RED HAWK MINING LIMITED 2015 ANNUAL REPORT A
Annual Report
2015Flinders Mines Limited
ABN 46 091 118 044
Highlights 1 Chairman's Report 2 Projects 3 Exploration 4
Tenement Schedule 8
Financial Report 9
Directors' Report 10
Auditor's Independence Declaration 21
Corporate Governance Statement 22
Consolidated statement of profit or loss and other
comprehensive income 23
Consolidated statement of
financial position 24
Consolidated statement of
changes in equity 25
Consolidated statement of
cash flows 26
Notes to the consolidated
financial statements 27
Directors' Declaration 50
Independent Auditor's Report 51
ASX Additional Information 54
Competent Persons CORPORATE DIRECTORY DirectorsRobert M Kennedy (Chairman)
Ian Gordon (Managing Director)
Kevin J Malaxos
(Non-executive Director)
Ewan J Vickery (Non-executive Director)
Nicholas J Smart
(Alternate for Mr Kennedy)
Justin Nelson
Level 1, 135 Fullarton Road Rose Park, South Australia 5067 Telephone +61 8 8132 7950
Facsimile +61 8 8132 7999
DMAW Lawyers
Level 3, 80 King William Street Adelaide, South Australia 5000 Telephone +61 8 8210 2222
Facsimile +61 8 8210 2233
Computershare Investor Services Level 5, 115 Grenfell Street Adelaide, South Australia 5000 Telephone +61 8 8236 2300
Facsimile +61 8 8236 2305
Grant Thornton Australia Level 1, 67 Greenhill Road Wayville, South Australia 5034
National Australia Bank
Level 1, 161-167 Glynburn Road Firle, South Australia 5070
listed on the Australian Securities
Exchange.
ASX code - FMS
www.flindersmines.com
The website includes information about the Company, its strategies,
The information in this report that relates to Exploration Targets, Exploration Results, or Mineral Resources is based on information compiled by Dr Graeme McDonald who is a member of the Australian Institute of Mining and Metallurgy and a full-time employee of Flinders Mines Limited. Dr McDonald has sufficient experience that is relevant to the
styles of mineralisation and types of deposits 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 McDonald consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
This report may include forward-looking statements. These forward-looking statements are based on management's expectations and beliefs concerning future events as of the time of the release of this document. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, some of which are outside the control of Flinders Mines Limited, that could cause actual results to differ materially from such statements. Flinders Mines Limited makes no undertaking to subsequently update or revise the forward-looking statements made in this report to reflect events or circumstances after the date of this report.
projects, reports and ASX announcements.
Front and back cover photo:
Blackjack Hills looking west-southwest.
FLINDERS MINES LIMITED
Highlights
Completion of infill RC and Diamond drilling at PIOP to move the majority of resources into the Indicated and Measured
Port Hedland
Darwin
Norther N territory
Townsville
JORC category.
Pilbara Iron Ore ProjectAlice Springs
Quee Nsl a Nd
Finalisation of Metallurgical testwork to determine the
Tom Price
Mt Magnet
Wester N australia
a ustralia
south
australia
Brisbane
appropriate processing method
for PIOP ore.
New BID drilling identified
Geraldton
Perth
Canegrass ProjectAdelaide
Ne W south Wales
Canberra
Sydney
additional areas of high grade BID mineralisation within the PIOP area.
The application for and granting of ancillary titles required for PIOP infrastructure including
CORPORATE500km
Victoria
Melbourne
tasma Nia
Hobart
roads, camp and airstrip.
Significant progress in gaining additional environmental approvals for a 25Mtpa project, with EPA approval now received.
Completion of a capital raising in November 2014 to raise
approximately $5.3 million
Finalisation of an agreement with Todd Corporation to sell the PIOP via an Option to Purchase which was rejected by shareholders on 24 September 2015.
Delta prospect looking north-west.
2015 ANNUAL REPORT 1
Chairman's Report
Dear fellow shareholders,
The 2015 financial year has been a testing time for the resources industry, but particularly for the iron ore business.
The price of iron ore almost halved from US$100 per tonne to US$55 per tonne for 62% grade ores and continues to fluctuate daily.
This sustained change in pricing has had a significant effect on the
profitability of many smaller Australian iron ore producers, most of which have reported significant losses. These effects have also flowed through to prospective iron ore developers like Flinders Mines Limited.
Capital markets are not prepared to support new iron ore developments in the current pricing environment, no matter the merits of the project.
Against this market sentiment, Flinders has been well supported in its activities over the past year by its major shareholder, Todd Corporation, which has provided the majority of funding towards completing the drilling and other testwork required at our wholly owned Pilbara Iron Ore Project (PIOP) in Western Australia. Without that support, the majority of the now one billion tonne plus PIOP resource would still be in a formative state.
Your Company now has an iron ore resource that is understood and well drilled to Indicated and Measured status. However, the market is not prepared to support iron ore projects until commodity prices start to rise again.
In light of this, your Directors entered into an agreement with Todd Corporation in May 2015, to sell the PIOP via an option, where Flinders Mines receives a number of significant cash payments until Todd elects to exercise the option.
This agreement was rejected by our shareholders on 24 September, 2015.
In respect to the future of the PIOP, your Directors now intend to examine any further opportunities within the existing Alliance Agreement with Todd and failing that, other alternatives for development of the project.
The Alliance Agreement,signed in February 2014 and remaining in effect until 31 December this year regardless of the 24 September shareholder vote outcome, provides for ongoing feasibility studies aimed at providing Flinders with access for its PIOP ore to Todd-backed transport and port export infrastructure on the WA coast.
Your Company will need to continue work at the PIOP in order to retain the project and is planning to ensure that the PIOP tenements are kept in good standing until an improvement in iron ore prices can deliver a development solution.
I sincerely thank those shareholders who supported the share purchase plan in November 2014 and the staff and Directors of Flinders for their efforts during a most challenging year.
Robert Kennedy
Chairman
2 FLINDERS MINES LIMITED
|
distributed by
|
