ANNUAL REPORT
for the year ended 30 June 2017Corporate Information |
ABN 67 009 129 560 |
Directors |
Ms Bronwyn Barnes (Non-Executive Chairman - appointed 5 April 2017) Dr Derek Fisher (Non-Executive Director) Mr Bruce McFadzean (Non-Executive Director) Mr Campbell Baird (Managing Director - resigned 12 September 2017) |
Company Secretary Mr Stuart McKenzie |
Registered Office Suite 4, Level 1, 2 Richardson Street WEST PERTH WA 6005 Tel +61 8 9388 7877 Fax +61 8 9382 2399 |
Bankers Commonwealth Bank of Australia 150 St Georges Terrace PERTH WA 6000 |
Share Register Computershare Limited Level 11, 172 St Georges Terrace PERTH WA 6000 Tel + 61 8 9323 2000 Fax + 61 8 9323 2033 |
Auditors |
RSM Australia Partners Level 32, Exchange Tower 2 The Esplanade PERTH WA 6000 |
Website Address www.indianaresources.com.au |
ASX Code Shares are listed on the Australian Securities Exchange under stock code IDA. |
Contents | |
Chairman's Report | 3 |
Directors' Report | 4 |
Remuneration Report | 17 |
Consolidated Statement of Profit or Loss and Other Comprehensive Income | 25 |
Consolidated Statement of Financial Position | 26 |
Consolidated Statement of Changes in Equity | 27 |
Consolidated Statement of Cash Flows | 28 |
Notes to the Financial Statements | 29 |
Directors' Declaration | 57 |
Independent Auditor's Report | 58 |
Auditor's Independence Declaration | 61 |
ASX Additional Information | 62 |
Indiana Resources Limited - Annual Report
Dear Shareholders,
I am pleased to introduce Indiana Resources' 2017 Annual Report. Having completed the sale of the Chilalo Graphite Project to Graphex Mining Limited in June last year, Indiana repositioned itself as a dedicated Tanzanian exploration and development company, focused on its Kishugu and Naujombo gold prospects and the Ntaka Hill Nickel Project.
During the year, the Company made good progress with both Kishugu and Naujombo where further exploration confirmed the prospectivity of these two gold projects. At Ntaka Hill, study work confirmed the potential for a low-cost development option and together with a significantly improved outlook for the nickel price, the Company is confident that the value of Ntaka Hill can be realised.
Gold exploration consisted of geophysical work, extensional and in-fill soil sampling programs and rotary air blast (RAB) drilling at Kishugu and Naujombo. The RAB drilling was designed as a reconnaissance program across previously identified strong soil gold anomalies to establish whether gold was also present in the bedrock. It was encouraging that along each line of drilling over a strike of 9.5 kilometers and 5.5 kilometres for Naujombo and Kishugu respectively, zones of anomalous gold were intersected within the bedrock. This drilling program laid a strong platform for follow up exploration and is an important step in unlocking the gold systems at Naujombo and Kishugu.
Aircore drilling commenced in June 2017 that focused on targets identified from the RAB drilling and follow up field work, including a strong gold-in-soil anomaly at Naujombo South. The drilling intersected significant zones of mineralisation in the bedrock and outlined a new open-ended gold mineralised zone at Naujombo South. It is particularly pleasing that as we explore the extensive Naujombo and Kishugu region, gold targets continue to be discovered. These exciting, first-pass drilling results at Naujombo South clearly demonstrate the prospectivity of the Naujombo area.
Owing to the current uncertainty associated with recently passed legislation relating to the legal and regulatory framework governing the natural resources sector in Tanzania, the Company elected to pause exploration until there was greater clarity on any potential impact on the Company's activities. Since the changes to the legislation in July, the detail and scope of those changes remain unclear and while the Company remains committed to its Tanzanian assets, the Board has elected to commence a search for a new project outside Tanzania as an immediate priority.
As a result, Mr Campbell Baird agreed to stand down as Managing Director, while the Company undertakes the search for a replacement for Mr Baird, with a skill set more appropriate for project acquisition. The Board thanks Mr Baird for his efforts in challenging circumstances and wishes him well with his future endeavours.
The Company also has a controlling interest in the Ntaka Hill Nickel Project. This project contains a large Mineral Resource. While previous analysis of development opportunities had been based on a larger scale, medium grade operation, a recently completed scoping study reassessed the approach to development and identified a low-capital cost, smaller scale project that has the capacity to operate commercially at current nickel prices. With demand for nickel expected to be driven by growth in the use of lithium-ion batteries, Ntaka Hill provides low cost exposure to a rising nickel price. We believe that in the current nickel price environment and with the findings of recent study work, Ntaka Hill will deliver value to our shareholders.
During the year, the Company welcomed prominent mining investor, Investmet Limited as a cornerstone investor. Investmet Limited is led by Mr Michael Fotios, a highly experienced mining executive who has created substantial shareholder value through managing and investing in a number of ASX-listed companies, including Eastern Goldfields Limited, General Mining Corporation and Northern Star Resources. In addition, substantial shareholder BPM Capital Limited, increased its interest to 14.60%.
I would like to thank shareholders for their continued support during a challenging year and look forward to providing update s on our progress over the coming year.
Bronwyn Barnes Chairman
Indiana Resources Limited published this content on 26 September 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 26 September 2017 07:04:08 UTC.
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