INDIANA RESOURCES LIMITED
ABN 67 009 129 560
ANNUAL REPORT
for the year ended 30 June 2016
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Corporate Information
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ABN 67 009 129 560
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Directors
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Dr Derek Fisher (Non-Executive Chairman)
Mr Bruce McFadzean (Non-Executive Director)
Mr Campbell Baird (Managing Director - appointed 15 June 2016)
Mr Philip Hoskins (former Managing Director - resigned 14 June 2016) Mr Nicholas Corlis (former Executive Director - resigned 14 June 2016)
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Company Secretary
Mr Stuart McKenzie
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Registered Office
Suite 4, Level 1, 2 Richardson Street WEST PERTH WA 6005
Tel +61 8 9388 7877
Fax +61 8 9382 2399
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Bankers
Commonwealth Bank of Australia 150 St Georges Terrace
PERTH WA 6000
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Share Register
Computershare Limited
Level 2, 45 St Georges Terrace
PERTH WA 6000
Tel + 61 8 9323 2000
Fax + 61 8 9323 2033
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Auditors
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RSM Australia Partners 8 St Georges Terrace PERTH WA 6000
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Website Address
www.indianaresources.com.au
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ASX Code
Shares are listed on the Australian Securities Exchange under stock code IDA.
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Contents
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Chairman‟s and Managing Director‟s Report
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3
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Directors' Report
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4
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Remuneration Report
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19
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Consolidated Statement of Profit or Loss and Other Comprehensive Income
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30
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Consolidated Statement of Financial Position
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31
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Consolidated Statement of Changes in Equity
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32
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Consolidated Statement of Cash Flows
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33
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Notes to the Financial Statements
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34
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Directors' Declaration
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63
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Independent Auditor‟s Report
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64
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Auditor‟s Independence Declaration
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66
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ASX Additional Information
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67
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Chairman and Managing Director's Report
Indiana Resources Limited - Annual Report
Dear Shareholders,
We are pleased to introduce Indiana Resources‟ 2016 Annual Report and to reflect on what has been a watershed year in which the Company has repositioned itself as a Tanzanian dedicated gold explorer, focused on its Kishugu and Naujombo Gold Prospects.
The 2016 year was a challenging environment for the resources industry, in particular small exploration and development companies such as Indiana. In difficult circumstances, significant progress was made with the Chilalo Graphite Project, where successful drilling programs, favourable metallurgical testwork results, a positive Pre-feasibility Study and the development of encouraging relationships with Chinese counterparties interested in offtake and finance saw Chilalo emerge as a world-class graphite asset and a near-term development opportunity.
Owing to consistent market feedback that the Company‟s multi-commodity asset portfolio, which included the Chilalo Project, the Ntaka Hill Nickel Project and the Kishugu and Naujombo Gold Prospects, was inhibiting the realisation of the true value of these assets, the Board committed to a restructure under which the Chilalo Project was sold to a new, dedicated graphite company - Graphex Mining Limited - and Indiana retained a controlling interest in the Kishugu and Naujombo Gold Prospects and the substantial Ntaka Hill Nickel Project.
The restructure was approved by shareholders in April 2016 and Indiana received total consideration of $5.0 million for the sale of Chilalo, comprised of $1.0 million in cash and A$4.0 million in Graphex shares which were distributed in specie to Indiana shareholders.
We are pleased that the restructure has delivered significant value to the Company‟s shareholders, with the combined market capitalisation of Indiana (approximately $4.8 million) and Graphex (approximately $21.4 million) far exceeding the Company‟s market capitalisation prior to the restructure.
During the year, gold exploration consisted of geophysical work, extensional and in-fill soil sampling programs and test pitting, all of which provided valuable information for the recently competed Stage One rotary air blast drilling program. Both Kishugu and Naujombo are large, coherent gold-in-soil anomalies and while they represent highly attractive exploration prospects, the sheer scale of the anomalies presents some challenges.
It is for that reason that RAB drilling was considered the most cost effective means of advancing Kishugu and Naujombo. The Stage One RAB driling program comprised approximately 3,600m - 1,200m at Kishugu and 2,400m at Naujombo - and has provided valuable information on the underlying geology and enabled a better understanding of the soil sampling and geophysical work previously conducted. While assay results are awaited, we expect to undertake a Stage Two program later in the year to build on the knowledge gained from the Stage One drilling.
The Company also retains a controlling interest in the Ntaka Hill Nickel Project. There is a large existing Mineral Resource at Ntaka Hill and previous analysis of development opportunities had been based on a larger scale, medium grade operation. During the year, our JV partner at Ntaka Hill reassessed the development options and concluded that an opportunity existed to develop a smaller scale operation, capable of producing between 9,000 and 10,500 tonnes of nickel per annum in concentrates for a period of 10 years, at run of mine grades in excess of 1% nickel.
In closing, we would like to thank former Managing Director Phil Hoskins, for his efforts over the past two years and wish him well as Managing Director with Graphex. We also thank Nick Corlis, former Executive-Director and wish him well as Technical Manager with Graphex. The Company welcomed Campbell Baird as Indiana‟s new Managing Director in June. Campbell has significant credentials in the gold industry and we are pleased with the recently completed exploration work at Kishugu and Naujombo and excited about what lies ahead with those prospects.
Having totally repositioned the Company with a commitment to gold exploration at Kishugu and Naujombo, consolidated the capital structure, undergone a name change and recently completed a share placement and oversubscribed share purchase plan, Indiana is well placed to deliver on our strategy as we move into 2017.
Derek Fisher Campbell Baird
Chairman Managing Director
