b343540f-207a-4280-8649-c446253e52dc.pdf
MAXIMUS RESOURCES LIMITED
ANNUAL REPORT
2015
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CORPORATE DIRECTORY
Maximus Resources Limited ABN 74 111 977 354
DIRECTORS
Robert Michael Kennedy (Non-executive Chairman) Kevin Malaxos (Managing Director)
Leigh Carol McClusky (Non-executive Director) Ewan John Vickery (Non-executive Director) Nicholas John Smart (Alternate for Mr Vickery)
COMPANY SECRETARY
Rajita Alwis
REGISTERED OFFICE
Level 3, 100 Pirie Street Adelaide South Australia 5000
PRINCIPAL OFFICE
Level 3, 100 Pirie Street Adelaide South Australia 5000 Telephone +61 8 7324 3172
Facsimile +61 8 8312 5501
SOLICITORS
DMAW Lawyers
Level 3, 80 King William Street Adelaide South Australia 5000 Telephone +61 8 8210 2222
Facsimile +61 8 8210 2233
Minter Ellison Lawyers Level 10, 25 Grenfell Street Adelaide South Australia 5000 Telephone +61 8 8233 5555
Facsimile +61 8 8233 5556
SHARE REGISTRY
Computershare Investor Services
Level 5, 115 Grenfell Street Adelaide South Australia 5000 Telephone +61 8 8236 2300
Facsimile +61 8 8236 2305
AUDITOR
Grant Thornton
67 Greenhill Road
Wayville South Australia 5034
BANKER
National Australia Bank
48 Greenhill Road
Wayville South Australia 5034
STOCK EXCHANGE LISTING
Australia Securities Exchange (Adelaide) Maximus Resources Limited shares are listed on the Australian Securities Exchange
ASX code: MXR
WEBSITE
www.maximusresources.com
The website includes information about the Company, its strategies, projects, reports and ASX announcements.
COMPLIANCE STATEMENTS
Disclaimer
This Annual Report contains forward looking statements that are subject to risk factors associated with the exploration and mining industry.
It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a variety of variables which could cause actual results or trends to differ materially.
Exploration Targets
Exploration Targets are reported according to Clause 18 of the JORC Code, 2004. This means that the potential quantity and grade is conceptual in nature and that there has been insufficient exploration to define a Mineral Resource and that it is uncertain if further exploration will result in the determination of a Mineral Resource.
Competent Person
The information in this report relating to Narndee Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by Mr Steven Cooper who is a Fellow of the Australasian Institute
of Mining and Metallurgy. Mr Cooper is a consultant to Maximus Resources Limited. He has sufficient experience that is relevant to the styles of mineralisation and types of deposit under consideration and consents to the inclusion of the information in this report in the form and context in which it appears.
Mr Cooper qualifies as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and consents to the inclusion of the information in this report in the form and context in which it appears.
The information in this report relating to Spargoville Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by Mr Stephen Hogan who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Hogan is a consultant to Maximus Resources Limited. He has sufficient experience that is relevant to the styles of mineralisation and types of deposit under consideration and consents to the inclusion of the information in this report in the form and context in which it appears.
Mr Hogan qualifies as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and consents to the inclusion of the information in this report in the form and context in which it appears.
CONTENTS
CHAIRMAN'S REPORT 4
TENEMENT SCHEDULE 7
FINANCIAL REPORT 8
DIRECTORS' REPORT 9
AUDITOR'S INDEPENDENCE DECLARATION 16
FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF 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
DIRECTORS' DECLARATION 41
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS 42
ASX ADDITIONAL INFORMATION 45
MAXIMUS RESOURCES LIMITED | ANNUAL REPORT 2015 3
CHAIRMAN'S REPORT
Dear Fellow Shareholders
You may recall in my address at the 2014 AGM, I described the market conditions as the perfect storm for the resources sector. Those conditions did not improve throughout 2014 and into
2015. Commodity prices continued to fall, investor confidence remained subdued and analogies were being drawn between market conditions in 2015 to those of the 1930's Great Depression.
So once again I stand before you with two options to describe the 'year that was' for Maximus. The first is to decry the state of the resources sector and the ongoing difficult conditions faced by resources companies, and in particular exploration focused companies. Alternatively, I can focus on what the board and company has achieved in the past year, and the significant opportunities available to Maximus in the year ahead. I have chosen the latter.
I also reported to shareholders in 2014 that until markets improve and we were able to raise additional capital our
strategy was to seek joint venture parties or sell projects with a view to retaining some upside for the company. Your Managing Director continued to pursue this core objective throughout the year, finalising a significant transaction during the year and commencing a second towards the end of the financial year.
Following an initial due diligence period in 2013/14, the company was successful in securing the Farm-in Agreement with Monax Alliance (the working vehicle for the Monax Antofagasta Alliance) to fund the exploration and drilling program on the Millers Creek IOCG project within the Woomera Prohibited Area in South Australia. This Farm-in Agreement
alleviated Maximus of the expenditure commitments to retain the significant Millers Creek tenement holding, retained an equity share in the project for the company and secured significant success-based future payments.
Unfortunately Monax Alliance failed to identify a significant target to continue the Farm-in Agreement, and withdrew on 14 May 2015. Maximus retains 100%
equity in all tenements forming the Millers Creek project area.
The second significant transaction completed recently involves the company securing the large and highly prospective Spargoville tenement package from Tychean Resources Limited. The Managing Director identified and vigorously pursued this project during
the financial year given his significant experience in the Kalgoorlie and Coolgardie goldfields. Following due diligence on the project area, the project was presented to the board of directors, with only the non-conflicted directors voting on the proposed Sale and Farm-in Agreement.
Following completion of the Sale and Farm-in Agreement with Tychean, the company immediately commenced on- ground sampling activities, with numerous positive results reported to-date. This early success has justified the company's pursuit of the Spargoville tenement package, and we remain confident that the Spargoville project is an amazing opportunity for the company with the potential to significant alter the outlook and share price of Maximus based on exploration success and potentially leading to gold production for Maximus.
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