2015 Annual On 1 April 2012 the Company entered into a lease...

2015 Annual

On 1 April 2012 the Company entered into a lease agreement with Okewood Pty Ltd, a company owned by Tony Sage, for the lease of 32 Harrogate Street, West Leederville WA 6007, as varied by a deed of variation dated 22 June 2015 (Lease Agreement). The term of the Lease Agreement is 1 April 2012 to 31 March 2020 with an option to extend. The lease is based on an area of 1,148m² at a rent of $459,200 (excluding GST) per annum, subject to an annual CPI increase, with variable outgoings and parking charged separately at market rates.

Perth Fashion Festival Pty Ltd, Okewood Pty Ltd and Okewood Pty Ltd trading as Perth Glory Football Club are entities controlled by Tony Sage. During the year ended 30 June 2016 a total amount of $54,473 (30 June 2015: $64,950) was paid to Okewood Pty Ltd for a corporate box and events of the Perth Glory Football Club. During the year ended 30 June 2016 a total amount of $7,887 (30 June 2015: $14,879) was paid to Perth Fashion Festival Pty Ltd for events held by the Perth Fashion Festival

Executive Director On 26 September 2013, the Company entered into a consultancy contract with the Executive Chairman, Tony Sage for a period of 3 years from 28 August 2013. Pursuant to the terms of the contract, Mr Sage is paid an annual fee of $700,000 per annum (plus GST)
Upon expiry of the Executive Chairman contract on 28 August 2016, the Company has entered into a new 3 year consultancy contract. The key terms of the new contract are consistent with those of the existing one with the exception of the inclusion of an incentive structure of 10-20%, subject to Remuneration Committee approval, which is dependent on the achievement of key performance milestones.

Share based payments (166,587)
Directors remuneration and employee benefits expenses (1,510,483)
Consulting and professional services (934,258)
Occupancy expenses 3(d) (1,006,602)
Travel and accommodation (203,119)
Depreciation and amortisation expense 3(c) (615,856)
Other expenses 3(e) (704,409)

Profit/(loss) before income tax (30,799,674)

Risk Exposure The Group’s exposure to risk is discussed in more detail in note 26. An impairment allowance of $10,866,384 in the current year (30 June 2015: $10,847,200) has been raised in relation to loans past due or where there is doubt over the full recovery of the receivable.

On 22 October 2014, the Company announced that it had entered into a US$20 million funding agreement with Timis Mining (Agreement) to assist it with the acquisition of London Mining’s Marampa Iron Ore Mine (Mine) from the administrator of London Mining PLC. The Agreement was divided into two parts, being (a) US$8 million Bridging Finance loan and US$12 million for the purchase of a royalty (refer to Note 8(c)). The bridging finance loan of US$8 million was repayable in October 2015 and incurs interest of 3 month US LIBOR (London interbank offered rate) + 6%. This loan was provided for in full as at 30 June 2016