RNS Number:7121J
Aztec Resources Limited
29 September 2006
Aztec Resources Limited
29 September 2006
Annual report
Aztec Resources Limited is pleased announce its annual report for the year ended
30 June 2006.
A full set of these accounts is available on the ASX website www.asx.com.au
under the Company's trading code AZR.
For further information contact:
Australia Peter Bilbe, Aztec Managing Director +61 (08) 9423 0800
UK Fiona Owen, Grant Thornton +44 (0) 870 991 2318
Website: www.aztecresources.com.au
CHAIRMAN'S REPORT
Dear Shareholder,
It gives me great pleasure to report on the substantial progress that your
Company has made in the 2005-06 financial year as we move through construction
to shipments of first ore at Koolan Island in early 2007.
Since completing the Bankable Feasibility Study for the Koolan Island Iron Ore
Project in August 2005, Aztec's directors and management have focused on
achieving all regulatory, corporate and operational milestones to ensure the
Company capitalises on the current iron ore boom by becoming Australia's next
new iron ore producer.
Aztec is at the forefront of a burgeoning second tier iron ore sector in Western
Australia. By planning to produce high quality, increasingly sought-after ore,
we are in the fortunate position of having buyers prepared to contract to take
all the iron ore produced at Koolan Island.
In August 2006, Aztec signed a long term sales contract with CITIC Australia
Commodity Trading Pty Ltd, part of the CITIC Group, one of China's largest
state-owned enterprises and a major shareholder in Aztec. Shortly after, Aztec
also signed a sales contract with Marubeni Corporation, one of Japan's largest
trading companies.
We expect to produce up to 4 million tonnes of iron ore per year for about 9
years from resources of 53 million tonnes grading 64.6% Fe. We are currently
undertaking an aggressive exploration programme and are confident of identifying
further resources to extend the mine's life beyond nine years.
The capital cost for the Koolan Island project is being funded through a
combination of cash ($42 million raised through a rights issue in December 2005
and $42 million from options exercised in July 2006), bank debt and lease
finance. The bank debt is expected to be finalised and available for drawdown in
October 2006.
After the end of the financial year, an opportunistic and unsolicited scrip bid
for the Company was made by Mt Gibson Iron Ltd. Your Board will continue to
review this bid and other options to ensure the best result for all
shareholders.
Finally, on behalf of the Board, I would like to acknowledge the outstanding
contribution of Aztec's management, staff and contractors who are working long
and hard to realise the Company's ambitions.
The year ahead is one of significant opportunity for shareholders and the Board
will continue to deliver value through the development of Koolan Island and
searching for robust company-making growth opportunities.
It is an exciting and challenging time and we remain committed to working
towards the successful commissioning of the Koolan Island Iron Ore Project for
the benefit of all shareholders.
Yours sincerely
Ian Burston
Chairman
Independent audit report to members of Aztec Resources Limited
Scope
The financial report and directors' responsibility
The financial report comprises the balance sheet, income statement, statement of
changes in equity, statement of cash flows, accompanying notes to the financial
statements, and the directors' declaration for Aztec Resources Limited (the
company) and the consolidated entity, for the year ended 30 June 2006. The
consolidated entity comprises both the company and the entities it controlled
during that year.
The directors of the company are responsible for preparing a financial report
that gives a true and fair view of the financial position and performance of the
company and the consolidated entity, and that complies with Accounting Standards
in Australia, in accordance with the Corporations Act 2001. This includes
responsibility for the maintenance of adequate accounting records and internal
controls that are designed to prevent and detect fraud and error, and for the
accounting policies and accounting estimates inherent in the financial report.
Audit approach
We conducted an independent audit of the financial report in order to express an
opinion to the members of the company. Our audit was conducted in accordance
with Australian Auditing Standards, in order to provide reasonable assurance as
to whether the financial report is free of material misstatement. The nature of
an audit is influenced by factors such as the use of professional judgement,
selective testing, the inherent limitations of internal control, and the
availability of persuasive rather than conclusive evidence. Therefore, an audit
cannot guarantee that all material misstatements have been detected.
We performed procedures to assess whether in all material respects the financial
report presents fairly, in accordance with the Corporations Act 2001, including
compliance with Accounting Standards in Australia, and other mandatory financial
reporting requirements in Australia, a view which is consistent with our
understanding of the company's and the consolidated entity's financial position,
and of their performance as represented by the results of their operations and
cash flows.
We formed our audit opinion on the basis of these procedures, which included:
* examining, on a test basis, information to provide evidence supporting
the amounts and disclosures in the financial report; and
* assessing the appropriateness of the accounting policies and disclosures
used and the reasonableness of significant accounting estimates made by the
directors.
While we considered the effectiveness of management's internal controls over
financial reporting when determining the nature and extent of our procedures,
our audit was not designed to provide assurance on internal controls.
We performed procedures to assess whether the substance of business transactions
was accurately reflected in the financial report. These and our other procedures
did not include consideration or judgement of the appropriateness or
reasonableness of the business plans or strategies adopted by the directors and
management of the company.
Independence
We are independent of the company and the consolidated entity and have met the
independence requirements of Australian professional ethical pronouncements and
the Corporations Act 2001. We have given to the directors of the company a
written Auditor's Independence Declaration a copy of which is included in the
Directors' Report. In addition to our audit of the financial report, we were
engaged to undertake the services disclosed in the notes to the financial
statements. The provision of these services has not impaired our independence.
Audit opinion
In our opinion the financial report of Aztec Resources Limited is in accordance
with:
(a) the Corporations Act 2001, including:
(i) giving a true and fair view of the financial position of Aztec Resources
Limited and the consolidated entity at 30 June 2006 and of their performance for
the year ended on that date; and
(ii) complying with Accounting Standards in Australia and the Corporations
Regulations 2001; and
(b) other mandatory financial reporting requirements in Australia.
Inherent Uncertainty Regarding Going Concern
Without qualification to the opinion expressed above, attention is drawn to the
following matter. As a result of the matters described in Note 1(a) "Going
Concern" of the financial report, there is significant uncertainty whether the
company and the consolidated entity will be able to continue as going concerns
and therefore whether they will be able to pay their debts as and when they fall
due and realise their assets and extinguish their liabilities in the normal
course of business at the amounts stated in the financial report. The financial
report does not include any adjustments relating to the recoverability and
classification of recorded asset amounts or to the amounts and classification of
liabilities that might be necessary should the company and the consolidated
entity not be able to continue as going concerns.
Ernst & Young
Gavin A. Buckingham
Partner
Perth
29 September 2006
DIRECTORS' DECLARATION
In the opinion of the directors of Aztec Resources Limited ("the Company"):
(a) the financial statements and notes of the Company and of the Group
are in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the Company's and the Group's
financial position as at 30 June 2006 and of their performance for the year
ended on that date; and
(ii) complying with Accounting Standards and Corporations Regulations
2001; and
(b) subject to the achievement of the matters set out in note 1 (a) to
the financial statements there are reasonable grounds to believe that the
Company will be able to pay its debts as and when they become due and payable.
This declaration has been made after receiving the declarations required to be
made to the directors in accordance with section 295A of the Corporations Act
2001 for the financial period ending 30 June 2006.
Signed in accordance with a resolution of the directors.
Geoffrey T Clifford
Director
Peter R Bilbe
Managing Director
Perth, Western Australia
29 September 2006
INCOME STATEMENT
FOR THE YEAR ENDING 30 JUNE 2006
Consolidated Aztec Resources
2006 2005 2006 2005
$'000 $'000 $'000 $'000
-------- ------- ------- -------
Continuing operations
Finance revenue 1,554 438 1,554 438
Royalty 385 - 385 -
Management fees - 161 - 161
Dividends 4 - 4 -
-------- ------- ------- -------
Revenue 1,943 599 1,943 599
Other income 114 - 114 -
Employee and contractor costs (3,030) (1,217) (3,030) (1,217)
Consultants and professional fees (1,192) (1,219) (985) (1,219)
Depreciation and amortisation (347) (100) (57) (100)
Exploration expenditure (610) (3,228) (16) (127)
Impairment of:
- assets held for sale - (465) - (465)
- controlled entities - - - (3,008)
- loans to controlled entities - - - (93)
Community development expense (300) - - -
Share registry expenses (285) (141) (285) (141)
Insurance (281) (38) - (38)
Stamp duty (172) - - -
Other expenses (1,081) (467) (805) (467)
-------- ------- ------- -------
Loss before income tax (5,241) (6,276) (3,121) (6,276)
Income tax expense - - - -
-------- ------- ------- -------
Net loss attributable to members of
the parent entity (5,241) (6,276) (3,121) (6,276)
======== ======= ======= =======
Basic loss per share (cents per share) (0.85) (1.59)
Diluted loss per share (cents per
share) (0.85) (1.59)
BALANCE SHEET
AS AT 30 JUNE 2006
Consolidated Aztec Resources
2006 2005 2006 2005
Assets $'000 $'000 $'000 $'000
-------- -------- -------- --------
Current assets
Cash and cash equivalents 16,962 18,315 16,962 18,315
Trade and other receivables 1,267 335 1,267 335
Prepayments 38 8 8 8
Inventories 138 - - -
Other financial assets - 630 - 630
-------- -------- -------- --------
Total current assets 18,405 19,288 18,237 19,288
-------- -------- -------- --------
Non current assets
Trade and other receivables - - 59,427 13,613
Investment in controlled entities - - 500 500
Property, plant and equipment 30,270 2,056 340 2,056
Exploration and evaluation
expenditure 499 14,027 - 20
Mine development 36,655 - - -
Other financial assets 2,280 106 2,174 -
-------- -------- -------- --------
Total non current assets 69,704 16,189 62,441 16,189
-------- -------- -------- --------
Total assets 88,109 35,477 80,678 35,477
-------- -------- -------- --------
Liabilities
Current liabilities
Trade and other payables 10,168 1,820 817 1,820
Interest bearing liabilities 1 28 1 28
Provisions 66 105 66 105
-------- -------- -------- --------
Total current liabilities 10,235 1,953 884 1,953
-------- -------- -------- --------
Non current liabilities
Provisions 200 - - -
-------- -------- -------- --------
Total non current liabilities 200 - - -
-------- -------- -------- --------
Total liabilities 10,435 1,953 884 1,953
-------- -------- -------- --------
-------- -------- -------- --------
Net Assets 77,674 33,524 79,794 33,524
======== ======== ======== ========
Equity
Contributed equity 100,683 51,706 100,683 51,706
Reserves 576 162 576 162
Accumulated losses (23,585) (18,344) (21,465) (18,344)
-------- -------- -------- --------
Total equity 77,674 33,524 79,794 33,524
======== ======== ======== ========
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2006
Consolidated Aztec Resources
2006 2005 2006 2005
$'000 $'000 $'000 $'000
-------- ------- -------- --------
Cash flows from operating activities
Receipts in the course of operations 223 - 223 -
Payments to suppliers and employees (6,418) (2,240) (6,791) (2,240)
Interest received 1,496 438 1,496 438
Dividends received 4 - 4 -
-------- ------- -------- --------
Net cash flows used in operating
activities (4,695) (1,802) (5,068) (1,802)
-------- ------- -------- --------
Cash flows from investing activities
Payments for cash bonds (2,174) - (2,174) -
Proceeds from sale of:
- property, plant and 427 24 32 24
equipment
- investments 1,124 - 1,124 -
- controlled entities / 80 - 80 -
tenements
Payments for:
- exploration and (6,020) (9,758) (109) (7)
evaluation
- development (7,695) - - -
Purchase of:
- property, plant and (22,349) (1,891) (340) (1,891)
equipment
- investments - (1,012) - (1,012)
-------- ------- -------- --------
Net cash flows used in investing
activities (36,607) (12,637) (1,387) (2,886)
-------- ------- -------- --------
Cash flows from financing activities
Proceeds from issues of shares 42,250 29,911 42,250 29,911
Transaction costs of share issues (2,273) (2,960) (2,273) (2,960)
Payment of finance lease liabilities (28) (30) (28) (30)
Loans to controlled entities - - (34,847) (9,751)
-------- ------- -------- --------
Net cash flows from financing
activities 39,949 26,921 5,102 17,170
-------- ------- -------- --------
Net increase/(decrease) in cash and
cash equivalents (1,353) 12,482 (1,353) 12,482
Cash and cash equivalents at
beginning 18,315 5,833 18,315 5,833
of period -------- ------- -------- --------
Cash and cash equivalents at end of
period 16,962 18,315 16,962 18,315
======== ======= ======== ========
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR AKCKNBBKDFCB
Grafico Azioni Aztec Res. (LSE:AZR)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Aztec Res. (LSE:AZR)
Storico
Da Lug 2023 a Lug 2024
