Axiom Mining 2015 Annual Report

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AXIOM MINING LIMITED
ANNUAL REPORT 2015
75
COMPANY FINANCIAL REPORT
Directors’ report
The directors present their report and the audited financial
statements for the Company consisting of Axiom Mining
Limited (the ‘Company’ or ‘Axiom’) for the year ended
30 September 2015.
Principal activity
The principal activity of the Company is investment
holding and there was no significant changes in the nature
of the Company’s principal activity during the year.
Share issued
Details of movements in the Company’s share capital
during the year ended 30 September 2015, together
with the reason therefor, are set out in Note 19(a) to the
financial statements.
Directors
The directors during the year were:
–Stephen Ray Williams (Chairman and Non-Executive
Director)
–Ryan Richard Mount (Executive Director and Chief
Executive Officer)
–Jeremy Robin Gray (Non-Executive Director –
appointed 12 July 2015)
In accordance with articles 114 and 115 of the Company’s
articles of association, Mr Stephen Ray Williams and
Mr Ryan Richard Mount were re-elected at the last
Annual General Meeting. The non-executive directors
and executive directors are appointed for a period of
three years.
Directors’ interests
Details of share options scheme of the Company and
performance rights are set out in the 2014/15 annual
report of the Company.
Link:
pdf/42x3pdvglh2t83.pdf
Save as disclosed above, at no time during the year was
the Company or any of its subsidiaries a party to any
arrangement to enable the Company’s directors to acquire
benefits by means of the acquisition of shares in or
debentures of the Company or any other body corporate,
nor were any such rights exercised by them.
Directors’ interests in transactions,
arrangements or contracts
Save as disclosed in Note 22 to the financial statements,
no director had a material interest, either directly or
indirectly, in any transactions, arrangements or contracts
of significance to the business of the Company to which
the Company’s subsidiaries was a party during the year.
Business review
Review of the Company’s business
The Company’s vision and strategy is to:
–develop mineral deposits in the Asia Pacific region into
medium and long term tier 1 assets
–partner with Australian communities and governments
–provide and implement effective sustainability programs
in communities where it operates
–maximise shareholder returns through cost effective
exploration and growth through robust project
development.
The Company’s investments are still in the exploration
phase of mineral deposit development, and it has
accordingly recorded a net loss of AU$10,390,000 for
the year. It has no other source of income. The financial
position of the Company showed a strong improvement,
with net assets increasing during the year from
AU$1,158,000 to AU$5,201,000 at 30 September 2015.
Funding for the net operational cash outflows of
AU$4,359,000 was provided through successful capital
raisings of AU$7,920,000, and increased borrowings
of AU$6,080,000. During the year AU$10,525,000
was advanced to certain subsidiaries for their ongoing
operations, mainly in exploration activity.
The Company is confident of its ability to continue to raise
additional share capital by share placements, options,
convertible notes, or rights issues.
The Company has a low gearing ratio (borrowings:equity)
of only 22%, a substantial improvement from 2014 (59%).
Principal risks and uncertainties facing
The Company is exploring a nickel laterite deposits in
the Solomon Islands (‘Isabel Nickel Project’). A major
risk to the value of the Company’s major investment’s
(Isabel Nickel Project) immediate development future is
the outcome of the appeal with SMM Solomon Limited
(‘Sumitomo’) related to the Solomon Islands Court Case
258/2011. The Court of Appeal has reserved judgement
and no ruling has been handed down at the date of
this report.
Low nickel prices are not expected to adversely impact
the economic viability of the Isabel Nickel Project due to
the low cost nature of the proposed operation.
The ability to attract suitable staff to remote areas can be
uncertain, but three industry experts were appointed to
the Axiom Mining executive management team to position
for growth in the Solomon Islands.