1、 CORPORATEDIRECTORY/CONTENTSPAGE BEACONMINERALSLIMITED2014ANNUALREPORT2CORPORATEDIRECTORYBOARDOFDIRECTORSGeoffreyGreenhillExecutiveChairmanGrahamMcGarryManagingDirectorMarcusMichaelExecutiveDirectorCOMPANYSECRETARYSarahShipwayKALGOORLIEOFFICE144VivianStreetBOULDERWA6432REGISTEREDOFFICELevel1,115Camb
2、ridgeStreetWESTLEEDERVILLEWA6007T:0893226600F:0893226610E:.auW:.auSTOCKEXCHANGECODESBCNOrdinarySharesBCNOListedOptionsSHAREREGISTRYSecurityTransferRegistrars770CanningHighwayAPPLECROSSWA6153P:0893152333F:0893152233SOLICITORSSteinepreisPaganinAUDITORSWilliamBuckAudit(WA)PtyLtdCONTENTSPAGEReviewofOper
3、ations3DirectorsReport5StatementofProfitorLossandOtherComprehensiveIncome13StatementofFinancialPosition14StatementofChangesinEquity15StatementofCashflows16NotestotheFinancialStatements17DirectorsDeclaration43Auditors IndependenceDeclaration44IndependentAuditorsReport45CorporateGovernanceStatement47M
4、ineralResourcesandOreReservesStatement54ShareholderInformation55Mineral Tenement Information57REVIEWOFOPERATIONS BEACONMINERALSLIMITED2014ANNUALREPORT3HIGHLIGHTS MillingagreementwithFMRGreenfieldsMillCoolgardiefinalised.$4.0mDebentureNoteissuecompleted,eachdebenturenotehavingafacevalueof$1.00eachwit
5、h100freeattachingoptionsexercisableat$0.005onorbefore30September2015.DeliveryandprocessingofthefirstoreattheFMRGreenfieldsMillCoolgardieinApril2014.GoldproductionfromHalleysEastcommences.BeaconMineralsfirstBullionfromFMRInvestmentsGreenfieldsMillinCoolgardieAfteracorporateactiontogaincontrolofBeacon
6、inMarch2012and18monthsofgovernmentsubmissionsto gain approval to commence mining,the Company is finally seeing the results of the hard work anddetermination of the Board of Directors and the dedicated teams in Kalgoorlie and Perth to bring theCompanysHalleysEastgoldprojectintoproduction.InlateNovemb
7、er2011thecurrentBoardofDirectorsmadethedecisiontostepinandassistthelongstandingshareholdersofBeaconMineralsLimitedrealisethepotentialoftheCompanysmajorasset,theHalleysEastgoldproject,350kmNorthWestofKalgoorlie.BeaconMineralslistedinOctober2006andby30June2014hadissuedinexcessof$23mincapital.Thiscapit
8、alhasbeeninvestedonvariousprojectsinAustraliaandoverseas.Priortocommencingdevelopmentofthe Halleys East mine in November 2013,approximately$1.3m of those funds had been capitalised asexplorationonMiningLeaseM77/1254wheretheHalleysEastprojectislocated.InDecember2011thepreviousBoardoftheCompanymadeade
9、cisiontoselltheHalleysEastprojectfor$4.0mincashandanongoingroyaltyandfocusonestablishingexplorationprojectsinWestAfrica.InMarch2012ashareholdersmeetingwasheldtodeterminethesaleoftheHalleysEastprojectandafterastrongcampaignagainstthesaleoftheasset,thesalewasvoteddownatthegeneralmeetingandthecurrentBo
10、ardofDirectorswasinstalled.ThenewboardcomprisingExecutiveChairmanGeoffGreenhill,ManagingDirectorGrahamMcGarryandExecutiveDirectorMarcusMichaelwereappointedon19March2012.REVIEWOFOPERATIONS BEACONMINERALSLIMITED2014ANNUALREPORT4SincereplacingtheboardinMarch2012thenewdirectorssolefocushasbeenonbringing
11、theHalleysEastgoldprojectintoproduction.Afterraising$4.0mindebenturenotesinNovember2013withafacevalueof$1.00eachwith100freeattachingoptionsexercisableat$0.005onorbefore30September2015tofundtheinitialminingworkingcapital.TheCompanywasrewardedfortheeffortsoftheDirectors,minestaff,consultantsandcontrac
12、torswiththeCompanysfirstgoldbeingpouredinApril2014fromoremilledatFMRInvestmentsGreenfieldMillinCoolgardieWesternAustralia.AtthecompletionofthesecondmillingcampaigninJuly2014,totalrecoveredgoldfromHalleysEastwas5,139ounces.BeaconexpectstocompletetheshortlifeHalleysEastgoldprojectbyMid2015.OTHEROPPORT
13、UNITIESSeveraladvancedminingprojectshavebeensubmittedtotheCompanyforreview,howeverBeaconsfocuscontinuestobeonproductionatHalleysEast.TheCompanyconfirmsitscommitmenttocontinuetopursueotheropportunitiesinthemineralssectorinAustraliaandoffshore.DIRECTORSREPORT BEACONMINERALSLIMITED2014ANNUALREPORT5TheD
14、irectorsofBeaconMineralsLimited(“Beacon”or“theCompany”)submitherewiththeannualfinancialreportofBeaconMineralsLimitedfortheperiod1July2013to30June2014.InordertocomplywiththeprovisionsoftheCorporationsAct2001,theDirectorsreportasfollows:DIRECTORSThenamesandparticularsofthedirectorsoftheCompanyduringth
15、efinancialyearandasatthedateofthisreportareasfollows.Directorswereinofficefortheentireperiodunlessotherwisestated.GeoffreyGreenhillAWASM,MAusIMMExecutiveChairmanAppointed19March2012GeoffreyGreenhillgraduatedfromtheWesternAustralianSchoolofMinesobtaininganAssociateshipinMetallurgy in 1973.Mr Greenhil
16、l has held various senior metallurgical roles and has designed andcommissionedoreprocessingfacilitiesacrossAustralia.Heishighlyrespectedwithintheminingindustryandhasastrongtrackrecordincreatingshareholdervalue.MrGreenhillandMrMcGarryhavebeenbusinesspartnersfor27yearsandhavehadsubstantialsuccessindev
17、elopingminingprojectsinWA,SA,QLDandtheNT.Duringthepastthreeyearshehasnotservedasadirectorofanyotherpubliccompanies.GrahamMcGarryCPA,CDManagingDirectorAppointed19March2012Graham McGarry is an experienced and seasoned hands on miner,with an impressive track record inturningearlystageprojectsintoviable
18、andattractiveinvestmentpropositions.MrMcGarryspenteightyearswithAmalgResourcesNLasaManagingDirectorandwasresponsibleforthedevelopmentoftheEloiseCopper Mine in Queensland from bare paddock to an underground mine producing 500,000 tpa ofcopper/goldore.MrMcGarryhasdevelopednumeroussuccessfulminingproje
19、ctsacrossAustralia.Duringthepastthreeyearshehasnotservedasadirectorofanyotherpubliccompanies.MarcusMichaelCA,B.BusExecutiveDirectorAppointed19March2012MarcusMichaelisaCharteredAccountantwithextensiveexperienceintheAustralianfinancialmarketsincludingASXcompanylistings,equityanddebtfunding,mergersanda
20、cquisitionsandcorporaterestructuresandrecapitalisations.MarcusisafoundingDirectorofMarshallMichaelPtyLtd,CharteredAccountants.Establishedin1994asaboutiquecorporateandbusinessadvisory,wealthmanagement,taxadvisoryandfinancialandmanagementreportingpractice,servicingminingandexploration,healthcareandinf
21、ormationtechnologysectors.MarcusgraduatedfromCurtinUniversitywithaBachelorofBusinessandisaMemberoftheInstituteofCharteredAccountants.DIRECTORSREPORT BEACONMINERALSLIMITED2014ANNUALREPORT6Duringthepastthreeyearshehasservedasadirectorofthefollowingpubliccompanies;CompanyDateofAppointmentDateofResignat
22、ionArgentMineralsLimitedApril2007NotApplicableStGeorgeMiningLimitedOctober2009NotApplicableCardinalResourcesLimitedDecember2012NotApplicableCOMPANYSECRETARYSarahShipwaywasappointedCompanySecretaryofBeaconMineralsLimitedon19March2012.SarahhasaBachelorofCommercefromMurdochUniversityandisamemberoftheIn
23、stituteofCharteredAccountantsinAustralia.DIRECTORSINTERESTSAtthedateofthisreport,theDirectorsheldthefollowinginterestsinBeaconMinerals.NameOrdinarySharesListedOptionsGeoffreyGreenhill59,863,33492,371,667GrahamMcGarry85,233,333138,691,667MarcusMichael58,228,33340,761,666SHAREOPTIONSAtthedateofthisrep
24、orttheCompanyhadonissue797,702,924ListedOptions,exercisableat$0.005onorbefore30September2015.Duringthefinancialyearended30June2014320,041optionswereconvertedtofullypaidordinaryshares.PRINCIPALACTIVITIESTheprincipalactivityoftheCompanyisthedevelopmentandproductionofgoldfromtheHalleysEastopenpitgoldmi
25、ne,WesternAustralia.RESULTSANDREVIEWOFOPERATIONSTheresultoftheentityforthefinancialyearended30June2014isanafterincometaxcomprehensivelossof$7,531,796(2013:lossof$1,283,499).AreviewofoperationsoftheCompanyduringtheyearended30June2014isprovidedinthe“ReviewoftheOperations”immediatelyprecedingthisDirect
26、orsReport.LIKELYDEVELOPMENTSTheCompanysfocusoverthenextfinancialyearwillbetocontinuetoprogressthedevelopmentofHalleysEastandcontinuetopursueotheropportunitiesinthemineralssectorinAustraliaandoffshore.FurthercommentaryontheCompanysplannedactivitiesovertheforthcomingyearisprovidedintheReviewofOperatio
27、ns.SIGNIFICANTCHANGESINSTATEOFAFFAIRSTherehavenotbeenanysignificantchangesinthestateofaffairsoftheCompanyduringthefinancialyear,otherthanthosenotedinthisfinancialreport.DIRECTORSREPORT BEACONMINERALSLIMITED2014ANNUALREPORT7ENVIRONMENTALISSUESTheCompanyisawareofitsenvironmentalobligationswithregardst
28、oitsexplorationactivitiesandensuresthatitcomplieswithallregulationswhencarryingoutexplorationwork.DIVIDENDSPAIDORRECOMMENDEDThedirectorsdonotrecommendthepaymentofadividendandnoamounthasbeenpaidordeclaredbywayofadividendtothedateofthisreport.DIRECTORSMEETINGSDuringthefinancialyear,8meetingsofDirector
29、swereheld.Attendancesbyeachdirectorduringtheyearwereasfollows:NameEligibletoattendAttendedGGreenhill88GMcGarry88MMichael88REMUNERATIONREPORTAUDITEDRemunerationpolicyTheremunerationpolicyofBeaconMineralsLimitedhasbeendesignedtoaligndirectorsobjectiveswithshareholderandbusinessobjectivesbyprovidingafi
30、xedremunerationcomponentwhichisassessedonanannualbasisinlinewithmarketratesandequityrelatedpayments.TheBoardofBeaconMineralsLimitedbelievestheremunerationpolicytobeappropriateandeffectiveinitsabilitytoattractandretainthebestdirectorstorunandmanagetheCompany.Allkeymanagementpersonnelaredirectorsofthe
31、Company.TheBoardspolicyfordeterminingthenatureandamountofremunerationforBoardmembersisasfollows:TheremunerationpolicyandsettingthetermsandconditionsfortheExecutivedirectorsandotherseniorstaffmembersisdevelopedandapprovedbytheBoardbasedonlocalandinternationaltrendsamongcomparativecompaniesandindustry
32、generally.Itexaminestermsandconditionsforemployeeincentive schemes,benefit plans and share plans.Independent advice is obtained when considerednecessarytoconfirmthatexecutiveremunerationisinlinewithmarketpracticeandisreasonablewithinAustralianexecutiverewardpractices.Executivesreceiveabasesalary(whi
33、chisbasedonfactorssuchaslengthofserviceandexperience)andsuperannuation.Consistentwithattractingandretainingtalentedexecutives,directorsandseniorexecutivesarepaidmarket rates associated with individuals in similar positions within the same industry.Options andperformanceincentivesmaybeissuedandkeyper
34、formanceindicatorssuchasprofitandproductionandreservesgrowthcanbeusedasmeasurementsforassessingexecutiveperformance.TheBoardpolicyistoremuneratenonexecutivedirectorsatmarketratesforcomparablecompaniesfortime,commitment and responsibilities.The Executive Directors,in consultation with independentadvi
35、sors,determinepaymentstothenonexecutivesandreviewtheirremunerationannually,basedonmarketpractice,dutiesandaccountability.ThemaximumaggregateamountoffeesthatcanbepaidtononexecutivedirectorsissubjecttoapprovalbyshareholdersattheannualGeneralMeetingandiscurrently$250,000perannum.Feesfornonexecutivedire
36、ctorsarenotlinkedtotheperformanceoftheDIRECTORSREPORT BEACONMINERALSLIMITED2014ANNUALREPORT8Company.However,toalignDirectorsinterestswithshareholderinterests,thedirectorsareencouragedtoholdsharesintheCompany.DetailsofdirectorsandexecutivesThefollowingtableprovidesemploymentdetailsofpersonswhowere,du
37、ringthefinancialyear,membersofkeymanagementpersonneloftheentity.DirectorsPositionHeldasat30June2014GGreenhillExecutiveChairmanGMcGarryManagingDirectorMMichaelExecutiveDirectorTheCompanydoesnothaveanykeymanagementpersonnelthatarenotDirectors.ExecutiveDirectorsremunerationandothertermsofemploymentarer
38、eviewedannuallybytheexecutivedirectorshavingregardtoperformanceagainstgoalssetatthestartoftheyear,relativetocomparableinformationandindependentexpertadvice.ExceptasdetailedintheRemunerationReport,nodirectorhasreceivedorbecomeentitledtoreceive,duringorsincethefinancialyearend,abenefitbecauseofacontra
39、ctmadebytheCompanyorarelatedbodycorporatewithadirector,afirmofwhichadirectorisamemberoranentityinwhichadirectorhasasubstantial financial interest.This statement excludes a benefit included in the aggregate amount ofemolumentsreceivedordueandreceivablebydirectorsandshownintheRemunerationReport,prepar
40、edinaccordancewiththeCorporationsRegulations,orthefixedsalaryofafulltimeemployeeoftheCompany.RemunerationofdirectorsRemunerationforthefinancialyearended30June2014.ShortTermBenefitsPostEmploymentBenefitsLongTermBenefitsEquitysettledsharebasedpaymentsDirectorsSalaryandFeesSuperannuationLongServiceLeav
41、eShares/Options(i)Total$GGreenhill201490,0008,32598,325201350,0004,50054,500GMcGarry201490,0008,32598,325201350,0004,50054,500MMichael201490,0008,32598,325201350,0004,50054,500Total2014270,00024,975294,9752013150,00013,500163,500(i)Nooptionsorsharesweregrantedaspartofremuneration.DIRECTORSREPORT BEA
42、CONMINERALSLIMITED2014ANNUALREPORT9EmploymentcontractsofdirectorsTheCompanyhasenteredintoanexecutiveservicesagreementwithMrGeoffreyGreenhill,MrGrahamMcGarryandMrMarcusMichael(collectivelytheDirectors)wherebytheDirectorreceivesremunerationof$100,000 per annum plus statutory superannuation.Prior to 1
43、November 2013 the Directors received$70,000perannumplusstatutorysuperannuation.TheDirectorsterminationprovisionsareasfollows:NOTICEPERIODPAYMENTINLIEUOFNOTICEEmployerinitiatedtermination:withoutreason03months6months seriousmisconduct0months0monthsEmployeeinitiatedtermination:3monthsNotspecifiedEquit
44、ybasedremunerationpaymentsDuring the financial year ended 30 June 2014 no equity was granted to directors as part of theirremuneration.OrdinaryshareholdingsofkeymanagementpersonnelDirectorsBalanceat1July2013OptionsexercisedduringtheyearNetotherchange(i)Balanceat30June2014GeoffreyGreenhill59,863,3345
45、9,863,334GrahamMcGarry84,233,3331,000,00085,233,333MarcusMichael58,228,33358,228,333Total202,325,0001,000,000203,325,000DirectorsBalanceat1July2012OptionsexercisedduringtheyearNetotherchange(ii),(iii)Balanceat30June2013GeoffreyGreenhill10,825,00049,038,33459,863,334GrahamMcGarry20,375,00063,858,3338
46、4,233,333MarcusMichael6,800,00051,428,33358,228,333Total38,000,000164,325,000202,325,000(i)Onmarkettransactionforcashconsideration.(ii)AcquiredunderEntitlementIssueProspectusdated17September2012.(iii)AcquiredunderanunderwritingagreementwiththeCompanytounderwritesharesissuedundertheEntitlementIssuePr
47、ospectusdated17September2012.OptionholdingsofkeymanagementpersonnelDirectorsBalanceat1July2013OptionsexercisedduringtheyearNetotherchange(iv)Balanceat30June2014GeoffreyGreenhill42,371,66750,000,00092,371,667GrahamMcGarry46,191,66792,500,000138,691,667MarcusMichael40,761,66640,761,666Total129,325,000
48、142,500,000271,825,000DIRECTORSREPORT BEACONMINERALSLIMITED2014ANNUALREPORT10DirectorsBalanceat1July2012OptionsexercisedduringtheyearNetotherchange(i),(ii),(iii)Balanceat30June2013GeoffreyGreenhill42,371,66742,371,667GrahamMcGarry46,191,66746,191,667MarcusMichael40,761,66640,761,666Total129,325,0001
49、29,325,000(i)Onmarkettransactionforcashconsideration.(ii)AcquiredunderEntitlementIssueProspectusdated17September2012.(iv)AcquiredunderanunderwritingagreementwiththeCompanytounderwritesharesissuedundertheEntitlementIssueProspectusdated17September2012.(v)On11November2013theCompanyissuedthefirsttranche
50、ofDebentureNotes.Thefacevalueofeachdebentureis$1.00andforevery1debenturenoteissued,theCompanygranted100ListedOptions.ForthefulltermsandconditionsoftheDebentureNotespleaserefertoNote16(c).TheDirectorsonthe10September2012enteredintoseparateagreementswiththeCompany,wherebytheDirectorswillunderwriteatot
51、alof$600,000ofthesharesissuedundertheEntitlementIssueProspectusdated17September2012.UndertheagreementstheDirectorswillbeentitledtoanunderwritingfeeof5%oftheunderwrittenamount.EachDirectorreceivedafeeof$10,000underthisagreement.Onthe11November2013GrahamMcGarry,GeoffreyGreenhillandOceanicCapitalPtyLtd
52、(togetherthe“RelatedParties”),whichisaCompanycontrolledbytheparentsofMarcusMichael,throughtheirrespectiverelatedpartyentities,participatedintheissueofDebentureNotesintheCompany.TheRelatedPartiesparticipationwasapprovedattheCompanysAnnualGeneralMeetingheldon7November2013.Thefacevalueofeachdebentureno
53、teis$1.00andforevery1debenturenoteissued,theCompanygranted100listedoptions.ThetermsandconditionsoftheDebentureNotesaredetailedinNote16(c).TheinterestpayableontheDebentureNotesis18%perannum.Duringtheyear$109,328(2013:$0)waspaidorpayabletoGrahamMcGarryand$59,096(2013:$0)toGeoffreyGreenhill,throughthei
54、rrespectiverelatedpartyentitiesand$109,328(2013:$0)waspaidorpayabletoOceanicCapitalPtyLtd.At30June2014$8,705(2013:$0)interestwaspayabletoGrahamMcGarry,throughhisrespectiverelatedpartyandOceanic Capital Pty Ltd and$4,706(2013:$0)interest was payable to Geoffrey Greenhill,through hisrespectiverelatedp
55、artyentity.DebentureNoteholderswerepaidafeeof3%placementfeeontheDebentureNotes.TheCompanypaidaplacementfeeof$27,750toGrahamMcGarryand$25,000toGeoffreyGreenhill,throughtheirrespectiverelatedpartyentitiesand$27,750toOceanicCapitalPtyLtd.On22October2013theCompanyannouncedthatLamertonPtyLtd,acompanyrela
56、tedtoGrahamMcGarry,hadprovidedanunsecuredloanfacilitytoBeaconof$200,000.NofeeswerepayabletoLamertonPtyLtdinrelationtothefacilityandinterestonthefacilitywasleviedattheprevailingoverdraftinterestratechargedbythebankandreimbursedtoLamertonPtyLtdatcost.McVerde Minerals Pty Ltd,of which Graham McGarry an
57、d Geoffrey Greenhill are Directors,providedequipmenthiretotheCompanyonordinarycommercialterms.Amountsthathavebeenpaidorpayabletotal$1,119,792(2013:$0).At30June2014$245,341(2013:$0)waspayabletoMcVerdeMinerals.DIRECTORSREPORT BEACONMINERALSLIMITED2014ANNUALREPORT11MrMichaelisadirectorandhasabeneficial
58、interestinMarshallMichaelCharteredAccountants.StaffofMarshall Michael Pty Ltd,including the Company Secretary Sarah Shipway,has provided corporatesecretarial,accounting,bookkeepingandgeneraladministrativeservicesduringtheyear.Amountsthathavebeenpaidorarepayabletotal$109,696(2013:$71,988).At30June201
59、4$4,227(2013:$4,276)waspayabletoMarshallMichaelCharteredAccountants.ENDOFREMUNERATIONREPORTINDEMNIFICATIONANDINSURANCEOFDIRECTORS,OFFICERSANDAUDITORSInaccordancewiththeconstitution,exceptasmaybeprohibitedbytheCorporationsAct2001everyOfficeroragentoftheCompanyshallbeindemnifiedoutofthepropertyoftheen
60、tityagainstanyliabilityincurredbyhiminhiscapacityasOfficeroragentoftheCompanyoranyrelatedcorporationinrespectofanyactoromissionwhatsoeverandhowsoeveroccurringorindefendinganyproceedings,whethercivilorcriminal.DuringtheyeartheCompanyagreedtopayanannualinsurancepremiumof$8,880(2013:$7,260)inrespectof
61、directors and officers liability and legal expenses insurance contracts,for directors,officers andemployeesoftheCompany.Theinsurancepremiumrelatesto:Costsandexpensesincurredbytherelevantofficersindefendingproceedings,whethercivilorcriminalandwhatevertheoutcome.Otherliabilitiesthatmayarisefromtheirpo
62、sition,withtheexceptionofconductinvolvingawillfulbreachofduty.SHAREOPTIONSUnissuedsharesTheCompanyat30June2014had797,702,924optionsonissue,theoptionsareexercisableat$0.005onorbefore30September2015.OptionholdersdonothaveanyrightstoparticipateinanyissuesofsharesorotherinterestsintheCompanyoranyotheren
63、tity.EVENTSSUBSEQUENTTOREPORTINGDATESincetheyearended30June2014tothedateofthisreporttheCompanyhasreceivedapproximately$3,863,000fromthesaleofgold.Other than above no matters or circumstances have arisen since the end of the financial year whichsignificantly affected or could significantly affect the
64、 operations of the Company,the results of thoseoperations,orthestateoftheaffairsoftheCompanyinfuturefinancialyears.AUDITORSINDEPENDENCEDECLARATIONTheauditorsindependencedeclarationfortheyearended30June2014hasbeenreceived,formspartofthedirectorsreportandcanbefoundonpage44oftheannualreport.DIRECTORSRE
65、PORT BEACONMINERALSLIMITED2014ANNUALREPORT12NONAUDITSERVICESTheCompanysauditor,WilliamBuckAudit(WA)PtyLtd,didnotprovideanynonauditservicestotheCompanyduringthefinancialyearended30June2014.Signedinaccordancewitharesolutionofthedirectorsmadepursuanttos298(2)oftheCorporationsAct2001.Onbehalfofthedirect
66、ors.GEOFFREYGREENHILLExecutiveChairmanDatedthis29September2014FINANCIALREPORTFORTHEYEARENDED30JUNE2014 BEACONMINERALSLIMITED2014ANNUALREPORT13STATEMENTOFPROFITORLOSSANDOTHERCOMPREHENSIVEINCOMEFORTHEYEARENDED30JUNE2014AustralianDollar($)Note30JUNE2014$30JUNE2013$Goldsales2,526,430Interestrevenue31,75
67、626,333REVENUE2,558,18626,333Costofgoodssold4(a)(4,877,039)GROSSPROFIT/(LOSS)(2,318,853)26,333Otherincome3224,50816,970Administrationexpenses(393,693)(311,510)Explorationanddevelopmentexpenditurewrittenoff12(4,312,388)(1,015,292)Financecosts4(b)(731,370)LOSSFROMBEFOREINCOMETAX(7,531,796)(1,283,499)I
68、ncometaxrefund/(expense)5LOSSAFTERINCOMETAXATTRIBUTABLETOMEMBERSOFTHECOMPANY(7,531,796)(1,283,499)OTHERCOMPREHENSIVEINCOMEItemsthatmaybereclassifiedtoprofitorloss:Revaluationofotherfinancialassetstofairvalue18(b)(4,200)(17,449)IncometaxrelatingtocomponentsofothercomprehensiveincomeTOTALCOMPREHENSIVE
69、LOSS(7,535,996)(1,300,948)TOTALCOMPREHENSIVELOSSATTRIBUTABLETOMEMBERSOFTHECOMPANY(7,353,996)(1,300,948)LOSSPERSHAREBasicanddiluted19(0.0051)(0.0010)TheabovestatementofprofitorlossandothercomprehensiveincomeshouldbereadinconjunctionwiththeaccompanyingnotesFINANCIALREPORTFORTHEYEARENDED30JUNE2014 BEAC
70、ONMINERALSLIMITED2014ANNUALREPORT14STATEMENTOFFINANCIALPOSITIONASAT30JUNE2014AustralianDollar($)Note30JUNE2014$30JUNE2013$CURRENTASSETSCashandcashequivalents20(a)372,177803,290Tradeandotherreceivables7158,03916,665Otherassets8729,669278,563Inventory92,154,143TOTALCURRENTASSETS3,414,0281,098,518NONCU
71、RRENTASSETSOtherfinancialassets10722,256745,124Plantandequipment11245,488202,352Explorationandevaluation expenditure1287,6375,402,705Developmentexpenditure131,208,721TOTALNONCURRENTASSETS2,264,1026,350,181TOTALASSETS5,678,1307,448,699CURRENTLIABILITIESTradeandotherpayables14932,739166,912Provisions1
72、517,500TOTALCURRENTLIABILITIES932,739184,412NONCURRENTLIABILITIESBorrowingsdebenturenotes164,000,000Provisions15136,000TOTALNONCURRENTLIABILITIES4,136,000TOTALLIABILITIES5,068,739184,412NETASSETS609,3917,264,287EQUITYIssuedCapital1723,766,55023,464,950Reserves18468,858(106,442)Accumulatedlosses(23,6
73、26,017)(16,094,221)TOTALEQUITY609,3917,264,287TheabovestatementoffinancialpositionshouldbereadinconjunctionwiththeaccompanyingnotesFINANCIALREPORTFORTHEYEARENDED30JUNE2014 BEACONMINERALSLIMITED2013ANNUALREPORT15 STATEMENTOFCHANGESINEQUITYFORTHEYEARENDED30JUNE2014Theabovestatementofchangesinequitysho
74、uldbereadinconjunctionwiththeaccompanyingnotesAustralianDollar($)ISSUEDSHAREOPTIONFAIRVALUEACCUMULATEDTOTALCAPITAL$RESERVE$RESERVE$LOSSES$EQUITY$BALANCEAT1JULY201323,464,950(106,442)(16,094,221)7,264,287Totalcomprehensiveloss(4,200)(7,531,796)(7,535,996)Sharesissuedduringtheyear300,000300,000Options
75、exercisedduringtheyear579,500579,500Shareissueexpense1,6001,600BALANCEAT30JUNE201423,766,550579,500(110,642)(23,626,017)609,391BALANCEAT1JULY201221,958,170(88,993)(14,810,722)7,058,455Totalcomprehensiveloss(17,449)(1,283,499)(1,300,948)Sharesissuedduringtheyear1,592,1181,592,118Shareissueexpense3232
76、Transferfrom share optionandequitybenefitsreserves(85,370)(85,370)BALANCEAT30JUNE201323,464,950(106,442)(16,094,221)7,264,287FINANCIALREPORTFORTHEYEARENDED30JUNE2014 BEACONMINERALSLIMITED2014ANNUALREPORT16 STATEMENTOFCASHFLOWSFORTHEYEARENDED30JUNE2014AustralianDollar($)Note30JUNE2014$30JUNE2013$CASH
77、FLOWSFROMOPERATINGACTIVITIESReceiptfromthesaleofgold2,526,430Expenditureonmininginterest(99,559)Paymentstosuppliersandemployees(5,086,361)(452,202)Interestreceived32,00328,998OtherGSTrefund58,60725,071Incometaxrefund314,161Netcashoutflowsfromoperatingactivities20(b)(2,568,880)(83,972)CASHFLOWSFROMIN
78、VESTINGACTIVITIESProceedsfromsaleofplantandequipment818Proceedsfromthesaleoflistedinvestments42,12921,018Proceeds/(payments)fromperformancebonds246,054(239,283)Purchaseofplantandequipment(180,451)(184,290)Paymentsfordeferredexplorationexpenditure(1,416,696)(626,651)Netcashoutflowsfrominvestingactivi
79、ties(1,308,146)(1,029,206)CASHFLOWFROMFINANCINGACTIVITIESProceedsfromissueofsharesnetofcapitalraisingcosts1,6321,506,748Proceeds from the issue of debenture notes net offinancingcosts3,444,281Loansfromrelatedparties:Proceedsfromborrowings200,000 Repaymentofborrowings(200,000)Netcashinflowsfromfinanc
80、ingactivities3,445,9131,506,748Netdecreaseincashandcashequivalents(431,113)393,570Cashandcashequivalents atthebeginningofthefinancialyear803,290409,720CASHANDCASHEQUIVALENTSATTHEENDOFTHEFINANCIALYEAR20(a)372,177803,290TheabovestatementofcashflowsshouldbereadinconjunctionwiththeaccompanyingnotesNOTES
81、TOTHEFINANCIALREPORTFORTHEYEARENDED30JUNE2014 BEACONMINERALSLIMITED2014ANNUALREPORT17 1CORPORATEINFORMATIONThefinancialreportofBeaconMineralsLimited(“Beacon”or“theCompany”)fortheyear1July2013to30June2014wasauthorizedforissueinaccordancewithacircularresolutionofthedirectorson29September2014.Beaconisa
82、Companylimitedbyshares,incorporatedinAustralia.TheCompanyssharesarepubliclytradedontheAustralianSecuritiesExchange.ThenatureoftheoperationsandprincipalactivityoftheCompanyaredescribedintheDirectorsReport.2SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(a)BasisofPreparationoftheFinancialReportThefinancialrepo
83、rtisageneralpurposefinancialreport,whichhasbeenpreparedinaccordancewiththerequirements of the Corporations Act 2001,Australian Accounting Standards and Interpretations of theAASB.Exceptforthecashflowinformation,thefinancialreporthasalsobeenpreparedonaaccrualsbasisandisbasedonhistoricalcosts.Forthepu
84、rposesofpreparingthefinancialstatements,theCompanyisaforprofitentity.ThefinancialreportispresentedinAustraliandollars.(b)GoingConcernThe Directors have prepared the financial statements on a going concern basis,which contemplatescontinuityofnormalbusinessactivitiesandtherealisationofassetsandextingu
85、ishmentofliabilitiesintheordinarycourseofbusiness.The Company has recorded a net accounting loss of$7,531,796 and net operating cash outflows of$2,568,880fortheyearended30June2014.TheconditionsindicateamaterialuncertaintythatmaycastsignificantdoubtthattheCompanysabilitytocontinueasagoingconcern.TheD
86、irectorsbelieveitisappropriatetopreparethefinancialreportonagoingconcernbasisduetothefollowing:AstheCompanysuccessfullyconvertedtheHalleyEastProjectintoaproducingminesiteduringtheyear.Basedoninternalmanagementandexpertreports,theCompanyreasonablybelievesthatfuturecashinflowswillbegeneratedfromfurthe
87、rsuccessfulexploitationoftheHalleysEastproject;Subsequentto30June2014theCompanyhasreceivedapproximately$3,863,00fromthesaleofgoldandhasfurthergoldassetsonhandwhichcanbesoldasrequiredtoprovideworkingcapitaltotheCompanyasneeded;andTheCompanyincurredsignificantstartupexpendituresduringtheyearended30Jun
88、e2014inorderto covert the Halleys East project to a producing mine site.These costs contributed to higheroperationalcashoutflowsduringtheyearended30June2014andwillnotrecurinfuturereportingperiods.Thefundsgeneratedduringtheyearfromthesaleofgoldassetsandtheissuingofdebentures,togetherwithexpectedcashi
89、nflowsfromfurthersuccessfulexploitationoftheHalleysEastprojectwillbeusedtomeettheongoingworkingcapitalrequirementsoftheCompany.NOTESTOTHEFINANCIALREPORTFORTHEYEARENDED30JUNE2014 BEACONMINERALSLIMITED2014ANNUALREPORT18 ShouldtheCompanybeunabletoachievethematterssetoutabove,thereisamaterialuncertainty
90、whethertheCompanywillbeabletocontinueasagoingconcernandtherefore,whethertheCompanywillbeabletorealisetheirassetsandextinguishtheirliabilitiesinthenormalcourseofbusiness.Thefinancialreportdoesnotincludeadjustmentsrelatingtotherecoverabilityandclassificationofrecordedassetamounts,ortotheamountsandclas
91、sificationorliabilitiesthatmightbenecessaryshouldtheCompanynotcontinueasagoingconcern.(c)AdoptionofnewandrevisedstandardsNewStandardsandInterpretationsadoptedin2013/2014The Company has adopted the following new standards and amendments to standards,including anyconsequentialamendmentstootherstandard
92、s,withadateofinitialapplicationof1January2013.AASB13:FairValueMeasurement;and AASB119:EmployeeBenefits.AccountingStandardandInterpretationAASB 13 Fair Value Measurement and AASB 20118 Amendments to Australian Accounting StandardsarisingfromAASB13.TheCompanyhasappliedAASB13forthefirsttimeinthecurrent
93、year.AASB13establishesasinglesourceofguidanceforfairvaluemeasurementsanddisclosuresaboutfairvaluemeasurements.ThescopeofAASB13isbroad;thefairvaluemeasurementrequirementsofAASB13applytobothfinancialinstrumentitemsandnonfinancialinstrumentitemsforwhichotherAASBsrequireorpermitfairvaluemeasurementsandd
94、isclosuresaboutfairvaluemeasurements,exceptforsharebasedpaymenttransactionsthatarewithinthescopeofAASB2SharebasedPayment,leasingtransactionsthatarewithinthescopeofAASB117Leases,andmeasurementsthathavesomesimilaritiestofairvaluebutarenotfairvalue(realisablevalueforthepurposesofmeasuringinventoriesorv
95、alueinuseforimpairmentassessmentpurposes).Applicationofthisstandardhasnotimpactedonthefinancialstatements oftheCompany.AASB119EmployeeBenefits(2011)andAASB201110AmendmentstoAustralianAccountingStandardsarisingfromAASB119(2011).AASB119(asrevisedin2011)changestheaccountingfordefinedbenefitplansandterm
96、inationbenefits.Themostsignificantchangerelatestotheaccountingforchangesindefinedbenefitobligationsandplanassets.Theamendmentsrequiretherecognitionofchangesindefinedbenefitobligationsandinthefairvalueofplanassetswhentheyoccur,andhenceeliminatethecorridorapproachpermittedunderthepreviousversionofAASB
97、119andacceleratetherecognitionofpastservicecosts.Allactuarialgainsandlossesarerecognisedimmediatelythroughothercomprehensiveincomeinorderforthenetpensionassetorliabilityrecognisedinthestatementoffinancialpositiontoreflectthefullvalueoftheplandeficitorsurplus.ApplicationisAASB119EmployeeBenefitshasno
98、timpactedonthefinancialstatementsfortheyearended30June2014.StandardsandInterpretationsinissuenotyetadoptedTheDirectorshavealsoreviewedallnewStandardsandInterpretationsthathavebeenissuedbutarenotyeteffectivefortheyearended30June2014.AsaresultofthisreviewtheDirectorsdonotexpecttherewillbeamaterialimpa
99、ct,ofthenewandrevisedStandardsandInterpretationsontheCompanyand,therefore,nochangeisnecessarytotheCompanysaccountingpolicies.NOTESTOTHEFINANCIALREPORTFORTHEYEARENDED30JUNE2014 BEACONMINERALSLIMITED2014ANNUALREPORT19(d)StatementofcomplianceCompliance with AASB ensures that the financial report,compri
100、sing the financial statements and notesthereto,complieswithInternationalFinancialReportingStandards(“IFRS”).(e)BorrowingcostsBorrowingcostsdirectlyattributabletotheacquisition,constructionorproductionofaqualifyingasset(i.e.anassetthatnecessarilytakesasubstantialperiodoftimetogetreadyforitsintendedus
101、eorsale)arecapitalisedaspartyofthecostofthatasset.Allotherborrowingcostsareexpensedaspartoffinancingcostsintheperiodincurred.Borrowingcostsconsistsofinterestandothercoststhananentityincursinconnectionwiththeborrowingoffunds.(f)IncomeTaxCurrentincometaxrefunded/(expensed)chargedtoprofitorlossistaxref
102、undable/(payable).Thoseamountsrecognisedareexpectedtoberecoveredfrom/(paidto)therelevanttaxationauthority.Deferredincometaxisprovidedonalltemporarydifferencesatthebalancedatebetweenthetaxbasesofassetsandliabilitiesandtheircarryingamountsforfinancialreportingpurposes.Deferredincometaxliabilitiesarere
103、cognisedforalltaxabletemporarydifferences:except where the deferred income tax liability arises from the initial recognition of an asset orliabilityinatransactionthatisnotabusinesscombinationand,atthetimeofthetransaction,affectsneitherthataccountingprofitnortaxableprofitorloss.Deferredincometaxasset
104、sarerecognisedforallthedeductibletemporarydifferences,carryforwardofunusedtaxassetsandunusedtaxlosses,totheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferences,andthecarryforwardofunusedtaxassetsandunusedtaxlossescanbeutilised.Thecarryingamountofdeferre
105、dincometaxisreviewedateachbalancedateandreducedtotheextentthatitisnolongerprobablethatsufficienttaxableprofitwillbeavailabletoallowallorpartofthedeferredincometaxassettobeutilised.Deferredincometaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplytotheyearwhentheassetisrealisedorthel
106、iabilityissettled,basedontaxrates(andtaxlaws)thathavebeenenactedorsubstantivelyenactedatthereportingdate.Incometaxesrelatingtoitemsrecogniseddirectlyinequityarenotrecognisedinequityandnotinprofitorloss.(g)ExplorationandevaluationexpenditureExploration and evaluation expenditures incurred are capital
107、ised in respect of each identifiable area ofinterest.Thesecostsareonlycapitalisedtotheextentthattheyareexpectedtoberecoveredthroughthesuccessfuldevelopmentoftheareaorwhereactivitiesintheareahavenotyetreachedastagethatpermitsreasonableassessmentoftheexistenceofeconomicallyrecoverablereserves.Thecosto
108、facquisitionofanareaofinterestandexplorationexpenditurerelatingtothatareaofinterestarecarriedforwardasanassetinthestatementoffinancialpositionintheyearinwhichtheyareincurred,wherethefollowingconditionsaresatisfied:NOTESTOTHEFINANCIALREPORTFORTHEYEARENDED30JUNE2014 BEACONMINERALSLIMITED2014ANNUALREPO
109、RT20(i)therightstotenureoftheareaofinterestarecurrent;and(ii)atleastoneofthefollowingconditionsisalsomet:a.theexplorationandevaluationexpendituresareexpectedtoberecoupedthroughsuccessfuldevelopmentandexplorationoftheareaofinterest,oralternately,byitssale;orb.explorationandevaluationactivitiesinthear
110、eaofinteresthavenot,atthereportingdate,reached a stage which permits a reasonable assessment of the existence or otherwiseeconomicallyrecoverablereserves.Explorationandevaluationassetsareassessedforimpairmentwhenfactsandcircumstancessuggestthattheircarryingamountexceedstheirrecoverableamountandwhere
111、thisisthecaseandimpairmentlossisrecognised.Where an impairment loss subsequently reverses,the carrying amount of the asset is increased to therevisedestimateofitsrecoverableamount,butonlytotheextentthattheincreasedcarryingamountdoesnotexceedthecarryingamountthatwouldhavebeendeterminedhadnoimpairment
112、lossbeenrecognisedfortheassetinthepreviousyear.Accumulatedcostsinrelationtoanabandonedareaarewrittenoffinfullagainstprofitintheyearinwhichthedecisiontoabandontheareaismade.Aregularreviewisundertakenofeachareaofinteresttodeterminetheappropriatenessofcontinuingtocapitalisecostsinrelationtothatareaofin
113、terest.(h)DevelopmentexpenditureDevelopmentexpenditureisrecognisedatcostlessaccumulatedamortisationandanyimpairmentlosses.Exploration and evaluation expenditure is reclassified to development expenditure once the technicalfeasibility and commercial viability of extracting the related mineral resourc
114、e is demonstrable.Wherecommercialproductioninanareaofinteresthascommenced,theassociatedcoststogetherwithanyforecastfuture capital expenditure necessary to develop proved and probable reserves are amortised over theestimatedeconomiclifeofthemineonaunitsofproductionbasis.Changes in factors such as est
115、imates of proved and probable reserves that affect unitofproductioncalculationsaredealtwithonaprospectivebasis.(i)FairValueofAssetsandLiabilitiesTheCompanymeasuressomeofitsassetsandliabilitiesatfairvalueoneitherarecurringornonrecurringbasis,dependingontherequirementsoftheapplicableAccountingStandard
116、.FairvalueisthepricetheCompanywouldreceivetosellanassetorwouldhavetopaytotransferaliabilityin an orderly(i.e.unforced)transaction between independent,knowledgeable and willing marketparticipantsatthemeasurementdate.Asfairvalueisamarketbasedmeasure,theclosestequivalentobservablemarketpricinginformati
117、onisusedtodeterminefairvalue.Adjustmentstomarketvaluesmaybemadehavingregardtothecharacteristicsofthespecificassetorliability.Thefairvaluesofassetsandliabilitiesthatarenottradedinanactivemarketaredeterminedusingoneormorevaluationtechniques.Thesevaluationtechniquesmaximise,totheextentpossible,theuseof
118、observablemarketdata.Totheextentpossible,marketinformationisextractedfromeithertheprincipalmarketfortheassetorliability(i.e.themarketwiththegreatestvolumeandlevelofactivityfortheassetorliability)or,intheabsenceofsuchamarket,themostadvantageousmarketavailabletotheentityattheendofthereportingNOTESTOTH
119、EFINANCIALREPORTFORTHEYEARENDED30JUNE2014 BEACONMINERALSLIMITED2014ANNUALREPORT21 period(i.e.themarketthatmaximisesthereceiptsfromthesaleoftheassetorminimisesthepaymentsmadetotransfertheliability,aftertakingintoaccounttransactioncostsandtransportcosts).Fornonfinancialassets,thefairvaluemeasuremental
120、sotakesintoaccountamarketparticipantsabilitytousetheassetinitshighestandbestuseortosellittoanothermarketparticipantthatwouldusetheassetinitshighestandbestuse.Thefairvalueofliabilitiesandtheentitysownequityinstruments(excludingthoserelatedtosharebasedpaymentarrangements)maybevalued,wherethereisnoobse
121、rvablemarketpriceinrelationtothetransferofsuchfinancialinstruments,byreferencetoobservablemarketinformationwheresuchinstrumentsareheldasassets.Wherethisinformationisnotavailable,othervaluationtechniquesareadoptedand,wheresignificant,aredetailedintherespectivenotetothefinancialstatements.Valuationtec
122、hniquesIntheabsenceofanactivemarketforanidenticalassetorliability,theCompanyselectsandusesoneormorevaluationtechniquestomeasurethefairvalueoftheassetorliability,TheCompanyselectsavaluationtechniquethatisappropriateinthecircumstancesandforwhichsufficientdataisavailabletomeasurefairvalue.Theavailabili
123、tyofsufficientandrelevantdataprimarilydependsonthespecificcharacteristicsoftheassetorliabilitybeingmeasured.ThevaluationtechniquesselectedbytheCompanyareconsistentwithoneormoreofthefollowingvaluationapproaches:Marketapproach:valuationtechniquesthatusepricesandotherrelevantinformationgeneratedbymarke
124、ttransactionsforidenticalorsimilarassetsorliabilities.Income approach:valuation techniques that convert estimated future cash flows or income andexpensesintoasinglediscountedpresentvalue.Costapproach:valuationtechniquesthatreflectthecurrentreplacementcostofanassetatitscurrentservicecapacity.Eachvalu
125、ationtechniquerequiresinputsthatreflecttheassumptionsthatbuyersandsellerswouldusewhenpricingtheassetorliability,includingassumptionsaboutrisks.Whenselectingavaluationtechnique,theCompanygivesprioritytothosetechniquesthatmaximisetheuseofobservableinputsandminimisetheuse of unobservable inputs.Inputs
126、that are developed using market data(such as publicly availableinformationonactualtransactions)andreflecttheassumptionsthatbuyersandsellerswouldgenerallyusewhenpricingtheassetorliabilityareconsideredobservable,whereasinputsforwhichmarketdataisnotavailable and therefore are developed using the best i
127、nformation available about such assumptions areconsideredunobservable.FairvaluehierarchyAASB 13 requires the disclosure of fair value information by level of the fair value hierarchy,whichcategorisesfairvaluemeasurementsintooneofthreepossiblelevelsbasedonthelowestlevelthataninputthatissignificanttot
128、hemeasurementcanbecategorisedintoasfollows:Level1Measurementsbasedonquotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilitiesthattheentitycanaccessatthemeasurementdate.MeasurementsbasedoninputsotherthanquotedpricesincludedinLevel1thatareobservablefortheassetorliability,eitherdirectlyori
129、ndirectly.NOTESTOTHEFINANCIALREPORTFORTHEYEARENDED30JUNE2014 BEACONMINERALSLIMITED2014ANNUALREPORT22 Level2MeasurementsbasedoninputsotherthanquotedpricesincludedinLevel1thatareobservablefortheassetorliability,eitherdirectlyorindirectlyLevel3Measurementsbasedonunobservableinputsfortheassetorliability
130、.Thefairvaluesofassetsandliabilitiesthatarenottradedinanactivemarketaredeterminedusingoneormore valuation techniques.These valuation techniques maximise,to the extent possible,the use ofobservablemarketdata.Ifallsignificantinputsrequiredtomeasurefairvalueareobservable,theassetorliabilityisincludedin
131、Level2.Ifoneormoresignificantinputsarenotbasedonobservablemarketdata,theassetorliabilityisincludedinLevel3.The Company would change the categorisation within the fair value hierarchy only in the followingcircumstances:(i)ifamarketthatwaspreviouslyconsideredactive(Level1)becameinactive(Level2orLevel3
132、)orviceversa;or(ii)ifsignificantinputsthatwerepreviouslyunobservable(Level3)becameobservable(Level2)orviceversa.Whenachangeinthecategorisationoccurs,theCompanyrecognisestransfersbetweenlevelsofthefairvaluehierarchy(i.e.transfersintoandoutofeachlevelofthefairvaluehierarchy)onthedatetheeventorchangein
133、circumstancesoccurred.(j)CashandcashequivalentsCashandcashequivalentscomprisesofcashatbankandinhandandshorttermdepositswithanoriginalmaturityofthreemonthsorless.ForthepurposesoftheCompanysstatementofcashflows,cashandcashequivalentsconsistofcashandcashequivalentsasdefinedabove,netofoutstandingbankove
134、rdrafts.(k)TradeandotherreceivablesTrade receivables are measured on initial recognition at fair value and are subsequently measured atamortisedcostusingtheeffectiveinterestratemethod,lessanyallowanceforimpairment.Tradereceivablesaregenerallydueforsettlementwithinperiodsrangingfrom15daysto30days.Imp
135、airmentoftradereceivablesiscontinuallyreviewedandthosethatareconsideredtobeuncollectiblearewrittenoffbyreducingthecarryingamountdirectly.AnallowanceaccountisusedwhenthereisobjectiveevidencethattheCompanywillnotbeabletocollectallamountsdueaccordingtotheoriginalcontractualterms.FactorsconsideredbytheC
136、ompanyinmakingthisdeterminationincludeknownsignificantfinancialdifficultiesofthedebtor,reviewoffinancialinformationandsignificantdelinquencyinmakingcontractualpaymentstotheCompany.Theimpairmentallowanceissetequaltothedifferencebetweenthecarryingamountofthereceivableandthepresentvalueofestimatedfutur
137、ecashflows,discountedattheoriginaleffective interest rate.Where receivables are shortterm discounting is not applied in determining theallowance.Theamountoftheimpairmentlossisrecognisedinthestatementofcomprehensiveincomewithinotherexpenses.When a trade receivable for which an impairment allowance ha
138、d been recognised becomesuncollectibleinasubsequentperiod,itiswrittenoffagainsttheallowanceaccount.SubsequentrecoveriesofNOTESTOTHEFINANCIALREPORTFORTHEYEARENDED30JUNE2014 BEACONMINERALSLIMITED2014ANNUALREPORT23 amounts previously written off are credited against other expenses in the statement of c
139、omprehensiveincome.(l)InventoriesGoldbullion,goldincircuitandorestockpilesarephysicallymeasuredorestimatedandvaluedatthelowerofcostandnetrealisablevalue.Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusiness,lessestimatedcostsofcompletionandcostsofsellingthefinalproduct.Cost is de
140、termined by the weighted average method and comprises of direct purchase costs and anappropriateportionoffixedandvariableoverheadcosts.(m)EmployeebenefitsShorttermemployeebenefitsProvisionismadefortheCompanysobligationsforshorttermemployeebenefits.Shorttermemployeebenefitsarebenefits(otherthantermin
141、ationbenefits)thatareexpectedtobesettledwhollybefore12monthsaftertheendoftheannualreportingperiodinwhichtheemployeesrendertherelatedservice,includingwages,salariesandsickleave.Shorttermemployeebenefitsaremeasuredatthe(undiscounted)amountsexpectedtobepaidwhentheobligationissettled.The Companys obliga
142、tions for shortterm employee benefits such as wages,salaries and sick leave arerecognisedaspartofcurrenttradeandotherpayablesinthestatementoffinancialposition.TheCompanysobligationsforemployeesannualleaveandlongserviceleaveentitlementsarerecognisedasprovisionsinthestatementoffinancialposition.Define
143、dcontributionsuperannuationbenefitsAllemployeesoftheCompanyotherthanthosethatreceivedefinedbenefitentitlementsreceiveddefinedcontributionsuperannuationentitlements,forwhichtheCompanypaysthefixedsuperannuationguaranteecontribution(currently9.25%oftheemployeesaverageordinarysalary)totheemployeessupera
144、nnuationfundofchoice.Allcontributionsinrespectoftheemployeesdefinecontributionentitlementsarerecognisedasanexpensewhentheybecomepayable.TheCompanysobligationwithrespecttheemployeesdefinedcontributionentitlementsislimitedtoitsobligationforanunpaidsuperannuationguaranteecontributionsatthe end of the r
145、eporting period.All obligations for unpaid superannuation guarantee contributions aremeasured at the(undiscounted)amounts expected to be paid when the obligation is settled and arepresentedascurrentliabilitiesintheCompanysstatementoffinancialposition.(n)ImpairmentofassetsTheCompanyassessesateachbala
146、ncedatewhetherthereisanindicationthatanassetmaybeimpaired.Ifanysuchindicationexists,orwhenannualimpairmenttestingforanassetisrequired,theCompanymakesanestimateoftheassetsrecoverableamount.Asassetsrecoverableamountisthehigherofitsfairvalue;lesscoststosellanditsvalueinuseandisdeterminedforanindividual
147、asset,unlesstheassetdoesnotgeneratecashinflowsthatarelargelyindependentofthosefromotherassetsorCompanysofassetsandtheassetsvalueinusecannotbeestimatedtobeclosetoitsfairvalue.Insuchcasestheassetistestedforimpairmentaspartofthecashgeneratingunittowhichitbelongs.Whenthecarryingamountofanassetorcashgene
148、rating unit exceeds its recoverable amount,the asset or cashgenerating unit is consideredimpairedandiswrittendowntoitsrecoverableamount.Inassessingthevalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapretaxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmone
149、yandtherisksspecifictotheasset.Impairmentlossesrelatingtocontinuingoperationsarerecognisedinthoseexpensecategoriesconsistentwiththefunctionoftheimpairedassetunlesstheassetiscarriedatrevaluedamount(inwhichcasetheimpairmentlossistreatedasarevaluationdecrease).NOTESTOTHEFINANCIALREPORTFORTHEYEARENDED30
150、JUNE2014 BEACONMINERALSLIMITED2014ANNUALREPORT24 Anassessmentisalsomadeateachbalancedateastowhetherthereisanyindicationthatpreviouslyrecognisedimpairmentlossesmayno longerexistormayhavedecreased.Ifsuchindicationexists,therecoverableamountisestimated.Apreviouslyrecognisedimpairmentlossisreversedonlyi
151、ftherehasbeenachangeintheestimatesusedtodeterminetheassetsrecoverableamountsincethelastimpairmentlosswasrecognised.Ifthatisthecasethecarryingamountoftheassetisincreasedtoitsrecoverableamount.That increased amount cannot exceed the carrying amount that would have been determined,net ofdepreciation,ha
152、dnoimpairmentlossbeenrecognisedfortheassetinprioryears.Suchreversalisrecognisedinprofitorlossunlesstheassetiscarriedatrevaluedamount,inwhichcasethereversalistreatedasarevaluationincrease.Aftersuchareversalthedepreciationchargeisadjustedinfutureperiodstoallocatetheassetsrevisedcarryingamount,lessanyr
153、esidualvalue,onasystemicbasisoveritsremainingusefullife.(o)EarningspershareBasicearningspershareiscalculatedasnetlossattributabletomembersoftheCompany,adjustedtoexcludeanycostsofservicingequity(otherthandividends)andpreferencesharedividends,dividedbytheweightedaveragenumberofordinaryshares,adjustedf
154、oranybonuselement.(p)Goodsandservicestax(GST)Revenues,expensesandassetsarerecognisednetoftheamountofGST,exceptwheretheamountofGSTincurredisnotrecoverablefromtheAustralianTaxationOffice(“ATO”).InthesecircumstancestheGSTisrecognisedaspartofthecostofacquisitionoftheassetoraspartofanitemoftheexpense.Rec
155、eivablesandpayablesinthestatementoffinancialpositionareshowninclusiveofGST.ThenetamountofGSTrecoverablefrom,orpayableto,theATOisincludedasacurrentassetorliabilityinthestatementoffinancialposition.CashFlowsareincludedinthestatementofcashflowsonanetbasis.TheGSTcomponentsofcashflowsarising from investi
156、ng and financial activities which are recoverable from,or payable to,the ATO areclassifiedasoperatingcashflows.(q)InvestmentsAllinvestmentsareinitiallyrecognisedatcost,beingthefairvalueoftheconsiderationgivenandincludingacquisitionchargesassociatedwiththeinvestment.Gainsorlossesonavailableforsaleinv
157、estmentsarerecognisedasaseparatecomponentofequityuntiltheinvestmentissold,collectedorotherwisedisposedof,oruntiltheinvestmentisdeterminedtobeimpaired,atwhichtimethecumulativegainorlosspreviouslyreportedinequityisincludedinthestatementofprofitorlossandothercomprehensiveincome.(r)FinancialInstrumentsF
158、inancial assets and financial liabilities are recognised in the statement of financial position when theCompany becomes party to the contractual provisions of the financial instrument.A financial asset isderecognisedwhenthecontractualrightstothecashflowsfromthefinancialassetsexpireoraretransferredan
159、dnolongercontrolledbytheentity.Afinancialliabilityisremovedfromthestatementoffinancialpositionwhentheobligationspecifiedinthecontractisdischargedorcancelledorexpires.Financialassetsandfinancialliabilitiesclassifiedasheldfortradingaremeasuredatfairvaluethroughprofitorloss.NOTESTOTHEFINANCIALREPORTFOR
160、THEYEARENDED30JUNE2014 BEACONMINERALSLIMITED2014ANNUALREPORT25 Uponinitialrecognitionafinancialassetorfinancialliabilityisdesignatedasatfairvaluethroughprofitorlosswhen:(a)anentirecontractcontainingoneormoreembeddedderivativesisdesignatedasafinancialassetorfinancialliabilityatfairvaluethroughprofito
161、rloss;(b)doingsoresultsinmorerelevantinformation,becauseeither:(i)iteliminatesorsignificantlyreducesameasurementorrecognitioninconsistencythatwouldotherwisearisefrommeasuringassetsorliabilitiesorrecognizinggainsorlossesonthemondifferentbases;or(ii)aCompanyoffinancialassets,financialliabilitiesorboth
162、ismanagedanditsperformanceisevaluated on a fair value basis,in accordance with a documented risk management orinvestmentstrategy,andinformationabouttheCompanyisprovidedinternallyonthatbasistokeymanagementpersonnel.Investmentsinequityinstrumentsthatdonothaveaquotedmarketpriceinanactivemarket,andwhose
163、fairvaluecannotbereliablymeasuredarenotdesignatedasatfairvaluethroughprofitorloss.Againorlossarisingfromachangeinthefairvalueofafinancialassetorfinancialliabilityclassifiedasatfairvaluethroughprofitorlossisrecognisedinprofitorloss.Financialassetsnotmeasuredatfairvaluecomprise:(a)loansandreceivablesb
164、eingnonderivativefinancialassetswithfixedordeterminablepaymentsthatare not quoted in an active market.These are measured at amortised cost using the effectiveinterestratemethod;(b)heldtomaturity investments being nonderivative financial assets with fixed or determinablepaymentsandfixedmaturitythatwi
165、llbeheldtomaturity.Thesearemeasuredatamortisedcostusingtheeffectiveinterestmethod;and,(c)investmentsinequityinstrumentsthatdonothaveaquotedmarketpriceinanactivemarketandwhosefairvaluecannotbereliablymeasured.Thesearemeasuredatcosttogetherwithderivativesthatarelinkedtoandmustbesettledbythedeliveryofs
166、uchinvestments.Availableforsalefinancialassetsarenonderivativefinancialassets,whicharedesignatedasavailableforsaleorthatarenotclassifiedasloansandreceivables,heldtomaturityinvestmentsorfinancialassetsasatfairvaluethroughprofitorloss.Againorlossarisingfromachangeinthefairvalueofanavailableforsalefina
167、ncialassetisrecogniseddirectlyinequity,throughthestatementofchangesinequity(exceptforimpairmentlossesandforeignexchangegainsorlosses)untilthefinancialassetisderecognisedatwhichtimethecumulativegainorlosspreviouslyrecognisedinequityisrecognisedinprofitorloss.Regularwaypurchasesoffinancialassetsareacc
168、ountedforasfollows:financialassetsheldfortradingattradedate heldtomaturityinvestmentsattradedate loansandreceivablesattradedate availableforsalefinancialassetsattradedateExceptforthefollowingallfinancialliabilitiesaremeasuredatamortisedcostusingtheeffectiveinterestratemethod:(a)financialliabilitiesa
169、tfairvaluethroughprofitorlossandderivativesthatareliabilitiesmeasuredatfairvalue;and(b)financialliabilitiesthatarisewhenatransferoffinancialassetdoesnotqualifyforderecognitionorareaccountedforusingthecontinuinginvolvementapproach.NOTESTOTHEFINANCIALREPORTFORTHEYEARENDED30JUNE2014 BEACONMINERALSLIMIT
170、ED2014ANNUALREPORT26 Theamortisedcostofafinancialassetorafinancialliabilityistheamountinitiallyrecognisedminusprincipalrepayments,plus or minus cumulative amortisation of any difference between the initial amount andmaturityamountandminusanywritedownforimpairmentoruncollectability.(s)Plantandequipme
171、ntPlantandequipmentisstatedatcostlessaccumulateddepreciationandanyaccumulatedimpairmentlosses.Suchcostsincludethecostofreplacingpartsthatareeligibleforcapitalisationwhenthecostofreplacingthepartsisincurred.Similarly,wheneachmajorinspectionisperformed,itscostisrecognisedinthecarryingamountofplantande
172、quipmentasareplacementonlyifitiseligibleforcapitalisation.Allotherrepairsandmaintenancearerecognisedinprofitorlossasincurred.Thecostofacquiredassetsalsoincludestheinitialestimateatthetimeofinstallationandduringtheperiodofuse,whenrelevant,ofthecostsofdismantlingandremovingtheitemsandrestoringthesiteo
173、nwhichtheyarelocated,andchangesinthemeasurementofexistingliabilitiesrecognisedforthesecostsresultingfromchangesinthetimingoroutfloworresourcesrequiredtosettletheobligationorfromchangesinthediscountrate.Wherepartsofanitemofplantandequipmenthavedifferentlives,theyareaccountedforasseparateitems(majorco
174、mponents)ofplantandequipment.DepreciationDepreciationiscalculatedonadiminishingvaluebasisovertheestimatedusefullifeoftheassetsasfollows:Plantandequipment27yearsMotorvehicles25yearsTheassetsresidualvalues,usefullivesandamortisationmethodsarereviewed,andadjustedifappropriate,ateachfinancialyearend.Imp
175、airmentThe carrying values of plant and equipment are reviewed for impairment at each balance date,withrecoverableamountbeingestimatedwheneventsorchangesincircumstancesindicatethatthecarryingvaluemaybeimpaired.Therecoverableamountofplantandequipmentisthehigheroffairvaluelesscoststosellandvalueinuse.
176、Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapretaxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheasset.Foranassetthatdoesnotgeneratelargelyindependentcashinflows,recoverableamountisdeterminedforthecashgenerating
177、unittowhichtheassetbelongs,unlesstheassetsvalueinusecanbeestimatedtoapproximatefairvalue.Animpairmentexistswhenthecarryingvalueofanassetorcashgeneratingunitsexceedsitsestimatedrecoverableamount.Theassetorcashgeneratingunitisthenwrittendowntoitsrecoverableamount.Forplantandequipment,impairmentlossesa
178、rerecognisedinthestatementofprofitorlossandothercomprehensiveincomeinthecostofsaleslineitem.DerecognitionanddisposalAnitemofplantandequipmentisderecognisedupondisposalorwhennofurtherfutureeconomicbenefitsareexpectedfromitsuseordisposal.NOTESTOTHEFINANCIALREPORTFORTHEYEARENDED30JUNE2014 BEACONMINERAL
179、SLIMITED2014ANNUALREPORT27 Anygainorlossarisingonderecognitionoftheasset(calculatedasthedifferencebetweenthenetdisposalproceeds and the carrying amount of the asset)is included in statement of profit or loss and othercompressiveincomeintheyeartheassetisderecognised.(t)TradeandotherpayablesTradepayab
180、lesandotherpayablesarecarriedatamortisedcostandrepresentliabilitiesforgoodsandservicesprovidedtotheCompanypriortotheendofthefinancialyearthatareunpaidandarisewhentheCompanybecomesobligedtomakefuturepaymentsinrespectofthepurchaseofthesegoodsandservices.Tradeandotherpayablesarepresentedascurrentliabil
181、itiesunlesspaymentisnotduewithin12months.(u)DebentureNotesDebenturenotesareinitiallyrecognisedatfairvalue,netoftransactioncostsincurred.Debenturenotesaresubsequentlymeasuredatamortisedcost.Anydifferencebetweentheproceeds(netoftransactioncosts)andtheredemptionamountisrecognisedinprofitorlossoverthepe
182、riodofthedebenturenotesusingtheeffectiveinterestmethod.Feespaidforthedebenturenotesarecapitalisedasaprepaymentandamortisedovertheperiodofthefacilitytowhichitrelates.Debenturenotesareremovedfromthestatementoffinancialpositionwhentheobligationspecifiedinthecontract is discharged,cancelled or expired.T
183、he difference between the carrying amount of a financialliabilitythathasbeenextinguishedortransferredtoanotherpartyandtheconsiderationpaid,includinganynoncashassetstransferredorliabilitiesassumed,isrecognisedinprofitorlossasotherincomeorfinancecosts.Debenturenotesareclassifiedascurrentliabilitiesunl
184、esstheCompanyhasanunconditionalrighttodefersettlementoftheliabilityforatleast12monthsafterthereportingperiod.Thekeytermsofthedebenturenotesareincludedinnote16(c).(v)ProvisionsProvisionsarerecognisedwhentheCompanyhasapresentobligation(legalorconstructive)asaresultofapastevent,itisprobablethatanoutflo
185、wofresourcesembodyingeconomicbenefitswillberequiredtosettlethe obligation and a reliable estimate can be made of the amount of the obligation.Provisions are notrecognisedforfutureoperatinglosses.WhentheCompanyexpectssomeorallofaprovisiontobereimbursed,forexampleunderaninsurancecontract,thereimbursem
186、entisrecognisedasaseparateassetbutonlywhenthereimbursementisvirtuallycertain.The expense relating to any provision is presented in the statement of profit or loss and othercomprehensiveincomenetofanyreimbursement.Provisionsaremeasuredatthepresentvalueormanagementsbestestimateoftheexpenditurerequired
187、tosettlethepresentobligationattheendofthereportingperiod.Iftheeffectofthetimevalueofmoneyismaterial,provisionsarediscountedusingacurrentpretaxratethatreflectstherisksspecifictotheliability.Whendiscountingisused,theincreaseintheprovisionduetothepassageoftimeisrecognisedasaninterestexpense.NOTESTOTHEF
188、INANCIALREPORTFORTHEYEARENDED30JUNE2014 BEACONMINERALSLIMITED2014ANNUALREPORT28 OnerouscontractsPresentobligationsarisingunderonerouscontractsarerecognisedandmeasuredasprovisions.AnonerouscontractisconsideredtoexistwheretheCompanyhasacontractunderwhichtheunavoidablecostsofmeetingtheobligationsundert
189、hecontractexceedtheeconomicbenefitsexpectedtobereceivedfromthecontract.WarrantiesProvisionsfortheexpectedcostofwarrantyobligationsunderlocalsaleofgoodslegislationarerecognisedatthedateofsaleoftherelevantproducts,atthedirectorsbestestimateoftheexpenditurerequiredtosettletheCompanysobligation.Sitereha
190、bilitationTheCompanyrecordedthepresentvalueoftheestimatedcostsoflegalandconstructiveobligationstorestoreoperatinglocationsintheperiodinwhichtheobligationisincurred.Thenatureofrehabilitationactivitiesincludesdismantlingandremovingstructures,rehabilitatingmines,dismantlingoperatingfacilities,andreclam
191、ationandrevegetationofaffectedareas.Theprovisionisabestestimateofthepresentvalueoftheexpenditurerequiredtosettletherehabilitationobligationatthereportingdate,basedoncurrentlegalrequirementsandtechnology.(w)ContributedequityOrdinarysharesandoptionsareclassifiedascontributedequity.Incrementalcostsdire
192、ctlyattributabletotheissueofnewsharesoroptionsareshowninequityasadeduction,netoftax,fromtheproceeds.(x)RevenueRevenueisrecognisedandmeasuredatfairvalueoftheconsiderationreceivedorreceivabletotheextentthatitisprobablythattheeconomicbenefitwillflowtotheentityandtherevenuecanbemeasuredreliably.Thefollo
193、wingspecificrecognitioncriteriamustalsobemetbeforerevenueisrecognisedGoldSalesRevenueisrecognisedwhentherehasbeenatransferofrisksandrewardsfromtheCompanytoanexternalparty,no further processing is required by the Company,quality and quantity of the goods has beendeterminedwithreasonableaccuracy,these
194、llingpriceisfixedordeterminable,andcollectabilityisprobable.InterestRevenueisrecognisedastheinterestaccrues(usingtheeffectiveinterestmethod,whichistheratethatexactlydiscountsestimatedfuturecashreceiptsthroughtheexpectedlifeofthefinancialinstrument)tothenetcarryingamountofthefinancialasset.(y)Signifi
195、cantaccountingestimatesandjudgementsTheapplicationofaccountingpoliciesrequirestheuseofjudgements,estimatesandassumptionsaboutcarryingvaluesofassetsandliabilitiesthatarenotreadilyapparentfromothersources.Theestimatesandassociated assumptions are based on historical experience and other factors that a
196、re considered to berelevant.Actualresultsmaydifferfromtheseestimates.Theestimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionsarerecognisedintheperiodinwhichtheestimateisrevisedifitaffectsonlythatperiod,orintheperiodoftherevisionandfutureperiodsiftherevisionaffectsbothcurrentandfutur
197、eperiods.ExplorationandevaluationcostscarriedforwardTherecoverabilityofthecarryingamountofexplorationandevaluationcostscarriedforwardhasbeenreviewedbythedirectors.Inconductingthereview,therecoverableamounthasbeenassessedbyreferenceNOTESTOTHEFINANCIALREPORTFORTHEYEARENDED30JUNE2014 BEACONMINERALSLIMI
198、TED2014ANNUALREPORT29 tothehigheroffairvaluelesscoststosellandvalueinuse.Indeterminingvalueinuse,futurecashflowsarebasedon:Estimatesoforereservesandmineralresourcesforwhichthereisahighdegreeofconfidenceofeconomicextraction;Estimatedproductionandsaleslevels;Estimatefuturecommodityprices;Futurecostsof
199、production;Futurecapitalexpenditure;and/or Futureexchangerates.Variations to expected future cash flows,and timing thereof,could result in significant changes to theimpairmenttestresults,whichinturncouldimpactfuturefinancialresults.ImpairmentofavailableforsalefinancialassetsTheCompanyfollowstheguida
200、nceofAASB139FinancialInstruments:RecognitionandMeasurementtodetermine when an availableforsale financial asset is impaired.The determination requires significantjudgement.Inmakingthisjudgement,theCompanyevaluates,amongotherfactors,thedurationandextenttowhichthefairvalueofaninvestmentsislessthanitsco
201、standthefinancialhealthofandshorttermbusinessoutlookfortheinvestee,includingfactorssuchasindustryandsectorperformance,changesintechnologyandoperationalandfinancingcashflows.RehabilitationobligationsThe Company assesses site rehabilitation liabilities annually.The provision is recognised based on ana
202、ssessment of the estimated costs of closure and reclamation of the areas using internal informationconcerningenvironmentalissuesintheexplorationandpreviouslyminedareas,togetherwithinputfromvariousenvironmentalconsultants.Significantestimationisrequiredindeterminingtheprovisionforsiterehabilitationas
203、therearemanyfactorsthatmayaffectthetimingandultimatecoststorehabilitatesiteswhere mining and/or exploration activities have previously taken place.These factors include futuredevelopment/explorationactivity,changesinthecostsofgoodsandservicesrequiredforrestorationactivityandchangestothelegalandstatu
204、toryframework.Thesefactorsmayresultinfutureactualexpendituredifferingfromtheamountscurrentlyprovided.(z)ComparativeinformationComparative information has been amended where necessary to ensure compliance with current yeardisclosures.3 OTHERINCOME30JUNE 2014$30JUNE 2013$Gainonsaleoflistedinvestments2
205、3,46212,048Fueltaxrebates147,596Other53,4504,922224,50816,970NOTESTOTHEFINANCIALREPORTFORTHEYEARENDED30JUNE2014 BEACONMINERALSLIMITED2014ANNUALREPORT30 4 EXPENSES(a)CostofGoodsSold30JUNE 2014$30JUNE 2013$Costsofproduction6,733,943Royalties73,526Depreciationofmineplantandequipment102,225Amortisationo
206、fexplorationanddevelopmentcosts121,488Closinginventory(2,154,143)4,877,039(b)Financecosts30JUNE 2014$30JUNE 2013$Financecosts731,370731,3705 INCOMETAX(a)Primafacieincometaxbenefitat30%onlossfromordinaryactivitiesisreconciledtotheincometaxprovidedinthefinancialstatements30JUNE 2014$30JUNE 2013$Lossbe
207、foreincometax(7,531,796)(1,283,499)Incometaxcalculatedat30%(2,259,538)(385,050)Taxeffectof;Expensesnotallowed4,119785Temporarydifferences136,394111,363Section40880deduction(39,095)(43,419)Deferredtaxassetnotbroughttoaccount2,158,120316,321Incometaxattributabletooperatinglosses(b)DeferredtaxassetsThe
208、 potential deferred tax asset arising from the tax losses and temporary differences have not beenrecognisedasanassetbecauserecoveryoftaxlossesisnotyetprobable.30JUNE 2014$30JUNE 2013$Australianaccumulatedtaxlosses6,670,4584,512,345Provisionsnetofprepayments(267,498)9,968Deferredexplorationexpenditur
209、e(388,908)(1,620,812)Section40880deduction23,63962,734Unrecogniseddeferredtaxassetsrelatingtotheabovetemporarydifferences6,037,6912,964,235NOTESTOTHEFINANCIALREPORTFORTHEYEARENDED30JUNE2014 BEACONMINERALSLIMITED2014ANNUALREPORT31 Thebenefitswillonlybeobtainedif;(i)TheCompanyderivesfutureassessablein
210、comeofanatureandofanamountsufficienttoenablethebenefitfromthedeductionforthelossestoberealised.(ii)TheCompanycontinuestocomplywiththeconditionsindeductibilityimposedbytheLaw;and(iii)No change in tax legislation adversely affected the Company in realising the benefits from thedeductionsorthelosses.6
211、AUDITORSREMUNERATIONAmountsreceivedordueandreceivablebytheCompanysAuditors;30JUNE 2014$30JUNE 2013$AuditingandreviewoftheCompanysfinancialstatements20,64023,75020,64023,7507 RECEIVABLESANDOTHERASSETSTradeandOtherReceivablesCurrentOtherreceivable30JUNE2014$35,21430JUNE2013$2,267GSTrefund122,82514,398
212、158,03916,665OtherreceivableincludesamountsoutstandingforGovernmentrebatesof$33,194(2013:$0)andaccruedinterestof$2,020(2013:$2,267).GSTamountsarenoninterestbearingandhaverepaymenttermsapplicableundertherelevantgovernmentauthorities8 OTHERASSETSShorttermdeposits30JUNE2014$20,62430JUNE2013$266,677Prep
213、ayments18,18111,886Advancepayment184,264Borrowingcosts506,600729,669278,5639 INVENTORYAtcost30JUNE2014$30JUNE2013$Orestockpiles2,154,1432,154,143NOTESTOTHEFINANCIALREPORTFORTHEYEARENDED30JUNE2014 BEACONMINERALSLIMITED2014ANNUALREPORT32 10 OTHERFINANCIALASSETS30JUNE201430JUNE2013$Investmentinlistedsh
214、ares(availableforsaleassets)Atfairvalue722,256745,124Availableforsaleassetsconsistofinvestmentsinordinaryshares,andthereforehavenofixedmaturitydateorcouponrate.11 PLANTANDEQUIPMENT30JUNE201430JUNE2013$PlantandEquipmentAtcost268,836158,621Less:accumulateddepreciation(99,143)(19,560)Totalplantandequip
215、ment169,693139,06130JUNE201430JUNE2013$MotorVehiclesAtcost108,47873,331Less:accumulateddepreciation(32,683)(10,040)Totalmotorvehicles75,79563,291PlantandequipmentCarryingamountatthebeginningoftheyear30JUNE2014$139,06130JUNE2013$4,297Additions110,214146,050DisposalsDepreciationexpense(79,582)(11,286)
216、Totalcarryingamountatendoftheyear169,693139,061MotorVehiclesCarryingamountatthebeginningoftheyear30JUNE2014$63,29130JUNE2013$Additions35,14773,331DisposalsDepreciationexpense(22,643)(10,040)Totalcarryingamountatendoftheyear75,79563,291Totalplantandequipment245,488202,35212 EXPLORATIONANDEVALUATIONEX
217、PENDITURE30JUNE201430JUNE2013$ExplorationandevaluationatcostBalanceatthebeginningoftheyear5,402,7055,910,857Expenditureincurred327,529507,140Expenditurewrittenoff(i)(4,312,388)(1,015,292)Transferredtodevelopmentexpenditure(Note13)(1,330,209)87,6375,402,705NOTESTOTHEFINANCIALREPORTFORTHEYEARENDED30JU
218、NE2014 BEACONMINERALSLIMITED2014ANNUALREPORT33(i)During the year the Company relinquished EL77/1297(2012:ELA77/1364,ELA77/1392,E77/1711,E77/1712andE77/1714).Therecoupmentofcostscarriedforwardinrelationtoareasofinterestintheexplorationandevaluationphasesisdependentonthesuccessfuldevelopmentandcommerc
219、ialexploitationonsaleoftherespectivearea.13 DEVELOPMENTEXPENDITURE30JUNE201430JUNE2013$HalleysEastBalanceatbeginningofperiodTransferredfromexplorationandevaluationexpenditure1,330,209Amortisationexpense(121,488)Balanceatreportingdate1,208,72114 TRADEANDOTHERPAYABLES30JUNE201430JUNE2013$Tradeandother
220、payables932,739166,912932,739166,912TradeandotherpayablesamountsrepresentliabilitiesforgoodsandservicesprovidedtotheCompanypriortotheendofthefinancialyearwhichareyettobepaid.Theamountsareunsecuredandareusuallypaidwithin30daysofrecognition.15 PROVISIONS30JUNE201430JUNE2013$CurrentEmployeeentitlements
221、(i)17,50017,500NonCurrentRehabilitation(ii)136,000136,000(i)ProvisionforEmployeeEntitlementsRefer to Note 2(m)for the relevant accounting policy and a discussion of the significant estimates andassumptionsappliedinthemeasurementofthisprovision.(ii)ProvisionforRehabilitation30JUNE201430JUNE2013$Balan
222、ceatbeginningofreportingperiodProvisionsmadeduringtheyear136,000ProvisionsusedduringtheyearProvisionsreversedduringtheyear136,000NOTESTOTHEFINANCIALREPORTFORTHEYEARENDED30JUNE2014 BEACONMINERALSLIMITED2014ANNUALREPORT34 NatureandPurposeofProvisionforRehabilitationThe nature of rehabilitation activit
223、ies include dismantling and removing structures,rehabilitating mines,reclamationandrevegetationofaffectedareas.Additionaldisturbancesorchangesinrehabilitationcostestimateswillberecognisedasadditionalorchangestothecorrespondingassetandrehabilitationliabilitywhenincurred.16 BORROWINGSDEBENTURENOTES30J
224、UNE201430JUNE2013$(a)TotalnoncurrentsecuredliabilitiesDebenturenotes4,000,0004,000,000Interestrates30JUNE201430JUNE2013%$(b)Maturitydates11November201518%3,050,00018November201518%850,00031December201518%100,0004,000,000(c)TermsandConditionsofDebentureNotesOn the 31 December 2013 the Company announc
225、ed that it had completed the issue of$4.0 millionDebentureNotestosophisticatedandprofessionalinvestors.ThekeytermsoftheDebentureIssueareasfollows:(a)the face value of eachDebenture(“Debentures”)will be$1.00 and each Debenture Holder mustsubscribe for a minimum of 100,000 Debentures which will have a
226、 total face value of$100,000(“MinimumSubscription”);(b)foreveryoneDebenturethatisissuedtoaDebentureHolder,theCompanywillgrantthatDebentureHolder100Options,theOptionswillbeissuedonthesametermandconditionsofthosealreadyonissue.ThemaximumnumberofOptionstobeissuedundertheDebentureIssueis400,000,000;(c)t
227、heDebentureswillnotbelistedontheASX;(d)thetermoftheDebenturesis24monthsfromthedateofissue(“Term”),andtheCompanyholdstherighttoexerciseanearlyrepaymentoptionwhichmaybeexercisednolessthan18monthsfromthedateofissue(“EarlyRepayment”);(e)theinterestratepayableontheDebenturesis18%perannum.Interestwillbepa
228、yableonthepaidupfacevalueoftheDebenturesandcalculatedonadailybasis.InterestwillbepayabletotheDebentureHolders6monthsafterthedatetheyareissuedwithDebenturesandthereafterevery3monthsuntiltheendoftheTerm,oruponEarlyRepayment(togetherthe“RecordDates”);(f)Interestwillbepaidnolaterthan30daysafterthereleva
229、ntRecordDate;(g)theDebentureswillbesecuredbytheCompanygrantingaMortgageoverMiningLease77/1254infavourofaSecurityTrusteeactingonbehalfofalltheDebentureHolders(“SecurityTrustee”);(h)theDebentureswillnotentitleaDebentureHoldertoanyvotingrightsintheCompany;(i)theCompanymustrepaythesubscriptionpriceinful
230、linrelationtoanyDebentureIssue,includingaccruedbutunpaidinterest,ontheearlierofthefollowing;(i)theendoftheTerm;(ii)EarlyRepayment;orNOTESTOTHEFINANCIALREPORTFORTHEYEARENDED30JUNE2014 BEACONMINERALSLIMITED2014ANNUALREPORT35(iii)within30daysontheoccurrenceofaneventofdefaultthathasnotbeenremedied;(j)ev
231、entsofdefault(“EventofDefault”)include(butarenotlimitedto)thefollowing:(i)anexternaladministratorbeingappointedoveranyoftheassetsoftheCompanyandnotbeingremoved;(ii)theCompanybeinginliquidationorunderadministration;(iii)amaterialchangebeingmadetotheConstitutionoftheCompany;(iv)afailuretopayinterestow
232、edtoaDebentureHolderoccurringwithin7daysofitsduedate;and(v)othereventsofdefaulttypicalofthistypeoftransactionoccurring;and(k)theCompanyhas30daystoremedyanyEventofDefaultwhichoccurspursuanttotheDebentureIssue.17 ISSUEDCAPITALIssuedandpaidupcapital30JUNE201430JUNE2013$Atthebeginningofreportingyear23,4
233、64,95021,958,170Sharesissuedduringtheyear(i),(ii)300,0001,592,118Sharesissuedpursuanttoexerciseofoptions1,60032Transactioncosts(85,370)Atreportingdate1,493,429,242(30June2013:1,393,109,196)fullypaidordinaryshares23,766,55023,464,950(i)On14September2012theCompanyannounceda2for5nonrenounceableentitlem
234、entissueofsharesatanissuepriceof$0.004pershare.Theentitlementissuewasfullysubscribedfor.(ii)On9July2013theCompanyissued100,000,000ordinaryshares,atanissuepriceof$0.003pershare,toDuketonConsolidatedPtyLtdasconsiderationfortheacquisitionofthe20%interestintheHalleysEastGoldProject.MovementinOrdinarySha
235、resNumberNumberAtthebeginningofreportingyear1,393,109,196995,073,426Sharesissuedduringtheyear(i),(ii)100,000,000398,029,370Sharesissuedpursuanttoexerciseofoptions320,0466,400Atreportingdate1,493,429,2421,393,109,196(i)On14September2012theCompanyannounceda2for5nonrenounceableentitlementissueofsharesa
236、tanissuepriceof$0.004pershare.(ii)On9July2013theCompanyissued100,000,000ordinaryshares,atanissuepriceof$0.003pershare,toDuketonConsolidatedPtyLtdasconsiderationfortheacquisitionofthe20%interestintheHalleysEastGoldProject.TheCompanydoesnothaveauthorisedcapitalorparvalueinrespectofitsissuedcapital.Ord
237、inary shares entitle the holder to participate in dividends and the proceeds on winding up of theCompanyinproportiontothenumberofandamountspaidonthesharesheld.Onashowofhandseveryholderofordinarysharespresentatameetinginpersonorbyproxy,isentitledtoonevoteanduponapolleachshareisentitledtoonevote.NOTES
238、TOTHEFINANCIALREPORTFORTHEYEARENDED30JUNE2014 BEACONMINERALSLIMITED2014ANNUALREPORT36 CapitalManagementTheBoardspolicyinrelationtocapitalmanagementistoregularlyandconsistentlymonitorfuturecashflows against expected expenditures for a rolling period of up to 12 months in advance.The Boarddetermines t
239、he Companys needs for additional funding by way of either share issues or loan fundsdependingonmarketconditionsatthetime.TheBoarddefinesworkingcapitalinsuchcircumstancesasitsexcessliquidfundsoverliabilities,anddefinescapitalasbeingtheordinarysharecapitaloftheCompany.TherewerenochangesintheCompanysap
240、proachtocapitalmanagementduringtheyear.TheCompanyissubjecttoexternallyimposedcapitalrequirements.18 RESERVES(a)OptionReserves30JUNE201430JUNE2013$AtthebeginningofreportingyearOptionsissuedpursuanttoDebentureNotes(iii)579,500TransactioncostsAtreportingdate579,50020142013Movementin$0.00530September201
241、5Options(i)NumberNumberAtthebeginningofthereportingperiod398,022,970Issuedduringtheyear(ii),(iii)400,000,000398,029,370Exercisedduringtheyear(320,046)(6,400)Atreportingdate797,702,924398,022,970(i)Eachoptionentitlestheholdertosubscribetooneshareatanissuepriceof$0.005onorbefore30September2015.(ii)On1
242、4September2012theCompanyannounceda2for5nonrenounceableentitlementissueofsharesatanissuepriceof$0.004pershare.1for1freeoptionwasattachedtonewsharesacquiredundertheentitlementissue.Theentitlementissuewasfullysubscribedfor.(iii)TheCompanygrantedDebentureHolders100optionsforevery1DebentureNoteissued,for
243、furtherdetailspleaseseenote13.20142013Movementin$0.271August2012Options(iii)NumberNumberAtthebeginningofthereportingperiod150,000Expiryofoptions(150,000)Atreportingdate(iv)Eachoptionentitledtheholdertosubscribetooneshareatanissuepriceof$0.27onorbefore1August2012.Theoptionslapsedonthe1August2012.(b)F
244、airValueReserve(i)30JUNE201430JUNE2013$Atthebeginningofthereportingperiod(106,442)(88,993)Revaluationoflistedinvestments(4,200)(17,449)(110,642)(106,442)(i)ThefairvaluereserverecordsthemovementinthemarketvalueoftheinvestmentinlistedsharesheldbyCompany.NOTESTOTHEFINANCIALREPORTFORTHEYEARENDED30JUNE20
245、14 BEACONMINERALSLIMITED2014ANNUALREPORT37(c)Reserves30JUNE201430JUNE2013$Optionreserve(Note18(a)579,500Fairvaluereserve(Note18(b)(110,642)(106,442)Atreportingdate468,858(106,442)19 LOSSPERSHARE 30 JUNE2014$30JUNE2013$BasiclosspershareafterincometaxattributabletomembersoftheCompany(0.0051)(0.0010)Ba
246、siclosspershare(0.0051)(0.0010)Earningsusedincalculationoftotaldilutedearningspershare(7,531,796)(1,283,499)Earningsusedinthecalculationofdilutedearningspershare(7,531,796)(1,283,499)NumberNumberWeightedaveragenumberofsharesonissueduringthefinancialyearusedinthecalculationofbasicearningspershare1,49
247、0,964,7931,261,855,716Weightedaveragenumberofordinarysharesfordilutedearningspershare1,490,964,7931,261,855,71620 NOTESTOTHESTATEMENTOFCASHFLOWS(a)Reconciliationofcashandcashequivalents30JUNE 2014$30JUNE 2013$CurrentCashatbank372,177803,290372,177803,290(b)Reconciliationofcashflowsfromoperationswith
248、lossafterincometax30JUNE2014$30JUNE 2013$Lossafterincometax(7,531,796)(1,283,499)NoncashflowsfromlossDepreciationofplantandequipment102,2551,262Explorationanddevelopmentexpenditurewrittenoff3,806,3471,015,292Gainonsaleofinvestment23,40026,419(Increase)/decreaseinassetsTradeandotherreceivablesOtheras
249、sets141,374(380,275)302,615(6,400)Inventory2,154,142Increase/(decrease)inliabilitiesTradeandotherpayables(765,827)(139,661)Provisions(118,500)Netcashoutflowsfromoperatingactivities(2,568,880)(83,972)NOTESTOTHEFINANCIALREPORTFORTHEYEARENDED30JUNE2014 BEACONMINERALSLIMITED2014ANNUALREPORT38(c)Noncashf
250、inancingandinvestingactivities(i)On9July2013theCompanyissued100,000,000ordinaryshares,atanissuepriceof$0.003pershare,toDuketonConsolidatedPtyLtdasconsiderationfortheacquisitionofthe20%interestintheHalleysEastGoldProject.21 SHAREBASEDPAYMENTS(i)On9July2013theCompanyissued100,000,000ordinaryshares,ata
251、nissuepriceof$0.003pershare,toDuketonConsolidatedPtyLtdasconsiderationfortheacquisitionofthe20%interestintheHalleysEastGoldProject.(ii)TheCompanyagreedandapprovedattheAnnualGeneralMeetingheldon7November2013toissue 100 options for every 1 Debenture Note issued to Debenture holders.The Options areexer
252、cisableat$0.005onorbefore30September2015.TheCompanyissued400,000,000optionsunderthisagreement.UsingtheBlack&ScholesoptionmodelandbasedontheassumptionbelowtheOptionswereascribedthefollowingvalue:Class ofOptionsNumber ofOptionsValuationDateMarketPrice ofSharesExercisePriceExpiryDateRiskFreeInterestRat
253、eVolatility(discount)IndicativeValueperOptionOptions305,000,000 11.11.2013$0.003$0.00530.09.152.53%110%$0.0013Options85,000,00018.11.2013$0.004$0.00530.09.152.53%110%$0.0020Options10,000,00031.12.2013$0.003$0.00530.09.152.53%110%$0.001322 KEYMANAGEMENTPERSONNEL(a)DetailsofkeymanagementpersonnelDirec
254、torsandExecutivesGeoffreyGreenhillExecutiveChairmanGrahamMcGarryManagingDirectorMarcusMichaelExecutiveDirector(b)Compensationofkeymanagementpersonnel30JUNE201430JUNE 2013$ShorttermemploymentbenefitsSalary,feesandleave270,000150,000Nonmonetary8,8807,260PostemploymentbenefitsSuperannuation24,97513,500
255、Totalkeymanagementpersonnelcompensation303,855170,760(c)OthertransactionsandbalanceswithKeyManagementPersonnelTheDirectorsonthe10September2012enteredintoseparateagreementswiththeCompany,wherebytheDirectorswillunderwriteatotalof$600,000ofthesharesissuedundertheEntitlementIssueProspectusdated17Septemb
256、er2012.UndertheagreementstheDirectorswillbeentitledtoanunderwritingfeeof5%oftheunderwrittenamount.EachDirectorreceivedafeeof$10,000underthisagreement.NOTESTOTHEFINANCIALREPORTFORTHEYEARENDED30JUNE2014 BEACONMINERALSLIMITED2014ANNUALREPORT39 Onthe11November2013GrahamMcGarry,GeoffreyGreenhillandOceani
257、cCapitalPtyLtd(togetherthe“RelatedParties”),whichisaCompanycontrolledbytheparentsofMarcusMichael,throughtheirrespectiverelatedpartyentities,participatedintheissueofDebentureNotesintheCompany.TheRelatedPartiesparticipationwasapprovedattheCompanysAnnualGeneralMeetingheldon7November2013.Thefacevalueofe
258、achdebenturenoteis$1.00andforevery1debenturenoteissued,theCompanygranted100listedoptions.ThetermsandconditionsoftheDebentureNotesaredetailedinNote16(c).TheinterestpayableontheDebentureNotesis18%perannum.Duringtheyear$109,328(2013:$0)waspaidorpayabletoGrahamMcGarryand$59,096(2013:$0)toGeoffreyGreenhi
259、ll,throughtheirrespectiverelatedpartyentitiesand$109,328(2013:$0)waspaidorpayabletoOceanicCapitalPtyLtd.At30June2014$8,705(2013:$0)interestwaspayableGrahamMcGarry,throughhisrespectiverelatedpartyandOceanic Capital Pty Ltd and$4,706(2013:$0)interest was payable to Geoffrey Greenhill,through hisrespec
260、tiverelatedpartyentity.DebentureNoteholderswerepaidafeeof3%placementfeeontheDebentureNotes.TheCompanypaidaplacementfeeof$27,750toGrahamMcGarryand$25,000toGeoffreyGreenhill,throughtheirrespectiverelatedpartyentitiesand$27,750toOceanicCapitalPtyLtd.On22October2013theCompanyannouncedthatLamertonPtyLtd,
261、acompanyrelatedtoGrahamMcGarry,hadprovidedanunsecuredloanfacilitytoBeaconof$200,000.NofeeswerepayabletoLamertonPtyLtdinrelationtothefacilityandinterestonthefacilitywasleviedattheprevailingoverdraftinterestratechargedbythebankandreimbursedtoLamertonPtyLtdatcost.McVerde Minerals Pty Ltd,of which Graha
262、m McGarry and Geoffrey Greenhill are Directors,providedequipmenthiretotheCompanyonordinarycommercialterms.Amountsthathavebeenpaidorpayabletotal$1,119,792(2013:$0).At30June2014$245,341(2013:$0)waspayabletoMcVerdeMinerals.MrMichaelisadirectorandhasabeneficialinterestinMarshallMichaelCharteredAccountan
263、ts.StaffofMarshall Michael Pty Ltd,including the Company Secretary Sarah Shipway,has provided corporatesecretarial,accounting,bookkeepingandgeneraladministrativeservicesduringtheyear.Amountsthathavebeenpaidorarepayabletotal$109,696(2013:$71,988).At30June2014$4,227(2013:$4,276)waspayabletoMarshallMic
264、haelCharteredAccountants.23 COMMITMENTSANDCONTINGENCIES(a)CommitmentMineralexplorationcommitmentInordertomaintainthecurrentrightsoftenuretoexplorationtenements,theCompanyhasthefollowingdiscretionaryexplorationexpenditurerequirements.30JUNE 2014$30JUNE 2013$Notlaterthanoneyear30,000278,969Laterthanon
265、eyearbutnotlaterthanfiveyears148,500Laterthanfiveyears178,500278,969NOTESTOTHEFINANCIALREPORTFORTHEYEARENDED30JUNE2014 BEACONMINERALSLIMITED2014ANNUALREPORT40 24 EVENTSSUBSEQUENTTOBALANCEDATESincetheyearended30June2014tothedateofthisreporttheCompanyhasreceivedapproximately$3,863,000fromthesaleofgold
266、.Other than above no matters or circumstances have arisen since the end of the financial year whichsignificantly affected or could significantly affect the operations of the Company,the results of thoseoperations,orthestateoftheaffairsoftheCompanyinfuturefinancialyears.25 FINANCIALRISKMANAGEMENT(a)I
267、nterestRateRiskTheCompanysexposuretointerestraterisk,whichistheriskthatthefinancialinstrumentsvaluewillfluctuateasaresultofchangesinmarketinterestratesandtheeffectiveweightedaverageinterestratesonthosefinancialassetsandfinancialliabilities,isasfollows:Basedonthecashandcashequivalentsbalancesat30June
268、2014a1%movementininterestrateswouldincrease/decreasethelossfortheyearbeforetaxationby$5,923(2013:$16,619).(b)LiquidityriskmanagementUltimateresponsibilityforliquidityriskmanagementrestswiththeboardofdirectors,whohavebuiltanappropriateliquidityriskmanagementframeworkforthemanagementoftheCompanysshort
269、,mediumandlongterm funding and liquidity management requirements.The Company manages liquidity risk bymaintainingadequatereserves,bankingfacilitiesandreserveborrowingfacilitiesbycontinuouslymonitoringforecastandactualcashflowsandmatchingthematurityprofilesoffinancialassetsandliabilities.(c)CreditRis
270、kThemaximumexposuretocreditrisk,excludingthevalueofanycollateralorothersecurity,atbalancedatetorecognisedfinancialassetsisthecarryingamountofthoseassets,netofanyallowancefordoubtfuldebts,asdisclosedinthestatementoffinancialpositionandnotestothefinancialreport.TheCompanydoesnothaveanymaterialcreditri
271、skexposuretoanysingledebtororCompanyofdebtorsunderfinancialinstrumentsenteredintobytheCompany.(d)FairvalueoffinancialinstrumentsTheCompanymeasuresandrecognisesthefollowingassetatfairvalueonarecurringbasisafterinitialrecognition:availableforsalefinancialassetsTheCompanydoesnotsubsequentlymeasureanyli
272、abilitiesatfairvalueonanonrecurringbasis.FairValueHierarchyAASB13:FairValueMeasurementrequiresthedisclosureoffairvalueinformationbylevelofthefairvaluehierarchy,whichcategorisesfairvaluemeasurementsintooneofthreepossiblelevelsbasedonthelowestlevelthataninputthatissignificanttothemeasurementcanbecateg
273、orisedintoasfollows:NOTESTOTHEFINANCIALREPORTFORTHEYEARENDED30JUNE2014 BEACONMINERALSLIMITED2014ANNUALREPORT41 Level1 Level2 Level3Measurementsbasedonquotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilitiesthattheentitycanaccessatthemeasurementdate.Measurementsbasedoninputsotherthanquo
274、tedpricesincludedinLevel1thatareobservablefortheassetorliability,eitherdirectlyorindirectly.Measurementsbasedonunobservableinputsfortheassetorliability.ValuationtechniquesTheCompanyselectsavaluationtechniquethatisappropriateinthecircumstancesandforwhichsufficientdataisavailabletomeasurefairvalue.The
275、availabilityofsufficientandrelevantdataprimarilydependsonthespecificcharacteristicsoftheassetorliabilitybeingmeasured.ThevaluationtechniquesselectedbytheCompanyareconsistentwithoneormoreofthefollowingvaluationapproaches:Marketapproach:valuationtechniquesthatusepricesandotherrelevantinformationgenera
276、tedbymarkettransactionsforidenticalorsimilarassetsorliabilities.Income approach:valuation techniques that convert estimated future cash flows or income andexpensesintoasinglediscountedpresentvalue.Costapproach:valuationtechniquesthatreflectthecurrentreplacementcostofanassetatitscurrentservicecapacit
277、y.Eachvaluationtechniquerequiresinputsthatreflecttheassumptionsthatbuyersandsellerswouldusewhenpricingtheassetorliability,includingassumptionsaboutrisks.Whenselectingavaluationtechnique,theCompanygivesprioritytothosetechniquesthatmaximisetheuseofobservableinputsandminimisetheuse of unobservable inpu
278、ts.Inputs that are developed using market data(such as publicly availableinformationonactualtransactions)andreflecttheassumptionsthatbuyersandsellerswouldgenerallyusewhenpricingtheassetorliabilityareconsideredobservable,whereasinputsforwhichmarketdataisnotavailable and therefore are developed using
279、the best information available about such assumptions areconsideredunobservable.ThefollowingtablesprovidethefairvaluesoftheCompanysassetsandliabilitiesmeasuredandrecognisedonarecurringbasisafterinitialrecognitionandtheircategorisationwithinthefairvaluehierarchy:Level1Level2Level3Total$2014Availablef
280、orsalefinancialassets722,256722,256722,256722,2562013Availableforsalefinancialassets745,124745,124745,124745,124(e)FinancialriskmanagementpoliciesTheCompanysfinancialinstrumentsconsistmainlyofdepositswithrecognisedbanks,investmentinbankbillsupto90days,accountsreceivableandaccountspayable.Liquidityis
281、managed,whensufficientfundsareavailable,byholdingsufficientfundsinacurrentaccounttoservicecurrentobligationsandsurplusfundsinvested in bank bills.The Directors analyse interest rate exposure and evaluate treasury managementstrategiesinthecontextofthemostrecenteconomicconditionsandforecasts.The main
282、risks the Company is exposed to through its financial instruments is the depository bankinginstitutionitself,holdingthefunds,andinterestrates.TheCompanyscreditriskisminimalastheCompanyhasnosignificantfinancialassetsotherthancashandtermdeposits.NOTESTOTHEFINANCIALREPORTFORTHEYEARENDED30JUNE2014 BEACO
283、NMINERALSLIMITED2014ANNUALREPORT42(f)CommoditypriceriskCommoditypriceriskarisesfromfluctuationsinmarketpricesofgold.TheCompanyhasnotenteredintoanyforwardcommoditypricecontractsasat30June2014andiscurrentlyexposedtocommoditypriceriskonfuturesales.TheCompanymonitorsmarketexpectationsonfuturecommoditypr
284、icesandconsidersenteringintolongertermcontractsorcommodityswapsorputoptionspositionsifnecessarytomanagetheriskinamannerconsistedwithitsriskmanagementobjectives.(g)ForeignCurrencyRiskTheCompanyisnotexposedtoanyforeigncurrencyriskasat30June2014.(h)MarketPriceRiskExposuretomarketriskarisesonfinancialas
285、setsrecognisedattheendofthereportingperiodwherebyachangeinmarketpricewillaffectfuturecashflowsorthefairvalueofthefinancialasset.ThefinancialassetwhichprimarilyexposestheCompanytomarketrateriskislistedinvestments.26 SEGMENTREPORTINGFormanagementpurposes,theCompanyisorganisedintoonemainoperatingsegmen
286、t,whichinvolvestheexplorationanddevelopmentofmineralsinAustralia.AlloftheCompanysactivitiesareinterrelated,anddiscrete financial information is reported to the Board as a single segment.Accordingly,all significantoperatingdecisionsarebaseduponanalysisoftheCompanyasonesegment.Thefinancialresultsfromt
287、hissegmentareequivalenttothefinancialstatementsoftheCompanyasawhole.Theaccountingpoliciesappliedforinternalreportingpurposedareconsistentwiththoseappliedinthepreparationofthesefinancialstatements.DIRECTORSDECLARATION BEACONMINERALSLIMITED2014ANNUALREPORT43 IntheopinionoftheDirectorsofBeaconMineralsL
288、imited(“theCompany”)(a)The financialstatements and the notes and the additional disclosures included inthedirectorsreport(designatedasaudited)oftheCompanyareinaccordancewiththeCorporationsAct2001,including:(i)GivingatrueandfairviewoftheCompanysfinancialpositionasat30June2014andofitsperformanceforthe
289、yearendedthatdate;and(ii)ComplyingwithAustralianAccountingStandards,and:(b)TherearereasonablegroundstobelievethattheCompanywillbeabletopayitsdebtsasandwhentheybecomedueandpayable.(b)The financial statements and notes comply with International Financial Reporting Standards asdisclosedinNote2(d).Thisd
290、eclarationhasbeenmadeafterreceivingthedeclarationsrequiredtobemadetothedirectorsinaccordancewithsection295AoftheCorporationsAct2001forthefinancialyearended30June2014.SignedinaccordancewitharesolutionoftheDirectorsmadepursuanttos295(5)oftheCorporationsAct2001.OnbehalfoftheBoardGeoffreyGreenhillExecut
291、iveChairmanDatedthis29September2014Perth,WesternAustralia444546CORPORATEGOVERNANCESTATEMENT BEACONMINERALSLIMITED2014ANNUALREPORT47 ThisCorporateGovernanceStatementsetsouttheCompanyscurrentcompliancewiththeASXCorporateGovernance Councils Corporate Governance Principles and Recommendations(Principles
292、 andRecommendations).TheBoardoftheCompanycurrentlyhasinplaceaCorporateGovernancePlanwhichhasbeenpostedinadedicatedcorporategovernanceinformationsectionoftheC.PRINCIPLESANDRECOMMENDATIONS1.LAYSOLIDFOUNDATIONSFORMANAGEMENTANDOVERSIGHT1.1Companies should establish the functions reserved to the Board an
293、d those delegated to seniorexecutivesanddisclosethosefunctions.Compliant:YesThe Directors monitor the business affairs of the Company on behalf of Shareholders and haveadopted a Corporate Governance Plan which is designed to encourage Directors to focus theirattention on accountability,risk manageme
294、nt and ethical conduct.The Companys CorporateGovernancePlanincludesaBoardCharter,whichdisclosesthespecificresponsibilitiesoftheBoard.The Companys Corporate Governance Plan is available on the Companys website .1.2 Companies should disclose the process for evaluating the performance of senior executi
295、ves.Compliant:YesTheCompanydoesnotyethaveanyseniorexecutivesapartfromtheBoard.However,iftheCompanyappointsseniorexecutivesinthefuture,theBoardwillmonitortheperformanceofthoseseniorexecutivesincludingmeasuringactualperformanceofseniorexecutivesagainstplannedperformance.TheBoardhasadoptedapolicytoassi
296、stinevaluatingtheperformanceofseniorexecutives,whichiscontainedinSchedule6ofitsCorporateGovernancePlan(DisclosurePerformanceEvaluation).Given the current size and structure of the Board,the Board has not established a separatenominationcommitteetooverseetheperformanceevaluationoftheseniorexecutives.
297、Until a nomination committee is established,the Board will undertake the obligations of thenomination committee in connection with evaluating the performance of senior executives inaccordancewithSchedule6ofitsCorporateGovernancePlan.1.3Companies should provide the information indicated in the Guide
298、to reporting on Principle 1.Compliant:YesTheCompanywillexplainanydeparturesfromPrinciplesandRecommendations1.1and1.2(ifany)initsfutureannualreports,includingwhetheraperformanceevaluationforseniorexecutives(ifanyexistatthattime)hastakenplaceinthereportingperiodandwhetheritwasinaccordancewiththeproces
299、sdisclosed.TheCompanyhasnotundertakenanyperformanceevaluationofanydirectorsinthelastreportingperiod.TheCompanyhasadoptedaBoardCharter,whichdisclosesthespecificresponsibilitiesoftheBoardand provides that the Board may delegate responsibility for the daytoday operations andadministrationoftheCompanyto
300、thechiefexecutiveofficer(ifappointed).CORPORATEGOVERNANCESTATEMENT BEACONMINERALSLIMITED2014ANNUALREPORT48 TheBoardCharteriscontainedinSchedule1oftheCompanysCorporateGovernancePlanandtheNominationCommitteeCharteriscontainedinSchedule5oftheCompanysCorporateGovernancePlan.2.STRUCTURETHEBOARDTOADDVALUE
301、2.1AmajorityoftheBoardshouldbeindependentdirectors.Compliant:NoCurrentlytheCompanyhasnoindependentdirectors.TheCompanysCorporateGovernancePlanoutlinesthatthemajorityoftheBoardwillbecomprisedof nonexecutive directors,and where practical,at least 50%of the Board will be independent.However,theBoardcon
302、sidersthattheCompanyisnotcurrentlyofasizetojustifytheexpenseofanappointmentofamajorityofindependentdirectors.ThecurrentBoardstructurepresentlyconsistsofanExecutiveChairman,aManagingDirectorandanExecutiveDirector.The Board believes that each of the Directors can make,and do make,quality and independe
303、ntjudgementsinthebestinterestsoftheCompany.AnyDirectorwhohasaconflictofinterestinrelationtoaparticularitemofbusinessmustdeclaretheirconflictandabstainfromvotingorparticipatinginBoarddeliberationstowhichaconflictofinterestrelates.2.2Thechairshouldbeanindependentdirector.Compliant:NoGeoffreyGreenhilli
304、stheExecutiveChairmanandisanotanIndependentDirector.TheCompanysCorporateGovernancePlanprovidesthattheChairman,wherepractical,shouldbeanonexecutiveDirector.TheBoardconsidersthattheCompanyisnotcurrentlyofasizetorequireanindependentChairman.ThiswillbereviewedastheCompanydevelops.2.3The roles of chair a
305、nd chief executive officer should not be exercised by the same individual.Compliant:YesTheCompanysChairmanisGeoffreyGreenhillandtheManagingDirectorisGrahamMcGarry.TheCompanysCorporateGovernancePlanprovides,wherepractical,thatthechiefexecutiveofficershouldnotbetheChairmanoftheCompanyduringhistermasch
306、iefexecutiveofficeorinthefuture.2.4TheBoardshouldestablishanominationcommittee.Compliant:NoGiventhestructureoftheBoard,theBoardhasnotestablishedaseparatenominationcommittee.MatterstypicallydealtwithbysuchacommitteearedealtwithbytheBoard.TheBoardmayalsoseekindependentadvicetoassistwiththeidentificati
307、onprocess.2.5CompaniesshoulddisclosetheprocessforevaluatingtheperformanceoftheBoard,itscommitteesandindividualdirectors.Compliant:NoThe Company will put a formal process in place as and when the Companys level of operationsjustifiesit.Currently,theBoardundertakestheobligationsofthenominationcommitte
308、einconnectionwith evaluating the performance of the Board,its committees and individual directors,and willcontinuetodosountilanominationcommitteeisestablished.CORPORATEGOVERNANCESTATEMENT BEACONMINERALSLIMITED2014ANNUALREPORT49 2.6Companies should provide the information indicated in the Guide to re
309、porting on Principle 2.Compliant:YesAdescriptionoftheskillsandexperienceofeachofthecurrentDirectorsisincludedontheC.GiventhecurrentsizeandstructureoftheBoard,theCompanyhasnotfullycompliedwithPrinciple2ofASXCorporateGovernanceCouncilPrinciplesandRecommendations.However,itwillseektodosoasitdevelopsand
310、theBoardgrows.TheBoardCharterincludesastatementthattheBoardmayseekindependentprofessionaladviceattheCompanysexpense.TheBoardhasnotestablishedanominationcommitteeanditsfunctionsarecarriedoutbytheBoard.3.PROMOTEETHICALANDRESPONSIBLEDECISIONMAKING3.1Companiesshouldestablishacodeofconductanddisclosethec
311、odeorasummaryofthecodeasto:thepracticesnecessarytomaintainconfidenceintheCompanysintegrity;the practices necessary to take into account their legal obligations and the reasonableexpectationsoftheirstakeholders;and the responsibility and accountability of individuals for reporting and investigating r
312、eports ofunethicalpractices.Compliant:YesThe Companys Code of Conduct,which is included in Schedule 2 of the Companys CorporateGovernance Plan,aims to encourage the appropriate standards of conduct and behaviour of thedirectors,officersandemployeesoftheCompany.3.2Companiesshouldestablishapolicyconce
313、rningdiversityanddisclosethepolicyorasummaryofthatpolicy.ThepolicyshouldincluderequirementsfortheBoardtoestablishmeasureableobjectivesforachievinggenderdiversityandfortheBoardtoassessannuallyboththeobjectivesandprogressinachievingthem.Compliant:YesThe Companys Diversity Policy,which is included in s
314、chedule 10 of the Companys CorporateGovernance Plan,recognises the benefits arising from employee and Board diversity,including abroader pool of high quality employees,improving employee retention,accessing differentperspectivesandideasandbenefitingfromallavailabletalent.Diversifyingincludes,butnotl
315、imitedto,gender,age,ethnicityandculturalbackground.3.3CompaniesshoulddiscloseineachannualreportthemeasureableobjectivesforachievingdiversitysetbytheBoardinaccordancewiththediversitypolicyandprogressinachievingthem.Compliant:NoDuetothelimitednumberofemployees,theCompanyhasnotyetsetmeasurableobjective
316、sforachieving gender diversity.The Company will consider establishing measurable objectives as itdevelops.3.4Companiesshoulddiscloseineachannualreporttheproportionofwomenemployeesinthewholeorganisation,womeninseniorexecutivepositionsandwomenontheBoard.Compliant:YesCORPORATEGOVERNANCESTATEMENT BEACON
317、MINERALSLIMITED2014ANNUALREPORT50 2014PercentageWomenontheBoard0%WomeninSeniorManagementRole240%WomenEmployees324%3.5Companies should provide the information indicated in the Guide to reporting on Principle 3.Compliant:Yes.TheBoardwillincludeintheAnnualReporteachyear:measurableobjectives(ifany)setby
318、theBoard;progressagainsttheobjectives;and theproportionofwomenemployeesinthewholeorganisationatseniormanagementandatBoardlevel.TheCompanywillexplainanydeparturesfromCGPrinciplesandRecommendations3.1,3.2,3.3and3.4intheCorporateGovernanceStatementanditsfutureannualreports.4.SAFEGUARDINTEGRITYINFINANCI
319、ALREPORTING4.1TheBoardshouldestablishanauditcommittee.Compliant:NoAformalAuditandRiskCommitteeCharterhasbeenadoptedbytheCompany,whichiscontainedinSchedule3oftheCompanysCorporateGovernancePlan.TheBoardconsidersthattheCompanysaffairsarenotcurrentlyofsuchcomplexitytojustifytheformationofseparateorspeci
320、alcommitteesatthistime.TheBoardasawholeisabletoaddressthegovernanceaspectsofthefullscopeoftheCompanysactivitiesandtoensurethatitadherestoappropriateethicalstandards.Inparticular,thefullBoardconsidersthosemattersthatwouldusuallybetheresponsibilityofanauditcommitteeandanominationcommittee.TheBoardcons
321、idersthat,atthis stage,no efficiencies or other benefits would be gained by establishing a separate auditcommitteeoraseparatenominationcommittee.4.2Theauditcommitteeshouldbestructuredsothatit:consistsonlyofnonexecutivedirectors;consistsofamajorityofindependentdirectors;ischairedbyanindependentchair,
322、whoisnotchairoftheBoard;hasatleastthreemembers.Compliant:NoReferto4.1above.4.3Theauditcommitteeshouldhaveaformalcharter.Compliant:YesAformalAuditandRiskCommitteeCharterhasbeenadoptedbytheCompany,whichiscontainedinSchedule3oftheCompanysCorporateGovernancePlan.4.4Companies should provide the informati
323、on indicated in the Guide to reporting on Principle 4.Compliant:YesThe Company does not have an audit committee.The Board carries out the duties of the auditcommittee.CORPORATEGOVERNANCESTATEMENT BEACONMINERALSLIMITED2014ANNUALREPORT51 TheCompanywillexplainanydeparturesfromtheCGPrinciplesandRecommen
324、dations4.1,4.2and4.3(ifany)initsfutureannualreports.5.MAKETIMELYANDBALANCEDDISCLOSURE5.1Companies should establish written policies designed to ensure compliance with ASX Listing Ruledisclosurerequirementsandtoensureaccountabilityataseniorexecutivelevelforthatcomplianceanddisclosethosepoliciesorasum
325、maryofthosepolicies.Compliant:Yes.The Companys Continuous Disclosure Policy,which is contained in Schedule 7 of the CompanysCorporateGovernancePlan,isdesignedtoensurethecompliancewithASXListingRuledisclosureandtoensureaccountabilityataseniorexecutivelevelforcomplianceandfactualpresentationoftheCompa
326、nysfinancialposition.TheCompanySecretaryhasbeennominatedasthepersonresponsibleforcommunicationswiththeASX.This role includes responsibility for ensuring compliance with the continuous disclosurerequirementsintheASXListingRulesandoverseeingandcoordinatinginformationdisclosuretotheASX,analysts,brokers
327、,shareholders,themediaandthepublic.5.2CompaniesshouldprovidetheinformationindicatedinGuidetoReportingonPrinciple5.Compliant:Yes.TheCompanywillprovideanexplanationofanydeparturesfromCGPrincipleandRecommendation5.1initsfutureannualreports.6.RESPECTTHERIGHTSOFSHAREHOLDERS6.1Companies should design a co
328、mmunications policy for promoting effective communication withshareholdersandencouragingtheirparticipationatgeneralmeetingsanddisclosetheirpolicyorasummaryofthatpolicy.Compliant:Yes.TheCompanyhasadoptedaShareholderCommunicationsStrategy,containedinSchedule11oftheCompanysCorporateGovernancePlan,which
329、aimstoensurethattheshareholdersoftheCompanyareinformedofallmajordevelopmentsaffectingtheCompanysstateofaffairs.Thestrategyprovidesthatinformationwillbecommunicatedtoshareholdersthrough:a)theAnnualReportwhichisavailableontheCompanyswebsite;b)theInterimFinancialReportwhichisplacedontheCompanyswebsite;
330、c)thequarterlyreportswhichareplacedontheCompanyswebsite;d)disclosuresandannouncementsmadetotheASX,copiesofwhichareplacedontheCompanyswebsite;e)notices and explanatory memoranda of Annual General Meetings(AGM)and ExtraordinaryGeneralMeetings(EGM),copiesofwhichareplacedontheCompanyswebsite;f)theChairm
331、ansaddressandtheManagingDirectorsaddressmadeattheAGMsandtheEGMs,copiesofwhichareplacedontheCompanyswebsite;g)theCompanyswebsiteonwhichtheCompanypostsallannouncementswhichitmakestotheASX;andh)the auditors lead engagement partner being present at the AGM to answer questions fromshareholdersaboutthecon
332、ductoftheauditandthepreparationandcontentoftheAuditorsReport.CORPORATEGOVERNANCESTATEMENT BEACONMINERALSLIMITED2014ANNUALREPORT52 6.2Companies should provide the information indicated in the Guide to reporting on Principle 6.Compliant:YesTheCompanywillprovideanexplanationofanydeparturesfromCGPrincip
333、leandRecommendation6.1(ifany)initsfutureannualreports.7.RECOGNISEANDMANAGERISK7.1Companiesshouldestablishpoliciesfortheoversightandmanagementofmaterialbusinessrisksanddiscloseasummaryofthosepolicies.Compliant:YesandNo.GiventhecurrentsizeandstructureoftheBoard,theBoardhasnotestablishedaseparateauditcommittee.HowevertheAuditandRiskCommitteeChartercontainedintheCompanysCorporateGovernance Plan sets o
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