2010 - Perth Mint · 2010-11-29 · Australia’s bullion coin programme. The Australian Nugget bullion coin was launched in 1987, and was followed by many other successful bullion

gold corporation The trading name of Gold Corporation is The Perth Mint.

2010annual report

ContentsStatement of Compliance 1

The Year in Brief 2

Gold Corporation – More than a Century in Precious Metals 3

Mission Statement 4

Chairman’s Review 5

Review of Operations 7

Activities 13

Gold Refining 13

Precious Metal Investment Products 13

Commemorative and Numismatic Coins 14

Precious Metal Coin Blanks 14

Tourism 14

Group Structure 15

Corporate Governance 16

Corporate Directory 21

Group Directory 22

Statutory Reporting Requirements 23

Senior Management 26

Auditor General’s Opinion 27

Performance Indicators 30

Certification of Performance Indicators 33

Certification of Financial Statements 34

Financial Statements 35

Page 1

Statement of Compliance

15 September 2010

The Honourable Colin Barnett MEc MLA

Premier; Treasurer; Minister for State Development

24th Floor, Governor Stirling Tower

197 St Georges Terrace

PERTH WA 6000

Statement of Compliance

In accordance with the Financial Management Act 2006, we hereby submit for your

information and for presentation to the Parliament, the Annual Report of Gold

Corporation for the year ended 30 June 2010.

The Annual Report has been prepared in accordance with the provisions of the

Financial Management Act 2006.

R G BOWE

Chairman

M E HARBUZ

Executive Director

Page 2

The year in brief

Pre-tax profit of $18.7 million – the second best on record

Dividend of $16.0 million and tax equivalent of $8.0 million paid to the Government of Western Australia

Turnover increased to $5.7 billion, from $2.5 billion in the previous year as the refinery turnover was included from 30 march 2010

The value of client metal on deposit increased to $2.5 billion from $1.9 billion in the previous year

2.7 million coins, bars and medallions sold

Coin, bar and medallion sales added value to 10.13 tonnes of gold, 218.5 tonnes of silver and 9.86kg of platinum

Australian numismatic coins issued include:

– Coins commemorating the 200th anniversaries of the Postal Service and Lachlan Macquarie becoming the Governor of New South Wales

– Coins commemorating Australia’s participation in the Winter Olympics and the FIFA World Cup

– Australian Sea Life coins

Some 5.3 million precious metal blanks were supplied to other mints

The Gold refinery became a wholly owned business of Gold Corporation

77,000 people came to The Perth Mint’s visitor experience.

Page 3

Gold Corporation – MoRE tHAn A CEntURy in PRECioUS MEtAlS

Gold Corporation’s history started with the founding of

the Perth branch of Britain’s Royal Mint in 1899. At that

time, gold sovereigns and half sovereigns were used

throughout the British Empire as everyday circulating

coins and it was the Royal Mint’s responsibility to

supply them. Rather than shipping gold to London,

minting sovereigns and then distributing them back

to Britain’s colonies, the Royal Mint built a number of

branch mints throughout the Empire in places where

gold was found. The Perth Mint was one of these

– built to refine gold mined in Western Australia and

turn it into sovereigns.

When sovereigns were withdrawn from

circulation in 1931, the Mint turned its

skills to the production of base metal

coins, although it still continued to refine

gold. It remained under British ownership

until 1970, when control passed to the

Government of Western Australia.

Gold Corporation was created by the

Gold Corporation Act 1987 to take over

the operations of the Mint and launch

Australia’s bullion coin programme.

The Australian Nugget bullion coin was

launched in 1987, and was followed

by many other successful bullion coin

programmes and numismatic and

commemorative coins.

The Mint’s refining activities eventually

outgrew the old premises in the city of

Perth and a new refinery was built near

Perth’s international airport. This facility

commenced operation in 1990.

Gold Corporation has two wholly owned

subsidiaries – the Western Australian

Mint and GoldCorp Australia.

Page 4

Mission Statement

Gold Corporation and its subsidiaries, trading as The Perth

Mint, supply precious metal related products and services,

including:

Refining of gold and silver and producing London Good

Delivery bars;

Value added cast bars, minted bars and Australian legal

tender bullion coins which promote the ownership of

precious metals;

Precious metal depository products which enable investors to

own precious metals without having to deal with the security,

insurance and other issues associated with taking physical

possession of precious metals;

Proof, numismatic and commemorative coins which are legal

tender of Australia and other countries;

Storage and safekeeping of precious metals, and

Coin blanks and other precious metal products.

It also operates a tourist attraction based on the themes of gold,

coins and their history, and offers assaying and other services to

the gold industry.

Gold Corporation commits to:

Supplying products, services and experiences which delight

customers and users

Promoting the history and heritage of Australia locally and

internationally through its coins

Preserving its heritage assets and history for the benefit of

the community

Providing fulfilment, development, security and fair reward to

its employees

Generating an acceptable financial return to its shareholder,

the Government of Western Australia, and

Paying a fair royalty to Australian Treasury on Australian legal

tender coins issued

It is committed to high ethical standards, respect for people and

the environment, and enlightened business practices.

Chairman’s ReviewRoSS BowE

As the worst of the financial crisis passed

and the world economy seemed to be

set for a return to gradual but modest

growth, stock markets started recovering

and confidence in traditional investment

assets returned. While the flight to the

perceived safety of precious metals

subsided somewhat, it was still evident.

The factory worked on two or three shift

operation for much of the year to mint the

large quantities of bullion coins demanded

by the market. Our factory modernisation

programme which has been progressively

implemented over the past few years,

and still continues, once again proved

its worth as high production levels were

achieved together with better efficiencies.

Sales of numismatic or collector coins

increased once more, a credit to the

design studio for producing beautiful

designs, the factory for minting high

quality products and the marketing team

for their worldwide marketing efforts.

Highlights of the year’s numismatic

programme were:

Coins to commemorate the 200th

anniversaries of the Postal Service and

Lachlan Macquarie becoming Governor

of New South Wales

Coins to commemorate Australia’s

participation in the Vancouver Winter

Olympics and the FIFA World Cup

South Africa TM

Australian Sea Life coins

The depository business continued to

increase with the value of clients’ precious

metals on deposit reaching a record $2.5

billion. Despite the fact that some clients

took advantage of the higher prices and

sold precious metal holdings at a profit,

purchases of metal exceeded sales.

I am pleased to report that Gold Corporation has

enjoyed another successful year, delivering a financial

performance that is the second best in its history,

second only to the previous year’s outstanding result.

The frenetic demand for precious metals which was

evident in 2008 / 2009 as a result of the global financial

crisis subsided somewhat in 2009 / 2010, but still

remained at historically high levels. Gold Corporation

was able to take advantage of this high demand -

because of our investment decisions over the past few

years to increase operational capacity and development

capabilities - and made a profit before tax of $18.7 million,

compared to $38 million in 2008 / 2009.

Page 5

Page 6Page 6

I would like to welcome back the employees of the refinery as

this business returned to 100% ownership by Gold Corporation

at the end of March 2010. As a result, the refinery operated as

a wholly owned business of Gold Corporation for the last three

months of the financial year. I also take the opportunity to

thank our former partners in the refinery business; subsidiaries

of Newmont and Johnson Matthey, for a successful partnership

in the gold refining business which lasted for eight years.

Newmont’s gold mines in the region continue to be valued

customers of the refinery.

The decline in the number of tourists visiting Western Australia

continues to be a concern, yet during the year 77,000 people

visited the exhibition at The Perth Mint, which includes the

famous gold pour. This number was similar to the previous year.

Refurbishment of the Mint’s retail outlet commenced in April

and the much improved and expanded facility will be opening

shortly. The project will continue with the refurbishment of the

exhibition area in due course.

Gold Corporation’s varied activities worldwide would

not be possible without its many business partners – its

Australian and international agents, distributors, dealers

and counterparties. Many of these relationships are long

standing. I would like to acknowledge the contribution of all

these business partners to the Corporation’s success and look

forward to the relationships continuing.

While the global financial crisis, which caused such a boom in

the demand for precious metals, seems to be over there are still

concerns about the world economy. Economists’ predictions

range from the optimistic to the bearish; from the sanguine to

the fearful. This very uncertainty, coupled with high sovereign

debt levels and trade imbalances that persist, will continue to

promote interest in precious metals as investment, insurance

or wealth preserving assets. For the foreseeable future high

demand is expected for precious metal products and we will

continue to seek ways of increasing and improving our offerings

to take advantage of the situation. The medium term future

looks particularly positive from a marketing perspective.

I would like to thank the Minister responsible for Gold

Corporation, the Honourable Colin Barnett MEc MLA, Premier;

Treasurer; Minister for State Development, for his interest

and support. I also thank my fellow Board members for their

diligent service and acknowledge the additional work done

by those serving on Board committees. Thanks are due to Mr

Don Mackay-Coghill who left the Board in August after many

years of service. He was the founding Chief Executive Officer of

Gold Corporation in 1988 and was on the Board until last year.

I would also like to thank Mr Chris Payne who left the Board

during the year and I would like to welcome Mr John Murphy as

the new Treasury representative on the Board.

Lastly, I would like to thank the management and staff of

Gold Corporation for again rising to the challenges that arose

and producing a very pleasing result. In particular I want

to acknowledge the efforts of our Chief Executive Officer

Ed Harbuz and our Chief Financial Officer Richard Hayes in

guiding the organisation through a particularly hectic and

profitable year and in successfully achieving the reintegration of

the refinery operation.

R G BOWE

Chairman

Page 7

Review of Operations M. EDwARD HARBUZ, CHiEF EXECUtiVE oFFiCER

Financial Summary

This was another busy year for Gold Corporation.

The world economy showed promising, if hesitant signs

of recovery from the global financial crisis. However

demand for precious metals remained high as the flight

to safety by investors continued. Activity was below the

previous year’s frenetic levels but demand for coins and

small bars was still high, and customer metal held in

depository continued to increase.

The profit before tax was the second best

on record, $18.7 million, compared to

the previous year’s $38 million. Turnover

increased to $5.7 billion compared to

$2.5 billion in the previous financial year.

This increase is partially due to the fact

that the gold refinery’s turnover during

the last quarter was included as the

refinery business became wholly owned

by Gold Corporation on 29 March 2010.

The partnership between subsidiaries

of Gold Corporation, Newmont

Australia Ltd and Johnson Matthey plc

was dissolved on that date and Gold

Corporation assumed full ownership of

the refinery.

Payments to the Government of Western Australia in 2009 / 2010 financial year included an income tax equivalent of

$8.0 million and a dividend of $16.0 million. The agreement which enables Gold Corporation to issue Australian legal tender coins was renewed for a further ten year period commencing 1 July 2010 and, under this agreement, the royalty payable to Australian Treasury for 2009 / 2010 will be $3.7 million.

This year’s result would not have been possible without the extensive investment in facilities and the development of the organisation’s capabilities over the last few years. This continued during the year with capital expenditure of $13.8 million, including assets acquired on assuming full ownership of the refinery. This was funded internally without resorting to

increased borrowings.

Page 8

Business Activities

Coins

Gold Corporation, operator of The Perth Mint, is the sole

producer of Australia’s legal tender gold and silver bullion

coins, which are distributed internationally and have a

significant worldwide market share. The historic Mint also

produces and markets Australian legal tender numismatic or

commemorative coins and legal tender coins which are of other

countries. All Australian legal tender coins are minted under an

agreement with Australian Treasury, which receives a royalty or

seigniorage on each coin sold.

Some 2.7 million coins, minted bars and medallions were sold

during 2009 / 2010, the same as in the previous year. The sale

of these products resulted in adding value to 10.13 tonnes

of gold, 218.5 tonnes of silver and 9.86 kg of platinum. The

previous year’s figures were 13.5 tonnes of gold, 229 tonnes

of silver and 32 kg of platinum. More than 90% of the revenue

earned from the sale of these products was from exports.

Interest in gold and silver bullion coins and bars rose

significantly in the 2008 / 2009 year as a result of the global

financial crisis; in fact there was actually a shortage of these

products for an extended period. This boom ended just before

the 2009 / 2010 financial year but interest in bullion remained

significantly above pre-crisis levels. The market remained

volatile; for example in May 2010 there was another spike in

demand as events relating to indebted Euro zone countries

unfolded. All Perth Mint bullion products sold well and the

complete mintages of the 2010 silver 1oz Kookaburra bullion

coin (300,000) and the 2010 gold 1oz Lunar “Year of the Tiger”

coins (30,000) were sold out. Significantly increased sales of

bullion products in the very large United States market resulted

from increased marketing efforts in this area.

There were signs that the collector coin market was affected by

economic uncertainties but international sales of these products

increased as new geographical markets were penetrated.

Further website development was done during the year and

the very pleasing growth in e-commerce continued both in

Australia and internationally. More than 100 different collector

or numismatic coins or sets were issued during the year. Full

mintages of many of these were sold out – a growing trend with

Perth Mint numismatic coins.

The Australian legal tender numismatic coins issued included:

200 years of Postal Service in Australia

200th anniversary of Lachlan Macquarie becoming Governor

of New South Wales

Shanghai World Expo

Treasures of Australia – Gold

FIFA World Cup South Africa TM

Vancouver Winter Olympics

Continuation of Discover Australia – The Dreaming Series

Australian Sea Life

In the factory the blank production and minting operations

benefited from the ongoing investment and training programme

to increase production capacity, improve quality standards,

increase flexibility, reduce waste and improve efficiencies.

This programme continues and, as part of it, a new 1,000 tonne

automatic press for the minting of large precious metal coins

was ordered during the year. It will be installed early in 2011.

The quality management system was further enhanced and

the quality certification (ISO 9001.2001) was maintained.

The AS/NZS4801.2001 accreditation for health and safety

management was also maintained.

Page 9

Precious Metal Coin Blanks

The Perth Mint produces high quality precious metal blanks for

its own use and is a valued supplier of such blanks to a number

of other mints throughout the world. The ISO 9001.2001 quality

certification plays an important role in assuring customers of

the quality and specifications of coin blanks supplied.

The factory enhancement programme extends to blank

manufacturing as well. An additional silver continuous caster

and other pieces of new equipment were commissioned during

the year; increasing both production capacity and efficiencies.

A total of 8.7 million precious metal blanks was produced,

compared to 7.2 million in the previous year.

Perth Mint Visitor Experience

Although the number of visitors to Perth is still depressed due to

world economic conditions, it was gratifying that the numbers

did not decline further during the year. The number of visitors

to the exhibition, which incorporates the spectacular gold pour

in the historic melt house as well as displays of precious metal

coins, bars and nuggets, was almost unchanged at 76,984. Sales

of bullion coins in the shop continued to be buoyant and sales of

numismatic coins as well as Australian pearls, diamonds, opals

and jewellery were pleasing.

The refurbishment of the shop is in progress and the new

facility, the design of which combines respectful use and

restoration of an important heritage space, with contemporary

practice, will be officially opened during November 2010.

Design work on refurbishing the exhibition has commenced.

Perth Mint Depository

Investment demand brought on by the continuing global

financial crisis and sovereign debt issues drove the gold price

to record levels during the financial year. Price volatility kept

investor interest at a high level. Many clients sold metal to

take profits but inflows of metal were higher resulting in a

net increase in metal held. At the year end, there were 16,700

clients from 105 countries entrusting precious metals to the

value of over $2.5 billion to Gold Corporation. Allocated

metal is stored in vaults, while some of the unallocated metal

belonging to investors is used to support the metal requirements

of the minting and refining operations of The Perth Mint.

Perth Mint Depository’s three products: Perth Mint Depository

Services, Perth Mint Certificate Program and the Australian

Stock Exchange listed Perth Mint Gold all performed strongly.

Gold Refinery

The gold refinery, wholly owned by Gold Corporation as from

29 March 2010, is located at Perth Airport and is Australia’s only

major gold and silver refiner. Australia was the world’s second

largest producer of gold during the 2009 calendar year and

will probably maintain this status in 2010. The Perth refinery

refined almost all of Australia’s gold during the financial year

as well as gold produced in New Zealand, Papua New Guinea,

Fiji, Thailand and Malaysia. A significant quantity of gold

jewellery scrap, mainly from a number of Asian countries, was

also refined. The quantity of gold refined in 2009 / 2010 would

make the refinery one of the largest in the world. It shipped

its gold and silver ingots and bullion in other forms to markets

around the world as well as supplying the Mint’s own needs.

westmill - Kaltails

Gold Corporation’s Westmill division held a 10% interest in the

Kaltails gold tailings retreatment project in Kalgoorlie, with

the managing partner Newmont Australia Limited owning the

remaining share. For some time, activity was limited to ongoing

rehabilitation and maintenance of the site. During the financial

year, Kaltails was sold to Kalgoorlie Consolidated Gold Mines

and Gold Corporation has no further involvement or obligations

related to the venture.

westmill - State Batteries

A number of State Batteries (Government owned minerals

processing facilities) were vested in Gold Corporation in

1986 but these have ceased operating. Westmill has inherited

responsibility for them. Some of the reserves have been leased

out to private operators for various purposes and the others are

unused. Twenty four of the sites have been classified as “Possibly

Contaminated – Investigation Required” in terms of Section 13

of the Contaminated Sites Act 2003. The investigations and any

remediations are being carried out on a priority basis.

The Northampton Battery reserve was identified as a priority

site requiring remediation because of lead contamination.

During the 2009 / 2010 year, the lead tailings on this reserve

were excavated and placed in a sealed containment cell, at

a cost of $1.5 million. The funds for this were provided by

the Department of Environment and Conservation from the

Contaminated Sites Management Account. Further assessment

work is to be done on the site.

Employees

Page 10

The total number of permanent staff in Gold Corporation’s

existing operations as at the beginning of the year increased

from 232 to 233. Of these, 228 were full-time and five part-

time. On 29 March 2010 the gold refinery became part of Gold

Corporation and, at 30 June 2010, the refinery’s 83 permanent

employees raised Gold Corporation’s number of permanent

employees to 316. The employees were assigned to the various

business entities as shown below:

30 June 2010 30 June 2009

Gold Corporation 41 42

Western Australian Mint 140 136

GoldCorp Australia 52 54

Total – Operations Existing as at 30 June 2009

233 232

Refinery 83

Total With Refinery 316

In the original operations, there were 162 salaried employees

and 71 award staff members employed on 30 June 2010. This

workforce consisted of 48% women (up from 46% in 2009). Of

the Tier 2 managers (reporting to the CEO) 42.9% were women

and of the Tier 3 employees 31.16% were women. Staff turnover

dropped from 10% to 9%. The average age of employees was

44.7 years and the average length of service was 6.9 years.

In the combined operations the workforce consisted of 41%

women as at 30 June 2010. Of the Tier 2 managers 33.3% were

women and of the Tier 3 employees 30.8% were women.

CoMPlAintS PoliCy AnD CUStoMER SERViCE CHARtER

Gold Corporation recognises the importance of delighting

its customers. As a public statement of its commitment to

service and complaints handling, the Corporation’s Complaints

Policy and Customer Service Charter embodies the following

elements:

A documented and whole-of-organisation commitment to the

efficient and fair resolution of complaints.

Fairness to the complainant.

Adequate staff resources, with a high level of delegated

authority.

Speedy and courteous responses.

No charges for the handling of complaints.

A formal system to determine causes and implement

remedies.

Systematic recording of complaints and their outcomes.

Regular reviews of the quality management and complaints

review process.

In the coin business, a total of 34,344 orders were processed

and 36 complaints were received, down from 79 the previous

year. Most of these were related to coins or packaging damaged

in transit. Depository processed 15,800 orders and there were

two complaints.

Page 11

industry and Community Participation

As part of its functions under the Gold Corporation Act 1987,

the Corporation is mandated to encourage interest in precious

metals and to support the Australian gold industry. Its Mission

Statement also requires it to promote the history and heritage of

Australia through its coins, and preserve its heritage assets and

history for the benefit of the community.

The Perth Mint involves itself in the local tourism industry

and business community through its memberships of Perth

Convention Bureau, the Tourism Council of Western Australia,

Tourism Australia, Tourism WA Network, Association of

Perth Attractions, the Perth Regional Tourism Association

(Experience Perth), the Australian Tourism Export Council,

and the International Business Council.

During the year, The Perth Mint participated in the Australasian

Numismatic Dealers’ Association Coin, Banknote and Stamp

Shows in Sydney, Melbourne, Brisbane, the Gold Coast and

Perth. It also supported other initiatives by local industry

associations. These activities included the Australian Gold

Conference, the Jewellers’ and Metalsmiths’ Group Conference,

and the annual awards programme of the Tourism Council of

Western Australia.

Internationally, The Perth Mint took part in the European World

Money Fair in Berlin; the American Numismatic Association’s

World’s Fair of Money in Los Angeles; the Beijing International

Stamp and Coin Exposition in China; the Tokyo International

Coin Convention in Japan and the Coin Constellation

Conference in St Petersburg, Russia. From May 2010, The Perth

Mint exhibited a suite of Australian legal tender pure gold and

silver coins in the Australian Pavilion at the Shanghai World

Expo, China.

Through sponsorships and donations, The Perth Mint assisted

the fundraising efforts of organisations which benefited 71 local

charities and 129 schools, clubs and local interest groups during

the year.

In support of Western Australia’s performance arts, The

Perth Mint maintained its sponsorship of the West Australian

Symphony Orchestra’s Private Giving Program (formerly the

Patrons’ Program) for the sixth consecutive year. During the

year, the Mint was a seasonal sponsor of the West Australian

Opera and the Western Australian Academy of Performing Arts.

It also produced the official commemorative medallions for

the XXII Hyundai Hopman Cup, a major international tennis

tournament hosted in Perth.

Page 12

Closing Comments

This was another exciting year, with

results being the second best in Gold

Corporation’s history. Interest in

precious metals remained strong,

resulting in at times vigorous demand

for depository products, coins and

minted bars from the mint and cast

bars from the refinery. With the

refinery again becoming part of Gold

Corporation in the last quarter, the

advantage of being able to offer a

full range of precious metal products

became evident. This advantage will

be optimised further in the future.

The performance of numismatic

products and the visitor attraction

held up surprisingly well given their

dependence on discretionary spending.

Once more, the benefits of a worldwide

spread of marketing efforts were

realised. The Perth Mint’s profile

and reputation both in Australia and

internationally continued to open

doors and create opportunities.

I would once again like to thank the

team – the management and staff of

Gold Corporation – for their effort and

commitment. This was a less frenetic

year than the previous one but there

were some challenging times. The team

always rose to the challenges. Special

thanks are also due to the Chairman

and the Board for their support,

guidance and encouragement.

The new financial year has started well,

although there is much uncertainty

in world markets. What is evident is

that precious metals continue to be of

great interest, although actual sales

are volatile – the inherent investment

demand seems to be there but it takes

negative events in, or statements about,

the world economy to spark flurries of

activity. The Perth Mint is in a better

position than ever to take advantage

of these opportunities as they arise in its

various markets and 2010 / 2011 should

be another successful year.

M E HARBUZ

Chief Executive Officer

Page 13

Activities

Gold Refining

The refinery located at Perth airport is Australia’s only major gold and silver refiner and refines virtually all of Australia’s gold production as well as gold produced in surrounding countries. It also refines jewellery scrap, mainly from Asian countries.

Gold and silver bars, as well as bullion in other forms are shipped to customers around the world and to the bullion

market in London.

Precious Metal investment Products

Gold is regarded by investors worldwide

as a trusted asset and convenient method

of diversifying an investment portfolio.

Gold Corporation offers the following

products to investors:

Bullion Coins and Bars

Gold Corporation, the operator of The Perth Mint, is the producer of Australia’s official investment or bullion coins.

Each coin is issued as legal tender under the Australian Currency Act 1965.

The appeal of bullion coins struck by The Perth Mint is enhanced by superb artistry portraying iconic animals:

99.99% pure gold Australian Kangaroo coins

99.9% pure silver Australian Kookaburra coins

99.9% pure silver Australian Koala coins

99.99% pure gold and 99.9% pure silver

Australian Lunar coins

Together with a popular range of minted

bullion bars and refinery cast bars, The

Perth Mint’s bullion coins are distributed

through an international network of

authorised agents, banks and dealers.


Perth Mint Depository provides investors

with the opportunity of investing in

precious metals without having to deal

with the issues related to taking physical

possession. It has three products: Perth

Mint Depository Services, Perth Mint

Certificate Program and the Australian

Stock Exchange listed product, Perth

Mint Gold.

Perth Mint Depository Services

Perth Mint Depository Services (PMDS)

offers a range of precious metal

purchase, storage and trading facilities

on internationally competitive terms to

both national and international investors.

The service is promoted principally via

the internet (http://www.perthmint.

com.au/depositoryservices.aspx).

The minimum investment is US$50,000

for international clients and AUD$50,000

for Australian residents.

Perth Mint Certificate Program

The Perth Mint Certificate Program

(PMCP) offers precious metal investments

via an international network of approved

dealers. With this product, investors

receive a certificate confirming their

acquisition of precious metal stored at

The Perth Mint. The minimum investment

is US$10,000 for overseas investors and

AUD$5,000 for Australian investors.

Page 14

Perth Mint Gold

For investors who prefer the convenience of trading on the

Australian Stock Exchange, Perth Mint Gold (ASX code:

ZAUWBA) is structured as a warrant and enables both large and

small investors to have an exposure to gold in their portfolios.

Commemorative and numismatic Coins

The Perth Mint designs, manufactures and markets precious

metal numismatic coins that are distinguished by their:

Collector and commemorative design themes

Mirror-like proof quality finishes

Limited mintages

Numbered Certificates of Authenticity

Luxury presentation packaging

Marking a range of popular anniversaries, people and events,

numismatic coins also celebrate the uniqueness of the

Australian continent and the heritage, history and culture of its

people. These coins are not only sold successfully in Australia,

but also throughout the world, using the Mint’s established

international marketing network.

In addition to the traditional numismatists, there are increasing

numbers of collectors and gift buyers interested in unusual

and innovative coins. As part of its strategy to grow this sector

of the numismatic market, The Perth Mint has developed a

reputation for innovative coin treatments and pioneering coin

manufacturing techniques.

As a result, the Mint has made popular coins with unusual

shapes, coloured designs, moving images, selective 24-carat

gilding and integral lockets containing free-moving objects.

The majority of Perth Mint numismatic releases are issued

as Australian legal tender. However, the Mint also produces

collector coins issued as legal tender of Tuvalu, the Cook Islands

and other countries.

Precious Metal Coin Blanks

Gold Corporation also manufactures precious metal coin blanks

for other mints. With world-class manufacturing technology

and unrivalled expertise in all areas of blank production, it can

create gold, silver, platinum and palladium blanks in an almost

limitless number of shapes, weights and sizes.

tourism

The Perth Mint is one of Western Australia’s most popular

tourist destinations. A winner of many tourism awards, it offers

a unique and exciting visitor experience. Among the many

highlights of a guided tour of The Perth Mint are the spectacular

gold pouring demonstration, the opportunity to lift a gold bar,

and stunning displays of gold in its many forms.

Welcoming more than 70,000 international, interstate and local

visitors annually, including many educational groups, The Perth

Mint also provides an important glimpse into the history of gold

production and precious metal minting in Western Australia

since the late nineteenth century.

An elegantly appointed retail store in which visitors can acquire

coins, nuggets, jewellery and souvenirs is an important and

popular element of The Perth Mint visitor experience.

Page 15

Group Structure

Government of western Australia

Gold Corporation

GoldCorp Australia western Australian Mint

the Perth Mint westmill Perth Mint Depository

Retail tourism

Exhibition

Precious metal blank

manufacture

Manufacturing and marketing of investment

and numismatic coins, other

minted items and related products

Gold and silver refining, manufacture

and marketing of value-added

bullion bars

Precious metal linked investment

products

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Corporate Governance

Board of Directors

The Board of Directors is the governing body of Gold

Corporation. The Gold Corporation Act 1987 empowers the

Board to determine policies for the Corporation and its

subsidiaries, and requires the Board to:

promote and develop markets for gold and gold products in

Australia and elsewhere;

develop and expand the Corporation’s business for the benefit

and to the greatest advantage of the people of Australia;

operate in accordance with prudent commercial principles;

and

strive to earn a commercial rate of return on its capital.

The Board’s authority is limited by the provisions in the Act

and by Ministerial direction. The Board acknowledges its

accountability to the Corporation’s only shareholder, the

Government of Western Australia.

The Board is committed to sound corporate governance

principles, high standards of legislative compliance, and

appropriate financial and ethical behaviour. The Board regards

directorial and managerial conduct seriously and as an integral

part of sound governance practices. In accordance with that,

the Board has committed itself to comply, wherever applicable,

with the spirit and letter of the Australian Institute of Company

Directors Code of Conduct and Guidelines. Additionally,

Directors can seek independent professional advice on Board

matters at the Corporation’s expense, with the approval of the

Chairman. No such advice was sought during the year.

Membership

Directors are appointed by the Governor of Western Australia

on the nomination of the Minister and approval by Cabinet.

Mr Don Mackay-Coghill retired as a director on 21 August 2009.

Mr John Murphy replaced Mr Chris Payne as the representative

of the Under Treasurer on 2 March 2010. At year-end the Gold

Corporation Board consisted of six non-executive Directors and

two executive Directors.

Director Status Expiry of term

R G Bowe (Chair) Non-executive 30 June 2011

R B Bennett Non-executive 30 June 2011

R F Edwards Non-executive 30 June 2011

G M McMath Non-executive 30 June 2013

J W F Murphy Non-executive N/A, ex-officio

C S Wharton Non-executive 30 June 2013

M E Harbuz Executive 30 June 2012

R G Hayes Executive 30 June 2013

Page 16

Page 17

Director Biographies

R G BowE BEc

Ross Bowe is currently Chairman of

Racing and Wagering Western Australia.

From 1988 to 1994 Mr Bowe was Under

Treasurer of Western Australia and

Chairman of the Western Australian

Treasury Corporation.

RAy BEnnEtt MAiCD

Ray Bennett has had an extensive

background in finance and banking with

over 25 years experience in the banking

industry. Mr Bennett was the General

Manager Retail Banking for Challenge

Bank immediately prior to leaving the

banking industry.

Mr Bennett was subsequently appointed

Chief Executive Officer of the then

Western Australian Totalisator Agency

Board in 1995. He remained as Chief

Executive until the Totalisator Agency

Board was abolished in 2003, and

Racing and Wagering Western Australia

established to continue the operations

of the Totalisator Agency Board and take

control of the integrity and management

of the racing industry, including allocation

of funds across the three racing codes. Mr

Bennett was appointed Chief Executive of

the new organisation, a position he held

until his retirement in 2008.

Mr Bennett is a Commissioner with the

Western Australian Lotteries Commission

and is a member of a project committee

investigating development options for

Gloucester Park Raceway.

Ron EDwARDS BEc (wA), MEd (Hons) (Syd), EdD (wA)

Ron Edwards is Chairman of Seafood

Experience Australia, the promotion arm

of the Australian seafood industry. He

also is a founding member of the Graham

(Polly) Farmer Foundation committed to

providing opportunities for Indigenous

youth; he is a Council Member of the

Anglican Schools Commission; is a

Page 17

Front row (from left) Ray Bennett, Ed Harbuz, Ross Bowe and Gaye McMath Back row (from left) Chris Wharton, Richard Hayes, Ron Edwards and John Murphy

Page 18

member of the Australian Governments Social Inclusion Board

and chairs The Third Sector Compact Working Group for the

Australian Government.

In 2006 Dr Edwards was awarded a Doctorate in Education

from the University of Western Australia; his topic was social

inclusion in the low fee Anglican School system in Western

Australia. Formerly Dr Edwards was the Member for Stirling

in the Federal Parliament and was Chairman of the Economics

Committee for the Federal Government. Recently he has worked

on European trade matters for the Australian seafood industry

and provides strategic advice on various projects.

GAyE McMAtH BCom MBA (Melb) FCPA, FAiCD

Gaye McMath is the Executive Director, Finance and

Resources at the University of Western Australia. Ms McMath

previously held the position of Pro Vice-Chancellor (Resource

Management) and Chief Financial Officer at Murdoch

University. Ms McMath was employed with BHP Billiton for 23

years in a wide range of senior financial, strategic planning and

commercial management positions in the steel, mining and

treasury divisions. She was a BHP Billiton nominated director

on various domestic and international Boards.

Ms McMath is currently a Director of the Silver Chain Nursing

Association, Western Australian Treasury Corporation and

Verve Energy.

JoHn MURPHy BCom, MCom

John Murphy represents the Western Australian Under

Treasurer, Mr Timothy Marney. He is currently the acting

Director of the Infrastructure Division in the Western

Australian Department of Treasury and Finance. In this role

Mr Murphy heads a team that provides advice to the

government on the major Government owned infrastructure

and commercial agencies.

Mr Murphy has worked within the State Public Service for over

twenty years in a variety of financial, economic and policy roles.

As well as working in the Department of Treasury and Finance

he has worked in agencies dealing with the resources and

transport sectors.

CHRiS wHARton

Chris Wharton is Chief Executive Officer of West Australian

Newspaper Holdings Ltd, a position he has held since

December 2008.

Prior to that, Mr Wharton was Managing Director of Channel

Seven Perth Pty Ltd for nine years. His newspaper career began

as a journalist and he worked in every area of newspaper

management in Sydney before being appointed Chief Executive

Officer of Perth’s Community Newspaper Group in 1995.

Mr Wharton is a director of the Chamber of Commerce and

Industry of Western Australia and a member of its Audit and

Risk Committee. He is on the Board of Trustees of the Telethon

Trust, a member of the WA Olympic Council, the Committee for

Perth, the Australian Business Arts Foundation and the State

Ministerial Council for Suicide Prevention.

M EDwARD HARBUZ, BSc (Eng), MBl

Ed Harbuz was appointed Chief Executive Officer of Gold

Corporation on 1 July 2003. Mr Harbuz was Managing Director

of the South African Mint Company Pty Ltd for almost seven

years until 2001 and Group Managing Director of Cullinan

Holdings Ltd, one of South Africa’s oldest industrial companies

prior to that. Preceding this, he was Chief Executive of Cullinan

Refractories and Managing Director of Steetley Refractories

in the United Kingdom. Mr Harbuz holds a Master of Business

Leadership from the University of South Africa and a BSc

(Engineering Electrical) from the University of Natal.

RiCHARD HAyES, BComm, MBA, CPA, ACiS

Richard Hayes was appointed as Chief Financial Officer of

Gold Corporation in March 2003. He was previously the Chief

Operating Officer and an executive Director of AGR Matthey

from October 2002 to March 2003 and prior to that he was

Director, Finance and Deputy Managing Director of AGR Joint

Venture from December 1998 to October 2002. Prior to that,

he was Chief Financial Officer and Company Secretary of

Golden West Refining Corporation Ltd, an ASX-listed company

controlled by N M Rothschild & Sons Ltd which, in December

1998, merged with Gold Corporation’s refining and jewellery

manufacturing business to become the AGR Joint Venture. Mr

Hayes came to Australia from Zimbabwe in 1987 and held a

number of financial management positions with Boral Ltd prior

to joining Golden West.

Meeting Attendance

There were six formal meetings of the Directors of Gold

Corporation during the year ended 30 June 2010 and a number

of informal meetings. The number of formal meetings attended

by each Director is indicated in the table below.

Directors’ Meeting Attendance

Director Attended Eligible

R G Bowe (Chair) 6 6

R B Bennett 5 6

R F Edwards 5 6

D Mackay-Coghill 1 1

G M McMath 5 6

J W F Murphy 1 1

C P Payne 3 5

C S Wharton 5 6

M E Harbuz 6 6

R G Hayes 5 6

Board Committees

The Board has established two committees, chaired by

independent non-executive Directors, to assist in the execution

of its duties. These are the Audit and Risk Management

Committee and the Remuneration and Allowances Committee.

Each committee member has only one vote and each resolution

must be passed by unanimous agreement. In the event that

agreement cannot be reached, the matter is referred to the

Board for resolution.

Audit and Risk Management Committee

The Committee advises the Board on the quality, integrity,

reliability and adequacy of the Corporation’s information,

accounting and control systems and the risk management process.

The Committee acts as a communications interface between the

Board and the Corporation’s internal and external auditors.

Membership of the Committee at year-end comprised Ms

McMath (Chair), Mr Bennett and Mr Bowe who was appointed

to replace Mr Mackay-Coghill.

Attendees at meetings of the Committee were Mr Hayes

(CFO), Mr David Koch (Manager, Corporate Governance and

Risk) who replaced Mr Brian Bartsh, and Mr Tony de Nobrega

(Group Accountant). Mr Harbuz (CEO) is an invitee. Attendees

and invitees do not have voting rights. The Audit and Risk

Management Committee met five times during the financial

year. Attendance at the meetings is indicated in the table below.

Audit and Risk Management Committee

Meeting Attendance

Attended Eligible

G M McMath (Chair) 5 5

R B Bennett 4 5

D Mackay-Coghill 1 1

R G Bowe 4 4

Remuneration and Allowances Committee

The Board of Directors delegates authority for determining

conditions of employment to the Remuneration and Allowances

Committee. The Committee’s responsibilities include

determining senior staff salary levels, alterations to core

conditions of employment and incentive bonus schemes.

The Remuneration and Allowances Committee consists of

Mr Bowe (Chair), Mr Bennett, who was appointed to replace

Mr Mackay-Coghill, and Mr Harbuz. Ms Susan Coutts-Wood,

Manager Human Resources, also attends the meetings by

invitation. The Committee met three times during the financial

year. Attendance at the meeting is indicated in the table below.

Remuneration and Allowances Committee Meeting Attendance

Attended Eligible

R G Bowe (Chair) 3 3

M E Harbuz 3 3

R B Bennett 3 3

Management Committee

Executive Management Committee

The Executive Management Committee consists of the senior

managers of Gold Corporation. It meets weekly and is chaired

by Mr Harbuz. Committee meetings provide a forum for senior

managers to keep the management team abreast of key issues in

their area and to discuss strategic issues facing the Corporation.

Risk Management

The Board actively monitors the Corporation’s risk management

system to ensure it is robust and fully integrated with the

Corporation’s business processes. Regular monthly and

quarterly reports are submitted to the Board on group financial

risk, credit risk, internal control matters, occupational safety

and health, and environmental issues.

Page 19

Page 20

Corruption Prevention

Fraud and corruption controls are an

integral component of Gold Corporation’s

Risk Management programme.

The organisation’s policies and practices

are reviewed regularly and are subject to

internal and external audit programmes.

Staff awareness sessions including new

staff inductions, are conducted. Gold

Corporation is obliged to report any

suspected or actual breaches to the

Corruption and Crime Commission.

Public interest Disclosure

Gold Corporation is committed to the

aims and objectives of the Public Interest

Disclosure Act 2003 (Whistleblower

Protection). It recognises the value and

importance of contributions of staff to

enhance administrative and management

practices and strongly supports

disclosures being made by staff as to

corrupt or other improper conduct.

All staff are aware of the public interest

disclosure process, and information on

the process plus the appropriate forms are

available on Gold Corporation’s intranet.

The Public Interest Disclosure Officers are

Mr David Koch and Mr Graham Segall.

No claims were submitted during the

2009 / 2010 period.

Public Sector Standards and Ethical Codes

Gold Corporation is aware of the

requirement to comply with Section

31(1) of the Public Sector Management

Act 1994.

During the current financial year, no

issues relating to non-compliance with

the public sector standards, or the WA

Code of Ethics were raised.

Page 21

Corporate Directory

Registered office

Street Address:

Perth Mint Buildings

310 Hay Street

East Perth, WA 6004

Australia

Tel: +61 8 9421 7222

Fax: +61 8 9221 7031

Email: [email protected]

Postal Address:

GPO Box M924

Perth, WA 6843

Australia

Website: www.perthmint.com.au

Minister

The Honourable Colin Barnett MEc MLA

Premier; Treasurer; Minister for State

Development

Statute

Gold Corporation was established under

the Gold Corporation Act 1987.

Directors

R G Bowe (Non-executive), Chairman

R B Bennett (Non-executive)

R F Edwards (Non-executive)

G M McMath (Non-executive)

J W F Murphy (Non-executive)

C S Wharton (Non-executive)

M E Harbuz (Executive, CEO)

R G Hayes (Executive, CFO)

Company Secretary

A P Melville

Bankers

Westpac Banking Corporation

Page 22

Group Directory

Gold CorporationStreet Address: Perth Mint Buildings, 310 Hay Street, East Perth, WA 6004, Australia

Tel: +61 8 9421 7222 Fax: +61 8 9221 7031

Postal Address: GPO Box M924, Perth, WA 6843, Australia

Email: [email protected] Website: www.perthmint.com.au

Contacts: M Edward Harbuz, Chief Executive Officer Bee Ng, Executive Assistant to the Chief Executive Officer

Refinery

Street Address: 131 Horrie Miller Drive, Perth Airport, WA 6105, Australia

Tel: +61 8 9479 9999 Fax: +61 8 9479 9909


Street Address: Perth Mint Buildings, 310 Hay Street, East Perth, WA 6004, Australia

Tel: +61 8 9421 7280 Fax: +61 8 9221 7074 Email: [email protected]

Contacts: Nigel Moffatt, Treasurer and Manager, Perth Mint Depository John Durham, Manager, Depository Services

western Australian Mint



Contact: Justin Kees, General Manager, Operations

the Perth Mint Shop



Contact: Cathy Anza, Manager, Visitor Experience

Goldcorp Australia the Perth Mint

Australia



Contact: Tina Kircher, Australian Wholesale Manager

the Americas

Tel: +1 514 519 2963 Email: [email protected]

Contact: Rosie Di Gregorio

Hong Kong

PMHK Ltd

Street Address: Room 1401, Jubilee Centre, 46 Gloucester Road Wanchai, Hong Kong

Tel: +852 2525 1130 Fax: +852 2810 6809 Email: [email protected]

Contact: Dominic Leung

Japan

K’dom Company Ltd

Street Address: 2-12-17 Hirakawacho, Chiyoda-ku Tokyo 102-0093, Japan


Contact: Koji Ishikawa

Europe

Street Address: Hildesheimerstr. 29 D-38159 Vechelde, Germany

Tel: +49 5302 930 426 Mobile: +49 160 991 41935 Email: [email protected]

Contact: Günther Wolters

China



Contact: Ron Currie, Sales and Marketing Director

CiS Countries



Contact: Andrey Ignatchenko, CIS Wholesale Manager

Middle East & india



Contact: Andrey Ignatchenko, CIS Wholesale Manager

Page 23

Statutory Reporting Requirements

Financial Estimates

The following financial estimates for 2010 / 2011 are based

on Gold Corporation’s budget and are included to satisfy the

requirements of the Treasurer’s Instruction 953.

$000

Total Revenue 12,244,839

Total Expenditure 12,224,818

Operating profit before income tax 20,021

Income tax expense 6,006

Operating profit after income tax 14,015

Dividend 10,511

Retained earnings 3,504

Records Management

Under the requirements of the State Records Act 2000, Gold

Corporation is obliged to report on its compliance with the Act

and communicate this in its annual report. In April 2007, the

organisation received an approved status from the State Records

Office. The efficiency and effectiveness of Gold Corporation’s

current record keeping plan has been reviewed and will be

revised by no later than 31 December 2010.

Gold Corporation also reports on its record keeping training

programme and its effectiveness and efficiency. Introductory

sessions are offered to all relevant new staff which includes

their individual responsibilities under the Act. Relevant staff

then receive one-on-one training in the use of the organisation’s

electronic document and records management system.

Additional training sessions are offered on an ad hoc basis or

when an assessment of the current programme determines the

need for changes to the programme. All inductions and training

programmes are reinforced by manuals, policies and procedures.

Gold Corporation

Gold Corporation was established by the Gold Corporation

Act 1987 and the Minister responsible for the Corporation is

The Honourable Colin Barnett MEc MLA; Premier; Treasurer;

Minister for State Development. Details of the Corporation’s

mission statement, functions, structure and management are

available elsewhere in this report.

The Corporation has no policy role in government, makes no

laws or regulations except in relation to the conduct of its own

affairs, and administers no schemes that confer benefits upon or

place imposts on the public.

Section 6 of the Act empowers the Corporation’s Board of

Directors “…to determine the policy of Gold Corporation, the Mint

and GoldCorp in relation to any matter and to control the affairs

of Gold Corporation and each of its subsidiaries…”.

The Corporation’s Board is committed to sound corporate

governance principles, high standards of legislative compliance

and ethical business practice.

Freedom of information Statement

The following Information Statement has been prepared

by Gold Corporation pursuant to Part 5 of the Freedom of

Information Act 1992 (WA) and guidelines issued by the Office

of the Information Commissioner on 13 May 1994.

The Corporation keeps documents and files relating to its

administration and business activities. A number of these

documents can be inspected only under the Freedom of

Information Act 1992 (WA) [FOI].

The following were published by The Perth Mint:

90 Golden Years (published in 1989); The Perth Mint

Numismatic Issues 1986 – 1996 (published in 1996); Striking

Gold: 100 Years of The Perth Mint (published in 1999); and A

Century of Minting Excellence – The History of Australian Coin

Production at The Perth Mint (published in 1999).

Documents which can be obtained free-of-charge include Perth

Mint brochures and catalogues, media statements, annual

reports and the Numismatic Post newsletters.

Foi Exemption

A document is exempt if its disclosure would reveal information

about:

gold or other precious metal received by Gold Corporation

from a person, or held by Gold Corporation on behalf of a

person, on current account, certificate of deposit or fixed

deposit; or

a transaction relating to gold or other precious metal received

or held by Gold Corporation

Page 24

Foi Procedures and Access

It is the aim of the Corporation to make information available

promptly and at the least possible cost, and whenever possible,

documents will be provided outside the FOI process.

If information is not routinely available, the Freedom of

Information Act 1992 (WA) provides the rights enabling the

public to apply for documents held by the Corporation.

Access applications have to (i) be in writing; (ii) provide

sufficient information to enable identification of the requested

documents; (iii) provide an Australian address to which notices

can be sent; and (iv) be lodged at the Corporation, together

with any application fee payable.

Applications will be acknowledged in writing and the applicant

will be notified of the decision within 45 days.

Applicants who are dissatisfied with a decision of the

Corporation may request an internal review.

Application should be made in writing within 30 days of

receiving the notice of decision. Applicants will be notified of

the outcome of the review within 15 days.

Two applications were lodged to Gold Corporation under

Freedom of Information (FOI) legislation in 2009 / 2010.

FOI inquiries or applications should be made to the FOI

Coordinator, Mr Graham Segall, Compliance and Risk Officer,

Gold Corporation, 310 Hay Street, East Perth, WA 6004,

telephone (08) 9421 7222, facsimile (08) 9221 7031, email

[email protected] Inquiries or applications

may also be directed to the Manager, Corporate Governance

and Risk, Mr David Koch, email [email protected]

occupational Health and Safety

Commitment and Compliance

Gold Corporation has in place occupational health and safety

systems to minimise health and safety risks to employees,

customers, contractors, the public and the environment. The

systems ensure that policies, procedures and work instructions

are in place to comply with legislation, standards and codes

of practice, and to take account of all information regarding

hazards and risks related to the Corporation’s operations.

Targets and objectives are set and performance in achieving

the targets is monitored and reviewed. It adheres to relevant

legislation related to health and safety.

Gold Corporation is committed to assisting injured workers to

return to work as soon as medically appropriate and adheres

to the requirements of the Workers’ Compensation and Injury

Management Act 1981 in the event of injury or illness.

Consultation

At the Mint site there is regular consultation with employees

and this is done through regular toolbox meetings and

monthly Occupational Health and Safety Committee meetings.

Employee representatives contribute significantly at these

meetings and are fully engaged in inspections, and equipment

and process changes.

At the refinery site, staff continued to participate actively

in the site safety observation system programme, with 683

observations conducted which contributed to site safety. Forty

one potential hazards were reported and all were dealt with

satisfactorily. The Occupational Health and Safety Committee

met on twelve occasions to review safety performance and

propose improvements.

Assessments

The Mint site is subject to the Occupational Health and Safety Act

1984. It also maintains certification to AS4801.2001 for its health

and safety management system. After an external audit on 28

and 29 April 2010 to check its compliance with its certification,

the auditor recommended that the certification should continue

and this was confirmed by the certification authority.

The refinery is regarded as a mine site and is regulated by

the Mines Safety and Inspection Act 1994. Five site visits were

conducted by Mines Inspectors during the period and no

improvement notices were issued. Two audits were conducted

by the District Mines Inspector. A score of 85% was achieved

for tagging and 94% for emergency preparedness. The site

is preparing to undergo audits for ISO4801 accreditation for

safety standards in the new financial year.

Page 25

Performance Against targets

oSH item target Mint Refinery

Number of fatalities

0 0 0

Lost Time Injury/Diseases (LTI/D)Incident Rate

0 OR 10% Improvement

1.7% (-26%

Improvement)

2.2% (>10%

Improvement)

Lost Time Injury Severity Rate

0 OR 10% Improvement

25% (0% Improvement)

0% (>10%

Improvement)

Percentage of injured workers returned to work within 28 weeks

Actual Percentage to be Reported

75% 100%

Percentage of managers trained in occupational safety health and injury management responsibilities

Target >50% 90% 100%

Section 175ZE of the Electoral Act 1907 (WA)

Section 175ZE of the Electoral Act 1907 (WA) requires a public agency to include a

statement in its annual report detailing all expenditure incurred by or on behalf of the

agency during the financial year in relation to advertising, market research, polling,

direct mail and media advertising:

1. Total expenditure for 2009 / 2010 was $ 247,892.

2. Expenditure was incurred in the following areas:

Advertising agencies $ 4,554 Linx Advertising $ 4,554

Market research organisations

Nil Nil Nil

Polling organisations Nil Nil Nil

Direct mail organisations $143,843 Lasermail $143,843

Media advertising organisations

$ 99,495 Marketforce Productions $ 99,495

Page 26

Senior ManagementAt 30 JUnE 2010

Gold Corporation

Chief Executive Officer M E Harbuz

Chief Financial Officer R G Hayes

Treasurer and Manager, Perth Mint Depository N P Moffatt

Project Manager, Refurbishment B M Suchecki

Manager, Corporate Governance and Risk D J Koch

Manager, Information Systems B R Shah

Manager, Human Resources S J Coutts-Wood

Goldcorp Australia

Sales and Marketing Director R M Currie

Manager, Visitor Experience C B Anza

western Australian Mint

General Manager, Operations J K Kees

Auditor General’s Opinion

Auditor General

Page 1 of 2

4th Floor Dumas House 2 Havelock Street West Perth 6005 Western Australia Tel: 08 9222 7500 Fax: 08 9322 5664

INDEPENDENT AUDIT OPINION

To the Parliament of Western Australia

GOLD CORPORATION FINANCIAL STATEMENTS AND KEY PERFORMANCE INDICATORS FOR THE YEAR ENDED 30 JUNE 2010

I have audited the accounts, financial statements, controls and key performance indicators of Gold Corporation and the consolidated entity.

The financial statements comprise the Statement of Financial Position as at 30 June 2010, and the Statement of Comprehensive Income, Statement of Changes in Equity and Cash Flows Statement of the Corporation and the consolidated entity for the year then ended, a summary of significant accounting policies and other explanatory Notes.

The key performance indicators consist of key indicators of effectiveness and efficiency.

Board’s Responsibility for the Financial Statements and Key Performance Indicators The Board is responsible for keeping proper accounts, and the preparation and fair presentation of the financial statements in accordance with Australian Accounting Standards and the Treasurer’s Instructions, and the key performance indicators. This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial statements and key performance indicators that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; making accounting estimates that are reasonable in the circumstances; and complying with the Financial Management Act 2006 and other relevant written law.

Summary of my Role As required by the Auditor General Act 2006, my responsibility is to express an opinion on the financial statements, controls and key performance indicators based on my audit. This was done by testing selected samples of the audit evidence. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Further information on my audit approach is provided in my audit practice statement. This document is available on the OAG website under “How We Audit”.

An audit does not guarantee that every amount and disclosure in the financial statements and key performance indicators is error free. The term “reasonable assurance” recognises that an audit does not examine all evidence and every transaction. However, my audit procedures should identify errors or omissions significant enough to adversely affect the decisions of users of the financial statements and key performance indicators.

Gold Corporation Financial Statements and Key Performance Indicators for the year ended 30 June 2010

Audit Opinion In my opinion,

(i) the financial statements are based on proper accounts and present fairly the financial position of Gold Corporation and the consolidated entity at 30 June 2010 and their financial performance and cash flows for the year ended on that date. They are in accordance with Australian Accounting Standards and the Treasurer’s Instructions;

(ii) the controls exercised by the Corporation provide reasonable assurance that the receipt, expenditure and investment of money, the acquisition and disposal of property, and the incurring of liabilities have been in accordance with legislative provisions; and

(iii) the key performance indicators of the Corporation are relevant and appropriate to help users assess the Corporation’s performance and fairly represent the indicated performance for the year ended 30 June 2010.

COLIN MURPHY AUDITOR GENERAL 16 September 2010

Page 2 of 2

Gold Corporation Financial Statements and Key Performance Indicators for the year ended 30 June 2010

Audit Opinion In my opinion,

(i) the financial statements are based on proper accounts and present fairly the financial position of Gold Corporation and the consolidated entity at 30 June 2010 and their financial performance and cash flows for the year ended on that date. They are in accordance with Australian Accounting Standards and the Treasurer’s Instructions;

(ii) the controls exercised by the Corporation provide reasonable assurance that the receipt, expenditure and investment of money, the acquisition and disposal of property, and the incurring of liabilities have been in accordance with legislative provisions; and

(iii) the key performance indicators of the Corporation are relevant and appropriate to help users assess the Corporation’s performance and fairly represent the indicated performance for the year ended 30 June 2010.

COLIN MURPHY AUDITOR GENERAL 16 September 2010

Page 2 of 2

Page 30

Performance Indicators

Gold Corporation is a body corporate

incorporated in terms of the Gold

Corporation Act 1987 of Western Australia.

The purpose of Gold Corporation is to:

develop, manufacture and market

Australian legal tender investment

coins and other products that promote

the ownership of physical precious

metal for investment purposes;

design, manufacture and market proof,

commemorative and numismatic coins

and related products;

make available investment products

that enable investors to have exposure

to the value of precious metals without

having to deal with the security and

other issues associated with the

keeping of the physical metal;

provide storage and safekeeping

facilities for precious metals;

be a major supplier of precious metal

blanks to the mints of the world;

operate a tourist attraction, based on

the themes of gold and minting, that is

important to Perth and Western Australia;

supply refining and other services to

the gold industry of Australia; and

preserve the historical Mint building

and artefacts that are part of the

heritage of Perth and Australia.

The Corporation is required to operate

in accordance with prudent commercial

principles, to generate revenue sufficient

to meet its expenditure and to derive a

profit that represents a commercial rate

of return on its capital.

Under the Treasurer’s Instructions 904

and 905, a statutory authority is required

to provide appropriate key performance

indicators in its Annual Report, namely:

relevant agency level government

desired outcome(s);

key effectiveness indicators which

provide information on the extent

of achievement of an agency level

government desired outcome; and

key efficiency indicators relating an

outcome to the level of resource input

required to deliver it.

Given the above Treasurer’s Instructions

and taking into account the Corporation’s

functions under the Gold Corporation Act

1987, its outcomes are:

1. Maximisation of the Value Added to, and income Derived from, Precious Metal Coins and other Products and Services

The Australian Kangaroo and Lunar

bullion gold coins and Kookaburra,

Koala and Lunar silver coins have a

noted world market share. The Perth

Mint’s various proof, numismatic

and commemorative coins made of

gold, silver and platinum are added

value precious metal products which

are also distributed worldwide. Coin

blanks are supplied in increasing

quantities to other mints in the world.

2. Preservation and Promotion of the Perth Mint’s Heritage Assets and History

The Perth Mint exhibition includes

gold pouring demonstrations, the

Industry Collection of Gold Bars

Worldwide, historical information on

the gold industry in Western Australia

and a comprehensive range of investor

and numismatic coins. It is an integral

part of The Perth Mint’s heritage and

a premier tourist destination.

Page 31

tHE RElAtionSHiP BEtwEEn GoVERnMEnt GoAlS AnD GolD CoRPoRAtion’S PERFoRMAnCE

The Goal most aligned to Gold Corporation’s business operations is:

FinAnCiAl AnD EConoMiC RESPonSiBility

RESPonSiBly MAnAGinG tHE StAtE’S FinAnCES tHRoUGH tHE EFFiCiEnt AnD EFFECtiVE DEliVERy oF

SERViCES, EnCoURAGinG EConoMiC ACtiVity AnD REDUCinG REGUlAtoRy BURDEnS on tHE PRiVAtE SECtoR.

EFFECtiVEnESS inDiCAtoRS 2005-2006

2006-2007

2007-2008

2008-2009

2009-2010 target

the key effectiveness indicators for outcome no. 1 are:

1. Global market share of Australian Nugget gold bullion coin (Note 1)

11.6% 13% 8% 7% 5% 8%

2. Coin programs - value added to gold, silver, platinum and Palladium: (Note 2)

a) Total premium income $22.8m $26.1m $27.6m $50.4m $44.2m $45.0m

b) Total premium income expressed as a percentage of precious metal value (Note 2)

17.3% 16.1% 12.7% 8.3% 8.2% 5.7%

3. Estimated proportion of Australian fine gold production refined by AGR Matthey (Note 3)

99.9% 99.9% 99.9% 99.9% 99.9% 99.9%

4. Return on equity (Note 4) 11.6% 14.1% 5.2% 39% 17.5% 28.8%

5. Dividends/income tax equivalent payable to the Western Australian Government (Note 5)

$3.0m $7.0m $3.2m $29.1m $15.4m $14.5m

the key effectiveness indicators for outcome no. 2 are:

6. a) Visitors to Perth Mint Exhibition (Note 6)

b) Visitors’ satisfaction level86,00099.9%

82,00099.9%

82,00099.9%

77,00099.9%

77,00099.9%

88,90099.9%

notes:

1. The figures are based on Gold Fields Mineral Services data for the previous calendar year. The decline in market share was due to other suppliers having larger stocks of coins for periods of high demand.

2. The calculation is the total premium income (amount of income received above metal cost) for all legal tender coins sales, which is expressed as a percentage of the value of the precious metal value of the coins. The effectiveness indicator includes all Australian legal tender coins, as well as coins produced for other countries. The decline in the dollar value reflects the decline in bullion coin sales from the previous, frenetic, year.

3. This calculation is based on the refinery’s records and an estimate of the total Australian fine gold production.

4. The percentages show Gold Corporation’s return on equity for each respective financial year, based on ordinary activities before income tax. This

performance measure is referred to in the Gold Corporation Act 1987. Provided the Corporation produces a profit, the Government of Western Australia receives the benefit of receipt of income tax equivalents and annual dividends from the Corporation.

5. Income tax equivalent, calculated as if the Corporation were a public company, is payable to the Government of Western Australia on profit from ordinary activities. Dividends are payable annually as a percentage of after-tax profit. These payments are forecast annually in Gold Corporation’s business plan, and included in the Financial Estimates in the Annual Report.

6. a) Total number of visitors (to nearest thousand) to the Exhibition annually, based on recorded daily visitor traffic.

b) Satisfaction levels are derived from random sampling of comments entered into the visitors’ book which is available in the foyer of The Perth Mint.

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SERViCES

1. Precious Metal Coins, other Products and Services

Bullion or investment coins represent

a significant market for gold and it

is important that The Perth Mint

increases demand by promoting its

well-known gold Kangaroo and its

other bullion coins.

It is also important that proof,

commemorative and numismatic coins

are promoted as these add significant

value to precious metal. Most of these

coins are exported.

Value is also added to precious metals

in the manufacture and supply of coin

blanks to other mints in the world.

2. Cultural Heritage Conservation

Gold Corporation continually

upgrades The Perth Mint heritage

building situated at 310 Hay

Street, and currently has a project

underway to renovate and conserve

the historically significant Shop and

Exhibition housed in the building on

its original grounds in East Perth.

It also preserves historical artefacts

and documents related to minting and

the gold industry in Western Australia.

EFFiCiEnCy inDiCAtoRS 2005-2006

2006-2007

2007-2008

2008-2009

2009-2010 target

the key efficiency indicators for service no. 1 are:

1. Trading profit as a proportion of sales revenue (Note 1) 2.9% 4.0% 3.0% 2.6% 3.1% 1.1%

2. Staff costs as a proportion of trading profit (Note 2) 53.6% 55% 52.4% 33.9% 35.3% 32%

the key efficiency indicator for service no. 2 is:

3. Average cost per Exhibition/visitor expressed as an index

133 143 167 176 154

notes:

1. The percentages show the proportion of Gold Corporation’s sales revenue represented by the trading profit (gross margin) for the respective financial year. The percentage rose in 2009 / 2010 due to a fall in the percentage of lower margin bullion products as the worst of the global financial crisis receded and bullion sales declined.

2 Staff costs include employee benefits on-costs and contract staff costs, expressed as a percentage of trading profit (gross margin). Staff costs are Gold Corporation’s major expenditure, after the cost of precious metals.

3 Average cost per Exhibition/visitor is derived by calculation of total costs of Exhibition divided by annual number of visitors expressed as an index, with the 2002 / 2003 year indexed as 100.

Page 33

Certification of Performance Indicators

Certification of Performance indicators

In our opinion, the Performance Indicators for Gold Corporation and its subsidiaries

contained in this report are based on proper records, are relevant and appropriate for

assisting users to assess the performance of Gold Corporation and its subsidiaries, and

fairly represent the performance of the Group for the year ended 30 June 2010.

15 September 2010

R G BOWE

Chairman

M E HARBUZ

Executive Director

Page 34

Certification of Financial Statements

Certification of Financial Statements

The accompanying financial statements of Gold Corporation and the accompanying

consolidated financial statements have been prepared in compliance with the

provisions of the Financial Management Act 2006 from proper accounts and records

to present fairly the financial transactions for the year ended 30 June 2010, and the

financial position as at 30 June 2010.

At the date of signing, we are not aware of any circumstances which would render the

particulars included in these financial statements misleading or inaccurate.

15 September 2010

R G BOWE

Chairman

M E HARBUZ

Executive Director

R G HAyES

Chief Finance Officer

Financial statements

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gold corporation The trading name of Gold Corporation is The Perth Mint.

Perth Mint Buildings 310 Hay Street East Perth, WA 6004 Australia GPO Box M924 Perth, WA 6843 Australia


www.perthmint.com.au