Acacia Coal Limited
ABN 13 009 092 068
ANNUAL REPORT 2016
Annual Report for the year ended 30 June 2016
CORPORATE DIRECTORY
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Acacia Coal Limited ACN: 009 092 068
ABN: 13 009 092 068
Directors
Mr Adam Santa Maria Executive Chairman
Mr Logan Robertson Non-Executive Director
Mr Brett Lawrence Non-Executive Director
Company Secretary
Mrs Rachel Kerr
Registered and Principal Office
Level 7, 1008 Hay Street
Perth WA 6000
Telephone: (08) 9389 2000
Facsimile: (08) 9389 2099
Website
www.acaciacoal.com
Email
[email protected]
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Stock Exchange
Australian Securities Exchange (ASX Limited) Home Exchange Perth
Securities
Code: AJC = Quoted Shares
Share Registry
Boardroom Pty Limited Level 12, 225 George Street Sydney NSW 2000 Australia
GPO Box 3993
Sydney NSW 2001 Australia
Telephone: +61 2 9290 9600
Facsimile: +61 2 9279 0664
Email: [email protected] Website: www.boardroomlimited.com.au
Auditor
Rothsay Chartered Accountants Level 1, Lincoln House
4 Ventnor Avenue
West Perth, WA 6005 Australia
PO Box 8716, Perth Business Centre, WA 6849 Telephone: +61 8 9486 7094
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Annual Report for the year ended 30 June 2016
CONTENTS
CORPORATE DIRECTORY 1
REVIEW OF OPERATIONS 2
DIRECTORS' REPORT 3
AUDITORS INDEPENDENCE REPORT 13
STATEMENT OF COMPREHENSIVE INCOME 14
STATEMENT OF FINANCIAL POSITION 15
STATEMENT OF CHANGES IN EQUITY 16
STATEMENT OF CASH FLOWS 17
NOTES TO THE FINANCIAL STATEMENTS 18
DIRECTORS' DECLARATION 34
INDEPENDENT AUDIT REPORT 35
SHAREHOLDER INFORMATION 37
Annual Report for the year ended 30 June 2016
REVIEW OF OPERATIONS
EXECUTIVE CHAIRMAN'S REPORT AND REVIEW OF OPERATIONS
In the course of the financial year, Acacia Coal Limited (Acacia Coal or the Company) has undertaken a number of significant changes. Chief amongst these is the restructure of the Company's Board and management team to ensure that the Company is able to respond appropriately to what has been a sustained resources downturn by reducing costs and positioning the Company to identify opportunities to deliver more sustainable and greater value for the Company's shareholders.
As part of the Company's work to reduce costs, ongoing corporate overheads relating to Board and Key Management Personnel as at 30 June 2016 have been reduced by in excess of 90% when compared to the previous financial year. In addition, Acacia Coal has worked to reduce other fixed costs including renegotiating its supplier contracts, sub-leasing its Sydney offices and consolidating its operations out of Perth.
The Company's primary asset remains the Comet Ridge Coking Coal Project (EPC 1230) in the Bowen Basin in Central Queensland. Acacia Coal has sought to defer all non-essential expenditure regarding Comet Ridge except where such expenditure demonstrates direct value accretion in relation to the Project or is required in order to enhance Acacia Coal's rights in connection with it.
The Comet Ridge MLA is currently being progressed through the numerous Government Departments, and the Company has now received approval for an Environmental Authority Permit from the Queensland Department of Environment and Heritage Protection. This will reduce ongoing compliance costs associated with the application process and is a key milestone for Comet Ridge to enable its future development.
The Company continues to hold registered caveats preventing the transfer or assignment of the Springsure Creek Coal MLAs that are directly associated with the Comet Ridge Project. In September 2014 Bandanna Energy Limited was placed under Voluntary Administration and in October 2014 its subsidiary, Springsure Creek Coal Pty Ltd, was placed into Receivership. On 1 June 2016, the creditors of Springsure Creek Coal resolved to execute a Deed of Company Arrangement (DOCA). The DOCA was conditional of the sale of the shares in Springsure Creek Coal Pty Ltd to Adamelia Resources (Springsure) Pty Ltd (Adamelia Resources) which the Company understands to have proceeded without issue.
Acacia Coal will continue to seek to enforce its rights under the Triumph Creek Infrastructure Agreements which was purported to have been terminated by the Administrators of Springsure Creek Coal prior to the execution of the DOCA and the Company will continue to pursue its associated commercial and legal rights.
The Company has also been active in considering alternative opportunities to realise more immediate value for shareholders in line with its announced strategy. This includes reviewing a number of potential projects, site visits, due diligence and other related activities. Acacia Coal will continue to explore such opportunities but will only pursue opportunities which it perceives to deliver significant and ongoing value to the Company.
The Board remains committed to its strategic objectives, and a revitalised coal market and broader commodity price recovery has provided Acacia with a number of renewed opportunities. However, Acacia Coal does not foresee any changes to its broader announced strategy for the year ahead and we remain committed to managing costs appropriately and ensuring maximum value is achieved for our shareholders.
Adam Santa Maria
Executive Chairman
