REG - Thor Mining PLC - Annual Results for the year ended 30 June 2016 <Origin Href="QuoteRef">THRL.L</Origin> - Part 2
26/09/2016 12:40
- Part 2: For the preceding part double click ID:nRSZ8336Ka
1,729
Cost of shares issued - (69) - - - - (69)
Share options lapsed - - 23 - - (23) -
Share options issued - (9) - - - 9 -
At 30 June 2015 3,172 15,383 (10,586) 918 405 30 9,322
Balance at 1 July 2015 3,172 15,383 (10,586) 918 405 30 9,322
Loss for the period - - (1,745) - - - (1,745)
Foreign currency translation reserve - - - 1,225 - - 1,225
Total comprehensive (loss) for the period - - (1,745) 1,225 - - (520)
Transactions with owners in their capacity as owners
Shares issued 251 676 - - - - 927
Cost of shares issued - (37) - - - - (37)
Share options lapsed - - 21 - - (21) -
Share options issued - - - - - - -
At 30 June 2016 3,423 16,022 (12,310) 2,143 405 9 9,692
Company
Balance at 1 July 2014 3,020 13,884 (7,619) - 405 44 9,734
Loss for the period - - (2,428) - - - (2,428)
Total comprehensive (loss) for the period - - (2,428) - - - (2,428)
Transactions with owners in their capacity as owners
Shares issued 152 1,577 - - - - 1,729
Cost of shares issued - (69) - - - - (69)
Share options lapsed - - 23 - - (23) -
Share options issued - (9) - 9 -
At 30 June 2015 3,172 15,383 (10,024) - 405 30 8,966
Balance at 1 July 2015 3,172 15,383 (10,024) - 405 30 8,966
Loss for the period - - (315) - - - (315)
Total comprehensive (loss) for the period - - (315) - - - (315)
Transactions with owners in their capacity as owners
Shares issued 251 676 - - - - 927
Cost of shares issued - (37) - - - - (37)
Share options lapsed - - 21 - - (21) -
Share options issued - - - - -
At 30 June 2016 3,423 16,022 (10,318) - 405 9 9,541
Notes to the Accounts for the year ended 30 June 2016
1 Principal accounting policies
a) Authorisation of financial statements
The Group financial statements of Thor Mining PLC for the year ended 30 June 2016 were authorised for issue by the Board on
26 September 2016 and the Balance Sheets signed on the Board's behalf by Michael Billing and Ray Ridge. The Company's
ordinary shares are traded on the AIM Market operated by the London Stock Exchange and on the Australian Securities
Exchange.
b) Statement of compliance with IFRS
The Group's financial statements have been prepared in accordance with International Financial Reporting Standards
("IFRS"). The Company's financial statements have been prepared in accordance with IFRS as adopted by the European Union.
The principal accounting policies adopted by the Group and Company are set out below.
c) Basis of preparation and Going Concern
The consolidated financial statements have been prepared on the historical cost basis, except for the measurement of assets
and financial instruments to fair value as described in the accounting policies below, and on a going concern basis.
The financial report is presented in Sterling and all values are rounded to the nearest thousand pounds ("£'000") unless
otherwise stated.
The financial report has been prepared on the basis of a going concern.
The consolidated entity incurred a net loss before tax of £1,745,000 during the period ended 30 June 2016, and had a net
cash inflow of £195,000 from operating and investing activities. The consolidated entity continues to be reliant upon
completion of capital raising for continued operations and the provision of working capital.
The Group's cash flow forecast for the 12 months ending 30 September 2017, highlight the fact that the Company is expected
to generate negative cash flow by that date, inclusive of the discretionary exploration spend. The Board of Directors, are
evaluating all the options available, including the injection of funds into the Group during the next 12 months, and are
confident that the necessary funds will be raised in order for the Group to remain cash positive for the whole period. If
additional capital is not obtained, the going concern basis may not be appropriate, with the result that the Group may have
to realise its assets and extinguish its liabilities, other than in the ordinary course of business and at amounts
different from those stated in the financial report. As above, the financial statements have been prepared on a going
concern basis, with no adjustments in respect of the concerns of the Group's ability to continue to operate under that
assumption.
d) Basis of consolidation
The consolidated financial statements comprise the financial statements of Thor Mining PLC and its controlled entities.
The financial statements of controlled entities are included in the consolidated financial statements from the date control
commences until the date control ceases.
The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent
accounting policies.
All intercompany balances and transactions have been eliminated in full.
e) Exploration and development expenditure
Exploration, evaluation and development expenditure incurred is accumulated in respect of each identifiable area of
interest. These costs are only carried forward to the extent that they are expected to be recouped through the successful
development of the area or where activities in the area have not yet reached a stage which permits reasonable assessment of
the existence of economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against the income statement in the year in
which the decision to abandon the area is made.
A review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in
relation to that area of interest.
Restoration, rehabilitation and environmental costs necessitated by exploration and evaluation activities are expensed as
incurred and treated as exploration and evaluation expenditure.
f) Revenue
Revenue is recognised to the extent that it is probable that economic benefits will flow to the group and the revenue can
be reliably measured.
Interest revenue
Interest revenue is recognised as it accrues using the effective interest rate method.
g) Deferred taxation
Deferred income tax is provided on all temporary differences at the balance sheet date between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and
unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible
temporary differences and the carry-forward of unused tax credits and unused tax losses can be utilised.
Unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised to the extent that it
has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the
asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively
enacted at the Balance Sheet date.
h) Trade and other payables
Trade and other payables are carried at amortised costs and represent liabilities for goods and services provided to the
Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make future
payments in respect of the purchase of these goods and services.
i) Foreign currencies
The Company's functional currency is Sterling ("£"). Each entity in the Group determines its own functional currency and
items included in the financial statements of each entity are measured using that functional currency. As at the reporting
date the assets and liabilities of these subsidiaries are translated into the presentation currency of Thor Mining PLC at
the rate of exchange ruling at the Balance Sheet date and their Income Statements are translated at the average exchange
rate for the year. The exchange differences arising on the translation are taken directly to a separate component of
equity.
All other differences are taken to the Income Statement with the exception of differences on foreign currency borrowings,
which, to the extent that they are used to finance or provide a hedge against foreign equity investments, are taken
directly to reserves to the extent of the exchange difference arising on the net investment in these enterprises. Tax
charges or credits that are directly and solely attributable to such exchange differences are also taken to reserves.
j) Share based payments
During the year the Group has provided no benefits to Directors of the Group in the form of share options. (2015: £ NIL).
The cost of equity-settled transactions is measured by reference to the fair value of the services provided. If a reliable
estimate cannot be made, the fair value of the Options granted is based on the Black-Scholes model.
In valuing equity-settled transactions, no account is taken of any performance conditions, other than conditions linked to
the price of the shares of Thor Mining PLC (market conditions) if applicable.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in
which the performance and/or service conditions are fulfilled, ending on the date on which the relevant holders become
fully entitled to the award (the vesting period).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects (i)
the extent to which the vesting period has expired and (ii) the Group's best estimate of the number of equity instruments
that will ultimately vest. No adjustment is made for the likelihood of market performance conditions being met as the
effect of these conditions is included in the determination of fair value at grant date. The Income Statement charge or
credit for a period represents the movement in cumulative expense recognised as at the beginning and end of that period.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is only conditional upon a
market condition.
If the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms had not been
modified. In addition, an expense is recognised for any modification that increases the total fair value of the share-based
payment arrangement, or is otherwise beneficial to the holder, as measured at the date of modification.
If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not
yet recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled award and
designated as a replacement award on the date that it is granted, the cancelled and new award are treated as if they were a
modification of the original award, as described in the previous paragraph.
k) Leased assets
The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement and
requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets
and the arrangement conveys a right to use the asset.
(i) Finance Leases
Assets funded through finance leases are capitalised as fixed assets and depreciated in accordance with the policy for the
class of asset concerned.
Finance lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a
constant rate of interest on the remaining balance of the liability. Finance charges are recognised as an expense in the
Income Statement.
(ii) Operating Leases
All operating lease payments are charged to the Income Statement on a straight line basis over the life of the lease.
l) Cash and cash equivalents
Cash and short-term deposits in the Balance Sheet comprise cash at bank and in hand and short-term deposits with an
original maturity of three months or less.
For the purposes of the Cash Flow Statement, cash and cash equivalents consist of cash and cash equivalents as defined
above, net of outstanding bank overdrafts.
m) Trade and other receivables
Trade receivables, which generally have 30 day terms, are recognised and carried at original invoice amount less an
allowance for any uncollectible amounts.
An allowance for doubtful debts is made when there is objective evidence that the Group will not be able to collect the
debts. Bad debts are written off when identified
n) Investments
Investments in subsidiary undertakings are stated at cost less any provision for impairment in value, prior to their
elimination on consolidation.
o) Financial instruments
The Group's financial instruments, other than its investments, comprise cash and items arising directly from its operation
such as trade debtors and trade creditors. The Group has overseas subsidiaries in Australia and USA, whose expenses are
denominated in Australian Dollars and US Dollars. Market price risk is inherent in the Group's activities and is accepted
as such. There is no material difference between the book value and fair value of the Group's cash.
p) Merger reserve
The difference between the fair value of an acquisition and the nominal value of the shares allotted in a share exchange
have been credited to a merger reserve account, in accordance with the merger relief provisions of the Companies Act 2006
and accordingly no share premium for such transactions is set-up. Where the assets acquired are impaired, the merger
reserve value is reversed to retained earnings to the extent of the impairment.
q) Property, plant and equipment
Plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses. Land is measured
at fair value less any impairment losses recognised after the date of revaluation.
Depreciation is provided on all tangible assets to write off the cost less estimated residual value of each asset over its
expected useful economic life on a straight-line basis at the following annual rates:
Land (including option costs) - Nil
Plant and Equipment - between 5% and 25%
All assets are subject to annual impairment reviews.
r) Impairment of assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such
indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset's
recoverable amount. An asset's recoverable amount is the higher of its fair value less costs to sell and its value in use
and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of
those from other assets or Groups of assets and the asset's value in use cannot be estimated to be close to its fair value.
In such cases the asset is tested for impairment as part of the cash-generating unit to which it belongs. When the
carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is
considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment
losses relating to continuing operations are recognised in those expense categories consistent with the function of the
impaired asset unless the asset is carried at its revalued amount (in which case the impairment loss is treated as a
revaluation decrease).
An assessment is also made at each reporting date as to whether there is any indication that previously recognised
impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is
estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to
determine the asset's recoverable amount since the last impairment loss was recognised. If that is the case the carrying
amount of the asset is increased to its recoverable amount.
That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no
impairment loss been recognised for the asset in prior years. Such reversal is recognised in the Income Statement unless
the asset is carried at its revalued amount, in which case the reversal is treated as a revaluation increase. After such a
reversal the depreciation charge is adjusted in future periods to allocate the asset's revised carrying amount, less any
residual value, on a systematic basis over its remaining useful life.
s) Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it
is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a
reliable estimate can be made of the amount of the obligation.
When the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the
reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating
to any provision is presented in the Income Statement net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects
the risks specific to the liability.
t) Loss per share
Basic loss per share is calculated as loss for the financial year attributable to members of the parent, adjusted to
exclude any costs of servicing equity (other than dividends) and preference share dividends, divided by the weighted
average number of ordinary shares, adjusted for any bonus element.
Diluted loss per share is calculated as loss for the financial year attributable to members of the parent, adjusted for:
· costs of servicing equity (other than dividends) and preference share dividends;
· the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have
been recognised as expenses; and
· other non-discretionary changes in revenues or expenses during the period that would result from the dilution
of potential ordinary shares;
divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus
element.
u) Share based payments reserve
This reserve is used to record the value of equity benefits provided to employees, consultants and directors as part of
their remuneration and provided to consultants and advisors hired by the Group from time to time as part of the
consideration paid. The reserve is reduced by the value of equity benefits which have lapsed during the year.
v) Foreign currency translation reserve
The foreign currency translation reserve is used to record exchange differences arising from the translation of the
financial statements of foreign subsidiaries.
w) Adoption of new and revised Accounting Standards
In the current year, the company has adopted all of the new and revised Standards and Interpretations issued by Accounting
Standards and Interpretations Board that are relevant to its operations and effective for the current annual reporting
period and there is no material financial impact on the financial statements of the Group or the Company.
2. Revenue and segmental analysis - Group
The Group has a number of exploration licenses, and mining leases, in Australia and the US State of Nevada. All
exploration licences in Australia are managed as one portfolio. The decision to allocate resources to individual Australian
projects in that portfolio is predominantly based on available cash reserves, technical data and the expectations of future
metal prices. The Group acquired the exploration assets in the US State of Nevada on 27 October 2014 (refer Note 21). All
of these US licenses are located in the one geological region. Accordingly, the Group has identified its operating
segments to be Australia and the United States based on the two countries. This is the basis on which internal reports are
provided to the Directors for assessing performance and determining the allocation of resources within the Group.
£'000 £'000 £'000 £'000
Year ended 30 June 2016 Head office/ Unallocated Australia United States Consolidated
Revenue
Interest Income - - - -
Total Segment Revenue - - - -
Total Segment Expenditure (349) (1,317) (79) (1,745)
Loss from Ordinary Activities before Income Tax (349) (1,317) (79) (1,745)
Income Tax (Expense) - - - -
Retained (loss) (349) (1,317) (79) (1,745)
Assets and Liabilities
Segment assets - 7,839 1,405 9,244
Corporate assets 1,063 - - 1,063
Total Assets 1,063 7,839 1,405 10,307
Segment liabilities - (489) (30) (519)
Corporate liabilities (96) - - (96)
Total Liabilities (96) (489) (30) (615)
Net Assets 967 7,350 1,375 9,692
£'000 £'000 £'000 £'000
Year ended 30 June 2015 Head office/ Unallocated Australia United States Consolidated
Revenue
Interest Income - 2 - 2
Total Segment Revenue - 2 - 2
Total Segment Expenditure (580) (315) (22) (917)
Loss from Ordinary Activities before Income Tax (580) (313) (22) (915)
Income Tax (Expense) - - - -
Retained (loss) (580) (313) (22) (915)
Assets and Liabilities
Segment assets - 9,160 1,339 10,499
Corporate assets 17 - - 17
Total Assets 17 9,160 1,339 10,516
Segment liabilities - (909) (197) (1,106)
Corporate liabilities (88) - - (88)
Total Liabilities (88) (909) (197) (1,194)
Net Assets (71) 8,251 1,142 9,322
3. Operating loss - group
2016 2015
£'000 £'000
This is stated after charging:
Depreciation 13 20
Auditors' remuneration - audit services 27 26
Auditors' remuneration - non audit services - -
Options issued - directors, staff, consultants and lender - -
Directors emoluments - fees and salaries 245 175
Auditors' remuneration for audit services above includes £20,200 (2015: £19,250) to Chapman Davis LLP for the audit of the
Company and Group. Remuneration to BDO for the audit of the Australian subsidiaries was £6,825 (2015: £5,862).
4. Directors and executive disclosures - Group
All Directors are each appointed under the terms of a Directors letter of appointment. Each appointment provides for
annual fees of Australian dollars $40,000 for services as Directors plus 9.5% as a company contribution to Australian
statutory superannuation schemes. The agreement allows for any services supplied by the Directors to the Company and any of
its subsidiaries in excess of two days in any calendar month, can be invoiced to the Company at market rate, currently at
A$1,000 per day, other than Mr Michael Billing at a rate of A$1,200 per day and Mr David Thomas at a rate of A$1,500 per
day. From 1st January 2010 the Directors elected to accept reduced fee arrangements, for cash settled Directors fees.
Where Directors fees are settled through shares issued in lieu of cash payment, the full A$40,000 per annum rate applies.
This arrangement remains in place, until further notice.
(a) Details of Key Management Personnel
(i) Chairman and Chief Executive Officer
Michael Billing Executive Chairman and Chief Executive Officer
(ii) Directors
Gervaise Heddle Non-executive Director (appointed 26 July 2016)
David Thomas Non-executive Director
Paul Johnson Non-executive Director (appointed 2 September 2016)
Michael Ashton Non-executive Director (resigned 2 September 2016)
Trevor Ireland Non-executive Director (resigned 2 September 2016)
(iii) Executives
Ray Ridge CFO/Company Secretary (Australia)
Stephen Ronaldson Company Secretary (UK)
Richard Bradey Chief Exploration Geologist
(b) Compensation of Key Management Personnel
Compensation Policy
The compensation policy is to provide a fixed remuneration component and a specific equity related component. There is no
separation of remuneration between short term incentives and long term incentives. The Board believes that this
compensation policy is appropriate given the stage of development of the Company and the activities which it undertakes and
is appropriate in aligning director and executive objectives with shareholder and businesses objectives.
The compensation policy, setting the terms and conditions for the executive Directors and other executives, has been
developed by the Board after seeking professional advice and taking into account market conditions and comparable salary
levels for companies of a similar size and operating in similar sectors. Executive Directors and executives receive either
a salary or provide their services via a consultancy arrangement. Directors and executives do not receive any retirement
benefits other than compulsory Superannuation contributions where the individuals are directly employed by the Company or
its subsidiaries in Australia. All compensation paid to Directors and executives is valued at cost to the Company and
expensed.
The Board policy is to compensate 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 compensation annually,
based on market practice, duties and accountability. Independent external advice is sought when required. The maximum
aggregate amount of fees that can be paid to Directors is subject to approval by shareholders at a General Meeting. Fees
for non-executive Directors are not linked to the performance of the economic entity. However, to align Directors'
interests with shareholder interests, the Directors are encouraged to hold shares in the Company and may receive options.
Salary & Fees Shares2 Total
£'000 £'000 £'000
30 June 2016
Directors: 1,2
Michael Billing 89 30 119
Michael Ashton4 16 13 29
Trevor Ireland4 22 13 35
David Thomas 27 13 40
Gregory Durack3 9 13 22
Other Personnel:
Richard Bradey 93 - 93
Ray Ridge1 36 - 36
1 As at 30 June 2016 accrued amounts of £120,784, £45,304, £35,281,
£32,499, £16,647, and £11,468 remained unpaid to Messrs. Billing, Thomas,
Ireland, Ridge, Ashton and Durack respectively.2 Each of the Directors
received £13,033 of their Directors fees as shares in lieu of cash
payment. M Billing also received £16,735 as shares in lieu of cash
payments for consulting fees as Executive Chairman. The Directors have
again agreed to receive shares in lieu of cash payments for the remainder
of their Directors fee for the year ended 30 June 2016, subject to
shareholder approval (being £15,640 for each Director, and £8,689 in the
case of G Durack).3 Resigned 4 March 2016.4 Resigned subsequent to the
end of the financial year, on 2 September 2016.
Salary & Fees Shares2 Total
£'000 £'000 £'000
30 June 2015
Directors: 1,2
Michael Billing 103 4 107
Gregory Durack 8 4 12
Michael Ashton 8 4 12
Trevor Ireland 15 4 19
David Thomas 21 4 25
Other Personnel:
Richard Bradey 101 - 101
Ray Ridge1 58 - 58
1 As at 30 June 2015, accrued amounts of £84,940, £19,784, £16,328,
£26,008, £7,327, and £7,327 respectively remained unpaid to Messrs.
Billing, Thomas and Ireland, Ridge, Ashton and Durack.2 Each of the
Directors received £3,980 of their Directors fees by shares in lieu of
cash payment.
(c) Compensation by category Group
2016 2015
£'000 £'000
Key Management Personnel
Short-term 366 325
Post-employment 8 9
374 334
(d) Options and rights over equity instruments granted as remuneration
No options were granted over ordinary shares to Directors during the years ended 30 June 2016 and 30 June 2015.
(e) Options holdings of Key Management Personnel
The movement during the reporting period in the number of options over ordinary shares in Thor Mining PLC held, directly,
indirectly or beneficially, by key management personnel, including their personally related entities, is as follows:
Key Management Personnel Held at 1 July 2015 Acquired through Open Offer Granted as remuneration Expired Exercised Held at 30 June 2016/or at date of resignation Vested and exercisable at 30 June 2016
Directors
Executive
Michael Billing - - - - - - -
Non-Executive
David Thomas - - - - - - -
Gregory Durack - - - - - - -
Michael Ashton - - - - - - -
Trevor Ireland - - - - - - -
Other Personnel
Richard Bradey 500,000 - - 500,000 - - -
Key Management Personnel Held at 1 July 2014 Acquired through Open Offer Granted as remuneration Expired Exercised Held at 30 June 2015/or at date of resignation Vested and exercisable at 30 June 2015
Directors
Executive
Michael Billing 3,731,344 - - 3,731,344 - - -
Non-Executive
David Thomas 1,164,180 - - 1,164,180 - - -
Gregory Durack 1,492,538 - - 1,492,538 - - -
Michael Ashton 3,731,344 - - 3,731,344 - - -
Trevor Ireland 1,119,403 - - 1,119,403 - - -
Other Personnel
Richard Bradey 500,000 - - - - 500,000 500,000
No options held by Directors or specified executives are vested but not exercisable, except as set out above.
(f) Other transactions and balances with related parties
Specified Directors Transaction Note 2016 2015
£'000 £'000
Michael Billing Consulting Fees (i) 90 95
Trevor Ireland Consulting Fees (ii) 6 7
David Thomas Consulting Fees (iii) 11 14
(i) The Company used the consulting services of MBB Trading Pty Ltd a company of which Mr. Michael Billing is a
Director.
(ii) The Company used the services of Ireland Resource Management Pty Ltd, a company of which Mr. Trevor Ireland is a
Director and employee.
(iii) The Company used the services of Thomas Family Trust with whom Mr David Thomas has a contractual relationship.
Amounts were billed based on normal market rates for such services and were due and payable under normal payment terms.
These amounts paid to related parties of Directors are included as Salary & Fees in Note 4(b).
5. Taxation - Group
2016 2015
£'000 £'000
Analysis of charge in year - -
Tax on profit on ordinary activities - -
Factors affecting tax charge for year
The differences between the tax assessed for the year and the standard rate of corporation tax are explained as follows:
2016 2015
£'000 £'000
Loss on ordinary activities before tax (1,745) (915)
Effective rate of corporation tax in the UK 20.00% 20.75%
Loss on ordinary activities multiplied by the standard rate of corporation tax (349) (190)
Effects of:
Future tax benefit not brought to account 349 190
Current tax charge for year - -
No deferred tax asset has been recognised because there is insufficient evidence of the timing of suitable future profits
against which they can be recovered.
6. Loss per share
2016 2015
Loss for the year (£ 000's) (1,745) (915)
Weighted average number of Ordinary shares in issue 4,315,444,147 2,769,138,374
Loss per share (pence) - basic (0.04)p (0.03)p
The basic loss per share is derived by dividing the loss for the period attributable to ordinary shareholders by the
weighted average number of shares in issue.
As the inclusions of the potential Ordinary Shares would result in a decrease in the loss per share they are considered to
be anti-dilutive and as such not included.
7. Intangible fixed assets - Group
Deferred exploration costs
£'000 £'000
2016 2015
Cost
At 1 July 10,401 10,246
Additions 430 333
Disposals (refer note 22) (1,942) -
Exchange gain / (loss) 1,368 (1,197)
Write off exploration tenements for year (1,029) (19)
Business combination (refer note 21) - 1,038
At 30 June 9,228 10,401
Amortisation
At 1 July and 30 June - -
Write off exploration tenements previously impaired - -
Balance - -
Impairment for period - -
Exchange gain - -
At 30 June - -
Net book value at 30 June 9,228 10,401
As at 31 December 2015, the Group wrote off £719,000 relating to the carrying amount of the Spring Hill tenements. The
assets were written down to the assessed recoverable amount at 31 December 2015 of A$3.5m, based on advanced negotiations
for the sale of Spring Hill at that date. Those negotiations concluded in February 2016 resulting in the sale of Spring
Hill for A$3.5m (£1.8m). A$2.0m cash was received upon completion of the sale in February 2016, and the remaining A$1.5m
is due to be received in February 2017. In the Statement of Financial Position as at 30 June 2016, the A$1.5 appears as a
receivable (refer Note 11).
One of the two Dundas tenements (tenement number EL63/1102) was relinquished in July 2016. Based on the intention, at 30
June 2016, to relinquish that tenement upon its renewal date in July 2016, the carrying value of £310,000 was written off
in the year ending 30 June 2016.
As at 30 June 2016 the Directors undertook an impairment review of the deferred exploration costs for the remaining
tenements, as a result of which, no provision for impairment was required (2015: £Nil).
8. Investments - Company
The Company holds 20% or more of the share capital of the following companies:
Company Country of registrationor incorporation Shares held Class %
Molyhil Mining Pty Ltd 1 Australia Ordinary 100
Hale Energy Limited 2 Australia Ordinary 100
Black Fire Industrial Minerals Pty Ltd3 Australia Ordinary 100
Industrial Minerals (USA) Pty Ltd4 Australia Ordinary 100
Pilot Metals Inc5 USA Ordinary 100
BFM Resources Inc6 USA Ordinary 100
1 Molyhil Mining Pty Ltd is engaged in exploration and evaluation activities focused at the Molyhil project in the Northern
Territory of Australia.2Hale Energy Limited ceased exploration activities and was dormant at 30 June 2015. During the year
ended 30 June 2016, the Dundas tenements (previously held by TM Gold Pty Ltd) were transferred to Hale Energy Limited, to permit
the sale of TM Gold Pty Ltd holding only the Spring Hill tenements of interest to the purchaser. In August 2016, The Group made
an application to the Australian Securities and Investment Commission to change the company type of Hale Energy Limited from a
public company limited by shares to a proprietary company limited by shares. The change is effective after a one month
gazetting period.3 Black Fire Industrial Minerals Pty Ltd is a holding company only. It owns 100% of the shares in Industrial
Minerals (USA) Pty Ltd.4 Industrial Minerals (USA) Pty Ltd is a holding company only. It owns 100% of the shares in Pilot
Metals Inc and BFM Resources Inc.5 Pilot Metals Inc is engaged in exploration and evaluation activities focused at the Pilot
Mountain project in the US state of Nevada.6 BFM Resources Inc is engaged in exploration and evaluation activities focused at
the Pilot Mountain project in the US state of Nevada.The Directors of Thor Mining PLC, M R Billing, M K Ashton, and T J Ireland
were all Directors of the above subsidiaries for the entire year ended 30 June 2016, with the exception of Mr Greg Durack who
resigned as Director of these companies on 4 March 2016.The previously 100% owned subsidiary TM Gold Pty Ltd was sold effective
26 February 2016 (refer Note 22).
(a) Investment in Subsidiary companies:
2016 2015
£'000 £'000
Molyhil Mining Pty Ltd 700 700
Less: Impairment provision against investment (700) (700)
Hale Energy Limited 1,277 1,277
Less: Investment written off (1,277) (1,277)
TM Gold Pty Ltd (refer Note 22) - -
Black Fire Industrial Minerals Pty Ltd 688 688
688 688
The investments in subsidiaries are carried in the Company's Balance Sheet at the lower of cost and net realisable value.
Loans to subsidiaries
2016 2015
£'000 £'000
Molyhil Mining Pty Ltd 7,672 7,370
Less: Impairment provision against loan (722) (1,656)
TM Gold Pty Ltd - 4,583
Less: Impairment provision against loan - (1,675)
Hale Energy Limited 1,117 358
Less: Impairment provision against loan (716) (358)
Black Fire Industrial Minerals Pty Ltd 535 216
Less: Impairment provision against loan - -
7,886 8,838
The loans to subsidiaries are non-interest bearing, unsecured and are repayable upon reasonable notice having regard to the
financial stability of the company.
9. Deposits supporting performance bonds
Consolidated Company
£'000 £'000 £'000 £'000
2016 2015 2015 2014
Deposits with banks and Governments 11 13 - -
11 13 - -
10. Property, plant and equipment
Plant and Equipment:
At cost 94 98 - -
Accumulated depreciation (90) (83) - -
Total Property, Plant and Equipment 4 15 - -
Movements in Carrying Amounts
Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the
current financial year.
The carrying value of the plant and equipment includes finance leased assets of £Nil (2014: £Nil)
At 1 July 15 35 - -
Additions - 2 - -
Foreign exchange impact, net 2 (2) - -
Disposals - - - -
Depreciation expense (13) (20) - -
At 30 June 4 15 - -
11. Trade receivables and other assets
Consolidated Company
£'000 £'000 £'000 £'000
2016 2015 2016 2015
Current
Trade and other receivables 42 5 42
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