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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