FINDERS
RESOURCES
LIMITED
ABN 82 108 547 413
ANNUAL REPORT
31 DECEMBER 2018
ANNUAL REPORT - 31 DECEMBER 2018
Corporate Directory
Directors | Colin Moorhead | Non-Executive Chairman |
David Fowler | Chief Executive Officer | |
Gavin Caudle | Non-Executive Director | |
Gordon Galt | Non-Executive Director | |
Roderick Webster | Non-Executive Director | |
Mark Sherman | Non-Executive Director | |
Michael Anderson | Alternate for Gordon Galt | |
Douglas Tay | Alternate for Gavin Caudle | |
Secretary | Susan Hunter | |
Registered Office | 25 Colin Street | |
West Perth WA 6005 | ||
Telephone: + (61 8) 6555 3996 | ||
Facsimile: + (61 8) 6555 3998 | ||
Email: info@findersresources.com | ||
Website | www.findersresources.com | |
Stock Exchange Listing | ASX: FND | |
Auditor | Ernst & Young | |
11 Mounts Bay Road | ||
Perth WA 6000 | ||
Share Registry | Boardroom Pty Limited | |
Grosvenor Place | ||
Level 12, 225 George Street | ||
Sydney NSW 2000 Australia | ||
Telephone - | ||
1300 737 760 (within Australia) | ||
+61 2 9290 9600 (outside Australia) | ||
Australian Business Number | 82 108 547 413 |
ANNUAL REPORT - 31 DECEMBER 2018
Table of Contents
Chairman's Letter
Directors' Report
Remuneration Report
Auditors Independence Declaration
Consolidated Statement of Comprehensive Income for the year ended 31 December 2018 Consolidated Statement of Financial Position as at 31 December 2018
Consolidated Statement of Changes in Equity for the year ended 31 December 2018
Consolidated Statement of Cash Flows for the year ended 31 December 2018
Notes to the Consolidated Financial Statements for the Year Ended 31 December 2018
Directors' Declaration
Independent Audit Report
Shareholders Information as at 26 March 2019
3 | P a g e
ANNUAL REPORT - 31 DECEMBER 2018
Chairman's Letter
Dear Shareholders,
I am pleased to present to you the 2018 Annual Report for Finders Resources Limited (the "Company").
In November 2017 Eastern Fields Development Limited (EFDL), on behalf of its parent company PT Merdeka Copper Gold Tbk (Merdeka), launched an offer to acquire the Company. By late March 2018 control of the Company passed to EFDL. The takeover closed on 5 April 2019 and subsequently EFDL confirmed it will proceed with the compulsory acquisition of 100% of the Company's issued and outstanding shares.
Operationally, it has been a very dynamic year for the Company's sole asset, the Wetar Copper Project (the Project) located in Maluku Province, Indonesia. Production of copper cathode collapsed at the Project late in 2017. Subsequent uncertainty and poor performance continued into 2018. This situation was not being adequately addressed and it was becoming clear that the Project's future was in doubt, as current liabilities grew. There was also little progress at the critically important Lerokis development and Partolang exploration projects.
Following the change in control, under Merdeka's leadership, the Company, undertook a comprehensive and systematic review of the Project to increase and stabilise copper production and to extend mine life. By the third quarter key improvements had been identified, additional financing arranged and a number of the improvements had been completed or substantially advanced by year-end. The most significant issues and the related improvements included:
§a lack of crusher capacity resulted in approximately 830,000 tonnes of ore being historically stacked without prior crushing (dump leached). This material subsequently had to be re-handled and crushed and restacked during 2018, significantly reducing the volume of copper leached and reducing pad area under irrigation. New crushing equipment capable of processing 7,000 tonnes per day has been acquired and is expected to be commissioned in the second quarter of 2019;
§high acid levels in leach solution reduced the copper extraction efficiency in the SXEW plant from a target rate of 80% to under 50%. Improvements in operating practices were made to increase acid neutralisation plant productivity from 50 tonnes per day of free acid to 150 tonnes per day and an expansion should see acid neutralisation increase to more than 200 tonnes per day by the end of the second quarter 2019;
§poor heap construction resulted in short circuiting during irrigation and inadequate aeration capacity required the remining and re-fitting of aeration and irrigation pipework. This resulted in irrigation being turned off on significant areas of the heap leach pad which reduced the amount of copper going into solution; and
§long-standingaccess issues with the Wetar community were resolved allowing development at Lerokis and drilling at Partolang to commence in the fourth quarter of 2019. An aerial geophysics survey was also flown in recent months to target potential additional deposits that may be buried under the volcanic material that covers much of the lease. Results are expected in the second quarter of 2019.
There is now clear evidence of a turnaround in operating performance and growing confidence regarding mine life extension. It is anticipated that a production rate of 25,000 tonnes per annum should be realised during the second half of 2019 as a result of these improvements.
This closes another pivotal chapter in the Wetar Copper Project. It also opens a new chapter as the project will continue to grow under the majority ownership and operatorship of Merdeka, an emerging mid-tier,multi-asset copper and gold producer with strong growth prospects.
As such, it is a good time to reflect on the tremendous effort it takes to define and deliver any minerals resource project, something that can only be achieved with the support of our stakeholders, not least our Shareholders.
Sincerely yours,
Colin Moorhead
Chairman
18 April 2019
ANNUAL REPORT - 31 DECEMBER 2018
Directors' Report
Your Directors present their report on Finders Resources Limited ("Company") and its controlled entities ("the Group") for the year ended 31 December 2018.
Directors
The names, qualifications, experience, responsibilities and interest of Directors during the financial year and up to the date of this report are:
Colin Moorhead - Non-Executive Chairman (appointed 3 April 2018)
Australian nationality, 54, appointed as Director of the Company in April 2018. An experienced mining professional, he is recognized for multi-achievements in the mining industry, including building safe, successful and highly regarded technical teams, ability to develop and deliver strategy, culture and governance; a thorough understanding of the technical, legal and commercial aspects of the mining business with an exposure to many different cultures and operating environments. Also recognized as a leader in the areas of health, safety, environment and community.
Mr. Moorhead is currently an Executive Director at Merdeka Copper Gold. Prior to Merdeka Copper Gold he served as EGM Minerals, Newcrest Mining Ltd, Australia (2008- 2015), GM Resources & Reserves of the same company (2006-2008), Geology Manager, PT Nusa Halmahera Minerals, Gosowong Gold Mine, Indonesia (2003- 2006), Technical Services Manager, Cadia Holdings Ltd, NSW, Australia (1997-2003), and various other positions in the mining industry in a career spanning 32 years since 1987.
He graduated with a Bachelor of Science degree (Honours) in geology and geophysics from the University of Melbourne, Australia, in 1986, and participated in the Advanced Management Program of Harvard Business School, Boston, MA, USA.
Mr. Moorhead was elected as President of the Australasian Institute of Mining and Metallurgy (AusIMM) for 2017- 2018.
Other listed company Directorships in last three years:
§PT. Merdeka Copper & Gold Tbk
David Fowler - Chief Executive Officer (appointed 3 April 2018)
Australian nationality, 51, appointed as the Director of the Company in April 2018 as CEO. Mr. Fowler has had more than 25 years of professional experience in the mineral resources industry with expertise in finance, operations and development. He started with the Public Accounting Firm of Arthur Andersen in Perth, Australia, and went on to pursue a career in the mining business, serving in various managerial capacities with Eltin Limited and Western Metals Limited, both in Australia, then with Orusur Mining Incorporated in Canada.
He earned Bachelor of Business degree from Curtin University, Australia, in 1986, and a Post Graduate Diploma in Finance and Investment from the Securities Institute of Australia in 2003.
Other listed company Directorships in last three years:
§PT. Merdeka Copper & Gold Tbk
§Sumatra Copper & Gold Plc
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original document
- Permalink
Disclaimer
Finders Resources Limited published this content on 30 April 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 30 April 2019 03:22:04 UTC