Statement of Financial Capability

Statement of financial capability
For exploration licences and assessment leases,

grant, transfers and renewals for Minerals1 and
Petroleum1 applications (excluding Small Scale
Titles)
November 2015
The Department of Industry, Division of Resources & Energy (DRE) assesses applications for activities
to explore and extract the resources of the State of NSW for the benefit of the people of NSW.
To ensure that exploration licences and assessment leases are issued to individuals or companies that
meet the objects of the Mining Act 1992 or the Petroleum (Onshore) Act 1991 the DRE requires
certain information in relation to individuals and companies making an application.
As part of the assessment to grant/transfer/renew, the DRE requires a statement regarding the
financial capability of the applicant or in the case of a transfer, the transferee only.
The persons that are required to provide this information are:
in the case of a natural person the applicant/transferee
in the case of a Company or Related Body Corporate1 the Company Secretary, Director1 or
Officer1.
Applicants or transferees must demonstrate to the satisfaction of the Minister for Industry Resources
and Energy that they possess, or have the ability to secure, the required funding to meet the
anticipated expenditure for the term of the work program, in addition to commitments and liabilities on
all other titles held or pending in NSW.
Applicants or transferees are required to submit the relevant information outlined in Sections 1, 2 and
3 with their application.
We have included check sheets and templates to help you provide us with information about your
financial history and capability.
Contact
If you require further information or assistance please phone the Titles team on (02) 4931 6500 or
email imer.enquiries@industry.nsw.gov.au.
1 Refer to definitions section at back of this document

V4: 4 November 2015
State of New South Wales through Department of Industry, Skills and Regional Development 2015. This publication is copyright. You may
download, display, print and reproduce this material provided that the wording is reproduced exactly, the source is acknowledged, and the
copyright, update address and disclaimer notice are retained.
First published: September 2015
2 NSW Resources and Energy, v4: 4 November 2015
1. Current exploration licences held in NSW

All applicants should complete the table below to provide us with information about:
all NSW exploration licences and assessment leases held or pending by the applicant or transferee
(in the case of a transfer application) and any Related Body Corporates 1 and
the estimated financial commitments on the work programs for each exploration licence and
assessment lease (either pending or held) overlapping the term of the application being applied for.
Table 1.1 Applicants current exploration licences

NSW Exploration Licence
Estimated Financial Commitments
Click here to enter text.
2. Information about the applicants financial history

In accordance with the Mining Act 1992 or the Petroleum (Onshore) Act 1991, the Division requires
relevant information to support a grant, renewal or transfer, in order to assess an applicants financial
history.
To provide us with this information, please complete the relevant check sheets in this section.
Who should complete Check sheet 2A

This check sheet collects information about the individuals associated with the application.
All applicants (natural persons and Officers of Companies) should complete this check sheet.
Who should complete Check sheet 2B

This check sheet collects information about Companies who are an applicant/transferee.
Officers of Companies should complete and sign this check sheet on behalf of their Company.
Instructions for completing the check sheets
If you answer Yes to any of the following questions, please provide a separate statement
setting out the specific circumstances of the history and state reasons why you think those
circumstances should not prevent you from holding a title.
You must include the following words at the end of your statement:
I certify that the information provided is true and correct to the best of my knowledge and
belief. I understand under the Crimes Act 1900 NSW Part 5A, that knowingly, or recklessly,
giving false or misleading information is a serious offence; and under the Mining Act 1992
s378c and under the Petroleum (Onshore) Act 1991 s135, any person who provides
information that the person knows to be false or misleading is guilty of an offence, for which
they may be subject to prosecution.
Please sign the certification at the end of the check sheet.
If you answer No to all of the questions, please sign the check sheet and proceed with your
application.
Check sheet 2A: Financial history of natural persons or Officers of a

Company
All applicants should complete Check sheet 2A. The types of matters in Check sheet 2A refer to
offences that only natural persons can commit. Please answer these questions in relation to:
the applicant, when the applicant is a natural person, or

all the Officers of the Company, when the applicant is a company.
Has the applicant/transferee, whether a natural person or Officer of a Company:
Been convicted under the Proceeds of Crime Act 2002 (Commonwealth) or under the Crimes
Legislation Amendment (Serious and Organised Crime) Act 2010 (Commonwealth), or for offences
of money laundering, terrorism financing or corruption under any Commonwealth or State Act, or
Yes
Been convicted in New South Wales or elsewhere for a serious offence 1 involving fraud or
dishonesty that was recorded in the last 10 years?
Yes
No
During the last 3 years, been an undischarged bankrupt or applied to take the benefit of any law
for the relief of bankrupt or insolvent debtors, compounded with his or her creditors or made an
assignment of his or her remuneration for their benefit?
Yes
No
During the last 3 years, been a director or officer of a company that is the subject of a winding up
order or for which a receiver, receiver and manager, controller or administrator has been
appointed under the Corporations Act 2001 (Commonwealth)?
Yes
No
Been convicted in New South Wales or elsewhere for an offence relating to the management of a
company, recorded within the last 5 years?
Yes
No
No
During the last 3 years been disqualified from holding office in or been concerned in the
management of a company under any law of this or any other State or Territory or the
Commonwealth?
Yes
No
I certify that the information provided is true and correct to the best of my knowledge and belief. I
understand under the Crimes Act 1900 NSW Part 5A, that knowingly or recklessly giving false or
misleading information is a serious offence; and under the Mining Act 1992 s378c and under the
Petroleum (Onshore) Act 1991 s135, any person who provides information that the person knows to
be false or misleading is guilty of an offence, for which they may be subject to prosecution.
Name:
Signature
:
Position:
Date:
Check sheet 2B: Financial history of a Company

Check sheet 2B only applies to applicants who are a Company. This check sheet must be
completed and signed by an Officer of the Company.
Does the Company currently have, or has it had within the last 3 years, an Officer1 within the
Company who has been an officer of any company that has been the subject of a winding up order or
for which a controller or administrator has been appointed?
Yes
No
Has the applicant Company or a Related Body Corporate 1 been the subject of a winding up order or
has it had a receiver, receiver and manager, controller or administrator appointed?
Yes
No
I certify that the information provided is true and correct to the best of my knowledge and belief.
I understand under the Crimes Act 1900 NSW Part 5A, that knowingly or recklessly giving false or
misleading information is a serious offence; and under the Mining Act 1992 s378c and under the
Petroleum (Onshore) Act 1991 s135, any person who provides information that the person knows to
be false or misleading is guilty of an offence, for which they may be subject to prosecution.
Name:
Signature
:
Position:
Date:
Additional information
If you have answered Yes to any of the questions in Check sheet 2A or 2B, please ensure you attach
a separate statement setting out the specific circumstances of the history and stating reasons why you
think those circumstances should not prevent you from holding a title.
NOTE: The person providing the separate statement must include a certification as to the information
being true and correct in the following terms:
I certify that the information provided is true and correct to the best of my knowledge and
belief. I understand under the Crimes Act 1900 NSW Part 5A, that knowingly or recklessly
giving false or misleading information is a serious offence; and under the Mining Act 1992
s378c and under the Petroleum (Onshore) Act 1991 s135, any person who provides
information that the person knows to be false or misleading is guilty of an offence, for which
they may be subject to prosecution.
3. Statement of financial capability

This section outlines the information required to support a grant, renewal or transfer in accordance
with the Mining Act 1992 or the Petroleum (Onshore) Act 1991 for the assessment of the applicant or
transferees (in the case of a transfer) financial capability to carry out the proposed work programs in
addition to commitments and liabilities on all other titles held or pending in NSW.
Use one or more of the templates in Section 3 to provide us with the required information.
The applicants required to provide the statement of financial capability are:
in the case of a natural person the applicant/transferee
in the case of a Company or Related Body Corporate1 the Company Secretary, Director1 or
Officer1 of the applicant or transferee.
NOTE: ASX Listed Companies or Related Body Corporates that meet the criteria can complete and
submit financial capability statements from:
Section 3A only, or
Sections 3B and 3C only, or
Section 3D only (a Section 3D Statement can only be used by petroleum or mineral explorers).
Which Section/s should you complete?

Use the tables on the next page to identify which section/s to complete depending on your application
type.
Table 3.1: Guide for petroleum explorers

Petroleum explorers
Applicant or transferee (in the case of a transfer)
ASX Listed Companies or Related Body Corporates1*
Section/s to be completed
3A
3B
3C
3D
ASX Listed Company or Related Body Corporates1 applying for or

holding more than 20 blocks in NSW*
holding 20 blocks or less in NSW*
Natural person applying for or holding more than 20 blocks in

NSW
Natural person applying for or holding 20 blocks or less in NSW

Unlisted Companies applying for or holding more than 20 blocks
in NSW
Unlisted Companies applying for or holding 20 blocks or less in

NSW
Table 3.2: Guide for mineral explorers

Mineral explorers

holding 10 or more titles in NSW*
3A
3B
3C

holding less than 10 titles in NSW*
Natural person applying for or holding 10 or more titles in NSW
Natural person applying for or holding less than 10 titles in NSW

Unlisted Companies applying for or holding 10 or more titles in
NSW
Unlisted Companies applying for or holding less than 10 titles in
NSW
3D
Table 3.3: Guide for coal explorers

Coal explorers

Natural person
Unlisted Companies
*ASX Listed Companies or Related Body Corporates can elect to complete and submit financial capability statements
from Section 3A only, or Sections 3B and 3C only.
Section 3A: Financial capability statement for an ASX listed company or

Related Body Corporate only
The Section 3A template can only be used by ASX Listed Companies or Related Body Corporates 1.
This template should not be used by natural persons or Unlisted Companies.
NOTE: ASX Listed Companies or Related Body Corporates who elect to complete and submit a
Section 3A statement, do not need to submit Sections 3B, 3C or 3D.
SECTION 3A STATEMENT
[Entity name]
[Address]
[City State Postcode]
The Directors of [Entity Name] confirm that [Entity Name] is currently listed on the Australian Stock Exchange. [Entity
Name] was listed on [insert date] and the ASX code for [Entity Name] is [insert ASX code].
The Directors of [Entity Name] are responsible for determining the expenditure required to fund the work program as set
out in this application along with any other commitments of [Entity Name].
The Directors confirm that they have reasonable grounds to believe that [Entity Name ASX listed company] will be
able to finance the planned expenditure for the term of the work program.
In establishing their reasonable grounds that [Entity Name ASX listed company] will be able to finance the planned
expenditure for the term of the work program they have had regard to the following [Entity Name ASX listed company]
documents all the following criteria must be met:
1.all other current and proposed commitments of [Entity Name ASX listed company] (statement attached)* and
2.
statement of current assets and liabilities* and
3.
the most recent financial report to the Australian Stock Exchange (document attached) and
4. any material disclosures made to the Australian Stock Exchange since the publishing of the most recent financial
report (statement/s attached) and
5.
the entitys ability to raise additional capital or attract farm-in agreements
If the applicant is a wholly owned subsidiary of [Entity Name ASX listed company] or a company where [Entity Name
ASX listed company] owns a majority of the shares (if as the applicant or transferee you are an ASX listed company
please delete this section as it is not applicable to you) all the following criteria must be met:
1.
A copy of the current deed of cross guarantee with [Entity Name ASX listed company] and
2.
all other current and proposed commitments of [Entity Name ASX listed company] (statement attached)* and
3.
statement of current assets and liabilities of [Entity Name ASX listed company] * and
4.
the most recent financial report to the Australian Stock Exchange of [Entity Name ASX listed company]
(document attached) and
5.
any material disclosures made to the Australian Stock Exchange since the publishing of the most recent financial
report of [Entity Name ASX listed company] (statement/s attached) and
6.
the entitys ability to raise additional capital or attract farm-in agreements.
Signed in accordance with a resolution of the Directors made pursuant to Section 298(2) of the Corporations Act 2001.
I/We certify that the information provided in this statement is true and correct to the best of my/our knowledge and belief.
I/We understand that under the Crimes Act 1900 Part 5A, that knowingly or recklessly giving false or misleading
information is a serious offence and under the Mining Act 1992 s378c and under the Petroleum (Onshore) Act 1991
s135, any person who provides information that the person knows to be false or misleading is guilty of an offence, for
which they may be subject to prosecution.
Signed
______________________________ [Insert Name]

Director/Officer
Signed
______________________________ [Insert Name]

Chief Financial Officer
Note: Both signatories required
*Any statements required must be signed no more than 60 days before the application date unless
that statement forms part of the most recent financial reporting to the Australian Stock Exchange.
Section 3B: Financial capability statement for an ASX Listed Company,

Related Body Corporate, Unlisted Company or natural person
Section 3B can be used by applicants who meet any of the following criteria:
an ASX Listed Company or Related Body Corporate1 (who has chosen this financial capability
assessment method)
o applying for or holding more than 20 blocks in NSW for Petroleum or
o applying for or holding more than 10 titles in NSW for Minerals or
o
applying for Coal.
a natural person or Unlisted Company

o applying for or holding more than 20 blocks in NSW for Petroleum or
o applying for or holding 10 or more titles in NSW for Minerals or
o applying for Coal.
NOTE: If you are completing a Section 3B statement, you must also submit Section 3C (accountants
report).
SECTION 3B STATEMENT
[Entity name]
[Address]
[City State Postcode]
I am the [applicant in the case of a natural person or Director in the case of a company] of [Entity Name].
(In the case of a natural person delete if not applicable) I am responsible for determining the expenditure
required to fund the work program as set out in this application and any other commitments of [Entity Name].
(In the case of a company delete if not applicable) The Director/s of [Entity Name] are responsible for
determining the expenditure required to fund the work program as set out in this application and any other
commitments of [Entity Name].
I/We have prepared a cashflow forecast to support my/our assessment, which includes the proposed work
program expenditure and any proposed financing which is in place or is planned to be secured to meet the work
program, prepared on the basis of our best-estimate assumptions as at the date of this application.
I/We confirm that as at the date of the application I/we have reasonable grounds to believe that [Entity Name] will
be able to finance the planned expenditure for the term of the work program.
I/We certify that the information provided in this application is true and correct. I/We understand that under the
Crimes Act 1900 Part 5A, knowingly or recklessly giving false or misleading information is a serious offence; and
under the Mining Act 1992 s378c and under the Petroleum (Onshore) Act 1991 s135, any person who provides
information that the person knows to be false or misleading is guilty of an offence, for which they may be subject
to prosecution.
Signed
Date]
_____________________________[Insert Name]
Applicant/Director / Chief Financial Officer (whichever is applicable)
Section 3C: Accountants report

An accountant may use this template to submit a report for an applicant that meets any of the following
criteria:
assessment method)
o
applying for or holding more than 20 blocks in NSW for Petroleum or
applying for or holding 10 or more titles in NSW for Minerals or
applying for Coal.
a Natural Person or Unlisted Company
applying for or holding more than 20 blocks in NSW for Petroleum or
applying for or holding 10 or more titles in NSW for Minerals or

o
applying for coal.
The accountants report on the applicants financial capability must be signed by a person who:
is not a director, other office holder, or employee of the applicant or a related body corporate of the
applicant
has no financial interest in the applicant, and
holds a certificate of public practice.
Note: An accountants report must be completed if you elect to submit a Section 3B statement.
SECTION 3C ACCOUNTANTS REPORT

[Entity Name]
The Directors
[Entity Name]
[Entity address]
Conclusion
Based on our review, which is not an audit, nothing has come to our attention which causes us to believe that, in
all material respects:
as at
, managements best-estimate assumptions do not provide reasonable grounds for the
cashflow forecast which supports [Name of Entity]s assessment of the expenditure and funding of the work
program as set out in the application and the cashflow forecast has not been prepared on the basis of these
assumptions; and
the cashflow forecast does not support the Directors Statement (Annexure A of the application) that [Entity
name] will be able to finance the planned expenditure for the next 12 months.
Basis for our conclusion

We have performed a limited assurance engagement with respect to the cashflow forecast prepared by [Entity
Name] to support their Financial Capability Statement dated [date] to support title [grant, renewal or transfer in
accordance with the Mining Act 1992 or the Petroleum (Onshore) Act 1991 include relevant details].
Directors responsibility for the Statement
The Directors of [Entity Name] are responsible for the preparation of the cashflow forecast supporting their
statement as at [date] in relation to the financial capability of the entity at that date to fund the planned
expenditure for the term of the work program, in addition to commitments and liabilities on all other titles held or
pending any Australian jurisdiction.
This responsibility includes such controls as the Directors determine are necessary to enable the preparation of a
forecast that is free from material misstatement, whether due to fraud or error.
Accountants responsibility
Our responsibility is to express a limited assurance conclusion on the Statement based on our review. We have
conducted our engagement in accordance with the Standard on Assurance Engagements ASAE 3450 issued by
the Australian Auditing and Assurance Standards Board. These standards require that we comply with relevant
ethical requirements relating to assurance engagements.
Our limited assurance procedures consisted of making enquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review procedures. A limited assurance engagement is
substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and
consequently does not enable us to obtain reasonable assurance that we would become aware of all significant
matters that might be identified in a reasonable assurance engagement. Accordingly, we do not express an audit
opinion.
Because of the subjective nature of information required to make the Directors Statement, the persuasiveness of
the evidence available is limited. Prospective information is information about events and/or actions that have not
yet occurred and may not occur. It reflects assumptions about future events and is subject to future changes in
the business and economic conditions. Whilst evidence is available to support the assumptions on which the
directors opinion is based, such evidence is future orientated and speculative in nature. As a consequence,
actual results are likely to be different from the information on which our conclusion is based, since anticipated
events frequently do not occur as expected or assumed and the variations between the prospective opinion and
the actual outcome may be significant.
Yours sincerely
__________________________
[Name] [Position]
Date]
Section 3D: Applicants report on their financial capability

This section can only be used by petroleum and mineral explorers that meet any of the following
criteria:
assessment method)
o applying for or holding 20 blocks or less in NSW for Petroleum or
o
an Unlisted Company
o
applying for or holding 10 titles or less in NSW for Minerals
applying for or holding less than 10 titles in NSW for Minerals
a natural person
o
applying for or holding less than 10 titles in NSW for Minerals.
NOTE: If you meet the above criteria and elect to submit a Section 3D statement, you are not required
to submit Sections 3A, 3B or 3C.
SECTION 3D STATEMENT
I am the [applicant in the case of a natural person or Director in the case of a company] of [Entity Name].
(In the case of a natural person delete if not applicable) I am responsible for determining the expenditure
required to fund the work program as set out in this application and any other commitments of [Entity Name]
(In the case of a company delete if not applicable) The Director/s of [Entity Name] are responsible for
determining the expenditure required to fund the work program as set out in this application and any other
commitments of [Entity Name].
I/We have prepared a cash flow forecast to support my/our assessment, which includes the proposed work
program expenditure and any proposed financing which is in place or is planned to be secured to meet the work
program, prepared on the basis of our best-estimate assumptions as at the date of this application.
I/We confirm that as at the date of the application I/we have reasonable grounds to believe that [Entity Name] will
be able to finance the planned expenditure for the term of the work program.
In establishing reasonable grounds that [Entity Name] will be able to finance the planned expenditure for the
term of the work program I/we have had regard for the following:
1.
2.
3.
the work program (copy attached)

all other current and proposed commitments of [Entity Name] (Statement attached)*
a statement of current assets and liabilities (attached)*
I/We, as at the date of the application, are not aware of any other financial commitments either in NSW or outside
NSW which may negatively impact upon the commitment to complete the term of the work program.
I/We certify that the information provided in this application is true and correct. I/We understand that under the
Crimes Act 1900 Part 5A, that knowingly or recklessly giving false or misleading information is a serious offence;
and under the Mining Act 1992 s378c and under the Petroleum (Onshore) Act 1991 s135, any person who
provides information that the person knows to be false or misleading is guilty of an offence, for which they may be
subject to prosecution.
Signed
_____________________________[Insert name]
Applicant/Director/ Chief Financial Officer (whichever is applicable)
* Any statements required must be signed no more than 60 days before the application date.
Definitions
Term
Meaning
Director
As defined in the Corporations Act 2001

Commonwealth and also includes a person involved in
the management of the affairs of the corporation.
Minerals
As defined in the Mining Regulation 2010 NSW
Minerals application
Limited to applications for:

Exploration licence and assessment lease only refer
to Part 3 and Part 4 of the Mining Act 1992
Officer
Refer to section 9 of the Corporations Act 2001 (Cth)

limited to;
(a) director or secretary of the corporation; or
(b) a person:
(i) who makes, or participates in making, decisions
that affect the whole, or a substantial part, of the
business of the corporation; or
(ii) who has the capacity to affect significantly

the corporation's financial standing;
Petroleum application
Limited to applications for:

Exploration licence, assessment lease or special
prospecting authority refer to Part 3 Division 2, 3 and
4 of the Petroleum (Onshore) Act 1991
Serious offence
an offence committed in New South Wales that is

punishable by imprisonment for life or for a term
of 5 years or more or by a fine of $500,000 or
more, or an offence committed elsewhere than in
New South Wales that if committed in New South
Wales would be an offence so punishable, or
an offence committed under a law of the

Commonwealth that is punishable by
imprisonment for life or for a term of 5 years or
more or by a fine of $500,000 or more.
Related Body Corporate
Is limited to subsections (a) & (b) of section 50 of

the Corporations Act 2001 (Cth)
Definition of current or other proposed

commitments
According to Chartered Accountants Australia for

the purposes of the accounting standards,
entities may recognise liabilities (a present
obligation of the entity arising from past events,
the settlement of which is expected to result in an
outflow of resources embodying economic
Refer to Accounting Standard AASB 101 Presentation

or Financial Statements published by the Australian
Accounting Standards Board
Term
Meaning
benefits to the entity) or provisions (a liability

where the timing or amount of the expected
outflow is uncertain) in their financial statements.
They must also disclose (but do not include in
the statement of financial position/balance sheet)
contingent liabilities which are either possible
obligations whose existence will be confirmed by
future events or present obligations which cannot
be measured reliably or for which it is not
probable that the obligation will be settled).
Definition of current assets and current liabilities
Refer to Accounting Standard AASB 101 Presentation
or Financial Statements published by the Australian
Accounting Standards Board
Current Assets
An entity shall classify an asset as current when:
(a) it expects to realise the asset, or intends to sell or
consume it, in its normal operating cycle;
(b) it holds the asset primarily for the purpose of
trading;
(c) it expects to realise the asset within twelve months
after the reporting period; or
(d) the asset is cash or a cash equivalent (as defined
in AASB 107) unless the asset is restricted from being
exchanged or used to settle a liability for at least
twelve months after the reporting period.
An entity shall classify all other assets as non-current
Current Liabilities
An entity shall classify a liability as current when:
(a) it expects to settle the liability in its normal
operating cycle;
(b) it holds the liability primarily for the purpose of
trading;
(c) the liability is due to be settled within twelve
months after the reporting period; or
(d) it does not have an unconditional right to
defer settlement of the liability for at least twelve
months after the reporting period (see paragraph
73 of AASB101). Terms of a liability that could, at
the option of the counterparty, result in its
settlement by the issue of equity instruments do
not affect its classification.

Statement of Financial Capability

Caricato da

Informazioni sul documento

Descrizione originale:

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Statement of Financial Capability

Caricato da

Copyright:

Formati disponibili

Statement of financial capability

For exploration licences and assessment leases,

in the case of a natural person the applicant/transferee

1 Refer to definitions section at back of this document