A.B.N. 54 126 490 855
2016
ANNUAL REPORT
COPPERMOLY LTD ANNUAL REPORT 2016
C O N T E N T S
Page
Directors' Report 2-15
Operating & Financial Review 2
Corporate Governance 15
Auditor's Independence Declaration 16
Financial Report 17
Consolidated Statement of Profit or Loss
and Other Comprehensive Income 18
Consolidated Statement of Financial Position 19
Consolidated Statement of Changes in Equity 20
Consolidated Statement of Cash Flows 21
Notes to the Consolidated Financial Statements 22-41
Directors' Declaration 42
Independent Audit Report to the Members 43-44
Shareholder Information 45
Corporate Directory 46
Your Directors present their report on the consolidated entity consisting of Coppermoly Ltd and the entities it controlled at the end of, or during, the year ended 30 June 2016.
DIRECTORS
The following persons were Directors of Coppermoly Ltd during the whole of the financial year and up to the date of this report unless otherwise stated:
K. Grice
J. Yao
W. Huang
Z. Lin was appointed as a Director on 11 April 2016
PRINCIPAL ACTIVITIES
The principal activities during the financial year of entities within the consolidated entity were exploration and evaluation of porphyry copper-molybdenum-gold projects in Papua New Guinea.
There were no significant changes in the principal activities during the year.
RESULTS AND DIVIDENDS
The consolidated entity loss from operating activities after income tax for the period was $740,740 (2015:
$798,960). No dividend has been paid or recommended during the year ended 30 June 2016.
OPERATING & FINANCIAL REVIEW
Coppermoly Limited is an ASX-listed exploration company targeting porphyry style large scale-low grade projects prospective for copper, gold and molybdenum. The Company's projects are located on New Britain Island in Papua New Guinea (PNG).
Operational Review
Two of the Company's exploration licences, EL1043 Mt Nakru and EL2379 Simuku, together known as the West New Britain Projects (WNB Projects), were previously subject to a farm-in agreement with Barrick (PD) Australia Ltd (Barrick), a subsidiary of Barrick Gold Corporation. Barrick earned a 72% interest in the three licences by spending more than $20 million on exploration. In July 2013 Coppermoly entered into an agreement with Barrick to re-acquire Barrick's interest in the WNB Projects on a staged basis to reacquire 100% ownership of these licences. Barrick still holds a nominal 28% interest in the WNB Projects, which the Company has a binding agreement to acquire, completion of which will be effected on the payment of a further $4.5M to Barrick within 6 months after the commencement of commercial production at the WNB Projects. Barrick do not have to contribute any further costs to exploration or development of the projects nor are they entitled to any profits from the projects. See note 12 in the Notes to the Consolidated Financial Statements for more details.
Coppermoly also has 100% ownership of three other tenements located on New Britain Island, including EL2014 Makmak, where early exploration is focused on the Pulding and Wara Creek prospects as well as two prominent aeromagnetic anomalies; EL1782 Powell in East New Britain a grassroots project with copper potential; and EL2272 Wowonga which covers the south east extensions of the Nakru trend.
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Project
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Date first acquired
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Location
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EL 1043 Mt Nakru (48km²)
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Jan 2008
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West New Britain
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EL 2379 Simuku (123km²)
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Jan 2008
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West New Britain
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EL 2014 Makmak (255km²)
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May 2012
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West New Britain
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EL 1782 Powell (378km²)
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Sep 2013
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East New Britain
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EL 2272 Wowonga (31km²)
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Feb 2014
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East New Britain
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The Company's core objective is to ensure that the full value of all of its assets are realised over time. The consolidated entity's current mineral tenements are:
Figure 1: Coppermoly's Exploration Licences on New Britain
Project review
EL 1043 Mt Nakru
Although no field work was undertaken during this reporting period, it is anticipated that a drilling program will commence in the fourth quarter of 2016. This work will concentrate on the Nakru-1 and Nakru-2 prospects where past drilling has intersected high grade near-surface copper mineralisation. The drilling program will focus on identifying a commercially viable resource close to surface. It will also attempt to increase the JORC ranking from the currently inferred category to an indicated resource.
EL 2379 Simuku
Work on the Simuku prospect which comprises the Simuku porphyry, Kula alteration zone and Mt Misusu quartz stockwork has been limited to a review of the Barrick data. This style of mineralisation is typically large and lower grade. As the Simuku prospect extends over both the Simuku and Talelumas exploration licences, Coppermoly decided to consolidate the two licences into EL 2379. The new exploration licence covers exactly the same land, and has the same landowners, as the antecedent tenements but reduces the administration and compliance requirements for the licence. The Company anticipates more substantial work being performed on the Simuku tenement in the next 12 months.
EL 2014 Makmak
The main area of focus on the Makmak tenement is the Pulding prospect. Previous sampling and prominent aeromagnetic anomalies show a prospective SSE-NNW trending lineament which will be targeted for further evaluation.
The Exploration Licence is currently in the process of renewal awaiting the next Mining Advisory Council meeting after a successful recent Warden's Hearing.
EL 1782 Powell
The Powell EL is located in East New Britain and was renewed during the period for a further two years following a successful Warden's Hearing held on site. Following a compulsory reduction in the size of the Licence this tenement now covers 111 sub blocks or 378.5 square kilometres. A data review has indicated copper geochemical anomalies in the south west of the tenement which warrants future follow up.
