The directors have been given the declarations required by section 295A of the Corporations Act 2001. 

Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001. 

On behalf of the directors 

___________________________ 

27 September 2018 

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Viking Mines Limited 
Shareholder information 
30 June 2018 

The shareholder information set out below was applicable as at 21 September 2018 

Distribution of equitable securities 
Analysis of number of equitable security holders by size of holding: 

  Number  
  of holders  
  of options  

  Number  
  of holders    
  of ordinary    ordinary  

over  

1 to 1,000 
1,001 to 5,000 
5,001 to 10,000 
10,001 to 100,000 
100,001 and over 

Holding less than a marketable parcel 

Equity security holders 

Twenty largest quoted equity security holders 
The names of the twenty largest security holders of quoted equity securities are listed below: 

BARBARY COAST INVESTMENTS PTY LTD 
GTT GLOBAL OPPORTUNITIES PTY LTD 
GREENLINE INVESTMENTS PTY LTD 
MURDOCH CAPITAL PTY LTD (GLOVAC SUPERFUND A/C) 
ALISSA BELLA PTY LTD (THE C&A TASSONE SUPER A/C) 
TORONA PTY LTD (ANYWHERE TRAVEL A/C) 
MOUNTS BAY INVESTMENTS PTY LTD (CALVER CAPITAL A/C) 
SYRACUSE CAPITAL PTY LTD (R TASSONE S/F A/C) 
SYRACUSE CAPITAL PTY LTD (THE ROCCO TASSONE S/F A/C) 
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 
MR JOHN WILLIAM GARDNER & MRS JANET LEIGH GARDNER (JOHN WILLIAM 
GARDNER SUPERANNUATION A/C) 
FERGUSON SUPERANNUATION PTY LTD (FERGUSON SUPERFUND A/C) 
RODBY HOLDINGS PTY LTD (SP TENG FAMILY A/C) 
MRS ANTHEA JOHNSTON 
NEWTON HOLDINGS PTY LTD (NEWTON BUILDING CO P/F A/C) 
MR FAWZI KASSAB 
MR BUYANTOGTOKH DASHDELEG 
MANSON GROUP PTY LIMITED (MANSON GROUP SUPER FUND A/C) 
MR MICHAEL ANTHONY DEL CASALE & MRS SHEREE LOUISE DEL CASALE (D C 
SUPERANNUATION A/C) 
RODBY HOLDINGS PTY LTD 

shares 

shares 

23   
22   
62   
217   
226   

550   

163   

- 
- 
- 
- 
1  

1  

- 

Ordinary shares 

  % of total  
shares 
issued 

  Number held  

32,710,675   
25,000,000   
12,000,000   
8,000,000   
7,636,016   
6,687,887   
6,000,000   
5,835,821   
5,164,179   
5,029,658   

5,000,000  
5,000,000   
4,593,814   
4,500,000   
4,325,570   
4,300,826   
4,132,358   
4,026,867   

3,886,466  
3,627,397   

10.43  
7.97  
3.83  
2.55  
2.43  
2.13  
1.91  
1.86  
1.65  
1.60  

1.59  
1.59  
1.46  
1.43  
1.38  
1.37  
1.32  
1.28  

1.24  
1.16  

157,457,534   

50.18  

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Viking Mines Limited 
Shareholder information 
30 June 2018 

Unquoted equity securities 

Unlisted options issued 7 April 2017, exercisable at $0.046 on or before 30 June 2020. 

  12,000,000   

1  

Substantial holders 
Substantial holders in the company are set out below: 

  Number 
  on issue 

  Number 
  of holders 

R Whitten 
GTT Global Opportunities Pty Ltd 
Jaytu Pty Ltd ATF (John William Gardner Superannuation Fund) 

Voting rights 
The voting rights attached to ordinary shares are set out below: 

Ordinary shares 

  % of total  
shares 
issued 

  Number held  

42,095,782   
28,000,000   
20,140,414   

13.42  
8.93  
6.42  

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. 

Tenement schedule 

Licence name,  
Licence type 

Akoase West,  
Prospecting licence 

Akoase East,  
Prospecting licence 

Akoase South East, 
Prospecting licence 

Location 

 Licence Holder/ JV 
Partners* 

Viking Mines Ownership 

 Southern Ghana 

 Resolute Amansie Ltd 

 Southern Ghana 

 Resolute Amansie Ltd 

 Southern Ghana 

 Resolute Amansie Ltd 

  100% (reducing to zero 
upon sale completion) 

  100% (reducing to zero 
upon sale completion) 

  100% (reducing to zero 
upon sale completion) 

West Star**,  
Prospecting licence 

 Southern Ghana 

 West Star Mining Compant 
Ltd / Resolute Amansie Ltd 

  100% hardrock only* 

Tumentu,  
Prospecting licence 
application 

Berkh Uul,  
Exploration licence 

Khonkhor Zag,  
Mining lease 

 Southern Ghana 

 Resolute Amansie Ltd 

  100% 

 Selenge province, Mongolia 

 BRX LLC 

  100% 

 Govi Altai province, Mongolia   Salkhit Altai LLC 

  100% 

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Viking Mines Limited 
Shareholder information 
30 June 2018 

Resolute Amansie Ltd is a 100% owned subsidiary of Viking Mines Ltd 

West Star Mining Company Ltd is a joint venture partner in the West Star gold project 

BRXL LLC is a 100% owned subsidiary of Viking Mines Ltd 

Salkhit Altai LLC is a 100% owned subsidiary of Viking Mines Ltd 

* Subject to revocation / renewal dispute with Minerals Commission  

49