onlyMetallica Minerals Limited
ACN 076 696 092
useAnnual Financial Report - 30 June 2020 personalFor
Metallica Minerals Limited Corporate directory
30 June 2020
Directors
onlyCompany secretary Annual General Meeting
Registered office and principal place of business
useShare register
Auditor personalSolicitors
Stock exchange listing
W bsite
Corporate Governance Statement
For
T Psaros - Executive Chairman
- Gillies - Non-executive Director S Waddell - Executive Director
J K Haley
The details of the annual general meeting of Metallica Minerals Limited are: Colin Biggers & Paisley Pty Ltd
Level 35, Waterfront Place, 1 Eagle Street Brisbane QLD 4000
11.30am on Wednesday, 18 November 2020
71 Lytton Road
East Brisbane
QLD 4169
Phone: (07) 3249 3000
Link Market Services Limited
Level 21, 10 Eagle Street
Brisbane
QLD 4001
Phone: 1300 554 474
BDO Audit Pty Ltd
Level 10, 12 Creek Street
Brisbane
QLD 4000
Colin Biggers & Paisley Pty Ltd
Level 35, Waterfront Place
1 Eagle Street
Brisbane
QLD 4000
Metallica Minerals Limited shares are listed on the Australian Securities Exchange (ASX code: MLM)
www.metallicaminerals.com.au
www.metallicaminerals.com.au/corporate-governance
1
Metallica Minerals Limited Directors' report
30 June 2020
The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of Metallica Minerals Limited (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the year ended 30 June 2020.
onlyDirectors
The following persons were directors of Metallica Minerals Limited during the whole of the financial year and up to the date of this report, unless otherwise stated:
Theo Psaros
Sc tt Waddell
Andrew Gillies
usePrincipal activities
During the financial year, the principal activities of the consolidated entity consisted of mineral exploration, evaluation and progressing and progressing development of its Cape Flattery Silica Sands Project, the Urquhart Bauxite Project (UBx) and other projects. The company also sold its interest in the Heavy Minerals Sands mining leases and plant. There were no
ignificant changes in the principal activities of the consolidated entity.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
personalReview of operations
The loss for the consolidated entity after providing for income tax amounted to $521,340 (30 June 2019: $4,391,316).
The 30 June 2020 consolidated loss includes an impairment reversal of $1,096,400 following a reassessment of the recoverable amount of the HMS plant during the year. The consolidated loss also includes Nornico administration expenses
f $201,028 (2019: $nil).
The 30 June 2019 consolidated loss includes the following significant expenses: due diligence and other costs associated with the abandoned Melior merger of $893,252, a net loss on the shares held in Australian Mines Limited of $962,706, and impairment of exploration and evaluation expenditure and plant and equipment of $602,348.
Du ing the year ended 30 June 2020 the company:
● Sold its 50% interest in the Heavy Mineral Sands (HMS) plant and the HMS tenements at Urquhart Point (ML20669 and ML20737) for a total cash consideration of $1,722,203, of which $1,422,203 has been received to 30 June 2020 (this includes $125,803 which was received as a refund of the 50% interest in the Environmental Bond).
● Announced that two alternative logistics solutions to ship bauxite from the Urquhart Bauxite Project have been identified. Further regulatory approvals are required for the two alternatives. The updated pre-feasibility study (PFS) has been delayed until the potential industrial sand opportunity is investigated further and the 50/50 Joint Venture with Ozore Resources Pty Ltd (JV) better understands if the sand mining opportunity is viable. The PFS or scoping study is now
Forscheduled to be completed following the outcome of the industrial sand investigation, expected later in 2020.
● Completed an exploration program at the Cape Flattery Silica Sands Project which confirmed presence of high purity silica sands. The Company has been working on gaining access to the land with the traditional landowner group to undertake a drilling program.
● Announced that the Directors of its wholly-owned subsidiary, NORNICO Pty Limited (Nornico), had placed the subsidiary into administration in August 2019. Metallica has successfully negotiated a resolution with the Administrators, the companies holding the royalty agreements and Australian Mines Limited. This resolution has resulted in Australian Mines Limited taking on the royalty agreements' obligations, in return for reducing a future possible payment to Metallica from $5 million to $2.5 million, which is payable when the SCONI project reaches commercial production. Nornico held two royalty agreements with parties on the Bell Creek and Minnamoolka tenements and should production commence from these tenements Nornico would have been subject to paying royalties. Nornico was placed into administration after it was identified that the two royalty agreements were not originally assigned by the prior Board and management when the SCONI tenements were sold to Australian Mines Limited in late 2017.
2
Metallica Minerals Limited Directors' report
30 June 2020
Capital expenditure
During the 2020 financial year, $188,141 was incurred on capitalised exploration and development expenditure (2019: $698,108). The majority of the expenditure incurred was on the UBx exploration and development assets.
onlyCash flow and Liquidity
During the 2020 financial year, the net cash outflows from operating activities decreased to $1,551,525 (2019: $2,785,032) and the decrease is largely attributable to a decrease in the Melior merger costs, employee costs, extraordinary general meeting costs, marketing expenses and legal fees.
For the financial year ended 30 June 2020 the net cash inflow from investing activities amounted to $1,304,388 (2019 - net cash outflow: $283,492). The net cash inflow was largely attributable to the receipt of $1,296,400 from the sale of the HMS plant and tenements. Cash outflows for plant and equipment and, exploration and evaluation amounted to $188,670 (2019: $705,303).
useCOVID-19 Impacts
The consolidated entity continues to follow recommendations from Queensland Health and the Australian Government to provide a COVID-19 safe workplace.
The company is also aware that travel restrictions to remote indigenous communities were in place during the financial year ending 30 June 2020, which delayed some activities and these restrictions continue to be in place in some communities. The company remains committed to following the guidelines released by the Government.
Other than restricted access to some remote communities, there does not currently appear to be either any significant impact
upon the financial statements or any significant uncertainties with respect to events or conditions which may impact the personalconsolidated entity unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19)
p ndemic.
Sig ificant changes in the state of affairs
There were no significant changes in the state of affairs of the consolidated entity during the financial year.
Matters subsequent to the end of the financial year
On 5 August 2020, Metallica Minerals announced to the ASX that it had received $300,000 towards the final instalment of $330,000 inclusive of GST, due on the sale of its 50 per cent interest in the Heavy Mineral Sand (HMS) plant and the HMS tenements at Urquhart Point, with an outstanding amount of $30,000 still to be paid.
The Coronavirus (COVID-19) pandemic is restricting access to some remote communities. However, there does not currently app ar to be any significant impact upon solvency or going concern of the consolidated entity as at the reporting date or subsequently to the date of this report as a result of the Coronavirus (COVID-19) pandemic.
No other matter or circumstance has arisen since 30 June 2020 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years.
ForLikely developments and expected results of operations
Since the end of the 30 June 2019 financial year, other than the sale of the JV's HMS Mining Leases at Urquhart Point (ML20669 and ML20737), the consolidated entity has retained all its Mining Leases (granted and applied). The consolidated entity will continue to rigorously review and control costs, progress the Cape Flattery Silica Sands Project, the Urquhart Bauxite Project, and continue to maximise the value of non-core assets.
The consolidated entity's goal is to progress the Cape Flattery Silica Sands Project and the Urquhart Point Bauxite Project, evaluate options to maximise the value of the company's other projects including the Esmeralda graphite and the Fairview limestone projects. The company is also actively evaluating other projects for potential acquisition.
Environmental regulation
The consolidated entity is subject to environmental regulations under laws of Queensland where it holds mineral exploration and mining tenements. During the financial year the consolidated entity's activities recorded no non-compliance issues.
3
Metallica Minerals Limited Directors' report
30 June 2020
Information on directors
Name:
Title:
onlyQualifications: Experience and expertise:
Other current directorships: useFormer directorships (last 3 years):
Sp cial responsibilities: Interests in shares: Interests in options: Interests in rights:
Name:
Title:
Qualifications:
Experience and expertise: personalOther current directorships:
Former directorships (last 3 years): Special responsibilities:
Interests in shares:
Inte ests in options:
Inte ests in rights:
For
Theo Psaros
Executive Chairman (Non-executive Chairman until 21 May 2020 and Executive Chairman thereafter)
GAICD, CA, BFinAdmin
Theo Psaros has over 30 years of diverse global and local commercial experience in a number of business sectors and industries within multi-million dollar publicly listed company, private companies and government departments. Theo's resource industry experience included a number of years as Chief Financial Officer and Chief Operating Officer of MetroCoal Limited, Chairman of the Surat Basin Coal Alliance and a member of the industry group that assisted with the Queensland Government Department of Natural Resources & Mines to prepare the 30-year strategic plan for the resources industry in Queensland (ResourcesQ).
None
None
Executive Chairman 674,000 3,000,000
None
Scott Waddell Executive Director
B.Bus, Dip.PMM (Dist), FCPA, AGIA
Scott Waddell's resources experience was gained from eight (8) years with Metro Mining Limited and Cape Alumina Limited, nine (9) years with Anglo Coal and eight (8) years with Rio Tinto Alcan (RTA). This included direct mine site experience of 8 years. Roles included Interim CEO at Cape Alumina, CFO and Company Secretary for Metro Mining Limited and Cape Alumina Limited, Head of Finance for the Monash Energy project in Victoria's La Trobe Valley, as well as being a director of the CO2CRC Otway Pilot Project and chairman of the audit committee, Business Development Manager as well as a number of finance and corporate roles.
None
None
Interim CEO until 21 May 2020 and CFO thereafter 632,258 4,000,000
None
4
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Metallica Minerals Limited published this content on 25 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 November 2021 22:39:04 UTC.