c780d8ff-e61a-4a53-83b7-938d81d43ddd.pdf
2015
ANNUAL REPORT
ABN 94 088 488 724
CONTENTS
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CORPORATE DIRECTORY
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Company Update
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2
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BOARD
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Malcolm Richmond Chairman
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Directors' Report
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3
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William Johnson Managing Director
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Farooq Khan Director
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Remuneration Report
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8
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Matthew Hammond Director
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Victor Ho Director
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Auditor's Independence Declaration
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15
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Samantha Tough (retiring at 2015 AGM) Director
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Consolidated Statement of Profit or
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16
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Loss and Other Comprehensive Income
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COMPANY SECRETARY
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Victor Ho
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Consolidated Statement of
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17
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Financial Position
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PRINCIPAL & REGISTERED OFFICE
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Consolidated Statement of
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18
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Level 2, 23 Ventnor Avenue
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Changes in Equity
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West Perth, Western Australia 6005
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Consolidated Statement of Cash Flows
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19
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Telephone: (08) 9214 9727 / 9214 9700
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Facsimile: (08) 9214 9701
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Notes to Consolidated Financial
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20
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Email: [email protected]
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Statements
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Website: www.strikeresources.com.au
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Directors' Declaration
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41
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STOCK EXCHANGE
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Independent Auditor's Report
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42
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Australian Securities Exchange
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Perth, Western Australia
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List of Mineral Concessions
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44
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ASX CODE
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Annual Mineral Resources Statement
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45
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SRK
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JORC Code Competent Person's
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46
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Statements
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SHARE REGISTRY
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Advanced Share Registry Services
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Additional ASX Information
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47
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110 Stirling Highway
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Telephone: (08) 9389 8033
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Strike's 2015
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Facsimile: (08) 9262 3723
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Corporate Governance Statement
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can be found at the following
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Level 6, 225 Clarence Street
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URL on the Company's website:
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Sydney, New South Wales 2000
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www.strikeresources.com.au/corporate-governance
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Email: [email protected]
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Investor Web: www.advancedshare.com.au
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AUDITOR
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BDO Audit (WA) Pty Ltd
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www.strikeresources.com.au
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38 Station Street
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Subiaco, Western Australia 6008
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Visit our website for:
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Telephone: (08) 6382 4600
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Facsimile: (08) 6382 4600
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Website: www.bdo.com.au/perth
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COMPANY UPDATE
Update on Company Strategy
Strike continues to examine a range of new strategies for the Company in light of the poor outlook for the iron ore sector and the resources sector in general.
In this regard, Strike has been investigating a number of technology related ventures which could form the foundation for a new strategy for the Company.
Any such change will necessarily be subject to Strike shareholder approval and compliance with the ASX Listing Rules and Corporations Act.
In relation to the Company's Apurimac and Cusco Iron Ore Projects in Peru, Strike has consolidated its holding of mineral concessions to the core concessions where JORC Resources have been delineated as well as a number of neighbouring concessions which have strategic value associated with the projects - this has reduced Strike's holding costs in Peru and provides Strike with the flexibility to pursue opportunities to realise value from these iron ore assets in the future if and when favourable market conditions return.
Financial Position
As at 30 September 2015, Strike had net assets of ~$7.1 million (comprising ~$8.1 million gross cash less provisions/accruals/trade creditors of ~$1 million) (30 June 2015: ~$7.6 million net assets comprising ~$8.4 million cash less provisions/accruals/trade creditors of ~$0.8 million).
Bentley Capital's Takeover Bid for Strike
On 2 September 2015, Bentley completed its off-market 5.5 cent per share cash takeover bid1 for Strike, with acceptances received totalling 52,553,493 Strike shares (representing a 36.16% relevant interest in Strike).
Board and Corporate Changes
There has been a number of Board and corporate changes recently1:
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Farooq Khan was appointed a Director with effect on 1 October 2015 - Farooq Khan was an Alternate Director to Victor Ho (20 January 2014 to 1 October 2015) and has been previously a Director of Strike (between 3 September 1999 and 3 February 2011), including as the founding Executive Chairman and Managing Director after the Company's IPO in March 2000.
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Victor Ho was appointed Company Secretary with effect on 30 September, replacing David Palumbo (a representative of Mining Corporate) - Victor Ho is currently a Director of Strike (since 20 January 2014) and has previously been a Company Secretary of Strike (between 9 March 2000 and 30 April 2010).
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Mining Corporate's engagement for the provision of outsourced accounting and company secretarial services to the Company will cease at the end of October. The Board thanks David Palumbo and Mining Corporate for their professionalism and support to Strike.
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Strike changed its Perth office on 1 October 2015 as a consequence of the transition out of Mining Corporate.
Samantha Tough has advised the Board that she intends to retire and not seek re-election at the upcoming Annual General Meeting (to be held on 30 November 2015), to focus on her other non-executive director roles.
For further information, please contact:
1 Refer Strike ASX Announcement dated 2 October 2015: Board and Corporate Changes
DIRECTORS' REPORT
Your Directors present their report on the Consolidated Entity consisting of Strike Resources Limited ('Company' or 'Strike') and the entities it controlled at the end of, or during, the year ended 30 June 2015.
Directors
The following persons were Directors of Strike during the whole of the financial year and up to the date of this report: Malcolm Richmond
Matthew Hammond William Johnson Samantha Tough Victor Ho
Farooq Khan
Principal Activities
The principal activities of the Consolidated Entity during the financial year were the pursuit of opportunities for realisation of value from Consolidated Entity's interest in the Apurimac and Cusco Iron Ore Projects located in Peru, South America and consideration of alternative business strategies.
Dividends
No dividends have been paid or declared during the financial year. At the date of this report, no dividend has been recommended for payment in respect of the reporting period.
Review of Operations
During the year, no activity was undertaken on the Company's iron ore projects in Peru as the Company continued to examine a range of new strategies for the Company in light of the poor outlook for the iron ore sector and the resources sector in general.
A number of parties expressed interest in the Company's Peru assets during the year. One conditional purchase offer was received, but the commercial terms offered were considered unacceptable by the Board.
A number of non-core mineral concessions in Peru were allowed to lapse on 30 June 2015, significantly reducing the Company's annual expenditure commitment in Peru. The Company continues to hold those core concessions in Peru which contain its JORC Resources of iron ore in Apurimac and Cusco, as well as some neighbouring concessions which have strategic value associated with the projects.
Whilst some of these core concessions remain the subject of a number of ongoing legal claims in Peru, the Company remains of the view that these claims are spurious and without merit and the Company's lawyers in Peru continue to successfully defend against these claims.
The Company continues to conserve its cash resources, holding a balance of approximately $8.37 million in cash as of 30 June 2015. All corporate secretarial, compliance and accounting services are outsourced. The Company has no full time employees (apart from the Managing Director) and the Company holds no long term office lease commitments.
Significant Changes in the State of Affairs
In July 2014, the Company received an offer to acquire its Peru assets. However, the Company was unable to reach an agreement with the party making the offer. On 8 August 2014, the offer was withdrawn.
On 8 April 2015, the Company announced that it has received resolutions from the Peruvian Tax Administrator ('SUNAT') which have predominately ruled in favour of a claim made by the Company's subsidiary, Apurimac Ferrum S.A.C. As a result, the Company was able to reverse A$1.1 million of its A$1.7 million accrual that it has previously made for withholdings taxes.
On 30 June 2015 the Company received an unsolicited off-market takeover bid by Bentley Capital Limited (ASX: BEL, 'Bentley') ('the Offer'), whose Chairman, Farooq Khan, is Strike's Alternative Director to Non-Executive Director Victor Ho (who is also Company Secretary of Bentley). Strike Managing Director, William Johnson is also a Non-Executive Director of Bentley.