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Annual Report
For the year ended 30 June 2020
The information contained in this report is to be read
in conjunction with Zeus Resources Limited's 2020
half year report and announcements to the market
Zeus Resources released during the period
WWW.ZEUSRESOURCES.COM ABN 70 139 183 190
1
CORPORATE DIRECTORY
Directors
Mr Dongfeng Zhang – Chairperson (appointed 25 Sept 2019)
Mr Jiangang Zhao - Acting CEO and Director
Mr Gregory Clifton Hall - Non-executive Director
Mr Yong Zhang - Non-executive Director
Mr Shouyin Wang – Chairperson (resigned 25 Sept 2019)
Company Secretary
Anthony Harris
Principal registered office
Suite 105 Level 1, 25-27 Berry Street
North Sydney
Telephone: +61 2 8488 3270
Email: info@zeusresources.com
Auditor
William Buck
29/66 Goulburn St
Sydney NSW 2000
Share Registry
Link Market Services
Level 4, 152 St George’s Terrace
Perth WA 6000
Australian Securities Exchange
ASX Code – ZEU
Website: www.zeusresources.com
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CONTENTS
CORPORATE DIRECTORY
CHAIRPERSON’S REPORT
REVIEW OF OPERATIONS REPORT
DIRECTORS’ REPORT
AUDITOR’S INDEPENDENCE DECLARATION
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
STATEMENT OF FINANCIAL POSITION
STATEMENT OF CHANGES IN EQUITY
STATEMENT OF CASH FLOWS
NOTES TO THE FINANCIAL STATEMENTS
DIRECTORS’ DECLARATION
INDEPENDENT AUDITOR'S REVIEW REPORT
TENEMENT SCHEDULE
GOVERNANCE STATEMENT
SHAREHOLDER INFORMATION
2
4
6
9
21
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23
24
25
26
44
45
50
51
66
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CHAIRPERSON’S REPORT
Dear Shareholder,
It is with great pleasure that I write to you and present the Zeus Resources Ltd (Zeus or the Company)
Annual Report for the year ended 30 June 2020.
During the past year, uranium exploration and mining companies have experienced some growth in
demand for uranium ores and milled ore product and growth in the spot price. Miners and suppliers
in Canada and Kazakhstan’s state-owned Kazatomprom are slowly bringing production back on line
with newly-listed investment house Yellow Cake placing contracts for long term supply of uranium
oxide. Uranium price still remains low, around US$31 per lb up from US$24 per lb last year, but a long
way off from prices in the previous decade of $140 per lb.
Source: Market Insider: https://markets.businessinsider.com/commodities/uranium-price
4
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CHAIRPERSON’S REPORT
Tenements Exploration
Exploration efforts during the year have remained focused on the planning of follow up exploration
programs for proposed drilling at the Company’s remaining Narnoo and Wiluna Projects and at the
Gascoyne tenement extension Mortimer Hills E09/2147.
Exploration efforts in WA have been delayed due to restrictions on travel and due to our JV partner
changing management structure and deciding not to continue with exploration efforts in the
Gascoyne region.
Exploration conducted by farm-in partner Arrow Minerals Ltd Limited (ASX: AMD) (“Arrow”) had not
progressed during the year and unfortunately the new CEO decided not to continue with the joint
venture project, E09/1618 in the Gascoyne area. Zeus Resources agreed to end the Joint Venture
agreement and Arrow, as the managing partner, fully relinquished the tenement in May 2020.
Efforts to find joint venture partners for tenements in the Lake Way area were severely impacted by
the restrictions on travel. The Company was not able to negotiate with JV partners for tenements
E53/1601 and E53/1604. These two tenements were subsequently fully relinquished.
The Company has followed up on forming a venture with potential operators in Laos. These
relationships were expected to be expanded upon in the financial year, due to the Covid19 pandemic
restrictions, negotiations have been temporarily halted. We hope to send in another exploration team
some time in 2021.
Financial Position
The company still has sufficient funds to support further operations with $1.14 million of cash as at
30th June 2020 and no debt.
Cash outflows have been substantially reduced by relinquishing two tenements and partially
relinquishing a futher 2 tenements. Projected cash outflow was reduced from a commitment of over
$400,000 to $150,000.
The substantial reduction in the projected costs of tenements will enable the Company to carry out
further exploration and explore acquisitions and joint venture possibilities in the next financial year.
Yours Sincerely,
Mr. Dongfeng Zhang
Chairperson
Dated this 29th day of September 2020
5
REVIEW OF OPERATIONS
The Company held six active licences during the year in three project areas within Western Australia, at Lake
Way, Narnoo South and Mortimer Hills. In April 2020 Zeus Resources relinquished three licences and two
licences partially surrendered. Arrow Minerals Ltd relinquished the Joint Venture tenement E09/1618 in
Mortimer Hills.
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Tenements are shown in Figure 1 and detailed in Table 1.
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Figure 1. Zeus Resources Tenement Location Map.
6
REVIEW OF OPERATIONS
Region
Project
Tenement
Status
Holder
Operator
Comments
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Wiluna
Narnoo
Gascoyne
E 53/1601
Relinquished -
-
100%
surrendered
Lake Way
E 53/1603
Granted
Zeus
Resources Ltd
Zeus
Resources Ltd
Partial Surrender
3/8 blocks. 5 held
Narnoo
South
Mortimer
Hills
E 53/1604
Relinquished -
-
100%
surrendered
E 28/2097
Granted
Zeus
Resources Ltd
Zeus
Resources Ltd
Partial Surrender
2/7 blocks. 5 held
E 09/1618
Relinquished -
-
100%
surrender
E 09/2147
Granted
Zeus
Resources Ltd
Zeus
Resources Ltd
No changes
Table 1. Zeus Resources Tenement Details
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Exploration Program
Resources Ltd.
Wiluna Project
the Board.
Narnoo Project
Gascoyne Project
No fieldwork was completed during the year ended 30th June 2020 on the tenements managed by Zeus
During the year ended 30th June 2020 Zeus completed a strategic review of the Wiluna project and relinquished
two licences, E53/1601 and E53/1604. Exploration licence E53/1603 was reduced in area by 3 sub-blocks. There
are no immediate plans or a drilling program at the Wiluna Project, but this is subject to an ongoing review by
During the year ended 30th June 2020 Zeus completed a strategic review of the Narnoo project and reduced
the area of Exploration Licence E28/2097 by 2 sub-blocks. There are no immediate plans for follow up drilling
of the Narnoo South (E28/2097) uranium prospect, but this is subject to ongoing review by the Board.
In May 2020 Arrow Minerals Ltd withdrew from involvement with E09/1618 and the licence was relinquished.
No field exploration activities were undertaken by Zeus within E09/2147 during the year ended 30th June 2020.
7
REVIEW OF OPERATIONS
Competent Person Statement:
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Information in this release that relates to Exploration Results is based on information compiled by
Mr Andrew Rust, who is a Member of the Australian Institute of Mining and Metallurgy (AusIMM).
Mr Rust is a full time employee of Shearwater Australia Proprietary Limited. Mr Rust is engaged by
Zeus Resources Limited as an independent consultant. Mr Rust has sufficient experience which is
relevant to the style of mineralisation and type of deposit under consideration and to the activity
being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the
‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr
Rust consents to the inclusion in this release of the matters based on his information in the form
and context in which it appears.
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8
DIRECTORS’ REPORT
Your Directors present their report together with the financial statements of the Company for the
financial year ended 30th June 2020.
Review of operations
During the past financial year, the Company focused on both geological exploration of current tenements
and new project acquisitions.
Exploration efforts in WA have been delayed due to restrictions on travel and due to our JV partner
changing management structure and deciding not to continue with exploration efforts in the Gascoyne
region.
The Company will continue to investigate potential other joint venture partners for current tenement
exploration licences and hopes to develop partnerships with similar terms and conditions of the Arrow
joint venture.
The Company has also formed some new relationships with potential operators in Laos. These
relationships were expected to be expanded upon in the financial year, however our staff have not been
able to travel outside of Australia or China in order to follow up on opportunities in Laos. The discussions
in Laos have been put on hold until the COVID19 situation in SE Asia improves and travel restrictions
have been relaxed.
Results of Operations
For the year ended 30th June 2020 the Company recorded a loss of $834,620 (2019: Loss $261,510).
Impairment of relinquished or partially surrendered tenements accounted for $574,090 of the loss. (Loss
before impairment was $265,530)
Total exploration expenditure for the year was $144,882 (2019: $154,475) of which $139,849 was
capitalised to exploration assets (2019: $149,316).
For the year ended 30th June 2020 the share price of the Company did not change from opening at
$0.008 per share to close at $0.008 per share – a change in value of 0%.
Shares Registry
For the year ended 30th June 2020 the Company did not issue any additional shares or cancel any shares.
(2019: Nil). The Company did not make any payments for shares in the Company at a discount or
premium to the traded price. (2019: Nil)
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DIRECTORS’ REPORT
Significant changes in state of affairs
During the financial year ended 30th June 2020, the Chairperson, Mr Shouyin Wang, resigned on 25th
September 2019. Mr Dongfeng Zhang was subsequently appointed to the position of Chairperson on 25th
September 2019.
No other significant changes were made to the structure and composition of board and management to
30th June 2020.
Principal activities
The principal activity of the Company during the year was the exploration for uranium and other metal
resources and the assessment of options for investment in multi-commodity mining assets. The
Company operates as a for profit entity. No change in the principal activity occurred during this period.
Likely developments and expected results of operations
The Company intends to continue its exploration activities on its existing projects and to acquire further
suitable projects for exploration as opportunities arise.
Directors
The Directors in office during the year and as at the date of this report are:
Mr. Jiangang Zhao
Mr. Gregory Clifton Hall
Mr. Yong Zhang
Mr. Dongfeng Zhang (appointed 25 Sept 2019)
Mr. Shouyin Wang (resigned 25 Sept 2019)
Directors have been in office since the start of the financial year (1 July 2019) to the date of this
report unless otherwise stated.
DIRECTORS’ PROFILES
Mr Shouyin Wang – Chairperson (Resigned 25 September 2019)
BA Geology Institute of Hebei
EMBA Xi'an University of Technology
From 1987-1997, Mr Wang worked at the Shandong Office of the China Metallurgical Geological Bureau
and from 1997- 2012, he worked for Xinjiang Geological Prospecting Institute as Dean and President. He
also acted as a Director, Deputy Manager and as CFO of ZIMC during this period. From 2012 to current,
Mr Wang is acting as the director of Mining Development Department of the China Metallurgical
Geological Bureau and has been the General Manager of ZIMC since May 2015.
Mr Dongfeng Zhang – Chairperson (Appointed 25 September 2019)
PhD Zhongnan University
Mr Zhang is currently the Chairperson of Zhengyuan International Mining Company Ltd (ZIMC). Prior to
joining ZIMC, Mr Zhang worked for many years as a Director and as an engineer including at the Institute
of Geology of the Third Bureau (1993-1997); at the Shanxi Office of the China Metallurgical Geological
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DIRECTORS’ REPORT
DIRECTORS’ PROFILES continued
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Bureau (1997-1998); as Vice President at the Geological Exploration Institute (1998-2002); as Deputy
Manager at the Shanxi Metallurgical Geotechnical Corporation (2006-2010). Mr Zhang then went on to
complete a PhD at Zhongnan University. Mr Zhang then return to serve as the Dean of the Third
Geological Exploration Institute of China Metallurgical Geology Bureau (2014-2017) and then as the
current Dean of Kunning Institute of China Metallurgical Geology Bureau.
Mr Yong Zhang - Non-Executive Director
B. Engineering (Shandong Construction College)
Mr Yong Zhang has had an extensive career in property development, real estate sales and investment.
Mr Zhang has extensive property interests in China with over 1,600 employees. Mr Zhang was
instrumental in securing the cornerstone investment in Zeus by China Metallurgical Geological Bureau,
via its subsidiary Zhengyuan International Mining Company Limited.
Mr Gregory Clifton Hall - Non-Executive Director
B. App Sc. (University of New South Wales)
Mr Greg Hall is a seasoned geologist with over 35 years of international experience. From 1988-2005, he
was employed by the Placer Dome group of companies, serving as Chief Geologist -World Wide during
the last five years he was there. Placer Dome was acquired by Barrick Gold Corporation in early 2006.
Over the course of his illustrious career, Mr Hall had a senior role in the discoveries of both Barrick Gold's
Granny Smith mine and Rio Tinto's Yandi iron ore mine. In addition, he took part in the discoveries of
Keringal and Wallaby in Australia's Eastern Goldfields, as well as the definition of AngloGold Ashanti's
Sunrise gold mine.
Other current appointments:
Great Boulder Resources Ltd (ASX:GBR) – Non-Executive Chairman
Dateline Resources Ltd (ASX:DTR) – Non-Executive Director
Mr Jiangang Zhao – Acting CEO and Director
BA Northwest A&F University
MA Research Institute for Fiscal Science
Mr Jiangang Zhao holds a Bachelor of Accounting, a Master of Finance and a Master of Accounting.
Presently, Mr Zhao is the Deputy Chief Financial Officer in the Department of Finance of Zhengyuan
International Mining Company Limited.
Mr Anthony Harris - Company Secretary
Mr Harris has almost 35 years’ experience in accounting and finance. He is a member of CAANZ and an
Associate of the Financial Services Institute of Australia.
Mr Harris has extensive experience generated from his diverse roles including a partnership role in public
practice, having co-founded a boutique investment bank with a focus to SME corporate finance advisory
services and in recent years a combination of CEO, COO and CFO roles across a number of sectors.
11
DIRECTORS’ REPORT
Environmental Regulations
The Company is subject to significant environmental regulations under legislation of the Commonwealth
of Australia. The Company aims to ensure that it complies with the identified regulatory requirements in
each jurisdiction in which it operates.
The Company is aware of its responsibility to impact as little as possible on the environment and, if and
when there, is any disturbance, to rehabilitate sites. During the period under review, there was no field
and exploration work carried out in Western Australia. When the Company does complete field and
exploration work, the work follows procedures and pursues objectives in line with guidelines published by
the WA State Government and granting of exploration license application conditions.
These guidelines are quite detailed and encompass the impact on owners and land users, heritage, health
and safety and proper restoration practices. The Company supports this approach and is confident that it
properly monitors and adheres to these objectives and any local conditions applicable.
During the period ended 30th June 2020 there have been no known material breaches of the
environmental obligations of the Company’s contracts or licenses. (2019: None).
Dividends
No dividends have been declared in respect of the year ended 30th June 2020 (2019: Nil)
Events subsequent to the end of the reporting period
Exploration and evaluation of potential tenements in Laos continue to be halted due to the COVID19
pandemic and subsequent the travel restrictions out of China and Australia.
The Directors are not aware of any other matter or circumstance not otherwise dealt with in the report or
in the financial statements that has significantly or may significantly affect the operations of the
Company, the results of those operations or the state of affairs of the Company in subsequent financial
years.
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DIRECTORS’ REPORT
Directors' interest
The Directors' beneficial interest in shares and options as at the date of this report are:
Mr Dongfeng Zhang 1
Mr Jiangang Zhao2
Mr Yong Zhang 3
Mr Gregory Clifton Hall4
Total
Shares
Direct
-
-
-
10,000
10,000
Options
Indirect
57,650,000
57,650,000
57,534,500
10,000
172,844,500
Total
57,650,000
57,650,000
57,534,500
20,000
172,854,500 Nil
-
-
-
-
1.
Mr Dongfeng Zhang is a director of Zhengyuan International Mining Company Ltd, which holds the relevant interest in
Zeus Resources. Shares held as a nominee director by Mr Wang subsequently transferred to Mr Zhang upon his appointment on
25th September 2019.
2.
exercise or control the exercise of the voting rights attached to the securities in Zeus Resources.
3.
Resources.
4.
Mr Gregory Clifton Hall controls Omaroo Pty Ltd ATF Hall Family Trust that owns shares in Zeus.
Mr Jiangang Zhao is a nominee director appointed to Zhengyuan International Mining Company Ltd and has power to
Mr Yong Zhang is a director of and controls Vast Honour Global Limited, which holds a direct relevant interest in Zeus
REMUNERATION REPORT (AUDITED)
This report details the nature and amount of remuneration for each key management personnel (KMP) of
the Company which includes directors and senior executives. KMP are those individuals that have the
authority and responsibility for planning, directing and controlling the activities of the Company.
Remuneration Policy
The board’s policy for determining the nature and amount of remuneration for board members and
senior executives of the Company is as follows:
The remuneration policy, setting the terms and conditions for the executive directors and other senior
executives, was developed and approved by the board. All executives receive remuneration based on
factors such as length of service and experience.
The board reviews executive packages annually by reference to the Company’s performance, executive
performance and comparable information from industry sectors and other listed companies in similar
industries. The objective of this policy is to secure and retain the services of suitable individuals capable
of contributing to the entity’s strategic objectives.
The remuneration framework the board established has three components:
-
-
-
Fixed remuneration consisting of base pay and benefits, including superannuation,
Short-term performance incentives and bonuses,
Long-term incentives through issuances of share options.
The combination of these comprises the executive's total remuneration.
Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, are reviewed
annually by the board, based on individual and business unit performance, the overall performance of the
entity and comparable market remunerations. Executives may receive their fixed remuneration in the
form of cash or other fringe benefits (for example motor vehicle benefits) where it does not create any
additional costs to the entity and provides additional value to the executive.
13
DIRECTORS’ REPORT
Remuneration Policy continued
The short-term incentives ('STI') program is designed to align the targets of the business units with the
targets of those executives responsible for meeting those targets. STI payments are granted to executives
based on specific annual targets and key performance indicators ('KPI's') being achieved. KPI's include
profit contribution, customer satisfaction, leadership contribution and product management.
The long-term incentives ('LTI') program comprises of share-based payments. Shares are awarded to
executives over a period of three years based on long-term incentive measures. These include increase in
shareholders’ value relative to the entire market and the increase compared to the entity's direct
competitors.
At issue date of this report there are no Key Management personnel have received “STI” or “LTI” benefits.
The board policy is to remunerate non-executive directors at market rates for comparable companies for
time, commitment and responsibilities. The Board determines payments to the non-executive directors
and reviews their remuneration annually, based on market practice, duties and accountability. The Board
does not currently link KMP or director’s remuneration to specific market-based goals or targets due to
stage of development of the Company’s projects or overall Company performance. Individual
performance-based goals are set by the Company to ensure that exploration, project evaluation and
administration tasks are performed efficiently and to the benefit of stakeholders.
The maximum aggregate amount of fees that can be paid to non-executive directors is subject to
approval by shareholders at the Annual General Meeting. The maximum aggregate amount for the
financial year ending 30th June 2020 was $15,000 to be paid to Mr Greg Hall. The other members of the
Board have adopted a policy decision made by the Board not to receive remuneration during the
financial year ended 30th June 2020.
Voting and comments made at the company's 2019 Annual General Meeting ('AGM')
At the 2019 AGM, adoption of the remuneration report for the year ended 30 June 2019 was approved by
the shareholders.
Additional Benefits
There are no additional benefits provided to Key Management Personnel as at the date of issue of this
report.
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DIRECTORS’ REPORT
Key Management Personnel (KMP) Payments & Benefits
Your directors, company secretary and key management personnel received the following payments/
benefits for services for the year ended 30 June 2020 as indicated below:
Senior Officers
Short-term benefits
Post-Employment Benefits
Long-term
benefits ($)
Total
Share
option
benefits
Cash Salary
and Fees
Bonuses
Super-
annuation
Termination
payments
Long service
leave
$
$
$
$
$
$
$
Anthony Harris
(Company Secretary)
2019
2020
Shelley Peters
(Company Secretary)
2019
2020
Andrew Rust
(Exploration Manager)
2019
2020
Total 2019
Total 2020
10,000
24,000
18,000
-
3,560
4,250
31,560
28,250
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10,000
24,000
18,000
-
3,560
4,520
31,560
28,250
Non-Executive Directors and
Directors
Short-term benefits
Post-Employment Benefits
Long-term
benefits ($)
Share option
benefits
Total
Cash Salary
and Fees
Bonuses
Superannuation
Termination
payments
Long service
leave
$
$
$
$
$
$
$
Gregory Clifton Hall1 (Non-
Executive Director)
2019
2020
Mr Dongfeng Zhang
(Chairperson)
2019
2020
Mr Jiangang Zhao (Acting CEO
& Director)
2019
2020
Mr Yong Zhang (Non –
Executive Director)
2019
2020
Total 2019
Total 2020
15,000
15,000
-
-
-
-
-
-
15,000
15,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1Relates to payments of invoices to Golden Phoenix International Pty Ltd ATF Golden Phoenix International Unit Trust
15,000
15,000
-
-
-
-
-
-
15,000
15,000
-
-
-
-
-
-
-
-
-
-
15
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DIRECTORS’ REPORT
The total of remuneration paid to the KMP of the Company during the year are as follows:
Short-term employee benefits/Fees
Total KMP compensations
Remuneration and Earnings additional information
Year Ended
30-Jun-2020
$
Year Ended
30-Jun-2019
$
43,250
43,250
46,250
46,250
The Board does not currently link KMP or director’s remuneration to specific market-based goals or
targets due to stage of development of the Company’s projects or overall Company performance.
However, to conserve cash the Company has reduced payments to Key Management Personnel (KMP)
over the preceding five-year period. The Company has not awarded any short-term or long-term
incentives to KMP as of the date of this report or over the preceding five-year period. The reduction of
fixed remuneration payments made to KMP, instigated by the Board, is indicated in the table below:
Key Management Payments & Benefits and Company Results
KMP
30-Jun-2020
30-Jun-2019
30-June-2018
30-June2017
30-Jun-2016
$
$
$
$
$
Mr Chuanxi Ding -Non-Executive Director and
Chairperson
Mr Shouyin Wang -Non-Executive Director and
Chairperson
Mr Dongfeng Zhang - Non-Executive Director and
Chairperson
Mr Jiangang Zhao -Executive Director and Acting
CEO
Mr Yong Zhang -Non-Executive Director
-
-
-
-
-
-
-
-
-
-
-
-
-
50,000
50,000
62,500
-
-
-
30,000
57,000
74,333
30,000
30,000
38,334
Gregory Clifton Hall - Non-Executive Director
15,000
15,000
30,000
30,000
38,333
Mr John Higgins-Exploration Manager
Mr Warrick Client - Exploration Manager
-
-
--
-
-
-
-
144,597
26,983
18,840
Mr Andrew Rust - Exploration Manager
4,250
3,560
10,360
Mr Andrew Whitten - Company Secretary
Ms Shelley Peters - Company Secretary
-
-
-
-
-
30,172
18,000
26,000
26,500
9,655
Mr Anthony Harris - Company Secretary
24,000
10,000
-
-
-
Total
43,250
46,560
176,360
220,483
511,765
16
DIRECTORS’ REPORT
Additional Information
The earnings of the Company for the five years to 30 June 2020 are as follows
Earnings of the
company
30-Jun-2020
30-Jun-2019
30-June-2018
30-June-2017
30-Jun-2016
$
$
$
$
$
Interest Income
15,866
36,572
44,012
81,209
108,851
EBITDA
EBIT
(812,720)
(257,214)
(523,233)
(1,329,120)
(2,186,565)
(833,161)
(257,214)
(523,233)
(1,329,120)
(2,186,565)
Loss after income tax
(834,620)
(261,510)
(528,593)
(1,336,688)
(2,206,987)
The factors that are considered to affect total shareholders return are as follows:
Factor
Share Price at financial
year end (cents)
Total Dividends Declared
(cents)
Basic Earnings per share
(cents)
30-Jun-2020
30-Jun-2019
30-June-2018
30-June2017
30-Jun-2016
$
0.8
-
$
0.8
-
$
1.4
-
$
1.3
-
$
2.1
-
(0.46)
(0.15)
(0.29)
(0.74)
(1.23)
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DIRECTORS’ REPORT
Key Management Personnel Interests as at 30 June 2020:
The number of ordinary shares held by each KMP of the Company at the end of the reporting period is as
follows:
Name
Shares held
Direct
Indirect
Balance at
start of Year
Received as part
of Remuneration
Additions Disposals
Balance at end
of Year
-
-
-
-
57,650,000
57,650,000
57,650,000
57,650,000
Mr Dongfeng Zhang1
Mr Shouyin Wang 2
Mr Jiangang Zhao 3
Mr Yong Zhang 4
Gregory Clifton Hall 5
Total
1. Mr Zhang holds shares as a nominee director appointed by Zhangyuan Internantional Mining Company and has power to exercise or control the voting
rights attached to the securities in Zeus (previously held by Mr Wang and transferred to Mr Zhang upon his appointment on 25th September 2019).
2. Mr Wang shares held as a nominee director appointed by Zhengyuan International Mining Company Ltd and has power to exercise or control the voting
rights attached to the securities in Zeus until his resignation on 25th September 2019 (previously held by Mr Ding and transferred to Mr Wang upon his
appointment on 30th July 2015).
10,000
172,844,500
20,000
172,854,500
10,000
10,000
57,534,500
57,650,000
57,534,500
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
20,000
172,854,500
57,650,000
57,534,500
57,650,000
-
3. Mr Jiangang Zhao as a nominee director appointed by Zhengyuan International Mining Company Ltd and has power to exercise or control the voting
rights attached to the securities in Zeus.
4. Mr Zhang Yong is a director of and controls Vast Honour Global Limited, which holds a direct relevant interest in Zeus.
5. Mr Gregory Clifton Hall controls Omaroo Pty Ltd ATF Hall Family Trust that owns shares in Zeus.
Other transactions with key management personnel and their related parties:
During the financial year, no payments (2019: nil) were made to ZIMC in relation of fees appointed nominee
directors, acting CEO and Chairperson. As at 30th June 2020 there was nil payable and due to ZIMC for the
aforementioned fees (2019: nil).
During the financial year, payments amounting to $16,500 (2019: $12,375) were made to Golden Phoenix
International Unit Trust in relation to the director’s fees of Mr Greg Hall. As at 30th June 2020 there was $5,750
payable and due to Golden Phoenix International Unit Trust for the afore mentioned fees (2019: $4,125).
During the financial year, no payments (2019: nil) were made to Heng Ji Pty Ltd in relation to director’s fees of
Mr Yong Zhang. As at 30th June 2020 there was nil was payable to Heng Ji Pty Ltd for the aforementioned
fees (2019: nil).
(This is the end of the audited remuneration report).
18
DIRECTORS’ REPORT
Directors’ meetings
The number of directors’ meetings of Zeus Resources Limited (including by way of circular resolution)
held during the year ended the 30th June 2020 and the numbers of meetings attended by each director
are as follows:
Director
Mr Gregory Clifton Hall
Mr Jiangang Zhao
Mr Yong Zhang
Mr Shouyin Wang
Mr Dongfeng Zhang
Directors' Meetings
Eligible to attend
Attended
2
2
2
0
2
2
2
2
0
2
Indemnity and insurance of officers
During the financial period the Company did not accept the proposal from their underwriters to insure all
directors and officers of the Company due to the cost of the policy.
Indemnity and insurance of auditors
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify
the auditor of the Company or any related entity against a liability incurred by the auditor.
Non-audit services
Our appointed auditors, William Buck, did not provide any non-audit services during the year ended 30th
June 2020 (2019: Nil).
Proceedings on behalf of The Company
No person has applied to the Court for leave to bring proceedings on behalf of the Company or
intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on
behalf of The Company for all or any of those proceedings. The Company was not a party to any such
proceedings during the year.
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19
DIRECTORS’ REPORT
Auditor independence declaration
The lead auditor’s independence declaration as required under section 307C of the Corporations Act 2001
for the year ended 30th June 2020 has been received and can be found on page 21 of this annual report.
Signed in accordance with a resolution of the Board of Directors.
Mr. Jiangang Zhao
Director and Acting CEO
Dated this 29th day of September 2020
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20
Zeus Resources Limited
Auditor’s independence declaration under section 307c of
the Corporations Act 2001
I declare that, to the best of my knowledge and belief during the year ended 30 June 2020
there have been:
— no contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
— no contraventions of any applicable code of professional conduct in relation to the
audit.
William Buck
Accountants & Advisors
ABN 16 021 300 521
Rainer Ahrens
Director
Dated this 29th day of September, 2020
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ACCOUNTANTS & ADVISORSSydney Office Level 29, 66 Goulburn Street Sydney NSW 2000Parramatta Office Level 7, 3 Horwood Place Parramatta NSW 2150Telephone: +61 2 8263 4000williambuck.comWilliam Buck is an association of firms, each trading under the name of William Buck across Australia and New Zealand with affiliated offices worldwide. Liability limited by a scheme approved under Professional Standards Legislation. (WB013_2007)
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STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME FOR THE YEAR ENDED 30 JUNE 2020
Notes
Year ended
30-Jun-20
Year ended
30-Jun-19
$
$
15,866
36,572
Interest Income
Less expenses:
Corporate and administration costs
Accounting and audit fees
Company secretarial and compliance
Computers and communications
Directors' fees and expenses
Employee salaries and benefits
Insurance
Legal and consultants' fees
Rent and utilities
Share registry maintenance and listing fees
Exploration and evaluation costs
Project expenditure (net of capitalised expenditure)
Impairment
Business development
Travel and accommodation
Other expenses from ordinary activities
Depreciation
Finance costs
Other expenses
Total Expenses
Loss before income tax
Income tax expense
Loss for the year attributable to the Company
5
4a, 4b
2
64,671
29,240
7,684
49,839
22,501
2,935
4,000
25,771
33,345
5,032
574,090
67,435
29,224
7,875
35,787
9,718
19,421
6,000
47,016
35,730
5,158
-
4,941
28,615
20,442
1,458
4,537
850,486
(834,620)
-
(834,620)
4,296
-
1,807
298,082
(261,510)
-
(261,510)
Other comprehensive income
-
-
Total comprehensive loss for the year attributable to the
Company
(834,620)
(261,510)
Loss per share
Basic - per share
Diluted - per share
(0.0046)
(0.0046)
(0.0015)
(0.0015)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
22
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020
CURRENT ASSETS
Cash and cash equivalents
Other assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Exploration and evaluation assets
Property, plant and equipment
TOTAL NON-CURRENT ASSETS
CURRENT LIABILITIES
Trade and other payables
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Accumulated losses
TOTAL EQUITY
Notes
3
4a, 4b
5
6
7a, 7b
As at
30-Jun-20
$
1,138,805
71,863
1,210,668
As at
30-Jun-19
$
1,512,684
11,878
1,524,562
323,246
11,757
335,003
757,487
16,145
773,632
1,545,671
2,298,194
146,772
146,772
146,772
64,675
64,675
64,675
1,398,899
2,233,519
9
10
17,398,334
(15,999,435)
1,398,899
17,398,334
(15,164,815)
2,233,519
The above statement of financial position should be read in conjunction with the accompanying notes.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
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Balance at 1 July 2018
Comprehensive loss for the year
Balance at 30 June 2019
Balance at 1 July 2019
Comprehensive loss for the year
Balance at 30 June 2020
Contributed
Equity
$
Accumulated
Losses
$
Total
$
17,398,334
(14,903,305)
2,495,029
-
(261,510)
(261,510)
17,398,334
(15,164,815)
2,233,519
17,398,334
(15,164,815)
2,233,519
-
(834,620)
(834,620)
17,398,334
(15,999,435)
1,398,899
The above statement of changes in equity should be read in conjunction with the accompanying notes.
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STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
Notes
Year ended
30-Jun-2020
$
Year ended
30-Jun-2019
$
CASH FLOW FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Payments for taxes
Interest received
Interest paid
Net cash used in Operating Activities
CASH FLOW FROM INVESTING ACTIVITIES
Payments for exploration and evaluation
Payments for plant and equipment
Net cash used in Investing Activities
CASH FLOW FROM FINANCING ACTIVITIES
Payments for lease
Net cash provided by financing activities
10
Net decrease in cash and cash equivalents held
Cash at beginning of financial year
Cash and Cash Equivalents at end of financial year
10
(231,812)
459
18,414
(1,458)
(214,397)
(144,880)
-
(144,880)
(14,602)
(14,602)
(373,879)
1,512,684
1,138,805
(339,760)
(2,224)
36,572
-
(305,412)
(154,475)
(2,563)
(157,038)
-
-
(462,450)
1,975,134
(1,512,684
The above statement of cash flow should be read in conjunction with the accompanying notes.
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25
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1: SIGNIFICANT ACCOUNTING POLICIES
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The principal accounting policies adopted in the preparation of these financial statements are set out
below. These policies have been consistently applied to all the years presented, unless otherwise stated.
The financial statements have been approved by the board on the date of signing.
The principal activity of the Company during the year was the exploration for uranium and other base
metals. The Company operates as a for profit entity.
A. Basis of accounting
This general-purpose financial report has been prepared in accordance with the requirements of the
Corporations Act 2001 and Australian Accounting Standards and Interpretations issued by the Accounting
Standards board.
(i) Compliance with IFRS:
The financial statements also comply with International Financial Reporting Standards (IFRS) as
issued by the International Accounting Standards Board (IASB),
(ii) Historical Cost Convention:
These financial reports are prepared under the historical cost convention.
(iii) Critical Accounting Estimates:
The presentation of financial statements requires the use certain critical accounting estimates. The
Company also requires management to exercise its judgement in the process of applying the
accounting policies. The areas involving a high degree or judgement or complexity or areas where
assumptions and estimates are significant to the financial statements is disclosed later. See part G.
(iv) Foreign currency transactions and balances:
Items included in the financial statements are measured using Australian Dollars (functional currency
of Zeus Resources Ltd).
Changes in Accounting Policies
The Company has adopted all of the new and revised Standards and Interpretations issued by the
Australian Accounting Standards Board (AASB) that are relevant to their operations and effective for the
current year. The Company adopted AASB 16 during the financial year ended 30 June 2020. The
adoption and implementation of AASB16 did not significantly impact the financial statements due to low
value nature of the leases and short term (less than 2 years).
B. Income tax
The charge for current income tax expense is based on the profit for the year adjusted for any
non-assessable or disallowed items. It is calculated using tax rates that have been enacted or are
substantively enacted at the end of the reporting period.
Deferred tax is accounted for using the liability method in respect of temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No
deferred income tax will be recognised from the initial recognition of an asset or liability where there is no
effect on accounting or taxable profit or loss.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is
realised or liability is settled. Deferred tax is credited in the statement of statement of profit or loss and
other comprehensive income except where it relates to items that may be credited directly to equity, in
which case the deferred tax is adjusted directly against equity.
26
NOTES TO THE FINANCIAL STATEMENTS
Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be
available against which deductible temporary differences can be utilised.
The amount of benefits brought to account or which may be realised in the future is based on the
assumption that no adverse change will occur in income taxation legislation and the anticipation that the
Company will derive sufficient future assessable income to enable the benefit to be realised and comply
with the conditions of deductibility imposed by the law.
C. Financial instruments
Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks and other short-term
highly liquid investments with original maturities of three months or less.
Payables
Payables represent liabilities for goods and services provided to the Company prior to the end of the
financial year which are unpaid. The amounts are unsecured and are generally settled between 7 days and
90 days terms.
D. Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of
a past event and it is probable that the Company will be required to settle the obligation and a reliable
estimate can be made of the amount. If the effect of time value of money is material, provisions are
discounted at a rate that reflects the risks specific to the liability.
E. Goods and Services Tax (GST)
Income, expenses and assets are recognised net of the amount of GST, except where the amount of GST
incurred is not recoverable from the Australian Taxation Office. In these circumstances, the GST is
recognised as part of the cost of acquisition of the asset or as part of the item of the expense. Receivables
and payables in the statement of financial position are shown inclusive of GST.
The GST components of cash flows arising from investing or financing activities which are recoverable
from, or payable to the taxation authority, are presented as operating cash flows. Cash flows are
presented in the statement of cash flows on a gross basis.
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NOTES TO THE FINANCIAL STATEMENTS
F. Exploration and evaluation expenditure policy
Exploration and evaluation expenditure comprise of costs that are directly attributable to:
• researching and analysing existing exploration data;
• conducting geological studies, exploratory drilling and sampling;
• construction of access roads where necessary for exploration drilling;
• examining and testing extraction and treatment methods; and
• compiling pre-feasibility and feasibility studies.
Exploration and evaluation expenditure also include the costs incurred in acquiring mineral rights, the
entry premiums paid to gain access to areas of interest and amounts payable to third parties to acquire
interests in existing projects.
Capitalisation of exploration expenditure commences when there is a reasonable level of confidence in
the project’s viability and hence it is probable that future economic benefits will flow to the Company.
Capitalised exploration expenditure is reviewed for impairment at the end of the reporting period.
Subsequent recovery of the resulting carrying value depends on successful development of the area of
interest or sale of the project. If a project does not prove viable, all unrecoverable costs associated with
the project and the related impairment provisions are written off.
Undeveloped properties are mineral concessions where the intention is to develop and go into
production in due course. The carrying values of assets are reviewed annually by management and the
results of these reviews are reported to the Board and is assessed based on a status report regarding Zeus
Resources intentions for development of the undeveloped property. Reviews are performed using the fair
value less cost to sell method.
G. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts in the financial statements. Management continually
evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, income and
expenses. Management bases its judgements, estimates and assumptions on historical experience and on
other various factors, including expectations of future events, management believes to be reasonable under
the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual
results. The judgements, estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next
financial year are discussed below.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the Company considers it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the basis that the Company will commence
commercial production in the future, from which time the costs will be amortised in proportion to the
depletion of the mineral resources. Key judgements are applied in considering costs to be capitalised which
includes determining expenditures directly related to these activities and allocating overheads between
those that are expensed and capitalised. In addition, costs are only capitalised that are expected to be
recovered either through successful development or sale of the relevant mining interest. Factors that could
impact the future commercial production at the mine include the level of reserves and resources, future
technology changes, which could impact the cost of mining, future legal changes and changes in
commodity prices. To the extent that capitalised costs are determined not to be recoverable in the future,
they will be written off in the period in which this determination is made.
28
NOTES TO THE FINANCIAL STATEMENTS
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H. Income Recognition
(i) Interest earned
Income from interest earned on investments is recognised on a time proportion using the effective
interest rate method.
(ii) Net gains on disposal of assets, which is recognised as at the date the control of the asset passes
from the company.
I. Contributed equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares
or options are shown in the equity division of the statement of financial position as a deduction net of any
tax, from the proceeds. Incremental costs directly attributable to the issue of new shares or options for
the acquisition of a business are not included in the cost of acquisition as part of the purchase
consideration and are expensed as incurred.
J. Property, plant and equipment
(i)
Acquisition
Items of property, plant and equipment are recorded at historical cost and, are depreciated as
outlined below. Historical cost includes expenditure that is directly attributable to the acquisition of
the items. Subsequent costs are included in the asset’s carrying amount or recognised as a separate
asset, as appropriate, only when it is probable that future economic benefits associated with the
item will flow to the Company and the cost of the item can be measured reliably. Repairs and
maintenance are charged to the statement of profit or loss and other comprehensive income
during the period in which they are incurred.
(ii)
Depreciation and amortisation
The following indicates the depreciation method for plant and equipment on which the
depreciation charges are based:
- straight-line basis over their useful operating life
- Plant and equipment other than computers – five years
- Plant and equipment - computers – three years
- Furniture & fittings – ten years
- Leasehold Improvements – term of lease.
K. Earnings per share
(i) Basic earnings per share
Basic earnings per share is determined by dividing net loss after income tax attributable to
members of the Company, excluding any costs of servicing equity other than ordinary shares, by
the weighted average number of ordinary shares outstanding during the financial year, adjusted
for bonus elements in ordinary shares issued during the year.
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per
share to take into account the after income tax effect of interest and other financing costs
associated with dilutive potential ordinary shares and the weighted average number of shares
assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.
29
NOTES TO THE FINANCIAL STATEMENTS
L.
Impairment of Non-Financial Assets
At the end of each reporting period, the Company reviews the carrying values of its tangible and
intangible assets to determine whether there is any indication that those assets have been impaired. If
such an indication exists the recoverable amount of the asset, being the higher of the asset’s fair value
less costs to sell and value in uses, is compared to the asset’s carrying value. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risk specific to the asset for which
the estimates of future cash flows have not been adjusted.
Any excess of the asset’s carrying value over its recoverable amount is expensed to the statement of profit
and loss and other comprehensive income. Impairment testing is performed annually for goodwill and
other intangible assets not yet available for use. Where it is not possible to estimate the recoverable
amount of an individual asset the Company estimates the recoverable amount of the cash-generating unit
to which the asset belongs.
M. Employee Benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave
expected to be settled wholly within 12 months of the reporting date are recognised in current liabilities
in respect of employees' services up to the reporting date and are measured at the amounts expected to
be paid when the liabilities are settled.
The liability for annual leave and long service leave not expected to be settled wholly within 12 months of
the reporting date, when it arises, will be recognised in non-current liabilities, provided there is an
unconditional right to defer settlement of the liability. The liability is measured as the present value of
expected future payments to be made in respect of services provided by employees.
N. Farm-out arrangements
The Company does not record any expenditure made by the farmee on its account. It also does not
recognise any gain or loss on its exploration and evaluation farm-out arrangements but designates any
costs previously capitalised in relation to the whole interest as relating to the partial interest retained.
Any cash consideration received from a farmee is credited directly against previously capitalised purchase
values in relation to the whole interest previously and with any excess account for by the farmor as a gain
on disposal.
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NOTES TO THE FINANCIAL STATEMENTS
O. Right-of-use Assets
Initial Measurement - A right-of-use asset is initially measured at cost comprising the initial
measurement of the lease liability adjusted for any lease payments made before the commencement
date (reduced by lease incentives received), plus initial direct costs incurred in obtaining the lease and
an estimate of costs to be incurred in dismantling and removing the underlying asset, restoring the
site on which it is located or restoring the underlying asset to the condition required by the terms and
conditions of the lease. .
Subsequent Measurement - A right-of-use asset is subsequently measured at cost less any
accumulated depreciation and adjusted for any remeasurement of the corresponding lease liability.
Depreciation: Right-of-use assets are depreciated over the shorter of the lease term and the useful life
of the asset. The estimated useful lives are as follows:
-
-
Equipment Leases: Term of Lease
Premises Leases: Term of Lease
P. Lease Liabilities
Initial Measurement - A lease liability is initially recognised at the commencement day and measured
at an amount equal to the present value of the lease payments during the lease term that are not yet
paid. The provision for any restoration costs or make good is recognised as a separate liability.
Subsequent Measurement – A Lease liability is subsequently measured at initial measurement less any
subsequent lease payments and adjusted for any remeasurement of the corresponding right-of-use
asset.
Payments: - lease payments are classified consistently with payments on other financial liabilities:
-
The part of the lease payment that represents cash payments for the principal portion of the lease
liability is presented as a cash flow resulting from financing activities.
The part of the lease payment that represents interest portion of the lease liability is presented as
an operating cash flow.
-
The duration of the lease liability shall be equivalent to the term of the lease at initial recognition.
Q. Accounting Standards and Interpretations for application in future periods
Australian Accounting Standards and Interpretations that have recently been issued or amended but are
not yet mandatory, have not been early adopted by the Company for the annual reporting period ended
30 June 2020. The Company's assessment of the impact of these new or amended Accounting Standards
and Interpretations, most relevant to the Company, are set out below.
AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets
between an Investor and its Associate or Joint Venture The amendments clarify that a full gain or loss is
recognised when a transfer to an associate or joint venture involves a business as defined in AASB 3
Business Combinations. Any gain or loss resulting from the sale or contribution of assets that does not
constitute a business, however, is recognised only to the extent of unrelated investors’ interests in the
associate or joint venture. Application date 1 January 2022.
Other amendments but not yet effective:
AASB 2018-6 Amendments to Australian Accounting Standards – Definition of a business.
AASB 2017-7 Amendments to Australian Accounting Standards – Definition of material.
AASB 2019-1 Amendments to Australian Accounting Standards – Revisions to the conceptual
framework.
AASB2019-5 Amendments to Australian Accounting Standards – Disclosure of the effect of new IFRS
Standards not yet issued in Australia.
(Above are effective for annual reporting periods beginning on or after 1 January 2020)
The Company has reviewed the proposed amendments and does not expect the abovementioned
amendment to significantly impact future or past financial statements.
31
NOTES TO THE FINANCIAL STATEMENTS
Q. Going Concern
For the financial year ended 30th June 2020 the Company recorded a loss of $834,620 (2019: $261,510).
Net cash outflows from operating activities amounted to $214,397 (2019: $305,412) and maintained net
assets of $1,398,899 (2019:2,233,519) which was mainly representative of cash and tenement assets. The
Since listing the Company has not yet reported profitable operations. The board is closely monitoring
the remaining tenements and controlling cash outflows on these tenements and operational activities.
The current position of the Company points towards material uncertainty and, if not addressed, may cast
doubt about the Company’s ability to continue as a going concern.
The financial statements have been prepared on the basis that the Company is a going concern which
predicates ongoing normal business activity, realisation of assets and settlements of liabilities in the
normal course of business over the next 12 months’ period for the following reasons:
-
-
-
The Board performs continuous assessment on the recoverability of tenements held at each
reporting period; and
The Board has prepared a detail cash flow for the next 24 months which reflects the Company’s
ability to pay debts as and when the fall due; and
The Board is continuing to pursue the opportunity to establish a profitable gold exploration
base in Laos.
If the Company is unsuccessful I these endeavours, it may not be able to continue as a going concern
and it would be required to realised it assets and discharge its liabilities other than in the course of
ordinary business and the amounts realised may differ from those stated in these financial statements.
This financial report does not include any adjustments relating to the recoverability and the classification
of recorder asset amounts or liabilities that might be necessary should the Company not continue as a
going concern.
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NOTES TO THE FINANCIAL STATEMENTS
NOTE 2: INCOME TAX EXPENSE
(a) Income Tax Benefit/(Expense)
Current Income Tax
Current Income tax benefit/(expense)
(b) Deferred income tax
Deferred tax assets not brought to account (gross)
Tax losses
Temporary differences
Total deferred tax assets not brought to account
(c) Amounts Charged or Credited Directly to Equity
Share Issue Costs
Share based payments expense
Total deferred tax assets Charged or Credited Directly to Equity
(d) Numerical Reconciliation of Income Tax Benefit to Prima Facie
Tax Payable
Loss Before Income Tax
Prima facie income tax credit on loss at 27.5%
Tax effect of:
-
-
Current year tax losses not brought to account
Non-allowable expenditure for tax purposes
Provisions and prepayments brought to account
30-Jun-20
$
30-Jun-19
$
-
-
-
-
(4,695,273)
(58,576)
-
(4,753,849)
(4,625,547)
(69,726)
-
(4,695,273)
-
-
-
-
(834,620)
(261,510)
(229,520)
(69,726)
163,496
7,449
(58,576)
1,181
1,008
(69,726)
The tax losses and deferred tax assets do not expire under current tax legislation. Deferred tax assets have
not been recognised in respect of these items because it is not yet probable that future taxable profit will
be available against which the Company can utilise the benefits. The benefit of these tax losses will only
be obtained if:
-
-
The company continues to comply with the conditions for deductibility imposed by tax legislation;
and
The Company derives future assessable income of a nature and of an amount sufficient to enable
the benefit from the deductions for the losses to be realised.
- No changes in tax legislation adversely affects the Company realising the benefit from the
deductions for the losses.
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33
NOTES TO THE FINANCIAL STATEMENTS
NOTE 3: CASH AND CASH EQUIVALENTS
Cash Transaction Account
Cash Management Account
Term deposits 30-180 days
Cash on hand
Total
See also Note 10: Cash Flow
NOTE 4a: OTHER ASSETS
Current
Bond paid for lease
Interest receivable
GST receivable
Total Other assets
NOTE 4b: RIGHT OF USE
Current
Right of use asset
Accumulated depreciation
Total Right of use assets
30-Jun-2020
$
30-Jun-2019
$
91,686
277,079
770,040
-
1,138,805
45,322
50,326
1,416,476
560
1,512,684
30-Jun-2020
30-Jun-2019
$
$
8,970
359
1,753
11,023
8,970
2,908
-
11,878
30-Jun-2020
30-Jun-2019
$
$
76,776
(15,995)
60,781
-
-
-
Lease of office premises in North Sydney executed February 2020 for a term of 1 year plus an option to extend for 1
year.
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NOTES TO THE FINANCIAL STATEMENTS
NOTE 5: EXPLORATION AND EVALUATION ASSETS –
NON-CURRENT
30-Jun-2020
$
30-Jun-2019
$
Area of Interest:
Wiluna (Lakes Way)
Opening Balance
Capitalised Costs
Impairment
Closing Balance
Gascoyne (Red Rock and Mortimer Hills)
Opening Balance
Capitalised Costs
Impairment
Closing Balance
Narnoo (North and South)
Opening Balance
Capitalised Costs
Impairment
Closing Balance
481,765
41,571
(435,408)
87,928
172,941
23,911
(88,354)
108,498
102,781
74,367
(50,328)
126,820
349,168
132,597
-
481,765
161,573
11,368
-
172,941
97,430
5,351
-
102,781
Total Exploration and Evaluation Assets
323,246
757,487
Valuation
The value of the Company interest in exploration expenditure is dependent upon:
the continuance of the Company’s rights to tenure of the areas of interest;
the results of future exploration; and
the recoupment of costs through successful development and exploitation of the areas of interest,
or by their sale.
-
-
-
The Company’s exploration properties may be subjected to claim(s) under Native Title (or jurisdictional
equivalent) or contain sacred sites, or sites of significance to the indigenous people of Australia.
As a result, exploration properties or areas within the tenements may be subject to exploration
restrictions, mining restrictions and/or claims for compensation. As of the date of this Annual Report it
was not possible to quantify whether such claims exist, or the quantum of such claims.
Impairment Losses
Impairment losses of $574,090 were recognised for the year against tenements that the Company holds
(2019: nil). The list of tenements in which the Company has an interest is disclosed on page 50.
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NOTES TO THE FINANCIAL STATEMENTS
NOTE 6: PLANT, EQUIPMENT, FURNITURE & FITTINGS
Plant & Equipment – at cost
Accumulated depreciation
Total Plant and Equipment
Movements during the year:
Opening Balance
Additions during the year
Disposals during the year
Closing Balance
Depreciation
Opening balance
Charge during the year
Charge Back during the year
Closing depreciation
Net book value
Furniture & Fittings – at cost
Accumulated depreciation
Total Furniture and Fittings
Movements during the year:
Opening Balance
Disposals during the year
Closing Balance
Depreciation
Opening balance
Charge during the year
Closing depreciation
Net Book Value
Total Net Book Value
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30-Jun-2020
30-Jun-2019
$
$
55,100
(46,929)
8,171
55,110
-
-
55,100
55,100
(44,068)
11,032
54,627
2,563
(2,090)
55,100
(44,069)
(43,505)
(2,860)
-
(46,929)
8,171
15,821
(12,235)
3,586
(2,654)
2,090
(44,069)
11,031
15,821
(10,707)
5,114
15,821
15,821
-
-
15,821
15,821
(10,707)
(1,528)
(9,065)
(1,642)
(12,235)
(10,707)
3,586
5,114
11,757
16,145
36
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NOTES TO THE FINANCIAL STATEMENTS
NOTE 7a: TRADE AND OTHER PAYABLES
Trade creditors
Other payables
- Audit expenses
- Salaries, employee benefits and PAYG payable
- Annual and long service leave accruals
Total trade and other payables
30-Jun-2020
30-Jun-2019
$
$
18,412
26,159
3,004
37,132
84,707
27,679
18,000
791
18,205
64,675
NOTE 7b: OTHER CURRENT LIABILTIES
30-Jun-2020
30-Jun-2019
Lease Liability
Total other current liabilities
62,065
62,065
-
-
NOTE 8: CONTRIBUTED EQUITY
2020
(a) Ordinary Shares Number
Balance at the beginning of the year
Shares issued during the year
Balance at the end of the financial year
(b) Ordinary Shares Value
Balance at the beginning of the year
Shares issued during the year
Balance at the end of the financial year
2019
(a) Ordinary Shares Number
Balance at the beginning of the year
Shares issued during the year
Balance at the end of the financial year
(b) Ordinary Shares Value
Balance at the beginning of the year
Shares issued during the year
Number on
Issue
180,150,000
-
180,150,000
Value ($)
17,398,334
-
17,398,334
Number on
Issue
180,150,000
-
180,150,000
Value ($)
17,398,334
-
Ordinary Shares entitle the holder to participate in dividends and to share in the proceeds of winding up
the Company in proportion to the number of and amounts paid on the shares held.
Ordinary shares have no par value and the Company does not have a limited amount of authorized
Capital.
37
NOTES TO THE FINANCIAL STATEMENTS
NOTE 9: ACCUMULATED LOSSES
30-Jun-2020
30-Jun-2019
$
$
Accumulated losses at the beginning of the financial year
(15,164,815)
(14,903,305)
Net loss attributable to members of the entity
Accumulated losses at the end of the financial year
(834,620)
(261,510)
(15,999,435)
(15,164,815)
NOTE 10: STATEMENT OF CASH FLOW INFORMATION
Cash at bank
Term deposit
Cash
Total
30-Jun-2020
$
368,765
770,040
-
30-Jun-2019
$
95,648
1,416,476
560
1,138,805
1,512,684
Loss from ordinary activities after income tax
(834,620)
(261,510)
Add: Adjustment for non-cash items
- depreciation
- leave entitlement accrual
- investment expenses and provisions
- impairment and losses on disposed assets
Add: Changes in working capital
(Increase)/decrease in trade and other receivables
(Increase)/decrease in other assets
(Decrease) /Increase in trade payables
(Decrease) /Increase in other liabilities
(Decrease) /Increase in other payables
20,442
18,927
25,186
574,090
638,644
2,548
(75,982)
(9,265)
62,065
2,213
(18,421)
4,296
4,166
4,658
-
13,120
2,514
-
(58,104)
(2,224)
792
(57,022)
Cash outflow from operations
(214,397)
(305,412)
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NOTE 11: AUDITORS REMUNERATION
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Auditing or reviewing the financial reports by William Buck NSW
Total Auditors Remuneration
30-Jun-2020
$
30-Jun-2019
$
25,250
25,250
25,250
25,250
NOTE 12: SEGMENT INFORMATION
The Company’s operations are in one reportable business segment being the exploration of uranium and minerals.
The Company operates in one geographical segment being Australia.
38
NOTES TO THE FINANCIAL STATEMENTS
NOTE 13: RELATED PARTY TRANSACTIONS
30-Jun-2020
30-Jun-2019
Key Management Personnel
Refer to the remuneration report contained in the directors’ report for details of the remuneration paid or
payable to each member of the Company’s key management personnel (KMP) for the year ended 30 June
2020. The totals of remuneration paid to the KMP of the company during the year are as follows:
Short-term employee benefits/Fees
Total KMP compensations
$
43,250
43,250
$
46,560
46,560
Other transactions with related parties
During the financial year, no payments (2019: nil) were made to ZIMC in relation of fees appointed
nominee directors, acting CEO and Chairperson. As at 30th June 2020 there was nil payable and due to
ZIMC for the aforementioned fees (2019: nil).
During the financial year, payments amounting to $16,500 (2019: $12,375) were made to Golden Phoenix
International Unit Trust in relation to the director’s fees of Mr Greg Hall. As at 30th June 2020 there was
$5,750 payable and due to Golden Phoenix International Unit Trust for the afore mentioned fees (2019:
$4,125).
During the financial year, no payments (2019: nil) were made to Heng Ji Pty Ltd in relation to director’s
fees of Mr Yong Zhang. As at 30th June 2020 there was nil was payable to Heng Ji Pty Ltd for the
aforementioned fees (2019: nil).
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NOTES TO THE FINANCIAL STATEMENTS
NOTE 14: COMMITMENTS AND CONTINGENCIES
a) Commitments
30-Jun-2020
30-Jun-2019
$
$
The Company is required to meet minimum committed expenditure requirements to maintain current
rights of tenure to exploration licences. The minimum commitment of expenditure on each tenement
is determined by the Department of Mining and Petroleum. These obligations may be subject to re-
negotiation, may be farmed-out or may be relinquished and have not been provided for in the
statement of financial position. A summary of aggregate commitments is as follows:
Exploration Projects in Western Australia
Within 1 year
More than 1 year but not later than five years
More than five years
Total
152,489
825,836
-
246,000
1,859,000
-
978,325
2,105,000
b) Contingent assets and liabilities
Contingent liabilities
There are no contingent liabilities as at end of reporting period 30th June 2020 (2019: Nil).
Contingent assets
There are no contingent assets as at end of reporting period 30th June 2020 (2019: Nil).
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NOTES TO THE FINANCIAL STATEMENTS
NOTE 15: FINANCIAL RISK MANAGEMENT
The below table summarises interest rate receivable or payable for the Company:
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Effective Interest
Rate
Floating interest
rate amount
$
Non-
Interest
Bearing
$
Total
$
2.0%
0.0%
2.0%
0.0%
1,138,805
-
1,138,805
-
(146,772)
(146,772)
$
$
$
1,512,124
560
1,512,684
-
(64,675)
(64,675)
2020
Financial assets
Cash and cash equivalents
Financial liabilities
Trade and other payables
2019
Financial assets
Cash and cash equivalents
Financial liabilities
Trade and other payables
a) Credit risk
The Company has no significant concentrations of credit risk with debtors as the Company has not issued
any sales for services or products during the period ending 30th June 2020, hence the Company does not
insure any outstanding debts.
(b) Interest rate risk
Potential impact on post-tax loss:
Effective Interest rate -1%
Effective Interest rate +1%
30-Jun-2020
$
30-Jun-2019
$
(11,388)
11,388
(15,121)
15,121
The Company places surplus cash with the bank in term deposit of up 180 days. This rate can vary from
rollover period to rollover period. Exposure to variances in interest rates is not controlled by the
Company and returns are subject to current interest rates on offer by the banks at the time of rollover of
the term deposit(s).
(c) Liquidity risk
The Company’s principal financial assets are cash and short-term deposits. The Company has taken
steps to reduce risk of significant exposure to its cash holdings. Excess cash funds have been invested in
low risk Term Deposits with Bank of China (Australia) Ltd (account located in Australia and funds in
Australian dollars). The Company at the end of the financial year held 1 Term Deposits with Bank of
China for a total of $770,040. These funds are accessible without penalty with 30 days’ notice.
The Company’s principal financial liabilities comprise of accounts payable. The maximum risk for the
period ending 30th June 2020 extended to Trade creditors, other expenses and employee related
expenses amounting to $53,658 due to be paid within the next 90 days at a maximum. The Company
has sufficient funds to meet this requirement.
41
NOTES TO THE FINANCIAL STATEMENTS
NOTE 15: FINANCIAL RISK MANAGEMENT continued
(d) Management of Capital
The Company’s main objective when managing capital is to safeguard the Company’s ability to continue
as a going concern with the ultimate goal of providing returns for shareholders. The Company’s capital
consists of issued ordinary shares.
The Company currently has no loans or other borrowings that forms part of the capital structure and
therefore is not exposed to any financial covenants.
No changes are expected to be made to the capital structure in the near future, however it would be
expected that further development of tenements, future acquisitions or cash requirements to fund
operations will be funded by future capital raisings.
(e) Fair values
The financial assets and liabilities of the Company are recognised in the statement of financial position at
their carrying amount, which is a reasonable approximation of fair value in accordance with the
accounting policies in note 1.
(f) Risk Exposures and responses
The Company manages its exposure to financial risks in accordance with its management policies. The
Policy aims to protect the financial assets of the Company by ensuring that control of funds is not
compromised. Senior management is responsible for reducing risk-taking activities by introducing and
maintaining policies and risk management.
The Company seeks to have minimum exposure to market forces by maintaining low risk investment
strategies of cash reserves. The Company currently has no foreign exchange exposure and does not
foresee having any in the new future and therefore does not have a policy currently to address foreign
exchange risk.
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NOTES TO THE FINANCIAL STATEMENTS
NOTE 16: FARM-OUT ARRANGEMENTS
Farm-out arrangement
The Company, (farmor) entered into an agreement with Arrow Minerals Ltd (formerly Segue Resources Ltd
-farmee), in April 2016. The tenement in the agreement is known as E09/1618 – Mortimer Hills. Under the
agreement associated costs of exploration activities to meet with minimum commitment criterion set by
the Department of Mining and Petroleum (WA) will be met in return for 35% to 50% interest in the
tenement, dependent on the terms of the agreement being achieved. Arrow Minerals Ltd (“Arrow”) have
been appointed manager of the project.
As of the 15th May 2020 the manager of the project, Arrow Minerals Ltd, submitted an outright surrender
application to the DMP. Zeus Resources Ltd did not wish to retain any further ownership of this tenement
and therefore did not oppose the surrender. The Joint Venture agreement ceased to exist as of the date
of surrender.
NOTE 17: EARNINGS PER SHARE
Total comprehensive (loss) for the year
Number of shares on issue
Earnings per share
Basic – per share
Diluted – per share
30-Jun-2020
$
(834,620)
180,150,000
30-Jun-2019
$
(261,560)
180,150,000
(0.0046)
(0.0046)
(0.0015)
(0.0015)
NOTE 18: EVENTS AFTER THE END OF THE REPORTING PERIOD
Exploration and evaluation of potential tenements in Laos continue to be halted due to the COVID19
pandemic and subsequent the travel restrictions out of China and Australia.
The Directors are not aware of any other matter or circumstance not otherwise dealt with in the report
or in the financial statements that has significantly or may significantly affect the operations of the
Company, the results of those operations or the state of affairs of the Company in subsequent
financial years.
NOTE 19: COMPANY DETAILS
The registered office of the Company is:
Level 10, 171 Clarence Street
Sydney NSW 2000
The principal place of business of the Company is:
Level 1, Suite 105
25-27 Berry Street
North Sydney NSW 2060
43
DIRECTORS’ DECLARATION
In the Directors Opinion:
•
•
•
•
the attached financial statements and notes comply with the Corporations Act 2001, the
Accounting Standards, the Corporations Regulations 2001 and other mandatory professional
reporting requirements;
the attached financial statements and notes comply with International Financial Reporting
Standards as issued by the International Accounting Standards Board as described in Note 1 the
financial statements;
the attached financial statements and notes give a true and fair view of the Company’s financial
position as at 30 June 2020 and of its performance for the financial year ended on that date;
there are reasonable grounds to believe that the company will be able to pay its debts as and
when they become due and payable.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of Directors made pursuant to section 295(5)(a) of the
Corporations Act 2001.
Mr. Jiangang Zhao
Acting CEO and Director
Dated this 29th Day of September 2020
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Zeus Resources Limited
Independent auditor’s report to members
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Zeus Resources Limited (the Company), which
comprises the statement of financial position as at 30 June 2020, the statement of profit
and loss and other comprehensive income, the statement of changes in equity and the
statement of cash flows for the year then ended, and notes to the financial statements,
including a summary of significant accounting policies and the directors’ declaration.
In our opinion, the accompanying financial report of the Company, is in accordance with
the Corporations Act 2001, including:
(i)
(ii)
giving a true and fair view of the Company’s financial position as at 30 June
2020 and of its financial performance for the year then ended; and
complying with Australian Accounting Standards and the Corporations
Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our
responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Report section of our report. We are
independent of the Company in accordance with the auditor independence requirements
of the Corporations Act 2001 and the ethical requirements of the Accounting Professional
and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants
(including Independence Standards) [the Code] that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in
accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001,
which has been given to the directors of the Company, would be in the same terms if given
to the directors as at the time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Material Uncertainty Related to Going Concern
We draw attention to Note 1 in the financial report, which indicates that the Company
incurred a net loss of $834,620 (2019: $261,510) and incurred net cash outflows from
operating activities of $214,397 (2019: outflows $305,412) during the year ended 30 June
2020. As stated in Note 1, these events or conditions, along with other matters as set forth
in Note 1, indicate that a material uncertainty exists that may cast significant doubt on the
Company’s ability to continue as a going concern. Our opinion is not modified in respect of
this matter.
45
ACCOUNTANTS & ADVISORSSydney Office Level 29, 66 Goulburn Street Sydney NSW 2000Parramatta Office Level 7, 3 Horwood Place Parramatta NSW 2150Telephone: +61 2 8263 4000williambuck.comWilliam Buck is an association of firms, each trading under the name of William Buck across Australia and New Zealand with affiliated offices worldwide. Liability limited by a scheme approved under Professional Standards Legislation. (WB013_2007)
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Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
CARRYING VALUE OF EXPLORATION AND EVALUATION ASSETS
How our audit addressed it
Our audit procedures included:
— A review of the directors’ assessment of
the criteria for the capitalisation of
exploration expenditure and evaluation of
whether there are any indicators of
impairment to capitalised costs; and
— Challenging and testing the inputs into the
impairment calculations, including
tenement surrender rates and capitalised
expenditures on tenements; and
— Assessing the costs capitalised in the year
to test if they meet the requirements for
capitalisation in accordance with Australian
Accounting Standards; and
— A review of the integrity of the tenement
title status and total commitment value
through the Department of Mines and
Petroleum of the Government of Western
Australia.
We assessed the adequacy of the Company’s
disclosures in respect of the carrying value of
exploration and evaluation assets.
Area of focus
The Company has incurred exploration and
evaluation costs under its Uranium tenements
in Western Australia over a number of years.
During the 2020 financial year, the Company
has continued to capitalise exploration and
evaluation expenditure in relation to the current
tenements its holds.
There is a risk that accounting criteria
associated with the capitalisation of exploration
and evaluation expenditure may no longer be
appropriate to the remaining tenements and
that capitalised costs exceed the fair value less
selling cost.
An impairment review is only required if an
impairment trigger is identified.
Due to the nature of the Uranium industry,
indicators of impairment could include:
— Significant decrease seen in global
Uranium prices;
— Changes to exploration plans;
— Loss of rights to tenements;
— Changes in rights to tenements;
— Changes to reserve estimates;
— Costs of extraction and production; and
— Changing market forces in relation to
Uranium as a resource.
Other Information
The directors are responsible for the other information. The other information comprises the
information included in the Company’s annual report for the year ended 30 June 2020 but does not
include the financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly, we do not
express any form of assurance conclusion thereon.
46
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Company
to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the directors either intend to liquidate the Company or
to cease operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that
an audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of these financial statements is located at the
Auditing and Assurance Standards Board website at:
http://www.auasb.gov.au/auditors_responsibilities/ar2.pdf
This description forms part of our independent auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
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We have audited the Remuneration Report included in pages 13 to 18 of the directors’ report for the
year ended 30 June 2020.
In our opinion, the Remuneration Report of Zeus Resources Ltd, for the year ended 30 June 2020,
complies with section 300A of the Corporations Act 2001.
47
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in
accordance with Australian Auditing Standards.
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William Buck
Accountants & Advisors
ABN: 16 021 300 521
Rainer Ahrens
Director
Dated this 29th day of September, 2020
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TENEMENT SCHEDULE
Project
Sub Project
Licence
Number
Stat
e
Area
(blocks)
Licence
Expires
Comments
Wiluna
Lakes Way
E 53/1603
WA
Narnoo
Narnoo South
E 28/2097
WA
5
5
14 Feb 23
08 May 21
Gascoyne
Mortimer Hills
extension
E 09/2147
WA
15
09 Sep 22
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CORPORATE GOVERNANCE STATEMENT
Annexure B
ASX Corporate Governance Council Principles and Recommendations
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Verification Worksheet
Name of entity
ZEUS RESOURCES LIMITED
Recommendation
Financial year ended
30 JUNE 2020
The entity complied for the full
period
PRINCIPLE 1 – LAY SOLID FOUNDATIONS FOR MANAGEMENT AND OVERSIGHT
Yes
Yes
Yes
Yes
Yes
1.1 The Company has established and disclosed the functions
reserved to the board and those delegated to senior
executives.
1.2 The Company undertakes appropriate checks before
appointing a person for election as a director and provides
securityholders with all material information relevant to a
decision on electing a director.
1.3 The Company has a written agreement with each director
and senior executive setting out the terms of their
appointment.
1.4 The Company secretary of the listed Company is
accountable directly to the board, through the chair, on all
matters to do with the proper functioning of the board.
1.5 A listed entity should:
a) have a diversity policy which includes requirements
for the board or a relevant committee of the board
to set measurable objectives for achieving gender
diversity and to assess annually both the objectives
and the entity’s progress in achieving them;
b) disclose that policy or a summary of it; and
disclose as at the end of each reporting period the
measurable objectives for achieving gender diversity set by
the board or a relevant committee of the board in
accordance with the entity’s diversity policy and its
progress towards achieving them.
No
No
No
No
No
1.6 The Company should:
a) have and disclose a process for periodically
Yes
No
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CORPORATE GOVERNANCE STATEMENT
evaluating the performance of the board, its
committees and individual directors; and
b) disclose, in relation to each reporting period,
whether a performance evaluation was
undertaken in the reporting period in
accordance with that process.
1.7 The Company should:
a) have and disclose a process for periodically
evaluating the performance of its senior
executives; and
b) disclose, in relation to each reporting period,
whether a performance evaluation was
undertaken in the reporting period in
accordance with that process.
PRINCIPLE 2 - STRUCTURE THE BOARD TO ADD VALUE
2.1 2.1 The board should establish a nomination committee
which:
• has at least three members, a majority of whom
are independent directors; and
is chaired by an independent director
•
and disclose
•
•
•
the charter of the committee;
the members of the committee; and
the number of times the committee meet
throughout the reporting period.
If a listed entity does not have a nomination committee,
it should disclose the fact and processes it employs to
address board succession issues and to ensure that the
board has the appropriate balance of skills, knowledge,
experience, independence and diversity to enable it to
discharge its duties and responsibilities effectively.
2.2 A listed entity should disclose a board skills matrix
setting out the mix of skills and diversity that the Board
currently has or is looking to achieve its membership.
2.3 The Company has disclosed the names of the directors
considered to be independent, interests, positions and
associations that might cause doubts as to the
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Yes
Yes
Yes
Yes
No
No
No
No
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CORPORATE GOVERNANCE STATEMENT
independence of a director and the length of service of
each director.
2.4 The majority of the board are independent Directors.
2.5 The chair is an independent director and is not
exercising the role of chief executive officer.
2.6 The Company has a program for inducting new
directors.
PRINCIPLE 3 – ACT ETHICALLY AND RESPONSIBLY
3.1 A listed entity should have a code of conduct for its
directors, senior executives and employees and disclose
that code or a summary of the code.
PRINCIPLE 4 – SAFEGUARD INTEGRITY IN CORPORATE REPORTING
4.1 The board has established an audit committee which is
structured so that it:
• has at least three members;
•
consists only of non-executive directors, a
majority of whom are independent directors;
is chaired by an independent director who is not
the Chairman
•
And has disclosed:
•
•
•
the charter of the committee;
the qualifications of the committee;
the number of times the committee meets
throughout the reporting period
If no committee satisfying the above exists, it should
disclose that fact and the processes it uses to safeguard
the integrity of its reporting.
4.2 The Board has received from its CEO and CFO a
declaration that in their opinion, the financial records
have been properly maintained and comply with proper
standards.
4.3 An AGM should ensure that its external auditor attends
its AGM and is available to answer questions from
security holders relevant to the audit.
PRINCIPLE 5 – MAKE TIMELY AND BALANCED DISCLOSURE
5.1 The Company has established written policies designed
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
No
No
No
No
No
No
No
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CORPORATE GOVERNANCE STATEMENT
to ensure compliance with ASX Listing Rule disclosure
requirements and to ensure accountability at senior
executive level for that compliance and disclosed those
policies or a summary of those policies.
PRINCIPLE 6 – RESPECT THE RIGHTS OF SECURITY HOLDERS
6.1 The listed Company has provided information about
itself and its governance to investors via a website.
6.2 The listed Company has designed and implemented an
investor relations program to facilitate effective two-way
communication with investors.
6.3 The Company has designed a communications policy for
promoting effective communication with shareholders
and encouraging their participation at general meetings
and has disclosed their policy or a summary of that
policy.
6.4 The listed Company has provided the security holders
the option to receive communications from, and send
communications to, the entity and its security registry
electronically.
PRINCIPLE 7 – RECOGNISE AND MANAGE RISK
7.1 The board has established a risk committee, structured
so that it:
• has at least three members
•
consists only of non-executive directors, a
majority of whom are independent directors;
is chaired by an independent director who is not
the Chairman.
•
And has disclosed:
the charter of the committee;
•
• members of the committee;
•
the number of times the committee meet
throughout the reporting period.
If no committee satisfying the above exists, it should
disclose the fact and the processes it uses to safeguard
the integrity of its reporting.
7.2 The board has reviewed the Company’s risk
management framework at least annually and disclose
whether such review has taken place.
7.3 A listed entity should disclose if they have an internal
audit function, how the function is structured and what
role it performs. If the Company does not have an
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Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
No
No
No
No
No
No
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CORPORATE GOVERNANCE STATEMENT
internal audit function, the Company should disclose the
processes it employs for evaluating and continually
improving the effectiveness of its risk management and
internal control processes.
7.4 The Company has disclosed whether they have any
material exposure to economic, environmental and
social sustainability risks and, if they do, how they
manage or intend to manage those risks.
PRINCIPLE 8 – REMUNERATE FAIRLY AND RESPONSIBLY
8.1 The Board has established a remuneration committee,
structured so that it:
• has at least three members, a majority of whom
•
are independent directors; and
is chaired by an independent director who is not
the Chairman
And should disclose:
•
•
•
the charter of the committee;
the members of the committee;
the number of times the committee meet
throughout the reporting period.
If no committee satisfying the above exists, it should
disclose that fact and the processes it uses to safeguard
the integrity of its reporting.
8.2 The Company has disclosed their policies and practices
regarding the remuneration of executive directors and
other senior executives.
8.3 Companies which have an equity-based remuneration
scheme should:
• have a policy on whether participants are
permitted to enter into transactions (whether
use the use of derivatives or otherwise) which
limit the economic risk of participating in the
scheme; and
• disclose that policy or summary of it.
Yes
Yes
Yes
Yes
No
No
No
No
The role and responsibilities of the Board of Directors is for the overall Corporate Governance of the Company
and oversight of management, protecting the rights and interests of the shareholders, by adopting systems of
control and managed risk as the basis for the administration.
The Board is committed to maintaining high standards of Corporate Governance. Corporate Governance is
about having a set of core values and behaviours that underpin the Company's activities and ensure
transparency, fair dealing and protection of the interests of stakeholders.
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CORPORATE GOVERNANCE STATEMENT
The Board of Directors support the Principles of Good Corporate Governance and Best Practice
Recommendations developed by the ASX Corporate Governance Council (Council). Whilst the Company's
practices are partly consistent with the Council's guidelines, the Board considers that the implementation of
some recommendations are not appropriate having regard to the nature and scale of the Company's activities
and size of the Board. The Board uses its best endeavours to ensure exceptions to the Council's guidelines do
not have a negative impact on the Company and the best interests of shareholders as a whole. When Zeus is not
able to implement one of the Council’s recommendations the Company applies the “if not, why not” explanation
approach by applying practices in accordance with the spirit of the relevant principle.
The following discussion outlines the ASX Corporate Governance Council's eight principles and associated
recommendations and the extent to which the Company complies with those recommendations.
Details of all of the Council's recommendations can be found on the ASX website at http://www.asx.com.au
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CORPORATE GOVERNANCE STATEMENT
Principle 1 – Lay solid foundations for management and oversight
The Company has adopted Recommendation 1.1 to disclose the functions reserved to the Board and those
delegated to senior executives. This has been disclosed on the Company’s website.
BOARD OF DIRECTORS – ROLE AND RESPONSIBILITIES
In general, the Board is responsible for, and has the authority to determine, all matters relating to the policies,
practices, management and operations of the Company. The Board is also responsible for the overall corporate
governance and management oversight of the Company and recognises the need for the highest standards of
behaviour and accountability in acting in the best interests of the Company as a whole.
The Board also ensures that the Company complies with all of its contractual, statutory and any other legal or
regulatory obligations. The Board has the final responsibility for the successful operations of the Company.
Where the Board considers that particular expertise or information is required, which is not available from within
their members, appropriate external advice may be taken and reviewed prior to a final decision being made by
the Board.
Without intending to limit the general role of the Board, the principal functions and responsibilities of the Board
include the following:
•
formulation and approval of the strategic direction, objectives and goals of the Company;
the prudential control of the Company's finances and operations and the monitoring of the financial
performance of the Company;
the resourcing, reviewing and monitoring of executive management;
ensuring that adequate internal control systems and procedures exist and that compliance with these
systems and procedures is maintained;
the identification of significant business risks and ensuring that such risks are adequately managed;
the timeliness, accuracy and effectiveness of communications and reporting to shareholders and the
market; and
the establishment and maintenance of appropriate ethical standards.
•
•
•
ACCOUNTABILITY
The Company has complied with Recommendation 1.2 by undertaking background checks with regard to each
director’s character, experience and education prior to their nomination for election. Any material adverse
information revealed by these checks is released to securityholders prior to the General Meeting at which they
are able to be elected. When an individual is nominated to be a director, their curriculum vitae and their relevant
professional history and qualifications is circulated to the securityholders of the Company.
The Company has complied with Recommendation 1.3 by giving its Directors letters of appointment and/or
service agreements.
The Company has complied with Recommendation 1.4 by making the Company Secretary directly accountable
to the Board on all matters to do with the proper functioning of the Board.
DIVERSITY
The Company does not comply with Recommendation 1.5. The Company has not found it necessary to establish
a diversity policy or annually report on measurable objectives with respect to achieving gender diversity. The
nature of the policy for a Company of this size is inappropriate. As the Company develops, the Board intends to
review its practices, and if deemed necessary in the future, the Board may consider adopting a policy.
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CORPORATE GOVERNANCE STATEMENT
PERFORMANCE OF THE BOARD
The Company does not comply with recommendation 1.6. The Company has not found it necessary to disclose
the process for evaluating the performance of the Board and the Company’s Directors individually.
However, it is the policy of the Board to ensure that the Directors of the Company are equipped with the
knowledge and information they need to discharge their responsibilities effectively, and that individual and
collective performance is regularly and fairly reviewed. Although the Company is not of a size to warrant the
development of formal processes for evaluating the performance of its Board, individual Directors and
committees, there is on-going monitoring by the Chairman and the members of the Board.
The Chairman also speaks to Directors individually regarding their role as a Director.
ACCESS TO INFORMATION
Each Director has access to Board papers and all relevant documentation.
PERFORMANCE OF SENIOR EXECUTIVES
The Chief Executive Officer’s key performance indicators are set annually, with performance appraised by the
Board, and reviewed in detail by the Board at the annual anniversary of the appointment of the CEO.
The Company has adopted Recommendation 1.7 of evaluating the performance of senior executives in
accordance with the process described above with the appointment of the CEO.
The Board did not conduct a performance evaluation for the Chief Executive Officer in the financial year. The
current Chief Executive Officer is an Acting Chief Executive Officer.
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CORPORATE GOVERNANCE STATEMENT
Principle 2 – Structure the Board to add value
BOARD OF DIRECTORS - COMPOSITION, STRUCTURE AND PROCESS
The Board has been formed so that it has effective composition, size and commitment to adequately discharge
its responsibilities and duties given the Company’s current size, scale and nature of its activities.
BOARD NOMINATIONS
The Board has not followed Recommendation 2.1(a) as it has established a Remuneration and Nomination
Committee Charter. The Board has not implemented a Remuneration and Nomination Committee due to the
Company’s small size and nature. However, the members of the Board communicated with each other on
regular basis to address any issues which arose in this regard.
In compliance with Recommendation 2.1(b), the Board considers nominations for the appointment or election of
Directors that may arise from time to time having regard to the corporate and governance skills required by the
Company and procedures outlined in the Constitution and the Corporations Act 2001 (Cth).
TERMS OF APPOINTMENT AS A DIRECTOR
The Constitution of the Company provides that a Director, other than the Managing Director, may not retain
office for more than three calendar years or beyond the third Annual General Meeting following his or her
election, whichever is longer, without submitting himself or herself for re-election. One third of the Directors
(excluding the Managing Director) must retire each year and are eligible for re-election. The Directors who retire
by rotation at each Annual General Meeting are those with the longest length of time in office since their
appointment or last election.
During the financial year the Board implemented the functions listed below. Whilst the Company has not
adopted Recommendation 2.4, the Board is effectively managing the functions normally expected of such a
committee.
The responsibilities assumed by the Board include:
•
Board and senior executive functions;
•
Board composition;
•
criteria for nomination of Directors;
•
selection and appointment of the Chairperson;
•
selection and appointment of the Secretary;
•
determine the frequency of meetings of the Committee;
•
seek professional advice when required;
•
responsibilities of the Committee; and
•
overseeing of Board and executive succession plans.
INDEPENDENT DIRECTORS
Due to the small size of the Company, the Board is made up of four Directors.
The Company has not adopted Recommendation 2.2, which states that a board skills matrix should be disclosed,
nor has it adopted Recommendation 2.3, which states that the majority of the directors should be independent.
Because of the small size and nature of the Company, the Company has appointed 1 independent Director on
the Board. It is the Board’s opinion that all Directors bring to the Board their independent judgement,
irrespective of whether they are independent or not.
PERIOD OF OFFICE HELD BY EACH DIRECTOR
•
•
•
•
Mr Gregory Clifton Hall since 18 August 2010
Mr Jiangang Zhao since 25 February 2013
Mr Dongfeng Zhang since 25th September 2019
Mr Zhang Yong since 25 February 2013
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CORPORATE GOVERNANCE STATEMENT
INDEPENDENT DIRECTORS
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The Company considers that as at 30 June 2018 Mr. Gregory Clifton Hall is classified as an Independent Director.
REGULAR ASSESSMENT OF INDEPENDENCE
An Independent Director, in the view of the Company, is a Non-executive Director who:
•
is not a substantial shareholder of the Company or an officer of, or otherwise associated directly with, a
substantial shareholder of the Company;
• within the last three years has not been employed in an executive capacity by the Company, or has been
a Director after ceasing to hold any such employment;
• within the last three years has not been a principal of a material professional advisor or a material
consultant to the Company, or an employee materially associated with a service provider;
• has no material contractual relationship with the Company other than as a Director of the Company;
• has not served on the Board for a period which could, or could reasonably be perceived to, materially
•
interfere with the Director's ability to act in the best interests of the Company; and
is free from any interest and any business or other relationship which could, or could reasonably be
perceived to, materially interfere with the Director's ability to act in the best interests of the Company.
The composition of the Board is reviewed periodically with regards to the optimum number and skills of
Directors required for the Board to properly perform its responsibilities and functions.
CHAIRPERSON AND MANAGING DIRECTOR
The Company does not follow Recommendation 2.5. The office of Chair during the reporting period was held by
Mr Shouyin Wang, a nominee of ZIMC, the largest shareholder of Zeus.
The Chairperson leads the Board and has responsibility for ensuring the Board receives accurate, timely and
clear information to enable Directors to perform their duties as a Board.
The CEO is responsible and accountable to the Board for the Company's management. Mr Jiangang Zhao is
currently Acting Chief Executive Officer of the Company. Mr Zhao was appointed as Acting CEO of the
Company following the departure of Mr Peter Williamson in November 2013.
INDUCTION AND EDUCATION
The Company complies with Recommendation 2.6. The Company does have a policy to provide each new
Director or officer with a copy of the following documents:
•
•
•
•
•
•
•
•
•
•
Responsibilities of Department Policy;
Board procedures, rules and responsibilities Policy;
Salary and Performance Policy;
Fixed Assets Management Policy;
Financial Policy;
Travel and Accommodation Policy;
Employee Manual;
Recruitment Policy;
Delegated Authority of Limits
Securities Trading Policy; and
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CORPORATE GOVERNANCE STATEMENT
Principle 3 – Act Ethically and Responsibly
CODE OF CONDUCT AND ETHICAL STANDARDS
The Company has adopted recommendation 3.1 by establishing a formal code of conduct that guides
compliance with all levels of legal and other obligations to stakeholders, and by disclosing a summary of this
code of conduct below. The Company is focused on ensuring that all Directors, executives and employees act
with the utmost integrity and objectivity in carrying out their duties and responsibilities, striving at all times to
enhance the reputation and performance of the Company.
ACCESS TO COMPANY INFORMATION AND CONFIDENTIALITY
All Directors have the right of access to all relevant Company books and to the Company's executive
management. In accordance with legal requirements and agreed ethical standards, Directors and executives of
the Company have agreed to keep confidential information received in the course of exercising their duties and
will not disclose non-public information except where disclosure is authorised or legally mandated.
SHARE DEALINGS AND DISCLOSURES
The Company has adopted a Securities Trading Policy. The Board restricts Directors, executives and employees
from acting on material information until it has been released to the market. Executives, employees and
Directors are required to consult the Chairperson and the Board respectively, prior to dealing in securities in the
Company or other companies in which the Company has a relationship.
Share trading by Directors, executives or employees is not permitted at any time whilst in the possession of
price sensitive information not already available to the market. In addition, the Corporations Act prohibits the
purchase or sale of securities whilst a person is in possession of inside information.
CONFLICT OF INTEREST
disclose to the Board actual or potential conflicts of interest that may or might reasonably be thought to
To ensure that Directors are at all times acting in the best interests of the Company, Directors must:
•
exist between the interests of the Director and the interests of any other parties in carrying out the activities of
the Company; and
•
necessary and reasonable steps to remove any conflict of interest.
if requested by the Board, within seven days or such further period as may be permitted, take such
If a Director cannot or is unwilling to remove a conflict of interest then the Director must, as required by the
Corporations Act, absent himself or herself from the room when Board discussion and/or voting occurs on
matters about which the conflict relates.
RELATED PARTY TRANSACTIONS
Related party transactions include any financial transaction between a Director and the Company as defined in
the Corporations Act or the ASX Listing Rules. Unless there is an exemption under the Corporations Act from the
requirement to obtain shareholder approval for the related party transaction, the Board cannot approve the
transaction. The Company also discloses related party transactions in its financial statements as required under
relevant Accounting Standards.
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CORPORATE GOVERNANCE STATEMENT
Principle 4 – Safeguard integrity in financial reporting
AUDIT COMMITTEE
The Company has not complied with Recommendation 4.1(a) as it has not established an Audit Committee with
a corresponding charter. The Audit compliance is managed by the full board of Zeus Resources. It has complied
with Recommendation 4.1(b) by disclosing that the objective of the Board is to make recommendations and
implement, among various matters, the adequacy of the external audit and compliance procedures. The Board
evaluates from time to time the effectiveness of the financial statements prepared for the Board meetings and
to ensure that an independent judgement is always exercised.
CEO AND CFO DECLARATIONS
The Company has adopted and complied with recommendation 4.2.
Due to the size of the management team, the Board has determined that the Chairperson and the Accountant
are the appropriate persons to make the CEO and CFO declarations in respect of the year ended 30 June 2016,
as required under section 295A of the Corporations Act and recommended by the ASX Corporate Governance
Council. The Board is also satisfied that the internal control system is operating effectively in all material
respects.
AUDITOR PRESENT AT ANNUAL GENERAL MEETING
The Company has complied with Recommendation 4.3. A representative of the Company’s external auditor was
be present at the Company’s AGM and will be available to answer questions from security holders relevant to
the audit.
Principle 5 – Make timely and balanced disclosure
The Company has not adopted Recommendation 5.1 by putting in place a continuous Disclosure Policy because
of the size and nature of the Company.
CONTINUOUS DISCLOSURE TO THE ASX
The Board has designated the Company Secretary as the person responsible for overseeing and coordinating
disclosure of information to the ASX as well as communicating with the ASX. Accordingly, the Company will
notify the ASX promptly of information:
• concerning the Company, that a reasonable person would expect to have a material effect on the price
•
•
or value of the Company's securities;
that would, or would be likely to, influence persons who commonly invest in securities in deciding
whether to acquire or dispose of the Company's securities; and
the announcements are made in a timely manner, are factual and do not omit material information in
order to avoid the emergence of a false market in Zeus securities.
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CORPORATE GOVERNANCE STATEMENT
Principle 6 – Respect the rights of shareholders
The Company has complied with Recommendation 6.1 by promoting active communication with shareholders
through a variety of measures, including the use of the Company's website. The Company's reports and ASX
announcements are made available on the Company’s website www.zeusresources.com and on the ASX website
www.asx.com.au, under ASX code 'ZEU'.
COMMUNICATION TO SHAREHOLDERS
The Company does comply with Recommendation 6.2 and 6.3.
The Board recognises its duty to ensure that its shareholders are informed of all major developments affecting
the Company's state of affairs. The Company provides all relevant and current information to shareholders and
the market through:
•
•
the Annual Report which is distributed to shareholders (usually with the Notice of Annual General
Meeting);
the Annual General Meeting and other general meetings called to obtain shareholder approvals as
appropriate;
the half-yearly Directors' and financial statements;
•
• quarterly activities and cash flow reports;
• other announcements released to the ASX as required under the continuous disclosure requirements of
the ASX Listing; and
• Rules and other information that may be mailed to shareholders or made available through the
Company’s website.
The company has complied with Recommendation 6.4 by encouraging Shareholders to register for receipt of
announcements and updates electronically.
Principle 7 - Recognise and manage risk
RISK COMMITTEE
The Company has not complied with Recommendation 7.1(a) as it has not established a Risk Committee with a
corresponding charter.
The Company complies with Recommendation 7.1(b) by disclosing the processes it employs for overseeing the
Company’s risk management, being that the Board is responsible for the identification, monitoring and
management of significant business risks and the implementation of appropriate levels of internal control,
recognising however that no cost effective internal control system will preclude all errors and irregularities. The
Board regularly reviews and monitors areas of significant business risk.
INTERNAL CONTROL AND RISK MANAGEMENT
The Company has complied with Recommendation 7.2 by conducting an annual risk assessment and discloses
to the Company auditors the review of risk management and internal control systems.
The primary vehicle for managing corporate risks is regular oversight by the Board. The Board reviews systems
of external and internal controls and areas of significant operational, financial and property risk and ensures
arrangements are in place to contain such risks to acceptable levels.
The Company has systems in place to ensure that appropriate insurance policies are kept current to cover all
potential risks and maintaining Directors' and Officers' professional indemnity insurance.
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CORPORATE GOVERNANCE STATEMENT
INTERNAL AUDIT FUNCTION
The Company has not complied with Recommendation 7.3(a) but does comply with recommendation 7.3(b). The
Company’s internal audit function is carried out by the Board. The Company does not have an internal audit
department nor has an internal auditor. The board is of the belief that the size of the Company does not warrant
the cost of appointing an internal auditor.
ECONOMIC, ENVIRONMENTAL AND SUSTAINABILITY RISKS
All material risks are announced to the market in accordance with the requirements of the ASX Listing Rules and
otherwise.
Principle 8 – Remunerate fairly and responsibly
In response to Recommendation 8.1(a), the Board has not established a remuneration committee. The Board is
directed by the Chairperson who operates as the Committee, due to the size and nature of the Company.
The Board regularly addressed issues that arose during the financial year.
REMUNERATION COMMITTEE CHARTER AND RESPONSIBILITIES
In accordance with Recommendation 8.1, in the absence of a remuneration committee, the Company discloses
the following information concerning its policies and processes it employs for setting remuneration of directors
and senior executives.
REMUNERATION POLICY
In response to Recommendation 8.2, the Company has established a Salary and Performance Policy along with a
Recruitment Policy which operates in a similar fashion to a Remuneration and Nomination Committee charter.
The role and responsibility of the Board is to review and make recommendations in respect of:
• executive remuneration policy;
• Executive Director and senior management remuneration;
• Non-executive Directors' Remuneration;
• performance measurement policies and procedures;
• Administration of the Company’s Diversity policy;
• Board evaluation and performance of Directors; and
•
Issue and allotment of options to Directors and Senior Executives.
The Directors’ remuneration is approved by shareholders at the Annual General Meeting. The salary and
emoluments paid to officers are approved by the Board. Consultants are engaged as required pursuant to
service agreements. The Company ensures that fees, salaries and emoluments are in line with general standards
for publicly listed companies of the size and type of the Company. All salaries of Directors and statutory officers
are disclosed in the Annual Report of the Company each year.
The Company has a policy structure to remunerate Directors differently based on a fixed and incentive
component salary packages to reflect the short and long-term objectives of the Company. Key aspects of the
policy include the following:
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CORPORATE GOVERNANCE STATEMENT
•
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the salary component of the Managing Director/CEO remuneration is made up of fixed remuneration
and long-term incentive;
the salary component of Non-executive Directors is made up of fixed remuneration.
the Company has not adopted Recommendation 8.4 as follows due to its size and nature:
the Company discloses the name of Directors in the Remuneration Committee and the attendance of
each Director to the Remuneration Committee meetings, within its Directors' Reports;
the Company does not provide any schemes for retirement; and
the Company has not made publicly available a summary of the Remuneration Committee Charter on
the Company’s website.
SECURITIES TRADING POLICY
In compliance with Recommendation 8.3, the Company has a securities trading policy that prohibits directors,
officers and employees from entering into transactions or arrangements which limits the economic risk of
participating in unvested entitlements under any equity-based remuneration scheme.
The Company’s securities trading policy is publicly available on the ASX website.
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SHAREHOLDER INFORMATION
The shareholder information set out below was applicable as at 30th June 2020:
(a) Distribution of Equity Securities
Analysis of numbers of equity security holders by size of holding:
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(b) The names of the twenty largest holders of quoted securities are listed below:
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SHAREHOLDER INFORMATION
(c) Substantial Shareholders
Substantial shareholders in the Company are:
Name
30 Jun 2020
%
Holding
30 Jun 2019 % Holding
ZHENGYUAN INTERNATIONAL MINING COMPANY
LIMITED
57,650,000
32.00%
57,650,000
32.00%
VAST HONOUR GLOBAL LIMITED
57,534,500
31.94%
57,534,500
31.94%
MRS ANLAN CHEN
15,145,018
8.41%
15,145,018
8.41%
BARBARY COAST INVESTMENTS PTY LTD
13,447,201
7.46%
13,447,201
7.46%
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(d) Voting Rights
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The voting rights attaching to each class of equity security are set out below:
Ordinary Shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a
poll each share shall have one vote.
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