Table of Contents Table of Contents
Previous Page  45 / 112 Next Page
Show Menu
Previous Page 45 / 112 Next Page
Page Background





Notes to the

financial statements

for the year ended 30 September 2015

1. Company information

Axiom Mining Limited (the ‘Company’) is a Company

incorporated in Hong Kong.

Registered office: 2303-7 Dominion Centre, 43-59

Queen’s Road East, Hong Kong.

Principal place of business: Level 6, 15 Astor Terrace,

Spring Hill QLD 4000

The Company’s shares are listed on the Australian

Securities Exchange.

The Company and its subsidiaries (the ‘Group’) are

principally engaged in mineral exploration in Australia,

Solomon Islands and Vietnam.

2. Significant accounting policies

a. Statement of compliance

The consolidated financial statements and notes

represent those of Axiom Mining Limited and the

Controlled Entities (the ‘Consolidated Group’ or ‘Group’).

The separate financial statements of the parent entity,

Axiom Mining Limited, have not been prepared within this

financial report as permitted by the

Corporations Act 2001


The financial statements were authorised for issue on

21 December 2015.

These general purpose financial statements have been

prepared in accordance with the Corporations Act 2001,

Australian Accounting Standards and Interpretations of

the Australian Accounting Standards Board (‘AASB’) and

International Financial Reporting Standards as issued

by the International Accounting Standards Board. The

Group is a for-profit entity for financial reporting purposes

under Australian Accounting Standards. Material

accounting policies adopted in the preparation of these

financial statements are presented below and have been

consistently applied unless stated otherwise.

Except for cash flow information, the financial statements

have been prepared on an accrual basis and are based

on historical costs, modified, where applicable, by the

measurement at fair value of selected non-current assets,

financial assets and financial liabilities.

The AASB has issued certain new and revised AASB

Standards (‘AASBs’) that are first effective or available

for early adoption for the current accounting period

of the Group and of the Company. Note 2(x) provides

information on any changes in accounting policies

resulting from initial application of these developments

to the extent that they are relevant to the Group for the

current and prior accounting periods reflected in these

financial statements.

b. Basis of preparation of the financial statements

The financial statements have been prepared under

the historical cost basis except that property, plant and

equipment are stated at their revalued amount, being

the fair value at the date of revaluation as explained in

the accounting policy set out in Note 2(e). The financial

statements are presented in Australian dollars (‘AUD’),

which is also the functional currency of the Company.

The preparation of financial statements in conformity

with AASBs requires management to make judgements,

estimates and assumptions that affect the application

of policies and reported amounts of assets, liabilities,

income and expenses. The estimates and associated

assumptions are based on historical experience and

various other factors that are believed to be reasonable

under the circumstances, the results of which form the

basis of making the judgements about carrying values

of assets and liabilities that are not readily apparent

from other sources. Actual results may differ from

these estimates.

Significant accounting estimates and assumptions

The estimates and underlying assumptions are reviewed

on an ongoing basis. Revisions to accounting estimates

are recognised in the period in which the estimate is

revised if the revision affects only that period, or in the

period of the revision and future periods if the revision

affects both current and future periods. Judgements

made by management in the application of AASBs that

have significant effect on the financial statements and

estimates with a significant risk of material adjustment in

the next year are disclosed in Note 24.

Going concern

The Group has recorded a net loss of $12,460K (2014:

$15,880K), had net cash outflows from operations

of $8,494K (2014: $12,397K) for the year and has no

ongoing source of income. At 30 September 2015, the

Group had net assets of $5,342K (2014: $2,984K).

The financial report has been prepared on a going

concern basis that assumes the realisation of assets

and extinguishment of liabilities in the normal course

of business and at the amounts stated in the financial


The Directors believe the going concern basis is

appropriate for the following reasons:

at 30 September 2015, the Group had cash and cash

equivalents of $1,306K

on 4 November 2015 the Company announced

that it had entered into a convertible note facility

agreement for up to $15 million to project fund the

development of the Isabel Nickel Project through

a strategic partnership with experienced resource

venture capitalist and project incubator InCor Holdings

Plc (‘InCoR’). As part of the agreement, Axiom issued

one secured convertible note with a face value of

$5,000,000, convertible to a maximum issue of

13,513,514 fully paid ordinary shares based on a

conversion price of $0.37 per share

the ability to raise additional share capital by share

placements, options, convertible notes, or rights issue

the ability to farm out all or part of its exploration


the ability to sell particular exploration projects; and

the ability to renew pending exploration applications

based on previous experience.