Axiom Mining 2015 Annual Report

COMPANY FINANCIAL REPORT

Notes to the financial statements for the year ended 30 September 2015

97

19. Share capital (continued)

d. Capital management The Company’s primary objectives when managing capital is to safeguard the Company’s ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders, by pricing products and services commensurately with the level of risk and by securing access to finance at a reasonable cost. The Company actively and regularly reviews and manages its capital structure to maintain a balance between the higher shareholder returns that might be possible with higher levels of borrowings and the advantages and security afforded by a sound capital position, and makes adjustments to the capital structure in light of changes in economic conditions. Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.

2 . Note to statement of cash flows Reconciliation of loss from operations to cash used in operations:

2015 AU$000

2014 AU$000

(10,390)

(14,845)

Loss for the year Adjustments for: Depreciation Interest expense

66

57 28

189 902

AXIOM MINING LIMITED ANNUAL REPORT 2015

Share based payments expense

703

Impairment of amounts due from subsidiaries Fair value loss on embedded derivative liability

3,778

4,837

86

–

(5,369)

(9,220)

– Decrease/(increase) in prepayment and other receivables – Increase/(decrease) in trade and other payables

40

(199) (104)

953

– Decrease in provisions

17

55

Cash used in operations and net cash flows used in operating activities

(4,359)

(9,468)

21. Commitments

Operating lease commitments The Company leases its office premise under operating lease arrangements. Leases for the property are negotiated for two years. At 30 September 2015, the Company had total future minimum lease payments under non-cancellable operating leases falling due as follows:

2015 AU$000

2014 AU$000

15

41 10 51

Within 1 year

After 1 year but within 5 years

–

15