Statement of Financial Capability

8/15/2019 Statement of Financial Capability

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Statement of financial capability

For exploration licences and assessment leases,grant, transfers and renewals for Minerals1 andPetroleum1 applications (excluding Small Scale

Titles)November 2015

The epartment of !ndustry, i"ision of #esources $ %nergy (#%) assesses applications for acti"ities

to explore and extract the resources of the State of &S' for the benefit of the people of &S'

To ensure that exploration licences and assessment leases are issued to indi"iduals or companies that

meet the obects of the Mining Act 1992 or the Petroleum (Onshore) Act 1991 the #% re*uires

certain information in relation to indi"iduals and companies ma+ing an application

s part of the assessment to grant-transfer-renew, the #% re*uires a statement regarding the

financial capability of the applicant or in the case of a transfer, the transferee only.The persons that are re*uired to pro"ide this information are.

• in the case of a natural person / the applicant-transferee

• in the case of a Company or Related Body Corporate1 / the 0ompany Secretary, irector 1 or

fficer 1

pplicants or transferees must demonstrate to the satisfaction of the Minister for !ndustry #esources

and %nergy that they possess, or ha"e the ability to secure, the re*uired funding to meet the

anticipated expenditure for the term of the wor+ program, in addition to commitments and liabilities on

all other titles held or pending in &S'

pplicants or transferees are re*uired to submit the rele"ant information outlined in Sections 1, 2 and

3 with their application

'e ha"e included chec+ sheets and templates to help you pro"ide us with information about your

financial history and capability

Contact

!f you re*uire further information or assistance please phone the Titles team on (42) 5631 7844 or

email imeren*uiries9industrynswgo"au

1 #efer to definitions section at bac+ of this document

:5. 5 &o"ember 2418

mailto:[email protected]:[email protected]:[email protected]:[email protected]


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; State of &ew South 'ales through epartment of !ndustry, S+ills and #egional e"elopment 2418 This publication is copyright


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1. Current eploration licences held in N!"

ll applicants should complete the table below to pro"ide us with information about.

• all &S' exploration licences and assessment leases held or pending by the applicant or transferee

(in the case of a transfer application) and any #elated =ody 0orporates 1 and

• the estimated financial commitments on the wor+ programs for each exploration licence and

assessment lease (either pending or held) o"erlapping the term of the application being applied for

#able 1.1 $pplicant%s current eploration licences

N!" &ploration 'icence &stimated (inancial Commitments

0lic+ here to enter text 0lic+ here to enter text















3 &S' #esources and %nergy, "5. 5 &o"ember 2418


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2. )nformation about the applicant%s financial history

!n accordance with the Mining Act 1992 or the Petroleum (Onshore) Act 1991, the i"ision re*uires

rele"ant information to support a grant, renewal or transfer, in order to assess an applicant>s financial

history

To pro"ide us with this information, please complete the rele"ant chec+ sheets in this section

"ho should complete Chec* sheet 2$

This chec+ sheet collects information about the individuals associated with the application

$ll applicants (natural persons and fficers of 0ompanies) should complete this chec+ sheet

"ho should complete Chec* sheet 2B

This chec+ sheet collects information about Companies +ho are an applicanttransferee

fficers of 0ompanies should complete and sign this chec+ sheet on behalf of their 0ompany

)nstructions for completing the chec* sheets

• !f you answer -es% to any of the following *uestions, please pro"ide a separate statement

setting out the specific circumstances of the history and state reasons why you thin+ thosecircumstances should not pre"ent you from holding a title


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Chec* sheet 2$/ (inancial history of natural persons or fficers of a

Company

$ll applicants should complete Chec* sheet 2$. The types of matters in 0hec+ sheet 2 refer to

offences that only natural persons can commit Please answer these *uestions in relation to.

• the applicant, when the applicant is a natural person, or

• all the fficers of the 0ompany, when the applicant is a company

as the applicanttransferee, +hether a natural person or fficer of a Company/

• =een con"icted under the Proceeds of Crime Act 2002 (0ommonwealth) or under the Crimes

egisl!tion Amendment (Serious !nd Org!nised Crime) Act 2010 (0ommonwealth), or for offencesof money laundering, terrorism financing or corruption under any 0ommonwealth or State ct, or

☐


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4osition/ 0lic+ here to enter text ate/ 0lic+ here to enter text



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Chec* sheet 2B/ (inancial history of a Company

Chec* sheet 2B only applies to applicants +ho are a Company. This chec+ sheet must be

completed and signed by an fficer of the 0ompany

oes the 0ompany currently ha"e, or has it had within the last 3 years, an fficer 1 within the

0ompany who has been an officer of any company that has been the subect of a winding up order or

for which a controller or administrator has been appointedB

☐


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3. !tatement of financial capability

This section outlines the information re*uired to support a grant, renewal or transfer in accordance

with the Mining Act 1992 or the Petroleum (Onshore) Act 1991 for the assessment of the applicant or

transferee>s (in the case of a transfer) financial capability to carry out the proposed wor+ programs in

addition to commitments and liabilities on all other titles held or pending in &S'

6se one or more of the templates in !ection 3 to provide us +ith the re7uired information.

The applicants re*uired to pro"ide the statement of financial capability are.

• in the case of a natural person / the applicant-transferee

• in the case of a Company or #elated =ody 0orporate1 / the 0ompany Secretary, irector 1 or

fficer 1 of the applicant or transferee

N#&/ SD Eisted 0ompanies or #elated =ody 0orporates that meet the criteria can complete and

submit financial capability statements from.

• Section 3 only, or

• Sections 3= and 30 only, or

•Section 3 only (a Section 3 Statement can only be used by petroleum or mineral explorers)

"hich !ections should you complete

se the tables on the next page to identify which section-s to complete depending on your application

type



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#able 3.1/ 8uide for petroleum eplorers

Petroleum explorers !ections to be completed

Applicant or transferee (in the case of a transfer) 3A 3B 3C 3D

SD Eisted 0ompanies or #elated =ody 0orporates1G

SD Eisted 0ompany or #elated =ody 0orporates1 applying for or

holding more than 24 bloc+s in &S'G


holding 24 bloc+s or less in &S'G

&atural person applying for or holding more than 24 bloc+s in&S'

&atural person applying for or holding 24 bloc+s or less in &S'

nlisted 0ompanies applying for or holding more than 24 bloc+s

in &S'

nlisted 0ompanies applying for or holding 24 bloc+s or less in

&S'

#able 3.2/ 8uide for mineral eplorers

9ineral eplorers !ections to be completed

Applicant or transferee (in the case of a transfer) 3A 3B 3C 3D

SD Eisted 0ompanies or #elated =ody 0orporates1G


holding 14 or more titles in &S'G

SD Eisted 0ompany or #elated =ody 0orporates1

applying for or holding less than 14 titles in &S'G

&atural person applying for or holding 14 or more titles in &S'

&atural person applying for or holding less than 14 titles in &S'

nlisted 0ompanies applying for or holding 14 or more titles in

&S'

nlisted 0ompanies applying for or holding less than 14 titles in

&S'



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#able 3.3/ 8uide for coal eplorers

Coal eplorers !ections to be completed

Applicant or transferee (in the case of a transfer)

SD Eisted 0ompanies or #elated =ody 0orporates1:

&atural person

nlisted 0ompanies

:$!; 'isted Companies or Related Body Corporates can elect to complete and submit financial capability statements

from !ection 3$ only, or !ections 3B and 3C only



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!ection 3$/ (inancial capability statement for an $!; listed company or

Related Body Corporate onlyThe Section 3 template can only be used by SD Eisted 0ompanies or #elated =ody 0orporates 1

This template should not be used by natural persons or nlisted 0ompanies

N#&/ SD Eisted 0ompanies or #elated =ody 0orporates who elect to complete and submit a

Section 3 statement, do not need to submit Sections 3=, 30 or 3



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SECTION 3A STATEENT

!Entit" name#

!A$$ress#

!Cit" State Postco$e#

The irectors of !Entit" Name# confirm that !Entit" Name# is currently listed on the ustralian Stoc+ %xchange s ability to raise additional capital or attract HfarmIin> agreements

!f the applicant is a wholly owned subsidiary of !Entit" Name AS% liste$ compan"# or a company where !Entit" Name AS% liste$ compan"# owns a maority of the shares (if as the applicant or transferee you are an SD listed companyplease delete this section as it is not applicable to you) all the following criteria must be met.

1 copy of the current deed of cross guarantee with !Entit" Name AS% liste$ compan"# and

2 all other current and proposed commitments of !Entit" Name AS% liste$ compan"# (statement attached)G and

3 statement of current assets and liabilities of !Entit" Name AS% liste$ compan"# G and

5 the most recent financial report to the ustralian Stoc+ %xchange of !Entit" Name AS% liste$ compan"# (document attached) and

8 any material disclosures made to the ustralian Stoc+ %xchange since the publishing of the most recent financialreport of !Entit" Name AS% liste$ compan"# (statement-s attached) and

7 the entity>s ability to raise additional capital or attract HfarmIin> agreements

Signed in accordance with a resolution of the irectors made pursuant to Section 26A(2) of the Cor"or!tions Act 2001

!-'e certify that the information pro"ided in this statement is true and correct to the best of my-our +nowledge and belief!-'e understand that under the Crimes Act 1900 Part 8, that +nowingly or rec+lessly gi"ing false or misleadinginformation is a serious offence and under the Mining Act 1992 s3@Ac and under the Petroleum (Onshore) Act 1991

s138, any person who pro"ides information that the person +nows to be false or misleading is guilty of an offence, forwhich they may be subect to prosecution

Signed #

JJJJJJJJJJJJJJJJJJJJJJJJJJJJJJ !Insert Name#

irector-fficer

Signed #



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JJJJJJJJJJJJJJJJJJJJJJJJJJJJJJ !Insert Name#

0hief Financial fficer

&ote. =oth signatories re*uired

Gny statements re*uired must be signed no more than >0 days before the application date unless

that statement forms part of the most recent financial reporting to the ustralian Stoc+ %xchange



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!ection 3B/ (inancial capability statement for an $!; 'isted Company,

Related Body Corporate, 6nlisted Company or natural personSection 3= can be used by applicants who meet any of the following criteria.

• an $!; 'isted Company or Related Body Corporate1 (who has chosen this financial capability

assessment method)o applying for or holding more than 24 bloc+s in &S' for Petroleum or o applying for or holding more than 14 titles in &S' for Minerals or

o applying for 0oal

• a natural person or 6nlisted Company o applying for or holding more than 24 bloc+s in &S' for Petroleum or o applying for or holding 14 or more titles in &S' for Minerals or

o applying for 0oal

N#&/ !f you are completing a Section 3= statement, you must also submit Section 30 (accountant>s

report)

SECTION 3B STATEENT

!Entit" name#

!A$$ress#

!Cit" State Postco$e#

! am the !applicant in the case of a natural person or Director in the case of a compan"# of !Entit" Name#

(!n the case of a natural person / delete if not applicable) ! am responsible for determining the expenditurere*uired to fund the wor+ program as set out in this application and any other commitments of !Entit" Name#&

(!n the case of a company / delete if not applicable) The irector-s of !Entit" Name# are responsible fordetermining the expenditure re*uired to fund the wor+ program as set out in this application and any othercommitments of !Entit" Name#

!-'e ha"e prepared a cashflow forecast to support my-our assessment, which includes the proposed wor+program expenditure and any proposed financing which is in place or is planned to be secured to meet the wor+program, prepared on the basis of our bestIestimate assumptions as at the date of this application

!-'e confirm that as at the date of the application !-we ha"e reasonable grounds to belie"e that !Entit" Name# willbe able to finance the planned expenditure for the term of the wor+ program

!-'e certify that the information pro"ided in this application is true and correct !-'e understand that under theCrimes Act 1900 Part 8, +nowingly or rec+lessly gi"ing false or misleading information is a serious offence? andunder the Mining Act 1992 s3@Ac and under the Petroleum (Onshore) Act 1991 s138, any person who pro"idesinformation that the person +nows to be false or misleading is guilty of an offence, for which they may be subectto prosecution

Signed Date#

JJJJJJJJJJJJJJJJJJJJJJJJJJJJJ !Insert Name#

pplicant-irector - 0hief Financial fficer (whiche"er is applicable)



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!ection 3C/ $ccountant%s report

n accountant may use this template to submit a report for an applicant that meets any of the followingcriteria.


assessment method)

o applying for or holding more than 24 bloc+s in &S' for Petroleum or

o applying for or holding 14 or more titles in &S' for Minerals or

o applying for 0oal

• a Natural 4erson or 6nlisted Company

o applying for or holding more than 24 bloc+s in &S' for Petroleum or

o applying for or holding 14 or more titles in &S' for Minerals or

o applying for coal

The accountant>s report on the applicant>s financial capability must be signed by a person who.

• is not a director, other office holder, or employee of the applicant or a related body corporate of the

applicant

• has no financial interest in the applicant, and

• holds a certificate of public practice

Note/ n accountant>s report must be completed if you elect to submit a Section 3= statement



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SECTION 3C ACCO'NTANTS EPOT

!Entit" Name#

The irectors!Entit" Name#

!Entit" a$$ress#

Conclusion

=ased on our re"iew, which is not an audit, nothing has come to our attention which causes us to belie"e that, inall material respects.

• as at , management>s bestIestimate assumptions do not pro"ide reasonable grounds for the

cashflow forecast which supports !Name of Entit"# >s assessment of the expenditure and funding of the wor+program as set out in the application and the cashflow forecast has not been prepared on the basis of these

assumptions? and

• the cashflow forecast does not support the irector>s Statement (nnexure of the application) that !Entit"

name# will be able to finance the planned expenditure for the next 12 months

Basis for our conclusion

'e ha"e performed a limited assurance engagement with respect to the cashflow forecast prepared by !Entit"Name# to support their Financial 0apability Statement dated KdateL to support title !*rant+ rene,al or transfer inaccor$ance ,ith the inin* Act -../ or the Petroleum (Onshore) Act -..- 0 inclu$e rele1ant $etails#

irectors% responsibility for the !tatement

The irectors of !Entit" Name# are responsible for the preparation of the cashflow forecast supporting theirstatement as at !$ate# in relation to the financial capability of the entity at that date to fund the plannedexpenditure for the term of the wor+ program, in addition to commitments and liabilities on all other titles held orpending any ustralian urisdiction

This responsibility includes such controls as the irectors determine are necessary to enable the preparation of aforecast that is free from material misstatement, whether due to fraud or error

$ccountant%s responsibility

ur responsibility is to express a limited assurance conclusion on the Statement based on our re"iew 'e ha"econducted our engagement in accordance with the St!nd!rd on Assur!nce #ng!gements ASA# $%&0 issued bythe ustralian uditing and ssurance Standards =oard These standards re*uire that we comply with rele"antethical re*uirements relating to assurance engagements

ur limited assurance procedures consisted of ma+ing en*uiries, primarily of persons responsible for financialand accounting matters, and applying analytical and other re"iew procedures limited assurance engagement issubstantially less in scope than an audit conducted in accordance with ustralian uditing Standards andconse*uently does not enable us to obtain reasonable assurance that we would become aware of all significantmatters that might be identified in a reasonable assurance engagement ccordingly, we do not express an audit

opinion=ecause of the subecti"e nature of information re*uired to ma+e the irector>s Statement, the persuasi"eness ofthe e"idence a"ailable is limited Prospecti"e information is information about e"ents and-or actions that ha"e notyet occurred and may not occur !t reflects assumptions about future e"ents and is subect to future changes inthe business and economic conditions 'hilst e"idence is a"ailable to support the assumptions on which thedirectors> opinion is based, such e"idence is future orientated and speculati"e in nature s a conse*uence,actual results are li+ely to be different from the information on which our conclusion is based, since anticipatede"ents fre*uently do not occur as expected or assumed and the "ariations between the prospecti"e opinion andthe actual outcome may be significant


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JJJJJJJJJJJJJJJJJJJJJJJJJJ

!Name# !Position# Date#



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!ection 3/ $pplicant%s report on their financial capability

This section can only be used by petroleum and mineral explorers that meet any of the followingcriteria.


assessment method)o applying for or holding 24 bloc+s or less in &S' for Petroleum or

o applying for or holding 14 titles or less in &S' for Minerals

an 6nlisted Company

o applying for or holding 24 bloc+s or less in &S' for Petroleum or

o applying for or holding less than 14 titles in &S' for Minerals

a natural persono applying for or holding 24 bloc+s or less in &S' for Petroleum or

o applying for or holding less than 14 titles in &S' for Minerals

N#&/ !f you meet the abo"e criteria and elect to submit a Section 3 statement, you are not re*uired

to submit Sections 3, 3= or 30

SECTION 3D STATEENT

! am the !applicant in the case of a natural person or Director in the case of a compan"# of !Entit" Name#

(!n the case of a natural person / delete if not applicable) ! am responsible for determining the expenditure

re*uired to fund the wor+ program as set out in this application and any other commitments of !Entit" Name#

(!n the case of a company / delete if not applicable) The irector-s of !Entit" Name# are responsible fordetermining the expenditure re*uired to fund the wor+ program as set out in this application and any othercommitments of !Entit" Name#

!-'e ha"e prepared a cash flow forecast to support my-our assessment, which includes the proposed wor+program expenditure and any proposed financing which is in place or is planned to be secured to meet the wor+program, prepared on the basis of our bestIestimate assumptions as at the date of this application

!-'e confirm that as at the date of the application !-we ha"e reasonable grounds to belie"e that !Entit" Name# willbe able to finance the planned expenditure for the term of the wor+ program

!n establishing reasonable grounds that !Entit" Name# will be able to finance the planned expenditure for theterm of the wor+ program !-we ha"e had regard for the following.

1 the wor+ program (copy attached)

2 all other current and proposed commitments of !Entit" Name# (Statement attached)G3 a statement of current assets and liabilities (attached)G

!-'e, as at the date of the application, are not aware of any other financial commitments either in &S' or outside&S' which may negati"ely impact upon the commitment to complete the term of the wor+ program

!-'e certify that the information pro"ided in this application is true and correct !-'e understand that under theCrimes Act 1900 Part 8, that +nowingly or rec+lessly gi"ing false or misleading information is a serious offence?and under the Mining Act 1992 s3@Ac and under the Petroleum (Onshore) Act 1991 s138, any person whopro"ides information that the person +nows to be false or misleading is guilty of an offence, for which they may besubect to prosecution

Signed



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JJJJJJJJJJJJJJJJJJJJJJJJJJJJJ !Insert name#

pplicant-irector- 0hief Financial fficer ('hicheer is !""lic!le)

G An" statements re2uire$ must e si*ne$ no more than 45 $a"s efore the application $ate&



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efinitions

#erm 9eaning

irector s defined in the Cor"or!tions Act 2001

0ommonwealth and also includes a person in"ol"ed in

the management of the affairs of the corporation

Minerals s defined in the Mining *egul!tion 2010 &S'

Minerals application Eimited to applications for.

%xploration licence and assessment lease only refer

to Part 3 and Part 5 of the Mining Act 1992

fficer #efer to section 6 of the Cor"or!tions Act 2001 (0th)

limited to?

(a) director or secretary of the corporation? or

(b) a person.

(i) who ma+es, or participates in ma+ing, decisions

that affect the whole, or a substantial part, of the

business of the corporation? or

(ii) who has the capacity to affect significantly

the corporationNs financial standing?

Petroleum application Eimited to applications for.

%xploration licence, assessment lease or special

prospecting authority refer to Part 3 i"ision 2, 3 and

5 of the Petroleum (Onshore) Act 1991

Serious offence • an offence committed in &ew South 'ales that is

punishable by imprisonment for life or for a term

of 8 years or more or by a fine of O844,444 or

more, or an offence committed elsewhere than in

&ew South 'ales that if committed in &ew South

'ales would be an offence so punishable, or

• an offence committed under a law of the

0ommonwealth that is punishable by

imprisonment for life or for a term of 8 years or

more or by a fine of O844,444 or more

#elated =ody 0orporate !s limited to subsections (a) $ (b) of section 84 of

the Cor"or!tions Act 2001 (0th)

efinition of current or other proposed

commitments

#efer to ccounting Standard S= 141 Presentationor Financial Statements published by the ustralian

ccounting Standards =oard

ccording to 0hartered ccountants ustralia for

the purposes of the accounting standards,

entities may recognise liabilities (a present

obligation of the entity arising from past e"ents,

the settlement of which is expected to result in anoutflow of resources embodying economic



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#erm 9eaning

benefits to the entity) or pro"isions (a liability

where the timing or amount of the expected

outflow is uncertain) in their financial statements

They must also disclose (but do not include in

the statement of financial position-balance sheet)

contingent liabilities which are either possible

obligations whose existence will be confirmed by

future e"ents or present obligations which cannot

be measured reliably or for which it is not

probable that the obligation will be settled)

efinition of current assets and current liabilities

#efer to ccounting Standard S= 141 Presentationor Financial Statements published by the ustralian

ccounting Standards =oard

Current $ssets

n entity shall classify an asset as current when.(a) it expects to realise the asset, or intends to sell orconsume it, in its normal operating cycle?

(b) it holds the asset primarily for the purpose oftrading?

(c) it expects to realise the asset within twel"e monthsafter the reporting period? or

(d) the asset is cash or a cash e*ui"alent (as definedin S= 14@) unless the asset is restricted from beingexchanged or used to settle a liability for at leasttwel"e months after the reporting period

n entity shall classify all other assets as nonIcurrent

Current 'iabilities

n entity shall classify a liability as current when.

(a) it expects to settle the liability in its normal

operating cycle?

(b) it holds the liability primarily for the purpose of

trading?

(c) the liability is due to be settled within twel"e

months after the reporting period? or

(d) it does not ha"e an unconditional right todefer settlement of the liability for at least twel"e

months after the reporting period (see paragraph

@3 of S=141) Terms of a liability that could, at

the option of the counterparty, result in its

settlement by the issue of e*uity instruments do

not affect its classification

Documents

Statement of Financial Capability