ABN: 87 145 011 178
Corporate Directory & Contents
Corporate Directory
Board of Directors
Executive Chairman
Thomas Sanders
Mark Edwards
Non-Executive Director
Michael Kitney Non-Executive Director
Non-Executive Director
Linton Putland
Senior Management
Alastair Barker
Exploration Manager
Michelle Simson Manager Corporate
Affairs/Company Secretary
Principal Place of Business &
Registered Office
12 Walker Avenue
West Perth, Western Australia 6005
+61 8 9226 3666
+61 8 9226 3668
Tel:
Fax:
Email: breaker@breakerresources.com.au
Website: www.breakerresources.com.au
ABN
87 145 011 178
Cover photo: Lake Roe RC and diamond drilling
Contents
Auditors
Rothsay Chartered Accountants
Level 1, 4 Ventnor Avenue
West Perth, Western Australia 6005
Solicitors
Steinepreis Paganin
Level 4, 16 Milligan Street
Perth, Western Australia 6000
Share Registry
Automic Registry Services
Level 5, 126 Phillip Street
Sydney, New South Wales 2000
Tel:
1300 288 664 (within Australia)
+61 2 9698 5414 (outside Australia)
hello@automic.com.au
Email:
Website: www.automic.com.au
Securities Exchange Listing
in Breaker
Shares and Partly Paid Shares
Resources NL are quoted on ASX Limited (codes:
BRB and BRBCA). The Home Exchange is Perth,
Western Australia.
Chairman’s Letter ____________________________________________________________________________________________ 2
Review of Activities __________________________________________________________________________________________ 3
Tenement Schedule _______________________________________________________________________________________ 11
Directors’ Report ___________________________________________________________________________________________ 12
Auditor’s Independence Declaration _____________________________________________________________________ 23
Statement of Profit or Loss and Other Comprehensive Income __________________________________________ 24
Statement of Financial Position ____________________________________________________________________________ 25
Statement of Changes in Equity ___________________________________________________________________________ 26
Statement of Cash Flows __________________________________________________________________________________ 27
Notes to the Financial Statements _________________________________________________________________________ 28
Directors’ Declaration _____________________________________________________________________________________ 47
Independent Audit Report ________________________________________________________________________________ 48
ASX Additional Information ________________________________________________________________________________ 52
1
Breaker Resources NL
Chairman’s Letter
Dear Shareholder,
It has been a year of ongoing discovery, consolidation and systematic de-risking, and
although this success is not yet reflected in the share price, we are taking steps to
make this happen.
Breaker’s flagship asset and prime focus is the Bombora gold deposit at its 100%
owned Lake Roe Gold Project located 100km east of Kalgoorlie, 60km south-
southeast of the operating 3.5Moz Carosue Dam gold mine, and 35km north of the
0.9Moz Karonie gold deposits.
The Bombora deposit is situated on a granted Mining Lease within a highly prospective 600km2 tenement
package, of which less than 10% has been systematically explored. The style of mineralisation is comparable
to other well-known dolerite-hosted gold deposits such as the Paddington, St Ives and Golden Mile deposits.
The discovery extends over a strike length of 3.2km, and is open in all directions after 223,000m of RC and
diamond drilling. Drilling to date has focused mainly on creating a near-term, high-margin open pit mining
option which can be expanded with further drilling during and beyond the feasibility process.
An updated open pit Mineral Resource of 1.0Moz at 1.3g/t was released in early September 2019 with an
emphasis on ongoing de-risking in preparation for a preliminary open pit PFS. The recovered Resource is
viewed as a conservative estimate that only captures gold mineralisation to a variable depth of 180m to
300m below surface, and which contains inbuilt mining dilution and cautious top-cuts.
The high-grade nature of the gold mineralisation is a characteristic of the deposit and should not be
under-estimated. It creates mining optionality that potentially allows the early scheduling of high-grade
mineralisation in an open pit scenario for example, or potential for longer-term underground mining.
An underground resource has not yet been quantified despite the presence of significant known
mineralisation at depth (eg. 6.1m @ 10.54g/t Au 130m below Resource). Similar unquantified growth
potential is present along strike from Bombora. Further afield, regional exploration within the broader Lake
Roe tenement package is starting to yield some very encouraging results, further reinforcing the camp-
scale growth potential.
What distinguishes the Bombora gold deposit from many peer group deposits is the greenfields nature of
the discovery, the scale, the high-grade nature of the mineralisation which starts 5m below surface, and
the camp-scale growth potential which is expected to take many years to crystallise.
The strategic nature of the Lake Roe Gold Project has led to several unsolicited enquiries from corporate
and other entities which may present opportunity to accelerate unlocking the value from the project.
The Board of Breaker has consequently decided to undertake a strategic review to consider a range of
potential partnering, funding and other asset initiatives, with a focus on maximising shareholder value.
The Company makes no assurances that a transaction will eventuate, and will assess all options purely on
their value-adding potential.
The results of the strategic review could materially impact ongoing technical studies and, as a result,
completion of the PFS has been deferred to allow the Company sufficient time to assess the impact of
the review on various development options. The strategic review will also aim to lay a platform for a
significant step-up in drilling activities to increase the current Resource and to continue expanding the
Company’s development options.
In closing, I would like to thank our committed staff and technical team, including contractors and
suppliers, for their hard work and dedication. I would also like to thank our shareholders for their continued
support as we embark on another exciting year with a firm commitment to building shareholder value.
Yours sincerely
Tom Sanders
Chairman
2019 Annual Report
2
Review of Activities
Review of Exploration Activities
Activities during 2018/19 were focused on refining the Mineral Resource for the Bombora Deposit at the
Lake Roe Gold Project, located approximately 100km east of Kalgoorlie. Reverse circulation (RC) and
diamond drilling was undertaken, with a total of 68,000m drilled. An open pit pre-feasibility study (PFS)
was also progressed.
The strike length of the Bombora discovery increased from 2.2km to 3.2km during the year, as drilling
defined additional mineralisation1. The deposit lies within an 8km gold system that remains open in all
directions.
Updated Mineral Resource
The maiden Mineral Resource estimate for the Bombora Deposit was completed in April 2018 and
comprised 11,876,000t at 1.6g/t gold for 624,000oz2. An updated JORC 2012 estimate, incorporating
additional drilling results, was released in September 20183:
Table 1: September 2018 Bombora Deposit Mineral Resource (0.5g/t Au cut-off)
Classification
Tonnes
Au (g/t)
Indicated
Inferred
Total
12,549,000
12,050,000
24,599,000
1.5
1.2
1.4
Ounces
624,000
460,000
1,084,000
The updated Resource represented a 74% increase in ounces and contained a high-grade core of
808,000oz at 2.0g/t Au (12.5Mt reported above 1.0g/t Au) or 417,000oz at 3.4g/t Au (3.9Mt reported above
2.0g/t Au)3. The Resource was limited at depth by the extent of the shallow drilling completed (150m to
250m from surface) and open to the north and south.
A further update of the Bombora Resource was finalised after the end of the reporting period and
released on 2 September 20194. It captures gold mineralisation to a variable depth of 180m to 300m
below surface, and includes mining dilution expected in an open pit mining scenario. The Mineral
Resource is summarised in Table 2 below. Areas of Indicated and Inferred mineralisation are shown on
Figures 1 and 24.
Table 2: September 2019 Bombora Deposit Mineral Resource (0.5g/t Au cut-off)
Tonnes
Grade
Ounce
Indicated
Inferred
Grand Total
oxide
trans
fresh
Total
oxide
trans
fresh
Total
141,000
1,842,000
16,373,000
18,356,000
214,000
922,000
3,717,000
4,853,000
23,210,000
1.3
1.4
1.4
1.4
1.0
0.9
1.2
1.1
1.3
6,000
83,000
714,000
803,000
7,000
27,000
144,000
178,000
981,000
3
Breaker Resources NL
Review of Activities
Figure 1: Long-section showing distribution of Indicated and Inferred mineralisation
Figure 2: Long-section highlighting structure and growth potential
2018/19 Drilling
For the period July 2018 to April 2019, normal drilling operations at Lake Roe comprised two RC and two
diamond rigs. The trend of a new lode discovery every quarter continued, with the Eastern; Boneyards
and Harlequin; Morant and North Extension; and Daisy lodes being discovered during the period.
The three year-long first phase of Resource drilling of the Bombora Gold Deposit concluded in April 2019
to enable consolidation and review of data and planning for phase two. As at the end of the reporting
period, aircore drilling focussed on water exploration and sterilisation drilling for infrastructure planning
purposes was underway, with 4,198m completed before 30 June 2019.
Drilling at Bombora has focused mainly on building the critical mass for a large, high-margin open pit with
the objective of early cash flow. Judicious extensional drilling however has been successful in outlining
substantial growth potential in several areas, both within and outside the known 8km-long Bombora gold
system.
2019 Annual Report
4
Review of Activities
Highlight intersections5 during the period included:
Hole_ID
BBRC0901
BBRC0908
BBRC0909
BBRC0911
BBRC0915
BBRD0784
BBRD0787
BBRC0937
BBDD0067
BBRC0923
BBRC0925
BBRD0848
BBDD0068
BBRC1020
BBDD0078
BBRC0995
BBRD0782
BBRD1146
BBDD0083
BBRD1261
BBRC1269
BBRC1279
BBRD1135
BBRD1261
BBRD1111
BBDD0086
Interval at g/t Au
4m at 13.70
8m @ 1.28
3m @ 6.84
15m @ 1.53
20m @ 1.66
6m @ 4.31
45m @ 2.14
35m @ 3.83
22m @ 3.12
12m @ 3.21
12m @ 3.40
3m @ 10.74
From
32m
80
154
140
60
230
194
81
25
68
180
176
4.63m @ 5.64
46.33
9m @ 13.86
15m @ 4.99
4m @ 10.79
47
82
44
Includes
2m @ 9.82g/t
5m @ 3.36g/t
8m @ 3.21g/t
1m @ 17.26g/t
17m @ 3.23g/t
5m @ 10.96g/t & 10m @ 6.09g/t
5m @ 12.38g/t
5m @ 4.7g/t & 3m @ 6.76g/t
4m @ 8.22g/t
1.64m @ 18.99g/t
2.44m @ 10.39g/t
4m @ 29.99g/t
11.1m @ 6.26g/t
12.94m @ 2.35
247.06
5.17m @ 4.44g/t & 3.17m @ 6.78g/t
4m @ 20.3
27m @ 2.57
29m @ 1.69
12m @ 2.31
8m @ 4.44
14m @ 18.86
29m @ 1.69
9.6m @ 1.43
9.17m @ 7.17
84
23
258
228
64
245
258
185.4
491.83
21m @ 3.11g/t
8m @ 3.81g/t
4m @ 6.30g/t
4m @ 8.00g/t
6.82m @ 36.87g/t
14m @ 2.61g/t & 8m @ 3.81g/t
4m @ 2.96g/t
6.1m @ 10.54g/t & 1.48m @ 42.02g/t
Other Gold Prospects
Whilst the main drilling focus continues to be the Bombora Deposit, drilling was also undertaken during
the period at the Bombora South, Crescent and Claypan Shear North Prospects.
Primary gold mineralisation was identified at Bombora South with intercepts including 20m @ 0.76g/t Au
from 44m (including 8m @ 1.37g/t; BBRC1065) and 7m @ 0.95g/t from 146m (including 1m @ 3.22g/t;
BBRD0407)5.
At the Crescent Prospect, located approximately 2km north of Bombora, drilling confirmed the discovery
of continuous shallow gold mineralisation over a 300m x 200m area with good open pit potential to the
north and down-dip6. This is the first satellite gold system identified outside the main Bombora deposit.
Thirty seven shallow exploratory RC holes were completed at Claypan Shear North and were designed to
penetrate a nominal 10m into fresh rock. The highlight from the program is BBRC1322, on the northernmost
line which terminated in mineralisation. This hole returned fresh rock intercepts of 2m @ 1.89g/t Au from
44m (including 1m @ 3.46g/t from 44m), and 2m @ 0.82g/t Au from 55m to end-of-hole (EOH) (including
1m @ 1.33g/t from 56m to EOH)7. Both intercepts are associated with shearing, biotite-albite-sulphide
alteration and quartz veining, similar to that observed at Bombora and Crescent.
The drilling at Lake Roe has progressively built an understanding of the nature, distribution and geometry
of the gold mineralisation, starting from scratch (a rare greenfields discovery concealed by transported
cover). It has also successfully proven continuity and upgraded the mining potential of what is the
dominant style of mineralisation in WA’s Eastern Goldfields.
5
Breaker Resources NL
Review of Activities
Bombora Deposit Geology
Gold mineralisation at Bombora is largely stratabound, occurring preferentially in the 100-150m thick, iron-
rich quartz dolerite portion of the Bombora Sill (Figure 3). The quartz dolerite is located on the footwall
(western) side of the sill, due to overturning of the stratigraphy. Variably-plunging lodes are formed where
different mineralised structures intersect the quartz dolerite (Figures 3 and 4). Four main mineralised
structure types have been recognised: steep lodes, flat lodes, west lodes, and stockwork zones.
Steep lodes occur in ductile shear zones that are NNW-trending and sub-vertical (Figure 3), and have
gently south-plunging intersections with the quartz dolerite (Figure 4). Mineralisation is hosted in lode-style
(vein-poor) silica-albite-biotite-sulphide alteration zones. These structures are interpreted to be the
primary fluid pathways within the deposit, and the controlling structures on domains of flat lodes and west
lodes. Steep lodes account for approximately 50% of the contained gold at Bombora, and the down-
plunge extensions of the major steep lodes are the primary targets for the assessment of the deposit’s
underground mining potential.
Figure 3: Bombora gold deposit geology at 300mRL (~15m below current land surface);
Major steep lodes are labelled
2019 Annual Report
6
Review of Activities
Figure 4: Long-section of the Bombora deposit, showing major steep and flat lodes. The southerly plunge of the steep
lodes is caused by their intersection with the favourable quartz dolerite.
Flat lodes are gently north- to northeast-dipping (5-30°; Figures 4 and 5), sinistral-reverse shear zones that
host laminated quartz reef zones up to 3m wide, with sulphidised haloes. They have gentle north-plunging
intersections with the quartz dolerite. Several major flat lodes (Cornucopia, Cousin, and the North Point
reefs) are broadly focused around a major left-hand bend in the steep Tura Lode (Figure 4). The Crescent
Prospect is hosted in a strong flat lode structure located ~2km north of Bombora. The host rocks at
Crescent are low-iron dolerite, basalt and sedimentary rocks, highlighting the camp-scale potential for
mineralisation outside of fractionated dolerite sills.
West lodes occur in moderately (40-50°) west-dipping reverse shear zones, which have sub-horizontal
intersections with the quartz dolerite. Mineralisation is associated with shear-parallel quartz-sulphide veins
and/or flat-lying tension veinlets, and is interpreted to mostly post-date steep and flat lode mineralisation.
West lodes can be well mineralised outside of the quartz dolerite, most significantly in the hangingwall
dolerite between ~6600600mN and 6601400mN. Key examples of west lodes include the Harmat Fault
and the Quarries structures.
Stockwork mineralisation at Bombora is mostly within the Harmat Stockwork, a near-surface mineralised
body focused around the west-dipping Harmat Fault between ~6601600mN and 6601800mN (Figures 4
and 5). Internal stockwork vein orientations in this zone vary between sub-horizontal, west-dipping and
north-dipping.
A ~30-40m wide swarm of moderately west-dipping, biotite-(ex)pyroxene-calcite lamprophyre dykes runs
the full length of the Bombora deposit, sub-parallel to mineralised west lodes. Individual dykes are
typically 1-10m in true thickness. The lamprophyres are late- to post-tectonic (unfoliated), and are
interpreted to post-date most or all gold mineralisation.
7
Breaker Resources NL
Review of Activities
Figure 5: Perspective view of major flat lodes in relation to Tura lode (looking southwest)
Lake Roe Pre-Feasibility Study
PFS activities have been ongoing throughout the year, with the potential development pathway for the
Bombora Gold Deposit being progressed in parallel to drilling. The PFS is well advanced and some aspects
have been completed to feasibility level.
The PFS will use the input from the September 2019 Resource update to trigger further open pit
optimisation, design and scheduling studies. The output from the optimisation is also expected to guide
further drilling by highlighting where the optimised pit shell is constrained by drilling or where there is
potential to materially increase Reserves.
The PFS will look at several processing options including standalone processing at a range of rates up to
2.5Mtpa. In addition to metallurgical testwork and process design, the PFS includes geotechnical,
hydrological, environmental, heritage, geological and mine engineering aspects. The deposit is on a
granted mining lease with a clear development pathway and the studies undertaken to date do not
highlight any impediments to development.
Manna Lithium Prospect
The Manna Prospect is located approximately 15km south of Bombora and outcropping lithium-bearing
pegmatite was discovered in the area in early 2018. First-pass rock-chip sampling identified widespread
enrichment in lithium (up to 3.81% Li2O), tantalum (up to 366ppm Ta2O5) and niobium (up to 251ppm
Nb2O5) and strong evidence of chemical zoning8. Mapping and sampling during the period confirmed
the presence of a spodumene-rich, lithium-cesium-tantalum (LCT) pegmatite system over a 3.4km x 1km
area; an area which is constrained by outcrop limits and the extent of sampling.
Drilling during the fourth quarter of 2018 was designed to obtain first-pass information on the width, grade
and continuity of the lithium-bearing pegmatite observed at surface. Ten reconnaissance RC drill holes
were completed for a total of 1,503m. Intersections included 17m @ 1.80% Li2O (BMRC0009), 14m @ 1.03%
Li2O (BMRC0001) and 9m @ 1.60% Li2O (BMRC0002)9.
The drilling indicates a 150m- to 200m-wide swarm of spodumene-rich dykes extending over a distance
of at least 700m, with individual pegmatite dykes up to 15m in (true) width. The mineralised pegmatite
encountered in the drilling can generally be linked to mineralised pegmatite observed at surface,
suggesting good continuity in the dip dimension.
2019 Annual Report
8
Review of Activities
The reconnaissance line of five RC drill holes extending southeast of the main pegmatite outcrop
identified new lithium-mineralised pegmatite in two holes, BMRC0007 and BMRC0008. BMRC0007 and
BMRC0008 both intercepted a ~20m wide zone of multiple lithium-mineralised pegmatite dykes (up to 4m
@ 1.65% Li2O in BMRC0008)9. This mineralisation is not exposed at surface and also remains open in all
directions.
Further afield (outside the 3.4km x 1km area), a new, separate zone of lithium-bearing pegmatite was
discovered ~2km to the east-southeast. Further mapping and rock chip sampling are planned to assess
the potential of this area.
Collectively, the results highlight the potential for a large, previously unexplored field of LCT pegmatite.
Figure 6: Plan of the spodumene-dominant zone of the Manna Lithium Prospect, showing the maiden RC drilling
collars and results, plus surface mapping and rock chip information
Other Exploration
The Ularring Rock Project is located 100km east of Perth and covers the Centre Forest and Southern Brook
gold-copper prospects.
Deep Ground Penetrating Radar (DGPR) technology was trialled over the prospects and a previously
unexplored high-tenor tungsten groundwater anomaly located along strike to the north of the gold-
copper mineralisation. A total of 20 traverses over 20 line kilometres was acquired.
The DGPR successfully imaged the sub-surface around the prospect areas and data was generally of
good quality although penetration depth was negatively impacted in local areas of saline groundwater.
A multitude of fault-like, dyke-like, crystalline and deep weathering anomalies were observed and
recorded, as well as interesting notch-shaped features and paleo-channels. The exact nature of these
anomalies is at present unknown and warrants further investigation given the strongly anomalous
dissolved tungsten.
9
Breaker Resources NL
Review of Activities
In addition to the DGPR over the tungsten-in-water anomaly, a high-resolution Drone Magnetic Survey
(DMS) was flown over a 24.6km2 area. A total of 615 line kilometres was surveyed at 40m line spacing on
a nominal 0.6m station spacing. The dataset is of very high quality (more comparable to high resolution
ground magnetics than conventional aeromagnetics). Several zones of hypothermal alteration
(magnetic depletion) have been interpreted from the DMS, which in conjunction with the DGPR data,
are expected to result in a number of drill targets.
As at 30 June 2019, the Company held approximately 1,035km2 of tenements comprising a granted
mining lease at Lake Roe, as well as nine granted exploration licences and one exploration licence
application across the Lake Roe, Pinjin and Ularring Rock Project areas.
Review of Corporate Activities
Linton Putland was appointed a non-executive director of the Company on 16 August 2018. A mining
engineer with more than 30 years’ experience, Mr Putland currently provides advice on project
management, mine planning, feasibility study management, preparation of mining proposals, mining
tenders and contracts in addition to business development and due diligence.
Throughout the year the Company was represented at a range of industry conferences including Diggers
& Dealers in Kalgoorlie, Resources Rising Stars events in Sydney, Melbourne and the Gold Coast, the
Precious Metals Investment Symposium in Perth, the RIU Explorers and Resources Round-up events in
Fremantle and Sydney and the Swiss Mining Institute Investor Conference in Zurich and Geneva.
On 1 October 2018 the Company announced the conduct of a capital raising comprising a placement
to institutional and sophisticated investors. The placement raised $10.595million before costs and resulted
in the issue of 36,537,898 shares at a price of 29 cents.
A further placement was announced on 15 May 2019, raising $6.3million before costs. The placement
price of $0.30 represented a 14.3% discount to the closing share price before the offer was announced.
The 21,000,000 placement shares were issued to investors on 22 May 2019.
Other equity movements during the reporting period included the paying up of partly paid shares and
the issue, lapse and expiry of unlisted options. Subsequent to year end, the Company announced a call
on its partly paid shares. The call was due and payable on 4 October 2019 and the forfeiture and auction
process arising from the call are ongoing at the date of this report.
As at 30 June 2019, the Company’s capital structure comprised:
203,689,492 fully paid ordinary shares (ASX: BRB)
4,615,373 partly paid ordinary shares (ASX: BRBCA)
9,150,000 unlisted options at various exercise prices and expiry dates.
At the beginning of the period the Company’s fully paid ordinary shares were trading at $0.26, and the
Company had a market capitalisation of $38.7million and as at 30 June 2019, the share price was $0.32
and the market capitalisation $65.9million.
______________________________________
1 ASX Release 21 March 2019
2 ASX Release 18 April 2018 (maiden Resource comprised 11,876,000t at 1.6g/t Au for 624,000oz of which 5,276,000t at
1.6g/t Au for 264,000oz was Indicated and 6,600,000t at 1.7g/t Au for 360,000oz was Inferred)
3 ASX Release 6 September 2018
4 ASX Release 2 September 2019
5 ASX Releases 4 September 2018, 23 October 2018, 12 December 2018, 31 January 2019, 21 March 2019, 29 April 2019
& 12 July 2019
6 ASX Release 12 December 2018
7 ASX Release 12 July 2019
8 ASX Release 30 April 2018
9 ASX Release 13 November 2018
2019 Annual Report 10
Tenement Schedule
Tenement Schedule
The following is a summary of tenements held by Breaker Resources NL as at 30 June 2019.
Project
Lake Roe
Pinjin
Ularring Rock
Tenement
Number
E28/2515
E28/2522
E28/2551
E28/2555
E28/2556
E28/2559
E28/2920
M28/388
E28/2629
E70/4686
E70/4901
Status
Granted
Granted
Granted
Granted
Granted
Granted
Application
Granted
Granted
Granted
Granted
Percentage
Held/Earning
%
100
100
100
100
100
100
100
100
100
100
100
Photo 1: Aircore Drilling at Lake Roe Gold Project
Photo 2: Diamond Drilling at Lake Roe Gold Project
COMPETENT PERSONS STATEMENT
The information in this report that relates to Exploration Results is based on and fairly represents information and
supporting documentation compiled by Tom Sanders, Competent Person, who is a Member of the Australasian Institute
of Mining and Metallurgy. Mr Sanders is an executive of Breaker Resources NL and his services have been engaged
by Breaker on an 80% of full time basis; he is also a shareholder in the Company. Mr Sanders has sufficient experience
that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being
undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves’. Mr Sanders consents to the inclusion in the report of the
matters based on his information in the form and context in which it appears.
The reference in this report to the Mineral Resources is based on information announced to the ASX on
18 April 2018, 6 September 2018 and 2 September 2019. Breaker confirms that it is not aware of any new information
or data in relation to the Resources that materially affects the information included in the relevant market
announcements that has not been updated in subsequent announcements, and that all material assumptions and
technical parameters underpinning the estimates in the relevant market announcements continue to apply to the
relevant estimates and have not materially changed.
11 Breaker Resources NL
Directors’ Report
Directors’ Report
The directors of Breaker Resources NL herewith submit the financial report for the year ended 30 June
2019. In order to comply with the provisions of the Corporations Act 2001 (Cth), the directors report as
follows:
Information about Officeholders
Directors
The names of the directors of the Company during the financial year and up to the date of this report are
provided below.
Thomas Sanders BSc (Geology); MSc (Mineral Economics); MAusIMM; FAICD
Executive Chairman (appointed 2 July 2010)
Tom Sanders is a geologist with over 35 years’ experience in the Australian mining industry. He has
extensive experience in project generation, exploration, feasibility, mining and corporate management
with a strong emphasis on gold and nickel in Western Australia (WA). Mr Sanders has published works on
nickel and gold in WA, in addition to regional mineralisation studies on the eastern Kimberley region under
contract to the Geological Survey of WA.
Mr Sanders has managed a large number of exploration projects, several of which he progressed into
production during a 23 year period based in the Kalgoorlie region in WA. He has extensive production
experience on several underground and open pit gold and nickel operations.
Mr Sanders was responsible for identifying Breaker’s initial projects and guiding the Company to a
successful ASX listing in 2012. Mr Sanders previously founded Navigator Resources Limited and steered
that company from initial project acquisition to ASX-listing. He then managed the building of a two million
ounce gold resource inventory through discovery and acquisition and identified the Cummins Range rare
earth resource.
During the past three (3) years, Mr Sanders has not served as a director on any other listed company.
Mark Edwards BJuris; LLB
Non-Executive Director (appointed 2 July 2010)
Mark Edwards is a solicitor with over 30 years of experience in resources and corporate law. He has
advised a number of ASX-listed companies active in the resources sector and on a range of resources
projects in Australia and overseas, including significant nickel, gold and iron ore projects. His professional
work has involved him in many facets of the resources industry ranging from ASX listings, exploration and
mining joint ventures to project development agreements and project financing.
During the past three (3) years, Mr Edwards has not served as a director on any other listed company.
Michael Kitney Assoc. Met; Post Grad Dip (Extractive Metallurgy); MSc (Mineral Economics); MAICD;
MAusIMM
Non-Executive Director (appointed 2 July 2010)
Mike Kitney is a process engineer with over 40 years’ experience in the mining industry. He has
participated in the development and construction of projects throughout Australia, Africa, south east Asia
and the former Soviet Union. Mr Kitney’s particular strengths are in production and mineral processing, all
aspects of environmental management, project evaluation and assessment and leadership of
interdisciplinary project teams. He brings to the Company vast project development expertise and
practical experience in commissioning new projects.
2019 Annual Report 12
Directors’ Report
Mr Kitney has previously held senior technical and project management positions with Kasbah Resources
Limited, Alcoa Australia Limited, Minproc Engineers Limited, Property Company of London plc, British
Phosphate Commissioners, Nelson Gold Corporation Limited and Avocet Mining plc. He is currently a
technical consultant to ASX-listed Prospect Resources Limited.
During the past three (3) years, Mr Kitney has served as a director on ASX-listed General Mining
Corporation Limited (appointed 20 October 2015; ceased 5 August 2016).
Linton Putland BEng (Mining), MSc (Mineral Economics), MAusIMM, GAICD
Non-Executive Director (appointed 16 August 2018)
Linton Putland holds a degree in mining engineering and a masters in science from the Western Australian
School of Mines and has over 30 years' experience in mining operations, joint ventures and corporate
management in Australia, Africa and the Americas over a wide range of commodities.
Mr Putland is principal of LJ Putland & Associates, a private mining consultancy company which was
founded in 2002, providing advisory and consultancy services in mining project and company evaluation
and due diligence appraisals with a focus on corporate growth. During this period he has also been
Managing Director of a privately owned exploration company, with joint venture interests in Africa. Prior
to this he held corporate and senior management roles in IAMGOLD Corporation, AurionGold Limited,
Delta Gold NL and Pancontinental Mining Limited.
During the past three (3) years, Mr Putland has served as a director on ASX-listed Pacific Energy Limited
(appointed 18 October 2016) and Azumah Resources Limited (appointed 18 July 2018).
Company Secretary
The name of the company secretary of the Company during or since the end of the financial year and
up to the date of this report, and the term of their appointment, are provided below.
Michelle Simson EMBA (Dist.); GradDipACG; ACIS; AGIA
Company Secretary (appointed 22 October 2012)
Michelle Simson has nearly 25 years’ administration experience, including the last 15 years in the resources
industry working in both exploration and mining companies in the commodities of gold and uranium. She
has previously held positions with Agincourt Resources Limited, Nova Energy Limited and Navigator
Resources Limited and has completed an Executive Master of Business Administration with Distinction at
the University of Western Australia and a Graduate Diploma in Applied Corporate Governance. She is a
Chartered Secretary and member of the Governance Institute of Australia.
During the past three (3) years, Miss Simson has not served as a director on any other listed company.
Board Committee Membership
As at the date of this report, the Board has an Audit Committee, Nomination Committee, Remuneration
Committee and a Risk Committee. Three of the four directors comprise membership of each committee
and the respective chairmen are:
Audit Committee: Mark Edwards;
Nomination Committee: Linton Putland;
Remuneration Committee: Mike Kitney; and
Risk Committee: Tom Sanders.
13 Breaker Resources NL
Directors’ Report
Directors’ Meetings
The number of meetings of directors (including meetings of committees of directors) held during the year
and the number of meetings attended by each director is as follows:
Board of
Directors
Committee Meetings
Audit
Nomination
Remuneration
Risk
Director
Held
Present Held
Present
Held
Present Held
Present
Held
Present
Tom Sanders
Mark Edwards
Mike Kitney
Linton Putland
(appointed 16/08/2018)
4
4
4
3
Directors’ Interests
4
4
4
3
1
2
2
1
1
2
2
1
1
1
1
-
1
1
1
-
-
1
1
1
-
1
1
1
2
-
2
2
2
-
2
2
The following table sets out each director’s relevant interest in shares and options in shares of the
Company or a related body corporate as at the date of this report.
Director
Tom Sanders
Mark Edwards
Mike Kitney
Linton Putland
Fully paid
ordinary shares
Partly paid
ordinary shares
Unlisted
share options
Number
22,544,660
1,778,190
1,468,544
-
Number
309,871
65,000
58,125
-
Number
3,000,000
1,250,000
1,250,000
1,250,000
During the financial year 4,250,000 share options were granted to directors of the Company as part of
their remuneration (2018: Nil).
Directors’ and Officers’ Insurance
During the financial year, Breaker paid a premium to insure the directors and secretary of the Company.
Details of the premium are subject to a confidentiality clause under the contract of insurance. The
liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may
be brought against the officers in their capacity as officers of the Company and any other payments
arising from liabilities incurred by the officers in connection with such proceedings.
This does not include such liabilities that arise from conduct involving a wilful breach of duty by the officers
or the improper use by the officers of their position or of information to gain advantage for themselves or
someone else or to cause detriment to the Company. It is not possible to apportion the premium between
amounts relating to the insurance against legal costs and those relating to other liabilities.
Corporate Structure
Breaker Resources NL is a no liability public company limited by shares, domiciled and incorporated in
Australia.
Principal Activities
During the year the Company carried out exploration activities on its tenements in Western Australia with
the objective of identifying gold and other economic mineral deposits.
2019 Annual Report 14
Directors’ Report
Operational Review
Activities Review
A review of the exploration activities undertaken during the year commences on page 1.
Financial Review
During the year total exploration expenditure incurred by the Company amounted to $14,418,057 (2018:
$13,351,027). In line with the Company’s accounting policies, all exploration expenditure is written off as
it is incurred. Net administration and other expenses amounted to $1,892,150 (2018: $720,575). The
Company’s operating loss after income tax for the year is $16,310,207 (2018: $14,071,602).
At year end the Company held cash and cash equivalents and term deposits of $4,925,956 (2018:
$5,173,422).
Operating Results for the Year
Summarised operating results are as follows:
Revenues and profit/(loss) from ordinary activities before income tax
expenses
98,086
(16,310,207)
Revenues
Results
$
$
Shareholder Return
Summarised shareholder return is as follows:
Basic profit/(loss) per share
Dividends
2019
cents
2018
cents
(9.30)
(9.90)
No dividends were paid or declared during the year. No recommendation for payment of dividends has
been made.
Share Options
As at the date of this report, there are 9,150,000 unissued ordinary shares of Breaker Resources NL in
respect of which options are outstanding. This number comprises:
Type of option
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Number
2,500,000
2,000,000
150,000
250,000
4,250,000
Exercise price
Expiry date
$0.448
$0.432
$0.644
$0.730
$0.465
31 December 2019
31 December 2019
31 December 2019
31 December 2020
31 December 2021
No person entitled to exercise any option referred to above has or had, by virtue of the option, a right to
participate in any share issue of any other body corporate.
Share Options Issued
The following options were issued by Breaker Resources NL during the financial year:
15 Breaker Resources NL
Directors’ Report
Type of option
Number
Exercise
price
Expiry date
Comment
Unlisted
4,250,000
$0.465
31 December 2021
Issued under Company’s
Incentive Option Scheme
Shares Issued on Exercise of Options
There were Nil shares issued due to the exercise of options during the financial year.
Share Options that Expired/Lapsed
The following options expired or lapsed during the financial year:
Type of option
Number
Exercise price
Expiry date
Reason for lapse
Unlisted
250,000
$0.690
31 December 2019
Cessation of
employment
Unlisted
500,000
$0.400
30 June 2019
Expired
Significant Changes in State of Affairs
During the financial year there were no significant changes in the state of affairs of the Company other
than those referred to in the Financial Statements and notes thereto.
Subsequent Events
There were no matters or circumstances arising since the end of the reporting period that have
significantly affected or may significantly affect the operations of the Company and the results of those
operations or the state of the affairs of the Company in the financial period subsequent to 30 June 2019.
Likely Developments and Expected Results
The Company expects to maintain a similar status and level of activities to that at present and hence
there are no likely developments in the entity's operations.
Environmental Regulations and Performance
Breaker is subject to significant environmental regulation in respect to its exploration activities. The
Company aims to ensure that the appropriate standard of environmental care is achieved, and in doing
so, that it is aware of and is in compliance with all environmental legislation. The directors of the Company
are not aware of any breach of environmental legislation for the year under review.
Proceedings on Behalf of the Company
No persons have applied for leave pursuant to section 237 of the Corporations Act 2001(Cth) to bring, or
intervene in, proceedings on behalf of Breaker Resources NL.
Non-Audit Services
There were no non-audit services performed during the year by the auditors for the Company (or by
another person or firm on the auditor’s behalf).
2019 Annual Report 16
Directors’ Report
Auditor’s Independence Declaration
The Auditor’s Independence Declaration is included on page 18 and forms part of the Directors’ Report
for the financial year ended 30 June 2019.
Remuneration Report
This Remuneration Report, which forms part of the Directors’ Report, sets out information about the
remuneration of Breaker Resources NL’s key management personnel for the financial year ended 30 June
2019. The information provided in this report has been audited as per the requirements of section 308(3C)
of the Corporations Act 2001 (Cth).
The report is set out under the following main headings:
Key management personnel;
Principles used to determine the components and amount of compensation;
Details of remuneration;
Details of share-based compensation; and
Details of service agreements and employment contracts.
Key Management Personnel
For the purposes of this report, key management personnel of the Company are defined as those persons
having authority and responsibility for planning, directing and controlling the major activities of the
Company, directly or indirectly. The key management personnel during the year were:
Tom Sanders
Mark Edwards
Mike Kitney
Linton Putland
Alastair Barker
Michelle Simson
Executive Chairman
Non-Executive Director
Non-Executive Director
Non-Executive Director
Exploration Manager
Manager Corporate Affairs/Company Secretary
Principles Used to Determine the Components and Amount of Compensation
Remuneration Committee
The role of the Remuneration Committee is to assist the Company in fulfilling its corporate governance
responsibilities relating to remuneration by reviewing and making appropriate recommendations on:
remuneration packages of executive directors, non-executive directors and officers;
employee incentive and equity-based plans including the appropriateness of performance hurdles
and total payments proposed;
recruitment, retention and termination policies and procedures for senior executives; and
superannuation arrangements.
Remuneration Policy
The remuneration policy of Breaker Resources NL has been designed to align key management personnel
objectives with shareholder and business objectives by providing a fixed remuneration component and
offering specific long-term incentives based on key performance areas affecting the Company’s results.
The Board of Breaker Resources NL believes the remuneration policy to be appropriate and effective in
its ability to attract and retain the best key management personnel to run and manage the Company.
The policy for determining the nature and amount of remuneration for senior executives of the Company
is summarised below:
The remuneration policy, setting the terms and conditions for the executive directors and other senior
executives, was developed by the Board. The Board reviews executive packages annually by
17 Breaker Resources NL
Directors’ Report
reference to the Company’s performance, executive performance and comparable information
from industry sectors and other listed companies in similar industries.
The Board may exercise discretion in relation to approving incentives, bonuses and options. 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 wealth.
Executives are also eligible to participate in the employee incentive option scheme.
Where applicable, executives receive a superannuation guarantee contribution required by the
government, which during the reporting period was 9.5%. Some individuals may choose to sacrifice
part of their salary to increase payments towards superannuation.
All remuneration paid to key management personnel is valued at the cost to the Company and
expensed. Options are valued using the Black-Scholes methodology.
The Board policy is to remunerate non-executive directors at market rates for comparable companies for
time, commitment and responsibilities. The Board 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.
The maximum aggregate amount of fees that can be paid to non-executive directors is subject to
approval by shareholders in general meeting. The current remuneration pool limit is $300,000 and is
currently utilised to a level of $144,000 per annum. The base fee paid to non-executive directors is $48,000
per annum inclusive of superannuation.
Fees for non-executive directors are not linked to the performance of the Company 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 incentive option scheme, although any allocation must be
approved by shareholders in general meeting. There is no retirement benefit plan for directors.
Performance Based Remuneration
The Company currently has no individual performance based remuneration component built into key
management personnel remuneration packages.
Company Performance, Shareholder Wealth and Key Management Personnel Remuneration
The remuneration policy has been tailored to increase the direct positive relationship between
shareholders’ investment objectives and key management personnel performance. Currently, this is
facilitated through the issue of options to key management personnel to encourage the alignment of
personal and shareholder interests. The Company believes this policy will be effective in increasing
shareholder wealth.
Use of Remuneration Consultants
The Company did not employ the services of any remuneration consultants during the financial year
ended 30 June 2019.
Details of Remuneration
The key management personnel of the Company are disclosed above. Remuneration packages contain
the following elements:
Short-term employee benefits – cash salary and fees, cash bonuses, non-monetary benefits and other;
Post-employment benefits – including superannuation and termination; and
Share-based payments – shares and options granted.
2019 Annual Report 18
Directors’ Report
The remuneration for each director and each of the other key management personnel of the Company
during the year was as follows:
Key
management
personnel
Short-term
Post-employment
Share-
based
payments
Salary &
fees
Non-
monetary
Super-
annuation
Retirement
benefits
Options
Total
$
$
Tom Sanders
2019
2018
313,875
314,659
Mark Edwards
2019
2018
Mike Kitney
2019
2018
Linton Putland2
47,000
40,000
53,3301
42,558
2019
52,3163
Alastair Barker
2019
2018
Michelle Simson
2019
2018
253,750
259,938
223,040
226,944
-
-
-
-
-
-
-
-
-
-
-
$
-
-
-
-
7,833
6,667
3,638
-
-
23,880
24,823
$
$
$
-
-
-
-
-
-
-
-
-
-
-
517,729
831,604
-
-
-
-
-
314,659
47,000
40,000
61,163
49,225
206,851
262,805
-
-
-
-
253,750
259,938
246,920
251,767
Notes
1 In addition to directors’ fees of $39,167 and associated superannuation of $7,833 during 2018/19, Metallurgical Design,
an entity controlled by Mike Kitney, was paid fees of $14,163, at arm’s length market rates, under an agreement for
the provision of project management services for Lake Roe metallurgical testwork.
2 Linton Putland was appointed a director on 16 August 2018.
3 In addition to directors’ fees of $38,297 and associated superannuation of $3,638 during 2018/19, LJ Putland &
Associates, an entity controlled by Linton Putland, was paid fees of $14,019, at arm’s length market rates, under an
agreement for the provision of project management services for Lake Roe engineering studies.
No director or executive appointed during the year received a payment as part of his or her consideration
for agreeing to hold the position.
Details of Share-Based Compensation
Shares
Nil shares in the Company were issued to key management personnel as part of their remuneration during
the year (2018: Nil).
Options
4,250,000 options in the Company were issued to key management personnel as part of their
remuneration during the year (2018: Nil). There were Nil options exercised or sold by key management
personnel during the year (2018: Nil).
19 Breaker Resources NL
Directors’ Report
During the year, the following share-based payment arrangements for key management personnel were
in existence:
Option series
Grant date
Expiry date
Fair value per
option at grant
Vesting date
60532
60533
28 November 2016 31 December 2019
5 December 2016
31 December 2019
BRBOPT07
22 November 2018 31 December 2021
BRBOPT07
22 November 2018 31 December 2021
cents
22.36
17.48
16.55
17.26
28 November 2016
5 December 2016
28 November 2018
29 November 2018
Shareholdings of Key Management Personnel
The numbers of ordinary shares in the Company during the financial year in which each director of Breaker
Resources NL and other key management personnel of the Company holds a relevant interest, including
their closely related parties, are detailed below:
Key
management
personnel
Balance at
start of year
Fully Paid Ordinary Shares
Granted as
compen-
sation
Received on
exercise of
options
Number
Number
Number
Tom Sanders
2019
2018
Mark Edwards
2019
2018
Mike Kitney
2019
2018
Linton Putland1
2019
Alastair Barker
2019
2018
Michelle Simson
2019
2018
22,544,660
21,027,067
1,778,190
1,666,108
1,468,544
1,468,544
-
373,162
228,912
16,300
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Notes
1 Linton Putland was appointed a director on 16 August 2018.
Other
changes
Number
Balance at
year end
Number
-
22,544,660
1,517,593
22,544,660
-
112,082
1,778,190
1,778,190
-
-
-
-
144,250
-
16,300
1,468,544
1,468,544
-
373,162
373,162
16,300
16,300
2019 Annual Report 20
Directors’ Report
Key
management
personnel
Tom Sanders
2019
2018
Mark Edwards
2019
2018
Mike Kitney
2019
2018
Linton Putland1
2019
Alastair Barker
2019
2018
Michelle Simson
2019
2018
Partly Paid Ordinary Shares
Balance at
start of year
Number
Granted as
compensation
Other changes
Number
Number
Balance at
year end
Number
309,871
1,309,871
65,000
65,000
58,125
58,125
-
-
6,250
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1,000,000)
-
-
-
-
-
-
(6,250)
-
-
309,871
309,871
65,000
65,000
58,125
58,125
-
-
-
-
-
Notes
1 Linton Putland was appointed a director on 16 August 2018.
Option Holdings of Key Management Personnel
The numbers of options over ordinary shares in the Company during the financial year in which each
director of Breaker Resources NL and other key management personnel of the Company holds a relevant
interest, including their closely related parties, are detailed below:
Key
management
personnel
Balance at
start of
year
Granted as
compen-
sation
Exercised
Other
changes
Balance at
year end
Vested and
exercisable
Number
Number
Number
Number
Number
Number
Tom Sanders
2019
2018
Mark Edwards
-
-
2019
2018
1,250,000
1,250,000
3,000,000
-
-
-
-
-
1,250,000
1,250,000
-
1,250,000
Mike Kitney
2019
2018
Linton Putland1
2019
Alastair Barker
2019
2018
1,000,000
1,000,000
-
-
21 Breaker Resources NL
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,000,000
3,000,000
-
-
1,250,000
1,250,000
1,250,000
1,250,000
1,250,000
1,250,000
1,250,000
1,250,000
1,250,000
1,250,000
1,000,000
1,000,000
1,000,000
1,000,000
Directors’ Report
Michelle Simson
2019
2018
1,000,000
1,000,000
-
-
-
-
-
-
1,000,000
1,000,000
1,000,000
1,000,000
Notes
1 Linton Putland was appointed a director on 16 August 2018.
Details of Service Agreements and Employment Contracts
Service agreements are in place between the Company and Executive Chairman Tom Sanders and
Exploration Manager Alastair Barker. Manager Corporate Affairs/Company Secretary Michelle Simson is
employed via contract. Details of these arrangements as at 30 June 2019 are provided below:
Service Agreement: Tom Sanders – Executive Chairman
Term of agreement – Initial term of two (2) years and further terms of two (2) years, subject to
termination provisions; commenced 18 April 2012 (subject to ASX listing).
An annual consultancy fee of $319,300* (inclusive of superannuation, plus GST) is paid to
Goldfields Geological Associates, an entity controlled by Mr Sanders, for the provision of services
by Mr Sanders on a minimum of 80% of fulltime basis.
The agreement continues until terminated by either Goldfields Geological Associates or the
Company. Subject to the Corporations Act 2001 (Cth) and the ASX Listing Rules, Mr Sanders is
entitled to a minimum notice period of 12 months and the Company is entitled to a minimum
notice period of three (3) months.
Goldfields Geological Associates will be reimbursed for expenses incurred on the Company’s
behalf.
Service Agreement: Alastair Barker – Exploration Manager
Term of agreement – Initial term of two (2) years and further terms of one (1) year subject to
termination provisions; commenced 18 April 2012 (subject to ASX listing).
An annual consultancy fee of $257,500* (inclusive of superannuation, plus GST) is paid to Horizon
Resources Pty Ltd, an entity controlled by Mr Barker, for the provision of services by Mr Barker on
a minimum of 80% of fulltime basis.
The agreement continues until terminated by either Horizon Resources Pty Ltd or the Company.
Subject to the Corporations Act 2001 (Cth) and ASX Listing Rules, Mr Barker is entitled to a
minimum notice period of 12 months (or six (6) months after the initial term). The Company is
entitled to a minimum notice period of three (3) months.
Employment Contract: Michelle Simson – Manager Corporate Affairs/Company Secretary
Base salary of $227,630* per annum (exclusive of superannuation).
Payment of termination benefit on termination by the employer, other than for gross misconduct,
equals three (3) months’ salary.
Notice period of three (3) months.
* The figures stated represent the respective fees as at 30 June 2019. An increase was implemented during 2018/19.
Signed in accordance with a resolution of directors made pursuant to section 298(2) of the Corporations
Act 2001 (Cth).
On behalf of the directors
TOM SANDERS
Executive Chairman
Perth, 22 August 2019
2019 Annual Report 22
Auditor’s Independence Declaration
23 Breaker Resources NL
Statement of Profit or Loss and Other Comprehensive Income
Statement of Profit or Loss and Other Comprehensive Income
for the Financial Year ended 30 June 2019
Income
Government grant and incentive
Interest income
Other income
Total income
Expenses
Administration expenses
Depreciation expenses
Employee benefits expenses
Exploration and evaluation expenses
Share-based payment expenses
Other expenses
Total expenses
Notes
2019
$
2018
$
4
4
4
4
4
4
-
91,086
7,000
98,086
30,000
207,210
20,490
257,700
(785,535)
(172,758)
(304,747)
(570,818)
(103,063)
(239,657)
(14,418,057)
(13,351,027)
(724,580)
(2,616)
(64,737)
-
(16,408,293)
(14,329,302)
Profit/(Loss) before income tax
(16,310,207)
(14,071,602)
Income tax expense
6
-
-
Profit/(Loss) for the year
(16,310,207)
(14,071,602)
Other comprehensive income
-
-
Total comprehensive income/(loss) for the year
(16,310,207)
(14,071,602)
Profit/(Loss) attributable to owners of the Company
(16,310,207)
(14,071,602)
Total comprehensive income/(loss) attributable to
owners of the Company
(16,310,207)
(14,071,602)
Basic and diluted profit/(loss) per share attributable
to the ordinary equity holders of the Company
(cents per share)
15
(9.30)
(9.90)
The above Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction
with the accompanying notes.
2019 Annual Report 24
Statement of Financial Position
Statement of Financial Position
as at 30 June 2019
Current Assets
Cash and cash equivalents
Term deposits
Trade and other receivables
Other financial assets
Prepaid service
Total Current Assets
Non-Current Assets
Plant and equipment
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Total Current Liabilities
Total Liabilities
Net Assets
Equity
Contributed equity
Share-based payment reserve
Accumulated profit/(loss)
Notes
2019
$
2018
$
7
7
8
9
11
10
12
3,875,956
1,050,000
353,321
71,755
-
5,173,422
-
295,703
70,390
12,103
5,351,032
5,551,618
429,867
429,867
460,119
460,119
5,780,899
6,011,737
541,396
541,396
1,227,956
1,227,956
541,396
1,227,956
5,239,503
4,783,781
13
53,092,600
37,051,251
1,747,915
1,140,114
(49,601,012)
(33,407,584)
Capital and reserves attributable to owners of the
Company
5,239,503
4,783,781
Total Equity
5,239,503
4,783,781
The above Statement of Financial Position should be read in conjunction with the accompanying notes.
25 Breaker Resources NL
Statement of Changes in Equity
Statement of Changes in Equity
for the Financial Year ended 30 June 2019
Attributable to owners of the Company
Contributed
Equity
$
Notes
Share-
based
Payments
Reserve
$
Accumulated
Profit/(Losses)
$
Total
$
Balance at 30 June 2017
25,342,430
1,817,586 (20,078,191)
7,081,825
Profit/(Loss) for the year
Total comprehensive income/(loss) for
the year
Options issued during the year
Options expired and transferred to
accumulated losses
Transactions with owners in their
capacity as owners:
Contributions of equity net of
transaction costs
-
-
-
-
- (14,071,602) (14,071,602)
- (14,071,602) (14,071,602)
64,737
-
64,737
(742,209)
742,209
-
13
11,708,821
-
- 11,708,821
Balance at 30 June 2018
37,051,251
1,140,114 (33,407,584)
4,783,781
Profit/(Loss) for the year
Total comprehensive income/(loss) for
the year
Options issued during the year
Options expired/withdrawn and
transferred to accumulated loss
Transactions with owners in their
capacity as owners:
Contributions of equity net of
transaction costs
-
-
-
-
- (16,310,207) (16,310,207)
- (16,310,207) (16,310,207)
724,580
-
724,580
(116,779)
116,779
-
13
16,041,349
-
- 16,041,349
Balance at 30 June 2019
53,092,600
1,747,915 (49,601,012)
5,239,503
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.
2019 Annual Report 26
Statement of Cash Flows
Statement of Cash Flows
for the Financial Year ended 30 June 2019
Cash flows from operating activities
Payments to suppliers and employees
Payments for exploration and evaluation
expenditure
Receipts from government grant and incentive
Other income received
Interest received
Notes
2019
$
2018
$
(1,128,117)
(854,330)
(15,070,750)
(12,331,074)
-
7,000
91,086
30,000
20,490
207,210
Net cash inflow/(outflow) from operating activities
17
(16,100,781)
(12,927,704)
Cash flows from investing activities
Payments for plant and equipment
Payments for other financial assets
Investment in term deposits
Withdrawn from term deposits
(186,669)
(1,365)
(263,675)
(733)
(7,350,000)
(10,750,000)
6,300,000
14,334,522
Net cash inflow/(outflow) from investing activities
(1,238,034)
3,320,114
Cash flows from financing activities
Proceeds from issue of ordinary shares
Share issue transaction costs
16,905,143
11,557,187
(863,794)
(583,091)
Net cash inflow/(outflow) from financing activities
16,041,349
10,974,096
Net increase/(decrease) in cash and cash
equivalents
(1,297,466)
1,366,506
Cash and cash equivalents at the beginning of the
period
5,173,422
3,806,916
Cash and cash equivalents at the end of the period
7
3,875,956
5,173,422
The above Statement of Cash Flows should be read in conjunction with the accompanying notes.
27 Breaker Resources NL
Notes to the Financial Statements
Notes to the Financial Statements
for the Year ended 30 June 2019
1. General information
Breaker Resources NL is a public company listed on the Australian Securities Exchange, incorporated in
Australia and operating in Australia. The Company’s registered office and its principal place of business
is 12 Walker Avenue, West Perth WA 6005. Breaker Resources NL’s principal activity is mineral exploration
and it is a for-profit entity for the purposes of preparing the Financial Statements.
These Financial Statements are for Breaker Resources NL as an individual entity and are presented in the
Australian currency. The Financial Statements were authorised for issue by the directors on 22 August
2019. The directors have the power to amend and reissue the Financial Statements.
2. Significant accounting policies
The principal accounting policies adopted in the preparation of the Financial Statements are set out
below.
(a)
Basis of preparation
These general purpose financial statements have been prepared in accordance with the
Corporations Act 2001 (Cth) (Corporations Act) and Australian Accounting Standards and
Interpretations (Standards) issued by the Australian Accounting Standards Board (AASB). The
Financial Statements and notes of the Company also comply with International Financial Reporting
Standards issued by the International Accounting Standards Board.
These Financial Statements have been prepared under the historical cost convention. Historical
cost is generally based on the fair values of the consideration given in exchange for assets. All
amounts are presented in Australian dollars, unless otherwise noted.
Going concern
The Financial Statements have been prepared on the basis of going concern which assumes
continuity of normal business activities and the realisation of assets and settlement of liabilities in
the ordinary course of business.
The ability of the Company to continue as a going concern is dependent upon funding to provide
adequate working capital for a further 12 months from the date of signature of the Financial
Statements. The directors intend to raise capital if it is needed. Therefore, they are satisfied that the
going concern basis of preparation is appropriate.
The Financial Statements do not include any adjustments relating to the recoverability and
classification of recorded asset amounts or to the amounts and classification of liabilities that may
be necessary should the Company be unable to continue as a going concern.
(b) New and revised accounting standards
i.
Amendments to Accounting Standards that are mandatorily effective for the current year
In the current year, the Company has applied the below applicable amendments to
Standards issued by the AASB that are mandatorily effective for an accounting period that
begins on or after 1 July 2018, and therefore relevant for the current year end.
2019 Annual Report 28
Notes to the Financial Statements
AASB 9 ‘Financial Instruments’ and the relevant amending standards
In the current year, the Company has applied AASB 9 Financial Instruments (as amended)
and the related consequential amendments to other Standards that are effective for an
annual period that begins on or after 1 July 2018. The transition provisions of AASB 9 allow an
entity not to restate comparatives. The adoption has had no impact on the Company’s
financial position, profit or loss, other comprehensive income or total comprehensive income
in the current year or previous year.
AASB 9 introduced new requirements for:
-
-
-
the classification and measurement of financial assets and financial liabilities;
impairment of financial assets; and
general hedge accounting.
Details of these new requirements as well as their impact on the Financial Statements are
described below.
The date of initial application (ie. the date on which the Company has assessed its existing
financial assets and financial liabilities in terms of the requirements of AASB 9) is 1 July 2018.
Accordingly, the Company has applied the requirements of AASB 9 to instruments that
continue to be recognised as at 1 July 2018 and has not applied the requirements to
instruments that have already been derecognised as at 1 July 2018.
All recognised financial assets that are within the scope of AASB 9 are required to be
subsequently measured at amortised cost or fair value on the basis of the entity’s business
model for managing the financial assets and the contractual cash flow characteristics of
the financial assets.
Specifically:
- Debt investments that are held within a business model whose objective is to collect the
contractual cash flows, and that have contractual cash flows that are solely payments
of principal and interest on the principal amount outstanding, are subsequently
measured at amortised cost;
- Debt investments that are held within a business model whose objective is both to
collect the contractual cash flows and to sell the debt instruments, and that have
contractual cash flows that are solely payments of principal and interest on the principal
amount outstanding, are subsequently measured at fair value through other
comprehensive income (FVTOCI); and
- All other debt investments and equity investments are subsequently measured at fair
value through profit or loss (FVTPL).
When a debt investment measured at FVTOCI is derecognised, the cumulative gain or loss
previously recognised in other comprehensive income is reclassified from equity to profit or
loss as a reclassification adjustment. In contrast, for an equity investment designated as
measured at FVTOCI, the cumulative gain or loss previously recognised in other
comprehensive income is not subsequently reclassified to profit or loss.
Debt instruments that are subsequently measured at amortised cost or at FVTOCI are subject
to impairment (see below).
The directors of the Company reviewed and assessed the Company’s existing financial
assets as at 1 July 2018 based on the facts and circumstances that existed at that date and
concluded that the initial application of AASB 9 has had the following impact on the
Company’s financial assets as regards their classification and measurement:
29 Breaker Resources NL
Notes to the Financial Statements
-
Financial assets classified as held-to-maturity and loans and receivables under AASB 139
that were measured at amortised cost continue to be measured at amortised cost
under AASB 9 as they are held within a business model to collect contractual cash flows
and these cash flows consist solely of payments of principal and interest on the principal
amount outstanding.
Impairment of financial assets
In relation to the impairment of financial assets, AASB 9 requires an expected credit loss
model as opposed to an incurred credit loss model under AASB 139. The expected credit
loss model requires the Company to account for expected credit losses and changes in
those expected credit losses at each reporting date to reflect changes in credit risk since
initial recognition of the financial assets. In other words, it is no longer necessary for a credit
event to have occurred before credit losses are recognised.
Specifically, AASB 9 requires the Company to recognise a loss allowance for expected credit
losses on:
-
-
-
-
debt investments measured subsequently at amortised cost or at FVTOCI;
lease receivables;
trade receivables and contract assets; and
financial guarantee contracts to which the impairment requirements of AASB 9 apply.
The directors assess all its financial assets, including cash and bank balances and receivables,
having as low credit risk at each reporting date as they are held with reputable banking
institutions or government bodies.
Classification and measurement of financial liabilities
One major change introduced by AASB 9 in the classification and measurement of financial
liabilities relates to the accounting for changes in the fair value of a financial liability
designated as at FVTPL attributable to changes in the credit risk of the issuer.
Specifically, AASB 9 requires that the changes in the fair value of the financial liability that is
attributable to changes in the credit risk of that liability be presented in other comprehensive
income, unless the recognition of the effects of changes in the liability's credit risk in other
comprehensive income would create or enlarge an accounting mismatch in profit or loss.
Changes in fair value attributable to a financial liability's credit risk are not subsequently
reclassified to profit or loss, but are instead transferred to retained earnings when the
financial liability is derecognised. Previously, under AASB 139, the entire amount of the
change in the fair value of the financial liability designated as at FVTPL was presented in
profit or loss.
The application of AASB 9 has had no impact on the classification and measurement of the
Company’s financial liabilities.
Disclosures in relation to the initial application of AASB9
There were no financial assets or financial liabilities which the Company had previously
designated as at FVTPL under AASB 139 that were subject to reclassification or which the
Company has elected to reclassify upon the application of AASB 9. There were no financial
assets or financial liabilities which the Company has elected to designate as at FVTPL at the
date of initial application of AASB 9.
AASB 2016-5 ‘Amendments to Australian Accounting Standards – Classification and
Measurement of Share-based Payment Transactions’,
The Company has adopted AASB 2016-5 for the first time in the current year. The
amendments clarify the following:
2019 Annual Report 30
Notes to the Financial Statements
-
In estimating the fair value of a cash-settled share-based payment, the accounting for
the effects of vesting and non-vesting conditions should follow the same approach as
for equity-settled share-based payments;
- Where tax law or regulation requires an entity to withhold a specified number of equity
instruments equal to the monetary value of the employee’s tax obligation to meet the
employee’s tax liability which is then remitted to the tax authority, ie. the share-based
payment arrangement has a ‘net settlement feature’, such an arrangement should be
classified as equity-settled in its entirety, provided that the share-based payment would
have been classified as equity-settled had it not included the net settlement feature; and
- A modification of a share-based payment that changes the transaction from cash-
settled to equity-settled should be accounted for as follows:
the original liability is derecognised;
the equity-settled share-based payment is recognised at the modification date fair
value of the equity instrument granted to the extent that services have been
rendered up to the modification date; and
any difference between the carrying amount of the liability at the modification date
and the amount recognised in equity should be recognised in profit or loss
immediately.
ii.
New and revised Accounting Standards in issue not yet adopted
At the date of authorisation of the Financial Statements, the Standards applicable to the
Company’s business listed below were in issue but not yet effective. The potential effect of
the revised Standards on the Company’s financial statements has not yet been determined.
AASB 9 ‘Lease’, effective for annual reporting periods beginning on or after 1 January 2019,
expected to be initially applied in the financial year ending 30 June 2020.
AASB 2008-1 ‘Amendments to Australian Accounting Standards – Annual Improvements
2015-2017 Cycle’, effective for annual reporting periods beginning on or after 1 January
2019, expected to be initially applied in the financial year ending 30 June 2020.
(c)
Segment reporting
An operating segment is defined as a component of an entity that engages in business activities
from which it may earn revenues and incur expenses, whose operating results are regularly
reviewed by the entity’s chief operating decision maker to make decisions about resources to be
allocated to the segment and assess its performance, and for which discrete financial information
is available.
Operating segments are reported in a manner consistent with the internal reporting provided to
the chief operating decision maker. The Company’s 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.
(d) Government grants
Government grants are not recognised until there is reasonable assurance that the Company will
comply with the conditions attaching to them and that the grants will be received. Government
grants that are receivable as compensation for expenses or losses already incurred or for the
purpose of giving immediate financial support to the Company with no future related costs are
recognised in profit or loss in the period in which they become receivable.
(e)
Interest income
Interest income is accrued on a time basis, by reference to the principal outstanding and at the
effective interest rate applicable.
31 Breaker Resources NL
Notes to the Financial Statements
(f)
Income tax
The income tax expense for the year is the tax payable on the current year’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 differences 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 operates and
generates taxable income. Management periodically evaluates positions taken in tax returns with
respect to situations in which applicable tax regulation is subject to interpretation. It creates
provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the Financial Statements.
However, the deferred tax income is not accounted for if it arises from initial recognition of an asset
or liability in a transaction that at the time of the transaction affects neither accounting nor taxable
profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted
or substantively enacted by the reporting date and are expected to apply when the related
deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses
only if it is probable that future taxable amounts will be available to utilise these temporary
differences and losses. The carrying amount of deferred tax assets is reviewed at the end of each
reporting period and reduced to the extent that it is no longer probable that sufficient taxable
profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current
tax assets and liabilities and when the deferred tax balances relate to the same taxation authority.
Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to
offset and intends either to settle on a net basis, or to realise the asset and settle the liability
simultaneously.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items
recognised in other comprehensive income or directly in equity. In this case, the tax is also
recognised in other comprehensive income or directly in equity, respectively.
(g)
Impairment of non-financial assets
At the end of each reporting period, the Company reviews the carrying amounts of its non-
financial assets to determine whether there is any indication that those assets have suffered an
impairment loss. An impairment loss is recognised for the amount by which the asset’s carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s 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 which the estimates
of future cash flows have not been adjusted.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying
amount of the asset is reduced to its recoverable amount. An impairment loss is recognised
immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case
the impairment loss is treated as a revaluation decrease.
When an impairment loss subsequently reverses, the carrying amount of the asset is increased to
the revised estimate of its recoverable amount, but so 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 prior years. A reversal of an impairment loss is recognised immediately
in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal
of the impairment loss is treated as a revaluation increase.
2019 Annual Report 32
Notes to the Financial Statements
(h) Cash and cash equivalents
For the purpose of presentation in the Statement of Cash Flows, cash and cash equivalents include
cash on hand, deposits held at call with financial institutions, other short term highly liquid
investments with original maturities of three (3) months or less that are readily convertible to known
amounts of cash and which are not subject to significant risk of changes in value, and bank
overdrafts.
(i)
(j)
Trade and other receivables
Receivables are recognised and carried at original invoice amount less a provision for any
uncollectible debts. An estimate for doubtful debts is made when collection of the full amount is
no longer probable. Bad debts are written off as incurred.
Financial assets
There are three principal classification categories for financial assets: measured at amortised cost,
at FVTOCI and at FVTPL. The classification of financial assets is generally based on the business
model in which a financial asset is managed and its contractual cash flow characteristics.
Debt investments that are held within a business model whose objective is to collect the
contractual cash flows, and that have contractual cash flows that are solely payments of principal
and interest on the principal amount outstanding, are subsequently measured at amortised cost.
Debt investments that are held within a business model whose objective is both to collect the
contractual cash flows and to sell the debt instruments, and that have contractual cash flows that
are solely payments of principal and interest on the principal amount outstanding, are
subsequently measured at FVTOCI.
All other debt investments and equity investments are subsequently measured at FVTPL.
Impairment
The Company assesses at each reporting date whether there is an expected credit loss in relation
to the impairment of financial assets, The Company accounts for expected credit losses and
changes in those expected credit losses at each reporting date to reflect changes in credit risk
since initial recognition of the financial assets.
(k)
Plant and equipment
All plant and equipment is stated at historical cost less depreciation. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset,
as appropriate, only when it is probable that future economic benefits associated with the item will
flow to the Company and the cost of the item can be measured reliably. The carrying amount of
any component accounted for as a separate asset is derecognised when replaced. All other
repairs and maintenance are charged to the Statement of Profit or Loss and Other Comprehensive
Income during the reporting period in which they are incurred.
Depreciation of plant and equipment is calculated using the straight line method to allocate their
cost or revalued amounts, net of their residual values, over their estimated useful lives or, in the
case of leasehold improvements and certain leased plant and equipment, the shorter lease term.
All plant and equipment is depreciated at the rate of 25% per annum.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each
reporting date. An asset’s carrying amount is written down immediately to its recoverable amount
if the asset’s carrying amount is greater than its estimated recoverable amount (refer to Note 2(g)).
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These
are included in the Statement of Profit or Loss and Other Comprehensive Income.
33 Breaker Resources NL
Notes to the Financial Statements
(l)
Exploration and evaluation costs
Exploration and evaluation costs are written off in the year they are incurred.
(m)
(n)
Trade and other payables
These amounts represent liabilities for goods and services provided to the Company prior to the
end of the financial year which are unpaid. The amounts are unsecured, non-interest bearing and
are paid on normal commercial terms. They are presented as current liabilities unless payment is
not due within 12 months after the reporting period.
Employee benefits
Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits, and annual leave that are
expected to be settled wholly within 12 months after the end of the period in which the employees
render the related service are recognised in respect of employees’ services up to the end of the
reporting period and are measured at the amounts expected to be paid when the liabilities are
settled. The short-term employee benefit obligations are presented as payables.
Other long-term employee benefit obligations
The liabilities for long service leave and annual leave that are not expected to be settled wholly
within 12 months after the end of the period in which the employees render the related service are
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 end of the
reporting period using the projected unit credit method. Consideration is given to expected future
wage and salary levels, experience of employee departures and periods of service. Expected
future payments are discounted using market yields at the end of the reporting period of
government bonds with terms and currencies that match, as closely as possible, the estimated
future cash outflows.
Remeasurements as a result of experience adjustments and changes in actuarial assumptions are
recognised in profit or loss.
(o)
Share-based payments
The Company provides benefits to employees (including directors and contractors) and suppliers
in the form of share-based payment transactions, whereby employees and suppliers render goods
or services in exchange for shares or rights over shares (equity-settled transactions) (refer to Note
18).
The cost of these equity-settled transactions with employees is measured by reference to the fair
value at the date at which they are granted. The fair value of options is determined by an internal
valuation using a Black-Scholes option pricing model. The cost of equity-settled transactions is
recognised, together with a corresponding increase in equity, over the period in which any
performance conditions are fulfilled, ending on the date on which the relevant employees or
suppliers become fully entitled to the award (vesting date).
The cumulative expense recognised for equity-settled transactions at each reporting date until
vesting date reflects:
the extent to which the vesting period has expired; and
the number of options that, in the opinion of the directors of the Company, will ultimately vest.
This opinion is formed based on the best available information at balance date. 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. No expense is recognised
for awards that do not ultimately vest, except for awards where vesting is conditional upon a
market condition.
2019 Annual Report 34
Notes to the Financial Statements
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of
cancellation, and any expense not yet recognised for the award is recognised immediately.
However, if a new award is substituted for the cancelled award, and designated as a replacement
award on the date that it is granted, the cancelled and new award are treated as if they were a
modification of the original award.
(p)
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.
(q) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the
GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of
the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The
net amount of GST recoverable from, or payable to, the taxation authority is included with other
receivables or payables in the Statement of Financial Position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing
or financing activities which are recoverable from, or payable to the taxation authority, are
presented as operating cash flows.
(r) Critical judgements, estimates and assumptions
The preparation of these Financial Statements requires the use of certain critical accounting
estimates, which, by definition, will seldom equal the actual results. It also requires management
to exercise its judgement in the process of applying the Company’s accounting policies. The areas
involving a higher degree of judgement or complexity, or areas where assumptions and estimates
are significant to the Financial Statements are:
Environmental issues
Balances disclosed in the Financial Statements and notes thereto are not adjusted for any pending
or enacted environmental legislation, and the directors’ understanding thereof. At the current
stage of the Company’s development and its current environmental impact, the directors believe
such treatment is reasonable and appropriate.
Taxation
Balances disclosed in the Financial Statements and the notes thereto related to taxation are based
on the best estimates of the directors. These estimates take into account both the financial
performance and position of the Company as they pertain to current income taxation legislation,
and the directors’ understanding thereof. No adjustment has been made for pending or future
taxation legislation. The current income tax position represents the directors’ best estimate,
pending an assessment by the Australian Taxation Office.
35 Breaker Resources NL
Notes to the Financial Statements
3. Financial risk management
The Company’s activities expose it to a variety of financial risks: market risk (including currency risk, interest
rate risk and price risk), credit risk and liquidity risk. The Company’s overall risk management program
focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on
the financial performance of the Company.
Risk management is carried out by the Board via the audit and risk committees as the Company believes
that it is crucial for all directors to be involved in this process. The Executive Chairman, with the assistance
of senior management as required, has responsibility for identifying, assessing, treating and monitoring
risks and reporting to the Board on risk management.
(a) Market risk
Foreign exchange risk
As all current operations are within Australia the Company is not exposed to foreign exchange risk.
Commodity price risk
Given the current level of operations the Company is not directly exposed to commodity price risk.
Interest rate risk
The Company is exposed to movements in market interest rates on cash and cash equivalents and
bank deposits. The Company’s policy is to monitor the interest rate yield curve out to six (6) months
to ensure a balance is maintained between the liquidity of cash assets and the interest rate return.
The entire balance of cash and bank deposits for the Company of $4,925,956 (2018: $5,173,422) is
subject to interest rate risk. The weighted average interest rate received on cash and cash
equivalents by the Company was 1.71% (2018: 1.53%).
Sensitivity analysis
At 30 June 2019, if interest rates had changed by -/+ 100 basis points from the weighted average
rate for the year with all other variables held constant, post-tax loss for the Company would have
been $50,497 lower/higher (2018: $62,987) as a result of lower/higher interest income from cash
and cash equivalents.
(b) Credit risk
The Company has no significant concentrations of credit risk. The maximum exposure to credit risk
at balance date is the carrying amount of those assets as disclosed in the Statement of Financial
Position and Notes to the Financial Statements.
As the Company does not presently have any debtors, lending, significant stock levels or any other
credit risk, a formal credit risk management policy is not maintained.
(c)
Liquidity risk
The Company manages liquidity risk by continuously monitoring forecast and actual cash flows
and ensuring sufficient cash and marketable securities are available to meet the current and future
commitments of the Company. Due to the nature of the Company’s activities, being mineral
exploration, the Company does not have ready access to credit facilities, with the primary source
of funding being equity raisings.
The Board constantly monitors the state of equity markets in conjunction with the Company’s
current and future funding requirements, with a view to initiating appropriate capital raisings as
required.
The financial liabilities of the Company are generally confined to trade and other payables as
disclosed in the Statement of Financial Position. All trade and other payables are non-interest
bearing and due within 12 months of the reporting date.
2019 Annual Report 36
Notes to the Financial Statements
(d)
Fair value estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and
measurement or for disclosure purposes. All financial assets and financial liabilities of the Company
at the balance date are recorded at amounts approximating their carrying amount due to their
short-term nature.
4. Income and expenses
(a)
Income from continuing operations includes the following revenue items:
Government grant and incentive
Interest income
Other
(b)
Loss for the year includes the following specific expenses:
Depreciation expenses
Exploration and evaluation expenses
(c)
Employee benefit expenses:
Wages and superannuation
Directors’ fees
Annual leave provision
Other
5. Operating segments
2019
$
-
91,086
7,000
98,086
2018
$
30,000
207,210
20,490
257,700
2019
$
2018
$
172,758
103,063
14,418,057
13,351,027
2019
$
139,441
128,936
616
35,754
304,747
2018
$
134,940
80,000
(5,706)
30,423
239,657
For management purposes, the Company has identified only one (1) reportable segment as exploration
activities undertaken in Australia. This segment includes activities associated with the determination and
assessment of the existence of commercial economic reserves from the Company’s mineral assets in this
geographic location. Segment performance is evaluated based on the operating profit and loss and
cash flows and is measured in accordance with the Company’s accounting policies.
Segment revenue
Reconciliation of segment revenue to total revenue before tax:
Government grant and incentive
Interest revenue
Other income
Total revenue
37 Breaker Resources NL
2019
$
2018
$
-
-
91,086
7,000
98,086
-
30,000
207,210
20,490
257,700
Notes to the Financial Statements
Segment result
Reconciliation of segment result to loss before tax:
Depreciation expenses
Other corporate and administration income/(expenses), net
Net profit/(loss) before tax
2019
$
2018
$
(14,418,057)
(13,351,027)
(172,758)
(1,719,392)
(103,063)
(617,512)
(16,310,207)
(14,071,602)
Segment operating assets
381,562
399,309
Reconciliation of segment operating assets to total assets:
Other corporate and administration assets
Total assets
Segment additions to non-current assets
Other corporate additions to non-current assets
Total additions to non-current assets
5,399,337
5,780,899
5,612,428
6,011,737
134,261
6,545
140,806
240,782
64,441
305,223
Segment operating liabilities
381,974
1,046,770
Reconciliation of segment operating liabilities to total liabilities:
Other corporate and administration liabilities
Total liabilities
6. Income tax
Income tax expense
Current tax
Deferred tax
Numerical reconciliation of income tax expense to prima facie
tax payable
Profit/(Loss) from continuing operations before income tax
expense
Prima facie tax benefit at the Australian tax rate of 30% (2018:
27.5%)
Tax effect of amounts which are not deductible (taxable) in
calculating taxable income:
Capital raising costs
Entertainment
Share-based payment
159,422
541,396
181,186
1,227,956
2019
$
2018
$
-
-
-
-
(16,310,207)
(14,071,602)
(4,893,062)
(3,869,691)
(133,214)
3,926
221,005
(85,164)
1,841
(223,483)
(4,801,345)
(4,176,497)
Movements in unrecognised temporary differences
(29,633)
(49,958)
Tax effect of current year tax losses for which no deferred tax
asset has been recognised
Income tax expense
4,830,978
4,226,455
-
-
2019 Annual Report 38
Notes to the Financial Statements
Unrecognised temporary differences
Deferred tax liabilities on income tax account
Prepayments
Plant and equipment
FBT payable
DTA used to offset DTL
Deferred tax liabilities
Deferred tax assets on income tax account
Accruals
Provisions
Capital raising costs
Carry forward tax losses
DTA used to offset DTL
2019
$
2018
$
21,458
121,577
-
15,256
116,864
803
(143,035)
(132,923)
-
-
19,500
12,280
386,860
10,576,826
(143,035)
10,852,431
29,929
12,832
254,533
7,222,804
(132,923)
7,387,175
Deferred tax liabilities
-
-
Breaker Resources NL is no longer considered a base rate entity for income tax purposes and is therefore
subject to income tax at a rate of 30% (2018: 27.5%). As a result, the deferred tax assets of the Company
have been adjusted in the 2019 year to reflect the increase in corporate tax rate applicable to the
Company.
Net deferred tax assets have not been brought to account as it is not probable within the immediate
future that tax profits will be available against which deductible temporary differences and tax losses can
be utilised. The Company’s ability to use losses in the future is subject to the Company satisfying the
relevant tax authority’s criteria for using these losses.
The deductible temporary differences and tax losses do not expire under current tax legislation. Deferred
tax assets have not been recognised in respect of these items because it is not probable that future
taxable profit will be available against which the Company can utilise benefits. The utilisation of tax losses
is dependent on the Company satisfying the continuity of ownership test or the same business test at the
time the tax losses are applied against taxable income.
The Company participated in the federal government’s 2016/17 Exploration Development Incentive
Scheme (EDI) for eligible exploration entities. As a result the Company has foregone 2017 income tax
losses to the extent of $7,111,915 in exchange for the EDI credits of $1,955,776 for the eligible shareholders.
7. Cash and cash equivalents
Cash at bank and in hand
Cash and cash equivalents as shown in the Statement of
Financial Position and the Statement of Cash Flows
2019
$
2018
$
3,875,956
5,173,422
3,875,956
5,173,422
39 Breaker Resources NL
Notes to the Financial Statements
2019
$
2018
$
Term deposits classified separate to cash on face of Statement of
Financial Position
1,050,000
-
Cash and cash equivalents include short-term deposits made for varying periods of between one (1)
month and three (3) months depending on the immediate cash requirements of the Company and earn
interest at the respective short-term deposit rates.
As at 30 June 2019, the Company had a term deposit of $1,050,000 with maturity of four (4) months (2018:
Nil).
8. Trade and other receivables
Prepayments
GST receivable and FBT instalment
Other receivables
2019
$
71,529
281,792
-
353,321
2018
$
55,475
238,689
1,539
295,703
The carrying amounts of trade and other receivables are assumed to be the same as their fair values, due
to their short-term nature.
9. Other financial assets
Term deposits as a security
Other financial assets
10. Plant and equipment
2019
$
70,992
763
71,755
2018
$
70,390
-
70,390
2019
2018
Furniture &
office
equipment
$
Exploration
equipment
$
Motor
vehicles
$
Total
$
Furniture &
office
equipment
$
Exploration
equipment
$
Motor
vehicles
$
Total
$
Cost
132,999
184,628 799,758 1,117,385
126,454
165,650 684,475 976,579
Accumulated depreciation
(84,694)
(141,908) (460,916) (687,518)
(65,644)
(126,588) (324,228) (516,460)
Net book amount
48,305
42,720 338,842
429,867
60,810
39,062 360,247 460,119
Opening net book amount
60,810
39,061 360,248
460,119
6,104
37,551 214,304 257,959
Additions
6,545
18,979 115,282
140,806
64,441
13,881 226,901 305,223
Depreciation charge
(19,050)
(15,320) (136,688) (171,058)
(9,735)
(12,371)
(80,957) (103,063)
Closing net book amount
48,305
42,720 338,842
429,867
60,810
39,061 360,248 460,119
2019 Annual Report 40
Notes to the Financial Statements
11. Prepaid service
Prepaid service
2019
$
2018
$
-
12,103
The Company issued 500,000 options to a supplier in exchange of the use of certain intellectual property
owned by the supplier for a period of three (3) years to the year ended 30 June 2019. The prepaid service
was amortised over the agreed period of the use of the property.
12.
Trade and other payables
Trade creditors
Other payables and accruals
2019
$
412,890
128,506
541,396
2018
$
1,056,826
171,130
1,227,956
Trade payables are unsecured and are usually paid within 30 days of recognition. The carrying amounts
of trade and other payables are assumed to be the same as their fair values, due to their short-term
nature.
13. Contributed equity
(a)
Share capital
2019
2018
Notes
Number
$
Number
$
Ordinary shares fully paid
(b),(d) 203,689,492
53,046,447
146,101,594
37,004,598
Ordinary shares partly paid
(b),(d)
4,615,373
46,153
4,665,373
46,653
Total issued capital
208,304,865
53,092,600
150,766,967
37,051,251
(b) Movements in ordinary share capital
Beginning of the year
Issued during the year:
Fully paid shares issued in
exchange for services
Placements to sophisticated
and professional investors
Fully paid shares under a Share
Purchase Plan
Partly paid shares converted to
fully paid shares
Transaction costs
End of the year
2019
2018
Number
$
Number
$
150,766,967
37,051,251
133,493,607
25,342,430
-
-
1,036,167
734,725
57,537,898
16,895,643
14,285,715
10,000,000
-
-
-
-
1,951,478
1,366,000
9,500
(863,794)
-
-
191,187
(583,091)
208,304,865
53,092,600
150,766,967
37,051,251
41 Breaker Resources NL
Notes to the Financial Statements
(c) Movements in options on issue
Beginning of the year
Issued
Expired or lapsed
End of the year
2019
Number
5,650,000
4,250,000
(750,000)
2018
Number
5,800,000
250,000
(400,000)
9,150,000
5,650,000
All options on issue are exercisable on a 1:1 basis for the Company’s ordinary shares and carry no
rights to dividends and no voting rights. The options are exercisable at prices between $0.432 and
$0.730 and expire between 31 December 2019 and 31 December 2021.
(d) Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of
the Company in proportion to the number of and amounts paid on the shares held. On a show of
hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one
(1) vote, and upon a poll each share is entitled to one (1) vote, in proportion to the number of and
amounts paid as a proportion of the issue price on the shares held (excluding any amounts paid
up in advance of a call). Ordinary shares have no par value and the Company does not have a
limited amount of authorised capital.
The partly paid ordinary shares have a total issue price of $0.20 and are paid up to $0.01. The
balance is payable by calls made by the Company no earlier than four (4) years after the date of
issue (December 2013). Upon becoming fully paid, each partly paid share will rank equally in all
respects with the other issued fully paid shares in the Company.
(e) Capital risk management
The Company’s objective when managing capital is to safeguard its ability to carry on as a going
concern, so that it may continue to provide returns for shareholders and benefits for other stakeholders.
Due to the nature of the Company’s activities, being mineral exploration, the Company does not
have ready access to credit facilities, with the primary source of funding being equity raisings.
Therefore, the focus of capital risk management is the current working capital position against the
requirements of the Company to meet exploration programs and corporate overheads. The
Company’s strategy is to ensure appropriate liquidity is maintained to meet anticipated operating
requirements, with a view to initiating appropriate capital raisings as required.
The working capital position of the Company at 30 June 2019 and 30 June 2018 is as follows:
Cash and cash equivalents
Term deposits
Trade and other receivables
Other financial assets
Trade and other payables
Working capital position
14. Dividends
2019
$
3,875,956
1,050,000
353,321
71,755
2018
$
5,173,422
-
295,703
70,390
(541,396)
(1,227,956)
4,809,636
4,311,559
No dividends were paid during the financial year. No recommendation for payment of dividends has
been made.
2019 Annual Report 42
Notes to the Financial Statements
15.
Loss per share
(a)
Reconciliation of earnings used in calculating profit/(loss) per share
2019
$
2018
$
Profit/(Loss) attributable to the owners of the Company
used in calculating basic and diluted profit/(loss) per share
(16,310,207)
(14,071,602)
(b) Weighted average number of shares used as the denominator
Weighted average number of ordinary shares used as the
denominator in calculating basic and diluted loss per share
175,292,538
142,156,382
2019
Number
2018
Number
(c)
Information on classification of options
As the Company has made a loss for the year ended 30 June 2019, all options on issue are
considered antidilutive and have not been included in the calculation of diluted earnings per
share. These options could potentially dilute basic earnings per share in the future.
16. Commitments
(a)
Exploration Commitments
The Company must maintain current rights of tenure to tenements, which requires outlays of
expenditure in 2019/20. Under certain circumstances these commitments are subject to the
possibility of adjustment to the amount and/or timing of such obligations however they are
expected to be fulfilled in the normal course of operations.
Estimated expenditure on mining, exploration and prospecting leases for 2019/20 as at the date of
this report:
2019
$
2018
$
635,100
365,000
(b) Capital Commitments
There are no capital expenditure commitments for the Company as at 30 June 2019.
(c)
Lease Commitments: Company as Lessee
The Company leases its office under a non-cancellable operating lease expiring within one (1)
year. Commitments for minimum lease payments in relation to non-cancellable operating leases
are payable as follows:
Within one (1) year
Later than one (1) year but not later than five (5) years
2019
$
45,551
-
45,551
2018
$
45,551
-
45,551
43 Breaker Resources NL
Notes to the Financial Statements
17. Reconciliation of loss after income tax to net cash outflow from operating
activities
Reconciliation of net loss after income tax to net cash flow from
operating activities
Net profit/(loss) for the year
Non-cash items
Depreciation of non-current assets
Disposal of plant and equipment
Share-based payments of employee options
Share-based payments in exchange of services
Change in operating assets and liabilities
(Increase)/decrease in trade and other receivables
Increase/(decrease)in trade and other payables
2019
$
2018
$
(16,310,207)
(14,071,602)
172,758
2,616
724,580
12,104
(57,618)
(645,014)
103,063
-
64,737
747,929
(15,029)
243,198
Net cash inflow/(outflow) from operating activities
(16,100,781)
(12,927,704)
(a) Non-cash transactions
During the year, the Company granted 4,250,000 options to its employees as incentives. The value
of the options was included in the Share-based Payments (refer to Note 18).
18. Share-based payments
(a)
Employee share options
The Company provides benefits to employees (including directors and eligible contractors) of the
Company in the form of share-based payment transactions, whereby employees render services
in exchange for options to acquire ordinary shares. Options are granted under the plan for no
consideration.
The table below summarises the share-based payment options granted by Breaker Resources NL:
2019
2018
Weighted
average
exercise
price
cents
46.0
46.5
69.0
46.3
46.3
Number
5,150,000
4,250,000
250,000
9,150,000
9,150,000
Weighted
average
exercise
price
cents
45.6
73.0
40.4
43.7
46.0
Number
5,300,000
250,000
400,000
5,150,000
4,900,000
Outstanding at the beginning
of the year
Granted
Forfeited/cancelled/expired
Outstanding at year end
Exercisable at year end
A total of 250,000 unlisted employee options lapsed during the year. The weighted average
remaining contractual life of share options outstanding at the end of the financial year was 1.46
years (2018: 1.50 years) and the exercise prices ranged from 43.2 cents to 73.0 cents (2018: 43.2
cents to 73.0 cents).
2019 Annual Report 44
Notes to the Financial Statements
The weighted average fair value of the employee share options granted during the year was 16.76
cents (2018: 25.90 cents). The fair value of the options was estimated using a Black-Scholes pricing
model. Expected volatility was based on the historical movement of the underlying share price
around its average share price. The assumption that the historical volatility is indicative of future
trends may also not necessarily be the actual outcome.
Inputs into the pricing model
BRBOPT07
Grant date share price
Exercise price
Expected volatility
Option life
Risk-free interest rate
$0.350
$0.465
84.8%
3.09 years
2.09%
(b) Other party options
In addition to options issued to employees, the Company may also issue unlisted options to other
parties.
There were no other party options granted during the year.
(c)
Share-based payments expenses
During the year, an amount of $724,580 was recognised as a share-based payment expense. An
amount of $116,779 was transferred from the share-based payment reserve to accumulated losses
as a result of the lapse or expiry of 750,000 options.
19. Key management personnel transactions
The aggregate compensation made to directors and other members of key management personnel of
the Company is set out below:
Short term benefits
Post-employment benefits
2019
$
895,311
35,351
930,662
2018
$
915,589
31,490
947,079
There were no loans to/from key management personnel during the year. Detailed remuneration
disclosures are provided in the Remuneration Report commencing on page 12.
20. Related party transactions
In addition to the services provided by Mr Sanders, the value of which is shown as Mr Sanders’
remuneration in the Remuneration Report commencing on page 12, Goldfields Geological Associates is
also reimbursed for other Company expenses including software maintenance and other out-of-pocket
costs incurred on the Company’s behalf. The value of these expenses incurred during the year was
$41,762 (2018: $8,411).
The Company had no other transactions with related parties during the year except as outlined above
and the payments to the key management personnel disclosed in the Remuneration Report
commencing on page 12.
There were no guarantees provided to related parties during the year.
45 Breaker Resources NL
Notes to the Financial Statements
21. Remuneration of auditor
During the year the following fees were paid or payable for services provided by the auditor of the
Company, its related practices and non-related audit firms:
(a) Audit services
Rothsay Chartered Accountants – audit and review of
financial reports
Total remuneration for audit services
2019
$
2018
$
22,000
22,000
22,000
22,000
(b) Non-audit services
There were Nil non-audit services provided by the auditor of the Company, Rothsay Chartered
Accountants, during the year (2018: Nil).
22. Subsequent events
There were no matters or circumstances arising since the end of the reporting period that have
significantly affected or may significantly affect the operations of the Company and the results of those
operations or the state of the affairs of the Company in the financial period subsequent to 30 June 2019.
2019 Annual Report 46
Directors’ Declaration
Directors’ Declaration
The directors declare that:
the Financial Statements comprising the Statement of Profit or Loss and Other Comprehensive
Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows
and accompanying notes set out on pages 23 to 41 are in accordance with the Corporations Act
2001 (Cth), including:
i. complying with Accounting Standards, the Corporations Regulations 2001 (Cth) and other
mandatory professional reporting requirements; and
ii. giving a true and fair view of the Company’s financial position as at 30 June 2019 and of its
performance for the financial year ended on that date;
in the opinion of the directors there are reasonable grounds to believe that the Company will be able
to pay its debts as and when they become due and payable;
a statement that the attached financial statements are in compliance with International Financial
Reporting Standards has been included in the Notes to the Financial Statements; and
the directors have been given the declarations by the chief executive officer and chief financial
officer required by section 295A of the Corporations Act 2001 (Cth).
Signed in accordance with a resolution of the directors made pursuant to section 295(5) of the
Corporations Act 2001 (Cth).
On behalf of the directors
TOM SANDERS
Executive Chairman
Perth, 22 August 2019
47 Breaker Resources NL
Independent Audit Report
2019 Annual Report 48
Independent Audit Report
49 Breaker Resources NL
Independent Audit Report
2019 Annual Report 50
Independent Audit Report
51 Breaker Resources NL
ASX Additional Information
ASX Additional Information
Additional information required by the Australian Securities Exchange and not shown elsewhere in this
report is provided below. The information is current as at 30 September 2019.
Corporate Governance Statement
The 2019 Corporate Governance Statement of Breaker Resources NL is available on the Company’s
website at http://www.breakerresources.com.au/company/corporate-governance.
Distribution of Equity Securities
Analysis of numbers of equity security holders by size of holding:
Fully paid ordinary shares
Partly paid shares*
Number of
holders
Number of
shares
Number of
holders
Number of
shares
1-1,000
1,001-5,000
5,001-10,000
10,001-100,000
116
520
316
901
25,053
1,500,788
2,659,902
33,831,316
100,001 and over
241 165,760,433
2,094 203,777,492
8
25
8
20
11
72
3,775
67,730
56,058
692,484
3,707,326
4,527,373
* Note: A call has been made on the partly paid shares which is due and payable on 4 October 2019.
Unmarketable Parcel
There are 253 holders of unmarketable parcels of fully paid ordinary shares, based on the closing market
price of $0.28 on 30 September 2019.
Restricted Securities
There are no restricted securities on issue.
Voting Rights
All fully paid ordinary shares carry one (1) vote per share without restriction. Holders of partly paid shares
are entitled to a fraction of one (1) vote which is equivalent to the proportion which the amount paid
bears to the total issue price. Unlisted options carry no attaching voting rights.
Substantial Shareholders
The names of substantial shareholders who have notified the Company in accordance with section 671B
of the Corporations Act, and the details of their holding at the time of notification, are:
Shareholder
1
2
Mr Thomas Stephen Sanders & Mrs Helen Sanders
Norfolk Enchants Pty Ltd
Voting interest
Number
Voting power
%
22,560,154
15,500,000
12.33%
8.48%
2019 Annual Report 52
ASX Additional Information
Top 20 Shareholders
The names of the 20 largest holders of quoted fully paid ordinary shares (ASX: BRB) are:
Shareholder
Ordinary shares
Number
Equity held
%
Norfolk Enchants Pty Ltd
Mr Thomas Stephen Sanders & Mrs Helen Sanders
BT Portfolio Services Limited
Mr Thomas Stephen Sanders & Mrs Helen Sanders
JP Morgan Nominees Australia Pty Ltd
Gurravembi Investments Pty Ltd
Kurraba Investments Pty Ltd
Twynam Investments Pty Ltd
HSBC Custody Nominees (Australia) Limited
Brispot Nominees Pty Ltd
Ilwella Pty Ltd
T T Nicholls Pty Ltd
Gurravembi Investments Pty Ltd
Ausdrill International Pty Ltd
Tom Hume Pty Ltd
Kemast Investments Pty Ltd
Bradley Scott Dvorak
UBS Nominees Pty Ltd
BNP Paribas Noms Pty Ltd
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20 Mark Robert Edwards
16,500,000
13,960,715
9,000,000
8,559,945
7,396,547
6,500,000
5,021,429
3,913,743
3,342,166
3,174,803
3,091,650
2,756,471
2,700,000
1,994,460
1,870,000
1,844,828
1,661,534
1,636,736
1,605,829
1,532,035
98,062,891
8.10
6.85
4.42
4.20
3.63
3.19
2.46
1.92
1.64
1.56
1.52
1.35
1.32
0.98
0.92
0.91
0.82
0.80
0.79
0.75
48.12
The names of the 20 largest holders of quoted partly paid ordinary shares (ASX: BRBCA) are:
Shareholder
Ordinary shares
Number
Equity held
%
Jasper Hill Resources Pty Ltd
HSBC Custody Nominees (Australia) Limited
Mr Benjamin Campbell
Cheetah Holdings Pty Ltd
Mr Thomas Stephen Sanders & Mrs Helen Sanders
The Straits Nominees Pty Ltd
Mr Murray Leslie Siviour
T T Nicholls Pty Ltd
Bradley Scott Dvorak
1
2
3
4
5
6
7
8
9
10 Mr Gavin Victor Hayres & Ms Amanda Yip
11 Ms Stephanie Ann Reynolds & Mr Simon Taylor Reynolds
12
13 Mr Luke Patrick Thomas Sanders
13 Mark Robert Edwards
14 Mr Michael John Kitney & Mrs Dale Jayne Kitney
15
15 Mr Graham Robert Foreman
Kahala Holdings Pty Ltd
16
17
Pendan Pty Ltd
18 Mr Glenn Turner
19
20 Ms Susan Clarkson
Talex Investments Pty Ltd
Allora Equities Pty Ltd
Future Super Pty Ltd
1,096,934
437,500
368,308
312,742
309,871
300,000
248,171
219,768
140,526
136,803
136,703
65,217
65,000
65,000
58,125
50,000
50,000
46,294
43,478
39,000
29,000
25,298
4,243,738
24.23
9.66
8.14
6.91
6.84
6.63
5.48
4.85
3.10
3.02
3.02
1.44
1.44
1.44
1.28
1.10
1.10
1.02
0.96
0.86
0.64
0.56
93.74
53 Breaker Resources NL
ASX Additional Information
Unquoted Securities
Details of unquoted securities on issue are:
Class
Securities
Number
Holders
Number
Unlisted 43.2 cent options, exercisable on or before 31 December
2019
Unlisted 44.8 cent options, exercisable on or before 31 December
2019
Unlisted 64.4 cent options, exercisable on or before 31 December
2019
Unlisted 73 cent options, exercisable between 16 October 2018 and
31 December 2020
Unlisted 46.5 cent options, exercisable on or before 31 December
2021
2,000,000
2,500,000
150,000
250,000
4,250,000
2
2
1
1
2
Holders of 20% or more of the class
There are no relevant holders of 20% or more of a class of unquoted securities.
On-market Buy-back
There is no current on-market buy-back.
2019 Annual Report 54
ABN: 87 145 011 178
12 Walker Avenue, West Perth, Western Australia 6005
Tel: +61 8 9226 3666 | Fax: +61 8 9226 3668
Email: breaker@breakerresources.com.au
www.breakerresources.com.au