New Century Resources : Annual Report to shareholders

Annual Report

2020

Contents
Corporate Directory ................................................................................................................................	ii
Chairman's Message ..............................................................................................................................	iii
Review of Operations..............................................................................................................................	v
Corporate Governance...........................................................................................................................	xii
New Century in the Community ...........................................................................................................	xiii
Mineral Resource Statement ................................................................................................................	xix
Directors' Report.....................................................................................................................................	4
Auditor's Independence Declaration ....................................................................................................	24
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 Cashflows..................................................................................................	28
Notes to the Financial Statements........................................................................................................	29
Directors' Declaration ...........................................................................................................................	73
Independent Auditor's Report..............................................................................................................	74
ASX Additional Information ..................................................................................................................	79

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Corporate Directory

Directors	Registered and business address
Robert McDonald (Chairman)	Level 4, 360 Collins Street
Patrick Walta (Managing Director)	Melbourne, Victoria 3000
Nick Cernotta (Non-Executive Director)	Australia
Bryn Hardcastle (Non-Executive Director)	Telephone: [phone]
Peter Watson (Non-Executive Director)	Email: [e-mail]
	Website: www.newcenturyresources.com

Company secretary	Auditors
Oonagh Malone	Deloitte Touche Tohmatsu
	550 Bourke Street
	Melbourne, Victoria 3000

Securities exchange	Share registry
Australian Securities Exchange (ASX)	Automic Registry Services
Code:	NCZ	126 Phillip Street
Home office:	Perth	Sydney, New South Wales 2000
		Telephone: [phone]

Country of incorporation and domicile

Australia

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Chairman's Message

Dear Shareholder,

Your Company is now established as a significant base metals producer.

Much of what we set out to achieve with the Company's Century operations was completed during the fiscal year, with the Declaration of Commercial Production made at year's end. There remain a few bugs to iron out during the current 2020/21 fiscal year to get production and cost performance to our targeted levels; this work is well in hand.

While we were investing in the ramp-up of Century, for much of the year the macroeconomic environment with lower zinc prices and higher treatment charges created some financing challenges. Your Board was delighted with the support the Company received from fellow Shareholders in its two equity raisings during the past year, the second being at a premium to the Company's prevailing share price, and from our debt providers.

While we managed to partially offset the macroeconomic headwinds with our incessant focus on driving down operating costs, the Company's share price nonetheless weakened during the year. We are determined to re-enter the S&P/ASX 300 Index during the coming year.

The macroeconomic environment rebounded later in the 2019/20 fiscal year and has continued since. For example, current zinc prices at the time I am writing to you now stand around US$1.15/lb compared to around US$0.85/lb at their low point during the past fiscal year.

Now that we have declared Commercial Production, our plan is to apply our cash flow from operations to both reduce our partner's environmental bond and to bolster the strength of our balance sheet to make it resilient to normal industry volatility.

The normal industry volatility was compounded during the year by the impact of COVID-19 and its impact on global economic conditions. I am pleased to report that we had been able to safely continue our operations and development programs at the remote Century mine and at our Karumba port facility in Northern Queensland. We are supportive of all the various State measures to contain the virus. With the assistance of the Commonwealth Government's Job Keeper scheme, full employment was maintained. On behalf of our Shareholders I acknowledge the inconvenience the virus imposed on the family life of some of our team. Morale nonetheless remains high. I applaud the dedication of the full team to the Company.

With the bringing in-house of several important activities otherwise undertaken by contractors, the total number of our employees appreciably increased during the year. We welcome our new employees. We thank our contractors for facilitating the start-up of operations.

We acknowledge the Gulf Communities as the traditional owners of the Century region. Our commercial activities help to return their land to its original state. I am pleased to report that during the year we have successfully divested our share of the pastoral leases covering the Century tenements to the local communities with whom we have a strong and respectful relationship.

With the plan for Century well underway we took the opportunity during the year to pursue the giant Goro nickel/cobalt operation in New Caledonia. This opportunity built on our established strengths in tailings management, energising tired assets and working with local communities. Goro would have propelled your company into the Battery Storage and Electric Vehicle space. Your management did a

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