and Controlled Entities
(ACN 119 670 370)
ANNUAL REPORT
FOR THE YEAR ENDED
30 JUNE 2014
COMPANY DIRECTORY
Directors
Allan Mulligan
Geoffrey Wallace
Peter Batten
Company Secretary
Geoffrey Wallace
ASX Code: WKT
Auditors
HLB Mann Judd
Level 4, 130 Stirling Street
Perth WA 6000
Australia
Securities Exchange Listing
Australian Securities Exchange Limited
Level 40
Central Park
152-158 St Georges’ Terrace
Perth, WA 6000
Australia
Registered Office and Principal Place of Business
Bankers:
National Australia Bank
Perth West Business Banking Centre
1238 Hay Street
West Perth, WA 6005
Australia
Level 3
681 Murray Street
West Perth, WA 6005
Australia
Telephone: +61 8 6298 7500
Facsimile: +61 8 6298 7501
Website : www.wkt.com.au
Email: admin@wkt.com.au
Share Register
Security Transfer Registrars
770 Canning Highway
Applecross, WA 6153
Telephone: +61 8 9315 2333
Email: registrar@securitytransfer.com.au
TABLE OF CONTENTS
1.
DIRECTORS’ REPORT 2
2.
CORPORATE GOVERNANCE STATEMENT
15
3.
AUDITOR’S INDEPENDENCE DECLARATION
18
4.
FINANCIAL STATEMENTS
19
5.
DIRECTORS' DECLARATION
45
6.
INDEPENDENT AUDITOR’S REPORT
46
7.
ADDITIONAL SHAREHOLDER INFORMATION
48
1
DIRECTORS’ REPORT
Your Directors submit the annual financial report of the consolidated entity consisting of Walkabout Resources Ltd (“the
Company”) and the entities it controlled during the period for the financial year ended 30 June 2014. In order to comply
with the provisions of the Corporations Act 2001, the directors report as follows:
Directors
The names of Directors who held office during or since the end of the year and until the date of this report are as follows.
Directors were in office for this entire period unless otherwise stated.
Name, qualifications and
independence status
Mr Allan Mulligan
Managing Director
Experience, special responsibilities and other directorships
Appointed Managing Director 7 August 2012
Allan Mulligan is a mining engineer with over thirty years of mine management
and production experience.
Mr Mulligan has specialised in technical assessment and production economics,
feasibilities, project design and costing of underground mines and prospects. He
has worked extensively in exploration, mine development and operations across
Africa and Australia.
Allan was a founding Director of Walkabout Resources Pty Ltd. He has
previously been on the board of several Western Australian explorers.
Other directorships of listed companies in the last 3 years: None
Member of the Audit and Remuneration Committees.
Mr Geoffrey Wallace
Appointed Director and Company Secretary 31 May 2011
Executive Director and Company
Secretary
Mr Peter Batten
Technical Director
Independent Non-Executive
Director
Geoff is a Fellow of the Australian Society of Certified Practicing Accountants, a
Fellow of the Taxation Institute of Australia, a member of the Australian Institute
of Company Directors, and a former Director of the Australian Mining and
Petroleum Law Association. He has many years’ experience in the financial,
corporate and management areas of the mining industry. He has been a Director
of a number of listed mining and exploration companies on the Australian Stock
Exchange (ASX) and the Toronto Stock Exchange (TSX).
Other directorships of listed companies in the last 3 years: None
Appointed 22 August 2011
Peter is a graduate of Curtin University and holds a Bachelor of Applied Science
majoring in geology. He has over twenty eight years in the exploration and
mining industry. He has acted as Managing Director of ASX listed companies
Berkeley Resources Ltd, White Canyon Uranium Ltd and Bannerman Resources
Ltd. Whilst Managing Director at Bannerman Resources he oversaw the granting
of the company’s licences and took the Etango uranium project in Namibia from
grassroots to a significant resource of over 100M lbs U3O8. This successful
period at Bannerman Resources included the company’s admission to the
ASX300 and the Toronto (TSX) and Namibian (NSX) stock exchanges. Peter
first worked in Africa in 1997 and is currently Executive Chairman of De Grey
Mining Ltd. Peter is a member of the Australasian Institute of Mining and
Metallurgy and the Australian Institute of Geoscientists
Other directorships of listed companies in the last 3 years:
White Canyon Uranium Limited
De Grey Mining Ltd
Member of the Audit and Remuneration Committees
2
DIRECTORS’ REPORT - Continued
Interests in the shares and options of the company and related bodies corporate
The following relevant interests in shares and options of the Company or a related body corporate were held by the
directors at the date of this report.
Director
A Mulligan
G Wallace
P Batten
Ordinary
shares
67,298,857
73,652,249
2,078,025
No share options of the Company were granted to Directors of the Company during or since the end of the financial year
as part of their remuneration package.
Principal Activities
The principal activities of the consolidated entity during the financial year were the exploration and development of
resources and energy assets located in Botswana and Tanzania.
There have been no other significant changes in the nature of activities during the year.
Operating Results
The comprehensive loss of the consolidated entity amounted to $1,538,934 (2013: loss of $1,269,490).
Financial Position
The net assets of the Group were $12,275,301 at 30 June 2014 (2013: $13,145,029)
Dividends Paid or Recommended
There were no dividends paid or recommended throughout the period.
Review of Operations
Corporate
In November 2013 the Company raised $347,000 from a Share Purchase Plan and in March 2014 the Company raised
$540,000 from a share placement.
Projects
Takatokwane Coal Project, Botswana (Various between 65% and 70% equity)
Takatokwane is located just 195km from the Botswana capital, Gaborone, in the southern belt of the Central Kalahari
Sub-Basin and is directly accessible by a well-maintained bitumen road. Walkabout has previously defined a 6.9 billion
tonne JORC 2004 Inferred raw coal Resource and a 748 million tonne Indicated raw coal Resource over the two Joint
Ventures with Wizard Investments Pty Ltd (70%) and Triprop Energy Pty Ltd (earning 65%).
3
DIRECTORS’ REPORT - Continued
Takatokwane Raw Coal Resources - As at June 30 2014
Category
Tonnes
Density
Licence
Joint Venture
WKT
Competent
ASX Report
Indicated
Inferred
Indicated
Inferred
(Mt)
(t/m3)
Ownership
Person
Date
214.60
1.70 PL035/2007
Wizard Investments Pty Ltd
70%
Mr Alan Golding
11/04/2013
4,015.56
1.60 PL035/2007
Wizard Investments Pty Ltd
70%
Dr Ian Blayden
16/11/2011
533.44
1.68 PL157/2009*
Triprop Energy Pty Ltd
2,102.23
1.80 PL157/2009*
Triprop Energy Pty Ltd
40%
40%
Mr Alan Golding
11/04/2013
Mr Alan Golding
13/08/2012
Total Indicated
748.04
Total Inferred
6,135.79
Total Resource
6,883.83
1.69
1.67
1.69
*formerly PL159/2009 and now amalgamated
No exploration of coal resources was conducted during the period, and no physical mining of resources. Therefore there
has been no material changes or additions to the Takatokwane raw coal resources as previously defined.
In March 2014 a Bi-Lateral Agreement was signed which contractually reaffirms commitment by the Governments of
Namibia and Botswana to the construction of the US$10 billion, 1,500 km long railway between Mmamabula in Botswana
and Walvis Bay in Namibia. The expected route of the rail line is co-incident with the existing Trans Kalahari Highway and
export corridor and located near the planned mining area on the JV tenements.
Development and construction of the rail-line is planned between 2014 to 2019, and is expected to include an extended
commodity terminal at Walvis Bay port. The coal terminal will be configured to handle some sixty five million tonnes of
coal per annum.
The company is engaged in a pre-feasibility study at the Takatokwane Coal Project. This study is being managed in-
house in order to reduce engineering and consultant costs and specialist packages are being outsourced as required. The
coal underlying the tenements is suitable for power station feed and most of the production will be directly exported.
The large size of the deposit and the relatively flat, shallow and wide seam coal will accommodate several mines to be
constructed and operated at the same time. The company is considering a multiple mine configuration of several large
surface strip mines producing a washed product at coal quality specifications approaching 6,000 kcal/kg and a direct
shipping feedstock at about 4,800 kcal/kg. The mines will produce from multiple production units of 6mtpa each and the
project is capable of producing in excess of 20mtpa of thermal coal for export markets.
There are three market access options, or corridors, for the mega coal endowment at Takatokwane:
1. Western Corridor - The Trans-Kalahari Rail Line between Mmamabula in the east and Walvis Bay, Namibia to
the west. This line is planned to pass directly adjacent to the Takatokwane Project and will allow the despatch
of coal in both a westerly direction to Namibia AND to the east accessing the southern corridor into South Africa.
This line is currently under Definitive Feasibility Study by specialist consultants managed by the Government
task team pending the call for funding, construction and management tenders.
2. Eastern Corridor – The Transwana Rail line from Morupule in central Botswana through Zimbabwe and
terminating at a new port, Technobanine, in Mozambique. This private sector project option is due to commence
with Final Feasibility Study during this quarter.
3. Southern Corridor – The Transnet (TFR) expansion of the Richards Bay Heavy Haul line from the Waterberg
Coal District in South Africa to terminate at both the Richards Bay and Maputo coal terminals. This option is
currently most advanced with the first stage due for completion in 2018/19.
Kigoma Copper Project, Tanzania (Various between 75% and 100% equity)
The Kigoma Copper Project, is some 80km south of the town of Kigoma on the shores of Lake Tanganyika in western
Tanzania. Walkabout has been actively exploring for copper in the Kigoma Region since early 2013. Initial
reconnaissance trips to the area revealed a number of small scale artisanal copper and lead mines in a variety of
geological/structural settings.
4
DIRECTORS’ REPORT - Continued
Outside of the artisanal diggings copper mineralisation is widespread and of multiphase origin in breccias, folds and thrust
structures. Tenure was acquired in the region and a number of partnerships were entered into in the vicinity of the
artisanal workings to enable Walkabout to conduct exploration activities.
Wide spaced soil and rock chip sampling in the area revealed a number of anomalies for Cu and Pb and these were
followed up with closer spaced soil sampling, and a programme of shallow drillholes targeting geochemical anomalies and
structural targets.
Drilling, close spaced soil sampling and geological mapping revealed that many of the artisanal diggings to the south of
the Malagarasi River were located on small scale structures (faults and fractures) as well as the interface between the
basalts and the overlying dolomites.
Ongoing exploration suggests that the more significant Cu deposits are structurally controlled and associated with deeper
seated shear zones or faults. Work done by others in the region during 1999 to early 2001 included a detailed structural
delineation and interpretation of the region. This interpretation was used to guide the Walkabout exploration programme to
focus on what is interpreted to be favourable structural settings for more significant, high grade Cu mineralisation.
Soil and rock chip sampling over these broad target zones identified target areas of high grade Cu, Pb and Ag
mineralisation with individual rock/float sample results of up to 19 %Cu, 34 %Pb, 1 % Zn and 510 g/t Ag. Shallow
reconnaissance drilling over one of these targets (Malagarasi North) has intersected a number of mineralised veins close
to surface with assays of up to 2.1% Cu, 63.0 g/t Ag and 3.4 % Zn over separate one metre downhole intervals. The
majority of the large geochemical anomaly remains untested.
The Company is planning a low intensity programme of geophysical surveys which include ground Magnetics and Induced
Polarisation (IP). These are designed to refine existing regional geophysical targets and to establish drill targets within
identified geochemical anomalous zones. IP surveys are planned over three of the five areas with ground magnetics
planned over a portion of a large magnetic anomaly.
Makete PGE Project, Tanzania (100% equity)
.
At the Makete PGE Project in south western Tanzania, previous drilling has intersected high grade and wide Platinum,
Palladium and gold intercepts of up to 17.6m at 4.9 g/t Pt, Pd and Au. The Company has completed a data review and
determined the Project is suitable for Joint Venture with other PGE explorers as an interesting exploration play in Platinum
Group Metals.
The origin of the PGE enrichments is considered to have originated from basaltic melts that had passed the critical
threshold and became ponded or otherwise stopped migrating and crystallized at the mantle-crust boundary. The Nkenja
Mafic Ultramafic Body is exceptional in the age and extent of its PGE mineralization. The Pt, Pd and Au mineralization is
widespread within large volumes of mantle dunite and is not restricted to small-volume chromitite occurrences. It belongs
within a maficultramafic association that possibly forms part of an ophiolite of Palæoproterozoic age. It may represent
evidence of the oldest known Pt-Pd enrichment of the uppermost mantle.
Lindi Coal Project, Tanzania (100% equity)
The Lindi thermal coal project is located approximately 60km west of the coastal town of Lindi, and approximately 500km
south of Dar es Salaam, the national capital of Tanzania. Access to the project is by secondary dirt and sealed roads. At
Lindi, the Company currently holds three licences that are located along the oil and gas prospective southeastern
coastline of Tanzania.
Occurrences of coal seams have been found close to the surface in two localities nearby and while much of the known
coal in the area exists at depths of +200m, the Company is targeting an area known as the Ruvuma Saddle stratigraphy,
a shallower part of the Ruvuma and Mandawa basins. Walkabout believes there is an opportunity to discover good quality
thermal coal in this under-explored shallow position.
Significant Changes in State of Affairs
The following significant changes in the state of affairs of the Company occurred during the year:
On 24 July 2013, the Company issued 7,462,687 fully paid ordinary shares in consideration for the second phase of the
Farm-In and incorporated Joint Venture agreement. The company has increased its holding in the Takatokwane South
Project from 20% to 40% and has an earn-in right to 65%.
5
DIRECTORS’ REPORT - Continued
On 28 November 2013 the Company issued 34,700,000 fully paid ordinary shares at the price of $0.01 per share in
accordance with a Share Purchase Plan, raising $347,000.
On 13 March 2014, the Company issued 90,000,000 fully paid ordinary shares to institutional and sophisticated investors
at the price of $0.006 per share to raise $540,000 before costs.
At the date of this report there are no unissued ordinary shares of the company under option.
Significant Events After Balance Date
No matters or circumstances have arisen since the end of the financial year which significantly affected or could
significantly affect the operations of the consolidated entity, the results of those operations, or the state of affairs of the
consolidated entity in future financial years.
Likely Developments and Expected Results
Further information has not been presented in this report as disclosure of information regarding likely developments in the
operations of the consolidated entity in future financial years and the expected results of those operations is likely to result
in unreasonable prejudice to the consolidated entity.
Environmental legislation
The consolidated entity is not subject to any significant environmental legislation.
Indemnification and insurance of Directors and Officers
The Company has agreed to indemnify all the Directors of the Company for any liabilities to another person (other than
the Company or related body corporate) that may arise from their position as Directors of the Company and its controlled
entities, except where the liability arises out of conduct involving a lack of good faith.
During the financial year the Company paid a premium in respect of a contract insuring the Directors and officers of the
Company and its controlled entities against any liability incurred in the course of their duties to the extent permitted by the
Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the
premium.
REMUNERATION REPORT (Audited)
This report, which forms part of the Directors’ Report, outlines the remuneration arrangements in place for the Key
Management Personnel (“KMP”) of the Company for the financial year ended 30 June 2014. The information provided in
this remuneration report has been audited as required by Section 308(3C) of the Corporations Act 2001.
The remuneration report details the remuneration arrangements for KMP who are defined as those persons having
authority and responsibility for planning, directing and controlling the major activities of the Company and its controlled
entities, directly or indirectly, including any Director (whether Executive or otherwise) of the parent company.
Remuneration policy
The remuneration policy of Walkabout has been designed to align Director and Executive objectives with shareholder and
business objectives by providing a fixed remuneration component and potentially, at the Boards discretion, long term
incentives based on key performance areas affecting the consolidated entity’s financial results. The Board of Walkabout
believes the remuneration policy to be appropriate and effective in its ability to attract and retain the best executives and
Directors to run and manage the consolidated entity, as well as create goal congruence between Directors, Executives
and shareholders.
The Board’s policy for determining the nature and amount of remuneration for Board members and senior executives of
the consolidated entity is as follows: the remuneration policy, setting the terms and conditions for the Executive Directors
and other senior executives, was developed by the Board of Directors, and approved by resolution of the Board. All
Executives receive a base salary including superannuation with the possibility of options and performance incentives.
6
DIRECTORS’ REPORT - Continued
The Board of Directors review executive packages annually by reference to the consolidated entity’s performance,
executive performance and comparable information from industry sectors and other listed companies in similar industries.
The performance of Executives is assessed annually with each executive and is based predominantly on operational and
exploration activities and shareholders’ value. The Board may, however, exercise its discretion in relation to approving
incentives, bonuses and options, and can award these if they can be reasonably justified. The policy is designed to attract
and retain the highest calibre of Executives and reward them for performance that results in long term growth in
shareholder value.
Directors and Executives receive a superannuation guarantee contribution required by the Government, which is currently
9.5%, and do not receive any other retirement benefits.
All remuneration paid to Directors and executives is valued at the cost to the Company and expensed.
The Board policy is to remunerate Non-Executive Directors at market rates for comparable companies for time,
commitment and responsibilities. The Remuneration & Nomination Committee determines payments to the Non-Executive
Directors and reviews their remuneration annually, based on market practice, duties and accountability. Independent
external advice is sought when required. Any changes to the maximum aggregate amount of fees that can be paid to Non-
Executive Directors is subject to approval by shareholders at an Annual General Meeting. Fees for non-executive
directors are not linked to performance of the consolidated entity. However to align Directors’ interests with shareholder
interests, the Directors are encouraged to hold shares in the Company and are able to participate in the employee share
option plan.
Performance-based remuneration
The size and activities of the Company preclude any formal performance-based remuneration component other than at
the Directors discretion as has been discussed previously.
Company performance, shareholder wealth and Director and executive remuneration
The remuneration policy has been tailored to increase goal congruence between shareholders, Directors and Executives.
There have been two methods applied in achieving this aim, the first being a fixed market competitive salary, and the
second being the potential issue of options to Directors and Executives to encourage the alignment of personal and
shareholder interests.
In accordance with best practice corporate governance, the structure of Non-Executive Director and Executive
remuneration is separate and distinct.
Key Management Personnel Remuneration Policy
The remuneration structure for KMP is to be based on a number of factors, including length of service, particular
experience of the individual concerned, and overall performance of the Company. The contracts for service between the
Company and KMP are on a continuing basis, the terms of which are not expected to change in the immediate future.
Employment Contracts
Executive
Director
Contract
Commencement
Contract
Termination
Remuneration
Notice period
A Mulligan1
7 August 2012
7 August 2015
$250,000
3 months
G Wallace
Continuing
30 June 2015
$189,000
3 months
Termination
entitlement
3 months’ pay in
lieu of notice
3 months’ pay in
lieu of notice
In addition, each Executive Director is entitled to the statutory 9.5% superannuation guarantee.
(1) Contract is with Inverse Activity Pty Ltd, a company which Allan Mulligan is a director and shareholder.
7
DIRECTORS’ REPORT - Continued
Table 1 details the nature and amount of remuneration for each Director of Walkabout Resources Ltd. There are no Executives who aren’t Directors.
Remuneration of Key Management Personnel
Table 1: Directors’ remuneration for the years ended 30 June 2014 and 30 June 2013
30 June 2014
Short-term Benefits
Post-
employment
Benefits
Other Long-
term Benefits
Share-based Payment
Total
Performance
Related
Salary and fees
Bonuses
Non-cash
benefit
Other
Superannuation
Long-service Leave
Equity
Options
$
Mr Allan Mulligan1
273,734
Mr Geoffrey Wallace
156,288
Mr Peter Batten
32,500
462,522
$
-
-
-
-
$
-
-
-
-
$
-
-
-
-
$
-
14,457
-
14,457
$
-
-
-
-
$
-
-
-
-
$
-
-
-
-
$
273,734
170,745
32,500
476,979
%
-
-
-
30 June 2013
Short-term Benefits
Post-
employment
Benefits
Other Long-
term Benefits
Share-based Payment
Total
Performance
Related
Salary and fees
Bonuses
Non-cash
benefit
Other
Superannuation
Long-service Leave
Equity
Options
$
Mr Allan Mulligan1
246,826
Mr Geoffrey Wallace
189,000
Mr Peter Batten
Mr George Kenway2
Mr Chris Mason3
40,000
60,000
87,500
623,326
(1) Appointed 7 August 2012
(2) Retired 30 June 2013
(3) Resigned 27 July 2012
$
-
-
-
-
-
-
$
-
-
-
-
-
-
$
-
-
-
-
-
-
$
-
17,010
-
-
7,875
24,885
$
-
-
-
-
-
-
8
$
-
-
-
-
-
$
-
-
-
-
-
-
$
246,826
206,010
40,000
60,000
95,375
648,211
%
-
-
DIRECTORS’ REPORT - Continued
No options issued as compensation were exercised during the year by Directors and Executives.
Shareholdings of Key Management Personnel
Ordinary Shares
30 June 2014
Directors
Balance at beginning of
period
Number
Granted as
remuneration
Number
Purchased
Net Change Other
Balance at end of period
Balance held nominally
Number
Number
Number
Number
Allan Mulligan
Geoffrey Wallace
Peter Batten
64,803,159
70,652,249
578,025
30 June 2013
Directors
Balance at beginning of
period
Number
Granted as
remuneration
Number
Allan Mulligan
Geoffrey Wallace
Peter Batten
George Kenway
Christopher Mason
30,902,855
36,469,352
578,025
35,733,977
1,887,801
-
-
-
-
-
-
-
2,495,698
3,000,000
1,500,000
2,495,698
3,000,000
1,500,000
67,298,857
73,652,249
2,078,025
2,371,250
71,818,916
2,078,025
On Exercise of Options
Number
Net Change
Other
Number
Balance at end
of period
Number
Balance held nominally
Number
-
-
-
-
33,900,264
34,182,897
-
33,897,544
-
64,803,159
70,652,249
578,025
69,631,521
N/A
-
70,652,249
578,025
69,631,521
-
All equity transactions with key management personnel other than those arising from the exercise of remuneration options have been entered into under terms and conditions no more favourable
than those the Group would have adopted if dealing at arm's length.
9
DIRECTORS’ REPORT - Continued
Performance Shares
30 June 2014
Directors
Balance at beginning
of period
Number
Granted as remuneration On Exercise of Options
Net Change Other
Balance at end of period
Balance held nominally
Number
Number
Number
Number
Number
Allan Mulligan
Geoffrey Wallace
-
-
-
-
-
-
-
-
-
-
30 June 2013
Directors
Allan Mulligan
Geoffrey Wallace
George Kenway
Balance at
beginning of
period
Number
706,198
706,198
706,198
Shareholdings of Key Management Personnel
Deferred Shares
Granted as remuneration
On Exercise of Options
Net Change Other
Balance at end of period
Balance held nominally
Number
Number
Number
Number
Number
-
-
-
-
-
-
(706,198)
(706,198)
(706,198)
-
-
-
30 June 2014
Directors
Balance at beginning
of period
Number
Granted as remuneration On Exercise of Options
Net Change Other
Balance at end of period
Balance held nominally
Number
Number
Number
Number
Number
Allan Mulligan
Geoffrey Wallace
-
-
-
-
-
-
-
-
-
-
30 June 2013
Directors
Allan Mulligan
Geoffrey Wallace
George Kenway
Balance at
beginning of
period
Number
2,500,000
2,500,000
2,500,000
Granted as remuneration
On Exercise of Options
Net Change Other
Balance at end of period
Balance held nominally
Number
Number
Number
Number
Number
-
-
-
-
-
-
(2,500,000)
(2,500,000)
(2,500,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
10
DIRECTORS’ REPORT - Continued
Option holdings of Key Management Personnel
Options
30 June 2014
Opening balance
Granted as
remuneration
Options
exercised
Net change Other (i)
Closing
balance
Balance
vested at 30
June
Vested but not
exercisable
Vested and
exercisable
Options vested
during year
Directors
Number
Number
Number
Number
Number
Number
Number
Number
Number
Allan Mulligan
Geoffrey Wallace
1,875,000
1,875,000
(i)
Includes lapsed
30 June 2013
Opening balance
Granted as
remuneration
Directors
Number
Number
Allan Mulligan
Geoffrey Wallace
George Kenway
3,750,000
3,750,000
3,750,000
(i)
Includes lapsed
Option holdings of Key Management Personnel
Deferred Options
30 June 2014
Opening balance
Granted as
remuneration
Directors
Number
Number
Allan Mulligan
Geoffrey Wallace
-
-
(i)
Includes forfeitures
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Options
exercised
Number
Options
exercised
Number
(1,875,000)
(1,875,000)
-
-
-
-
-
-
-
-
-
-
Net change Other (i)
Number
Closing
balance
Number
Balance
vested at 30
June
Number
Vested but not
exercisable
Vested and
exercisable
Options vested
during year
Number
Number
Number
(1,875,000)
(1,875,000)
(1,875,000)
1,875,000
1,875,000
1,875,000
1,875,000
1,875,000
1,875,000
-
-
-
1,875,000
1,875,000
1,875,000
-
-
-
Net change Other (i)
Number
Closing
balance
Number
Balance
vested at
30 June
Number
Vested but not
exercisable
Vested and
exercisable
Options vested
during year
Number
Number
Number
-
-
-
-
-
-
-
-
-
-
-
-
11
DIRECTORS’ REPORT - Continued
30 June 2013
Directors
Opening
balance
Number
Granted as
remuneration
Number
Options
exercised
Number
Net change Other (i)
Number
Closing
balance
Number
Balance vested
at 30 June
Number
Vested but not
exercisable
Number
Vested and
exercisable
Number
Options vested
during year
Number
Allan Mulligan
Geoffrey Wallace
George Kenway
2,500,000
2,500,000
2,500,000
-
-
-
-
-
-
(2,500,000)
(2,500,000)
(2,500,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(i)
Includes forfeitures
End of Remuneration Report
12
DIRECTORS’ REPORT - Continued
Directors’ meetings
The number of meetings of directors held during the year and the number of meetings attended by each Director were as
follows:
Number
of meetings
held
Number
eligible to
attend
Number
attended
Alan Mulligan
Peter Batten
Geoffrey Wallace
8
8
8
8
8
8
8
8
8
There were no meetings of the Audit and Remuneration Committees in the financial year.
Proceedings on Behalf of Company
No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings
to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of
those proceedings. The Company was not a party to any such proceedings during the year.
Auditor’s independence
Section 307C of the Corporations Act 2001 requires our auditors, HLB Mann Judd, 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 page 18 and forms part of this Directors’ Report for the year ended 30 June 2014.
Non-audit Services
Details of amounts paid or payable to the auditor for non-audit services provided during the year by the auditor are
outlined in Note 4 to the financial statements. The Directors are satisfied that the provision of non-audit services is
compatible with the general standard of independence for auditors imposed by the Corporations Act 2001.
The Directors are of the opinion that the services do not compromise the auditor’s independence as all non-audit services
have been reviewed to ensure that they do not impact the impartiality and objectivity of the auditor and none of the
services undermine the general principles relating to auditor independence as set out in Code of Conduct APES 110
Code of Ethics for Professional Accountants issued by the Accounting Professional & Ethical Standards Board.
Signed in accordance with a resolution of the Board of Directors.
Geoffrey Wallace
Director
30 September 2014
13
DIRECTORS’ REPORT - Continued
Competent Person – Dr Ian D. Blayden
The information in this report that relates to Coal Resources at Takatokwane is based on information compiled by Dr Ian
D. Blayden of Geological and Management Resources Pty Ltd which provides geological consulting services to Optiro Pty
Ltd. Dr Blayden is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which 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 by the 2012 edition of the “Australasian Code for the Reporting of Exploration
Results, Mineral Resources and Ore Reserves”. Dr Blayden consents to the inclusion in the document of the information
in the form and context in which it appears.
Competent Person – Mr Alan Golding
The information in this report that relates to Coal Resources and exploration results at Takatokwane South is based on
data compiled by Mr Alan Golding who is a member of the South African Geological Society, the South African Institute of
Engineering Geologists and a Fellow of the Geological Society of London. Mr Golding has sufficient experience relevant
to the style of mineralisation and the type of deposit under consideration to qualify as a competent person as defined in
the 2012 edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves.
Mr Golding consents to the inclusion in this announcement of the matters based on his information in the form and context
in which they appear.
Competent Person – Mr Andrew Cunningham
The information in this report that relates to exploration results in Tanzania is based on data compiled by Mr Andrew
Cunningham who is a member of the Australian Institute of Geoscientists, and is a independent consultant to the
Company. Mr Cunningham has sufficient experience relevant to the style of mineralisation and the type of deposit under
consideration to qualify as a competent person as defined in the 2012 edition of the Australasian Code for the Reporting
of Exploration Results, Mineral Resources and Ore Reserves. Mr Cunningham consents to the inclusion in this
announcement of the matters based on his information in the form and context in which they appear.
14
CORPORATE GOVERNANCE STATEMENT
The Board of Directors of Walkabout Resources Ltd is responsible for establishing the corporate governance framework
of the Group having regard to the ASX Corporate Governance Council (‘CGC’) published guidelines as well as its
corporate governance principles and recommendations.
The CGC’s published guidelines are as follows:
Principle 1.
Lay solid foundations for management and oversight
Principle 2.
Structure the board to add value
Principle 3.
Promote ethical and responsible decision making
Principle 4.
Safeguard integrity in financial reporting
Principle 5.
Make timely and balanced disclosure
Principle 6.
Respect the rights of shareholders
Principle 7.
Recognise and manage risk
Principle 8.
Remunerate fairly and responsibly
Walkabouts’ corporate governance practices were in place throughout the year ended 30 June 2014 and were fully
compliant with the Council’s best practice recommendations except to the extent outlined below.
Lay Solid Foundations for Management and Oversight
There are no Executives or management other than board members. Upon the appointment of Executives who are not
Directors, relevant policies will be established.
Structure of the Board
The skills, experience and expertise relevant to the position of Director held by each Director in office at the date of the
annual report is included in the Directors’ Report. Directors of Walkabout Resources Ltd are considered to be independent
when they are independent of management and free from any business or other relationship that could materially interfere
with – or could reasonably be perceived to materially interfere with – the exercise of their unfettered and independent
judgment.
In the context of Director independence, 'materiality' is considered from both the Company and individual Director
perspective. The determination of materiality requires consideration of both quantitative and qualitative elements. An item
is presumed to be quantitatively immaterial if it is equal to or less than 5% of the appropriate base amount. It is presumed
to be material (unless there is qualitative evidence to the contrary) if it is equal to or greater than 10% of the appropriate
base amount. Qualitative factors considered include whether a relationship is strategically important, the competitive
landscape, the nature of the relationship and the contractual or other arrangements governing it and other factors that
point to the actual ability of the director in question to shape the direction of the Company’s loyalty.
In accordance with the definition of independence above, and the materiality thresholds set, the following Directors of
Walkabout Resources Ltd are considered to be independent:
At the date of this report:
Name
Position
Mr Peter Batten
Non-Executive Director
There are procedures in place, agreed by the Board, to enable Directors in the furtherance of their duties to seek
independent professional advice at the Company’s expense.
The term in office held by each Director in office at the date of this report is as follows:
Name
Term in Office
Mr Allan Mulligan
Mr Peter Batten
Mr Geoffrey Wallace
2 years
3 years
3.3 years
15
CORPORATE GOVERNANCE STATEMENT - Continued
Audit Committee
The current Audit Committee have not yet met to establish committee responsibilities. It is anticipated that the Audit
Committee, will operate under a charter approved by the Board. It is the Board’s responsibility to ensure that an effective
internal control framework exists within the entity. This includes internal controls to deal with both the effectiveness and
efficiency of significant business processes, the safeguarding of assets, the maintenance of proper accounting records,
and the reliability of financial information as well as non-financial considerations such as the benchmarking of operational
key performance indicators. The Board has delegated responsibility for establishing and maintaining a framework of
internal control and ethical standards to the Audit Committee.
The Committee will provide the Board with additional assurance regarding the reliability of financial information for
inclusion in the financial reports.
The members of the Audit Committee during the year were:
Mr Peter Batten
Mr Allan Mulligan
There were no meetings during the year.
Risk
The identification and effective management of risk is viewed as an essential part of the Company’s approach to creating
long-term shareholder value.
The Board determines the Company’s risk profile and is responsible for overseeing and approving risk management
strategy and policies, internal compliance and internal control. The Board has taken the view that it is crucial for all Board
members to be a part of this process and as such has not established a separate risk management committee.
The tasks of undertaking and assessing risk management and internal control effectiveness are delegated to
management, including responsibility for the day to day design and implementation of the Company’s risk management
and internal control system.
Nomination and Remuneration
It is the Company’s objective to provide maximum stakeholder benefit from the retention of a high quality Board and
executive team by remunerating Directors and key executives fairly and appropriately with reference to relevant
employment market conditions.
The expected outcomes of the remuneration structure are:
Retention and motivation of key executives;
Attraction of high quality management to the Company; and
Performance incentives that allow Executives to share the success of Walkabout Resources Limited.
For a full discussion of the Company’s remuneration philosophy and framework and the remuneration received by
Directors and Executives in the current period please refer to the remuneration report, which is contained within the
Directors’ Report.
There is no scheme to provide retirement benefits, other than statutory superannuation, to Non-Executive Directors.
The Board is responsible for determining and reviewing compensation arrangements for the directors themselves and the
chief executive officer and executive team. The Board has established a joint Nomination and Remuneration Committee,
comprising two Non-Executive Directors.
Members of the committee throughout the year were:
Mr Peter Batten
Mr Allan Mulligan
There were no meetings during the year.
16
CORPORATE GOVERNANCE STATEMENT - Continued
Diversity
The Company has a diversity policy suitable for its operations size and the industry it operates in. It strongly believes that
the promotion of diversity on its Board, senior executives and within the organisation adds to the strength of the Company.
The Company recognises the value contributed by employing people with varying skills, cultural backgrounds, ethnicity
and experience and believes its diverse workforce is a key to its continued growth, improved productivity and
performance.
The Company values and embraces the diversity of its employees and are committed to creating an inclusive workplace
where everyone is treated equally and fairly and where discrimination, harassment and inequity are not tolerated. The
Company is committed to fostering diversity at all levels.
Other Information
The Company’s corporate governance practices and policies are publicly available at the Company’s registered office.
The policies have also been posted on the Company’s website, www.wkt.com.au.
17
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the consolidated financial report of Walkabout Resources Ltd
for the year ended 30 June 2014, I declare that to the best of my knowledge and belief,
there have been no contraventions of:
a) the auditor independence requirements of the Corporations Act 2001 in relation to
the audit; and
b) any applicable code of professional conduct in relation to the audit.
Perth, Western Australia
30 September 2014
N G Neill
Partner
HLB Mann Judd (WA Partnership) ABN 22 193 232 714
Level 4, 130 Stirling Street Perth WA 6000. PO Box 8124 Perth BC 6849 Telephone +61 (08) 9227 7500. Fax +61 (08) 9227 7533.
Email: hlb@hlbwa.com.au. Website: http://www.hlb.com.au
Liability limited by a scheme approved under Professional Standards Legislation
HLB Mann Judd (WA Partnership) is a member of
International, a worldwide organisation of accounting firms and business advisers.
18
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2014
Revenue from continuing operations
2
16,663
96,651
Note
Consolidated
2014
$
2013
$
Depreciation and amortisation expense
Occupancy costs
Legal and compliance fees
Administration expenses
Consulting fees
Professional fees
Other expenses
Exploration costs written off
Loss on sale of assets
Foreign exchange loss
Loss before income tax
Income tax expense
(26,406)
(124,896)
(63,729)
(101,730)
(276,339)
(97,922)
(108,703)
(743,752)
(12,120)
(23,913)
(119,768)
(100,261)
(347,367)
(232,663)
(75,458)
(78,543)
(369,065)
-
-
(19,103)
(1,538,934)
(1,269,490)
3
-
-
Net loss from continuing operations
(1,538,934)
(1,269,490)
Loss for the year
(1,538,934)
(1,269,490)
Other comprehensive income
Exchange differences on translation of foreign operations
Other comprehensive income for the year, net of tax
(235,394)
(235,394)
7,409
7,409
Total comprehensive loss for the year
(1,774,328)
(1,262,081)
Earnings Per Share
Basic and diluted loss per share (cents per share)
5
(0.21)
(0.21)
The accompanying notes form part of these financial statements.
19
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2014
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Trade and other receivables
Plant and equipment
Deferred exploration expenditure
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Provisions
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Note
Consolidated
2014
$
2013
$
6
7
7
8
9
10
11
12
420,556
36,589
457,145
35,742
53,819
1,765,075
167,884
1,932,959
35,742
93,888
11,963,148
11,364,276
12,052,709
11,493,906
12,509,854
13,426,865
200,621
33,932
234,553
234,553
253,083
28,753
281,836
281,836
12,275,301
13,145,029
47,052,059
46,147,459
(228,037)
218,977
(34,548,721)
(33,221,407)
12,275,301
13,145,029
The accompanying notes form part of these financial statements.
20
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR YEAR ENDED 30 JUNE 2014
Consolidated
Issued Capital Accumulated
Options
Losses
Reserve
Total
Foreign
Currency
Translation
Reserve
$
$
$
$
$
Balance as at 1 July 2013
46,147,459
(33,221,407)
211,620
7,357 13,145,029
Net loss for the year
Exchange differences arising on
translation of foreign operations
Total comprehensive loss for the
year
Shares issued during the year
Transaction costs
-
-
-
(1,538,934)
-
(1,538,934)
937,000
(32,400)
-
-
-
-
-
Transfer of expired options reserve
-
211,620
(211,620)
-
(1,538,934)
(235,394)
(235,394)
(235,394)
(1,774,328)
-
-
937,000
(32,400)
-
Balance as at 30 June 2014
47,052,059
(34,548,721)
-
(228,037) 12,275,301
Balance as at 1 July 2012
44,647,459
(31,951,917)
211,620
(52) 12,907,110
Net loss for the year
Exchange differences arising on
translation of foreign operations
Total comprehensive loss for the
year
-
-
-
(1,269,490)
-
(1,269,490)
Shares issued during the year
1,500,000
Transaction costs
-
-
-
-
-
-
-
-
-
(1,269,490)
7,409
7,409
7,409
(1,262,081)
-
-
1,500,000
-
Balance as at 30 June 2013
46,147,459
(33,221,407)
211,620
7,357 13,145,029
The accompanying notes form part of these financial statements.
21
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2014
Note
Consolidated
2014
$
2013
$
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Interest received
Net cash used in operating activities
14
CASH FLOWS FROM INVESTING ACTIVITIES
Exploration and evaluation expenditure
Purchase of property, plant and equipment
Proceeds of disposal of property, plant and equipment
Refund of security bonds
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares
Payments relating to capital raising
Net cash provided by financing activities
Net (decrease) / increase in cash held
Cash at beginning of financial year
Effect of foreign currency on cash balances
Cash at end of financial year
6
6
(957,943)
17,794
(940,149)
(949,658)
96,531
(853,127)
(1,314,902)
(1,502,215)
-
11,504
41,000
(52,494)
-
20,000
(1,262,398)
(1,534,709)
887,000
(32,400)
854,600
-
-
-
(1,347,947)
(2,387,836)
1,765,075
4,154,226
-
3,428
420,556
-
(1,315)
1,765,075
The accompanying notes form part of these financial statements.
22
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
(a)
Basis of Preparation
These financial statements are general purpose financial statements, which have been prepared in accordance with
the requirements of the Corporations Act 2001, Accounting Standards and Interpretations and comply with other
requirements of the law.
The accounting policies detailed below have been consistently applied to all of the years presented unless
otherwise stated. The financial statements are for the consolidated entity consisting of Walkabout Resources Ltd
and its subsidiaries.
The financial report has also been prepared on a historical cost basis. Cost is based on the fair values of the
consideration given in exchange for assets.
The financial statements are presented in Australian dollars.
The Company is a listed public company, incorporated in Australia and operating in Australia, Botswana, Tanzania
and Malawi. The entity’s principal activities are mineral exploration.
(b)
Adoption of new and revised standards
(i) Standards and interpretations adopted with no effect on the financial statements
In the year ended 30 June 2014, the Directors have reviewed all of the new and revised Standards and
Interpretations issued by the AASB that are relevant to Walkabout Resources Ltd’s operations and effective for the
current annual reporting period. It has been determined by the Directors’ that there is no impact, material or
otherwise of the new and revised standards and interpretation on its business and, therefore, no change is
necessary to Group accounting policies.
.
Standards and interpretations affecting the reported results or financial position
There are no new and revised Standards and Interpretations adopted in these financial statements affecting the
reported results or financial position.
Standards and Interpretations in issue not yet adopted
The Directors also reviewed all new Standards and Interpretations that have been issued but are not yet effective
for the year ended 30 June 2014. As a result of this review the Directors have determined that there is no impact,
material or otherwise, of the new and revised Standards and Interpretations on Walkabout Resources Ltd’s
business and, therefore, no change necessary to Group accounting policies.
(ii) Statement of Compliance
The financial report was authorised for issue on 30 September 2014.
The financial report complies with Australian Accounting Standards, which include Australian equivalents to
International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial report,
comprising the financial statements and notes thereto, complies with International Financial Reporting Standards
(IFRS).
(c)
Basis of Consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Walkabout
Resources Ltd (‘the Company or parent entity’) as at 30 June 2014 and the results of all subsidiaries for the year
then ended. Walkabout Resources Ltd and its subsidiaries are referred to in this financial report as the Group or the
consolidated entity.
The financial statements of the subsidiaries are prepared for the same reporting period as the parent entity, using
consistent accounting policies.
In preparing the consolidated financial statements, all intercompany balances and transactions, income and
expenses and profit and losses resulting from intra-group transactions have been eliminated in full.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group and cease to be
consolidated from the date on which control is transferred out of the Group. Control exists where the company has
the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The
existence and effect of potential voting rights that are currently exercisable or convertible are considered when
assessing when the Group controls another entity.
23
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES - continued
(c)
(d)
(e)
Basis of Consolidation - continued
Business combinations have been accounted for using the acquisition method of accounting.
Unrealised gains or transactions between the Group and its associates are eliminated to the extent of the Group’s
interests in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an
impairment of the asset transferred. Accounting policies of associates have been changed where necessary to
ensure consistency with the policies adopted by the Group.
Non-controlling interests represent the portion of profit or loss and net assets in subsidiaries not held by the Group
and are presented separately in the statement of comprehensive income and within equity in the consolidated
statement of financial position. Losses are attributed to the non-controlling interests even if that results in a deficit
balance.
The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with
equity owners of the Group. A change in ownership interest results in an adjustment between the carrying amounts
of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference
between the amount of the adjustment to non-controlling interests and any consideration paid or received is
recognised within equity attributable to owners of Walkabout Resources Limited.
When the Group ceases to have control, joint control or significant influence, any retained interest in the entity is
remeasured to its fair value with the change in carrying amount recognised in profit or loss. The fair value is the
initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint
controlled entity or financial asset. In addition, any amounts previously recognised in other comprehensive income
in respect of that entity are accounted for as if the group had directly disposed of the related assets or liabilities.
This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss.
Critical accounting judgements and key sources of estimation uncertainty
The application of accounting policies requires the use of judgements, estimates and assumptions about carrying
values of assets and liabilities that are not readily apparent from other sources. The estimates and associated
assumptions are based on historical experience and other factors that are considered to be relevant. Actual results
may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions are recognised in the
period in which the estimate is revised if it affects only that period or in the period of the revision and future periods if
the revision affects both current and future periods.
Share-based payment transactions:
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the
equity instruments at the date at which they are granted. The fair value is determined by an external valuer using a
Black and Scholes model, using the assumptions detailed in Note 19.
Going Concern
The Group is involved in the exploration and evaluation of mineral tenements. Further expenditure will be required
upon these tenements to ascertain whether they contain economically recoverable reserves.
For the year ended 30 June 2014, the Group recorded a net loss of $1,538,934 (2013: $1,269,490) and a net cash
outflow of $1,347,947 (2013: outflow $2,387,836). At 30 June 2014, the Group had cash available of $420,556 and
exploration commitments of $2,131,400. Some of the exploration commitments may be deferred beyond twelve
months. In order to fully implement its exploration strategy, the Group will require additional funds.
Notwithstanding the above, the financial report has been prepared on the basis of accounting principles applicable
to a going concern, which assumes the commercial realisation of the future potential of the Company’s and Group’s
assets and the discharge of their liabilities in the normal course of business. The Board considers that the
Company is a going concern and recognises that additional funding will be required to ensure that the Company can
continue to develop their mineral exploration and evaluation assets during the twelve month period from the date of
this financial report.
Having carefully assessed the uncertainties relating to the likelihood of securing additional funding, the Group’s
ability to effectively manage their expenditures and cash flows from operations and the opportunity to farm out
participating interests in existing tenements, the Directors believe that the Group will continue to operate as a going
concern for the foreseeable future. Therefore the Directors consider it appropriate to prepare the financial report on
a going concern basis.
Should additional funding be unable to be obtained, the Directors are confident that the Company can remain a
going concern by the further reduction of various operating expenditure or deferral of exploration, however, these
circumstances indicate the existence of a material uncertainty which may cast doubt on the Company’s ability to
continue as a going concern.
24
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES - continued
(f)
(g)
Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the Board of Directors of Walkabout Resources Ltd.
Foreign Currency Translation
Both the functional and presentation currency of Walkabout Resources Ltd and its Australian subsidiaries is
Australian dollars. Each entity in the Group determines its own functional currency and items included in the
financial statements of each entity are measured using that functional currency.
Transactions in foreign currencies are initially recorded in the functional currency by applying the exchange rates
ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are
retranslated at the rate of exchange ruling at the balance date.
All exchange differences in the consolidated financial report are taken to the statement of comprehensive income.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rate as at the date of the initial transaction.
Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the
date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are
reported as part of the fair value gain or loss.
The functional currency of the foreign operations in Botswana, Tanzania and Malawi is Pula, Schillings and Kwacha
respectively.
As at the balance date the assets and liabilities of these subsidiaries are translated into the presentation currency of
Walkabout Resources Ltd at the rate of exchange ruling at the balance date and their statements of comprehensive
income are translated at the weighted average exchange rate for the year.
The exchange differences arising on the translation are taken directly to a separate component of equity, being
recognised in the foreign currency translation reserve.
On disposal of a foreign entity, the deferred cumulative amount recognised in equity relating to that particular
foreign operation is recognised in profit or loss
(h)
Revenue Recognition
Interest income
(i)
(j)
Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the
financial asset.
Leases
Operating lease payments are recognised as an expense on a straight line basis over the lease term, except where
another systematic basis is more representative of the time pattern in which economic benefits from the leased
asset are consumed.
Income Tax
The income tax expense or benefit for the period is the tax payable on the current period’s taxable income based on
the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities
attributable to temporary difference and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end
of the reporting period in the countries where the company’s subsidiaries and associates operate and generate
taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which
applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of
amounts expected to be paid to the tax authorities.
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be
recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those
that are enacted or substantively enacted by the balance date.
Deferred income tax is provided on all temporary differences at the balance date between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except:
• when the deferred income tax liability arises from the initial recognition of goodwill or of 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 profit nor taxable profit or loss; or
25
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES - continued
(j)
Income Tax - continued
• when the taxable temporary difference is associated with investments in subsidiaries, associates or interests in
joint ventures, and the timing of the reversal of the temporary difference can be controlled and it is probable that
the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax
assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the
deductible temporary differences and the carry-forward of unused tax credits and unused tax losses can be utilised,
except:
• when the deferred income tax asset relating to the deductible temporary difference arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the time of the
transaction, affects neither the accounting profit nor taxable profit or loss; or
• when the deductible temporary difference is associated with investments in subsidiaries, associates or interests
in joint ventures, in which case a deferred tax asset is only recognised to the extent that it is probable that the
temporary difference will reverse in the foreseeable future and taxable profit will be available against which the
temporary difference can be utilised.
The carrying amount of deferred income tax assets is reviewed at each balance date and reduced to the extent that
it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax
asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each balance date and are recognised to the extent
that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when
the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the balance date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in profit or loss.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and
the same taxation authority.
(k)
Other taxes
Revenues, expenses and assets are recognised net of the amount of GST and VAT except:
• when the GST and VAT incurred on a purchase of goods and services is not recoverable from the taxation
authority, in which case the GST and VAT is recognised as part of the cost of acquisition of the asset or as part
of the expense item as applicable; and
•
receivables and payables, which are stated with the amount of GST and VAT included.
The net amount of GST and VAT recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the statement of financial position.
Cash flows are included in the statement of cash flows on a gross basis and the GST and VAT component of cash
flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority,
are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST and VAT recoverable from, or payable to,
the taxation authority.
(l)
Impairment of assets
The Group assesses at each balance date whether there is an indication that an asset may be impaired. If any such
indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the
asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs to sell and its
value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are
largely independent of those from other assets or groups of assets and the asset's value in use cannot be estimated
to be close to its fair value. In such cases the asset is tested for impairment as part of the cash-generating unit to
which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount,
the asset or cash-generating unit is considered impaired and is written down to its recoverable amount.
26
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES - continued
(l)
(m)
(n)
(o)
Impairment of assets - continued
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
Impairment losses relating to continuing operations are recognised in those expense categories consistent with the
function of the impaired asset unless the asset is carried at revalued amount (in which case the impairment loss is
treated as a revaluation decrease).
An assessment is also made at each balance date as to whether there is any indication that previously recognised
impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is
estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates
used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case
the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the
carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for
the asset in prior years. Such reversal is recognised in profit or loss unless the asset is carried at revalued amount,
in which case the reversal is treated as a revaluation increase. After such a reversal the depreciation charge is
adjusted in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic
basis over its remaining useful life.
Cash and cash equivalents
Cash comprises cash at bank and in hand. Cash equivalents are short term, highly liquid investments that are
readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents
as defined above, net of outstanding bank overdrafts.
Trade and other receivables
Trade receivables are measured on initial recognition at fair value and are subsequently measured at amortised
cost using the effective interest rate method, less any allowance for impairment.
Impairment of trade receivables is continually reviewed and those that are considered to be uncollectible are written
off by reducing the carrying amount directly. An allowance account is used when there is objective evidence that
the Group will not be able to collect all amounts due according to the original contractual terms. Factors considered
by the Group in making this determination include known significant financial difficulties of the debtor, review of
financial information and significant delinquency in making contractual payments to the Group. The impairment
allowance is set equal to the difference between the carrying amount of the receivable and the present value of
estimated future cash flows, discounted at the original effective interest rate. Where receivables are short-term
discounting is not applied in determining the allowance.
The amount of the impairment loss is recognised in the Statement of Comprehensive Income within other expenses.
When a trade receivable for which an impairment allowance had been recognised becomes uncollectible in a
subsequent period, it is written off against the allowance account. Subsequent recoveries of amounts previously
written off are credited against other expenses in the statement of comprehensive income.
Financial assets
Financial assets in the scope of AASB 139 Financial Instruments: Recognition and Measurement are classified as
either financial assets at fair value through statement of comprehensive income, loans and receivables, held-to-
maturity investments, or available-for-sale investments, as appropriate. When financial assets are recognised
initially, they are measured at fair value, plus, in the case of investments not at fair value through profit or loss,
directly attributable transaction costs. The Group determines the classification of its financial assets after initial
recognition and, when allowed and appropriate, re-evaluates this designation at each financial year-end. All regular
way purchases and sales of financial assets are recognised on the trade date i.e. the date that the Group commits
to purchase the asset. Regular way purchases or sales are purchases or sales of financial assets under contracts
that require delivery of the assets within the period established generally by regulation or convention in the
marketplace.
(i) Financial assets at fair value through profit or loss
Financial assets classified as held for trading are included in the category ‘financial assets at fair value through
profit or loss’. Financial assets are classified as held for trading if they are acquired for the purpose of selling in the
near term. Derivatives are also classified as held for trading unless they are designated as effective hedging
instruments. Gains or losses on investments held for trading are recognised in profit or loss.
27
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES - continued
(o)
Financial assets - continued
(ii) Held-to-maturity investments
Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified as held-to-
maturity when the Group has the positive intention and ability to hold to maturity. Investments intended to be held
for an undefined period are not included in this classification. Investments that are intended to be held-to-maturity,
such as bonds, are subsequently measured at amortised cost. This cost is computed as the amount initially
recognised minus principal repayments, plus or minus the cumulative amortisation using the effective interest
method of any difference between the initially recognised amount and the maturity amount. This calculation includes
all fees and points paid or received between parties to the contract that are an integral part of the effective interest
rate, transaction costs and all other premiums and discounts. For investments carried at amortised cost, gains and
losses are recognised in profit or loss when the investments are derecognised or impaired, as well as through the
amortisation process.
(iii) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted
in an active market. Such assets are carried at amortised cost using the effective interest method. Gains and losses
are recognised in profit or loss when the loans and receivables are derecognised or impaired, as well as through the
amortisation process.
(iv) Available-for-sale investments
Available-for-sale investments are those non-derivative financial assets that are designated as available-for-sale or
are not classified as any of the three preceding categories. After initial recognition available-for sale investments are
measured at fair value with gains or losses being recognised as a separate component of equity until the investment
is derecognised or until the investment is determined to be impaired, at which time the cumulative gain or loss
previously reported in equity is recognised in profit or loss.
The fair value of investments that are actively traded in organised financial markets is determined by reference to
quoted market bid prices at the close of business on the balance date. For investments with no active market, fair
value is determined using valuation techniques. Such techniques include using recent arm’s length market
transactions, reference to the current market value of another instrument that is substantially the same, discounted
cash flow analysis and option pricing models.
(p)
Derecognition of financial assets and financial liabilities
(i) Financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is
derecognised when:
•
•
the Group retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in
full without material delay to a third party under a ‘pass-through’ arrangement; or
the rights to receive cash flows from the asset have expired;
•
the Group has transferred its rights to receive cash flows from the asset and either:
has transferred substantially all the risks and rewards of the asset, or
has neither transferred nor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.
(a)
(b)
When the Group has transferred its rights to receive cash flows from an asset and has neither transferred nor
retained substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is
recognised to the extent of the Group’s continuing involvement in the asset. Continuing involvement that takes the
form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset
and the maximum amount of consideration received that the Group could be required to repay.
When continuing involvement takes the form of a written and/or purchased option (including a cash-settled option or
similar provision) on the transferred asset, the extent of the Group’s continuing involvement is the amount of the
transferred asset that the Group may repurchase, except that in the case of a written put option (including a cash-
settled option or similar provision) on an asset measured at fair value, the extent of the Group’s continuing
involvement is limited to the lower of the fair value of the transferred asset and the option exercise price.
(ii) Financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms, or
the terms of an existing liability are substantially modified, such an exchange or modification is treated as a de
recognition of the original liability and the recognition of a new liability, and the difference in the respective carrying
amounts is recognised in profit or loss.
28
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES - continued
(q)
Impairment of financial assets
The Group assesses at each balance date whether a financial asset or group of financial assets is impaired.
(i) Financial assets carried at amortised cost
If there is objective evidence that an impairment loss on loans and receivables carried at amortised cost has been
incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present
value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the
financial asset’s original effective interest rate (i.e. the effective interest rate computed at initial recognition). The
carrying amount of the asset is reduced either directly or through use of an allowance account. The amount of the
loss is recognised in profit or loss.
The Group first assesses whether objective evidence of impairment exists individually for financial assets that are
individually significant, and individually or collectively for financial assets that are not individually significant. If it is
determined that no objective evidence of impairment exists for an individually assessed financial asset, whether
significant or not, the asset is included in a group of financial assets with similar credit risk characteristics and that
group of financial assets is collectively assessed for impairment. Assets that are individually assessed for
impairment and for which an impairment loss is or continues to be recognised are not included in a collective
assessment of impairment.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related
objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is
reversed. Any subsequent reversal of an impairment loss is recognised in profit or loss, to the extent that the
carrying value of the asset does not exceed its amortised cost at the reversal date.
(ii) Financial assets carried at cost
If there is objective evidence that an impairment loss has been incurred on an unquoted equity instrument that is
not carried at fair value (because its fair value cannot be reliably measured), or on a derivative asset that is linked to
and must be settled by delivery of such an unquoted equity instrument, the amount of the loss is measured as the
difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at
the current market rate of return for a similar financial asset.
(iii) Available-for-sale investments
If there is objective evidence that an available-for-sale investment is impaired, an amount comprising the difference
between its cost (net of any principal repayment and amortisation) and its current fair value, less any impairment
loss previously recognised in profit or loss, is transferred from equity to the statement of comprehensive income.
Reversals of impairment losses for equity instruments classified as available-for-sale are not recognised in profit.
Reversals of impairment losses for debt instruments are reversed through profit or loss if the increase in an
instrument's fair value can be objectively related to an event occurring after the impairment loss was recognised in
profit or loss.
(r)
Plant and equipment
Plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses.
Depreciation is calculated on a diminishing value basis over the estimated useful life of the assets at the following
rates:
Plant and equipment – 20%
Computer equipment – 30%
Motor Vehicles – 33.3%
Furniture and Fittings – 22.2%
The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at
each financial year end.
(i) Impairment
The carrying values of plant and equipment are reviewed for impairment at each balance date, with recoverable
amount being estimated when events or changes in circumstances indicate that the carrying value may be
impaired.
29
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES – continued
(r)
(s)
(t)
Plant and equipment – continued
(i) Impairment - continued
The recoverable amount of plant and equipment is the higher of fair value less costs to sell and value in use. In
assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset.
For an asset that does not generate largely independent cash inflows, recoverable amount is determined for the
cash-generating unit to which the asset belongs, unless the asset's value in use can be estimated to be close to its
fair value.
Impairment exists when the carrying value of an asset or cash-generating units exceeds its estimated recoverable
amount. The asset or cash-generating unit is then written down to its recoverable amount.
For plant and equipment, impairment losses are recognised in the statement of comprehensive income in the cost
of sales line item.
(ii) Derecognition and disposal
An item of property, plant and equipment is derecognised upon disposal or when no further future economic
benefits are expected from its use or disposal.
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in profit or loss in the year the asset is derecognised.
Trade and other payables
Trade payables and other payables are carried at amortised cost and represent liabilities for goods and services
provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes
obliged to make future payments in respect of the purchase of these goods and services. Trade and other payables
are presented as current liabilities unless payment is not due within 12 months.
Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not recognised for
future operating losses.
When the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the
reimbursement is recognised as a separate assets but only when the reimbursement is virtually certain. The
expense relating to any provision is presented in the statement of comprehensive income net of any
reimbursement.
Provisions are measured at the present value or management’s best estimate of the expenditure required to settle
the present obligation at the end of the reporting period.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects the risks specific to the liability.
When discounting is used, the increase in the provision due to the passage of time is recognised as a borrowing
cost.
(u)
Employee leave benefits
(i) Wages, salaries, annual leave and sick leave
Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave
expected to be settled within 12 months of the balance date are recognised in other payables in respect of
employees’ services up to the balance date, they are measured at the amounts expected to be paid when the
liabilities are settled. Liabilities for non-accumulating sick leave are recognised when the leave is taken and are
measured at the rates paid or payable.
(ii) Long service leave
The liability for long service leave is recognised in the provision for employee benefits and measured as the present
value of expected future payments to be made in respect of services provided by employees up to the balance
date. Consideration is given to expect future wage and salary levels, experience of employee departures, and
period of service. Expected future payments are discounted using market yields at the balance date on national
government bonds with terms to maturity and currencies that match, as closely as possible, the estimated future
cash outflows.
30
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES – continued
(v)
Share-based payment transactions
Equity settled transactions:
The Group provides benefits to employees (including senior executives) of the Group in the form of share-based
payments, whereby employees render services in exchange for shares or rights over shares (equity-settled
transactions).
The cost of these equity-settled transactions with employees is measured by reference to the fair value of the
equity instruments at the date at which they are granted.
The fair value is determined by using a Black-Scholes model, further details of which are given in Note 19.
In valuing equity-settled transactions, no account is taken of any performance conditions, other than conditions
linked to the price of the shares of Walkabout Resources Ltd (market conditions) if applicable.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the
period in which the performance and/or service conditions are fulfilled, ending on the date on which the relevant
employees become fully entitled to the award (the vesting period).
The cumulative expense recognised for equity-settled transactions at each balance date until vesting date reflects
(i) the extent to which the vesting period has expired and (ii) the Group’s best estimate of the number of equity
instruments that will ultimately vest. No adjustment is made for the likelihood of market performance conditions
being met as the effect of these conditions is included in the determination of fair value at grant date. The statement
of comprehensive income charge or credit for a period represents the movement in cumulative expense recognised
as at the beginning and end of that period. The dilutive effect, if any, of outstanding options is reflected as
additional share dilution in the computation of earnings per share (see Note 5).
(w)
(x)
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. Incremental costs directly attributable to the
issue of new shares or options for the acquisition of a new business are not included in the cost of acquisition as
part of the purchase consideration.
Earnings per share
Basic earnings per share is calculated as net profit or loss attributable to members of the parent, adjusted to
exclude any costs of servicing equity (other than dividends) and preference share dividends, divided by the
weighted average number of ordinary shares, adjusted for any bonus element.
Diluted earnings per share are calculated as net profit or loss attributable to members of the parent, adjusted for:
•
•
the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been
recognised as expenses; and
costs of servicing equity (other than dividends) and preference share dividends;
•
other non-discretionary changes in revenues or expenses during the period that would result from the dilution
of potential ordinary shares; divided by the weighted average number of ordinary shares and dilutive potential
ordinary shares, adjusted for any bonus element.
(y)
Exploration and evaluation
Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an
exploration and evaluation asset in the year in which they are incurred where the following conditions are satisfied:
(i) the rights to tenure of the area of interest are current; and
(ii) at least one of the following conditions is also met:
(a) the exploration and evaluation expenditures are expected to be recouped through successful development
and exploration of the area of interest, or alternatively, by its sale; or
(b) exploration and evaluation activities in the area of interest have not at the balance date reached a stage
which permits a reasonable assessment of the existence or otherwise of economically recoverable
reserves, and active and significant operations in, or in relation to, the area of interest are continuing.
31
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES – continued
(y)
(z)
Exploration and evaluation - continued
Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore, studies,
exploratory drilling, trenching and sampling and associated activities and an allocation of depreciation and
amortised of assets used in exploration and evaluation activities. General and administrative costs are only included
in the measurement of exploration and evaluation costs where they are related directly to operational activities in a
particular area of interest.
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the
carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The recoverable
amount of the exploration and evaluation asset (for the cash generating unit(s) to which it has been allocated being
no larger than the relevant area of interest) is estimated to determine the extent of the impairment loss (if any).
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised
estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the
carrying amount that would have been determined had no impairment loss been recognised for the asset in
previous years.
Where a decision has been made to proceed with development in respect of a particular area of interest, the
relevant exploration and evaluation asset is tested for impairment and the balance is then reclassified to
development.
Parent entity financial information
The financial information for the parent entity, Walkabout Resources Ltd, disclosed in note 16 has been prepared
on the same basis as the consolidated financial statements, except as set out below.
(i) Investments in subsidiaries, associates and joint venture entities
Investments in subsidiaries, associates and joint venture entities are accounted for at cost in the financial
statements of Walkabout Resources Limited. Dividends received from associates are recognised in the parent
entity’s profit or loss, rather than being deducted from the carrying amount of these investments.
(ii) Share-based payments
The grant by the company of options over its equity instruments to the employees of subsidiary undertakings in the
group is treated as a capital contribution to that subsidiary undertaking. The fair value of employee services
received, measured by reference to the grant date fair value, is recognised over the vesting period as an increase
to investment in subsidiary undertakings, with a corresponding credit to equity.
32
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
NOTE 2: REVENUE
Interest received
Total Revenue
Expenses
Foreign exchange losses
Depreciation
Exploration costs written off
NOTE 3: INCOME TAX EXPENSE
a. The components of income tax expense comprise:
The prima facie income tax expense on pre-tax accounting profit from
operations reconciles to the income tax expense in the financial
statements as follows:
Accounting profit before tax from continuing operations
Income tax expense / (benefit) calculated at 30%
Non-deductible expenses
Difference in tax rate of subsidiaries operating in other jurisdictions
Deferred tax assets and tax liabilities not recognised
Income tax expense reported in the consolidated statement of
comprehensive income
b. Unrecognised deferred tax balances
The following deferred tax assets and (liabilities) have not been brought
to account:
Deferred tax assets compromise:
Losses available for offset against future taxable income – revenue
Losses available for offset against future taxable income – capital
•
•
• Depreciation timing differences
• Share issue expenses
• Accrued expenses and liabilities
• Exploration expenditure capitalised
c. Income tax benefit not recognised direct in equity
• Share issue costs
33
Consolidated
2014
$
2013
$
16,663
16,663
-
26,406
743,752
96,651
96,651
19,103
23,913
369,065
(1,538,934)
(461,680)
31,013
415
430,252
-
3,981,515
22,497
6,166
51,900
15,062
(1,040,673)
3,036,467
(32,400)
(32,400)
(1,269,490)
(380,847)
76,021
5,642
299,184
-
4,164,195
212,295
3,086
118,034
16,725
(1,000,189)
3,514,186
-
-
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
NOTE: 4: AUDITORS REMUNERATION
Remuneration of the auditor for:
Auditing or reviewing the financial report – HLB Mann Judd
Taxation compliance services – HLB Mann Judd
NOTE 5: EARNINGS PER SHARE
Reconciliation of earnings to profit or loss
Loss used to calculate basic and dilutive EPS
Weighted average number of ordinary shares outstanding
during the year used in calculating basic EPS
Consolidated
2014
$
2013
$
34,000
46,450
80,450
40,425
6,250
46,675
(1,538,934)
(1,269,490)
No.
No.
721,009,162
566,150,744
Loss per share
As at 30 June 2014 the entity has recorded a loss. Therefore, potential ordinary shares on issue in relation to options are not
diluted and no information on diluted loss per share is presented.
(0.21) cents
(0.21) cents
NOTE 6: CASH AND CASH EQUIVALENTS
Cash at bank and in hand
NOTE: 7: TRADE AND OTHER RECEIVABLES
CURRENT
Other debtors
420,556
1,765,075
36,589
167,884
Other debtors in prior year includes $110,000 deposit held with the NAB as security over credit card balances and foreign
exchange fluctuations. The deposit expired in October 2013.
NON-CURRENT
Other debtors
NOTE 8: PLANT AND EQUIPMENT
PLANT AND EQUIPMENT
At cost
Accumulated depreciation
TOTAL PLANT AND EQUIPMENT
35,742
35,742
Consolidated
2014
$
2013
$
104,189
(50,370)
53,819
126,037
(32,149)
93,888
34
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
NOTE 8: PLANT AND EQUIPMENT – continued
a. Movements in Carrying Amounts
Movement in the carrying amounts for each class of plant and equipment between the beginning and the end of
the current financial year.
Balance at 30 June 2013
Additions
Disposals
Depreciation expense
Foreign currency translation effect
Balance at 30 June 2014
NOTE 9: DEFERRED EXPLORATION EXPENDITURE
NON-CURRENT
Costs carried forward in respect of:
Exploration and evaluation phase – at cost
Balance at beginning of year
Purchase of tenements
Expenditure incurred
Foreign currency translation effect
Expenditure written off
Carrying amount at end of year
Consolidated
2014
$
$
2013
$
$
93,888
-
(13,663)
(26,406)
-
53,819
65,726
52,494
-
(23,913)
(419)
93,888
Consolidated
2014
$
2013
$
11,364,276
8,649,237
50,000
1,500,000
1,482,215
(189,591)
(743,752)
1,633,549
(49,445)
(369,065)
11,963,148
11,364,276
Ultimate recovery of exploration and evaluation expenditure carried forward is dependent upon the recoupment of costs
through successful development and commercial exploitation, or alternatively, by sale of the respective areas.
NOTE 10: TRADE AND OTHER PAYABLES
CURRENT
Trade payables
Sundry payables and accrued expenses
Consolidated
2014
$
2013
$
123,143
77,478
200,621
154,426
98,657
253,083
35
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
NOTE 11: ISSUED CAPITAL
a) Ordinary Shares
(i) Issued and paid-up capital 798,978,489
(2013: 666,815,802) fully paid ordinary shares
47,052,059
46,147,459
Consolidated
2014
$
2013
$
2014
$
No. of
Shares
2013
$
No. of
Shares
(ii) Movements in issued capital
Opening balance
Issued for cash
666,815,802
46,147,459
546,815,788
44,647,459
124,700,000
887,000
-
-
Issued for tenement acquisition
7,462,687
50,000
120,000,014
1,500,000
Less costs of issues
Closing balance
798,978,489
47,084,459
666,815,802
46,147,459
-
(32,400)
-
-
798,978,489
47,052,059
666,815,802
46,147,459
(iii) Holders of ordinary shares have the right to receive dividends as declared and in the event of winding up the company,
to participate in the proceeds from the sale of all surplus assets in proportion to the number of shares held and the
amount paid up.
At shareholders’ meetings each ordinary share is entitled to one vote when a poll is called, otherwise each holder in
person or by proxy has one vote on a show of hands.
Ordinary shares have no par value and the Company does not have a limited amount of authorised capital.
b) Options over Ordinary Shares
As at the year end the Company had no share options.
Option issues
No options were issued during the year.
Option expiry
Options expired during the year as follows:
6,637,650
Exercisable at $0.10, expiry date 31 October 2013
5,000,000
Exercisable at $0.035, expiry date 30 November 2013
9,000,000
Exercisable at $0.08, expiry date 30 November 2013
36
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
NOTE 11: ISSUED CAPITAL – continued
c) Capital Management
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while
maximising the return to stakeholders through the optimisation of the debt and equity balance.
The Group’s overall strategy remains unchanged from 2013.
The capital structure of the Group consists of cash and cash equivalents and equity attributable to equity holders of the
parent, comprising issued capital, reserves and retained earnings.
None of the Group’s entities are subject to externally imposed capital requirements.
Operating cash flows are used to maintain and expand operations, as well as to make routine expenditures such as tax,
dividends and general administrative outgoings.
Gearing levels are reviewed by the Board on a regular basis in line with its target gearing ratio, the cost of capital and the
risks associated with each class of capital.
NOTE 12: RESERVES
Consolidated
2014
$
2013
$
Opening Balance 1 July
218,977
211,568
Transfer to accumulated losses – expired options
Foreign currency translation
Closing Balance 30 June
(211,620)
(235,394)
(228,037)
Option Reserve
The options reserve records items recognised as expenses on valuation of employee share options.
Opening Balance 1 July
Expired options transferred to accumulated losses
Closing Balance 30 June
211,620
(211,620)
-
-
7,409
218,977
211,620
-
211,620
Foreign Currency Translation Reserve
The foreign currency translation reserve records exchange differences arising on translation of foreign subsidiary accounts.
Opening Balance 1 July
Translation of foreign operations
Closing Balance 30 June
7,357
(235,394)
(228,037)
(52)
7,409
7,357
37
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
NOTE 13: SEGMENT REPORTING
Walkabout Resources Ltd operates predominantly in one industry and three geographical segments being the mining and
exploration industry in Australia, Botswana and Tanzania.
Segment Information
Identification of reportable segments
The Company has identified its operating segments based on the internal reports that are reviewed and used by the board of
directors in assessing performance and determining the allocation of resources.
The Company is managed primarily on the basis of its coal exploration in Botswana, other developing prospects in Tanzania
and its corporate activities. Operating segments are therefore determined on the same basis.
Reportable segments disclosed are based on aggregating operating segments where the segments are considered to have
similar economic characteristics.
Types of reportable segments
Coal
Segment assets, including acquisition cost of exploration licences and all expenses related to the tenements in Botswana
and Tanzania are reported in this segment.
Copper
Segment assets, including acquisition cost of exploration licences and all expenses related to the tenements in Tanzania are
reported in this segment
Corporate
Corporate, including treasury, corporate and regulatory expenses arising from operating an ASX listed entity. Segment
assets, including cash and cash equivalents, and investments in financial assets are reported in this segment.
Basis of accounting for purposes of reporting by operating segments
Accounting policies adopted
Unless stated otherwise, all amounts reported to the Board of Directors as the chief operating decision maker with respect
to operating segments are determined in accordance with accounting policies that are consistent to those adopted in the
annual financial statements of the Company.
Segment assets
Where an asset is used across multiple segments, the asset is allocated to the segment that receives the majority of
economic value from the asset. In the majority of instances, segment assets are clearly identifiable on the basis of their
nature and physical location.
Unless indicated otherwise in the segment assets note, deferred tax assets and intangible assets have not been allocated to
operating segments.
Segment liabilities
Liabilities are allocated to segments where there is a direct nexus between the incurrence of the liability and the operations
of the segment. Borrowings and tax liabilities are generally considered to relate to the Company as a whole and are not
allocated. Segment liabilities include trade and other payables.
Unallocated items
The following items of revenue, expense, assets and liabilities are not allocated to operating segments as they are not
considered part of the core operations of any segment:
•
•
•
•
•
net gains on disposal of available-for-sale investments;
income tax expense;
deferred tax assets and liabilities;
intangible assets; and
discontinuing operations.
38
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
NOTE 13: SEGMENT REPORTING – Continued
(i) Segment performance
Continuing Operations
Corporate
$
16,663
Coal
$
Gold
Copper
$
$
Total
$
-
-
-
16,663
(788,787)
(5,193)
(710)
(744,244)
(1,538,934)
(26,406)
16,663
-
-
452,321
10,986,347
(94,336)
(48,002)
-
-
-
-
-
-
(26,406)
16,663
1,071,136
12,509,854
(92,215)
(234,553)
(904,166)
(35,261)
2,453
(3,175)
(940,149)
-
(307,486)
35,435
(990,347)
(1,262,398)
854,600
96,651
-
-
-
-
(1,202,478)
(62,212)
(4,800)
(20,410)
96,651
(3,503)
-
-
-
-
-
-
-
-
854,600
96,651
(1,269,490)
(23,913)
96,651
1,968,755
10,651,797
20,000
806,313
13,426,865
(279,943)
(1,893)
-
(793,583)
(54,744)
(4,800)
-
-
(281,836)
(853,127)
(7,749)
(1,310,447)
(183,567)
(32,946)
(1,534,709)
-
-
-
-
-
30 June 2014
Segment revenue
Segment result
Included with segment
results:
•
•
Depreciation
Interest revenue
Segment assets
Segment liabilities
Cash flow Information
• Net cash flow from
operating activities
• Net cash flow from
investing activities
• Net cash flow from
financing activities
30 June 2013
Segment revenue
Segment result
Included with segment
results:
•
•
Depreciation
Interest revenue
Segment assets
Segment liabilities
Cash flow Information
• Net cash flow from
operating activities
• Net cash flow from
investing activities
• Net cash flow from
financing activities
39
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
NOTE 14: CASH FLOW INFORMATION
Reconciliation of net cash flow from operating activities with loss
after Income Tax
Loss after income tax
(1,538,934)
(1,269,490)
Cash flows excluded from loss attributable to operating activities
Consolidated
2014
$
2013
$
Non-cash flows in loss
- Exploration written off
- Depreciation
- Foreign exchange gain/(loss)
- Loss on sale of plant and equipment
Increase / (decrease) in trade and other receivables
Decrease / (increase) in trade payables and accruals
Net cash used in operating activities
743,752
26,406
-
12,120
(137,707)
(45,786)
(940,149)
369,095
23,913
19,103
-
(51,037)
55,289
(853,127)
NOTE 15: EVENTS AFTER THE BALANCE DATE
The Board are not aware of any matters or circumstances that have arisen since the end of the financial year which
significantly affected or could significantly affect the operations of the consolidated group, the results of those operations, or
the state of affairs of the consolidated group in future financial years.
NOTE 16: PARENT ENTITY DISCLOSURES
Financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Total liabilities
EQUITY
Issued capital
Option reserve
Accumulated losses
TOTAL EQUITY
Financial performance
2014
$
2013
$
398,460
11,971,170
1,721,743
11,700,400
12,369,630
13,422,143
94,329
94,329
277,114
277,114
47,052,059
-
46,147,459
211,620
(34,776,758)
(33,214,050)
12,275,301
13,145,029
Total comprehensive loss for the period
(1,774,328)
(1,179,200)
40
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
NOTE 17: RELATED PARTY TRANSACTIONS
Amounts owing to related parties at year end:
Other Related Parties
Peter Batten
Nown Pty Ltd as Director Fees for George Kenway
Consolidated
2014
$
6,875
-
2013
$
11,000
16,500
Transactions between related parties are on normal commercial terms which are no more favourable than those available to
other parties unless otherwise stated.
- Fees paid are for the provision of geological services to the Company.
The fees payable to Directors and options issued to Directors are disclosed in the Remuneration Report included in this
Financial Report. Key management personnel remuneration is disclosed in note 22.There are no other related party
transactions that have occurred throughout the year.
Controlled Entities Consolidated
Parent Entity:
Walkabout Resources Ltd
Subsidiaries of Walkabout Resources Ltd:
Reveal Resources Pty Ltd
Walkabout Resources Australia Pty Ltd
Walkabout Resources (Pty) Ltd
Wizard Investments(Pty) Ltd
Triprop Energy (Pty) Ltd
Walkabout Resources Pty Ltd
Walkabout Resources Pty Ltd
* Percentage of voting power is in proportion to ownership
Country of
Incorporation
Australia
Percentage Owned (%)*
2014
2013
Australia
Australia
Botswana
Botswana
Botswana
Malawi
Tanzania
100%
100%
100%
70%
40%
100%
100%
100%
100%
100%
70%
40%
100%
100%
41
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
NOTE 18: FINANCIAL INSTRUMENTS
a.
Financial Risk Management
The consolidated entity’s financial instruments consist of deposits with banks, accounts receivable and payable,
loans to a controlled entity and a cash advance to a third party.
i.
Treasury Risk Management
The Company’s funds are held with an Australian “four pillar” bank with the majority residing in a high
interest low transaction fee account.
The Company’s overall risk management strategy seeks to assist the consolidated group in meeting its
financial targets, whilst minimising potential adverse effects on financial performance.
Risk management policies are approved and reviewed by the Board on a regular basis. These include the
formulation of credit risk policies and future cash flow requirements.
Financial Risks
The main risks the group is exposed to through its financial instruments are interest rate risk, foreign
currency risk, liquidity risk and credit risk.
Foreign currency risk
The group is exposed to fluctuations in foreign currencies arising from the purchase of goods and services in
currencies other than the group’s measurement currency.
ii.
iii
b. Foreign Currency Risk Sensitivity
At 30 June 2014, there would have been an immaterial change in post-tax loss for the year as a result of a 0.1%
change in the value of the Australian Dollar to the Botswana Pula and an 8% change in the value of the Australian
Dollar to the Tanzanian Schilling. The effect on equity would be the same.
c. Liquidity risk
Ultimate responsibility for liquidity risk management rests with the board of directors, who have built an appropriate
liquidity risk management framework for the management of the Group’s short, medium and long-term funding and
liquidity management requirements. The Group manages liquidity risk by maintaining adequate reserves, banking
facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and matching
the maturity profiles of financial assets and liabilities.
The following table details the Company’s and the Group’s expected maturity for its non-derivative financial
liabilities. These have been drawn up based on undiscounted contractual maturities of the financial assets including
interest that will be earned on those assets except where the Group anticipates that the cash flow will occur in a
different period.
Consolidated
2014
Less than 1
month
1 – 3
Months
3 months
– 1 year
1 – 5
years
5+ years
$
$
$
$
-
-
$
-
-
Non-interest bearing
181,121
19,500
33,932
181,121
19,500
33,932
Consolidated
2013
Non-interest bearing
Less than 1
month
1 – 3 Months
3 months – 1
year
1 – 5
years
5+
years
$
$
$
226,083
226,083
27,000
27,000
28,753
28,753
$
-
-
$
-
-
42
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
NOTE 18: FINANCIAL INSTRUMENTS - continued
d.
Credit risk
The main exposure to credit risk as at 30 June 2014 relates to two separate advances made to the Company’s wholly
owned subsidiaries, Walkabout Resources Pty Ltd ($6,608,870) and Reveal Resources Pty Ltd ($448,105)
respectively. These separate advances have been made for the purpose of funding the day to day operations of the
subsidiaries and their exploration activities. The loans are unsecured. The risk associated with these advances is
exploration risk. These advances will not be repaid if the exploration does not provide an economic deposit. This risk
is mitigated by providing the best opportunity to make an economic discovery by utilising exploration professionals of
the highest standard and by obtaining the necessary funding.
e.
Interest Rate Risk
The consolidated entity’s exposure to interest rate risk, which is the risk that a financial instruments, value will
fluctuate as a result of changes in market interest rates and the effective weighted average interest rates on classes
of financial assets and financial liabilities are detailed in the liquidity risk section of this note.
f.
Interest Rate Risk Sensitivity
During 2014, if interest rates had been 5% higher or lower than the prevailing rates realised, with all other variables
held constant, there would have been an immaterial change in post-tax loss for the year. The impact on equity would
have been the same.
NOTE 19: SHARE BASED PAYMENTS
The following share-based payment arrangements existed at 30 June 2014:
Share Options Granted
2014
2013
Number
Weighted
average
exercise
price
$
Number
Options outstanding at the beginning of the year
20,637,650
0.08
27,275,300
Granted
Exercised
Expired
-
-
-
-
-
-
(20,637,650)
(0.08)
(6,637,650)
Options outstanding at the end of the year
-
-
20,637,650
There were no options outstanding at 30 June 2014.
NOTE 20: CONTINGENT LIABILITES
The Directors are not aware of any contingent liabilities as at the date of this report.
Weighted
average
exercise
price
$
0.07
-
-
0.05
0.08
43
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
NOTE 21: CAPITAL AND LEASING COMMITMENTS
Consolidated
2014
$
2013
$
72,474
-
72,474
92,214
184,428
276,642
2,131,400
2,131,400
1,665,860
1,665,860
a.
Property Lease Commitments
Payable — minimum lease payments
-
-
not later than 12 months
between 12 months and 5 years
b.
Capital Expenditure Commitments
Minimum expenditure commitments for mining tenements:
-
not later than 12 months
NOTE 22: DIRECTORS AND EXECUTIVES DISCLOSURES
Details of Key Management Personnel
Directors
Allan Mulligan
Geoffrey Wallace
Peter Batten
Managing Director
Executive Director and Company Secretary
Non-Executive Director
Key management personnel remuneration has been included in the Remuneration Report section of the Directors’ Report.
The totals of remuneration paid to KMP of the Company and the Group during the year are as follows:
Short-term employment benefits
Post-employment benefits
Other long-term benefits
Share-based payments
Total KMP compensation
Consolidated
2014
$
2013
$
462,522
14,457
-
-
623,326
24,885
-
-
476,979
648,211
44
DIRECTORS’ DECLARATION
1.
In the opinion of the directors of Walkabout Resources Ltd (the ‘Company’):
a.
the accompanying financial statements and notes are in accordance with the Corporations Act 2001
including:
i.
ii.
giving a true and fair view of the consolidated entity’s financial position as at 30 June 2014
and of their performance for the year then ended; and
complying with Australian Accounting Standards, the Corporations Regulations 2001,
professional reporting requirements and other mandatory requirements.
b.
there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable.
c. the financial statements and notes thereto are in accordance with International Financial Reporting
Standards issued by the International Accounting Standards Board
2.
This declaration has been made after receiving the declarations required to be made to the directors in
accordance with Section 295A of the Corporations Act 2001 for the financial year ended 30 June 2014.
This declaration is signed in accordance with a resolution of the Board of Directors.
Geoffrey Wallace
Director
Dated this 30th day of September 2014
45
INDEPENDENT AUDITOR’S REPORT
To the members of Walkabout Resources Ltd
Report on the Financial Report
We have audited the accompanying financial report of Walkabout Resources Ltd (“the company”),
which comprises the consolidated statement of financial position as at 30 June 2014, the
consolidated statement of comprehensive income, the consolidated statement of changes in equity
and the consolidated statement of cash flows for the year then ended, notes comprising a summary
of significant accounting policies and other explanatory information, and the directors’ declaration for
the consolidated entity. The consolidated entity comprises the company and the entities it controlled
at the year’s end or from time to time during the financial year.
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 Australian Accounting Standards and the Corporations Act
2001 and for such internal control as the directors determine is necessary to enable the preparation
of the financial report that is free from material misstatement, whether due to fraud or error.
In Note 1(b), the directors also state, in accordance with Accounting Standard AASB 101:
Presentation of Financial Statements, that the financial report complies with International Financial
Reporting Standards.
Auditor’s responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted
our audit in accordance with Australian Auditing Standards. Those standards require that we comply
with relevant ethical requirements relating to audit engagements and plan and perform the audit to
obtain reasonable assurance whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial report. The procedures selected depend on the auditor’s judgement, including the
assessment of the risks of material misstatement of the financial report, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the
company’s preparation and fair presentation of the financial report in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of accounting estimates made by the directors,
as well as evaluating the overall presentation of the financial report.
Our audit did not involve an analysis of the prudence of business decisions made by directors or
management.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Independence
In conducting our audit, we have complied with the independence requirements of the Corporations
Act 2001.
HLB Mann Judd (WA Partnership) ABN 22 193 232 714
Level 4, 130 Stirling Street Perth WA 6000. PO Box 8124 Perth BC 6849 Telephone +61 (08) 9227 7500. Fax +61 (08) 9227 7533.
Email: hlb@hlbwa.com.au. Website: http://www.hlb.com.au
Liability limited by a scheme approved under Professional Standards Legislation
HLB Mann Judd (WA Partnership) is a member of
International, a worldwide organisation of accounting firms and business advisers.
46
Auditor’s opinion
In our opinion:
(a) the financial report of Walkabout Resources Ltd is in accordance with the Corporations Act
2001, including:
(i) giving a true and fair view of the consolidated entity’s financial position as at 30 June
2014 and of its performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations
2001; and
(b) the financial report also complies with International Financial Reporting Standards as
disclosed in Note 1(b).
Emphasis of Matter
Without qualifying our opinion, we draw attention to Note 1(e) in the financial report which indicates
that the ability of the Group to continue as a going concern is dependent upon raising sufficient
funding. Accordingly, there is a material uncertainty that may cast significant doubt whether the
Group will be able to continue as a going concern and, therefore, whether it will be able to realise its
assets and extinguish its liabilities in the normal course of business and at the amounts stated in the
financial report.
Report on the Remuneration Report
We have audited the remuneration report included in the directors’ report for the year ended 30 June
2014. 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.
Auditor’s opinion
In our opinion the remuneration report of Walkabout Resources Ltd for the year ended 30 June 2014
complies with section 300A of the Corporations Act 2001.
HLB Mann Judd
Chartered Accountants
Perth, Western Australia
30 September 2014
N G Neill
Partner
47
ADDITIONAL INFORMATION FOR ASX LISTED PUBLIC COMPANIES
The following additional information is provided as at 15 September 2014.
1.
Shareholding
a. Distribution of Shareholders
Category (size of holding)
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
Number
Number of Holders Number of Shares
51
124
133
522
531
1,361
27,966
391,324
1,175,454
24,696,873
772,686,872
798,978,489
b.
The number of shareholdings held in less than marketable parcels is 743
c.
The names of the substantial shareholders listed in the holding company’s register as at 15 September
2014 are:
Shareholder
Brywall Pty Ltd
Nown Pty Ltd
Allan Mulligan
d. Voting Rights
Number
Ordinary
73,652,249
69,631,521
67,298,857
%
9.22
8.72
8.42
The voting rights attached to each class of equity security are as follows:
Ordinary shares
-
Each ordinary share is entitled to one vote when a poll is called, otherwise each member
present at a meeting or by proxy has one vote on a show of hands.
48
ADDITIONAL INFORMATION FOR ASX LISTED PUBLIC COMPANIES
e.
20 Largest Shareholders — Ordinary Shares
Name
Number of Ordinary Fully
Paid Shares Held
% Held of Issued
Ordinary Capital
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
2.
3.
4.
5.
Nown Pty Ltd
Brywall Pty Ltd
Mr Allan Mulligan
Trayburn Pty Ltd
Bellarine Gold Pl Ribblesdale Super Fund A/C
Marcolongo Nominees Pty Ltd
Marcolongo Nominees Pty Ltd
First Farley Pty Ltd
A N Super Pty Ltd
Adrian Darby Investment Pty Ltd
Red Wine Pty Ltd
Mr Colin James Martin + Ms Rhonda Doris Lutt
Brywall Pty Ltd
Custodial Services Ltd
Covic Joze
Morawa Michael
69,631,521
64,798,188
57,927,607
25,650,000
21,499,000
17,392,679
13,900,000
13,500,000
12,500,000
11,425,000
10,759,823
10,000,000
10,000,000
9,962,687
9,371,250
8,849,004
7,020,728
6,810,000
6,000,000
6,000,000
8.72
8.11
7.25
3.21
2.69
2.18
1.74
1.69
1.56
1.43
1.35
1.25
1.25
1.25
1.17
1.11
0.88
0.85
0.75
0.75
392,997,487
49.19
The name of the Company Secretary is Geoffrey Wallace
The address of the registered office in Australia is Level 3, 681 Murray Street, West Perth, WA 6005, Australia
Registers of securities are held at Security Transfer Registrars Pty Ltd 770 Canning Highway Applecross WA
6153, Australia
Securities Exchange Listing
Quotation has been granted for all the ordinary shares of the company on all Member Exchanges of the
Australian Securities Exchange Limited.
49
ADDITIONAL INFORMATION FOR ASX LISTED PUBLIC COMPANIES
7. Tenement Schedule
Tenement Number
PL35/2007
PL157/2009
PL160/2009
PL6911/2011
PL6912/2011
PL7050/2011
PL7241/2011
PL9239/2013
PL9077/2013
Tenement Name
Takatokwane
Takatokwane
Takatokwane
Makete
Narunyu
Mitengi
Mitengi
Kigoma
Kigoma
PML000636WZ
PML000698WZ
PML000699WZ
PML000700WZ
PML000701WZ
PML000702WZ
PML000703WZ
PML000704WZ
PML000705WZ
PML000706WZ
PML000707WZ
PML000708WZ
PML000709WZ
PML000710WZ
PML000720WZ
PML000721WZ
PML000722WZ
PML000723WZ
PML000724WZ
PML000725WZ
PML000728WZ
PML000729WZ
PML000730WZ
PML000731WZ
PML000732WZ
PML000733WZ
PML000734WZ
PML000735WZ
PML001436WZ
PML001437WZ
PML001438WZ
PML001439WZ
PML001440WZ
PML001441WZ
PML001442WZ
PML001443WZ
PML001444WZ
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Kigoma
Locality
Botswana
Botswana
Botswana
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
50
Group Ownership
70%
40% Earning 65%
40% Earning 65%
100%
100%
100%
100%
100%
Earning 75%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Option for 100%
PML001445WZ
PML001446WZ
PML001447WZ
PML001448WZ
P[L 9328/2013 Kigoma Tanzania Earning 75%
Earning 75%
PL 9329/2013
Option for 100%
Option for 100%
Option for 100%
Option for 100%
Tanzania
Tanzania
Tanzania
Tanzania
Kigoma
Kigoma
Kigoma
Kigoma
Tanzania
Kigoma
51