Annual Report 2016
ABN: 89 099 116 631
DIRECTORS
Steven Cole, Non-Executive Chairman
David Reed, Non-Executive Deputy Chairman Christopher Reed, Managing Director
Dr Natalia Streltsova, Non-Executive Director Douglas Ritchie, Non-Executive Director
COMPANY SECRETARY
Jason Carone
REGISTERED OFFICE
Level 1, 672 Murray Street West Perth WA 6005
CONTACT DETAILS
Telephone (+618) 9322 1182
Facsimile (+618) 9321 0556 www.neometals.com.au
AUDITORS
Deloitte Touche Tohmatsu Level 14, Woodside Plaza 240 St Georges Terrace Perth WA 6000
BANKERS
National Australia Bank Ltd
SHARE REGISTRY
Computershare Investor Services Pty Ltd Level 11, 172 St Georges Terrace
Perth WA 6000
STOCK EXCHANGE LISTING
Neometals Ltd are listed on the Australian Stock Exchange (Home Branch - Perth)
ASX Code: NMT ACN: 099 116 631
ABN: 89 099 116 631
North American OTC Market (DR Symbol: RDRUY)
ANNUAL GENERAL MEETING
3pm Thursday 24 November 2016 The Celtic Club
48 Ord Street West Perth WA
Australia:
World's biggest producer of mined lithium
In 2015, the three biggest producers of lithium were:
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Australia13,000t
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Chile 12,900t
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China 5,000t.
2 Neometals Annual Report 2016
Notes to the consolidated financial statements (continued)
Contents
Letter from the Chairman 02
Vision, Strategy and Execution 04
Review of Operations 06
Directors' Report 17
Audit Report 32
Auditor's Independence Declaration 33
Independence Declaration 34
Directors' Declaration 35
Financial Statements 2016 Contents 37
Consolidated Statement of Profit and Loss &
Other Comprehensive Income 38
Consolidated Statement of Financial Position 39
Consolidated Statement of Changes In Equity 40
Consolidated Statement of Cash Flows 41
Notes to the Consolidated Financial Statements 42
Additional Stock Exchange Information 86
Annual Report 2016 Neometals 1
Letter from the Chairman
Dear Shareholders,
The year under review has been a seminal year for Neometals. It is a year in which your board and executive team have drawn confidence of being a new dawn for your company.
After several years of consolidation of its asset base to its core, the Company has emerged from a financial position that could reasonably be described as "challenged", to one in which as at 30 September 2016 reflected:
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net cash of around $66 million with the Company having already declared and paid two special dividends, each of 2 cents, in April and August 2016;
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a 13.8% share of a globally significant operating lithium project with many future decades of production left and with assured life of mine offtake arrangements;
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a diverse range of technology initiatives with prospects of Neometals becoming instrumental in driving low quartile production outcomes across a range of mineral processing applications;
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a globally significant titanium/vanadium/ iron resource at Barrambie WA at a mature stage of resource validation
and proof;
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a 42% (approx) share in ASX listed Hannans Ltd with exciting prospective nickel, lithium and gold exploration interests;
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a market capitalisation of approximately
$183 million (at 32.5 cents per share) as at 30 September 2016 compared with its market capitalisation of approximately
$46 million (at 9 cents per share) as at 1 July 2015.
Over this period your Company has also materially strengthened its board and executive ranks with Natalia Streltsova and Doug Ritchie being welcomed to the board, and Mike Tamlin formally joining the executive team as COO. The relevant experience and skills of each of Natalia, Doug and Mike are demonstrable, as is evident from their short bio's in this Annual Report. Their support
to the existing Neometals' team and their commitment to delivering shareholder value has been apparent from their contributions to date.
Your Company and its board are committed to an organisational outlook that champions:
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strong governance;
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disciplined strategic planning;
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measured risk mitigation;
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innovation in its business approach;
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respectful stakeholder engagement;
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shareholder value and returns.
In particular, I wish to acknowledge the personal financial support to the Company over 2013-2015 of David Reed, your former Chairman, without which support I doubt if your Company would exist today. Fortunately, we continue to enjoy David's services and insights on the board in a non executive director capacity.
I also acknowledge the outstanding contributions of your CEO Chris Reed and CFO/Company Secretary Jason Carone who have so ably steered your Company to its present enviable position in Australia's capital markets.
As for the future, with a wealth of resources: minerals; projects; technologies; people; and
2 Neometals Annual Report 2016
