Viking Mines Limited
ABN 38 126 200 280
Annual Report - 30 June 2019
Viking Mines Limited
30 June 2019
CONTENTS
Corporate directory
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
3
4
6
10
19
21
22
23
24
25
41
42
45
2
Viking Mines Limited
Corporate directory
30 June 2019
Directors
Raymond Laurence Whitten
Charles William Thomas
Michael Andrew Cox
Company secretary
Dean Jagger
Notice of annual general meeting
The details of the annual general meeting of Viking Mines Limited are:
Date of Meeting: 26 November 2019
Registered office and principal
place of business
Level 5, 126 Philip Street
Share register
Auditor
Solicitors
Sydney NSW 2000
Telephone: +61 2 8072 1400
Facsimile: +61 2 8072 1440
Website: www.vikingmines.com
Automic Pty Ltd
Level 5, 126 Philip Street
Sydney NSW 2000
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
Automic Legal Pty Ltd
Level 5, Philip Street
Sydney NSW 2000
Stock exchange listing
Viking Mines Limited shares are listed on the Australian Securities Exchange (ASX :
VKA)
3
Viking Mines Limited
Operations report
30 June 2019
OPERATIONS REPORT
During the year ended 30 June 2019, Viking Mines Limited (“Viking” or the “Company”) was actively focussed on progressing
work at the Tumentu Gold Project and progressing the Court proceedings against the purchaser and guarantors of the sale
contract relating to the Akoase Gold Project.
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 USD10 million, of which USD8.0 million was to be paid in cash.
At the date of this report Viking has been paid USD5 million in sales proceeds.
The remaining USD3 million was due in December 2017 and covered by a Guarantee of payment from BXC Ghana Ltd and
a personal guarantee from the Chairman. As announced to the market on 22 October 2018, the Company’s lawyers in Ghana
have filed and served proceedings against the purchaser and guarantors of the Akoase Gold Project. Since that time, the
matter has been proceeding through the court process in the High Court (Commercial Division) in Ghana. The Company is
focused on resolving this matter and the Company will ensure that the market is informed of any material information relating
to this matter as it progresses.
Tumentu Gold Project (Viking 100%)
As announced to the market on 26 April 2019, the Company was granted a prospecting licence for Tumentu from the Minerals
Commission on 25 April 2019.
Accordingly, the Company is proceeding with the two-year program developed by the Company, consisting of air-core (AC)
and reverse circulation (RC) drilling, soil geochemistry and ground based geophysics. A recent field inspection (April 2019)
by directors of the Company indicated the prospectivity of this area. A subsequent report commissioned by the Company
and prepared by Mostycons Ltd recommended a 50 hole air-core drilling program to test previously identified gold -in - soil
anomalies with grades of >200ppb Au along the Salman Shear Zone.
The Company is excited by the potential of this drilling campaign and has engaged a drilling contractor to commence drilling
works in the area, which as at the date of this report has been delayed due to poor weather conditions. The Company will
commence the drilling program when conditions improve and will provide the market with updates as the program progresses.
The Company has also received advice that the Minerals Commission Board in Ghana has approved a prospecting licence
application for Butre, which is located in the Ahanta West region of Ghana. The Company is currently awaiting approval on
the final application.
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.
4
Viking Mines Limited
Operations report
30 June 2019
Viking continues to seek resolution relating to changes to boundaries of protected areas affecting the Berkh Uul prospecting
license, introduced under Long Name Law in 2010. The Company has commenced action against the Mineral Resources and
Petroleum Authority of Mongolia in this regard (MRPAM). The Company has received a written judgement from the Supreme
Court in relation to this matter, which upheld the decision of the First Instance Administrative Court which rejected the claims
of the Company. The Company’s lawyers in Mongolia are in the process of submitting a request for compensation to MRPAM.
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.
In accordance with and consistent with the Board’s objectives, the Company has continued to engage with prospective buyers
in relation to the Mongolian assets.
Corporate
The Company has a strong cash position of $2.388 million as at 30 June 2019. In the 2019/2020 financial year, the Company
intends to commence drilling on the Tumentu gold project in Ghana when weather permits 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 the Company’s continuing association there.
The Company will continue to build a suite of advanced resource projects.
The Company will carefully asses all projects presented to it with a view to exploiting its strong cash position for the maximum
benefit of all shareholders.
5
Viking Mines Limited
Annual Mineral Resources Statement
30 June 2019
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 2019 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
1.2
1.2
1.3
1.5
220
217
194
156
Cut off (g/t Au)
Million tonnes
Au g/t
Oz Au (x 1,000)
6
Viking Mines Limited
Annual Mineral Resources Statement
30 June 2019
0.4
0.5
0.75
1.0
15.6
14.8
12.3
8.7
1.2
1.2
1.3
1.5
581
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
7
Viking Mines Limited
Annual Mineral Resources Statement
30 June 2019
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.
8
Viking Mines Limited
Annual Mineral Resources Statement
30 June 2019
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
statements.
9
Viking Mines Limited
Directors' report
30 June 2019
The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as
the 'consolidated entity') consisting of Viking Mines Limited (referred to hereafter as the 'company' or 'parent entity') and the
entities it controlled at the end of, or during, the year ended 30 June 2019.
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 Laurence Whitten
Charles William Thomas
Michael Andrew Cox
Executive Director and Chairman
Non-Executive Director
Non-Executive Director
Principal activities
The principal activity of the consolidated entity during the financial year 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 loss for the consolidated entity after providing for income tax amounted to $496,472 (30 June 2018: profit of $1,686,868).
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 2019 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 to engage in exploration activities on the prospecting licence at Tumentu recently granted by the
Minerals Commission. Preliminary work has been carried out including a geophysical report which indicated target areas. A
drilling contract has been let and work has commenced but has been postponed until the wet weather abates.
Litigation Ghana
The company is proceeding against the Purchaser of the Akoase project and the Guarantors seeking USD 3 Million together
with interest and costs. The matter is progressing in the High Court of Ghana (Commercial Division)
Berkh Uul Coat Project, Mongolia
The company continues to seek compensation relating to changes to boundaries of protected areas affecting the Berkh Uul
prospecting licence.
Khonkhor Zag Coal Project, Mongolia
The company is currently reviewing this project and are exploring options with regards to divesting this asset.
10
Viking Mines Limited
Directors' report
30 June 2019
Environmental regulation
The consolidated entity 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:
Experience and expertise:
Raymond Laurence Whitten
Executive Director and Chairman
Mr Whitten was appointed a director on 29 October 2014. Mr Whitten is an admitted
solicitor with over 45 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 Master 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).
Nil
Other current directorships:
Former directorships (last 3 years): Nil
Interests in shares:
Interests in options:
45,926,307
5,000,000
11
Viking Mines Limited
Directors' report
30 June 2019
Name:
Title:
Experience and expertise:
Charles William Thomas
Non-Executive Director
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 15 years 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 Chase Mining
Corporation Limited (ASX:CML).
Other current directorships:
Managing director of Marquee Resources Limited (ASX: MQR) since 2016
Non-executive director of Chase Mining Corporation Limited (ASX:CML) since 2018
Former directorships (last 3 years): Non-executive director of AVZ Minerals Ltd (ASX: AVZ )
Interests in shares:
Interests in options:
Name:
Title:
Experience and expertise:
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
5,000,000
Michael Andrew Cox
Non-Executive Director
Mr Cox holds both a Bachelor of Science (Geology) degree from the University of
Sydney and a Bachelor of Laws degree from University of Technology, Sydney. 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 Multi-E-Media Ltd.
Other current directorships:
Former directorships (last 3 years): Non-executive director of Syngas Limited (ASX: SYS)
Interests in shares:
Interests in options:
Nil
5,000,000
Non-executive Chairman of NSX Limited (ASX: NSX) since 2009
'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.
12
Viking Mines Limited
Directors' report
30 June 2019
Company secretary
Dean Jagger
Mr Jagger works in the company secretarial division of Automic Group, a company that offers Legal, Registry, Company
Secretarial, Governance, Finance and Insurance services. Mr Jagger provides company secretarial and corporate
compliance services to several listed public and private companies. Mr Jagger has 10 years' experience in the financial
services sector.
Meetings of directors
The number of meetings of the company's Board of Directors ('the Board') held during the year ended 30 June 2019, and
the number of meetings attended by each director were:
Raymond Whitten
Charles Thomas
Michael Cox
Held: represents the number of meetings held during the time the director held office.
Directors' meetings
held
attended
6
6
6
6
6
6
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 2019. 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 consolidated entity, directly or indirectly, including any director (whether executive or otherwise) of the company, and
includes all executives of the company and the consolidated entity.
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 information
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.
13
Viking Mines Limited
Directors' report
30 June 2019
The current remuneration policy adopted is that no element of any director/executive package be directly related to the
company’s financial performance. Indeed, there are no elements of any director or executive remuneration that are
dependent upon the satisfaction of any specific condition. The overall remuneration policy framework however is structured
in an endeavour to advance/create shareholder wealth.
Non-executive Directors
Fees and payments to non-executive directors reflect the demands which are made on, and the responsibilities of, the
directors. Non-executive directors’ fees and payments are reviewed annually by the Board and are intended to be in line with
the market.
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 consolidated entity for the year ended 30 June 2019 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 consolidated entity are the directors of the company and those executives that have
authority and responsibility for planning, directing and controlling the activities of the consolidated entity.
2019
Non-Executive Directors:
Michael Cox
Charles Thomas
Executive Directors:
Raymond Whitten
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
$
60,883
60,883
128,234
250,000
-
-
-
-
14
-
-
-
-
5,784
5,784
12,182
23,750
-
-
-
-
39,940
39,940
106,607
106,607
39,940
119,820
180,356
393,570
Viking Mines Limited
Directors' report
30 June 2019
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
-
-
-
-
-
-
-
-
-
-
-
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
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.
Employment contracts/Consultancy agreements
As at the date of this report, there are no current employment contracts/consultancy agreements with any of the directors.
Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details
of these agreements are as follows:
Name:
Title:
Agreement commenced:
Term of agreement:
Raymond Whitten
Executive Director and Chairman
2 October 2018
(a) Remuneration:
superannuation contribution and any fringe benefit tax payable;
fixed annual salary $165,000
including 9.5% employer
(b) Non-cash benefits: the Executive may also be eligible to receive an annual bonus
upon satisfaction of performance indicators to be agreed between the Board and the
Executive.
(c) Termination: the company and Mr Raymond Whitten may terminate the Executive
Director and Chairman Agreement without cause by giving the other party one month
notice.
15
Viking Mines Limited
Directors' report
30 June 2019
Share-based compensation
Options
The terms and conditions of each grant of options over ordinary shares affecting remuneration of directors and other key
management personnel in this financial year or future reporting years are as follows:
Grant date
Vesting date and
exercisable date
Expiry date
Exercise price at grant date
Fair value
per option
29 November 2018
06 Dec 2018
06 Dec 2021
$0.030
$0.008
Name
Number of
options
granted
Grant date
Vesting date and
exercisable date
Expiry date
Exercise price at grant date
Fair value
per option
Raymond Whitten
Charles Thomas
Michael Cox
5,000,000 29 Nov 2018
5,000,000 29 Nov 2018
5,000,000 29 Nov 2018
06 Dec 2018
06 Dec 2018
06 Dec 2018
06 Dec 2021
06 Dec 2021
06 Dec 2021
$0.030
$0.030
$0.030
$0.008
$0.008
$0.008
Options granted carry no dividend or voting rights.
Values of options over ordinary shares granted, exercised and lapsed for directors and other key management personnel as
part of compensation during the year ended 30 June 2019 are set out below:
Name
Raymond Whitten
Charles Thomas
Michael Cox
Value of
options
granted
during the
Value of
options
exercised
during the
Value of
options
lapsed
during the
year
$
year
$
year
$
Remuneration
consisting of
options
for the
year
%
39,940
39,940
39,940
-
-
-
-
-
-
37%
37%
22%
Additional information
The earnings of the consolidated entity for the five years to 30 June 2019 are summarised below:
2019
$
2018
$
2017
$
2016
$
2015
$
Profit/(loss) after income tax
(496,472)
1,686,868
(3,481,078)
(792,124)
(2,093,001)
2019
2018
2017
2016
2015
Share price at financial year end ($)
$0.010
$0.025
$0.012
$0.020
$0.015
Basic earnings per share (cents per share)
Diluted earnings per share (cents per share)
(0.16)
(0.16)
0.54
0.54
(1.21)
(1.21)
(0.30)
(0.30)
(1.00)
(1.00)
2019
2018
2017
2016
2015
16
Viking Mines Limited
Directors' report
30 June 2019
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
Michael Cox
45,926,307
9,000,000
-
54,926,307
-
-
-
-
-
-
-
-
- 45,926,307
-
9,000,000
-
-
- 54,926,307
Option holding
The number of options over ordinary 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:
Options over ordinary shares
Raymond Whitten
Charles Thomas
Michael Cox
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
-
5,000,000
-
5,000,000
5,000,000
-
- 15,000,000
-
-
-
-
-
5,000,000
-
5,000,000
5,000,000
-
- 15,000,000
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
29 November 2018
Expiry date
Exercise
price
Number
under option
Exercisable on or before 30 June 2020
Exercisable on or before 06 December 2021
$0.046
$0.030
12,000,000
15,000,000
27,000,000
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 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.
17
Viking Mines Limited
Directors' report
30 June 2019
During the financial year, the company has not paid a premium in respect of a contract to insure the auditor of the company
or any related entity.
Proceedings on behalf of the company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf
of the company, or to intervene in any proceedings to which the company is a party for the purpose of taking responsibility
on behalf of the company for all or part of those proceedings.
Non-audit services
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 Auditing, 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 2019.
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
___________________________
Raymond Whitten
Executive Director and Chairman
30 September 2019
18
Viking Mines Limited
Contents
30 June 2019
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 of Viking Mines Limited
Shareholder information
General information
21
22
23
24
25
41
42
45
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 consolidated entity'). 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 5, 126 Phillip 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 30 September 2019. 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 comprehensive income
For the year ended 30 June 2019
Revenue
Expenses
Audit fees
Consultancy costs
Employee benefits expense
Direct exploration and project evaluation
Foreign exchange loss
Share-based payments
Other expenses
Profit/(loss) before income tax expense
Note
Consolidated
2019
$
2018
$
4
122,838
2,789,859
(25,710)
(176,520)
(265,777)
-
110,174
(119,820)
(141,657)
(23,442)
(405,844)
(444,393)
(3,522)
133,491
-
(359,281)
(496,472)
1,686,868
Income tax expense
5
-
-
Profit/(loss) after income tax expense for the year attributable to the owners of
Viking Mines Limited
14
(496,472)
1,686,868
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
(45,904)
(508,531)
(45,904)
(508,531)
(542,376)
1,178,337
Cents
Cents
Basic earnings per share
Diluted earnings per share
27
27
(0.16)
(0.16)
0.54
0.54
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 2019
Assets
Current assets
Cash and cash equivalents
Other receivables
Prepayments
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
Employee benefits
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
2019
$
2018
$
6
7
8
9
2,388,027
11,347
1,187
2,400,561
3,090,051
20,145
-
3,110,196
-
474,917
474,917
1,522
277,289
278,811
2,875,478
3,389,007
10
11
108,207
8,693
116,900
207,873
-
207,873
116,900
207,873
2,758,578
3,181,134
12
13
14
22,537,072 22,537,072
(481,493)
(18,133,220)
3,922,359
(741,225)
(407,577)
(18,629,692)
3,499,803
(741,225)
2,758,578
3,181,134
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 2019
Consolidated
Issued
capital
$
Reserves
$
Accumulated
losses
$
Non-
controlling
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
Consolidated
Issued
capital
$
Reserves
$
Accumulated
losses
$
Non-
controlling
interest
$
Total equity
$
Balance at 1 July 2018
22,537,072
(481,493)
(18,133,220)
(741,225)
3,181,134
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:
Share-based payments
-
-
-
-
(496,472)
(45,904)
-
(45,904)
(496,472)
-
-
-
(496,472)
(45,904)
(542,376)
-
119,820
-
-
119,820
Balance at 30 June 2019
22,537,072
(407,577)
(18,629,692)
(741,225)
2,758,578
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 2019
Cash flows from operating activities
Payments to suppliers and employees
Interest received
Note
Consolidated
2019
$
2018
$
(914,578)
53,907
(1,152,123)
5,809
Net cash used in operating activities
25
(860,671)
(1,146,314)
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
Net cash from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
9
-
(22,371)
70,844
(1,522)
(104,315)
2,509,552
48,473
2,403,715
-
-
(812,198)
3,090,051
110,174
1,257,401
2,063,442
(230,792)
Cash and cash equivalents at the end of the financial year
6
2,388,027
3,090,051
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 2019
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
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial
performance or position of the consolidated entity.
The following Accounting Standards and Interpretations are most relevant to the consolidated entity:
AASB 9 Financial Instruments
The consolidated entity has adopted AASB 9 Financial Instruments from 1 July 2018, which replaced AASB 139 Financial
Instruments: Recognition and Measurement. As a result, the consolidated entity has changed its accounting policy for the
recognition and measurement of receivables. The adoption of AASB 9 has not had a material impact on the consolidated
entity’s financial statements.
AASB 15 Revenue from Contracts with Customers
The consolidated entity has adopted AASB 15 Revenue from Contracts with Customers from 1 July 2018, which replaced
AASB 118 Revenue. AASB 15 establishes a principles-based approach for revenue recognition whereby revenue is
recognised when performance obligations are satisfied. The standard applies a five-step approach to the timing of revenue
recognition and is applicable to all contracts with customers, expect those in the scope of other standards. As a result, the
consolidated entity has changed its accounting policy for revenue recognition. The adoption of AASB 15 has not had a
material impact on the consolidated entity’s financial statements.
Accounting Standards issued but not yet adopted
AASB 16 Leases
The consolidated entity will adopt AASB 16 from 1 July 2019. The standard replaces AASB 117 'Leases' and for lessees
eliminates the classifications of operating leases and finance leases. Except for short-term leases and leases of low-value
assets, right-of-use assets and corresponding lease liabilities are recognised in the statement of financial position. Straight-
line operating lease expense recognition is replaced with a depreciation charge for the right-of-use assets (included in
operating costs) and an interest expense on the recognised lease liabilities (included in finance costs). In the earlier periods
of the lease, the expenses associated with the lease under AASB 16 will be higher when compared to lease expenses under
AASB 117. For classification within the statement of cash flows, the interest portion is disclosed in operating activities and
the principal portion of the lease payments are separately disclosed in financing activities. For lessor accounting, the standard
does not substantially change how a lessor accounts for leases. Management has completed an assessment by reviewing
all leases. Based on the work performed to date the findings indicate that the application of AASB 16 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.
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 26 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 financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other
comprehensive income, investment properties, certain classes of property, plant and equipment and derivative financial
instruments.
25
Viking Mines Limited
Notes to the financial statements
30 June 2019
Note 1. Significant accounting policies (continued)
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 22.
Basis of consolidation
The consolidated financial statements comprise the financial statements of Viking Mines Limited and its controlled entities
as at 30 June (the consolidated entity).
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 intercompany transactions have been eliminated in full. Controlled entities are fully
consolidated from the date on which control is transferred to the company and cease to be consolidated from the date on
which control is transferred out of the company. 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.
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 company 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.
26
Viking Mines Limited
Notes to the financial statements
30 June 2019
Note 1. Significant accounting policies (continued)
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 allowance for expected credit losses.
27
Viking Mines Limited
Notes to the financial statements
30 June 2019
Note 1. Significant accounting policies (continued)
Impairment of assets
The consolidated entity 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 consolidated entity 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 consolidated entity prior to the end of the financial period that are unpaid and arise when the consolidated entity
becomes obliged to make future payments in respect of the purchase of these goods and services.
Provisions
Where applicable, provisions are recognised when the consolidated entity 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 consolidated entity 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
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be
settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities
are settled.
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.
28
Viking Mines Limited
Notes to the financial statements
30 June 2019
Note 1. Significant accounting policies (continued)
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.
Share-based payment transactions
Equity settled transactions
The consolidated entity provides benefits to employees and consultants of the consolidated entity 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 consolidated entity’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.
29
Viking Mines Limited
Notes to the financial statements
30 June 2019
Note 1. Significant accounting policies (continued)
Exploration and evaluation expenditure
Exploration costs are expensed as incurred except for costs relating to Ghana operations. The costs relating to the Ghana
operations are capitalised from 1 July 2018 as the Ghana operations are now considered to be active exploration activities.
In 30 June 2018 and previous years, the Ghana exploration costs were 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.
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 consolidated entity'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 consolidated entity has adopted AASB 8 Operating Segments which requires operating segments to be identified on the
basis of internal reports about components of the consolidated entity 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 consolidated
entity are determined upon analysis of these internal reports. During the period the consolidated entity 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 revenue
Proceeds on sale of mining properties
Revenue
30
Consolidated
2019
$
2018
$
51,994
70,844
5,809
2,784,050
122,838
2,789,859
Viking Mines Limited
Notes to the financial statements
30 June 2019
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%
Prior year tax losses not recognised now recouped
Income tax expense
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
2019
$
2018
$
(496,472)
1,686,868
(136,530)
463,889
136,530
(463,889)
-
-
Consolidated
2019
$
2018
$
2,785,069
-
2,844,588
30,058
2,785,069
2,874,646
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
Consolidated
2019
$
2018
$
537,048
1,850,979
591,661
2,498,390
2,388,027
3,090,051
Consolidated
2019
$
2018
$
2,305
1,913
7,129
2,638
-
17,507
11,347
20,145
Cash at bank
Short term deposits
Note 7. Current assets - Other receivables
Other receivables
Interest receivable
GST
31
Viking Mines Limited
Notes to the financial statements
30 June 2019
Note 8. Current assets - prepayments
Prepayments
Note 9. Non-current assets - exploration and evaluation
Exploration and Evaluation Capitalised Asset
Less: Accumulated amortisation E&E Asset
Consolidated
2019
$
2018
$
1,187
-
Consolidated
2019
$
2018
$
2,724,917
(2,250,000)
2,527,289
(2,250,000)
474,917
277,289
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 2017
Additions
Balance at 30 June 2018
Additions
Balance at 30 June 2019
$
250,000
27,289
277,289
197,628
474,917
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, additional investment in Khonkhor Zag project, and Ghana
costs capitalised.
The consolidated entity 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 consolidated entity's coal tenements in Mongolia. The consolidated entity had been unable to advance development of
its main coal tenement asset, Berkh Uul due to post-acquisition government determinations. As a result, the consolidated
entity had written down these assets to a carrying value of $250,000.
Note 10. Current liabilities - trade and other payables
Trade payables
Other payables
32
Consolidated
2019
$
2018
$
21,976
86,231
112,501
95,372
108,207
207,873
Viking Mines Limited
Notes to the financial statements
30 June 2019
Note 11. Current liabilities - employee benefits
Annual leave provision
Note 12. Equity - issued capital
Consolidated
2019
$
2018
$
8,693
-
Consolidated
2019
Shares
2018
Shares
2019
$
2018
$
Ordinary shares - fully paid
313,717,856
313,717,856 22,537,072 22,537,072
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.
Movements in unlisted options exercisable at $0.03 on or before 06 December 2021
Details
Balance
Balance
Options issued to directors
Balance
Date
1 July 2017
30 June 2018
06 December 2018
Number of
options
$
12,000,000
12,000,000
15,000,000
30 June 2019
27,000,000
-
-
-
-
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.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
There is no current on-market share buy-back.
Capital risk management
The consolidated entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so that
it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to
reduce the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated
as total borrowings less cash and cash equivalents.
In order to maintain or adjust the capital structure, the consolidated entity may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The consolidated entity would look to raise capital when an opportunity to invest in a business or company was seen as
value adding relative to the current company's share price at the time of the investment. The consolidated entity is not actively
pursuing additional investments in the short term as it continues to integrate and grow its existing businesses in order to
maximise synergies.
33
Viking Mines Limited
Notes to the financial statements
30 June 2019
Note 13. Equity - reserves
Foreign currency reserve
Options reserve
Consolidated
2019
$
2018
$
(771,397)
363,820
(725,493)
244,000
(407,577)
(481,493)
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.
Options reserve
The reserve is used to recognise the value of equity benefits provided to employees, directors and other parties as part of
their remuneration and compensation for services.
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 2017
Foreign currency translation
Balance at 30 June 2018
Foreign currency translation
Options issued to Directors
Balance at 30 June 2019
Note 14. 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 15. Equity - dividends
Foreign
currency
reserve
$
Options
reserve
$
Total
$
(216,962)
(508,531)
244,000
-
27,038
(508,531)
(725,493)
(45,904)
-
244,000
-
119,820
(481,493)
(45,904)
119,820
(771,397)
363,820
(407,577)
Consolidated
2019
$
2018
$
(18,133,220)
(496,472)
(19,820,088)
1,686,868
(18,629,692)
(18,133,220)
There were no dividends paid, recommended or declared during the current or previous financial year.
34
Viking Mines Limited
Notes to the financial statements
30 June 2019
Note 16. 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.
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 consolidated entity 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 has adopted a lifetime expected loss allowance in estimating expected credit losses to trade
receivables through the use of a provisions matrix using fixed rates of credit loss provisioning. These provisions are
considered representative across all customers of the consolidated entity based on recent sales experience, historical
collection rates and forward-looking information that is available.
The consolidated entity deemed its credit risk to be minimal as its financial assets are mainly cash held at financial institutions.
Generally, trade receivables are written off when there is no reasonable expectation of recovery. Indicators of this include
the failure of a debtor to engage in a repayment plan, no active enforcement activity and a failure to make contractual
payments for a period greater than 1 year.
Liquidity risk
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.
35
Viking Mines Limited
Notes to the financial statements
30 June 2019
Note 16. Financial instruments (continued)
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 - 2019
Non-derivatives
Non-interest bearing
Trade payables
Other payables
Total non-derivatives
Consolidated - 2018
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
$
-
-
21,976
86,231
108,207
-
-
-
-
-
-
-
-
-
21,976
86,231
108,207
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
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 17. Key management personnel disclosures
Directors
The following persons were directors of Viking Mines Limited during the financial year:
Raymond Whitten
Charles William Thomas
Michael Andrew Cox
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
Share-based payments
36
Consolidated
2019
$
2018
$
250,000
23,750
119,820
598,593
48,179
-
393,570
646,772
Viking Mines Limited
Notes to the financial statements
30 June 2019
Note 18. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by , the auditor of the company:
Audit services - Rothsay Auditing
Audit or review of the financial statements
Note 19. Contingent assets
Consolidated
2019
$
2018
$
23,000
22,000
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 has commenced legal proceedings against the purchaser, regarding this
outstanding payment. Although the money has not yet been received, the company remains confident it will be received.
Note 20. 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 21. Related party transactions
Parent entity
Viking Mines Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 23.
Key management personnel
Disclosures relating to key management personnel are set out in note 17 and the remuneration report included in the
directors' report.
Transactions with related parties
During the year, the company paid:
* $10,000 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.
37
Consolidated
2019
$
2018
$
-
9,302
Viking Mines Limited
Notes to the financial statements
30 June 2019
Note 21. Related party transactions (continued)
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
Note 22. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Loss after income tax
Total comprehensive income
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Options reserve
Accumulated losses
Total equity
Parent
2019
$
2018
$
(480,287)
(808,979)
(480,287)
(808,979)
Parent
2019
$
2018
$
2,107,203
2,779,629
13,636,653 14,071,029
55,664
129,573
55,664
129,573
22,537,072 22,537,072
244,000
(8,839,616)
363,820
(9,319,903)
13,580,989 13,941,456
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 2019 and 30 June 2018.
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2019 and 30 June 2018.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2019 and 30 June 2018.
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.
38
Viking Mines Limited
Notes to the financial statements
30 June 2019
Note 23. 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*
Obenmase Gold Mines Ltd*
Resolute Amansie Ltd*
Kiwi Goldfields Ltd
*
100% of rights to profits
Principal place of business /
Country of incorporation
Ownership interest
2018
2019
%
%
Australia
Australia
Australia
Mongolia
Mongolia
Mongolia
Mongolia
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 24. Events after the reporting period
No matter or circumstance has arisen since 30 June 2019 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 25. Reconciliation of profit/(loss) after income tax to net cash used in operating activities
Profit/(loss) after income tax expense for the year
Adjustments for:
Depreciation and amortisation
Share-based payments
Foreign exchange differences
Proceeds from sale of mining properties
Change in operating assets and liabilities:
Decrease in other receivables
Increase/(decrease) in trade and other payables
Net cash used in operating activities
39
Consolidated
2019
$
2018
$
(496,472)
1,686,868
1,522
119,820
(110,174)
(70,844)
-
-
(133,492)
(2,783,800)
7,611
(312,134)
4,505
79,605
(860,671)
(1,146,314)
Viking Mines Limited
Notes to the financial statements
30 June 2019
Note 26. Non-cash investing and financing activities
There were no non-cash investing and financing activities during the year (2018: Nil)
Note 27. Earnings per share
Profit/(loss) after income tax attributable to the owners of Viking Mines Limited
(496,472)
1,686,868
Consolidated
2019
$
2018
$
Basic earnings per share
Diluted earnings per share
Cents
Cents
(0.16)
(0.16)
0.54
0.54
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
313,717,856
313,717,856
Weighted average number of ordinary shares used in calculating diluted earnings per share
313,717,856
313,717,856
The diluted loss per share is not reflected as the result is anti-dilutive.
40
Viking Mines Limited
Directors' declaration
30 June 2019
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 2019 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
___________________________
Raymond Whitten
Executive Chairman
30 September 2019
41
Viking Mines Limited
Shareholder information
30 June 2019
The shareholder information set out below was applicable as at 13 September 2019.
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:
shares
shares
25
23
55
202
207
512
285
-
-
-
-
4
4
-
BARBARY COAST INVESTMENTS PTY LTD
GTT GLOBAL OPPORTUNITIES PTY LTD
SYRACUSE CAPITAL PTY LTD (THE ROCCO TASSONE S/F A/C)
GREENLINE INVESTMENTS PTY LTD
COSIMO TASSONE
MURDOCH CAPITAL PTY LTD (GLOVAC SUPERFUND A/C)
FERGUSON SUPERANNUATION PTY LTD (FERGUSON SUPERFUND A/C)
TORONA PTY LTD (ANYWHERE TRAVEL A/C)
MOUNTS BAY INVESTMENTS PTY LTD (CALVER CAPITAL A/C)
MR JOHN WILLIAM GARDNER & MRS JANET LEIGH GARDNER (JOHN WILLIAM
GARDNER SUPERANNUATION A/C)
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
RODBY HOLDINGS PTY LTD (SP TENG FAMILY A/C)
NEWTON HOLDINGS PTY LTD (NEWTON BUILDING CO P/F A/C)
MR FAWZI KASSAB
MANSON GROUP PTY LIMITED (MANSON GROUP SUPER FUND A/C)
MRS ANTHEA JOHNSTON
MR MICHAEL ANTHONY DEL CASALE & MRS SHEREE LOUISE DEL CASALE (D C
SUPERANNUATION A/C)
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD (IB AU NOMS RETAILCLIENT DRP)
RODBY HOLDINGS PTY LTD
45
Ordinary shares
% of total
shares
issued
Number held
32,710,675
25,000,000
14,890,334
12,000,000
11,170,402
8,000,000
7,400,000
6,687,887
6,000,000
5,000,000
4,704,658
4,593,814
4,325,570
4,300,826
4,026,867
4,000,000
3,886,466
3,804,235
3,661,630
3,627,397
10.43
7.97
4.75
3.83
3.56
2.55
2.36
2.13
1.91
1.59
1.50
1.46
1.38
1.37
1.28
1.28
1.24
1.21
1.17
1.16
169,790,761
54.13
Viking Mines Limited
Shareholder information
30 June 2019
Twenty largest unquoted equity security holders
The names of the twenty largest security holders of unquoted equity securities are listed below:
DJ CARMICHAEL PTY LTD
CHAOXS PTY LTD
MOUNTS BAY INVESTMENTS PTY LTD
BARBARY COAST INVESTMENTS PTY LTD
Unquoted equity securities
Options over ordinary
shares
% of total
options
issued
Number held
12,000,000
5,000,000
5,000,000
5,000,000
44.44
18.52
18.52
18.52
27,000,000
100.00
Number
on issue
Number
of holders
Unlisted options issued 7 April 2017, exercisable at $0.046 on or before 30 June 2020
Unlisted options issued 6 December 2018, exercisable at $0.03 on or before 06 December
2021
12,000,000
15,000,000
1
3
The following person holds 20% or more of unquoted equity securities:
Name
Class
DJ CARMICHAEL PTY LTD
Substantial holders
Substantial holders in the company are set out below:
RAY WHITTEN
GTT GLOBAL OPPORTUNITIES PTY LTD
DJ CARMICHAEL PTY LTD
CHAOXS PTY LTD
MOUNTS BAY INVESTMENTS PTY LTD (CALVER CAPITAL A/C)
BARBARY COAST INVESTMENTS PTY LTD
Voting rights
The voting rights attached to ordinary shares are set out below:
Number held
12,000,000
Ordinary shares
% of total
shares
issued
Number held
45,926,307
25,000,000
14.64
7.97
Options over ordinary
shares
% of total
options
issued
Number held
12,000,000
5,000,000
5,000,000
5,000,000
44.44
18.52
18.52
18.52
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.
46
Viking Mines Limited
Shareholder information
30 June 2019
Tenement schedule
Licence name, Licence type Location
Licence Holder / JV Partners* Viking Mines Ownership
Akoase West,
Prospecting licence
Akoase East,
Prospecting licence
Akoase South East,
Prospecting licence
West Star**,
Prospecting licence
Tumentu,
Prospecting licence
application
Berkh Uul,
Exploration licence
Khonkhor Zag,
Mining licence
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)
Southern Ghana
Southern Ghana
West Star Mining Company
Ltd/
Resolute Amansie Ltd
Resolute Amansie Ltd
100% hardrock only*
100%
Selenge province, Mongolia
BRX LLC
100%
Govi Altai province, Mongolia Salkhit Altai LLC
100%
Resolute Amansie Ltd is a 100% owned subsidiary of Viking Mines Ltd
BRXL LLC is a 100% owned subsidiary of Viking Mines Ltd
Salkhit Altai LLC is a 100% owned subsidiary of Viking Mines Ltd
47