Viking Mines Limited
ABN 38 126 200 280
Annual Report - 30 June 2020
Viking Mines Limited
Corporate directory
30 June 2020
Directors
Raymond Whitten AM
Charles Thomas
Michael 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: 23 November 2020
Last day to receive director nominations: 12 October 2020
Registered office and principal
place of business
Level 5, 126 Philip Street
Sydney NSW 2000
Telephone: +61 2 8072 1400
Facsimile: +61 2 8072 1440
Website: www.vikingmines.com
Share register
Auditor
Solicitors
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)
Website
www.vikingmines.com
Corporate Governance Statement
The Company's Corporate Governance Statement can be found on the company's
website:
www.vikingmines.com/investor-centre/corporate-governance/
1
Viking Mines Limited
Operations report
30 June 2020
OPERATIONS REPORT
During the year ended 30 June 2020, 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 Akoase Resources Limited, BXC Company Ghana Limited and Cheng Yi. Since that time, the matter has been
proceeding through the court process in the High Court (Commercial Division) in Ghana.
The Company’s lawyers in Ghana have advised that the parties are due back in Court on 19 November 2020 for a case
management conference, where the Court will give directions as to the actual conduct of the trial, including fixing a date for
when trial is to commence.
The Company will provide further information in relation to this matter as the proceedings progress.
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.
During the quarter ended 31 March 2020, the Company completed Aircore Drilling at Tumentu. 35 holes were drilled
totalling 1234.0m to an average depth of 34m.
On 9 April 2020, the Company released the drilling results for the program. The Board continues to consider whether future
work will be undertaken on the prospect.
Butre Gold Project (Viking 100%)
During the quarter ended 31 March 2020, the Company received confirmation the Minerals Commission of Ghana had
granted the prospecting licence for Butre. Butre is located in the Ahanta West region of Ghana. No on-groundwork was
undertaken on the project during the financial year ended 30 June 2020.
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.
2
Viking Mines Limited
Operations report
30 June 2020
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. In the quarter ending 30 June 2020, the First Instance Administrative Court of the Capital City
resolved to open an administrative case against MRPAM and Government.
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 $1.4 million as at 30 June 2020.
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.
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.
3
Viking Mines Limited
Operations report
30 June 2020
ANNUAL MINERAL RESOURCES STATEMENT
The Mineral Resources statement for the Company, as at 30 June 2020 is summarised below.
Tumentu Project, southern Ghana, Viking 100%
An air core and reverse circulation drilling program for the Tumentu prospect was conducted in January 2020, with the
drilling results released to the ASX on 9 April 2020. The program of thirty-five (35) holes totaling 1234.0m to an average
depth of 34m, was to test previous soil sampling results. Drill hole location and orientation data are shown in Table 1 and
drill sample assays above detection limit (0.01ppmAu) are displayed in Table 2. The results were disappointing with some
holes encountered patchy mineralization in places. Assays of 21 holes reported low grade intercepts of >0.02g/t Au. Only
four holes assayed +0.03 g/t Au with narrow zones of mineralization.
HOLE ID
TUAC001
TUAC002
TUAC003
TUAC004
TUAC005
TUAC006
TUAC007
TUAC008
TUAC009
TUAC010
TUAC011
TUAC012
TUAC013
TUAC014
TUAC015
TUAC016
TUAC017
TUAC018
TUAC019
TUAC020
TUAC021
TUAC022
TUAC023A
TUAC023
TUAC024
TUAC025
TUAC026
TUAC027
TUAC028
TUAC029
TUAC030
TUAC031
TUAC032
TUAC033
TUAC034
TUAC035
Table 1 Tumentu - Drill hole location and orientation data
EASTINGS
NORTHINGS DEPTH_M
Azimult
589630
589550
589700
589500
589400
589350
589250
589200
589150
588647
588903
588766
588855
588720
588751
588850
588954
589556
589820
590002
590196
590659
589709
589703
589750
589805
589954
590053
590452
590703
590493
589854
589720
589934
589862
589800
577195
577200
576855
576907
576800
576800
576805
576800
576800
576800
576800
576805
576800
577165
577193
577239
577200
575995
576018
576002
575578
576026
574808
574802
575000
575000
575202
575200
575604
575598
574814
574505
574388
573997
573992
574000
4
30
31
34
37
40
37
34
34
34
34
36
34
38
40
30
25
55
50
30
31
40
37
17
45
39
34
37
31
49
25
30
28
30
25
22
31
95
95
95
95
95
95
95
95
95
95
95
95
95
95
95
95
95
95
95
95
95
95
95
95
95
95
95
95
95
95
95
95
95
95
95
95
Dip
-50
-50
-50
-50
-50
-50
-55
-55
-55
-50
-50
-55
-55
-55
-50
-55
-50
-55
-50
-50
-55
-50
-55
-55
-50
-50
-50
-50
-50
-55
-50
-50
-50
-50
-50
-50
Viking Mines Limited
Operations report
30 June 2020
Drill hole Information
Mineralized Intercepts
Hole ID
Easting
Northing
RL
dip/azimuth
hole
depth
(m)
from
(m)
to
(m)
intersection
width (m)
grade
(g/t Au)
oxidation
Comment
TUAC009
589150
576800
38
-0.5789474
34
25
26
TUAC010
588647
576800
44
-0.5263158
34
22
24
30
23
25
31
TUAC012
588766
576805
15
-0.5789474
34
0
4
TUAC013
588855
576800
14
-0.5789474
38
0
14
14
17
TUAC015
588751
577193
14
-0.5263158
30
TUAC016
588850
577239
14
-0.5789474
25
TUAC018
589556
575995
19
-0.5789474
50
TUAC020
590002
576002
20
-0.5263158
31
TUAC021
590196
575578
21
-0.5789474
40
TUAC022
590659
576026
34
-0.5263158
37
TUAC023
589703
574802
29
-0.5789474
45
TUAC024
589750
575000
41
-0.5263158
39
0
0
8
0
8
28
8
26
37
4
10
15
0
3
0
12
15
2
8
9
8
10
31
14
27
40
8
11
34
2
6
6
14
19
5
1
1
1
1
4
14
3
2
8
1
8
2
3
6
1
3
4
1
19
2
3
6
2
4
0.41
fresh
0.02
0.02
0.02
fresh
fresh
fresh
0.05
oxidized
Composite
0.03
0.02
oxidized
oxidized
Composite
0.39
oxidized
Composite
0.02
0.02
oxidized
oxidized
Composite
0.03
oxidized
Composite
0.04
0.02
0.03
0.02
0.02
0.02
0.02
0.02
0.56
0.02
0.04
0.03
0.03
oxidized
Composite
fresh
oxidized
Composite
fresh
fresh
oxidized
Composite
fresh
fresh
oxidized
oxidized
oxidized
oxidized
fresh
Composite
Composite
Composite
Viking Mines Limited
Operations report
30 June 2020
Drill hole Information
Mineralized Intercepts
TUAC025
589805
575000
34
-0.5263158
34
TUAC026
589954
575202
54
-0.5263158
37
TUAC027
590053
575200
39
-0.5263158
31
TUAC028
590452
575604
27
-0.5263158
49
TUAC029
590703
575598
28
-0.5789474
25
TUAC030
590493
574814
35
-0.5263158
30
TUAC031
589854
574505
19
-0.5263158
28
TUAC033
589934
573997
17
-0.5263158
25
TUAC034
589862
573992
21
-0.5263158
22
TUAC035
589800
574000
22
-0.5263158
31
GPS Cordinates
RL Estimate
3
1
6
4
1
1
5
3
1
2
1
1
1
1
6
1
1
2
1
2
1
1
2
1
1
2
1
1
14
33
8
14
20
24
32
19
27
16
46
8
16
24
14
23
27
11
20
14
21
23
4
13
17
12
18
28
17
34
14
18
21
25
37
22
28
18
47
9
17
25
16
24
28
13
21
16
22
24
6
14
18
14
19
29
6
0.03
0.02
0.04
0.06
0.02
0.07
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.32
0.12
0.02
0.03
0.02
0.03
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
fresh
fresh
oxidized
Composite
fresh
fresh
fresh
fresh
fresh
fresh
fresh
fresh
oxidized
fresh
fresh
fresh
fresh
fresh
fresh
fresh
fresh
fresh
fresh
oxidized
Composite
fresh
fresh
oxidized
fresh
fresh
Viking Mines Limited
Operations report
30 June 2020
Exploration information for the Tumentu Drilling results detailed above is based upon work reviewed by Mr Gregory Hall who
is a Chartered Professional of Australasian Institute of Mining and Metallurgy (CP-IMM) (member number 105489) and
undertaken by Moses Dowuona an employee of Resolute Amansie Limited which is 100% owned subsidiary of Viking. Mr
Gregory Hall has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration
and to the activity which he is undertaking to qualify as a ‘Competent Person’ as defined in the 2012 Edition of the
‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code). Mr Gregory
Hall is an employee of Golden Phoenix International Pty Ltd and consents to the inclusion in the report of the matters based
on their information in the form and context in which it appears.
The Company confirms that all material assumptions and technical parameters underpinning the estimates in the market
announcement of 9 April 2020 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.
Aside from the information set out above in relation to Tumentu, there has been no change to the Company’s mineral
resource holdings compared to the previous financial year.
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
220
217
194
156
1.2
1.2
1.3
1.5
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Viking Mines Limited
Operations report
30 June 2020
Cut off (g/t Au)
Million tonnes
Au g/t
Oz Au (x 1,000)
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.
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.
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
Measured
Indicated
Inferred
Total
Open Cut
1
2
4.4
2.6
3.5
0.3
7.9
3
_
_
8
Viking Mines Limited
Operations report
30 June 2020
OC subtotal
1
2
UG subtotal
Underground
Grand Total
_
_
_
_
_
7
8.2
6.2
14.4
21.4
3.9
8.3
4.8
13.1
16.9
10.9
16.5
10.9
27.4
38.3
Sum of columns may not equal the total due to rounding
Table 3: Berkh Uul JORC (2012) Coal Resource Quality
Resource
type
category
Seam
Open Cut
Ind
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.
9
Viking Mines Limited
Operations report
30 June 2020
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.
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.
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
the ASX Announcement dated 9 April 2020 for the Tumentu Drilling Results, 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.
10
Viking Mines Limited
Directors' report
30 June 2020
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 2020.
Directors
The following persons were directors of Viking Mines Limited during the whole of the financial year and up to the date of
this report, unless otherwise stated:
Raymond Whitten AM
Charles Thomas
Michael 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 $710,959 (30 June 2019: $496,472).
With the onset of the COVID-19 crisis in late March, and in response to the global economic uncertainty caused by the
pandemic, the company implemented measures to maintain low operational expenditure and reduce costs where possible.
These measures have assisted in mitigating the impact of COVID-19 on the company’s activities.
COVID-19 has reduced the planned activities for the Company’s operations in Ghana and has impacted the timing of being
able to adequately assess the current projects in Ghana.
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 2020 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 continues to assess the results of the drilling program completed, and will consider if any when and further
work will be completed on the project.
Butre Gold Project, Ghana
The company is assessing if any when and work will be completed on the project.
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.
11
Viking Mines Limited
Directors' report
30 June 2020
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 Whitten AM
Executive Director and Chairman
Mr Whitten was appointed a director on 29 October 2014. Mr Whitten is an admitted
solicitor with over 48 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).
Mr Whitten was appointed as a Member of the Order of Australia on 8 June 2020 for
significant service to the law, particularly to legal reform and consumer protection.
Other current directorships:
Nil
Former directorships (last 3 years): Nil
Interests in shares:
Interests in options:
45,926,307
5,000,000
12
Viking Mines Limited
Directors' report
30 June 2020
Name:
Title:
Experience and expertise:
Charles 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:LBY), Force Commodities Limited
(ASX:AVZ), Liberty Resources Ltd
(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 Executive
Chairman of Marquee Resources Limited (ASX:MQR) and Non-executive director of
Chase Mining Corporation Limited (ASX:CML).
Other current directorships:
Executive Chairman 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): Nil
Interests in shares:
Interests in options:
9,000,000
5,000,000
Name:
Title:
Experience and expertise:
Michael 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)
Nil
Interests in shares:
Interests in options:
Non-executive Chairman of NSX Limited (ASX:NSX)
Nil
5,000,000
'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all
other types of entities, unless otherwise stated.
'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and
excludes directorships of all other types of entities, unless otherwise stated.
Company secretary
Dean Jagger
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.
13
Viking Mines Limited
Directors' report
30 June 2020
Meetings of directors
The number of meetings of the company's Board of Directors ('the Board') held during the year ended 30 June 2020, and
the number of meetings attended by each director were:
Raymond Whitten AM
Charles Thomas
Michael Cox
Directors' meetings
held
attended
8
8
8
8
8
8
Held: represents the number of meetings held during the time the director held office.
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 2020. 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.
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.
14
Viking Mines Limited
Directors' report
30 June 2020
Directors’ fees
Non-executive directors receive a separate fixed fee for their services as directors. The current directors' fee pool is
$500,000 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
The key management personnel of the consolidated entity consisted of the following directors of Viking Mines Limited:
●
●
● Michael Cox
Raymond Whitten AM
Charles Thomas
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 2020 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.
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
Cash salary
and fees
$
Cash
bonus
$
Non-
monetary
$
Super-
annuation
$
Long
service
leave
$
Equity-
settled
$
68,583
60,883
164,370
293,836
-
-
-
-
-
-
-
-
5,784
5,784
14,315
25,883
-
-
-
-
Total
$
74,367
66,667
178,685
319,719
-
-
-
-
2020
Non-Executive Directors:
Michael Cox
Charles Thomas
Executive Directors:
Raymond Whitten AM
Raymond Whitten's 30 June 2020 remuneration includes an amount of $165,000 salary (including superannuation) plus an
amount of $13,685 to indicate the movement in his annual leave provision in accordance with the Corporations
Regulations.
15
Viking Mines Limited
Directors' report
30 June 2020
2019
Non-Executive Directors:
Michael Cox
Charles Thomas
Executive Directors:
Raymond Whitten AM
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
Cash salary
and fees
$
Cash
bonus
$
Non-
monetary
$
Super-
annuation
$
Long
service
leave
$
Equity-
settled
$
Total
$
60,883
60,883
128,234
250,000
-
-
-
-
-
-
-
-
5,784
5,784
12,182
23,750
-
-
-
-
39,940
39,940
106,607
106,607
39,940
119,820
180,356
393,570
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Name
Non-Executive Directors:
Michael Cox
Charles Thomas
Executive Directors:
Raymond Whitten AM
Fixed remuneration
2019
2020
At risk - STI
At risk - LTI
2020
2019
2020
2019
100%
100%
63%
63%
100%
78%
-
-
-
-
-
-
-
-
-
37%
37%
22%
Employment contracts/Consultancy agreements
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 AM
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.
16
Viking Mines Limited
Directors' report
30 June 2020
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
29 November 2018
06 Dec 2018
Expiry date
06 Dec 2021
Name
Number of
options
granted
Grant date
Vesting date and
exercisable date
Fair value
per option
Exercise price at grant date
$0.030
$0.008
Fair value
per option
Expiry date
Exercise price at grant date
Raymond Whitten AM
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.
Additional information
The earnings of the consolidated entity for the five years to 30 June 2020 are summarised below:
2020
$
2019
$
2018
$
2017
$
2016
$
Profit/(loss) after income tax
(710,959)
(496,472)
1,686,868
(3,481,078)
(792,124)
2020
2019
2018
2017
2016
Share price at financial year end ($)
$0.007
$0.010
$0.025
$0.012
$0.020
2020
2019
2018
2017
2016
Basic earnings per share (cents per share)
Diluted earnings per share (cents per share)
(0.23)
(0.23)
(0.16)
(0.16)
0.54
0.54
(1.21)
(1.21)
(0.30)
(0.30)
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:
Ordinary shares
Raymond Whitten
Charles Thomas
Michael Cox
Balance at
the start of
the year
Received
as part of
remuneration
Additions
Disposals/
other
Balance at
the end of
the year
45,926,307
9,000,000
-
54,926,307
-
-
-
-
-
-
-
-
-
-
-
-
45,926,307
9,000,000
-
54,926,307
17
Viking Mines Limited
Directors' report
30 June 2020
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
5,000,000
5,000,000
5,000,000
15,000,000
Granted
Exercised
-
-
-
-
Expired/
forfeited/
other
Balance at
the end of
the year
-
-
-
-
-
-
-
-
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
Expiry date
Exercise
price
Number
under option
29 November 2018
Exercisable on or before 6 December 2021
$0.030
15,000,000
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.
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 2020.
18
Viking Mines Limited
Directors' report
30 June 2020
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 AM
Executive Chairman
30 September 2020
19
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE
CORPORATIONS ACT 2001
As lead auditor of the audit of Viking Mines Limited for the year ended 30 June 2020, I
declare that, to the best of my knowledge and belief, there have been:
no contraventions of the auditor independence requirements of the Corporations
Act 2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the
audit.
This declaration is in respect of Viking Mines Limited and the entities it controlled
during the year.
Rothsay Auditing
Daniel Dalla
Partner
29 September 2020
Liability limited by a scheme approved under Professional Standards Legislation
Viking Mines Limited
Contents
30 June 2020
Statement of profit or loss and other comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Directors' declaration
Independent auditor's report to the members of Viking Mines Limited
Shareholder information
General information
22
23
24
25
26
43
44
48
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 2020.
The directors have the power to amend and reissue the financial statements.
21
Viking Mines Limited
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2020
Revenue
Expenses
Audit fees
Consultancy costs
Employee benefits expense
Impairment of assets
Foreign exchange gain / (loss)
Share-based payments
Other expenses
Loss before income tax expense
Income tax expense
Loss after income tax expense for the year attributable to the owners of Viking
Mines Limited
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
Consolidated
Note
2020
$
2019
$
4
9
5
14
54,280
122,838
(26,210)
(100,724)
(262,019)
(299,660)
49,271
-
(125,897)
(25,710)
(176,520)
(265,777)
-
110,174
(119,820)
(141,657)
(710,959)
(496,472)
-
-
(710,959)
(496,472)
(128,923)
(45,904)
(128,923)
(45,904)
(839,882)
(542,376)
Cents
Cents
Basic earnings per share
Diluted earnings per share
27
27
(0.23)
(0.23)
(0.16)
(0.16)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
22
Viking Mines Limited
Statement of financial position
As at 30 June 2020
Assets
Current assets
Cash and cash equivalents
Other receivables
Prepayments
Total current assets
Non-current assets
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
Consolidated
Note
2020
$
2019
$
6
7
9
10
11
12
13
14
1,417,196
6,199
3,578
1,426,973
2,388,027
11,347
1,187
2,400,561
664,340
664,340
474,917
474,917
2,091,313
2,875,478
150,239
22,378
172,617
108,207
8,693
116,900
172,617
116,900
1,918,696
2,758,578
22,537,072
(536,500)
(19,340,651)
2,659,921
(741,225)
22,537,072
(407,577)
(18,629,692)
3,499,803
(741,225)
1,918,696
2,758,578
The above statement of financial position should be read in conjunction with the accompanying notes
23
Viking Mines Limited
Statement of changes in equity
For the year ended 30 June 2020
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)
119,820
-
-
-
-
-
(496,472)
(45,904)
(542,376)
119,820
Balance at 30 June 2019
22,537,072
(407,577)
(18,629,692)
(741,225)
2,758,578
Consolidated
Issued
capital
$
Reserves
$
Accumulated
losses
$
Non-
controlling
interest
$
Total equity
$
Balance at 1 July 2019
22,537,072
(407,577)
(18,629,692)
(741,225)
2,758,578
Loss after income tax expense for the year
Other comprehensive income for the year, net
of tax
Total comprehensive income for the year
-
-
-
-
(710,959)
(128,923)
-
(128,923)
(710,959)
-
-
-
(710,959)
(128,923)
(839,882)
Balance at 30 June 2020
22,537,072
(536,500)
(19,340,651)
(741,225)
1,918,696
The above statement of changes in equity should be read in conjunction with the accompanying notes
24
Viking Mines Limited
Statement of cash flows
For the year ended 30 June 2020
Cash flows from operating activities
Payments to suppliers and employees
Interest received
Government COVID-19 cash flow boost
Net cash used in operating activities
Cash flows from investing activities
Payments for exploration and evaluation
Proceeds from sale of mining properties
Net cash from/(used in) investing activities
Net cash from financing activities
Net 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
Consolidated
Note
2020
$
2019
$
25
9
(458,288)
21,218
34,975
(914,578)
53,907
-
(402,095)
(860,671)
(489,083)
-
(22,371)
70,844
(489,083)
48,473
-
-
(891,178)
2,388,027
(79,653)
(812,198)
3,090,051
110,174
Cash and cash equivalents at the end of the financial year
6
1,417,196
2,388,027
The above statement of cash flows should be read in conjunction with the accompanying notes
25
Viking Mines Limited
Notes to the financial statements
30 June 2020
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 16 Leases
The consolidated entity has adopted AASB 16 from 1 January 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. However, EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) results
improve as the operating expense is now replaced by interest expense and depreciation in profit or loss. 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 an impact on the consolidated entity’s financial statements as the
leases are held for a period of less than 12 months.
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').
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.
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.
26
Viking Mines Limited
Notes to the financial statements
30 June 2020
Note 1. Significant accounting policies (continued)
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 as interest accrues using the effective interest method. This is a method of calculating the
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest
rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset
to the net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Government grants
Government grant income is recognised when it is received or when the right to receive payment is established.
27
Viking Mines Limited
Notes to the financial statements
30 June 2020
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.
Exploration and evaluation assets
Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are current is
carried forward as an asset in the statement of financial position where it is expected that the expenditure will be recovered
through the successful development and exploitation of an area of interest, or by its sale; or exploration activities are
continuing in an area and activities have not reached a stage which permits a reasonable estimate of the existence or
otherwise of economically recoverable reserves. Where a project or an area of interest has been abandoned, the
expenditure incurred thereon is written off in the year in which the decision is made.
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.
28
Viking Mines Limited
Notes to the financial statements
30 June 2020
Note 1. Significant accounting policies (continued)
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.
Impairment of non-financial assets
Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount
exceeds its recoverable amount.
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.
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.
Share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for
the rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of
cash is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined
using either the Binomial or Black-Scholes option pricing model that takes into account the exercise price, the term of the
option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the
expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do
not determine whether the consolidated entity receives the services that entitle the employees to receive payment. No
account is taken of any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the
vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the
best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount
recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already
recognised in previous periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying either the
Binomial or Black-Scholes option pricing model, taking into consideration the terms and conditions on which the award was
granted. The cumulative charge to profit or loss until settlement of the liability is calculated as follows:
●
during the vesting period, the liability at each reporting date is the fair value of the award at that date multiplied by the
expired portion of the vesting period.
from the end of the vesting period until settlement of the award, the liability is the full fair value of the liability at the
reporting date.
●
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the cash paid to
settle the liability.
29
Viking Mines Limited
Notes to the financial statements
30 June 2020
Note 1. Significant accounting policies (continued)
Market conditions are taken into consideration in determining fair value. Therefore any awards subject to market conditions
are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are
satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made.
An additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair
value of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the condition is
treated as a cancellation. If the condition is not within the control of the consolidated entity or employee and is not satisfied
during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the
award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining
expense is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and
new award is treated as if they were a modification.
Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the
fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date; and assumes that the transaction will take place either: in the
principal market; or in the absence of a principal market, in the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or liability,
assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its
highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.
Issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax,
from the proceeds.
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Viking Mines Limited, excluding
any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding
during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account
the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the
weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential
ordinary shares.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part
of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of
financial position.
30
Viking Mines Limited
Notes to the financial statements
30 June 2020
Note 1. Significant accounting policies (continued)
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
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:
Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may
have, on the consolidated entity based on known information. This consideration extends to the nature of the products and
services offered, customers, supply chain, staffing and geographic regions in which the consolidated entity operates. Other
than as addressed in specific notes, there does not currently appear to be either any significant impact upon the financial
statements or any significant uncertainties with respect to events or conditions which may impact the consolidated entity
unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic.
Share-based payment transactions
The consolidated entity measures the cost of equity-settled transactions with employees by reference to the fair value of
the equity instruments at the date at which they are granted. The fair value is determined by using either the Binomial or
Black-Scholes model taking into account the terms and conditions upon which the instruments were granted. The
accounting estimates and assumptions relating to equity-settled share-based payments would have no impact on the
carrying amounts of assets and liabilities within the next annual reporting period but may impact profit or loss and equity.
Income tax
The consolidated entity is subject to income taxes in the jurisdictions in which it operates. Significant judgement is required
in determining the provision for income tax. There are many transactions and calculations undertaken during the ordinary
course of business for which the ultimate tax determination is uncertain. The consolidated entity recognises liabilities for
anticipated tax audit issues based on the consolidated entity's current understanding of the tax law. Where the final tax
outcome of these matters is different from the carrying amounts, such differences will impact the current and deferred tax
provisions in the period in which such determination is made.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity considers it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
Employee benefits provision
As discussed in note 1, the liability for employee benefits expected to be settled more than 12 months from the reporting
date are recognised and measured at the present value of the estimated future cash flows to be made in respect of all
employees at the reporting date. In determining the present value of the liability, estimates of attrition rates and pay
increases through promotion and inflation have been taken into account.
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the basis that the consolidated entity will commence commercial
production in the future, from which time the costs will be amortised in proportion to the depletion of the mineral resources.
Key judgements are applied in considering costs to be capitalised which includes determining expenditures directly related
to these activities and allocating overheads between those that are expensed and capitalised. In addition, costs are only
capitalised that are expected to be recovered either through successful development or sale of the relevant mining interest.
Factors that could impact the future commercial production at the mine include the level of reserves and resources, future
technology changes, which could impact the cost of mining, future legal changes and changes in commodity prices. To the
extent that capitalised costs are determined not to be recoverable in the future, they will be written off in the period in which
this determination is made.
31
Viking Mines Limited
Notes to the financial statements
30 June 2020
Note 3. Operating segments
The consolidated entity is organised into one operating segment: the resources sector in two geographical locations -
Ghana and Mongolia. These operating segments are based on the internal reports that are reviewed and used by the
Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in
determining the allocation of resources. Accordingly under the management approach outlined only one operating segment
has been identified and no further disclosures are required.
The CODM reviews EBITDA (earnings before interest, tax, depreciation and amortisation). The accounting policies
adopted for internal reporting to the CODM are consistent with those adopted in the financial statements.
The information reported to the CODM is on a monthly basis.
Note 4. Revenue
ATO COVID-19 cash flow boost
Interest revenue
Proceeds on sale of mining properties
Revenue
Note 5. Income tax expense
Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax expense
Tax at the statutory tax rate of 27.5%
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Impairment of assets
Share-based payments
Foreign exchange movement
Cash flow boost income not assessable
Other net expenses (deductible)/not deductible for tax purposes
Current year tax losses not recognised
Income tax expense
Tax losses not recognised
Unused tax losses for which no deferred tax asset has been recognised
Potential tax benefit @ 27.5%
32
Consolidated
2020
$
2019
$
34,975
19,305
-
-
51,994
70,844
54,280
122,838
Consolidated
2020
$
2019
$
(710,959)
(496,472)
(195,514)
(136,530)
82,407
-
16,748
(9,618)
(6,430)
-
32,951
6,412
-
5,388
(112,407)
112,407
(91,779)
91,779
-
-
Consolidated
2020
$
2019
$
2,744,161
2,744,161
754,644
754,644
Viking Mines Limited
Notes to the financial statements
30 June 2020
Note 5. Income tax expense (continued)
The above potential tax benefit for tax losses has not been recognised in the statement of financial position. These tax
losses can only be utilised in the future if the continuity of ownership test is passed, or failing that, the same business test
is passed.
Deferred tax assets not recognised
Deferred tax assets not recognised comprises temporary differences attributable to:
Employee benefits
Accrued expenses
Total deferred tax assets not recognised
Consolidated
2020
$
2019
$
6,154
4,125
10,279
2,391
3,850
6,241
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
2020
$
2019
$
1,417,196
-
537,048
1,850,979
1,417,196
2,388,027
Consolidated
2020
$
2019
$
1,147
-
5,052
2,305
1,913
7,129
6,199
11,347
Consolidated
2020
$
2019
$
3,578
1,187
Cash at bank
Short term deposits
Note 7. Current assets - Other receivables
Other receivables
Interest receivable
GST receivable
Note 8. Current assets - prepayments
Prepayments
33
Viking Mines Limited
Notes to the financial statements
30 June 2020
Note 9. Non-current assets - exploration and evaluation
Exploration and Evaluation Capitalised Asset
Less: Accumulated amortisation E&E Asset
Less: Impairment
Consolidated
2020
$
2019
$
3,214,000
(2,250,000)
(299,660)
2,724,917
(2,250,000)
-
664,340
474,917
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Mongolia -
Berkh Uul
Mongolia –
Khonkhor Zag
Ghana –
Akoase
Ghana –
Tumentu
Coal Project Coal Project Gold Project Gold Project
$
$
$
$
Total
$
Balance at 1 July 2018
288,874
10,786
Balance at 30 June 2019
Additions
Impairment charge
Balance at 30 June 2020
288,874
-
(288,874)
10,786
-
(10,786)
-
-
-
-
-
-
-
175,257
474,917
175,257
489,083
-
474,917
489,083
(299,660)
664,340
664,340
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.
The Mongolian assets were impaired to nil as at the end of the financial year. There have been no acceptable offers for the
project during the reporting period and no expectation of any change in this position.
Note 10. Current liabilities - trade and other payables
Trade payables
Accrued expenses
Other payables
Note 11. Current liabilities - employee benefits
Annual leave provision
34
Consolidated
2020
$
2019
$
95,162
39,790
15,287
21,976
67,340
18,891
150,239
108,207
Consolidated
2020
$
2019
$
22,378
8,693
Viking Mines Limited
Notes to the financial statements
30 June 2020
Note 12. Equity - issued capital
Consolidated
2020
Shares
2019
Shares
2020
$
2019
$
Ordinary shares - fully paid
313,717,856
313,717,856
22,537,072
22,537,072
Movements in unlisted options exercisable at $0.03 on or before 06 December 2021
Details
Balance
Options issued to directors
Balance
Expiry of options issued to advisor
Date
1 July 2018
6 December 2018
30 June 2019
30 June 2020
Number of
Options
12,000,000
15,000,000
27,000,000
(12,000,000)
Balance
30 June 2020
15,000,000
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.
Share buy-back
There is no current on-market share buy-back.
Options
12,000,000 Unlisted Advisor Options were issued to DJ Carmichael Pty Limited, each with an exercise price of $0.0460 per
option, vesting immediately on issue date 7 April 2017, and expiring on 30 June 2020.
15,000,000 Unlisted Remuneration Options were issued to directors, each with an exercise price of $0.0300 per option,
vesting immediately on issue date 6 December 2018, and expiring on 6 December 2021.
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.
35
Viking Mines Limited
Notes to the financial statements
30 June 2020
Note 13. Equity - reserves
Foreign currency reserve
Share-based payments reserve
Consolidated
2020
$
2019
$
(900,320)
363,820
(771,397)
363,820
(536,500)
(407,577)
Foreign currency reserve
The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign
operations to Australian dollars. It is also used to recognise gains and losses on hedges of the net investments in foreign
operations.
Share-based payments reserve
The reserve is used to recognise the value of equity benefits provided to employees and directors as part of their
remuneration, and other parties as part of their compensation for services.
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 2018
Foreign currency translation
Options issued to Directors
Balance at 30 June 2019
Foreign currency translation
Balance at 30 June 2020
Note 14. Equity - accumulated losses
Accumulated losses at the beginning of the financial year
Loss after income tax expense for the year
Accumulated losses at the end of the financial year
Note 15. Equity - dividends
Foreign
currency
reserve
$
Share-based
payments
reserve
$
(725,493)
(45,904)
-
(771,397)
(128,923)
244,000
-
119,820
363,820
-
Total
$
(481,493)
(45,904)
119,820
(407,577)
(128,923)
(900,320)
363,820
(536,500)
Consolidated
2020
$
2019
$
(18,629,692)
(710,959)
(18,133,220)
(496,472)
(19,340,651)
(18,629,692)
There were no dividends paid, recommended or declared during the current or previous financial year.
36
Viking Mines Limited
Notes to the financial statements
30 June 2020
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 group
primarily transact in their own respective functional currency, foreign currency risk is deemed to be minimal.
Price risk
The consolidated entity is not exposed to any significant price risk.
Interest rate risk
Interest rate risk is deemed to be minimal as the consolidated entity exposure on interest risk mainly on its cash at bank.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
consolidated entity. The consolidated entity has a strict code of credit, including obtaining agency credit information,
confirming references and setting appropriate credit limits. The consolidated entity obtains guarantees where appropriate
to mitigate credit risk. The maximum exposure to credit risk at the reporting date to recognised financial assets is the
carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position
and notes to the financial statements. The consolidated entity does not hold any collateral.
The consolidated entity 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.
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.
The consolidated entity deemed its credit risk to be minimal as its financial assets are mainly cash held at financial
institutions.
Liquidity risk
The consolidated entity is not exposed to any significant 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.
37
Viking Mines Limited
Notes to the financial statements
30 June 2020
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 - 2020
Non-derivatives
Non-interest bearing
Trade payables
Other payables
Total non-derivatives
Consolidated - 2019
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
$
-
-
95,162
55,077
150,239
-
-
-
-
-
-
-
-
-
95,162
55,077
150,239
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
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 AM
Charles Thomas
Michael 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
38
Consolidated
2020
$
2019
$
293,836
25,883
-
250,000
23,750
119,820
319,719
393,570
Viking Mines Limited
Notes to the financial statements
30 June 2020
Note 17. Key management personnel disclosures (continued)
Raymond Whitten's 30 June 2020 remuneration includes an amount of $165,000 salary (including superannuation) plus an
amount of $13,685 to indicate the movement in his annual leave provision in accordance with the Corporations
Regulations.
Note 18. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by Rothsay Auditing, the auditor of
the company:
Audit services - Rothsay Auditing
Audit or review of the financial statements
Note 19. Contingent assets
Consolidated
2020
$
2019
$
24,000
23,000
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
The following transactions occurred with related parties:
Consolidated
2020
$
2019
$
Payment for other expenses:
Consulting fees paid to GTT Ventures Pty Ltd, a company related to Charles Thomas, for
general corporate, investor relations and project introduction services.
-
10,000
Receivable from and payable to related parties
There were no trade receivables from or trade payables to related parties at the current and previous reporting date.
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
39
Viking Mines Limited
Notes to the financial statements
30 June 2020
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
Share-based payments reserve
Accumulated losses
Total equity
Parent
2020
$
2019
$
(397,051)
(480,287)
(397,051)
(480,287)
Parent
2020
$
2019
$
1,393,866
2,107,203
13,242,532
13,636,653
58,594
55,664
58,594
55,664
22,537,072
363,820
(9,716,954)
22,537,072
363,820
(9,319,903)
13,183,938
13,580,989
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 2020 and 30 June 2019.
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2020 and 30 June 2019.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2020 and 30 June 2019.
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.
40
Viking Mines Limited
Notes to the financial statements
30 June 2020
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
Associated Gold Fields Pty Ltd
Bold Resources Pty Ltd
BRX LLC
Auminco Coal LLC
Khonkhor Zag Coal LLC
Salkhit Altai LLC
Ghana Mining Investments Pty Ltd
Kiwi International Resources Pty Ltd
Resolute Amansie Ltd*
*
100% of rights to profits
Principal place of business /
Country of incorporation
Australia
Australia
Mongolia
Mongolia
Mongolia
Mongolia
Australia
Australia
Ghana
Ownership interest
2019
2020
%
%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
90.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
90.00%
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 2020 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 loss after income tax to net cash used in operating activities
Consolidated
2020
$
2019
$
(710,959)
(496,472)
-
299,660
-
(49,271)
-
1,522
-
119,820
(110,174)
(70,844)
5,148
(2,391)
42,033
13,685
7,611
-
(320,827)
8,693
(402,095)
(860,671)
Loss after income tax expense for the year
Adjustments for:
Depreciation and amortisation
Impairment of non-current assets
Share-based payments
Foreign exchange differences
Proceeds from sale of mining properties
Change in operating assets and liabilities:
Decrease in other receivables
Increase in prepayments
Increase/(decrease) in trade and other payables
Increase in employee benefits
Net cash used in operating activities
Note 26. Non-cash investing and financing activities
There were no non-cash investing and financing activities during the year (2019: Nil)
41
Viking Mines Limited
Notes to the financial statements
30 June 2020
Note 27. Earnings per share
Loss after income tax attributable to the owners of Viking Mines Limited
(710,959)
(496,472)
Consolidated
2020
$
2019
$
Basic earnings per share
Diluted earnings per share
Cents
Cents
(0.23)
(0.23)
(0.16)
(0.16)
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.
42
Viking Mines Limited
Directors' declaration
30 June 2020
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 2020 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 AM
Executive Chairman
30 September 2020
43
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
VIKING MINES LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Viking Mines Limited (“the Company”) and its controlled entities
(“the Group”) which comprises the consolidated statement of financial position as at 30 June 2020, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of cash flows for the year then ended on that date and
notes to the financial statements, including a summary of significant accounting policies and the directors’
declaration of the Company.
In our opinion the financial report of the Group is in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2020 and of its financial
performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under these
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report
section of this report. We are independent of the Group in accordance with the auditor independence
requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and
Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (the “Code”) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given
to the directors of the Company, would be in the same terms if given to the directors as at the time of this
auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. These matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
VIKING MINES LIMITED (continued)
Key Audit Matter – Cash and cash equivalents
How our Audit Addressed the Key Audit Matter
The Group’s cash and cash equivalents make up 68%
of total assets by value and are considered to be the
key driver of the Group’s operations.
Our procedures over the existence and valuation of
the Group’s cash and cash equivalents included but
were not limited to:
We do not consider cash and cash equivalents to be
at a high risk of significant misstatement or to be
subject to a significant level of judgement.
However due to their materiality in the context of
the financial statements as a whole, they are
considered to be the area which had an effect on
our overall strategy and allocation of resources in
planning and completing our audit.
Documenting and assessing the processes and
controls in place to record cash transactions;
Testing a sample of cash payments to
determine they were bona fide payments,
were properly authorised and recorded in the
general ledger; and
Agreeing
equivalents to independent confirmations.
significant
cash
and
cash
Key Audit Matter – Exploration and evaluation
expenditure
The Group continues to capitalise a significant
amount of exploration and evaluation expenditure.
The balance at year end makes up 32% of the total
asset base.
We do not consider exploration and evaluation
expenditure to be at a high risk of significant
misstatement, or to be subject to a significant level
of judgement.
However due to the materiality in the context of
the financial statements as a whole, this is
considered to be an area which had an effect on our
overall strategy and allocation of resources in
planning and completing our audit.
We have also assessed the appropriateness of the
disclosures included in the financial report.
How our Audit Addressed the Key Audit Matter
Our procedures in assessing exploration and
evaluation expenditure included but were not
limited to the following:
We assessed exploration and evaluation
expenditure with reference to AASB 6
Exploration for and Evaluation of Mineral
Resources.
We tested a sample of exploration and
evaluation expenditure to supporting
documentation to ensure they were bona
fide payments; and
We documented and assessed the processes
and controls in place to record exploration
and evaluation transactions.
We have also assessed the appropriateness of the
disclosures included in the financial report.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
VIKING MINES LIMITED (continued)
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2020, but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial report or
our knowledge obtained in the audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Directors’ Responsibility for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with the Australian Accounting Standards and the Corporations Act 2001 and for
such internal control as the directors determine is necessary to enable the preparation of the financial
report that gives a true and fair view and is free from material misstatement whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Group or cease operations,
or have no realistic alternative but to do so.
Auditor’s Responsibility for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with Australian Auditing Standards will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing
and Assurance Standards Board website at: www.auasb.gov.au/Home.aspx.
We communicate with the directors regarding, amongst other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
VIKING MINES LIMITED (continued)
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit matters.
We describe those matters in our auditor’s report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communications.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the remuneration report included in the directors’ report for the year ended 30 June 2020.
In our opinion the remuneration report of Viking Mines Limited for the year ended 30 June 2020 complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
Rothsay Auditing
Dated 30 September 2020
Daniel Dalla
Partner
Viking Mines Limited
Shareholder information
30 June 2020
The shareholder information set out below was applicable as at 28 September 2020.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
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:
Number
of holders
of options
over
ordinary
shares
Number
of holders
of ordinary
shares
31
22
54
211
227
545
179
-
-
-
-
3
3
-
Ordinary shares
Number held
% of total
shares
issued
NETWEALTH INVESTMENTS LIMITED
GTT GLOBAL OPPORTUNITIES PTY LTD
SYRACUSE CAPITAL PTY LTD (THE ROCCO TASSONE S/F A/C)
GREENLINE INVESTMENTS PTY LTD
ALISSA BELLA PTY LTD
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 JASON TANG
CAMPBELL KITCHENER HUME & ASSOCIATES PTY LTD (C K H SUPERFUND A/C)
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
MANSON GROUP PTY LIMITED (MANSON GROUP SUPER FUND A/C)
MR GARO PETE IRIKIAN
MRS ANTHEA JOHNSTON
MR MICHAEL ANTHONY DEL CASALE & MRS SHEREE LOUISE DEL CASALE
MR FAWZI KASSAB
RODBY HOLDINGS PTY LTD
30,910,924
25,000,000
17,000,000
12,000,000
7,270,402
6,687,887
6,000,000
5,000,000
4,619,637
4,593,814
4,325,570
4,213,750
4,200,000
4,148,788
4,026,867
4,025,274
4,000,000
3,886,466
3,800,826
3,627,397
9.85
7.97
5.42
3.83
2.32
2.13
1.91
1.59
1.47
1.46
1.38
1.34
1.34
1.32
1.28
1.28
1.28
1.24
1.21
1.16
159,337,602
50.78
48
Viking Mines Limited
Shareholder information
30 June 2020
Twenty largest unquoted equity security holders
The names of the twenty largest security holders of unquoted equity securities are listed below:
CHAOXS PTY LTD
MOUNTS BAY INVESTMENTS PTY LTD
BARBARY COAST INVESTMENTS PTY LTD
Unquoted equity securities
Options over ordinary
shares
Number held
5,000,000
5,000,000
5,000,000
15,000,000
% of total
options
issued
33.33
33.33
33.33
99.99
Number
on issue
Number
of holders
Unlisted options issued 6 December 2018, exercisable at $0.03 on or before 06 December
2021
15,000,000
3
Substantial holders
Substantial holders in the company are set out below:
RAYMOND WHITTEN
GTT GLOBAL OPPORTUNITIES PTY LTD
SYRACUSE CAPITAL PTY LTD
CHAOXS PTY LTD
MOUNTS BAY INVESTMENTS PTY LTD (CALVER CAPITAL A/C)
BARBARY COAST INVESTMENTS PTY LTD
Voting rights
Voting rights are set out below:
Ordinary shares
Number held
% of total
shares
issued
45,926,307
25,000,000
18,935,334
14.64
7.97
6.04
Options over ordinary
shares
Number held
% of total
options
issued
5,000,000
5,000,000
5,000,000
33.33
33.33
33.33
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.
Options
All quoted and unquoted options do not carry any voting rights.
There are no other classes of equity securities.
49
Viking Mines Limited
Shareholder information
30 June 2020
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
Tumentu,
Prospecting licence
Butre,
Prospecting licence
Berkh Uul,
Exploration licence
Khonkhor Zag,
Mining lease
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
Resolute Amansie Ltd
100%
Ahanta West, Ghana
Resolute Amansie Ltd
100%
Selenge province, Mongolia BRX LLC
Govi Altai province, Mongolia Salkhit Altai LLC
100%
100%
Resolute Amansie Ltd is a 100% owned subsidiary of Viking Mines Limited
* BRX LLC and Salkhit Altai LLC are 100% owned subsidiaries of Viking Mines Limited
50