EQUUS MINING LIMITED
and its controlled entities
A.B.N. 44 065 212 679
ANNUAL REPORT
FOR THE FINANCIAL YEAR ENDED
30 JUNE 2020
Equus Mining Limited
Corporate Directory
Directors | Mark Lochtenberg | Non-Executive Chairman |
John Braham | Managing Director | |
Damien Koerber | Executive Director - Chief Operating Officer | |
Robert Yeates | Non-Executive Director | |
Company Secretary | Marcelo Mora | |
Principal Place of Business | Level 2 | |
and Registered Office | 66 Hunter Street | |
Sydney NSW 2000 | ||
Australia | ||
Telephone: | (61 2) 9300 3366 | |
Facsimile: | (61 2) 9221 6333 | |
Email address: | info@equusmining.com | |
Web site: | www.equusmining.com | |
Share Registry | Advanced Share Registry Limited | |
110 Stirling Highway | ||
Nedlands, Western Australia 6009 | ||
Telephone: | (61 8) 9389 8033 | |
Facsimile: | (61 8) 9262 3723 | |
Auditors | KPMG | |
Level 16, Riparian Plaza | ||
71 Eagle Street | ||
Brisbane QLD 4000 | ||
Stock Exchange Listings | Australian Securities Exchange | (Code - EQE) |
Berlin and Frankfurt Securities Exchanges | ||
(Third Market Segment) |
Equus Mining Limited
CONTENTS | |
Page | |
Chairman's Letter | 1 |
Review of Operations | 2 |
Corporate Governance Statement | 14 |
Directors' Report | 15 |
Lead Auditor's Independence Declaration | 27 |
Consolidated Statement of Profit or Loss and Other Comprehensive Income | 28 |
Consolidated Statement of Financial Position | 29 |
Consolidated Statement of Changes in Equity | 30 |
Consolidated Statement of Cash Flows | 31 |
Notes to the Consolidated Financial Statements | 32 |
Directors' Declaration | 52 |
Independent Auditor's Report | 53 |
Additional Stock Exchange Information | 58 |
Equus Mining Limited
CHAIRMAN AND MANAGING DIRECTOR'S LETTER
Dear fellow shareholders, it gives us great pleasure to present the 2020 Annual Report for Equus Mining Limited (ASX:EQE) (Equus or Company).
Late last year the Company signed an option agreement with Mandalay Resources to acquire the Cerro Bayo Mine district and plant infrastructure in Southern Chile. The option agreement means Equus has up to three years to finalise the acquisition, and the flexibility to take over the project at any time.
In a world with low interest rates and strong investor appetite for commodities, the Company's focus for 2020 is clear - entering the burgeoning precious metals super-cycle as a gold-silver producer in our own right.
The Company is well placed to achieve this goal with the option agreement including the Cerro Bayo processing plant, which has a daily capacity of 1,500 tonnes, producing approximately 31 tonnes of high grade gold-silver concentrate in a simple two- step crushing, grinding, and flotation process.
The plant, which has produced about 600,000oz of gold and 45 million ounces of silver since 1995, has been on care and maintenance since mid-2017. The Company was further buoyed by the news that Mandalay plans to commence processing of low-grade stockpiles by early 2021 at an initial rate of 40,000 tonnes per month.
To achieve a production re-start, the Company has begun the process of delineating the potential initial resources. Management have been executing a dual-track development strategy to methodically uncover new ounces within walking distance of the Cerro Bayo plant, combined with a review of historical data and new drilling at the historically mined Taitao Pit.
To this end, the exploration that has taken place, combined with the historical data review will be used to complete a JORC compliant Mineral Resource Estimate, due in fourth quarter of 2020, which will underpin the mine re-start study which will likely be finished in Q1 2021.
On the exploration front it was exciting to see the duel-track strategy deliver strong results, with a standout drill intersection at the greenfields Droughtmaster Prospect returning 3.81m at 20.4 g/t gold and 55.5 g/t silver. Results at Droughtmaster to date confirm the area's potential and are interpreted to relate to the upper portions of a wide, large-scale epithermal gold system. The Company is already planning further drilling at Droughtmaster, with a second phase of 2,500m follow-up drilling planned.
During the period, the Company also undertook drilling programs beneath the historic Taitao Pit, with 1,385m of diamond drilling at NE and Central Taitao, better results included: 19m at 1.26 g/t gold and 10.0 g/t silver from 68.5m.
Taitao was mined between 1995 to mid-2000, when the gold price averaged ~US$300/oz and silver ~US$5/oz. The current price for gold, circa US$1,700/oz (+580%), and silver, circa US$17.50/oz (+250%) present the opportunity for Equus to become a significant and profitable producer in a world class gold-silver epithermal district.
It has been pleasing to watch the significant development in the Company's strategy and we firmly believe Cerro Bayo represents one of the most advanced gold-silver projects on the ASX. With resource and re-start studies currently being completed, considering the close proximity to the processing plant, the next six months of activity have the potential to deliver significant value for shareholders as we look to become a profitable near-term gold and silver producer.
We are greatly appreciative of your support throughout 2019-20 and believe that the company will continue to increase value for shareholders over the upcoming year. We also thank our fellow board members and management as well as our in-country staff for all their efforts and success during the past year.
Yours Sincerely
Mark H. Lochtenberg | John Braham |
Chairman | Managing Director |
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Equus Mining Limited published this content on 30 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 September 2020 08:04:03 UTC