Microsoft Word - Gippsland - Full Year IFRS Financial Report 2015 - FINAL
Arrowhead Resources Limited
(formerly Gippsland Limited) and its Controlled Entities
ABN 31 004 766 376
Financial Report
30 June 2015
Contents
DIRECTORS' REPORT 1
AUDITOR'S INDEPENDENCE DECLARATION 12
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 13
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 14
CONSOLIDATED STATEMENT OF CASH FLOWS 15
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 16
NOTES TO THE FINANCIAL STATEMENTS 17
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CORPORATE INFORMATION 17
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 17
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REVENUES, OTHER INCOME AND EXPENSES 31
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INCOME TAX 32
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EARNINGS PER SHARE 33
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CASH AND CASH EQUIVALENTS 33
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TRADE AND OTHER RECEIVABLES (CURRENT) 34
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INVENTORIES 35
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OTHER ASSETS 35
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PROPERTY, PLANT AND EQUIPMENT 35
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EXPLORATION AND EVALUATION EXPENDITURE 36
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MINE PROPERTIES 37
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TRADE AND OTHER PAYABLES (CURRENT) 37
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PROVISIONS (CURRENT) 37
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LOANS AND BORROWINGS (CURRENT) 37
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NON-CONTROLLING INTEREST 38
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CONTRIBUTED EQUITY 38
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RESERVES AND ACCUMULATED LOSSES 39
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INTERESTS IN CONTROLLED ENTITIES 40
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INTERESTS IN JOINT OPERATIONS AND BUSINESS UNDERTAKINGS 40
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EXPENDITURE COMMITMENTS 41
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SHARE BASED PAYMENT PLANS 41
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CONTINGENT LIABILITIES AND CONTINGENT ASSETS 42
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SUBSEQUENT EVENTS 43
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REMUNERATION OF AUDITORS 43
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RELATED PARTY DISCLOSURE 44
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KEY MANAGEMENT PERSONNEL COMPENSATION 44
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SEGMENT INFORMATION 44
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FINANCIAL INSTRUMENTS 45
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PARENT ENTITY INFORMATION 50
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DISCONTINUED OPERATIONS 51
DIRECTORS' DECLARATION 52
INDEPENDENT AUDITOR'S REPORT 53
Your Directors present their report with respect to the results of Arrowhead Resources Limited (formerly Gippsland Limited) ('Arrowhead' or 'the Company') and its controlled entities ('the Group') for the year ended 30 June 2015 ('the Balance Date') and the state of affairs of the Company and the Group at Balance Date.
DIRECTORS
The names of the Directors in office at any time during or since the end of the year are as below. Directors were in office for this entire period unless otherwise stated.
Mr Michael Rosenstreich Mr John Kenny
Mr Rowan Caren (appointed 24 April 2015) Mr Jon Starink (resigned 31 July 2015)
Mr Ian Jeffrey Gandel (resigned 14 April 2015)
Names, qualifications, experience and special responsibilities
Michael Benjamin Rosenstreich - Chairman and Managing Director BSC (Hons), MEE, FAusIMM, MAICD
Mr Rosenstreich was appointed Managing Director on 24 March 2014 and Chairman on 24 April 2015. He was a member of the Company's Audit Committee until 11 September 2015 when the Audit Committee was suspended.
Mr Rosenstreich has a technical background and has worked in corporate finance and management of listed companies over the past 30 years including:
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13 years as an exploration and mine geologist in senior roles;
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6 years as a resource financier with NM Rothschild & Sons;
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2 years as a technical consultant with Snowden and independently; and
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9 years through to 2013 as Managing Director of ASX listed Bass Metals from pre IPO stage through exploration success and culminating in over 5 years of base and precious metals production.
During the past three years Mr Rosenstreich has served as a Director of the following listed companies: Bass Metals Ltd - Appointed 15 December 2004; ceased 4 October 2013
John Damian Kenny - Director (Non-executive) B Com (Hons), LLB
Mr Kenny was appointed Director on 2 September 1999. He is Chairman of the Company's Audit Committee.
Mr Kenny is a corporate and resources lawyer with a specialised interest in venture capital, initial public offerings and mergers and acquisitions. He has extensive experience in public equity fundraisings and the pricing of equity, debt and derivative securities.
During the past three years Mr Kenny has served as a Director of the following listed companies: The ARK Fund Limited* - Appointed 18 June 2003;
Indus Coal Limited - Appointed 13 September 2011. Resigned 7 February 2014;
Sun Resources Limited - Appointed 1 March 2012. Resigned 19 November 2013; and Winchester Energy Limited* - Appointed 17 March 2014.
Rowan St John Caren - Director and Company Secretary BCom, CA
Mr Caren was appointed Company Secretary on 15 August 2006 and as a Director on 24 April 2015.
Mr Caren was employed by the chartered accountancy firm PricewaterhouseCoopers in Australia and overseas for six years and has been directly involved in the minerals exploration industry for a further 18 years. He also provides company
secretarial and corporate advisory services to several exploration companies and is a member of Chartered Accountants Australia and New Zealand.
During the past three years Mr Caren has not served as a Director of any other listed company.
Jon Starink - Director (Executive)
BSC (Hons), BChemE(Hons), MApplSc, FAusIMM, FIEAust, FIChemE, MRACI, MTMS, CPEng, CChem, CSci
Mr Starink was appointed Director on 8 May 2007 and resigned on 31 July 2015. He was also a member of the Audit Committee and Remuneration Committee.
Mr Starink is a Chartered Professional Engineer, a Chartered Scientist and a Chartered Industrial Chemist, a Fellow of the Institution of Engineers Australia, a Fellow of the Australasian Institute of Mining and Metallurgy, a Fellow of the Institution of Chemical Engineers, a Member of The Metallurgical Society and a Member of the Royal Australian Chemical Institute.
During the past three years Mr Starink has served as a Director of the following listed company: Macarthur Minerals Limited - Appointed 28 June 2011. Resigned 28 April 2015.
Ian Jeffrey Gandel - Chairman (Non-executive) LLB, BEc, FCPA, FAICD
Mr Gandel was appointed Director and non-executive chairman on 24 June 2009 and resigned on 14 April 2015. He was also Chairman of the Company's Remuneration Committee and a member of the Audit Committee.
Mr Gandel is a Melbourne businessman with extensive experience in retail management and retail property. He has had an involvement in the construction and leasing of Gandel shopping centres and has been a director of Gandel Retail Trust. He has previously been involved in the Priceline retail chain and the CEO of a chain of serviced offices.
During the past three years Mr Gandel has served as a Director of the following listed companies: Alliance Resources Limited* - Appointed 15 October 2003;
Alkane Resources Ltd* - Appointed 25 July 2006; and Octagonal Resources Ltd* - Appointed 10 November 2010.
* denotes current directorship
Interest in Shares and Options of the Company and related bodies corporate
As at the date of this report, the interest of the directors in the shares and options of Arrowhead Resources Limited were:
Number of Ordinary Shares
Number of Options over Ordinary
Shares
Mr M Rosenstreich - -
Mr J Kenny 5,165,819 -
Mr R Caren - -
Mr I Gandel 862,788,200 -
Mr J Starink 3,085,715 -
OPTIONS
At the date of this report, there were no options on issue.