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ASX ANNOUNCEMENT 18 May 2016
ASX Code: BDR
CHAIRMAN'S ADDRESS TO THE 2016 ANNUAL GENERAL MEETING
Beadell Resources Limited ("Beadell" or "the Company") is pleased to provide the following extract from the Chairman's Address to the 2016 Annual General Meeting held this morning.
"Good morning Ladies and Gentlemen, it is my pleasure to welcome you to the 2016 Annual General Meeting of Shareholders of Beadell Resources.
The Company has gone through a major transition in the past six months and I am delighted to report that we believe that we have turned the corner and that Beadell is now well on the track to a long term sustainable and profitable future.
In late 2015, the Company announced sweeping changes to the composition of its Board of Directors and Management team.
Mr Simon Jackson was appointed as Chief Executive Officer and Managing Director and Dr Glen Masterman was appointed Executive Director of Geology and Corporate Development. Also appointed to the Board of Directors were Mr Brant Hinze and Mr Timo Jauristo. Mr Peter Bowler retired as Managing Director of the Company and Mr Mike Donaldson, Mr Ross Kestel and Mr Rob Watkins retired from the Board of Directors.
Mr Peter Holmes was appointed as Chief Operating Officer of the Company. Mr Rob Watkins and Mr Greg Barrett continue as members of the senior management team. The Company now has a very experienced team of mining professionals who are leading the Company into the future. The physical operations at Tucano improved during the first quarter of 2016 and we are now well advanced on a full project review of Tucano. The latest step is to compile a new life of mine plan based on the new Ore Reserve released in April.
In the first half of 2016, the Company raised A$50.0 million through a placement of new equity to domestic and international institutional and sophisticated investors. This placement was done at 19.5 cents per share representing a 5% discount to the 5-day VWAP and a significant premium to the
Beadell Resources Limited
Second Floor, 16 Ord Street, West Perth 6005, Western Australia
ABN 50 125 222 291 PO Box 542, West Perth 6872, Western Australia
www.beadellresources.com.au Telephone: +61 8 9429 0800 | Facsimile: +61 8 9481 3176
trading range of Beadell stock over the previous eight months. We were delighted with the overwhelming support received for the placement from a wide range of leading institutional investors. The benefits to the Company were threefold:
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It allowed the new management team to strengthen the balance sheet thus reducing one of the major risks that the Company faced.
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We welcomed a high quality list of institutional investors as shareholders who will support management as they continue to deliver on their turnaround strategy.
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It allowed the Company to begin to explore both the existing mine corridor and also the regional land package surrounding Tucano both of which have had little exploration expenditure in the past 10 years. The initial results of those new exploration programs have started coming through and the Company has released new strong exploration results from Tap AB1 Trough Lode, Gold Nose and Mutum. Those results further support our belief that the existing Tucano resource lies within a highly prospective region with district scale potential. Beadell's ongoing exploration efforts will continue to try and delineate the scope of the various mineralised structures in the Tucano region. We believe the Company has an under explored, exciting exploration portfolio within potential trucking distance of the Tucano plant.
Finally, we would like to thank all Beadell employees and contractors for their contributions to the Company during the past year.
Most importantly, we would also like to acknowledge you, our shareholders, for your support during the past challenging year and we very much look forward to the future."
CRAIG READHEAD
Chairman
For further information please contact: Greg Barrett | Company Secretary / CFO T: +61 8 9429 0800
[email protected]
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