Axiom Mining 2015 Annual Report

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AXIOM MINING LIMITED
ANNUAL REPORT 2015
83
COMPANY FINANCIAL REPORT
Notes to the
financial statements
for the year ended 30 September 2015
1. Corporate information
Axiom Mining Limited (the ‘Company’) is a limited liability
company incorporated in Hong Kong. The registered
office of the Company is located at 2303-7 Dominion
Centre, 43-59 Queen’s Road East, Hong Kong, and
the principal place of business is located at Level 6,
15 Astor Terrace, Spring Hill QLD 4000.
The Company’s shares are listed on the Australian
Securities Exchange.
The Company is engaged in investment holdings during
the year.
2. Basis of presentation
Notwithstanding that the Company incurred a net loss
of AU$10,390,000 and reported net cash outflows from
operating activities of AU$4,359,000 for the year ended
30 September 2015, and the Company has convertible
notes with an aggregate principal amount of AU$900,000
as at 30 September 2015, in the opinion of the directors,
the Company will have sufficient working capital to
finance its operations and to meet its financial obligations
as and when they fall due in the foreseeable future after
taking into consideration the following:
–At 30 September 2015, the Company had cash and
cash equivalents of AU$1,170,000.
–Subsequent to the reporting period, on 4 November
2015 the Company announced that it had entered
into a convertible note facility agreement for up to
AU$15,000,000 to project fund the development
of the Isabel Nickel Project through a strategic
partnership with experienced resource venture
capitalist and project incubator InCor Holdings Plc
(‘InCoR’). As part of the agreement, Axiom issued
one secured convertible note with a face value of
AU$5,000,000, convertible to a maximum issue of
13,513,514 fully paid ordinary shares based on a
conversion price of AU$0.37 per share.
Accordingly, the financial statements have been prepared
on the going concern basis.
3. Basis of preparation
The financial statements and notes represent those of
Axiom Mining Limited (the ‘Company’ or ‘Axiom’).
The 2015 consolidated financial statements of Axiom
Mining Limited and its subsidiaries (collectively, the
‘Group’) can be found at mining.
com, which have been prepared in accordance with the
Corporations Act 2001, Australian Accounting Standards
and Interpretations of the Australian Accounting
Standards Board and International Financial Reporting
Standards as issued by the International Accounting
Standards Board, which can be obtained at its
registered office.
These financial statements have been prepared in
accordance with Hong Kong Financial Reporting
Standards (‘HKFRSs’) (which include all Hong Kong
Financial Reporting Standards, Hong Kong Accounting
Standards (‘HKASs’) and Interpretations) issued by the
Hong Kong Institute of Certified Public Accountants (the
‘HKICPA’), accounting principles generally accepted in
Hong Kong and the Hong Kong Companies Ordinance.
These financial statements have been prepared under
the historical cost convention and presented in Australian
dollars (AU$) and all values are rounded to the nearest
thousand except where otherwise indicated.