Ann: Full Year Statutory Accounts, page-2

The independent auditor report does not sound that great 

Material Uncertainty Related to Going ConcernWe draw attention to Note 2 in the financial report, which indicates that the Company incurred a net loss of$3,622,547 during the year ended 30 June 2018. As stated in Note 2, these events or conditions, along withother matters as set forth in Note 2, indicate that a material uncertainty exists that may cast significant doubt onthe Company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.Key Audit MattersKey audit matters are those matters that, in our professional judgement, were of most significance in our auditof the financial report of the current period. These matters were addressed in the context of our audit of thefinancial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion onthese matters.Key audit matter How our audit addressed the key audit matterRelated party transactionsDuring the year, a number of significant related partytransactions undertaken by the Company. The natureof and amount of these transactions are disclosed inNote 22.Given the number of material related partytransactions occurring throughout the period, there isa risk that these transactions are not identified anddisclosed.Our procedures amongst others included:− We reviewed the processes in place to identifyrelated parties and inquired with management andthose charged with governance of anytransactions with these parties during the period;− We reviewed the minutes of meetings of the Boardof Directors for material transactions and sighteddirector resolutions approving all related partytransactions;− We identified related party transactions and on asample basis verified the transactions tosupporting information; and− We assessed the appropriateness of thedisclosures included in Notes 22 to the financialreport.Exploration and Evaluation - $1,250,000(refer to Note 10)Capitalised exploration expenditure is a key auditmatter due to:− The level of judgement required in evaluatingmanagement’s application of the requirements ofAASB 6 Exploration for and Evaluation of MineralResources. AASB 6 is an industry specificaccounting standard requiring the application ofsignificant judgements, estimates and industryknowledge. This includes specific requirements forexpenditure to be capitalised as an asset andsubsequent requirements which must be compliedwith for capitalised expenditure to continue to becarried as an asset; andOur procedures included, amongst others:− Assessing management’s determination of itsareas of interest for consistency with the definitionin AASB 6. This involved analysing the tenementsin which the company holds an interest and theexploration programmes planned for thosetenements.− We agreed to the terms within acquisitionagreements and on a sample basis corroboratedrights to tenure to government registries andrelevant agreements as applicable;