2021
ANNUAL REPORT
CORPORATE DIRECTORY
Directors
Robert Reynolds | Non-Executive Chairman |
Leigh Junk | Managing Director |
Eduard Eshuys | Non-Executive Director |
Mick Wilkes | Non-Executive Director |
Company Secretary
Kevin Hart
Registered Office and Principal Place of Business
Alluvion
Level 19
58 Mounts Bay Road
Perth WA 6000 Australia
Telephone: | 08 6323 9000 |
Facsimile: | 08 6323 9099 |
Website: | www.daciangold.com.au |
Email: | info@daciangold.com.au |
Auditor
BDO Audit (WA) Pty Ltd
38 Station Street
Subiaco WA 6008 Australia
Share Registry
Computershare Investor Services Pty Ltd
Level 11
172 St Georges Terrace
Perth WA 6000
Australia
Stock Exchange Listing
The Company's shares are quoted on the Australian Securities Exchange. The home exchange is Perth, Western Australia.
ASX Code
DCN - Ordinary shares
Domicile and Country of Incorporation
Australia
ACN
154 262 978
ANNUAL REPORT 2021
CONTENTS
CORPORATE DIRECTORY | INSIDE COVER | ||||||||||||||||
COMPANY HIGHLIGHTS | 2 | ||||||||||||||||
CHAIRMAN'S LETTER | 3 | ||||||||||||||||
BOARD AND GOVERNANCE | 4 | ||||||||||||||||
OUR SUSTAINABILITY FOOTPRINT | 7 | ||||||||||||||||
REVIEW OF OPERATIONS | 10 | ||||||||||||||||
EXPLORATION AND GROWTH | 16 | ||||||||||||||||
MINERAL RESOURCES AND ORE RESERVES | 23 | ||||||||||||||||
ANNUAL FINANCIAL STATEMENTS | 28 | ||||||||||||||||
DIRECTOR'S REPORT | 31 | ||||||||||||||||
REMUNERATION REPORT (AUDITED) | 40 | ||||||||||||||||
AUDITOR'S INDEPENDENCE DECLARATION | 50 | ||||||||||||||||
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | 51 | ||||||||||||||||
CONSOLIDATED STATEMENT OF FINANCIAL POSITION | 52 | ||||||||||||||||
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | 53 | ||||||||||||||||
CONSOLIDATED STATEMENT OF CASH FLOWS | 54 | ||||||||||||||||
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | 55 | ||||||||||||||||
DIRECTORS' DECLARATION | 87 | ||||||||||||||||
INDEPENDENT AUDITOR'S REPORT | 88 | ||||||||||||||||
ASX ADDITIONAL INFORMATION | 93 |
1
COMPANY HIGHLIGHTS FY2021
Consolidation of the operation and our financial position through an updated mine plan and significant debt and hedge reduction.
Operational | Financial | |
GOLD PRODUCTION | CASH FLOW FROM OPERATIONS | |
106,919 ounces | $55.5M | |
AISC | REPAID DEBT DURING THE YEAR | |
$1,556 per ounce | $47.9M | |
ORE RESERVES AND MINERAL | ABSORBED SIGNIFICANT MARK-TO-MARKET | |
RESOURCES UNDERPINNING THE | COST OF HEDGE BOOK | |
COMPANY'S FIVE YEAR MINE PLAN | $29.4M | |
Ore Reserves | ||
0.4Moz | CASH AND GOLD ON HAND | |
Mineral Resources | $41.8M | |
2.5Moz | REMAINING DEBT | |
$16.2M |
2 ANNUAL REPORT 2021
CHAIRMAN'S LETTER TO SHAREHOLDERS
Dear Fellow Shareholders
On behalf of your Board of Directors I am pleased to present to you Dacian Gold Limited's 2021 Annual Report.
The 2021 financial year has been a challenging one with COVID-19 and significant changes to the Board. Foundation directors, Ian Cochrane and Barry Patterson, both stepped down during the year due to health issues. Sadly, both Ian and Barry passed away shortly after retirement from the Dacian Board and our deepest sympathies are with Ian's and Barry's families.
Work continued during the 2021 financial year to strengthen the Company's position as a gold producer in the north-eastern goldfields of Western Australia. A substantial investment in drilling programs and technical personnel was dedicated to our Mineral Resources, culminating in our 30 June 2021 Mineral Resource and Ore Reserve estimates, that provided the foundation for our expanded five-year mine plan.
This updated mine plan includes the planned recommencement of underground mining at Mt Morgans, complemented by exploration success in the extension of the Mt Marven open pit, as well as the March 2021 acquisition of the nearby Redcliffe Gold Project via a merger with NTM Gold Limited.
Following the merger with NTM the Company welcomed Eduard Eshuys to the Board, and in September 2021 also welcomed Mick Wilkes to the Board.
In the 2021 financial year the Company produced 106,919 ounces of gold at an AISC of $1,556 per ounce, generating $55.5 million in operating cash flow, up from $23.0 million in the previous year. This positive result is after accounting for $29.4 million in forgone revenue from the delivery of 57,265 ounces of gold hedging related to the original project finance debt facility.
In addition to extinguishing 68% of the hedge position during the year, the Company also repaid $47.9 million of debt to significantly improve the Company's financial position.
During the year the Company ramped up its exploration activities as it looks to discover the next generation of deposits at Mt Morgans and Redcliffe. Dacian looks forward to building on its foundations as an established gold producer with a large processing facility and major land holding in the Leonora-Laverton gold district.
On behalf of the Board I would like to thank our executive management team and all our employees and contractors for their tremendous effort during 2021. I would also like to thank all our stakeholders, and in particular our shareholders, for their support throughout the year. We are confident that the effort put into the business in 2021 provides the platform to realise the full potential of Dacian's assets.
Robert Reynolds
Non-Executive Chairman
3
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Dacian Gold Limited published this content on 22 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 October 2021 07:43:07 UTC.