ACTIVITIES REPORT
For Peri od End ed 3 1 D ecemb er 2 01 3
ASX : AUZ 23 January 2014
Australian Mines Limited ("Australian Mines" or "the Company") is pleased to provide shareholders its Quarterly Activities Report for the period ended 31 December 2013.
During this quarter, Australian Mines diligently continued carrying out its corporate objective (as announced on 1 August 2013) to acquire advanced projects outside of Nigeria. The Company has conducted varying levels of due diligence across a number of projects in various jurisdictions and at the time of this report, was in discussions with several groups regarding the potential for project acquisition or joint venture.
As part of its continued effort to reduce costs, Managing Director Benjamin Bell has elected to take a significant pay reduction to $200,000 per annum plus superannuation. Non-executive Directors salaries have also been reduced by almost one-third. This is a total saving of over
$185,000 per annum. Australian Mines remains focused on delivering value to its shareholders and the continued cost reduction strategies implemented by the Company during the last six months have significantly decreased Australian Mines' administration and overheads costs.
The Company remains in a strong financial position with approximately $2.1 million cash in the bank and no debt as at 31 December 2013.
Background of Corporate Review
As announced by the Company on 1 August 2013, Australian Mines suspended its early-stage West African gold exploration activities in favour of acquiring more advanced projects in other mining friendly jurisdictions, which the Company can develop into a profitable mining operation in the medium-term.
Australian Mines continues to wind down its activities in Nigeria including closing its field operations office in Abuja and reducing the number of tenements held by the Company. It is the Company's aim to only hold the key exploration licences of Yargarma, Kasele, Tsauni and Kwali, which Australian Mines will continue to maintain in good standing in anticipation of a positive turnaround in market sentiment for greenfields exploration projects in the longer term.
***ENDS***
For further information, shareholders and media please contact:
Benjamin Bell Managing Director Ph: +61 8 9481 5811
E: [email protected]
Competent Person's Statement
Information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Benjamin Bell who is a member of the Australian Institute of Geoscientists. Mr Bell is a full-time employee and Managing Director of Australian Mines Limited. Mr Bell has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves." Mr Bell consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Appendix 5B Mining exploration entity quarterly report
Appendix 5B
Mining exploration entity quarterly report
Name of entity
AUSTRALIAN MINES LIMITED - AUZ
Rule 5.3
ABN Quarter ended ("current quarter")
68 073 914 191 31 December 2013
Consolidated statement of cash flows
Cash flows related to operating activities
1.1 Receipts from product sales and related debtors
1.2 Payments for: (a) exploration & evaluation
(b) development
(c) production
(d) administration
1.3 Dividends received
1.4 Interest and other items of a similar nature received
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Other
Net Operating Cash Flows
Appendix 5B Page 1
Appendix 5B
Mining exploration entity quarterly report
1.13 Total operating and investing cash flows (brought forward)
|
(353,354)
|
1,704,970
|
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, etc. net of costs
1.15 Proceeds from sale of forfeited shares
1.16 Proceeds from borrowings
1.17 Repayment of borrowings
1.18 Dividends paid
1.19 Other (provide details if material)
Net financing cash flows
|
-
-
-
-
-
-
|
-
-
-
-
-
-
|
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, etc. net of costs
1.15 Proceeds from sale of forfeited shares
1.16 Proceeds from borrowings
1.17 Repayment of borrowings
1.18 Dividends paid
1.19 Other (provide details if material)
Net financing cash flows
|
-
|
-
|
Net increase (decrease) in cash held
1.20 Cash at beginning of quarter/year to date
1.21 Exchange rate adjustments to item 1.20
1.22 Cash at end of quarter
|
(353,354)
2,539,296
-
|
1,704,970
487,510 (6,538)
|
Net increase (decrease) in cash held
1.20 Cash at beginning of quarter/year to date
1.21 Exchange rate adjustments to item 1.20
1.22 Cash at end of quarter
|
2,185,942
|
2,185,942
|
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related entities
Current Quarter
$A
1.23
|
Aggregate amount of payments to the parties included in item 1.2
|
155,448
|
1.24
|
Aggregate amount of loans to the parties included in item 1.10
|
-
|
1.25
|
Explanation necessary for an understanding of the transactions
|
|
Executive and Non-Executive Directors Fees and Superannuation.
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest
Appendix 5B Page 2
Financing facilities available
Add notes as necessary for an understanding of the position.
Appendix 5B Mining exploration entity quarterly report
3.1 Loan facilities -
3.2 Credit standby arrangements
Estimated cash outflows for next quarter
4.1 Exploration and evaluation
4.2 Development
4.3 Production
4.4 Administration
Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.
Appendix 5B Page 3
Appendix 5B
Mining exploration entity quarterly report
Changes in interests in mining tenements
6.1 Interests in mining tenements relinquished, reduced or lapsed
6.2 Interests in mining tenements acquired or increased
Appendix 5B Page 4
Appendix 5B Mining exploration entity quarterly report
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
7.12 Unsecured notes
(totals only)
Appendix 5B Page 5
Appendix 5B
Mining exploration entity quarterly report
Compliance statement
1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).
2 This statement does give a true and fair view of the matters disclosed.
Sign here: Date: 23 January 2014 (Managing Director)
Print name: Benjamin Bell
Notes
1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities: The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and
AASB 107: Statement of Cash Flows apply to this report.
5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.
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Appendix 5B Page 6