ABN 12 000 817 023
2016 ANNUAL REPORT
DIRECTORS
Paul Burton (Managing Director) Geoffrey Crow (Non-Executive Director) Rex Turkington (Non-Executive Director)
COMPANY SECRETARY
Simon Robertson
REGISTERED OFFICE
Level 1, 282 Rokeby Road Subiaco Western Australia 6008
PO Box 1126
Subiaco Western Australia 6904
Telephone: (08) 9327 0900
Facsimile: (08) 9327 0901 Website: www.tngltd.com.au
SHARE REGISTRY
Computershare Investor Services Pty Ltd Level 2, 45 St Georges Terrace
Perth Western Australia 6000
Telephone: (08) 9323 2000
Facsimile: (08) 9323 2033
AUDITORS
KPMG
235 St Georges Terrace
Perth Western Australia 6000
DOMESTIC STOCK EXCHANGE
Australian Securities Exchange (ASX) Code: TNG
INTERNATIONAL STOCK EXCHANGE
German Stock Exchanges Code: HJI
CONTENTS
Review of Operations 2
Directors' Report 19
Auditor's Independence Declaration 31
Financial Statements 32
Consolidated Statement of Comprehensive Income 32
Consolidated Statement of Financial Position 33
Consolidated Statement of Cash Flows 34
Consolidated Statement of Changes in Equity 35
Notes to the Financial Statements 36
Directors' Declaration 66
Independent Audit Report 67
Corporate Governance Statement 69
Additional ASX Information 77
ANNUAL REPORT 2016 1
REVIEW OF OPERATIONS
2016 HIGHLIGHTS - YEAR IN REVIEW
X Binding Life-of-Mine Off-take Agreement signed with major Korean ferro-vanadium group, WOOJIN, for
a minimum of 60% of all vanadium products to be produced from the Mount Peake Project.
X Binding Life-of-Mine Technology Transfer agreement signed with WOOJIN ("WJN") for the use of WJN's proprietary ferro-vanadium production technology at the TIVAN® refinery site. WOOJIN's technology
currently has the world's highest vanadium recovery rate and is expected to allow TNG significant additional profitability over the project's life.
X Binding Term Sheet for Life-of-Mine off-take signed with major global commodity trader Gunvor
(Singapore) for a minimum of 60% of all iron products to be produced from Mount Peake.
X Binding Heads of Agreement signed with SMS group, one of world's biggest metallurgical engineering and construction companies, for engineering, design and tendering for construction for the TIVAN® downstream refinery, and provision of assistance for funding refinery construction.
X Memorandum of Understanding with SMS group for the joint commercial exploitation of the technology underpinning the TIVAN® downstream refinery.
X Up to $50 million per annum in operating cost savings identified for the Mount Peake Project as a result of work completed under the strategic alliance between TNG and SMS group.
X Multi-pronged Memorandum of Understanding (MOU) signed with the leading global services provider Downer EDI, paving the way to secure
Downer's participation in the development, construction and operation of the Mount Peake Project.
X Memorandum of Understanding signed with Caterpillar Financial Australia for the provision of project finance and/or equipment finance for Mount Peake. The MOU provides scope for Cat Financial to participate in a project funding package in conjunction with other relevant financiers.
X Highly experienced industrial and construction group McMahon Services appointed as Mount Peake Project Manager to coordinate pre-development activities on behalf of TNG for the interim period until a final construction commitment and project finance is secured.
X Strong progress with Mount Peake approvals, with the Environmental Impact Statement (EIS) released for public comment, Notice of Intent for TNG's Darwin refinery submitted to the Northern Territory Government, and Sacred Site Clearance Certificate received from the Central Land Council.
X Discussions continued on multiple fronts during the period with several leading financial groups and major construction and mining groups to secure an appropriate funding and development package for Mount Peake.
X Completion of $4 million capital raising, under which SMS group GmbH became a cornerstone investor in TNG, with a further $4 million raised via the conversion of options by existing shareholders.
2 TNG LIMITED