2016
A N N U A L R E P O R T
ABN 61 123 156 089
www.manhattancorp.com.au
CONTENTS
CORPORATE DIRECTORY 1
CHAIRMAN'S REVIEW 2
REVIEW OF OPERATIONS 6
DIRECTORS' REPORT 15
AUDITOR'S REPORT 25
AUDITOR'S DECLARATION 27
FINANCIAL STATEMENTS 28
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 28
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 29
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 30
CONSOLIDATED STATEMENT OF CASH FLOWS 31
NOTES TO THE FINANCIAL STATEMENTS 32
DIRECTORS' STATEMENT 54
ASX ADDITIONAL INFORMATION 55
ANALYSIS OF SHAREHOLDINGS 55
TENEMENT SCHEDULE 58
CORPORATE DIRECTORY
DIRECTORS
Alan J Eggers Executive Chairman
B.Sc, B.Sc(Hons), M.Sc, F.S.E.G., MAusIMM, MAIG
Marcello Cardaci Non Executive Director
B.Juris, LLB, B.Com
John A G Seton Non Executive Director
LLM(Hons)
COMPANY SECRETARY
Alan J Eggers
B.Sc, B.Sc(Hons), M.Sc, F.S.E.G., MAusIMM, MAIG
BUSINESS OFFICE
Level 2
33 Colin Street
WEST PERTH WA 6005
PO Box 1038
West Perth WA 6872
Telephone: +61 8 9322 6677
Facsimile: +61 8 9322 1961
REGISTERED OFFICE
Level 2
33 Colin Street
WEST PERTH WA 6005
INTERNET ACCESS
Email: [email protected] Web Site: www.manhattancorp.com.au
COUNTRY OF INCORPORATION
Australia
SHARE REGISTRY
Computershare Investor Services Pty Ltd
Level 2, Resreve Bank Building 45 St Georges Terrace
PERTH WA 6000
INVESTOR ENQUIRIES
Australia: 1300 850 505
International: +61 3 9415 4000
Facsimile: +61 8 9323 2033
Web Site: www.computershare.com.au
AUDITORS
Rothsay Chartered Accountants
Level 1, Lincoln Building 4 Ventnor Avenue
West Perth WA 6005
BANKERS
Westpac Banking Corporation
109 St Georges Terrace Perth WA 6000
SOLICITORS
Gilbert + Tobin
1202 Hay Street West Perth WA 6005
STOCK EXCHANGE LISTING
Australian Securities Exchange ("ASX")
ASX Code: MHC
CHAIRMAN'S REVIEW
29 September 2016
Dear Shareholders and Investors
I'm pleased, on behalf of the Board and our executive team, to present Manhattan's 2016 Annual Report including the Financial Statements for the year ended 30 June 2016 and my review of the uranium sector.
Uranium Price Outlook
Despite the continued positive outlook for the nuclear sector and uranium industry globally the anticipated upturn in the uranium price has not materialised over the last 12 months as predicted by analysts.
Industry consultant TradeTech's weekly spot price indicator finished the month of August at US$25.25lb before ticking back up to US$25.50lb a week later and now back to US$25.25 this week, a 12 year low. Uranium at this time last year was trading at US$37.25lb, from a low of $28lb in August 2014.
As Japan recommissions its 43 power reactors, with five now back online, and new reactors around the globe completing construction, being commissioned and charged the fuel supply squeeze will hit and we hold the view that the demand and price for uranium will improve.
Uranium Market Dynamics
TradeTech concludes sellers of uranium fall into two camps. On the one hand there are those who are not keen to chase the ever lower prices, believing utility demand will quietly pick up. There are more than one uranium market analysts suggesting spot price cannot remain below the average cost of production, as it is now, for too much longer. Eventually the supply side will have to surrender to a greater extent than it already has.
On the other hand, TradeTech suggest, there are those sellers who simply need to offload product, and as such, are prone to jumping on any little tick up in price. Put the two together explains the recent spot price activity.
