Altona Mining: Annual Report 2014

(firmenpresse) - Annual Report 2014

Corporate Directory

Directors:
Mr Kevin Maloney
Chairman

Dr Alistair Cowden
Managing Director

Mr Paul Hallam
Non-Executive Director

Mr Peter Ingram
Non-Executive Director

Mr Steve Scudamore
Non-Executive Director

Company Secretaries:
Mr Eric Hughes
Ms Carmen Lunderstedt

Principal and Registered Office:
Ground Floor,
1 Altona Street
West Perth 6005 Western Australia
Telephone: +61 8 9485 2929
Email: altona(at)altonamining.com

Share Registry:
Computershare Registry Services Pty Ltd
Level 2, Reserve Bank Building
45 St Georges Terrace
Perth 6000 Western Australia
Telephone: +61 8 9323 2000

Auditor:
Deloitte Touche Tohmatsu
240 St Georges Terrace
Perth 6000 Western Australia
Telephone: +61 8 9365 7000

Stock Exchanges:
Australian Securities Exchange Limited (ASX)
Frankfurt Stock Exchange
Norwegian OTC

Company Codes:
ASX: AOH
FSE: A20
NOTC: ALTM

Issued Capital:
532,579,704Fully paid ordinary shares
14,381,749 Employee share rights

Annual Report of Directors to Shareholders and Financial Statements

ContentsPage

DIRECTORS REPORT
Message from the Chairman2
Highlights3
Company Overview and Strategy4
Cloncurry Copper Project6
Outokumpu Copper Project10
Commentary on Financial Results15
Governance18
Audit and Risk Management26
Remuneration Report28
Statutory Representations40

ANNUAL FINANCIAL REPORT
Financial Statements41
Notes to the Financial Statements45
Directors Declaration87

AUDITORS REPORTS
Auditors Independence Declaration88
Independent Audit Report89

OTHER
Additional Information Required by the ASX91

This document comprises the reports required to be provided to shareholders in accordance with Section 317 of the Corporations Act 2001. The reports refer to the Group which consists of Altona Mining Limited (Altona or the Company) and its subsidiaries.

Message from the Chairman

Dear fellow shareholder

The year has been an outstanding one for the Company. We exceeded copper production guidance at Outokumpu, paid back Outokumpu related debt two years early, and in July 2014 just after the close of the financial year, we sold our Finnish operations for US$95 million plus approximately US$5 million in adjustments to Boliden Mineral AB. We are also delighted to report a profit before tax of A$19.7 million.

The Kylylahti mine exceeded design production rate of 550,000 tonnes per annum during the year and the Luikonlahti mill routinely achieved or exceeded its design parameters. Drilling success has resulted in all copper metal depleted by mining being replaced and reserves now exceed those available at project start up in 2012.

The majority of the proceeds of the sale of our Finnish assets, being approximately A$80 million, will be returned to shareholders as a combination of a return of capital, unfranked dividend or buy back. The combination will be decided on the receipt of a tax ruling.

The sale of Outokumpu and the return of proceeds to shareholders highlights our approach to business. We have taken an asset in Finland and matured it through drilling, studies, financing, construction and production. Value was crystallised through Boliden, who are a credible mid-tier base metal miner.

Altona will retain between A$40-45 million in cash on closing of the transaction which gives the Company sufficient financial strength to pursue a partner or sale of the Little Eva Project.

Our copper assets in Australia at Cloncurry near Mt Isa represent a substantial asset. A Definitive Feasibility Study has been completed on the Little Eva deposit, environmental permitting completed and mining licences have been granted. Cloncurry hosts resources of 1.5 million tonnes of contained copper and 0.38 million ounces of contained gold and some 800 square kilometres of lightly explored exploration tenure. Cloncurry hosts one of Australias most strategically placed copper development opportunities.

The Company has engaged with the markets to seek to realise value to shareholders from Cloncurry. Since the release of the update to the Little Eva study in March 2014, we have pursued sale, partnering, corporate and financing opportunities, particularly in Asia. Discussions are underway with a number of parties. Exploration activity at Cloncurry was reduced this past year but has now resumed given the Company now has a sole focus on this asset.

Last year when I wrote to you, your company had a market value of A$80 million, today after the sale of Outokumpu it stands at A$122 million. This valuation simply reflects our cash backing. Our challenge is to have value for Cloncurry reflected in the share price and is our target for this year.

Last year the Company received a first strike with a 26% vote against accepting the Remuneration Report. The Board has not paid a short term incentive or offered a pay rise to the Australian Senior Executive this year. On completion of the Finnish transaction a bonus will be offered to the Senior Executive, however their ongoing salaries and that of the Board will be significantly reduced to reflect the smaller continuing company.

Kevin Maloney
Chairman

Highlights

Profit before tax of A$19.7 million for FY2014.

Finnish operations sold to Boliden Mineral AB in July 2014 for US$95 million plus approximately US$5 million in adjustments.

Board announces intention to return 15 cents per share of sale proceeds to shareholders.

US$20 million of debt attached to the Outokumpu operations paid back two years early.

Sales of 10,344 tonnes of copper, 10,087 ounces of gold and 4,711 tonnes of zinc exceeded guidance of 9,000-10,000 tonnes.

C1 cash costs of production for the year of US$1.89 per pound of copper.

Discussions with potential partners to develop the Little Eva deposit in progress.
http://www.commodity-tv.net/c/mid,3159,Companies_und_Projects/?v=286622
Little Eva Definitive Feasibility Study updated with reduced capital and operating costs.

Please follow the original news: http://www.asx.com.au/asxpdf/20140828/pdf/42rv6j98xkfbm3.pdf

Unternehmensinformation / Kurzprofil:
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Bereitgestellt von Benutzer: irw
Datum: 02.09.2014 - 14:41 Uhr
Sprache: Deutsch
News-ID 335742
Anzahl Zeichen: 7007

contact information:
Town:

Wien

Kategorie:

Business News

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