Mineral Commodities Ltd (ASX: MRC) provides the attached Chairman's Address and Presentation to Shareholders for today's Annual General Meeting of the Company.
Welcome Shareholders. My name is Russell Tipper and I have the privilege of being the acting Chairman of your Company. The period since we last met has been a year of great change at MRC. We have seen the departures of our former CEO Mr Mark Caruso, former Chairman Mr David Baker and former Director and Company Secretary, Mr Peter Torre.
I would like to take this opportunity to recognise the considerable contribution of Mr Caruso and Mr Torre in developing the Company's current asset base, and to thank Mr Baker for his leadership through this difficult period of transition. I welcome our new CEO and Managing Director Mr Jacob Deysel who, following my address, will present our results for the financial year 2021 and provide a more detailed summary of our new Strategic Plan for the future of MRC.
Jacob has enthusiastically accepted the challenge of re-badging MRC as a sustainable, responsible, vertically integrated producer of critical and industrial minerals and returning MRC to profitability. COVID-19 has continued to impact our businesses, primarily through the disruption to global logistics chains, impacting our ability to get our products to market and reducing our margins due to the resultant higher costs of shipping.
As you know, during 2021, Tormin received a notice from the Department of Mineral Resources and Energy (DMRE) under section 93 of the Mineral and Petroleum Resources Development Act, relating to areas of potential non-compliance, principally in relation to our Social and Labour Plan obligations, employment equity targets for historically disadvantaged people, career progression programs and our past procurement practices under your Company's previous leadership.
We are pleased to announce that this notice has been lifted, and, thanks to the leadership of Ms Debbie Ntombela and Mr Zamile David Qunya, and the hard work of our new CEO and his team, we have established a sound relationship with the DMRE, who have complimented our efforts and transparency in rectifying areas of noncompliance.
At Skaland, we have completed the new decline, which is expected to consistently deliver higher quality ore and support ongoing processing operations over the coming years. The operations have been stabilised from the effects of the fire in the process plant and the failure of the autonomous grinding mill. Management is focussed on returning Skaland to profitability as a solid base for future expansion. The Company has reigned in its capital expenditure to enable the conservation of cash until the Inland Strand operations can be recommenced and the Skaland operations returned to profitability. This is expected to occur in the second half of this year. During the last year, we welcomed the return of Mr Guy Walker as a director of the Company. Guy has substantial experience with MRC in the past and has stepped in as Chair of our Audit, Risk and Compliance Committee following the resignation of David Baker.
The Company is currently undertaking a search for a suitable replacement Chairman for Mr Baker. I would like to invite our new CEO and Managing Director Mr Jacob Deysel to present our 2021 results and the fundamentals of our 5-year Strategic Plan for the future. We will then respond to any shareholder questions that we have received that do not specifically relate to individual resolutions. The resolution specific questions will be addressed as we consider the individual resolutions in the formal part of the meeting.
As it became evident that our move to the Inland Strands at Tormin was not sustainable with the extant plant configuration and tailings disposal method, we were forced to return to mining the Tormin beaches, ahead of a satisfactory period of replenishment.
This has led to lower feed grades to the concentrator. We are well advanced in re-configuring the plant to be able to treat the finer Inland Strand ore and to deposit the tailings in the mined out areas in an environmentally approved manner.
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About Mineral Commodities Ltd
Mineral Commodities Ltd (ASX: MRC) is a global mining and development company with a primary focus on the development of high-grade mineral deposits within the industrial and critical minerals sectors. The Company is a leading producer of zircon, rutile, garnet, and ilmenite concentrates through its Tormin Mineral Sands Operation, located on the Western Cape of South Africa. The Company owns and operates the Skaland Graphite Operation in Norway, the world's highest-grade operating flake graphite mine and is the only producer in Europe.
The planned development of the Munglinup Graphite Project, located in Western Australia, builds on the Skaland acquisition and is a further step toward an integrated, downstream value-adding strategy which ultimately aims to produce graphitic anode products and capitalise on the fast-growing demand for sustainably manufactured Lithium-Ion Batteries. In April 2022, the Company released its Five-Year Strategic Plan 2022-20261 to delineate and implement its aspiration to become a leading vertically integrated diversified producer of graphitic anode materials and value added mineral products with a commitment to operate with a focus on the Environment, Sustainability and Governance.
This announcement contains forward-looking statements. Any forward-looking statements reflect management's current beliefs based on information currently available to management and are based on what management believes to be reasonable assumptions. It should be noted that various factors may cause actual results or expectations to differ materially from the results expressed or implied in the forwardlooking statements. These forward-looking statements are not a guarantee of future performance and involve unknown risks and uncertainties, many of which are beyond MRC's control. This may cause actual results and developments to differ materially from those expressed or implied. These risks include but are not limited to, economic conditions, stock market fluctuations, commodity demand and price movements, access to infrastructure, timing of approvals, regulatory risks, operational risks, reliance on key personnel, Ore Reserve and Mineral Resource estimates, native title, foreign currency fluctuations, exploration risks, mining development, construction, and commissioning risk. Forward-looking statements in this announcement apply only at the date of issue and are subject to any continuing obligations under applicable law or regulations, MRC does not undertake to publicly update or revise any of the forward-looking statements in this announcement or to advise of any change in events, conditions, or circumstances on which any such statement is based. Readers are cautioned not to place undue reliance on any forward-looking statements contained in this announcement.