NTL Annual Report
www.newtalisman.co.nz
ANNUAL REPORT 2019
NEW TALISMAN GOLD
ANNUAL REPORT 2019
2
CONTENTS
Directors’ Report 3
Board of Directors 14
Audit Report 15
Financial Statements 19
Notes to the Financial Statements 22
Tenement Schedule 27
Additional Information 30
Corporate Governance 32
Company Directory back page
REPORT TO THE
SHAREHOLDERS OF
NEW TALISMAN
GOLD MINES LTD
For the year ended 31 March 2019
HIGHLIGHTS
ANNUAL REPORT 2019
Transition to developer complete
Mine infrastructure and underground
refurbishment complete
BM37 Dubbo target zone reopened for mining for
first time since 1994
Results from PFS show significantly higher returns
and a cash cost of NZ$710 per ounce
Revised mine plan produces 8,000 ounces over 24
months
Blasting and extraction commence - approximately
500t of ore stockpiled
Feasibility study commenced
Pilot plant imported, set up and ready to
commence processing once consented
Expression of interest received for the operation of
commercial plant
Remaining Talisman Deeps module commenced
ANNUAL REPORT 2019NEW TALISMAN GOLD
3
Dear Shareholders
The Directors of New Talisman Gold Mines Limited (“New Talisman”, “NTL” or “the Company”) submit herewith the consolidated
annual financial report consisting of the Company and its wholly owned subsidiaries (together the “Group”) for the financial year
ended 31 March 2019 which has seen the achievement of a number of objectives as the company progresses towards production.
The 2019 financial year marks the year when the company achieved the transformation from explorer to mine developer as mining
activities at the Talisman Mine resumed for the first time since 1992. The company remains focussed on commencing production over
the coming months now that mine refurbishments are substantially complete.
During the year New Talisman continued to forge ahead with the Talisman mine project
culminating in reopening the bonanza grade Dubbo area and driving on the Mystery Vein.
The NZ political climate towards the minerals industry remains ambiguous and possibly
unsupportive. However, New Talisman has managed to renew access arrangements for the
Talisman Mine from DOC and continue to maintain a good working relationship with them.
It is worth bearing in mind that the mine has been in operation more or less continuously for
125 years through various governments and differing legislative regimes. NTL has had access
agreements in place with DOC at the Talisman mine since 1997 and an Authority to Enter and
Operate since 2014 with no adverse affects or incidents.
While the directors are pleased with progress at the mine, delays in processing by various
regulators have been at times frustrating. The directors are pleased to advise that the consents required to enable the blasting,
extraction and transport of ore from the mine to plant are in place to allow the team to get on with the practical work of mining.
The company holds a 25-year mining permit and the necessary consents for its bulk sampling plan, including approval of the Traffic
Management Plan allowing up to nine (9) 10 Tonne trucks a day with an average of four (4) to transport ore from the mine to plant for
processing. The company has commenced preparation of the application for its seven-year mine plan and will lodge this over the
next 12 months.
At the mine face NTL has substantially completed the refurbishments required to commence extraction phase and your company
sits poised at the commencement of production which is planned to reach a steady state of 360 ounces per month at 8 months from
commissioning of pilot plant which will commence processing of first high grade batches through the plant at the end of July.
During the year the company had an independent peer review of the Mineral Resource Estimate completed. This confirmed the 2017
resource estimate upgrade and compliance with the 2012 JORC reporting code. As previously announced the upgrade of the Mineral
Resource Estimate in 2017 included three of the four Talisman Deeps data modules. The resulting overall resource nearly doubled
both grades and resources demonstrating the Talisman mine resource is one of the highest-grade gold resources in NZ and compares
favourably with other high-grade resources globally.
The final module of Talisman Deeps encompassing all the remaining data relating to the Talisman Deeps project was initiated during
the period and is expected to be completed by the third quarter of 2019.
Against the backdrop of these key achievements Gold has recently reached $2,100 NZD, these highs have not been seen since 2011
when gold was nearing USD highs of 2000 USD per ounce. New Talisman Gold Mines Limited is one of the very few, if not the only,
equity instrument able to expose investors to NZD gold price as it is the only NZ listed gold developer. As detailed further in this
report the updated prefeasibility study which assumed a $1600 NZD gold price, shows a cash production cost of NZ$721 per ounce
demonstrating the significant profit margin and robustness of the project to any gold price fluctuations. With continued tensions
globally the gold price is forecast to improve further. The chart below shows the recent run on NZD gold price to highs seen only
previously where USD gold reached nearly 2000 USD in 2011. USD gold has remained under 1400 USD per ounce since 2013.
NZD GOLD PRICE
DIRECTORS’ REPORT
STEADY PROGRESS TOWARDS
PRODUCTION WITH A FOCUS TO
GET ON WITH THE PRACTICAL
WORK OF MINING
NEW TALISMAN GOLD
ANNUAL REPORT 2019
4
USD GOLD PRICE
TALISMAN MINE PROJECT – 100% New Talisman
1992 - 20092009 - 20122013 - 20172017 to date2020
EXPLORATIONSCOPING STUDYPREFEASIBILITY STUDYMINING ACTIVITIESBankable
Feasibility
Study
Exploration Permit Granted
Chanel sampling throughout
Level 8
Sampling of stockpiles
Drilling undertaken in Dubbo
Chip samples discover bonanza
grades at Taukani Hill
Delineation of a JORC 2004
resource totalling 204,000 oz AU
Mining one completes Scoping
study
Further exploration of Permit
Application and granting of 25
year Mining License
Access agreement granted under
mining licence
Further technical studies
Maiden Reserve declared on
resource
Maiden PFS encompassing mining
at Talisman
Application for resource consent
sought
Authority to Enter and Operate
granted
Acquisition of further Historic Data
First ore processed at Waihi
Resource consent to extract 20K
cubic metres per annum granted
Certificate of compliance granted
Refurbishment and rehabilitation
commenced
Pilot plant installed and
commissioned
Vent fan installation
Power installation
Extraction commences
Improve
confidence
in resource
Refine mine
design and
production
schedule
ANNUAL REPORT 2019NEW TALISMAN GOLD
5
Bulk Sampling project plan
This year saw significant progress of the bulk sampling plan which
has recently been updated to include the preferred route to access
both the High Grade BM37 ore body as well as the Mystery Vein.
While blasting and extraction has commenced underground,
the resource consent which allows approximately two years and
up to 20,000 cubic metres per annum to be extracted has been
confirmed by Council to commence upon the trucking of four 10
tonne trucks a day of ore from the mine. Following confirmation
from Hauraki District Council the company determined to retain
all blasted ore underground until such time as the plant
has received the consent approval. Material and samples from
prospecting areas underground are able to be transported for
offsite testing under the granted certificate of compliance.
During the period the pilot plant was imported and assembled
ready to commence metallurgical testwork on high grade ore as
soon as the consent is granted. It is expected that the consent will
be in place and the first ore run through the plant in the next 30
days. Following the initial testwork the plant will then be scaled
up to suit the revised project plan which will utilise capacity of 300
tonnes per month.
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(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
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(
(
(
(
(
(
(
(
(
TM017
TM017
TM017
TM017
TM017
TM017
TM017
TM017
TM017
KP004
KP004
KP004
KP004
KP004
KP004
KP004
KP004
KP004
KP001
KP001
KP001
KP001
KP001
KP001
KP001
KP001
KP001
KP002B
KP002B
KP002B
KP002B
KP002B
KP002B
KP002B
KP002B
KP002B
KP002
KP002
KP002
KP002
KP002
KP002
KP002
KP002
KP002
KP003
KP003
KP003
KP003
KP003
KP003
KP003
KP003
KP003
TM006
TM006
TM006
TM006
TM006
TM006
TM006
TM006
TM006
TM004
TM004
TM004
TM004
TM004
TM004
TM004
TM004
TM004
TM005
TM005
TM005
TM005
TM005
TM005
TM005
TM005
TM005
TM002
TM002
TM002
TM002
TM002
TM002
TM002
TM002
TM002
TM003
TM003
TM003
TM003
TM003
TM003
TM003
TM003
TM003
TM007A
TM007A
TM007A
TM007A
TM007A
TM007A
TM007A
TM007A
TM007A
TM008
TM008
TM008
TM008
TM008
TM008
TM008
TM008
TM008
TM009
TM009
TM009
TM009
TM009
TM009
TM009
TM009
TM009
TM014
TM014
TM014
TM014
TM014
TM014
TM014
TM014
TM014
TM016
TM016
TM016
TM016
TM016
TM016
TM016
TM016
TM016
TM018
TM018
TM018
TM018
TM018
TM018
TM018
TM018
TM018
TM011
TM011
TM011
TM011
TM011
TM011
TM011
TM011
TM011
TM012
TM012
TM012
TM012
TM012
TM012
TM012
TM012
TM012
TM013
TM013
TM013
TM013
TM013
TM013
TM013
TM013
TM013
TM015
TM015
TM015
TM015
TM015
TM015
TM015
TM015
TM015
TM010
TM010
TM010
TM010
TM010
TM010
TM010
TM010
TM010
TM001
TM001
TM001
TM001
TM001
TM001
TM001
TM001
TM001
47
47
47
47
47
47
47
47
47
12.2
12.2
12.2
12.2
12.2
12.2
12.2
12.2
12.2
11.58
11.58
11.58
11.58
11.58
11.58
11.58
11.58
11.58
20
20
20
20
20
20
20
20
20
11.3
11.3
11.3
11.3
11.3
11.3
11.3
11.3
11.3
10.6
10.6
10.6
10.6
10.6
10.6
10.6
10.6
10.6
15.1
15.1
15.1
15.1
15.1
15.1
15.1
15.1
15.1
17.8
17.8
17.8
17.8
17.8
17.8
17.8
17.8
17.8
16.5
16.5
16.5
16.5
16.5
16.5
16.5
16.5
16.5
125
125
125
125
125
125
125
125
125
27
27
27
27
27
27
27
27
27
20.7
20.7
20.7
20.7
20.7
20.7
20.7
20.7
20.7
53
53
53
53
53
53
53
53
53
52
52
52
52
52
52
52
52
52
57.4
57.4
57.4
57.4
57.4
57.4
57.4
57.4
57.4
10.9
10.9
10.9
10.9
10.9
10.9
10.9
10.9
10.9
900
900
900
900
900
900
900
900
900
906
906
906
906
906
906
906
906
906
924
924
924
924
924
924
924
924
924
16.4
16.4
16.4
16.4
16.4
16.4
16.4
16.4
16.4
10.9
10.9
10.9
10.9
10.9
10.9
10.9
10.9
10.9
15.71
15.71
15.71
15.71
15.71
15.71
15.71
15.71
15.71
12.1
12.1
12.1
12.1
12.1
12.1
12.1
12.1
12.1
21.5
21.5
21.5
21.5
21.5
21.5
21.5
21.5
21.5
5.73
5.73
5.73
5.73
5.73
5.73
5.73
5.73
5.73
7.74
7.74
7.74
7.74
7.74
7.74
7.74
7.74
7.74
5.26
5.26
5.26
5.26
5.26
5.26
5.26
5.26
5.26
5.9
5.9
5.9
5.9
5.9
5.9
5.9
5.9
5.9
8.8
8.8
8.8
8.8
8.8
8.8
8.8
8.8
8.8
5.59
5.59
5.59
5.59
5.59
5.59
5.59
5.59
5.59
7.9
7.9
7.9
7.9
7.9
7.9
7.9
7.9
7.9
5.03
5.03
5.03
5.03
5.03
5.03
5.03
5.03
5.03
6
6
6
6
6
6
6
6
6
5.8
5.8
5.8
5.8
5.8
5.8
5.8
5.8
5.8
5.34
5.34
5.34
5.34
5.34
5.34
5.34
5.34
5.34
8.8
8.8
8.8
8.8
8.8
8.8
8.8
8.8
8.8
9
9
9
9
9
9
9
9
9
7
7
7
7
7
7
7
7
7
8
8
8
8
8
8
8
8
8
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
8.2
8.2
8.2
8.2
8.2
8.2
8.2
8.2
8.2
8.3
8.3
8.3
8.3
8.3
8.3
8.3
8.3
8.3
6.02
6.02
6.02
6.02
6.02
6.02
6.02
6.02
6.02
7.49
7.49
7.49
7.49
7.49
7.49
7.49
7.49
7.49
5.9
5.9
5.9
5.9
5.9
5.9
5.9
5.9
5.9
8.6
8.6
8.6
8.6
8.6
8.6
8.6
8.6
8.6
5.47
5.47
5.47
5.47
5.47
5.47
5.47
5.47
5.47
5.91
5.91
5.91
5.91
5.91
5.91
5.91
5.91
5.91
5.88
5.88
5.88
5.88
5.88
5.88
5.88
5.88
5.88
78
.6
78.278.26
726
78.2
26.4
26.4
26.4
26.4
26.4
26.4
26.4
26.4
26.4
10.6
10.6
10.6
10.6
10.6
10.6
10.6
10.6
10.6
7.5
7.5
7.5
7.5
7.5
7.5
7.5
7.5
7.5
5.73
5.73
5.73
5.73
5.73
5.73
5.73
5.73
5.73
5.56
5.56
5.56
5.56
5.56
5.56
5.56
5.56
5.56
Level 8 Portal
Level 8 Portal
Level 8 Portal
Level 8 Portal
Level 8 Portal
Level 8 Portal
Level 8 Portal
Level 8 Portal
Level 8 Portal
Level 5A Exit
Level 5A Exit
Level 5A Exit
Level 5A Exit
Level 5A Exit
Level 5A Exit
Level 5A Exit
Level 5A Exit
Level 5A Exit
1st Crosscut
1st Crosscut
1st Crosscut
1st Crosscut
1st Crosscut
1st Crosscut
1st Crosscut
1st Crosscut
1st Crosscut
Level 8
Level 8
Level 8
Level 8
Level 8
Level 8
Level 8
Level 8
Level 8
Bypass
Bypass
Bypass
Bypass
Bypass
Bypass
Bypass
Bypass
Bypass
Main Winze
Main Winze
Main Winze
Main Winze
Main Winze
Main Winze
Main Winze
Main Winze
Main Winze
!
2nd Bypass
2nd Bypass
2nd Bypass
2nd Bypass
2nd Bypass
2nd Bypass
2nd Bypass
2nd Bypass
2nd Bypass
Level 8
Level 8
Level 8
Level 8
Level 8
Level 8
Level 8
Level 8
Level 8
Stope
Stope
Stope
Stope
Stope
Stope
Stope
Stope
Stope
Drive
Drive
Drive
Drive
Drive
Drive
Drive
Drive
Drive
Level 8 Extension
Level 8 Extension
Level 8 Extension
Level 8 Extension
Level 8 Extension
Level 8 Extension
Level 8 Extension
Level 8 Extension
Level 8 Extension
BM35 Crosscut
BM35 Crosscut
BM35 Crosscut
BM35 Crosscut
BM35 Crosscut
BM35 Crosscut
BM35 Crosscut
BM35 Crosscut
BM35 Crosscut
BM41 Crosscut
BM41 Crosscut
BM41 Crosscut
BM41 Crosscut
BM41 Crosscut
BM41 Crosscut
BM41 Crosscut
BM41 Crosscut
BM41 Crosscut
BM37 Crosscut
BM37 Crosscut
BM37 Crosscut
BM37 Crosscut
BM37 Crosscut
BM37 Crosscut
BM37 Crosscut
BM37 Crosscut
BM37 Crosscut
Keillors
Keillors
Keillors
Keillors
Keillors
Keillors
Keillors
Keillors
Keillors
Crosscut
Crosscut
Crosscut
Crosscut
Crosscut
Crosscut
Crosscut
Crosscut
Crosscut
Maria Vein
Maria Vein
Maria Vein
Maria Vein
Maria Vein
Maria Vein
Maria Vein
Maria Vein
Maria Vein
Level 5A
Level 5A
Level 5A
Level 5A
Level 5A
Level 5A
Level 5A
Level 5A
Level 5A
Crown/Welcome
Crown/Welcome
Crown/Welcome
Crown/Welcome
Crown/Welcome
Crown/Welcome
Crown/Welcome
Crown/Welcome
Crown/Welcome
Stope
Stope
Stope
Stope
Stope
Stope
Stope
Stope
Stope
Mystery
Mystery
Mystery
Mystery
Mystery
Mystery
Mystery
Mystery
Mystery
Vein
Vein
Vein
Vein
Vein
Vein
Vein
Vein
Vein
050100
metres
2.85m@15.38g/t
incl 0.55m@44.3g/t
0.6m@3.2g/t
8.6m@1.46g/t
4.65m@1.64g/t
3.2m@3.21g/t
13m@0.14g/t
1.75m@2.53g/t
1m@3.94g/t
1m@2.08g/t
0.9m@3.98g/t
1.5m@9.0g/t
0.95m@2.12g/t
0.8m@36.7g/t & 1m@85.0g/t
0.8m@3.29g/t
1.8m@623.5g/t incl 1m@1154g/t
Karangahake Project: Level 8 & 5A
Quartz
vein
Levels
8 & 5A
Other
levels
(
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Heritage Gold
drillhole
!
Winze
(
(
(
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(
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(
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High Au grade (g/t)
channel sample
April 2011
Summary of mine plan and proposed
activities over next 24 months.
Opening the rise at Dubbo has revealed an excavation
which is unsupported on each side and due to the instability
of the area would require a significant amount of work to
make safe before any material can be removed. Being able
to inspect and analyse the geological and geotechnical
setting provided the team with a range of options for
mining of the ore reserve in this area and a revised mine
plan, discussed below, is being implemented accessing the
orebody at the optimal point.
Having analysed the relative risk/reward profile for these
options it has been decided to proceed with a short decline
from the adjacent BM35 crosscut which will be developed
on vein where possible.
This will provide access to the Dubbo shoot approximately
7m below number 8 level, directly into the high grade ore
block which is estimated to exceed an average grade of
more than an ounce of gold per tonne. Bullion generated
from construction of this decline will contribute towards the
cost of development and provide meaningful data on the
geology of the area.
The decline will then be extended downwards in 7m lifts
progressively exposing more of the ore body for sampling
and delineation of extractive blocks. This revised mine
plan drives the earliest cashflow from the ore body and the
work completed during the bulk sampling phase creates
a solid platform for the Company’s full scale mine plans
contemplated in the Prefeasibility Study as outlined later
in this report.
Based on the current plan, at an average extraction rate
of 300tpm, the company expects to be in a position to
generate an approximated average of 360 gold equivalent
ounces per month during the two-year bulk sampling
programme.
NEW TALISMAN GOLD
ANNUAL REPORT 2019
6
Mine Refurbishment
Refurbishment of the No 8 Level workings from the portal and
through Keillors Crosscut to the face of the Mystery Vein was
completed in September 2018 following a final clean-up of the
8 Level drive, including securing vehicular access through the
“Band-Aid” and “Viaduct”. Work continued on reclaiming the
Dubbo Drive and to secure access to the BM37 crosscut which
was achieved in December 2018 from which point the Company
focussed efforts on reopening the BM37 rise. This work was
completed in March 2019. Concurrently with the above work the
remainder of Keillors Crosscut, between the Mystery Vein and
the Crown Mine workings has been loaded clear and supported
and work on rehabilitation of the second escapeway through the
Crown 5a level is underway. With the completion of the opening
up of accessways to both target vein faces the financial year saw
the commencement of blasting and extraction from the face of
Mystery and removal of ore from Dubbo resulting in a stockpile
of over 500t.
Mine Infrastructure
Engineering services, comprising of compressed air, power and
water reticulation systems have been installed throughout the
rehabilitated areas and an underground communication system is
in place. Firefighting capability and emergency medical stations
have been established at strategic locations, and a stench gas
system, for alerting mineworkers in the event of an emergency,
is in place.
The primary ventilation fan and airlock are in place and were
commissioned in October 2018. This fan directs fresh air of
sufficient quantity through the underground workings to allow
deployment of small diesel-powered mobile equipment. The
primary fan is supplemented with a smaller auxiliary fan to direct
air through ducting into the Dubbo extension. Ventilation seals,
to prevent the escape of air to the surrounding workings, have
been constructed.
Power is supplied by a diesel-powered generator installed on the
portal pad.
Mystery Vein
• Refurbishments complete
• Blasting and extraction advances vein face 6m
• Extension of high grade mineralisation confirmed
• Mining method successfully implemented
This financial year saw the completion of refurbishments all the
way through to the face of the Mystery drive which allowed for the
first blasting and extraction of ore from this vein. This work signals
the beginning of the slow but steady process of unmasking the
extent of mineralisation and proving the long held geological
concept that the Mystery Vein continues along strike and above
and below the current face. Further work during bulk sampling will
aim to bring added confidence to this interpretation potentially
provide a substantial additional contribution to the Company’s
resources.
Following the final metres of rehabilitation into the Mystery
zone and commissioning of the primary fan, the company was
able to undertake its first blast at Mystery in September 2018.
Regular extraction activities are taking place on the northern
extension of the Mystery Vein. The face of the drive has now been
advanced a further 6.1m, on vein which averages 0.9m in width.
Eight tonnes of ore have been removed from the drive and the
results of regular in stream sampling show gold grades ranging
from 6.2g/t Au to 18.2g/t Au for an average of 11.9g/t Au. Silver
ranges from 23.0g/t Ag to 37g/t Ag for an average of 28.3g/t Ag.
For more information please see the announcement of 24/01/19
(https://www.asx.com.au/asxpdf/20190124/pdf/44225sh0bby4c4.
pdf)
These results are in line with expectations and consistent with
the range of grades in this section of the Mystery Vein. This is in
the same area where recent check sampling of ore exposed at
the drive face yielded grades of up to 40 g/t Au as announced to
the market on 31 March 2018 (please see https://www.asx.com.
au/asxpdf/20180508/pdf/43tvlpmv420f4f.pdf ) While considerably
more work is required to understand the full extent of this highly
prospective vein system these results are encouraging and
represent a very positive first step in this process.
The face of the Mystery Drive showing the extension of the vein before sidewall waste is removed
ANNUAL REPORT 2019NEW TALISMAN GOLD
7
The Mystery Vein was discovered in the 1980’s, by then operator Cyprus Mines Corporation in joint venture with New Zealand Gold
Fields Ltd, when developing Keillors Crosscut to connect the Talisman Mine with the adjacent Crown Mine. This crosscut intersected
a previously unidentified vein, now called Mystery Vein, approximately mid-way between the historically productive Maria and Crown
vein systems. It is believed that this vein had not been identified previously because of its location on the boundary between the two
historic mining permits, although there is evidence that the vein may have been encountered in the lower levels of the Talisman Mine.
The vein has been exposed over a strike length of some 50m and regular sampling carried out by New Talisman (then called Heritage
Gold) identified samples on the face of Mystery with grades of up to 50 g/t.
The Mystery Vein shows similar geological characteristics to the adjacent veins and follows a similar north south strike direction,
suggesting that this may be the same vein system worked at the historic Rhoderick Dhu Mine which is located roughly mid-way
between the Talisman and Crown Mines around 100m below the current exposure on No 8 Level and some 500m to the north. Current
activities at Talisman prioritize enhancing the Company’s understanding of this vein given its potential to be a major contributor to
mine life.
Testing of the resue mining method at the Mystery vein, where the vein and associated waste material are extracted in separate cuts,
is proving successful with the primary extraction of the vein achieving a clean break on the contact between the vein and host rock.
This enables the vein material to be loaded separately from the waste, maximising the grade of ore trammed to the run of mine
stockpile. Successful long-term implementation of this mining method will hold significant commercial advantages for the mine
through reducing the tonnage of ore to be transported and milled, and correspondingly reducing the costs involved, while at the
same time increasing the feed grade of the milled material as very little waste would be included.
View of Keillors Crosscut from Crown Mine Level 5A
NEW TALISMAN GOLD
ANNUAL REPORT 2019
8
Dubbo Zone Access
• Auxillary fan and services extended to Dubbo
• Refurbishments opening up BM37 Maria Vein complete
• Commencement of decline into bonanza grade ore block commenced
• High grade material returned grades in excess of 500gt
Timber sets being constructed to reinforce the brow at the entrance to the Dubbo Rise
In the last quarter of the year the technical team
achieved a significant milestone by opening up
the BM37 high grade area which is the last area
partly mined at Talisman and has been inaccessible
since 2004. The Dubbo area hosts some of the
highest-grade gold found in NZ. This zone was
identified by borehole BM37 which assayed 656
g/t Au over 1.8m including 1154 g/t Au over
1.0m and was the location of the last mining
activity to take place under the mines previous
owners in the early 1990’s.
With installation and commissioning of
underground auxiliary fan complete, and air
ducting in place through the single-entry Dubbo
extension of No 8 Level, mobile machinery was
deployed to the BM37 crosscut to commence
loading of waste rock so that clearing access to the
BM37 rise could get underway.
Initial inspection of the area indicated that there
had been a substantial fall of ground in the on
vein rise at the end of BM37 crosscut, completely
blocking access to the vein. This material was
removed during the period and as reported access
to the vein has been made available with the
preferred route to access ore safely adopted in the
revised mine plan summarized below.
The next step in this journey as outlined earlier in
this report is to create safe access to the high grade
ore blocks directly below the No 8 Level Dubbo
Zone establish drives on vein through this block,
obtain advanced information on the geology in
this area in order to delineate blocks for mining,
install the infrastructure to support this and begin
extraction of the ore blocks to be transported for
stockpiling and processing.
The Brow of the Dubbo Rise showing fine material being loaded out
ANNUAL REPORT 2019NEW TALISMAN GOLD
9
Stockpiling of Broken Ore
Stockpiling of ore underground has progressed well during the
year. Approximately 110 tonnes of ore from the Bonanza zone of
the Maria Vein have been loaded and transferred to the Run of
Mine stockpile. Regular interval in-stream sampling was carried
out with 44 samples yielding grades that are characteristically
variable and range from trace to 66.0g/t Au for an average
of 4.5g/t Au, silver grades assayed in a range of 7.1g/t to
633g/t for an average of 68g/t Ag (please see https://www.asx.
com.au/asxpdf/20181214/pdf/44173qv872f6cz.pdf).
Some 14 tonnes of ore have been removed from the Mystery
drive and the results of regular in stream sampling show gold
grades ranging from 6.2g/t Au to 18.2g/t Au for an average
of 11.9g/t Au. Silver ranges from 23.0g/t Ag to 37g/t Ag
for an average of 28.3g/t Ag. For more information please
see the announcement of 24/01/19 (https://www.asx.com.au/
asxpdf/20190124/pdf/44225sh0bby4c4.pdf)
Approximately 250 tonnes of rock, comprising mainly host
andesite mixed with fine vein material, has been removed from
the Dubbo Zone. Where possible the quartz has been transported
separately from the andesite. Where larger sized blocks of ore
could be identified they have been removed and are stored for
later testing in the pilot plant. Assays of this ore have yielding
grades which ranged between trace and 515g/t Au for an
average of 34.8g/t Au, and trace and 4070g/t Ag for an
average of 296g/t Ag.
Representative samples have been taken of broken ore on the
northern side of the crosscut, the results of this sampling have
yielded grades ranging between 2.65g/t and 130g/t Au for
an average of 36g/t Au, and between 35g/t and 441g/t
silver for an average of 146g/t Ag.
Specimen sampling of this remnant material removed from
Dubbo returned grades from between trace and a spectacular
.5kg per tonne. One small sample taken from the Run of Mine
(ROM) was tested for contained gold returned exceptional
grades of over 1kg per tonne. It should be noted however
that due to the sample size and its nature as loose material it is
classed as a specimen and not regarded as being representative
of the orebody.
Historically the Dubbo area is known for producing such
unusually high-grade specimens that they have been studied by
universities and geological institutes and up until recently were
displayed in the Auckland Museum due to their significance to
NZ’s long-standing mining history.
Metallurgical Testwork Pilot Plant
The pilot plant is assembled and ready to commence processing
ore. Commissioning is awaiting grant of land use consent
applications which are expected to be issued in the next 4 to 6
weeks. Upon grant of these consents the initial batches of grade
ore will be tested to provide the necessary data to allow the
upgrade and/or building of the full-scale production plant.
As announced recently the company has been approached by
a third party that proposes to build a plant capable of meeting
the needs of the bulk sampling project. Discussions over the last
month have progressed to a point where subject to a number of key
conditions a formal offer is expected to be put to the board with an
aim to have a commercial agreement in place by the end of July.
The pilot plant and subsequent scaled up plant will produce both
gold-silver bullion and gold-silver concentrate. The gold-silver
bullion will be sold on the open market and the concentrate
product developed to the specifications set out to NTL by a
major NZ based buyer of concentrate. Should the customer enter
into an agreement to purchase concentrate the plant will be
designed and built to the exact specifications for that customer
One aim of the test batch is to confirm the previously tested
precious metal recovery rates as set out below can be achieved,
and any the waste material product is a chemically inert
commercially viable by-product. The waste product will in effect
be a quartz sand which could have application in a wide variety
of building products and aggregate.
While the capacity of the pilot plant is relatively low the aim is to
replicate the recovery rates which were achieved using a similar
flowsheet in the test work carried out in South Africa in February
2018 (please see https://www.asx.com.au/asxpdf/20180322/
pdf/43sn63s00fjnz6.pdf ). The recovery rates from that test
work demonstrated recoveries which are near that of cyanide
extraction using a more sustainable non-chemical means.
Following completion of the metallurgical test work a number of
minor upgrades will allow small batches of high grade ore to be
processed and sold while the larger plant is built.
It is expected that once the resource consent for the pilot
plant is granted by the end of July, the first ounces of gold and
concentrate will be produced shortly thereafter.
2018 Prefeasibility study
In June of 2018 the Company completed and released a revised
Prefeasibility study on the Talisman Project which significantly
improved the key economic metrics of the project encompassing
less than 15% of the overall resources over the initial six-year mine
life. The bulk sampling activities seek to provide further data to
increase the quantum and level of confidence of the resources,
and provide a platform for increased reserves, their economic
extraction and ultimately increased mine life.
As previously announced a Definitive Feasibility study is well
underway with the remaining data being provided from the
results of the bulk sampling project.
This study, based on the updated and independently reviewed
Mineral Resource Estimate, which was released to the market
in July 2017, has demonstrated an increase in the Net Present
Value of the project, (NPV) from NZD15.4m to NZD35.9m at
a 9% Discount Rate. The updated study proposes a mine plan,
focussed on high confidence areas adjacent to No 8 level, based
on the production of 45,000 tonnes at 30.6 g/t Au equivalent with
a significant drop in mine costs to NZD583 per ounce and cash
costs of NZD710 per ounce. The IRR (internal rate of return)
increased significantly to 118%.
The key drivers for this increase in value are discussed below:
• Increased ounces available for extraction – this is a result
of the mineral resource upgrade which saw gold equivalent
ounces in the Measured and Indicated categories increase
by some 18,000 ounces. These are included in the mining
plan which has seen an increase in gold production of some
18,800 Oz AuEq.
• Increased mine life – on the back of the increased ounces
the life of the mine is extended by a year giving a current
expectation of six years;
• Grade – Run of Mine grade (ROM), on a gold equivalent
basis, has increased from 11.2g/t to more than 27 g/t.
• The USD gold price, based on independent forecasts, is
expected to continue trading in a narrow range of between
USD1300/Oz and USD1400/Oz;
NEW TALISMAN GOLD
ANNUAL REPORT 2019
10
• Continued USD strength is expected to result in a falling NZD:USD exchange rate over the project life
• Extended mine life has seen an increase in operating costs of approximately $8m;
• Capital expenditure is reduced by $1m because of the work already completed towards the Bulk Sampling Project;
Other key project metrics, in comparison with the previous PFS results, are tabulated below in NZD
Unit20132018Variance
Production
Life of MineYears561
Tonnes Milledktpa107 64 -43
Gold RecoveredOz 32,200 51,000 18,800
Cost
Total RevenueNZD(m)68 109 41
Total Opex (C3)NZD(m)34 42 8
Total CapexNZD(m) 11 12 1
Financial
Cash SurplusNZD(m) 23 55 32
NPV @9% (Pre-Tax)NZD(m) 15 36 21
IRR%83%118%35%
Payback periodYrs 3 2 -1
Unit Costs
Direct on mine CostNZD/Oz 692 583 -109
Cash cost of productionNZD/Oz 904 710 -194
All in CostsNZD/Oz1,041 985 -56
Breakeven Gold PriceNZD/Oz1,075 820-255
Full details of the Pre-Feasibility Study were released to the market on 26/06/2018. The release can be viewed here https://www.asx.
com.au/asxpdf/20180626/pdf/43w27wyn66hkx8.pdf .
The Prefeasibility Study referred to earlier in this report is a technical study as defined in the JORC Code and can be used for the
purposes of defining an Ore Reserve. Because of this the Prefeasibility Study is confined to examining only the higher confidence
Measured and Indicated Resources and does not take account of the extensive information available pertaining to the deeper extents
of the mine where the Mineral Resources are classified in the Inferred Resource category.
The Prefeasibility Study thus sets out a roadmap for initial development of the Talisman Mine project which has progressed through
the traditional methods of mine evaluation and development.
Ore Reserve Update
The outcome of the Prefeasibility Study supports a 50% increase in the Ore Reserve attributable to the Talisman Mine. Ore Reserves,
based on an average in-situ cut-off grade of 2.6 g/t, are 45,000 tonnes at 30.6 grams per tonne gold equivalent. Reserves are quoted
at the point of delivery to the gold processing plant and are derived from and contained within, not additional to, the Measured and
Indicated portions of the Mineral Resource.
The study was reviewed by independent experts who found that the proposed mining plan is appropriate for the style of deposit
at Talisman, and that determination of Ore Reserves has been attained through reasonable evaluation of mining costs and process
recoveries.
Mineral Resource and Reserves
Mineral Resources
Total NTLGold Equivalent
CategoryTonnesGradeOunces
Measured102,80017.457,480
Indicated97,7007.423,100
Inferred750,00015.9389,200
Total Resources950,500 15.1469,800
Ore Reserves
Total NTLGold Equivalent
CategoryTonnesGradeOunces
Proved30,30035.734,800
Probable14,60020.19,500
Total Reserves44,90030.644,300
Full details of the Ore
Reserve were released
to the market on
26/06/2018. The release
can be viewed here
https://www.asx.com.
au/asxpdf/20180626/
pdf/43w27wyn66hkx8.pdf
ANNUAL REPORT 2019NEW TALISMAN GOLD
11
Talisman Deeps Project
In contrast to the advanced stage of the Talisman Project, the Talisman Deeps project is in its very early stages of development.
This standalone project was conceptualised primarily as a result of the upgraded mineral resource estimate which was released to
the market in the latter part of 2017. This estimate, which substantially increased the overall mineral resources available within the
Company’s lease area, identified a substantial inferred resource occurring at depth within the Talisman Mine. These inferred resources
fall outside the scope of works delineated by the Talisman Project but nevertheless offer the potential for considerable upside to the
company. In order to gain an understanding of the possible impact of developing the Talisman Deeps Project NTL commissioned a
Scoping Study.
The scoping study referred to above was completed in June 2018 and, following an independent review of the output which was
completed as part of the Valmin compliant valuation discussed in the 2018 Annual Report, the results were released to the market on
27 June 2018. However, whilst compliant with JORC and NZX listing rules, under the ASX listing rules, where inferred resources form a
majority of the mineral resources on which a scoping study is based, the study must meet a number of requirements over and above
those set out in the JORC Code. These requirements are set out in the ASX guidance note which can be viewed here https://www.asx.
com.au/documents/asx-compliance/asx-guidance-on-reporting-scoping-studies-with-checklist.pdf.
The technical studies and work being carried out on Talisman deeps are separate to the mining activities and Definitive Feasibility
study underway on the higher levels of the mine. As commercial mining activities continue, a better understanding and confidence of
resources at the deeper levels of the mine may allow the Definitive Feasibility Study to include some areas of the Deeps.
Long section of the Maria lode showing the location of the Talisman Project area (pink)
and the Talisman Deeps Project Area (Light Blue)
NEW TALISMAN GOLD
ANNUAL REPORT 2019
12
Rahu
Following the acquisition of Rahu Resources Pty Ltd from Newcrest, and in discussion with NZPAM at the Annual Review Meeting
NTL were directed, to and applied for access to the northern part of the Rahu permit area for soil sampling over land administered
by the Department of Conservation. The application was lodged over 6 months ago and has not yet been granted. The board has
determined that until DOC access is granted further work must be deferred.
Without the access to enable the technical team to complete sampling in the DOC area which provides support and targeting data
for the drilling programme the company continues to focus all its resources on the Talisman mine project.
Tenement Holdings
ProjectPermit NumberOwnership
TalismanMMP 51326100% New Talisman Gold Mines Ltd
RahuMEP 60144100% Rahu Resources Pty Ltd a 100% owned subsidiary
of NTL
About New Talisman Gold Mines Ltd
New Talisman Gold is a dual listed (NZSX & ASX: NTL) with over 2700 shareholders who are mainly from Australia and New Zealand
and has been listed since 1986. It is a leading New Zealand minerals development and exploration company with a mining permit
encompassing the Talisman mine, one of New Zealand’s historically most productive gold mines. The company has commenced
prospecting and upgrading activities at the mine and advance the exploration project and increase its considerable global exploration
target into JORC 2012 resources.
Its gold properties near Paeroa in the Hauraki District of New Zealand are a granted mining permit, including New Zealand’s
highest-grade underground gold mine, a JORC 2012 compliant mineral resource of over 427,000 ounces AuEq at an average above
15 g/t AuEq and a JORC compliant reserve statement. The company owns 100% of exploration permit Rahu, which lies along strike
from the Talisman mine of which 80% was recently acquired from Newcrest Mining.
Cautionary Statement for Public Release
Photo of high grade ore from 13
Level of Maria Vein. Bonanza Section.
Grade 701.05 g/t Gold and 3,426.6 g/t
Silver
Cautionary Statement for Public Release
Certain information contained in this public release may be
deemed “forward-looking” within the meaning of applicable
securities laws. Forward-looking statements and information
relate to future performance and reflect the Company’s
expectations regarding execution of business strategy, business
prospects and opportunities of New Talisman Gold Mines and
its related subsidiaries. Any statements that express or involve
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions or future events or
performance are not statements of historical fact and may be
forward-looking statements. Forward-looking statements are
subject to a variety of risks and uncertainties which could cause
actual events or results to differ materially from those expressed
in the forward-looking statements and information. They include,
among others, the accuracy of mineral reserve and resource
estimates and related assumptions and inherent operating risks.
There are no assurances the Company can fulfil forward-looking
statements and information. Such forward-looking statements
and information are only predictions based on current information
available to management as of the date that such predictions
are made; actual events or results may differ materially because
of risks facing the Company, some of which are beyond the
Company’s control. Although the Company believes that any
forward-looking statements and information contained in this
press release is based on reasonable assumptions, readers
cannot be assured that actual outcomes or results will be
consistent with such statements. Accordingly, readers should
not place undue reliance on forward-looking statements and
information. The Company expressly disclaims any intention or
obligation to update or revise any forward-looking statements
and information, whether because of new information, events or
otherwise, except as required by applicable securities laws. The
information contained in this release is not investment or financial
product advice.
Competent Person Statements
The information in this report that relates to exploration results,
exploration targets and mineral resources is based on information
compiled by or supervised by Mr Murray Stevens and Mr Wayne
Chowles. Mr Stevens is a consulting geologist and director of
New Talisman Gold Mines Ltd, who is a corporate member of the
AusIMM. Mr Stevens has sufficient experience which is relevant to
the style of mineralisation and type of deposit under consideration
and to the activity being undertaken to qualify as a Competent
Person as defined in the 2012 Edition of the “Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore
Reserves”.
Mr Chowles is a Mining Engineer and member of the AusIMM.
Mr Chowles is a full-time employee of New Talisman Gold Mines
Limited, he has sufficient experience which is relevant to the
style of mineralisation and type of deposit under consideration
and to the activity being undertaken to qualify as a Competent
Person as defined in the 2012 Edition of the “Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore
Reserves”. Both Mr Chowles and Mr Stevens consent to the
inclusion in this report of the matters based on his information
in the form and context in which it appears. The company
confirms that it is not aware of any new information or data
that materially affects the information included in the original
market announcement and that all material assumptions and
technical parameters underpinning the estimates in the relevant
market announcement continue to apply and have not materially
changed. The company confirms that the form and context in
which the Competent Persons findings are presented have not
been materially modified from the original market announcement
ANNUAL REPORT 2019NEW TALISMAN GOLD
13
NEW TALISMAN GOLD
ANNUAL REPORT 2019
14
BOARD OF DIRECTORS
Mr Charbel Nader B.com, M App Fin, CA, CTA
Chairman and Non-executive Director
Mr Nader is an investment banker with extensive experience
in corporate finance and strategic advisory and board roles,
including experience in mergers and acquisitions project
finance. Charbel has worked across a range of industries and has
expertise in the finance of capital intensive projects with volatile
returns. Charbel was formerly deputy chairman of Aspermont Ltd
publisher of the Mining Journal and organiser of the Mines and
Money events in Hong Kong, London and Melbourne.
Mr Nader was, head of Pitt Capital Partners Melbourne office
(a subsidiary of Washington H Soul Pattinson), and founding
Chairman of a successful media start up and oversaw its sale
to Fairfax Ltd for in excess of $100m. He is Non-Executive
Director of Madman Entertainment, distributor of the highly
successful New Zealand film The Hunt for the Wilderpeople.
He has been a director of gold mining companies with assets
in Hungary. Mr Nader is a non executive Director of United
Networks Ltd, Chairman Growth Factor Ltd. He has a Bachelor of
Commerce and Masters of Applied Finance from the University
of Melbourne, is Chartered Accountant and is fellow of the Tax
Institute of Australia.
Matthew Geoffrey Hill, MBA, MAICD, Ffin
Chief Executive Officer
Mr Hill is an Executive Director of International Pacific Capital
Limited, and Managing Director of Asia Pacific Capital Group
Limited. Matthew is an experienced merchant banker having
worked previously at Potter Warburg (now UBS); Eventures (a
joint venture between Newscorp and Softbank); Pitt Capital and
Souls Private Equity Limited. Matthew specialises in resources
and company listings on the ASX and NZX.
Matthew has been responsible for leading the company from
exploration into the development phase at the Talisman mine
since his appointment in late 2012 and is primarily responsible
for day to day operations and capital raising initiatives of the
company. Mr. Hill is a non-executive director of Broken Hill
Prospecting Limited ASX:BPL which holds interests in the
Thackaringa cobalt project near Broken Hill in NSW Australia and
a portfolio of heavy mineral sands tenements in the Murray Basin.
Matthew is also alternate director for Geoffrey Hill on Pacific
American Coal ASX:PAK .
Mr Hill Holds a Graduate Diploma in Applied Finance and Master
of Business Administration. He is a fellow of the FINSIA and a
member of the Australian Institute of Company Directors.
Mr Hill was appointed to the New Talisman Board as Alternate
Director for Geoffrey Hill on 1 December 1999, and has served
as a full Director for nearly 13 years since his appointment on 10
October 2006 and Appointed as CEO/Managing Director on 3
September 2012.
Mr Murray Ronald Stevens, BSc, MSc(Hons), Dip.
Geol.Sci, MAusIMM
Non-executive Director
Mr Stevens has BSc and MSc (Hons) degrees in geology from
the University of Auckland and a Post-graduate Diploma in
Geoscience from Macquarie University in Sydney majoring in
Mineral Economics.
Mr Stevens has over than 35 years of experience as a geologist
and has provided consulting services to NTL since 2002.
Mr Stevens has extensive expertise exploring for epithermal gold
deposits in the Coromandel and the wider Asia-Pacific region. He
has held Senior Management and consulting roles in a number of
public and private companies and was NTL’s (formerly Heritage
Gold Ltd) first Exploration Manager from 1987 to 1996. He was
instrumental in recognizing the potential for the Talisman Mine
and the Rahu area when NTL acquired these areas in the early
1990’s. Murray played a key role in the original discovery made
at Rahu and was the exploration consultant for NTL when the
work undertaken between 2003 and 2006 delineated the current
resources at Talisman.
Mr Tony Haworth, M.Sc (Tech), M.Sc (Fin),
M.AusIMM, MAICD
Independent Director
Mr Haworth has over 20 years’ experience spanning a variety of
geological, corporate, finance and governance roles across the
minerals industry and as a corporate adviser and investment
banker.
Mr Haworth began his career as an Exploration Geologist with
Heritage Gold (now NTL) and has worked in New Zealand and
offshore for a range of private and public listed companies.
His other previous roles include General Manager of Mawarid
Mining (formerly National Mining Company) in Oman, Director
of Liberty Gold Corporation in London and Director at New
Zealand corporate advisory firm Campbell MacPherson Ltd. He
is currently an Investment Manager with New Zealand Trade &
Enterprise.
Mr Haworth holds a Masters in Finance from London Business
School and a Masters in Earth Science from the University of
Waikato. He is a corporate Member of the Australasian Institute of
Mining and Metallurgy and a Member of the Australian Institute of
Company Directors.
From L-R: Murray Stevens, Tony Haworth, Charbel Nader, Matt Hill
ANNUAL REPORT 2019NEW TALISMAN GOLD
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AUDITOR’S REPORT
NEW TALISMAN GOLD
ANNUAL REPORT 2019
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ANNUAL REPORT 2019NEW TALISMAN GOLD
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NEW TALISMAN GOLD
ANNUAL REPORT 2019
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ANNUAL REPORT 2019NEW TALISMAN GOLD
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NEW TALISMAN GOLD MINES LIMITED
Statement of Comprehensive Income
For year ended 31 March 2019
Group Parent
Note20192018 20192018
NZ$NZ$ NZ$NZ$
Continuing Operations
Other Operating income286,734 128,597 86,734 128,597
Operating and administrative expenses3, 4 (1,290,061) (1,130,754) (1,276,164) (1,130,754)
Exploration costs written off 10----
Gain/(loss) from operations (1,203,327) (1,002,157) (1,189,430) (1,002,157)
Net profit/(loss) for the year (1,203,327)(1,002,157) (1,189,430)(1,002,157)
Other Comprehensive Income / (Loss)1,7838,1371,7838,137
Total comprehensive income/(loss)(1,201,544) (944,020) (1,187,647)(994,020)
Net profit/(loss) attributable to equity
holders of the parent
(1,201,544) (944,020) (1,187,647)(994,020)
Comprehensive profit/(loss) attributable
to equity holders of the parent
(1,201,544) (944,020) (1,187,647)(994,020)
Earnings per share
Basic earnings/(loss) per share
From continuing operations (0.06) cent (0.05) cent (0.05) cent (0.05) cent
Diluted earnings/(loss) per share
From continuing operations (0.06) cent (0.05) cent (0.05) cent (0.05) cent
The accompanying notes form part of these financial statements
NEW TALISMAN GOLD MINES LIMITED
Statement of Changes in Equity
For the Year Ended 31 March 2019
Group 2019Group 2018
NoteShare
Capital
Capital
Reserves
Retained
Earnings
Total
Equity
Share
Capital
Capital
Reserves
Retained
Earnings
Total
Equity
NZ$NZ$NZ$NZ$NZ$NZ$NZ$NZ$
Profit/(Loss)--(1,203,327)(1,203,327)--(1,002,157)(1,002,157)
Other comprehensive
income/(loss)
--1,7831,783 --8,1378,137
Proceeds from share
capital issued
----1,925,910--1,925,910
Transfer to
accumulated income7
----(2,500,000)(335,341)2,835,341-
Equity at beginning
of year
34,590,849-(17,361,043)17,229,80635,164,939335,341(19,202,364)16,297,916
Equity at end of year 734,590,849-(18,562,587)16,028,26234,590,849-(17,361,043)17,229,806
Parent 2019Parent 2018
NoteShare
Capital
Capital
Reserves
Retained
Earnings
Total
Equity
Share
Capital
Capital
Reserves
Retained
Earnings
Total
Equity
NZ$NZ$NZ$NZ$NZ$NZ$NZ$NZ$
Total comprehensive
income/(loss)
--(1,187,647)(1,187,647)--(994,020)(994,020)
Proceeds from share
capital issued
----1,925,910--1,925,910
Transfer to
accumulated income
7----(2,500,000)(297,641)2,802,3014,660
Equity at beginning
of year
34,590,849-(20,090,949)14,499,90035,164,939297,641(21,899,230)13,563,350
Equity at end of year 734,590,849-(21,278,596)13,312,25334,590,849- (20,090,949)14,499,900
The accompanying notes form part of these financial statements
NEW TALISMAN GOLD
ANNUAL REPORT 2019
20
NEW TALISMAN GOLD MINES LIMITED
Statement of Financial Position
As at 31 March 2019
Group Parent
Note 2019201820192018
NZ$ NZ$ NZ$ NZ$
Equity
Attributable to parent company shareholders716,028,262 17,229,806 13,312,25314,499,900
16,028,262 17,229,806 13,312,253 14,499,900
Term liabilities
Rehabilitation Reserve9 32,215 17,795 32,215 17,795
Total term liabilities 32,215 17,795 32,215 17,795
Current liabilities
Payables8402,046 213,584 402,046 213,584
Employee benefits201 9 , 9 9 7 21,330 1 9 , 9 9 7 21,330
Total current liabilities422,043234,914422,043234,914
Total liabilities 454,258 252,709454,258 252,709
Total equity and liabilities 16,482,520 17,482,51513,766,511 14,752,609
Current assets
Cash 1,243,6564,828,750 1,243,656 4,828,750
Receivables and prepayments21 172,066 116,922 206,641 129,550
Total current assets 1,415,722 4,945,6721,450,297 4,958,300
Non-current assets
Property, plant & equipment9259,960 89,677 259,96089,677
Assets under construction912,034,5759,638,26812,034,5759,638,268
Intangible exploration assets102,760,9502,752,90010,57510,575
Investments1111,313 55,998 11,104 5 5 , 7 8 8
Total non-current assets 15,066,798 12,536,84312,316,2149,794,308
Total assets 16,482,520 17,482,515 13,766,511 14,752,609
For and on behalf of the Board:
C Nader (Chairman) M G Hill
26 June 2019 26 June 2019
The accompanying notes form part of these financial statements . * See note 13.
ANNUAL REPORT 2019NEW TALISMAN GOLD
21
NEW TALISMAN GOLD MINES LIMITED
Statement of Cash Flows
For year ended 31 March 2019
Group Parent
Note20192018 2019 2018
NZ$ NZ$
NZ$
NZ$
Cash flows from operating activities
Cash was provided from:
Interest received62,081128,597 62,081128,597
Other-- --
62,081 128,597 62,081 128,597
Cash was disbursed to:
Payments to suppliers(1,115,353)(1,061,043) (1,115,353)(1,061,043)
Rent(25,508)(24,248)(25,508)(24,248)
Payments to and on behalf of employees - - - -
(1,140,861) (1,085,291) (1,140,861) (1,085,291)
Net cash outflows from operating activities15(1,078,780) (956,694) (1,078,780) (956,694)
Cash flows from investing activities
Cash was provided from:
Proceeds from sale of shares----
----
Cash was applied to:
Prospecting and mine development expenditure(2,277,704)(1,784,590) (2,256,183) (1,776,590)
Purchase of property, plant and equipment(217,188)(100,000) (217,188)(100,000)
Investments----
Intercompany loans - - (21,521) (8,000)
(2,494,892)(1,884,590) (2,494,892)(1,884,590)
Net cash outflows from investing activities (2,494,892) (1,884,590) (2,494,892) (1,884,590)
Cash flows from financing activities
Cash was provided from:
Issue of shares
Other
-
-
1,925,910
-
-
-
1,925,910
-
-1,925,910-1,925,910
Cash was applied to:
Issue of shares----
----
Net cash inflows from financing activities-1,925,910-1,925,910
Net increase /(decrease) in cash held(3,573,672)(915,374) (3,573,672)(915,374)
Effect of changes in exchange rates (11,422)(10,274)(11,422)(10,274)
Cash at beginning of year4,828,7505,754,398 4,828,7505,754,398
Cash at end of year 1,243,656 4,828,750 1,243,656 4,828,750
CASH COMPRISES:
Cash121,8841,723,750 121,8841,723,750
Short term deposits1,121,772 3,105,000 1,121,772 3,105,000
1,243,656 4,828,750 1,243,656 4,828,750
All cash balances are available without restriction except for NZ$105,000 held on deposit as security for guarantees issued by the
bank. The bank holds a $75,000 bond on behalf of the NZ Stock Exchange for the term of the exchange listing and a $30,000 bond
on behalf of the Department of Conservation held for any potential mining rehabilitation.
NEW TALISMAN GOLD
ANNUAL REPORT 2019
22
1. STATEMENT OF ACCOUNTING POLICIES
Reporting entity
New Talisman Gold Mines Limited is a profit-oriented company
incorporated and domiciled in New Zealand, registered under
the Companies Act 1993 and listed on the New Zealand Stock
Exchange (NZX) and the Australian Stock Exchange (ASX).
The company is an FMC reporting entity for the purposes of the
Financial Markets Conduct Act 2013 and the financial statements of
the company and group have been prepared in accordance with the
Financial Markets Conduct Act 2013 and comply with NZX Listing
Rule 10.6.1 with the exception that separate financial statements
for the parent have been presented as the parent engages in the
majority of the group’s business activities.
The group consists of New Talisman Gold Mines Limited (the
“company”) and its subsidiaries (the “group”) and these financial
statements comprise the separate financial statements of the
parent company and the consolidated financial statements of the
group. The group is engaged in mine development and mineral
exploration.
These financial statements were approved for issue by the Directors
on 18 June 2019.
Statement of compliance
These consolidated and parent financial statements have been
prepared in accordance with New Zealand generally accepted
accounting practice (NZ GAAP), the requirements of the
Companies Act 1993 and comply with New Zealand equivalents to
the International Financial Reporting Standards (NZ IFRS) and with
International Financial Reporting Standards (IFRS).
Measurement base
The accounting principles adopted are those recognised as
appropriate for the measurement and reporting of financial
performance and financial position on the historical cost basis
modified by the revaluation of certain assets. The accrual basis of
accounting has been used unless otherwise stated and the financial
statements have been prepared on a going concern basis.
The information is presented in New Zealand dollars which is the
company’s functional currency.
Use of estimates and judgements
The preparation of financial statements in conformity with NZ
IFRS requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and
the reported amounts of assets, liabilities, income and expenses.
Where material, information on significant assumptions and
estimates is provided in the relevant accounting policy or will be
provided in the relevant note.
The estimates and associated assumptions are based on historical
experience and other factors that are believed to be reasonable
under the circumstances. Actual results may differ from these
estimates.
The group has made significant accounting estimates in respect of:
• the assessment of impairment to capitalised exploration and
development expenditure, and
• the anticipated rehabilitation costs at the conclusion of mining.
The estimate does not have a profit effect in the current year.
Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised in the
year in which the estimates are revised and in any future periods
affected.
Specific accounting policies
The following specific accounting policies, which materially affect
the measurement of financial performance and financial position,
have been applied consistently.
(a) Prospecting costs
Acquisition, exploration and development expenditure on
exploration and mining tenements is initially recorded at cost.
Exploration and evaluation costs are capitalised as deferred
expenditure.
In the event where exploration demonstrates a permit area is no
longer prospective for economically recoverable reserves, or the
exploration or prospecting permit is relinquished, the value or cost
of the tenement is immediately recognised as an expense in the
statement of comprehensive income.
Prospecting costs are expected to be recovered from future mining
revenues. The recoverability of exploration and evaluation assets
is contingent upon future events, such as technical success and
commercial development, sale of the area of interest, the results
of further exploration, agreements entered into with other parties,
and also upon meeting commitments under the terms of the
permits.
(b) Mining tenements
When a tenement is assessed as capable of sustaining commercial
mining operations, capitalised exploration and evaluation
expenditure is reclassified as assets under construction and is
disclosed as a component of property, plant and equipment.
All subsequent development expenditure, net of any proceeds
from ore sales during the development stage, is capitalised
and classified as assets under construction. On completion of
development, the value or cost of accumulated exploration and
development costs will be reclassified as other mineral assets and
amortised on the basis of units of production over the expected
productive life of the mine. Provisions for closure and rehabilitation
are initially recognised when an environmental disturbance first
occurs. The estimate for the rehabilitation provision is reviewed by
management at each reporting date and an assessment is made
on whether the estimate continues to reflect the company’s present
legal and constructive obligations.
(c) Property plant and equipment
All property, plant and equipment is initially recorded at cost.
When an item of property, plant and equipment is disposed of,
the gain or loss is recognised in the statement of comprehensive
income and is calculated as the difference between the sale price
and the carrying value.
(d) Depreciation
Depreciation is provided on all tangible property, plant and
equipment on a straight line basis at rates calculated to allocate
the difference between the cost and residual values of each asset
over its estimated useful life. For this purpose, the company
has adopted the depreciation rates set by the Inland Revenue
Department as appropriate.
Rates used during the year were:
Computer software and hardware Straight line 30-50%
Field equipment Straight line 7-30%
Fixtures and fittings Straight line 9-10%
Motor Vehicles Straight line 30%
(e) Impairment of assets
At each reporting date, the carrying amounts of tangible and
intangible assets are reviewed to determine whether there is any
indication of impairment. If the recoverable amount of an item of
property, plant and equipment is less than its carrying amount, the
item is written down to its recoverable amount and the write down
recognised as an expense in the statement of comprehensive
income. Recoverable amount is the higher of fair value less costs
to sell and value in use.
If the carrying value of intangible capitalised exploration
expenditure exceeds the value determined by an independent
valuation, the asset is written down and the write-down recognised
as an expense. A reversal of an impairment loss for an asset is
recognised immediately in profit or loss.
(f) Segment information
Operating segments are reported if:
• Revenue is 10% or more of combined operating segment
revenues;
• The absolute value of profit or loss is greater than 10% of the
combined reported profits or losses of all operating segments,
whichever is greater;
• Assets are 10% or more of the combined assets of all operating
segments; or
NOTES TO THE FINANCIAL STATEMENTS
For year ended 31 March 2019
ANNUAL REPORT 2019NEW TALISMAN GOLD
23
NOTES TO THE FINANCIAL STATEMENTS
For year ended 31 March 2019
• Information about the segment would be useful to users of
the financial statements.
(g) Income tax
The company is a mining company for New Zealand tax purposes.
All exploration and development expenditure, including the cost
of mining assets, is tax deductible in the year the expenditure is
incurred. Mining losses can be set off against non-mining income
in the ratio 3:2.
Deferred taxation assets are recognised in the financial statements
only to the extent that it is probable that there will be future taxable
profit to utilise them.
(h) Share capital
Ordinary shares and options are classified as equity. Direct costs of
issuing shares and options are deducted from the proceeds of the issue.
(i) Cash flows
For the purpose of the statement of cash flows, cash includes cash
on hand, deposits held at call with banks and short-term highly
liquid investments with original maturities of three months or less.
(j) Employee entitlements
The liability for annual leave is accrued and recognised in the statement
of financial position. Annual leave is recorded at the undiscounted
amount expected to be paid for the entitlement earned.
(k) Foreign currencies
Transactions in foreign currencies are converted into NZ currency
at the rate of exchange ruling at the date of the transaction. At
balance date foreign monetary assets and liabilities are translated
at the closing rate and exchange variations resulting from these
translations are recognised in the income statement.
(l) Leases
New Talisman group leases certain equipment, land and buildings.
Operating lease payments, where the lessors effectively retain
substantially all the risks and benefits of ownership of the leased
item, are included in profit and loss in equal instalments over the
lease term.
Finance leases, which effectively transfer the risks and benefits
of ownership, are capitalised at the lower of fair value and the
present value of the minimum lease payments. Leased assets are
recognised at cost and depreciated over their respective estimated
useful lives.
(m) Basis of consolidation
The consolidated financial statements include the parent company
and all subsidiaries over which the parent company has the power
to control the financial reporting and operating policies. The
purchase method is used to prepare the consolidated financial
statements, which involves adding together like terms of assets,
liabilities, income and expenses on a line-by-line basis. All significant
intercompany transactions are eliminated on consolidation. In the
parent company’s separate financial statements, the investment in
subsidiaries is stated at cost less any impairment losses.
(n) Financial instruments
Financial instruments recognised in the statement of financial
position include cash balances, receivables, payables, investments
in and loans to others and borrowing. The parent and group have
no off-balance sheet financial instruments.
(1) Receivables and payables
Receivables and payables are initially recorded at fair value and
subsequently at amortised cost using the effective interest method.
Due allowance is made for impaired receivables (doubtful debts).
The resulting carrying amount for receivables is not materially
different from estimated realisable value.
(2) Share investments
Share investments in listed companies are designated as financial
assets at fair value. They are initially recorded at cost and
subsequently at market value. Gains or losses are recorded in profit
or loss. Share investments in unlisted companies cannot be reliably
valued. They are therefore carried at cost less any impairment
losses. Impairment losses, once recognised, are not reversed even
if the circumstances leading to the impairment are resolved.
A gain or loss on financial instruments stated at market value is
recognised in the Statement of Comprehensive Income.
(o) Goods and Services Tax
All amounts are shown exclusive of Goods and Services Tax (GST),
except for receivables and payables that are stated inclusive of
GST. The net amount of GST recoverable or payable is included
as part of the receivables or payables balance in the statement of
financial position.
(p) Earnings per share
The Group presents basic and diluted earnings per share (EPS)
data for its ordinary shares. Basic EPS is calculated by dividing the
profit or loss attributable to ordinary shareholders of the parent
by the weighted average number of ordinary shares outstanding
during the year, adjusted for own shares held. Diluted earnings
per share is determined by adjusting the profit or loss attributable
to ordinary shareholders and the weighted average number of
ordinary shareholders outstanding, adjusted for the effects of all
dilutive potential ordinary shares, comprising share options.
(q) Revenue recognition
Revenue is recognised at the fair value of the consideration
received net of the amount of GST. Revenue is recognised when
the significant risks and rewards of ownership of gold-bearing ore
have been transferred to the buyer.
(r) Change in Accounting Policies
There have been no significant changes in accounting policies. All
policies have been applied on bases consistent with those used in
the prior period.
(s) New and revised standards
Adoption of Standards, Interpretations and modifications
New Standards and amendments not adopted early:
• NZ IFRS 16 Leases (effective for accounting periods beginning
on or after 1 January 2019) - applied to exploration assets
(t) Inventories
Inventories are valued at the lower of weighted average cost and
net realisable value. Costs include mining and production costs as
well as commercial, environmental, health and safety expenses,
and stock movements.
2. OPERATING INCOME
Group
Mar 2019
NZ$
Group
Mar 2018
NZ$
Parent
Mar 2019
NZ$
Parent
Mar 2018
NZ$
Interest52,252128,59752,252128,597
Reimbursement of Expenditure----
Sundry income34,482-34,482-
Total operating income
86,734128,59786,734128,597
NEW TALISMAN GOLD
ANNUAL REPORT 2019
24
3. OPERATING AND ADMINISTRATION EXPENSES BY NATURE
GroupGroupParentParent
Mar 2019Mar 2018Mar 2019Mar 2018
NZ$NZ$NZ$NZ$
Auditor’s fees – auditing financial statements34,05833,84634,05833,846
Consultancy Fees44,37914,66534,50314,665
Depreciation46,90623,08446,90623,084
Director fees140,000170,000140,000170,000
Foreign exchange loss/(gain)11,42610,27411,42610,274
Kiwisaver5,0254,9275,0254,927
Legal fees97,16789,56397,16789,563
Rental and lease costs25,50824,24825,50824,248
Share revaluation loss/(gain)44,685(38,461)44,685(38,461)
Other840,907798,608836,886798,608
Total administration expenses1,290,0611,130,7541,276,1641,130,754
4. DIRECTOR AND EMPLOYEE REMUNERATION
Director remuneration
20192018
NZ$NZ$
MG Hill (Executive Director)*415,000360,000
C Nader 50,00050,000
J M McKee10,00040,000
A V Haworth40,00040,000
M R Stevens 40,00040,000
*Of which $101,800 (2018: $46,800) is expensed as consultancy fees and the remainder is capitalised in the Statement of Financial Position
as Talisman development expenditure. The development expenditure amount is based on time spent on directly attributable mine
development activities.
During the reporting period, no options were issued to directors or employees. In the prior year, no options were issued to directors or
employees.
Remuneration of Employees
During the reporting period, one employee received remuneration and benefits of between $240,000 and $250,000. The remuneration
included Kiwisaver contributions of $5,025.
Employee share option plan2019
Number
2018
Number
Unlisted options Issued to employees --
Unlisted options Issued to directors --
Total unlisted options issued during the period--
Balance of options at start of period4,250,0005,750,000
Unlisted options converted to fully paid shares during the period--
Options cancelled during the period4,250,0001,500,000
Unlisted options on issue at end of the period-4,250,000
5. TAXATION
Group
2019
NZ$
Group
2018
NZ$
Parent
2019
NZ$
Parent
2018
NZ$
Operating loss before taxation(1,203,327)(1,002,157)(1,189,430)(1,002,157)
Prima facie income tax at 28%
(336,932)(280,604)(333,040)(280,604)
Add/(subtract) the taxation effect of permanent differences:
Capital Loss on Disposal of Investments----
IRD Penalties1542815428
Non-Deductable Legal Fees Adjustment-3,273-3,273
Non- Deductable Entertainment Adjustment272134272134
Tax losses not recognised
(336,506)(277,168)(332,614)(277,168)
Temporary differences not recognised----
Income tax expense/(benefit) not recognised
(336,506)(277,168)(332,614)(277,168)
Deferred tax will not be recognised unless future taxable profit is probable.
The parent company has the following estimated taxation losses available:
(a) mining losses to offset against future mining income of NZ$10,878,656 (2018: NZ$10,358,693) and
(b) non-mining taxation losses of NZ$16,029,805 (2018: NZ$21,184,582).
NOTES TO THE FINANCIAL STATEMENTS
For year ended 31 March 2019
ANNUAL REPORT 2019NEW TALISMAN GOLD
25
NOTES TO THE FINANCIAL STATEMENTS
For year ended 31 March 2019
The mining losses are currently being assessed by the IRD and the company is working closely with their representatives to confirm
balances brought forward from previous years. Such losses will only be available to be offset if:
(a) the company derives future assessable income of a nature and an amount sufficient to enable the benefit of the losses to be realised;
(b) the company continues to comply with the conditions for deductibility imposed by the law;
(c) there are no adverse changes in tax legislation or tax rates which affect the company in realising the benefit from the deduction for
the losses.
At balance date the company’s imputation credit account balance was Nil (2018: $789).
6. SEGMENT INFORMATION
During the current period, the company had only one business segment - mineral exploration, within New Zealand.
7. EQUITY & RESERVES
EquityGroup
2019
NZ$
Group
2018
NZ$
Parent
2019
NZ$
Parent
2018
NZ$
Share capital34,590,84934,590,84934,590,84934,590,849
Capital reserve----
Share premium reserve----
Asset revaluation reserve
Share revaluation reserve
-
-
-
-
-
-
-
-
Accumulated deficit(18,562,587)(17,361,043)(21,278,596)(20,090,949)
Total parent shareholder equity16,028,26217,229,80613,312,25314,499,900
The group’s capital is managed with the objective of maintaining adequate working capital so that all obligations can be met on time.
All components of equity are regarded as “capital”. All internal capital management objectives have been met. This has not changed
since last year.
Accumulated deficitGroup
2019
NZ$
Group
2018
NZ$
Parent
2019
NZ$
Parent
2018
NZ$
Balance at beginning of year(17,361,043)(19,202,364)(20,090,949)(21,899,230)
Net loss attributable to shareholders (1,203,327)(1,002,157)(1,189,430)(1,002,157)
Other Comprehensive Income1,7838,1371,7838,137
Transfer of Reserves -2,835,341-2,797,641
Balance at end of year(18,562,587)(17,361,043)(21,278,596)(20,090,949)
Share capital Group and Parent
Ordinary shares
2019
Number
2018
Number
2019
NZ$
2018
NZ$
Balance beginning of year2,164,503,3032,076,995,85534,590,84935,164,939
Shares Issued-87,507,448-1,925,910
Transfer from Reserves---(2,500,000)
Balance at end of year2,164,503,3032,164,503,30334,590,84934,590,849
All authorised shares have been issued, are fully paid, have equal voting rights and will share equally in dividends and surplus on winding
up. The shares have no par value.
Share based payments
There were no share-based payment arrangements that existed during the period under review. (2018: Nil)
Transfer of Reserves
During the period under review all Asset Revaluation, Share Premium and Capital reserves were transferred to Accumulated Income.
Listed options Group and Parent
2019
Number
2018
Number
Balance at beginning of year 17,036,384119,851,516
Expired Options - (119,851,516)
Issued Options17,036,38417,036,384
Balance at end of year17,036,38417,036,384
Listed options can be exercised on or before 30 September 2022. Conversion price is A$0.055. When exercised, one option will convert
to one fully paid ordinary share.
NEW TALISMAN GOLD
ANNUAL REPORT 2019
26
NOTES TO THE FINANCIAL STATEMENTS
For year ended 31 March 2019
Unlisted Options Group and Parent
Options issued to employees:
2019
Number
2018
Number
Opening Balance of options on issue1,250,0001,250,000
Unlisted options issued (expiry 11/11/2018)--
Unlisted options issued (expiry 13/2/2019)--
Unlisted options cancelled during period1,250,000-
Unlisted options converted to fully paid share at A 1.1 cent each--
Total unlisted options on issue to employees -1,250,000
Options issued to directors:
Unlisted options issued during the period--
Total unlisted options on issue to directors -3,000,000
Total unlisted options on issue at end of year-4,250,000
Total listed and unlisted options on issue at end of year17,036,38421,286,384
Options issued to directors and employees have not been recognised in these financial statements
because they were issued for no consideration during a rights issue.
Nil unlisted employee options were converted during the year (Last Year Nil).
These options were issued as an incentive for employees for no consideration.
8. RELATED PARTY TRANSACTIONS
Payments for consulting services to companies in which directors and major shareholders have a substantial interest amounted to NZ$462,447
(2018:NZ$522,287). At balance date, creditors included NZ$149,894 payable to directors and other related companies (2018:NZ$92,394).
Related party debtors totalled $2,194 at balance date (2018:NZ$Nil) and no related party debts were written off during the year.
9. PROPERTY, PLANT & EQUIPMENT
Group and Parent
Fixtures &
fittings
NZ$
Office
equipment
NZ$
Field
equipment
NZ$
Motor
Vehicles
NZ$
Total
NZ$
Year ended 31 March 2018
Carrying amount 1 April 20175152,15410,091-12,760
Additions-39,81430,53129,655100,000
Depreciation(125)(12,771)(2,824)(7,364)(23,084)
Carrying amount
39029,19837,79822,29189,679
31 March 2018
Cost1,26046,67746,39029,655123,982
Depreciation(870)(17,479)(8,592)(7,364)(34,305)
Carrying amount
39029,19837,79829,29189,677
Year ended 31 March 2019
Carrying amount 1 April 2018
39029,19837,79822,29189,677
Additions-701216,487-217,188
Depreciation(125)(17,262)(20,623)(8,896)(46,906)
Carrying amount
26512,637233,66413,395259,960
31 March 2019
Cost1,26047,378262,87829,655341,171
Depreciation(995)(34,741)(29,215)(16,260)(81,211)
Carrying amount
26512,637233,66313,395259,960
ASSETS UNDER CONSTRUCTION
Group and Parent
Talisman mine development20192018
NZ$NZ$
Balance at beginning of year9,638,2687,843,882
Development expenditure2,396,3071,794,386
Balance at end of year12,034,5759,638,268
A mine is currently being developed on the Talisman Mining permit and development expenditure has been recorded at cost in the
statement of financial position.
Development expenditure consists of mining development costs, professional salaries, data acquisitions and all overhead expenses
relating to the operation of the mine. Management assesses the allocation of directly attributable overheads at the end of each reporting
date.
The directors have provided for rehabilitation costs of the Talisman mine site on its closure. The estimated cost is $32,215 (2018: $17,795).
The same value has been included in the development expenditure.
In June 2018, an independent valuation report that complies with the 2015 Valmin Code was obtained from Geos Mining Mineral
Consultants for the Talisman Permit inclusive of Talisman and Talisman Deeps. The independent valuation indicated a value of the
Talisman project MP51326 in the range of $11.7m to $26.4m with a preferred value of $18.8m.
ANNUAL REPORT 2019NEW TALISMAN GOLD
27
NOTES TO THE FINANCIAL STATEMENTS
For year ended 31 March 2019
The Geos report confirmed that the Company’s technical statement on the Talisman mine and Technical reports, including the 2018
Prefeasibility and Scoping studies are reported in compliance with the reporting requirements of the 2012 JORC Code. The Geos report
confirmed that the resource classifications of the 2017 Mineral resource estimate are consistent with the principles of the JORC Code 2012.
10. INTANGIBLE EXPLORATION ASSETS
Group Parent
2019
NZ$
2018
NZ$
2019
NZ$
2018
NZ$
Prospecting costs
Balance at beginning of year2,752,9002,744,90010,57510,575
Development expenditure 8,0508,000--
Balance at end of year
2,760,9502,752,90010,57510,575
Group Parent
2019201820192018
NZ$NZ$NZ$NZ$
Gross prospecting costs
Gross cost of current permit2,760,9502,752,90010,57510,575
Balance at end of year
2,760,9502,752,90010,57510,575
Exploration and evaluation expenditure is recorded at cost. The carrying value of the Rahu exploration asset has been written back in the
2017 statement of financial position to reflect the application of a consistent group accounting policy to its cost of $2,733,363. In June
2018, an independent valuation report compliant with the 2015 Valmin Code was obtained from Geos Mining Mineral Consultants which
included the Rahu permit. The independent valuation indicated a value for the Rahu project EP60144 in the range of $1.0m to $4.6m with
a preferred value of $2.2m.
TENEMENT SCHEDULE:
Permits held by New Talisman Gold Mines Limited Group:
51 326 Talisman (Mining) – Granted mining permit, Coromandel, New Zealand
60 144 Rahu (Exploration)
11. SHARE INVESTMENTS
GroupGroupParentParent
2019201820192018
NZ$NZ$NZ$NZ$
Investment in listed companies – at fair value8,14252,6987,93352,488
Investment in unlisted companies – at cost3,1713,3003,1713,300
Total share investments
11,31355,99811,10455,788
Investment in listed companies includes the investment in Broken Hill Prospecting Limited.
Unlisted shares are held for the long term. They are stated at cost because fair value cannot be reliably measured.
12. SUBSIDIARY COMPANIES
Percent held Incorp Balance Activity
2019 2018 in date
Subsidiaries
Coromandel Gold Limited 100% 100% NZ 31 March Share investment
Northland Minerals Limited 100% 100% NZ 31 March Minerals exploration
Rahu Resources Pty Limited 100% 100% NZ 31 March Minerals exploration
All subsidiaries are direct subsidiaries of the Company. The investment in each subsidiary is recorded at cost (NZ$Nil) in the company’s
statement of financial position. Coromandel Gold and Northland Minerals did not trade during the year.
13. FINANCIAL INSTRUMENTS
Credit Risk
Financial instruments which potentially subject the company to credit risk principally consist of bank balances and receivables. Surplus
funds are placed in interest bearing accounts with major trading banks and the company does not anticipate non-performance by those
parties. Maximum exposure to credit risk at balance date is represented by the carrying value of the financial instruments. No collateral
is held on these assets and the balances are stated net of recognised impairment losses. Cash at bank represented 97% of total cash and
receivables. The group deals only with banks having at least an A credit rating.
Currency Risk
The company has exposure to foreign exchange risk as a result of transactions from normal trading activities mainly denominated in
Australian currencies. The company holds funds in an Australian currency bank account. Exposure to exchange risk is unhedged.
Liquidity Risk
Management supervises liquidity through cashflow forecasting, budgeting and by carefully controlling cash outflows from existing cash
resources. The group relies on new equity to fund exploration and mine development expenditure.
NEW TALISMAN GOLD
ANNUAL REPORT 2019
28
Interest Rate Risk
At balance date the company had no exposure to interest rate risks. The table below shows short term deposits held at balance date:
Re-pricing AnalysisEffective Interest RateTotal
NZ$
6 months or less
NZ$
Short term bank deposits2.65-2.95%1,121,7721,121,772
Over the long term, changes in interest rates and reduced amounts on deposit will affect profit or loss.
Fair Values
Fair values used in the measurement of financial instruments may vary from values directly observed in active markets to those that must
be derived without reference to observable data. Investments in listed companies are measured at fair value based on quoted prices
in active markets. As stated in Note 11, the fair value of unlisted shares cannot be reliably measured and are stated at cost. Except for
unlisted shares, there is no material difference between the carrying amounts and estimated fair values of the company’s financial assets
and liabilities.
14. COMMITMENTS
Operating lease commitments
Lease commitments under non-cancellable operating leases:
Group & Parent
20192018
NZ$NZ$
Not later than one year23,53518,204
Later than one year but not later than five years--
23,53518,204
The company currently leases offices on an annual basis.
The group has capital commitments of NZ$Nil (2018:Nil).
15. RECONCILIATION OF OPERATING CASHFLOW AND REPORTED DEFICIT
GroupParent
2019
NZ$
2018
NZ$
2019
NZ$
2018
NZ$
Net profit/(deficit) after taxation
(1,203,327)(1,002,157)(1,189,430)(1,002,157)
Add non-cash items:
Depreciation
46,90623,08446,90623,084
Field expenditure write off
----
Share revaluation (gain)/loss
44,685(38,461)44,685(38,461)
Provision For Doubtful Debts
----
Share based payments
----
Capital loss on sale of shares
----
In Specie Share Distributions
----
Development expenditure owing
--
Revaluation of Investments
----
Exchange (gain)/loss
11,42610,27411,42610,274
103,017(5,103)103,017(5,103)
Add (less) movement in working capital:
Decrease (increase) in debtors
1,112(3,968)1,112(3,968)
Increase (decrease) in creditors
187,129109,038187,129109,038
Decrease (increase) in accrued income
9,829(14,918)9,829(14,918)
Decrease (increase) in Stock on Hand
(34,482)-(34,482)-
Decrease (increase) in Development WC
(110,455)-(102,405)
Decrease (increase) in prepayments
(3,644)(25,572)(3,644)(25,572)
Decrease (increase) in intercompany loans
--(22,410)-
Decrease (increase) in GST
(27,959)(14,014)(27,496)(14,014)
21,53050,5667,63350,566
Net cash outflows from operating activities
(1,078,780)(956,694)(1,078,780)(956,694)
NOTES TO THE FINANCIAL STATEMENTS
For year ended 31 March 2019
ANNUAL REPORT 2019NEW TALISMAN GOLD
29
NOTES TO THE FINANCIAL STATEMENTS
For year ended 31 March 2019
16. CONTINGENT LIABILITIES
Group and Parent
Mar 2019
NZ$
Mar 2018
NZ$
Contingent liabilities--
17. NET TANGIBLE ASSETS PER SECURITY Group and Parent
Mar 2019
NZ$
Mar 2018
NZ$
Net tangible assets
Net tangible assets per security
13,267,312
0.61 cent
14,476,906
0.68 cent
18. GOING CONCERN
The financial report has been prepared on a going concern basis. The directors are in the process of a capital raise to ensure sufficient
funds are available to ensure financial obligations can be met. The outcome of this capital raise is unknown as at the date of this report.
19. EARNINGS PER SHARE
Group
Mar 2019
Group
Mar 2018
Parent
Mar 2019
Parent
Mar 2018
Profit/(loss) from continuing operations
Weighted average number shares
(1,203,327)
2,164,503,303
(1,002,157)
2,120,438,248
(1,189,430)
2,164,503,303
(1,002,157)
2,120,438,248
Basic earnings per share
Diluted average shares on issue
(0.06) cent
2,187,705,676
(0.05) cent
2,187,705,676
(0.06) cent
2,187,705,676
(0.05) cent
2,187,705,676
Diluted earnings per share
(0.06) cent
(0.05) cent(0.06) cent
(0.05) cent
Weighted average number shares
Weighted average number options
2,164,503,303
17,036,384
2,120,438,248
67,267,428
2,164,503,303
17,036,384
2,120,438,248
67,267,428
Diluted average share on issue
2,181,539,687
2,187,705,6762,181,539,687
2,187,705,676
20. EMPLOYEE BENEFITS
Group
Mar 2019
Group
Mar 2018
Parent
Mar 2019
Parent
Mar 2018
NZ$NZ$NZ$NZ$
Balance at beginning of year21,33030,14721,33030,147
Additional provision----
Amount utilised(1,333)(8,817)(1,333)(8,817)
Balance at end of year
19,99721,33019,99721,330
Employee benefits accrued comprise holiday pay.
21. RECEIVABLES AND PREPAYMENTS
Group
Mar 2019
NZ$
Group
Mar 2018
NZ$
Parent
Mar 2019
NZ$
Parent
Mar 2018
NZ$
Sundry receivables129,16267,833133,32767,833
Accrued income5,36515,1945,36515,194
Prepayments37,53933,89537,53933,895
Intercompany advances--30,41012,628
172,066116,922206,641129,550
Trade Receivables
All financial assets are within the contractual terms. None are overdue and none are impaired. No collateral is held for receivables.
22. PRIOR PERIOD ADJUSTMENT
No prior period adjustments have been made.
23. SIGNIFICANT EVENTS SINCE BALANCE DATE
On June 6, 2019 the company announced an offer to shareholders to participate in a Share Purchase Plan (the SPP).
The SPP provides shareholders the opportunity to subscribe for shares up to NZ$15,000, or A$14,175 in total or in lots of NZ$1,000 or
A$
945.
In addition, promptly following 24 July 2020, the company will issue or transfer to each shareholder issued shares in the SPP 1 loyalty share
for every 5 shares subscribed for that the shareholder continues to hold on 24 July 2020 for nil consideration.
The issue price under the SPP is NZ$0.6875
cents per share or A$0.65 cents per share.
The offer closes at 7.00 pm New Zealand time on
19 July 2019, and allotment is scheduled to occur by 24 July 2019.
NEW TALISMAN GOLD
ANNUAL REPORT 2019
30
ADDITIONAL INFORMATION
DIRECTOR INFORMATION AND DISCLOSURE OF DIRECTORS INTERESTS
The following general disclosures of interest were received in relation to the year ended 31 March 2019:
DirectorRelevant interest in Ordinary SharesRelevant Interest in Unlisted Options
M G Hill42,159,0851,500,000
M Stevens60,0000
C Nader00
A V Haworth4,5000
TOP 20 OPTION HOLDERS as of 18 JUNE 2019
RankNameUnits% of
Units
1.COSMO BRYAN BOREHAM1,000,0005.87
2.KA FU TSE537,0643.15
3.WARWICK JOHN LANGE386,0902.27
4.MURRAY LAWRENCE CAMERON286,3641.68
5.CITICORP NOMINEES PTY LIMITED181,8181.07
6.STEPHEN WILLIAM BAGGETT154,5450.91
7.MADAPATHA MUDIYANSELAGE AMBANPOLA136,3640.80
8.UDARA AMBANPOLA136,3640.80
9.REGINALD GEORGE ANDERSON136,3640.80
10BEAZER INVESTMENT LIMITED136,3640.80
11.MICHAEL JOHN BOUWMEESTER136,3640.80
12.JAMES DANIEL BRISBANE136,3640.80
13.HAMISH EDWARD ELLIOT BROWN136,3640.80
14.PHILIP ANTHONY CALDWELL + CHERIE KIM CALDWELL136,3640.80
15.JANICE AMANDA CALLEN136,3640.80
16.CRAIG WILLIAM CARTER136,3640.80
17.CHI HUA CHEN136,3640.80
18.JIANBIN CHEN136,3640.80
19.CHUNG KAN CHOW136,3640.80
20.DAVID CLAUDE COCKBURN136,3640.80
Total top 20 holders of 30/09/2022 Aud $0.05 Options4,454,97726.15
Total listed options17,036,384
ANNUAL REPORT 2019NEW TALISMAN GOLD
31
HOLDING RANGEOrdinary Shares as of 31 May 2019
RangeTotal holdersShares Held% of Issued Capital
1 - 1,00011225,6660.00
1,001 - 5,000253874,3050.04
5,001 - 10,0001981,701,5020.08
10,001 - 100,00095845,978,2792.12
100,001 - 9,999,999,999,9991,2282,115,923,55197.76
Total2,7492,164,503,303100.00
TOP 20 ORDINARY SHAREHOLDERS as of 18 June 2019
RankNameUnits% of Units
1.HAMISH EDWARD ELLIOT BROWN270,681,81812.51
2.RIUO HAURAKI LIMITED80,937,6383.74
3.BEVERLEY IDA EVANS75,650,0003.50
4.INTERNATIONAL PACIFIC SECURITIES LIMITED56,510,1172.61
5.MATTHEW GEOFFREY HILL42,940,9031.98
6.FEOH PTY LTD <KARLSON INVESTMENT A/C>40,681,8181.88
7.CHRISTOPHER DAVID ENGLISH + JACQUELINE ENGLISH
<KRINGLES SUPER FUND A/C>
35,758,9101.65
8.TONY CALDER BUTTERICK32,500,0001.50
9.HILL FAMILY GROUP PTY LIMITED28,096,5071.30
10.THOMAS HERBERT TEBBS GOTHORP27,406,7831.27
11.HOI YEE JULIE TSE24,386,2851.13
12.CHI HUA CHEN19,365,8190.89
13.ROBERT MARSHALL WALSHAM + RACHEL SANDRA WALSHAM
<R & R WALSHAM FAMILY A/C>
19,215,9780.89
14.BEAZER INVESTMENT LIMITED16,363,9660.76
15.BOYI WEI16,000,0000.74
16.CHUNG KAN CHOW15,469,5500.71
17.ANDREW WILLIAM LIDDELL14,400,0000.67
18.WIEBKE GAILER14,000,0000.65
19.PETER WILLIAM HALL14,000,0000.65
20.BERNARD CHEUK MUN FONG & KWOK CHUEN FONG13,850,0000.64
Total Top 20 holders of Ordinary Shares858,216,09239.65
Total issued Capital2,164,503,303
NEW TALISMAN GOLD
ANNUAL REPORT 2019
32
CORPORATE GOVERNANCE
In accordance with the NZX Corporate Governance Code 2017 (“NZX Code”), and the ASX Corporate Governance Council’s Principles
and Recommendations (3rd Edition) (“ASX Recommendations”) New Talisman Gold Mines Ltd (“Company”) has adopted systems of
control and accountability as the basis for corporate governance best practice.
Policies and Charters (for the board and its committees), including the Company’s Code of Ethics and other policies and procedures
relating to the Board and its responsibilities are available on the Company’s website www.newtalisman.co.nz
Commensurate with the spirit of the NZX Code and the ASX Recommendations, the Company has followed each recommendation where
the Board has considered the recommendation to be an appropriate benchmark for its corporate governance practices, taking into
account factors such as the size of the Company and the Board, resources available and activities of the Company.
After due consideration by the Board during the Company’s 2018/2019 financial year (“reporting period”) the Company’s corporate
governance practices departed from the NZX Code or ASX Recommendations only as set out below.
The information in this statement is current at 31 March 2019.
EXPLANATIONS FOR DEPARTURES FROM NZX CORPORATE GOVERNANCE CODE 2017
RecommendationNotification of DepartureExplanation for Departure
2.5: An issuer should have a written
diversity policy which includes
requirements for the board or a
relevant committee of the board to set
measurable objectives for achieving
diversity (which, at a minimum, should
address gender diversity) and to assess
annually both the objectives and the
entity’s progress in achieving them.
The issuer should disclose the policy or
a summary of it.
The Company has established a
diversity policy, a copy of which is
disclosed on the Company’s website.
However, the policy does not include
requirements for the board to establish
measurable objectives for achieving
gender diversity, or for the board to
assess annually the objectives and the
progress towards achieving them.
The Board considers the size of the Company’s
operations make it impractical to establish
meaningful measurable objectives for achieving
gender diversity.
EXPLANATIONS FOR DEPARTURES FROM ASX CORPORATE GOVERNANCE PRINCIPLES
AND RECOMMENDATIONS (3rd Edition)
The Company has followed each of the ASX Recommendations during the reporting period, except in relation to the matters specified below:
RecommendationNotification of DepartureExplanation for Departure
3.2: The Company should establish
a diversity policy and disclose the
policy or a summary of the policy. The
policy should include requirements
for the board to establish measurable
objectives for achieving gender
diversity and for the board to assess
annually both the objectives and the
progress towards achieving them.
The Company has established a
diversity policy, a copy of which is
disclosed on the Company’s website.
However, the policy does not include
requirements for the board to establish
measurable objectives for achieving
gender diversity, or for the board to
assess annually the objectives and the
progress towards achieving them.
The Board considers the size of the Company’s
operations make it impractical to establish
meaningful measurable objectives for achieving
gender diversity.
3.3: Disclose in each annual report the
measurable objectives for achieving
gender diversity set by the Board in
accordance with the diversity policy
and progress towards achieving them.
No measurable objectives for achieving
gender diversity have been set by the
Board.
The Board considers the size of the Company’s
operations make it impractical to establish
meaningful measureable objectives for
achieving gender diversity. However, the Board
recognises the importance of diversity and has
therefore adopted a diversity policy, a copy of
which is available on the Company’s website.
BOARD COMPOSITION AND EXPERTISE
The Company has established the functions reserved to the Board, and those delegated to senior executives and has set out these
functions in a Statement of Board and Management Functions, which is disclosed on the Company’s website.
A profile of each director containing the skills, experience, expertise, formal qualifications and term of office of each director is set out in
the director profiles in this Annual Report.
The mix of skills and diversity that the Board is seeking to achieve in its membership is significant experience and expertise in: mine
development and underground operations, geological modelling, financial reporting, financial markets, risk management, statutory
compliance, resource management, health and safety and employment. Each of these skills are represented in the Board’s current
composition except significant experience and expertise in financial reporting and mine development. These skills are represented in the
senior management team. The size of the Board and the development of the Company’s projects places constraints on the mix of skills
the Board is able to achieve.
It is the policy of the Board that in determining candidates for the Board, the following process shall occur:
ANNUAL REPORT 2019NEW TALISMAN GOLD
33
a. The Nomination Committee (or equivalent) evaluates the
range of skills, experience and expertise of the existing Board.
In particular, the Nomination Committee (or equivalent) is to
identify the particular skills that will best increase the Board’s
effectiveness. Consideration is also given to the balance of
independent directors on the Board.
b. A potential candidate is considered with reference to their
skills and expertise in relation to other Board members.
c. If relevant, the Nomination Committee recommends an
appropriate candidate for appointment to the Board. Any
appointment made by the Board is subject to ratification by
shareholders at the next general meeting.
The Board recognises that Board renewal is critical to performance
and the impact of Board tenure on succession planning.
Re-appointment of directors is not automatic. The Company’s
Policy and Procedure for Selection and (Re)Appointment of
Directors is disclosed on the Company’s website.
IDENTIFICATION OF INDEPENDENT
DIRECTORS
In considering independence of directors, the Board refers to the
criteria for independence as set out in NZX Listing Rule 3.3.2 and
Box 2.1 of the ASX Recommendations (“Independence Criteria”).
Applying the Independence Criteria during the reporting period
and at balance date the Board comprises a majority of independent
directors. The independent directors of the Company were the
Chair, Charbel Nader, and Tony Haworth. Murray Stevens is not an
independent director as he provides consultancy services to the
company from time to time, and Matthew Hill is not an independent
director as he is the Chief Executive Officer.
STATEMENT CONCERNING AVAILABILITY
OF INDEPENDENT PROFESSIONAL ADVICE
If a director considers it necessary to obtain independent professional
advice to properly discharge the responsibility of his/her office
as a director then, provided the director first obtains approval for
incurring such expense from the Chair, the Company will pay the
reasonable expenses associated with obtaining such advice.
DIRECTOR REMUNERATION
Details of remuneration are contained in the Notes to the Financial
Statements forming part of this report.
The Company’s Remuneration Policy is disclosed on the Company’s
website. Remuneration of Directors and senior executives is set by
reference to payments made by other companies of similar size
and industry, and by reference to the skills and experience of the
Directors and executives.
There is currently no direct link between remuneration paid to any
of the non-executive directors and corporate performance such as
bonus payments for achievement of key performance indicators.
There are no termination, retirement or Company superannuation
scheme benefits for non-executive directors.
PERFORMANCE EVALUATION OF THE
BOARD, COMMITTEES AND SENIOR
EXECUTIVES
The board reviews the size and composition of the board and the
mix of existing and desired competencies across members from
time to time. Criteria considered by the directors when evaluating
prospective candidates are contained in the board’s charter. The
chair of the board is responsible for ensuring a regular review of
the performance of the board, committees and individual directors
occurs at least annually. The chair is responsible for determining
the process under which this evaluation takes place. The board
reviews annually the size and composition of the board and the
mix of existing and desired competencies across members.
The board is responsible for evaluating the performance of
senior executives. The board evaluates the performance of
senior executives via an ongoing process of assessment and a
formal annual review in December. During the formal review, the
senior executive’s performance is measured against their role’s
assessment criteria.
The Company’s Process for Performance Evaluations is disclosed
on the Company’s website.
CORPORATE CODE OF CONDUCT
The board has adopted a Corporate Code of Conduct (available
on the Company’s website). Directors, employees and consultants
must comply with the policies which the Board has endorsed to
achieve ethical behaviour and efficiency within the authorities and
discretions designated to them, avoiding putting themselves in
a position where they stand to benefit personally or be accused
of insider trading. Compliance with all laws and regulations and
maintenance of confidentiality and honesty is expected. The
Corporate Code of Conduct forms part of every employment and
consultancy agreement. Failure to comply can result in disciplinary
action, including, where appropriate, dismissal. The Board has not
adopted a Whistleblower Policy. However, employees have direct
access to the Chair and are encouraged to contact the Chair with
any suspected departure from the Company’s Code of Conduct.
GENDER DIVERSITY
The board has adopted a Diversity Policy (available on the
Company’s website). As noted above, the Diversity Policy does
not include requirements for the board to establish measurable
objectives for achieving gender diversity. Gender diversity at
balance date for the reporting period:
ComponentTotalFemale
Component
% Female
Component
Board of Directors400%
Senior Executives100%
Consultants3267%
TOTAL*8225%
* Total comprises the figures for the whole organisation.
The Board considers that the Company complied with its diversity
policy during the reporting period.
AUDIT COMMITTEE
The Audit Committee as at the end of the reporting period consists
of the following non-executive independent directors: Tony
Haworth (Chair), Charbel Nader and Murray Stevens. The Board
deals with any conflicts of interest that may occur when convening
in the capacity of the Audit Committee by ensuring that the director
with conflicting interests is not party to the relevant discussions.
During the reporting, period the Audit Committee had the
opportunity to meet with the external auditor in respect of the
financial reports. The Audit Committee is responsible for reviewing
Annual and Interim Financial Statements, related stock exchange
announcements and all other financial information published or
released to the market; monitoring and making recommendations
for improvement in internal control environment, including
effectiveness and efficiency of operations, reliability of financial
reporting and compliance with applicable laws and regulations;
overseeing the risk management and compliance framework; the
appointment, removal and remuneration of the external auditors;
reviewing the terms of their engagement and the scope and
quality of the audit, reviewing and approving the nature and scope
of non-audit services and ensuring rotation of the external audit
engagement partner.
Details of each of the director’s qualifications are included in the
Board of Director’s Profiles. All members of the sub committee
considered themselves to be financially literate and have financial
experience and industry knowledge. Mr Haworth and Mr Stevens
have significant experience in mineral exploration, development
and valuation at senior advisory level, Mr Nader has gained
significant financial experience from his background in investment
banking and corporate finance.
CORPORATE GOVERNANCE
NEW TALISMAN GOLD
ANNUAL REPORT 2019
34
The Company has established a Procedure for the Selection,
Appointment and Rotation of its External Auditor, which is disclosed
on the Company’s website. The Board is responsible for the initial
appointment of the external auditor and the appointment of a new
external auditor when any vacancy arises, as recommended by the
Audit Committee (or its equivalent). Candidates for the position of
external auditor must demonstrate complete independence from
the Company through the engagement period. The Board may
otherwise select an external auditor based on criteria relevant to
the Company’s business and circumstances. The performance of
the external auditor is reviewed on an annual basis by the Audit
Committee (or its equivalent) and any recommendations are made
to the Board.
NOMINATION AND REMUNERATION
COMMITTEE
The Nomination and Remuneration Committee (N&R) as at the
end of the reporting period consists of the following non-executive
independent directors: Charbel Nader, Anthony Howarth and
Matthew Hill. Some responsibilities of the N&R Committee were
also addressed by the full Board at Board and Strategy meetings
during the reporting period. The Board has adopted, and the
N&R Committee applies a Nomination Committee Charter and a
Remuneration Policy which is available on the Company’s website.
Duties of the N&R Committee includes reviewing remuneration
of executive and non-executive directors, incentive schemes and
reviewing the Remuneration Committee Policy (disclosed on the
Company’s website).
The Board has adopted, and the Remuneration Committee
applies, a Remuneration Committee Charter which is available on
the Company’s website.
HEALTH SAFETY SECURITY AND
ENVIRONMENT COMMITTEE
The Health Safety Security and Environment Committee (HSSE) as
at the end of the reporting period consists of the following directors:
Murray Stevens, Tony Haworth, and Matthew Hill, Chief Operations
officer Wayne Chowles and external expert consultant Craig Smith
are also members of the committee. Some responsibilities of the
HSSE Committee were also addressed by the full Board at Board
and Strategy meetings during the reporting period. The Board has
adopted, and the HSSE Committee applies a HSSE Committee
Charter which is available on the Company’s website
The Company’s Policy for Trading, which is disclosed on the
Company’s website, states that key management personnel must
not enter into transactions or arrangements which operate to
limit the economic risk of their security holding in the Company
without first seeking and obtaining written acknowledgement
from the Chair, Audit Committee Chair or Executive Director; and
Key Management Personnel are prohibited from entering into
transactions or arrangements which limit the economic risk of
participating in unvested entitlements.
MEETING ATTENDANCE
Director/ConsultantBoardAuditNominationHSSE
M Hill8/83/31/13/5
M Stevens8/83/31/15/5
C Nader8/83/31/1n/a
A Haworth8/83/31/1n/a
W Chowlesn/an/an/a5/5
C Smith*n/an/an/a4/4
* C Smith was appointed as a member of the HSSE Committee
effective 1 July 2018.
RISK MANAGEMENT
The Company has continued to develop its strategies for managing
risk during the reporting period, particularly where internal controls
are concerned. The Company’s internal controls are reviewed by
the external auditor twice a year, and are monitored regularly by
the independent directors. The Board relies on the sign-off of
senior management with respect to the financial reports, which
sign-off has been provided in respect of the Company’s 2018/2019
accounts.
The Company has adopted a Risk Management Policy (a summary
is available on the Company’s website). Under the Policy, the Board
delegates day-to-day management of risk to the Chief Executive
Officer. The Policy sets out the role of the Chief Executive Officer
and accountabilities. It also contains the Company’s risk profile
and describes some of the policies and practices the Company has
in place to manage specific business risks.
The process of management of material business risks is allocated
to the business risk owners within the management team. The
Board relies on risk controls being implemented effectively and the
primary risk controls reviewed monthly through a standing item on
the Board agenda. The Company is in the process of updating its
Risk Management Policy to include formal processes to identify,
manage and mitigate risk, using a risk register. A significant body
of work was completed during the reporting period addressing
mine operational risks. This document will be reviewed externally
by government regulators. Certain risks pertinent to the sector in
which the Company operates are not able to be managed at this
time, for example the price of gold.
Material business risks reported on during the reporting period
included statutory compliance, health and safety in the operational
environment, sustainability of the company’s ore resources,
environmental risk working in a conservation estate, internal audit
compliance, adequacy of computer systems, ethical conduct and
business practice, retention of key staff, financial reporting and
liquidity risk.
The Board has required management to design, implement and
maintain risk management and internal control systems to manage
the Company’s material business risks. The Board also requires
management to report to it confirming that those risks are being
managed effectively. The Board receives on a regular basis reports
from management as to the effectiveness of the Company’s
management of its material business risks, risk evaluation, analysis
and treatment. Risk management is a standing item on the Board
agenda, giving opportunity for Board discussion. The Audit
Committee and the full Board addresses areas of risk and evaluates
the effectiveness of controls.
ASSURANCES TO THE BOARD
The Chief Executive Officer (CEO) and the Chief Financial officer
(CFO) are not required to provide a declaration to the Board in
accordance with section 295A of the Corporations Act (Australia)
as the Company is instead subject to the laws of New Zealand.
However, the Board requires the CEO and the CFO to provide a
declaration confirming that the financial reports for the reporting
period present a true and fair view, in all material respects, of the
Company’s financial condition and operational results, and are in
accordance with relevant accounting standards. Assurance is also
given that the financial statements are founded on a sound system
of risk management and internal compliance and control and that
the Company’s risk management and internal compliance and
control is operating efficiently and effectively.
CORPORATE GOVERNANCE
ANNUAL REPORT 2019NEW TALISMAN GOLD
35
CONTINUOUS DISCLOSURE
The Company has adopted a Continuous Disclosure Policy which
sets out obligations for directors, employees and consultants in
relation to continuous disclosure. The Company has also adopted
Compliance Procedures to ensure compliance with the ASX
Listing Rule requirements in relation to continuous disclosure,
and to ensure accountability at a senior executive level for that
compliance. Summaries of both these documents are available
on the Company’s website. In accordance with the NZX and ASX
Listing Rules, the Company is required to disclose to the market
matters which could be expected to have a material effect on
the price or value of the Company’s securities. Management
processes are in place to ensure that all material matters which
may potentially require disclosure are promptly reported to
the Chief Executive Officer or the Company Secretary who is
responsible for ensuring that such information is not released to
any person until the NZX and ASX have confirmed its release to
the market.
SHAREHOLDER COMMUNICATION
The Board has adopted a Shareholder Communication Policy, a
copy of which is disclosed on the Company’s website.
DIRECTOR AND OFFICER LIABILITY
INSURANCE
The Company maintains director and officer liability insurance
and indemnifies directors and officers of the Company against
all liabilities which may arise out of the performance of normal
duties as directors or officers, unless the liability relates to conduct
involving a lack of good faith. This includes indemnity of costs and
expenses incurred in defending an action that falls within the scope
of the indemnity.
MATERIALITY
independence of directors, the Board refers to the thresholds for
qualitative and quantitative materiality as adopted by the Board
and contained in the Board Charter, which is disclosed in full on
the Company’s website. Balance sheet items are material if they
have a value of more than 10% of pro-forma net asset. Profit and
loss items are material if they have an impact on the current year
operating result of 10% or more. Items are also material if they
impact on the reputation of the Company, they involve a breach
of legislation; they are outside the ordinary course of business;
they could affect the Company’s rights to its assets; if accumulated,
they would trigger the quantitative tests; they involve a contingent
liability that would have a probable effect of 10% or more on
balance sheet or profit and loss items; or they will have an effect
on operations which is likely to result in an increase or decrease
in net income or dividend distribution of more than 10%. Criteria
for determining the materiality of contracts can be found in
“Board and Management” under Corporate Governance on the
Company’s website.
SHARE TRADING
The Company has adopted a Share Trading Policy to assist with
compliance with insider trading regulations under the Securities
Market Act 1988 (New Zealand) and the Corporations Act
2001 (Australia). This policy restricts directors, employees and
consultants from trading in a number of ways and is available on
the Company’s website. Application must be made by directors,
employees and consultants to the Company for approval prior
to trading in the Company’s securities. A requirement to comply
with this policy forms part of every employment or consultancy
agreement.
SUMMARY OF WAIVERS
No waivers to the rules were requested to the Stock Exchanges
during the reporting period.
CORPORATE GOVERNANCE
COMPANY DIRECTORY
DIRECTORS
Charbel Nader (Chairman, Independent)
Tony Haworth (Independent Director)
Murray R Stevens (Director)
Matthew G Hill (Chief Executive Officer)
COMPANY SECRETARY
S Jane Bell
REGISTERED (HEAD) OFFICE
541 Parnell Road, Parnell
Auckland, New Zealand
Telephone (+64 9) 303-1893
Facsimile (+64 9) 303-1612
Email: office@newtalisman.co.nz
Website: www.newtalisman.co.nz
PRINCIPAL OFFICE IN AUSTRALIA
1st Floor, 25 Richardson Street
West Perth
Western Australia 6005
Telephone (+61 8) 9481-2040
Facsimile (+61 8) 9481-2041
BANKERS
Westpac Bank, Auckland
National Australia Bank, West Perth
AUDITORS
K S Black & Co
Level 5
350 Kent Street,
Sydney, 2000
SOLICITORS
Chapman Tripp, Auckland
Williams & Hughes, Perth
SECURITIES LISTED
New Zealand Stock Exchange
Code: Shares NTL; Options NTLOB
Australian Securities Exchange
Code: Shares NTL, Options NTLOB
SHARE REGISTRARS
New Zealand:
Computershare Investor Services Limited
Private Bag 92119
Auckland 1142
159 Hurstmere Road
Takapuna, Auckland 0622.
New Zealand
Telephone (+64 9) 488 8777
Facsimile (+64 9) 488 8787
Australia:
Computershare Investor Services Pty Limited
Yarra Falls
452 Johnston Street
Abbotsford Victoria 3067, Australia
Telephone 1300 850 505
Overseas callers (+61 3) 9415 4000
Managing your shareholding online:
To change your address, update your payment
instructions and view your investment portfolio
including transactions please visit
www.computershare.co.nz/investorcentre
General enquiries can be directed to:
enquiry@computershare.co.nz
Please assist our registrar by quoting your CSN or
shareholder number
www.newtalisman.co.nz
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.