2010 - perth mint · 2010-11-29 · australia’s bullion coin programme. the australian nugget...
Post on 05-Jul-2020
0 Views
Preview:
TRANSCRIPT
gold corporation The trading name of Gold Corporation is The Perth Mint.
2010annual report
ContentsStatement of Compliance 1
The Year in Brief 2
Gold Corporation – More than a Century in Precious Metals 3
Mission Statement 4
Chairman’s Review 5
Review of Operations 7
Activities 13
Gold Refining 13
Precious Metal Investment Products 13
Commemorative and Numismatic Coins 14
Precious Metal Coin Blanks 14
Tourism 14
Group Structure 15
Corporate Governance 16
Corporate Directory 21
Group Directory 22
Statutory Reporting Requirements 23
Senior Management 26
Auditor General’s Opinion 27
Performance Indicators 30
Certification of Performance Indicators 33
Certification of Financial Statements 34
Financial Statements 35
Page 1
Statement of Compliance
15 September 2010
The Honourable Colin Barnett MEc MLA
Premier; Treasurer; Minister for State Development
24th Floor, Governor Stirling Tower
197 St Georges Terrace
PERTH WA 6000
Statement of Compliance
In accordance with the Financial Management Act 2006, we hereby submit for your
information and for presentation to the Parliament, the Annual Report of Gold
Corporation for the year ended 30 June 2010.
The Annual Report has been prepared in accordance with the provisions of the
Financial Management Act 2006.
R G BOWE
Chairman
M E HARBUZ
Executive Director
Page 2
The year in brief
Pre-tax profit of $18.7 million – the second best on record
Dividend of $16.0 million and tax equivalent of $8.0 million paid to the Government of Western Australia
Turnover increased to $5.7 billion, from $2.5 billion in the previous year as the refinery turnover was included from 30 march 2010
The value of client metal on deposit increased to $2.5 billion from $1.9 billion in the previous year
2.7 million coins, bars and medallions sold
Coin, bar and medallion sales added value to 10.13 tonnes of gold, 218.5 tonnes of silver and 9.86kg of platinum
Australian numismatic coins issued include:
– Coins commemorating the 200th anniversaries of the Postal Service and Lachlan Macquarie becoming the Governor of New South Wales
– Coins commemorating Australia’s participation in the Winter Olympics and the FIFA World Cup
– Australian Sea Life coins
Some 5.3 million precious metal blanks were supplied to other mints
The Gold refinery became a wholly owned business of Gold Corporation
77,000 people came to The Perth Mint’s visitor experience.
Page 3
Gold Corporation – MoRE tHAn A CEntURy in PRECioUS MEtAlS
Gold Corporation’s history started with the founding of
the Perth branch of Britain’s Royal Mint in 1899. At that
time, gold sovereigns and half sovereigns were used
throughout the British Empire as everyday circulating
coins and it was the Royal Mint’s responsibility to
supply them. Rather than shipping gold to London,
minting sovereigns and then distributing them back
to Britain’s colonies, the Royal Mint built a number of
branch mints throughout the Empire in places where
gold was found. The Perth Mint was one of these
– built to refine gold mined in Western Australia and
turn it into sovereigns.
When sovereigns were withdrawn from
circulation in 1931, the Mint turned its
skills to the production of base metal
coins, although it still continued to refine
gold. It remained under British ownership
until 1970, when control passed to the
Government of Western Australia.
Gold Corporation was created by the
Gold Corporation Act 1987 to take over
the operations of the Mint and launch
Australia’s bullion coin programme.
The Australian Nugget bullion coin was
launched in 1987, and was followed
by many other successful bullion coin
programmes and numismatic and
commemorative coins.
The Mint’s refining activities eventually
outgrew the old premises in the city of
Perth and a new refinery was built near
Perth’s international airport. This facility
commenced operation in 1990.
Gold Corporation has two wholly owned
subsidiaries – the Western Australian
Mint and GoldCorp Australia.
Page 4
Mission Statement
Gold Corporation and its subsidiaries, trading as The Perth
Mint, supply precious metal related products and services,
including:
Refining of gold and silver and producing London Good
Delivery bars;
Value added cast bars, minted bars and Australian legal
tender bullion coins which promote the ownership of
precious metals;
Precious metal depository products which enable investors to
own precious metals without having to deal with the security,
insurance and other issues associated with taking physical
possession of precious metals;
Proof, numismatic and commemorative coins which are legal
tender of Australia and other countries;
Storage and safekeeping of precious metals, and
Coin blanks and other precious metal products.
It also operates a tourist attraction based on the themes of gold,
coins and their history, and offers assaying and other services to
the gold industry.
Gold Corporation commits to:
Supplying products, services and experiences which delight
customers and users
Promoting the history and heritage of Australia locally and
internationally through its coins
Preserving its heritage assets and history for the benefit of
the community
Providing fulfilment, development, security and fair reward to
its employees
Generating an acceptable financial return to its shareholder,
the Government of Western Australia, and
Paying a fair royalty to Australian Treasury on Australian legal
tender coins issued
It is committed to high ethical standards, respect for people and
the environment, and enlightened business practices.
Chairman’s ReviewRoSS BowE
As the worst of the financial crisis passed
and the world economy seemed to be
set for a return to gradual but modest
growth, stock markets started recovering
and confidence in traditional investment
assets returned. While the flight to the
perceived safety of precious metals
subsided somewhat, it was still evident.
The factory worked on two or three shift
operation for much of the year to mint the
large quantities of bullion coins demanded
by the market. Our factory modernisation
programme which has been progressively
implemented over the past few years,
and still continues, once again proved
its worth as high production levels were
achieved together with better efficiencies.
Sales of numismatic or collector coins
increased once more, a credit to the
design studio for producing beautiful
designs, the factory for minting high
quality products and the marketing team
for their worldwide marketing efforts.
Highlights of the year’s numismatic
programme were:
Coins to commemorate the 200th
anniversaries of the Postal Service and
Lachlan Macquarie becoming Governor
of New South Wales
Coins to commemorate Australia’s
participation in the Vancouver Winter
Olympics and the FIFA World Cup
South Africa TM
Australian Sea Life coins
The depository business continued to
increase with the value of clients’ precious
metals on deposit reaching a record $2.5
billion. Despite the fact that some clients
took advantage of the higher prices and
sold precious metal holdings at a profit,
purchases of metal exceeded sales.
I am pleased to report that Gold Corporation has
enjoyed another successful year, delivering a financial
performance that is the second best in its history,
second only to the previous year’s outstanding result.
The frenetic demand for precious metals which was
evident in 2008 / 2009 as a result of the global financial
crisis subsided somewhat in 2009 / 2010, but still
remained at historically high levels. Gold Corporation
was able to take advantage of this high demand -
because of our investment decisions over the past few
years to increase operational capacity and development
capabilities - and made a profit before tax of $18.7 million,
compared to $38 million in 2008 / 2009.
Page 5
Page 6Page 6
I would like to welcome back the employees of the refinery as
this business returned to 100% ownership by Gold Corporation
at the end of March 2010. As a result, the refinery operated as
a wholly owned business of Gold Corporation for the last three
months of the financial year. I also take the opportunity to
thank our former partners in the refinery business; subsidiaries
of Newmont and Johnson Matthey, for a successful partnership
in the gold refining business which lasted for eight years.
Newmont’s gold mines in the region continue to be valued
customers of the refinery.
The decline in the number of tourists visiting Western Australia
continues to be a concern, yet during the year 77,000 people
visited the exhibition at The Perth Mint, which includes the
famous gold pour. This number was similar to the previous year.
Refurbishment of the Mint’s retail outlet commenced in April
and the much improved and expanded facility will be opening
shortly. The project will continue with the refurbishment of the
exhibition area in due course.
Gold Corporation’s varied activities worldwide would
not be possible without its many business partners – its
Australian and international agents, distributors, dealers
and counterparties. Many of these relationships are long
standing. I would like to acknowledge the contribution of all
these business partners to the Corporation’s success and look
forward to the relationships continuing.
While the global financial crisis, which caused such a boom in
the demand for precious metals, seems to be over there are still
concerns about the world economy. Economists’ predictions
range from the optimistic to the bearish; from the sanguine to
the fearful. This very uncertainty, coupled with high sovereign
debt levels and trade imbalances that persist, will continue to
promote interest in precious metals as investment, insurance
or wealth preserving assets. For the foreseeable future high
demand is expected for precious metal products and we will
continue to seek ways of increasing and improving our offerings
to take advantage of the situation. The medium term future
looks particularly positive from a marketing perspective.
I would like to thank the Minister responsible for Gold
Corporation, the Honourable Colin Barnett MEc MLA, Premier;
Treasurer; Minister for State Development, for his interest
and support. I also thank my fellow Board members for their
diligent service and acknowledge the additional work done
by those serving on Board committees. Thanks are due to Mr
Don Mackay-Coghill who left the Board in August after many
years of service. He was the founding Chief Executive Officer of
Gold Corporation in 1988 and was on the Board until last year.
I would also like to thank Mr Chris Payne who left the Board
during the year and I would like to welcome Mr John Murphy as
the new Treasury representative on the Board.
Lastly, I would like to thank the management and staff of
Gold Corporation for again rising to the challenges that arose
and producing a very pleasing result. In particular I want
to acknowledge the efforts of our Chief Executive Officer
Ed Harbuz and our Chief Financial Officer Richard Hayes in
guiding the organisation through a particularly hectic and
profitable year and in successfully achieving the reintegration of
the refinery operation.
R G BOWE
Chairman
Page 7
Review of Operations M. EDwARD HARBUZ, CHiEF EXECUtiVE oFFiCER
Financial Summary
This was another busy year for Gold Corporation.
The world economy showed promising, if hesitant signs
of recovery from the global financial crisis. However
demand for precious metals remained high as the flight
to safety by investors continued. Activity was below the
previous year’s frenetic levels but demand for coins and
small bars was still high, and customer metal held in
depository continued to increase.
The profit before tax was the second best
on record, $18.7 million, compared to
the previous year’s $38 million. Turnover
increased to $5.7 billion compared to
$2.5 billion in the previous financial year.
This increase is partially due to the fact
that the gold refinery’s turnover during
the last quarter was included as the
refinery business became wholly owned
by Gold Corporation on 29 March 2010.
The partnership between subsidiaries
of Gold Corporation, Newmont
Australia Ltd and Johnson Matthey plc
was dissolved on that date and Gold
Corporation assumed full ownership of
the refinery.
Payments to the Government of Western Australia in 2009 / 2010 financial year included an income tax equivalent of
$8.0 million and a dividend of $16.0 million. The agreement which enables Gold Corporation to issue Australian legal tender coins was renewed for a further ten year period commencing 1 July 2010 and, under this agreement, the royalty payable to Australian Treasury for 2009 / 2010 will be $3.7 million.
This year’s result would not have been possible without the extensive investment in facilities and the development of the organisation’s capabilities over the last few years. This continued during the year with capital expenditure of $13.8 million, including assets acquired on assuming full ownership of the refinery. This was funded internally without resorting to
increased borrowings.
Page 8
Business Activities
Coins
Gold Corporation, operator of The Perth Mint, is the sole
producer of Australia’s legal tender gold and silver bullion
coins, which are distributed internationally and have a
significant worldwide market share. The historic Mint also
produces and markets Australian legal tender numismatic or
commemorative coins and legal tender coins which are of other
countries. All Australian legal tender coins are minted under an
agreement with Australian Treasury, which receives a royalty or
seigniorage on each coin sold.
Some 2.7 million coins, minted bars and medallions were sold
during 2009 / 2010, the same as in the previous year. The sale
of these products resulted in adding value to 10.13 tonnes
of gold, 218.5 tonnes of silver and 9.86 kg of platinum. The
previous year’s figures were 13.5 tonnes of gold, 229 tonnes
of silver and 32 kg of platinum. More than 90% of the revenue
earned from the sale of these products was from exports.
Interest in gold and silver bullion coins and bars rose
significantly in the 2008 / 2009 year as a result of the global
financial crisis; in fact there was actually a shortage of these
products for an extended period. This boom ended just before
the 2009 / 2010 financial year but interest in bullion remained
significantly above pre-crisis levels. The market remained
volatile; for example in May 2010 there was another spike in
demand as events relating to indebted Euro zone countries
unfolded. All Perth Mint bullion products sold well and the
complete mintages of the 2010 silver 1oz Kookaburra bullion
coin (300,000) and the 2010 gold 1oz Lunar “Year of the Tiger”
coins (30,000) were sold out. Significantly increased sales of
bullion products in the very large United States market resulted
from increased marketing efforts in this area.
There were signs that the collector coin market was affected by
economic uncertainties but international sales of these products
increased as new geographical markets were penetrated.
Further website development was done during the year and
the very pleasing growth in e-commerce continued both in
Australia and internationally. More than 100 different collector
or numismatic coins or sets were issued during the year. Full
mintages of many of these were sold out – a growing trend with
Perth Mint numismatic coins.
The Australian legal tender numismatic coins issued included:
200 years of Postal Service in Australia
200th anniversary of Lachlan Macquarie becoming Governor
of New South Wales
Shanghai World Expo
Treasures of Australia – Gold
FIFA World Cup South Africa TM
Vancouver Winter Olympics
Continuation of Discover Australia – The Dreaming Series
Australian Sea Life
In the factory the blank production and minting operations
benefited from the ongoing investment and training programme
to increase production capacity, improve quality standards,
increase flexibility, reduce waste and improve efficiencies.
This programme continues and, as part of it, a new 1,000 tonne
automatic press for the minting of large precious metal coins
was ordered during the year. It will be installed early in 2011.
The quality management system was further enhanced and
the quality certification (ISO 9001.2001) was maintained.
The AS/NZS4801.2001 accreditation for health and safety
management was also maintained.
Page 9
Precious Metal Coin Blanks
The Perth Mint produces high quality precious metal blanks for
its own use and is a valued supplier of such blanks to a number
of other mints throughout the world. The ISO 9001.2001 quality
certification plays an important role in assuring customers of
the quality and specifications of coin blanks supplied.
The factory enhancement programme extends to blank
manufacturing as well. An additional silver continuous caster
and other pieces of new equipment were commissioned during
the year; increasing both production capacity and efficiencies.
A total of 8.7 million precious metal blanks was produced,
compared to 7.2 million in the previous year.
Perth Mint Visitor Experience
Although the number of visitors to Perth is still depressed due to
world economic conditions, it was gratifying that the numbers
did not decline further during the year. The number of visitors
to the exhibition, which incorporates the spectacular gold pour
in the historic melt house as well as displays of precious metal
coins, bars and nuggets, was almost unchanged at 76,984. Sales
of bullion coins in the shop continued to be buoyant and sales of
numismatic coins as well as Australian pearls, diamonds, opals
and jewellery were pleasing.
The refurbishment of the shop is in progress and the new
facility, the design of which combines respectful use and
restoration of an important heritage space, with contemporary
practice, will be officially opened during November 2010.
Design work on refurbishing the exhibition has commenced.
Perth Mint Depository
Investment demand brought on by the continuing global
financial crisis and sovereign debt issues drove the gold price
to record levels during the financial year. Price volatility kept
investor interest at a high level. Many clients sold metal to
take profits but inflows of metal were higher resulting in a
net increase in metal held. At the year end, there were 16,700
clients from 105 countries entrusting precious metals to the
value of over $2.5 billion to Gold Corporation. Allocated
metal is stored in vaults, while some of the unallocated metal
belonging to investors is used to support the metal requirements
of the minting and refining operations of The Perth Mint.
Perth Mint Depository’s three products: Perth Mint Depository
Services, Perth Mint Certificate Program and the Australian
Stock Exchange listed Perth Mint Gold all performed strongly.
Gold Refinery
The gold refinery, wholly owned by Gold Corporation as from
29 March 2010, is located at Perth Airport and is Australia’s only
major gold and silver refiner. Australia was the world’s second
largest producer of gold during the 2009 calendar year and
will probably maintain this status in 2010. The Perth refinery
refined almost all of Australia’s gold during the financial year
as well as gold produced in New Zealand, Papua New Guinea,
Fiji, Thailand and Malaysia. A significant quantity of gold
jewellery scrap, mainly from a number of Asian countries, was
also refined. The quantity of gold refined in 2009 / 2010 would
make the refinery one of the largest in the world. It shipped
its gold and silver ingots and bullion in other forms to markets
around the world as well as supplying the Mint’s own needs.
westmill - Kaltails
Gold Corporation’s Westmill division held a 10% interest in the
Kaltails gold tailings retreatment project in Kalgoorlie, with
the managing partner Newmont Australia Limited owning the
remaining share. For some time, activity was limited to ongoing
rehabilitation and maintenance of the site. During the financial
year, Kaltails was sold to Kalgoorlie Consolidated Gold Mines
and Gold Corporation has no further involvement or obligations
related to the venture.
westmill - State Batteries
A number of State Batteries (Government owned minerals
processing facilities) were vested in Gold Corporation in
1986 but these have ceased operating. Westmill has inherited
responsibility for them. Some of the reserves have been leased
out to private operators for various purposes and the others are
unused. Twenty four of the sites have been classified as “Possibly
Contaminated – Investigation Required” in terms of Section 13
of the Contaminated Sites Act 2003. The investigations and any
remediations are being carried out on a priority basis.
The Northampton Battery reserve was identified as a priority
site requiring remediation because of lead contamination.
During the 2009 / 2010 year, the lead tailings on this reserve
were excavated and placed in a sealed containment cell, at
a cost of $1.5 million. The funds for this were provided by
the Department of Environment and Conservation from the
Contaminated Sites Management Account. Further assessment
work is to be done on the site.
Employees
Page 10
The total number of permanent staff in Gold Corporation’s
existing operations as at the beginning of the year increased
from 232 to 233. Of these, 228 were full-time and five part-
time. On 29 March 2010 the gold refinery became part of Gold
Corporation and, at 30 June 2010, the refinery’s 83 permanent
employees raised Gold Corporation’s number of permanent
employees to 316. The employees were assigned to the various
business entities as shown below:
30 June 2010 30 June 2009
Gold Corporation 41 42
Western Australian Mint 140 136
GoldCorp Australia 52 54
Total – Operations Existing as at 30 June 2009
233 232
Refinery 83
Total With Refinery 316
In the original operations, there were 162 salaried employees
and 71 award staff members employed on 30 June 2010. This
workforce consisted of 48% women (up from 46% in 2009). Of
the Tier 2 managers (reporting to the CEO) 42.9% were women
and of the Tier 3 employees 31.16% were women. Staff turnover
dropped from 10% to 9%. The average age of employees was
44.7 years and the average length of service was 6.9 years.
In the combined operations the workforce consisted of 41%
women as at 30 June 2010. Of the Tier 2 managers 33.3% were
women and of the Tier 3 employees 30.8% were women.
CoMPlAintS PoliCy AnD CUStoMER SERViCE CHARtER
Gold Corporation recognises the importance of delighting
its customers. As a public statement of its commitment to
service and complaints handling, the Corporation’s Complaints
Policy and Customer Service Charter embodies the following
elements:
A documented and whole-of-organisation commitment to the
efficient and fair resolution of complaints.
Fairness to the complainant.
Adequate staff resources, with a high level of delegated
authority.
Speedy and courteous responses.
No charges for the handling of complaints.
A formal system to determine causes and implement
remedies.
Systematic recording of complaints and their outcomes.
Regular reviews of the quality management and complaints
review process.
In the coin business, a total of 34,344 orders were processed
and 36 complaints were received, down from 79 the previous
year. Most of these were related to coins or packaging damaged
in transit. Depository processed 15,800 orders and there were
two complaints.
Page 11
industry and Community Participation
As part of its functions under the Gold Corporation Act 1987,
the Corporation is mandated to encourage interest in precious
metals and to support the Australian gold industry. Its Mission
Statement also requires it to promote the history and heritage of
Australia through its coins, and preserve its heritage assets and
history for the benefit of the community.
The Perth Mint involves itself in the local tourism industry
and business community through its memberships of Perth
Convention Bureau, the Tourism Council of Western Australia,
Tourism Australia, Tourism WA Network, Association of
Perth Attractions, the Perth Regional Tourism Association
(Experience Perth), the Australian Tourism Export Council,
and the International Business Council.
During the year, The Perth Mint participated in the Australasian
Numismatic Dealers’ Association Coin, Banknote and Stamp
Shows in Sydney, Melbourne, Brisbane, the Gold Coast and
Perth. It also supported other initiatives by local industry
associations. These activities included the Australian Gold
Conference, the Jewellers’ and Metalsmiths’ Group Conference,
and the annual awards programme of the Tourism Council of
Western Australia.
Internationally, The Perth Mint took part in the European World
Money Fair in Berlin; the American Numismatic Association’s
World’s Fair of Money in Los Angeles; the Beijing International
Stamp and Coin Exposition in China; the Tokyo International
Coin Convention in Japan and the Coin Constellation
Conference in St Petersburg, Russia. From May 2010, The Perth
Mint exhibited a suite of Australian legal tender pure gold and
silver coins in the Australian Pavilion at the Shanghai World
Expo, China.
Through sponsorships and donations, The Perth Mint assisted
the fundraising efforts of organisations which benefited 71 local
charities and 129 schools, clubs and local interest groups during
the year.
In support of Western Australia’s performance arts, The
Perth Mint maintained its sponsorship of the West Australian
Symphony Orchestra’s Private Giving Program (formerly the
Patrons’ Program) for the sixth consecutive year. During the
year, the Mint was a seasonal sponsor of the West Australian
Opera and the Western Australian Academy of Performing Arts.
It also produced the official commemorative medallions for
the XXII Hyundai Hopman Cup, a major international tennis
tournament hosted in Perth.
Page 12
Closing Comments
This was another exciting year, with
results being the second best in Gold
Corporation’s history. Interest in
precious metals remained strong,
resulting in at times vigorous demand
for depository products, coins and
minted bars from the mint and cast
bars from the refinery. With the
refinery again becoming part of Gold
Corporation in the last quarter, the
advantage of being able to offer a
full range of precious metal products
became evident. This advantage will
be optimised further in the future.
The performance of numismatic
products and the visitor attraction
held up surprisingly well given their
dependence on discretionary spending.
Once more, the benefits of a worldwide
spread of marketing efforts were
realised. The Perth Mint’s profile
and reputation both in Australia and
internationally continued to open
doors and create opportunities.
I would once again like to thank the
team – the management and staff of
Gold Corporation – for their effort and
commitment. This was a less frenetic
year than the previous one but there
were some challenging times. The team
always rose to the challenges. Special
thanks are also due to the Chairman
and the Board for their support,
guidance and encouragement.
The new financial year has started well,
although there is much uncertainty
in world markets. What is evident is
that precious metals continue to be of
great interest, although actual sales
are volatile – the inherent investment
demand seems to be there but it takes
negative events in, or statements about,
the world economy to spark flurries of
activity. The Perth Mint is in a better
position than ever to take advantage
of these opportunities as they arise in its
various markets and 2010 / 2011 should
be another successful year.
M E HARBUZ
Chief Executive Officer
Page 13
Activities
Gold Refining
The refinery located at Perth airport is Australia’s only major gold and silver refiner and refines virtually all of Australia’s gold production as well as gold produced in surrounding countries. It also refines jewellery scrap, mainly from Asian countries.
Gold and silver bars, as well as bullion in other forms are shipped to customers around the world and to the bullion
market in London.
Precious Metal investment Products
Gold is regarded by investors worldwide
as a trusted asset and convenient method
of diversifying an investment portfolio.
Gold Corporation offers the following
products to investors:
Bullion Coins and Bars
Gold Corporation, the operator of The Perth Mint, is the producer of Australia’s official investment or bullion coins.
Each coin is issued as legal tender under the Australian Currency Act 1965.
The appeal of bullion coins struck by The Perth Mint is enhanced by superb artistry portraying iconic animals:
99.99% pure gold Australian Kangaroo coins
99.9% pure silver Australian Kookaburra coins
99.9% pure silver Australian Koala coins
99.99% pure gold and 99.9% pure silver
Australian Lunar coins
Together with a popular range of minted
bullion bars and refinery cast bars, The
Perth Mint’s bullion coins are distributed
through an international network of
authorised agents, banks and dealers.
Perth Mint Depository
Perth Mint Depository provides investors
with the opportunity of investing in
precious metals without having to deal
with the issues related to taking physical
possession. It has three products: Perth
Mint Depository Services, Perth Mint
Certificate Program and the Australian
Stock Exchange listed product, Perth
Mint Gold.
Perth Mint Depository Services
Perth Mint Depository Services (PMDS)
offers a range of precious metal
purchase, storage and trading facilities
on internationally competitive terms to
both national and international investors.
The service is promoted principally via
the internet (http://www.perthmint.
com.au/depositoryservices.aspx).
The minimum investment is US$50,000
for international clients and AUD$50,000
for Australian residents.
Perth Mint Certificate Program
The Perth Mint Certificate Program
(PMCP) offers precious metal investments
via an international network of approved
dealers. With this product, investors
receive a certificate confirming their
acquisition of precious metal stored at
The Perth Mint. The minimum investment
is US$10,000 for overseas investors and
AUD$5,000 for Australian investors.
Page 14
Perth Mint Gold
For investors who prefer the convenience of trading on the
Australian Stock Exchange, Perth Mint Gold (ASX code:
ZAUWBA) is structured as a warrant and enables both large and
small investors to have an exposure to gold in their portfolios.
Commemorative and numismatic Coins
The Perth Mint designs, manufactures and markets precious
metal numismatic coins that are distinguished by their:
Collector and commemorative design themes
Mirror-like proof quality finishes
Limited mintages
Numbered Certificates of Authenticity
Luxury presentation packaging
Marking a range of popular anniversaries, people and events,
numismatic coins also celebrate the uniqueness of the
Australian continent and the heritage, history and culture of its
people. These coins are not only sold successfully in Australia,
but also throughout the world, using the Mint’s established
international marketing network.
In addition to the traditional numismatists, there are increasing
numbers of collectors and gift buyers interested in unusual
and innovative coins. As part of its strategy to grow this sector
of the numismatic market, The Perth Mint has developed a
reputation for innovative coin treatments and pioneering coin
manufacturing techniques.
As a result, the Mint has made popular coins with unusual
shapes, coloured designs, moving images, selective 24-carat
gilding and integral lockets containing free-moving objects.
The majority of Perth Mint numismatic releases are issued
as Australian legal tender. However, the Mint also produces
collector coins issued as legal tender of Tuvalu, the Cook Islands
and other countries.
Precious Metal Coin Blanks
Gold Corporation also manufactures precious metal coin blanks
for other mints. With world-class manufacturing technology
and unrivalled expertise in all areas of blank production, it can
create gold, silver, platinum and palladium blanks in an almost
limitless number of shapes, weights and sizes.
tourism
The Perth Mint is one of Western Australia’s most popular
tourist destinations. A winner of many tourism awards, it offers
a unique and exciting visitor experience. Among the many
highlights of a guided tour of The Perth Mint are the spectacular
gold pouring demonstration, the opportunity to lift a gold bar,
and stunning displays of gold in its many forms.
Welcoming more than 70,000 international, interstate and local
visitors annually, including many educational groups, The Perth
Mint also provides an important glimpse into the history of gold
production and precious metal minting in Western Australia
since the late nineteenth century.
An elegantly appointed retail store in which visitors can acquire
coins, nuggets, jewellery and souvenirs is an important and
popular element of The Perth Mint visitor experience.
Page 15
Group Structure
Government of western Australia
Gold Corporation
GoldCorp Australia western Australian Mint
the Perth Mint westmill Perth Mint Depository
Retail tourism
Exhibition
Precious metal blank
manufacture
Manufacturing and marketing of investment
and numismatic coins, other
minted items and related products
Gold and silver refining, manufacture
and marketing of value-added
bullion bars
Precious metal linked investment
products
Hol
din
g C
ompa
nySu
bsid
iari
estr
adin
g n
ames
Act
ivit
ies
100%
100%100%
Corporate Governance
Board of Directors
The Board of Directors is the governing body of Gold
Corporation. The Gold Corporation Act 1987 empowers the
Board to determine policies for the Corporation and its
subsidiaries, and requires the Board to:
promote and develop markets for gold and gold products in
Australia and elsewhere;
develop and expand the Corporation’s business for the benefit
and to the greatest advantage of the people of Australia;
operate in accordance with prudent commercial principles;
and
strive to earn a commercial rate of return on its capital.
The Board’s authority is limited by the provisions in the Act
and by Ministerial direction. The Board acknowledges its
accountability to the Corporation’s only shareholder, the
Government of Western Australia.
The Board is committed to sound corporate governance
principles, high standards of legislative compliance, and
appropriate financial and ethical behaviour. The Board regards
directorial and managerial conduct seriously and as an integral
part of sound governance practices. In accordance with that,
the Board has committed itself to comply, wherever applicable,
with the spirit and letter of the Australian Institute of Company
Directors Code of Conduct and Guidelines. Additionally,
Directors can seek independent professional advice on Board
matters at the Corporation’s expense, with the approval of the
Chairman. No such advice was sought during the year.
Membership
Directors are appointed by the Governor of Western Australia
on the nomination of the Minister and approval by Cabinet.
Mr Don Mackay-Coghill retired as a director on 21 August 2009.
Mr John Murphy replaced Mr Chris Payne as the representative
of the Under Treasurer on 2 March 2010. At year-end the Gold
Corporation Board consisted of six non-executive Directors and
two executive Directors.
Director Status Expiry of term
R G Bowe (Chair) Non-executive 30 June 2011
R B Bennett Non-executive 30 June 2011
R F Edwards Non-executive 30 June 2011
G M McMath Non-executive 30 June 2013
J W F Murphy Non-executive N/A, ex-officio
C S Wharton Non-executive 30 June 2013
M E Harbuz Executive 30 June 2012
R G Hayes Executive 30 June 2013
Page 16
Page 17
Director Biographies
R G BowE BEc
Ross Bowe is currently Chairman of
Racing and Wagering Western Australia.
From 1988 to 1994 Mr Bowe was Under
Treasurer of Western Australia and
Chairman of the Western Australian
Treasury Corporation.
RAy BEnnEtt MAiCD
Ray Bennett has had an extensive
background in finance and banking with
over 25 years experience in the banking
industry. Mr Bennett was the General
Manager Retail Banking for Challenge
Bank immediately prior to leaving the
banking industry.
Mr Bennett was subsequently appointed
Chief Executive Officer of the then
Western Australian Totalisator Agency
Board in 1995. He remained as Chief
Executive until the Totalisator Agency
Board was abolished in 2003, and
Racing and Wagering Western Australia
established to continue the operations
of the Totalisator Agency Board and take
control of the integrity and management
of the racing industry, including allocation
of funds across the three racing codes. Mr
Bennett was appointed Chief Executive of
the new organisation, a position he held
until his retirement in 2008.
Mr Bennett is a Commissioner with the
Western Australian Lotteries Commission
and is a member of a project committee
investigating development options for
Gloucester Park Raceway.
Ron EDwARDS BEc (wA), MEd (Hons) (Syd), EdD (wA)
Ron Edwards is Chairman of Seafood
Experience Australia, the promotion arm
of the Australian seafood industry. He
also is a founding member of the Graham
(Polly) Farmer Foundation committed to
providing opportunities for Indigenous
youth; he is a Council Member of the
Anglican Schools Commission; is a
Page 17
Front row (from left) Ray Bennett, Ed Harbuz, Ross Bowe and Gaye McMath Back row (from left) Chris Wharton, Richard Hayes, Ron Edwards and John Murphy
Page 18
member of the Australian Governments Social Inclusion Board
and chairs The Third Sector Compact Working Group for the
Australian Government.
In 2006 Dr Edwards was awarded a Doctorate in Education
from the University of Western Australia; his topic was social
inclusion in the low fee Anglican School system in Western
Australia. Formerly Dr Edwards was the Member for Stirling
in the Federal Parliament and was Chairman of the Economics
Committee for the Federal Government. Recently he has worked
on European trade matters for the Australian seafood industry
and provides strategic advice on various projects.
GAyE McMAtH BCom MBA (Melb) FCPA, FAiCD
Gaye McMath is the Executive Director, Finance and
Resources at the University of Western Australia. Ms McMath
previously held the position of Pro Vice-Chancellor (Resource
Management) and Chief Financial Officer at Murdoch
University. Ms McMath was employed with BHP Billiton for 23
years in a wide range of senior financial, strategic planning and
commercial management positions in the steel, mining and
treasury divisions. She was a BHP Billiton nominated director
on various domestic and international Boards.
Ms McMath is currently a Director of the Silver Chain Nursing
Association, Western Australian Treasury Corporation and
Verve Energy.
JoHn MURPHy BCom, MCom
John Murphy represents the Western Australian Under
Treasurer, Mr Timothy Marney. He is currently the acting
Director of the Infrastructure Division in the Western
Australian Department of Treasury and Finance. In this role
Mr Murphy heads a team that provides advice to the
government on the major Government owned infrastructure
and commercial agencies.
Mr Murphy has worked within the State Public Service for over
twenty years in a variety of financial, economic and policy roles.
As well as working in the Department of Treasury and Finance
he has worked in agencies dealing with the resources and
transport sectors.
CHRiS wHARton
Chris Wharton is Chief Executive Officer of West Australian
Newspaper Holdings Ltd, a position he has held since
December 2008.
Prior to that, Mr Wharton was Managing Director of Channel
Seven Perth Pty Ltd for nine years. His newspaper career began
as a journalist and he worked in every area of newspaper
management in Sydney before being appointed Chief Executive
Officer of Perth’s Community Newspaper Group in 1995.
Mr Wharton is a director of the Chamber of Commerce and
Industry of Western Australia and a member of its Audit and
Risk Committee. He is on the Board of Trustees of the Telethon
Trust, a member of the WA Olympic Council, the Committee for
Perth, the Australian Business Arts Foundation and the State
Ministerial Council for Suicide Prevention.
M EDwARD HARBUZ, BSc (Eng), MBl
Ed Harbuz was appointed Chief Executive Officer of Gold
Corporation on 1 July 2003. Mr Harbuz was Managing Director
of the South African Mint Company Pty Ltd for almost seven
years until 2001 and Group Managing Director of Cullinan
Holdings Ltd, one of South Africa’s oldest industrial companies
prior to that. Preceding this, he was Chief Executive of Cullinan
Refractories and Managing Director of Steetley Refractories
in the United Kingdom. Mr Harbuz holds a Master of Business
Leadership from the University of South Africa and a BSc
(Engineering Electrical) from the University of Natal.
RiCHARD HAyES, BComm, MBA, CPA, ACiS
Richard Hayes was appointed as Chief Financial Officer of
Gold Corporation in March 2003. He was previously the Chief
Operating Officer and an executive Director of AGR Matthey
from October 2002 to March 2003 and prior to that he was
Director, Finance and Deputy Managing Director of AGR Joint
Venture from December 1998 to October 2002. Prior to that,
he was Chief Financial Officer and Company Secretary of
Golden West Refining Corporation Ltd, an ASX-listed company
controlled by N M Rothschild & Sons Ltd which, in December
1998, merged with Gold Corporation’s refining and jewellery
manufacturing business to become the AGR Joint Venture. Mr
Hayes came to Australia from Zimbabwe in 1987 and held a
number of financial management positions with Boral Ltd prior
to joining Golden West.
Meeting Attendance
There were six formal meetings of the Directors of Gold
Corporation during the year ended 30 June 2010 and a number
of informal meetings. The number of formal meetings attended
by each Director is indicated in the table below.
Directors’ Meeting Attendance
Director Attended Eligible
R G Bowe (Chair) 6 6
R B Bennett 5 6
R F Edwards 5 6
D Mackay-Coghill 1 1
G M McMath 5 6
J W F Murphy 1 1
C P Payne 3 5
C S Wharton 5 6
M E Harbuz 6 6
R G Hayes 5 6
Board Committees
The Board has established two committees, chaired by
independent non-executive Directors, to assist in the execution
of its duties. These are the Audit and Risk Management
Committee and the Remuneration and Allowances Committee.
Each committee member has only one vote and each resolution
must be passed by unanimous agreement. In the event that
agreement cannot be reached, the matter is referred to the
Board for resolution.
Audit and Risk Management Committee
The Committee advises the Board on the quality, integrity,
reliability and adequacy of the Corporation’s information,
accounting and control systems and the risk management process.
The Committee acts as a communications interface between the
Board and the Corporation’s internal and external auditors.
Membership of the Committee at year-end comprised Ms
McMath (Chair), Mr Bennett and Mr Bowe who was appointed
to replace Mr Mackay-Coghill.
Attendees at meetings of the Committee were Mr Hayes
(CFO), Mr David Koch (Manager, Corporate Governance and
Risk) who replaced Mr Brian Bartsh, and Mr Tony de Nobrega
(Group Accountant). Mr Harbuz (CEO) is an invitee. Attendees
and invitees do not have voting rights. The Audit and Risk
Management Committee met five times during the financial
year. Attendance at the meetings is indicated in the table below.
Audit and Risk Management Committee
Meeting Attendance
Attended Eligible
G M McMath (Chair) 5 5
R B Bennett 4 5
D Mackay-Coghill 1 1
R G Bowe 4 4
Remuneration and Allowances Committee
The Board of Directors delegates authority for determining
conditions of employment to the Remuneration and Allowances
Committee. The Committee’s responsibilities include
determining senior staff salary levels, alterations to core
conditions of employment and incentive bonus schemes.
The Remuneration and Allowances Committee consists of
Mr Bowe (Chair), Mr Bennett, who was appointed to replace
Mr Mackay-Coghill, and Mr Harbuz. Ms Susan Coutts-Wood,
Manager Human Resources, also attends the meetings by
invitation. The Committee met three times during the financial
year. Attendance at the meeting is indicated in the table below.
Remuneration and Allowances Committee Meeting Attendance
Attended Eligible
R G Bowe (Chair) 3 3
M E Harbuz 3 3
R B Bennett 3 3
Management Committee
Executive Management Committee
The Executive Management Committee consists of the senior
managers of Gold Corporation. It meets weekly and is chaired
by Mr Harbuz. Committee meetings provide a forum for senior
managers to keep the management team abreast of key issues in
their area and to discuss strategic issues facing the Corporation.
Risk Management
The Board actively monitors the Corporation’s risk management
system to ensure it is robust and fully integrated with the
Corporation’s business processes. Regular monthly and
quarterly reports are submitted to the Board on group financial
risk, credit risk, internal control matters, occupational safety
and health, and environmental issues.
Page 19
Page 20
Corruption Prevention
Fraud and corruption controls are an
integral component of Gold Corporation’s
Risk Management programme.
The organisation’s policies and practices
are reviewed regularly and are subject to
internal and external audit programmes.
Staff awareness sessions including new
staff inductions, are conducted. Gold
Corporation is obliged to report any
suspected or actual breaches to the
Corruption and Crime Commission.
Public interest Disclosure
Gold Corporation is committed to the
aims and objectives of the Public Interest
Disclosure Act 2003 (Whistleblower
Protection). It recognises the value and
importance of contributions of staff to
enhance administrative and management
practices and strongly supports
disclosures being made by staff as to
corrupt or other improper conduct.
All staff are aware of the public interest
disclosure process, and information on
the process plus the appropriate forms are
available on Gold Corporation’s intranet.
The Public Interest Disclosure Officers are
Mr David Koch and Mr Graham Segall.
No claims were submitted during the
2009 / 2010 period.
Public Sector Standards and Ethical Codes
Gold Corporation is aware of the
requirement to comply with Section
31(1) of the Public Sector Management
Act 1994.
During the current financial year, no
issues relating to non-compliance with
the public sector standards, or the WA
Code of Ethics were raised.
Page 21
Corporate Directory
Registered office
Street Address:
Perth Mint Buildings
310 Hay Street
East Perth, WA 6004
Australia
Tel: +61 8 9421 7222
Fax: +61 8 9221 7031
Email: info@perthmint.com.au
Postal Address:
GPO Box M924
Perth, WA 6843
Australia
Website: www.perthmint.com.au
Minister
The Honourable Colin Barnett MEc MLA
Premier; Treasurer; Minister for State
Development
Statute
Gold Corporation was established under
the Gold Corporation Act 1987.
Directors
R G Bowe (Non-executive), Chairman
R B Bennett (Non-executive)
R F Edwards (Non-executive)
G M McMath (Non-executive)
J W F Murphy (Non-executive)
C S Wharton (Non-executive)
M E Harbuz (Executive, CEO)
R G Hayes (Executive, CFO)
Company Secretary
A P Melville
Bankers
Westpac Banking Corporation
Page 22
Group Directory
Gold CorporationStreet Address: Perth Mint Buildings, 310 Hay Street, East Perth, WA 6004, Australia
Tel: +61 8 9421 7222 Fax: +61 8 9221 7031
Postal Address: GPO Box M924, Perth, WA 6843, Australia
Email: info@perthmint.com.au Website: www.perthmint.com.au
Contacts: M Edward Harbuz, Chief Executive Officer Bee Ng, Executive Assistant to the Chief Executive Officer
Refinery
Street Address: 131 Horrie Miller Drive, Perth Airport, WA 6105, Australia
Tel: +61 8 9479 9999 Fax: +61 8 9479 9909
Perth Mint Depository
Street Address: Perth Mint Buildings, 310 Hay Street, East Perth, WA 6004, Australia
Tel: +61 8 9421 7280 Fax: +61 8 9221 7074 Email: pmds@perthmint.com.au
Contacts: Nigel Moffatt, Treasurer and Manager, Perth Mint Depository John Durham, Manager, Depository Services
western Australian Mint
Street Address: Perth Mint Buildings, 310 Hay Street, East Perth, WA 6004, Australia
Tel: +61 8 9421 7222 Fax: +61 8 9421 7499 Email: info@perthmint.com.au
Contact: Justin Kees, General Manager, Operations
the Perth Mint Shop
Street Address: Perth Mint Buildings, 310 Hay Street, East Perth, WA 6004, Australia
Tel: +61 8 9421 7428 Fax: +61 8 9221 9804 Email: info@perthmint.com.au
Contact: Cathy Anza, Manager, Visitor Experience
Goldcorp Australia the Perth Mint
Australia
Street Address: Perth Mint Buildings, 310 Hay Street, East Perth, WA 6004, Australia
Tel: +61 8 9421 7222 Fax: +61 8 9221 3812 Email: info@perthmint.com.au
Contact: Tina Kircher, Australian Wholesale Manager
the Americas
Tel: +1 514 519 2963 Email: r.di@sympatico.ca
Contact: Rosie Di Gregorio
Hong Kong
PMHK Ltd
Street Address: Room 1401, Jubilee Centre, 46 Gloucester Road Wanchai, Hong Kong
Tel: +852 2525 1130 Fax: +852 2810 6809 Email: dominicl@PMHK.com.hk
Contact: Dominic Leung
Japan
K’dom Company Ltd
Street Address: 2-12-17 Hirakawacho, Chiyoda-ku Tokyo 102-0093, Japan
Tel: +81 3 3237 3067 Fax: +81 3 3237 3068 Email: koji-ishikawa@tune.ocn.ne.jp
Contact: Koji Ishikawa
Europe
Street Address: Hildesheimerstr. 29 D-38159 Vechelde, Germany
Tel: +49 5302 930 426 Mobile: +49 160 991 41935 Email: guenther.wolters@t-online.de
Contact: Günther Wolters
China
Street Address: Perth Mint Buildings, 310 Hay Street, East Perth, WA 6004, Australia
Tel: +61 8 9421 7222 Fax: +61 8 9221 3812 Email: info@perthmint.com.au
Contact: Ron Currie, Sales and Marketing Director
CiS Countries
Street Address: Perth Mint Buildings, 310 Hay Street, East Perth, WA 6004, Australia
Tel: +61 8 9421 7222 Fax: +61 8 9221 3812 Email: info@perthmint.com.au
Contact: Andrey Ignatchenko, CIS Wholesale Manager
Middle East & india
Street Address: Perth Mint Buildings, 310 Hay Street, East Perth, WA 6004, Australia
Tel: +61 8 9421 7222 Fax: +61 8 9221 3812 Email: info@perthmint.com.au
Contact: Andrey Ignatchenko, CIS Wholesale Manager
Page 23
Statutory Reporting Requirements
Financial Estimates
The following financial estimates for 2010 / 2011 are based
on Gold Corporation’s budget and are included to satisfy the
requirements of the Treasurer’s Instruction 953.
$000
Total Revenue 12,244,839
Total Expenditure 12,224,818
Operating profit before income tax 20,021
Income tax expense 6,006
Operating profit after income tax 14,015
Dividend 10,511
Retained earnings 3,504
Records Management
Under the requirements of the State Records Act 2000, Gold
Corporation is obliged to report on its compliance with the Act
and communicate this in its annual report. In April 2007, the
organisation received an approved status from the State Records
Office. The efficiency and effectiveness of Gold Corporation’s
current record keeping plan has been reviewed and will be
revised by no later than 31 December 2010.
Gold Corporation also reports on its record keeping training
programme and its effectiveness and efficiency. Introductory
sessions are offered to all relevant new staff which includes
their individual responsibilities under the Act. Relevant staff
then receive one-on-one training in the use of the organisation’s
electronic document and records management system.
Additional training sessions are offered on an ad hoc basis or
when an assessment of the current programme determines the
need for changes to the programme. All inductions and training
programmes are reinforced by manuals, policies and procedures.
Gold Corporation
Gold Corporation was established by the Gold Corporation
Act 1987 and the Minister responsible for the Corporation is
The Honourable Colin Barnett MEc MLA; Premier; Treasurer;
Minister for State Development. Details of the Corporation’s
mission statement, functions, structure and management are
available elsewhere in this report.
The Corporation has no policy role in government, makes no
laws or regulations except in relation to the conduct of its own
affairs, and administers no schemes that confer benefits upon or
place imposts on the public.
Section 6 of the Act empowers the Corporation’s Board of
Directors “…to determine the policy of Gold Corporation, the Mint
and GoldCorp in relation to any matter and to control the affairs
of Gold Corporation and each of its subsidiaries…”.
The Corporation’s Board is committed to sound corporate
governance principles, high standards of legislative compliance
and ethical business practice.
Freedom of information Statement
The following Information Statement has been prepared
by Gold Corporation pursuant to Part 5 of the Freedom of
Information Act 1992 (WA) and guidelines issued by the Office
of the Information Commissioner on 13 May 1994.
The Corporation keeps documents and files relating to its
administration and business activities. A number of these
documents can be inspected only under the Freedom of
Information Act 1992 (WA) [FOI].
The following were published by The Perth Mint:
90 Golden Years (published in 1989); The Perth Mint
Numismatic Issues 1986 – 1996 (published in 1996); Striking
Gold: 100 Years of The Perth Mint (published in 1999); and A
Century of Minting Excellence – The History of Australian Coin
Production at The Perth Mint (published in 1999).
Documents which can be obtained free-of-charge include Perth
Mint brochures and catalogues, media statements, annual
reports and the Numismatic Post newsletters.
Foi Exemption
A document is exempt if its disclosure would reveal information
about:
gold or other precious metal received by Gold Corporation
from a person, or held by Gold Corporation on behalf of a
person, on current account, certificate of deposit or fixed
deposit; or
a transaction relating to gold or other precious metal received
or held by Gold Corporation
Page 24
Foi Procedures and Access
It is the aim of the Corporation to make information available
promptly and at the least possible cost, and whenever possible,
documents will be provided outside the FOI process.
If information is not routinely available, the Freedom of
Information Act 1992 (WA) provides the rights enabling the
public to apply for documents held by the Corporation.
Access applications have to (i) be in writing; (ii) provide
sufficient information to enable identification of the requested
documents; (iii) provide an Australian address to which notices
can be sent; and (iv) be lodged at the Corporation, together
with any application fee payable.
Applications will be acknowledged in writing and the applicant
will be notified of the decision within 45 days.
Applicants who are dissatisfied with a decision of the
Corporation may request an internal review.
Application should be made in writing within 30 days of
receiving the notice of decision. Applicants will be notified of
the outcome of the review within 15 days.
Two applications were lodged to Gold Corporation under
Freedom of Information (FOI) legislation in 2009 / 2010.
FOI inquiries or applications should be made to the FOI
Coordinator, Mr Graham Segall, Compliance and Risk Officer,
Gold Corporation, 310 Hay Street, East Perth, WA 6004,
telephone (08) 9421 7222, facsimile (08) 9221 7031, email
Graham.Segall@perthmint.com.au Inquiries or applications
may also be directed to the Manager, Corporate Governance
and Risk, Mr David Koch, email David.Koch@perthmint.com.au
occupational Health and Safety
Commitment and Compliance
Gold Corporation has in place occupational health and safety
systems to minimise health and safety risks to employees,
customers, contractors, the public and the environment. The
systems ensure that policies, procedures and work instructions
are in place to comply with legislation, standards and codes
of practice, and to take account of all information regarding
hazards and risks related to the Corporation’s operations.
Targets and objectives are set and performance in achieving
the targets is monitored and reviewed. It adheres to relevant
legislation related to health and safety.
Gold Corporation is committed to assisting injured workers to
return to work as soon as medically appropriate and adheres
to the requirements of the Workers’ Compensation and Injury
Management Act 1981 in the event of injury or illness.
Consultation
At the Mint site there is regular consultation with employees
and this is done through regular toolbox meetings and
monthly Occupational Health and Safety Committee meetings.
Employee representatives contribute significantly at these
meetings and are fully engaged in inspections, and equipment
and process changes.
At the refinery site, staff continued to participate actively
in the site safety observation system programme, with 683
observations conducted which contributed to site safety. Forty
one potential hazards were reported and all were dealt with
satisfactorily. The Occupational Health and Safety Committee
met on twelve occasions to review safety performance and
propose improvements.
Assessments
The Mint site is subject to the Occupational Health and Safety Act
1984. It also maintains certification to AS4801.2001 for its health
and safety management system. After an external audit on 28
and 29 April 2010 to check its compliance with its certification,
the auditor recommended that the certification should continue
and this was confirmed by the certification authority.
The refinery is regarded as a mine site and is regulated by
the Mines Safety and Inspection Act 1994. Five site visits were
conducted by Mines Inspectors during the period and no
improvement notices were issued. Two audits were conducted
by the District Mines Inspector. A score of 85% was achieved
for tagging and 94% for emergency preparedness. The site
is preparing to undergo audits for ISO4801 accreditation for
safety standards in the new financial year.
Page 25
Performance Against targets
oSH item target Mint Refinery
Number of fatalities
0 0 0
Lost Time Injury/Diseases (LTI/D)Incident Rate
0 OR 10% Improvement
1.7% (-26%
Improvement)
2.2% (>10%
Improvement)
Lost Time Injury Severity Rate
0 OR 10% Improvement
25% (0% Improvement)
0% (>10%
Improvement)
Percentage of injured workers returned to work within 28 weeks
Actual Percentage to be Reported
75% 100%
Percentage of managers trained in occupational safety health and injury management responsibilities
Target >50% 90% 100%
Section 175ZE of the Electoral Act 1907 (WA)
Section 175ZE of the Electoral Act 1907 (WA) requires a public agency to include a
statement in its annual report detailing all expenditure incurred by or on behalf of the
agency during the financial year in relation to advertising, market research, polling,
direct mail and media advertising:
1. Total expenditure for 2009 / 2010 was $ 247,892.
2. Expenditure was incurred in the following areas:
Advertising agencies $ 4,554 Linx Advertising $ 4,554
Market research organisations
Nil Nil Nil
Polling organisations Nil Nil Nil
Direct mail organisations $143,843 Lasermail $143,843
Media advertising organisations
$ 99,495 Marketforce Productions $ 99,495
Page 26
Senior ManagementAt 30 JUnE 2010
Gold Corporation
Chief Executive Officer M E Harbuz
Chief Financial Officer R G Hayes
Treasurer and Manager, Perth Mint Depository N P Moffatt
Project Manager, Refurbishment B M Suchecki
Manager, Corporate Governance and Risk D J Koch
Manager, Information Systems B R Shah
Manager, Human Resources S J Coutts-Wood
Goldcorp Australia
Sales and Marketing Director R M Currie
Manager, Visitor Experience C B Anza
western Australian Mint
General Manager, Operations J K Kees
Auditor General’s Opinion
Auditor General
Page 1 of 2
4th Floor Dumas House 2 Havelock Street West Perth 6005 Western Australia Tel: 08 9222 7500 Fax: 08 9322 5664
INDEPENDENT AUDIT OPINION
To the Parliament of Western Australia
GOLD CORPORATION FINANCIAL STATEMENTS AND KEY PERFORMANCE INDICATORS FOR THE YEAR ENDED 30 JUNE 2010
I have audited the accounts, financial statements, controls and key performance indicators of Gold Corporation and the consolidated entity.
The financial statements comprise the Statement of Financial Position as at 30 June 2010, and the Statement of Comprehensive Income, Statement of Changes in Equity and Cash Flows Statement of the Corporation and the consolidated entity for the year then ended, a summary of significant accounting policies and other explanatory Notes.
The key performance indicators consist of key indicators of effectiveness and efficiency.
Board’s Responsibility for the Financial Statements and Key Performance Indicators The Board is responsible for keeping proper accounts, and the preparation and fair presentation of the financial statements in accordance with Australian Accounting Standards and the Treasurer’s Instructions, and the key performance indicators. This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial statements and key performance indicators that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; making accounting estimates that are reasonable in the circumstances; and complying with the Financial Management Act 2006 and other relevant written law.
Summary of my Role As required by the Auditor General Act 2006, my responsibility is to express an opinion on the financial statements, controls and key performance indicators based on my audit. This was done by testing selected samples of the audit evidence. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Further information on my audit approach is provided in my audit practice statement. This document is available on the OAG website under “How We Audit”.
An audit does not guarantee that every amount and disclosure in the financial statements and key performance indicators is error free. The term “reasonable assurance” recognises that an audit does not examine all evidence and every transaction. However, my audit procedures should identify errors or omissions significant enough to adversely affect the decisions of users of the financial statements and key performance indicators.
Gold Corporation Financial Statements and Key Performance Indicators for the year ended 30 June 2010
Audit Opinion In my opinion,
(i) the financial statements are based on proper accounts and present fairly the financial position of Gold Corporation and the consolidated entity at 30 June 2010 and their financial performance and cash flows for the year ended on that date. They are in accordance with Australian Accounting Standards and the Treasurer’s Instructions;
(ii) the controls exercised by the Corporation provide reasonable assurance that the receipt, expenditure and investment of money, the acquisition and disposal of property, and the incurring of liabilities have been in accordance with legislative provisions; and
(iii) the key performance indicators of the Corporation are relevant and appropriate to help users assess the Corporation’s performance and fairly represent the indicated performance for the year ended 30 June 2010.
COLIN MURPHY AUDITOR GENERAL 16 September 2010
Page 2 of 2
Gold Corporation Financial Statements and Key Performance Indicators for the year ended 30 June 2010
Audit Opinion In my opinion,
(i) the financial statements are based on proper accounts and present fairly the financial position of Gold Corporation and the consolidated entity at 30 June 2010 and their financial performance and cash flows for the year ended on that date. They are in accordance with Australian Accounting Standards and the Treasurer’s Instructions;
(ii) the controls exercised by the Corporation provide reasonable assurance that the receipt, expenditure and investment of money, the acquisition and disposal of property, and the incurring of liabilities have been in accordance with legislative provisions; and
(iii) the key performance indicators of the Corporation are relevant and appropriate to help users assess the Corporation’s performance and fairly represent the indicated performance for the year ended 30 June 2010.
COLIN MURPHY AUDITOR GENERAL 16 September 2010
Page 2 of 2
Page 30
Performance Indicators
Gold Corporation is a body corporate
incorporated in terms of the Gold
Corporation Act 1987 of Western Australia.
The purpose of Gold Corporation is to:
develop, manufacture and market
Australian legal tender investment
coins and other products that promote
the ownership of physical precious
metal for investment purposes;
design, manufacture and market proof,
commemorative and numismatic coins
and related products;
make available investment products
that enable investors to have exposure
to the value of precious metals without
having to deal with the security and
other issues associated with the
keeping of the physical metal;
provide storage and safekeeping
facilities for precious metals;
be a major supplier of precious metal
blanks to the mints of the world;
operate a tourist attraction, based on
the themes of gold and minting, that is
important to Perth and Western Australia;
supply refining and other services to
the gold industry of Australia; and
preserve the historical Mint building
and artefacts that are part of the
heritage of Perth and Australia.
The Corporation is required to operate
in accordance with prudent commercial
principles, to generate revenue sufficient
to meet its expenditure and to derive a
profit that represents a commercial rate
of return on its capital.
Under the Treasurer’s Instructions 904
and 905, a statutory authority is required
to provide appropriate key performance
indicators in its Annual Report, namely:
relevant agency level government
desired outcome(s);
key effectiveness indicators which
provide information on the extent
of achievement of an agency level
government desired outcome; and
key efficiency indicators relating an
outcome to the level of resource input
required to deliver it.
Given the above Treasurer’s Instructions
and taking into account the Corporation’s
functions under the Gold Corporation Act
1987, its outcomes are:
1. Maximisation of the Value Added to, and income Derived from, Precious Metal Coins and other Products and Services
The Australian Kangaroo and Lunar
bullion gold coins and Kookaburra,
Koala and Lunar silver coins have a
noted world market share. The Perth
Mint’s various proof, numismatic
and commemorative coins made of
gold, silver and platinum are added
value precious metal products which
are also distributed worldwide. Coin
blanks are supplied in increasing
quantities to other mints in the world.
2. Preservation and Promotion of the Perth Mint’s Heritage Assets and History
The Perth Mint exhibition includes
gold pouring demonstrations, the
Industry Collection of Gold Bars
Worldwide, historical information on
the gold industry in Western Australia
and a comprehensive range of investor
and numismatic coins. It is an integral
part of The Perth Mint’s heritage and
a premier tourist destination.
Page 31
tHE RElAtionSHiP BEtwEEn GoVERnMEnt GoAlS AnD GolD CoRPoRAtion’S PERFoRMAnCE
The Goal most aligned to Gold Corporation’s business operations is:
FinAnCiAl AnD EConoMiC RESPonSiBility
RESPonSiBly MAnAGinG tHE StAtE’S FinAnCES tHRoUGH tHE EFFiCiEnt AnD EFFECtiVE DEliVERy oF
SERViCES, EnCoURAGinG EConoMiC ACtiVity AnD REDUCinG REGUlAtoRy BURDEnS on tHE PRiVAtE SECtoR.
EFFECtiVEnESS inDiCAtoRS 2005-2006
2006-2007
2007-2008
2008-2009
2009-2010 target
the key effectiveness indicators for outcome no. 1 are:
1. Global market share of Australian Nugget gold bullion coin (Note 1)
11.6% 13% 8% 7% 5% 8%
2. Coin programs - value added to gold, silver, platinum and Palladium: (Note 2)
a) Total premium income $22.8m $26.1m $27.6m $50.4m $44.2m $45.0m
b) Total premium income expressed as a percentage of precious metal value (Note 2)
17.3% 16.1% 12.7% 8.3% 8.2% 5.7%
3. Estimated proportion of Australian fine gold production refined by AGR Matthey (Note 3)
99.9% 99.9% 99.9% 99.9% 99.9% 99.9%
4. Return on equity (Note 4) 11.6% 14.1% 5.2% 39% 17.5% 28.8%
5. Dividends/income tax equivalent payable to the Western Australian Government (Note 5)
$3.0m $7.0m $3.2m $29.1m $15.4m $14.5m
the key effectiveness indicators for outcome no. 2 are:
6. a) Visitors to Perth Mint Exhibition (Note 6)
b) Visitors’ satisfaction level86,00099.9%
82,00099.9%
82,00099.9%
77,00099.9%
77,00099.9%
88,90099.9%
notes:
1. The figures are based on Gold Fields Mineral Services data for the previous calendar year. The decline in market share was due to other suppliers having larger stocks of coins for periods of high demand.
2. The calculation is the total premium income (amount of income received above metal cost) for all legal tender coins sales, which is expressed as a percentage of the value of the precious metal value of the coins. The effectiveness indicator includes all Australian legal tender coins, as well as coins produced for other countries. The decline in the dollar value reflects the decline in bullion coin sales from the previous, frenetic, year.
3. This calculation is based on the refinery’s records and an estimate of the total Australian fine gold production.
4. The percentages show Gold Corporation’s return on equity for each respective financial year, based on ordinary activities before income tax. This
performance measure is referred to in the Gold Corporation Act 1987. Provided the Corporation produces a profit, the Government of Western Australia receives the benefit of receipt of income tax equivalents and annual dividends from the Corporation.
5. Income tax equivalent, calculated as if the Corporation were a public company, is payable to the Government of Western Australia on profit from ordinary activities. Dividends are payable annually as a percentage of after-tax profit. These payments are forecast annually in Gold Corporation’s business plan, and included in the Financial Estimates in the Annual Report.
6. a) Total number of visitors (to nearest thousand) to the Exhibition annually, based on recorded daily visitor traffic.
b) Satisfaction levels are derived from random sampling of comments entered into the visitors’ book which is available in the foyer of The Perth Mint.
Page 32
SERViCES
1. Precious Metal Coins, other Products and Services
Bullion or investment coins represent
a significant market for gold and it
is important that The Perth Mint
increases demand by promoting its
well-known gold Kangaroo and its
other bullion coins.
It is also important that proof,
commemorative and numismatic coins
are promoted as these add significant
value to precious metal. Most of these
coins are exported.
Value is also added to precious metals
in the manufacture and supply of coin
blanks to other mints in the world.
2. Cultural Heritage Conservation
Gold Corporation continually
upgrades The Perth Mint heritage
building situated at 310 Hay
Street, and currently has a project
underway to renovate and conserve
the historically significant Shop and
Exhibition housed in the building on
its original grounds in East Perth.
It also preserves historical artefacts
and documents related to minting and
the gold industry in Western Australia.
EFFiCiEnCy inDiCAtoRS 2005-2006
2006-2007
2007-2008
2008-2009
2009-2010 target
the key efficiency indicators for service no. 1 are:
1. Trading profit as a proportion of sales revenue (Note 1) 2.9% 4.0% 3.0% 2.6% 3.1% 1.1%
2. Staff costs as a proportion of trading profit (Note 2) 53.6% 55% 52.4% 33.9% 35.3% 32%
the key efficiency indicator for service no. 2 is:
3. Average cost per Exhibition/visitor expressed as an index
133 143 167 176 154
notes:
1. The percentages show the proportion of Gold Corporation’s sales revenue represented by the trading profit (gross margin) for the respective financial year. The percentage rose in 2009 / 2010 due to a fall in the percentage of lower margin bullion products as the worst of the global financial crisis receded and bullion sales declined.
2 Staff costs include employee benefits on-costs and contract staff costs, expressed as a percentage of trading profit (gross margin). Staff costs are Gold Corporation’s major expenditure, after the cost of precious metals.
3 Average cost per Exhibition/visitor is derived by calculation of total costs of Exhibition divided by annual number of visitors expressed as an index, with the 2002 / 2003 year indexed as 100.
Page 33
Certification of Performance Indicators
Certification of Performance indicators
In our opinion, the Performance Indicators for Gold Corporation and its subsidiaries
contained in this report are based on proper records, are relevant and appropriate for
assisting users to assess the performance of Gold Corporation and its subsidiaries, and
fairly represent the performance of the Group for the year ended 30 June 2010.
15 September 2010
R G BOWE
Chairman
M E HARBUZ
Executive Director
Page 34
Certification of Financial Statements
Certification of Financial Statements
The accompanying financial statements of Gold Corporation and the accompanying
consolidated financial statements have been prepared in compliance with the
provisions of the Financial Management Act 2006 from proper accounts and records
to present fairly the financial transactions for the year ended 30 June 2010, and the
financial position as at 30 June 2010.
At the date of signing, we are not aware of any circumstances which would render the
particulars included in these financial statements misleading or inaccurate.
15 September 2010
R G BOWE
Chairman
M E HARBUZ
Executive Director
R G HAyES
Chief Finance Officer
Financial statements
Page 36
Page 37
Page 38
Page 39
Page 40
Page 41
Page 42
Page 43
Page 4 4
Page 45
Page 46
Page 47
Page 48
Page 49
Page 50
Page 51
Page 52
Page 53
Page 54
Page 55
Page 56
Page 57
Page 58
Page 59
Page 60
Page 61
Page 62
Page 63
Page 6 4
Page 65
Page 66
Page 67
Page 68
Page 69
Page 70
Page 71
Page 72
Page 73
Page 74
Page 75
Page 76
Page 77
Page 78
Page 79
gold corporation The trading name of Gold Corporation is The Perth Mint.
Perth Mint Buildings 310 Hay Street East Perth, WA 6004 Australia GPO Box M924 Perth, WA 6843 Australia
Tel: +61 8 9421 7222 Fax: +61 8 9221 7031 Email: info@perthmint.com.au
www.perthmint.com.au
top related