Annual Financial Report
(Thomson Reuters ONE) - AIM RELEASE18 September 2009DISCOVERY METALS LIMITEDDIRECTORS AND FINANCIAL REPORT FOR THE YEAR ENDED30 JUNE 2009A complete copy of the Financial Report for the year ended 30 June2009 is available on the Company's website athttp://www.discoverymetals.com.au/investor_annualreports.cfmDIRECTORS REPORTYour directors present their report on Discovery Metals Limited andits subsidiaries ('Consolidated Group') for the year ended 30 June2009.THE BOARD OF DIRECTORSThe directors of Discovery Metals Limited ('Company' or 'DiscoveryMetals') in office at any time during or since the end of the yearare:GORDON GALT (Date of Appointment 09.05.07)B.Eng (Hons), B Comm, Grad Dip Applied Finance, MAusIMM, MAICDChairman and member of the Audit and Financial Risk CommitteeGordon Galt is a senior mineral resources executive and anexperienced director with international mineral industry experience.During his career, Mr Galt has worked in senior management, technicaland operational roles across a wide range of commodities, primarilyin gold, coal, magnesium and copper/lead/zinc. Mr Galt is bytraining, a mining engineer, with post-graduate qualifications infinance. Both degrees are from the University of Queensland.During the past ten years Mr Galt has worked mainly as the managingdirector of companies engaged in the development and operation oflarge resource projects and he has also spent a period of time inbanking. Mr Galt is currently engaged in funds management andcorporate advisory work. In previous roles, Mr Galt has demonstrateda track record of creating shareholder value through analysis of aCompany's strategic position, followed by implementation ofappropriate corporate strategies, fund raising and motivating teamsof senior resource professionals.During the past three years, Mr Galt has held the following listedcompany directorships:* Aquila Resources Limited from August 2007 to present * Navigator Resources Limited from August 2008 to present * Gloucester Coal Limited from April 2004 to August 2007 * Magnesium International Limited from August 2002 to January 2006STUART BRADLEY SAMPSON (Date of Appointment 01.02.08)B. Eng (Hon), MBA, AMP Oxf, MAusIMM, MAICDManaging DirectorBrad Sampson has over 20 years Australian and Internationalexperience as a mining engineer. He has worked extensively in opencut and underground mine operations and developments in SouthernAfrica, Australia and the Pacific. He previously held an executiverole in Thiess Ltd and has been in general management roles with GoldFields Limited at St Ives gold mine in Western Australia and at theKloof operation in South Africa. He has also held the position ofGeneral Manager-PNG for Emperor Mines Limited. Brad has also heldpositions with Anglo American, Ross Mining NL and Comalco. MrSampson is also the managing director of all Discovery Metalssubsidiaries registered in Botswana.MORRICE CORDINER (Date of Appointment 30.05.03)LLB, ASIANon-Executive Director and Chairman of the Audit and Financial RiskCommitteeMr Cordiner is a corporate lawyer by training and has in excess of 15years experience in the finance and resources industries. Based inSydney, Australia, he is a founding Director of Discovery Metals andwas instrumental in identifying the original projects and strategicalliance with Falconbridge Inc that formed the original assets of theCompany in 2003. Over the last 6 years, Mr Cordiner has beeninvolved in the successful development and financing of a number ofjunior listed resource companies with projects in gold, nickel,copper and zinc. He has been actively involved in raising funds forthese ventures on the Australian Stock Exchange, the London AIMmarket and the Toronto Stock Exchange. Mr Cordiner is also currentlya non-executive director of the ASX and TSX dual-listed goldexplorer, Andean Resources Limited (Dec 2003 to present) and the ASXlisted zinc explorer, Meridian Minerals Limited (July 2008 topresent).RIBSON GABONOWE (Date of Appointment 30.05.08)BSc (Mining Engineering), MSc (Mineral Economics), MBANon Executive DirectorRibson Gabonowe is a well known Mining Engineer with over 25 years ofexperience in the mining industry. For twelve years to December2006, Ribson was the Director of Mines of Botswana, responsible foradministering the legal and fiscal framework governing mineralexploitation. In this role, Ribson was involved in negotiations ofmineral agreements for copper, nickel, diamonds, coal and soda ash.During the past five years Ribson held directorships in the followingcompanies:* Morupule Colliery (Pty) Ltd* Botswana Diamond Valuing Company (Pty) Ltd* BCL Limited (Pty) LtdRibson is currently a director of Kukama Mining and Exploration,African Coal (Pty) Ltd, Atlas Minerals (Pty) Ltd and Gabor Consulting(Pty) Ltd. Mr Gabonowe is also a director of all Discovery Metalssubsidiaries registered in Botswana.JEREMY READ (Date of Appointment 01.02.08)BSc (Hons), MAusIMMNon Executive Director (Managing Director 01.07.07 to 01.02.08)Jeremy Read has 22 years domestic and international mineralsexploration experience and was previously the Manager of BHP MineralsAustralian Exploration Team. He has extensive exploration experiencefor gold, nickel sulphides and base metals. Mr. Read played acritical role in the discovery of the Kabanga North Nickel deposit inTanzania which is currently undergoing feasibility studies . He isskilled in developing new technical teams, management oftechnical/specialist service groups, project generation activities,risk management, multi-commodity mineral exploration, companylistings and capital raisings. During his employment with BHP, MrRead participated in the development of several significant strategicexploration alliances. Mr Read was the founding managing director ofDiscovery Metals from its incorporation in May 2003, until hisappointment as a non-executive director on 1 February 2008. He isalso the founding managing director of Meridian Minerals Limited.JOHN SHAW (Date of Appointment 13.11.06)BSc (Geological Engineering), FAusImm, MCIM, FAICD, SMENon Executive Director and member of the Audit and Financial RiskCommitteeJohn Shaw has over 40 years experience in exploration, developmentand operations of open cut and underground mines. He previously wasVice President of the Australian Operations of Placer Dome AsiaPacific Limited and Managing Director of Kidston Gold Mines. Mr Shawis a former Chairman of Gallery Gold Limited, Zimbabwe Platinum MinesLimited, Tri Origin Minerals Limited, Albidon Limited and LodestoneExploration Limited. He was also involved with the development ofthe Mupane Gold Mine in NE Botswana. Mr Shaw is a non executivedirector of IAMGOLD Corporation and Quadra Australia Pty Ltd.During the past five years Mr Shaw has held the following listedcompany directorships:* IAMGOLD Corporation from March 2006 to present* Albidon Limited February 2008 to April 2009 * Tri Origin Minerals Limited from October 2003 to February 2008 * Lodestone Exploration Limited from May 2002 to November 2007 * Gallery Gold Limited from November 2003 to March 2006 * Kingsgate Consolidated Limited from September 2000 to March 2005ROSLYNN SHAND (Date of Appointment 24.05.07)BA, LLB, FCISCompany SecretaryRoslynn Shand has a combined degree in Arts/Law from the Universityof Queensland, is a fellow of the Chartered Secretaries Australia andhas considerable experience in the company secretarial area. She hasbeen a company secretary for over 15 years for entities in thefinancial, agricultural and mining sectors.Principal ActivityThe principal activity of the Company during the year was mineralexploration and in particular the continued development of its Bosetocopper project in Botswana.No significant change in the nature of the Consolidated Group'sprincipal activity occurred during the year.Dividends Paid or RecommendedThe directors do not recommend the payment of a dividend for thisfinancial year. No dividend has been declared or paid by DiscoveryMetals Limited since the end of the previous financial year.Operating ResultsThe result of the Consolidated Group amounted to an after-tax loss of$4,436,900 (2008: loss $3,610,890).Number of EmployeesThere are twenty eight (28) full-time employees employed by theConsolidated Group in Australia and Botswana. All other roles arecurrently undertaken under contract arrangements, or by part-timeemployees.Significant Changes in State of AffairsNo significant changes in the state of affairs of the ConsolidatedGroup occurred during the year.After Balance Date EventsNo other matters or circumstances have arisen since the end of thefinancial year which significantly affected or may significantlyaffect the operations of the Consolidated Group, the results of thoseoperations or the state of affairs of the Consolidated Group infuture financial years other than those noted in Note 25 in the Notesto the Financial Statements.Future DevelopmentsOther than as referred to in this report, further information as tolikely developments in the operations of the Consolidated Group andthe expected results of those operations would, in the opinion of thedirectors, be speculative and not in the best interests of theConsolidated Group.Review of OperationsThe directors continued to operate the Consolidated Group in the bestinterests of the shareholders.Financial PositionThe net asset position of the Consolidated Group at 30 June 2009 was$30,978,963 (30 June 2008: $17,288,514).The Consolidated Group has written off $700,000 (30 June 2008 :$49,990) on exploration during the half year. The farmed outAustralian prospects of Litchfield and Musgrave have been writtendown to nil value as, given the current market, realisation of amining operation in the foreseeable future is considered unlikely. Exploration expenditure of $49,990 in relation to the Cat Campprospect was written off in June 2008, following a decision torelinquish that tenement.Tenement ScheduleThe Consolidated Group has an interest in the following tenements: PROJECT TENEMENT MANAGER AREA GRANTED EXPIRY EXPENDITURE COUNTRY (Km2) COMMITMENT or STATE BWP 4.497m Yr DIKOLOTI P019/2004 Discovery 284 1-Jul-07 30-Jun-11 6 BOTSWANA NICKEL BWP 2.210m Yr 7 BWP 0.482m Yr DIKOLOTI P020/2004 Discovery 89.6 1-Jul-07 30-Jun-11 6 BOTSWANA NICKEL BWP 2.210m Yr 7 BWP 0.226m Yr DIKOLOTI P021/2004 Discovery 40.7 1-Jul-07 30-Jun-11 6 BOTSWANA NICKEL BWP 2.210m Yr 7 BWP 1.048m Yr DIKOLOTI P022/2004 Discovery 197.4 1-Jul-07 30-Jun-11 6 BOTSWANA NICKEL BWP 2.210m Yr 7 BOSETO P98/2005 Discovery 630 1-Oct-05 30-Sep-10 BWP 0.1m Yr 4 BOTSWANA COPPER BWP 0.5m Yr 5 BOSETO P99/2005 Discovery 893 1-Oct-05 30-Sep-10 BWP 4.0m Yr 4 BOTSWANA COPPER BWP 0.5m Yr 5 BOSETO P100/2005 Discovery 757 1-Oct-05 30-Sep-10 BWP 0.1m Yr 4 BOTSWANA COPPER BWP 0.5m Yr 5 BOSETO P101/2005 Discovery 426 1-Oct-05 30-Sep-10 BWP 0.1m Yr 4 BOTSWANA COPPER BWP 0.5m Yr 5 BOSETO P102/2005 Discovery 557 1-Oct-05 30-Sep-10 BWP 0.1m Yr 4 BOTSWANA COPPER BWP 0.5m Yr 5 BOSETO P103/2005 Discovery 463 1-Oct-05 30-Sep-10 BWP 0.1m Yr 4 BOTSWANA COPPER BWP 0.5m Yr 5 BOSETO P104/2005 Discovery 731 1-Oct-05 30-Sep-10 BWP 0.1m Yr 4 BOTSWANA COPPER BWP 0.5m Yr 5 BOSETO BWP 0.1m Yr 1 COPPER 186/2008 Discovery 929 1-July-08 30-June-11 BWP 0.2m Yr 2 BOTSWANA BWP 0.3m Yr 3 BOSETO BWP 0.1m Yr 1 COPPER 187/2008 Discovery 951 1-July-08 30-June-11 BWP 0.2m Yr 2 BOTSWANA BWP 0.3m Yr 3 BOSETO BWP 0.1m Yr 1 COPPER 188/2008 Discovery 940 1-July-08 30-June-11 BWP 0.2m Yr 2 BOTSWANA BWP 0.3m Yr 3 BOSETO BWP 0.1m Yr 1 COPPER 189/2008 Discovery 444 1-July-08 30-June-11 BWP 0.2m Yr 2 BOTSWANA BWP 0.3m Yr 3 BWP 0.1m Yr 1 BOSETO 190/2008 Discovery 861 1-July-08 30-June-11 BWP 0.2m Yr 2 BOTSWANA COPPER BWP 0.3m Yr 3 BOSETO BWP 0.1m Yr 1 COPPER 191/2008 Discovery 944 1-July-08 30-June-11 BWP 0.2m Yr 2 BOTSWANA BWP 0.3m Yr 3 BOSETO BWP 0.1m Yr 1 COPPER 192/2008 Discovery 638 1-July-08 30-June-11 BWP 0.2m Yr 2 BOTSWANA BWP 0.3m Yr 3 MUSGRAVE E69/1640 Redstone 48 01-Feb-01 31-Jan-10 $144,000 WA MUSGRAVE E69/1642 Redstone 30 01-Feb-01 31-Jan-10 $90,000 WA MUSGRAVE E69/1662 Redstone 59 08-Oct-03 07-Oct-10 $118,000 WA MUSGRAVE E69/1663 Redstone 54 28-Feb-01 27-Feb-10 $162,000 WALITCHFIELD EL 22959 Pacific 10 17-Feb-03 16-Feb-09 All the NT Ore LitchfieldLITCHFIELD EL 22960 Pacific 14 tenements are NT Ore in theLITCHFIELD EL 22961 Pacific 111 11-Jul-03 10-Jul-09 process of NT Ore beingLITCHFIELD EL 23619 Pacific 84 22-Oct-03 21-Oct-09 relinquished. NT Ore NoLITCHFIELD EL 23623 Pacific 20 expenditure NT Ore is committed. BWP - The Botswana Pula exchange rate is approximately BWP 5.5 toAUD 1.00REMUNERATION REPORTThis report details the nature and amount of remuneration for eachkey management personnel (being directors and executives receivingthe highest remuneration) of Discovery Metals Limited.Remuneration policyThe remuneration policy of Discovery Metals has been designed toalign key management personnel objectives with shareholder andbusiness objectives by providing a fixed remuneration componentcombined with specific long term incentives, based on key performanceareas affecting the Consolidated Group's financial results. Short-term incentives will be introduced once the Company isproducing revenue from operations.The board of Discovery Metals believes the remuneration policy to beappropriate and effective in its ability to attract and retain thebest key management personnel to run and manage the ConsolidatedGroup, as well as create goal congruence between directors,executives and shareholders. Following a review by the board of itscommittee structure, the board chose to retain directly allresponsibility for remuneration matters. A separate remunerationcommittee was deemed not to be required at this stage.The board's policy for determining the nature and amount ofremuneration for key management personnel of the Consolidated Groupis as follows:* All key management personnel receive a base salary (which is based on factors such as demonstrated skills and experience), superannuation, fringe benefits and a share options package. Short term performance incentives will be added in future years.* The board reviews key management personnel packages annually by reference to the Consolidated Group's performance, executive performance and comparable information from industry sectors.* The remuneration structure for key management personnel is based on a number of factors, including skills displayed, particular experience of the individual concerned and overall performance of the Company. The contracts for service between the Company and key management personnel are on a continuing basis, the terms of which are not expected to change in the immediate future. Upon retirement, key management personnel are paid employee benefit entitlements accrued to date of retirement. Executives are paid a percentage of between three and twelve months of their salary in the event of termination, with all granted options vesting immediately in the event of a takeover bid for the Company. Any options not exercised within 60 days of the date of termination lapse.* For executives, the group will seek to emphasise payment for results through providing various cash bonus reward schemes, specifically, the incorporation of incentive payments based on the achievement of revenue targets and return on equity ratios. This will be implemented once the Company commences production in future years.The performance of executives is measured against criteria agreedquarterly with the managing director and discussed annually by theboard. The criteria are based predominantly on the work required togrow the Company and to bring the Boseto copper project intoproduction and therefore add to shareholders' value. As the Companyis in the exploration and feasibility phase, currently no short termbonus payment scheme is applicable to executives. Any future bonusesand incentives will be linked to predetermined performance criteria. The board may however, exercise its discretion in relation toapproving incentives, bonuses and options and make changes. Any suchchanges must be justified by reference to measurable performancecriteria. The policy is designed to attract the highest calibre ofexecutives and reward them for performance that results in long-termgrowth in shareholder wealth.Executives are entitled to participate in the Company's option plan,which is the long term incentive portion of their remuneration.The key management personnel receive a superannuation guaranteecontribution required by the Australian government, which iscurrently 9%, and do not receive any other retirement benefits. Botswana key management personnel receive a similar superannuationcontribution payment. Some individuals, however, may choose tosacrifice part of their salary to increase payments towardssuperannuation.All remuneration paid to key management personnel is valued at thecost to the Company and expensed during the year of the payment, orin the case of share options, in the year of the grant. Options arevalued using the Black-Scholes methodology.The board policy is to remunerate non-executive directors at marketrates for time, commitment and responsibilities. The boarddetermines payments to the non-executive directors and reviews theirremuneration annually, based on market practice, duties andaccountability. Independent external advice is sought when required. The maximum aggregate amount of fees that can be paid tonon-executive directors is subject to approval by shareholders. Feesfor non-executive directors are not linked to the performance of theConsolidated Group. However, to align directors' interests withshareholder interests, the directors are encouraged to hold shares inthe Company and are able to participate in the directors' optionplan.Performance-based remunerationThe Company currently has no performance based remuneration componentbuilt into director and executive remuneration packages.Company performance, shareholder wealth and director and executiveremunerationThe remuneration policy has been tailored to increase goal congruencebetween shareholders, directors and executives. This has beenachieved by allocating share options to directors and key managementupon commencement and based on the VWAP of the Company's share pricein the period before the director or executive commenced with theCompany.Managing Director and ExecutivesThe employment conditions of the managing director, Stuart Bradley(Brad) Sampson and other key executives are formalised in contractsof employment. The managing director and other executives arepermanent employees of Discovery Metals group companies.Brad Sampson is employed under a fixed three (3) year contract, whichcommenced on 1 February, 2008 and expires on 31 January 2011. Theemployment contract stipulates a six (6) month resignation period. The Company may terminate the employment contract without cause byproviding twelve (12) months written notice or making payment in lieuof notice, based on the individual's annual salary. Terminationpayments are generally not payable on resignation or dismissal forserious misconduct. In the instance of serious misconduct theCompany can terminate employment at any time. Any options notexercised within 60 days of the date of termination will lapse.The board determines the proportion of fixed and variablecompensation for each executive.Key Management Personnel Remuneration2009 Short term benefits Post employment Share benefits based Cash Salary Non-Monetary ShareName & Fees Benefits Super-annuation Other Options Total $ $ $ $ $ $Non- Executive DirectorsGordon 80,000 7,200 87,200GaltMorriceCordiner 44,160 5,993 50,153(1)RibsonGabonowe 44,160 33,000 77,160(2)Jeremy 40,000 3,600 33,000 76,600ReadJohn Shaw 0 43,600 43,600Executive DirectorsBrad 353,211 31,789 225,154 610,154SampsonOther key management personnelPaul 240,000 21,600 330,038 591,638FultonRossGibbins 146,667 13,200 58,320 218,187(3)Christian 200,000 35,678 18,000 125,812 379,490Heili (4)FredNhiwatiwa 150,000 27,600 15,000 41,075 233,675(4)Notes:Cash Bonuses are not payable until production commences and therefore0% of directors and key management remuneration is related toperformance.Long service leave is not accrued until 5 years service has beenreached.Share Options are valued using the Black-Scholes methodology.(1) Mr Cordiner's director's fees are paid to Mining InvestorsAustralia Pty Limited in accordance with his contract. MiningInvestors were paid $5,993 for consulting services associated with acapital placement.(2) Mr Gabonowe's director's fees are paid to Gabor Consulting(Pty) Ltd in accordance with his contract.(3) Mr Gibbins commenced employment on 1 November 2008.(4) Botswana based key executive personnel are provided withhousing, a car and medical and life insurance as part of theiremployment contracts.Key Management Personnel Remuneration2008 Short term benefits Post employment Share benefits based Cash Salary Non-Monetary ShareName & Fees Benefits Super-annuation Other Options Total $ $ $ $ $ $Non- Executive DirectorsGordonGalt 80,000 7,200 412,000 499,200MorriceCordiner(1) 44,160 44,160RibsonGabonowe (Note(2) 6,667 7) 6,667Jeremy (NoteRead (3) 15,026 1,352 7) 16,378John Shaw 40,000 3,600 43,600Executive DirectorsJeremyRead (4) 148,210 22,789 105,000 275,999BradSampson (Note(5) 234,671 13,245 7) 247,916Other key management personnelPaulFulton 64,615 5,815 43,507 113,937Christian 20,328Heili (6) 122,727 13,500 5,627 70,870 233,052QuintonHills 139,583 12,563 152,146FredNhiwatiwa 19,967(6) 115,768 13,500 105,000 254,235Notes:Cash Bonuses are not payable until production commences and therefore0% of directors and key management remuneration is related toperformance.Long service leave is not accrued until 5 years service has beenreached.Share Options are valued using the Black-Scholes methodology.(1) Mr Cordiner's director's fees are paid to Mining InvestorsAustralia Pty Limited in accordance with his contract.(2) Mr Gabonowe's director's fees are paid to Gabor Consulting(Pty) Ltd. Mr Gabonowe was appointed 30 April 2008.(3) Mr Read relinquished his role as Managing Director on 1February 2008 and was appointed as a Non-Executive Director on 1February 2008(4) Mr Read received a termination payment of $105,000 inaccordance with his employment contract as managing director.(5) Mr Sampson was paid $87,500 on commencement as managingdirector with the Company on 1 February 2008 in accordance with hisemployment contract.(6) Botswana based key executive personnel are provided withhousing, a car and medical insurance as part of their employmentcontracts.(7) Shares option grants of 1 million shares each forincoming non-executive directors Ribson Gabonowe and Jeremy Read and2 million for incoming managing director Brad Sampson are to beissued subject to shareholder approval.Options issued as part of remuneration for the year ended 30 June2009Options are issued to directors and executives as part of theirremuneration. The options are not issued based on performancecriteria, but are issued to the majority of directors and executivesof Discovery Metals Limited and its subsidiaries to increase goalcongruence between executives, directors and shareholders.Options Granted as Remuneration (current year) Terms & Conditions for Each Grant Vested Granted Grant Value Exercise First Last No. No. Date per Price Exercise Exercise Option $ Date Date at Grant Date $Non- Executive DirectorsJeremyRead 1,000,000 1,000,000 12/12/08 33,000 $0.50 12/12/08 12/12/11RibsonGabonowe 1,000,000 1,000,000 12/12/08 33,000 $0.50 12/12/08 12/12/11ExecutiveDirectorsBrad 12/12/08Sampson 1,000,000 1,000,000 37,000 $0.44 01/02/09 01/02/12Brad 12/12/08Sampson 1,000,000 44,000 $0.55 01/02/10 01/02/13Brad 12/12/08Sampson 1,000,000 1,000,000 167,100 $0.35 12/12/08 01/11/13Other key management personnelPaulFulton 500,000 500,000 29/04/09 83,600 $0.375 29/04/09 01/11/13Ross 01/11/12Gibbins 250,000 31/12/08 19,500 $0.26 1/11/09Ross 01/11/13Gibbins 250,000 31/12/08 21,000 $0.32 1/11/10Ross 01/11/13Gibbins 250,000 250,000 30/06/09 21,000 $0.375 30/06/09Christian 01/11/13Heili 250,000 250,000 30/06/09 21,000 $0.375 30/06/09Fred 01/11/13Nhiwatiwa 250,000 250,000 30/06/09 21,000 $0.375 30/06/09Shares Issued on Exercise of Compensation OptionsOptions exercised during the year that were granted as compensationin prior periods. No. of Ordinary Amount Paid Amount Unpaid Shares Issued per Share per ShareOther key managementpersonnelQuinton Hills 500,000 30 cents 0Options value as a portion of total remuneration Options Granted Total Remuneration as Part of Represented by Options Options Remuneration Options Exercised Lapsed $ % $ ($)Non-ExecutiveDirectorsGordon Galt 0 0% 0 0Morrice 0 0% 0 79,000CordinerRibson 33,000 43% 0 0GabonoweJeremy Read 33,000 43% 0 118,500John Shaw 0 0% 0 0ExecutiveDirectorsBrad Sampson 225,154 37% 0 0Other key management personnelPaul Fulton 330,038 56% 0 0Ross Gibbins 58,320 27%Christian 125,812 0 0Heili 33%Fred 41,075 0 0Nhiwatiwa 18%Meetings of DirectorsDuring the financial year, twelve (12) meetings of directors wereheld. Attendances by each director during the year were as follows: Directors' Meetings Number eligible to attend Number attendedNon- Executive DirectorsGordon Galt 12 12Morrice Cordiner 12 10Ribson Gabonowe 12 10Jeremy Read 12 11John Shaw 12 12Executive DirectorsBrad Sampson 12 12As well as formal meetings of directors, executive and non-executivedirectors are in frequent communication by way of telephone.Indemnifying OfficersThe Company has agreed to indemnify the Directors and Officers of theCompany against all liabilities to another person (other than theCompany) that may arise from their position as Directors and Officersof the Company. This does not include such liabilities that arisefrom conduct involving a wilful breach of duty by the officers or theimproper use by the officers of their position or of information togain advantage for themselves or someone else or to cause detrimentto the Company. The liabilities insured include legal costs that maybe incurred in defending civil or criminal proceedings that may bebrought against the officers in their capacity as officers ofentities in the Group, and any other payments arising fromliabilities incurred by the officers in connection with suchproceedings. A premium has been paid to cover Directors and Officersof the Consolidated Group.OptionsAt 30 June 2009 there were 35,660,569 (2008: 10,015,525) unissuedordinary shares of Discovery Metals Limited for which options wereoutstanding as detailed at Note 17 of the Financial Statements.Proceedings on Behalf of CompanyNo person has applied for leave of Court to bring proceedings onbehalf of the Company or intervene in any proceedings to which theCompany is a party for the purpose of taking responsibility on behalfof the Company for all or any part of those proceedings.The Company was not a party to any such proceedings during the year.Non-audit ServicesThe board of directors, in accordance with advice from the auditcommittee, is satisfied that the provision of non-audit servicesduring the year is compatible with the general standard ofindependence for auditors imposed by the Corporations Act 2001. Thedirectors are satisfied that the services disclosed below did notcompromise the external auditor's independence for the followingreasons:* all non-audit services are reviewed and approved by the audit committee prior to commencement to ensure they do not adversely affect the integrity and objectivity of the auditor; and* the nature of the services provided do not compromise the general principles relating to auditor independence in accordance with APES 110: Code of Ethics for Professional Accountants set by the Accounting Professional and Ethical Standards Board.There were no fees for non-audit services paid or payable to theexternal auditors during the year ended 30 June 2009.INCOME STATEMENTFor The Year Ended 30 June 2009 CONSOLIDATED GROUP PARENT ENTITY Note 2009 2008 2009 2008 $ $ $ $Revenues 3 553,065 817,612 1,478,530 1,486,024Compliance (754,717) (819,256) (1,030,977) (645,952)expensesDepreciation 10and (69,463) (70,230) (13,092) (22,853)amortisationExploration 11expenditure (700,000) (49,990) (700,000) (49,990)written offLegal (188,659) (116,625) (183,518) (116,043)expensesRent (168,527) (140,506) (131,598) (107,140)Salaries and (1,520,237) (1,549,007) (1,313,729) (1,470,359)consultantsTravel (287,467) (141,055) (266,224) (122,542)expensesShare based (895,480) (1,171,360) (854,405) (1,066,360)paymentsInterest (32) (433) (32) -expensesGain/(Loss)on foreign (383) 22,612 (383) -currencyOther (405,000) (392,652) (218,461) (166,266)expensesProfit/(loss)before income (4,436,900) (3,610,890) (3,233,889) (2,281,481)tax expenseIncome tax 5 0 0 0 0expenseProfit/(loss)attributableto members of (4,436,900) (3,610,890) (3,233,889) (2,281,481)theConsolidatedGroupBasicearnings per 7share (3.07) (2.98)(cents pershare)Dilutedearnings per 7share (3.07) (2.98)(cents pershare)BALANCE SHEETAs At 30 June 2009 CONSOLIDATED GROUP PARENT ENTITY Note 2009 2008 2009 2008ASSETS $ $ $ $CURRENTASSETSCash & cash 8 8,732,079 5,526,526 5,934,808 5,442,948equivalentsTrade & 9other 435,999 393,411 166,663 129,477receivablesTOTALCURRENT 9,168,078 5,919,937 6,101,471 5,572,425ASSETSNON-CURRENTASSETSPlant and 10 511,864 426,366 19,685 16,778equipmentExploration 11 22,828,658 12,273,715 - 700,000expenditureOther 12financial - - 28,306,852 576assetsRelated 13 - - - 14,498,883party loansIntangible 14 - 481 - 481assetsTOTALNON-CURRENT 23,340,523 12,700,562 28,326,537 15,216,718ASSETSTOTAL 32,508,601 18,620,499 34,428,008 20,789,143ASSETSCURRENTLIABILITIESTrade & 15other 1,372,269 1,308,696 370,502 246,436payablesShort-term 16 157,369 23,289 85,163 23,289provisionsTOTALCURRENT 1,529,638 1,331,985 455,665 269,725LIABILITIESTOTAL 1,529,638 1,331,985 455,665 269,725LIABILITIESNET ASSETS 30,978,963 17,288,514 33,972,343 20,519,418EQUITYIssued 17 43,696,900 27,864,491 43,696,900 27,864,491capitalReserves 18 3,201,966 907,026 2,568,956 1,714,551Accumulated 19 (15,919,903) (11,483,003) (12,293,513) (9,059,624)lossesTOTAL 30,978,963 17,288,514 33,972,343 20,519,418EQUITYSTATEMENT OF CHANGES IN EQUITYFor The Year Ended 30 June 2009 Issued Accumulated Option Foreign Total Share (Losses) Reserve CurrencyCONSOLIDATED Capital TranslationGROUP Reserve2008 $ $ $ $ $Balance at 30 16,564,837 (11,379,788) 648,191 206,445 6,039,685June 2007 (asreported prioryear)Prior period adjustment 3,507,675 - (388,112) 3,119,563(refer Note 32)Restated Balance 16,564,837 (7,872,113) 648,191 (181,667) 9,159,248at 1 July 2007Currency - - - 435,987 435,987TranslationDifferences(Loss) for the - (3,610,890) - - (3,610,890)year(refer Note32)Prior period adjustment - - (1,166,845) (1,166,845)2008(refer Note 32)Shares issued 11,948,185 - - - 11,948,185during the yearTransaction costs (648,531) - - - (648,531)for shares issuedCost of share - - 1,171,360 - 1,171,360based paymentsRestated Balance 27,864,491 (11,483,003) 1,819,551 (912,525) 17,288,514at 30 June 20082009CurrencyTranslation 1,399,460 1,399,460Differences(Loss) for the (4,436,900) (4,436,900)yearShares issued 16,257,115 16,257,115during the yearTransaction costs (424,706) (424,706)for shares issuedCost of share 895,480 895,480based paymentsBalance as at 30 43,696,900 (15,919,903) 2,715,031 486,935 30,978,963June 2009PARENTENTITY2008Balance at 16,564,837 (9,897,706) 648,191 0 7,315,32230 June2007 (asreportedprior year)Prior period adjustment (refer Note 3,119,563 - - 3,119,56332)Restated 16,564,837 (6,778,143) 648,191 0 10,434,885Balance at1 July 2007(Loss) for - (2,281,481) - - (2,281,481)the yearShares 11,948,185 - - - 11,948,185issuedduring theyearTransaction (648,531) - - - (648,531)costs forsharesissuedCost of - - 1,066,360 - 1,066,360share basedpaymentsRestated 27,864,491 (9,059,624) 1,714,551 0 20,519,418Balance at30 June20082009(Loss) for (3,233,889) (3,233,889)the yearSharesissued 16,257,115 16,257,115during theyearTransactioncosts for (424,706) (424,706)sharesissuedCost ofshare based 854,405 854,405paymentsBalance asat 30 June 43,696,900 (12,293,513) 2,568,956 0 33,972,3432009CASH FLOW STATEMENTFor The Year Ended 30 June 2009 CONSOLIDATED GROUP PARENT ENTITY Note 2009 2008 2009 2008 $ $ $ $CASH FLOWSFROMOPERATINGACTIVITIESReceiptsfrom - -customersGST receipts 118,635 169,914 118,635 169,914Payments tosuppliers (3,241,786) (3,196,360) (1,914,771) (2,778,070)andemployeesInterest 545,206 552,784 270,671 1,276,879receivedInterest (32) (1,336) (32) (903)paidRefunds 7,859 14,735 7,859 14,735receivedNet cashused in (2,570,118) (2,460,263) (1,517,638) (1,317,445)operatingactivities 26CASH FLOWSFROMINVESTINGACTIVITIESPayments for (11,254,943) (5,391,136) 0 -explorationPurchase ofplant and (201,255) (417,341) (15,518) (11,424)equipmentInvestmentin - - (13,807,393) -subsidiarycompaniesProceedsfrom - 359,370 - 359,370disposal ofassetsProceedsfrom sale of - - - -investmentsNet cashused in (11,456,198) (5,449,107) (13,822,911) 347,946investingactivitiesCASH FLOWSFROMFINANCINGACTIVITIESProceedsfrom issue 16,257,115 11,948,185 16,257,115 11,948,185of sharesShare Issue (424,706) (648,531) (424,706) (648,531)costsLoans madeto - - 0 (7,431,658)subsidiarycompaniesNet cashprovided by 15,832,409 11,299,654 15,832,409 3,867,996financingactivitiesNet increase(decrease) 1,806,093 3,990,284 491,860 2,898,497in cash heldCash at thebeginning of 5,526,526 2,867,100 5,442,948 2,544,451the periodEffect ofexchange 1,399,460 (730,858) - -ratesCash at the 8end of the 8,732,079 5,526,526 5,934,808 5,442,948periodFor further information contact:Discovery Metals LimitedBrad SampsonManaging DirectorTel: +617 3218 0200Fairfax I.S. PLCEwan Leggat / Laura LittleyTel: +44 (0)20 7598 5368Conduit PRJos Simson/Emily FentonTel: +44 (0) 20 7429 6603Mobile: +44 (0)7899 870 450Further information on the Company is available on its website:www.discoverymetals.com.au---END OF MESSAGE---This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 18.09.2009 - 07:19 Uhr
Sprache: Deutsch
News-ID 5950
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