RAND MINING LIMITED - Annual Report 2019

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Rand Mining Limited ABN 41 004 669 658

Annual Report - 30 June 2019

Rand Mining Limited
Contents
30 June 2019
Corporate directory	2
Directors' report	3
Auditor's independence declaration	27
Statement of profit or loss and other comprehensive income	28
Statement of financial position	29
Statement of changes in equity	30
Statement of cash flows	31
Notes to the financial statements	32
Directors' declaration	65
Independent auditor's report to the members of Rand Mining Limited	66
Shareholder information	70

Rand Mining Limited Corporate directory 30 June 2019

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Directors	Otakar Demis - Non-Executive Chairman
	Anthony Billis - Executive Director, Managing Director and Chief Executive Officer
	Gordon Sklenka - Non-Executive Director
Company secretaries	Otakar Demis
	Roland Berzins
Notice of annual general meeting	The annual general meeting of Rand Mining Limited will be held at:
	IBIS Styles Hotel
	45 Egan Street
	Kalgoorlie WA 6430
	on 27 November 2019 at 10.00am
Registered office	Suite G1, 49 Melville Parade
	South Perth WA 6151
	Tel: +61 (8) 9474 2113
	Fax: +61 (8) 9367 9386
Principal place of business	Suite G1, 49 Melville Parade
	South Perth WA 6151
	Correspondence address:
	PO Box 307
	West Perth WA 6872
Share register	Advanced Share Registry Services Limited
	110 Stirling Highway
	Nedlands WA 6009
	Tel: +61 (8) 9389 8033
	Fax: +61 (8) 9262 3723
Auditor	Grant Thornton Audit Pty Ltd
	Central Park
	Level 43, 152-158 St Georges Terrace
	Perth WA 6000
Bankers	Australia and New Zealand Banking Group Limited ('ANZ')
	77 St George's Terrace
	Perth WA 6000
Stock exchange listing	Rand Mining Limited shares are listed on the Australian Securities Exchange (ASX
	code: RND)
Website	www.randmining.com.au
Corporate Governance Statement	The Company’s directors and management are committed to conducting the Group’s
	business in an ethical manner and in accordance with the highest standards of
	corporate governance. The Company has adopted and substantially complies with
	the ASX Corporate Governance Principles and Recommendations (3rd Edition)
	(‘Recommendations’) to the extent appropriate to the size and nature of the Group’s
	operations.
	The Company has prepared a Corporate Governance Statement which sets out the
	corporate governance practices that were in operation throughout the financial year
	for the Company, identifies any Recommendations that have not been followed, and
	provides reasons for not following such Recommendations.
	The Company’s Corporate Governance Statement and policies, approved at the
	same time as the Annual Report, can be found on the Company's website:
	www.randmining.com.au/Corporate-Governance

Rand Mining Limited Directors' report 30 June 2019

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The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group') consisting of Rand Mining Limited (referred to hereafter as the 'Company', 'parent entity' or 'Rand') and the entities it controlled at the end of, or during, the year ended 30 June 2019.

Directors

The following persons were directors of Rand Mining Limited during the whole of the financial year and up to the date of this report, unless otherwise stated:

Otakar Demis - Non-Executive Chairman

Anthony Billis - Executive Director, Managing Director and Chief Executive Officer Gordon Sklenka - Non-Executive Director

Principal activities

The principal activities of the Group during the year were exploration, development and production activities at the Group’s East Kundana Joint Venture tenements.

Dividends

Dividends paid during the financial year were as follows:

A dividend of 10 cents per ordinary share paid to shareholders on 14 September 2018. A special dividend of $1.25 per ordinary share paid to shareholders on 12 October 2018.	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 6,014,848 - 75,185,594 - 81,200,442 -
	81,200,442

Review of operations

The profit for the Group after providing for income tax amounted to $67,388,360 (30 June 2018: $22,103,235).

East Kundana Joint Venture

The East Kundana Joint Venture ('EKJV') is located 25km west north west of Kalgoorlie and 47km north east of Coolgardie.

The EKJV is between Rand Mining Limited ('Rand') (12.25%), Tribune Resources Limited ('Tribune') (36.75%) and GiltEdged Mining Pty. Limited (51%). On 1 March 2014, Gilt-Edged Mining became a wholly owned subsidiary of Northern Star Resources Ltd ('Northern Star').

Rand Mining Limited Directors' report 30 June 2019

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KUNDANA PROJECT Location Map

Note: The Joint Venture deposits are located within the blue shaded area. Other deposits indicated on this map do not belong to either Rand Mining or the Joint Venture.

Rand Mining Limited Directors' report 30 June 2019

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EAST KUNDANA JOINT VENTURE
Deposit Locations
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Note: The Joint Venture deposits are located within the blue shaded area. Other deposits indicated on this map do not belong to either Rand Mining or the Joint Venture.

Mining

Raleigh

During the year ended 30 June 2019, 260,911 tonnes of ore were extracted from stopes on the 6034-TL, 5966-TL, 6136, 6119, 6031, 5983, 5932 to 5847, 5795 and 5614 levels and from development headings on the 6136, 6119, 6085, 6067, 6034, 5972 and 5795 levels at the Raleigh Underground mine. The grade was 8.74 g/t.

Rand’s entitlement to the ore extracted was 32,614 tonnes, compared to 34,810 tonnes the previous year.

Rand Mining Limited Directors' report 30 June 2019

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Mine Claimed Production


Mine Claimed Production		Raleigh
	Mined	Grade	Gold
Year	(t)	(g/t)	(oz)
06/07	239,700	16.6	127,700
07/08	234,400	11.9	89,800
08/09	308,512	12.6	124,962
09/10	339,660	13.4	146,670
10/11	323,182	13.4	139,060
11/12	244,799	14.8	116,921
12/13	179,553	14.2	81,930
13/14	87,948	15.7	44,313
14/15	58,362	11.5	21,706
15/16	155,560	9.5	47,302
16/17	182,860	8.7	50,957
17/18	278,478	7.7	68,822
18/19	260,911	8.7	73,344
Rand's entitlement	32,614	8.7	9,168

The sequence of stoping and mine development in the current LOM plan is shown below, where grey represents all stoping and development completed at 30 June 2019, green expected to be completed by mid 2020, pink expected to be completed by mid 2021, blue expected to be completed by mid 2022, red expected to be completed by mid 2023, purple expected to be completed by mid 2024, orange expected to be completed by mid 2025 and black expected to be completed by mid 2026. The extension of mining beyond mid 2026 depends on the results of the current exploration programme.

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Rubicon/Hornet/Pegasus

During the year ended 30 June 2019, 1,072,429 tonnes of ore were extracted from stopes on the 5995 to 5795 levels and development headings on the 5835 to 5776 levels of the Rubicon ore body; from stopes on the 5865 to 5765 levels and development headings on the 5745 level of the Hornet ore body and from stopes on the 6250 to 6210, 6150, 6130, 6030 and 5990 to 5810, Hera 5828 and Pode 6200 levels and development headings on the 6270, 6250, 5910 to 5730, Hera 5838 to 5808 and 5758 and Pode 6225, 6200, 6093 to 6043 levels of the Pegasus ore body. The grade was 6.04 g/t.

Rand’s entitlement to the ore extracted was 131,373 tonnes, compared to 122,065 tonnes the previous year.

Rand Mining Limited Directors' report 30 June 2019

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Mine Claimed Production


Mine Claimed Production	Rubicon/Hornet/Pegasus
	Mined	Grade	Gold
Year	(t)	(g/t)	(oz)
11/12	78,229	9.6	24,103
12/13	266,113	10.3	88,666
13/14	314,685	11.3	114,454
14/15	605,988	9.5	184,302
15/16	761,483	7.3	178,931
16/17	843,340	7.1	192,487
17/18	996,445	6.2	198,276
18/19	1,072,429	6.0	208,264
Rand's entitlement	131,373	6.0	25,512

The sequence of stoping and mine development in the current LOM plan is shown below, where grey represents all stoping and development completed at 30 June 2019, green expected to be completed by mid 2020, pink expected to be completed by mid 2021, blue expected to be completed by mid 2022, red expected to be completed by mid 2023, purple expected to be completed by mid 2024, orange expected to be completed by mid 2025, black expected to be completed by mid 2026 and magenta expected to be completed by mid 2027. The extension of mining beyond mid 2027 depends on the results of the current exploration programme.

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Processing Since January 2013, all EKJV ore has been processed in mainly monthly campaigns at the Kanowna Plant located near Kalgoorlie.

Rand Mining Limited Directors' report 30 June 2019

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	EKJV Processing at Kanowna and Greenfields	EKJV Processing at Kanowna and Greenfields
Campaign	From	To	Processed
			(t)
KB64	20/07/2018	30/07/2018	52,218
KB65	06/08/2018	24/08/2018	101,172
KB66	04/09/2018	14/09/2018	54,276
GF02	27/09/2018	15/10/2018	50,112
KB67	01/10/2018	15/10/2018	83,267
KB68	06/11/2018	22/11/2018	93,577
GF03	16/11/2018	09/12/2018	56,206
KB69	10/12/2018	24/12/2018	77,467
KB70	03/01/2019	17/01/2019	84,604
KB71	01/02/2019	12/02/2019	58,744
KB72	01/03/2019	20/03/2019	109,717
GF04	17/03/2019	01/04/2019	37,869
KB73	11/04/2019	23/04/2019	71,347
KB74	03/05/2019	20/05/2019	96,525
GF05	07/05/2019	09/03/2019	69,851
KB75	10/06/2019	20/06/2019	62,316
GF06	17/06/2019	03/07/2019	35,332
	01/07/2018	30/06/2019	**1,194,602
	01/07/2017	30/06/2018	899,290
	01/07/2016	30/06/2017	1,005,240
	01/07/2015	30/06/2016	894,474
	01/07/2014	30/06/2015	620,719
	01/07/2013	30/06/2014	423,334
	01/07/2012	30/06/2013	*214,255
	01/07/2011	30/06/2012	-

An additional 65,996 tonnes of Rand and Tribune Group’s share of EKJV ore were processed at the Greenfields Plant.

** An additional 144,230 tonnes of Rand and Tribune Group’s share of EKJV ore were processed at the Greenfields Plant.

During the year ended 30 June 2019, 119,834.263 ounces of gold and 20,567.901 ounces of silver were credited to the Rand and Tribune Group Bullion Account.

Rand’s share of the gold bullion was 29,958.561 ounces compared to 23,687.856 ounces the previous year.

	Rand and Tribune Group Bullion				Rand's share
To	From	Gold	Silver		Gold
		(oz)	(oz)	.	(oz)
01/07/2018	30/06/2019	119,834	20,567		29,958
01/07/2017	30/06/2018	94,751	14,690		23,687
01/07/2016	30/06/2017	109,451	20,728		27,362
01/07/2015	30/06/2016	103,747	20,647		25,937
01/07/2014	30/06/2015	97,420	21,027		24,355
01/07/2013	30/06/2014	79,907	18,854		19,976
01/07/2012	30/06/2013	95,554	17,248		23,888
01/07/2011	30/06/2012	61,864	15,841		15,466
01/07/2010	30/06/2011	64,716	8,639		16,179
01/07/2009	30/06/2010	77,624	12,019		19,406
01/07/2008	30/06/2009	32,478	4,649		8,119
01/07/2007	30/06/2008	59,638	8,048		14,909
01/07/2006	30/06/2007	49,335	6,640		12,333
01/07/2005	30/06/2006	25,599	3,951		6,399

Rand Mining Limited Directors' report 30 June 2019

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Exploration

During the year ended 30 June 2019, surface diamond drilling programmes continued across the EKJV leases with a major focus on Raleigh South and Drake prospects. Underground exploration and resource definition diamond drilling programmes continued across the Rubicon-Hornet-Pegasus and Raleigh South mining complexes. The Falcon mineralised corridor has been traced for over 1.5 kilometres and remains open to north and south with extensional and in-fill resource definition drilling underway from both platforms.

Details have been reported in the EKJV Quarterly Exploration Reports released to ASX on 7 November 2018, 30 January 2019, 18 April 2019 and 24 July 2019.

Overview of EKJV Projects

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Rand Mining Limited Directors' report 30 June 2019

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The exploration effort resulted in revised JORC compliant reserve and resource estimates released to the ASX on 5 August 2019.

Rand Mining Limited Directors' report 30 June 2019

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Drill hole intercepts at Raleigh

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Rand Mining Limited Directors' report 30 June 2019

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Golden Hind Resource Model

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Drill hole intercepts at Pegasus, Rubicon and Hornet

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Rand Mining Limited Directors' report 30 June 2019

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Drill hole intercepts at Pode

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Cross section views of Falcon lodes

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The major focus of the current drilling programmes will be to:

bring the Falcon lode to feasibility status;
extend the K2 hanging wall lodes to the north of Pegasus; and
extend the RHP hanging wall lode Hera.

Rand Mining Limited Directors' report 30 June 2019

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Seven Mile Hill (Rand's interest 50%)

Following the evaluation of past exploration across the project area and further gold target generation work, a campaign of aircore drilling testing conceptual targets commenced in late June and will continue through July and August in addition to a programme of deep reverse circulation drilling at several advanced prospects.

Corporate

Investment in Tribune Resources Ltd

Pursuant to the Take-Over Panel orders, all bar, 1,135,000 shares of Rand’s 26.32% shareholding in Tribune Resources Ltd were vested in the Commonwealth, on trust for Rand and to be sold by ASIC, in accordance with the Takeover Panel Orders.

The sale has now been completed and the proceeds of this sale have now been fully remitted to Rand, with the balance of funds being received in July 2019.

Rand advised the market that it was proposing to seek Court Orders to clarify the position of the remaining 1,135,000 shares in Tribune held by Rand.

On 26 July Rand successfully obtained these Court Orders.

The effect of these Court Orders is that the purchase of those shares is not invalid. As part of the Court Orders, Rand has undertaken to dispose of these shares within 6 months or such longer period approved by ASIC and Rand is currently complying with ASIC direction with respect to the completion of their sale.

Option to acquire Tapeta iron ore project in Liberia

With respect to Rand's option to acquire Iron Resources Limited ('IRL') from Resources Capital Limited ('RCL') pursuant to the Option and Access Agreement between Rand, IRL and RCL dated on or about 23 September 2011, as subsequently extended ('Option Agreement'), the Company acknowledges that the underlying tenement interests, the subject of the Option Agreement, had lapsed and were now subject to further applications by RCL in Liberia.

As a result, the option agreement had fallen away and is no longer in effect.

Share Buy-back programme

The Company instigated a 12 month period, share buy-back programme, in which the Company intended to buy-back the Company securities up to a maximum of 6,014,847 shares of its issued capital (representing 10% of the smallest number of issued shares in the last 12 months), at the time of the announcement.

The timing and actual number of shares to be purchased was dependent upon market conditions.

This commenced on 10 January 2019 and at the date of this report, no shares have been bought.

Rand Mining Limited Directors' report 30 June 2019

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Northern Star’s offer to purchase Rand’s interest in the EKJV

On or about 13 November 2018, Northern Star Resources Limited ('Northern Star') (ASX code: NST) made an unsolicited $37.5 million offer for Rand Mining and Rand Exploration’s 12.25% interest in the EKJV (Offer). In addition, Northern Star contemporaneously made an unsolicited offer for Tribune Resources Ltd's 36.75% interest in the EKJV.

The Board of Rand Mining concluded that the Offer significantly undervalues Rand's interest in the EKJV and resolved to reject the Offer and communicated this to Northern Star.

Resources and Reserves

At 30 June 2019, the EKJV’s reported Mineral Resource Estimate (excluding Stockpiles but including other Reserves) is 10.97 million tonnes at 6.1 g/t Au for 2.15 million ounces (details in Table 1) and the EKJV’s reported Ore Reserve Estimate (excluding Stockpiles) is 5.80 million tonnes at 5.7g/t Au for 1.06 million ounces (details in Table 2).

Comparison with the Mineral Resource Statement for the year ended 30 June 2018 shows an increase of approximately 91,000 ounces representing the following variations:

No change in gold price from A$1,750/oz;
Revised resource estimation methodology from June 2018;
Revised modifying factors used from June 2018;
Mining depletion at Rubicon, Hornet, Pegasus and Raleigh;
Reflects substantial drilling at Pegasus, Pode, Raleigh South, Falcon; and
Maiden resource for Falcon and Golden Hind.

	Rand's		30 June 2019			30 June 2018
Deposit	entitlement		from Table 1		from the Annual Report 2018
		(kt)	Au (g/t)	Au (koz)	(kt)	Au (g/t)	Au (koz)
Raleigh U/G	12.50%	1,365	9.0	396	1,242	11.4	455
Drake U/G	12.25%	92	3.7	11	445	2.7	38
Pegasus U/G Pode U/G	12.25% 12.25%	2,112 1,823	6.6 7.0	449 410	3,954 .	6.7 .	846 .
Rubicon U/G	12.25%	1,481	5.3	254	2,160	5.2	362
Hornet U/G	12.25%	1,580	4.9	249	2,023	4.5	293
Hornet Pit	12.25%	445	4.1	58	684	3.0	65
Golden Hind U/G	12.25%	477	5.2	79	-	-	-
Falcon U/G	12.25%	1,514	4.8	234	-	-	-
Falcon North U/G	12.25%	82	4.1	11	-	-	-
EKJV Mineral Resources
(excluding Stockpiles)		10,971	6.1	2,151	10,508	6.1	2,060

Comparison with the Ore Reserve statement for the year ended 30 June 2018 shows a decrease of approximately 176,000 ounces representing the following variations:

No change to gold price from A$1,500/oz;
Mining depletion at Rubicon, Hornet, Pegasus and Raleigh;
Revised cut-off grades to reflect current operations;
Increase in Ore Reserves at Pode following conversion of mine exploration success; and
Decrease in Ore Reserves at Pegasus, Rubicon, Hornet and Raleigh from depletion and separation of Pode and Pegasus reserve areas.

Rand Mining Limited Directors' report 30 June 2019

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	Rand's		30 June 2019				30 June 2018
Deposit	entitlement		from Table 2			from the Annual Report 2018
		(kt)	Au (g/t)	Au (koz)		(kt)	Au (g/t)	Au (koz)
Raleigh U/G	12.50%	830	7.4	197		796	8.7	222
Pegasus U/G Pode U/G	12.25% 12.25%	1,723 1,532	5.6 5.8	313 283	.	3,030	6.6 .	644 .
Rubicon U/G	12.25%	1,126	4.8	174		1,545	5.0	248
Hornet U/G	12.25%	460	4.3	64		615	4.7	93
Hornet Pit	12.25%	134	5.8	25		134	5.8	25
EKJV Ore Reserves
(excluding Stockpiles)		5,804	5.7	1,055		6,120	6.3	1,231

Mineral Resource and Ore Reserve Governance and Internal Controls

The Manager of the EKJV prepares the EKJV Mineral Resources and Ore Reserves on an annual basis in accordance with the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (the JORC Code) 2012 Edition. Competent Persons named by the EKJV Manager are Members or Fellows of the Australasian Institute of Mining and Metallurgy and/or the Australian Institute of Geoscientists, and qualify as Competent Persons as defined in the JORC Code.

The Company is represented on the EKJV Technical Committee which reviews the Mineral Resource and Ore Reserve estimates and procedures undertaken on no less than a quarterly basis. The Company’s Competent Persons and consultants audit internal reviews by the EKJV Manager and external reviews by independent consultants of Mineral Resource and Ore Reserve estimates and procedures. These audits have not identified any material issues.

Competent Person Statements

The information in the Company’s 2019 Annual Report that relates to Mineral Resource and Ore Reserve estimates for the Company’s EKJV Project Areas is based on information and supporting documentation prepared by the Competent Persons referred to in the ASX announcement detailed in the footnotes to the Minerals Resources and Ore Reserves Tables (Tables) and fairly represents that information.

The Mineral Resources and Ore Reserves statement as a whole, as well as the information provided by the Competent Persons referred to in the ASX announcement detailed in the footnotes to the Tables, has been approved by Dr John Andrews, a full-time employee of the Company. Dr Andrews is a Fellow of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr Andrews consents to the inclusion in the Company’s 2019 Annual Report announcement of the matters based on this information in the form and context in which it appears.

Rand Mining Limited Directors' report 30 June 2019

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TABLE 1

TABLE 1	TABLE 1	TABLE 1	TABLE 1	TABLE 1	TABLE 1	TABLE 1	TABLE 1	TABLE 1	TABLE 1	TABLE 1
MINERAL RESOURCES including ORE RESERVES at 30 JUNE 2019(subject to roundingerrors)
	ENTITLEMEN T	MEASURED		INDICATED		INFERRED		TOTAL RESOURCE
EKJV	(%)	(kt)	Au (g/t)	(kt)	Au (g/t)	(kt)	Au (g/t)	(kt)	Au (g/t)	Au (koz)
Raleigh Underground	12.50	378	11.4	652	9.0	335	6.4	1,365	9.0	396
Drake Underground	12.25	-	-	43	4.0	49	3.0	92	3.7	11
Pegasus Underground	12.25	492	6.8	1,474	6.8	146	4.3	2,112	6.6	449
Pode Underground	12.25	372	9.1	1,186	6.6	265	5.7	1,823	7.0	410
Rubicon Underground	12.25	468	5.3	858	5.5	155	4.2	1,481	5.3	254
Hornet Underground	12.25	325	5.8	1,027	4.5	228	5.5	1,580	4.9	249
Hornet Open Pit	12.25	-	-	234	5.6	211	2.4	445	4.1	58
Golden Hind Underground	12.25	-	-	-	-	477	5.2	477	5.2	79
Falcon Underground	12.25	-	-	-	-	1,514	4.8	1,514	4.8	234
Falcon North Underground	12.25	-	-	-	-	82	4.1	82	4.1	11
EKJV Mineral Resources (excluding Stockpiles)		2,035	7.6	5,474	6.3	3,462	4.9	10,971	6.1	2,151
EKJV Stockpiles - Raleigh Ore	12.50	41	4.2	-	-	-	-	41	4.2	6
EKJV Stockpiles – Other Ores	12.25	119	3.8	-	-	-	-	119	3.8	14
R&T Stockpiles	25.00	149	3.9	-	-	-	-	149	3.9	18

	RAND MINERAL RESOURCES including ORE RESERVES at 30 JUNE 2019	RAND MINERAL RESOURCES including ORE RESERVES at 30 JUNE 2019	RAND MINERAL RESOURCES including ORE RESERVES at 30 JUNE 2019	RAND MINERAL RESOURCES including ORE RESERVES at 30 JUNE 2019	RAND MINERAL RESOURCES including ORE RESERVES at 30 JUNE 2019	RAND MINERAL RESOURCES including ORE RESERVES at 30 JUNE 2019	RAND MINERAL RESOURCES including ORE RESERVES at 30 JUNE 2019
MINERAL RESOURCES	ENTITLEME NT	MEASURED		INDICATED		INFERRED		TOTAL RESOURCE
	(%)	(kt)	Au (g/t)	(kt)	Au (g/t)	(kt)	Au (g/t)	(kt)	Au (g/t)	Au (koz)
Rand	100.00	307	6.9	672	6.3	425	4.9	1,404	6.0	271

Rand Mining Limited Directors' report 30 June 2019

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TABLE 2

TABLE 2
	EKJV ORE RESERVES at 30 JUNE 2019(subject to rounding errors)
	ENTITLEMENT	PROVED		PROBABLE		PROVED + PROBABLE
EKJV	(%)	(kt)	Au(g/t)	(kt)	Au(g/t)	(kt)	Au(g/t)	Au(koz)
Raleigh Underground	12.50	242	8.5	588	6.9	830	7.4	197
Pegasus Underground	12.25	551	5.3	1,171	5.8	1,723	5.6	313
Pode Underground	12.25	361	7.7	1,171	5.1	1,532	5.8	283
Rubicon Underground	12.25	265	6.4	861	4.3	1,126	4.8	174
Hornet Underground	12.25	123	5.2	337	4.0	460	4.3	64
Hornet Open Pit	12.25	-	-	134	5.8	134	5.8	25
EKJV Ore Reserves(excludingStockpiles)		1,542	6.6	4,262	5.3	5,804	5.7	1,055
EKJV Stockpiles - Raleigh Ore	12.50	41	4.2	-	-	41	4.2	6
EKJV Stockpiles – Other Ores	12.25	119	3.8	-	-	119	3.8	14
R&T Stockpiles	25.00	149	3.9	-	-	149	3.9	18

RAND ORE RESERVES at 30 JUNE 2019	RAND ORE RESERVES at 30 JUNE 2019	RAND ORE RESERVES at 30 JUNE 2019	RAND ORE RESERVES at 30 JUNE 2019	RAND ORE RESERVES at 30 JUNE 2019	RAND ORE RESERVES at 30 JUNE 2019	RAND ORE RESERVES at 30 JUNE 2019	RAND ORE RESERVES at 30 JUNE 2019	RAND ORE RESERVES at 30 JUNE 2019
ORE RESERVES	ENTITLEMENT	PROVED		PROBABLE		PROVED + PROBABLE
	(%)	(kt)	Au (g/t)	(kt)	Au (g/t)	(kt)	Au (g/t)	Au (koz)
Rand	100.00	247	5.9	524	5.3	770	5.5	137

Notes to tables:

The gold price used for the Resource calculations was AUD$1,750/oz.
The gold price used for the Reserve calculations was AUD$1,500/oz.
These tables are based on the NST Memorandum, EKJV Summary Resource and Reserve Report – 30 June 2019, lodged by RND with ASX on 5 August 2019.
Raleigh Ore mined from M15/993 is subject to an Ore Division Agreement whereby the Raleigh Ore is divided equally between Gilt Edge Mining and the R&T Group.

Rand Mining Limited Directors' report 30 June 2019

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Significant changes in the state of affairs

Investment in Tribune Resources Limited

The Company was the holder of a 26.32% shareholding interest in Tribune which was the subject of a Takeovers Panel hearing.

On 26 November 2018, under divestment orders by the Takeovers Panel made on 21 November 2018, 12,025,519 shares were vested in ASIC.

In total 12,025,619 shares were sold for total consideration of $45,475,896 (net of brokerage and fees). A loss of $2,447,964 on assets held for sale was recognised during the year.

As at the date of signing this report, there were no Tribune shares that remain to be sold in accordance with the Panel's orders.

Rand continues to hold 1,135,000 Tribune shares and will dispose of them within 6 months as per an order obtained by the Court. Refer to the ASX release on 26 July 2019 for further details.

Iron Resources Limited option

On 24 September 2018, the Company's option and access agreement relating to its option to acquire Iron Resources Limited from Resources Capital Limited expired and is no longer in effect.

There were no other significant changes in the state of affairs of the Group during the financial year.

Matters subsequent to the end of the financial year

The Company has previously advised the market that it was proposing to seek Court Orders to clarify the position of 1,135,000 shares previously purchased by the Company in Tribune Resources Limited due to those shares being deemed to be void under section 259C of the Corporations Act.

On 26 July 2019, the Company successfully obtained the Court Orders and the effect of the Court Orders is that the purchase of those shares is not invalid.

As part of the Court Orders, the Company has undertaken to dispose of these shares within six months or such longer period approved by the Australian Securities and Investments Commission ('ASIC'). The Company is in the process of determining who to appoint as investment banker or stockbroker to facilitate the sale of these shares.

Subsequent to the year end, the Company relinquished the following tenements relating to Seven Mile Hill, P15/5182 and P15/5183.

No other matter or circumstance has arisen since 30 June 2019 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years.

Likely developments and expected results of operations

The Group intends to continue its exploration, development and production activities on its existing projects and to acquire further suitable projects for exploration as opportunities arise.

Environmental regulation

The Group is subject to and compliant with all aspects of environmental regulation of its exploration and mining activities. The directors are not aware of any environmental law that is not being complied with.

Greenhouse gas and energy data reporting requirements

The Group is subject to the reporting requirements of both the Energy Efficiency Opportunities Act 2006 and the National Greenhouse and Energy Reporting Act 2007.

The Energy Efficiency Opportunities Act 2006 requires the Group to assess its energy usages, including the identification, investigation and evaluation of energy saving opportunities, and to report publicly on the assessments undertaken, including what action the Group intends to take as a result. Due to this Act, the Group, via its participation in the East Kundana Joint Venture ('EKJV') has registered with the Department of Resources, Energy and Tourism as a participant entity and reports the results from its assessments.

Rand Mining Limited Directors' report 30 June 2019

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The National Greenhouse and Energy Reporting Act 2007 requires the Group, via its participation in the EKJV, to report its annual greenhouse gas emissions and energy use. The Group has previously implemented systems and processes for the collection and calculation of data.

Information on directors
Name:	Otakar Demis
Title:	Non-Executive Chairman and Joint Company Secretary
Experience and expertise:	Otakar is a private investor and businessman with several years' experience as a
	director of the Company.
Other current directorships:	Non-Executive Chairman and Company Secretary of Tribune Resources Limited
	(ASX: TBR)
Former directorships (last 3 years): None
Interests in shares:	4,800 ordinary shares held directly
Name:	Anthony Billis
Title:	Executive Director, Managing Director and Chief Executive Officer
Experience and expertise:	Anthony has over 30 years' experience in gold exploration within the mining industry
	in Western Australia. He has been involved in the exploration and development of the
	Kundana project for over 25 years.
Other current directorships:	Executive Director of Tribune Resources Limited (ASX: TBR)
Former directorships (last 3 years): None
Interests in shares:	15,237,384 ordinary shares (41,547 held directly and 15,195,837 held indirectly)
Name:	Gordon Sklenka
Title:	Non-Executive Director
Qualifications:	B.Comm
Experience and expertise:	Gordon has worked in Chartered Accounting, Stockbroking and Corporate Advisory in
	both Perth and Sydney and has experience in corporate finance in the resources and
	technology industries predominantly focusing on capital raisings, initial public
	offerings ('IPOs'), acquisitions and project finance.
Other current directorships:	Non-Executive Director of Tribune Resources Limited (ASX: TBR)
Former directorships (last 3 years): None
Interests in shares:	None

'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships in all other types of entities, unless otherwise stated.

'Former directorships (in the last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes directorships in all other types of entities, unless otherwise stated.

Company secretaries

Roland Berzins (B.Comm, ACPA, FFIN, TA) as joint company secretary has over 20 years' experience in the mining industry. He was previously chief accountant for 6 years at Kalgoorlie Consolidated Gold Mines Pty Ltd ('Kalgoorlie Super Pit'). In addition, Roland has worked as a Senior Mining Analyst for the former BHP iron ore division and has worked for the Mt Newman, Koolan and Cockatoo iron ore project. Since 1996 Roland has been company secretary for a variety of ASX listed companies, and has also had experience in retail, merchant banking, venture capital and SME business advisory.

Details of Mr Otakar Demis as joint company secretary can be found in the 'Information of directors' section above.

Rand Mining Limited Directors' report 30 June 2019

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Meetings of directors

The number of meetings of the Company's Board of Directors ('the Board') held during the year ended 30 June 2019, and the number of meetings attended by each director were:

	Full Board
	Attended	Held
O Demis	2		2
A Billis	2		2
G Sklenka	2		2

Held: represents the number of meetings held during the time the director held office.

Remuneration report (audited)

The remuneration report, which has been audited, outlines the director and key management personnel remuneration arrangements for the Group and the Company, in accordance with the requirements of the Corporations Act 2001 and its Regulations.

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including all directors.

The remuneration report is set out under the following main headings:

Principles used to determine the nature and amount of remuneration
Details of remuneration
Service agreements
Share-based compensation
Additional information
Additional disclosures relating to key management personnel

Principles used to determine the nature and amount of remuneration

The objective of the Group and Company's executive reward framework is to ensure reward for performance is competitive and appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic objectives and the creation of value for shareholders and conforms with the market best practice for delivery of reward. The Board of Directors ('the Board') ensures that executive reward satisfies the following key criteria for good reward governance practices:

competitiveness and reasonableness;
acceptability to shareholders;
performance linkage / alignment of executive compensation; and
transparency.

The Board is responsible for determining and reviewing remuneration arrangements for its directors and executives. The performance of the Group and Company depends on the quality of its directors and executives. The remuneration philosophy is to attract, motivate and retain high performance and high quality personnel.

The Board has structured an executive remuneration framework that is market competitive and complementary to the reward strategy of the Group and Company.

The reward framework is designed to align executive reward to shareholders' interests. The Board have considered that it should seek to enhance shareholders' interests by:

having economic profit as a core component of plan design; and
attracting and retaining high calibre executives.

Additionally, the reward framework should seek to enhance executives' interests by:

rewarding capability and experience;
reflecting competitive reward for contribution to growth in shareholder wealth; and
providing a clear structure for earning rewards.

In accordance with best practice corporate governance, the structure of non-executive directors and executive directors' remuneration are separate.

Rand Mining Limited Directors' report 30 June 2019

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Non-executive directors' remuneration

Fees and payments to non-executive directors' reflect the demands which are made on, and the responsibilities of, the directors. Non-executive directors' fees and payments are reviewed annually by the Board. The Board may seek the advice of independent remuneration consultants to ensure non-executive directors' fees and payments are appropriate and in line with the market (refer 'use of remuneration consultants' below). There are no termination or retirement benefits for nonexecutive directors other than statutory superannuation.

ASX listing rules requires that the aggregate non-executive directors remuneration shall be determined periodically by a general meeting. The most recent determination was at the Annual General Meeting held on 30 November 2005, where the shareholders approved an aggregate remuneration of $160,000.

Executive remuneration

The Group and Company aims to reward executives with a level and mix of remuneration based on their position and responsibility, which is both fixed and variable.

The executive remuneration and reward framework has four components:

base pay and non-monetary benefits;
short-term performance incentives;
share-based payments; and
other remuneration such as superannuation and long service leave.

The combination of these comprises the executive's total remuneration.

Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, are reviewed annually by the Board, based on individual and business unit performance, the overall performance of the Group and comparable market remunerations.

Executives can receive their fixed remuneration in the form of cash or other fringe benefits (for example motor vehicle benefits) where it does not create any additional costs to the Group and adds additional value for the executive.

The short-term incentives ('STI') program is designed to align the targets of the business units with the targets of those executives in charge of meeting those targets. STI payments are granted to executives based on specific annual targets and key performance indicators ('KPI') being achieved. KPI’s include profit contribution, customer satisfaction, leadership contribution and product management.

The long-term incentives ('LTI') currently consists of long service leave.

Group performance and link to remuneration

The directors' remuneration levels are not directly dependent upon the Group and Company's performance or any other performance conditions. However, practically, whether shareholders vote for or against an increase in the aggregate director remuneration will depend upon, amongst other things, how the Group and Company have performed.

Use of remuneration consultants

During the financial year ended 30 June 2019, the Company did not engage remuneration consultants to review its existing remuneration policies or provide recommendations on how to improve both the STI and LTI program.

Voting and comments made at the Company's 2018 Annual General Meeting ('AGM')

At the last AGM 91.48% of the shareholders voted to adopt the remuneration report for the year ended 30 June 2018. The Company did not receive any specific feedback at the AGM regarding its remuneration practices.

Rand Mining Limited Directors' report 30 June 2019

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Details of remuneration

The key management personnel of the Group consisted of the directors of Rand Mining Limited and the following person: ● John Andrews - Manager of Kalgoorlie Operations (resigned effective 31 October 2018)

Amounts of remuneration

Details of the remuneration of key management personnel of the Group are set out in the following tables.

30 Jun 2019 Non-Executive Directors: G Sklenka O Demis Executive Directors: A Billis Other Key Management Personnel: J Andrews**	Short-term benefits Cash salary Non- and fees Bonus monetary* $ $ $ 92,590 - - 40,000 - - 87,490 - 83,889 30,285 - -	Short-term benefits Cash salary Non- and fees Bonus monetary* $ $ $ 92,590 - - 40,000 - - 87,490 - 83,889 30,285 - -	Short-term benefits Cash salary Non- and fees Bonus monetary* $ $ $ 92,590 - - 40,000 - - 87,490 - 83,889 30,285 - -	Post- employment benefits Super- annuation $ - 3,800 12,510 4,330	Long-term benefits Leave benefits $ - - - -	Share- based payments Equity- settled $ - - - -	Total $ 92,590 43,800 183,889 34,615
	250,365	-	83,889	20,640	-	-	354,894

Includes car and housing plus applicable fringe benefits tax payable on benefits
** Remuneration is from 1 July 2018 to 31 October 2018 being the date of cessation as a member of key management personnel

30 Jun 2018 Non-Executive Directors: G Sklenka O Demis Executive Directors: A Billis Other Key Management Personnel: J Andrews	Short-term benefits Cash salary Non- and fees Bonus monetary* $ $ $ 30,000 - - 40,000 - - 129,434 9,433 76,406 111,590 9,433 -	Short-term benefits Cash salary Non- and fees Bonus monetary* $ $ $ 30,000 - - 40,000 - - 129,434 9,433 76,406 111,590 9,433 -	Short-term benefits Cash salary Non- and fees Bonus monetary* $ $ $ 30,000 - - 40,000 - - 129,434 9,433 76,406 111,590 9,433 -	Post- employment benefits Super- annuation $ - 3,800 12,510 12,509	Long-term benefits Leave benefits $ - - - -	Share- based payments Equity- settled $ - - - -	Total $ 30,000 43,800 227,783 133,532
	311,024	18,866	76,406	28,819	-	-	435,115

Includes car and housing plus applicable fringe benefits tax payable on benefits

Rand Mining Limited Directors' report 30 June 2019

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The proportion of remuneration linked to performance and the fixed proportion are as follows:

	Fixed remuneration	Fixed remuneration	STI	STI	LTI	LTI
Name	30 Jun 2019	30 Jun 2018	30 Jun 2019	30 Jun 2018	30 Jun 2019	30 Jun 2018
Non-Executive Directors:
G Sklenka	100%	100%	-	-	-	-
O Demis	100%	100%	-	-	-	-
Executive Directors:
A Billis	100%	100%	-	-	-	-
Other Key Management
Personnel:
J Andrews	100%	100%	-	-	-	-

Service agreements

Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details of these agreements are as follows:

Name: Anthony Billis Title: Executive Director, Managing Director and Chief Executive Officer Term of agreement: Ongoing Details: Base salary, inclusive of superannuation and fringe benefits, for the year ended 30 June 2019 of $183,889, to be reviewed annually by the Board.

Key management personnel have no entitlement to termination payments in the event of removal for misconduct.

Share-based compensation

Issue of shares

There were no shares issued to directors and other key management personnel as part of compensation during the year ended 30 June 2019.

Additional information

The earnings of the Group for the five years to 30 June 2019 are summarised below:

	2019	2018	2017*	2016*	2015*
	$	$	$	$	$
Sales revenue	79,424,150	44,791,500	34,785,950	32,090,300	24,313,606
EBITDA	81,300,340	34,621,689	27,814,537	26,361,814	17,269,293
EBIT	76,300,539	30,767,118	24,044,268	22,404,640	10,857,428
Profit after income tax	67,388,360	22,103,235	16,521,417	15,287,209	7,302,215

As previously reported, excludes the reversal of impairment as noted in note 4 to the financial statements.

The factors that are considered to affect total shareholders return ('TSR') are summarised below:

	2019	2018	2017*	2016*	2015*
Share price at financial year end ($)	3.28	2.70	3.00	2.20	2.00
Total dividends declared (cents per share)	135.00	-	10.00	-	-
Basic earnings per share (cents per share)	112.04	36.75	27.47	25.42	12.04
Diluted earnings per share (cents per share)	112.04	36.75	27.47	25.42	12.04
Share buy-back ($)	-	-	-	-	879,241

As previously reported, excludes the reversal of impairment as noted in note 4 to the financial statements.

Rand Mining Limited Directors' report 30 June 2019

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Additional disclosures relating to key management personnel

Shareholding

The number of shares in the Company held during the financial year by each director and other members of key management personnel of the Group, including their personally related parties, is set out below:

Ordinary shares O Demis A Billis	Balance at the start of the year 4,800 15,237,384	Received as part of remuneration - -	Additions - -	Disposals/ other - -	Balance at the end of the year 4,800 15,237,384
	15,242,184	-	-	-	15,242,184

Loans to key management personnel and their related parties

There were no loans to or from key management personnel and their related parties at the current reporting date.

Other transactions with key management personnel and their related parties

The following transactions occurred with key management personnel and their related parties:

	Consolidated
	30 Jun 2019
	$
Payment for other expenses:
Payment of royalties to Lake Grace Exploration Pty Ltd *	30,462
Payment for executive accommodation fees to Lake Grace Exploration Pty Ltd *	40,500
Payment for consulting fees to Lake Grace Exploration Pty Ltd *	9,926
Payment of rent, rates and levies for office to Melville Parade Pty Ltd *	62,962
Reimbursement of operating expenses to Iron Resources Liberia Ltd *	473,410
Amounts advanced and repaid during the financial year:
Cash advances from/to Tribune Resources Ltd *	1,000,000

An entity in which Anthony Billis is a director.

All transactions were made on normal commercial terms and conditions and at market rates.

This concludes the remuneration report, which has been audited.

Indemnity and insurance of officers

The Company has indemnified the directors and executives of the Company for costs incurred, in their capacity as a director or executive, for which they may be held personally liable, except where there is a lack of good faith.

During the financial year, the Company paid a premium in respect of a contract to insure the directors and executives of the Company against liabilities that may arise from an officers’ position with the exception of insolvency, conduct involving a wilful breach in relation to the Company, or a contravention of section 182 or 183 of the Corporations Act 2001, an entity that is involved in any joint venture or, partnership or enterprise carried on in common with the Company, outside directorships, any outside entity or non-profit outside entity or any vehicle or entity established to conduct such joint venture partnership or enterprise. The contract of insurance prohibits disclosure of the nature of liability and the amount of the premium.

Indemnity and insurance of auditor

The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the Company or any related entity against a liability incurred by the auditor.

During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the Company or any related entity.

Rand Mining Limited Directors' report 30 June 2019

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Proceedings on behalf of the Company

No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings.

Non-audit services

Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the auditor are outlined in note 34 to the financial statements.

The directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another person or firm on the auditor's behalf), is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001.

The directors are of the opinion that the services as disclosed in note 34 to the financial statements do not compromise the external auditor's independence requirements of the Corporations Act 2001 for the following reasons:

all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity of the auditor; and
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board, including reviewing or auditing the auditor's own work, acting in a management or decision-making capacity for the Company, acting as advocate for the Company or jointly sharing economic risks and rewards.

Officers of the Company who are former partners of Grant Thornton Audit Pty Ltd

There are no officers of the Company who are former partners of Grant Thornton Audit Pty Ltd.

Auditor's independence declaration

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this directors' report.

Auditor

Grant Thornton Audit Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001.

This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001.

On behalf of the directors

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_________ Anthony Billis Director

27 September 2019 Perth

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Level 43 Central Park 152-158 St Georges Terrace Perth WA 6000

Correspondence to: PO Box 7757 Cloisters Square Perth WA 6850

T +61 8 9480 2000 E [email protected] W www.grantthornton.com.au

Auditor’s Independence Declaration

To the Directors of Rand Mining Limited

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Rand Mining Limited for the year ended 30 June 2019, I declare that, to the best of my knowledge and belief, there have been:

a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
b no contraventions of any applicable code of professional conduct in relation to the audit.

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GRANT THORNTON AUDIT PTY LTD Chartered Accountants

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P W Warr Partner – Audit & Assurance

Perth, 27 September 2019

Grant Thornton Audit Pty Ltd ACN 130 913 594

www.grantthornton.com.au

a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation.

Rand Mining Limited Statement of profit or loss and other comprehensive income For the year ended 30 June 2019

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Note Revenue 6 Share of profits of associates accounted for using the equity method 7 Other income gains and losses Interest revenue calculated using the effective interest method Gain on revaluation of equity instruments at fair value through profit or loss Expenses Changes in inventories Employee benefits expense Management fees Depreciation and amortisation expense 8 Impairment of exploration and evaluation assets 17 Disposal of assets held-for-sale 14 Mining expenses Processing expenses Royalty expenses Foreign currency losses Other expenses Finance costs 8 Profit before income tax expense Income tax expense 9 Profit after income tax expense for the year attributable to the owners of Rand Mining Limited 29 Other comprehensive income Items that will not be reclassified subsequently to profit or loss Share of other comprehensive income from associate Tax on revaluation adjustment in associate Other comprehensive income for the year, net of tax Total comprehensive income for the year attributable to the owners of Rand Mining Limited Basic earnings per share 41 Diluted earnings per share 41	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 79,424,150 44,791,500 43,197,595 11,568,700 66,887 37,568 67,278 15,904 766,053 228,951 (10,953,547) 3,484,491 (748,101) (640,237) (486,757) (480,141) (4,999,801) (3,854,571) (617,709) (1,107,397) (2,447,964) - (16,731,293) (16,334,247) (6,745,063) (4,598,009) (1,354,847) (1,031,103) (10,091) (15,950) (2,058,973) (1,314,245) (74,181) (53,802) 76,293,636 30,697,412 (8,905,276) (8,594,177) 67,388,360 22,103,235 486,477 (476,941) (145,943) 54,782 340,534 (422,159) 67,728,894 21,681,076 Cents Cents 112.04 36.75 112.04 36.75
	76,293,636 (8,905,276)
	67,388,360 486,477 (145,943)
	340,534
	67,728,894
	Cents 112.04 112.04

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes

Rand Mining Limited Statement of financial position As at 30 June 2019

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30 Jun 2019 $ 50,751,457 3,615,193 33,901,955 6,185,750 - -	Consolidated 30 Jun 2018 $ (restated) 2,364,146 494,423 44,757,518 - 595,877 6,586	1 Jul 2017 $ (restated) 3,984,339 405,315 41,269,709 - - -
94,454,355	48,218,550	45,659,363
- - 149,662 12,269,815 1,209,065 11,031,972 1,790,814	57,960,264 - 1,046,139 10,634,254 1,041,874 9,442,475 2,010,551	49,500,609 267,188 - 7,259,836 754,378 6,358,938 1,461,492
26,451,328	82,135,557	65,602,441
120,905,683	130,354,107	111,261,804
4,916,225 912,405 16,830,296 69,671	5,106,161 748,948 - 4,198	5,645,184 347,190 231,295 6,068,816
22,728,597	5,859,307	12,292,485
508,414 3,856,748 273,296	822,854 16,417,667 244,103	82,239 13,320,887 237,093
4,638,458	17,484,624	13,640,219
27,367,055	23,343,931	25,932,704
93,538,628	107,010,176	85,329,100
16,694,186 - 76,844,442	16,694,186 580,614 89,735,376	16,694,186 1,126,405 67,508,509
93,538,628	107,010,176	85,329,100

Refer to note 4 for detailed information on Restatement of comparatives.

The above statement of financial position should be read in conjunction with the accompanying notes

Rand Mining Limited Statement of changes in equity For the year ended 30 June 2019

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Issued capital $ 16,694,186 -	Reserves $ 1,126,405 -	Retained profits $ 60,827,797 6,680,712	Total equity $ 78,648,388 6,680,712
16,694,186 - -	1,126,405 - (422,159)	67,508,509 22,103,235 -	85,329,100 22,103,235 (422,159)
- -	(422,159) (123,632)	22,103,235 123,632	21,681,076 -
16,694,186	580,614	89,735,376	107,010,176
	Reserves $ 580,614 - 340,534	Retained profits $ 89,735,376 67,388,360 -	Total equity $ 107,010,176 67,388,360 340,534
- - -	340,534 (921,148) -	67,388,360 921,148 (81,200,442)	67,728,894 - (81,200,442)
16,694,186	-	76,844,442	93,538,628

The above statement of changes in equity should be read in conjunction with the accompanying notes

Rand Mining Limited Statement of cash flows For the year ended 30 June 2019

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Note Cash flows from operating activities Receipts from customers (inclusive of GST) Payments to suppliers and employees (inclusive of GST) Interest received Interest and other finance costs paid Income taxes paid Net cash from operating activities 40 Cash flows from investing activities Payments for investments 15 Payments for property, plant and equipment Payments for exploration and evaluation Payments for mine development Proceeds from disposal of investments Proceeds from disposal of property, plant and equipment Proceeds from dividends Net cash from/(used in) investing activities Cash flows from financing activities Repayment of borrowings Repayment of cash advances to Tribune Resources Limited Cash advances from Tribune Resources Limited Dividends paid 30 Net cash used in financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Cash and cash equivalents at the end of the financial year 10	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 79,520,451 44,791,500 (28,300,940) (25,155,907) 51,219,511 19,635,593 28,397 15,904 (74,181) (53,802) (3,435,518) (6,818,846) 47,738,209 12,778,849 - (550,000) (2,883,049) (3,043,542) (878,753) (1,310,967) (4,606,659) (5,454,410) 42,448,952 - 58,309 14,823 48,693,919 2,632,104 82,832,719 (7,711,992) (983,175) (672,202) (1,000,000) (950,000) 1,000,000 950,000 (81,200,442) (6,014,848) (82,183,617) (6,687,050) 48,387,311 (1,620,193) 2,364,146 3,984,339 50,751,457 2,364,146
	51,219,511 28,397 (74,181) (3,435,518)
	47,738,209
	- (2,883,049) (878,753) (4,606,659) 42,448,952 58,309 48,693,919
	82,832,719
	(983,175) (1,000,000) 1,000,000 (81,200,442)
	(82,183,617)
	48,387,311 2,364,146
	50,751,457

The above statement of cash flows should be read in conjunction with the accompanying notes

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 1. General information

The financial statements cover Rand Mining Limited as a Group consisting of Rand Mining Limited ('Company', 'parent entity' or 'Rand') and the entities it controlled at the end of, or during, the year (referred to in these financial statements as the 'Group'). The financial statements are presented in Australian dollars, which is Rand Mining Limited's functional and presentation currency.

Rand Mining Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is:

Suite G1, 49 Melville Parade South Perth WA 6151

A description of the nature of the Group's operations and its principal activities are included in the directors' report, which is not part of the financial statements.

The financial statements were authorised for issue, in accordance with a resolution of directors, on 27 September 2019. The directors have the power to amend and reissue the financial statements.

Note 2. Significant accounting policies

The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

New or amended Accounting Standards and Interpretations adopted

The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the Group during the financial year ended 30 June 2019.

Except for AASB 9 ‘Financial instruments’ which was early adopted in the prior year, no other new or amended Australian Accounting Standards and Interpretations that are issued, but not yet effective, have been early adopted.

The following Accounting Standards and Interpretations are most relevant to the Group:

AASB 15 Revenue from Contracts with Customers

The Group has adopted AASB 15 from 1 July 2018 using the full retrospective approach on transition. The standard provides a single comprehensive model for revenue recognition. The core principle of the standard is that an entity shall recognise revenue to depict the transfer of promised goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard introduced a new contract-based revenue recognition model with a measurement approach that is based on an allocation of the transaction price. This is described further in the accounting policies below. Credit risk is presented separately as an expense rather than adjusted against revenue. Contracts with customers are presented in an entity's statement of financial position as a contract liability, a contract asset, or a receivable, depending on the relationship between the entity's performance and the customer's payment. Customer acquisition costs and costs to fulfil a contract can, subject to certain criteria, be capitalised as an asset and amortised over the contract period.

Impact of adoption

The Group adopted this standard retrospectively from 1 July 2017 and there was no material impact to any balances recognised in the financial statements.

Basis of preparation

These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board ('IASB').

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 2. Significant accounting policies (continued)

Historical cost convention

The financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation of financial assets at fair value through profit or loss.

Critical accounting estimates

The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 3.

Parent entity information

In accordance with the Corporations Act 2001, these financial statements present the results of the Group only. Supplementary information about the parent entity is disclosed in note 38.

Principles of consolidation

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Rand Mining Limited ('Company' or 'parent entity') as at 30 June 2019 and the results of all subsidiaries for the year then ended. Rand Mining Limited and its subsidiaries together are referred to in these financial statements as the 'Group'.

Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

Intercompany transactions, balances and unrealised gains on transactions between entities in the Group are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent.

Where the Group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and noncontrolling interest in the subsidiary together with any cumulative translation differences recognised in equity. The Group recognises the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss.

Operating segments

Operating segments are presented using the 'management approach', where the information presented is on the same basis as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the allocation of resources to operating segments and assessing their performance.

Revenue recognition

The Group recognises revenue as follows:

Revenue from contracts with customers

Revenue is recognised at an amount that reflects the consideration to which the Group is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the Group: identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised.

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 2. Significant accounting policies (continued)

Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount' method. The measurement of variable consideration is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty associated with the variable consideration is subsequently resolved. Amounts received that are subject to the constraining principle are recognised as a refund liability.

Sale of gold

Sale of gold revenue is recognised at the point of sale, which is where the customer has taken delivery of the goods, the risks and rewards are transferred to the customer and there is a valid sales contract.

Dividends

Dividends are received from financial assets measured at fair value through profit or loss ('FVPL'). Dividends are recognised as other income in profit or loss when the right to receive payment is established. This applies even if they are paid out of pre-acquisition profits, unless the dividend clearly represents a recovery of part of the cost of an investment.

Interest

Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.

Other revenue

Other revenue is recognised when it is received or when the right to receive payment is established.

Income tax

The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary differences, unused tax losses and the adjustment recognised for prior periods, where applicable.

Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for:

When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor taxable profits; or
When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable that there are future taxable profits available to recover the asset.

Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on either the same taxable entity or different taxable entities which intend to settle simultaneously.

Current and non-current classification

Assets and liabilities are presented in the statement of financial position based on current and non-current classification.

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 2. Significant accounting policies (continued)

An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the Group's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.

A liability is classified as current when: it is either expected to be settled in the Group's normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current.

Deferred tax assets and liabilities are always classified as non-current.

Cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Trade and other receivables

Other receivables are recognised at amortised cost, less any allowance for expected credit losses. The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. To measure the expected credit losses, other receivables have been grouped based on days overdue.

Inventories

Inventories are stated at the lower of cost and net realisable value on a 'first in first out' basis. Cost comprises direct materials and delivery costs, direct labour, import duties and other taxes, an appropriate proportion of variable and fixed overhead expenditure based on normal operating capacity, and, where applicable, transfers from cash flow hedging reserves in equity. Costs of purchased inventory are determined after deducting rebates and discounts received or receivable.

Cost is determined on the following basis:

gold on hand is valued on an average total production cost method;
ore stockpiles are valued at the average cost of mining and stockpiling the ore, including haulage; and
a proportion of related depreciation and amortisation charge is included in the cost of inventory.

Associates

Associates are entities over which the Group has significant influence but not control or joint control. Investments in associates are accounted for using the equity method. Under the equity method, the share of the profits or losses of the associate is recognised in profit or loss and the share of the movements in equity is recognised in other comprehensive income. Investments in associates are carried in the statement of financial position at cost plus post-acquisition changes in the Group's share of net assets of the associate. Goodwill relating to the associate is included in the carrying amount of the investment and is neither amortised nor individually tested for impairment. Dividends received or receivable from associates reduce the carrying amount of the investment.

When the Group's share of losses in an associate equal or exceed its interest in the associate, including any unsecured long-term receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate.

The Group discontinues the use of the equity method upon the loss of significant influence over the associate and recognises any retained investment at its fair value. Any difference between the associate's carrying amount, fair value of the retained investment and proceeds from disposal is recognised in profit or loss.

Joint operations

A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. The consolidated entity has recognised its share of jointly held assets, liabilities, revenues and expenses of joint operations. These have been incorporated in the financial statements under the appropriate classifications.

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 2. Significant accounting policies (continued)

Investments and other financial assets

Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either amortised cost or fair value depending on their classification. Classification is determined based on both the business model within which such assets are held and the contractual cash flow characteristics of the financial asset unless, an accounting mismatch is being avoided.

Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part or all of a financial asset, it's carrying value is written off.

Financial assets at fair value through profit or loss

Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either: (i) held for trading, where they are acquired for the purpose of selling in the short-term with an intention of making a profit, or a derivative; or (ii) designated as such upon initial recognition where permitted. Fair value movements are recognised in profit or loss.

Impairment of financial assets

The Group recognises a loss allowance for expected credit losses on financial assets which are either measured at amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the Group's assessment at the end of each reporting period as to whether the financial instrument's credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain.

Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate.

For financial assets mandatorily measured at fair value through other comprehensive income, the loss allowance is recognised in profit and loss with a corresponding entry to other comprehensive income. In all other cases, the loss allowance is recognised through profit or loss and reduces the asset’s carrying value.

Property, plant and equipment

Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment over their expected useful lives as follows:

Mining plant and equipment

3 - 10 years

The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.

Leasehold improvements and plant and equipment under lease are depreciated over the unexpired period of the lease or the estimated useful life of the assets, whichever is shorter.

An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the Group. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.

Mining plant and equipment and capital work in progress

Mining plant and equipment and capital work in progress is carried at cost which includes acquisition, transportation, installation, and commissioning costs. Costs also include present value of decommissioning costs and finance charges capitalised during the construction period where such expenditure is financed by borrowings. Costs are not depreciated until such time as the asset has been completed ready for use.

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 2. Significant accounting policies (continued)

Subsequent costs are included in the asset’s carrying amount only when it is probable that future economic benefits associated with the item will flow to the Group, and the cost of the item can be measured reliably. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

Leases

The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset.

A distinction is made between finance leases, which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to the ownership of leased assets, and operating leases, under which the lessor effectively retains substantially all such risks and benefits.

Finance leases are capitalised. A lease asset and liability are established at the fair value of the leased assets, or if lower, the present value of minimum lease payments. Lease payments are allocated between the principal component of the lease liability and the finance costs, so as to achieve a constant rate of interest on the remaining balance of the liability.

Leased assets acquired under a finance lease are depreciated over the asset's useful life or over the shorter of the asset's useful life and the lease term if there is no reasonable certainty that the Group will obtain ownership at the end of the lease term.

Operating lease payments, net of any incentives received from the lessor, are charged to profit or loss on a straight-line basis over the term of the lease.

Exploration and evaluation

Exploration and evaluation expenditures are typically expenses, unless it can be demonstrated that the related expenditures will generate a future economic benefit, in which case these costs are capitalised.

Examples of common exploration and evaluation activities

Exploration activities which primarily consist of expenditures relating to drilling programs and include, but are not limited to:

Researching and analysing existing exploration data;
Conducting geological mapping studies; and
Exploratory drilling and sampling including:
Taking core samples for analysis (assay work);
Sinking exploratory shafts;
Opening shallow pits; and
Drilling to determine volume and grade of deposits in an area known to contain mineral resources, or for the purpose of converting mineral resources into proven and probable reserves.

Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying amount of the asset exceeds its recoverable amount. Where the carrying amount is assessed as exceeding recoverable amount, the excess is recognised as an impairment expense in the profit or loss.

Mine development assets

Capitalised mine development costs include expenditures incurred to develop new ore bodies to define further mineralisation in existing ore bodies, to expand the capacity of a mine and to maintain production. Mine development also includes costs transferred from the exploration and evaluation phase once production commences in the area of interest.

Amortisation of mine development is computed by the units of production basis over the estimated proved and probable reserves. Proved and probable mineral reserves reflect estimated quantities of economically recoverable reserves which can be recovered in the future from known mineral deposits. These reserves are amortised from the date on which production commences. The amortisation is calculated from recoverable proved and probable reserves and a predetermined percentage of the recoverable measured, indicated and inferred resource. This percentage is reviewed annually.

Restoration costs expected to be incurred are provided for as part of the development phase that give rise to the need for restoration.

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 2. Significant accounting policies (continued)

Impairment of non-financial assets

Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount.

Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit.

Trade and other payables

These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.

Borrowings

Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They are subsequently measured at amortised cost using the effective interest method.

Where there is an unconditional right to defer settlement of the liability for at least 12 months after the reporting date, the loans or borrowings are classified as non-current.

Finance costs

Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in the period in which they are incurred.

Provisions

Provisions are recognised when the Group has a present (legal or constructive) obligation as a result of a past event, it is probable the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is recognised as a finance cost.

Employee benefits

Short-term employee benefits

Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled wholly within 12 months of the reporting date are recognised in current liabilities in respect of employees' services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled.

Other long-term employee benefits

The liability for long service leave not expected to be settled within 12 months of the reporting date are recognised in noncurrent liabilities, provided there is an unconditional right to defer settlement of the liability. The liability is measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on high quality corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

Defined contribution superannuation expense

Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.

Fair value measurement

When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market.

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 2. Significant accounting policies (continued)

Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the fair value measurement.

For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where applicable, with external sources of data.

Issued capital

Ordinary shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Dividends

Dividends are recognised when declared during the financial year and no longer at the discretion of the Company.

Earnings per share

Basic earnings per share

Basic earnings per share is calculated by dividing the profit attributable to the owners of Rand Mining Limited, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.

Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.

Goods and Services Tax ('GST') and other similar taxes

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows.

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.

New Accounting Standards and Interpretations not yet mandatory or early adopted

Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory have not been early adopted by the Group for the annual reporting period ended 30 June 2019. The Group's assessment of the impact of these new or amended Accounting Standards and Interpretations, most relevant to the Group, are set out below.

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 2. Significant accounting policies (continued)

AASB 16 Leases

This standard is applicable to annual reporting periods beginning on or after 1 January 2019. The standard replaces AASB 117 'Leases' and for lessees will eliminate the classifications of operating leases and finance leases. Subject to exceptions, a 'right-of-use' asset will be capitalised in the statement of financial position, measured at the present value of the unavoidable future lease payments to be made over the lease term. The exceptions relate to short-term leases of 12 months or less and leases of low-value assets (such as personal computers and small office furniture) where an accounting policy choice exists whereby either a 'right-of-use' asset is recognised or lease payments are expensed to profit or loss as incurred. A liability corresponding to the capitalised lease will also be recognised, adjusted for lease prepayments, lease incentives received, initial direct costs incurred and an estimate of any future restoration, removal or dismantling costs. Straight-line operating lease expense recognition will be replaced with a depreciation charge for the leased asset (included in operating costs) and an interest expense on the recognised lease liability (included in finance costs). In the earlier periods of the lease, the expenses associated with the lease under AASB 16 will be higher when compared to lease expenses under AASB 117. However EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) results will be improved as the operating expense is replaced by interest expense and depreciation in profit or loss under AASB 16. For classification within the statement of cash flows, the lease payments will be separated into both a principal (financing activities) and interest (either operating or financing activities) component. For lessor accounting, the standard does not substantially change how a lessor accounts for leases.

The Group will adopt this standard from 1 July 2019. Information on the undiscounted amount of the Group’s operating lease commitments under AASB 117, the current leasing standard, is disclosed in note 36. The Group is considering the available options for transition. To date, work has focused on the identification of the provisions of the standard which will most impact the Group and the next phase is a detailed review of the contracts and the financial reporting impact of AASB 16.

The Joint Venture manager is finalising its review of the executory contracts entered into by EKJV Management Pty Ltd in light of the new lease accounting rules under AASB 16.

The impact at 1 July 2019, on the basis that the right-of-use assets are measured on transition at the amount of lease liability on adoption, would be to recognise a right-of-use asset of $49,542 and a lease liability of $49,542.

New Conceptual Framework for Financial Reporting

A revised Conceptual Framework for Financial Reporting has been issued by the AASB and is applicable for annual reporting periods beginning on or after 1 January 2020. This release impacts for-profit private sector entities that have public accountability that are required by legislation to comply with Australian Accounting Standards and other for-profit entities that voluntarily elect to apply the Conceptual Framework. Phase 2 of the framework is yet to be released which will impact for-profit private sector entities. The application of new definition and recognition criteria as well as new guidance on measurement will result in amendments to several accounting standards. The issue of AASB 2019-1 Amendments to Australian Accounting Standards – References to the Conceptual Framework, also applicable from 1 January 2020, includes such amendments. Where the Group has relied on the conceptual framework in determining its accounting policies for transactions, events or conditions that are not otherwise dealt with under Australian Accounting Standards, the Group may need to revisit such policies. The Group will apply the revised conceptual framework from 1 July 2020 and is yet to assess its impact.

Other standards and interpretations

The directors have also reviewed all other new Standards and Interpretations that have been issued but are not yet effective for the year ended 30 June 2019. As a result of this review the directors have determined that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on the Company and, therefore, no change is necessary to Group accounting policies. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards.

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 3. Critical accounting judgements, estimates and assumptions

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below.

Estimation of useful lives of assets

The Group determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down.

Income tax

The Group is subject to income taxes in the jurisdictions in which it operates. Significant judgement is required in determining the provision for income tax. There are many transactions and calculations undertaken during the ordinary course of business for which the ultimate tax determination is uncertain. The Group recognises liabilities for anticipated tax audit issues based on the Group's current understanding of the tax law. Where the final tax outcome of these matters is different from the carrying amounts, such differences will impact the current and deferred tax provisions in the period in which such determination is made.

Recovery of deferred tax assets

Deferred tax assets are recognised for deductible temporary differences only if the Group considers it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Recoverability of assets

The recoverable amount of each ‘cash-generating unit’ , ‘investment in associate’, and 'investment in joint arrangement' is determined as the higher of the asset’s fair value less costs to dispose and its value in use. Assessments of value in use and fair value less cost to dispose require the use of estimates and assumptions including discount rates, exchange rates, commodity prices, future capital requirements and future operating performance, as well as the value that a market participant would place on any resources which have yet to be proven as reserves associated with the CGU.

Inventories are recognised at the lower of cost and net realisable value which is calculated. The computation of net realisable value involves significant judgements and estimates in relation to future processing costs, commodity prices, foreign exchange rates, and timing of processing and sale.

Mine development assets

The estimated quantities of economically recoverable reserves and resources are based upon interpretations of geological and geophysical models and require assumptions to be made regarding factors such as estimates of short and long term exchange rates, estimates of short and long term commodity prices, future capital requirements and future operating performance. Changes in reported reserves and resources estimates can impact the carrying value of deferred mining expenditure, intangible assets, provisions for mine rehabilitation, the recognition of deferred tax assets, as well as the amount of depreciation and amortisation charged to the profit or loss.

Exploration and evaluation expenditure

The application of the Group's accounting policy for exploration and evaluation expenditure requires judgement to determine whether future economic benefits are likely, from either future exploitation or sale, or whether activities have not reached a stage that permits a reasonable assessment of the existence of reserves.

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 3. Critical accounting judgements, estimates and assumptions (continued)

Joint arrangements

The Group holds a 50% interest in Mount Manning Resources Pty Ltd. The partnership agreements require unanimous consent from all parties for all relevant activities. The two partners own the assets of the partnership as tenants in common and are jointly and severally liable for the liabilities incurred by the partnership. This entity is therefore classified as a joint operation and the Group recognises its direct right to the jointly held assets, liabilities, revenues and expenses as described in note 2.

Note 4. Restatement of comparatives

Correction of error

During certain historic periods prior to 30 June 2013, the Group impaired its investment in associate by $9,543,874. It was subsequently identified that such accumulated impairment and the related impact on deferred tax liabilities ($2,863,162) were presented in error in the earliest presented period (1 July 2017) and that a historical error correction was required.

Statement of profit or loss and other comprehensive income

As there was no impact on the statement of profit or loss and other comprehensive income for the year ended 30 June 2018, the Group has elected not to show the statement of profit or loss and other comprehensive income.

Statement of financial position at the beginning of the earliest comparative period

1 Jul 2017 $ Reported 39,956,735	Consolidated $ Adjustment 9,543,874	1 Jul 2017 $ Restated 49,500,609
56,058,567	9,543,874	65,602,441
101,717,930	9,543,874	111,261,804
10,457,725	2,863,162	13,320,887
10,777,057	2,863,162	13,640,219
23,069,542	2,863,162	25,932,704
78,648,388	6,680,712	85,329,100
60,827,797	6,680,712	67,508,509
78,648,388	6,680,712	85,329,100

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 4. Restatement of comparatives (continued)

Statement of financial position at the end of the earliest comparative period

30 Jun 2018 $ Reported 48,416,390	Consolidated $ Adjustment 9,543,874	30 Jun 2018 $ Restated 57,960,264
72,591,683	9,543,874	82,135,557
120,810,233	9,543,874	130,354,107
13,554,505	2,863,162	16,417,667
14,621,462	2,863,162	17,484,624
20,480,769	2,863,162	23,343,931
100,329,464	6,680,712	107,010,176
83,054,664	6,680,712	89,735,376
100,329,464	6,680,712	107,010,176

Note 5. Operating segments

Identification of reportable operating segments

The Group has no separate operating segments as the internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of resources reflect the financial position and performance of the Group as a whole.

Major customers

During the year ended 30 June 2019 approximately 100% (2018: 100%) of the consolidated entity's external revenue was derived from sales to one customer.

Geographical information

The Group's revenue and non-current assets are all Australian based and therefore, this information is detailed throughout the financial statements.

Note 6. Revenue

Sales of gold	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 79,424,150 44,791,500

All sales of gold were made in Australia and recognised as point in time revenue.

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 7. Share of profits of associates accounted for using the equity method

Share of profit - associates	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 43,197,595 11,568,700

Share of profit - associates relates to the Company's investment in Tribune Resources Limited (‘Tribune’) from 1 July 2018 to 25 November 2018. From 26 November 2018 the Company ceased to have a significant influence over Tribune. Refer to note 14 for further details of the investment.

Note 8. Expenses

Profit before income tax includes the following specific expenses: Depreciation Mining plant and equipment Amortisation Mine development Total depreciation and amortisation Finance costs Interest and finance charges paid/payable Rental expense relating to operating leases Minimum lease payments Superannuation expense Defined contribution superannuation expense	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 1,982,640 1,483,697	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 1,982,640 1,483,697
	3,017,161	2,370,874
	4,999,801	3,854,571
	74,181	53,802
	76,699	91,245
	38,662	34,171

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 9. Income tax expense

Income tax expense Current tax Current tax relating to prior periods Deferred tax - origination and reversal of temporary differences Deferred tax relating to prior periods Aggregate income tax expense Deferred tax included in income tax expense comprises: Decrease/(increase) in deferred tax assets (note 19) Increase/(decrease) in deferred tax liabilities (note 25) Deferred tax - origination and reversal of temporary differences Numerical reconciliation of income tax expense and tax at the statutory rate Profit before income tax expense Tax at the statutory tax rate of 30% Tax effect amounts which are not deductible/(taxable) in calculating taxable income: Non-taxable dividends Non-deductible foreign expenditure Tax effect of other assessable/(not assessable) amounts in calculating taxable income Sundry items Current year temporary differences not recognised Adjustment recognised for prior periods Income tax expense Amounts credited directly to equity Deferred tax liabilities (note 25) Note 10. Current assets - cash and cash equivalents Cash on hand Cash at bank	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 21,481,316 5,991,674 (483,693) - (12,472,844) 2,602,503 380,497 - 8,905,276 8,594,177 219,737 (549,059) (12,312,084) 3,151,562 (12,092,347) 2,602,503 76,293,636 30,697,412 22,888,091 9,209,224 (14,608,176) (789,631) 142,023 227,322 345,258 (50,850) (424) (1,888) 8,766,772 8,594,177 241,700 - (103,196) - 8,905,276 8,594,177 Consolidated 30 Jun 2019 30 Jun 2018 $ $ (248,835) (54,782) Consolidated 30 Jun 2019 30 Jun 2018 $ $ 250 250 50,751,207 2,363,896 50,751,457 2,364,146
	50,751,457

Income tax expense
Current tax
Current tax relating to prior periods
Deferred tax - origination and reversal of temporary differences
Deferred tax relating to prior periods
Aggregate income tax expense
Deferred tax included in income tax expense comprises:
Decrease/(increase) in deferred tax assets (note 19)
Increase/(decrease) in deferred tax liabilities (note 25)
Deferred tax - origination and reversal of temporary differences
Numerical reconciliation of income tax expense and tax at the statutory rate
Profit before income tax expense
Tax at the statutory tax rate of 30%
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Non-taxable dividends
Non-deductible foreign expenditure
Tax effect of other assessable/(not assessable) amounts in calculating taxable income
Sundry items
Current year temporary differences not recognised
Adjustment recognised for prior periods
Income tax expense
Amounts credited directly to equity
Deferred tax liabilities (note 25)

Note 10. Current assets - cash and cash equivalents

Cash on hand
Cash at bank

Consolidated
30 Jun 2019
30 Jun 2018
$
$
21,481,316
5,991,674
(483,693)
-
(12,472,844)
2,602,503
380,497
-
8,905,276
8,594,177
219,737
(549,059)
(12,312,084)
3,151,562
(12,092,347)
2,602,503
76,293,636
30,697,412
22,888,091
9,209,224
(14,608,176)
(789,631)
142,023
227,322
345,258
(50,850)
(424)
(1,888)
8,766,772
8,594,177
241,700
-
(103,196)
-
8,905,276
8,594,177
Consolidated
30 Jun 2019
30 Jun 2018
$
$
(248,835)
(54,782)
Consolidated
30 Jun 2019
30 Jun 2018
$
$
250
250
50,751,207
2,363,896
50,751,457
2,364,146

50,751,457

Cash at bank bears fixed interest at 1.25% (2018: 1.92%) and cash on hand is non-interest bearing.

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 11. Current assets - trade and other receivables

Other receivables Goods and services tax receivable Sale proceeds relating to Tribune shares sold in year but funds not received	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 552,258 433,619 - 60,804 3,062,935 -	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 552,258 433,619 - 60,804 3,062,935 -
	3,615,193	494,423

Note 12. Current assets - inventories

Ore stockpiles - at cost Gold in transit - at cost Gold on hand - at cost Silver on hand - at cost Consumables	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 6,988,568 7,424,975 1,009,620 445,406 24,577,918 35,786,507 865,527 738,292 460,322 362,338	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 6,988,568 7,424,975 1,009,620 445,406 24,577,918 35,786,507 865,527 738,292 460,322 362,338
	33,901,955	44,757,518

Note 13. Current assets - financial assets at fair value through profit or loss

Listed securities - at fair value through profit or loss Reconciliation Reconciliation of the fair values at the beginning and end of the current and previous financial year are set out below: Opening fair value Transfer from investments accounted for using the equity method (note 14) Revaluation to profit or loss Fair value of financial assets held for sale as at 30 June 2019	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 6,185,750 -	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 6,185,750 -
	Consolidated 30 Jun 2019 30 Jun 2018 $ $ - - 4,523,219 - 1,662,531 -
	6,185,750	-

Reconciliation

Refer to note 32 for further information on fair value measurement.

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 14. Non-current assets - investments accounted for using the equity method

Investment in associate - Tribune Resources Limited Reconciliation Reconciliation of the carrying amounts at the beginning and end of the current and previous financial year are set out below: Opening carrying amount - restated Profit after income tax Other comprehensive income Dividend received Closing carrying value as at the date significant influence was lost Disposal of assets held-for-sale Transferred to financial assets at fair value through profit or loss (note 13) Closing carrying amount	Consolidated 30 Jun 2019 30 Jun 2018 $ $ (restated) - 57,960,264	Consolidated 30 Jun 2019 30 Jun 2018 $ $ (restated) - 57,960,264
	57,960,264 43,197,595 (16,861) (48,693,919)	49,500,609 11,568,700 (476,941) (2,632,104)
	52,447,079 (47,923,860) (4,523,219)	- - -
	-	57,960,264

The Company was the holder of a 26.32% shareholding interest in Tribune which was the subject of a Takeovers Panel hearing.

On 26 November 2018, under divestment orders by the Takeovers Panel made on 21 November 2018, 12,025,519 shares were vested in ASIC.

In total 12,025,619 shares were sold for total consideration of $45,475,896 (net of brokerage and fees). A loss of $2,447,964 on assets held for sale was recognised during the year.

As at the date of signing this report, there were no Tribune shares that remain to be sold in accordance with the Panel's orders.

Rand continues to hold 1,135,000 Tribune shares and will dispose of them within 6 months as per an order obtained by the Court. Refer to the ASX release on 26 July 2019 for further details.

Interests in associates

Interests in associates are accounted for using the equity method of accounting. Information relating to associates that are material to the Group are set out below:

		Ownership interest	Ownership interest	Ownership interest
	Principal place of business /	30 Jun	2019	30 Jun 2018
Name	Country of incorporation	%		%
Tribune Resources Limited	Australia		-	26.32%

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 14. Non-current assets - investments accounted for using the equity method (continued)

Interests in joint operations

Joint arrangements represent the contractual sharing of control between parties in a business venture where unanimous decisions about relevant activities are required.

Separate joint venture entities providing joint venturers with an interest to net assets are classified as a joint venture and accounted for using the equity method. Refer to Note 2 'Associates' for a description of the equity method of accounting.

The Group has recognised its share of jointly held assets, liabilities, revenues and expenses of joint operations. These have been incorporated in the financial statements under the appropriate classifications. Information relating to joint operations that are material to the Group are set out below:

		Ownership interest	Ownership interest
	Principal place of business /	30 Jun 2019	30 Jun 2018
Name	Country of incorporation	%	%
East Kundana Joint Venture	Australia	12.25%	12.25%

Note 15. Non-current assets - financial assets at fair value through profit or loss

Listed securities - at fair value through profit or loss Reconciliation Reconciliation of the carrying amounts at the beginning and end of the current and previous financial year are set out below: Opening carrying amount Transfer from available-for-sale financial assets on early adoption of AASB 9 Additions Gain/(loss) on revaluation through profit or loss Closing carrying amount	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 149,662 1,046,139	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 149,662 1,046,139
	1,046,139 - - (896,477)	- 267,188 550,000 228,951
	149,662	1,046,139

Note 16. Non-current assets - property, plant and equipment

Mining plant and equipment - at cost Less: Accumulated depreciation Construction work in progress - at cost	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 21,677,646 18,518,385 (9,480,559) (8,417,431)	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 21,677,646 18,518,385 (9,480,559) (8,417,431)
	12,197,087	10,100,954
	72,728	533,300
	12,269,815	10,634,254

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 16. Non-current assets - property, plant and equipment (continued)

Reconciliations

Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below:

Consolidated Balance at 1 July 2017 Additions Disposals Transfers from exploration and evaluation Transfers in/(out) Depreciation expense Balance at 30 June 2018 Additions Disposals Transfers from exploration and evaluation Transfers in/(out) Depreciation expense Balance at 30 June 2019	Mining plant and equipment $ 6,668,876 1,164,324 (1) 407,805 3,343,647 (1,483,697)	Construction WIP $ 590,960 3,285,987 - - (3,343,647) -	Total $ 7,259,836 4,450,311 (1) 407,805 - (1,483,697)
	10,100,954 1,213,593 (97,042) 742,612 2,219,610 (1,982,640)	533,300 1,759,038 - - (2,219,610) -	10,634,254 2,972,631 (97,042) 742,612 - (1,982,640)
	12,197,087	72,728	12,269,815

Included in mining plant and equipment is $7,344,890 (2018: $5,388,686) of resource extension relating to drilling expenditure on Raleigh, Rubicon/Hornet and Pegasus.

Property, plant and equipment secured under finance leases

Refer to note 36 for further information on property, plant and equipment secured under finance leases.

Note 17. Non-current assets - exploration and evaluation

Exploration and evaluation - at cost	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 1,209,065 1,041,874

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 17. Non-current assets - exploration and evaluation (continued)

Reconciliations

Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below:

Consolidated Balance at 1 July 2017 Additions Impairment of assets Transfers to mining plant and equipment Balance at 30 June 2018 Additions Impairment of assets Transfers to mining plant and equipment Balance at 30 June 2019	Exploration and evaluation $ 754,378 1,802,698 (1,107,397) (407,805)
	1,041,874 1,527,512 (617,709) (742,612)
	1,209,065

The recoverability of the carrying amount of exploration and evaluation assets is dependent upon the successful development and commercial exploitation, or alternatively, sale of the respective areas of interest.

Impairment

At each reporting date the Group undertakes an assessment of the carrying amount of its exploration and evaluation assets. During the year the Group identified indicators of impairment on certain exploration and evaluation assets under AASB 6 'Exploration for and Evaluation of Mineral Resources'. As a result of this review, an impairment loss of $617,709 (2018: $107,397) has been recognised in the statement of profit or loss in relation to areas of interest where no future exploration and evaluation activities are expected.

Note 18. Non-current assets - mine development

Mine development - at cost Less: Accumulated amortisation	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 43,319,553 38,712,895 (32,287,581) (29,270,420)	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 43,319,553 38,712,895 (32,287,581) (29,270,420)
	11,031,972	9,442,475

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 18. Non-current assets - mine development (continued)

Reconciliations

Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below:

Consolidated Balance at 1 July 2017 Additions Amortisation expense Balance at 30 June 2018 Additions Amortisation expense Balance at 30 June 2019	Mine development $ 6,358,938 5,454,411 (2,370,874)
	9,442,475 4,606,658 (3,017,161)
	11,031,972

Mine development relates to Raleigh underground development, Rubicon development and Pegasus underground development.

Note 19. Non-current assets - deferred tax

Deferred tax asset comprises temporary differences attributable to: Amounts recognised in profit or loss: Leave provisions Provision for rehabilitation Capitalised mine development costs Blackhole costs Sundry accruals and provisions Deferred tax asset Movements: Opening balance Credited/(charged) to profit or loss (note 9) Closing balance	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 20,901 1,260 81,989 73,231 1,668,301 1,911,869 540 122 19,083 24,069	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 20,901 1,260 81,989 73,231 1,668,301 1,911,869 540 122 19,083 24,069
	1,790,814	2,010,551
	2,010,551 (219,737)	1,461,492 549,059
	1,790,814	2,010,551

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 20. Current liabilities - trade and other payables

Trade payables Accrued expenses Other payables Refer to note 31 for further information on financial instruments.	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 4,680,126 4,976,696 236,099 112,825 - 16,640	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 4,680,126 4,976,696 236,099 112,825 - 16,640
	4,916,225	5,106,161

Note 21. Current liabilities - borrowings

Lease liability Refer to note 31 for further information on financial instruments. Note 22. Current liabilities - income tax payable Provision for income tax Note 23. Current liabilities - provisions Employee benefits Note 24. Non-current liabilities - borrowings Lease liability Refer to note 31 for further information on financial instruments.	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 912,405 748,948	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 912,405 748,948
	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 16,830,296 -
	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 69,671 4,198
	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 508,414 822,854

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 24. Non-current liabilities - borrowings (continued)

Total secured liabilities

The total secured liabilities (current and non-current) are as follows:

Lease liability	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 1,420,819 1,571,802

Assets pledged as security

The lease liabilities are effectively secured as the rights to the leased assets, recognised in the statement of financial position, revert to the lessor in the event of default.

Note 25. Non-current liabilities - deferred tax

Deferred tax liability comprises temporary differences attributable to: Amounts recognised in profit or loss: Investment in associate Investments Capitalised exploration Other Amounts recognised in equity: Investment in associate Deferred tax liability Movements: Opening balance Charged/(credited) to profit or loss (note 9) Credited to equity (note 9) Closing balance Note 26. Non-current liabilities - provisions Rehabilitation	Consolidated 30 Jun 2019 30 Jun 2018 $ $ (restated) - 14,130,964 1,147,481 - 2,566,187 1,929,168 143,080 108,701	Consolidated 30 Jun 2019 30 Jun 2018 $ $ (restated) - 14,130,964 1,147,481 - 2,566,187 1,929,168 143,080 108,701
	3,856,748	16,168,833
	-	248,834
	3,856,748	16,417,667
	16,417,667 (12,312,084) (248,835)	13,320,887 3,151,562 (54,782)
	3,856,748	16,417,667
	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 273,296 244,103

Rehabilitation

The provision for rehabilitation covers the following East Kundana joint venture ('EKJV') tenements - M16/309, M15/993, L16/28, L16/38, L16/39, L16/40, L16/54 and L16/69.

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 26. Non-current liabilities - provisions (continued)

The provision for rehabilitation also covers the following key long-lived assets:

Raleigh: Pit, Raleigh Paleo channel WRD, ROM pad and backfill plant;
Pope John Pit;
White Foil - Moonbeam discharge pipeline; and
Kurrawang Pipeline Corridor.

During the financial year, EKJV management reassessed the rehabilitation cost estimate, noting no significant adjustments to the underlying cost estimate applied at 30 June 2019.

Movements in provisions

Movements in each class of provision during the current financial year, other than employee benefits, are set out below:

Consolidated - 30 Jun 2019 Carrying amount at the start of the year Impact of revision to expected cashflows (net of accretion) Carrying amount at the end of the year	Rehabilitation $ 244,103 29,193
	273,296

Note 27. Equity - issued capital

Ordinary shares - fully paid	30 Jun 2019 Shares 60,148,475	Consolidated 30 Jun 2018 30 Jun 2019 Shares $ 60,148,475 16,694,186	30 Jun 2018 $ 16,694,186

Ordinary shares

Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the Company does not have a limited amount of authorised capital.

On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.

Options

The Company has no options on issue.

Share buy-back

On 12 December 2018, the Company announced it would extend the on-market buy-back of ordinary shares to 11 December 2019. The number of shares remaining to be bought back is 6,014,847.

The market price at the date of the original share buy-back announcement on 11 December 2016 was $1.85.

Capital risk management

The Group's objectives when managing capital are to safeguard its ability to continue as a going concern, so that it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to reduce the cost of capital.

Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated as total borrowings less cash and cash equivalents.

In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 27. Equity - issued capital (continued)

The Group would look to raise capital when an opportunity to invest in a business or company was seen as value adding relative to the current parent entity's share price at the time of the investment. The Group is not actively pursuing additional investments in the short term as it continues to integrate and grow its existing businesses in order to maximise synergies.

The Group is subject to certain financing arrangements covenants and meeting these are given priority in all capital risk management decisions. There have been no events of default on the financing arrangements during the financial year.

The capital risk management policy remains unchanged from the 2018 Annual Report.

Note 28. Equity - reserves

Equity accounting	Consolidated 30 Jun 2019 30 Jun 2018 $ $ - 580,614

Equity accounting reserve

This reserve is used to recognise the share of the increments and decrements of other comprehensive income from the Company’s share in associate using the equity method.

Movements in reserves

Movements in each class of reserve during the current and previous financial year are set out below:

Consolidated Balance at 1 July 2017 Share of other comprehensive income from associate Transferred to retained earnings on early adoption of AASB 9 Balance at 30 June 2018 Share of other comprehensive income from associate Transfer revaluation of investment in associate to available for sale financial assets (net of tax) Balance at 30 June 2019	Available- for-sale $ 123,632 - (123,632)	Equity accounting $ 1,002,773 (422,159) -	Total $ 1,126,405 (422,159) (123,632)
	- - -	580,614 340,534 (921,148)	580,614 340,534 (921,148)
	-	-	-

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 29. Equity - retained profits

Retained profits at the beginning of the financial year
Adjustment for correction of error (note 4)
Retained profits at the beginning of the financial year - restated
Profit after income tax expense for the year
Dividends payable (note 30)
Transfer from revaluation surplus reserve
Transfer from other comprehensive income on derecognition of associate
Retained profits at the end of the financial year

Consolidated
30 Jun 2019
30 Jun 2018
$
$
89,735,376
60,827,797
-
6,680,712
89,735,376
67,508,509
67,388,360
22,103,235
(81,200,442)
-
-
123,632
921,148
-
76,844,442
89,735,376

89,735,376
67,388,360
(81,200,442)
-
921,148

76,844,442

Note 30. Equity - dividends

Dividends

Dividends paid during the financial year were as follows:

A dividend of 10 cents per ordinary share paid to shareholders on 14 September 2018. A special dividend of $1.25 per ordinary share paid to shareholders on 12 October 2018. Franking credits Franking credits available for subsequent financial years based on a tax rate of 30%	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 6,014,848 - 75,185,594 - 81,200,442 - Consolidated 30 Jun 2019 30 Jun 2018 $ $ 18,098,387 24,425,368

Franking credits

The above amounts represent the balance of the franking account as at the end of the financial year, adjusted for:

franking credits that will arise from the payment of the amount of the provision for income tax at the reporting date
franking debits that will arise from the payment of dividends recognised as a liability at the reporting date
franking credits that will arise from the receipt of dividends recognised as receivables at the reporting date

Note 31. Financial instruments

Financial risk management objectives

The Group's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price risk and interest rate risk), credit risk and liquidity risk. The Group's overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Group. The Group uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate, foreign exchange and other price risks, ageing analysis for credit risk.

Risk management is carried out by senior finance executives ('finance') under policies approved by the Board of Directors ('the Board'). These policies include identification and analysis of the risk exposure of the Group and appropriate procedures, controls and risk limits. Finance identifies, evaluates and hedges financial risks within the Group's operating units when deemed necessary. Finance reports to the Board on a monthly basis.

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 31. Financial instruments (continued)

Market risk

Foreign currency risk

The Group is not exposed to any significant foreign currency risk.

Price risk

The Group is exposed to equity securities price risks and bullion price risk. This arises from investments held by the Group and classified in the statement of financial position as financial assets at fair value through profit or loss and bullion held as inventory.

The policy of the Group is to sell gold at spot price and so it has not entered into any hedging contracts. The Group's revenues were exposed to fluctuation in the price of gold. If the average selling price of gold of $1,807.10 (2018: $1,690.50) for the financial year had increased/decreased by 10% the change in the profit before income tax for the Group would have been an increase/decrease of $8,674,072 (2018: $4,591,697).

If there was a 10% increase or decrease in market price of gold, the net realisable value of bullion on hand would increase/(decrease) by $5,168,998 (2018: $7,389,565) and the bullion in transit would increase/(decrease) by $209,697 (2018: $90,540). As gold on hand is held at cost there would be no impact on profit or loss.

Interest rate risk

The Group is not exposed to any significant interest rate risk.

Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group has a strict code of credit, including obtaining agency credit information, confirming references and setting appropriate credit limits. The Group obtains guarantees where appropriate to mitigate credit risk. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements. The Group does not hold any collateral.

The Group has adopted a lifetime expected loss allowance in estimating expected credit losses to trade receivables through the use of a provisions matrix using fixed rates of credit loss provisioning. These provisions are considered representative across all customers of the Group based on recent sales experience, historical collection rates and forwardlooking information that is available.

The Group has a credit risk exposure with the carrying amount of receivables. For some receivables the Group obtains agreements which can be called upon if the counterparty is in default under the terms of the agreement.

Generally, trade receivables are written off when there is no reasonable expectation of recovery. Indicators of this include the failure of a debtor to engage in a repayment plan, no active enforcement activity and a failure to make contractual payments for a period greater than 1 year.

Liquidity risk

Vigilant liquidity risk management requires the Group to maintain sufficient liquid assets (mainly cash and cash equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.

The Group manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities.

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 31. Financial instruments (continued)

Remaining contractual maturities

The following tables detail the Group's remaining contractual maturity for its financial instrument liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position.

1 year or less $ 4,680,126 952,032	Between 1 and 2 years $ - 516,919	Between 2 and 5 years $ - -	Over 5 years $ - -	Remaining contractual maturities $ 4,680,126 1,468,951
5,632,158	516,919	-	-	6,149,077
1 year or less $ 4,976,696 16,640 802,440	Between 1 and 2 years $ - - 876,147	Between 2 and 5 years $ - - -	Over 5 years $ - - -	Remaining contractual maturities $ 4,976,696 16,640 1,678,587
5,795,776	876,147	-	-	6,671,923

Note 32. Fair value measurement

Fair value hierarchy

The following tables detail the Group's assets and liabilities, measured or disclosed at fair value, using a three level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly

Level 3: Unobservable inputs for the asset or liability

Consolidated - 30 Jun 2019 Assets Listed securities - equity (current) Listed securities - equity (non-current) Total assets	Level 1 $ 6,185,750 149,662	Level 2 $ - -	Level 3 $ - -	Total $ 6,185,750 149,662
	6,335,412	-	-	6,335,412

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 32. Fair value measurement (continued)

Consolidated - 30 Jun 2018 Assets Listed securities - equity (non-current) Total assets	Level 1 $ 1,046,139	Level 2 $ -	Level 3 $ -	Total $ 1,046,139
	1,046,139	-	-	1,046,139

There were no transfers between levels during the financial year.

Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value. The carrying amounts of trade receivables and trade payables are assumed to approximate their fair values due to their short-term nature. The fair value of financial liabilities is estimated by discounting the remaining contractual maturities at the current market interest rate that is available for similar financial instruments.

Note 33. Key management personnel disclosures

Compensation

The aggregate compensation made to directors and other members of key management personnel of the Group is set out below:

Short-term employee benefits Post-employment benefits	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 334,254 406,296 20,640 28,819	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 334,254 406,296 20,640 28,819
	354,894	435,115

Note 34. Remuneration of auditors

During the financial year the following fees were paid or payable for services provided by Grant Thornton Audit Pty Ltd, the auditor of the Company, and unrelated firms:

Audit services - Grant Thornton Audit Pty Ltd Audit or review of the financial statements Other services - Grant Thornton Audit Pty Ltd Tax compliance services Audit services - Deloitte (EKJV) Audit or review of the financial statements	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 99,640 90,750	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 99,640 90,750
	22,869	25,516
	122,509	116,266
	4,587	4,177

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 35. Contingent liabilities

Native title claims have been made with respect to areas which include tenements in which the Group has interests. The Group is unable to determine the prospects for success or otherwise of the claims and, in any event, whether or not and to what extent the claims may significantly affect the Group or its projects.

Note 36. Commitments

Capital commitments Committed at the reporting date but not recognised as liabilities, payable: Property, plant and equipment Lease commitments - operating Committed at the reporting date but not recognised as liabilities, payable: Within one year One to five years Lease commitments - finance Committed at the reporting date and recognised as liabilities, payable: Within one year One to five years Total commitment Less: Future finance charges Net commitment recognised as liabilities Representing: Lease liability - current (note 21) Lease liability - non-current (note 24)	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 2,345,155 845,403	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 2,345,155 845,403
	396,299 1,417,983	401,178 1,515,417
	1,814,282	1,916,595
	952,032 516,919	802,440 876,147
	1,468,951 (48,132)	1,678,587 (106,785)
	1,420,819	1,571,802
	912,405 508,414	748,948 822,854
	1,420,819	1,571,802

Capital commitments relate to mining capital expenditure commitments relating to the East Kundana Joint Venture.

Operating lease commitments include contracted amounts for mining tenement leases. In order to maintain current rights of tenure to mining tenements, the Group will be required to outlay the above-mentioned funds in respect of tenement lease rentals and to meet minimum expenditure requirements of the Western Australian Mines Department. These obligations are expected to be fulfilled in the normal course of operations.

Finance lease commitments include contracted amounts for East Kundana Joint Venture underground mining equipment secured under finance leases expiring within 18 to 36 months. Under the terms of the leases, the Group has the option to acquire the leased assets for predetermined residual values on the expiry of the leases.

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 37. Related party transactions

Parent entity and ultimate parent entity

Rand Mining Limited (‘Rand’) is the parent entity. Tribune Resources Limited is the ultimate parent entity and holds 44.19% of shares in Rand and consolidates Rand for financial reporting purposes.

Subsidiaries

Interests in subsidiaries are set out in note 39.

Associates

Interests in associates are set out in note 14.

Joint ventures

Interests in joint ventures are set out in note 14.

Key management personnel

Disclosures relating to key management personnel are set out in note 33 and the remuneration report included in the directors' report.

Transactions with related parties

The following transactions occurred with related parties:

	Consolidated	Consolidated
	30 Jun 2019	30 Jun	2018
	$	$
Payment for other expenses:
Payment of royalties to Lake Grace Exploration Pty Ltd *	30,462	24,425
Payment for executive accommodation fees to Lake Grace Exploration Pty Ltd *	40,500	27,000
Payment for consulting fees to Lake Grace Exploration Pty Ltd *	9,926		-
Option fees paid to Resource Capital Limited *	-		6,416
Payment of rent, rates and levies for office to Melville Parade Pty Ltd *	62,962	74,453
Reimbursement of operating expenses to Iron Resources Liberia Ltd *	473,410		-

An entity in which Anthony Billis is a director.

Receivable from and payable to related parties

There were no trade receivables from or trade payables to related parties at the current and previous reporting date.

Advances from related parties

During the financial year, advances of $1,000,000 (2018: $950,000) were made between Rand Mining Limited and Tribune Resources Limited. These amounts were repaid prior to the reporting date. As disclosed above, there were no receivables from related parties at 30 June 2019. Anthony Billis, Gordon Sklenka and Otakar Demis are directors of Tribune Resources Limited.

Terms and conditions

All transactions were made on normal commercial terms and conditions and at market rates.

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 38. Parent entity information

Set out below is the supplementary information about the parent entity.

Statement of profit or loss and other comprehensive income

Profit/(loss) after income tax Total comprehensive income Statement of financial position Total current assets Total assets Total current liabilities Total liabilities Equity Issued capital Accumulated losses Total equity/(deficiency)	Parent 30 Jun 2019 30 Jun 2018 $ $ (490,665) 3,540,952	Parent 30 Jun 2019 30 Jun 2018 $ $ (490,665) 3,540,952
	(490,665)	3,540,952
	Parent 30 Jun 2019 30 Jun 2018 $ $ - 595,877
	559,062	5,633,642
	16,899,967	37,840
	76,654,367	37,840
	16,694,186 (92,789,491)	16,694,186 (11,098,384)
	(76,095,305)	5,595,802

Guarantees entered into by the parent entity in relation to the debts of its subsidiaries

The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2019 and 30 June 2018.

Contingent liabilities

The parent entity had no contingent liabilities as at 30 June 2019 and 30 June 2018.

Capital commitments - Property, plant and equipment

The parent entity had no capital commitments for property, plant and equipment as at 30 June 2019 and 30 June 2018.

Significant accounting policies

The accounting policies of the parent entity are consistent with those of the Group, as disclosed in note 2, except for the following:

Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
Dividends received from subsidiaries are recognised as other income by the parent entity and its receipt may be an indicator of an impairment of the investment.

Rand Mining Limited Notes to the financial statements 30 June 2019

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Note 39. Interests in subsidiaries

The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in note 2:

		Ownership interest	Ownership interest
	Principal place of business /	30 Jun 2019	30 Jun 2018
Name	Country of incorporation	%	%
Rand Exploration N.L.	Australia	100.00%	100.00%
Mount Manning Resources Pty Ltd*	Australia	50.00%	50.00%

This is a dormant entity, there was no balances or transactions as at 30 June 2019 and 30 June 2018.

Note 40. Cash flow information

Reconciliation of profit after income tax to net cash from operating activities

Profit after income tax expense for the year Adjustments for: Depreciation and amortisation Net loss/(gain) on disposal of property, plant and equipment Share of profit from equity accounted investments Gain on revaluation of equity instruments at fair value through profit or loss Net loss on loss of significant influence at fair value through profit or loss Impairment of exploration and evaluation Non-operating expenses Change in operating assets and liabilities: Increase in trade and other receivables Decrease/(increase) in inventories Decrease/(increase) in income tax refund due Decrease/(increase) in deferred tax assets Decrease/(increase) in prepayments Decrease in trade and other payables Increase/(decrease) in provision for income tax Increase/(decrease) in deferred tax liabilities Increase/(decrease) in employee benefits Increase in other provisions Net cash from operating activities Non-cash investing and financing activities	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 67,388,360 22,103,235 4,999,801 3,854,571 38,733 (14,822) (43,197,595) (11,568,700) (766,053) (228,951) 2,447,964 - 617,709 1,107,397 561,198 - (57,835) (89,108) 10,855,563 (3,487,809) 595,877 (595,877) 73,794 (549,059) 6,586 (6,586) (189,936) (622,949) 16,830,296 (231,295) (12,560,919) 3,151,562 65,473 (49,770) 29,193 7,010	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 67,388,360 22,103,235 4,999,801 3,854,571 38,733 (14,822) (43,197,595) (11,568,700) (766,053) (228,951) 2,447,964 - 617,709 1,107,397 561,198 - (57,835) (89,108) 10,855,563 (3,487,809) 595,877 (595,877) 73,794 (549,059) 6,586 (6,586) (189,936) (622,949) 16,830,296 (231,295) (12,560,919) 3,151,562 65,473 (49,770) 29,193 7,010
	47,738,209	12,778,849

Acquisition of plant and equipment by means of finance leases	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 832,192 1,814,575

		Consolidated	Consolidated
	30	Jun 2019	30 Jun 2018
		$	$
Acquisition of plant and equipment by means of finance leases		832,192	1,814,575

Rand Mining Limited Notes to the financial statements 30 June 2019 Note 40. Cash flow information (continued)

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Changes in liabilities arising from financing activities

Consolidated Balance at 1 July 2017 Net cash used in financing activities Acquisition of assets by means of finance leases Balance at 30 June 2018 Net cash used in financing activities Acquisition of assets by means of finance leases Balance at 30 June 2019	Lease liability $ 429,429 (672,202) 1,814,575
	1,571,802 (983,174) 832,192
	1,420,820

Note 41. Earnings per share

Profit after income tax attributable to the owners of Rand Mining Limited Weighted average number of ordinary shares used in calculating basic earnings per share Weighted average number of ordinary shares used in calculating diluted earnings per share Basic earnings per share Diluted earnings per share	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 67,388,360 22,103,235	Consolidated 30 Jun 2019 30 Jun 2018 $ $ 67,388,360 22,103,235
	Number 60,148,475	Number 60,148,475
	60,148,475	60,148,475
	Cents 112.04 112.04	Cents 36.75 36.75

Note 42. Events after the reporting period

On 26 July 2019, the Company successfully obtained the Court Orders and the effect of the Court Orders is that the purchase of those shares is not invalid.

Subsequent to the year end, the Company relinquished the following tenements relating to Seven Mile Hill, P15/5182 and P15/5183.

Rand Mining Limited Directors' declaration 30 June 2019

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In the directors' opinion:

the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the International Accounting Standards Board as described in note 2 to the financial statements;
the attached financial statements and notes give a true and fair view of the Group's financial position as at 30 June 2019 and of its performance for the financial year ended on that date; and
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

The directors have been given the declarations required by section 295A of the Corporations Act 2001.

Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.

On behalf of the directors

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_________ Anthony Billis Director

27 September 2019 Perth

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Level 43 Central Park 152-158 St Georges Terrace Perth WA 6000

Correspondence to: PO Box 7757 Cloisters Square Perth WA 6850

T +61 8 9480 2000 E [email protected] W www.grantthornton.com.au

Independent Auditor’s Report

To the Members of Rand Mining Limited

Report on the audit of the financial report

Opinion

We have audited the financial report of Rand Mining Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30 June 2019, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies, and the Directors’ declaration.

In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001 , including:

a giving a true and fair view of the Group’s financial position as at 30 June 2019 and of its performance for the year ended on that date; and
b complying with Australian Accounting Standards and the Corporations Regulations 2001 .

Basis for opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

www.grantthornton.com.au

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation.

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Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter	How our audit addressed the key audit matter
Carrying value of mine development assets – refer to
summary of significant accounting policy Note 2 and Note
18
The Group has recorded a mine development asset totalling	Our procedures included, amongst others:
$11,031,972 (2018: $9,442,475) at 30 June 2019 relating to
the further mineralisation in existing ore bodies and to expand	obtaining and documenting our understanding of
the capacity of the mine to maintain its production.	management’s process and controls related to the
	depletion assessment including identification of and
Amortisation of mine development assets is calculated by the	calculation of the applied amortisation;
application of the units of production method, which includes	obtaining management’s reconciliation of capitalised mine
proved, estimated and probable reserves.	development and agreed to the general ledger;
	reviewing management’s amortisation calculation including:
The above estimates and judgements require specific analysis	`o`testing the mathematical accuracy of the
and valuation expertise. Furthermore, these estimates and	calculations;
judgements can have an impact on the carrying value of	`o`evaluating management’s ability to perform accurate
deferred mining expenditure, provision for mine rehabilitation,	estimates; and
and recognition of deferred tax assets, as well as the amount	`o`agreeing key inputs to supporting documentation
of depreciation and amortisation charged.	engaging an independent expert to evaluate the resource
	and reserve estimates used by the Group’s technical
This area is a key audit matter due to the significant	expert; and
management estimates and judgment involved in determining	 assessing the adequacy of financial report disclosures.
the appropriate accounting treatment.
Investments accounted for using the equity method
divestment – refer to summary of significant accounting
policy Note 2 and Note 14
The Group has recorded a loss of $2,447,964 in relation to the	Our procedures included, amongst others:
disposal and divestment of shares held in Tribune Resources
Ltd (TBR), previously recorded as an investment accounted	reading court orders and legal representations relating to
for using the equity method (2018: $57,960,264).	the instructions to divest the TBR shares;
	reviewing of the court orders determination that the Void
The divestment of shares held in TBR, due to court order,	Shares are not invalid shares;
involves significant complexities in the transition between and	obtaining management’s assessment and reconciliation of
application of accounting standards and the determination of	financial impact of the divestment and agreeing to the
loss of significant influence.	general ledger;
	understanding management’s accounting treatment
Included in these TBR investment shares were 1,135,000	considerations relevant to the change in the nature of the
shares that were deemed to be void (“Void Shares”). These	TBR Shares and Void Shares held during the period;
shares were not subject to the divestment orders.	 assessing the appropriateness of the calculations of the
	treatment of the divestment, including whether such
This area is a key audit matter due to significant management	treatment complies with the relevant accounting standards;
judgement involved in the application of accounting standards	and
and the material amounts reported.	 assessing the adequacy of the related financial statement
	disclosures.

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Information other than the financial report and auditor’s report thereon

The Directors are responsible for the other information. The other information comprises the information included in the Group’s annual report for the year ended 30 June 2019, but does not include the financial report and our auditor’s report thereon.

Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the financial report

The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf. This description forms part of our auditor’s report.

Report on the remuneration report

Opinion on the remuneration report

We have audited the Remuneration Report included in pages 21 to 25 of the Directors’ report for the year ended 30 June 2019.

In our opinion, the Remuneration Report of Rand Mining Limited, for the year ended 30 June 2019 complies with section 300A of the Corporations Act 2001 .

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Responsibilities

The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001 . Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

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GRANT THORNTON AUDIT PTY LTD Chartered Accountants

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P W Warr Partner – Audit & Assurance

Perth, 27 September 2019

Rand Mining Limited Shareholder information 30 June 2019

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The shareholder information set out below was applicable as at 2 September 2019.

Distribution of equitable securities

Analysis of number of equitable security holders by size of holding:

1 to 1,000 1,001 to 5,000 5,001 to 10,000 10,001 to 100,000 100,001 and over Holding less than a marketable parcel	Number of holders of ordinary shares 251 202 52 70 23
	598
	63

Equity security holders

Twenty largest quoted equity security holders

The names of the twenty largest security holders of quoted equity securities are listed below:

TRIBUNE RESOURCES LIMITED TRANS GLOBAL CAPITAL LTD HSBC CUSTODY NOMINEES NORTHERN STAR RESOURCES LAKE GRACE EXPLORATION SIERRA GOLD LTD RESOURCE CAPITAL LIMITED J P MORGAN NOMINEES AUSTRALIA RAYPOINT PTY LTD MRS PHANATCHAKORN WICHAIKUL SPECTROK PTY LTD BERNE NO 132 NOMINEES PTY LTD IAN SANDOVER & ASSOCIATES PTY MR FRANCIS WILLIAM REGAN & MR FRANK BOZIC HKT AU PTY LTD SOUTHAM INVESTMENTS 2003 PTY STARWALL PTY LTD ELIXIR ENTERPRISES PTY LTD NIMBY WA PTY LTD	Ordinary shares % of total shares Number held issued 26,576,764 44.19 7,899,584 13.13 7,857,834 13.06 2,925,360 4.86 2,917,000 4.85 2,100,000 3.49 1,604,500 2.67 1,222,132 2.03 530,000 0.88 510,000 0.85 450,000 0.75 306,600 0.51 284,277 0.47 274,992 0.46 250,000 0.42 217,829 0.36 200,000 0.33 200,000 0.33 150,000 0.25 143,453 0.24	Ordinary shares % of total shares Number held issued 26,576,764 44.19 7,899,584 13.13 7,857,834 13.06 2,925,360 4.86 2,917,000 4.85 2,100,000 3.49 1,604,500 2.67 1,222,132 2.03 530,000 0.88 510,000 0.85 450,000 0.75 306,600 0.51 284,277 0.47 274,992 0.46 250,000 0.42 217,829 0.36 200,000 0.33 200,000 0.33 150,000 0.25 143,453 0.24
	56,620,325	94.13

Unquoted equity securities There are no unquoted equity securities.

Rand Mining Limited Shareholder information 30 June 2019

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Substantial holders

Substantial holders in the Company are set out below:

	Ordinary	shares
		% of total
		shares
	Number held	issued
TRIBUNE RESOURCES LIMITED	26,576,764	44.19
TRANS GLOBAL CAPITAL LTD	7,899,584	13.13
HSBC CUSTODY NOMINEES	7,857,834	13.06
NORTHERN STAR RESOURCES	2,925,360	4.86
LAKE GRACE EXPLORATION	2,917,000	4.85
SIERRA GOLD LTD	2,100,000	3.49

Voting rights

The voting rights attached to ordinary shares are set out below:

Ordinary shares

On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.

There are no other classes of equity securities.

Tenements

		Interest
Description	Tenement number	owned %
Western Australia, Australia
Kundana	M15/1413	12.25
Kundana	M15/993	12.25
Kundana	M16/181	12.25
Kundana	M16/182	12.25
Kundana	M16/308	12.25
Kundana	M16/309	12.25
Kundana	M16/325	12.25
Kundana	M16/326	12.25
Kundana	M16/421	12.25
Kundana	M16/428	12.25
Kundana	M24/924	12.25
Seven Mile Hill	M15/1233	50.00
Seven Mile Hill	M15/1234	50.00
Seven Mile Hill	M15/1291	50.00
Seven Mile Hill	M15/1388	50.00
Seven Mile Hill	M15/1394	50.00
Seven Mile Hill	M15/1409	50.00
Seven Mile Hill	M15/1743	50.00
Seven Mile Hill	M26/563	50.00
Mt Celia *	P15/6370	50.00
West Kimberley *	E04/2548	100.00
Red Lake 1 *	P15/6398	50.00
Red Lake 2 *	P15/6399	50.00
Red Lake 3 *	P15/6400	50.00
Blue Dam *	P15/6401	50.00
Yikari *	P26/4476	50.00
Yikari *	P26/4477	50.00

Under application

AI assistant

RAND MINING LIMITED — Annual Report 2019

65721_rns_2019-09-29_5aed93ea-e550-4456-a143-392e7a776a58.pdf

Rand Mining Limited ABN 41 004 669 658

Directors

Principal activities

Dividends

Review of operations

East Kundana Joint Venture

Mining

Raleigh

Rubicon/Hornet/Pegasus

Exploration

Overview of EKJV Projects

Seven Mile Hill (Rand's interest 50%)

Corporate

Investment in Tribune Resources Ltd

Option to acquire Tapeta iron ore project in Liberia

Share Buy-back programme

Northern Star’s offer to purchase Rand’s interest in the EKJV

Resources and Reserves

Rand Mining Limited Directors' report 30 June 2019

Mineral Resource and Ore Reserve Governance and Internal Controls

Competent Person Statements

Rand Mining Limited Directors' report 30 June 2019

TABLE 2

Notes to tables:

Significant changes in the state of affairs

Investment in Tribune Resources Limited

Iron Resources Limited option

Matters subsequent to the end of the financial year

Likely developments and expected results of operations

Environmental regulation

Greenhouse gas and energy data reporting requirements

Company secretaries

Meetings of directors

Remuneration report (audited)

Principles used to determine the nature and amount of remuneration

Non-executive directors' remuneration

Executive remuneration

Group performance and link to remuneration

Use of remuneration consultants

Voting and comments made at the Company's 2018 Annual General Meeting ('AGM')

Details of remuneration

Amounts of remuneration

Service agreements

Share-based compensation

Issue of shares

Additional information

Additional disclosures relating to key management personnel

Shareholding

Loans to key management personnel and their related parties

This concludes the remuneration report, which has been audited.

Indemnity and insurance of officers

Indemnity and insurance of auditor

Proceedings on behalf of the Company

Non-audit services

Officers of the Company who are former partners of Grant Thornton Audit Pty Ltd

Auditor's independence declaration

Auditor

Auditor’s Independence Declaration

To the Directors of Rand Mining Limited

Rand Mining Limited Statement of changes in equity For the year ended 30 June 2019

Note 1. General information

Note 2. Significant accounting policies

New or amended Accounting Standards and Interpretations adopted

AASB 15 Revenue from Contracts with Customers

Impact of adoption

Basis of preparation

Note 2. Significant accounting policies (continued)

Historical cost convention

Critical accounting estimates

Parent entity information

Principles of consolidation

Operating segments

Revenue recognition

Revenue from contracts with customers

Note 2. Significant accounting policies (continued)

Sale of gold

Dividends

RAND MINING LIMITED Annual Report 2019