SDL 0.00% 0.6¢ sundance resources limited

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  1. 152 Posts.
    This sis from today's announcement...Annual report.

    Annual Financial Report 2005

    DIRECTORS’ REPORT
    1
    The directors of Sundance Resources Ltd
    A.C.N. 055 719 394 (“Parent Entity”) present
    their financial report including the consolidated
    financial report of the Parent Entity and its
    controlled entities (“Consolidated Entity”) for
    the year ended 30th June 2005. The Parent
    Entity is a listed public company limited by
    shares, incorporated and domiciled in
    Australia.

    DIRECTORS
    The names of the directors of the Parent
    Entity in office at any time during or since the
    financial year and up to the date of this
    financial report are as follows. Directors were
    in office for the entire period unless otherwise
    stated.
    John Francis Corr (app 10-Feb-2005)
    Stephen John Dobson (app 12-May-2005)
    Michael Julian Frayne (app 29-Nov-04)
    Eduardo Javier Valenzuela (res 18-Aug-05)
    Kim R Gardner (res 30-Nov-2004)
    Ian R Sandover (res 22-Feb-2005)
    Patrick J D Elliott (res 22-Feb-2005)

    PRINCIPAL ACTIVITIES

    The principal activities of the Consolidated
    Entity during the year were Copper, gold,
    nickel and other base metal exploration in
    Bolivia.
    There were no significant changes in the
    nature of the principal activities during the
    financial year:
    OPERATING RESULTS
    The operating loss for the Consolidated Entity,
    after income tax amounted to $1,550,301.

    DIVIDENDS
    No dividends have been paid or declared
    since the start of the financial year by the
    Parent Entity.
    The directors have recommended that no
    dividend be paid by the Parent Entity in
    respect of the year ended 30th June 2005.

    SIGNIFICANT CHANGES IN THE STATE OF
    AFFAIRS AND REVIEW OF OPERATIONS
    The following significant changes in the state
    of affairs of the Consolidated Entity occurred
    during the financial year:
    On 20 August 2004, the Parent Entity
    announced encouraging results from a
    recently completed geological and structural
    interpretation of the Anaconda prospect area.
    Copper mineralization identified to date
    consists predominantly of malaquite, cuprite,
    azurite, and chalcocite, with minor amounts of
    native copper in some areas. Furthermore,
    assay results from a small number of grab
    samples collected by the Directors during a
    site visit last May to the Anaconda Prospect
    have returned some highly encouraging
    copper grades.

    DIRECTORS’ REPORT
    2
    On 21 September 2004, the Parent Entity
    announced a 3 year option agreement for the
    acquisition of 100% of the Mantos Grandes
    project for a total price of US$4.0 million. The
    agreement consists of a 12 month option for
    an initial payment of US$250,000. Should The
    Parent Entity decide to withdraw at the end of
    12 months, it will retain a 6.25% interest in the
    company holding the project at no additional
    cost. The Parent Entity may extend the option
    for a further 24 months by paying US$1.25
    million. If thereafter The Parent Entity decides
    not to exercise the purchase option, then the
    project will be offered for sale and The Parent
    Entity will receive 25% of the proceeds. The
    Parent Entity may exercise the option on or
    before the end of the 3 year period by paying
    the remaining US$2.5 million of the total sale
    price in two installments over a period of 12
    months, with the second payment being
    deferrable for up to 12 months subject to
    interest.

    On 18 October 2004, the Parent Entity
    announced an agreement to acquire the 50%
    in the Chacarilla Copper Project that it did not
    already own for US$1 million.
    On 25 October 2004, the Parent Entity allotted
    and issued 43,500,000 fully paid ordinary
    shares in the Parent Entity for 1.1 cents per
    share in cash. The issue of these shares was
    subsequently ratified at the annual general
    meeting of shareholders held on 29 November
    2004.

    On 23 November 2004, the Parent Entity
    announced highly encouraging assay results
    from the initial sampling program at the
    Anaconda copper project in Bolivia which
    seem to confirm the existence of a medium to
    high grade copper system within the
    Anaconda leases. Results from the MMI
    program confirm the existence of a very
    strong polymetallic anomaly, strongly
    characterized by copper and silver and
    supported by lead and zinc over the examined
    strike length of some 2km. Anomalous Cu
    values were found in each of the soil samples
    and ranged from 480 to 32,200 ppb (low
    detection limit 10 ppb).
    Results from the rock chip samples (1.5 to 3.6
    kg in weight) seem to confirm the strong MMI
    results, with 13 out of the 25 samples
    returning copper values in the 1.09 to 14.6%
    Cu range. The arithmetic average of the
    mineralized samples was 4.7% Cu, whilst the
    overall average for all rock samples was 2.4%
    Cu.

    On 2 December 2004, the Parent Entity issued
    43,500,000 options to acquire shares in the
    Parent Entity expiring on 29 November 2006
    for an issue price of $0.003 per option in cash.
    Each option would entitle the holder to acquire
    one fully paid ordinary share in the Parent
    Entity for 2 cents. The issue of these options
    was approved by the Annual General Meeting
    of shareholders of the Company held on 29
    November 2004.

    On 2 December 2004, the Parent Entity issued
    5,000,000 options to acquire shares in the
    Parent Entity expiring on 28 August 2005.
    Each option would entitle the holder to acquire
    one fully paid ordinary share in the Parent
    Entity for 1.4 cents. These options were issued
    as part consideration for a loan of $500,000 to
    the Parent Entity. The issue of these options
    was approved by the Annual General Meeting
    of shareholders of the Company held on 29
    November 2004.

    On 25 January 2005, the Parent Entity
    announced results from an expanded
    geochemical sampling program at the
    Anaconda prospect in Bolivia. Assay results
    confirmed the existence of a number of
    geochemical anomalies, strongly
    characterized by copper and silver and
    supported by lead and zinc. Anomalous Cu
    values were found in each of the soil samples
    and ranged from 390 to 75,000 ppb (low
    detection limit 10 ppb). Silver values ranged
    from 1 to 105ppb (low detection limit 0.1 ppb).

    DIRECTORS’ REPORT
    3
    On 1 February 2005, the Parent Entity
    announced that it had been issued with a
    further 11,545,603 ordinary shares in
    Austminex Ltd as the final payment due in
    respect of the sale of its Coolgardie project to
    Austminex and it therefore holds 21,813,433
    ordinary shares in Austminex Ltd which is
    listed on the Australian Stock Exchange.
    On 7 February 2005, the Parent Entity
    announced an initial geochemical sampling
    program recently conducted at the Mantos
    Grandes prospect in Chile, have confirmed the
    existence of copper-gold-silver-molybdenum
    geochemical anomalies in areas adjacent to
    the old underground workings. A total of 22
    soil samples were collected from geological
    target areas in order to assess the
    prospectivity of areas outside the known skarn
    deposit. Anomalous Cu values were found in
    each of the soil samples, and ranged from 550
    to 59,700 ppb (low detection limit 10 ppb).
    Silver values ranged from 2.3 to 235ppb (low
    detection limit 0.1 ppb).

    On 21 February 2005, the Parent Entity
    announced that after further discussions with
    relevant parties it is now planning to move to
    100% ownership of the Chacarilla Copper
    Project as announced on the 18th October
    2004.

    On 15 March 2005, the Parent Entity allotted
    and issued 50,000,000 fully paid ordinary
    shares in the Parent Entity for 1.2 cents per
    share in cash. The issue of these shares was
    subsequently ratified at the general meeting of
    shareholders held on 12 May 2005.
    On 12 May 2005, the Parent Entity issued 448
    convertible notes redeemable on 11 May 2007
    of $1,000 each which earn interest of 9% per
    annum. These notes are convertible at the
    lenders discretion to fully paid ordinary shares
    in the Parent Entity at the lower of 1.2 cents
    per share or 80% of the average market price
    for the 5 business days prior to the date of
    conversion. The funds raised from this facility
    were for the repayment of existing debt. The
    issue of these convertible notes was approved
    at the general meeting of shareholders held on
    12 May 2005.

    On 12 May 2005, the Parent Entity issued
    5,000,000 fully paid ordinary shares in the
    Parent Entity and issued 5,000,000 options to
    acquire shares in the Parent Entity expiring on
    29 November 2006. Each option would entitle
    the holder to acquire one fully paid ordinary
    share in the Parent Entity for 2 cents. These
    shares and options were issued free for
    services rendered. The issue of these options
    was approved by the General Meeting of
    shareholders of the Company held on 12 May
    2005.

    On 12 May 2005, the Parent Entity issued
    10,000,000 options to Mr John Corr, a director
    of the Parent Entity, expiring on 31 May 2010.
    Each option would entitle the holder to acquire
    one fully paid ordinary share in the Parent
    Entity for 2 cents. These shares and options
    were issued free. The issue of these options
    was approved by the General Meeting of
    shareholders of the Company held on 12 May
    2005.

    On 19 May 2005, the Parent Entity allotted
    and issued 50,000,000 fully paid ordinary
    shares in the Parent Entity for 1.5 cents per
    share in cash. The issue of these shares was
    approved at the general meeting of
    shareholders held on 12 May 2005.
    On 20 May 2005, the Parent Entity allotted
    and issued 50,000,000 fully paid ordinary
    shares in the Parent Entity for 1.5 cents per
    share in cash.

    SIGNIFICANT EVENTS SUBSEQUENT TO
    BALANCE DATE
    On 26 August 2005, the Company allotted and
    issued 5,000,000 fully paid ordinary shares in
    the Company for 1.4 cents per share, pursuant
    to the exercise of 5,000,000 options expiring
    on 25 August 2005.

    DIRECTORS’ REPORT
    4
    No other matters or circumstances have
    arisen since the end of the financial year
    which significantly affected or may
    significantly affect the operations of the
    Consolidated Entity, the results of those
    operations, or the state of affairs of the
    Consolidated Entity in subsequent financial
    years.

    LIKELY DEVELOPMENTS

    The directors intend to actively pursue:
    · Agreement among the partners in the
    Chacarilla Copper Project to restructure
    this project to facilitate its sale or
    development.
    · Acquisition and development of the
    Anaconda Copper / Silver Project.
    · Other projects in South America.

    ENVIRONMENTAL ISSUES
    The Consolidated Entity's operations are
    subject to environmental regulation in Bolivia
    and in Western Australia. The Consolidated
    Entity continues to comply with these
    regulations.

    INFORMATION ON DIRECTORS
    JOHN FRANCIS CORR
    CHAIRMAN (EXECUTIVE)
    Qualifications and Experience
    Mr Corr has an honours degree in Law and
    degrees in Commerce and Arts. Mr Corr has
    worked with a number of major Australian
    listed companies and has been extensively
    involved in the stockbroking and investment
    banking sectors.
    Directorships of other listed companies in the
    3 years prior to the end of the Financial Year:
    Biron Capital Ltd (appointed 20 December
    2004).
    Interest in shares
    and options:
    2,750,000 ordinary shares in Sundance
    Resources Ltd, 750,000 options expiring 29
    November 2006 in the Parent Entity and
    10,000,000 options expiring 31 May 2010 in
    the Parent Entity.
    Directors meetings
    attended:
    Attended 10 of the 10 meetings held during
    the financial period while he was a director.
    Remuneration
    Remuneration earned by entities associated
    with Mr Corr from the Parent Entity during the
    financial year consisted of salary and
    consulting fees of $39,310 superannuation
    contributions of $2,312 and options to acquire
    shares in the Parent Entity valued at
    $129,554. Remuneration is based on fees
    approved by the Board of directors of $9,000
    per month in total.

    STEPHEN JOHN DOBSON
    EXECUTIVE DIRECTOR
    Qualifications and Experience:
    Mr Dobson has more than 20 years
    experience in investment banking and
    international capital management. From 1987
    to 2001 he held a range of positions as
    Managing Director of leading global
    investment bank Merrill lynch & Co. His
    responsibilities had him based in Sydney, New
    York, London, Singapore and finally Perth
    Australia. During this tenure his duties covered
    a full range of debt and equity transactions for
    Governments and corporations located across
    many jurisdictions. Prior to joining Sundance
    Resources Ltd he advised and was a director
    of several Australian and US based financial
    management firms with special focus on the
    global resources sector. He is a foundation
    director of Perth based advisory firm Capital
    Investment Partners and he holds a Bachelor
    of Commerce degree from the University of
    Western Australia.
 
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