2016
ANNUAL REPORT
CONTENTS
OVERVIEW AND PERFORMANCE
4 Group Performance Summary
5 Chairman’s Statement
STRATEGIC REPORT AND INVESTMENTS
6
Investment Manager's Report
14
ICM Investment Philosophy
15
Investment Manager and Team
16 Geographical and Sector Split of Investments
17 Five Largest Holdings
18 Review of the Five Largest Holdings
GOVERNANCE
21 Directors
22 Report of the Directors
27 Corporate Governance Statement
FINANCIAL STATEMENTS
28
Independent Auditor’s Report
30 Auditor’s Independence Declaration
31 Financial Statements
35 Notes to the Financial Statements
OTHER
58 Additional ASX Information
60 Company Information
Image Acknowledgement – Petroleum Geo-Services Media Gallery
– image for Seacrest on page 20
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Annual Report for the year to 30 June 2016Zeta Resources Limited
ZETA RESOURCES
LIMITED
OBJECTIVE
Zeta Resources Limited’s investment
aim is to maximise total returns for
shareholders by identifying and
investing in resource assets and
companies where the underlying
value is not reflected in the market
price. The company invests in a range
of resources entities, including those
focused on oil & gas, gold and base
metals exploration and production.
GEOGRAPHICAL INVESTMENT EXPOSURE
NATURE OF THE COMPANY
Zeta Resources Limited ("Zeta") is a closed-end investment company, whose ordinary shares are listed on the Australian
Stock Exchange (“ASX”). The business of the company consists of investing the pooled funds of its shareholders in
accordance with its investment objective and policy, with the aim of generating a return for shareholders with an
acceptable level of risk. The company has borrowings (“gearing”), the proceeds from which can also be invested with
the aim of enhancing returns to shareholders. This gearing increases the potential risk to shareholders should the
value of the investments fall.
The company has contracted with an external investment manager, ICM Limited (the “Investment Manager” or “ICM”),
to manage its investments and undertake the company secretarial function. The company’s general administration is
undertaken by ICM Corporate Services (Pty) Ltd. The company has a board of non-executive directors who oversee
and monitor the activities of the Investment Manager and the other service providers and ensure that the investment
policy is adhered to.
FINANCIAL CALENDAR
FINANCIAL CALENDAR
Year End
30 June
Annual General Meeting
29 November 2016
Half Year
31 December
Half Year December 2016 Announcement
February 2017
2
3
FORWARD–LOOKING STATEMENTS
This annual report may contain “forward-looking statements” with respect to the financial condition, results of operations and business of the company.
Such statements involve risk and uncertainty because they relate to future events and circumstances that could cause actual results to differ materially
from those expressed or implied by forward-looking statements. The forward-looking statements are based on the directors’ current view and on
information known to them at the date of this report. Nothing in this publication should be construed as a profit forecast.
Potential investors are reminded that the value of investments and the income from them may go down as well as up and investors may not receive
back the full amount invested.
GROUP PERFORMANCE SUMMARY
CHAIRMAN’S STATEMENT
Total return(1) (annual) (%)
Annual compound total return(2) (since inception) (%)
Net tangible asset per ordinary share(3) (Australian cents)
Ordinary share price (Australian cents)
Discount (%)
Loss per ordinary share(4) (US dollars)
Dividends per ordinary share
– Interim (Australian cents)
– Final (Australian cents)
Total (Australian cents)
Equity holders' funds (US$m)
Gross assets(5) (US$m)
Cash (US$m)
Other debt (US$m)
Net debt (US$m)
Net debt gearing on gross assets (%)
Management and administration fees and other expenses (US$m)
– excluding performance fee
– including performance fee
Ongoing charges figure(6)
– excluding performance fee (%)
– including performance fee (%)
30 JUNE
2016
30 JUNE
2015
CHANGE %
2016/15
(27.9)
(23.2)
30.8
18.0
(41.6)
(0.05)
Nil
Nil
Nil
42.8
82.4
0.2
(39.9)
(39.7)
48.2
1.0
1.0
2.1
2.1
(55.3)
(20.8)
42.7
40.0
(6.3)
(0.57)
Nil
Nil
Nil
31.1
70.7
0.2
(39.8)
(39.6)
56.0
1.6
1.6
1.5
1.5
(49.6)
11.3
(27.9)
(55.0)
560.3
(91.2)
n/a
n/a
n/a
37.6
16.5
0.0
0.3
0.3
(14.0)
(37.5)
(37.5)
40.7
40.7
(1) Total return is calculated based on NTA per share return plus dividends reinvested from the payment date.
(2) Annual compound total return based on NTA per ordinary share return, plus dividends reinvested from the payment date, since NTA of A$0.688 at launch on
12 June 2013.
(3) The NTA is calculated including the 86,461,440 December 2016 options as they are considered to be in-substance issued shares.
(4) Earnings per share is based on the weighted average number of shares in issue during the year. An adjustment has been made for the 86,461,440 options issued
during the year as they are considered to be in-substance issued shares.
(5) Gross assets less liabilities excluding loans.
(6) Expressed as a percentage of average net assets, ongoing charges comprise all operational, recurring costs, including directors fees, that are payable by the
company, or suffered within underlying investee funds, in the absence of any purchases or sales of investments.
n/a = not applicable
It has been pleasing to note a turn in the resources sector in the last year. The bear market
has continued for oil & gas and base metals, however, gold has seen a marked lift in price and
sentiment that has driven a surge in the value of gold equities. This shift in gold is indicative
of the change we also expect to see when the price of other commodities begins to move
up, and it provides continued encouragement for Zeta’s investment strategy.
Zeta’s results have reflected this market. On the one hand we have been disappointed at
the decline in value in the oil & gas and base metals investments, but on the other hand
we have been pleased by the significant appreciation of the gold investment in Resolute
Mining Limited.
We have continued to work hard with our investee companies in oil & gas and nickel and
their positioning in the current price environment. In oil & gas, this has meant a focus on
cost reductions. Our underlying commodity exposure has increased with the continued
increase in reserves at New Zealand Oil & Gas Limited’s largest asset, Kupe, and a slight
increase in the Pan Pacific Petroleum NL investment. In nickel, Zeta supported Panoramic
Resources Limited’s decision to place its two mines, Savannah and Lanfranchi, on care and
maintenance and preserve and grow its resource base rather than continue to produce
nickel uneconomically. We also increased our investment in that company as an underwriter
of its entitlement raising. In all these companies Zeta has board representation, and has
taken an active role throughout the year in governance and strategy to ensure the best
result possible for all shareholders of these companies.
Zeta has continued to expand its base in out-of-favour commodities and has recently
made small investments in some copper companies. The company will be actively looking
to increase its investment in this sector, believing the long-term outlook to be sound for this
important industrial commodity.
Zeta will continue to be active in the equity marketplace, increasing its shareholdings in
companies where the fundamentals are strong but the shares can be acquired at prices
well below what we believe is their long term worth. The turnaround in the gold sector has
shown the benefits of Zeta’s investment strategy.
We are grateful for the ongoing support of our majority shareholder, UIL Limited, and the
financial assistance it is providing. During the year we prudently converted a part of their
debt to equity through the issue of new Zeta shares and options.
We remain committed to being vigilant in pursuit of long-term value for our shareholders,
being active in the governance and direction of existing investments and our search for
value in new investment opportunities.
Peter Sullivan
Chairman
12 September 2016
Zeta has continued
to expand its base
in out-of-favour
commodities
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Annual Report for the year to 30 June 2016Annual Report for the year to 30 June 2016Zeta Resources LimitedZeta Resources Limited
INVESTMENT MANAGER'S REPORT
The year under review should perhaps be looked at in two halves. In the six months to December 2015, commodity
markets in general continued the decline seen in the previous year, in particular oil and nickel, while gold settled into a
COMMODITY MARKETS
As noted, the year under review saw more falls in the price of oil and nickel, while gold resumed its climb upwards. This
relatively stable trading pattern. In the second half of the financial year, the six months to June 2016, oil staged a modest
year we have added copper to Zeta’s portfolio.
recovery, while nickel stabilised, and gold resumed its climb. The first half of the financial year under review was notable
for continuing the decline in the price of Australian dollars against US dollars that occurred in the previous year, thus
Oil & Gas
boosting the profitability of Australian miners whose export prices were denominated in US dollars. In the second half of
the year under review, the Australian dollar strengthened against the US dollar, thus reversing some of these earlier gains.
The mixed picture for commodities has been reflected in a mixed result for Zeta. Overall, the share prices of Zeta’s
listed investments have fallen during the year under review, with the notable exception of the company’s investment
in gold companies. As Zeta employs debt capital, the impact of falling resources company share prices is leveraged in
its impact on Zeta’s net assets. During the year under review, Zeta’s net assets per share fell from A$0.427 to A$0.308,
a fall of 27.9%. For comparison, the S&P/ASX 200 Energy index fell 24.9% over the same period, and the S&P/ASX 300
Metals & Mining index, which includes gold mining stocks, fell only 9.0%. Zeta’s share price fell at a greater rate than
the fall in Zeta’s net assets. The share price fell 55.0% to A$0.18. The discount to net assets thus grew from 6.3% at the
end of June 2015, to 41.6% at the end of June 2016.
TOTAL RETURN COMPARATIVE PERFORMANCE*
since inception on 12 June 2013 to 30 June 2016
180.0
160.0
140.0
120.0
100.0
80.0
60.0
40.0
20.0
Jun 13
Oct 13
Feb 14
Jun 14
Oct 14
Feb 15
Jun 15
Oct 15
Feb 16
Jun 16
Zeta Share Price
S&P/ASX 200 Energy
S&P/ASX 300 Metals & Mining
BRENT CRUDE OIL PRICE
from June 2015 to July 2016
80
60
40
US$/bbl
20
Jun 15
Sep 15
Dec 15
Mar 16
Jun 16
80
60
40
20
A$/bbl
US$/bbl
A$/bbl
Source: US Energy Information Administration
At the start of the year under review, the Brent Crude Oil price was US$60/bbl, having declined significantly during the
previous twelve months. The year under review saw a similar pattern to the previous year, with a sustained decline
until around January, followed by a recovery until May before a resumption in the decline.
The range of US$50-US$60/bbl had been seen previously as a significant milestone, as it had been used as a rule of
thumb to indicate the price at which the average US oil firm needed to produce oil profitably utilising fracking to unlock
*AUD, rebased to 100 as at 12 June 2013. Zeta NTA adjusted for February 2014 entitlement issue
tight oil from shale. However, this year saw the price of oil fall well below that.
Source: ICM and S&P Dow Jones Indices
As a result, oil exploration globally has been curtailed, and the strategy among oil firms has been to gradually cut costs
– more so as the price of oil had continued to fall. For those firms in the enviable position of having cash, it has become
cheaper to buy existing oil production assets, rather than take an unnecessary risk on expensive drilling, particularly
if the drilling is offshore exploration and especially in frontier basins.
The sustained downturn in oil prices has impacted the business model of Zeta’s investment in Seacrest LP ("Seacrest"),
whose business model was based on acquiring stakes in a wide range of exploration permits globally. However, in the
case of Zeta’s investments in New Zealand Oil & Gas Limited ("NZOG") and Pan Pacific Petroleum NL ("PPP"), both of
those companies have had existing production that has been relatively profitable throughout the year, together with
cash on their balance sheets which is available for acquisitions.
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Annual Report for the year to 30 June 2016Annual Report for the year to 30 June 2016Zeta Resources LimitedZeta Resources Limited
INVESTMENT MANAGER'S REPORT
(continued)
Nickel
Gold
NICKEL PRICE
from June 2015 to July 2016
US$/lb
8
6
4
2
8
6
A$/lb
4
2
Jun 15
Sep 15
Dec 15
Mar 16
Jun 16
US$/lb
A$/lb
Source: LME
GOLD PRICE
from June 2015 to July 2016
US$/oz
1,800
1,700
1,600
1,500
1,400
1,300
1,200
1,100
1,000
A$/oz
1,800
1,700
1,600
1,500
1,400
1,300
1,200
1,100
1,000
Jun 15
Sep 15
Dec 15
Mar 16
Jun 16
Spot Price US$
Spot Price A$
Source: Kitco - London PM Fix
As with oil, the price of nickel continued to fall in the first half of the year under review. Some companies have elected
to continue to produce nickel at unprofitable prices. For Panoramic Resources Limited ("Panoramic"), the chief nickel
In marked contrast to oil and nickel, and in fact to most major commodities, the price of gold has continued to rise.
company in Zeta’s portfolio, the company decided to place its two operating mines in Western Australia, Savannah
Various factors have been raised to explain the persistent rise of gold, but the most common cited factor for the rise
and Lanfranchi, on to care and maintenance. The company also raised funds through an entitlement issue, in order
during the first of half of 2016 was the continued impact of central bank monetary policy and interventions leading
to strengthen the balance sheet and ensure the company had the means to wait out a prolonged period of low nickel
to negative sovereign interest rates in numerous countries, coupled with unsustainable debt levels in many countries
prices. Zeta was the principal underwriter of the issue and as a result increased its stake in Panoramic.
and anaemic world growth and inflation levels.
The outlook for nickel is coloured by the increasing production of batteries for electric vehicles and power storage such
In Australian dollar terms, Australian producers have been enjoying record high gold prices. Happily for Zeta, the
as that being undertaken by Tesla in the United States. While the headline impact of lithium ion batteries has been felt
company’s investment in Resolute Mining Limited ("Resolute") has had a stellar year, rising from A$0.30 per share at
on lithium, in many cases the usage of lithium is only 2%, while raw materials such as nickel and graphite make up a far
the end of June 2015, to A$1.275 at the end of June 2016. This rise has arisen not only due to the increase in the price
greater proportion of such batteries. Nevertheless, while the scale of production of lithium ion batteries is increasing,
of gold, but in addition due to continued exploration success at Resolute coupled with the announcement of feasibility
it is still expected to remain small relative to the overall nickel market.
plans to significantly extend the life of the company’s mine at Syama in Mali.
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Annual Report for the year to 30 June 2016Annual Report for the year to 30 June 2016Zeta Resources LimitedZeta Resources Limited INVESTMENT MANAGER'S REPORT
(continued)
Copper
COPPER LME PRICE
from June 2015 to July 2016
US$/lb
4
3
2
1
4
3
A$/lb
2
1
Jun 15
Sep 15
Dec 15
Mar 16
Jun 16
US$/lb
A$/lb
Source: Kitco - LME
Copper is one of the most important global industrial commodities, but the price of copper has been in a bear market
for the past six years. Since the scheme of arrangement between Zeta and Kumarina Resources Limited the company
has had an investment in copper exploration, but during the period under the review Zeta made small acquisitions
in two small listed copper firms. As with its other investments, Zeta is of the view that in the long run there will be
continued demand for copper, and thus investment in this commodity will bear fruit for the patient investor.
CAPITAL STRUCTURE
Zeta is a closed-end investment company, listed on the ASX, and was incorporated in Bermuda.
NTA PER SHARE VERSUS SHARE PRICE
since inception on 12 June 2013 to 30 June 2016
1.20
1.00
0.80
0.60
0.40
0.20
0.00
)
$
A
(
e
r
a
h
s
r
e
p
A
T
N
1.20
1.00
0.80
0.60
0.40
0.20
0.00
)
$
A
(
e
c
i
r
P
e
r
a
h
S
12 Jun 13
12 Dec 13
12 Jun 14
12 Dec 14
12 Jun 15
12 Dec 15
12 Jun 16
Listed
Unlisted
Kumarina
Closing Share Price
Source: ICM
FINANCIAL RESULTS
The net loss after tax for the year was US$6,974,491 against a loss of US$53,242,013 in the year ended June 2015.
The majority of the consolidated net loss is comprised of revaluations of listed investments (marked to market) as at
30 June 2016 to account for financial assets being recognised at fair value.
SIGNIFICANT INVESTMENTS
Oil & Gas
New Zealand Oil & Gas
During the year under review, NZOG moved to reduce costs and did not undertake any significant greenfield exploration.
During the year Zeta has had working capital support from its parent company, UIL Limited (“UIL”, formerly “Utilico
Instead the company focused on development of its major asset, being its 15% stake in Kupe, a gas producing field in
Investments Limited”). As of 30 June 2016, Zeta had a loan from UIL totalling US$36.2 million, drawn partly in Australian
offshore Taranaki, New Zealand. During the year, NZOG issued two increases in reserves for Kupe, one based on the
dollars and partly in US dollars.
During the year under review, Zeta converted A$8.8 million and US$12.4 million of loans from UIL into equity following
the shareholder approved issue of shares and options to UIL.
As at 30 June 2016, Zeta had gross assets of US$83.0 million (2015: US$71.1 million). Of this figure, $39.6 million (2015:
$39.0 million) was invested in the oil & gas sector; $10.4 million (2015: $21.9 million) was invested in the nickel and
copper sectors; $32.7 million (2015: $9.9 million) was invested in the gold sector; and the remaining $0.3 million (2015:
$0.3 million) was invested in other commodity-based resources investments.
developed reserves, and one on the undeveloped reserves. This long life asset is coupled with a long term take or pay
gas supply agreement that means the majority of Kupe’s revenues are tied to PPI, and above current New Zealand
spot market gas prices. Revenues from Kupe are therefore largely unaffected by recent declines in the price of oil.
Pan Pacific Petroleum
Having launched a successful bid to acquire 46.5% of PPP in the previous year, Zeta subsequently increased its stake
to 50.4% in PPP and encouraged PPP to continue to reduce its costs. PPP’s biggest oil asset is its 15% stake in Tui, an oil
producing field located in offshore Taranaki, New Zealand. Tui’s revenues have naturally been subject to the fluctuations
in the price of oil, but from a volume perspective, the successful development of Pateke-4H has meant a pleasing year
operationally. Looking forward, the company will at some time face the costs of closing the Tui well as it reaches the
end of its producing life, but the timing of this is partially dependent on the price of oil.
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Annual Report for the year to 30 June 2016Annual Report for the year to 30 June 2016Zeta Resources LimitedZeta Resources Limited
INVESTMENT MANAGER'S REPORT
(continued)
Seacrest
Seacrest is a Bermuda-based specialist oil & gas offshore seismic exploration company. Seacrest moved quickly to
Copper
Kumarina
amass a significant number of interests in joint venture licenses for offshore oil exploration, but has suffered a loss in
Kumarina Resources Pty Limited (“Kumarina”) is a 100%-owned subsidiary of Zeta. The company is focused on two
value in the wake of the significant and sustained fall in the price of oil.
Nickel
Panoramic
prospective projects in Western Australia, being the Ilgarari copper project and the Murrin Murrin copper-gold project.
The Ilgarari project contains a secondary copper oxide resource (JORC 2004) estimated to be 1,100,000 tonnes averaging
1.9% copper located around and below historical mine workings. The Murrin Murrin project is prospective for gold
and base metals in the form VMS style copper zinc mineralisation. The company’s main focus at the Murrin Murrin
Panoramic is a Western Australian mining company that owns two 100%-owned underground nickel sulphide mines,
project has been the Malcolm Challenger gold mines which hosts an Indicated Resource ( JORC 2012) of 547,000 tonnes
the Savannah Project in the East Kimberley and the Lanfranchi Project near Kambalda, Western Australia.
averaging 3.12 g/t for 54,800 ounces.
JDF Morrison
ICM Limited
Investment Manager
12 September 2016
During the year Panoramic decided to place both Savannah and Lanfranchi on care and maintenance. The company
believed it was preferable to suspend operations rather than continue to produce nickel unprofitably. However, the
company also raised money via an entitlement offer, supported by Zeta. The funds raised will secure Panoramic’s ability
to withstand a sustained period of low nickel prices, while undertaking modest exploration drilling aimed at proving
up existing resources.
Gold
Resolute
ASX-listed Resolute is a mid-cost gold producer with two mines in production, the Syama mine in Mali, and the
Ravenswood mine in northern Queensland, Australia.
Production in the year to 30 June 2016 of c. 315,000/oz of gold was down on the previous year’s production of c. 329,000/oz.
Gold ounces produced at Syama decreased by 6.8% to 209,617oz while the company focused on processing ore
stockpiles ahead of development of underground mining, while cash costs rose by 3.8% to A$830/oz. At Ravenswood
gold ounces produced rose by 1.7% to 105,552oz, largely in line with the previous year. Cash costs per ounce at
Ravenswood increased by 9.9% to A$1033/oz, in part due to the processing of larger volumes of lower grade ore.
At 30 June 2016 Resolute had cash and bullion on hand of A$102 million and total borrowings of A$27 million. The
A$15 million convertible note offering which was completed in December 2014 was repaid during the year. Net cash
inflows for the year totalled A$139 million, and the company used a significant portion of that inflow to repay debt.
During the year Resolute completed a definitive feasibility study for underground mining in Syama, with work expected to
commence on development in September 2016. Successful development of underground mining in Syama is expected
to extend the life of the mine by at least 10 years.
The company has completed a feasibility study to commence mining in Bibiani. The results were positive, and Resolute
will now work to extend drilling in order to extend the study’s projected five year mine life.
At Ravenswood, Resolute is drilling with the aim of pursuing underground mining at Buck Reef West.
Resolute has provided guidance for gold production of 300,000oz at an All-In-Sustaining-Cost of A$1,280/oz (US$934/oz)
for the year to 30 June 2017.
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Annual Report for the year to 30 June 2016Annual Report for the year to 30 June 2016Zeta Resources LimitedZeta Resources Limited ICM INVESTMENT PHILOSOPHY
INVESTMENT MANAGER AND TEAM
Long Term
Sector
Focused
Deep value
ICM is the Investment Manager of Zeta. ICM is a Bermuda based global fund manager focused on finding investments
at valuations that do not reflect their true long term value. Our investment approach is to have a deep understanding
of the business fundamentals of each investment and its environment versus its intrinsic value. We are long term
investors and see markets as a place to exchange assets.
ICM has some US$2.4 billion under management directly and has indirect involvement in over US$12 billion in a range of
mandates. ICM has 40 staff based in offices in Bermuda, Cape Town, Dublin, Hong Kong, London, Melbourne, Singapore
and Wellington.
ICM staff responsible for Zeta’s investments include:
Dugald Morrison, based in Wellington, New Zealand, is the General Manager for ICM NZ Limited. He has extensive
investment analysis experience, having worked in stockbroking, investment banking and investment management firms
in New Zealand, the United Kingdom, and the United States since 1987. Mr Morrison is a director of ASX-listed Pan
Pacific Petroleum NL and a number of unlisted companies. He is a member of the New Zealand Institute of Directors.
Duncan Saville, a director of ICM, is a chartered accountant with experience in corporate finance and asset management.
He is currently a director of a number of listed companies including New Zealand Oil & Gas Limited and is an experienced
company director. He is a Fellow of the Institute of Chartered Accountants Australia and New Zealand, Australian
Institute of Directors and the Financial Service Institute of Australia and is a member of the Singapore Institute of
Extensive
Domain
Knowledge &
Expertise
We seek out
and make
compelling
investments
Optionality
Directors.
Alasdair Younie, a director of ICM. Based in Bermuda, he is a chartered accountant with experience in corporate
finance and corporate investment. Mr Younie qualified as a chartered accountant with PricewaterhouseCoopers and
subsequently worked for six years within the corporate finance department of Arbuthnot Securities Limited in London.
Mr Younie is a director of the Ascendant Group Limited, Bermuda Commercial Bank Limited and Somers Limited and
is a member of the Institute of Chartered Accountants in England and Wales.
Synergies
Bottom Up
Approach
Investee
Relationships
Active
Investors
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Annual Report for the year to 30 June 2016Annual Report for the year to 30 June 2016Zeta Resources LimitedZeta Resources Limited GEOGRAPHICAL & SECTOR SPLIT OF INVESTMENTS
FIVE LARGEST HOLDINGS
GEOGRAPHICAL SPLIT OF INVESTMENTS*
2016
2016
2015
COMPANY (Country of principal activity)
Description
FAIR VALUE
US$000
% OF TOTAL
INVESTMENTS
COUNTRY
2016
2015
Gold exploration and mining
% of total
1
(5) Resolute Mining Limited (Australia, Mali)
29,661
35.6%
New Zealand
Australia
Mali
Other
Norway
Namibia
32.3
28.1
24.5
6.3
4.6
4.2
36.9
36.0
5.9
7.7
7.0
6.5
2
(2) New Zealand Oil & Gas Limited* (New Zealand)
17,956
21.6%
Oil & gas exploration and production
3
(4) Pan Pacific Petroleum NL* (New Zealand, Vietnam)
10,910
13.1%
Oil & gas exploration and production
4
(1) Panoramic Resources Limited (Australia)
9,523
11.4%
* Including investments held by Zeta Energy Pte. Ltd
Source: ICM
Nickel exploration and mining
5
(3) Seacrest LP - unlisted (Global)
Oil & gas offshore seismic exploration
Other investments
Total Portfolio
* Investment held by Zeta Energy Pte. Ltd.
9,030
10.8%
6,166
83,246
7.4%
100.0%
The value of the five largest holdings represents 92.6% (2015: 92.1%) of the group’s total investments. The country shown is the
location of the principal part of the company’s business. The total number of companies included in the portfolio is 18 (2015: 21).
SECTOR SPLIT OF INVESTMENTS*
SECTOR
Oil & Gas
Gold
Nickel
Cash
Copper
% of total
2016
2015
47.4
39.3
11.9
0.9
0.5
58.3
12.6
28.2
0.9
0.0
* Including investments held by Zeta Energy Pte. Ltd
Source: ICM
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Annual Report for the year to 30 June 2016Annual Report for the year to 30 June 2016Zeta Resources LimitedZeta Resources Limited
REVIEW OF THE FIVE LARGEST HOLDINGS
RESOLUTE MINING LIMITED
(AUSTRALIA, MALI)
PAN PACIFIC PETROLEUM NL
(NEW ZEALAND, VIETNAM)
www.resolute-ltd.com.au
Market Cap: US$622.6 million
Resolute Mining Limited is a gold producer listed
on the ASX, with a long life mine at Syama in Mali,
another producing gold mine at Ravenswood in
Australia, and a development project at Bibiani in
Ghana. In the year to June 2016 Resolute’s various
operations yielded 315,169 ounces of gold. Average
cash costs of A$898 per ounce were higher than the
previous year’s A$845 per ounce. During the year
Resolute completed a definitive feasibility study for
underground mining at Syama that is expected to
extend the mine’s life beyond 2028. A feasibility
study at Bibiani was positive, and the company will
now conduct more drilling with the aim of extending
the mine life beyond five years.
www.panpacpetroleum.com.au
Market Cap: US$12.6 million
(Investment held by Zeta Energy Pte. Ltd)
Pan Pacific Petroleum NL is an ASX-listed oil junior
based in Sydney. The company has a 15% stake
in the low cost Tui oil fields located in offshore
Taranaki, New Zealand. PPP also has a 5% stake
in the Block 07/03 development opportunity in
Vietnam, which holds potential for both oil and gas.
Zeta owns 50.4% of PPP. In the year ended June
2016, PPP’s share of oil production was 0.21 million
barrels, down slightly from 0.22 million barrels the
previous year.
NEW ZEALAND OIL & GAS LIMITED
(NEW ZEALAND)
PANORAMIC RESOURCES LIMITED
(AUSTRALIA)
www.nzog.com
Market Cap: US$111.3 million
(Investment held by Zeta Energy Pte. Ltd)
New Zealand Oil & Gas Limited is an independent New
Zealand oil & gas exploration and production company,
with exposure to two relatively low cost production
assets in New Zealand: the Kupe gas and oil field
(15% partner) and Tui area oil fields (27.5% partner).
In addition, NZOG has an exploration portfolio in both
New Zealand and Indonesia. NZOG is listed on the New
Zealand stock exchange. NZOG’s share price declined
15.5% during the 12 months to June 2016. Full year
results to 30 June 2016 showed increased revenues at
NZ$119 million (previous year NZ$116 million). Cash
flow from operating activities was NZ$19.2 million up
from NZ$8.6 million the prior year. At year end NZOG
had NZ$96.8 million (previous year NZ$83.7 million) of
net cash, but it should be noted this includes cash held
at NZOG’s 48%-owned subsidiary Cue Energy as well.
www.panoramicresources.com
Market Cap: US$39.9 million
Panoramic Resources Limited is a Western Australian
mining company that owns two 100%-owned
underground nickel sulphide mines, the Savannah
Project in the East Kimberley and the Lanfranchi
Project near
Kambalda, Western Australia.
Panoramic’s value is leveraged to both the price
of nickel, and the Australian dollar – the higher the
price of nickel and the lower the Australian dollar, the
higher the company’s worth. During the course of the
year, Panoramic decided to place both its nickel mines
into care and maintenance, given the persistently
low nickel prices. The company also conducted an
entitlement offer that was underwritten by Zeta. At
30 June 2016 Panoramic had A$21 million (previous
year A$54 million) in net cash. Panoramic’s shares fell
73% in the year to June 2016.
18
19
Annual Report for the year to 30 June 2016Annual Report for the year to 30 June 2016Zeta Resources LimitedZeta Resources Limited REVIEW OF THE FIVE LARGEST HOLDINGS
(continued)
DIRECTORS
SEACREST LP
(GLOBAL)
www.seacrest.com
Market Cap: N/A - unlisted
Seacrest LP is an unlisted Bermuda-based private
seismic specialist oil explorer. The company
has access to one of the world’s largest seismic
databases, and a large team of petroleum geologists.
The company seeks to create value by offering a
better understanding of regional seismic patterns
in oil & gas exploration basins globally. Seacrest’s
commercial approach is to join with operating
exploration firms, and acquiring interests in joint
ventures through farm-ins. Seacrest has established
a number of subsidiaries with regional focuses.
Having established a large portfolio of interests
in joint venture oil & gas exploration permits, the
company is reassessing its approach to drilling in
the wake of lower oil prices.
Peter Ross Sullivan (Chairman)*, appointed 7 June 2013. Mr Sullivan is an engineer and has been involved in the
management and strategic development of resource companies and projects for more than 20 years, including project
engineering, corporate finance, investment banking, corporate and operational management and public company
directorships. Mr Sullivan has considerable experience in the management and strategic development of resource
companies. Mr Sullivan holds a Bachelor of Engineering and a MBA.
Directorships of other listed companies in the last 3 years
Mr Sullivan is currently Chairman of Pan Pacific Petroleum NL (ASX: PPP) and non-executive director of Resolute Mining
Limited (ASX: RSG), GME Resources Limited (ASX: GME) and Panoramic Resources Limited (ASX: PAN).
Martin Botha*, appointed 7 June 2013. Mr Botha has over 30 years’ experience in banking, with the last 26 years
spent in leadership roles building Standard Bank Plc’s (part of The Standard Bank of South Africa Limited group of
companies) international operations. Mr Botha’s specific primary responsibilities have included establishing and leading
the development of the core global natural resources trading and financing franchises, as well as various geographic
strategies. Mr Botha holds a Bachelor of Engineering degree in Survey.
Directorships of other listed companies in the last 3 years
Mr Botha is currently non-executive director of Resolute Mining Limited (ASX: RSG).
Xi Xi*, appointed 7 June 2013. Ms Xi is a financial analyst with more than 15 years’ experience in the mining, energy and
natural resource industry, ranging from managing companies focused on international exploration and development of
mining projects to restructuring and overseeing a portfolio of private and public companies. Ms Xi holds dual Bachelor
of Science degrees in Chemical Engineering and Economics from the Colorado School of Mines and a Master of Arts in
International Relations and China Studies from Johns Hopkins School of Advanced International Studies.
Directorships of other listed companies in the last 3 years
None.
*Non-Executive Director
20
21
Annual Report for the year to 30 June 2016Annual Report for the year to 30 June 2016Zeta Resources LimitedZeta Resources Limited REPORT OF THE DIRECTORS
Your directors present their report for Zeta Resources Limited, including its subsidiaries, Kumarina Resources Pty
Limited, Zeta Energy Pte. Ltd and Zeta Investments Limited, for the year ended 30 June 2016.
DIRECTORS
The names of directors in office at any time during or since the end of the year are:
Peter Ross Sullivan
Marthinus (Martin) Botha
Xi Xi
Directors have been in office since the start of the year to the date of this report.
PRINCIPAL ACTIVITIES
The principal activities of the company are investing in listed and unlisted resource focused investments.
AFTER BALANCE DATE EVENTS
The share price of Resolute Mining Limited has risen from A$1.285 as at 30 June 2016 to A$2.05 as at 12 September
2016, a 60% increase. This has increased the net assets of Zeta Resources Limited by approximately A$24 million
(US$18 million). The share price of Panoramic Resources Limited has risen from A$0.135 as at 30 June 2016 to
A$0.205 as at 12 September 2016, a 52% increase. This has increased the net assets of Zeta Resources Limited by
approximately A$7 million (US$5 million). There have been no other facts nor circumstances of a material nature that
have occurred between the reporting date and the date of this report that have a material impact on the financial
position of the company at 30 June 2016.
LIKELY DEVELOPMENTS
The company intends to continue to seek to maximise total returns for shareholders by identifying and investing in
assets and companies where the underlying value is not reflected in the market price.
No significant change in the nature of these activities occurred during the year.
INFORMATION ON COMPANY SECRETARY
OPERATING AND FINANCIAL REVIEW
Operating results
The net loss attributable to the company for the year to 30 June 2016 amounted to $6,974,491.
Overview of operating activity
The company listed on the ASX on 12 June 2013.
During the year the company has continued to build its portfolio of resource investments by investing a further
$16,750,536. A decrease in the fair value of the portfolio resulted in an unrealised loss recognised in profit or loss at
year end of $4,079,785.
The activities of the company’s subsidiary, Kumarina, related to further exploration and evaluation of the existing
Australian mining tenements (the Murrin Murrin and Ilgarari projects) and a total of A$148,746 was invested during
the twelve months to 30 June 2016 in further drilling and analysis work.
Financial position
At the end of the year, the company had $238,893 in cash and cash equivalents. Investments at fair value totalled
$49,813,042, and the investment in subsidiaries was valued at $3,086,091.
The company has a loan owing to UIL of $36,165,296 at year end. Amounts outstanding to brokers (for settlement of
trades) totalled $78,140 at 30 June 2016.
Following shareholder approval in November 2015, 6,769,280 ordinary shares and 86,461,440 options were issued
under ASX listing rule 10.11 on 7 December 2015 to UIL Limited, raising US$18,617,065 in funds. These funds were
utilised to repay A$8.8 million and US$12.4 million of loans from Zeta’s parent.
DIVIDENDS
No dividends have been paid or declared since the start of the year. No recommendation is made as to dividends.
On 28 July 2016 Chamiel McDonald was appointed Company Secretary and BCB Charter Corporate Services Limited
as assistant secretary.
BCB Charter Corporate Services Limited delivers corporate administration services for their clients.
REMUNERATION REPORT
The remuneration report is set out in the following manner:
• Policies used to determine the nature and amount of remuneration
• Details of remuneration
• Share based compensation
• Directors and executives interests
REMUNERATION POLICY
The board of directors is responsible for remuneration policies and the packages applicable to the directors of the
company. The broad remuneration policy is to ensure that packages offered properly reflect a person’s duties and
responsibilities and that remuneration is competitive and attracts, retains, and motivates people of the highest quality.
The directors are remunerated for the services they render to the company and such services are carried out under
normal commercial terms and conditions. Engagement and payment for such services are approved by the other
directors who have no interest in the engagement of services.
At the date of this report the company had not entered into any packages with directors or senior executives which
include performance based components.
DETAILS OF REMUNERATION FOR DIRECTORS
The company paid a total of $150,000 to directors for the year ended 30 June 2016.
The company had no employees as at 30 June 2016.
22
23
Annual Report for the year to 30 June 2016Annual Report for the year to 30 June 2016Zeta Resources LimitedZeta Resources Limited REPORT OF THE DIRECTORS
(continued)
SHARE BASED COMPENSATION
There is currently no provision in the policies of the company for the provision of share-based compensation to
INDEMNIFYING OFFICERS OR AUDITORS
The company has not, during or since the year ended, in respect of any person who is or has been an officer or the
directors. The interest of directors and executives in shares and options is set out elsewhere in this report.
auditor of the company or of a related body corporate indemnified or made any relative agreement for indemnifying
DIRECTORS AND EXECUTIVES’ INTERESTS
The relevant interests of directors and executives either directly or through entities controlled by the directors and
executives in the share capital of the company and related body corporates as at the date of this report are:
DIRECTOR
Peter R Sullivan
Martin Botha
Xi Xi
ORDINARY SHARES
OPENING BALANCE
5,670,632
–
–
NET CHANGE
ORDINARY SHARES
CLOSING BALANCE
–
279,565
–
5,670,632
279,565
–
MEETINGS OF DIRECTORS
The board held four meetings during the year which were attended by all directors. The meetings were held on 6 July,
3 September, 15 November 2015 and 8 February 2016.
In addition, throughout the course of the year there were a number of resolutions of directors which were made by unanimous
written resolution. This included the approval of the half year report and financial statements on 18 February 2016.
There were no meetings of committees of directors that were required to be held during the year.
LOANS TO DIRECTORS AND EXECUTIVES
There were no loans entered into with directors or executives during the year under review.
UNLISTED OPTIONS
At the date of this report the number of unlisted options on issue was as follows:
86,461,440 Options exercisable at A$0.001 each, expiring 7 December 2019.
There were no options exercised during the year, or since the end of the year, that resulted in additional shares being
issued.
AUDIT COMMITTEE
The board reviews the performance of the external auditors on an annual basis and will meet with them during the
year to review findings and assist with board recommendations.
The board does not have a separate audit committee with a composition as suggested in the best practice
recommendations. The full board carries out the function of an audit committee.
The board believes that the company is not of a sufficient size to warrant a separate committee and that the full board
is able to meet the objectives of the best practice recommendations and discharge its duties in this area.
against a liability incurred as an officer or auditor, including costs and expenses in defending legal proceedings.
ENVIRONMENTAL REGULATION
Kumarina Resources Pty Limited’s operations are subject to the Western Australian Mining Act 1978 and the
Environmental Protection Act 1986.
The directors are not aware of any significant breaches and no actions were initiated for breaches under the
Environmental Protection Act during the year covered by this report.
NON-AUDIT SERVICES
No non–audit services were performed by the auditors of the company during the year.
ON-MARKET BUY BACK SCHEME
The company currently has no on-market share buy-back scheme in operation.
INVESTMENTS PUBLICALLY DISCLOSED BY THE COMPANY AT THE REPORTING DATE
NUMBER OF
SHARES
% OF ISSUED
SHARES HELD
Listed
Panoramic Resources Limited
Resolute Mining Limited
GME Resources Limited
Unlisted
Seacrest LP
Kumarina Resources Pty Limited
Zeta Energy Pte. Ltd
Zeta Investments Limited
102,282,973
31,234,000
19,717,742
10,500,000
26,245,610
1
1,000
23.866%
4.764%
4.272%
24.450%
100%
100%
100%
In addition, 100% owned subsidiary Zeta Energy Pte. Ltd holds listed investments, including 54,207,553 shares in New
Zealand Oil & Gas Limited, 121,323,567 shares in Oilex Limited, and 292,948,402 shares in Pan Pacific Petroleum NL.
During the year the company completed a total of 86 transactions in securities and paid a total of US$5,955 in brokerage
on those transactions.
24
25
Annual Report for the year to 30 June 2016Annual Report for the year to 30 June 2016Zeta Resources LimitedZeta Resources Limited REPORT OF THE DIRECTORS
(continued)
CORPORATE GOVERNANCE STATEMENT
INVESTMENT MANAGEMENT AGREEMENT
The company entered into an Investment Management Agreement with ICM Limited on 10 April 2013. Management
The company’s directors and management are committed to conducting the group’s business in an ethical manner
and in accordance with the highest standards of corporate governance. The company has adopted and substantially
fees are payable at a rate of 0.5% per annum, of funds managed on calculation date, payable quarterly in arrears and
complies with the ASX Corporate Governance Principles and Recommendations (Third Edition) (Recommendations)
pro-rated for any period less than three months.
Performance fees, if applicable, are payable annually at year end at a rate of 15% of equity funds (adjusted for any
dividends paid or accrued) on calculation date less adjusted base equity funds (high-water mark) previously used in
the performance fee calculation. The adjusted base equity funds is the base equity fund used in the last performance
fee calculation adjusted by the average percentage income yield on the S&P/ASX 300 Metals and Mining Index. No
performance fee was payable for the year.
Either party may terminate the agreement with six months’ notice.
The company paid US$344,465 in management fees during the reporting year.
AUDITOR'S INDEPENDENCE DECLARATION
A copy of the auditor’s independence declaration is included in the Independent Auditor’s Report.
This report is signed in accordance with a resolution of directors.
to the extent appropriate to the size and nature of the group’s operations. The company has prepared a statement
(“Corporate Governance Statement”) which sets out the corporate governance practices that were in operation
throughout the financial year for the company, identifies any Recommendations that have not been followed, and
provides reasons for not following such Recommendations. In accordance with ASX Listing Rules 4.10.3 and 4.7.4, the
Corporate Governance Statement will be available for review on the company’s website (www.zetaresources.limited),
and will be lodged together with an Appendix 4G to the ASX at the same time that the Annual Report is lodged with ASX.
The Appendix 4G will particularise each Recommendation that needs to be reported against by the company and will
provide shareholders with information as to where relevant governance disclosures can be found. The company’s
corporate governance policies and charters are all available on its website (www.zetaresources.limited).
Peter R Sullivan
Chairman
Perth, Western Australia
12 September 2016
26
27
Annual Report for the year to 30 June 2016Annual Report for the year to 30 June 2016Zeta Resources LimitedZeta Resources Limited Zeta Resources Limited
Annual Report for the year to 30 June 2016
INDEPENDENT AUDITOR’S REPORT
28
29
Annual Report for the year to 30 June 2016Zeta Resources Limited AUDITOR’S INDEPENDENCE DECLARATION
STATEMENT OF FINANCIAL POSITION
s at 30 June 2016
e
t
o
N
4
5
6
7
8
Non-current assets
Investment in subsidiaries
Investments
Loans to subsidiaries
Current assets
Cash and cash equivalents
Trade and other receivables
Balance due from brokers
Total assets
Non-current liabilities
9
10
Loan from subsidiary
Loan from parent
Current liabilities
11
Trade and other payables
Balance due to brokers
Total liabilities
NET ASSETS
Equity
12
12
Share capital
Share premium
12 Options
Accumulated losses
TOTAL EQUITY
June 2016
$
June 2015
$
3,086,091
49,813,042
29,803,322
238,893
12,109
–
3,193,721
43,686,192
23,894,270
193,267
13,171
119,912
82,953,457
71,100,533
(3,754,667)
(36,165,296)
(4,395,787)
(35,408,212)
(192,220)
(78,140)
(40,190,323)
42,763,134
900
66,233,041
17,265,320
(40,736,127)
42,763,134
(175,974)
–
(39,979,973)
31,120,560
832
64,881,364
–
(33,761,636)
31,120,560
30
31
Annual Report for the year to 30 June 2016Zeta Resources LimitedAnnual Report for the year to 30 June 2016Zeta Resources Limited STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
STATEMENT OF CASH FLOWS
s for the year ended 30 June 2016
e
t
o
N
June 2016
$
June 2015
$
Revenue
13
Investment income
14 Other income/(losses)
Expenses
Directors fees
Interest expense
15 Management and consulting fees
16 Operating and administration expenses
(4,036,767)
1,437,732
(42,418,422)
(6,090,197)
(150,000)
(3,371,114)
(560,884)
(293,458)
(150,000)
(3,164,318)
(432,656)
(986,420)
Loss before income tax
(6,974,491)
(53,242,013)
17
Income tax
Loss for the year
–
–
(6,974,491)
(53,242,013)
Other comprehensive income
–
–
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
(6,974,491)
(53,242,013)
Loss per share
18
Basic and diluted loss per share (cents per share)
(0.05)
(0.57)
s for the year ended 30 June 2016
e
t
o
N
Cash flows from operating activities
19.1 Cash utilised by operations
Interest received
Interest expense
Net cash flows from operating activities
Cash flows from investing activities
Investments purchased
Investments sold
Increase in loans to subsidiaries
Net cash flows from investing activities
Cash flows from financing activities
19.2 Proceeds from issue of shares
19.3 Proceeds from issue of options
Decrease in loan from parent via issue of shares and options
Increase in loan from parent from additional funding
Decrease in loan from subsidiaries
Net cash flows from financing activities
June 2016
$
June 2015
$
(90,994)
25,262
(3,371,114)
(3,436,846)
(4,334,188)
760,235
(12,416,348)
(15,990,301)
1,351,745
17,265,320
(18,617,065)
19,374,149
(641,120)
18,733,029
(3,748,481)
1,343
(3,164,318)
(6,911,456)
(22,713,820)
57,499,531
(35,321,826)
(536,115)
–
–
–
20,958,619
(7,551,796)
13,406,823
Net movement in cash and cash equivalents
(694,118)
5,959,252
Cash and cash equivalents at the beginning of the year
Effect of exchange rate fluctuations on cash held
7
Cash and cash equivalents at end of the year
193,267
739,744
238,893
188,012
(5,953,997)
193,267
32
33
Annual Report for the year to 30 June 2016Annual Report for the year to 30 June 2016Zeta Resources LimitedZeta Resources Limited STATEMENT OF CHANGES IN EQUITY
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2016
s
e
t
o
N
Share
capital
$
Share
premium
$
Accumulated
profits/
(losses)
$
Options
$
Total
$
1. BASIS OF PREPARATION
1.1 Corporate information
Zeta Resources Limited (“the company”) is an investment company incorporated on 13 August 2012, listed on the Australian
Stock Exchange and domiciled in Bermuda. The financial statements of the company as at and for the year ended 30 June 2016
Balance at 1 July 2014
832 64,881,364
Other comprehensive income for the year
–
–
Balance at 30 June 2015
832 64,881,364
12
12
Issue of shares
Issue of options
Other comprehensive income for the year
68
1,351,677
–
–
–
–
–
–
–
–
17,265,320
19,480,377
84,362,573
comprise the company only.
(53,242,013)
(53,242,013)
1.2 Basis of preparation
The financial statements for the period ended 30 June 2016 have been prepared in accordance with International Financial
Reporting Standards (IFRSs). The following accounting policies have, in all material respects, been applied consistently.
(33,761,636)
31,120,560
The financial statements were authorised for issue by the board of directors on 12 September 2016.
–
–
1,351,745
17,265,320
1.3 Basis of measurement
The financial statements provide information about the financial position, results of operations and changes in financial position
of the company. They have been prepared on the historic cost basis except for financial instruments at fair value through profit
–
(6,974,491)
(6,974,491)
or loss, which are measured at fair value.
Balance at 30 June 2016
900 66,233,041
17,265,320
(40,736,127)
42,763,134
1.4 Functional and presentation currency
The company’s functional and presentation currency is United States Dollars.
1.5 Use of estimates and judgements
The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and
expense. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an on-going basis. Revisions are recognised in the period in which
the estimate is revised and in any future periods affected.
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment
within the next financial year, as well as critical judgements in applying accounting policies that have the most significant effect
on the amounts recognised in the financial statements are included in note 21.
2. ADOPTION OF NEW AND REVISED STANDARDS
Future amendments not early adopted in the 2016 year ended financial statements
At the date of these financial statements the following standards, amendments to standards, and interpretations, which are
relevant to the company, have been issued by the International Accounting Standards Board, but have not yet been adopted by
the company.
IFRS 9 Financial Instruments (effective for years commencing on or after 1 January 2018) - this standard addresses the initial
measurement and classification of financial assets as either measured at amortised cost or at fair value. Financial assets are
measured at amortised cost when the business model is to hold assets in order to collect contractual cash flows. All other
financial assets are measured at fair value with changes recognised in profit or loss. For an investment in an equity instrument
that is not held for trading, an entity may on initial recognition elect to present all fair value changes from the investment in other
comprehensive income.
IFRS 9 retains the classification and measurement requirements in IAS 39 for financial liabilities. The standard however requires for
financial liabilities designated under the fair value option (other than loan commitments and financial guarantee contracts), that
the amount of change in fair value attributable to changes in the credit risk of the liability be presented in other comprehensive
income (OCI). The remaining amount of the total gain or loss is included in profit or loss. However, if this requirement creates or
enlarges an accounting mismatch in profit or loss, then the whole fair value change is presented in profit or loss.
IFRS 9 will be adopted for the first time for the year ending 30 June 2019, subject to certain transitional provisions. The impact
on the financial statements has not yet been estimated.
34
35
Annual Report for the year to 30 June 2016Annual Report for the year to 30 June 2016Zeta Resources LimitedZeta Resources Limited
NOTES TO THE FINANCIAL STATEMENTS
(continued)
3. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies detailed below have been consistently applied by the company.
3.1 Revenue
Dividends receivable are recognised as income on the ex-dividend date.
Gains or losses on the sale of investments are recorded on the trade date.
Investment income also comprises gains on changes in the fair value of financial assets at fair value through profit or loss.
Interest income is accrued on a time basis by reference to the principal outstanding and at the interest rate applicable.
3.2 Borrowing costs
3. SIGNIFICANT ACCOUNTING POLICIES (continued)
3.4 Foreign currency
Foreign currency transactions and balances
Transactions in foreign currencies are translated into the respective functional currencies of the company at exchange rates
at the dates of the transaction. Monetary assets and liabilities denominated in foreign currencies at the reporting date are
retranslated to the functional currency at the exchange rate at that date. The foreign currency gain or loss on monetary items is
the difference between amortised cost in the functional currency at the beginning of the period, adjusted for effective interest
and payments during the period, and the amortised cost in foreign currency translated at the exchange rate at the end of the
period. The foreign currency gains or losses are recognised in profit or loss.
Foreign currency differences arising on retranslation are recognised in other comprehensive income.
Borrowing costs are recognised as an expense when incurred except those that relate to the acquisition, construction or
production of qualifying assets where the borrowing cost is added to the cost of those assets until such time as the assets are
3.5 Earnings per share ("EPS")
substantially ready for their intended use or sale.
3.3 Income tax
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted by the balance date.
Deferred income tax is provided on all temporary differences at the balance date between the tax bases of assets and liabilities
and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except:
•
when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction
that is not a business combination and that, at the time of the transaction, affects neither the accounting profit nor taxable
profit or loss; or
•
when the taxable temporary difference is associated with investments in subsidiaries, associates or interests in joint
ventures, and the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary
difference will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and
unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary
differences and the carry-forward of unused tax credits and unused tax losses can be utilised, except:
•
when the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an
asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss; or
•
when the deductible temporary difference is associated with investments in subsidiaries, associates or interests in joint
ventures, in which case a deferred tax asset is only recognised to the extent that it is probable that the temporary difference
will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilised.
The carrying amount of deferred income tax assets is reviewed at each balance date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each balance date and are recognised to the extent that it has
become probable that future taxable profit will allow the deferred tax asset to be recovered. Deferred income tax assets and
liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled,
based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in profit or loss.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets against
current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority.
Basic EPS is calculated as net result attributable to members, adjusted to exclude costs of servicing equity (other than dividends)
and preference share dividends, divided by the weighted average number of ordinary shares, adjusted for any bonus element.
Diluted EPS is calculated as net result attributable to members, adjusted for:
•
•
costs of servicing equity (other than dividends) and preference share dividends;
the after tax effect of dividends and interest associated with potential dilutive ordinary shares that have been recognised as
expenses; and
•
other non-discretionary changes in revenues or expenses during the period that would result from the dilution of potential
ordinary shares divided by the weighted average number of ordinary shares and potential dilutive ordinary shares, adjusted
for any bonus element.
3.6 Financial instruments
Non-derivative financial instruments
Non-derivative financial instruments comprise investments in listed and unlisted securities, trade and other receivables, cash and
cash equivalents, trade and other payables and amounts due to/from brokers.
Non-derivative financial instruments are recognised initially at fair value plus, for instruments not at fair value through profit
or loss, any directly attributable transaction costs. Subsequent to initial recognition non-derivative financial instruments are
measured as described below.
Recognition and derecognition of financial instruments
Financial instruments are recognised when, and only when, the company becomes a party to the contractual provisions of the
particular instrument. The company derecognises a financial asset when the contractual rights to the cash flows arising from
the financial asset have expired or when it transfers the rights to receive the contractual cash flows on the financial asset in a
transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred.
A financial liability is derecognised when the liability is extinguished, that being, when the obligation specified in the contract is
discharged, cancelled or has expired. The difference between the carrying amount of a financial liability assumed (or part thereof)
extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities
assumed, is recognised in profit or loss.
Financial assets at fair value through profit or loss
Investment purchases and sales are accounted for on the trade date, exclusive of transaction costs. Investments used for efficient
portfolio management are classified as being at fair value through profit or loss. As the company’s business is investing in financial
assets with a view to profiting from their total return in the form of dividends, interest or increases in fair value, its investments
are designated as being at fair value through profit or loss on initial recognition.
Gains and losses on investments are analysed within the statement of comprehensive income as capital return. Quoted
investments are shown at fair value using market bid prices. The fair value of unquoted investments is determined by the board.
In exercising its judgement over the value of these investments, the board uses valuation techniques which take into account,
where appropriate, latest dealing prices, valuations from reliable sources, asset values, earnings and other relevant factors.
36
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Annual Report for the year to 30 June 2016Annual Report for the year to 30 June 2016Zeta Resources LimitedZeta Resources Limited NOTES TO THE FINANCIAL STATEMENTS
(continued)
3. SIGNIFICANT ACCOUNTING POLICIES (continued)
3. SIGNIFICANT ACCOUNTING POLICIES (continued)
3.6 Financial instruments (continued)
Non-derivative financial instruments (continued)
Cash and Cash Equivalents
Cash and cash equivalents are measured at amortised cost at the reporting date. Cash and cash equivalents comprise operating
cash balances, call deposits and short-term deposits with a maturity of three months or less.
Non-derivative financial liabilities
The company has the following non-derivative financial liabilities; loans and borrowings, trade and other receivables, trade and
other payables and amounts due to/from brokers.
All other financial liabilities (including liabilities designated at fair value through profit or loss) are recognised initially on the
trade date at which the company becomes a party to the contractual provisions of the instrument. The company derecognises
a financial liability when its contractual obligations are discharged or cancelled or expire. The difference between the carrying
amount of a financial liability assumed (or part thereof), extinguished or transferred to another party and consideration paid,
including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.
Trade and other payables
Trade and other payables are initially recognised at original invoice amount and are subsequently stated at amortised cost
by applying the effective interest method. Trade and other payables are not discounted where the effects of discounting
is considered immaterial. Trade and other payables are settled within 30 to 90 days and are interest free. Any gains on
derecognition are recognised in profit or loss.
3.7 Impairment of assets
Financial assets
A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is
any objective evidence that it is impaired. A financial asset is considered to be impaired if objective evidence indicates that one
or more events have had a negative effect on the estimated future cash flows of that asset.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying
3.8 Goodwill
Goodwill is any excess of the cost of an acquisition over the company’s interest in the cost of the identifiable assets and
liabilities acquired.
Goodwill is carried at cost less any accumulated impairment losses. Goodwill is allocated to the cash-generating unit and is tested
annually for impairment.
3.9 Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares and share options
are recognised as a deduction from equity.
3.10 Provisions and accruals
Provisions are recognised when the company has a present legal or constructive obligation as a result of past events, for
which it is probable that an outflow of economic benefits will occur, and where a reliable estimate can be made of the amount
of the obligation. The expense relating to any provision is presented in the statement of comprehensive income net of any
reimbursement. If the effect of discounting is material, provisions are discounted. The discount rate used is a pre-tax rate that
reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.
4.
INVESTMENT IN SUBSIDIARIES
At fair value
June 2016
$
June 2015
$
Investment in Kumarina Resources Pty Limited ("Kumarina")
3,086,089
3,193,719
Investment in Zeta Energy Pte. Ltd. ("Zeta Energy")
Investment in Zeta Investments Limited ("Zeta Investments")
1
1
1
1
3,086,091
3,193,721
amount, and the present value of the estimated future cash flows discounted at the original effective interest rate. An impairment
Investments in subsidiaries are held as part of the investment portfolio and consequently, in accordance with IFRS 10 are not
loss in respect of an available-for-sale financial asset is calculated by reference to its fair value.
consolidated but rather shown at fair value through profit and loss. The company had the following subsidiaries as at 30 June 2016:
Significant financial assets are tested for impairment on an individual basis. The remaining financial assets are assessed
collectively in groups that share similar credit risk characteristics. All impairment losses are recognised in profit or loss. Any
30 June 2016
cumulative loss in respect of an available for-sale financial asset recognised previously in equity is transferred to profit or loss.
Non-financial assets
The carrying amounts of the non-financial assets, other than deferred tax assets, are reviewed at each reporting date to
determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount
is estimated. An impairment loss is recognised if the carrying amount of an asset exceeds its estimated recoverable amount.
Impairment losses are recognised in profit or loss.
The recoverable amount of an asset is the greater of its value in use and its fair value less cost to sell. The fair value less cost to
sell is the amount obtainable from the sale of an asset in an arm's length transaction less the cost of disposal. While assessing
value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects the
current market assessments of the time value of money and the risks specific to the asset.
In respect of other assets, impairment losses recognised in prior periods are assessed at each reporting date for any indications
that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to
determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed
the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
Kumarina incorporated in Australia
Zeta Investments incorporated in Bermuda
Zeta Energy incorporated in Singapore
30 June 2015
Kumarina incorporated in Australia
Zeta Investments incorporated in Bermuda
Zeta Energy incorporated in Singapore
Number of
ordinary shares
Percentage of
ordinary shares held
26,245,210
1,000
1
100%
100%
100%
Number of
ordinary shares
Percentage of
ordinary shares held
26,245,210
1,000
1
100%
100%
100%
38
39
Annual Report for the year to 30 June 2016Annual Report for the year to 30 June 2016Zeta Resources LimitedZeta Resources Limited NOTES TO THE FINANCIAL STATEMENTS
(continued)
5.
INVESTMENTS
6. LOANS TO SUBSIDIARIES
Financial assets at fair value through profit or loss
Equity securities at fair value
Ordinary shares – listed
Subscription and other rights – unlisted
Equity securities at cost
Ordinary shares – listed
Subscription and other rights – unlisted
Investments held by the company at the reporting date
Listed
Panoramic Resources Limited
Resolute Mining Limited
GME Resources Limited
Other Investments
Unlisted
Seacrest LP
Other rights
Other
June 2016
$
49,813,042
40,776,406
9,036,636
49,813,042
40,650,179
11,573,120
52,223,299
June 2015
$
43,686,192
30,261,217
13,424,975
43,686,192
37,058,471
11,573,120
48,631,591
Number of
shares
102,282,973
31,234,000
19,717,742
19,461,320
10,500,000
938,331
Loan to Zeta Energy
Loan to Kumarina
June 2016
$
29,672,978
130,344
29,803,322
June 2015
$
23,863,438
30,832
23,894,270
The loan to Zeta Energy is denominated in Australian dollars to the value of A$20.427 million (2015: A$7.405 million), British
pounds to the value of UK£1.0 million (2015: Nil) and New Zealand dollars to the value of NZ$43.584 million (2015: NZ$43.671
million). There are no fixed repayment terms and no interest is charged. During the period ended 30 June 2016, the loan
to Zeta Energy, which was utilised for the purchase of listed investments, was impaired, through profit and loss, to the fair
value of the company as determined by the directors. In determining the fair value of Zeta Energy the directors have valued
the listed investments held by the company at market value of the exchange they are listed on, other than the investment in
Pan Pacific Petroleum NL ("PPP") which was valued by the directors at cost. The directors deem an alternate valuation for PPP to
be more appropriate due to the thinly traded nature of the shares in the market, that Zeta Energy has control of PPP by holding
more than 50% of its issued share capital and that PPP’s net asset value per share supports the directors’ valuation. As at 30 June
2016 the impairment to the loan totalled US$17.935 million. The loan to Kumarina is denominated in Australian dollars and is
interest free. There are no fixed repayment terms except that no repayment is due before 30 June 2017.
7. CASH AND CASH EQUIVALENTS
Cash balance comprises:
Cash at bank
June 2016
$
June 2015
$
238,893
193,267
Cash at bank earns interest at floating rates based on daily bank deposit rates. Short term deposits are made for varying periods
between three to six months depending on the immediate cash requirements of the company, and earn interest at the respective
short-term deposit rates.
8. TRADE AND OTHER RECEIVABLES
Other listed investments held by subsidiaries of the company include 54,207,553 shares in New Zealand Oil & Gas Limited,
121,323,567 shares in Oilex Limited, and 292,948,402 shares in Pan Pacific Petroleum NL.
During the reporting period the company completed a total of 86 transactions (2015: 210 transactions) in securities and paid a
total of US$5,955 (2015: US$50,701) in brokerage on those transactions.
Prepayments
During the reporting period the company also received loans from its subsidiary Zeta Energy. To secure the loans Zeta Resources
has pledged certain quantities of its shares held in listed entities.
The shares pledged include: Resolute Mining Limited (27,300,000) and Panoramic Resources Limited (6,666,666).
June 2016
$
12,109
June 2015
$
13,171
40
41
Annual Report for the year to 30 June 2016Annual Report for the year to 30 June 2016Zeta Resources LimitedZeta Resources Limited NOTES TO THE FINANCIAL STATEMENTS
(continued)
9. LOAN FROM SUBSIDIARY
Loan from Zeta Energy
June 2016
$
3,754,667
June 2015
$
4,395,787
The loan from Zeta Energy is denominated in Australian dollars to the value of A$3.84 million (30 June 2015: A$3.53 million) and
New Zealand dollars to the value of NZ$1.26 million (30 June 2015: NZ$2.47 million) and currently attracts interest at a rate of
7.11% per annum (30 June 2015: 7.36%) on the Australian dollar loan and at 6.49% per annum (30 June 2015: 7.74%) on the New
Zealand dollar loan. There are no fixed repayment terms except that no repayment is due before 30 June 2017.
10. LOAN FROM PARENT
Loan from UIL Limited ('UIL')
June 2016
$
36,165,296
June 2015
$
35,408,212
The loan is denominated in Australian dollars to the value of A$45.4 million (30 June 2015: A$11.55 million), carries interest at
10% per annum (30 June 2015: 10%) and no repayment is due before 31 December 2017. Subsequent to year end, the interest
rate on the loan has been changed to 7.5%. During the year the company converted A$8.8 million and US$12.4 million of loans
into equity following the shareholder approved issue of shares and options to UIL. See note 12. The company also converted
US$14.27 million of loans into Australian dollars during the year. During the year the company received A$21.4 million of funding
for the purchase of investments.
12. SHARE CAPITAL AND SHARE PREMIUM
Authorised
5,000,000,000 ordinary shares of par value $0.00001
Issued
Ordinary shares
Balance as at incorporation
Issued at incorporation as $1 par shares
Shares split into 10,000,000 shares of $0.00001 each
Issued in consideration for purchase of investments from Utilico
Issued in consideration for purchase of
100% of Kumarina Resources Limited
Issued under initial public offering
Issued under public rights issue dated 10 February 2014
Balance as at 30 June 2015
Following shareholder approval, issued under ASX listing rule 10.11
dated 7 December 2015
Number of
shares
Share
capital
Share
premium
100
9,999,900
22,835,042
17,775,514
4,000
42,616,164
93,230,720
6,769,280
–
–
–
228
178
–
426
832
68
–
–
–
32,221,936
13,406,337
3,795
19,249,296
64,881,364
1,351,677
Balance as at 30 June 2016
100,000,000
900
66,233,041
11. TRADE AND OTHER PAYABLES
For further details related to the share issue transactions please see note 19.2.
Accruals
The accruals are for audit, management, directors and administration fees payable.
June 2016
$
192,220
June 2015
$
175,974
Options
Balance at the beginning of the year (Note (a))
Following shareholder approval, issued under ASX listing
rule 10.11 dated 7 December 2015 (Note (b))
Expiry of 7 June 2016 options
Balance at the end of the year
Options
10,122,903
86,461,440
(10,122,903)
86,461,440
June 2016
$
June 2015
$
–
17,265,320
–
17,265,320
–
–
–
–
Note (a) – The options were exercisable at an exercise price of A$1.00 into one ordinary share until 7 June 2016.
Note (b) – During the year ended 30 June 2016, following shareholder approval, the company issued 86,461,440 options at a
cost of A$0.2817 per option, to UIL Limited, raising the equivalent of US$17.27 million. These options are exercisable at a price
of A$0.001 into one ordinary share until 7 December 2019.
42
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Annual Report for the year to 30 June 2016Annual Report for the year to 30 June 2016Zeta Resources LimitedZeta Resources Limited NOTES TO THE FINANCIAL STATEMENTS
(continued)
13. INVESTMENT INCOME
17. INCOME TAX
Interest income
Dividend income
Realised gains/(losses)
Unrealised fair value losses:
Financial assets at fair value through profit or loss
14. OTHER INCOME/(LOSSES)
Foreign exchange gains/(losses)
Other income/(losses)
15. MANAGEMENT AND CONSULTING FEES
Management and consulting fees
June 2016
$
25,262
–
17,756
June 2015
$
1,343
1,686,534
(1,357,557)
(4,079,785)
(4,036,767)
(42,748,742)
(42,418,422)
June 2016
$
739,744
697,988
1,437,732
June 2015
$
(5,953,997)
(136,200)
(6,090,197)
June 2016
$
560,884
June 2015
$
432,656
The company entered into an investment management agreement with ICM Limited (Bermuda registered) on 10 April 2013.
Management fees are payable at a rate of 0.5% per annum, of funds managed on calculation date, payable quarterly in arrears
and pro-rated for any period less than three months.
Performance fees are payable annually at year end on the difference between adjusted equity funds (adjusted for any dividends
paid or accrued) on calculation date less adjusted base equity funds (high-water mark) previously used in the performance fee
calculation multiplied by 15%. The adjusted base equity funds is the base equity fund used in the last performance fee calculation
adjusted by the average percentage income yield on the S&P/ASX 300 Metals and Mining Index. No performance fee was payable
in the current period (2015: US$ Nil).
Either party may terminate the agreement with six months’ notice.
16. OPERATING AND ADMINISTRATION EXPENSES
Operating and administration expenses consist of:
Accounting fees
Audit fees
Australian Stock Exchange listing fees
Insurance costs
Legal fees
Other expenses
June 2016
$
June 2015
$
82,833
14,463
47,694
14,042
–
134,426
293,458
103,628
13,982
49,954
–
159,608
659,248
986,420
The company is domiciled in Bermuda and has elected to be tax exempt in terms of local legislation. As such no tax is payable.
18. LOSS PER SHARE
Basic and diluted loss per share
June 2016
$
(0.05)
June 2015
$
(0.57)
Loss used in calculation of basic and diluted earnings per share
(6,974,491)
(53,242,013)
Weighted average number of ordinary shares outstanding during the year used
in calculation of basic and diluted earnings per share
145,959,570
93,230,720
The weighted average number of ordinary shares calculation is based on the year beginning 1 July 2015. For details of shares
issued during the year refer to note 19.2.
An adjustment has been made for the 86,461,440 options issued during the year as they are considered to be in substance
issued shares.
19. NOTES TO THE CASH FLOW STATEMENT
19.1 Cash utilised by operations
Loss before income tax benefit
Adjustments for:
Realised (gains)/losses on investments
Fair value loss on revaluation of investments
Foreign exchange (gains)/losses
Interest income
Interest expense
Operating loss before working capital change
Decrease/(increase) in trade and other receivables
Increase/(decrease) in trade and other payables
Decrease/(increase) in balance due from brokers
Increase/(decrease) in balance due to brokers
June 2016
$
June 2015
$
(6,974,491)
(53,242,013)
(17,756)
4,079,785
(739,744)
(25,262)
3,371,114
(306,354)
1,062
16,246
119,912
78,140
(90,994)
1,357,557
42,748,742
5,953,997
(1,343)
3,164,318
(18,742)
(13,171)
(3,553,320)
(119,912)
(43,336)
(3,748,481)
44
45
Annual Report for the year to 30 June 2016Annual Report for the year to 30 June 2016Zeta Resources LimitedZeta Resources Limited NOTES TO THE FINANCIAL STATEMENTS
(continued)
19. NOTES TO THE CASH FLOW STATEMENT (continued)
21. FINANCIAL RISK MANAGEMENT (continued)
June 2016
$
June 2015
$
The table below sets out the company classification of each class of financial assets and liabilities. All assets and liabilities
approximate their fair values:
19.2 Issue of shares
Shares issued for consideration
During the year ended 30 June 2016, following shareholder approval, in
accordance with ASX listing rule 10.11, the company issued 6,769,280 ordinary
shares on 7 December 2015, at a cost of A$0.2817 per share, to UIL Limited,
raising the equivalent of US$1.352 million.
19.3 Issue of options
Options issued for consideration
During the year ended 30 June 2016, following shareholder approval, the company
issued 86,461,440 options at a cost of A$0.2817 per option, to UIL Limited, raising
the equivalent of US$17.27 million. These options are exercisable at a price of
A$0.001 into one ordinary share until 7 December 2019.
20. AUDITOR REMUNERATION
Amounts received or due and receivable by the auditors
for audit of financial statements
21. FINANCIAL RISK MANAGEMENT
1,351,745
–
June 2016
$
June 2015
$
17,265,320
–
June 2016
$
June 2015
$
14,463
13,982
The board of directors, together with the Investment Manager, is responsible for the company’s risk management. The
directors’ policies and processes for managing the financial risks are set out below. These financial risks are principally
related to the market (currency movements, interest rate changes and security price movements), liquidity and credit and
counterparty risk.
The accounting policies which govern the reported statement of financial position carrying values of the underlying financial
assets and liabilities, as well as the related income and expenditure, are set out in note 3 to the financial statements. The
policies are in compliance with IFRS and best practice, and include the valuation of certain financial assets and liabilities at fair
value through profit and loss.
Categories of financial instruments
The analysis of assets into their categories as defined in IAS 39 "Financial Instruments: Recognition and Measurement" (IAS 39)
is set out in the following table. For completeness, assets and liabilities of a non-financial nature, or financial assets and liabilities
that are specifically excluded from the scope of IAS 39, are reflected in the non-financial assets and liabilities category.
30 June 2016
Assets
Investments in subsidiaries
Investments
Loans to subsidiaries
Cash and cash equivalents
Trade and other receivables
Liabilities
Loans from subsidiaries
Trade and other payables
Loan from parent
Balance due to brokers
30 June 2015
Assets
Investments in subsidiaries
Investments
Loans to subsidiaries
Cash and cash equivalents
Trade and other receivables
Balance due from brokers
Liabilities
Loans from subsidiaries
Trade and other payables
Loan from parent
Designated at fair
value through
profit and loss
$
Loans and
receivables
$
Total
carrying value
$
3,086,091
49,813,042
29,803,322
–
–
82,702,455
–
–
–
–
–
3,193,721
43,686,192
23,894,270
–
–
–
70,774,183
–
–
–
–
–
–
–
238,893
12,109
251,002
3,754,667
192,220
36,165,296
78,140
40,190,323
–
–
–
193,267
13,171
119,912
326,350
4,395,787
175,974
35,408,212
39,979,973
3,086,091
49,813,042
29,803,322
238,893
12,109
82,953,457
3,754,667
192,220
36,165,296
78,140
40,190,323
3,193,721
43,686,192
23,894,270
193,267
13,171
119,912
71,100,533
4,395,787
175,974
35,408,212
39,979,973
46
47
Annual Report for the year to 30 June 2016Annual Report for the year to 30 June 2016Zeta Resources LimitedZeta Resources Limited NOTES TO THE FINANCIAL STATEMENTS
(continued)
21. FINANCIAL RISK MANAGEMENT (continued)
21.1 Market risks
21. FINANCIAL RISK MANAGEMENT (continued)
21.1 Market risks (continued)
The fair value of equity and other financial securities held in the company’s portfolio fluctuates with changes in market prices.
Prices are themselves affected by movements in currencies and interest rates and by other financial issues, including the
market perception of future risks. The board sets policies for managing these risks within the company’s objective and meets
regularly to review full, timely and relevant information on investment performance and financial results. The Investment
Manager assesses exposure to market risks when making each investment decision and monitors on-going market risk within
the portfolio.
The company’s other assets and liabilities may be denominated in currencies other than United States Dollars and may also
be exposed to interest rate risks. The Investment Manager and the board regularly monitor these risks. The company does not
normally hold significant cash balances. Borrowings are limited to amounts and currencies commensurate with the portfolio’s
exposure to those currencies, thereby limiting the company’s exposure to future changes to amounts and currencies
commensurate with the portfolio’s exposure to those currencies, thereby limiting the company’s exposure to future changes
in exchange rates.
Gearing may be short- or long-term, in United States Dollars and foreign currencies, and enables the company to take a long-
term view of the countries and markets in which it is invested without having to be concerned about short-term volatility.
Income earned in foreign currencies is converted to United States Dollars on receipt. The board regularly monitors the effects
on net revenue of interest earned on deposits and paid on gearing.
Currency exposure
The principal currencies to which the company was exposed were the Australian Dollar, Sterling and New Zealand Dollar. The
exchange rates applying against the United States Dollar at 30 June 2016 and the average rates for the year were as follows:
AUD – Australian Dollar
GBP – Sterling
NZD – New Zealand Dollar
June 2016
Average
0.7448
1.3271
0.7123
0.7279
1.4838
0.6681
The company’s monetary assets and liabilities at 30 June 2016 (shown at fair value), by currency based on the country of
primary operations, are shown below:
30 June 2016
Cash and cash equivalents
Trade and other receivables
Loans to subsidiaries
Loans from subsidiaries
Loan from parent
Trade and other payables
Balance due to brokers
USD
1,423
–
–
–
–
(170,258)
–
AUD
220,022
–
9,613,170
(2,857,128)
(36,165,296)
(21,962)
(78,140)
GBP
899
–
NZD
16,549
12,109
836,352
19,353,800
–
–
–
–
(897,539)
–
–
–
Net monetary (liabilities)/assets
(168,835)
(29,289,334)
837,251
18,484,919
30 June 2015
Cash and cash equivalents
Trade and other receivables
Balance due to brokers
Loans to subsidiaries
Loans from subsidiaries
Loan from parent
Trade and other payables
USD
5,516
–
–
–
–
AUD
184,734
13,171
119,912
3,890,613
(2,721,459)
(25,734,714)
(9,673,498)
(169,003)
(497)
GBP
1,423
–
–
–
–
–
–
NZD
1,594
–
–
20,003,657
(1,674,328)
–
(6,474)
Net monetary (liabilities)/assets
(25,898,201)
(8,187,024)
1,423
18,324,449
Based on the financial assets and liabilities held, and exchange rates applying, at the reporting date, a weakening or
strengthening of the United States Dollar against each of these currencies by 10% would have had the following approximate
effect on annualised income after tax and on net asset value (NAV) per share:
Strengthening of the United States Dollar
Increase in total comprehensive loss for the
year ended 30 June 2016
Increase in total comprehensive loss for the
year ended 30 June 2015
Weakening of the United States Dollar
Decrease in total comprehensive loss for the
year ended 30 June 2016
Decrease in total comprehensive loss for the
year ended 30 June 2015
AUD
GBP
NZD
Total
(1,970,597)
(185,814)
(3,017,865)
(5,174,276)
(2,603,181)
(115,348)
(2,791,518)
(5,510,047)
1,970,597
185,814
3,017,865
5,174,276
2,603,181
115,348
2,791,518
5,510,047
These analyses are broadly representative of the company’s activities during the current year as a whole, although the level of the
company’s exposure to currencies fluctuates in accordance with the investment and risk management processes.
48
49
Annual Report for the year to 30 June 2016Annual Report for the year to 30 June 2016Zeta Resources LimitedZeta Resources Limited NOTES TO THE FINANCIAL STATEMENTS
(continued)
21. FINANCIAL RISK MANAGEMENT (continued)
21.1 Market risks (continued)
Interest rate exposure
The exposure of the financial assets and liabilities to interest rate risks at 30 June 2016 is shown below:
30 June 2016
Exposure to floating rates:
Cash
Exposure to fixed rates:
Loan from subsidiaries
Loan from parent
30 June 2015
Exposure to floating rates:
Cash
Exposure to fixed rates:
Loan from subsidiaries
Loan from parent
Within
one year
$
Greater than
one year
$
Total
$
238,893
–
238,893
–
–
(3,754,667)
(3,754,667)
(36,165,296)
(36,165,296)
193,267
–
193,267
–
–
(4,395,787)
(4,395,787)
(35,408,212)
(35,408,212)
Exposures vary throughout the year as a consequence of changes in the make-up of the net assets of the company arising
out of the investment and risk management processes. The company tends to limit its cash reserves and interest earned is
insignificant and therefore not sensitive to interest rate changes. Borrowings are at a fixed rate and not sensitive to interest
rate risk.
Other market risk exposures
The portfolio of investments, valued at US$49,813,042 at 30 June 2016 (30 June 2015: US$43,686,192) is exposed to market price
changes. The Investment Manager assesses these exposures at the time of making each investment decision. An analysis of the
portfolio by country is set out on note 23.
Price sensitivity risk analysis
A 10% decline in the market price of the listed investment held by the company would result in an unrealised loss of
$4,981,304. A 10% appreciation in the market price would have the opposite effect.
21. FINANCIAL RISK MANAGEMENT (continued)
21.2 Liquidity risk exposure
Liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due. The company’s
approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meets its
liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage
to the company’s reputation. The Investment Manager reviews liquidity at the time of making each investment decision. The
contractual maturities of the financial liabilities, based on the earliest date on which payment can be required, were as follows:
30 June 2016
Loan from subsidiaries
Trade and other payables
Balance due to brokers
Loans from parent
30 June 2015
Loan from subsidiaries
Trade and other payables
Loans from parent
Three months
or less
$
More than
three months
but less than
a year
$
–
192,220
78,140
–
270,360
–
175,974
–
175,974
–
–
–
–
–
–
–
–
–
More than
a year
$
Total
$
3,754,667
3,754,667
–
–
192,220
78,140
36,165,296
36,165,296
39,919,963
40,190,323
4,395,787
4,395,787
–
175,974
35,408,212
35,408,212
39,803,999
39,979,973
21.3 Credit risk and counterparty exposure
The company is exposed to potential failure by counterparties to deliver securities for which the company has paid, or to pay
for securities which the company has delivered. To mitigate against credit and counterparty risk broker counterparties are
selected based on a combination of criteria, including credit rating, balance sheet strength and membership of a relevant
regulatory body.
Cash and deposits are held with reputable banks. The company has an on-going contract with its Custodians for the provision
of custody services. The contracts are reviewed regularly. Details of securities held in custody on behalf of the company are
received and reconciled monthly.
Maximum exposure to credit risk
The company has loan assets totalling $29,803,322 (2015: $23,894,270) that is exposed to credit risk.
None of the company’s financial assets are past due, but the loan asset to Zeta Energy has been impaired as per note 6. The
company’s principal banker is Bermuda Commercial Bank (rated by Fitch as BBB-) and the company's principal custodian is
JP Morgan Chase Bank (rated by Fitch as AA-). The subsidiary Kumarina holds a bank account with National Australia Bank
(rated by Fitch as AA-).
50
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Annual Report for the year to 30 June 2016Annual Report for the year to 30 June 2016Zeta Resources LimitedZeta Resources Limited NOTES TO THE FINANCIAL STATEMENTS
(continued)
21. FINANCIAL RISK MANAGEMENT (continued)
21.4 Fair values of financial assets and liabilities
21. FINANCIAL RISK MANAGEMENT (continued)
21.4 Fair values of financial assets and liabilities (continued)
The assets and liabilities of the company are, in the opinion of the directors, reflected in the statement of financial position
at fair value. Borrowings under loan facilities do not have a value materially different from their capital repayment amount.
Borrowings in foreign currencies are converted into United States Dollars at exchanges rates ruling at each valuation date.
Unquoted investments are valued based on professional assumptions and advice that is not wholly supported by prices from
current market transactions or by observable market data.
Valuation of financial instruments
The table below analyses financial assets measured at fair value at the end of the year by the level in the fair value hierarchy
into which the fair value measurement is categorised:
Level 1
The fair values are measured using quoted prices in active markets.
Level 2
Level 3
The fair values are measured using inputs, other than quoted prices, that are included within level 1, that are
observable for the asset.
The fair values are measured using inputs for the asset or liability that are not based on observable market
data. The directors make use of recognised valuation techniques and may take account of recent arms’ length
transactions in the same or similar investments.
The directors regularly review the principles applied by the Investment Manager to those valuations to ensure they comply
with the company’s accounting policies and with fair value principles.
Level 3 financial instruments
Valuation methodology
The directors have satisfied themselves as to the methodology used, the discount rates and key assumptions applied, and the
valuation. The level 3 assets have each been assessed based on its industry, location and business cycle. Where sensible, the
directors have taken into account observable data and events to underpin the valuations.
The level 3 investments are split between (a) unlisted companies and (b) Investments and loans in subsidiaries.
(a) Unlisted companies
Seacrest LP (“Seacrest”) - Bermuda incorporated
Valuation inputs: The unlisted investment comprises an equity interest in Seacrest. The company’s sole asset is its holding
in Azimuth, a joint venture between Seacrest and PGS (the listed Norwegian seismic data service company).
The valuation of Azimuth is based on fair value US GAAP accounting. Using the General Partner’s valuation of the Seacrest
portfolio a discount is applied to each Azimuth subsidiary. The extent of the discount depends on whether the assets are in
a mature or frontier basin. In addition, following the fall in the oil price a further discount was applied thereby calculating a
fair value for Azimuth. On this basis Azimuth was valued as at 30 June 2016 at US$68.9m.
Valuation methodology: Zeta has used a fair value valuation of Seacrest of US$0.86 per share based on the value of
Azimuth, described above.
Sensitivities: Given Azimuth is an exploration company its risks are significant in both directions. Should commercially
recoverable oil not be discovered then the value will fall to nil. Should substantial commercially recoverable oil be
discovered the valuation uplifts are significant.
(b) Investments and loans in subsidiaries
Zeta Energy - Singapore incorporated
Valuation inputs: The key asset is the investment loan to Zeta Energy which was utilised for the purchase of listed
investments, and which was impaired, through profit and loss, to the fair value of the company as determined by the
directors based on the valuation of the investments held by Zeta Energy as at 30 June 2016.
Valuation methodology: Zeta has used a fair value valuation of losses incurred by Zeta Energy on its investments by which
to impair the loan value in the accounts as at 30 June 2016.
Sensitivities: Given Zeta Energy’s assets comprise listed investments its risks are significant in both directions. Increases in
share prices will increase the value of the loan and decreases in share prices will further decrease the value of the loan.
Other investments and loans to subsidiaries
Zeta has further investments and loans to subsidiaries valued at book and realisable value, with a total value of US$3.1m
(2015: US$3.2m).
30 June 2016
Financial assets
Investments
Investment in subsidiaries
Loan to subsidiary
Level 1
$
Level 2
$
Level 3
$
40,776,406
–
–
–
–
–
9,036,636
3,086,091
29,803,322
There have been no movements between the level 1 and level 3 categories.
The following table shows a reconciliation from opening balances to closing balances for fair value measurements in level 3
investments of the fair value hierarchy:
Balance at 1 July 2015
Acquisitions at cost
Disposals during the year
Total gains or losses recognised in:
Fair value through profit or loss
Balance at 30 June 2016
30 June 2015
Financial assets
Investments
Investment in subsidiaries
Loan to subsidiary
Balance at 1 July 2014
Acquisitions at cost
Disposals during the year
Total gains or losses recognised in:
Fair value through profit or loss
Balance at 30 June 2015
Level 3
investments
$
Level 3
investments
in subsidiary
$
Level 3
loan to
subsidiary
$
13,424,975
3,193,721
23,894,270
–
–
–
–
12,416,347
–
(4,388,339)
9,036,636
(107,630)
(6,507,295)
3,086,091
29,803,322
Level 1
$
Level 2
$
Level 3
$
88,101,079
–
–
–
–
–
Level 3
investments
$
Level 3
investments
in subsidiary
$
15,968,054
10,275,234
29,803,322
Level 3
loan to
subsidiary
$
15,968,054
10,275,234
–
1,000,000
1
35,321,826
–
(5,293,501)
–
(3,543,079)
(1,788,013)
(11,427,556)
13,424,975
3,193,721
23,894,270
52
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Annual Report for the year to 30 June 2016Annual Report for the year to 30 June 2016Zeta Resources LimitedZeta Resources Limited
NOTES TO THE FINANCIAL STATEMENTS
(continued)
21. FINANCIAL RISK MANAGEMENT (continued)
21.5 Capital risk management
The objective of the company is stated as being to maximise shareholder returns by identifying and investing in investments
where the underlying value is not reflected in the market price. In pursuing this long term objective, the board has a
responsibility for ensuring the company’s ability to continue as a going concern. It must therefore maintain an optimal capital
structure through varying market conditions. This involves the ability to issue and buy back share capital within limits set by the
shareholders in general meeting; borrow monies in the short and long term; and pay dividends to shareholders out of current
year earnings as well as out of brought forward reserves.
22. RELATED PARTIES
22.1 Material related parties
Holding company
The company’s holding company is UIL which held 85.49% of the company’s issued share capital on 30 June 2016. UIL is in
turn held 61.78% by General Provincial Life Pension Fund (L) Limited.
Subsidiary companies
The company’s subsidiaries are Kumarina, Zeta Energy and Zeta Investments, all 100% held subsidiaries.
Key management personnel
Key management personnel and their close family members and entities which they control, jointly or over which they exercise
significant influence are considered related parties of the company. The company’s directors, as listed in the Director's report
are considered to be key management personnel of the company.
Investment Manager
ICM Limited is the Investment Manager of both the company, its subsidiaries and UIL.
22.2 Material related party transactions
Nature of transactions
Investments in related parties:
Kumarina
Zeta Investments
Zeta Energy
Loans to related parties:
Kumarina
Zeta Energy
Loans from related parties:
Utilico
Zeta Energy
Interest charged by the subsidiaries
Interest charged by the parent company
Interest charged by the Investment Manager
Fees paid to the Investment Manager
Fees paid to the directors
June 2016
$
June 2015
$
3,086,089
1
1
3,193,719
1
1
130,344
29,672,978
30,832
23,863,438
36,165,296
3,754,667
35,408,212
4,395,787
318,776
3,051,091
1,225
344,464
150,000
552,203
2,412,137
109,120
559,409
150,000
During the year ended 30 June 2016 the company held a loan from its subsidiary Zeta Energy. To secure the loan Zeta
Resources has pledged certain quantities of its shares held in listed entities.
The shares pledged include: Resolute Mining Limited (27,300,000) and Panoramic Resources Limited (6,666,666).
23. SEGMENTAL REPORTING
The company has four reportable segments, as described below, which are considered to be the company’s strategic investment
areas. For each investment area, the company’s chief operating decision maker (“CODM”) (ICM Limited – investment manager)
reviews internal management reports on at least a monthly basis. The following summary describes each of the company’s
reportable segments:
Gold: investments in companies which mine gold
Oil & Gas: investments in companies which extract or prospect for oil or gas
Mineral Exploration: investments in companies which explore or mine for nickel, copper and other minerals
Other segments: activities which do not fit into one of the above segments
Information regarding the results of each reportable segment is included below. Performance is measured based on segment
profit before tax, as included in the internal management reports that are reviewed by the company’s CODM. Segment profit is
used to measure performance as management believes that such information is the most relevant in evaluating the performance
of certain segments relative to other entities that operate within these industries.
Information about reportable segments
30 June 2016
External revenues
Gold
$
Oil & gas
$
Mineral
exploration
$
Other
segments
$
Total
$
22,471,287
(11,016,091)
(15,375,751)
(116,212)
(4,036,767)
Reportable segment revenue
22,471,287
(11,016,091)
(15,375,751)
(116,212)
(4,036,767)
Interest revenue
Interest expense
Reportable segment income/(loss)
before tax
–
–
–
–
–
–
25,262
25,262
(3,371,114)
(3,371,114)
22,471,287
(10,543,292)
(15,150,562)
(3,751,924)
(6,974,491)
Reportable segment assets
32,747,455
39,573,255
10,375,105
257,642
82,953,457
Reportable segment liabilities
–
–
(78,140)
(40,112,183)
(40,190,323)
30 June 2015
External revenues
Gold
$
Oil & gas
$
Mineral
exploration
$
Other
segments
$
Total
$
(9,186,191)
(14,599,002)
(18,499,858)
(269,571)
(42,554,622)
Reportable segment revenue
(9,186,191)
(14,599,002)
(18,499,858)
(269,571)
(42,554,622)
Interest revenue
Interest expense
Reportable segment loss
before tax
–
–
–
–
–
–
1,343
1,343
(3,164,168)
(3,164,168)
(9,186,191)
(14,599,002)
(18,499,858)
(10,956,962)
(53,242,013)
Reportable segment assets
9,861,293
38,971,352
21,936,822
331,066
71,100,533
Reportable segment liabilities
–
–
–
(39,979,973)
(39,979,973)
During the year there were no transactions between segments which resulted in income or expenditure.
54
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Annual Report for the year to 30 June 2016Annual Report for the year to 30 June 2016Zeta Resources LimitedZeta Resources Limited NOTES TO THE FINANCIAL STATEMENTS
(continued)
23. SEGMENTAL REPORTING (continued)
23. SEGMENTAL REPORTING (continued)
Reconciliations of reportable segment revenues, profit or loss, assets and liabilities, and other material items
Revenues
Total revenue for reportable segments
Revenue for other segments
Revenue
Profit or loss
Total loss for reportable segments
Loss for other segments
Loss before tax
Assets
Total assets for reportable segments
Assets for other segments
Total assets
Liabilities
Total liabilities for reportable segments
Liabilities for other segments
Total liabilities
June 2016
$
(3,920,555)
(116,212)
(4,036,767)
(3,222,567)
(3,751,924)
(6,974,491)
82,695,815
257,642
82,953,457
(78,140)
(40,112,183)
(40,190,323)
June 2015
$
(42,156,336)
(262,086)
(42,418,422)
(42,285,051)
(10,956,962)
(53,242,013)
70,769,467
331,066
71,100,533
–
(39,979,973)
(39,979,973)
Geographic information
In presenting information on the basis of geography, segment revenue and segment assets are based on the geographical
location of the operating assets of the investment held by the company.
Revenue
Australia
Singapore
Mali
Namibia
New Zealand
Norway
United Kingdom
Other Countries
Revenue
June 2016
$
(8,497,796)
(6,507,295)
15,579,453
(1,664,577)
(1,665)
(1,801,948)
(595,749)
(430,978)
(3,920,555)
June 2015
$
(22,361,895)
(11,427,556)
(5,104,743)
(1,278,383)
(94,932)
(1,390,572)
(455,871)
(42,384)
(42,156,336)
Assets
Australia
Singapore
Mali
Namibia
New Zealand
Norway
United Kingdom
Other Countries
Assets
June 2016
$
22,755,967
29,803,322
20,424,525
3,520,472
–
3,835,958
1,257,543
1,098,028
82,695,815
June 2015
$
27,556,243
23,894,270
4,582,564
5,176,237
7,800
5,639,348
1,848,749
2,064,256
70,769,467
24. EVENTS AFTER THE REPORTING DATE
The share price of Resolute Mining Limited has risen from A$1.285 as at 30 June 2016 to A$2.05 as at 12 September 2016, a 60%
increase. This has increased the net assets of Zeta Resources Limited by approximately A$24 million (US$18 million). The share
price of Panoramic Resources Limited has risen from A$0.135 as at 30 June 2016 to A$0.205 as at 12 September 2016, a 52%
increase. This has increased the net assets of Zeta Resources Limited by approximately A$7 million (US$5 million).
There have been no other facts nor circumstances of a material nature that have occurred between the reporting date and the
date of this report that have a material impact on the financial position of the company at 30 June 2016 other than those listed
in the notes above.
56
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Annual Report for the year to 30 June 2016Annual Report for the year to 30 June 2016Zeta Resources LimitedZeta Resources Limited
ADDITIONAL ASX INFORMATION
1. SUBSTANTIAL SHAREHOLDERS
As at 14 September 2016, the company had received notification of the following substantial shareholdings:
UIL Limited
Peter Ross Sullivan
86,388,449 (86.39%)
5,670,632 (5.67%)
4. VOTING RIGHTS
All ordinary shares carry one vote per share without restriction.
2. DISTRIBUTION SCHEDULE OF ORDINARY SHARES HELD AT 14 SEPTEMBER 2016:
5. USE OF CAPITAL
HOLDING RANGES
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
Total
NO. OF
SHARES
3,465
452,196
230,077
1,098,386
98,215,876
100,000,000
NO. OF ORDINARY
SHAREHOLDERS
% OF ISSUED
CAPITAL
Pursuant to the requirements of ASX listing rule 4.10.19 the company has used all cash and assets in a form readily
convertible to cash, that it held at the time of admission, in a way consistent with its business objectives.
14
143
26
30
16
229
0.00
0.45
0.23
1.10
98.22
100.00
6. APPLICATION OF CHAPTERS 6, 6A, 6B AND 6C OF THE CORPORATIONS ACT 2001
The company is not subject to Chapters 6, 6A, 6B and 6C of the Corporations Act dealing with the acquisition of
its shares. In addition, neither the Bermuda Companies Act nor the company’s Bye Laws prescribe a regime for
the conduct of takeovers or contain a general prohibition on acquisitions of interests in Bermuda companies
beyond a certain threshold in the same way as the Australian Corporations Act 2001.
The number of shareholders holding less than a marketable parcel of ordinary shares at 14 September 2016 is
20 and they hold 10,896 securities.
7. KUMARINA TENEMENT SCHEDULE
3. TOP 20 HOLDINGS OF FULLY PAID ORDINARY SHARES AS AT 14 SEPTEMBER 2016
PROJECT AREA
TENEMENT ID
OWNERSHIP
COMMENTS
NAME
J P Morgan Nominees Australia Limited
HSBC Custody Nominees Australia Limited
James Noel Sullivan
Hardrock Capital Pty Limited
Calimo Pty Limited
Cherryburn Pty Limited
Gillian Clare Sellers
Custodial Services Limited
National Nominees Limited
John Gillis Broinowski
Uuro Pty Limited
AO Peter Irving Burrows
Australian Executor Trustees Limited
ACS (NSW) Pty Limited
Pendan Pty Limited
Minturn Pty Limited
T J + K M Russell
Stephanie Saville
Bouchi Pty Limited
John Dugald F Morrison
Total for top 20
SHARES
85,489,612
7,652,619
1,308,595
600,000
576,510
350,000
350,000
281,300
279,565
260,000
250,000
200,000
200,000
170,000
127,675
120,000
100,000
70,110
64,000
60,000
% OF ISSUED
CAPITAL
85.49
7.65
1.31
0.60
0.58
0.35
0.35
0.28
0.28
0.26
0.25
0.20
0.20
0.17
0.13
0.12
0.10
0.07
0.06
0.06
98,509,986
98.51
Gold and Base Metals Rights
Gold and Base Metals Rights
Ilgarari
Eulaminna
Murrin Murrin
E52/2274
M39/0371
M39/0372
M39/0397
M39/0398
M39/0399
M39/0400
M39/1068
P39/5230
P39/5231
P39/5232
P39/5233
P39/5234
P39/5235
P39/5236
P39/5237
P39/5238
100%
0%
0%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
58
59
Annual Report for the year to 30 June 2016Annual Report for the year to 30 June 2016Zeta Resources LimitedZeta Resources Limited COMPANY INFORMATION
Zeta Resources Limited
Company ARBN: 162 902 481
www.zetaresources.limited
DIRECTORS (NON-EXECUTIVE)
Peter Sullivan (Chairman)
Marthinus (Martin) Botha
Xi Xi
REGISTERED OFFICE
34 Bermudiana Road
Hamilton HM 11
Bermuda
Company Registration Number: 46795
AUSTRALIAN REGISTERED OFFICE
Level 9
45 Clarence Street
Sydney NSW 2000
Australia
Telephone: +61 2 9248 0304
INVESTMENT MANAGER
ICM Limited
34 Bermudiana Road
Hamilton HM 11
Bermuda
Telephone: +1 441 299 2894
Email: contact@icmnz.co.nz
SECRETARY
Chamiel McDonald
34 Bermudiana Road
Hamilton HM 11
Bermuda
ASSISTANT SECRETARY
BCB Charter Corporate Services Limited
34 Bermudiana Road
Hamilton HM 11
Bermuda
60
GENERAL ADMINISTRATION
ICM Corporate Services (Pty) Ltd
1 Knutsford Road
Wynberg 7800
Cape Town
South Africa
AUDITOR
KPMG Inc
MSC House
1 Mediterranean Street, Foreshore
8001, Cape Town
South Africa
DEPOSITORY
JP Morgan Chase Bank NA
London Branch
25 Bank Street
Canary Wharf
London E14 5JP
United Kingdom
REGISTRAR
Security Transfer Australia Pty Ltd
770 Canning Highway
Applecross WA 6153
Australia
Telephone: +61 8 9315 2333
STOCK EXCHANGE LISTING
The company’s shares are quoted on the Official List of the
Australian Securities Exchange, Ticker code: ZER
Annual Report for the year to 30 June 2016Zeta Resources Limited Contact
PO Box 25437
Featherston Street
Wellington 6146
Telephone: +64 4 901 7600
www.zetaresources.limited
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