Flinders Mines Limited
ABN 46 091 118 044
Financial Report
for the half-year ended 31 December 2020
Flinders Mines Limited
Half-Year Report
31 December 2020
Contents Page
Corporate Directory | 3 |
Directors' Report | 4 |
Auditors Independence Report | 6 |
Financial Statements | 7 |
Directors' Declaration | 15 |
Independent Auditor's Report to the Members | 16 |
2
Flinders Mines Limited
Corporate Directory
For the half-year ended 31 December 2020
Corporate Directory
Board of Directors | |
Neil Warburton | Independent Non-Executive Chair |
The Hon. Cheryl Edwardes, AM | Independent Non-Executive Deputy Chair |
James Gurry | Independent Non-Executive Director |
Michael Wolley | Non-Executive Director |
Evan Davies | Non-Executive Director |
Amy Jiang | Non-Executive Director |
Officers | |
Andrew Whitehead | General Manager |
Joint Company Secretary | |
Sarah Wilson | |
Shannon Coates | |
Registered Office | |
45 Ventnor Avenue | |
West Perth WA 6005 | |
Telephone: 08 9389 4483 | |
Email:info@flindersmines.com | |
Website:www.flindersmines.com | |
Share Registry | |
Computershare Investor Services Pty Ltd | |
Level 11, 172 St Georges Terrace | |
Perth WA 6000 | |
Telephone: 08 9323 2000 | |
Website:www.computershare.com.au | |
Auditors | |
KPMG | |
235 St Georges Terrace | |
Perth WA 6000 |
Securities Exchange Listing
Shares in Flinders Mines Limited are quoted on the Australian Securities Exchange under trading code FMS.
3
Flinders Mines Limited
Directors' Report
For the half-year ended 31 December 2019
Directors' Report
Your Directors present their report on the Consolidated Entity comprising Flinders Mines Limited (the Company or Flinders) and its controlled entities (the Group) for the half-year ended 31 December 2020.
Directors
The following persons held office as Directors of Flinders Mines Limited from the start of the financial year to the date of this report, unless otherwise stated.
Name | Title | Appointment | |
Neil Warburton | Non-Executive Chairman | 19 | October 2016 |
The Hon. Cheryl Edwardes AM | Non-Executive Deputy Chair | 17 | June 2019 |
Michael Wolley | Non-Executive Director | 19 | October 2016 |
Evan Davies | Non-Executive Director | 19 | October 2016 |
James Gurry | Non-Executive Director | 18 | September 2019 |
Amy Jiang | Non-Executive Director | 5 March 2021 |
Company Secretary
Ms Sarah Wilson was appointed as Company Secretary on 20 November 2018 and on 30 August 2019, Ms Shannon Coates was appointed as Joint Company Secretary.
Operating Results and Financial Position
The net loss after income tax for the half-year was $0.811 million (2019: $4.448 million).
Review of Operations
Corporate
PIOP Farm-In Agreement
On 4 September 2020, the Company announced that all conditions precedent to the Farm-In Agreement with BBI Group Pty Ltd (BBIG) had been completed and that the BBIG would be able to continue advancing the feasibility studies for the development of the Company's Pilbara Iron Ore Project (PIOP) and perform its other obligations under the Farm-In Agreement for its initial 10% voting interest in the incorporated joint venture vehicle, PIOP Mine Co NL. The Company retains 100% economic ownership of PIOP Mine Co NL until a final investment decision is made under the Farm-In Agreement.
Following completion of the Farm-In Agreement, BBIH Pty Limited (BBIH), a wholly owned subsidiary of BBIG, was appointed Manager of the PIOP.
The Company's independent Directors remain as Directors of PIOP Mine Co NL along with a nominee from BBIG.
NBIO Proposal from BBIG
On 14 December 2020, the Company announced that it had received a non-binding indicative offer (NBIO) from BBIG in relation to a potential ownership restructuring opportunity of the infrastructure associated with the Company's PIOP.
BBIG approached the Company to commence a discussion about a potential transaction that would result in the Group retaining 100% ownership of the PIOP as well as 100% of BBIG's port and rail infrastructure assets. BBIG has proposed that the development of the BBIG infrastructure and the PIOP mine as an integrated project within one corporate group would better facilitate financing of the project development.
Subsequent to period end, the Company announced that it had entered into a Funding Agreement with BBIG, whereby BBIG had agreed to provide funding support of up to $1.0 million to the Company for third party costs incurred by the Company in progressing discussions with BBIG on the NBIO.
The funding is to be provided in three equal instalments in January, March and April 2021. The funding is only repayable if an agreement is executed and subsequently completed, on the latter of the completion date and 31 December 2021.
Going Concern
The Independent Auditor's Report contains an emphasis of matter paragraph in relation to going concern. Refer to Note 2(e) of the Financial Statements.
4
Flinders Mines Limited
Directors' Report
For the half-year ended 31 December 2019
Pilbara Iron Ore Project, Western Australia
During the period from completion of the Farm-In Agreement, BBIH, as Manager, carried out a range of activities associated with the advancement of the PIOP feasibility study including:
- developing further understanding of the PIOP ore body (resource definition);
- maturing the development of a preferred mine plan;
- laboratory based metallurgical test work to better determine ore product design specification and planning associated with a larger field based, next phase metallurgical test work program;
- continued development on determining the optimum location and layout of the ore processing facility at the PIOP;
- updating safety management framework, plans and procedures in support of recommencing field activities in early calendar year 2021 to incorporate requirements of the pending Work Health and Safety Bill 2019; and
- completion of rehabilitation activities at Anvil and planning for future rehabilitation at Blacksmith.
Canegrass Project, Western Australia
During the period ending 31 December 2020, the Company engaged CSA Global Pty Ltd to design and execute an exploration programme that included both soil sampling and a drilling programme.
Soil sampling programme
A soil geochemical sampling programme was completed within E58/520, E58/521 and E58/522, which included several rock samples of potentially gold bearing quarts float and selected soil samples and rock samples within E58/236 and E58/282. The soil sampling within E58/520 and E58/522 targeted potentially gold bearing structural trends south of the Honeypot gold prospect. The soil sampling within E58/521 was designed to test for possible platinum group metals across the interpreted contact between the upper and middle units of the Windimurra Igneous Complex.
Drill programme
Ten RCP drill holes over E58/232 and E58/282 were completed, which were designed to infill and test for shallower higher-gradevanadium-titanium magnetite (VTM) zones within the Mineral Resource VTM mineralisation.
Results of the programme were announced to the ASX on 21 January 2021.
Events Subsequent to the End of the Reporting Period
On 15 January 2021, the Group announced that it had entered into a Funding Agreement with BBI Group Pty Ltd (BBIG) whereby BBIG have agreed to provide funding of up to $1.0 million to the Company for third party costs incurred by the Company in progressing discussions with BBIG in relation to the potential ownership restructuring opportunity of the infrastructure associated with the Pilbara Iron Ore Project (Transaction).
The funding is to be provided in three equal instalments in January, March and April 2021. The January and March 2021 instalments have already been received. The funding is only repayable if a Transaction is executed and completed with BBIG on the later of the completion date and 31 December 2021.
On 5 March 2021, the Company announced the appointment of Ms Amy Jiang, as a nominee Non-Executive Director of the Company's second largest shareholder, OCJ Investment (Australia) Pty Ltd.
Rounding
The amounts contained in the financial report have been rounded to the nearest $1,000 (unless otherwise stated) pursuant to the option available to the Company under ASIC Instrument 2016/191. The Company is an entity to which this class order applies.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on the following page.
This report is made in accordance with a resolution of Directors.
Neil Warburton
Non-Executive Chairman
Perth, Western Australia
16 March 2020
5
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original document
- Permalink
Disclaimer
Flinders Mines Limited published this content on 16 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 April 2021 13:11:06 UTC.