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West Wits Mining
Annual Report 2018

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FY2018 Annual Report · West Wits Mining
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 ANNUAL REPORT 

For the year ended 30 June 2018

“Transforming world class 
mineral resource into Gold” 

West Wits Mining Limited ABN 89 124 894 060
Annual report - 30 June 2018

Contents

Chairman's letter
Review of operations and activities
Directors' report
Financial statements

Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the consolidated financial statements
Directors' declaration
Shareholder information
Corporate directory

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Chairman's letter

Dear Fellow Shareholders,

On behalf of the Board of Directors, I am pleased to present the 2018 Annual Report for West Wits Mining
Limited (“the Company” or “West Wits”) (ASX: WWI).

The Company continued its strategic transformation during the 2018 financial period, making significant progress
toward achieving its goal of becoming a Junior Gold Producer targeting production of >80,000oz Au per annum.

Management’s key focus during the year was the further development of the Witwatersrand Basin Project
(“WBP”) which gained momentum leading into the reporting period and then accelerated substantially. Production
on the Kimberley Central Open Pit recommenced in June 2017, delivering free cashflow from October 2017 with
proceeds allowing the Company to fund WBP’s broader exploration and development.

This small-scale production project provides a unique opportunity. It has enabled West Wits to preserve capital
through organic revenues and, importantly, demonstrates to South African authorities and our stakeholders
generally that the Company can deliver a project that provides both employment opportunities and broader
benefits through the rehabilitation of historical mine works.

The Mining Right Application over WBP was submitted to the regulator in April 2018, this was a significant
milestone for the Company as upon grant it would enable production to be scaled and extended to the broader
resource area.

Our geology and engineering consultants have undertaken an exceptional amount of work during the year,
increasing the JORC Resource nearly threefold to a sizeable 3.67Moz with an average grade of 3.4g/t (2g/t
cut-off). The Company was delighted to announce an exploration target for further resource growth subsequent to
the reporting period. Multiple open-pit and underground targets have been identified to date and once the Mining
Right has been issued current operations can be quickly extended to new open-pit areas, with relatively low initial
capital expenditure. Analysis of WBP’s priority underground target, Kimberley East, demonstrated the robust
nature of the resource which restated at an increased average specified grade of 5.0g/t (3.5g/t cut-off) still
delivers 450,000 oz Au, and thereby highlights the projects capability of remaining economical through the
commodity cycle.

West Wits acquired two tenements in the Pilbara region of Western Australia. The Pilbara area generated a lot of
excitement after Novo Resources (TSX-V: NVO) discovery at Purdy’s Reward which compared the
conglomerates where the nuggety gold was found with that of those of the Witwatersrand Basin where our
flagship project is located. The acquisitions supported our initiatives to raise funds for ongoing activity, extend the
Company’s exploration footprint and allowed us to apply our extensive experience of the Witwatersrand style of
mineralisation to the Pilbara. The exploration sector is still investing substantial amounts in an effort to gain an
understanding of the geology of the area and initial field trips by our team confirmed extensive mineralisastion at
surface across the Tambina project area. We are looking forward to progressing plans as funding becomes
available.

Progress at the Derewo River Project has been slower than anticipated and a source of frustration to the Board.
Management continued its’ approach of working through our local partner, PT Tambang Ray Sejahtra (TRS), who
fund current activity and are more equipped to navigate the local regulatory environment. The area has
exceptional prospectivity for gold mineralisation however the Board will continue to review the strategy in the
subsequent period.

Thank you for your ongoing interest and support of West Wits.

For and on behalf of the Board

Mr Michael Quinert
Executive Chairman
Melbourne
27 September 2018

1

West Wits Mining Limited 
Review of operations and activities 
30 June 2018 

Highlights 

o  The Witwatersrand Project Global Mineral Resource Estimate (MRE) grew by 2.3Moz to 34.1 Mt @ 3.4g/t 

Au for 3.67Moz (at a 2.0 g/t cut-off) 

o  21.2Mt @ 3.51 g/t Au for 2.4Mz is in the Measured & Indicated categories 

o  Small-scale  operations  at  WBP  delivered  8,270oz  of  gold  production  and  net  proceeds  of  $1.4m  to 

fund South African operations 

o  Submission  of  the  Company’s  Mining  Right  application  to  the  South  African  regulator  for  the 

Witwatersrand Basin Project, a key development milestone 

o  Building key partnerships with local community groups to improve the standard of living and provide 

employment opportunities 

o  Acquisition  of  two  tenements  in  the  Pilbara  (Australia),  both  highly  prospective  for  conglomerate 
hosted gold, with three mining leases on the Tambina Project where initial field trips resulted in very 
positive sample results of the mineralised conglomerate outcrop 

Overview 

West Wits Mining (ASX: WWI) (the Company or West Wits) made significant progress at its’ flagship Witwatersrand 
Basin Project (WBP) over the reporting period.  The Company maintained momentum from the end of FY2017 having 
expanded production and JORC Resource, submitting its Mining Right application and extending West Wits’ exploration 
footprint  to  the  highly  prospective  Pilbara  region  in Western  Australia.    Progress  at  the  Derewo  River  Gold  Project 
(Derewo) remains slow, Management’s strategy to work through a local alliance minimises West Wits’ ongoing capital 
requirement, whilst retaining the upside exposure to the project’s exploration potential. 

Delivering on a key objective, work performed during the period enabled management to increase the JORC Mineral 
Resource Estimate by 2.3Moz, growing the global resource at the Company’s WBP to 3.67Moz.  Importantly, 2.4Moz 
is  in  the  Measured  &  Indicated  categories,  increasing    confidence  in  the  Resource,  which  is  fundamental  when 
transferring a Resource to a Reserve.   

Production re-commenced at WBP’s Kimberley Central Open Pit operation during the period, delivering key benefits to 
both the Company & local community groups.  Total ore processed was approx. 160,000, at an average recovered 
grade  of  1.8g/t  which  delivered  8,270oz  of  gold  and  net-cash  proceeds  of  approx.  $1.4m,  funding WBP’s  on-going 
exploration and development activities. 

Current  operations  were  made  possible  through a  government  directive  to  rehabilitate  historical  mine  works  on the 
Company’s lease area. The directive’s aim is to remove access to illegal miners in the area, rehabilitate the land and 
facilitate suburban development.  Management is well progressed on this objective with Pit 1’s rehabilitation due to be 
completed  in  October.    Current  operations  have  also  enabled West Wits  to  deepen  its’  engagement  with  the  local 
community by providing both employment on the project and funding for multiple not-for-profit local community support 
initiatives. 

The  Company  reached  an  important  milestone  during  the  year  having  submitted  to  the  regulator  its’  Mining  Right 
application over WBP’s lease area, approval is anticipated for 4Q FY2019.  Once approved, management can extend 
open-pit operations and begin underground mine development, moving West Wits towards full-scale mining.  In the 
interim two mining permits have also been sought, each covering a 5ha area, which allow open-pit mining whilst the 
Company’s mining right approval is being determined.  The mining permits are forecast to be granted by 2Q FY2019 
and are expect to double current production rates. 

The acquisition of two tenements (Tambina & Mt Cecelia) in the Pilbara region of Western Australia during the period 
secured West Wits a foothold in an area highly prospective for conglomerate gold.  The Pilbara received international 
attention  after  Novo  Resources  (TSX  -V:  NVO)  discovery  at  Purdy’s  Reward,  with  comparisons  made  to  the 
Witwatersrand Basin’s geology.  Management is able to leverage its’ extensive Wits expertise to gain an understanding  

2 

 
 
West Wits Mining Limited 
Review of operations and activities 
30 June 2018 
(continued) 

of the Pilbara projects geology and advance exploration.  Three field trips to Tambina, which has three mining leases, 
mapped a strike length of 1,300m of gold mineralisation at surface with very positive assay results of rock-chip samples 
received.     

West Wits maintains its’ strategy of partnering with a large, well connected and experienced local group to progress 
the Indonesian subsidiary’s Derewo Project.  The Company’s main project partner, PT Tambang Ray Sejahtra (TRS), 
has continued to lobby various levels of the Indonesian Government to confirm the Clean and Clear (C&C) 
certification of the Company’s tenements (IUP’s) and also secure the alluvial site.  The Company is optimistic this 
goal will be achieved albeit frustrated with the level of progress. 

Witwatersrand Basin Project, South Africa 

1)  PRODUCTION – Kimberley Central Open Pit 

a.  Background 

Mining of the Kimberley Central Open Pit has been permitted through a government directive to rehabilitate historic 
mine works across a 1,500m section of Kimberley Reef outcrop.  The rehabilitation involves the mining of historical 
crown pillars through open pit operations which, once backfilled, remove access by illegal miners to the historical mine 
works and allow for urban development. 

West Wits’ strategy has been to partner with a local head contractor, Elandiwave, which is made up of a consortium of 
seasoned  South  African  mining  professionals  and  includes Wests Wits  Black  Equity  Empowerment  (BEE)  partner.  
Under the agreement, West Wits received 60% of net proceeds from Pit 1 & 2, with net proceeds from Pits 3, 4 & 5 
split on a 50:50 basis.  The agreement also required Elandiwave to fund the initial working capital, which was repaid 
from net proceeds in the first 4 months of operations. 

b.  Production 

Kimberly  Central  Open  Pit  has  been  operating  continuously  since  recommencing  in  June  2017,  the  current  mine 
schedule forecasts production to be completed in February 2019.  Average monthly ore production was 13,500t for a 
total of 165,000t.  Monthly production varied considerably over the period due to the nature of small-scale operations, 
which limits the Mine Planner’s ability to smooth out production for impacts such as the commissioning of new pits or 
seasonal heavy rain.  Despite this, the operations team delivered on Management’s production target range of 10,000 
– 15,000t ore per month. 

Pit 1, the largest of the five planned pits, was completed in May 2018 having produced approx. 103,000t ore at an 
average recovered grade of 1.78g/t, delivering 5,890oz with a final strip ratio of 10:1.  Pit 2 production was completed 
in July 2018 (post period) after 10 months of operations, the pit covered a smaller area and produced approx. 39,000t 
of ore at final strip ratio of 13:1.  Combined Pit 1 & 2 production since operations recommenced (June 2017) hit the 
forecasted 90,000t of targeted high-grade ore (~2g/t) however an incremental 18,400t of lower grade ore (~1g/t) was 
also produced.  This reduced the recovered grade however added to the net proceeds of the project as the low-grade 
ore is in the hanging wall of the target reefs and had to be mined to access them and therefore only incurs additional 
transport and processing costs. 

Pit  3  (pictured)  commenced  production  in  November  2017,  near  the  end  of  the  reporting  period  the  geology  team 
identified a continuation of high-grade Kimberley reef at the western end of the pit which has enabled the extension of 
planned production by a further 3 months and will make Pit 3 comparable in size to Pit 1.  The extension of the reef has 
required our mine engineers to redesign access to the pit, resulting in a higher stripping ratio from May – August 2018, 
however this is set to decrease through the remainder of the pit’s life and is expected to deliver material benefits.  

April 2018 saw the start of operations at Pit 4, shortly after commencement it was identified that the Kimberley reef 
band being targeted extended to be in close proximity to the scheduled area of Pit 5.  This resulted in the mine 
engineer extending Pit 4 to encompass the planned Pit 5 area. 

3 

 
 
 
West Wits Mining Limited 
Review of operations and activities 
30 June 2018 
(continued) 

Image: Pit 3 outlining 
the target bands of the 
Kimberley Reef, K9A & 
K9B, and the re-design 
to enable access to the 
reef extension (top left 
of image)   

c.  Processing 

WWI  toll  treats  its  ore  through  third  party  mills,  the  majority  of  production  (135,000t)  throughout  the  period  was 
processed at Sibanye Stillwater’s Ezulwini plant located approximately 40km’s away, with a small portion (25,000t) of 
lower grade ore (0.9 -1.7g/t) processed at the Mogale plant in the five months to March 2018.     

Dry ore tonnes paid during the period totaled 143,000t at an average grade of 1.8g/t for total production of 8,270oz Au.  
Recovered  grade  is  below  the  targeted  2.0g/t,  this  is  largely  attributable  to  inclusion  of  low-grade  material  which 
operators mine through to access the higher-grade reef.  Mine management is continuing to focus on mining methods 
to limit dilution and ensure grade of production meets the 2.0g/t target. 

The Company’s Board intends to continue its’ strategy of toll treating production as there is significant excess milling 
capacity at multiple plants within close proximity of the project. This enables WWI to obtain highly competitive rates 
and de-risks the project by reducing capital costs associated with the construction and operation of a plant, including 
associated management of tailings. Average processing costs were approx. AU$33.50/t, comprising of AU$24.80/t in 
tolling fees and AU$8.70/t for transport costs to the mill. 

d.  Rehabilitation 

West Wits  has made  significant  progress  on  a key  outcome  of  the current  open-pit  project, completing 90%  of the 
rehabilitation of Pit 1 at the time of reporting.   To rehabilitate the area under the government directive, operators mine 
the remnant crown pillars which encompass the historical mine shafts to a depth of 15-30m.  The mine shaft is then 
concrete  plugged  at  the  base  of  the  pit,  the  open-pit  area  is  backfilled  and  flattened,  removing  the  illegal  miners 
operating in the area access to the old mine works and readies the area for urban development (pictured). 

4 

 
 
 
 
 
 
West Wits Mining Limited 
Review of operations and activities 
30 June 2018 
(continued) 

Image: Historical mine shaft 
(top left), police clearing the 
area of illegal miners before 
Pit 1 commenced operations 
(top right), and aerial view of 
Pit 1 in July when rehab was 
approx. 60% complete 
(bottom)  

e.  Proceeds from Operations 

Net proceeds from operations attributable to West Wits during the period totaled approx. AU$1.4m, providing funding 
for on-going exploration and development activities.  The average price received for production was AU$1,680. Total 
costs for the Kimberley Central Open Pit operation, including rehab and after allocation to contract partner Elandiwave, 
was approx. AU$1,500 (10.4% margin). 

The C1 costs averaged approx. AU$1,350/oz (pre-distribution to Elandiwave) with a range of AU$970-2,140/oz per 
month, which demonstrates the variability associated with small-scale production. Management expects costs to be in 
the lower quartile of that range when benefiting from economies of scale once the Mining Right application is granted 
and open-pit operations are extended to multiple targets.

5 

 
 
 
 
West Wits Mining Limited 
Review of operations and activities 
30 June 2018 
(continued) 

2)  EXPLORATION 

a)  Background 

WWI’s WBP comprises of two historic mining centres, Durban Deep and Rand Leases, within the Witwatersrand Basin 
and forms part of the world’s largest goldfield. Mining has been taking place within these areas since the goldfields 
were discovered in 1886, during that time up to seven different gold bearing conglomerate horizons were mined from 
surface down to 3,100m. Total production for the combined Durban Deep and Rand Lease areas was >40 Moz Au at 
grade exceeding 5 g/t Au and the historical mine had a 12.8Moz Mineral Resource Estimate (JORC 1997) at the time 
of closure in 2000 (ASX: WWI prospectus 15 November 2007). Harmony Gold Mining (JSE: HAR) reported production 
of 86,000 oz of gold for FY2017 at its Doornkop Mine situated directly adjacent to WBP’s western boundary. 

b)  Resource 

WWI’s  JORC  Resource  grew  by  2.27Moz  as  result  of  work  performed  during  the  period,  the  growth  represents  a 
significant achievement for the Company and increased the Global Resource to 3.65Moz with 2.4Moz in Measured and 
Indicated categories.   

Table 1 (below) shows the Global JORC Resource announced on 16th July 20181 and also takes into account depletion 
resulting from tonnes removed in the Kimberley Central Open Pit operations.  A recent resource estimation focused on 
the  K9B  band  of  the  Kimberley  East  Reef  package  and  increased  the  Global  Resource  by  395,000oz  (Measured 
+213,000oz, Indicated -255,000oz & Inferred +437,000oz) when compared to the Company’s Resource as at the 30th 
June 2018. 

TABLE 1: UPDATED GLOBAL MRE FOR THE WITWATERSRAND BASIN PROJECT AT 2.0G/T CUT-OFF 

Category 

Measured 

Indicated 

Measured & Indicated 

Inferred 

Total 

Tonnes (millions) 

Grade (g/t Au) 

Ounces Au 

12.01 

9.1 

21.1 

13 

33.9 

3.65 

3.37 

3.54 

3.0 

3.4 

1,420,000 

988,000 

2,418,000 

1,248,000 

3,656,000 

Notes: The Global MRE set at a 2.0 g/t Au cut-off.  Reported in accordance the JORC Code of 2012. Number 
differences may occur due to rounding errors.  

WWI had previously  only considered  resources  to  400m for  the  inclusion in published  documents.  The  inclusion of 
deeper resources within the Kimberley Reef Outcrop (East) – mineralisation between 400-1,500m below surface – was 
made possible following an evaluation by Bara Engineering Consulting (Pty) Ltd which identified technical means to 
access these areas.   

Effectively,  the  new  MRE  captures  both  historic  mining  and  surface  data  that  has  been  subjected  to  an  extensive 
exercise  of  historical  data  recapture  and  validation  followed  by  a  new  Mineral  Resource Estimation  (MRE)  utilising 
ordinary kriging. The modern estimation techniques to create domains of higher grade “pay shoots” and lower grade 
“overbank” areas that are interpreted to result from the primary geological features of the reef. This is crucial as it allows 
for the identification of large high-grade areas that will be targeted for underground production. 

1  The  original  report  was  “Global  Resource  Grows  by  428,000oz  Au  to  3.67Moz  at  Witwatersrand  Basin  Project”  which  was  issued  with  consent  of  competent 
persons,  Hermanus  Berhardus  Swart  &  Dr  Andrew  J.  Tunks  and  released  to  the  ASX  on  16th  July  2018  and  can  be  found  on  the  Company’s  website 
(https://westwitsmining.com/).  All material assumptions and technical parameters underpinning the estimates used to determine the Mineral Resource have not 
materially changed & the company is not aware of any new information or data that materially effects the information included in the relevant market announcement.  
The form & context in which the Competent Persons’ findings are presented have not been materially modified. 

6 

 
 
West Wits Mining Limited 
Review of operations and activities 
30 June 2018 
(continued) 

TABLE 2: PRIOR YEAR GLOBAL MRE FOR THE WITWATERSRAND BASIN PROJECT AT 2.0G/T CUT-OFF 

Category 

Measured 

Indicated 

Measured & Indicated 

Inferred 

Total 

Tonnes (millions) 

Grade (g/t Au) 

Ounces Au 

2.21 

5.6 

7.81 

4.9 

12.7 

4.25 

3.3 

3.57 

3.1 

3.38 

302,000 

590,000 

892,000 

489,000 

1,381,000 

Notes: The Global MRE set at a 2.0 g/t Au cut-off.  Reported in accordance the JORC Code of 2012. Number differences 
may occur due to rounding errors.  

West Wits’ released analysis of the declared resource on Kimberley East area, the first underground target area on 31st 
August 2018 (post period) which demonstrated the robust nature of the resource.  Utilising differing cut-off grades when 
re-examining the K9B reef, as may appropriate when mining underground, when the cut-off grade is increased to 3.5g/t 
(from  2.0g/t)  the  average  grade  increases  to  5.0g/t  for  450,000oz  au  (from  3.4g/t  for  1.2Moz)  which  illustrates  the 
potential of the K9B reef to support underground mining in a variety of circumstances2. 

c)  Exploration Target 

The 31st August 2018 ASX release also identified an Exploration Target of between 600,000oz (6.5M tonnes at 3.0g/t) 
and 1,000,000oz (8.0M tonnes at 4.0g/t) on the same area of the Kimberley East reef package2.  The target focuses 
on the K9A reef which sits 10m stratigraphically above the K9B reef and has been extensively mined on the historic 
Durban Deep portion of the Witwatersrand Basin Project.  The Exploration Target is based on an assumed 2.0 g/t cut-
off,  it  utilises  previous  mining  to  the  west  of  the  area  under  consideration  and  the  well  understood  geology  of  the 
Kimberley reefs where current open pit mining is taking place at the Kimberley Central Open Pit.  The potential quantity 
and grade of the Exploration Target is conceptual in nature, that there has been insufficient exploration to estimate a 
Mineral Resource and that it is uncertain if further exploration will result in the estimation of a Mineral Resource 

2  The original report was “Witwatersrand Basin Project’s Kimberley Reef East Upside Potential” which was issued with consent of competent persons, Hermanus 
Berhardus Swart & Dr Andrew J. Tunks, it was released to the ASX on 31st August 2018 and can be found on the Company’s website (https://westwitsmining.com/).  
The company is not aware of any new information or data that materially effects the information included in the relevant market announcement.  The form & context 
in which the Competent Persons’ findings are presented have not been materially modified. 

7 

 
 
 
 
 
 
 
 
 
 
 
 
West Wits Mining Limited 
Review of operations and activities 
30 June 2018 
(continued) 

3)  LICENSING 

a)  Mining Right 

West Wits currently holds a Prospecting Right over the two lease areas however the Company reached an important 
milestone during the period having submitted its’ Mining Right application which received formal acceptance from South 
Africa’s Department of Mineral Resources (DMR) in May 2018 for processing.  Once regulatory approval is secured, it 
opens  options  to  have  concurrent  mining  operations  at  several  locations  across  the WBP,  enabling  the  production 
platform to be rapidly scaled. This is a key step in the Board’s strategic plan to transform WWI into a junior miner with 
successful operations in the Witwatersrand Basin, producing >80,000oz Au per annum. 

Securing mining rights is a  rigorous  process, as the  regulator  enforces strict  environmental  standards  and  ongoing 
rehabilitation  obligations.  Moreover,  it  must  be  shown  to  the  regulator  that West Wits  has  engaged  with  numerous 
stakeholders and community groups to ensure there is full consultation with respect to the proposed mining project and 
its  impacts.  To  this  end,  management  is  fully  engaged  with  nearby  communities  and  other  stakeholders.  With 
rehabilitation  of  Pit  1  &  2’s  mined  out  areas  of  the  Kimberley  Central  open-pit  well  underway,  we  are  already 
demonstrating West Wits ability to deliver on community and stakeholder requirements.  Management expects to know 
the outcome of the approval process by 4Q FY2019. 

b)  Mining Permit 

WWI’s team in South Africa have submitted two mining permit applications to the DMR.  Under South Africa’s regulation, 
a company can apply for a mining permit whilst its’ mining right application is being assessed and each permit allows 
open-pit mining on a five-hectare area.  The areas applied for are Main & South Central and Kimberley West open-pits 
which were selected primarily for the expected grade, with the earlier believed to be materially higher than the circa 2 
g/t Au currently being achieved at the Kimberley Central open pit. 

WWI currently anticipates the permit approval process to be completed in November 2018, as the regulator places a 
heavy emphasis on legacy environmental rehabilitation efforts and community engagement. Notably, however, WWI 
has already demonstrated to the regulator – with its efforts on Kimberly Central open-pit – that it continues to meet all 
key obligations.  

4)  COMMUNITY 

West Wits is proactively engaged with communities to build strong, mutually beneficial relationships based on trust and 
respect, to ensure the success and sustainability of both the local communities and our business. 

The Witwatersrand Basin Project is located on the western fringe of Johannesburg, an area with several communities 
who identify unemployment as a key concern.  West Wits is committed to supporting the local population with most of 
the  Company’s  initiatives  are  focused  on  sustainable  job  creation  through;  learning  &  development  programs, 
supporting new industries and the provision of basic services to the underprivileged & unemployed.   

Two  of  West  Wits’  cornerstone  community  partner  groups  are  the  Mandelaville  Crisis  Centre  and  the  Sol  Plaatjie 
Community Soup Kitchen. 

Mandelaville Crisis Centre 

The centre was established in 2002 to provide a number of services to combat poverty and works in partnership with 
government & civil society, to enhance the lives of communities through economic emancipation and moral leadership. 

West Wits has sponsored several local community members seeking employment through a market garden program.  
The project develops skills to not only grow fruit & vegetables, but also sell produce at the Johannesburg market and 
reinvest the proceeds back into the project to ensure its sustainability. Any excess produce is distributed amongst the 
disadvantaged in the community. 

Management donated three desktop computers to the centre’s computer lab, multiplying the number of students that 
can be taught in a single class by approximately 50%.  The donation has expanded the reach of the various learning  

8 

 
programs,  increasing  class  sizes  and  improving  computer  literacy  of  the  local  community  to  better  enhance  their 
prospects of securing jobs in modernised industries. 

West Wits Mining Limited 
Review of operations and activities 
30 June 2018 
(continued) 

WWI sponsored Mandelaville Crisis Centre’s Vegetable Project (left) and training at the computer lab (right) 

Sol Plaatjie Community Centre – Soup Kitchen 

West Wits are building the infrastructure of a local community development center. This includes laying the foundations, 
installing the toilet block, connecting gas & electricity, converting a sea container into an office block, and more. The 
center provides meals to the underprivileged and unemployed in the area, with a focus on the young and elderly. 

Image: Sol Plaatjie Community Soup Kitchen 

Witwatersrand Basin Project 

The Kimberley Central Open-Pit project has over 20 local community members in current employment.  West Wits’ 
mining right application submitted to the DMR identified that a minimum of 500-700 employees would be required when 
the planned mine was at full capacity, making it a major employer in the area. 

9 

 
 
 
 
 
 
West Wits Mining Limited 
Review of operations and activities 
30 June 2018 
(continued) 

Image: WWI employees at Kimberley Central Open-Pit’s 1yr Anniversary celebration 

In  addition  to  unemployment,  crime  is  also  a  key  concern  of  community  leaders.  A  significant  contributor  is  the 
establishment of the illegal mining communities who perform artisanal mining in the historical mine works.  Not only is 
the  mining  unregulated  and  unsafe,  the  illegal  activities  also  bring  other  crime  problems  to  the  area  such  as  gun-
violence over territorial disputes, drugs and prostitution.  

One  of  the  key  elements  of West Wits’  Kimberley  Central  Open  Pit  project  has  been  the  rehabilitation  of  historical 
mineworks near surface to remove access to the old mine shafts by illegal miners. The rehabilitated areas will enable 
the landowners to extend urban development, including low cost housing, parks and playing fields, providing a safer 
environment for locals. The company is also working with local stakeholders on the potential development of a market 
garden precinct on rehabilitated areas, creating an alternative industry with sustainable employment opportunities. 

Pilbara, Australia 

a)  Background 

Opportunistically,  management  acquired  two  tenements  (Tambina  &  Mt  Cecelia)  in  the  Pilbara  region  of  Western 
Australia  during  the  period,  securing  a  foothold  in  an  area  which  has  recently  seen  a  “21st  Gold  Rush”  after  Novo 
Resources (TSX -V: NVO) discovery at Purdy’s Reward.  The area forms part of the Lower Fortescue Group which is 
highly prospective for conglomerate hosted gold and has been commonly compared to the Witwatersrand Basin region.  
The purchase of each tenement was coupled with a capital raising, securing $2.2m (gross), which enabled the Board 
to shore up the balance sheet, ensuring ongoing development of the Company’s projects and allow the Company to 
apply its extensive knowledge and experience from the Witwatersrand Basin to this new frontier.   

10 

 
 
 
 
 
West Wits Mining Limited 
Review of operations and activities 
30 June 2018 
(continued) 

Figure: West Wits two assets in the Pilbara, Australia 

b)  Tambina Project 

The  Company  completed  the  Tambina  acquisition  in  January  2018,  the  project  comprises  of  three  mining  licenses 
which cover a total area of 102ha.  The project is located in the east Pilbara, circa 150km southeast of Port Hedland, 
and is accessed via a well-maintained road, that services Atlas Iron’s Mt Webber mine, and exploration tracks.  The 
key point of difference with the project is the three mining leases, as it means WWI could fast-track the commencement 
of any identified opportunity for mining operations materially faster than many peers as most regulatory requirements 
have been cleared. 

Three field trips were performed during the reporting period, including due diligence, with the key purpose of identifying 
and mapping the gold bearing conglomerate horizons across the area.  Assays of 73 rock-chip samples collected from 
26 sites during field trips, all returned anomalous results >0.17 g/t Au, while 50 were > 0.5 g/t Au. The best 12 results 
returned values >6 g/t, with the highest 185 g/t over 2m.  The geology team has now mapped gold mineralisation at 
surface for over 1,300m of strike, the prospective zone is with a series of gossanous conglomerate horizons containing 
abundant chert clasts. 

Photos of sample WWT0020 (Bag 2 of 3): Visible gold in pan concentrate, collection site and 
sample photo.  The Geochemical assay for WWT0020 Bag 2 returned 185g/t. 

11 

 
 
 
 
West Wits Mining Limited 
Review of operations and activities 
30 June 2018 
(continued) 

The Company has assessed options regarding the next phase of project development, including shallow drilling or low-
cost trial mining programs.  Management is currently prioritising the allocation of resources towards the Witwatersrand 
Basin Project whilst it’s in this critical phase of the mining right application with small-scale production which delivers 
free cashflow. However, exploration activity of peers in the region is closely followed by the team and management 
plans to advance the project as soon as capacity becomes available. 

c)  Mt Cecelia Project 

The Company completed the acquisition of the Mt Cecelia project in December 2017, the project covers an area of 224 
sq km and is located in the eastern Pilbara some 150km ENE of Marble Bar.  Of critical geological significance is the 
fact that some 215ha of the project area is comprised of the Hardey Formation of the Lower Fortescue Group, which is 
highly prospective for conglomerate hosted gold. 

The project is currently subject to the granting process for an exploration license.  Negotiations are being held with the 
Native Title Parties to complete the Heritage Agreements, whilst negotiations are progressing, there are several issues 
that remain unresolved however management is confident of a positive outcome for both parties.  Once the exploration 
license is granted, the geology team is ready to implement the first phase of the exploration program. 

Derewo River Project, Indonesia 

The Company’s Indonesian subsidiary, PT. Madinah Quarataa’in (PTMQ), which is made up of a business alliance with 
local groups continues to be frustrated by the regulatory process regarding the Clean & Clear (C&C) certification of the 
Derewo River Project’s tenements (IUP’s).   

Whilst  no  formal  progress  has  been  made  beyond  the  official  recommendation  for  C&C  status  of  the  approximate 
85,000ha of approximate 127,000ha area covered by PTMQ’s IUP, TRS has continued to navigate the local regulatory 
process and is currently securing a funding partner to execute the final stages of their plan to both receive the C&C 
certification and secure the alluvial site. 

Management’s strategy has reduced West Wits ongoing capital investment with TRS bearing the cost of procuring the 
C&C Certificates, reinstatement of the balance of the original IUP’s and securisation of the alluvial site. 

The information in this report relates to Mineral Resources is based on information compiled by compiled by Hermanus 
Berhardus Swart, a Competent Person who is a Professional Natural Scientist registered with South African Council 
for Natural Scientific Professions accredited (No. 400101/00) and a Fellow of the Geological Society of South Africa, 
each of which is a “Recognised Professional Organisation” (RPO) that is included in a list that is posted on the ASX 
website  from  time  to  time.  Hermanus  Berhardus  Swart  is  employed  by  Dunrose  Trading  186  (PTY)  Ltd  trading  as 
Shango Solutions, which provides services as geological consultants to the Company. Hermanus Berhardus Swart 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”. Hermanus Berhardus Swart consents to 
the inclusion in this announcement of the matters based on his information in the form and context in which it appears 
Dr.  Tunks  (Member  Australian  Institute  Geoscientists)  conducted  a  peer  review  of  the  results.  Dr  Tunks  is  the 
Company’s Exploration Director and 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, Minerals Resources and Ore Reserves’. 
Dr Tunks consents to the inclusion in the report of the matters based on his information in the form and context in which 
it appears.’ 

12 

 
 
 
 
 
West Wits Mining Limited
Directors' report
30 June 2018

Your Directors present their report on the consolidated entity consisting of West Wits Mining Limited and the
entities it controlled at
the
consolidated entity is referred to as the group.

the year ended 30 June 2018. Throughout

the end of, or during,

the report,

Directors and company secretary

The following persons held office as Directors of West Wits Mining Limited during the financial year:

Mr Michael Quinert, Executive Chairman
Mr Vincent Savage, Executive Director
Mr Daniel Pretorius, Non-Executive Director
Mr Hulme Scholes, Non-Executive Director
Dr Andrew Tunks, Executive Director (appointed 13 March 2018)

The following person held office as company secretary of West Wits Mining Limited during the financial year:

Mr Phillip Hains, Company Secretary

Mr Michael Quinert Executive Chairman

Experience and
expertise

Mr Quinert graduated with degrees in economics and law from Monash University
and has over 30 years experience as a commercial lawyer, and over 20 years as a
partner in a Melbourne law firm. He has extensive experience in assisting and
advising public companies on capital raising and market compliance issues.

Other current
directorships

First Au Ltd (ASX: FAU)

Former directorships in
last 3 years

Manalto Limited (ASX: MTL)
Covata Limited (ASX: CVT)

Special responsibilities Member of Audit, Risk & Compliance Committee and Remuneration & Nomination

Interests in shares and
options

Committees

Interest in shares

Interest in options

18,962,990

12,000,000

Mr Hulme Scholes Independent Non-Executive Director

Experience and
expertise

Mr Scholes graduated with a BA Law and LLB degree from the University of the
Witwatersrand and is an admitted attorney of the High Court of South Africa. Mr
Scholes specialises in mining and mineral law, has practised exclusively in the field
for 20 years and is regarded as one of South Africa's experts within mining law. He
was a partner of Werksman Attorneys based in Johannesburg from 1999 to 2008
and is currently a senior partner at Malan Scholes Attorneys. He started his
professional career as a learner official for Harmony Gold Mining Co. Limited in the
1980's which provides him with a unique blend of experience.

Other current
directorships

Mr Scholes is currently a Non-Executive Director of Randgold and Exploration
Company Limited (JSE Listing) (JSE: RNG).

Former directorships in
last 3 years

Current:
Non-Executive Director - Randgold and Exploration Company Limited

Special responsibilities Nil

Interests in shares and
options

Interest in shares

Interest in options

1,136,364

-

13

West Wits Mining Limited
Directors' report
30 June 2018
(continued)

Directors and company secretary (continued)

Mr Daniel (Niel) Pretorius Independent Non-Executive Director

Experience and
expertise

Other current
directorships

Mr Pretorius was appointed Group Legal Council for DRDGold Limited (DRDGold) in
2003 and Chief Executive Officer of DRDGold Ltd in January 2009. He has over 20
years’ experience in the mining industry. Mr Pretorius was present through the
re-focus of DRDGOLD's strategy to exit deep level underground mining, and focus
on surface reclamation through the expansion of
their Crown Gold Recoveries
footprint,
the acquisition and recommissioning of Ergo, and more recently the
acquisition of the surface gold portfolio of SibanyeStilwater.

Mr Pretorius is currently a Executive Director of DRDGold Limited (JSE:DRD).

Former directorships in
last 3 years

Current:
Executive Director: DRDGold Limited (JSE: DRD)

Special responsibilities Nil

Interests in shares and
options

Interest in shares

Interest in options

-

-

Mr Vin Savage Independent Non-Executive Director

Experience and
expertise

Mr Savage has over 36 years’ experience in the building and mining industries,
coupled with 21 years working within the insolvency and business advisory sectors.
Mr Savage’s experience has seen him lead company reconstructions, refinancing
and development projects for mining clients throughout Australia and Internationally.
three years Mr Savage has been intimately involved in all
Over
governmental and regulatory issues involving the Derewo River Gold Project as well
as working closely with the Company’s local Indonesian partners.

the last

Other current
directorships

Nil

Former directorships in
last 3 years

Fluence Corporation Limited (ASX: FLC)

Special responsibilities Chair of Audit, Risk & Compliance and Remuneration & Nomination Committees

Interests in shares and
options

Interest in shares

Interest in options

14,194,231

5,000,000

14

West Wits Mining Limited
Directors' report
30 June 2018
(continued)

Directors and company secretary (continued)

Dr Andrew Tunks Executive Director

Experience and
expertise

Dr Tunks is a highly credentialed geologist with 30 years of local and international
experience, particularly in the gold sector. He has spent many years exploring and
overseeing projectsin developing countries throughout Africa and South America.
Global experience means Dr Tunks can provide expertise in navigating diverse
regulatory systems.
Having begun his career with Western Mining Corporation (WA) Dr Tunks
progressed to senior positions with leading gold producers including the role of Chief
Geologist at both IAMGOLD Corporation and Ranger Minerals (West Africa).
Since then, Dr Tunks has held several executive roles with ASX-listed groups
including CEO of Auroch Minerals, General Manager - Operations at Orinoco Gold
(Brazil) and CEO of A-Cap Resources (Botswana). More recently, he was appointed
MD of Meteoric Resources.
Dr Tunks has lectured on economic and structural geology at University of
Tasmania, published articles in peer-reviewed journals and presented at numerous
conferences. He is a member of the Australian Institute of Geoscientists, holds a
Bachelor of Science (Hons) from Monash and a PhD in geology from the University
of Tasmania.

Other current
directorships

Meteoric Resources NL (ASX: MEI)

Former directorships in
last 3 years

MSM Corporation International Limited (ASX: MSM)
Auroch Minerals Limited (ASX: AOU)

Special responsibilities Nil

Interests in shares and
options

Interest in shares

Interest in options

Mr Phillip Hains Company Secretary

1,033,449

12,000,000

Experience and
expertise

Mr. Hains is a Chartered Accountant and holds a master of business administration
from RMIT University. Mr Hains has over 20 years’ experience in providing
businesses with accounting, administration, compliance and general management
services.

Other current
directorships

Former directorships in
last 3 years

Nil

Nil

Special responsibilities Nil

Interests in shares and
options

Interest in shares

Interest in options

-

-

15

West Wits Mining Limited
Directors' report
30 June 2018
(continued)

Directors and company secretary (continued)

Meetings of directors

The numbers of meetings of the group's board of Directors and of each board committee held during the year
ended 30 June 2018, and the numbers of meetings attended by each Director were:

Mr Michael Quinert
Dr. Andrew Tunks
Mr Vincent Savage
Mr Daniel Pretorius
Mr Hulme Scholes

Full meetings
of directors
B
A
6
6
1
1
6
6
6
6
6
5

Meetings of committees

Audit

Remuneration

A
4
-
4
-
-

B
4
-
4
-
-

A
1
-
1
-
-

B
1
-
1
-
-

A = Number of meetings attended
B = Number of meetings held during the time the Director held office or was a member of the committee during
the year

Principal activities

The economic entity's principal continued activities in the course of the financial year were to explore for gold at
the mining tenements situated in Western Australia, South Africa and Papua Province, Indonesia.

There have been no significant changes in the nature of those principal activities during the financial year.

Dividends

The Directors did not pay or declare any dividends during the financial year (2017: Nil). The Directors do not
recommend the payment of a dividend in respect of the 2018 financial year.

Review of operations

Information on the operations and financial position of the group and its business strategies and prospects is set
out in the review of operations and activities on pages 2 to 12 of this annual report.

Operating results

The consolidated results for the economic entity for the year were as follows:

$1.00
Revenue
Net loss for the year after tax

2018
$'000

$8,739
($1,390)

2017
$'000

$559
($571)

The consolidated loss after income tax for the year is $1.390 million (2017: $0.571 million). The net operating and
investing cash outflows for the year were $1.215 million (2017: $0.564 million). The cash balance of
the
economic entity as at the 30 June 2018 was AUD $1.209 million (2017: AUD $0.165 million).

Material business risks

The economic entity operates within the gold mining exploration and development industry. The economic entity
is subject to a range of internal and external business risks, many of which lie outside the control of the Board
and management. The material identified risks include:

Foreign Exchange: The economic entity’s main business activities are undertaken within South Africa and
Indonesia with the vast proportion of expenditure denominated in South African Rand, Indonesian Rupiah and
United States Dollars. Each exchange rate is free floating and therefore exposed to currency market fluctuations
leaving the potential for negative price movements to impact on operating costs. Management attempts to
mitigate some currency risk, where possible, through buying the local currencies when the currencies are weak
and keeping those currencies in reserve for future use.

16

West Wits Mining Limited
Directors' report
30 June 2018
(continued)

Review of operations (continued)

Material business risks (continued)

Government Policy: Indonesia and South Africa have undergone significant political change over the past 20
years with each political regime continuing to evolve. Management continues to engage with all
levels of
government, law enforcement agencies and regulators in order to maintain that it acts as a good corporate citizen
and adheres to all local rules. However, the overseas jurisdictions in which the economic entity operates are
prone to political change and nationalistic focussed policies which could adversely impact upon the Company’s
operations.

Indigenous Relationships: Relationships with the economic entity’s local indigenous partners in Indonesia are
critical to the success of the economic entity’s operation at Derewo. There are also local laws under which the
economic entity must adhere to when working with its indigenous partners. As such the economic entity engages
with its indigenous partners on a regular basis to ensure that all requirements and expectations are being met.

Illegal mining operations: The economic entity has experienced many challenges in dealing with illegal mining
operations on the tenements. Although the actions of these artisinal miners are contrary to the laws of Indonesia,
it is often difficult to have them removed. Their presence on the tenements has caused delays in the economic
entity’s exploration and processing activities. The economic entity continues to work with local government
agencies to have the miners removed within the boundaries of local & federal laws.

Exploration: The economic entity has a significant amount of historical exploration data which has provided a
number of anomalies to assess as possible sources of gold in the region. However, there can be no certainty that
these anomalies will involve an economic resource or are in fact the source of gold. Furthermore the terrain and
vastness of the tenement package present significant hurdles in undertaking exploration.

Political activism: Anti-government political activism in Papua is ongoing. The economic entity continues to
work with all levels of government to minimise any impact, which could be experienced in the future.

Event since the end of the financial year

No matter or circumstance has occurred subsequent to period end that has significantly affected, or may
significantly affect, the operations of the group, the results of those operations or the state of affairs of the group
or economic entity in subsequent financial years.

Likely developments and expected results of operations

The likely developments in the economic entity’s operations, to the extent that such matters can be commented
upon, are covered in the Review of Operations in this annual report and above. In the opinion of the Directors,
disclosure of detailed information regarding the expected results of those operations in financial years after the
current financial year is not predictable at this stage, or may prejudice the interests of the economic entity;
accordingly this information has not been included in this report.

Significant changes in the state of affairs

During the year, the economic entity's share capital increased by $4.9 million as a result of 262 million new
ordinary shares issued. These shares were issued:

• under the private placements and share purchase plan taken place during the year to fund the acquisition of
100% interest in the Mt Cecelia and Tambina projects, and working capital;
• to the vendors of Mt Cecelia and Tambina projects as part of considerations; and
• to the directors of the Company to settle outstanding director fees from prior years.

The economic entity also noted a significant increase in revenue from the production activities in South Africa,
generating approximately $8.7 million in revenue for the year, refer to the Review of operations and activities
section for further details.

In the opinion of the Directors, there were no other significant changes in the state of affairs of the economic
entity during the financial year under review not otherwise disclosed in this annual report.

17

West Wits Mining Limited
Directors' report
30 June 2018
(continued)

Environmental regulation

The economic entity’s operations are not regulated by any significant environmental regulation under the law of
the Commonwealth or of a State or Territory of Australia. The economic entity is regulated by environmental
requirements in Indonesia and the Republic of South Africa which requirements are being complied with and
monitored on an ongoing basis.

Remuneration report (audited)

The Directors present the West Wits Mining Limited 2018 remuneration report, outlining key aspects of our
remuneration policy and framework, and remuneration awarded this year.

(A) Remuneration Policy

Remuneration of all Executive and Non-Executive Directors, and Officers of the economic entity is determined by
the remuneration and nomination committee.

The economic entity is committed to remunerating Senior Executives and Executive Directors in a manner that is
consistent with "best practice" (including the interests of shareholders) and market-competitive by ensuring fees
are appropriate and in line with the market. Remuneration packages are based on fixed component, determined
by the Executives' position, experience and performance, and may be satisfied via cash or equity.

Non-Executive Directors are remunerated out of the aggregate amount approved by shareholders and at a level
that is consistent with industry standards. Non-Executive Directors do not receive performance based bonuses
and prior shareholder approval is required to participate in any issue of equity. No retirement benefits are payable
other than statutory superannuation, if applicable.

Remuneration policy versus company financial performance

Over the past ten years since the Company was incorporated, it has listed on the Australian Securities Exchange
and acquired mining tenements in South Africa and in Papua Province,
Indonesia. Exploration activities
commenced in January 2008 within the South African tenements and August 2011 within the Papua Province,
Indonesia.

The nature of the economic entity's mining activities is highly speculative and can provide high returns if
successful. The speculative nature of these activities and recent global economic trends, have been factors
which have affected the economic entity's share price performance and shareholder wealth over the period.

The economic entity's remuneration policy is based on industry practice rather than the economic entity's
performance and takes into account the risk and liabilities assumed by the Directors and Executives as a result of
their involvement in the speculative activities undertaken by the economic entity. Directors and Executives are
fairly compensated for the extensive work they undertake.

No portion of the Directors and key management personnel remuneration was linked to performance during the
financial year. No performance-based cash payments or equity were paid/issued during the financial year (2017:
Nil).

Use of remuneration consultants

Due to the size and nature of the organisation, the Company has not engaged remuneration consultants to
review and measure its policy and strategy. The board reviews remuneration strategy periodically and may
engage remuneration consultants in the future to assist with this process.

(B) Remuneration report

(a) Details of remuneration

Key management personnel (KMP) of the group are defined as those persons having authority and responsibility
for planning, directing and controlling the major activities of the group, directly or indirectly, including any Director
(whether executive or otherwise) of the group receiving the highest remuneration. Details of the remuneration of
the KMP of the group are set out in the following tables.

The following person was considered other KMP of West Wits Mining Limited during the financial year:

18

West Wits Mining Limited
Directors' report
30 June 2018
(continued)

Remuneration report (audited) (continued)

(B) Remuneration report (continued)

(a) Details of remuneration (continued)

Mr Michael Quinert, Executive Chairman
Mr Vincent Savage, Executive Director
Mr Daniel Pretorius, Non-Executive Director
Mr Hulme Scholes, Non-Executive Director
Dr Andrew Tunks, Executive Director (appointed 13 March 2018)

Mr Tim Chapman and Mr Trevor Neale were not considered as key management personnel due to their minimal
involvement in the Group's affairs for the year ended 30 June 2018.

Amounts of remuneration

The following table shows details of remuneration expenses recognised for the group's KMP for the year ended
30 June 2018.

2018

Short-term benefits

Post-employment
benefits

Share-based
payments

Directors
Mr Michael Quinert
Mr Vincent Savage
Mr Daniel Pretorius (1)
Mr Hulme Scholes (1)
Dr Andrew Tunks (2)

Total KMP compensation

Cash
salary and
fees
$'000

Cash
bonus
$'000

Non-
monetary
benefits
$'000

Super-
annuation
$'000

Options
$000

Total
$'000

100
70
-
12
35

217

-
-
-
-
-

-

-
-
-
-
-

-

-
-
-
-
-

-

129
57
-
-
47

233

229
127
-
12
82

450

Notes

(1)
(2)

The amounts disclosed do not include prior years' remuneration waived by Mr Daniel Pretorius and Mr Hulme Scholes.
Dr Andrew Tunks' remuneration covers the period from his appointment as a director of the company (13 March 2018) to
30 June 2018.

The following table shows details of remuneration expenses recognised for the group's KMP for the year ended
30 June 2017.

2017

Short-term benefits

Post-employment
benefits

Share-based
payments

Cash
salary and
fees
$'000

Cash
bonus
$'000

Non-
monetary
benefits
$'000

Super-
annuation
$'000

Options
$000

Total
$'000

Directors
Mr Michael Quinert
Mr Vincent Savage
Mr Daniel Pretorius
Mr Hulme Scholes

Other KMP
Mr Tim Chapman
Mr Trevor Neale

Total

100
90
35
35

37
6

303

-
-
-
-

-
-

-

-
-
-
-

-
-

-

-
-
-
-

-
-

-

-
-
-
-

-
-

-

100
90
35
35

37
6

303

19

West Wits Mining Limited
Directors' report
30 June 2018
(continued)

Remuneration report (audited) (continued)

(B) Remuneration report (continued)

(b) Equity issued as part of remuneration for the year ended 30 June 2018

Issue of shares

The number of shares in the Company held during the financial year by each Director and other Key
Management Personnel of the Company, including their personally related parties, are set out below.

Shares were granted to Directors and Key Management Personnel for the year as compensation (2017: Nil). On
18 January 2018, shareholders passed resolutions to approve the allotment of shares to Mr Michael Quinert, Mr
Hulme Scholes and Mr Vincent Savage in lieu of cash payments to satisfy certain outstanding remuneration
payments owed to these directors.

Share holdings

2018

Directors
Mr Michael Quinert
Dr Andrew Tunks
Mr Vincent Savage
Mr Daniel Pretorius
Mr Hulme Scholes

Issue of options

Balance at the
start of the
period

Granted as
remuneration

Received on
exercise of
options

Purchased on
market

Balance at the
end of the
period

15,580,647
-
11,039,152
-
-
26,619,799

2,272,727
-
2,272,727
-
1,136,364
5,681,818

-
-
-
-
-
-

1,109,616
1,033,449
882,352
-
-
3,025,417

18,962,990
1,033,449
14,194,231
-
1,136,364
35,327,034

The number of options over ordinary shares in the Company held during the financial year by each Director and
other Key Management Personnel of the Company, including their personally related parties, are set out below.
No options were granted to Directors and Key Management Personnel for the year as compensation.

Option holdings

The number of options over ordinary shares in the parent entity held during the financial years ended 30 June
2018 and 30 June 2017 by each Director and other members of key management personnel of the group,
including their personally related parties, is set out below:

2018

Options
Mr Michael Quinert
Drr Andrew Tunks
Mr Vincent Savage
Mr Daniel Pretorius
Mr Hulme Scholes

Balance at
start of the
period

Granted as
remuneration

Options
Expired

Other
changes

Balance at
end of the
period

Vested and
exercisable

4,500,000
-
2,500,000
-
-
7,000,000

12,000,000
12,000,000
5,000,000
-
-
29,000,000

(4,500,000)
-
(2,500,000)
-
-
(7,000,000)

-
-
-
-
-
-

12,000,000
12,000,000
5,000,000
-
-
29,000,000

12,000,000
-
5,000,000
-
-
17,000,000

The terms and conditions of each grant of options over ordinary shares affecting remuneration of Directors and
other Key Management Personnel in future reporting years are as follows:

20

West Wits Mining Limited
Directors' report
30 June 2018
(continued)

Remuneration report (audited) (continued)

(B) Remuneration report (continued)

(b) Equity issued as part of remuneration for the year ended 30 June 2018 (continued)

Issue of options (continued)

Option holdings (continued)

Grant date
21/11/2017
21/11/2017
21/11/2017
21/11/2017
21/11/2017
21/11/2017
21/11/2017
21/11/2017
21/11/2017

Granted no.
4,000,000
4,000,000
4,000,000
4,000,000
4,000,000
4,000,000
2,000,000
1,500,000
1,500,000
29,000,000

Exercise

price Expiry date

$0.05
$0.05
$0.05
$0.05
$0.05
$0.05
$0.05
$0.05
$0.05

3/12/2022
3/12/2022
3/12/2022
29/01/2023
29/01/2023
29/01/2023
29/01/2023
29/01/2023
29/01/2023

Total vested
4,000,000
-
-
4,000,000
-
-
2,000,000
-
-
10,000,000

Vested % Exercised
-
100%
-
0%
-
0%
-
100%
-
0%
-
0%
-
100%
-
0%
-
0%

Option holders do not have any rights to participate in any issues of shares or other interests in the Company or
any other entity. Option holders hold no voting rights. On exercise, each option is convertible into one ordinary
share.

(c) Employment contracts of Directors and Key Management Personnel

At the date of this report, the Company does not have any formalised employment contracts with any director or
key management personnel. No Directors and Key Management Personnel are entitled to any termination
payments apart from remuneration payable up to and including the date of termination.

(d) Related party transactions

Transactions between related parties are on normal commercial terms and conditions no more favourable than
those available to other parties unless otherwise stated. Transactions with related parties are as follows:

$1.00
Legal fees that were paid to Quinert Rodda & Associates, a Director related
entity to Mr Michael Quinert
Legal fees that were paid to Malan Scholes Attorneys, a Director related entity
to Mr Hulme Scholes

2018
$'000

2017
$'000

65

27
92

5

11
16

[End of remuneration report]

Shares under option

At the date of this report, the unissued ordinary shares of West Wits Mining Limited under option are as follows:

Quantity
2,000,000
10,000,000
10,000,000
12,000,000
3,000,000
17,000,000

Grant Date
04/11/2015
15/11/2017
21/11/2017
21/11/2017
04/12/2017
21/11/2017

Exercise Price
$0.03
$0.05
$0.05
$0.05
$0.05
$0.05

Expiry Date
04/11/2018
14/11/2020
30/11/2020
03/12/2022
03/12/2022
29/01/2023

Shares issued as a result of the exercise of options

No options were exercised during the year ended 30 June 2018 (2017: Nil).

21

West Wits Mining Limited
Directors' report
30 June 2018
(continued)

Insurance of officers and indemnities

During the financial year the Company entered into an insurance policy to indemnify Directors and Officers
against certain liabilities incurred as a Director or Officer,
including costs and expenses associated in
successfully defending legal proceedings. The contract of insurance prohibits disclosure of the nature of the
liability and the amount of the premium. The Company has not otherwise, during or since the financial year,
indemnified or agreed to indemnify an Officer or Auditor of the Company or of any related body corporate against
a liability incurred as such as Officer or Auditor.

Proceedings on behalf of the company

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

No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under
section 237 of the Corporations Act 2001.

Rounding of amounts

The Company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ reports) Instrument
2016/191, issued by the Australian Securities and Investments commission, relating to ‘rounding-off’ of amounts
in accordance with that
in the Directors’ report. Amounts in the Directors’ report have been rounded off
instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.

Non-audit services

No fees for non-audit services were paid or payable to the external auditor of the parent entity during the year
ended 30 June 2018 (2017: Nil).

Auditor's independence declaration

The lead auditor’s independence declaration as required under section 307C of the Corporations Act 2001 for the
year ended 30 June 2018 has been received and is set out on the following page.

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

On behalf of the directors

Mr Michael Quinert
Executive Chairman
Melbourne
27 September 2018

22

AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE 
CORPORATIONS ACT 2001 TO THE DIRECTORS OF WEST WITS MINING LIMITED 

I declare that, to the best of my knowledge and belief during the year ended 30 June 2018 
there have been: 

—  no contraventions of the auditor independence requirements as set out in the 

Corporations Act 2001 in relation to the audit; and 

—  no contraventions of any applicable code of professional conduct in relation to the 

audit. 

William Buck Audit (Vic) Pty Ltd 
ABN 59 116 151 136 

J. C. Luckins 
Director 

Dated this 27th day of September 2018 

 
 
 
 
 
 
 
 
 
 
 
 
West Wits Mining Limited
Consolidated statement of comprehensive income
For the year ended 30 June 2018

Revenue
Cost of sales of goods
Gross Profit

Corporate administration
Consultancy expenses
Travel and marketing
Bad debt expense
Legal and professional fees
Director and employee expenses
Exploration expenses
Gain on disposal of assets
Depreciation and amortisation expense
Foreign exchange loss
Loss before income tax

Income tax expense
Loss for the period

Item that may be reclassified to profit or loss in subsequent year
Exchange differences on translation of foreign operations

Blank
Other comprehensive income (loss) for the period, net of tax

Total comprehensive income (loss) for the period

Loss is attributable to:

Owners of West Wits Mining Limited
Non-controlling interests

Total comprehensive income (loss) for the period is attributable to:

Owners of West Wits Mining Limited
Non-controlling interests

Notes

2

4

Consolidated entity

30 June
2018
$'000

30 June
2017
$'000

8,739
(7,848)
891

(473)
(1,020)
(172)
-
(147)
(363)
(56)
-
(10)
(40)
(1,390)

-
(1,390)

(311)

(311)

(1,701)

(1,141)
(249)
(1,390)

(884)
(817)
(1,701)

559
-
559

(377)
(63)
(92)
(185)
(28)
(311)
(8)
11
(20)
(57)
(571)

-
(571)

650

650

79

(556)
(15)
(571)

138
(59)
79

Cents

Cents

Earnings per share for profit attributable to the ordinary equity
holders of the Company:
Basic earnings per share
Diluted earnings per share

7
7

(0.2)
(0.2)

(0.1)
(0.1)

The above consolidated statement of comprehensive income should be read in conjunction with the
accompanying notes.

24

West Wits Mining Limited
Consolidated statement of financial position
As at 30 June 2018

Consolidated entity

30 June
2018
$'000

30 June
2017
$'000

Notes

8(a)

9

1,209
346
3
1,558

16
20,181
110
62
20,369

165
240
10
415

28
17,192
110
70
17,400

21,927

17,815

8(b)

2,643
2,643

2,393
2,393

20
20

14
14

2,663

2,407

19,264

15,408

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

Non-current assets
Plant and equipment
Exploration and evaluation, development and mine properties
Goodwill
Other non-current assets
Total non-current assets

Total assets

LIABILITIES
Current liabilities
Trade and other payables
Total current liabilities

Non-current liabilities
Other financial liabilities
Total non-current liabilities

Total liabilities

Net assets

EQUITY
Share capital
Reserves
Accumulated losses
Equity attributable to owners of West Wits Mining Limited

10(a)

36,089
(1,003)
(14,370)
20,716

31,251
(1,979)
(13,229)
16,043

Non-controlling interests

12(b)

(1,452)

(635)

Total equity

19,264

15,408

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

25

West Wits Mining Limited
Consolidated statement of changes in equity
For the year ended 30 June 2018

Attributable to owners of
West Wits Mining Limited

Share capital
$'000

Other
reserves
$'000

Accumulated
losses
$'000

Non-
controlling
interests
$'000

Total
$'000

Total
equity
$'000

Consolidated entity

Balance at 1 July 2016

32,537

(3,915)

(12,644)

15,978

(1,082)

14,896

Loss for the period
Other comprehensive income/(loss)
Total comprehensive income for the period

-
-
-

-
723
723

(585)
-
(585)

(585)
723
138

14
(73)
(59)

(571)
650
79

Transactions with owners in their capacity
as owners:
Reclassification of options reserve
Net movement in non-controlling interests in
subsidiaries

(1,286)

1,286

-
(1,286)

(73)
1,213

-

-
-

-

(73)
(73)

-

579
579

-

506
506

Balance at 30 June 2017

31,251

(1,979)

(13,229)

16,043

(635)

15,408

Balance at 1 July 2017

31,251

(1,979)

(13,229)

16,043

(635)

15,408

Loss for the period
Other comprehensive income/(loss)
Total comprehensive income for the
period

Transactions with owners in their
capacity as owners:
Contributions of equity, net of transaction
costs
Options issued

10(a)
10(b)

-
-

-

4,838
-
4,838

-
257

257

-
719
719

(1,141)
-

(1,141)
257

(249)
(568)

(1,390)
(311)

(1,141)

(884)

(817)

(1,701)

-
-
-

4,838
719
5,557

-
-
-

4,838
719
5,557

Balance at 30 June 2018

36,089

(1,003)

(14,370)

20,716

(1,452)

19,264

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

26

West Wits Mining Limited
Consolidated statement of cash flows
For the year ended 30 June 2018

Notes

15(a)

Consolidated entity

30 June
2018
$'000

30 June
2017
$'000

8,633
(9,151)
-
(518)

-
(300)
(326)
(626)

2,263
2,263

1,119
165
(75)
1,209

479
(429)
2
52

11
-
(627)
(616)

-
-

(564)
724
5
165

Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Interest received
Net cash (outflow) inflow from operating activities

Cash flows from investing activities
Payments for property, plant and equipment
Payments for investment in new projects
Payments for exploration
Net cash (outflow) from investing activities

Cash flows from financing activities
Proceeds from issues of shares
Net cash inflow from financing activities

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of period

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

27

West Wits Mining Limited
Notes to the consolidated financial statements
30 June 2018

1 Summary of significant accounting policies

This note provides a list of all significant accounting policies adopted in the preparation of these consolidated
financial statements. These policies have been consistently applied to all the periods presented, unless otherwise
stated. The financial statements are for the group consisting of West Wits Mining Limited and its subsidiaries.

(a) Basis of preparation

The financial statements are general purpose financial statements that have been prepared in accordance with
Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of
the Australian Accounting Standards Board and the Corporations Act 2001. The financial statements of the
economic entity comply with International Financial Reporting Standards (IFRS) issued by the International
Accounting Standards Board (IASB).

The financial statements cover the economic entity of West Wits Mining Limited and controlled entities (the
“economic entity” or “group”). West Wits Mining Limited is a listed for profit public company, incorporated and
domiciled in Australia.

(i) Reporting basis and conventions
The financial statements have been prepared on an accruals basis and are based on historical costs.

The following is a summary of the material accounting policies adopted by the economic entity in the preparation
of the financial statements. The accounting policies have been consistently applied, unless otherwise stated.

(b) Going concern

The economic entity reported a net loss for the year after income tax and before eliminating non-controlling
interests of $1.39 million (2017: $0.57 million) and net operating cash outflows of $0.52 million (2017: inflow of
$0.05 million). At 30 June 2018 the Economic Entity had $1.21 million Cash at Bank (2017: $0.17 million), and
net current liabilities of $1.09 million (2017: $1.98 million).

The Economic Entity has commenced gold extraction activities on the Sol Plaatijes project (SPP) since
September 2016. The Company also intends to commence extraction activities of gold deposits identified in
certain areas of interest at its tenements in Papua in the foreseeable future. The ability of the Company to get
unrestricted access to its tenements in Papua has been hampered over the past 12 months by illegal miners
onsite. The Indonesian Government has continued to indicate that they will assist in the removal of the illegal
miners from the tenements sites. The Company is awaiting a firm date commitment from the Government, for this
to commence.

Based on these future activities, the following matters have been considered by the directors in assessing the
economic entity’s continuing viability, its ability to continue as a going concern and its ability to pay its debts as
and when they fall due,

• Cash flow will be generated from the SPP with an agreement in place for a minimum processing of 12,000
tonnes per month, which translates to approx. $170,000 per month in West Wits’ share of the proceeds after
processing costs.

•

•

•

As at the date of this report the Company has the ability to issue up to 172.8 million ordinary shares under
ASX listing rules 7.1 and 7.1A. At the share price of $0.019 on 30 June 2018, this would give the Company
the ability to raise up to approximately $3.3million.

The continued support and payment of creditors and directors on agreed terms between the parties,

The ability of economic entity to scale down its operations or redirect exploration expenditure if required,
including the ability to defer amounts payable to directors as far as necessary should sufficient working
capital not be available, and

Based on the successful execution of the above the Directors are satisfied that the Economic Entity has access
to sufficient working capital to enable it to pay its debts as and when they fall due for a period of at least twelve
months from the date of this report, and for that reason the financial statements have been prepared on the basis
that the economic entity is a going concern, which contemplates the continuity of normal business activity,
realisation of assets and the settlement of liabilities in the normal course of business.

28

West Wits Mining Limited
Notes to the consolidated financial statements
30 June 2018
(continued)

1 Summary of significant accounting policies (continued)

(b) Going concern (continued)

Should the economic entity be unable to continue as a going concern, it may be required to realise its assets and
extinguish its liabilities other than in the ordinary course of business, and at amounts that differ from those stated
in the financial statements. The financial statements do not include any adjustments relating to the recoverability
and classification of recorded asset amounts or liabilities that might be necessary should the economic entity not
continue as a going concern.

(c) New accounting standards and interpretations

During the current year the economic entity adopted all new and revised Australian Accounting Standards and
Interpretations applicable to its operations which became mandatory. Adoption of these Standards did not have
any effect on the financial position or performance of the economic entity.

Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been
early adopted.

The following Australian Accounting Standards and Interpretations have recently been issued or amended but
are not yet effective and therefore have not been adopted by the Group for the annual reporting period ended 30
June 2018:

29

West Wits Mining Limited
Notes to the consolidated financial statements
30 June 2018
(continued)

1 Summary of significant accounting policies (continued)

(c) New accounting standards and interpretations (continued)

Title of
standard

Nature of change

Impact

AASB 15
Revenue from
Contracts with
Customers

The AASB has issued a new
standard for the recognition of
revenue. This will replace AASB
118 which
revenue
arising from the sale of goods
and the rendering of services
and AASB 111 which covers
construction contracts.

covers

The new standard is based on
the principle that
revenue is
recognised when control of a
good or service transfers to a
customer.

has
and

considered

the
Management
recognition
measurement
requirements of AASB 15 in conjunction
with the existing contracts between the
Group and its customers. Based on this
assessment, management concluded
that
no
and
difference
measurement of revenue had AASB 15
been adopted and applied during the
reporting period, as compared to the
current accounting policy on revenue.

there would
the
to

have
recognition

been

AASB 16
Leases

AASB 9
Financial
instruments

all

issued

The standard permits either a
full retrospective or a modified
retrospective approach for
the
adoption.
in
AASB 16 was
in
February 2016. It will result
being
almost
recognised
balance
sheet, as the distinction between
operating and finance leases is
removed.
new
Under
standard, an asset (the right to
use the leased item) and a
financial
liability to pay rentals
are recognised.

leases
the

the

on

The only exceptions are short
term and low-value leases. The
accounting for lessors will not
significantly change.

9

addresses

AASB
the
classification, measurement and
derecognition of financial assets
and
liabilities,
introduces new rules for hedge
accounting
new
and
financial
impairment model
assets.

financial

for

a

has
and

considered

the
Management
recognition
measurement
requirements of AASB 16 in conjunction
with
lease
agreements between the Group and its
suppliers.

operating

existing

the

assessment,
this
on
Based
management
there
that
concluded
would have been no material impact to
the financial statements had AASB 16
been adopted and applied during the
period, as compared to the current
accounting policy on leases as the
Group does not have any material
operating lease arrangement in place.

has
and

considered

the
Management
measurement
recognition
requirements of AASB 9 and does not
expect the new standard to affect the
classification and measurement of
its
financial instruments as the Group does
not have any long-term financial assets
or derivatives in existence.

Mandatory
application
date/Date of
adoption by
group
Must be
applied for
financial years
commencing
on or after 1
January 2018.

The Group will
adopt this
standard for
financial year
commencing 1
July 2018.

Mandatory
for
financial years
commencing
on or after 1
January 2019.
At
this stage,
the Group does
intend to
not
adopt
the
standard
before
effective date.

its

The Group will
this
adopt
standard
for
financial
year
commencing 1
July 2019.

Mandatory
for
financial years
commencing
on or after 1
January 2018.
At
this stage,
the Group does
intend to
not
adopt
the
standard
before
effective date.

its

30

West Wits Mining Limited
Notes to the consolidated financial statements
30 June 2018
(continued)

1 Summary of significant accounting policies (continued)

(d) Accounting policies

(i) Principles of consolidation
A controlled entity is any entity West Wits Mining Limited has the power to control the financial and operating
policies of, so as to obtain benefits from its activities. The economic entity controls an entity when the economic
entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to
affect those returns through its power to direct the activities of the entity. The existence and effect of potential
voting rights that are currently exercisable or convertible are considered when assessing whether the Company
controls another entity. Controlled entities are fully consolidated from the date on which control is transferred to
the consolidated entity. They are de-consolidated from the date that control ceases.

A list of controlled entities is contained in Note 12 to the financial statements.

All inter-company balances and transactions between entities in the economic entity, including any unrealised
profits or losses, have been eliminated on consolidation. Accounting policies of subsidiaries have been changed
where necessary to ensure consistencies with those policies applied by the Company.

Where controlled entities have entered or left the economic entity during the year, their operating results have
been included/excluded from the date control was obtained or until the date control ceased.

Non-controlling interests in the equity and results of the entities that are controlled are shown as a separate item
in the consolidated financial statements.

(ii) Plant and equipment
Depreciation

Each class of plant and equipment is carried at cost less, where applicable, any accumulated depreciation and
impairment losses.

The depreciable amount of all fixed assets is depreciated on a straight-line basis over their useful lives to the
economic entity commencing from the time the asset is held ready for use.

The depreciation rates used for each class of depreciable assets are:

Plant & Equipment: 10% - 33%

The assets' residual values and useful
reporting period.

lives are reviewed, and adjusted if appropriate, at the end of each

An item of property, plant and equipment is derecognised upon disposal or when there is no future economic
benefit to the consolidated entity. Gains and losses between the carrying amount and the disposal proceeds are
taken to profit or loss.

(iii) Financial assets
Trade and other receivables
Trade and other receivables are recognised and carried at amortised cost using effective interest method less a
provision for any uncollectible debts.

Impairment
At the end of each reporting period, the economic entity assess whether there is objective evidence that a
financial asset has been impaired. Impairment losses are recognised in the statement of profit or loss and other
comprehensive income.

The amount of the impairment allowance for financial assets carried at cost is the difference between the asset’s
carrying amount and the present value of estimated future cash flows, discounted at the current market rate of
return for similar financial assets.

31

West Wits Mining Limited
Notes to the consolidated financial statements
30 June 2018
(continued)

1 Summary of significant accounting policies (continued)

(d) Accounting policies (continued)

(iv) Intangibles
Intangible assets
Intangible assets acquired as part of a business combination are initially measured at their fair value at the date
of the acquisition. Intangible assets acquired separately are initially recognised at cost. Finite life intangible
assets are subsequently measured at cost less amortisation and any impairment. The gains or losses recognised
in profit or loss arising from the derecognition of intangible assets are measured as the difference between net
lives of finite life
disposal proceeds and the carrying amount of the intangible asset. The method and useful
intangible assets are reviewed annually. Changes in the expected pattern of consumption or useful
life are
accounted for prospectively by changing the amortisation method or period.

(v) Cash and cash equivalents
institutions, other
Cash and cash equivalents includes cash on hand, deposits held at call with financial
short-term, highly liquid investments with original maturities of three months or less that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of changes in value.

(vi) Provisions
Provisions are recognised when the economic entity has a legal or constructive obligation, as a result of past
events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably
measured.

(vii) Employee benefits
Provision is made for the economic entity's liability for employee benefits arising from services rendered by
employees up to the end of the reporting period.

Short-term and Long-term employee benefits:

A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave, long
service leave, and sick leave when it is probable that settlement will be required and they are capable of being
measured reliably.

Liabilities recognised in respect of short-term employee benefits, are measured at their nominal values using the
remuneration rate expected to apply at the time of settlement. Liabilities recognised in respect of long term
employee benefits are measured as the present value of the estimated future cash outflows to be made by the
Company in respect of services provided by employees up to reporting date.

(viii)Income tax
Deferred income tax is provided on all temporary differences at the balance date between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes. No deferred income tax will be
recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no
effect on accounting or taxable profit or loss.

The amount of benefits brought to account or which may be realised in the future is based on the assumption that
no adverse change will occur in income taxation legislation and the anticipation that the Group will derive
sufficient future assessable income to enable the benefit to be realised and comply with the conditions of
deductibility imposed by the law.

The charge for current income tax expense is based on the profit adjusted for any non-assessable or disallowed
items. It is calculated using the tax rates that have been enacted or are substantially enacted by the end of the
reporting period.

Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available
against which deductible temporary differences can be utilised.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or
liability is settled. Deferred tax is credited in the statement of comprehensive income except where it relates to
items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity.

32

West Wits Mining Limited
Notes to the consolidated financial statements
30 June 2018
(continued)

1 Summary of significant accounting policies (continued)

(d) Accounting policies (continued)

(ix) Income
Interest income is recognised on a proportional basis taking into account the interest rates applicable to the
financial assets.

Other income is recognised when it is received or when the right to receive payment is established.

All income is stated net of the amount of goods and services tax (GST) or value added tax (VAT).

(x) Goods and Services Tax (GST)/ Value Added Tax (VAT)
Income, expenses and assets are recognised net of the amount of GST/VAT, except where the amount of
GST/VAT incurred is not recoverable from the Taxation Authority. In these circumstances the GST/VAT is
recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and
payables in the statement of financial position are shown inclusive of GST/VAT.

Cash flows are presented in the statement of cash flows on a gross basis, except for the GST/VAT component of
investing and financing activities, which are disclosed as operating cash flows.

(xi) Impairment of Assets
At the end of each reporting period, the economic entity reviews the carrying values of its tangible and intangible
assets to determine whether there is any indication that those assets have been impaired.

If such an indication exists, the recoverable amount of the asset, being the higher of the asset's fair value less
costs to sell and value in use, is compared to the asset's carrying value. Any excess of the asset's carrying value
over its recoverable amount is expensed to the statement of profit or loss and other comprehensive income.

Where it is not possible to estimate the recoverable amount of an individual asset, the economic entity estimates
the recoverable amount of the cash-generating unit to which the asset belongs.

(xii) Trade and other payables
Liabilities for trade creditors and other amounts are initially recognised at the fair value of the consideration to be
paid in the future for goods and services received, whether or not billed to the economic entity. They are
subsequently measured at amortised cost.

Payables to related parties are measured at fair value initially then subsequently measured at amortised cost
using effective interest method. Interest, when charged by the lender is recognised as an expense on an accruals
basis.

(xiii)Leases
the
The determination of whether an arrangement
arrangement and requires an assessment of whether the fulfilment of the arrangement is dependent on the use
of a specific asset or assets and the arrangement conveys a right to use the asset.

is or contains a lease is based on the substance of

A distinction is made between finance leases, which effectively transfer from the lessor to the lessee substantially
all the risks and benefits incidental to ownership of leased assets, and operating leases, under which the lessor
effectively retains substantially all such risks and benefits.

Finance leases are capitalised. A lease asset and liability are established at the fair value of the leased assets, or
if lower, the present value of minimum lease payments. Lease payments are allocated between the principal
component of the lease liability and the finance costs, so as to achieve a constant rate of interest on the
remaining balance of the liability.

Leased assets acquired under a finance lease are depreciated over the asset's useful life or over the shorter of
the asset's useful life and the lease term if there is no reasonable certainty that the consolidated entity will obtain
ownership at the end of the lease term.

Operating lease payments, net of any incentives received from the lessor, are charged to profit or loss on a
straight-line basis over the term of the lease.

33

West Wits Mining Limited
Notes to the consolidated financial statements
30 June 2018
(continued)

1 Summary of significant accounting policies (continued)

(d) Accounting policies (continued)

(xiv)Foreign currency transactions and balances
Functional and presentation currency

The functional currency of each entity is measured using the currency of the primary economic environment in
which that entity operates. The consolidated financial statements are presented in Australian dollars which is the
parent entity's functional and presentation currency.

Transaction and balances

the transaction. Foreign currency monetary items are translated at

Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the
date of
the year-end exchange rate.
Non-monetary items measured at historical cost continue to be carried at the exchange rate at the date of the
transaction. Non-monetary items measured at fair value are reported at the exchange rate at the date when fair
values were determined.

Exchange differences arising on the translation of non-monetary items are recognised directly in equity to the
extent that the gain or loss is directly recognised in equity; otherwise the exchange difference is recognised in the
statement of profit or loss and other comprehensive income.

Economic entity companies

The financial results and position of foreign operations whose functional currency is different from the economic
entity’s presentation currency are translated as follows:

•
•

•

assets and liabilities are translated at year-end exchange rates prevailing at the end of the reporting period;
income and expenses are translated at average exchange rates, which approximate the rate at the date of
the transaction, for the period; and
retained earnings are translated at the exchange rates prevailing at the date of the transaction.

Exchange differences arising on translation of foreign operations are transferred directly to the economic entity’s
foreign currency translation reserve in the statement of financial position. These differences are recognised in the
statement of profit or loss and other comprehensive income in the period in which the operation is disposed.

(xv) Exploration and development expenditure
Exploration, evaluation and development expenditure incurred is accumulated in respect of each identifiable area
of interest. These costs are only carried forward to the extent that they are expected to be recouped through
successful development of the area or where activities in the area have not yet reached a stage that permits
reasonable assessment of the existence of economically recoverable reserves. Accumulated costs in relation to
an abandoned area are written off in full against profit in the year in which the decision to abandon the area is
made.

When production commences, the accumulated costs for the relevant area of interest are amortised over the life
of the area according to the rate of depletion of the economically recoverable reserves.

A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry
forward costs in relation to that area of interest.

Costs of site restoration are provided over the life of the facility from when exploration commences and are
included in the costs of that stage. Site restoration costs include the dismantling and removal of mining plant,
equipment and building structures, waste removal and rehabilitation of the site in accordance with clauses of the
mining permits. Such costs have been determined using estimates of future costs, current legal requirements and
technology on an undiscounted basis.

Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of site
the restoration due to community
restoration,
expectations and future legislation.

there is an uncertainty regarding the nature and extent of

(xvi)Contributed equity
Ordinary shares and unissued share options are classified as issued capital. Ordinary issued capital
recognised at the fair value of the consideration received by the Company.

is

34

West Wits Mining Limited
Notes to the consolidated financial statements
30 June 2018
(continued)

1 Summary of significant accounting policies (continued)

(d) Accounting policies (continued)

Any transaction costs directly attributable to the issue of ordinary shares are recognised directly in equity as a
reduction of the share proceeds received.

(xvii)Share-based payments
Equity settled share-based payments are measured at fair value at the date of grant. Fair value for shares and
listed options is measured using market value. Fair value for unlisted options is measured by use of the
Black-Scholes model. The expected life used in the model has been adjusted, based on management's best
estimate for the effects of non-transferability or exercise restrictions.

The Black-Scholes option pricing model also takes into account the exercise price, the term of the option, the
impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected
dividend yield and the risk free interest rate for the term of
together with non-market vesting
conditions.

the option,

(xviii)Earnings per share
Basic earnings/(losses) per share is determined by dividing the result from ordinary activities after related income
tax expense by the weighted average number of ordinary shares outstanding during the financial year. Diluted
to basic earnings/(losses) per share as the potentially dilutive
earnings/(losses) per share are equivalent
securities are excluded from the computation of diluted earnings/(losses) per share because the effect
is
anti-dilutive.

(xix)Rounding of amounts
The economic entity is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports)
Instrument 2016/191, issued by the Australian Securities and Investments Commission, relating to ‘rounding-off’.
Amounts in this report have been rounded off in accordance with that instrument to the nearest thousand dollars,
or in certain cases, the nearest dollar.

(xx) Critical Accounting Estimates and Assumptions
Exploration and evaluation costs have been capitalised on the basis that the consolidated entity will commence
commercial production in the future, from which time the costs will be amortised in proportion to the depletion of
the mineral resources. Key judgements are applied in considering costs to be capitalised which includes
determining expenditures directly related to these activities and allocating overheads between those that are
expensed and capitalised. In addition, costs are only capitalised that are expected to be recovered either through
successful development or sale of the relevant mining interest. Factors that could impact the future commercial
production at the mine include the level of reserves and resources, future technology changes, which could
impact the cost of mining, future legal changes and changes in commodity prices. To the extent that capitalised
costs are determined not to be recoverable in the future, they will be written off in the period in which this
determination is made.

The Directors evaluate estimates and judgements incorporated into the financial statements based on historical
knowledge and best available current information and that capitalised exploration costs are expected to be
recovered either through successful development or sale of the relevant mining interest.

The value attributed to share options issued is an estimate calculated using an appropriate mathematical formula
based on an option pricing model. The choice of models and the resultant option value require assumptions to be
made in relation to the likelihood and timing of the conversion of the options to shares and the value of volatility of
the price of the underlying shares.

In order to apply the appropriate accounting approach for an acquisition transaction, the Group is required to
determine whether the acquisition is of a business (and therefore within the scope of
IFRS 3 Business
Combinations), or is of an asset or group of assets that do not constitute a business and is therefore outside the
scope of IFRS 3, which includes judgements and estimates applied by management.

(xxi)Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the
discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting
period.

35

West Wits Mining Limited
Notes to the consolidated financial statements
30 June 2018
(continued)

1 Summary of significant accounting policies (continued)

(d) Accounting policies (continued)

(xxii)Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue
are net of returns, trade allowances, rebates and amounts collected on behalf of third parties.

The group recognises revenue when the amount of revenue can be reliably measured, it is probable that future
economic benefits will flow to the entity and specific criteria have been met for each of the group's activities as
described below. The group bases its estimates on historical results, taking into consideration the type of
customer, the type of transaction and the specifics of each arrangement.

The specific accounting policies for the group’s main types of revenue are explained in note 2.

Interest income
Interest income is recognised using the effective interest method. When a receivable is impaired, the group
reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the
original effective interest rate of the instrument, and continues unwinding the discount as interest income. Interest
income on impaired loans is recognised using the original effective interest rate.

Dividends
Dividends are recognised as revenue when the right to receive payment is established. This applies even if they
are paid out of pre-acquisition profits. However, the investment may need to be tested for impairment as a
consequence, refer note .

Revenue from mining production
Revenue from mining production is brought to account when the significant risks and rewards of ownership have
transferred to the buyer and selling prices are known or can be reasonably estimated.

2 Revenue

The group derives the following types of revenue:

Operating activities
Revenue
Other Income
Total revenue from continuing operations

3 Operating segments

(a) Segment results

Consolidated entity

30 June
2018
$'000

30 June
2017
$'000

8,600
139
8,739

557
2
559

The economic entity operates in one operating segment being mining and exploration, and its activities can be
divided into 3 reportable segments based on reports received and reviewed by the Board.

The three reportable segments are based on 3 distinct geographical
locations, South Africa, Indonesia and
Australia. Mining and exploration activities are carried out only on the South African and Indonesian segments;
whereas the Australian segment reflects only the administrative arm of the business that supports the mining and
exploration activities in the other two geographical locations.

36

3 Operating segments (continued)

(a) Segment results (continued)

Consolidated entity
2018

External sales
Other income
Total

Segment Result

Depreciation and amortisation

West Wits Mining Limited
Notes to the consolidated financial statements
30 June 2018
(continued)

South
Africa

$'000

8,600
138
8,738

Indonesia Australia
$'000

$'000

Total

$'000

-
-
-

-
1
1

8,600
139
8,739

(146)

(190)

(1,054)

(1,390)

-

(9)

(1)

(10)

(17,096)

(10,885)

(244)

(28,225)

There was no impairment charge or other significant non-cash item recognised in 2018.

The segment information provided to the strategic steering committee for the reportable segments for the year
ended 30 June 2017 is as follows:

Consolidated entity
2017

External sales
Other income
Total

Segment Result

Depreciation and amortisation
Disposal of assets

South
Africa

$'000

557
-
557

Indonesia Australia
$'000

$'000

Total

$'000

-
-
-

-
2
2

557
2
559

19

(191)

(399)

(571)

-
-

(20)
11

-
-

(20)
11

(7,713) (11,313)

31

(18,995)

There was no impairment charge or other significant non-cash item recognised in 2017.

(b) Segment assets

Segment assets are measured in the same way as in the financial statements. These assets are allocated based
on the operations of the segment and the physical location of the asset.

South Africa
Indonesia
Australia

Total segment assets

(c) Segment liabilities

Reportable segments' liabilities are reconciled to total liabilities as follows:

Consolidated entity

30 June
2018
$'000

8,216
9,592
4,119
21,927

30 June
2017
$'000

8,194
9,544
77
17,815

37

West Wits Mining Limited
Notes to the consolidated financial statements
30 June 2018
(continued)

Consolidated entity

30 June
2018
$'000

772
1,862
29
2,663

30 June
2017
$'000

310
1,531
566
2,407

3 Operating segments (continued)

(c) Segment liabilities (continued)

South Africa
Indonesia
Australia

Total segment liabilities

(d) Other segment information

During the year ended 30 June 2018, there was one major customer who contributed to more than 10% of the
group's revenue.

4 Income tax expense

(a)

Income tax expense

Income tax expense

(b) Numerical reconciliation of income tax expense to prima facie tax payable

Loss from continuing operations before income tax expense
Tax at the Australian tax rate of 27.5% (2017 - 27.5%)
Tax effect of amounts which are not deductible (taxable)
in calculating taxable income:
Non-allowable expenses
Subtotal

Current year tax benefit not recognised
Income tax expense

(c) Tax losses

Unused tax losses for which no deferred tax asset has been recognised
Potential tax benefit @ 27.5% (2017: 27.5%)

Consolidated entity

30 June
2018
$'000

30 June
2017
$'000

-

-

Consolidated entity

30 June
2018
$'000

(1,390)
382

2
384

(384)
-

1,390

30 June
2017
$'000

(571)
157

2
159

(159)
-

571

Consolidated entity

30 June
2018
$'000

4,215
1,159

30 June
2017
$'000

2,533
697

38

West Wits Mining Limited
Notes to the consolidated financial statements
30 June 2018
(continued)

5 Key management personnel disclosures

The aggregate compensation made to Directors and other members of key management personnel of the group
is set out below:

Short-term employee benefits
Share-based payments

(a) Transactions with other related parties

The following transactions occurred with related parties:

Consolidated entity

30 June
2018
$000

30 June
2017
$000

217
233
450

303
-
303

Consolidated entity

30 June
2018
$000

30 June
2017
$000

Sales and purchases of goods and services
Legal fees that were paid to Quinert Rodda & Associates, a Director related
entity to Mr Michael Quinert
Legal fees that were paid to Malan Scholes Attorneys, a Director related entity to
Mr Hulme Scholes

71

25

5

11

6 Remuneration of auditors

During the year the following fees were paid or payable for services provided by the auditor of the parent entity,
its related practices and non-related audit firms:

Remuneration of the auditor of the parent entity for:
Audit services and review of financial statements

Remuneration of other auditors of subsidiaries for:

Audit services and review of financial statements
Total remuneration for audit and other assurance services

7 Earnings per share

(a) Basic earnings per share

Consolidated entity

2018
$

2017
$

47,500

15,000
62,500

40,000

10,000
50,000

Consolidated entity

30 June
2018
Cents

30 June
2017
Cents

Attributable to the ordinary equity holders of the company

(0.23)

(0.13)

39

West Wits Mining Limited
Notes to the consolidated financial statements
30 June 2018
(continued)

7 Earnings per share (continued)

(b) Diluted earnings per share

Attributable to the ordinary equity holders of the company
(c) Reconciliation of earnings used in calculating earnings per share

The earnings and weighted average of ordinary shares used in the calculation of
basic earnings per share are as follows.

From operations
Add back profit/(loss) attributable to non-controlling interest

(d) Weighted average number of shares used as the denominator

Consolidated entity

30 June
2018
Cents

30 June
2017
Cents

(0.23)

(0.13)

Consolidated entity

30 June
2018
$'000

30 June
2017
$'000

(1,141)
(249)
(1,390)

(571)
(14)
(585)

Consolidated entity

2018
Number

2017
Number

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

603,927,248

456,203,370

The outstanding share options as at 30 June 2018 are considered to be anti-dilutive and therefore were excluded
from the diluted weighted average number of ordinary shares calculation.

8 Financial assets and financial liabilities

(a) Trade and other receivables

Trade receivables
Other receivables

Consolidated entity
30 June
30 June
2017
2018
Current
Current
$'000
$'000

55
291
346

10
230
240

40

West Wits Mining Limited
Notes to the consolidated financial statements
30 June 2018
(continued)

8 Financial assets and financial liabilities (continued)

(b) Trade and other payables

Current liabilities
Trade payables
Accrued expenses

Consolidated entity

30 June
2018
$'000

30 June
2017
$'000

1,453
1,190
2,643

1,156
1,237
2,393

Trade payables are unsecured and are usually paid within 30 days of recognition.

9 Exploration and evaluation, development and mine properties

Consolidated entity

At 1 July 2016
Cost or fair value
Year ended 30 June 2017
Opening net book amount
Acquisition during the year
Exploration expenses capitalised
Closing net book amount

Consolidated entity

Year ended 30 June 2018
Opening net book amount
Acquisition during the year
Exploration expenses capitalised
Foreign exchange translation
gian/(loss)
Closing net book amount

Derewo River
Gold Project
$'000

Rand & DRD
Leases
$'000

Tambina
Gold Project
$'000

Mt Cecelia
Project
$'000

9,338

9,338
175
(188)
9,325

9,325
-
250

(178)
9,397

6,748

6,748
464
655
7,867

7,867
-
76

(105)
7,838

-

-
-
-
-

-
1,847
-

-
1,847

-

-
-
-
-

-
1,099
-

-
1,099

Total
$'000

16,086

16,086
639
467
17,192

17,192
2,946
326

(283)
20,181

Exploration expenditure - capitalised
Exploration expenditure - non-capitalised*

30 June 2018
$'000
326
56
382

30 June 2017
$'000
639
8
647

*These costs were expensed as incurred as they were not related to areas of interests.

41

West Wits Mining Limited
Notes to the consolidated financial statements
30 June 2018
(continued)

9 Exploration and evaluation, development and mine properties (continued)

(a) Acquisition of Northern Reserves Pty Ltd

On 15 November 2017, the group completed the acquisition of Northern Reserves Pty Ltd ("Northern Reserves")
via the issue of 52,000,000 new ordinary shares at a deemed price of $0.017 per share and 10,000,000 unlisted
options at nil consideration. Prior to the completion, the group executed a Share Purchase Agreement with the
vendors of Northern Reserves and 3,000,000 new ordinary shares at a deemed price of $0.017 per share were
issued as the part of the consideration. A further 45,000,000 million shares and a cash payment of $75,000 will
be issued upon achievement of certain milestones upon the grant of the license application and commencement
of a reverse circulation-percussion drilling program within the area comprised in the license application. Northern
Reserves is the holder of one application in the Pilbara region, called the Mt Cecelia Project (EL 45/5045) that is
targeting high-grade conglomerate gold mineralisation associated with the Lower Fortescue Group.

The acquisition was not considered a business combination as defined in AASB 3 Business combination as
Northern Reserves was not considered to be carrying on a business. As such the acquisition has been treated as
an asset acquisition with the fair value of the asset being the consideration. The acquisition also has contingent
consideration, as at 30 June 2018, to be paid upon achieving certain milestones as discussed above.

this asset

No other transaction costs have been incurred by the group in the completion of this transaction. The acquisition
of
the carrying amount of deferred
exploration and evaluation expenditure is dependent on the successful development and commercial exploitation,
or alternatively the sale, of the respective area of interest.

is capitalised and measured at cost. The recoverability of

(b) Acquisition of Tambina Gold Project

On 30 January 2018, the group completed the acquisition of Tambina Gold Project via the issue of 70,000,000
new ordinary shares at a deemed price of $0.022 per share. A total non-refundable cash payment of $300,000
was paid to the vendor. The vendor is entitled to a further 30,000,000 fully paid ordinary West Wits shares upon
the satisfaction of certain milestones and the grant of an aggregate net smelter royalty of 2% of net revenue from
production within the three mining leases.

The acquisition was not considered a business combination as defined in AASB 3 Business combination as
Tambina Gold Project was not considered to be carrying on a business. As such the acquisition has been treated
as an asset acquisition with the fair value of the asset being the consideration.

this asset

No other transaction costs have been incurred by the group in the completion of this transaction. The acquisition
the carrying amount of deferred
of
exploration and evaluation expenditure is dependent on the successful development and commercial exploitation,
or alternatively the sale, of the respective area of interest.

is capitalised and measured at cost. The recoverability of

(c) Derewo River Gold Project

As at 30 June 2018, the carrying value of the asset meets the criteria of AASB 6 with carrying value being lower
the expected recoverability of the asset on successful development and commercial exploitation which the Group
has been making progress. Management continues to evaluate different avenues to materialise the return of
investment. As of the date of this report, there has been no formal decision made by the group which might affect
the carrying value of this asset.

42

10 Equity

(a) Share capital

Ordinary shares

Ordinary shares - fully paid

Total share capital

(i) Movements in ordinary share:

Details

Balance at 1 July 2016

Shares issued during the year
Less: Transaction costs arising on share issue

Balance at 30 June 2017

Shares issued during the year
Less: Transaction costs arising on share issue

Balance at 30 June 2018

Date

27/10/2017
2/11/2017

Details
Issue of ordinary shares as part of the consideration
for the acquisition of Northern Reserves
Issue of ordinary shares under private placement
Issue of ordinary shares as part of the consideration
for the acquisition of Northern Reserves

15/11/2017
16/11/2017 Share purchase plan
24/11/2017
4/12/2017

Issue under private placement
Issue under private placement
Issue of ordinary shares as part of the consideration
for the acquisition of Tambina project
Issued of ordinary shares to directors

30/01/2018
30/01/2018

West Wits Mining Limited
Notes to the consolidated financial statements
30 June 2018
(continued)

30 June
2018
Shares

30 June
2017
Shares

30 June
2018
$'000

30 June
2017
$'000

717,847,679
717,847,679

456,203,370
456,203,370

36,089
36,089

31,251
31,251

Number of
shares
(in thousands)

$'000

456,203

31,251

-
-

-
-

456,203

31,251

261,644
-

4,915
(77)

717,847

36,089

No. of shares

Unit price ($)

$'000

3,000,000
44,117,647

52,000,000
64,117,572
14,318,181
8,409,091

70,000,000
5,681,818
261,644,309

0.017
0.017

0.017
0.017
0.022
0.022

0.022
0.018

51
750

884
1,090
315
185

1,540
100
4,915

(ii) Ordinary shares
Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to the
number of shares held. At shareholders meetings each ordinary share is entitled to one vote when a poll
is
called, otherwise each shareholder has one vote on a show of hands. The fully paid ordinary shares have no par
value and the company does not have a limited amount of authorised capital.

43

10 Equity (continued)

(b) Options

Opening balance
Options issued
Options expired
Closing balance

West Wits Mining Limited
Notes to the consolidated financial statements
30 June 2018
(continued)

30 June
2018
Options

30 June
2017
Options

30 June
2018
$'000

31,000,000
52,000,000
(29,000,000)
54,000,000

61,000,000
-
(30,000,000)
31,000,000

1,286
719
-
2,005

30 June
2017
$'000

1,286
-
-
1,286

During the financial year 2018, the following unlisted options were issued:

Grant
date

Details

15/11/2017
22/11/2017
22/11/2017
4/12/2017

Issue of options as part of the consideration for the
acquisition of Northern Reserves
Issued options to directors
Issued options to consultants
Issued options to consultants

As at 30 June 2018, the following unlisted options are in existence:

No. of shares

10,000,000
17,000,000
22,000,000
3,000,000
52,000,000

Share-based
payment
expense
$'000

164
233
283
39
719

Expiry date
4/11/2018
14/11/2020
30/11/2020
3/12/2022
3/12/2022
29/01/2023

Exercise price
($)
0.03
0.05
0.05
0.05
0.05
0.05

Fair value at
grant date per
option ($)
0.015
0.017
0.017
0.019
0.019
0.017

Series Issued
4/11/2015
15/11/2017
4/12/2017
4/12/2017
4/12/2017
30/01/2018

Quantity
2,000,000
10,000,000
10,000,000
12,000,000
3,000,000
17,000,000
54,000,000

Grant date
4/11/2015
15/11/2017
21/11/2017
21/11/2017
4/12/2017
21/11/2017

No options were exercised during the year (2017: nil)

11 Share-based payments

During the year 2018, the Group issued:

• 10,000,000 options to the vendors of the Northern Reserves transaction as part of consideration;

• 17,000,000 options to the directors as remuneration after receiving shareholder approval at the General
Meeting held on 18 January 2018; and

• 15,000,000 options to consultants in exchange for services rendered.

Grant date
15/11/2017
21/11/2017
21/11/2017
4/12/2017
21/11/2017

Quantity
10,000,000
10,000,000
12,000,000
3,000,000
17,000,000
52,000,000

Exercise
price ($)
0.05
0.05
0.05
0.05
0.05

Expiry
date
14/11/2020
30/11/2020
3/12/2022
3/12/2022
29/01/2023

Vested No.
10,000,000
10,000,000
4,000,000
1,000,000
6,000,000

Vested % Exercised
-
-
-
-
-

100%
100%
33%
33%
35%

44

West Wits Mining Limited
Notes to the consolidated financial statements
30 June 2018
(continued)

11 Share-based payments (continued)

The options are expensed at grant date to profit and loss. The expense amount was calculating using
Black-Scholes valuation model and the inputs used to determine the fair value at grant date are as follows:

Grant
date
15/11/2017
21/11/2017
21/11/2017
4/12/2017

Share
price at
grant
date ($)
0.029
0.028
0.028
0.026

Expected
volatility (%)
88%
88%
88%
109%

Risk-free
rate
(%)
1.93%
1.93%
2.17%
2.17%

Expected
life of
options
(years)
3
3
5
5

Exercise
price ($)
0.05
0.05
0.05
0.05

Dividend
yield
-
-
-
-

Fair value
per
option at
grant
date ($)
0.017
0.017
0.017
0.019

12 Interests in other entities

(a) Material subsidiaries

The group’s principal subsidiaries at 30 June 2018 are set out below. Unless otherwise stated, they have share
capital consisting solely of ordinary shares that are held directly by the group, and the proportion of ownership
interests held equals the voting rights held by the group. The country of incorporation or registration is also their
principal place of business.

Name of entity

Place of
business/
country of
incorporation

Ownership interest held
by the group

West Wits Mining SA
(Pty) Ltd

South Africa

West Wits MLI (Pty) Ltd South Africa
Mining & Mineral
Reclamation Services
(Pty) Ltd
West Wits Monarch
(Pty) Ltd
NuGold Company Ltd
(Hong Kong)

South Africa

South Africa

Hong Kong

PT. NuGold Indonesia
PT. Madinah
Qurrata'ain

Indonesia

Indonesia

2018
%

90.0

74.0

74.0

100.0

100.0

100.0

64.0

2017
%

90.0

74.0

74.0

100.0

100.0

100.0

64.0

Ownership interest held
by non-controlling
interests
2018
%

2017
%

Principal
activities

10.0

26.0

Mining &
Exploration
Mining &
Exploration

10.0

26.0

26.0

26.0

-

-

-

-

-

-

36.0

36.0

Mining &
Exploration
Mining &
Exploration
Mining &
Exploration
Mining &
Exploration
Mining &
Exploration

(i) Significant restrictions
Cash held by all South Africa subsidiaries is subject to exchange control regulations governed by the South
African Reserve Bank (SARB). Ongoing approval by SARB is crucial to the transfer of cash funds into and out of
South Africa. The cash and cash equivalents balance held in South Africa is AUD325,612 (2017: AUD111,175).

45

West Wits Mining Limited
Notes to the consolidated financial statements
30 June 2018
(continued)

12 Interests in other entities (continued)

(b) Non-controlling interests (NCI)

Set out below is summarised financial information for each subsidiary that has non-controlling interests that are
material to the group. The amounts disclosed for each subsidiary are before inter-company eliminations.

Summarised balance sheet

Current assets
Current liabilities
Current net assets

Non-current assets
Non-current liabilities
Non-current net assets

Net assets

Accumulated NCI

Summarised statement of comprehensive income

Profit for the period
Other comprehensive income
Total comprehensive income

Profit/(loss) allocated to NCI
< blank header row >

Summarised cash flows

South Africa

Indonesia

30 June
2018
$'000

30 June
2017
$'000

30 June
2018
$'000

637
771
(134)

7,579
-
7,579

327
310
17

7,868
5,399
2,469

16
1,844
(1,828)

5,126
18
5,108

30 June
2017
$'000

118
1,519
(1,401)

9,172
6,445
2,727

7,445

2,486

3,280

1,326

1,125

990

(350)

(50)

South Africa

Indonesia

30 June
2018
$'000

30 June
2017
$'000

30 June
2018
$'000

30 June
2017
$'000

(146)
(305)
(451)

(68)

19
-
19

56

(190)
(263)
(453)

(182)

(191)
(64)
(255)

(38)

South Africa

Indonesia

30 June
2018
$'000

30 June
2017
$'000

30 June
2018
$'000

30 June
2017
$'000

Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Net increases/(decrease) in cash and cash equivalents

901
(596)
-
305

463
(379)
-
84

(115)
-
39
(76)

(166)
159
-
(7)

(c) Transactions with non-controlling interests

There have been no transactions with non-controlling interests during the year 2018 (2017: nil).

13 Commitments

The CFO Solution provides Accounting, Company Secretarial and Administrative services at a rate of $10,000
per month plus GST. This commitment may be terminated with 3 months' notice from either party. This
agreement has a 12-month rolling term until termination notice is communicated from either party.

46

West Wits Mining Limited
Notes to the consolidated financial statements
30 June 2018
(continued)

14 Contingent liabilities and contingent assets

(a) Contingent liabilities

The group had contingent liabilities at 30 June 2017 in respect of the Dead Rent liability in Indonesia.

In 2012 the Company’s Indonesian subsidiary PTMQ, submitted applications for Clean and Clear title on IUP’s to
the Indonesian Government. To date, the Clean and Clear title has not been granted.

As part of the administrative grant process, the Company is required to pay Dead Rent on all IUP’s held. The
Company is of the opinion that a Dead Rent liability exist when:

• Clean and Clear is granted on the IUP’s
• On the actual titles granted
• Only on the calculated area confirmed
• From the point of time title is granted
• At a rate appropriate for the period

At 30 June 2017 there was no clarity on the quantification of the variables to which a liability could be reliably
measured. Also, if for some reason the Government denies the Company’s grant of title, no Dead Rent would be
payable.

Due to the above factors, the Company is of the opinion that it could not reliability measure the extent of the
actual liability for Dead Rent and as such a Contingent liability existed.
During the process of
assessment
23,595,400,656 or AUD 2,308,238 existed as at 30 June 2017.

the 2017 Audit, the Company’s Indonesian auditors disagreed with the Company’s
IDR

that a Contingent Liability exists. They were of

the opinion that a current

liability of

During the year ended 30 June 2018, management has received documentation and advice from local authorities
which indicated the dead rent liability to be approximately $250,000. This amount was recognised as accrued
liability as at 30 June 2018, and capitalised under exploration expenditure for the Derewo River Gold Project.

Subsequent to the recognition of this liability, as at 30 June 2018 other than the obligation to issue equity as
disclosed in Note 9(a)(b), the group had no contingent liabilities.

(b) Contingent assets

The group had no contingent assets at 30 June 2018.

47

West Wits Mining Limited
Notes to the consolidated financial statements
30 June 2018
(continued)

15 Cash flow information

(a) Reconciliation of loss after income tax to net cash inflow from operating activities

Loss for the year
Adjustment for

Depreciation and amortisation
Loss borne by parent
Share-based payments
Net gain on sale of non-current assets
Net exchange differences

Change in operating assets and liabilities:

(Increase) decrease in accounts receivable
Decrease in other current assets
Increase in accounts payable
Decrease in otherliabilities

Net cash inflow (outflow) from operating activities

16 Parent entity financial information

(a) Summary financial information

Consolidated entity

30 June
2018
$'000

30 June
2017
$'000

(1,390)

(659)

10
-
655
-
40

(106)
17
250
6
(518)

20
(15)
-
(11)
64

38
8
609
(1)
52

The individual financial statements for the parent entity show the following aggregate amounts:

Balance sheet
Current assets
Non-current assets
Total assets
Current liabilities
Total liabilities

Shareholders' equity
Issued capital
Reserves

Share-based payments

Retained earnings

Profit or loss for the year
Total comprehensive income

(b) Guarantees entered into by the parent entity

30 June
2018
$'000

905
21,147
22,052
28
28
(22,024)

30 June
2017
$'000

93
17,386
17,479
589
589
(16,891)

36,089

31,251

2,005
(16,184)

1,286
(15,648)

21,910

16,890

(711)
(711)

(392)
(392)

West Wits Mining Ltd has not entered into any guarantees, in the current or previous financial year, in relation to
the debts of its subsidiaries (2017: Nil).

48

West Wits Mining Limited
Notes to the consolidated financial statements
30 June 2018
(continued)

16 Parent entity financial information (continued)

(c) Contingent liabilities of the parent entity

The parent entity did not have any contingent liabilities as at 30 June 2018 or 30 June 2017. For information
about guarantees given by the parent entity, please see above.

(d) Contractual commitments for the acquisition of property, plant or equipment

At 30 June 2018, West Wits Mining Ltd had not entered into any contractual commitments for the acquisition of
property, plant and equipment (2017: nil).

17 Events occurring after the reporting period

No matter or circumstance has occurred subsequent to period end that has significantly affected, or may
significantly affect, the operations of the group, the results of those operations or the state of affairs of the group
or economic entity in subsequent financial years.

18 Capital management

The economic entity's policy is to maintain a strong and flexible capital base to maintain investor, creditor and
market confidence and to sustain future development of the business. The board monitors the return on capital,
which the economic entity defines as total shareholders’ equity attributable to members of West Wits Mining
Limited divided by the quantity of shares on issue.

The economic entity is not subject to externally imposed capital requirements.

19 Financial risk management

The economic entity's activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk.
Management have established risk management policies to identify and analyse the risks faced by the company
and the group, to set appropriate risk limits and controls, and to monitor risk and adherence to limits. Risk
management policies and systems are reviewed regularly to reflect changes in market conditions and the
economic entity's activities.

Risk management is overseen by the Audit, Risk and Compliance Committee.

(a) Market risk

(i) Foreign exchange risk
The economic entity is exposed to currency risk on sales and purchases that are denominated in a currency
other than the respective functional currency of each company within the group.

The economic entity also has exposure to foreign exchange risk in the currency cash reserves it holds to meet
subsidiary loan requirements. This is kept to an acceptable level by buying foreign currency at spot rates only to
fund short term cash requirements.

The economic entity's exposure to foreign exchange risk has not changed from the previous year. The economic
entity does not make use of derivative financial instruments to hedge foreign exchange risk.

The carrying amount of the economic entity's foreign currency denominated monetary assets and monetary
liabilities at the reporting date is as follows:

Assets
Liabilities
Total exposure

30 June 2018

ZAR
'000

IDR
'000

80,536
(6,678)
73,858

101,314,735
(19,661,409)
81,653,326

30 June 2017

ZAR
'000

82,154
(6,749)
75,405

IDR
'000

97,567,807
(15,650,789)
81,917,018

49

West Wits Mining Limited
Notes to the consolidated financial statements
30 June 2018
(continued)

19 Financial risk management (continued)

(a) Market risk (continued)

The following significant exchange rates applied during the year:

Currency

Average Rate
2017

2018

30 June spot rate
2017
2018

.
ZAR
IDR
Sensitivity
The economic entity is exposed to the South African Rand (ZAR) and Indonesian Rupiah (IDR). The average
annual movement in the AUD/ZAR and AUD/IDR exchange rate over the last 5 years was 3% for ZAR and 4%
for IDR (2017: 4% for ZAR and 3% for IDR) based on the year-end spot rates. A 3% strengthening of the ZAR
and a 4% strengthening of the IDR against the AUD at 30 June would have increased/(deceased) equity and loss
by the amounts show below. This analysis assumes that all other variables, in particular interest rates, remain
consistent. The analysis is performed on the same basis for 2017.

10.0255
10,222.91

10.1620
10,610.74

9.9203
10,562.31

10.2473
9,980.72

Consolidated entity

Impact on post-tax profit

Impact on other components of
equity

Sensitivity result
The effect on equity is to the Foreign Currency Reserve and Accumulated Losses.

(25)

(11)

2018
$'000

2017
$'000

2018
$'000

494

2017
$'000

585

(ii) Price risk
Exposure
The Group is exposed to the risk of fluctuations in prevailing market commodity prices on gold. The Group’s has
not established a formal policy to manage this risk. Management maintain a tight control over the production
costs and work closely with its key contractors to ensure that any fluctuation in the gold price is reflected in the
production costs.

(b) Credit risk

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss
to the economic entity.

Surplus cash is invested with financial
exposure to any one counter party is limited.

institutions of appropriate credit worthiness and the amount of credit

The economic entity generally has no substantial exposure to credit risk as it's trade receivables predominantly
relate to VAT refunds from the South African Revenue Service. The economic entity's maximum exposure to
credit risk at the end of the reporting period is set out in the table below. The carrying amount of the financial
assets represents the maximum credit risk exposure.

Cash and cash equivalents
Trade and other receivables

Consolidated entity

30 June
2018
$'000

1,209
346
1,555

30 June
2017
$'000

165
240
405

50

West Wits Mining Limited
Notes to the consolidated financial statements
30 June 2018
(continued)

19 Financial risk management (continued)

(b) Credit risk (continued)

Trade and other receivables are further detailed as follows:

Year

2018
2017

30 days
$000
121
24

Trade receivables
90 days
60 days
$000
$000
55
122
-
70

90+ days
$000
39
50

Other
receivables

$000
9
96

Total

$000
346
240

Outstanding receivables have not been impaired as West Wits Limited management believe that the receivables
are recoverable.

(c) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient assets to meet liabilities as they fall due.

The economic entity is exposed to liquidity risk via the quantity and type of financial assets and liabilities it holds.
The board ensures that the economic entity can meet its financial obligations as they fall due by maintaining
sufficient reserves of cash, continuously monitoring forecast and actual cash flows, matching the maturity profiles
of financial assets and liabilities, and identifying when they need to raise additional funding from the equity
markets.

The economic entity’s exposure to liquidity risk has remained unchanged from the previous year.

(i) Maturities of financial instruments

Contractual maturities of financial liabilities

At 30 June 2018

Financial assets - cash flows realisable
Cash and cash equivalents
Trade and other receivables

Financial liabilities due to payment
Trade and other payables
Loans and other financial liabilities

Net inflow/(outflow) on financial instruments

Fair value

Due
within 1
year

$'000

Due
within 1
to 5 years
$'000

Total
contractual
cash
flows

Over 5
years

$'000

$'000

Carrying
amount
(assets)/
liabilities
$'000

1,209
346
1,555

(2,643)
-
(2,643)

(1,088)

-
-
-

-
(20)
(20)

(20)

-
-
-

-
-
-

-

1,209
346
1,555

1,209
346
1,555

(2,643)
(20)
(2,663)

(2,643)
(20)
(2,663)

(1,108)

(1,108)

The fair value of financial assets and liabilities equals to the carrying amounts shown in the statement of financial
position due to the short-term nature of those financial assets and liabilities.

51

West Wits Mining Limited
Directors' declaration
30 June 2018

In the Directors' opinion:

(a)

the financial statements and notes set out on pages 24 to 51 are in accordance with the Corporations Act
2001, including:

(i)

(ii)

complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements, and

give a true and fair view of the financial position as at 30 June 2018 and of the performance for
the year ended on that date of the company and the economic entity; and

(iii)

comply with International Financial Reporting Standards as disclosed in Note 1

(b)

the Chairman and Chief Finance Officer have each declared that:

(i)

(ii)

the financial records of the company for the financial year have been properly maintained in
accordance with section 286 of the Corporations Act 2001;

the financial statements and notes for the financial year comply with the Accounting Standards;
and

(iii)

the financial statements and notes for the financial year give a true and fair view.

(c)

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

This declaration is made in accordance with a resolution of the Board of Directors.

Mr Michael Quinert
Executive Chairman
Melbourne
27 September 2018

52

West Wits Mining Limited 
Independent auditor’s report to members  

Report on the Audit of the Financial Report 

Opinion 

We have audited the financial report West Witts Mining Limited. (the Company and its 
controlled entities (the Group)), which comprises the consolidated statement of financial 
position as at 30 June 2018, the consolidated statement of comprehensive income, the 
consolidated statement of changes in equity and the consolidated statement of cash flows 
for the year then ended, and notes to the financial statements, including a summary of 
significant accounting policies and other explanatory information, and the directors’ 
declaration. 

In our opinion, the accompanying financial report of the Group, is in accordance with the 
Corporations Act 2001, including:  
(i) giving a true and fair view of the Group’s financial position as at 30 June 2018 and of its 
financial performance for the year then ended; and  
(ii) complying with Australian Accounting Standards and the Corporations Regulations 
2001.  

Basis for Opinion  

We conducted our audit in accordance with Australian Auditing Standards. Our 
responsibilities under those standards are further described in the Auditor’s 
Responsibilities for the Audit of the Financial Report section of our report. We are 
independent of the Group in accordance with the auditor independence requirements of 
the Corporations Act 2001 and the ethical requirements of the Accounting Professional 
and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the 
Code) that are relevant to our audit of the financial report in Australia. We have also 
fulfilled our other ethical responsibilities in accordance with the Code.  

We confirm that the independence declaration required by the Corporations Act 2001, has 
been provided on the date of this report. 

We believe that the audit evidence we have obtained is sufficient and appropriate to 
provide a basis for our opinion. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Material Uncertainty Related to Going Concern  

We draw attention to Note 1 in the financial report, which indicates that the Group incurred a net 
loss of $1,390,000 during the year ended 30 June 2018 and, as of that date, the Group’s current 
liabilities exceeded its current assets by $1,085,000. As stated in Note 1, these events or 
conditions, along with other matters as set forth in Note 1, indicate that a material uncertainty 
exists that may cast significant doubt on the Company’s ability to continue as a going concern. 
Our opinion is not modified in respect of this matter. 

Other Matter 

The audit report for 30 June 2017 was qualified on a going concern basis due to the consolidated 
entity’s non-recognition of a provision of $2,308,238 for Dead Rent on all IUP’s held in relation to 
mining permits held in Indonesia. This situation indicated the existence of a material uncertainty that 
cast significant doubt on the consolidated entity’s ability to continue as a going concern. During the 
current year, the consolidated entity has been able to quantify their Dead Rent liability to a value of 
approximately $250,000 and has recorded this as a liability. 

Key Audit Matters  

Key audit matters are those matters that, in our professional judgement, were of most significance in 
our audit of the financial report of the current period. These matters were addressed in the context of 
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide 
a separate opinion on these matters.  

CARRYING VALUE OF EXPLORATION AND EVAUATION ASSETS 

Area of focus 
Refer also to notes 1 and 9 
The Group has incurred exploration costs for 
their gold mining projects in South Africa and 
Indonesia over a number of years. There is a 
risk that the accounting criteria associated with 
the capitalisation of exploration and evaluation 
expenditure may no longer be appropriate. 

An impairment review is only required if an 
impairment trigger is identified.  
Due to the nature of the gold industry, indicators 
of impairment could include: 

—  Changes to exploration plans; 

—  Loss of rights to tenements; 

—  Changes to reserve estimates; 

—  Costs of extraction and production; or 

—  Exchange rate factors. 

How our audit addressed it 

Our audit procedures included: 

—  A review of the directors’ assessment of the 
criteria for the capitalisation of exploration 
expenditure and evaluation of whether there 
are any indicators for impairment to 
capitalised cost; 

—  Understanding and vouching the underlying 
contractual entitlement to explore and 
evaluate each area of interest, including an 
evaluation of the requirement to renew that 
tenement at its expiry; 

—  Examining project spend per each area of 
interest and comparing this spend to the 
minimum expenditure requirements set out 
in the underlying tenement expenditure 
plan; and 

—  Examining project spend to each area of 

interest to ensure that it is directly 
attributable to that area of interest. 

We also assessed the adequacy of the Group’s 
disclosures in respect of exploration costs. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ACQUISITION OF EXPLORATION AND EVALUATION ASSETS 

How our audit addressed it 

Our audit procedures included: 

—  Examining the legal documentation 
associated with the purchases to 
understand the key terms and conditions of 
the acquisitions; and 

—  Examining the treatment of the initial 

purchase consideration and the deferred 
consideration for each acquisition was in 
accordance with the requirements of 
Australian Accounting Standards. 

We also assessed the adequacy of the Group’s 
disclosures in respect of the acquisitions in the 
financial report. 

Area of focus 
Refer also to notes 1 and 9 

On 25 October 2017, the Group completed the 
acquisition of Northern Reserves Pty Ltd 
(Northern) for an initial consideration of $1.1 
million funded by way of ordinary shares and 
share options.  Subsequent issues of shares will 
be granted on competition of certain milestones 
per the term of the purchase agreement. 

On 30 January 2018 the Group completed the 
acquisition of the Tambina Gold Project for an 
initial consideration of $1.84 made up of 
ordinary shares and cash payments.  
Subsequent issues of shares will be granted on 
competition of certain milestones per the term of 
the purchase agreement. 

The Acquisitions have been treated by 
management as asset acquisitions. 

Determining the appropriate accounting 
treatment for the transactions was complex and 
required significant judgements and estimates 
by the Group. 

Other Information  

The directors are responsible for the other information. The other information comprises the 
information included in the Group’s annual report for the year ended 30 June 2018 but does not 
include the financial report and the auditor’s report thereon. 

Our opinion on the financial report does not cover the other information and accordingly we do not 
express any form of assurance conclusion thereon.  

In connection with our audit of the financial report, our responsibility is to read the other information 
and, in doing so, consider whether the other information is materially inconsistent with the financial 
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.  

If, based on the work we have performed, we conclude that there is a material misstatement of this 
other information, we are required to report that fact. We have nothing to report in this regard. 

 
 
 
 
 
 
 
 
 
  
 
 
 
Responsibilities of the Directors for the Financial Report 

The directors of the Company are responsible for the preparation of the financial report that gives a 
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 
and for such internal control as the directors determine is necessary to enable the preparation of the 
financial report that gives a true and fair view and is free from material misstatement, whether due to 
fraud or error.  

In preparing the financial report, the directors are responsible for assessing the ability of the Group to 
continue as a going concern, disclosing, as applicable, matters related to going concern and using the 
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease 
operations, or has no realistic alternative but to do so. 

Auditor’s Responsibilities for the Audit of the Financial Report  

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole 
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report 
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee 
that an audit conducted in accordance with Australian Auditing Standards will always detect a material 
misstatement when it exists. Misstatements can arise from fraud or error and are considered material 
if, individually or in the aggregate, they could reasonably be expected to influence the economic 
decisions of users taken on the basis of these financial statements. 

A further description of our responsibilities for the audit of these financial statements is located at the 
Auditing and Assurance Standards Board website at: 

http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf  

This description forms part of our independent auditor’s report. 

Report on the Remuneration Report 

Opinion on the Remuneration Report  

We have audited the Remuneration Report included in the directors’ report for the year ended 30 
June 2018.  

In our opinion, the Remuneration Report of West Wits Mining Limited, for the year ended 30 June 
2018, complies with section 300A of the Corporations Act 2001. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Responsibilities 

The directors of the Company are responsible for the preparation and presentation of the 
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our 
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in 
accordance with Australian Auditing Standards. 

William Buck Audit (Vic) Pty Ltd 
ABN 59 116 151 136 

J. C. Luckins 
Director 

Melbourne, 27 September 2018 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
West Wits Mining Limited
Shareholder information
30 June 2018

Class of equity security
Ordinary shares

No. of
Holders

Total Units

37
34
119
315
481
986

3,258
127,121
1,145,020
15,484,851
701,087,429
717,847,679

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

A. Distribution of ordinary fully paid shares

All ordinary shares carry one vote per share.

Holding

1 - 1000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over

There were 334 holders of less than a marketable parcel of ordinary shares.

B. Ordinary fully paid shareholders

Top Twenty Ordinary fully paid shareholders
The names of the twenty largest holders of quoted equity securities are listed below:

Name

DRD GOLD LTD
STRAT PLAN PL
KASTIN PL
J P MORGAN NOM AUST LTD
DEBT MGNT ASIA CORP
CITICORP NOM PL
EGAVAS CONS SVCS PL
REALSTAR FINANCE PL
O'MEARA DENIS WILLIAM
JOHN WARDMAN & ASSOC PL
GREGORACH PL
SUNSET CAP MGNT PL
NEALE TREVOR IAN
CCI S/F PL
CELTIC CAP PL
I E PROPS PL
SLEIGH CHRISTOPHER N
RICHARDSON ANNE MAREE
O'MEARA DAMON PATRICK
MOSMAN GATE PL

Ordinary shares

Number held

%

47,812,500
22,524,352
18,925,370
14,691,069
14,500,000
13,824,638
13,750,246
13,312,108
11,509,092
10,700,000
10,184,132
10,000,000
9,662,021
9,051,201
8,884,902
8,162,390
7,882,352
7,672,727
7,672,727
7,672,727
268,394,554

6.66
3.14
2.64
2.05
2.02
1.93
1.92
1.85
1.60
1.49
1.42
1.39
1.35
1.26
1.24
1.14
1.10
1.07
1.07
1.07
37.41

58

West Wits Mining Limited
Shareholder information
30 June 2018
(continued)

B. Ordinary fully paid shareholders (continued)

Unlisted Options

Class
Unlisted options issued on 4 November 2015
Unlisted options issued on 15 November 2017
Unlisted options issued on 4 December 2017
Unlisted options issued on 4 December 2017
Unlisted options issued on 4 December 2017
Unlisted options issued on 30 January 2018

C. Substantial holders

Quantity
2,000,000
10,000,000
10,000,000
12,000,000
3,000,000
17,000,000

Exercise
Price
$0.03
$0.05
$0.05
$0.05
$0.05
$0.05

Expiry Date
4 November 2018
14 November 2020
30 November 2020
3 December 2022
3 December 2022
29 January 2023

Number of
Holders
1
8
1
1
1
2

Substantial holders in the company are set out below:

Shareholders

DRD GOLD LTD

Shareholder enquiries

Number
held

%

47,812,500

6.66%

Shareholders with enquiries about their shareholdings should contact the share registry:

Security Transfer Registrar
770 Canning Highway, Applecross WA 6153
Phone: +61 8 9315 0933
Fax: +61 8 9315 2233
Email: registrar@securitytransfer.com.au

Change of address, change of name, consolidation of shareholdings

Shareholders should contact the Share Registry to obtain details of the procedure required for any of these
changes.

Annual report

Shareholders do not automatically receive a hard copy of the Company’s Annual Report unless they notify the
Share Registry in writing. An electronic copy of the Annual Report can be viewed on the company’s website
www.westwitsmining.com.

Tax file numbers

It is important that Australian resident Shareholders, including children, have their tax file number or exemption
details noted by the Share Registry.

CHESS (Clearing House Electronic Subregister System)

Shareholders wishing to move to uncertified holdings under the Australian Securities Exchange CHESS system
should contact their stockbroker.

Uncertified share register

Shareholding statements are issued at the end of each month that there is a transaction that alters the balance of
an individual/company’s holding.

Listing rule 4.10.19 disclosure

The company has used the cash and assets in a form readily convertible to cash that it had at the time of
admission in a way consistent with its business objectives.

59

West Wits Mining Limited
Corporate directory

Directors

Secretary

Principal registered office in Australia

Share and debenture register

Auditor

Solicitors

Bankers

Website

Mr Michael Quinert
Executive Chairman

Mr Vincent Savage
Executive Director

Mr Daniel Pretorius
Non-Executive Director

Mr Hulme Scholes
Non-Executive Director

Dr Andrew Tunks (appointed 13 March 2018)
Executive Director

Mr Phillip Hains

Level 3, 62 Lygon Street
Carlton VIC 3053
Australia

Security Transfer Registrars
770 Canning Highway
Applecross WA 6153
+61 8 9315 0933

William Buck
Level 20, 181 William Street
Melbourne VIC 3000

Quinert Rodda & Associates
Suite 1, Level 6, 50 Queen Street
Melbourne VIC 3000

National Australia Bank
Level 2, 330 Collins Street
Melbourne VIC 3000

http://www.westwitsmining.com/

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