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Notes to the

financial statements

for the year ended 30 September 2015


23. Subsequent events

Subsequent to the year end, 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


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


The note is for the period of 24 months with interest rate of

6% per annum payable in advance for the first 12 months

and thereafter quarterly in advance. Interest obligations

have been satisfied by the issuing shares at a fixed price

of $0.37. The facility is secured through the first ranking

charge over Axiom’s assets in Australia and Hong Kong.

At the Extraordinary General Meeting held on 15 October

2015, the shareholders approved the issue of the 150,000

Performance Rights to the newly-appointed director, Mr

Jeremy Gray.

Apart from the matters mentioned above, no other matters

or circumstances have arisen since 30 September 2015

that significantly affected or could significantly affect the

operations of the Consolidated Group in future years.

24. Significant accounting estimates and


Estimates and judgements used in preparing the

consolidated financial statements are continually evaluated

and are based on historical experience and other factors,

including expectations of future events that are believed

to be reasonable under the circumstances. The Group

makes estimates and assumptions concerning the future.

The resulting accounting estimates may not equal the

related actual results. The estimates and assumptions that

have a significant effect on the carrying amounts of assets

and liabilities are discussed below.

a. Impairment of non-financial assets

The Group tests at least annually whether other assets

that have indefinite useful lives have suffered any


Other assets are reviewed for impairment whenever events

or changes in circumstances indicate that the carrying

amount of the asset exceeds its recoverable amount. The

recoverable amount of an asset of a cash-generating unit

has been determined based on value-in-use calculations.

These calculations require the use of estimates.

The value-in-use calculations primarily use cash flow

projections based on five-year financial budgets approved

by management and estimated terminal values at the end

of the five-year period. There are a number of assumptions

and estimates involved for the presentation of cash flow

projections for the period covered by the approved budget

and the estimated terminal value. Key assumptions include

the expected growth in revenue and operating margin,

effective tax rates, growth rates and selection of discount

rates, to reflect the risks involved and the earnings multiple

that can be realised for the estimated terminal value.

Management prepared the financial budgets reflecting

actual and prior year performance and market

development expectations. Judgement is required

to determine key assumptions adopted in the cash

flow projections and changes to key assumptions can

significantly affect these cash flow projections and

therefore the results of the impairment reviews.

b. Useful lives of property, plant and equipment

The Directors determine the estimated useful lives and

residual values for its property, plant and equipment. The

Directors revise the depreciation charge when useful lives

are different from previous estimates. Obsolete or non-

strategic assets, which have been abandoned or sold,

shall be written-off or written-down.

c. Income tax

The Group is subject to income tax in a number of

jurisdictions. Significant judgement is required in

determining the provision for income tax for each entity in

the Group. There are certain transactions and calculations

for which the ultimate tax determination is uncertain during

the ordinary course of business. The Group recognises

liabilities for potential tax exposures based on estimates

of whether additional taxes will be due. Where the final tax

outcome of these matters is different from the amounts

that were initially recorded, such differences will impact

the income tax and deferred tax provisions in the year in

which such determination is made.