Globe Metals & Mining
Limited
(ABN 33 114 400 609)
And Controlled Entities
Annual Financial Report
For the year ended
30 June 2020
CORPORATE DIRECTORY
Directors
Ms Alice Wong, Non-Executive Chairperson
Mr Alistair Stephens, Deputy Chairperson, Managing Director and CEO Mr William Hayden, Non-Executive Director
Mr Alex Ko, Non-Executive Director
Mr Bo Tan, Non-Executive Director
Company Secretary
Mr Michael Fry
Principal & Registered Office
Unit 1, 26 Elliott Street
Midvale WA 6056
Telephone: (08) 6117 3814
Facsimile: (08) 6323 0418
ABN: 33 114 400 609
Auditors
Australia:
Ernst & Young
11 Mounts Bay Road
Perth WA 6000
Malawi:
Ernst & Young
Apex House
Kidney Crescent
Blantyre
Malawi
Share Registrar
Automic Group
Level 2, 267 St Georges Terrace
Perth WA 6000
Telephone: 1300 288 664
Securities Exchange Listing
Australian Securities Exchange
(Home Exchange: Perth, Western Australia)
Level 40
Central Park
152-158 St Georges' Terrace
Perth WA 6000
Code: GBE
Bankers
Westpac
109 St Georges Terrace
Perth WA 6000
Chairperson's Address
On behalf of the Board of Globe Metals & Mining Limited ("Globe" or "the Group"), it is my pleasure to present to you the 2020 Annual Financial Report.
Consistent with the strategy outlined in my address in the 2019 Annual Report, the Group has maintained momentum on advancing the Kanyika Development Agreement, updating the technical components of a Feasibility Study, and assessing a range of project financing options.
Notwithstanding, the recent change in government in Malawi with the inauguration of a new President in July, it appears that finalisation of the Kanyika Development Agreement with the Government of Malawi is nearing finalisation and the Company is optimistic, based upon its dialogue with, and the responsiveness of key government officials, that the Development Agreement will be finalised and executed this financial year.
Execution of the Kanyika Development Agreement is a pre-condition to the issue of a mining licence which we are reliably informed will immediately follow. Once the Kanyika Development Agreement is executed and the mining licence issued, the Company will be in a position to move forward with project funding and off- take arrangements and the Company's Board and management is optimistic in realising project financing and development opportunities in the near term.
On a positive note for Kanyika, latest reports from the World Steel Association suggest that global steel demand will fall by 6.4% during 2020 due to the COVID-19 pandemic but recover in 2021 to near pre- pandemic levels due to the expected faster recovery of China as compared to the rest of the world. And as demand for higher quality steels rises as a proportion of total steel demand, and the usage in the automobile and aerospace industries, particularly in China, India and Japan, grows the need for niobium is increasing at a faster rate than steel output.
Despite the pandemic, analysts are still predicting that demand for niobium will grow at a compound annual growth rate (CAGR) of around 6% during the period 2020 to 2025. Major factors driving the market are the increased consumption of niobium in structural steel due its characteristics of tensile strength and durability (for use in bridges, buildings and other large constructions such as hangars and stadiums) and extensive utilisation of niobium-based alloys in energy-efficient buildings and infrastructure, and the manufacture of aircraft engines and automobiles. Lightweight materials and designs have become increasingly important in the manufacture of automobiles, where driving dynamics is a major factor. Additionally, the emerging focus of governments across the world on minimising carbon emissions and enhancing fuel economy has increased the importance of lightweight materials in the production of automobiles.
These combinations of growth and demand bode well for the price of niobium. As does the new emerging market of niobium in new technologies like wind turbines, medical imaging, particle accelerators, as well as an exciting development in the manufacture of high-performance and ultra-safeultra-rapid rechargeablebatteries for electrical vehicles.
In the coming year the Group will continue to be cost prudent, whilst maintaining momentum on Kanyika development opportunities.
In closing, I thank all shareholders, board of directors, and employees for their support of the Group in the year past and I am looking forward to their continued support in the year to come.
Yours sincerely,
GLOBE METALS & MINING LIMITED
ALICE WONG
CHAIRPERSON
DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2020
The directors of Globe Metals & Mining Limited ('Globe' or 'the Company') hereby submit their report of the Company and its controlled entities ('the Group') for the financial year ended 30 June 2020.
DIRECTORS
The names and particulars of the Directors of the Company during or since the end of the financial year are:
Alice Wong | Non-Executive Chairperson |
Alistair Stephens | Deputy Chairperson, Managing Director and Chief Executive Officer |
William Hayden | Non-Executive Director |
Bo Tan | Non-Executive Director |
Alex Ko | Non-Executive Director |
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
COMPANY SECRETARY
Michael Fry was appointed Company Secretary of Globe on 1 February 2015. Michael holds a Bachelor of Commerce degree from the University of Western Australia and has worked in accounting and advisory roles for over 20 years.
PRINCIPAL ACTIVITIES
The principal activities of the Group during the financial year were to explore, develop and invest in the resource sector. The Group's major project is the Kanyika Niobium Project in Malawi.
There were no significant changes in the nature of the Group's principal activities during the current year.
RESULTS
The consolidated loss after providing for income tax of the Group for the year ended 30 June 2020 amounted to $1.449 million (2019: $1.441 million). The COVID-19 pandemic has had no direct material impact on the result.
MINERAL TENEMENTS
The Group's interests in mineral tenements as at the date of this report are as follows:
Project | Location | Status | Tenement | Globe's interest |
Kanyika Niobium (i) | Malawi | Granted | AML0026 | 100% |
Kanyika Exploration | Malawi | Granted | EPL0421/15 | 100% |
- AML = Application for Mining Lease; lodged with Malawi Ministry of Natural Resources, Energy & Mining on 5 December 2014 covering in part the area previously covered by EPL0188/05 has been approved subject to execution of a Development Agreement.
Note: EPL: Exclusive Prospecting Licence (Malawi)
REVIEW OF OPERATIONS
Globe Metals and Mining Limited (Globe) is an Australian registered public company and has been listed on the ASX since December 2005 (ASX: GBE). The Company has an administration and operational centre in Lilongwe, Malawi in support of its on-the-ground exploration activities. The Malawi operations are supported from Globe's corporate head office in Midvale, Western Australia.
Consistent with the strategy outlined by the Chairperson in her Address in the 2019 Annual Report, the Group has focussed its efforts in the 2020 financial year on advancing its Kanyika Niobium Project towards production by progressing with its mining licence application, that is conditional on the finalisation of a Development Agreement and by seeking out and assessing a range of financing options.
Operations have been impacted by the COVID-19 pandemic to the extent that staff in both Malawi and Western Australia have largely worked from their homes since March 2020. Ability to meet face-to-face with certain groups, particularly in the areas of marketing and financing has been impacted.
Kanyika Niobium Project
Overview
Globe identified niobium and tantalum mineralisation in 2007 at Kanyika. Niobium and tantalum are key additives in steel manufacture and electronics. Subsequent drilling confirmed the mineralisation leading to an extensive exploration and metallurgical testwork program. A scoping study in 2008 and further drilling led to a feasibility study in 2012 and the release of a JORC (2004) Mineral Resource Estimate in January 2013 (refer below).
During 2013, Globe commissioned metallurgical optimisation work, and subsequently in 2014 commissioned a pilot plant to demonstrate and further optimise metallurgical processes.
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Globe Metals & Mining Limited published this content on 30 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 September 2020 04:54:03 UTC