ASX RELEASE - 1 AUGUST 2016
APPENDIX 4E
for the full-year ended 30 June 2016
This information should be read in conjunction with BC Iron Limited's Financial Report for the full-year ended 30 June 2016.
Name of entity ABN
BC Iron Limited 21 120 646 924
Results for announcement to the market
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Full-year ended 30 June
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2016 ($000's)
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2015 ($000's)
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Revenue from ordinary activities
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decrease 46% to
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$151,279
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$281,211
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Loss from ordinary activities after tax attributable to members
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decrease 50% to
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($79,955)
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($158,499)
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Net loss attributable to members
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decrease 48% to
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($82,661)
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($159,528)
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Dividends
No dividends have been declared for the full-year ended 30 June 2016 (30 June 2015: nil).
Net tangible asset backing
Net tangible asset backing per ordinary share: $0.27 (2015: $0.68).
Previous corresponding period
The previous corresponding period is the full-year ended 30 June 2015.
Joint ventures
BC Iron Limited, through its 100% owned subsidiary BC Iron Nullagine Pty Ltd, holds a 75% interest in the Nullagine Iron Ore Joint Venture ("NJV"). Prior to 18 December 2012, BC Iron Limited held 50% of the NJV.
Audit
This report is based on financial statements which have been audited.
Commentary on results for the period
Revenue from ordinary activities and operating loss for the year ended 30 June 2016 have been impacted by declining Australian dollar iron ore prices and lower shipped tonnages than planned at the NJV, as a result of the temporary suspension of operations. This was partly offset by a full-year of operations from the Company's Iron Valley project, which generated a positive EBITDA of $10.2M.
The full year was also impacted by substantial asset impairments of $40.1M before tax due to the current outlook for iron ore prices. Additionally deferred tax assets of $18.6M relating to temporary differences have been derecognised and total tax losses of $49.4M have not been recognised.
Detailed commentary on the results for the full-year is contained in the ASX release and the financial report that accompany this announcement.
ABN 21 120 646 924
ANNUAL
FINANCIAL
REPORT
FOR THE YEAR ENDED 30 JUNE 2016
Contents
Directors' Report 1
Audited Remuneration Report 8
Directors' Declaration 19
Financial Statements 20
Independent Auditor's Report and Declaration of Independence 54
Directors' Report
The Directors present their report on the results of the consolidated entity (referred to hereafter as the Company) consisting of BC Iron Limited and the entities it controlled at the end of, or during the year ended 30 June 2016.
Principal activity
The principal activities of the Company during the course of the financial year were the operation, development and exploration of mineral projects, focusing primarily on iron ore deposits in the Pilbara region of Western Australia.
There has been no significant change in the nature of the Company's activities during the financial year.
Directors
The names of directors of the Company in office during the financial year and up to the date of this report are: Anthony W Kiernan Chairman (Non-Executive)
Morgan S Ball Managing Director (Executive) resigned 20 May 2016 Martin Bryant Director (Non-Executive)
Andrew M Haslam Director (Non-Executive)
Brian F O'Donnell Director (Non-Executive)
Directors' qualifications, experience and special responsibilities
Mr Anthony (Tony) William Kiernan LL B
Chairman (Non-Executive) appointed October 2006 Period of office at August 2016 - 9 years and 10 months
Mr Kiernan, formerly a solicitor, has extensive experience in the management and operation of listed public companies. He is a director of the following entities, which are listed on the Australian Securities Exchange:
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Chalice Gold Mines Limited (since 2007) - Chairman;
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Danakali Limited (since 2013);
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Venturex Resources Limited (since 2010) - Chairman; and
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Pilbara Minerals Limited (appointed 1 July 2016) - Chairman.
Mr Kiernan was a director of Uranium Equities Limited from 2003 to 2013, and Liontown Resources Limited from 2006 to 2013. Mr Kiernan is Chairman of the Fiona Wood Foundation which focuses on research into burn injuries and the Black Dog Ride which raises awareness of depression and suicide prevention.
Mr Kiernan is a member of the Audit and Risk Committee and Remuneration Committee.
Mr Andrew (Andy) Malcolm Haslam Grad Dip. Min (Ballarat), GAICD
Director (Non-Executive) appointed September 2011 Period of office at August 2016 - 4 years and 11 months
Mr Haslam is a mining professional with 30 years of operational and executive experience in the Australian mining industry. He is a director of the following entity, which is listed on the Australian Securities Exchange:
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Vimy Resources Limited, appointed April 2016
Mr Haslam has worked for HSE Group (100% owned by Swire), was Executive General Manager Iron Ore Operations of Mineral Resources Limited from 2012 to May 2014, Managing Director of ASX listed Territory Resources Limited and held a number of key operational roles in the mining contracting industry in Australia.
Mr Haslam is Chairman of the Remuneration Committee and a member of the Audit and Risk Committee.
Mr Brian Francis O'Donnell B Com, FCA, MAICD
Director (Non-Executive) appointed October 2014 Period of office at August 2016 - 1 year and 10 months
Mr O'Donnell has 30 years' experience in the finance and investment industry. Mr O'Donnell was a Non-Executive Director of Iron Ore Holdings Ltd from 2008 until 2014 following the completion of the off-market takeover of Iron Ore Holdings Ltd by BC Iron Limited.
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